Dear Shareholders,

While 2023 was a year of several challenges, it was also a year of significant accomplishments. A year that I believe sets up our company for incredible progress in 2024 and beyond, as we celebrate 175 years of breakthrough innovations that serve patients around the world.

First, the hard truth. We missed our initial projections, largely due to the decline in sales of our COVID-19 products.

We took corrective steps. We eliminated many uncertainties related to COVID-19 products and reduced COVID-19 product inventory to reflect anticipated future demand; we improved our commercial structure; and we launched a cost-realignment program to right-size our cost base. Difficult, but necessary, decisions were made, enabling us to be more efficient and effective. I am proud that we met our challenges with courage, compassion, and renewed commitment to our purpose.

In terms of achievements, there were many. Among them, approximately 618 million patients around the world were treated with Pfizer medicines and vaccines in 2023¹; we received a record number of FDA approvals for new molecular entities; and we completed our acquisition of Seagen, a critical step in our ambition to end cancer as we know it. Our newly combined expertise and resources hold great promise for our oncology organization, and we are excited about what we can do to help the millions of patients worldwide who are living with cancer.

These accomplishments, combined with the resilience of our colleagues, are why I am optimistic about the future of Pfizer and what we will deliver to patients. In addition to making great progress in fighting cancer, we will leverage the almost limitless potential of science toward our goal of defeating diseases that have been vexing society for centuries.

Taking advantage of artificial intelligence (AI) and other new technologies, we are poised to transform the way healthcare is delivered. I am confident that Pfizer's bright future will be marked by continued breakthroughs and a lasting positive impact on the world.

Patient Impact

In 2022, we set an ambitious goal of changing one billion lives per year by 2027. I am proud to share the progress we made toward this goal in 2023. Approximately 618 million people around the world were treated with Pfizer medicines and vaccines in 2023,¹ a testament to our reach and ability to deliver breakthroughs. 

Our strategy focuses on maximizing our efficiency and efficacy so we can reach as many patients as possible. We streamlined our processes, enabling us to deliver breakthroughs more quickly without compromising quality. Additionally, we expanded our portfolio to help ensure that we are meeting the needs of different patient populations and addressing unmet patient needs.  

The recent FDA approval of the first and only calcitonin gene-related peptide (CGRP) receptor antagonist nasal spray for the acute treatment of migraine is a testament to our commitment to developing novel, innovative treatments for people suffering from debilitating diseases. Additionally, the approvals of our pneumococcal conjugate vaccine for infants and children and our respiratory syncytial virus (RSV) vaccine for maternal immunization and adults over 60 years old are making a real difference in helping to protect babies and their grandparents. With these milestones and many more to come, we are well on our way to achieving our ambitious goals. 

Performance

For the full year 2023, we reported revenues of $58.5 billion, reflecting an operational decrease of 41% year over year, primarily due to a significant decline in revenues for our COVID-19 products. Excluding our COVID-19 products, we achieved 7% operational revenue growth, solidly in line with our expectations for non-COVID-19 product revenues. Our full year and fourth-quarter 2023 results included approximately $120 million in Seagen product revenue after the close of the acquisition on December 14, and we expect that Seagen will be a substantial growth contributor in 2024 and beyond. Our capital allocation strategy is designed to enhance shareholder value and is based on three core pillars: growing our dividend, reinvesting in the business, and making share repurchases after de-levering our balance sheet.

Despite the decline in revenue from our COVID-19 products, for the full year 2023, we were the No. 1 pharmaceutical company in terms of revenues from pharmaceutical-only products, a marked improvement from our No. 4 position in 2019. These accomplishments have laid a strong foundation for us to maximize opportunities and drive success in 2024 and beyond.

Detailed information on our financial and operational performance can be found in our 2023 Annual Report on Form 10-K.

Bright Future

2023 was a record-breaking year for FDA approvals for Pfizer, with nine new molecular entity approvals and many more approvals for new indications in already approved products, marking a very productive year of pipeline execution for Pfizer. Our research and development (R&D) success rates are notably higher than industry benchmarks, and we significantly reduced the time it takes to bring new products to market compared to five years ago. We are on an exciting trajectory that builds on a legacy of discovering, developing, and delivering breakthroughs that have changed patients' lives since 1849.

2023 was a record-breaking year for FDA approvals

Over 175 years, Pfizer’s medicines and vaccines have set the gold standard for the pharmaceutical industry. Our commitment to investing in R&D and our track record of successful acquisitions position us well to continue bringing new and impactful treatments to market for years to come.  

Health Equity

As a company with equity as a core value, we have a deep passion and commitment to achieving global health equity. We understand that pharmaceutical companies alone cannot address the complex challenges that contribute to health inequities, which is why we actively seek partnerships and collaborations with other sectors and industries to drive progress.  

As part of this commitment, we have made substantive progress with our initiative, “An Accord for a Healthier World,” which aims to provide greater access to medicines and vaccines to 1.2 billion people living in 45 lower-income countries around the world. The infographic below outlines our progress to date. Seven countries have signed framework supply agreements with us, and we are actively working with their governments to help enable a seamless supply of selected products, including cancer treatments, anti-infectives, vaccines, and other therapies. We are also making progress on our efforts to provide further support and capability-building for health systems in these countries because we know that affordable product supply is only one step to reaching those in need. 

Our health equity work is just one element of Pfizer's broader environmental, social, and governance (ESG) strategy. We are committed to addressing ESG challenges on multiple fronts, from reducing greenhouse gas emissions, to promoting diversity and inclusion, to championing ethical business practices, and more. Through these initiatives, and the work we do to deliver on our purpose, we are proud to be a force for good in the world.

Spotlight

Conquering Cancer

Cancer is a devastating disease that affects one in three people in the United States (U.S.) in their lifetime. The steps we are taking to harness the power of science can – and I believe, will – make significant progress toward conquering it within our lifetime.  

Our recent acquisition of Seagen is a turning point in our oncology story. With Seagen’s leading antibody-drug conjugate (ADC) technology and Pfizer's capabilities and scale, we are confident that we will accelerate breakthroughs in cancer medicines to patients around the world. The combined commercial infrastructure of Pfizer and Seagen is three times the size of Seagen alone in the U.S. Our oncology pipeline doubled in size and is now armed with technologies that can help transform outcomes for patients.   

Pfizer has been a leading force in the treatment of cancer for more than two decades. When the world tells the story of how the lives of people with cancer were drastically improved, I believe the role of Pfizer Oncology and our acquisition of Seagen will be a pivotal chapter.    

When the world tells the story of how the lives of people with cancer were drastically improved, I believe the role of Pfizer Oncology and our acquisition of Seagen will be a pivotal chapter.

2023 was also a year of oncology approvals, including new indications in prostate cancer in the U.S. and a new treatment for multiple myeloma in the U.S. and European Union. We have an industry-leading portfolio with over 25 approved innovative cancer medicines and biosimilars across more than 40 indications, and dozens of programs in clinical development. We are entering a new era of cancer care from a position of strength, and we are ready to bring new hope to patients around the globe. 

Spotlight

Digital Transformation

Digital capabilities and AI are transforming healthcare, accelerating our ability to bring new breakthroughs to patients everywhere. For years, Pfizer has been harnessing Digital and AI across the entire company to drive innovation and productivity on a global scale. For example, supercomputing, AI, and virtual in silico screening accelerate our scientific research by reducing computational times by 80-90%, and our industry-first Digital Operations Center and AI-powered manufacturing processes are increasing throughput by 20%, enabling us to deliver more medicines to patients faster.  

In 2023, we introduced our internal generative AI platform that accelerates our work and is estimated to have the potential to deliver $750 million to $1 billion in value in the near term. For example, AI is helping to create more customized content 75% faster, so patients and doctors receive the most relevant information when they need it. In manufacturing, Pfizer is identifying the optimal process parameters for manufacturing a given product (which we refer to as a “Golden Batch”), and then using AI to detect anomalies and recommend real-time actions to our operators – aiming to improve product yield by 10% and cycle time by 25%.    

Our internal generative AI platform is estimated to have the potential to deliver $750 million to $1 billion in value in the near term.

Looking ahead, as we accelerate our battle against cancer with the acquisition of Seagen, we are applying Digital and AI across the entire oncology business, including identifying novel drug targets and accelerating clinical trials, manufacturing, and regulatory submissions to transform the future of cancer care. We hope to have a similar level of impact for cancer as we were able to achieve with COVID-19 because we know that for patients and their loved ones, time is life. 

Spotlight

Building Trust in Science

Pfizer is a science-based company. We rely on facts. Like cures, providing accurate information – especially about vaccines and medicines – can avoid deadly consequences. We are committed to doing everything we can to build trust in science and promote accurate science-based information. These are key priorities for us, and we are advancing them through our digital channels and collaboration with healthcare organizations and key stakeholders.  

Closing

I want to express my deepest gratitude to my incredible colleagues at Pfizer for another remarkable year of achievements and advancements. I am proud that Pfizer was once again recognized as one of the most innovative and ethical companies. We were named one of Fortune's “World's Most Admired Companies” and one of the “World's Most Ethical Companies” by Ethisphere. These accolades are a testament to our colleagues' talent, dedication, and unwavering commitment to our purpose. I am honored to work with them every day. 

In 2024, Pfizer celebrates its 175^th anniversary as one of the world's most innovative and trusted companies in healthcare. Proud as we are of what we have delivered to the world, our focus, as always, is on the future and building on our legacy through flawless execution. We are keenly aware that we have to earn your trust every day. By making progress in the ways that matter most to our patients, I am confident we will. And I am excited for what the future holds for our company, but more importantly, for the patients who count on us as we continue to push the boundaries of scientific discovery and transform the world of healthcare. 

I believe Pfizer is well-positioned for consistent sustainable growth potential going forward. We have the right products, the right people, and the right plan for great success in 2024 and beyond.  

Simply put, we will outdo yesterday.

Thank you for your continued support of our important work.

Dr. Albert Bourla

Chairman & Chief Executive Officer​​​​​​​