Pfizer : Press Release(opens in new window)

PFIZER REPORTS FOURTH-QUARTER AND FULL-YEAR 2021 RESULTS

• Full-Year2021 Revenues of $81.3 Billion, Reflecting 92% Operational Growth; Excluding Contributions from Comirnaty(1) and Paxlovid, Revenues Grew 6% Operationally to $44.4 Billion
• Fourth-Quarter2021 Revenues of $23.8 Billion, Reflecting 106% Operational Growth; Excluding Contributions from Comirnaty(1) and Paxlovid, Revenues Declined 2% Operationally Driven Primarily by the Impact of Fewer Selling Days Compared to the Prior-Year Quarter
• Full-Year2021 Reported Diluted EPS(2) of $3.85, Adjusted Diluted EPS(3) of $4.42; Fourth-Quarter 2021 Reported Diluted EPS(2) of $0.59, Adjusted Diluted EPS(3) of $1.08
• Provides Full-Year 2022 Record-High Guidance(4) for Revenues of $98.0 to $102.0 Billion and Adjusted Diluted EPS(3) of $6.35 to $6.55, Reflecting 23% and 46% Year-Over-Year Growth at the Midpoints, Respectively
• • Raises 2022 Revenue Guidance for Comirnaty(1) to Approximately $32 Billion, Reflecting Doses Expected to be Delivered Under Supply Contracts Signed as of Late-January
  • Issues Initial 2022 Revenue Guidance for Paxlovid of Approximately $22 Billion, Reflecting Treatment Courses Expected to be Delivered Primarily Under Supply Contracts Signed or Committed as of Late- January
• Provides Updates and New Data for Select Clinical Programs Spanning Vaccines, Hospital, Oncology, Rare Disease and Internal Medicine on Analyst Conference Call

NEW YORK, NY, Tuesday, February 8, 2022 - Pfizer Inc. (NYSE: PFE) reported strong financial results for fourth-quarter and full-year 2021 and provided 2022 total company financial guidance(4). In addition, Pfizer raised its previous 2022 revenue guidance for Comirnaty(1), the Pfizer-BioNTech SE (BioNTech) COVID-19 vaccine, and provided for the first time 2022 revenue guidance for its oral COVID-19 treatment, Paxlovid.

The fourth-quarter 2021 earnings presentation and accompanying prepared remarks from management as well as the quarterly update to Pfizer's R&D pipeline can be found on the Pfizer website.

EXECUTIVE COMMENTARY

Dr. Albert Bourla, Chairman and Chief Executive Officer, stated: "In the early days of the COVID-19 pandemic, we committed to use all of the resources and expertise we had at our disposal to help protect populations globally against this deadly virus, as well as to offer treatments to help avoid the worst outcomes when infections do occur. We put billions of dollars of capital on the line in pursuit of those goals, not knowing whether those investments would ever pay off. Now, less than two years since we made that commitment, we are proud to say that we have delivered both the first FDA-authorized vaccine against COVID-19 (with our partner, BioNTech) and the first FDA-authorized oral treatment for COVID-19."

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Dr. Bourla continued: "These successes have not only made a positive difference in the world, but I believe they have fundamentally changed Pfizer and its culture forever. Everywhere I look in the company, I see colleagues who are inspired by what we have achieved to date and filled with determination to be part of the next breakthrough that could change the world for patients in need. As we enter a new year, I look forward to all we will accomplish together."

Frank D'Amelio, Chief Financial Officer, Executive Vice President, stated: "As I prepare to retire as CFO of Pfizer, I am proud to see that the company is performing better than at any other time during my nearly 15 years here. Today we are issuing guidance for the coming year which, if achieved, would represent the highest level of annual revenues and Adjusted diluted EPS(3) in Pfizer's long history. In addition, we just concluded a year where we provided tremendous value to society, including to both patients and shareholders. In 2021, we exceeded our goal of manufacturing 3 billion doses of Comirnaty(1), a monumental and unprecedented achievement by our Global Supply colleagues. Finally, we have prudently deployed our capital through multiple business development transactions in recent months to advance our strategies, always with an eye toward bolstering growth in the latter half of this decade and beyond. I have never been more confident in the future of Pfizer."

Results for the fourth quarter and full-year 2021 and 2020(5) are summarized below.

OVERALL RESULTS

($ in millions, except		Fourth-Quarter					Full-Year
per share amounts)
	2021	2020	Change			2021	2020	Change
Revenues	$ 23,838	$ 11,634	105%			$ 81,288	$ 41,651	95%
Reported Net Income(2)	3,393	847	*		21,979	9,159	*
Reported Diluted EPS(2)	0.59	0.15	*		3.85	1.63	*
Adjusted Income(3)	6,239	2,434	156%		25,236	12,727	98%
Adjusted Diluted EPS(3)	1.08	0.43	152%		4.42	2.26	96%

* Indicates calculation not meaningful.

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REVENUES

($ in millions)		Fourth-Quarter					Full-Year
	2021	2020	% Change		2021	2020	% Change
	Total	Oper.		Total	Oper.
Pfizer Biopharmaceuticals	$ 23,456	$ 11,325	107%	108%		$ 79,557	$ 40,724	95%	92%
Group (Biopharma)
Vaccines	13,914	2,001	*	*			42,625	6,575	*	*
Oncology	3,242	3,024	7%	8%		12,333	10,867	13%	12%
Internal Medicine	2,235	2,308	(3%)	(3%)		9,329	9,003	4%	2%
Hospital	1,884	1,861	1%	1%		7,301	6,777	8%	5%
Inflammation & Immunology	1,231	1,267	(3%)	(2%)		4,431	4,567	(3%)	(4%)
Rare Disease	950	865	10%	12%		3,538	2,936	20%	19%
Pfizer CentreOne	382	308	24%	25%			1,731	926	87%	84%
TOTAL REVENUES	$ 23,838	$ 11,634	105%	106%			$ 81,288	$ 41,651	95%	92%

* Indicates calculation not meaningful.

Pfizer CentreOne, the company's contract development and manufacturing organization which previously had been managed within the Hospital therapeutic area, has been moved for all periods presented into a separate operating segment to reflect the company's revised management structure which went into effect starting in the fourth quarter of 2021. Additionally, revenues and expenses associated with the former Upjohn Business(6) and Pfizer's former Meridian(6) subsidiary, the manufacturer of EpiPen and other auto-injector products, for all periods presented have been recategorized as discontinued operations and excluded from Adjusted(3) results.

Business development activities completed in 2020 and 2021(5) impacted financial results in the periods presented(6). Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates(7).

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2022 FINANCIAL GUIDANCE(4)

Pfizer's 2022 financial guidance is presented below. This guidance includes management's expectations for contributions from the entire company, including Comirnaty(1) and Paxlovid.

Revenues	$98.0 to $102.0 billion
Adjusted Cost of Sales(3) as a Percentage of Revenues	32.2% to 34.2%
Adjusted SI&A Expenses(3)	$12.5 to $13.5 billion
Adjusted R&D Expenses(3)	$10.5 to $11.5 billion
Adjusted Other (Income)/Deductions(3)	Approximately $1.8 billion of income
Effective Tax Rate on Adjusted Income(3)	Approximately 16.0%
Adjusted Diluted EPS(3)	$6.35 to $6.55

The midpoint of the guidance range for revenues represents 23% growth from 2021 revenues, including an expected $1.1 billion, or 1%, unfavorable impact from changes in foreign exchange rates compared to 2021.

The guidance for 2022 revenues also includes:

• an anticipated $32 billion of revenue for Comirnaty(1), which includes doses expected to be delivered in fiscal 2022(5) under contracts signed as of late-January 2022; and
• an anticipated $22 billion of revenue for Paxlovid, which includes treatment courses expected to be delivered in fiscal 2022(5), primarily relating to supply contracts signed or committed as of late-January 2022.

The midpoint of the guidance range for Adjusted diluted EPS(3) reflects a 46% increase over 2021 actual results, including an expected $0.06, or 1%, unfavorable impact from changes in foreign exchange rates compared to 2021.

Financial guidance for Adjusted diluted EPS(3) is calculated using approximately 5.8 billion weighted average shares outstanding, and assumes no share repurchases in 2022. The expected increase in weighted average shares outstanding compared to 2021 of approximately 100 million shares has an unfavorable impact on 2022 Adjusted diluted EPS(3) of $0.10 at the midpoint of the guidance range.

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CAPITAL ALLOCATION

• During full-year 2021, Pfizer paid $8.7 billion of cash dividends, or $1.56 per share of common stock, which represents an increase in dividends per share of 3% compared to full-year 2020.
• No share repurchases were completed in 2021. As of February 8, 2022, Pfizer's remaining share repurchase authorization is $5.3 billion. Current financial guidance does not reflect any share repurchases in 2022.
• Fourth-quarter2021 diluted weighted-average shares outstanding used to calculate Reported(2) and Adjusted(3) diluted EPS was 5,768 million shares, an increase of 106 million shares, primarily due to shares issued for employee compensation programs, which resulted in a $0.01 reduction to Reported(2) and a $0.02 reduction to Adjusted(3) diluted EPS compared to the prior-year quarter.
• Full-year2021 diluted weighted average shares outstanding was 5,708 million shares, an increase of 76 million shares, which resulted in a $0.05 reduction to Reported(2) and a $0.06 reduction to Adjusted(3) diluted EPS compared to full-year 2020.

QUARTERLY FINANCIAL HIGHLIGHTS (Fourth-Quarter 2021 vs. Fourth-Quarter 2020)

Fourth-quarter 2021 revenues totaled $23.8 billion, an increase of $12.2 billion, or 105%, compared to the prior- year quarter, reflecting operational growth of $12.3 billion, or 106%, as well as an unfavorable impact of foreign exchange of $135 million, or 1%.

Compared to the prior-year quarter, fourth-quarter 2021 revenue growth was unfavorably impacted by approximately $500 million, or 4%, as a result of fourth-quarter 2021 having four fewer selling days in the U.S. and four fewer selling days in international markets. This unfavorable impact from fewer domestic and international selling days negatively affected the growth rates of products across the entire portfolio.

Fourth-quarter 2021 operational growth was primarily driven by:

• Comirnaty(1), which contributed $12.5 billion in direct sales and alliance revenues;
• Eliquis globally, up 19% operationally, driven primarily by continued increased adoption in non-valvular atrial fibrillation and oral anti-coagulant market share gains;
• Biosimilars, which grew 30% operationally to $680 million, primarily driven by recent oncology monoclonal antibody biosimilar launches of Ruxience (rituximab), Zirabev (bevacizumab) and Trazimera (trastuzumab), as well as growth from Retacrit (epoetin) in the U.S.;
• Vyndaqel/Vyndamax globally, up 34% operationally, primarily driven by continued strong uptake of the transthyretin amyloid cardiomyopathy indication in the U.S. and Japan;

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