Good day, everyone, and welcome to Pfizer's first quarter 2026 Earnings Conference call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DiMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Good morning, and welcome to Pfizer's Earnings Call. I'm Francesca DiMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at Pfizer.com. Earlier this morning, we released our results for the first quarter, 2026 via press release that is available on our website at Pfizer.com. I'm joined today by Dr. Albert Bourla, our chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions. Members of our leadership team will be available for the Q&A session. Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and the disclosures in our SEC filings, which are all available on the IR website on Pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date and we undertake no obligation to update or revise any of the statements with that

i will turn the call over to albert thank you francesca good morning everyone thank you for joining our call it's a wonderful day here in new york we've had a strong start to the year our business continues to perform well and we are making strategic progress one of our great strengths is the ability to execute and we have delivering on our financial commitments while we also invest to strengthen Pfizer for future growth and impact. In the first quarter, we exceeded expectations for both total revenues and adjusted diluted earnings per se. We have made progress so far this year in delivering our 2026 critical R&D milestones, including three positive phase three redoubts and encouraging misstaged redoubts for both approved and investigational medicines. We are keeping pace with our robust agenda of approximately 20 planned pivotal studies starts this year. We also had two significant legal developments that improved our growth profile post-2028 and, of course, our cash flow outlook. Our recent settlement agreements resolving infringement of patents related to Vindamux have the potential to change the growth profile of the company significantly post-2028. This gives us greater confidence that starting in 2029, we will enter a five-year period of high single-digit revenue caver. Additionally, we view the recent Belgium court ruling regarding comparative contracts with EU member countries as a positive for future EPS and cash flows. The improved visibility into our cash flow provide is a positive for our longer term capital allocation priorities, including, of course, our ability to preserve and support the dividend. As we look to the rest of the year, we are clearly focused on our most impactful opportunities to create value for patients and our shareholders. We previously shared our strategic priorities for 2026 and I will walk you through the progress you are making on all four. Our launched and acquired products had a tremendous start to the year with 22% growth. Three of our business development transactions represent about 8% of the invested capital in recent years and they are all progressing very well. Oncology represents our most advanced and concentrated area of research and commercial focus, and our season acquisition is the central reason why. Since bringing the company to Pfizer, we have transformed our oncology organization, unifying our team, expanding our commercial portfolio, and advancing a leading ADC platform. The 20% year-over-year operational revenue growth in the quarter of our seeds and products shows that we have made good progress in deepening our presence within the oncology community. We continue to strengthen physician engagement and drive greater recognition of the clinical value of our medicine. We are also executing with focus to maximize the value of our This underpins the strategy intended to position Pfizer as the leader in the next generation of obesity therapies. We intend to advance 10 phase 3 studies this year and we are targeting a first approval in 2028 from a portfolio that includes ultra-long-acting peptides with the potential, if successful, developed and approved, for competitive efficacy and tolerability with a differentiated monthly maintenance dosing schedule. The success we have achieved with Nurtec since our BioHeaven acquisition shows the power of our leading field force and commercial capabilities at work. NURTEC contributed in the first quarter with 41% operational growth driven by robust demand for both acute and preventive migraine treatments. We continue to see a meaningful growth opportunity in the oral CGRP class of medicines for patients with migraine. Of course, 2096 is a pivotal year for R&D, and I'm pleased with our early progress this quarter. While we have a large active pipeline, we rely on a rigorous and disciplined approach to focus resources where we see the greatest potential. We are targeting approximately 20 pivotal study starts, eight key data readouts, and four regulatory decisions this year. Our critical R&D milestones reinforce how we are concentrating investment in key areas such as oncology, metabolic disease, and vaccines, where we have existing commercial infrastructure, scientific expertise, and significant opportunity for competitive differentiation. Roughly half our anticipated key data results and regulatory decisions in 2026 are expected to come from oncology, where we are advancing multiple programs across areas such as breast, genutrile, thoracic, gastrointestinal, and blood cancer. During the quarter, we presented notable EV304 study findings for PADCEP at ASCO-GU. The results saw that PASSEP and Pembrolizumab reduces the risk of recurrence or death by nearly 50% in patients with cisplatin-eligible muscle-invasive bladder cancer. Combined with the recent compelling data from the EV-303 trial, this highlights the potential for this regimen to become the new standard of care for patients with muscle-invasive bladder cancer, regardless of cisplatin eligibility. Bladder cancer is diagnosed in more than 600,000 patients this year ago, including an estimated 85,000 in the U.S. MIBC represents approximately 30% of all these pulmonary cancer cases. The positive top-line results we shared last week from the Phase III Magnetis MN5 study of LREXFU represent a meaningful step towards our goal of reaching more patients earlier in the course of their disease. In this study, LREXFU significantly improved progression-free survival for double-class exposed patients with relapsed or refractory multiple myeloma who receive at least one prior line of treatment. This is a significant opportunity to address patient needs. Multiple myeloma, an aggressive and currently incurable blood cancer, is the second most common type of blood cancer worldwide, with over 36,000 new cases each year in the United States and over 187,000 new cases long. During the quarter, we also served randomized phase data for athermocycline, our potential first-in-class CDK4 inhibitor in patients with HR2 HER2 negative breast cancer who received prior CDK4-6 inhibitor-based treatment. This data suggests that the recycling has the potential to differentiate from the CDK4-6 inhibitor class with improved efficacy and tolerability, reinforcing our confidence in the molecule. Looking ahead, we remain focused on accelerating this investigational medicines development in first line and early breast cancer, where it may provide even greater impact for patients. We view this as an important opportunity to deliver a next-generation backbone therapy building on Pfizer's long commitment to patients with breast cancer. In vaccine, we have been working with regulators on the pathway for expanding coverage through our next-generation pneumococcal conjugate vaccine to extend our leadership in this competitive space. Yesterday, we initiated our Phase III program for our 25-valent pediatric vaccine candidates with increased valency and next-generation serotype III technology. I am also pleased to provide an update on our strategy in the adult market. We have decided to advance directly to our fifth-generation adult vaccine candidate. And today, I'm proud to share for the first time that it includes coverage for 35 serotypes. We believe this gives us the strongest opportunity to maintain our current market leadership in the adult market over the long term, and we expect to enter clinical development this In INI, we announced a positive readout in March from a Phase 2 trial of the Therolorechemy. our investigational tri-specific antibody in atopic dermatitis. We intend to advance a broad clinical development program for this investigational medicine, which was discovered in-house at Pfizer and is currently being evaluated in atopic dermatitis and also in asthma and COPD. We remain on track with our commitment and our continued focus on on what matters most, maximizing the long-term value of our pipeline for patients as I hope. We are investing with strategic discipline and focus to build the foundational supporting our aim of high single digit five-year revenue caker. It's vital that our R&D organization has the resources to advance our robust pipeline, including both internally discovered programs and opportunities we have added through strategic moves, such as our acquisition of Metzera and our licensing agreements with 3S Bayer and Yalfall. Our commercial teams are leaders in translating scientific progress into real-world impact. We are furthering investments to provide them with capabilities, technology and support, helping our medicines reach the right patients at the right time so we can deliver sustained value. We also remain deeply committed to our shareholders. We intend to maintain and over time grow our dividend as we continue to deliver and build long-term value. Inventing the use of artificial intelligence across our company is a key strategic priority, and we are driving continued progress in R&D, commercial, manufacturing, and core enterprise functions. We are empowering our colleagues to accelerate innovation by pairing frontier AI tools tailored to function and role with comprehensive and continuously updated training. One of the areas where we see the most substantial promise is the discovery, development, and delivery of new medicines and vaccines. Leveraging the power of AI to compress timelines and improve decision making is central to our innovation strategy. We are embedding AI into its functional line of R&D. Pfizer has a vast repository of small and large molecule, translational and clinical data. And AI is creating the opportunity to unlock insights that could drive a significant impact on how we discover and develop medicines and vaccines. So with that now, I will turn it over to Dave to speak about the financial performance of the company. Great, thank you,

Albert, and good morning. Let me begin by highlighting that our strong first quarter performance reflects the continued disciplined execution across our strategic priorities, and, importantly, continued progress in repositioning the company for sustainable growth. We are making targeted investments today to drive revenue growth later in the decade and beyond. Looking ahead, Pfizer is entering a new phase. Our launched and acquired products, combined with a strengthening pipeline, are positioning the company with the ability to deliver growth towards the end of the decade. While we remain focused on managing near-term LOE headwinds, ends, we are actively building the foundation for durable long-term value creation. And with that as context, I'll review our first quarter results, discuss our capital allocation priorities, and conclude with an update on our 26 guidance, which we are reaffirming today. In the first quarter of 26, revenues were $14.5 billion, exceeding our expectations and representing an operational increase of 2%. Excluding our COVID products, the underlying business delivered approximately 7% operational revenue growth, reflecting solid demand across key brands and continued strong commercial execution. On the bottom line, first quarter reported diluted earnings per share was $0.47 and adjusted diluted earnings per share was $0.75, also exceeding our expectations. In addition to our strong revenue, this outperformance also reflects our ongoing commitment to managing our cost base and to drive productivity across the organization. Our results this quarter demonstrate the effectiveness of our refined commercial strategy. We saw solid contributions across our product portfolio, primarily driven by PADCEF, Eliquis, Nertek, Labrena, and the Vindiquel family, each reflecting focused execution in our key therapeutic areas. Our launched and acquired products delivered $3.1 billion in the first quarter, and revenues grew by approximately 22% operationally. These results demonstrate the early impact of our portfolio transition and our investment strategies. We continue to invest behind these product groups to support their growth, which we expect will enable the company to partially offset upcoming LOE headwinds over the next several years. Adjusted gross margin for the first quarter was approximately 76%, primarily the result of product mix during the quarter and ongoing cost control measures. I do want to note accrued royalty expense was higher in this quarter and dampened gross margin compared to the first quarter of last year. With that said, strong cost management across our manufacturing footprint remains a top priority. As a reminder, over the past several years, our adjusted gross margins have generally remained in the mid to upper 70s when excluding Comerty, which has a 50-50 profit split with our partner, BioNTech. We continue to expect approximately 700 million dollars in savings from our phase one of our manufacturing optimization program this year with approximately 175 million realized in this quarter total adjusted operating expenses were five and a half billion dollars for the first quarter of 26 an increase of four percent operationally versus the first quarter of last year and now looking at the components adjusted SIA expenses decreased 5% operationally, primarily reflecting lower marketing and promotional spending on various products, from more targeted investments and ongoing productivity improvements, as well as lower spending in corporate enabling functions. Adjusted R&D expenses increased 11% operationally, primarily driven by an increase in spending in certain oncology and obesity product candidates. First quarter of 2026, adjusted operating margin was strong at 38% and above pre-pandemic levels, demonstrating effective cost management as well as revenue performance. We have already made meaningful progress on our productivity initiatives and remain on track to deliver the majority of the anticipated $7.2 billion in total net cost savings by the end of 26 and looking ahead we will continue to identify opportunities to further enhance efficiencies while prioritizing investments that support future growth turning to the bottom line q1 reported diluted earnings per share again was 47 cents and our adjusted diluted earnings per share was 75 75 cents which benefited from our strong non-covid revenue and efficient operating structure now with that let me turn to our capital allocation strategy. Our strategy is designed to enhance long-term shareholder value while preserving flexibility. It includes reinvesting in the business at appropriate returns, maintaining and over time growing our dividend, and preserving optionality for future value-enhancing actions, including share repurchases. In Q1, we invested $2.5 billion in internal R&D, returned $2.4 billion to shareholders via the quarterly dividend, and our completed business development activity was minimal. We closed on the sale of our stake in VEVE in the second quarter, providing us with approximately $1.65 billion in net proceeds after taxes and customer closing costs. Our BD capacity, when including the VEVE proceeds, is approximately $7 billion. dollars first quarter 26 operating cash flow was 2.6 billion dollars and leverage ended the quarter at approximately 2.8 times and as just a reminder given the loe headwinds over the next few years we expect leverage to remain around the current levels or even slightly higher through the transition period i will also mention that we made our final tcja repatriation tax payment of approximately $2.6 billion in April. Based on our performance to date and continued execution, we are reaffirming our full year 26 guidance today. We continue to expect total company revenues in the range of $59.5 billion to $62.5 billion and adjusted diluted earnings per share in the range of $2.80 to $3 a share. This outlook reflects our expectation of strong contributions across our product portfolio, adjusted gross margins in the mid-70s range, disciplined cost management, and continued investments to support growth by the end of this decade. As a reminder, sustained low disease levels of COVID will likely continue to weigh on Paxlovid utilization over the next several months. And additionally, our plan assumes that the majority of commodity sales will occur towards the end of the year and consistent with the vaccination season and as always we continue to monitor current currency fluctuation as the year progresses in closing over the next several years our focus remains on investing in key assets while managing upcoming loe events primarily from this year through 2028 as we look towards the end of the decade growth is expected to be driven by our advancing r d pipeline and continued progress of our launched and acquired products. Following the Vindem Act settlement, we now have a clear line of sight to a high single-digit five-year revenue CAGR post-2028. Furthermore, this event combined with our legal win in the Belgium port regarding the EU community contract will enhance our cash flow post-2028. We continue to position Pfizer for of durable long-term growth and shareholder value. And with that, I'll now turn the call back over to Albert to begin the Q&A session. Thanks, Dave. Nice quarter.

Now operator, please assemble the queue.

Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. And our first question today comes from Vommel Devon with Guggenheim. Your line is now open.

Great. Thanks for taking the question. So I'll keep it to one. And I think a lot of focus on the upcoming ABA meeting. I'm just curious if you can just kind of clarify exactly what we should expect to see. I know a lot of us see Vesper 3, but any other data that we should expect from a Pfizer perspective. And I think we've been talking about hosting an investor event in conjunction with the meeting. So I'm curious if there's any other details you can share around ASMO. Thanks.

So, Chris, the question is for you. How much of the data are you going to disclose in the ATA?

Thank you very much for the question. It's obviously a very important programme. We're excited with the progress, and since the close of Medsera, as you know, we had exceptional execution, not only in the clinical development, but also on the commercial development side, as well as CMC and on the pharmaceutical sciences as well as the devices. Detailed data from VESPA 3 will be shared. The top line data we presented last time at the 4Q25 earnings. Data from VESPA 1, the open label extension will be shared, as well as data from VESPA 2, which is weekly beribenetite, our new name for our GLB-1, with or without titration in participants with type 2 diabetes will be shared. We will not share it yet at ADA and date on amylin mono. We expect 24 weeks monotherapy and 28 weeks combination with the amylin and GLP-1. That will be shared in the second half

of this year. Thank you, Chris. Next question. Our next question comes from Dave Reisinger

with LearInc Partners. Your line is now open. Yes. Thanks very much. So my questions are on your oncology readouts this year that could move the needle for the company. Could you comment on your expectations for SV and MEVRO pivotal readouts this year? And then separately, if you could just please provide an update on your restructuring of corporate strategy and business development operations at the company. Thank you.

Thank you very much, Dave. Let me take the second one and then Chris will address the ESV and the member. We did some changes in our organizational structure that are aligned with our constant effort to simplify. We have reduced the members of my executive team by four over the next couple of years, the last two years. So, the business development moved under Chris Boston because most of the business development are right now related with R&D pipeline and choices. We see significant improvement in any friction that could exist and how smooth things could work by doing that. We also moved the commercial development, which is all the commercial strategies that were sitting in that group, into the global marketing of the organization. And that creates also a significant amount of synergies by having global and new products, global marketing dealing with new products and with our old products. That went under Amir. Alexander took over the responsibility to manage the portfolio management team. He's the new chair. And he is focusing on prioritizing the pipeline. And then the strategy group moved to my chief of staff, so in the office of the CEO, where I can have also better supervision. So this is the changes that happen into our organization, and we feel that they are consistent with everything we were planning,

which is simplification of our business. Chris? Thank you very much. So to start with SV, an important program for us, integrin beta-6 is a highly differentiated target, over-expressing 90% of lung cancers and little-expressing normal tissue in the lung. We were encouraged by the first line data, I mean the phase one data, which we shared, albeit a single arm experience with a median overall survival of approximately 16.3 months. The second line study, just a reminder, focused on non-squamous based on the signals we've seen. Phase three study against dozitaxel, the study statistically powered, should it be positive for overall survival, it will also be clinically meaningful. Just a reminder, we also have an ongoing phase three trial in the TPS high, TPS more than 50. Data will be shared at ASCO from the phase one experience. This is PEMBRO versus PEMBRO plus SV. A reminder that last year we shared data for that combination of PD-L1 high, a handful of patients, but everyone responded in that population. So it was 100% response rate in a small population. For mefro-metastat, again, an important differentiated, highly specific differentiated EZH2. The first study that we'll read out is MEFRO1, which is in patients post-abiraterone, a significant unmet need of enzalidomide versus, I'm sorry, enzalidomide plus EZH2 versus physician's choice of enzalidomide or dozitansyl. And that should read out middle or second off of this year. Thank you. Thank you, Chris. I'll create the next question.

Our next question comes from Chris Schott with JP Morgan. Your line is now open.

Great, thanks so much for the questions. Maybe just two for me. First, maybe for Dave or the broader team, I know you typically don't raise guidance with 1Q, but it does seem like a very solid start to the year from a revenue perspective. Can you just talk generally about the business trends versus your expectations and just how you're thinking about the year progressing from here? And a second question for me was on BD capacity. You mentioned $7 billion. I guess just given the Vendamax clarity, could the company look at larger transactions if the right deal it were to present itself, or is the focus still much more on the internal pipeline and maybe smaller tuck-ins from here?

Yeah, Chris, Dave here. Yes, I think to your first question, company's off to a really solid start in Q1. If you look kind of up and down and across the board from a product perspective, we exceeded expectations on top line and bottom line and really strong cost control and cost management and very disciplined execution. So, yes, setting ourselves up really well for delivery for the balance of the year. As you well know, Chris, I have a philosophy of not really adjusting in Q1. I think, as you well know, if you look at our COVID franchise, it will always be back half-weighted because of the seasonality of this. And so, we are, if anything, have de-risked delivery on that without raising guidance. So, absent that, we probably would be raising guidance. So, again, strong performance. Secondly, as I said, we do have $7 billion in BD capacity. Obviously, this development from a legal perspective actually gives us more confidence in our cash flow delivery over the next several years. And we constantly look at BD and understand what is appropriate strategically to do from a BD perspective to support the needs of the company and to deliver long-term value.

Thank you, Dave. Next question.

Thank you. Our next question comes from Carrie Holford with Barenberg. Your line is now open.

Thank you for taking my question. Just on community, I wonder if you can just talk a little bit more about the vaccination rates you're expecting this year within the US and international regions. And then just coming back to the international region, can you talk a little bit more about the existing European contracts reminder for those existing phase payments? and in the context of that recent belgian court decision the two items are together how do we think about the evolution of ex-us sales for that vaccine okay let's start with international then

we move to with alexander and then amir will speak about the vaccination rates in the u.s

yes no good question just to put context the decline that you see in q1 on community has nothing to do with vaccination is really the effect of last year we shipped our last contract elements of our contract with the UK so we don't have that contract anymore in 2026 and that's why you have a reduction but it doesn't really talk about the vaccination rate actually we went through the vaccinations numbers in Europe in 2025 and mostly stable versus 2024 of course you have differences for instance in France the vaccination rate is around 25 percent of the other adults in Spain it's going to be around 35 percent but those rates are stable and we see governments willing to continue to invest and increase awareness of their older and at-risk population to get vaccination in 2026 we will work with those governments across the European unions to actually continue to execute our contract the same way we did in previous years Now, with regard to the to the legal case and the court judgments on April 1st, 2026, the court judgment is very clear and we've started to work with the governments in Poland and Romania to actually execute the judgment. And we're discussing the best pass forwards to implement that judgment.

Thank you, Alexander. So, Amir, what about the U.S.?

Vaccination rates in the U.S., obviously, it's very different for every segment. in COVID with Comirnaty, there was a narrowing of the label. So we did see a shrinking of the market a bit. In the case of RSV, we always see now going past our third seasons with a tougher to activate adult population, but growing on the maternal space. And there's population dynamics with Prevnar, both with kids and adults. So we see ups and downs in the vaccination rates as a result of those dynamics but what i feel very good and very confident about is the way that we're executing in that market so if you look at every single one of our my teams we have market leading positions of brisville at more than 60 percent community more than 60 percent prevenar keys nowadays four percent and prevenar adult even after many months of competition from mark holding share steady at 70 so i feel very good about the way that we're executing in a slightly

turbulent market. Thank you for the confidence, Amir. I share it with you. Next question, please.

Our next question comes from Umur Ratha with Evercore ISI. Your line is now open.

Hi, guys. Thanks for taking my question. And I appreciate some of the comments you made around maintaining the dividend. I just thought I would approach it from two different angles, if I may. First, I guess, what's the likelihood that Pfizer entertains a transformative M&A in near or medium term, which could end up impacting dividend, as we've seen in history? And then secondly, Albert, I guess, how are you personally, but also the board, thinking about your tenure at Pfizer and how it ties to dividend integrity beyond? Thank you very much.

look we never say never and we always look at every business possible business combination for an mna if you're asking me if right now we think that we are going to go for something very big a big merger no we think that right now in the next few years it is the time to execute an ai transformation of these organizations and that requires not the disruption of mega mergers. So I would say that we are open to everything and we are looking at everything that can create shareholder value, but it is not right now very high in our list to find something like that. The second question how I see my tenure, I see it like continuing. And I said multiple times that I was very proud for what we were able to achieve with COVID, but then if you are spoiled with this feeling of satisfaction, you want to do it again. So I'm planning to do it again, and hopefully with cancer and obesity and vaccines this time. Next question.

Our next question comes from Asad Hader with Goldman Sachs. Your line is now open.

Great. Thanks for taking the question. Albert, just going back to last December's guidance goal, you highlighted $17 billion of annual revenue impacted by LOEs by 2030. And now with the defamitous patent settlement extending that to mid-2031, your comments that you are aiming to achieve high single-digit five-year revenue growth starting in 2029, just if you could double-click on that a little bit more, just looking at the pipeline and the current BD aperture that you just described, just level set us on any updated thoughts on bridging the gap around how we should be thinking about the levers to drive this growth against the stacked LOEs and then just related embedded in this high single digit Kega what are the assumptions around your base business such as COVID and the current oncology products thank you

yes it is easier of course to forecast the base business because you know it's a constant so that it is following the normal trends that we expect based on product by product The LOEs also are easy to predict because they have the certainty of occurrence. Right now, you're right with this two and a half years delay of the LOE of a product that is $6 billion plus. It is providing significant, as you can understand, opportunity for cash flows, EPS, and changes the growth profile. That's why we spoke now, because with this uncertainty going, about our projections, about the growth profile, which we said it is starting in 29. It's a five-year high single-digit CAGR. So how that is built is built with the current portfolio, with the decline through the LOEs, and with the additions of pipeline that they are heavily risk adjusted. So it's not that we are having binary events. So the pipeline are multiple, as you know. We have a series of redoubts right now that will affect the revenues in the 29th. And so I think when I feel confident about that, because when it is a large number of pipeline assets risk adjusted, statistics usually work and those that will fail will fail and those that will succeed will succeed. But the risk adjustment takes into consideration about that. So very confident about the growth trajectory of the company starting in 29. And I'm also very confident that we navigate the LOEs, as you saw right now, very well. Started already this year, the LOEs. I also want to emphasize that always the strategy for LOEs was new and acquired products to do well because they were launched and acquired to offset the LOEs. They are growing 22% this year. They are already on $3.1 billion in a quarter, if you, without saying that that's the guidance, but if you multiply by four, just to give you, we are talking about over $12 billion this year and growing. And, you know, the 17 billions of LOEs now, after Finda, they are more 14 to 15 rather than 17. So I think it looks good. Thank you. Next question.

Our next question comes from Evan Zekerman with BMO Capital Markowitz. Your line is now open.

Hi, guys. Thank you so much for taking my question. I really want to touch on capital deployment, specifically when it comes to share repurchases. Dave, I know that that's been a method that you've wanted to employ now with clarity on Vindamax and the CAGR post-2028. What else do you need to see to potentially start buying back shares, especially at these levels? Thank you so much.

Yeah, Evan, great question. We always look at our capital allocation strategy and balance between the three options that we have. at the moment are focused really on investing in our R&D platform and in business development to drive long-term value. With the development in these court cases, that does give us a bit more confidence in our cash flow over time. So you'll see us the capital allocation share repurchase level will come back into greater consideration going forward. So great question, something we always work at, and we're always looking to do what's best for the company and shareholders long

term. Thank you, Dave. Very clear. Next question, please. Our next question comes from Courtney

Breen with Bernstein. Your line is now open. Hi, Pfizer team. Thanks for taking the question today. I just wanted to probe a little bit more on Sigvotatek-Vidoten and positioning in that frontline setting all comers relative to the symbiotic lung O1 study that you've already started with the PD-1 VEGF. I also note that you've got kind of a phase one, two running, combining these two assets. And so can you help contextualize that new phase three all-comers that you intend to start this year for SV first line and how that may be positioned relative to symbiotic lung O1? Thank you so much. All right, Chris. Thank you very much for the question.

And lung cancer is obviously a very significant unmet need and having a number of shots on goal now with a very differentiated portfolio gives us confidence that we can continue to play an important role in lung cancer beyond just in the targeted therapies like lulatinib. For SV, we are very encouraged by the data we've seen for the combination of pembrolizumab plus SV in the PD-L1 high population, where we previously showed in a small number, a small cohort of patients, that they all responded in the PD-L1 high to that combination. So the phase three study that's ongoing for pembrolizumab versus pembrolizumab for SV, that study is recruiting well in the first line setting, and we're confident for the readout for that study. Ongoing also is the second-line study, which is against dozitaxel, which was encouraged by the previous data we've seen, albeit in a single-arm experience, with the medium overall survival of 16.3 months. So that study should read out MATIA. That's dozitaxel versus SV, second-line, powered obviously for overall survival. And if it's positive, as I said earlier, it will be clinically meaningful. And then ongoing studies being planned also for the broader population in combination with chemo plus pembrolizumab. And we will share some of the data later this year, the early data for that combination. In terms of 4404, at ASCO, we will share the phase 2 data of 4404 monotherapy in first-line PD-L1 expressing non-small cell lung cancer. As you know, we recently shared data at AACR where we repeated the pre-clinical and early data generated by 3S-Bio in China. So we're really confident that this is a differentiated molecule. And the binding against VGFA is we've shown that AACR is higher affinity affinity than what's seen with fevacizumab or that's seen with competitive VGF-PT1 molecules. So confident in the molecule, we'll share more data later this year with a broad program starting, including in combination with chemo. And just a reminder, ASCA will also share data and with 4401 plus chemo in first line advanced recurrent endometrial cancer, another program that we plan to start a phase three program in.

Thank you, Chris. The next question.

Last question.

Thank you. Our final question comes from Louise Chin with Scotiabank. Your line is now open.

Hi, thanks for taking my question. I wanted to ask you, which key products do you think will drive the reacceleration of your growth in 2029 and beyond? And then regarding the international obesity opportunity, just curious what you've learned from the launch of your GLP-1 in China.

Alexander, let's start with you again this time, because the obesity in international You know, of course, the numbers have surprised how big the international market is. And then also speak about key products that will drive your growth in 29. And then, Amir, the U.S. key products that will drive growth in 29.

So a good question on the Echnoblutide launch in China. Of course, it's a very, very early day. We really launched the product Monday last week. So, I mean, it's only a week, so I can't really talk to you about the penetration of Echnoblutide in China. But what is really interesting is actually the incidence of chronic weight in China is quite high. It's 15% of the Chinese population and considering the size of the China population, that makes it one of the larger market for chronic weight management. And that's the reason why we decided on March, on February of this year to actually do this collaboration with Siwin Bioscience for the commercialization of an acnobiotide in China. And since then, we got the approval and commercialized these assets. Echnoblutite has a very interesting profile. And actually, he's demonstrating in a placebo control study a 15.1% weight loss at 48 weights, which is in power with the best GLP-1. With this bias mechanism of action of GLP-1, we think that we are bringing to market a very effective asset with a good tolerability profile. And of course, we're going to leverage our very strong primary care capabilities in China that puts Pfizer China as one of the leading in primary care. So the combination of a very attractive clinical profile plus our knowledge in this area, well, we believe Marcus a leader in this category. And we're not coming very late into the market because, remember, Lili really introduced their asset in the beginning of last year. So it's not like we're coming many years after the introduction of those assets. So, as I said, I'm very optimistic, both due to the profile of this asset and the capability that we have developed in China. Now, when it comes into the growth engine of the international, there are, I just want to step back one second. And if you look at the quarter and the fact that our non-COVID primary care group double-digit growth, we delivered two billion this quarter. Remember, we closed last year with a double-digit growth on primary care. Now, if you look at the specialty care, it's about 1.5 billion this quarter. We're delivering a double-digit growth again. That was on the back of a double-digit growth last year. And there are assets in those different areas that will continue to power our growth. If I come back to primary care, our vaccines are growing very strongly. And the reason why we are growing very strongly on vaccine is because both on thermocoprol and on RSV, we have a large population. If you look at, as you know, in thermocoprol, this is a very, this is a very, it's a very large population and two thirds of our vaccine business come from pediatrics. And of course, we have a large pediatric population to continue to grow. So both in maternal immunization and ophthalmococcal. So the vaccines have a potential to grow in pediatrics and in adults. Of course, a big growth at the end of the decades will come from the Medsera assets in chronic weight management because there are two elements of that. One, it's an underserved category with a large epidemic across the world, right? in some of the emerging markets we have a very high prevalence in Saudi, in Brazil, in Mexico of obesity and our presence in those markets will, with a strong primary care, will allow us to actually have this potential. But also it is a cash market which also is a big advantage in Europe, in Japan and other developed markets where right after approval we can introduce those product which is not the case today in many of our category because it takes a lot of time for reimbursement negotiation with the payer so you see we have an inline asset that will continue to power the growth and we are bringing assets like the medsera that will go straight to market and of course the oncology asset will come but it will take longer for reimbursement negotiation

thank you Alexander Amir now excite us for us um please thanks for the question there's many uh things that give us confidence about driving growth in the us in 29 if you take the first category we have products that are on the market today that have a lot of upside to them so if you think about pats of all of our recent growth has been primarily driven by lamuc we're at the high 50 penetration there and we've got lots of upside in midc 303 and 304 so there's a lot of headroom for growth there. Secondly, you look up a product like Nerdtech. We've got a lot of tailwind behind us now, but only 60% of people who write a Triptan have yet to write an oral CGRP. So there's a lot of bedroom for growth, and we're executing really well against that. Second, you look at some of our existing large franchises. We have a lot of confidence in what's going to happen with Binda. Now with two and a half years of additional exclusivity gives us the opportunity to invest and to continue to grow diagnosis. And we are doing a great job defending our existing patient base, as well as ensuring that it is the choice, the top choice for new patient starts. And so we think we have a lot of momentum on franchises like that as well. And then just to complement what Alexandre was saying, if I think about new areas of growth, we talked a lot about the oncology assets already, but obviously we're very excited about what we have to bring to the market in obesity the assets speak for themselves but what i'm particularly excited about is the fact that we have unique capabilities as a company to win in this area both in terms of our ability to activate consumers and patients in very different ways as well as our legacy uh in this space and the fact that almost 60 percent of positions who are going to write these products we already touched today through a combination of our well off-field courses. So those combinations are just some examples of what gives us top

attention to growing 2019. Thank you, Amir, and thank you everyone for your attention. Our strong performance in the quarter reflects the impact of our continued focus and discipline execution. We are engaging with precision to maximize the value of our commercial portfolio, and we are seeing the result in our financial performance. In our end, you are making meaningful progress with a robust slate of critical milestones ahead in 2026 that we believe will further demonstrate the strength and breadth of our pipeline. I want to thank my Pfizer team. I believe we have the best team Pfizer ever had. They are dedicated to our purpose, continue to deliver and embrace our commitment to creating long-term value for patients and for our shareholders. Thank you for joining the call today and thank you for your interest in Pfizer. We look forward to sharing further updates as we execute our priorities throughout the year.

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