Pfizer (PFE) Morgan Stanley 24th Annual Global Healthcare Conference summary

Opening remarks and resolution of headwinds

• Three major 2025 headwinds—tariffs/MFN, COVID uncertainty, and LOE period—have been addressed satisfactorily.

• COVID is no longer a concern for EPS, with performance exceeding expectations despite a minimal COVID season.

• Business development and new product launches have offset LOE impacts, with $7.2B in cost reductions over three years.

• New products and BD assets are generating ~$13B annually, growing at over 20%.

• Investor focus has shifted from COVID and LOEs to pipeline strength.

Policy and regulatory environment

• No major policy changes expected until after the U.S. midterms; only bipartisan-supported reforms likely to advance.

• PBM reform is progressing with bipartisan support; 340B remains unresolved due to political sensitivities.

• HHS will launch a 340B pilot in January 2027, impacting key products.

• International pricing issues are being addressed through U.S. trade negotiations.

Business development and strategic investments

• Nearly $80B invested in business development over three years, with major deals in Seagen, Biohaven, and Metsera.

• Current focus is on maximizing value from recent acquisitions, especially in China and early-stage assets.

• China is a key innovation source, with rigorous due diligence and significant R&D presence.

• Political risks exist on both U.S. and Chinese sides regarding cross-border biotech deals.