What changed in this filing

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Item 1. Business

2024-02-22 compared with 2023-02-23 · 390 added, 232 removed, 306 unchanged (67% of the section changed)

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Most of our revenues come from the manufacture and sale of biopharmaceutical products.

We believe that our medicines and vaccines provide significant value for healthcare providers and patients, through improved treatment of diseases, improvements in health, wellness and productivity as well as by reducing other healthcare costs, such as emergency room or hospitalization.

We seek to enhance the value of our medicines and vaccines and actively engage in dialogues about how we can best work with patients, physicians and payers to prevent and treat disease and improve outcomes.

We seek to maximize patient access and evaluate our pricing arrangements and contracting methods with payers to minimize adverse impact on our revenues within the current legal and pricing structures.

We also sell products for the detection of certain illnesses and provide end-to-end R&D services to select innovative biotech companies.

We believe that our medicines and vaccines provide significant value for healthcare providers and patients through improved treatment of diseases and improvements in health, wellness and productivity as well as by reducing other healthcare costs, such as emergency room visits or hospitalizations.

We seek to enhance the value of our medicines and vaccines and actively engage in dialogues about how we can best work with patients, physicians and payors to prevent and treat disease and improve outcomes.

We seek to maximize patient access and evaluate our pricing arrangements and contracting methods with payors to minimize adverse impact on our revenues within the current legal and pricing structures.

We are committed to fulfilling our purpose:

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Our purpose fuels everything we do and reflects both our passion for science and our commitment to patients.

In addition, Pfizer continues to enhance its ESG strategy, which is focused on six areas where we see opportunities to create a meaningful impact:

Our core business principles are:

Trust is Everything

Science Will Win

Disruption Calls for Innovation

Execution Makes the Difference.

In addition, Pfizer’s ESG strategy, which is integrated into our corporate strategy, focuses on six areas where we see opportunities to create a meaningful impact:

product innovation;

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We are committed to strategically capitalizing on growth opportunities, primarily by advancing our own product pipeline and maximizing the value of our existing products, but also through various business development activities.

We view our business development activity as an enabler of our strategies and seek to generate growth by pursuing opportunities and transactions that have the potential to strengthen our business and our capabilities.

2023 Form 10-K

capabilities.

We assess our business, assets and scientific capabilities/portfolio as part of our regular, ongoing portfolio review process and also continue to consider business development activities that will help advance our business strategy.

Our significant recent business development activities in 2022 include, among others:

(i) the March 2022 acquisition of Arena, a clinical stage company developing innovative potential therapies for the treatment of several immuno-inflammatory diseases;

(ii) the October 2022 acquisition of GBT, a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments that provide hope to underserved patient communities, starting with sickle cell disease;

and (iii) the October 2022 acquisition of Biohaven, the maker of Nurtec ODT/Vydura (rimegepant), an innovative therapy for both acute treatment of migraine and prevention of episodic migraine in adults.

On December 14, 2023, we completed our acquisition of Seagen, a global biotechnology company that discovers, develops and commercializes transformative cancer medicines.

With the addition of Seagen’s pipeline and its four in-line medicines (Padcev, Adcetris, Tukysa and Tivdak), Pfizer’s oncology portfolio spans multiple modalities, including ADCs, small molecules, bispecifics and other immunotherapies.

In addition to the acquisition of Seagen, our significant recent business development activities in 2023 include, among others, the September 2023 divestiture of our early-stage rare disease gene therapy portfolio to Alexion.

For a further discussion of our strategy and our business development initiatives, see the Overview of Our Performance, Operating Environment, Strategy and Outlook section within MD&A and Note 2 .

COMMERCIAL OPERATIONS

In the fourth quarter of 2021, we began managing our commercial operations through a global structure consisting of two operating segments, each led by a single manager:

Biopharma, our innovative science-based biopharmaceutical business, and PC1, our global contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients.

Beginning in the third quarter of 2022, we made several organizational changes to further transform our operations to better leverage our expertise in certain areas and in anticipation of potential future new product or indication launches.

2022 Form 10-K 3

The changes include establishing a new commercial structure within Biopharma, optimizing our end-to-end R&D operations and further prioritizing our internal R&D portfolio, as well as realigning certain enabling and platform functions across the organization to ensure alignment with this new operating structure, which is designed to better support and optimize performance across three broad customer groups as follows:

Customer Groups Description Key Products

• Former Internal Medicine product portfolio (innovative brands in cardiovascular metabolic, migraine and women’s health, as well as regional brands)

• Former Vaccines product portfolio (innovative vaccines across all ages with a pipeline focus on infectious diseases with significant unmet medical need)

• Products for COVID-19 prevention and treatment, and potential future mRNA and antiviral products

• Eliquis, Nurtec ODT/Vydura and the Premarin family

• The Prevnar family, Nimenrix, FSME/IMMUN-TicoVac and Trumenba

In 2023, we managed our commercial operations through a global structure consisting of two operating segments, each led by a single manager:

Biopharma, our innovative science-based biopharmaceutical business, and Business Innovation, an operating segment established in the first quarter of 2023 that includes PC1, our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients, and Pfizer Ignite, an offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with our R&D focus areas.

In 2023, Biopharma was the only reportable segment.

The commercial structure within Biopharma included three broad customer groups in 2023:

Primary Care, Specialty Care and Oncology.

At the beginning of 2024, we made changes in our commercial organization to incorporate Seagen and improve focus, speed and execution.

Specifically, within our Biopharma reportable segment we created the Pfizer Oncology Division, the Pfizer U.S.

Commercial Division, and the Pfizer International Commercial Division:

Pfizer Oncology Division

Combines the U.S.

Oncology commercial organizations, global Oncology marketing organizations and global and U.S.

Oncology medical affairs from both Pfizer and Seagen.

Includes innovative oncology product portfolio of ADCs, small molecules, bispecifics and other immunotherapies that treat a wide range of cancers including certain types of breast cancer, genitourinary cancer and hematologic malignancies, as well as certain types of melanoma, gastrointestinal, gynecological and thoracic cancers, which includes lung cancer.

Commercial Division

Includes the U.S.

Primary Care and U.S.

Specialty Care customer groups, the Chief Marketing Office, the Global Chief Medical Affairs Office and Global Access & Value.

Primary Care includes:

• Internal medicine product portfolio of brands in cardiovascular metabolic, bone graft for spinal fusion and women’s health, as well as post-LOE brands.

• Migraine product portfolio.

• Vaccines product portfolio across all ages with a pipeline focus on infectious diseases with significant unmet medical need, including COVID-19.

• Treatment for COVID-19.

• Products for detection of COVID-19 and influenza.

Specialty Care includes:

• Former Inflammation & Immunology product portfolio (innovative brands and biosimilars for chronic immune and inflammatory diseases)

• Former Rare Disease product portfolio (innovative brands for a number of therapeutic areas with rare diseases, including amyloidosis, hemophilia, endocrine diseases and sickle cell disease)

• Former Hospital portfolio (global portfolio of sterile injectable and anti-infective medicines, excluding Paxlovid)

• Inflammation & immunology product portfolio of brands and biosimilars for chronic immune and inflammatory diseases.

• Rare disease product portfolio of brands for a number of therapeutic areas with rare diseases, including amyloidosis, hemophilia, endocrine diseases and sickle cell disease.

• Hospital product portfolio of sterile injectable and immunoglobulin medicines.

Pfizer International Commercial Division

Includes the ex-U.S.

commercial and medical affairs organizations covering Pfizer’s entire product portfolio in all international markets.

Select products within Oncology, Primary Care and Specialty Care include:

Ibrance, Xtandi, Inlyta, Bosulif, Lorbrena, Braftovi, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio and Tivdak

• Primary Care:

◦ Internal medicine :

Eliquis, the Premarin family and BMP2

Nurtec ODT/Vydura and Zavzpret

Comirnaty, the Prevnar family, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix and Trumenba

◦ Treatment for COVID-19 :

◦ Detection of COVID-19 and influenza :

Lucira by Pfizer

• Specialty Care:

◦ Inflammation & immunology :

Xeljanz, Enbrel (outside the U.S.

and Canada), Inflectra, Eucrisa/Staquis and Cibinqo

• The Vyndaqel family, Oxbryta, BeneFIX and Genotropin

• Sulperazon, Medrol, Zavicefta, Zithromax, Vfend and Panzyga

Includes innovative oncology brands of biologics, small molecules, immunotherapies and biosimilars across a wide range of cancers.

Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena and Braftovi

and Canada), Inflectra, Cibinqo, Litfulo and Velsipity

◦ Rare disease :

the Vyndaqel family, Genotropin, BeneFIX, Oxbryta, Somavert and Ngenla

Sulperazon, Zavicefta, Zithromax, Medrol and Panzyga

For additional information on our operating segments and products, including product revenues, see Note 17 , and for additional information on the key operational revenue drivers of our business, see the Analysis of the Consolidated Statements of Income section within MD&A.

For a discussion of the risks associated with our dependence on certain of our major products, see the Item 1A.

Risk Factors—Concentration section in this Form 10-K.

Risk Factors—Concentration section.

RESEARCH AND DEVELOPMENT

R&D is at the heart of fulfilling our purpose to deliver breakthroughs that change patients’ lives as we work to translate advanced science and technologies into the therapies that may be the most impactful for patients.

In addition to discovering and developing new products, our R&D efforts seek to add value to our existing products by improving their effectiveness and ease of dosing and by discovering potential new indications.

R&D is at the heart of fulfilling our purpose to deliver breakthroughs that change patients’ lives as we work to translate advanced science and technologies into the medicines and vaccines that may be the most impactful for patients.

In addition to discovering and developing new products, our R&D efforts seek to add value to our existing products by improving their safety, efficacy and ease of dosing and by discovering potential new indications.

2023 Form 10-K

Our R&D Priorities and Strategy.

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In 2023, we continued to strengthen our global R&D operations and pursue strategies to improve R&D productivity to achieve a sustainable pipeline that is positioned to deliver value in the near term and over time .

Our R&D activity is conducted through various platform functions that operate in parallel within our global operations, including the following:

Research units within WRDM are generally responsible for research and early-stage development assets for our business (assets that have not yet achieved proof-of-concept) and are organized by therapeutic area to enhance flexibility, cohesiveness and focus.

We can rapidly redeploy resources within a research unit and between various projects to leverage, as necessary, common skills, expertise or focus.

Science-based platform-services organizations within WRDM provide technical expertise and other services to various R&D projects and are organized into science-based functions.

These organizations allow us to react more quickly and effectively to evolving needs by sharing resources among projects, candidates and targets across therapeutic areas and phases of development.

Our GPD organization is a unified center for clinical development and regulatory activities that is generally responsible for the clinical development strategy and operational execution of clinical trials for both early- and late-stage clinical assets in Pfizer’s pipeline.

We manage R&D operations on a total-company basis through our platform functions described above.

Specifically, the Portfolio Management Team (PMT), composed of senior executives, is accountable for aligning resources among all of our WRDM, GPD and R&D projects and for seeking to ensure optimal capital allocation across the innovative R&D portfolio.

Our R&D activity is conducted through various platform functions that support our global operations.

Beginning in July 2023, in consideration of planned future investments in oncology, including the December 2023 acquisition of Seagen, we reorganized our R&D platform operations.

Discovery to late-phase clinical development for oncology is performed by a new end-to-end Oncology Research and Development (ORD) organization and discovery to late-phase clinical development for all remaining therapeutic areas is consolidated into the end-to-end Pfizer Research and Development (PRD) organization.

ORD and PRD replace our former WRDM and GPD organizations, where, prior to July 2023, research units within WRDM were generally responsible for research and early-stage development assets and, prior to July 2023, GPD was generally responsible for the clinical development strategy and operational execution of clinical trials for both early- and late-stage clinical assets in Pfizer’s pipeline.

In 2023, Biopharma received R&D services from ORD, PRD and the predecessor WRDM and GPD organizations.

These services included IPR&D projects for new investigational products and additional indications for in-line products.

We manage R&D operations on a total-company basis through our PRD and ORD organizations described above.

Specifically, the Portfolio Management Team, currently led by our Chairman and Chief Executive Officer and composed of other senior executives, is accountable for aligning resources across PRD and ORD, and for helping to ensure optimal capital allocation across the innovative R&D portfolio.

We believe that this approach also serves to maximize accountability and flexibility.

2022 Form 10-K 4

We do not disaggregate total R&D expense by development phase or by therapeutic area since, as described above, we do not manage all of our R&D operations by development phase or by therapeutic area.

Further, as we are able to adjust a significant portion of our spending quickly, we believe that any prior-period information about R&D expense by development phase or by therapeutic area would not necessarily be representative of future spending.

For additional information, see the Costs and Expenses — Research and Development Expense s section within MD&A and Note 17 .

For additional information on our R&D operations, including R&D related costs and expenses, see the Costs and Expenses — Research and Development Expenses section within MD&A and Note 17 .

Our R&D Pipeline.

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Development of a single compound is often pursued as part of multiple programs.

While our drug candidates may or may not receive regulatory approval, new candidates entering clinical development phases are the foundation for future products.

Information concerning several of our drug candidates in development, as well as supplemental filings for existing products, is set forth in the Product Developments section within MD&A.

While our product candidates may or may not receive regulatory approval, new candidates entering clinical development phases are the foundation for future products.

Information concerning several of our drug and vaccine candidates in development, as well as supplemental filings for existing products, is set forth in the Product Developments section within MD&A.

The discovery and development of drugs, vaccines and biological products are time consuming, costly and unpredictable.

For information on the risks associated with R&D, see the Item 1A.

Risk Factors—Research and Development section in this Form 10-K.

COLLABORATION AND CO-PROMOTION

Risk Factors—Research and Development section.

COLLABORATION AND CO-PROMOTION AGREEMENTS

We use collaboration and/or co-promotion arrangements to enhance our development, R&D, sales and distribution of certain biopharmaceutical products, which include, among others, the following:

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We fund between 50% and 60% of all development costs depending on the study, and profits and losses are shared equally except in certain countries where we commercialize Eliquis and pay a percentage of net sales to BMS.

In certain smaller markets we have full commercialization rights and BMS supplies the product to us at cost plus a percentage of the net sales to end-customers.

2023 Form 10-K

certain smaller markets we have full commercialization rights and BMS supplies the product to us at cost plus a percentage of the net sales to end-customers.

• Xtandi (enzalutamide) is an androgen receptor inhibitor that blocks multiple steps in the androgen receptor signaling pathway within tumor cells that is being developed and commercialized in collaboration with Astellas.

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For international net sales we receive royalties based on a tiered percentage.

• Bavencio (avelumab) is a human anti-programmed death ligand-1 (PD-L1) antibody that is being developed and commercialized in collaboration with Merck KGaA.

We jointly fund the majority of development and commercialization costs and split profits equally related to net sales generated from any products containing avelumab.

• Orgovyx (relugolix) is an oral gonadotropin-releasing hormone (GnRH) receptor antagonist for the treatment of adult patients with advanced prostate cancer that is being developed and commercialized with Myovant.

The companies are also collaborating on Myfembree (relugolix 40 mg, estradiol 1.0 mg, and norethindrone acetate 0.5 mg) for heavy menstrual bleeding associated with uterine fibroids in premenopausal women and the management of moderate to severe pain associated with endometriosis in premenopausal women.

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for Orgovyx, and in the U.S.

and Canada for Myfembree, with Myovant bearing our share of allowable expenses up to a maximum of $50 million in 2022.

and Canada for Myfembree.

Pfizer does not have rights outside of these markets.

Myovant remains responsible for regulatory interactions and drug supply and continues to lead clinical development for the relugolix combination tablet.

Revenues associated with these arrangements are included in Alliance revenues (except in certain markets where we have direct sales and except for the majority of revenues for Comirnaty, which are included as direct product revenues).

In addition, we have collaboration arrangements for the development and commercialization of certain pipeline products that are in development stage, including, among others, (i) with BioNTech to develop a modified mRNA-based vaccine for the prevention of varicella zoster (Shingles), and (ii) with Valneva to co-develop and commercialize Valneva’s Lyme disease vaccine candidate, VLA15.

For further discussion of collaboration and co-promotion agreements, see the Item 1A.

Risk Factors—Collaborations and Other Relationships with Third Parties section in this Form 10-K and Notes 2 and 17 .

SMPA remains responsible for regulatory interactions and drug supply and continues to lead clinical development for the relugolix combination tablet.

• Padcev (enfortumab vedotin-ejfv) is a first-in-class ADC that is directed to Nectin-4, a protein located on the surface of cells and highly expressed in bladder cancer, that is being co-developed and jointly commercialized with Astellas.

In the U.S., Padcev has been approved for use with Keytruda (pembrolizumab) for adult patients with locally advanced or metastatic urothelial cancer.

Other approvals and indications for Padcev vary by market.

In the U.S., the companies jointly promote, and we record net sales and are responsible for all U.S.

distribution activities for Padcev.

The companies each bear the costs of their own sales organizations in the U.S., and equally share certain other costs associated with commercializing and any profits realized in the U.S.

Outside the U.S., we have commercialization rights in all countries in North and South America, and Astellas has commercialization rights in the rest of the world.

The agreement between us and Astellas provides that the companies will effectively equally share in profits realized in markets outside of the U.S.

(i) a costs-incurred and profit-sharing mechanism based on product sales and costs of commercialization in certain markets and (ii) a royalty-payment mechanism intended to approximate an equal profit share for both parties in the remaining markets.

In addition, we have collaboration and/or co-promotion arrangements with respect to certain other biopharmaceutical products, including Adcetris and Tivdak as a result of our acquisition of Seagen.

For further discussion of collaboration and co-promotion agreements, see the Item 1.

Business—Patents and Other Intellectual Property Rights section , the Item 1A.

Risk Factors—Collaborations and Other Relationships with Third Parties section and Notes 2 and 17 .

INTERNATIONAL OPERATIONS

Our operations are conducted globally, and we supply our medicines and vaccines to over 185 countries and territories.

Our operations are conducted globally, and we supply our medicines and vaccines to approximately 200 countries and territories.

Emerging markets are an important component of our strategy for global leadership, and our commercial structure recognizes that the demographics and rising economic power of the fastest-growing emerging markets are becoming more closely aligned with the profile found within developed markets.

Urbanization and the rise of the middle class in emerging markets provide potential growth opportunities for our products.

2022 Form 10-K 5

Revenues from operations outside the U.S.

of $57.9 billion accounted for 58% of our total revenues in 2022.

of $31.4 billion accounted for 54% of Total revenues in 2023.

Revenues exceeded $500 million in each of 14, 24 and 21 countries outside the U.S.

in 2023, 2022 and 2021, respectively.

The increase in the number of countries exceeding $500 million in revenues in 2022 and 2021 was primarily driven by Comirnaty as well as, in 2022, Paxlovid.

As a percentage of revenues, our largest country outside the U.S.

The decrease in the number of countries exceeding $500 million in revenues from 2022 to 2023 was primarily driven by decreases in revenues related to Comirnaty and Paxlovid.

As a percentage of Total revenues , our largest country outside the U.S.

was Japan in 2023.

For a geographic breakdown of revenues, see the Revenues by Geography section within MD&A and Note 17 B .

For a geographic breakdown of Total revenues , see the Total Revenues by Geography section within MD&A and Note 17B .

Our international operations are subject to risks inherent in carrying on business in other countries.

For additional information, see the Item 1A.

See the Item 1A.

Risk Factors — Global Operations and Item 1.

Business — Government Regulation and Price Constraints sections in this Form 10-K.

Business — Government Regulation and Price Constraints sections.

SALES AND MARKETING

Our prescription biopharmaceutical products, with the exception of Paxlovid, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies.

In 2022, we principally sold Paxlovid to government agencies.

In the U.S., we primarily sell our vaccines directly to the federal government, CDC, wholesalers, individual provider offices, retail pharmacies and integrated delivery systems.

Outside the U.S., we primarily sell our vaccines to government and non-government institutions.

Our prescription biopharmaceutical products, with the exception of Paxlovid in 2022 and 2023, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies.

In 2022 and 2023, we principally sold Paxlovid globally to government agencies.

Our vaccines in the U.S.

are primarily sold directly to the federal government (including the CDC), wholesalers, individual provider offices, retail pharmacies and integrated delivery systems.

Our vaccines outside the U.S.

are primarily sold to government and non-government institutions.

Certain of these government contracts may be renegotiated or terminated at the discretion of a government entity.

In addition, our contracts with government and supranational organizations for the sales of Comirnaty and Paxlovid, which are binding contracts, represented a significant amount of revenues in 2022.

To date, we primarily sold Comirnaty and Paxlovid globally under government contracts.

We expect sales of Comirnaty and Paxlovid in the U.S.

will transition to commercial channels in the second half of 2023.

2023 Form 10-K

contracts with government and supranational organizations for the sales of Comirnaty and Paxlovid, which are binding contracts, represented a significant amount of revenues in 2022 and 2023.

Sales of Comirnaty and Paxlovid in the U.S.

transitioned to commercial channels in the second half of 2023.

For information on our October 2023 amended agreement with the U.S.

government regarding Paxlovid, see Note 17C .

We also seek to gain access for our products on formularies, which are lists of approved medicines available to members of healthcare programs or PBMs.

PBMs use various benefit designs, such as tiered co-pays for formulary products, to drive utilization of products in preferred formulary positions.

We may also work with payers on disease management programs that help to develop tools and materials to educate patients and physicians on key disease areas.

We may also work with payors on disease management programs that help to develop tools and materials to educate patients and physicians on key disease areas.

For information on our significant customers, see Note 17C .

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In addition, we sponsor general advertising to educate the public on disease awareness, prevention and wellness, important public health issues and our patient assistance programs.

As part of our commitment to engaging our customers in the manner they prefer, we took a hybrid approach of virtual and in person engagements and see positive customer response to both approaches.

During the COVID-19 pandemic, we adapted our promotional platform by amplifying our digital capabilities to reach healthcare professionals and customers to provide critical education and information, including increasing the scale of our remote engagement.

As part of our commitment to engaging our customers in a manner they prefer, we take an omnichannel approach, including both virtual and in person interactions, and see generally positive customer response to both approaches.

PATENTS AND OTHER INTELLECTUAL PROPERTY RIGHTS

We own or license a number of patents covering pharmaceutical and other products, their uses, formulations, and product manufacturing processes.

We own or have co-promotion and/or license rights related to a number of patents covering pharmaceutical and other products, their uses, formulations, and product manufacturing processes.

Patents for individual products extend for varying periods according to the date of patent filing or grant and the legal term of patents in the various countries where patent protection is obtained.

The scope of protection afforded by a patent can vary from country to country and depends on the patent type, the scope of its patent claims and the availability of legal remedies.

Patent term extensions (PTE) may be available in some countries to compensate for a loss of patent term due to delay in a product’s approval due to the regulatory requirements.

Patent term extensions (PTE) may be available in some countries to compensate for a loss of patent term due to delay in a product’s approval due to the regulatory requirements, while patent term adjustment may be available in some countries to compensate for administrative delays during prosecution of patents.

One of the primary considerations in limiting our operations in some countries outside the U.S.

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free trade agreements have included some global protection of intellectual property rights.

For additional information, see the Item 1.

Business — Government Regulation and Price Constraints section in this Form 10-K.

See the Item 1.

Business — Government Regulation and Price Constraints section.

In various markets, a period of regulatory exclusivity may be provided for drugs or vaccines upon approval.

The scope and term of such exclusivity will vary but, in general, the period will run concurrently with the term of any existing patent rights associated with the drug at the time of approval.

Based on current sales and other factors, and considering the competition with products sold by our competitors, the patent rights we consider most significant in relation to our business as a whole, together with the year in which the basic product patent expires, are as follows:

2023 Form 10-K

Based on current sales, and considering the competition with products sold by our competitors, the patent rights we consider most significant in relation to our business as a whole, together with the year in which the basic product patent expires, are as follows:

Basic Product Patent Expiration Year (1)

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Prevnar 13/Prevenar 13 2026 (3)

2026 2026 2026

Ibrance 2027 2028 2028

Vyndaqel/Vyndamax/Vynmac 2024 (7) (2028 pending PTE)

Xalkori 2029 2027 2028

Nurtec ODT/Vydura 2030 (2034 pending PTE) 2030 (2035 pending SPC) 2030 (7)

2026 2026/2029 (8)

Nurtec ODT/Vydura 2030 (2034 pending PTE) 2035

Braftovi (12)

2030 (2031 pending PTE) (12)

Oxbryta 2033 2032 (2037 pending SPC) 2032 (7)

(2032 pending PTE)

Oxbryta 2033 2037

Lorbrena 2033 2034 2036

(2034 pending PTE)

Zavzpret 2031

(2034 pending PTE)

Velsipity 2029

(2034 pending PTE)

Prevnar 20/Apexxnar 2033 (2035 pending PTE) 2033 (2037 pending SPC) 2033 (11)

Cibinqo 2034 (2036 pending PTE) 2034 (2036 pending SPC) 2034 (2038 pending PTE)

(2036 pending PTE)

(2037 pending PTE)

(2038 pending SPC)

(2039 pending PTE)

(2037 pending PTE)

Penbraya 2038 2038 (11)

COVID-19 Products

Pfizer-BioNTech COVID-19 Vaccine (20)

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Pfizer-BioNTech COVID-19 Vaccine, Bivalent (Original and Omicron BA.4/BA.5)/ Comirnaty Original/Omicron BA.1 Vaccine (20)

XBB.1.5-Adapted Monovalent COVID-19 vaccine (20)

(1) Unless otherwise indicated, the years pertain to the basic product patent expiration, including granted PTEs, supplementary protection certificates (SPC) or pediatric exclusivity periods.

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In the U.S., we and BMS previously settled certain patent litigations with a number of generic companies permitting their launch of a generic version of Eliquis on April 1, 2028 (the settled generic companies).

We continued to litigate against three remaining generic companies and following the resolution of the litigation in our favor, the three generic companies are not permitted to launch their products until the 2031 expiration date of the formulation patent.

We continued to litigate against three

2023 Form 10-K

remaining generic companies and following the resolution of the litigation in our favor, the three generic companies are not permitted to launch their products until the 2031 expiration date of the formulation patent.

Both the composition of matter patent expiring in November 2026 and the formulation patent expiring in 2031 may be subject to future challenges.

While we cannot predict the outcome of any potential future litigation, there are certain potential alternatives that might occur which could potentially permit generic launch prior to April 1, 2028:

(a) if the formulation patent is held invalid or not infringed in future litigation, through appeal, the settled generic companies and any successful future litigant would be permitted to launch on November 21, 2026;

or (b) if both patents are held invalid or not infringed in future litigation, through appeal, the settled generic companies and any successful future litigant could launch products immediately upon such an adverse decision.

(i) if the formulation patent is held invalid or not infringed in future litigation, through appeal, the settled generic companies and any successful future litigant would be permitted to launch on November 21, 2026;

or (ii) if both patents are held invalid or not infringed in future litigation, through appeal, the settled generic companies and any successful future litigant could launch products immediately upon such an adverse decision.

Refer to Note 16A1 for more information.

(5) On October 31, 2023, the U.K.

Supreme Court refused BMS’s permission to appeal in relation to the judgment having found the apixaban basic product patent and associated SPC invalid.

Additional challenges are pending in other jurisdictions.

(6) Xtandi is being developed and commercialized in collaboration with Astellas, which has exclusive commercialization rights for Xtandi outside the U.S.

Pfizer receives tiered royalties as a percentage of international Xtandi net sales.

(7) Interim patent term extension requests have been granted extending the expiry from December 2023 to December 2024 and Pfizer has filed applications for patent term extension to 2028.

(8) Vyndaqel (tafamidis meglumine) basic patent expiry in Japan is August 2026 for treatment of polyneuropathy.

Vynmac (tafamidis) was approved in Japan for treatment of cardiomyopathy with regulatory exclusivity expiring in March 2029.

(9) Adcetris is being developed and commercialized in collaboration with Takeda.

Pfizer has commercialization rights for Adcetris in the U.S.

and its territories and in Canada.

Takeda has commercialization rights in the rest of the world and pays Pfizer a royalty based on a percentage of Takeda's net sales of Adcetris in its licensed territories, based on annual net sales tiers.

(10) There are other U.S.

patents covering related ADC uses, technology and manufacturing that remain in force beyond composition of matter expiry.

(11) Product not yet approved or authorized in this market.

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The Pierre Fabre Group has exclusive rights to commercialize both products in Europe and Ono has exclusive rights to commercialize both products in Japan.

We receive royalties from The Pierre Fabre Group and Ono on sales of Braftovi and Mektovi in majority of markets outside the U.S.

We receive royalties from The Pierre Fabre Group and Ono on sales of Braftovi and Mektovi in a majority of markets outside the U.S.

(13) Mektovi U.S.

expiry is provided by a method of use patent.

(14) Padcev is being commercialized in collaboration with Astellas.

Pfizer has co-promotion rights in the U.S.

Outside the U.S., Pfizer has commercialization rights in all countries in North and South America, and Astellas has commercialization rights in the rest of the world, including Europe, Asia, Australia and Africa.

(15) There is a U.S.

patent covering related ADC manufacturing that will remain in force beyond the composition of matter expiry.

(16) In September 2020, Seagen and Merck began a collaboration to commercialize Tukysa.

As of December 31, 2023, this collaboration ended and all commercialization rights were returned to Seagen (Pfizer).

(17) Ngenla is being developed in collaboration with OPKO.

(11) Expiry expected to be provided by regulatory exclusivity in this market.

(12) The basic product patent application has been filed in these markets.

If granted, a full term is expected in these markets.

Product is being developed and commercialized in collaboration with BioNTech.

(18) Tivdak is developed and commercialized in collaboration with Genmab.

Pfizer and Genmab have co-promotion rights in the U.S.

Outside the U.S., Pfizer has commercialization rights in the rest of the world except for Japan, where Genmab has commercialization rights, and certain territories where Zai Lab Limited (Zai Lab) has commercialization rights (mainland China, Hong Kong, Macau, and Taiwan).

Pfizer and Genmab equally share all costs and profits for Tivdak in the U.S., Europe, China (including the payments from Zai Lab described below) and Japan.

In markets outside the U.S.

other than Europe, China, and Japan, Pfizer will pay Genmab a royalty based on a percentage of aggregate net sales.

Further, pursuant to the agreement with Zai Lab, Pfizer is entitled to receive potential development, regulatory and commercial milestone payments, and tiered royalties on net sales of Tivdak in the Zai Lab territories, which will be shared equally with Genmab.

(19) Expiry is provided by regulatory exclusivity in this market.

In addition to regulatory exclusivity, there are U.S.

patents covering related ADC manufacturing and technology that remain in force beyond the regulatory exclusivity expiry.

(20) Product is being commercialized in collaboration with BioNTech.

(21) The basic product patent has been granted in the U.K.

and expires in 2041.

In the other major markets, a patent application has been filed.

If granted, a full term is expected.

(22) The basic product patent application has been filed in this market.

If granted, a full term is expected in this market.

(23) Pfizer does not have co-promotion rights for this product in Germany.

For information regarding profit sharing and royalty arrangements for certain of these products, see Item 1.

Business—Collaboration and Co-Promotion Agreements .

Loss of Intellectual Property Rights.

The loss, expiration or invalidation of intellectual property rights, patent litigation settlements and the expiration of co-promotion and licensing rights can have a material adverse effect on our revenues.

The loss, expiration or invalidation of intellectual property rights, patent litigation settlements and judgments and the expiration of co-promotion and licensing rights can have a material adverse effect on our revenues.

Once patent protection has expired or has been lost prior to the expiration date as a result of a legal challenge, we typically lose exclusivity on these products, and generic and biosimilar pharmaceutical manufacturers generally produce identical or highly similar products and sell them for a lower price.

The date at which generic or

2022 Form 10-K 7

biosimilar competition commences may be different from the date that the patent or regulatory exclusivity expires.

The date at which generic or biosimilar competition commences may be different from the date that the patent or regulatory exclusivity expires.

However, when generic or biosimilar competition does commence, the resulting price competition can substantially decrease our revenues for the impacted products, often in a very short period of time.

Also, if one of our product-related patents is found to be invalid by judicial, court or regulatory or administrative proceedings, generic or biosimilar products could be introduced, resulting in the erosion of sales of our existing products.

We continue to vigorously defend our patent rights against infringement, and we will continue to support efforts that strengthen worldwide recognition of patent rights while taking necessary steps to help ensure appropriate patient access.

For additional information, see the Item 1A.

Risk Factors — Competitive Products, — Intellectual Property Protection and — Third-Party Intellectual Property Claims sections in this Form 10-K and Note 16 A1 .

Additionally, we could be subject to claims that our intellectual property rights infringe third party patents.

Certain of our products have experienced patent-based expirations or loss of regulatory exclusivity in certain markets in the last few years, and we expect certain products to face increased generic competition over the next few years.

For example, the basic product patent for Sutent expired in the U.S.

in 2021 and in Europe in 2022.

There is no assurance that a particular product will enjoy market exclusivity for the full time period that appears in the estimates included in this Form 10-K or that we assume when we provide our financial guidance.

While additional patent expiries will continue, we expect a moderate impact of reduced revenues due to patent expiries from 2024 through 2025.

We anticipate a more significant impact of reduced revenues from patent expiries in 2026 through 2030 as several of our in-line products experience patent-based expirations.

There is no assurance that a particular product will maintain market exclusivity for the full time period that appears in the estimates included in this Form 10-K or that we assume when we provide our financial guidance.

For additional information on the impact of LOEs on our revenues, see the Overview of Our Performance, Operating Environment, Strategy and Outlook—Our 2023 Performance section within MD&A.

See the Item 1A.

Risk Factors — Competitive Products, — Intellectual Property Protection and — Third-Party Intellectual Property Claims sections and Note 16A1 .

Our products are sold under brand-name and logo trademarks and trade dress.

Registrations generally are for fixed, but renewable, terms and protection is provided in some countries for as long as the mark is used while in others, for as long as it is registered.

Protecting our trademarks is of material importance to Pfizer.

Our business is conducted in intensely competitive and often highly regulated markets.

Protecting our trademarks is of material importance to us.

2023 Form 10-K

Our business is conducted in intensely competitive and highly regulated markets.

Many of our products face competition in the form of branded or generic drugs or biosimilars that treat similar diseases or indications.

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These competitors include other worldwide research-based biopharmaceutical companies, smaller research companies with more limited therapeutic focus and generic drug and biosimilar manufacturers.

Our competitors also may devote substantial funds and resources to R&D and their successful R&D could result in erosion of the sales of our existing products and potential sales of products in development, as well as unanticipated product obsolescence.

Our competitors also may devote substantial funds and resources to R&D and their successful R&D could result in erosion of the sales of our existing products and potential sales of our products in development, as well as product obsolescence.

In addition, several of our competitors operate without large R&D expenses and make a regular practice of challenging our product patents before their expiration.

To address competitive trends we continually emphasize innovation, which is underscored by our multi-billion-dollar investment in R&D, as well as our business development transactions, both designed to result in a strong and differentiated product pipeline.

Our investment in research continues even after drug or vaccine approval as we seek to further demonstrate the value of our products for the conditions they treat or prevent, as well as potential new applications.

We educate patients, physicians, payers and global health authorities on the benefits and risks of our medicines and vaccines, and seek to continually enhance the organizational effectiveness of our biopharmaceutical functions, including to accurately and ethically launch and market our products to our customers.

To help address competitive trends we continually emphasize innovation, which is underscored by our multi-billion-dollar investment in R&D, as well as our business development transactions, both designed to result in a strong and differentiated product pipeline.

We educate patients, physicians, payors and global health authorities on the benefits and risks of our medicines and vaccines, and seek to continually enhance the organizational effectiveness of our biopharmaceutical functions, including our efforts to effectively launch and market our products to our customers.

Operating conditions have also shifted as a result of increased global competitive pressures, industry regulation and cost containment.

We continue to evaluate, adapt and improve our organization and business practices in an effort to better meet customer and public needs.

We believe that we have taken an industry-leading role in evolving our approaches to U.S.

We believe that we have taken an industry-leading role in evolving our ethical approaches to U.S.

direct-to-consumer advertising, interactions with, and payments to, healthcare professionals and medical education grants.

We also continue to sponsor programs to address patient affordability and access barriers, as we strive to advance fundamental health system change through our support for better healthcare solutions.

Our vaccines may face competition, including from the introduction of alternative vaccines or “next-generation” vaccines prior to or after the expiration of their patents, which may adversely affect our future results.

We also continue to support programs to address patient affordability and access barriers, as we strive to advance fundamental health system change through our support for better healthcare solutions.

For example, in May 2022, we launched An Accord for a Healthier World, which aims to provide our full portfolio of patented and off-patent medicines and vaccines for which Pfizer holds global rights on a not-for-profit basis to 1.2 billion people living in 45 lower-income countries around the world.

Our vaccines have and may continue to face competition, including from the introduction of alternative vaccines or “next-generation” vaccines prior to or after the expiration of their patents, which may adversely affect our future results.

Our biosimilars, which include biosimilars of certain inflammation & immunology and oncology biologic medicines, compete with branded products from competitors, as well as other generics and biosimilars manufacturers.

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Generic Products .

Generic pharmaceutical manufacturers pose one of the biggest competitive challenges to our branded small molecule products because they can market a competing version of our product after the expiration or loss of our patent and often charge much less.

Several competitors regularly challenge our product patents before their expiration.

Generic competitors often operate without large R&D expenses, as well as without costs of conveying medical information about products to the medical community.

In addition, the FDA approval process exempts generics from costly and time-consuming clinical trials to demonstrate their safety and efficacy, allowing generic manufacturers to rely on the safety and efficacy data of the innovator product.

In China, for example, we expect to continue to face intensified competition by certain generic manufacturers in 2023 and beyond, which may result in price cuts and volume loss of some of our products.

In addition, generic versions of competitors’ branded products may also compete with our products.

MCOs that focus primarily on the immediate cost of drugs often favor generics over brand-name drugs.

Many governments also encourage the use of generics as alternatives to brand-name drugs in their healthcare programs, including Medicaid in the U.S., and U.S.

In addition, the approval process in the U.S.

and in the EU exempts generics from costly and time-consuming clinical trials to demonstrate their safety and efficacy, allowing generic manufacturers to rely on the safety and efficacy data of the innovator product.

In China, for example, given the expansion of the QCE process and continuation of the VBP program, we expect to continue to face intensified competition by certain generic manufacturers in 2024 and beyond, which has and may continue to result in price cuts and volume loss of some of our products.

In addition, generic versions of competitors’ branded products have and may continue to compete with our products.

Commercial and government payors typically encourage the use of generics as alternatives to brand-name drugs in their healthcare programs, including Medicaid in the U.S., and U.S.

laws generally allow, and in some cases require, pharmacists to substitute generic drugs for brand-name drugs.

In a small subset of states, prescribing physicians are able to expressly prevent such substitution.

Similar rules also apply in several EU member states, where national authorities typically encourage and incentivize the use of generic products.

Certain of our biologic products, including Enbrel (we market Enbrel outside the U.S.

and Canada), already face, or may face in the future, competition from biosimilars (also referred to as follow-on biologics).

and Canada), already face, or may face in the

future, competition from biosimilars (also referred to as follow-on biologics).

Biosimilars are versions of biologic medicines that have been developed and proven to be highly similar to the original biologic in terms of safety and efficacy and that have no clinically meaningful differences in safety, purity or potency.

Biosimilars have the potential to offer high-quality, lower-cost alternatives to innovative biologic medicines.

In the U.S., biosimilars referencing innovative biologic products are approved under the U.S.

Public Health Service Act.

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In the U.S., biosimilars referencing innovative biologic products are approved by the FDA under the U.S.

Public Health Service Act, whereas in the EU the EMA is responsible for evaluating the majority of applications for biosimilars through the centralized procedure.

PRICING PRESSURES AND MANAGED CARE ORGANIZATIONS

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This trend is likely to continue.

Private third-party payers, such as health plans, increasingly challenge pharmaceutical product pricing, which could result in lower prices, lower reimbursement rates for payors and a reduction in demand for our products, including denial of coverage of our products, if lower cost alternatives are available.

Pricing pressures also may occur as a result of highly competitive insurance markets.

Private third-party payors, such as health plans, increasingly challenge pharmaceutical product pricing, which could result in lower prices, lower reimbursement rates for payors and a reduction in demand for our products, including denial of coverage of our products, if lower cost alternatives are available.

Payors often require significant discounts, or rebates, from our prices in exchange for more favorable formulary placement.

Pricing pressures also may occur as a result of highly competitive biopharmaceutical markets and increasing concentration of insurers and PBMs.

Healthcare provider purchasers, directly or through group purchasing organizations, are seeking enhanced discounts or implementing more rigorous bidding or purchasing review processes.

Longer term, we foresee a shift among payors and their pharmacy benefits managers in focus away from fee-for-service reimbursement towards outcomes-based payments and risk-sharing arrangements that reward providers and pharmaceutical manufacturers for cost reductions and improved patient outcomes.

Longer term, we foresee a shift in focus among payors and their PBMs away from fee-for-service reimbursement towards outcomes-based payments and risk-sharing arrangements that reward providers and pharmaceutical manufacturers for cost reductions and improved patient outcomes.

These new payment models can, at times, lead to lower prices for, and restricted access to, new medicines.

At the same time, these models can also promote utilization of drugs by encouraging physicians to screen and diagnose and consider drugs as a means of forestalling more costly medical interventions.

Further, these models may also encourage payors and their pharmacy benefits managers to cover higher cost drugs where coverage is tied to patient outcomes and other quality incentives.

The impact of COVID-19 and related large-scale healthcare disruptions on the pace of adoption of value-based payment models remains unclear.

Further, these models may also encourage payors and their PBMs to cover higher cost drugs where coverage is tied to patient outcomes and other quality incentives.

2023 Form 10-K

The impact of large-scale healthcare disruptions, like the COVID-19 pandemic, on the pace of adoption of value-based payment models remains unclear.

Both payors and providers may resist adopting such models or choose to adopt such models at a slower pace if the incentives available do not outweigh the financial risk involved.

Unprecedented pressures on critical care and the reductions in elective surgeries during the COVID-19 pandemic undermined revenue predictability for hospitals and other institutional providers.

As a result, providers may weigh their ability to take on the financial risk of downside value-based payment models.

In contrast, providers in more advanced value-based payment models, such as full capitation, a fixed amount paid in advance per patient per unit of time-period, generally found their revenues remained steady during the pandemic, which may ultimately encourage the growth of such models.

Going forward, we expect continued focus on value-based payment models that support financial resiliency and advance health care equity by incorporating features intended to reduce disparities in health care quality and access experienced by underrepresented and underserved populations.

Adoption of such models, in particular models that involve downside risk, may depend on revenue predictability for hospitals and other institutional providers, many of which are still struggling to recover financially following the COVID-19 pandemic.

Providers in more advanced value-based payment models, such as full capitation, a fixed amount paid in advance per-patient per-unit of time-period, generally found their revenues remained steady during the COVID-19 pandemic, which may ultimately encourage the growth of such models.

Going forward, we expect continued focus on value-based payment models that support financial resiliency and advance healthcare equity by incorporating features intended to reduce disparities in healthcare quality and access experienced by underrepresented and underserved populations.

We believe medicines and vaccines are the most efficient and effective use of healthcare dollars based on the value they deliver to the overall healthcare system.

We work with law makers and advocate for solutions that effectively improve patient health outcomes, lower costs to the healthcare system, and help ensure access to medicines and vaccines within an efficient and affordable healthcare system.

This includes assessing our go-to market model to address patient affordability challenges.

This includes assessing our go-to market model to help address patient affordability challenges.

We have engaged with major payors and the U.S.

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and global healthcare spending landscape, we work with health authorities, health technology assessment and quality measurement bodies and major U.S.

payers throughout the product-development process to better understand how these entities value our compounds and products.

Further, we are developing stronger support to demonstrate the net value of the medicines and vaccines that we discover or develop, register and manufacture.

payors throughout the product-development process to better understand how these entities value our compounds and products.

Further, we are developing stronger support designed to demonstrate the net value of the medicines and vaccines that we discover or develop, register and manufacture.

For information on government pricing pressures, see the Item 1.

Business — Government Regulation and Price Constraints and Item 1A.

Risk Factors — Pricing and Reimbursement sections in this Form 10-K.

Risk Factors — Pricing and Reimbursement sections.

Managed Care Organizations.

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Since MCOs seek to contain and reduce healthcare expenditures, their growing influence has increased downward pressure on drug prices, as well as negatively impacted revenues.

MCOs and their PBMs typically negotiate prices with pharmaceutical providers by using formularies (which are lists of approved medicines available to MCO members), clinical protocols (which require prior authorization for a branded product if a generic product is available or require the patient to first fail on one or more generic products before permitting access to a branded medicine), volume purchasing, long-term contracts and their ability to influence volume and market share of prescription drugs.

MCOs and their PBMs typically negotiate prices with pharmaceutical providers by using formularies (which are lists of approved medicines available to MCO members), clinical protocols (which require prior authorization for a branded product if a generic product is available or require the patient to first fail on one or more generic products before permitting access to a branded medicine), long-term contracts and their ability to influence volume and market share of prescription drugs.

In addition, by placing branded medicines on higher-tier or non-preferred status in their formularies, MCOs transfer to the patient higher patient out-of-pocket expenses.

This financial disincentive is a tool for MCOs to manage drug costs and channel patients to medicines preferred by the MCOs.

We expect payment reforms for MCOs will continue to evolve with increased emphasis on expanded participation and on removing barriers to equitable health care.

We expect payment reforms for MCOs will continue to evolve with increased emphasis on expanded participation and on removing barriers to equitable healthcare.

The breadth of the products covered by formularies can vary considerably from one MCO to another, and many formularies include alternative and competitive products for treatment of particular medical problems.

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We continue to seek to ensure that our major products are included on MCO formularies.

However, increasingly our branded products are being placed on the higher tiers or in a non-preferred status.

For additional information, see the Item 1A.

Risk Factors — Managed Care Trends section in this Form 10-K.

However, our branded products are increasingly being placed on the higher tiers or in a non-preferred status.

Continuing efforts by managed care entities to contain or reduce costs of healthcare and/or impose price controls may adversely affect demand for our products and our financial performance.

See the Item 1A.

Risk Factors — Managed Care Trends section.

RAW MATERIALS

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No significant impact to our operations due to the availability of raw materials is currently anticipated in 2024.

However, we are seeing an increase in overall demand in the industry for certain components and raw materials, which could potentially result in constraining available supply leading to a possible future impact on our

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We are continuing to monitor and implement mitigation strategies in an effort to reduce any potential risk or impact, including active supplier management, qualification of additional suppliers and advanced purchasing to the extent possible.

However, we continue to see heightened demand in the industry for certain components and raw materials, which could potentially result in constraining available supply leading to a possible future impact on our business.

We are continuing to monitor and implement mitigation strategies to reduce any potential risk or impact including active supplier management, qualification of additional suppliers and advanced purchasing to the extent possible.

GOVERNMENT REGULATION AND PRICE CONSTRAINTS

We are subject to extensive regulation by government authorities in the countries in which we do business.

This includes laws and regulations governing the operations of biopharmaceutical companies, such as the approval, manufacturing and marketing of products, pricing (including discounts and rebates) and price reporting, interactions with healthcare professionals, institutions, and referral sources, reporting of remuneration provided to healthcare providers and academic medical centers, financial assistance provided to patients, clinical research, data privacy and information security, among others.

These laws and regulations may require administrative guidance for implementation, and a failure to comply could subject us to legal and/or administrative actions.

Enforcement measures may include substantial fines and/or penalties, orders to stop non-compliant activities, criminal charges, warning letters, product recalls or seizures, delays in product approvals, exclusion from participation in government programs or contracts as well as limitations on conducting business in applicable jurisdictions, and could result in harm to our reputation and business.

For additional information, see Note 16 A .

See Note 16A .

Compliance with these laws and regulations may be costly, and may require significant technical expertise and capital investment to ensure compliance.

While capital expenditures or operating costs for compliance with government regulations cannot be predicted with certainty, we do not currently anticipate they will have a material effect on our capital expenditures or competitive position.

In the United States

While capital expenditures or operating costs for compliance with government regulations

2023 Form 10-K

cannot be predicted with certainty, we do not currently anticipate they will have a material effect on our capital expenditures or competitive position.

Drug and Biologic Regulation .

The FDA, pursuant to the FFDCA, the Public Health Service Act and other federal statutes and regulations, extensively regulates pre- and post-marketing activities related to our biopharmaceutical products.

The regulations govern areas such as the safety and efficacy of medicines and vaccines, clinical trials, advertising and promotion, quality control, manufacturing, labeling, distribution, post-marketing safety surveillance and reporting, and record keeping.

The regulations govern areas such as safety and efficacy, clinical trials, advertising and promotion, quality control, manufacturing, labeling, distribution, post-marketing safety surveillance and reporting, and record keeping.

federal agencies, including the DEA, also regulate certain of our products and activities.

For a biopharmaceutical company to market a drug or a biologic product, including vaccines, in the U.S., the FDA must evaluate whether the product is safe and effective for its intended use.

For a biopharmaceutical company to market a drug or a biologic product, including vaccines, the FDA must evaluate whether the product is safe and effective for its intended use.

If the FDA determines that the drug or biologic is safe and effective, the FDA will approve the product’s NDA or BLA (or supplemental NDA or supplemental BLA), as appropriate.

A drug or biologic may be subject to postmarketing commitments, which are studies or clinical trials that the product sponsor agrees to conduct, or postmarketing requirements, which are studies or clinical trials that are required as a condition of approval.

In addition, we are also required to report adverse events and comply with cGMP (the FDA regulations that govern all aspects of manufacturing quality for pharmaceuticals) and the Drug Supply Chain Security Act (the law that, among other things, sets forth requirements related to product tracing, product identifiers and verification for manufacturers, wholesale distributors, repackagers and dispensers to facilitate the tracing of product through the pharmaceutical distribution supply chain), as well as advertising and promotion regulations.

For additional information, see the Item 1A.

Risk Factors — Development, Regulatory Approval and Marketing of Products and — Post-Authorization/Approval Data sections in this Form 10-K.

In addition, we are also required to report adverse events and comply with cGMPs (the FDA regulations that govern all aspects of manufacturing quality for pharmaceuticals) and the Drug Supply Chain Security Act (the law that, among other things, sets forth requirements related to product tracing, product identifiers and verification for manufacturers, wholesale distributors, re-packagers and dispensers to facilitate the tracing of product through the pharmaceutical distribution supply chain), as well as advertising and promotion regulations.

See the Item 1A.

Risk Factors — Development, Regulatory Approval and Marketing of Products and — Post-Authorization/Approval Data sections.

In the context of public health emergencies, like the COVID-19 pandemic, we may apply to the FDA for an EUA which, if granted, allows for the distribution and use of our products during the declared emergency, in accordance with the conditions set forth in the EUA, unless the EUA is terminated by the government.

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Sales and Marketing Regulations .

Our marketing practices are subject to state laws, as well as federal laws, such as the Anti-Kickback Statute and False Claims Act, intended to prevent fraud and abuse in the healthcare industry.

The Anti-Kickback Statute prohibits corruptly soliciting, offering, receiving, or paying anything of value to generate business.

The False Claims Act generally prohibits anyone from knowingly and willingly presenting, or causing to be presented, any claims for payment for goods or services, including to government payers, such as Medicare and Medicaid, that are false or fraudulent and generally treat claims generated through kickbacks as false or fraudulent.

Our marketing practices are subject to federal and state laws, such as the Anti-Kickback Statute (AKS), Civil Monetary Penalties Law and False Claims Act, intended to prevent fraud and abuse in the healthcare industry.

The AKS prohibits soliciting, offering, receiving, or paying anything of value to generate business that may be paid for, in whole or in part, by a federal healthcare program.

The Civil Monetary Penalties Law covers a variety of conduct, often violations under other laws, and includes penalties for AKS violations as well as causing the submission of false claims.

The False Claims Act generally prohibits anyone from knowingly and willingly presenting, or causing to be presented, any claims for payment for goods or services, including to government payors, such as Medicare and Medicaid, that are false or fraudulent including false certifications of compliance with applicable law.

The federal government and states also regulate sales and marketing activities and financial interactions between manufacturers and healthcare providers, requiring disclosure to government authorities and the public of such interactions, and the adoption of compliance standards or programs.

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Pricing and reimbursement for our products depend in part on government regulation.

Any significant efforts at the federal or state levels to reform the healthcare system by changing the way healthcare is provided or funded or more directly impose controls on drug pricing, government reimbursement, and access to medicines and vaccines on public and private insurance plans could have a material impact on us.

In addition, in order to have our products covered by Medicaid, we must offer discounts or rebates on purchases of pharmaceutical products under various federal and state programs.

Any significant efforts at the federal or state levels to reform the healthcare system by changing the way healthcare is provided or funded or to expand controls on drug pricing, government reimbursement, and access to medicines and vaccines on public and private insurance plans could have a material impact on us.

We must offer discounts or rebates on purchases of pharmaceutical products under various government programs including Medicare, Medicaid, the Veterans Administration and the 340B Drug Pricing Program (340B Program).

We also must report specific prices to government agencies.

The calculations necessary to determine the prices reported are complex and the failure to do so accurately may expose us to enforcement measures.

See the discussion regarding rebates in the Revenue Deductions section within MD&A and Note 1 G .

Government and private payers routinely seek to manage utilization and control the costs of our products, and there is considerable public and government scrutiny of pharmaceutical pricing.

Efforts by states and the federal government to regulate prices or payment for pharmaceutical products, including proposed actions to facilitate drug importation, limit reimbursement to lower international reference prices, require deep discounts, and require manufacturers to report and make public price increases and sometimes a written justification for the increase, could adversely affect our business if implemented.

We expect to see continued focus by Congress and the Biden Administration on regulating pricing, which could result in legislative and regulatory changes designed to control costs.

For example, in August 2022, the IRA was signed into law, which, among other things, requires manufacturers of certain drugs to engage in price negotiations with Medicare (beginning in 2026), imposes rebates under Medicare Part B and Medicare Part D to penalize price increases that outpace inflation (first due in 2023), and replaces the Part D coverage gap discount program with a new discounting program (beginning in 2025).

See the discussion regarding rebates in the Product Revenue Deductions section within MD&A and Note 1G .

The drug pricing provisions of the IRA, which was signed into law in August 2022, began to be implemented in 2022 and implementation will continue over the next several years.

The IRA includes several provisions to lower prescription drug costs for Medicare patients and to reduce drug spending by the federal government.

Among other things, the IRA enhances the Medicare Part D benefit by eliminating the coverage gap (“donut hole”) beginning in 2025, adds a maximum out-of-pocket cap for Medicare beneficiaries (set at $2,000 for 2025), and creates a new program that allows patients to pay their cost-sharing over time.

The law also requires manufacturers to provide a 10% discount on branded prescriptions in the initial coverage phase and a 20% discount in the catastrophic phase, imposes rebates under Medicare Part B and Medicare Part D on drug price increases that outpace inflation, and directs HHS to set the prices of certain high-expenditure, single-source drugs and biologics covered under Medicare (known as the “Medicare Drug Price Negotiation Program”).

In August 2023, the Biden Administration published the first ten medicines subject to the Medicare Drug Price Negotiation Program, which included Eliquis.

As a selected drug, CMS will establish a “maximum fair price” for Eliquis and that price will be published by September 1, 2024.

The price will be in effect in 2026.

The maximum fair price established by CMS is required to be offered to all Medicare beneficiaries and to covered entities participating in the 340B Program if that maximum fair price is lower than the discounted price such entities are offered under the 340B Program ceiling price calculation.

In addition, there will be a new Medicare manufacturer discount program agreement expected to be signed in March 2024 that will change our discounting obligations for all medicines in Medicare, with few exceptions, beginning in 2025.

The Medicare Drug Price Negotiation Program is currently subject to legal challenges and therefore, the outcome of the Program remains uncertain.

We continue to evaluate the impact of the IRA on our business, operations and financial condition and results as the full effect of the IRA on our business and the pharmaceutical industry remains uncertain.

In addition, changes to the Medicaid program or the federal 340B drug pricing program, which imposes ceilings on prices that drug manufacturers can charge for medications sold to certain health care facilities, could have a material impact on our business.

Changes to the Medicaid Drug Rebate Program or the 340B Program could have a material impact on our business.

For example, certain changes finalized by CMS in a December 2020 final rule, including which products qualify as so-called “line extension” drugs subject to increased rebate liability, may have a material impact on our business.

Additionally, in May 2023, CMS proposed new rules that could, if finalized, have a material impact on our business.

Those proposals include, for example, new rules regarding how manufacturers would be required to aggregate discounts for purposes of determining their Medicaid Best Price.

Additionally, various potential changes to the 340B Program are undergoing

2023 Form 10-K

certain changes finalized by the CMS in December 2020 for the Medicaid Drug Rebate Program may increase our Medicaid liability, including for drugs that are considered to be “new formulations” of existing drugs.

Additional changes to the 340B program are undergoing review and their status is unclear.

review or are the subject of current regulatory activity and/or litigation, and their status is unclear.

In 2022, we implemented a policy that will help improve contract pharmacy integrity.

The HHS has sent letters to numerous manufacturers that have also implemented contract pharmacy integrity initiatives expressing the view that their programs are in violation of the 340B statute, and referring those programs for potential enforcement action.

Several manufacturers have challenged HHS’s enforcement letters in federal court and litigation is ongoing in those cases.

We believe that our program is consistent with the statute.

The HHS Health Resources and Services Administration (HRSA), which administers the 340B Program, has sent letters to numerous manufacturers that have also implemented contract pharmacy policies and integrity initiatives;

the letters express HRSA’s view that those manufacturers’ policies are in violation of the 340B statute.

HRSA also has referred some of those other manufacturers to the HHS Office of Inspector General (OIG) for potential enforcement action.

Pfizer has not received an enforcement letter from HRSA to date relating to our 340B Program integrity initiative.

Several manufacturers have challenged HRSA’s enforcement letters in federal court and litigation is ongoing in those cases.

We believe that our policy is consistent with the statute.

In addition, some states have enacted laws seeking to restrict manufacturer policies related to contract pharmacy transactions in their states.

At least one state has begun to pursue enforcement proceedings under its law.

Several stakeholders have challenged such laws in certain states.

Other states have considered and could enact similar laws going forward, although any such laws also may be subject to legal challenges.

Additional legal or legislative developments at the federal or state level with respect to the 340B Program may have an adverse impact on our integrity initiative, and we may face enforcement action or penalties, depending upon such developments.

For additional information, see the Item 1A.

Risk Factors — Pricing and Reimbursement section in this Form 10-K.

The 340B Program continues to be a subject of regulatory activity, congressional scrutiny and inquiries, litigation, and other developments, any or all of which could affect the scope of the program and Pfizer’s obligation to offer discounts to 340B Program covered entities under the program.

See the Item 1A.

Risk Factors — Pricing and Reimbursement section.

States seek to control healthcare costs related to Medicaid and other state regulated healthcare programs.

A majority of states use preferred drug lists to manage access to pharmaceutical products under Medicaid, including some of our products.

For example, access to our products under the Medicaid managed care programs typically is determined by the health plans with which state Medicaid agencies contract to provide services to beneficiaries.

States seek to control healthcare costs related to Medicaid and other state healthcare programs, including the implementation of supplemental rebate agreements under the Medicaid drug rebate program tied to patient outcomes.

States’ budgets were impacted less by the COVID-19 pandemic than expected and are generally growing.

However, we expect states will continue to seek cost cutting within Medicaid, which may focus on managed care capitation payments and/or formulary management.

States may also advance drug-pricing initiatives with a focus on affordability review boards, financial penalties related to pricing practices, manufacturer pricing and reporting requirements, as well as regulation of prescription drug assistance, copay accumulator, or copay maximizer programs in the commercial market.

Payers may promote generic drugs and biosimilars more aggressively to generate savings and attempt to stimulate additional price competition.

States may seek to negotiate supplemental rebate agreements that are larger than the minimum federal requirement for preferred formulary access.

Preferred access to our products under the Medicaid managed care programs are often determined by the managed care health plans contracted by the state to administer benefits, which may also require supplemental rebates for preferred formulary access.

We expect states will continue to seek cost cutting, which may focus on managed care capitation payments, supplemental rebates, and/or formulary management.

We expect to see continued focus by Congress and the Biden Administration on regulating pricing and access to medicine, in addition to actions already taken, which could result in legislative and regulatory changes.

Government and private payors routinely seek to manage utilization and control the costs of our products.

There is considerable public and government scrutiny of pharmaceutical pricing and actions being taken at the state and federal level.

Further efforts by states and the federal government to regulate prices or payment for pharmaceutical products, including proposed actions to facilitate drug importation, such as Florida’s drug importation program which was recently authorized by the FDA, limit reimbursement to lower reference prices, require deep discounts, impose financial penalties related to pricing practices, and require manufacturers to report and make public price increases and sometimes a written justification for the increase, could adversely affect our business if implemented.

Further, commercial payors often follow Medicare coverage and reimbursement policies when setting their own payment rates.

Any reduction in cost or other containment measures may similarly be adopted by commercial plans.

Payors may continue to promote generic drugs and biosimilars more aggressively to generate savings and attempt to stimulate additional price competition.

In addition, we expect that consolidation and integration among pharmacy chains, wholesalers and PBMs will increase pricing pressures in the industry.

For additional information, see the Item 1A.

Risk Factors — Managed Care Trends section in this Form 10-K.

See the Item 1A.

Risk Factors — Managed Care Trends section.

Anti-Corruption.

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Data Privacy.

The collection and use of personal data by us is increasingly important to our business and is subject to various federal and state privacy and data security laws and regulations, including oversight by various regulatory and other governmental bodies.

Such laws and regulations continue to evolve and are increasingly being enforced vigorously.

Outside the United States

The number of privacy and data security laws and regulations in the U.S.

to which we are subject on the federal and state level continues to increase.

We routinely collect and use sensitive personal information relating to digital health.

The legislative, regulatory and litigation landscape for privacy and data protection requirements is rapidly evolving and changing.

These requirements are not universal and can conflict between jurisdictions.

Compliance with those laws and regulations is made more complex by the lack of consistent standards, common definitions, or clear regulatory expectations.

At the same time, enforcement of these laws and regulations is increasing and litigation is becoming more common.

Any failure or perceived failure by us to comply with applicable privacy and data protection laws and regulations, including cybersecurity breaches or incidents, could subject us to significant fines and penalties, litigation, and negatively impact our reputation.

Outside the U.S.

New Drug Approvals .

In the EU, the EMA conducts the scientific evaluation, supervision and safety monitoring of our innovative medicinal products, and employs a centralized procedure for approval for the EU and the European Economic Area (EEA) countries.

In the EU, the EMA conducts the scientific evaluation, supervision and safety monitoring of our innovative medicinal products that are eligible for the centralized marketing authorization procedure.

Through the centralized procedure, pharmaceutical companies may submit to the EMA a single application for a marketing authorization valid in all the EU and the European Economic Area (EEA) countries.

The EC takes a legally binding decision based on the EMA's recommendation.

For medicinal products that are not eligible for the centralized procedure, the mutual recognition procedure is based on the recognition of a pre-existing national marketing authorization by one or more EU member states, and the decentralized procedure allows the submission of a marketing authorization application simultaneously in several EU member states.

In the U.K., the Medicines and Healthcare Products Regulatory Agency is the sole regulatory authority.

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In China, the National Medical Product Administration is the primary regulatory authority for approving and supervising medicines.

Health authorities in many middle- and lower-income countries require marketing approval by a recognized regulatory authority (e.g., the FDA or EMA) before they begin to conduct their application review process and/or issue their final approval.

Health authorities in many middle- and lower-income countries might require marketing approval or scientific opinions by a recognized regulatory authority (e.g., the FDA or EMA) before they begin reviewing or approving applications.

By way of example, the EMA, in cooperation with the World Health Organization (WHO), can provide scientific opinions on high priority human medicines, including vaccines, for markets outside the EU.

In April 2023, the EC proposed to revise the EU pharmaceutical legislation.

The proposed legislation includes a significant focus on tackling inequalities on access, affordability and availability of medicines across the EU.

The legislative process is ongoing and when eventually completed, it is likely to be the largest reform in over 20 years to EU medicines regulation, with a wide range of impacts including on approval procedures, regulatory data protection and environmental protection measures.

Pharmacovigilance.

In the EU, the EMA’s PRAC is responsible for reviewing and making recommendations on product safety issues.

Specifically, the PRAC focuses on detecting, assessing and communicating the risks associated with adverse reactions of medicinal products, while considering their therapeutic effects.

It also evaluates post-authorization safety studies and conducts pharmacovigilance audits.

Outside developed markets, pharmacovigilance requirements vary and are generally not as extensive, but there is a trend toward increasing regulation.

Pricing and Reimbursement .

Certain governments, including in the different EU member states, the U.K., Japan, China, Canada and South Korea, provide healthcare at low-to-zero direct cost to consumers at the point of care and have significant power to regulate pharmaceutical prices or patient reimbursement levels to control costs for the government-sponsored healthcare system, particularly under recent global financing pressures.

Governments globally may use a variety of measures to control costs, including, among others, proposing price reform or legislation, cross country collaboration and procurement, price cuts, mandatory rebates, health technology assessments, forced localization as a condition of market access, “international reference pricing” (i.e., the practice of a country linking its regulated medicine prices to those of other countries), QCE processes and VBP.

2023 Form 10-K

prices or patient reimbursement levels to control costs for the government-sponsored healthcare system, particularly under recent global financing pressures.

Governments globally may use a variety of measures to control costs, including, among others, legislative or regulatory pricing reforms, cross country collaboration and procurement, price cuts, mandatory rebates, health technology assessments, forced localization as a condition of market access, “international reference pricing” (i.e., the practice of a country linking its regulated medicine prices to those of other countries), QCE processes and VBP.

In addition, the international patchwork of price regulation, differing economic conditions and incomplete value assessments across countries has led to varying access to quality medicines in many markets and some third-party trade in our products between countries.

Several important multilateral organizations such as the World Health Organization are increasing scrutiny of international pharmaceutical pricing through policy recommendations and sponsorship of programs, such as “The Oslo Medicines Initiative” which aims to ensure “affordability for high-priced medicines”.

In November 2020, the EC published its Pharmaceutical Strategy for Europe which envisions a broad range of new initiatives and legislation including a significant focus on tackling the persisting inequalities on access, affordability and availability of medicines across the EU.

Several important multilateral organizations such as the WHO scrutinize international pharmaceutical pricing through policy recommendations and sponsorship of programs, such as “The Oslo Medicines Initiative” (OMI) which aims to ensure “affordability for high-priced medicines”.

The OMI concluded its work in September 2022, and the WHO/Europe Access to Novel Medicines Platform was established to enhance affordable and equitable access to effective, innovative and high-priced medicinal products in the region.

In China, pricing pressures have increased in recent years because of an overall focus on healthcare cost containment with the central government emphasizing improved health outcomes and decreased drug prices as key indicators of progress towards its healthcare reform.

For patented products, drug prices have decreased dramatically as a result of adding innovative drugs (including oncology medicines and orphan drugs) to the National Reimbursement Drug List (NRDL) via access-price negotiation.

In the off-patent space, numerous local generics have been officially deemed bioequivalent under a QCE process that required generic drugs to pass a test to assess their bioequivalence to a qualified reference drug (typically the originator drug).

A centralized VBP program—a tendering process where a certain portion of included molecule volumes are guaranteed to tender winners—aims to contain healthcare costs by driving utilization of generics that have passed QCE.

State owned hospitals and the state insurance program account for the vast majority of all drug purchases.

For patented innovative products, drug prices have decreased dramatically as a result of adding innovative drugs (including oncology medicines, medicines for children and orphan drugs) to the National Reimbursement Drug List via access-price negotiation.

A centralized VBP program with a tendering process aims to contain healthcare costs by driving utilization of generics that have passed QCE.

This has resulted in further lowering the price of medicines, especially off-patent medicines;

this trend is expected to continue.

Furthermore, the Chinese government has promulgated price bidding rules in June 2022 for enlisting off-patent products (excluding VBP products and certain products directly priced by government) onto the NRDL with the goal of unifying the reimbursement price between QCE-approved generic medicines and the applicable original medicines.

China is increasing its use of Health Technology Assessment and is controlling mark-ups within the country using a two-invoice limited system, which is a government policy that regulates the pricing of pharmaceutical products and medical devices.

Pfizer, along with most off-patent originators, have mostly not been successful in the VBP bidding process.

The government has indicated that additional post-LOE drugs (including biological products) could be subjected to VBP qualification in future rounds.

Certain of our products, such as Sulperazon and Vfend injectables, are likely to be included in future rounds.

While certain details of future QCE expansion have been made available, we are unable to determine the impact on our business and financial condition until the initiation of these future rounds.

2022 Form 10-K 11

Certain of our products, such as Sulperazon and Vfend injectables, were included as candidates in VBP rounds in 2023, and Pfizer was not successful in the bidding process for such products.

While certain details of future QCE expansion have been made available, we are unable to determine the impact on our business of the various pricing measures underway.

Healthcare Provider Transparency and Disclosures.

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While some countries have made improvements, we still face patent grant, enforcement and other intellectual property challenges in many countries.

While the global intellectual property policy environment has generally improved following implementation of WTO-TRIPS and bilateral/multilateral trade agreements, our growth and ability to bring new product innovation to patients depends on further progress in intellectual property protection.

While the global intellectual property policy environment has generally improved following implementation of WTO-TRIPS and bilateral/multilateral trade agreements, our growth and ability to bring new product innovation to patients depends on maintaining those standards and further progress in intellectual property protection.

In certain developed international markets, governments maintain relatively effective intellectual property policies.

However, in the EU, pursuant to the ongoing review of pharmaceutical intellectual property and regulatory incentives, legislative proposals expected to be introduced in 2023 may result in the reduction of certain protections.

However, in the EU, pursuant to the ongoing review of pharmaceutical intellectual property and regulatory incentives, proposals introduced in 2023 may reduce the basic period of regulatory data protection from eight to six years, subject to the outcome of the ongoing legislative procedure.

In several emerging market countries, governments have used intellectual property policies as a tool to force innovators to accept less than fair value for medicines, as well as to advance industrial policy and localization goals.

The WTO continues to address the role of intellectual property in the context of the COVID-19 pandemic response.

This includes the June 2022 Ministerial Decision on the Agreement on Trade-Related Aspects of Intellectual Property Rights, which seeks to make it easier for certain WTO members to issue a compulsory license on COVID-19 vaccines, and discussions continue on whether to expand that decision to COVID-19 therapeutics and diagnostics.

Multilateral institutions continue to address the role of intellectual property in the context of the COVID-19 response, as well as pandemic preparedness and access to medicine more generally.

Considerable political and economic pressure has weakened current intellectual property protection in some countries and has led to policies such as more restrictive standards for obtaining patents and more difficult procedures for patenting biopharmaceutical inventions, restrictions on patenting certain types of inventions, revocation of patents, laws or regulations that promote or provide broad discretion to issue a compulsory license, weak intellectual property enforcement and failure to implement effective regulatory data protection.

Our industry advocacy efforts focus on seeking a fair and transparent business environment for foreign manufacturers, underscoring the importance of strong intellectual property systems for local innovative industries and helping improve patients’ access to innovative medicines and vaccines.

Our industry advocacy efforts focus on seeking a fair and transparent business environment for foreign manufacturers, underscoring the importance of strong intellectual property systems for all innovative industries (both domestic and foreign) and helping improve patients’ access to innovative medicines and vaccines.

Data Privacy.

Outside of the U.S., many countries have privacy and data security laws and regulations concerning the collection and use of personal data, including but not limited to, the EU’s General Data Protection Regulations and China’s Personal Information Protection Law.

The legislative and regulatory framework for privacy and data protection issues worldwide is also rapidly evolving as countries continue to adopt new and updated privacy and data security laws.

The interpretation and application of such laws and regulations remain uncertain and continues to evolve.

In addition, enforcement of such laws and regulations is increasing.

We are subject to extensive privacy and data protection laws and regulations around the world concerning the collection, use and sharing of personal data.

We routinely collect and use sensitive personal information relating to digital health.

The legislative, regulatory and litigation landscape for privacy and data protection requirements is rapidly evolving and changing.

These requirements are not universal and can conflict between jurisdictions.

Compliance with those laws and regulations is made more complex by the lack of consistent standards, common definitions, or clear regulatory expectations.

At the same time, enforcement of these laws and regulations is increasing and fines and penalties are also increasing.

ENVIRONMENTAL MATTERS

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As a science guided organization, we take a proactive approach to our environmental sustainability initiatives.

In 2022, we announced a new goal to further reduce GHG emissions and achieve the Science Based Target Initiative’s voluntary Net-Zero Standard by 2040.

In 2022, we announced a new goal to further reduce greenhouse gas (GHG) emissions and achieve the Science Based Target Initiative’s voluntary Net-Zero Standard by 2040.

As part of this goal, Pfizer aims to decrease its GHG emissions by 95% and its value chain emissions by 90% from 2019 levels by 2040.

To support our goal, we are developing our emission reduction plan, which will include strategies to achieve reductions throughout our value chain including investing in new technologies and innovative climate solutions, and urging all of our suppliers to unite with us in making a commitment to action and integrating ambitious climate impact reduction targets into their management processes.

Related expenses and capital spending incurred for 2022 were not material to our consolidated financial statements.

While capital and operational expenditures will be incurred to meet our goal, we do not currently anticipate they will have a material effect on our financial position in the near term.

Longer term uncertainties regarding availability of commercially available technologies among others make it difficult to predict the financial impact of meeting the goal and we will continue to assess and monitor the financial impact of the emission reduction plan.

To support our goal, we are developing and implementing our emission reduction plan, which will include strategies to achieve reductions throughout our value chain including investing in new technologies and innovative climate solutions, and setting expectations for our suppliers to establish science-aligned GHG emission reduction goals.

Our emission reduction plan-related expenses and capital spending incurred for 2023 were not

2023 Form 10-K

material to our consolidated financial statements.

While we expect to incur incremental capital and operational expenditures to meet our goal, we do not currently anticipate they will have a material effect on our financial position in the near term.

Longer term uncertainties such as the likelihood of commercially available technologies make it difficult to predict the financial impact of meeting the goal, and we will continue to assess and monitor the financial impact of the emission reduction plan.

For a discussion of the risks associated with climate change and our environmental initiatives, see the Item 1A.

Risk Factors—Climate Change and Sustainability section in this Form 10-K.

HUMAN CAPITAL

Risk Factors—Climate Change and Sustainability section.

Our purpose is:

Breakthroughs that change patients’ lives .

These breakthroughs are delivered through the relentless collaboration of our talented workforce.

As of December 31, 2022, we employed approximately 83,000 people worldwide, with approximately 32,000 based in the U.S.

These breakthroughs are delivered through the collaboration of our talented workforce.

As of December 31, 2023, including Seagen colleagues, we employed approximately 88,000 people worldwide, with approximately 35,000 based in the U.S.

Women compose approximately 52% of our global workforce, and approximately 39% of our U.S.-based employees are individuals with ethnically diverse backgrounds.

Our continued success links directly to the commitment, engagement and performance of our employees.

It is important that we not only attract and retain the best and brightest diverse talent, but also ensure they remain engaged and can thrive in an environment that is committed to helping them grow, succeed and contribute directly to achieving our purpose.

As part of these efforts, we strive for an inclusive and empowering work environment, adopting practices to simplify processes and remove needless complexity, rewarding both performance and leadership skills, fostering career growth and internal mobility and offering competitive compensation and benefits programs that encourage mental and physical well being.

It is important that we not only attract and retain the best and brightest talent, but also ensure they remain engaged and can thrive in an environment that is committed to helping them grow, succeed and contribute directly to achieving our purpose.

At Pfizer, prioritizing a positive colleague experience is of utmost importance, particularly during times of business transformation.

We were conscious of the impact that the challenges and opportunities facing our business throughout the year had on colleagues.

Our goal is to prioritize the health and wellness of our colleagues, creating an environment where colleagues can excel in their work and advance our purpose.

To achieve this, we strive to cultivate an inclusive and empowering work environment.

This involves simplifying processes and eliminating unnecessary complexity, recognizing both performance and leadership skills, fostering career growth and internal mobility, and providing competitive compensation and benefits programs that promote mental and physical well-being.

To fully realize Pfizer’s purpose we have established a clear set of goals regarding what we need to achieve for patients and how we will go about achieving them.

The “how” is represented by four simple, powerful company values – Courage , Excellence , Equity and Joy .

2022 Form 10-K 12

The “how” is represented by four simple, powerful company core values – Courage , Excellence , Equity and Joy .

Each value defines our company and our culture:

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Every person deserves to be seen, heard and cared for.

This happens when we are inclusive, act with integrity and reduce health care disparities.

This happens when we are inclusive, act with integrity and reduce healthcare disparities.

We give ourselves to our work, and it also gives to us.

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To attract, develop and inspire the brightest talent, we aim to support our colleagues by engaging and partnering with them to help ensure they feel they are part of a community.

We understand the importance of continuously listening and responding to colleague feedback and our annual engagement survey, Pfizer Pulse, provides a forum for our colleagues to give structured feedback about their colleague experience.

Through this survey, we measure and track key areas of the overall colleague experience and equip leaders with actionable insights for discussion and follow up.

We understand that continuously listening and responding to colleague feedback is essential to fostering a healthy work environment particularly during times of change and uncertainty.

We are passionate about creating safe spaces at work so our employees feel able and encouraged to provide the company with feedback.

The Office of the Ombuds is a resource where all Pfizer colleagues at any level can come to get information and guidance to help them address and resolve work-related issues.

We also host company-wide safe space calls and provide various other public, private and anonymous channels for employees to share feedback without fear of retaliation.

Our annual engagement survey, Pfizer Pulse, provides a forum for our colleagues to give structured feedback about their colleague experience.

Through this survey, we measure and track priority areas of the overall colleague experience and equip leaders with actionable insights for discussion and follow up.

Regular topics in the survey include:

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(iii) inclusion, such as having a climate in which diverse perspectives are valued;

and (iv) growth, including the ability for colleagues to gain new experiences that align with their individual career goals.

In 2022, we continued to maintain low turnover rates relative to the pharmaceutical industry and in our 2022 Pfizer Pulse survey, on average, 88% of colleagues reported feeling engaged, as measured by pride in working at Pfizer, willingness to recommend Pfizer as a great place to work and intent to stay.

In addition, 93% of the colleagues agreed that their daily work contributes to our purpose.

Performance, Leadership and Growth.

(iv) empowerment, such as colleagues feeling empowered and enabled to do their best work together;

and (v) growth, including the ability for colleagues to gain new experiences that align with their individual career goals.

In addition, we ask for feedback at various points in the employee lifecycle through surveys, focus groups and colleague forums.

The information we receive helps enable us to adapt to the real-time needs of our employees and continuously improve our ways of working.

While we have already made progress in reducing bureaucracy and streamlining processes, we recognize that there is still room for improvement, particularly in the effectiveness of our cross-functional teams.

Throughout 2023, we have developed and tested a new approach that aims to expedite decision-making, provide clarity in roles and responsibilities, enhance governance, redefine the role of a leader, and ultimately improve overall team productivity and performance.

This new way of working signifies our commitment to becoming a more dynamic organization that thrives on collaboration and agility.

By revolutionizing the way our teams operate, we believe we can drive better business outcomes and, most importantly, make a meaningful difference in the lives of people around the world.

Pfizer also prioritizes colleague recognition to drive engagement, a sense of belonging, motivation, and productivity.

Our global rewards and recognition program, Bravo, lets colleagues celebrate and acknowledge each other for demonstrating Pfizer values in a way that makes an impact on the company, a colleague, a team or a patient.

In 2023, 84% of colleagues were recognized, and more than 650,000 recognitions were given.

2023 Form 10-K

Performance and Leadership.

We understand the significance of leadership and its crucial role in promoting growth and delivering breakthrough results.

We believe that each of our colleagues has the potential to lead in a unique way and create a meaningful impact on a global scale.

To support this belief, we have developed a new leadership profile for our colleagues that aligns with our company values of courage, excellence, equity and joy.

We believe this renewed focus on leadership applies to all colleagues, which may help us to foster transformational thinking and executional excellence.

By pursuing these leadership qualities, we believe Pfizer can help ensure that its leaders and colleagues are aligned with the company’s values, behaviors and purpose, which may help lead to better outcomes and a positive impact on the lives they touch.

We are committed to helping our colleagues reach their full potential by rewarding both their performance and leadership skills and by providing opportunities for growth and development.

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These conversations are meant to help colleagues grow and develop by evaluating performance (what the colleague achieved, measured by outcomes), leadership (how they achieved it, taking into account Pfizer’s values of courage, excellence, equity and joy), and identifying areas of growth that help move colleagues towards fulfilling their career goals and their potential.

In 2022, Pfizer continued the shift from a traditional, linear view of career growth to one that is built on aspirations and empowers individuals to boldly own their growth journey.

Growth and Development .

By prioritizing the ongoing development of our employees, we not only support their individual success but also cultivate a resilient and adaptable workforce that can thrive in the face of change.

As we navigate the evolving landscape of our industry, we recognize that providing our employees with opportunities for learning, skill-building and growth is essential to their engagement, productivity, and overall job satisfaction.

In 2023, we continued to maintain low voluntary turnover rates relative to the pharmaceutical industry.

Our view of career growth is built on aspirations and empowers individuals to boldly own their growth journey.

We deepened our efforts to redefine growth as a fluid process that promotes incremental in-role growth or mobility along horizontal, vertical or diagonal individualized pathways—what we are calling “zig-zag” growth.

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Our Global Environment, Health & Safety (EHS) Policy and supporting standards outline our approach to assessment, evaluation, elimination, and mitigation of EHS risks across our operations globally.

In 2022, we continued to carry out our COVID-19 pandemic preparedness and response procedures to help ensure on-site workers at all of our locations globally remained safe and healthy.

These precautions have been instrumental in protecting our workforce and helping ensure a continued supply of medicines and vaccines to patients.

During 2022, we (i) continued to provide vaccinations for COVID-19 and other diseases to colleagues in countries where employer vaccination programs are permitted, (ii) broadened our partnership with Thrive Global, a wellness and organizational change initiative with a primary focus on colleague mental health and wellness, (iii) provided educational webinars and information sessions on mental health and well-being, nutrition and work life balance through our employee assistance program provider, including targeted support for our colleagues in Russia and Ukraine, and (iv) shared wellness tips through the global Pfizer World intranet platform.

In addition, as public health recommendations supported the return of colleagues to office locations on a more regular basis, Pfizer ensured benefits and processes were in place to reinforce personal wellness and work life balance.

For example, beginning in 2023 we are implementing a new, flexible working model that enables work to be regularly conducted from home while maintaining regular on-site collaboration to provide greater flexibility for many of our colleagues.

Our commitment to pay equity for all colleagues is based in our value of Equity and our intention to continue to build a diverse and inclusive workforce.

We are committed to supporting and encouraging our colleagues’ well-being and use results from Pfizer Pulse and other employee feedback forums to inform the wellness services we offer, such as (i) a Wellness Day for every colleague, (ii) on-site health clinics for colleagues in select locations, with access to certain vaccinations, where allowed by law, (iii) digital accessibility cafés that provide employees with disabilities the tools and equipment to do their jobs effectively, (iv) mental health resources, including a manager/team toolkit designed to facilitate conversations, actively care for coworkers, and provide local resources for employees to access support, (v) programming through Employee Assistance Program (EAP) providers, including our mental health partner THRIVE, our fitness partner Exos, and healthcare partner Kepro, (vi) financial support, including short-term loans and natural disaster relief, and (vii) flexible work policies enabling employees to work from home and their local offices.

Our commitment to pay equity for all colleagues is based in our value of Equity and our intention to continue to build a diverse, inclusive and highly motivated workforce.

We are committed to equitable pay practices at Pfizer for employees based on role, education, experience, performance, and location and we conduct and report publicly on pay equity on an annual basis.

Additional information regarding our human capital programs and initiatives is available in the “About — Careers” section of Pfizer’s website and our ESG Report.

2022 Form 10-K 13

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business