What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-22 · 269 added, 284 removed, 412 unchanged (57% of the section changed)

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

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.

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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;

equitable access and pricing;

product quality and safety;

diversity, equity and inclusion;

climate change;

and business ethics.

Our 2025 key priorities are:

Improve R&D productivity with sharpened focus

Expand margins and maximize operational efficiency

Achieve commercial excellence in our key categories

Optimize capital allocation.

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.

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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.

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 .

For a 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 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.

We manage our commercial operations through a global structure consisting of three operating segments, each led by a single manager:

Biopharma, PC1 and Pfizer Ignite.

Biopharma, our innovative science-based biopharmaceutical business, is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide.

PC1 is our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients.

Pfizer Ignite is 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.

Biopharma is the only reportable segment.

Our commercial divisions market, sell and distribute our products, and global operating functions are responsible for the research, development, manufacturing and supply of our products.

The commercial structure within our Biopharma reportable segment in 2024 was comprised of the Pfizer Oncology Division, the Pfizer U.S.

Commercial Division, and the Pfizer International Commercial Division:

Pfizer Oncology Division

Combines the U.S.

• Pfizer Oncology Division combined 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.

Oncology medical affairs from both Pfizer and Seagen (which we acquired in December 2023).

• Pfizer U.S.

Commercial Division included 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.

• Pfizer International Commercial Division included the ex-U.S.

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

As part of our continued focus on commercial execution, at the beginning of 2025, we made changes in our commercial structure, which included the transition of all activities within the Pfizer Oncology Division to other parts of Biopharma, among other changes.

Specifically, within our Biopharma reportable segment, the U.S.

Oncology commercial organization and the global Oncology marketing organization, which were part of the former Pfizer Oncology Division, are now part of the Pfizer U.S.

Commercial Division.

In 2025, the commercial structure within our Biopharma reportable segment is as follows:

Commercial Division

Includes the U.S.

commercial and medical affairs organizations covering Pfizer’s entire product portfolio (excluding Oncology medical affairs which is part of global R&D), as well as the Global Access & Value and Global Chief Marketing Office organizations.

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.

• Internal medicine product portfolio of brands in cardiovascular metabolic, as well as brands that have experienced patent-based expirations or loss of regulatory exclusivity.

• Migraine product portfolio.

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• Treatment for COVID-19.

• Products for detection of COVID-19 and influenza.

Specialty Care includes:

• 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.

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

• Hospital product portfolio of sterile injectable and immunoglobulin medicines.

Oncology 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 lung cancer.

• Oncology biosimilars.

Pfizer International Commercial Division

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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

Select Primary Care, Specialty Care and Oncology products include:

• Primary Care:

◦ Internal medicine :

Eliquis, the Premarin family and BMP2

Eliquis, as well as other brands that have experienced patent-based expirations or loss of regulatory exclusivity.

Nurtec ODT/Vydura and Zavzpret

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

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

◦ Treatment for COVID-19 :

◦ Detection of COVID-19 and influenza :

Lucira by Pfizer

• Specialty Care:

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Xeljanz, Enbrel (outside the U.S.

and Canada), Inflectra, Cibinqo, Litfulo and Velsipity

and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa 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.

the Vyndaqel family, Genotropin, BeneFIX, Xyntha, Somavert, Ngenla and Hympavzi

Sulperazon, Zavicefta, Octagam, Zithromax, Medrol and Panzyga

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

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

Risk Factors—Concentration section.

2024 Form 10-K

RESEARCH AND DEVELOPMENT

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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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• advancing new models for partnerships with creativity, flexibility and urgency to deliver innovation to patients as quickly as possible.

To that end, our R&D primarily focuses on our main therapeutic areas, which are inflammation and immunology, internal medicine, oncology, rare diseases, vaccines, and anti-infectives.

To that end, our R&D primarily focuses on our main therapeutic areas, which are oncology, internal medicine (including cardiovascular and migraine), vaccines and inflammation and immunology.

While a significant portion of our R&D is internal, we also seek promising chemical and biological lead molecules and innovative technologies developed by others to incorporate into our discovery and development processes or projects, as well as our portfolio.

We do so by entering into collaboration, alliance and license agreements with universities, biotechnology companies and other firms as well as through acquisitions and investments.

These collaboration, alliance and license agreements and investments allow us to share knowledge, risk and cost.

These arrangements allow us to share knowledge, risk and cost.

They also enable us to access external scientific and technological expertise, as well as provide us the opportunity to advance our own products and in-licensed or acquired products.

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Our R&D Operations.

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 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.

In 2024, we continued to enhance our global R&D operations and pursued strategies to improve R&D productivity and advance a sustainable and value-creating pipeline.

Oncology was organized in an end-to-end Oncology R&D (ORD) organization, spanning discovery to late-phase clinical development.

Pfizer Research and Development (PRD) managed the same for our remaining therapeutic areas in addition to certain platform organizations.

Effective January 1, 2025, ORD and PRD were consolidated into a single R&D organization to further strengthen Pfizer’s capabilities and leadership in discovering and developing breakthrough medicines and vaccines.

As part of these changes, we are now evaluating how our simplified structure and sharpened focus might lead to improvements in productivity and potential efficiencies.

We expect any potential savings identified through these efforts to be reinvested in our R&D portfolio.

We manage R&D operations on a total-company basis through the organizations described above.

The Portfolio Management Team (PMT), currently chaired by our Chief Strategy and Innovation Officer, Executive Vice President, is accountable for aligning resources across R&D, and for helping to ensure optimal capital allocation across the R&D portfolio.

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

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.

We do not disaggregate total R&D expense by development phase or by therapeutic area since, as described above, we manage our R&D strategy and operations collectively under the governance of the PMT and do not manage our R&D operational spend independently 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.

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Our R&D Pipeline.

The process of drug and biological product discovery from initiation through development and to potential regulatory approval is lengthy and can take more than ten years.

As of January 30, 2024, we had the following number of projects in various stages of R&D:

The process of drug, vaccine and biological product discovery from initiation through development and to potential regulatory approval is lengthy and can take more than ten years.

As of February 4, 2025, we had the following number of projects in various stages of R&D:

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

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.

Information concerning several of our drug, vaccine and biological 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.

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Comirnaty has been granted an approval or an authorization in many countries around the world in populations varying by country.

We also share gross profits equally from commercialization of Comirnaty and are working jointly with BioNTech in our respective territories to commercialize the vaccine worldwide (excluding China, Hong Kong, Macau and Taiwan), subject to regulatory authorizations or approvals market by market.

We also share gross profits equally from commercialization of Comirnaty (excluding China, Hong Kong, Macau and Taiwan, where we do not have rights), subject to regulatory authorizations or approvals market by market.

For discussion on Comirnaty, see the Overview of Our Performance, Operating Environment, Strategy and Outlook—COVID-19 section within MD&A.

2024 Form 10-K

• Eliquis (apixaban) is part of the Novel Oral Anticoagulant market and was jointly developed and commercialized with BMS as an alternative treatment option to warfarin in appropriate patients.

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.

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.

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.

• 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.

• 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 SMPA.

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.

The companies equally share profits and allowable expenses in the U.S.

for Orgovyx, and in the U.S.

and Canada for Myfembree.

Pfizer does not have rights outside of these markets.

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

Pfizer does not have rights outside of this market.

Separately, in December 2024, the companies terminated their collaboration with respect to 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.

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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.

In the U.S., Pfizer and Astellas 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.

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 for Padcev 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.

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(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.

• Adcetris (brentuximab vedotin) 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.

In addition, we have collaboration and/or co-promotion arrangements with respect to certain other biopharmaceutical products, including, among others, certain of those described in the Item 1.

Business—Patents and Other Intellectual Property Rights section.

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 and Padcev, which are included in 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 certain of those described in the Product Development s section within MD&A.

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

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Revenues from operations outside the U.S.

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

of $24.9 billion, $31.4 billion and $57.9 billion accounted for 39%, 53% and 57% of Total revenues in 2024, 2023 and 2022, respectively.

Revenues exceeded $500 million in each of 11, 14 and 24 countries outside the U.S.

in 2024, 2023 and 2022, respectively.

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.

The decrease in the number of countries exceeding $500 million in revenues from 2023 to 2024 was primarily driven by decreases in international revenues related to Comirnaty and Paxlovid.

As a percentage of Total revenues , China was our largest market outside the U.S.

(representing 4% of total revenues) in 2024, and Japan was our largest market outside the U.S.

in 2023 and 2022 (representing 6% and 8% of total revenues, respectively).

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

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SALES AND MARKETING

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 prescription biopharmaceutical products are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies.

Our vaccines in the U.S.

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

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.

For more information, see Note 1G and 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 in the U.S.

Insurers and PBMs who design and negotiate formularies on their behalf use various benefit designs, such as tiered co-pays for formulary products, to drive utilization of products in preferred formulary positions, typically in exchange for a discount off the price of the medicine in the form of a rebate agreement.

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.

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We promote our products to healthcare providers and patients consistent with applicable laws.

Through our marketing organizations, we explain the approved uses, benefits and risks of our products to healthcare providers and patients;

MCOs that provide insurance coverage, such as hospitals, integrated delivery systems, PBMs and health plans;

Through our marketing organizations, we explain the approved uses, benefits and risks of our products to healthcare providers and patients and, in the U.S., to MCOs that provide insurance coverage, such as hospitals, integrated delivery systems, PBMs and health plans;

and employers and government agencies who hire MCOs to provide health benefits to their employees.

In the U.S., we market directly to consumers through direct-to-consumer advertising that seeks to communicate the approved uses, benefits and risks of our products while motivating people to have meaningful conversations with their doctors.

and select international markets, we market directly to consumers through direct-to-consumer advertising that seeks to communicate the approved uses, benefits and risks of our products while motivating people to have

2024 Form 10-K

meaningful conversations with their doctors.

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.

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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

Basic Product Patent Expiration Year (1)

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Inlyta 2025 2025 2025

Xeljanz 2025 2028 (2)

Prevnar 13/Prevenar 13 2026 (3)

Ibrance 2027 2028 2028

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

Vyndaqel/Vyndamax/Vynmac 2025 (7)

(2028 pending PTE)

2026 2026/2029 (8)

Nurtec ODT/Vydura 2030 (2034 pending PTE) 2035

Nurtec ODT/Vydura 2030

(2034 pending PTE)

Braftovi (10)

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(2027 pending PTE) (11)

Oxbryta 2033 2037

(2032 pending PTE)

(2034 pending PTE)

Lorbrena 2033 2034 2036

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(2035 pending PTE)

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

(2034 pending SPC)

Prevnar 20/Apexxnar 2033

(2035 pending PTE)

(2038 pending PTE)

(2038 pending SPC)

(2036 pending PTE)

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(2037 pending PTE)

Penbraya 2038 2038 (11)

COVID-19 Products

Pfizer-BioNTech COVID-19 Vaccine (20)

(2039 pending PTE)

(2037 pending PTE)

(2038 pending SPC)

(2038 pending PTE)

2024 Form 10-K

Basic Product Patent Expiration Year (1)

Major Europe Basic Product Patent Expiration Year (1)

Japan Basic Product Patent Expiration Year (1)

Comirnaty (17)

Paxlovid 2041 2041 2041

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

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.

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.

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

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(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.

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

Additional challenges are pending in other jurisdictions.

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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.

(10) There are other U.S.

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

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

(10) We have exclusive rights to Braftovi and Mektovi in the U.S., Canada and certain emerging markets.

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 a majority of markets outside the U.S.

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

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

(11) Mektovi U.S.

expiry is provided by a method of use patent.

expiry is provided by a composition of matter patent.

Interim patent term extension requests have been granted extending the expiry from March 2025 to March 2026 and Pfizer has filed an application for patent term extension to 2027.

patents remain in force beyond the composition of matter patent expiry.

Those patents have been challenged in litigation.

Refer to Note 16A1 for more information.

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

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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.

(13) 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.

(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).

(14) Ngenla is being developed in collaboration with OPKO Health, Inc.

(15) Tivdak is commercialized in collaboration with Genmab.

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

Outside the U.S., Genmab has the sole right to promote Tivdak for second-line plus mCC and has co-promotion rights for other indications in all territories except 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;

provided that Genmab will be solely responsible for all costs of development, manufacturing and commercialization of second-line plus mCC outside the U.S.

and the Zai Lab territories.

Genmab will pay Pfizer a royalty-based percentage of aggregate net sales of Tivdak for second-line plus mCC outside the U.S.

and the Zai Labs territories.

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.

other than Europe, China, and Japan, Pfizer will pay Genmab a royalty based on a percentage of aggregate net sales of Tivdak for indications other than second-line plus mCC.

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.

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

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

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

The Comirnaty trademark covers marketed variants.

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

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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.

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

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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.

Once patent protection has expired or has been lost prior to the expiration date as a result of a legal challenge, we typically lose market 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 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.

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

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.

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.

While additional patent-based or regulatory exclusivity

2024 Form 10-K

expiries will continue, we expect a moderate impact of reduced revenues due to patent expiries in 2025 and anticipate a more significant impact of reduced revenues from patent-based or regulatory exclusivity expiries in 2026 through 2030 as several of our in-line products experience these 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.

For additional information on the impact of loss of patent-based exclusivity or regulatory exclusivity on our revenues, see the Overview of Our Performance, Operating Environment, Strategy and Outlook—Our 2023 Performance section within MD&A.

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.

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Protecting our trademarks is of material importance to us.

2023 Form 10-K

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

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

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.

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

For example, our Accord for a Healthier World program 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.

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providers to deliver healthcare at a lower cost and to ensure that those expenditures deliver demonstrated value in terms of health outcomes.

Many employers have adopted or make available high deductible health plans, which can increase out-of-pocket costs for medicines.

Many employers have adopted or make available high deductible health plans, which can increase out-of-pocket costs for

2024 Form 10-K

medicines, or are using utilization management tools or limiting access on formularies.

This trend is likely to continue.

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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 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 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.

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.

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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.

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

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

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At the same time, consolidation in the MCO industry has resulted in fewer, even larger MCOs, which enhances those MCOs’ ability to negotiate lower pricing and further increases their importance to our business.

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.

Since MCOs purport to 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), long-term contracts and their ability to influence volume and market share of prescription drugs.

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At the same time, MCOs may seek to exclude high-cost drugs from formularies in their efforts to manage and lower their costs.

Exclusion of a product from a formulary or other MCO-implemented restrictions can significantly impact drug usage in the MCO patient population and beyond.

Exclusion of a product from a formulary or other restrictions can significantly impact drug usage in the MCO or PBM managed patient population and beyond.

Consequently, pharmaceutical companies compete to gain access to formularies for their products, typically on the basis of unique product features, such as greater efficacy, better patient ease of use, or fewer side effects, as well as the overall cost of the therapy.

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In general, these materials have been available in sufficient quantities to support our demand and in many cases are available from multiple suppliers.

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

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 do not anticipate the availability of raw materials to have a significant impact on our operations in 2025, but are monitoring potential supply chain disruptions as a result of ongoing geopolitical and trade negotiations, which could, among other things, impact costs.

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.

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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

Compliance with these laws and regulations is costly, and requires significant technical expertise and capital investment to ensure compliance.

2024 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 and devices.

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.

The statutes and 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, may also regulate certain of our products and activities.

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 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.

Absent statutory exclusivity for a competing product, if the FDA determines that the drug or biologic is safe and effective, the FDA generally will approve the product’s NDA or BLA (or supplemental NDA or supplemental BLA), as appropriate.

A drug or biologic may be subject to post marketing commitments, which are studies or clinical trials that the product sponsor agrees to conduct, or post marketing 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 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, third-party logistics providers, 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.

We are also responsible for monitoring, reviewing, and the periodic reporting of adverse drug experience, or pharmacovigilance, including information received from any source, such as commercial marketing experience, postmarketing clinical investigations, postmarketing epidemiological or surveillance studies, reports in the scientific literature, and unpublished scientific papers.

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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The FDA is responsible for approval of biosimilars.

Innovator biologics, or reference products, are entitled to 12 years exclusivity.

Innovator biologics, or reference products, are entitled to certain exclusivity periods.

Applications for biosimilars may not be submitted until four years after the date on which the reference product was first licensed and may not be approved until 12 years after the reference product was first licensed.

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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.

These laws can apply to both our direct-to-consumer marketing practices as well as our marketing to clinicians and healthcare facilities.

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.

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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.

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

State attorneys general have also taken action to regulate the marketing of prescription drugs under state consumer protection and false advertising laws.

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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.

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

We also must report specific prices to state and federal 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 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 drug pricing provisions of the IRA are being implemented 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.

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, the Medicare Prescription Payment Plan, that allows patients to pay their cost-sharing over time.

These changes also include a new Medicare Part D Manufacturer Discount Program, which will change our discounting obligations for Medicare Part D utilization of our drugs.

Specifically, this program requires manufacturers to provide a 10% discount on branded prescriptions in the initial coverage phase and a 20% discount in the catastrophic phase.

The IRA also 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 MDPNP.

In August 2023, CMS published the first ten medicines subject to the MDPNP, which included Eliquis.

In August 2024, the government released the new Medicare price for Eliquis, which, effective January 1, 2026, will be required to be offered to all Medicare beneficiaries and to covered entities participating in the 340B Program that dispense Eliquis to a Medicare beneficiary if that maximum fair price is lower than the discounted price such entities are offered under the 340B Program ceiling price calculation.

The Eliquis Medicare price is factored into our long-term financial planning, in accordance with our standard financial reporting and forecasting protocols.

On January 17, 2025, CMS announced the selection of another 15 drugs from Medicare Part D for the maximum fair price, with prices to be set and effective on January 1, 2027.

Ibrance and Xtandi were included in the list of 15 drugs selected.

Another 15 drugs from Medicare Part B or Medicare Part D will be selected by February 1, 2026, for the maximum price to be set and in effect by January 1, 2028.

It is possible that more of our products could be selected in future years, which could, among other things, lead to lower revenues prior to expiry of intellectual property protections.

The MDPNP is currently subject to legal challenges and therefore, the outcome of the MDPNP 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.

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

We anticipate a net unfavorable impact to revenue in 2025 of approximately $1 billion, year-over-year, related to the Medicare Part D redesign changes that take effect in 2025.

See the discussion regarding

2024 Form 10-K

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 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.

changes to the IRA in the Overview of Our Performance, Operating Environment, Strategy and Outlook—Our Operating Environment section within MD&A.

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

Additionally, in September 2024, CMS finalized a new rule that, among other items, expands the scope of medications considered to be “covered outpatient drugs” that could be subject to rebates under the MDRP and imposes penalties on covered outpatient drugs that CMS determines to be “misclassified.” Many pharmaceutical manufacturers believe the 340B Program continues to expand beyond the original intent of serving low-income/uninsured patients.

There has been limited government intervention to control this unintended growth.

Various potential changes impacting the scope of the 340B Program are undergoing review or are the subject of litigation, and their status is unclear.

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

The HHS Health Resources and Services Administration (HRSA), which administers the 340B Program, sent letters to numerous manufacturers (not including Pfizer) that have also implemented contract pharmacy policies and integrity initiatives;

the letters expressed HRSA’s view that those manufacturers’ policies were in violation of the 340B Program statute.

Several manufacturers have challenged HRSA’s enforcement letters in federal court and litigation is ongoing in certain of those cases, and were resolved in favor of the manufacturers in others.

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.

In addition, some states have enacted laws opposing manufacturer restrictions on 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.

Several stakeholders have challenged such laws and litigation is ongoing in certain jurisdictions.

Additionally, 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.

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.

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

See the Item 1A.

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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.

In the U.S., we expect to see continued focus by the U.S.

government 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.

There is considerable public and government scrutiny of pharmaceutical pricing and intellectual property 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 or establish upper pricing limits that cap 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.

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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.

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

The legislative, regulatory and litigation landscape for privacy and data protection requirements is rapidly evolving and changing, and may limit our ability to use data globally or across borders.

Data protection 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.

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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.

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

The centralized procedure is mandatory for certain new products and optional for others.

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 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.

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/EC) before they begin reviewing or approving applications.

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

In April 2023, the EC adopted a proposal to revise the EU pharmaceutical legislation.

In April 2024, the European Parliament introduced amendments to the EC's proposal.

The EU legislative process remains ongoing, with several stages still required before the reform can receive final approval.

Once completed, the reform is likely to be the most comprehensive overhaul of EU medicines regulation in over 20 years, with a wide range of impacts including on approval procedures, regulatory data protection, and environmental protection measures.

Once approved, certain provisions of the reform could potentially have an adverse impact on our business.

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Pharmacovigilance.

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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

2023 Form 10-K

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

Certain governments, including in the different EU member states, the U.K., Japan, China and Canada, 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, 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 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”.

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 aimed 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.

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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.

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

A centralized VBP program with a tendering process implemented at both the national level and the provincial level 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.

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, were included as candidates in VBP rounds in 2023, and Pfizer was not successful in the bidding process for such products.

China is continuing its use of Health Technology Assessment and is controlling mark-ups within the country using a two-invoice limited system, aiming to regulate the pricing of pharmaceutical products and certain types of medical devices.

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

The government has indicated that additional drugs which are past patent-based exclusivity expiry (including biological products) could be subjected to VBP qualification in future rounds.

Certain of our products, such as Xeljanz, Unasyn, Hemabate and Ibrance, were included as candidates in the tenth national VBP round in 2024, 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.

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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, 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.

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.

However, in the EU, ongoing review of pharmaceutical legislation may reduce the basic period of regulatory data protection.

In several emerging market countries and multilateral institutions, governments continue to address the role of intellectual property in the context of, for example, access to medicines.

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.

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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.

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

The legislative, regulatory and litigation landscape for privacy and data protection requirements is rapidly evolving and changing, and may limit our ability to use data globally or across borders.

Data protection 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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See also Note 16A3 .

2024 Form 10-K

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 greenhouse gas (GHG) emissions and achieve the Science Based Target Initiative’s voluntary Net-Zero Standard by 2040.

In 2022, we announced a 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 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.

Our emission reduction plan-related expenses and capital spending incurred for 2024 were not 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.

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

Risk Factors—Climate Change and Sustainability section.

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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 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 core values – Courage , Excellence , Equity and Joy .

Each value defines our company and our culture:

Breakthroughs start by challenging convention – especially in the face of uncertainty or adversity.

This happens when we think big, speak up and are decisive.

• Excellence :

We can only change patients’ lives when we perform at our best together.

This happens when we focus on what matters, agree who does what and measure outcomes.

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

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.

We find joy when we take pride, recognize one another and have fun.

Diversity, Equity and Inclusion.

At Pfizer, every person deserves to be seen, heard and cared for.

We embed diversity, equity and inclusion in our workplace and our purpose of delivering breakthroughs that change patients’ lives.

As we work to bring together people with different backgrounds, perspectives and experiences we take specific actions to help foster an inclusive environment within Pfizer and beyond, including, among others:

(i) building a more inclusive colleague experience through representation and meaningful connections;

(ii) advancing equitable health outcomes by evaluating our work through the lens of the communities we serve, (iii) providing resources on allyship and the science behind inclusion to support all colleagues in having courageous conversations about equity, race and the avoidance of bias;

(iv) working to help transform society with external diversity, equity and inclusion partnerships, including deploying capital, engaging diverse suppliers and amplifying equity initiatives;

and (v) working to help ensure demographics of clinical trials correlate to those of the countries where trials are taking place.

As of December 31, 2024, we employed approximately 81,000 people worldwide.

Our ability to successfully deliver on our purpose is dependent on our people.

We work to create an environment that prioritizes colleagues' health and wellness.

Our people-centric approach touches every aspect of the employee experience — including recruiting, benefits, compensation and development.

Creating a purpose-driven workplace that attracts, nurtures, and retains top talent is a priority.

Our vibrant and supportive work culture is designed to empower colleagues to innovate, collaborate, and contribute meaningfully to improving global health.

We invest in comprehensive development programs, provide merit-based opportunities for advancement, and encourage work-life integration through flexible work arrangements.

We cultivate community in our workplace and our purpose of delivering breakthroughs that change patients’ lives.

As we work to bring together people with different perspectives and experiences we foster a collaborative environment based on merit.

We continue to execute a merit-based talent approach, focusing on identifying candidates with the right qualifications and ensuring they are considered for the opportunities based on their skills, abilities, and performance.

We aim to provide everyone with an opportunity to demonstrate their merit.

Our leaders set the tone for the company, embracing accountability and transparency, while promoting a vibrant culture in which colleagues are free to speak up and are encouraged to share views and raise concerns without fear of retaliation.

Colleague Engagement .

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 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:

(i) employee engagement, such as colleagues’ commitment to and advocacy for Pfizer;

(ii) purpose, including how colleagues’ work connects with our purpose;

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

(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.

Open communication and feedback are essential elements of our commitment to performance, colleague engagement, and teamwork.

Pfizer managers discuss colleague performance and leadership assessments regularly, with the intent to encourage breakthrough goals and foster leadership.

We understand that communication goes both ways:

equally important is our commitment to listening and responding to colleague feedback, to foster a healthy work environment with the power to attract and retain top talent.

We are passionate about creating safe spaces at work, so our colleagues feel able and encouraged to provide the company with feedback and raise concerns and questions.

The Office of the Ombuds is a resource colleagues, at any level, can connect with 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 colleagues to speak up without fear of retaliation.

Our annual engagement survey, Pfizer Pulse, provides a forum for our colleagues to give structured feedback and allows us to measure and track priority areas and equip leaders with actionable insights.

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

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

Pfizer 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.

In 2024, we introduced our Actionable Attitudes leadership mindset:

anchor in trust, challenge convention, embrace uncertainty, engage with compassion, progress over perfection, and rise above.

Complementing our Pfizer values and behaviors, our Actionable Attitudes leadership mindset embodies the attitudes every colleague should aspire to demonstrate, to foster a more dynamic, innovative, and compassionate place to work.

In addition, in 2024, we expanded our “Project-Based Ways of Working,” which is designed to empower cross-functional teams to drive decisions within established guardrails and provides access to leadership for removing roadblocks, allowing colleagues to take on leadership roles and decision responsibilities through training, coaching, and a robust support network.

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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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.

Our commitments to colleague development consist of specific actions to encourage non-linear “zig-zag” career growth paths for all colleagues, including (i) a common language around growth—along with a guiding framework—to help colleagues identify their next best growth experience, (ii) tools and resources to encourage growth conversations and offer transparency on the sources of growth available, and (iii) a variety of opportunities to grow through experiences, connections with others and learning programs, including mentoring, job rotations, experiential projects, skill-based volunteering and personalized learning pathways that address a variety of topics, including leadership and management skills and industry- and job-specific learning, as well as general business, manufacturing, finance and technology skills.

Supporting colleagues’ ongoing growth not only supports their individual success but also cultivates 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 colleagues with opportunities for learning, skill-building, and growth is essential to their engagement, productivity, and overall job satisfaction.

Investing in career growth and development reaffirms our commitment to our colleagues, demonstrates our belief in their potential, and supports them in being motivated, agile, and equipped with the necessary skills to tackle new challenges and seize emerging opportunities.

Our perspective on career growth continues to shift from a traditional, linear view to one that is built on aspirations and embraces a variety of experiences.

We actively encourage growth opportunities and part-time or temporary projects that allow colleagues to expand their expertise and build new skills while remaining in their current roles.

We also promote diagonal moves, where colleagues pursue new roles in different job functions to gain a holistic understanding of the enterprise.

By fostering an environment that encourages continuous learning, embraces flexibility, and empowers decision-making at all levels, we are not just preparing our workforce for the future—we are actively shaping it.

We believe this approach helps ensure that Pfizer remains at the forefront of innovation, ready to tackle the health challenges of tomorrow with a skilled, adaptable, and purpose-driven team.

Health, Safety and Well-Being .

Protecting the health, safety and well-being of colleagues and contingent workers, all of whom are essential to delivering our business objectives, is an integral part of how we operate.

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.

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.

At Pfizer, protecting the health, safety, and well-being of colleagues and contingent workers, all of whom are essential to driving our business forward, is an integral part of how we operate.

Pfizer's Global Environment, Health & Safety (EHS) Policy and

2024 Form 10-K

supporting standards outline our approach to assessment, evaluation, elimination, and mitigation of EHS risks across our operations globally.

Our leadership is accountable for EHS compliance and risk management.

Colleagues and contingent workers receive EHS training relevant to their job roles, including measures to prevent workplace incidents and injuries.

In addition, we conduct workplace assessments, inspections, and audits to evaluate and continuously improve our EHS arrangements.

We are committed to supporting and encouraging our colleagues' well-being.

We use results from Pfizer Pulse and other colleague 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 providing colleagues with disabilities tools and equipment to do their jobs effectively;

(iv) measures to assist those with neurodiverse conditions, such as sensory rooms and noise cancelling headphones;

(v) a toolkit to aid in accommodation needs, education for managers and additional tools to help those who need any type of assistance to perform their roles;

this includes on demand American Sign Language (ASL) services;

(vi) mental health resources, including a manager/team toolkit designed to facilitate conversations, actively support coworkers, and provide local resources for colleagues to access services;

(vii) programming through Employee Assistance Program (EAP) providers, including our mental health partner, THRIVE, our fitness partner, Exos, and our healthcare partner, Kepro;

(viii) financial support, including short-term loans and natural disaster relief;

and (ix) work policies to help enable colleagues to work effectively from home and their local offices, including our "Flex10" program that offers colleagues in hybrid roles 10 workdays per year to work from a different location within their country.

Our commitment to pay equity for all colleagues is based in our values and our intention to continue to build a 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.

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What changed 10-K

Item 1. Business