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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 30,2025OR TRANSITION REPORT PURSUANT TO SECTION 13OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For

2、the transition period from _ to _COMMISSION FILE NUMBER 1-3619-PFIZER INC.(Exact name of registrant as specified in its charter)Delaware13-5315170(State of Incorporation)(I.R.S.Employer Identification No.)66 Hudson Boulevard East,New York,New York 10001-2192(Address of principal executive offices)(z

3、ip code)(212)733-2323(Registrants telephone number including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,$0.05 par valuePFENew York Stock Exchange1.000%Notes due 2027PFE27New York Stock

4、ExchangeIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during thepreceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to su

5、ch filing requirements for the past 90days.YesxNoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period th

6、at the registrant was required to submit such files).YesxNoIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerginggrowth company.See the definitions of“large accelerated filer,”“accelerated fil

7、er,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 ofthe Exchange Act:Large Accelerated filer x Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to u

8、se the extended transition period for complying with any new or revisedfinancial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).YesNoxAt April 30,2025,5,685,365,

9、587 shares of the issuers voting common stock were outstanding.TABLE OF CONTENTSPART I.FINANCIAL INFORMATIONPageItem 1.Financial Statements Condensed Consolidated Statements of Operations5Condensed Consolidated Statements of Comprehensive Income6Condensed Consolidated Balance Sheets7Condensed Consol

10、idated Statements of Equity8Condensed Consolidated Statements of Cash Flows9Notes to Condensed Consolidated Financial Statements10Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations33Item 3.Quantitative and Qualitative Disclosures About Market Risk50Item 4.Con

11、trols and Procedures50PART II.OTHER INFORMATION Item 1.Legal Proceedings50Item 1A.Risk Factors50Item 2.Unregistered Sales of Equity Securities and Use of Proceeds50Item 3.Defaults Upon Senior SecuritiesN/AItem 4.Mine Safety DisclosuresN/AItem 5.Other Information51Item 6.Exhibits51Signature51N/A=Not

12、Applicable2DEFINED TERMSUnless the context requires otherwise,references to“Pfizer,”“the Company,”“we,”“us”or“our”in this Form 10-Q(defined below)refer to Pfizer Inc.and itssubsidiaries.Pfizers fiscal quarter-end for subsidiaries operating outside the U.S.is as of and for the three months ended Febr

13、uary 23,2025 and February 25,2024,andfor U.S.subsidiaries is as of and for the three months ended March 30,2025 and March 31,2024.References to“Notes”in this Form 10-Q are to the Notes to theCondensed or Consolidated Financial Statements in this Form 10-Q or in our 2024 Form 10-K.We also have used s

14、everal other terms in this Form 10-Q,most of whichare explained or defined below:*Indicates calculation not meaningful or results are greater than 100%2024 Form 10-KAnnual Report on Form 10-K for the fiscal year ended December 31,2024AbbVieAbbVie Inc.AIartificial intelligenceALKanaplastic lymphoma k

15、inaseAlliance revenuesRevenues from alliance agreements under which we co-promote products discovered or developed by other companies or usAstellasAstellas Pharma Inc.,Astellas US LLC and Astellas Pharma US,Inc.ATTR-CMtransthyretin amyloid cardiomyopathyBioNTechBioNTech SEBiopharmaGlobal Biopharmace

16、uticals BusinessBlackstoneBlackstone Life SciencesBMSBristol-Myers Squibb CompanyBODBoard of DirectorsCDCU.S.Centers for Disease Control and PreventionCMSCenters for Medicare&Medicaid ServicesCODMChief Operating Decision MakerComirnatyUnless otherwise noted,refers to,as applicable,and as authorized

17、or approved,the Pfizer-BioNTech COVID-19 Vaccine;Comirnaty(COVID-19 Vaccine,mRNA)original monovalent formula;the Pfizer-BioNTech COVID-19 Vaccine,Bivalent(Original and OmicronBA.4/BA.5);the Pfizer-BioNTech COVID-19 Vaccine(2023-2024 Formula);Comirnaty(COVID-19 Vaccine,mRNA)2023-2024 Formula;Pfizer-B

18、ioNTech COVID-19 Vaccine(2024-2025 Formula);Comirnaty(COVID-19 Vaccine,mRNA)2024-2025 Formula;ComirnatyOriginal/Omicron BA.1;Comirnaty Original/Omicron BA.4/BA.5;Comirnaty Omicron XBB.1.5;Comirnaty JN.1 and Comirnaty KP.2.COVID-19novel coronavirus disease of 2019Developed MarketsIncludes,but is not

19、limited to,the following markets:Western Europe,Japan,Central Europe,Canada,Australia,Eastern Europe,Scandinavian countries,South Korea,New Zealand and FinlandEMAEuropean Medicines AgencyEmerging MarketsIncludes,but is not limited to,the following markets:Asia(excluding Japan and South Korea),Latin

20、America,Eastern Europe(excluding theBalkans),Africa,the Middle East and TurkeyEPSearnings per shareEUEuropean UnionEUAemergency use authorizationExchange ActSecurities Exchange Act of 1934,as amendedFASBFinancial Accounting Standards BoardFDAU.S.Food and Drug AdministrationForm 10-QThis Quarterly Re

21、port on Form 10-Q for the quarterly period ended March 30,2025GAAPU.S.Generally Accepted Accounting PrinciplesGSKGSK plcHaleonHaleon plcHIPAAHealth Insurance Portability and Accountability Act of 1996HospiraHospira,Inc.HRRhomologous recombination repairIPR&Din-process research and developmentIRAInfl

22、ation Reduction Act of 2022IRSU.S.Internal Revenue ServiceJVjoint ventureKingKing Pharmaceuticals LLC(formerly King Pharmaceuticals,Inc.)mCRCmetastatic colorectal cancermCRPCmetastatic castration-resistant prostate cancermCSPCmetastatic castration-sensitive prostate cancerMD&AManagements Discussion

23、and Analysis of Financial Condition and Results of OperationsMDLMulti-District LitigationMedicare Part Ba medical insurance plan that helps cover medically necessary services,outpatient care,and preventative services for people with Medicare(a)Medicare Part Da prescription drug coverage program for

24、people with Medicare3MeridianMeridian Medical Technologies,Inc.MoodysMoodys Ratings(formerly Moodys Investors Service)mRNAmessenger ribonucleic acidNDANew Drug ApplicationnmCRPCnon-metastatic castration-resistant prostate cancernmCSPCnon-metastatic castration-sensitive prostate cancerNSCLCnon-small

25、cell lung cancerODToral disintegrating tabletOnoOno Pharmaceutical Co.,Ltd.OTCover-the-counterPaxlovidan oral COVID-19 treatment(nirmatrelvir tablets and ritonavir tablets)PC1Pfizer CentreOnePharmaciaPharmacia LLC(formerly Pharmacia Corporation)Pierre FabrePierre Fabre Medicament SASPrevnar familyIn

26、cludes Prevnar 20/Apexxnar(pediatric and adult)and Prevnar 13/Prevenar 13(pediatric and adult)PsApsoriatic arthritisQTDQuarter-to-date or three months endedRArheumatoid arthritisR&Dresearch and developmentRSVrespiratory syncytial virusS&PS&P Global(formerly Standard&Poors)SeagenSeagen Inc.and its su

27、bsidiariesSECU.S.Securities and Exchange CommissionSI&ASelling,informational and administrative expensesTakedaTakeda Pharmaceutical Company LimitedUCulcerative colitisU.K.United KingdomU.S.United StatesViiVViiV Healthcare LimitedVyndaqel familyIncludes Vyndaqel,Vyndamax and VynmacCertain uses of Pax

28、lovid and COVID-19 vaccines from BioNTech and Pfizer have not been approved or licensed by the FDA.Paxlovid has been authorized for emergency use by the FDA under anEUA for the treatment of mild-to-moderate COVID-19 in pediatric patients(12 years of age and older weighing at least 40 kg)who are at h

29、igh risk for progression to severe COVID-19,includinghospitalization or death.Emergency uses of COVID-19 vaccines from Pfizer and BioNTech,including Pfizer-BioNTech COVID-19 Vaccine(2024-2025 Formula),have been authorized foremergency use by the FDA under an EUA to prevent COVID-19 in individuals ag

30、ed 6 months of age and older.The emergency uses are only authorized for the duration of the declaration thatcircumstances exist justifying the authorization of emergency use of the medical product during the COVID-19 pandemic under Section 564(b)(1)of the U.S.Federal Food,Drug and CosmeticsAct,unles

31、s the declaration is terminated or authorization revoked sooner.Please see the EUA Fact Sheets at and www.cvdvaccine-.This Form 10-Q includes discussion of certain clinical studies relating to various in-line products and/or product candidates.These studies typically are part ofa larger body of clin

32、ical data relating to such products or product candidates,and the discussion herein should be considered in the context of the larger body ofdata.In addition,clinical trial data are subject to differing interpretations,and,even when we view data as sufficient to support the safety and/or efficacy of

33、 aproduct candidate or a new indication for an in-line product,regulatory authorities may not share our views and may require additional data or may denyapproval altogether.Some amounts in this Form 10-Q may not add due to rounding.All percentages have been calculated using unrounded amounts.All tra

34、demarks mentioned arethe property of their owners.The information contained on our website,our Facebook,Instagram,YouTube and LinkedIn pages or our X(formerly known as Twitter)accounts,or any third-party website,is not incorporated by reference into this Form 10-Q.Certain of the products and product

35、 candidates discussed in this Form 10-Q are being co-researched,co-developed and/or co-promoted in collaboration withother companies for which Pfizers rights vary by market or are the subject of agreements pursuant to which Pfizer has commercialization rights in certainmarkets.(a)(a)4PART I.FINANCIA

36、L INFORMATIONITEM 1.FINANCIAL STATEMENTSPFIZER INC.AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)Three Months Ended(MILLIONS,EXCEPT PER SHARE DATA)March 30,2025March 31,2024Revenues:Product revenues$11,294$12,443 Alliance revenues2,113 2,172 Royalty revenues308 26

37、3 Total revenues13,715 14,879 Costs and expenses:Cost of sales2,845 3,379 Selling,informational and administrative expenses3,031 3,495 Research and development expenses2,203 2,493 Acquired in-process research and development expenses9 Amortization of intangible assets1,211 1,308 Restructuring charge

38、s and certain acquisition-related costs678 102 Other(income)/deductionsnet953 680 Income from continuing operations before provision/(benefit)for taxes on income2,785 3,421 Provision/(benefit)for taxes on income(189)293 Income from continuing operations2,973 3,128 Discontinued operationsnet of tax(5

39、)Net income before allocation to noncontrolling interests2,973 3,123 Less:Net income attributable to noncontrolling interests6 8 Net income attributable to Pfizer Imon shareholders$2,967$3,115 Earnings per common sharebasic:Income from continuing operations attributable to Pfizer Imon shareholders$0

40、.52$0.55 Discontinued operationsnet of tax Net income attributable to Pfizer Imon shareholders$0.52$0.55 Earnings per common sharediluted:Income from continuing operations attributable to Pfizer Imon shareholders$0.52$0.55 Discontinued operationsnet of tax Net income attributable to Pfizer Imon shar

41、eholders$0.52$0.55 Weighted-average sharesbasic5,675 5,657 Weighted-average sharesdiluted5,710 5,697 Exclusive of amortization of intangible assets.See Accompanying Notes.(a)(a)(a)(a)5PFIZER INC.AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED)Three Months

42、Ended(MILLIONS)March 30,2025March 31,2024Net income before allocation to noncontrolling interests$2,973$3,123 Foreign currency translation adjustments,net(557)140 Unrealized holding gains/(losses)on derivative financial instruments,net(123)217 Reclassification adjustments for(gains)/losses included

43、in net income(313)(12)(436)205 Unrealized holding gains/(losses)on available-for-sale securities,net(31)(51)Reclassification adjustments for(gains)/losses included in net income155(14)124(65)Reclassification adjustments related to amortization of prior service costs and other,net(30)(28)Reclassifica

44、tion adjustments related to curtailments of prior service costs and other,net(33)(64)(28)Other comprehensive income/(loss),before tax(932)251 Tax provision/(benefit)on other comprehensive income/(loss)(191)53 Other comprehensive income/(loss)before allocation to noncontrolling interests$(741)$198 Co

45、mprehensive income/(loss)before allocation to noncontrolling interests$2,232$3,321 Less:Comprehensive income/(loss)attributable to noncontrolling interests4 3 Comprehensive income/(loss)attributable to Pfizer Inc.$2,229$3,319 Reclassified into Other(income)/deductionsnet and Cost of sales.See Note 7

46、E.Reclassified into Other(income)/deductionsnet.See Accompanying Notes.(a)(b)(a)(b)6PFIZER INC.AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED BALANCE SHEETS(MILLIONS)March 30,2025December 31,2024(Unaudited)AssetsCash and cash equivalents$1,430$1,043 Short-term investments15,887 19,434 Trade accounts

47、 receivable,net of allowance for doubtful accounts:2025$427;2024$43811,845 11,463 Inventories10,852 10,851 Current tax assets2,900 3,314 Other current assets2,947 4,253 Total current assets45,861 50,358 Equity-method investments224 217 Long-term investments1,789 2,010 Property,plant and equipment,ne

48、t of accumulated depreciation:2025$16,842;2024$16,48318,347 18,393 Identifiable intangible assets,net53,976 55,411 Goodwill68,444 68,527 Noncurrent deferred tax assets and other noncurrent tax assets9,542 8,662 Other noncurrent assets9,845 9,817 Total assets$208,028$213,396 Liabilities and Equity Sh

49、ort-term borrowings,including current portion of long-term debt:2025$3,749;2024$3,747$4,470$6,946 Trade accounts payable5,240 5,633 Dividends payable 2,437 Income taxes payable3,105 2,910 Accrued compensation and related items2,607 3,838 Deferred revenues1,012 1,511 Other current liabilities20,016 1

50、9,720 Total current liabilities36,452 42,995 Long-term debt57,639 57,405 Pension and postretirement benefit obligations2,021 2,115 Noncurrent deferred tax liabilities2,258 2,122 Other taxes payable5,724 6,112 Other noncurrent liabilities13,297 14,150 Total liabilities117,391 124,899 Commitments and

51、ContingenciesCommon stock481 480 Additional paid-in capital93,856 93,603 Treasury stock(115,008)(114,763)Retained earnings119,590 116,725 Accumulated other comprehensive loss(8,581)(7,842)Total Pfizer Inc.shareholders equity90,338 88,203 Equity attributable to noncontrolling interests299 294 Total e

52、quity90,637 88,497 Total liabilities and equity$208,028$213,396 See Accompanying Notes.7PFIZER INC.AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF EQUITY(UNAUDITED)PFIZER INC.SHAREHOLDERSCommon StockTreasury Stock(MILLIONS,EXCEPT PER SHARE DATA)SharesPar ValueAddlPaid-InCapitalSharesCos

53、tRetainedEarningsAccum.OtherComp.LossShare-holders EquityNon-controllinginterestsTotal EquityBalance,January 1,20259,593$480$93,603(3,926)$(114,763)$116,725$(7,842)$88,203$294$88,497 Net income2,967 2,967 6 2,973 Other comprehensive income/(loss),net of tax(738)(738)(3)(741)Cash dividends declared,p

54、er share:$Common stock Share-based payment transactions27 1 252(9)(245)(103)(94)(94)Other 1 1 2 2 Balance,March 30,20259,620$481$93,856(3,935)$(115,008)$119,590$(8,581)$90,338$299$90,637 PFIZER INC.SHAREHOLDERSCommon StockTreasury Stock(MILLIONS,EXCEPT PER SHARE DATA)SharesPar ValueAddlPaid-InCapita

55、lSharesCostRetainedEarningsAccum.OtherComp.LossShare-holders EquityNon-controllinginterestsTotal EquityBalance,January 1,20249,562$478$92,631(3,916)$(114,487)$118,353$(7,961)$89,014$274$89,288 Net income3,115 3,115 8 3,123 Other comprehensive income/(loss),net of tax203 203(5)198 Cash dividends decl

56、ared,per share:$Common stock Share-based payment transactions30 1 366(10)(268)(151)(51)(51)Other Balance,March 31,20249,592$480$92,997(3,925)$(114,755)$121,318$(7,758)$92,282$276$92,558 See Accompanying Notes.8PFIZER INC.AND SUBSIDIARY COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDIT

57、ED)Three Months Ended(MILLIONS)March 30,2025March 31,2024Operating Activities Net income before allocation to noncontrolling interests$2,973$3,123 Discontinued operationsnet of tax(5)Net income from continuing operations before allocation to noncontrolling interests2,973 3,128 Adjustments to reconci

58、le net income from continuing operations before allocation to noncontrolling interests to net cash provided by/(usedin)operating activities:Depreciation and amortization1,618 1,736 Asset write-offs and impairments344 136 Deferred taxes(663)(441)Share-based compensation expense170 220 Benefit plan co

59、ntributions in excess of expense/income(229)(201)Other adjustments,net40(151)Other changes in assets and liabilities,net of acquisitions and divestitures(1,919)(3,336)Net cash provided by/(used in)operating activities2,335 1,090 Investing Activities Purchases of property,plant and equipment(564)(704

60、)Purchases of short-term investments(2,823)(797)Proceeds from redemptions/sales of short-term investments3,955 658 Net(purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less(3,852)(1,187)Purchases of long-term investments(134)(35)Proc

61、eeds from redemptions/sales of long-term investments82 305 Proceeds from sales of investment in Haleon6,311 3,491 Other investing activities,net300 Net cash provided by/(used in)investing activities3,274 1,732 Financing Activities Proceeds from short-term borrowings 1,444 Payments on short-term borr

62、owings(2,048)(328)Net(payments on)/proceeds from short-term borrowings with original maturities of three months or less(386)(2,039)Payments on long-term debt(1,250)Cash dividends paid(2,437)(2,372)Other financing activities,net(356)(386)Net cash provided by/(used in)financing activities(5,227)(4,931

63、)Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents(7)(28)Net increase/(decrease)in cash and cash equivalents and restricted cash and cash equivalents375(2,137)Cash and cash equivalents and restricted cash and cash equivalents,at beginning of period

64、1,107 2,917 Cash and cash equivalents and restricted cash and cash equivalents,at end of period$1,481$780 Supplemental Cash Flow InformationCash paid during the period for:Income taxes$152$184 Interest paid353 415 Interest rate hedges74 33 See Note 7A.See Accompanying Notes.(a)(a)9PFIZER INC.AND SUB

65、SIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Note 1.Basis of Presentation and Significant Accounting PoliciesA.Basis of PresentationWe prepared these condensed consolidated financial statements in conformity with U.S.GAAP,consistent in all material respects with th

66、ose applied in our2024 Form 10-K.As permitted under the SEC requirements for interim reporting,certain footnotes or other financial information have been condensed oromitted.These financial statements include all normal and recurring adjustments that are considered necessary for the fair statement o

67、f results for the interim periodspresented.The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notesincluded in our 2024 Form 10-K.Revenues,expenses,assets and liabilities can vary during each quarter of the year.Theref

68、ore,the results and trends in theseinterim financial statements may not be representative of those for the full year.Pfizers fiscal quarter-end for subsidiaries operating outside the U.S.is as of and for the three months ended February 23,2025 and February 25,2024,and forU.S.subsidiaries is as of an

69、d for the three months ended March 30,2025 and March 31,2024.We manage our commercial operations through three operating segments,each led by a single manager:Biopharma,PC1 and Pfizer Ignite.Biopharma is theonly reportable segment.See Note 13A.B.Revenues and Trade Accounts ReceivableDeductions from

70、RevenuesOur accruals for Medicare,Medicaid and related state program and performance-based contract rebates,chargebacks,salesallowances and sales returns and cash discounts are as follows:(MILLIONS)March 30,2025December 31,2024Reserve against Trade accounts receivable,net of allowance for doubtful a

71、ccounts$1,462$1,627 Other current liabilities:Accrued rebates8,119 7,195 Other accruals904 972 Other noncurrent liabilities461 1,029 Total accrued rebates and other sales-related accruals$10,945$10,822 Trade Accounts ReceivableTrade accounts receivable are stated at their net realizable value.The al

72、lowance for credit losses reflects our best estimate ofexpected credit losses of the receivables portfolio determined on the basis of historical experience,current information,and forecasts of future economicconditions.In developing the estimate for expected credit losses,trade accounts receivables

73、are segmented into pools of assets depending on market(U.S.versus international),delinquency status,and customer type(high risk versus low risk and government versus non-government),and fixed reserve percentagesare established for each pool of trade accounts receivables.In determining the reserve pe

74、rcentages for each pool of trade accounts receivables,we considered our historical experience with certain customers andcustomer types,regulatory and legal environments,country and political risk,and other relevant current and future forecasted macroeconomic factors.Whenmanagement becomes aware of c

75、ertain customer-specific factors that impact credit risk,specific allowances for these known troubled accounts are recorded.During the three months ended March 30,2025 and March 31,2024,additions to the allowance for credit losses,write-offs and recoveries of customerreceivables were not material to

76、 our condensed consolidated financial statements.For additional information on our trade accounts receivable,see Note 1G inour 2024 Form 10-K.Note 2.Research and Development ArrangementResearch and Development Funding Arrangement with BlackstoneIn March 2025,we entered into an arrangement with Black

77、stone under which we willreceive up to a total of$326 million in 2025 through 2028 to co-fund our quarterly development costs for specified treatments.As there is substantive transferof risk to the financial partner,the development funding is recognized by us as an obligation to perform contractual

78、services.We are recognizing the funding asa reduction of Research and development expenses using an attribution model over the period of the related expenses.If successful,upon regulatory approval inthe U.S.or certain major markets in the EU for the indications based on the applicable clinical trial

79、s,Blackstone will be eligible to receive approval-based fixedmilestone payments of up to$277 million contingent upon the successful results of the clinical trials and payable to Blackstone over a period of one to threeyears.Following potential regulatory approval,Blackstone will be eligible to recei

80、ve a combination of fixed milestone payments of up to$897 million in totalbased on achievement of certain levels of cumulative applicable net sales and payable to Blackstone over a period of five10PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)to se

81、ven years.The net present value of the approval-based milestone payments and sales-based milestone payments will be recorded as intangible assets andamortized to Amortization of intangible assets over the shorter of the term of the agreement or estimated commercial life of the product.Accretion of i

82、ntereston the liabilities to pay Blackstone will be recognized as interest expense in Other(income)/deductionsnet.Note 3.Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity InitiativesA.Realigning Our Cost Base Program In the fourth quarter of 2023,we a

83、nnounced that we launched a multi-year,enterprise-wide cost realignment program that aims to realign our costs with ourlonger-term revenue expectations.We expect costs associated with this initial part of the program to continue primarily through 2025 and to totalapproximately$3.1 billion,primarily

84、representing cash expenditures for severance,exit and implementation costs as well as non-cash asset write downs ofwhich$2.4 billion is associated with our Biopharma segment.In the second quarter of 2025,we identified additional productivity opportunities to further reduce costs primarily in SI&A,dr

85、iven in large part by enhanceddigital enablement,including automation and AI,and simplification of business processes.We expect costs associated with the additional productivityopportunities to be incurred through 2027 and to total approximately$1.6 billion,primarily representing cash expenditures f

86、or severance,digital enablementand implementation,of which$700 million is associated with our Biopharma segment.In connection with our efforts to simplify the structure and sharpen the focus of our R&D organization,in the first quarter of 2025 we expanded this programafter having identified addition

87、al opportunities to drive improvements in productivity and operational efficiencies through enhanced digital enablement,including automation and AI,and simplification of business processes.We expect costs to implement these initiatives to be incurred through 2026 and tototal approximately$600 millio

88、n,primarily representing cash expenditures for severance,digital enablement and implementation,all of which is associatedwith our Biopharma segment.The majority of these costs were recorded in the first quarter of 2025,with cash outlays expected primarily in 2025 and 2026.We now expect costs associa

89、ted with all three components of this program to total approximately$5.3 billion of which$3.7 billion is associated with theBiopharma segment.From the start of this program through March 30,2025,we incurred total costs under this program of$3.2 billion,of which$2.7 billion is associated with ourBiop

90、harma segment(including$2.5 billion of restructuring charges).B.Manufacturing Optimization ProgramIn the second quarter of 2024,we announced that we launched a multi-year,multi-phased program to reduce our costs of goods sold,which is expected toinclude operational efficiencies,network structure cha

91、nges,and product portfolio enhancements.The first phase of this program is focused on operationalefficiencies and we expect costs for this first phase to total approximately$1.6 billion,primarily representing cash expenditures for severance andimplementation costs,all of which is associated with our

92、 Biopharma segment.From the start of this program through March 30,2025,we incurred costs underthis program of$1.2 billion,substantially all of which is restructuring costs for our Biopharma segment.These costs were recorded primarily in 2024,withcash outlays expected primarily in 2025 and 2026.11PF

93、IZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)C.Key ActivitiesThe following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives:Three Months Ended(MILLIONS)March 30,2025March 31,2024Restructuring charges/(credits

94、):Employee terminations$384$(29)Asset impairments173 25 Exit costs64 14 Restructuring charges/(credits)621 10 Transaction costs 5 Integration costs and other57 87 Restructuring charges and certain acquisition-related costs678 102 Net periodic benefit costs/(credits)recorded in Other(income)/deductio

95、nsnet(59)3 Additional depreciationasset restructuring recorded in Cost of sales in our condensed consolidated statements ofoperations4 4 Implementation costs recorded in our condensed consolidated statements of operations as follows:Cost of sales20 16 Selling,informational and administrative expense

96、s6 29 Research and development expenses24 13 Total implementation costs50 58 Total costs associated with acquisitions and cost-reduction/productivity initiatives$673$168 In 2025,primarily represents cost-reduction initiatives.In 2024,primarily represented Seagen acquisition-related costs,largely off

97、set by credits for cost-reduction initiatives.Amounts associatedwith our Biopharma segment:charges of$617 million for the three months ended March 30,2025(including charges of$587 million for our Realigning our Cost Base Program and credits of$4 million for our Manufacturing Optimization Program)and

98、 credits of$37 million for the three months ended March 31,2024 for our Realigning our Cost Base Program.Represents external costs for banking,legal,accounting and other similar services.Represents external,incremental costs directly related to integrating acquired businesses,such as expenditures fo

99、r consulting and the integration of systems and processes,and certain otherqualifying costs.Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.Represents incremental costs directly related to implementing our non-acquisition-related cost-reduct

100、ion/productivity initiatives.The following summarizes the components and changes in restructuring accruals:(MILLIONS)EmployeeTerminationCostsAssetImpairmentChargesExit CostsAccrualBalance,December 31,2024$2,046$74$2,120 Provision384 173 64 621 Utilization and other(249)(173)80(342)Balance,March 30,2

101、025$2,181$218$2,399 Included in Other current liabilities($1.7 billion)and Other noncurrent liabilities($437 million).Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements.Included in Other current liabilities($1

102、.8 billion)and Other noncurrent liabilities($562 million).(a)(b)(c)(d)(e)(a)(b)(c)(d)(e)(a)(b)(c)(a)(b)(c)12PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Note 4.Other(Income)/DeductionsNetComponents of Other(income)/deductionsnet include:Three Mont

103、hs Ended(MILLIONS)March 30,2025March 31,2024Interest income$(143)$(129)Interest expense654 790 Net interest expense511 661 Net(gains)/losses recognized during the period on equity securities370(25)Net periodic benefit costs/(credits)other than service costs(158)(103)Certain legal matters,net142 208

104、Certain asset impairments224 109 Haleon equity method(income)/loss 88 Other,net(135)(258)Other(income)/deductionsnet$953$680 The decrease in net interest expense in the first quarter of 2025,compared to the first quarter of 2024,reflects(i)lower interest expense mainly due to lower long-term debt an

105、d commercial paperbalances and(ii)an increase in interest income primarily due to higher cash balances from sales of our remaining investment in Haleon.The net losses in the first quarter of 2025 include,among other things,a net loss of$144 million related to our investment in Haleon,composed of unr

106、ealized losses of$1.0 billion,partially offsetby$900 million in realized gains on the sales of our remaining investment.The amount for the first quarter of 2025 primarily includes certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer.The amount

107、 for the firstquarter of 2024 primarily included certain product liability expenses related to products discontinued and/or divested by Pfizer.The amount for the first quarter of 2025 primarily represents an intangible asset impairment charge associated with our Biopharma segment of$210 million for

108、KRAS G12D,a Phase 2 indefinite-lived out-licensed asset that was discontinued by our out-licensing partner.The amount for the first quarter of 2024 represented intangible asset impairment charges associated with our Biopharmasegment for developed technology rights due to updated commercial forecasts

109、 mainly reflecting competitive pressures.The first quarter of 2024 primarily included,among other things,a$150 million realized gain on the partial sale of our investment in Haleon.Additional information about the intangible assets that were impaired during 2025 follows:Three Months EndedFair ValueM

110、arch 30,2025(MILLIONS)AmountLevel 1Level 2Level 3ImpairmentIndefinite-lived licensing agreement$210 Developed technology rights 14 Total$224 The fair value amount is presented as of the date of impairment,as this asset is not measured at fair value on a recurring basis.See also Note 1E in our 2024 F

111、orm 10-K.Reflects intangible assets written down to fair value in 2025.Fair value was determined using the income approach,specifically the multi-period excess earnings method,also known as thediscounted cash flow method.We started with a forecast of all the expected net cash flows for the asset and

112、 then applied an asset-specific discount rate to arrive at a net present value amount.Someof the more significant estimates and assumptions inherent in this approach include:the amount and timing of the projected net cash flows,which includes the expected impact of competitive,legaland/or regulatory

113、 forces on the product;and assumptions about the probability of technical and regulatory success(PTRS)of ongoing clinical trials,the discount rate,which seeks to reflect thevarious risks inherent in the projected cash flows;and the tax rate,which seeks to incorporate the geographic diversity of the

114、projected cash flows.Note 5.Tax MattersA.Taxes on Income/(Loss)from Continuing OperationsOur effective tax rate for continuing operations was(6.8)%for the first quarter of 2025,compared to 8.6%for the first quarter of 2024.The negative and lowereffective tax rate for the first quarter of 2025,compar

115、ed to the first quarter of 2024,was primarily due to favorable global income tax resolutions in multiple taxjurisdictions spanning multiple tax years,as well as a favorable change in the jurisdictional mix of earnings.We elected,with the filing of our 2018 U.S.Federal Consolidated Income Tax Return,

116、to pay our initial estimated$15 billion repatriation tax liability onaccumulated post-1986 foreign earnings(Transition Tax liability)over eight years through 2026.The seventh annual installment was paid by its April 15,2025due date and is reported in current Income taxes payable as of March 30,2025.

117、The remaining liability is reported in noncurrent Other taxes payable.Ourobligations may vary due to the availability of attributes such as foreign tax and other credit carryforwards or carrybacks.See Note 5A in our 2024 Form 10-K for information on our cash paid for income taxes,net of refunds.(a)(

118、b)(c)(d)(e)(a)(b)(c)(d)(e)(a)(b)(b)(a)(b)13PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)B.Tax ContingenciesWe are subject to income tax in many jurisdictions,and a certain degree of estimation is required in recording the assets and liabilities re

119、lated to income taxes.All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction.These tax audits can involve complex issues,interpretationsand judgments and the resolution of matters may span multiple years,particularly if subject to negotiation or litiga

120、tion.The U.S.is one of our major tax jurisdictions,and we are regularly audited by the IRS.Tax years 2019-2022 are under audit.The IRS audit of Pfizers federalincome tax returns for years 2016-2018 is effectively settled but the statute of limitation remains open for these tax years.Tax years 2023-2

121、025 are open but notunder audit.All other tax years are closed.In addition to the open audit years in the U.S.,we have open audit years and certain related audits,appeals andinvestigations in certain major international tax jurisdictions dating back to 2014.See Note 5D in our 2024 Form 10-K.C.Tax Pr

122、ovision/(Benefit)on Other Comprehensive Income/(Loss)Components of Tax provision/(benefit)on other comprehensive income/(loss)include:Three Months Ended(MILLIONS)March 30,2025March 31,2024Foreign currency translation adjustments,net$(102)$25 Unrealized holding gains/(losses)on derivative financial i

123、nstruments,net(34)45 Reclassification adjustments for(gains)/losses included in net income(55)(4)(89)41 Unrealized holding gains/(losses)on available-for-sale securities,net(4)(6)Reclassification adjustments for(gains)/losses included in net income19(2)15(8)Reclassification adjustments related to am

124、ortization of prior service costs and other,net(7)(5)Reclassification adjustments related to curtailments of prior service costs and other,net(9)(16)(5)Tax provision/(benefit)on other comprehensive income/(loss)$(191)$53 Taxes are not provided for foreign currency translation adjustments relating to

125、 investments in international subsidiaries that are expected to be held indefinitely.Note 6.Accumulated Other Comprehensive Loss,Excluding Noncontrolling InterestsThe following summarizes the changes,net of tax,in Accumulated other comprehensive loss:Net Unrealized Gains/(Losses)Benefit Plans(MILLIO

126、NS)Foreign CurrencyTranslationAdjustmentsDerivativeFinancialInstrumentsAvailable-For-Sale SecuritiesPrior Service(Costs)/Credits andOtherAccumulated OtherComprehensiveIncome/(Loss)Balance,January 1,2025$(7,984)$57$(106)$191$(7,842)Other comprehensive income/(loss)(453)(347)109(48)(738)Balance,March

127、30,2025$(8,436)$(290)$3$143$(8,581)Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests.Foreign currency translation adjustments include net gains/(losses)related to the impact of our net investment hedging program.(a)(a)(a)(b)(a)(b)14PFIZER INC.AN

128、D SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Note 7.Financial InstrumentsA.Fair Value MeasurementsFinancial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy,using a Market Approach:March 30,2025December 31,2024(MILLIO

129、NS)TotalLevel 1Level 2TotalLevel 1Level 2Financial assets:Short-term investmentsEquity securities with readily determinable fair value$1,255$1,255$7,848$6,456$1,392 Available-for-sale debt securities:Government and agencynon-U.S.8,995 8,995 6,855 6,855 Government and agencyU.S.3,494 3,494 2,853 2,85

130、3 Corporate and other1,464 1,464 1,173 1,173 13,952 13,952 10,881 10,881 Total short-term investments15,207 15,207 18,729 6,456 12,273 Other current assetsDerivative assets:Interest rate contracts2 2 Foreign exchange contracts548 548 1,056 1,056 Total other current assets550 550 1,056 1,056 Long-ter

131、m investmentsEquity securities with readily determinable fair values1,031 1,031 1,246 1,246 Total long-term investments1,031 1,031 1,246 1,246 Other noncurrent assetsDerivative assets:Interest rate contracts36 36 13 13 Foreign exchange contracts256 256 447 447 Total derivative assets292 292 460 460

132、Insurance contracts849 849 875 875 Total other noncurrent assets1,141 1,141 1,335 1,335 Total assets$17,929$1,031$16,899$22,366$7,701$14,665 Financial liabilities:Other current liabilitiesDerivative liabilities:Interest rate contracts$10$10$28$28 Foreign exchange contracts200 200 217 217 Total other

133、 current liabilities210 210 245 245 Other noncurrent liabilitiesDerivative liabilities:Interest rate contracts278 278 397 397 Foreign exchange contracts826 826 723 723 Total other noncurrent liabilities1,104 1,104 1,121 1,121 Total liabilities$1,314$1,314$1,366$1,366 Includes money market funds prim

134、arily invested in U.S.Treasury and government debt.As of December 31,2024,short-term equity securities included our investment in Haleon of$6.5 billion.Inthe first quarter of 2025,we sold the remaining portion of our investment in Haleon for$6.3 billion.Long-term equity securities of$132 million as

135、of March 30,2025 and$133 million as of December 31,2024 were held in restricted trusts for U.S.non-qualified employee benefit plans.Includes life insurance policies held in restricted trusts for U.S.non-qualified employee benefit plans.The underlying invested assets in these contracts are marketable

136、 securities,which are carriedat fair value,with changes in fair value recognized in Other(income)/deductionsnet(see Note 4).Financial Assets and Liabilities Not Measured at Fair Value on a Recurring BasisThe carrying value of Long-term debt,excluding the current portion,was$58 billion as of March 30

137、,2025 and$57 billion as of December 31,2024.The estimated fair value of such debt,using a market approach and Level 2 inputs,was$55 billion as of March 30,2025 and$54 billion as of December 31,2024.The differences between the estimated fair values and carrying values of held-to-maturity debt securit

138、ies,private equity securities,long-term receivables andshort-term borrowings not measured at fair value on a recurring basis were not significant as of March 30,2025 and December 31,2024.The fair valuemeasurements of our held-to-maturity debt securities and short-term borrowings are based on Level 2

139、 inputs.The fair value measurements of our long-termreceivables and private equity securities are based on Level 3 inputs.(a)(b)(c)(a)(b)(c)15PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)B.InvestmentsTotal Short-Term,Long-Term and Equity-Method In

140、vestmentsThe following summarizes our investments by classification type:(MILLIONS)March 30,2025December 31,2024Short-term investmentsEquity securities with readily determinable fair values$1,255$7,848 Available-for-sale debt securities13,952 10,881 Held-to-maturity debt securities679 705 Total Shor

141、t-term investments$15,887$19,434 Long-term investmentsEquity securities with readily determinable fair values$1,031$1,246 Held-to-maturity debt securities47 45 Private equity securities at cost712 719 Total Long-term investments$1,789$2,010 Equity-method investments224 217 Total long-term investment

142、s and equity-method investments$2,014$2,228 Held-to-maturity cash equivalents$262$184 Represent investments in the life sciences sector.Debt SecuritiesOur investment portfolio consists of investment-grade debt securities issued across diverse governments,corporate and financial institutions:March 30

143、,2025December 31,2024Gross Unrealized Maturities(in Years)Gross Unrealized(MILLIONS)AmortizedCostGainsLossesFair ValueWithin 1Over 1to 5Over 5AmortizedCostGainsLossesFair ValueAvailable-for-sale debt securitiesGovernment and agencynon-U.S.$8,986$39$(31)$8,995$8,995$6,970$8$(123)$6,855 Government and

144、 agencyU.S.3,494 3,494 3,494 2,853 2,853 Corporate and other1,469 (5)1,464 1,464 1,179 (6)1,173 Held-to-maturity debt securitiesTime deposits and other739 739 696 22 20 697 697 Government and agencynon-U.S.249 249 245 4 1 237 237 Total debt securities$14,937$39$(36)$14,941$14,894$26$21$11,935$8$(129

145、)$11,814 Any expected credit losses to these portfolios would be immaterial to our financial statements.Equity SecuritiesThe following presents the calculation of the portion of unrealized(gains)/losses that relates to equity securities,excluding equity-method investments,held atthe reporting date:T

146、hree Months Ended(MILLIONS)March 30,2025March 31,2024Net(gains)/losses recognized during the period on equity securities$370$(25)Less:Net(gains)/losses recognized during the period on equity securities sold during the period(924)(214)Net unrealized(gains)/losses during the reporting period on equity

147、 securities still held at the reporting date$1,295$188 Reported in Other(income)/deductionsnet.See Note 4.Included in net unrealized(gains)/losses are observable price changes on equity securities without readily determinable fair values.As of March 30,2025,there were cumulative impairments anddownw

148、ard adjustments of$400 million and upward adjustments of$223 million.Impairments,downward and upward adjustments were not material to our operations in the first quarters of 2025and 2024.(a)(a)(a)(a)(b)(a)(b)16PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UN

149、AUDITED)C.Short-Term BorrowingsShort-term borrowings include:(MILLIONS)March 30,2025December 31,2024Commercial paper,principal amount$155$2,453 Current portion of long-term debt,principal amount3,750 3,750 Other short-term borrowings,principal amount567 755 Total short-term borrowings,principal amou

150、nt4,471 6,957 Net unamortized discounts,premiums and debt issuance costs(1)(12)Total Short-term borrowings,including current portion of long-term debt,carried at historical proceeds,asadjusted$4,470$6,946 Primarily includes cash collateral.See Note 7F.D.Long-Term DebtThe following summarizes the agg

151、regate principal amount of our senior unsecured long-term debt,and adjustments to report our aggregate long-term debt:(MILLIONS)March 30,2025December 31,2024Total long-term debt,principal amount$57,257$57,147 Net fair value adjustments related to hedging and purchase accounting820 701 Net unamortize

152、d discounts,premiums and debt issuance costs(437)(444)Total long-term debt,carried at historical proceeds,as adjusted$57,639$57,405 E.Derivative Financial Instruments and Hedging ActivitiesForeign Exchange RiskA significant portion of our revenues,earnings and net investments in foreign affiliates i

153、s exposed to changes in foreign exchangerates.Where foreign exchange risk is not offset by other exposures,we manage our foreign exchange risk principally through the use of derivative financialinstruments and foreign currency debt.These financial instruments serve to mitigate the impact on net inco

154、me as a result of remeasurement into anothercurrency,or against the impact of translation into U.S.dollars of certain foreign exchange-denominated transactions.The derivative financial instruments primarily hedge or offset exposures in the euro,U.K.pound,Japanese yen,Chinese renminbi,Canadian dollar

155、 andSwedish krona,and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to two years.We may also seekto protect against possible declines in the net investments of our foreign business entities.Interest Rate RiskOur interest-bearing investments a

156、nd borrowings are subject to interest rate risk.Depending on market conditions,we may change theprofile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps,either to hedge or offset the exposure tochanges in the fair value of hedged items

157、 with fixed interest rates,or to convert variable rate debt or investments to fixed rates.The derivative financialinstruments primarily hedge U.S.dollar fixed-rate debt.The following summarizes the fair value of the derivative financial instruments and notional amounts:March 30,2025December 31,2024F

158、air ValueFair Value(MILLIONS)NotionalAssetLiabilityNotionalAssetLiabilityDerivatives designated as hedging instruments:Foreign exchange contracts$24,291$680$869$23,991$1,250$719 Interest rate contracts6,750 37 287 6,750 13 425 718 1,156 1,263 1,144 Derivatives not designated as hedging instruments:F

159、oreign exchange contracts$18,889 124 157$26,335 253 221 Total$842$1,314$1,516$1,366 The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was$4.9 billion as of March 30,2025 and$5.0 billion as of December 31,2024.(a)(a)(a)(a)17PFIZER INC.AN

160、D SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)The following summarizes information about the gains/(losses)incurred to hedge or offset operational foreign exchange or interest rate risk exposures:Gains/(Losses)Recognized in OIDGains/(Losses)Recognized in OCIGai

161、ns/(Losses)Reclassified fromOCI into OID and COSThree Months Ended(MILLIONS)March 30,2025March 31,2024March 30,2025March 31,2024March 30,2025March 31,2024Derivative Financial Instruments in Cash Flow HedgeRelationships:Interest rate contracts$2$Foreign exchange contracts (138)210 295 4 Amount exclud

162、ed from effectiveness testing andamortized into earnings 15 7 16 7 Derivative Financial Instruments in Fair Value HedgeRelationships:Interest rate contracts142(188)Hedged item(142)188 Derivative Financial Instruments in Net Investment HedgeRelationships:Foreign exchange contracts (437)235 Amount exc

163、luded from effectiveness testing andamortized into earnings 75 21 41 37 Non-Derivative Financial Instruments in Net InvestmentHedge Relationships:Foreign currency long-term debt (31)18 Derivative Financial Instruments Not Designated as Hedges:Foreign exchange contracts(31)55$(31)$55$(517)$490$354$49

164、 OID=Other(income)/deductionsnet,included in Other(income)/deductionsnet in the condensed consolidated statements of operations.COS=Cost of Sales,included in Cost of sales in thecondensed consolidated statements of operations.OCI=Other comprehensive income/(loss),included in the condensed consolidat

165、ed statements of comprehensive income/(loss).The amounts reclassified from OCI into COS were a net gain of$62 million in the first quarter of 2025 and a net gain of$31 million in the first quarter of 2024.The remaining amounts werereclassified from OCI into OID.Based on quarter-end foreign exchange

166、rates that are subject to change,we expect to reclassify a pre-tax gain of$94 million within the next 12 months into income.The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 18 years and relates to foreign curr

167、ency debt.The amounts reclassified from OCI were reclassified into OID.Long-term debt includes foreign currency borrowings,which are used in net investment hedges;the related carrying values as of March 30,2025 and December 31,2024 were$808 million and$777 million,respectively.The following summariz

168、es cumulative basis adjustments to our long-term debt in fair value hedges:March 30,2025December 31,2024Cumulative Amount of Fair ValueHedging AdjustmentIncrease/(Decrease)toCarrying AmountCumulative Amount of Fair ValueHedging AdjustmentIncrease/(Decrease)toCarrying Amount(MILLIONS)Carrying Amount

169、ofHedgedAssets/LiabilitiesActive HedgingRelationshipsDiscontinuedHedgingRelationshipsCarrying Amount ofHedgedAssets/LiabilitiesActive HedgingRelationshipsDiscontinuedHedgingRelationshipsLong-term debt$7,142$(242)$872$7,154$(384)$891 Carrying amounts exclude the cumulative amount of fair value hedgin

170、g adjustments.F.Credit RiskA significant portion of our trade accounts receivable balances are due from wholesalers and governments.For additional information on our trade accountsreceivables with significant customers,see Note 13C below and Note 17C in our 2024 Form 10-K.As of March 30,2025,the lar

171、gest investment exposures in our portfolio consisted primarily of U.S.government money market funds,as well as sovereign debtinstruments issued by the U.S.,Germany,the U.K.and Canada.(a)(a)(a)(b)(c)(c)(d)(a)(b)(c)(d)(a)(a)(a)18PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANC

172、IAL STATEMENTS(UNAUDITED)With respect to our derivative financial instrument agreements with financial institutions,we do not expect to incur a significant loss from failure of anycounterparty.Derivative financial instruments are executed under International Swaps and Derivatives Association master

173、agreements with credit-supportannexes that contain zero threshold provisions requiring collateral to be exchanged daily depending on levels of exposure.As a result,there are no significantconcentrations of credit risk with any individual financial institution.As of March 30,2025,the aggregate fair v

174、alue of these derivative financial instrumentsthat are in a net payable position was$646 million,for which we have posted collateral of$640 million with a corresponding amount reported in Short-terminvestments.As of March 30,2025,the aggregate fair value of our derivative financial instruments that

175、are in a net receivable position was$487 million,forwhich we have received collateral of$564 million with a corresponding amount reported in Short-term borrowings,including current portion of long-termdebt.Note 8.Other Financial InformationA.InventoriesThe following summarizes the components of Inve

176、ntories:(MILLIONS)March 30,2025December 31,2024Finished goods$4,162$3,775 Work-in-process5,553 6,101 Raw materials and supplies1,137 976 Inventories$10,852$10,851 Noncurrent inventories not included above$2,793$2,663 Included in Other noncurrent assets.Based on our current estimates and assumptions,

177、there are no recoverability issues for these amounts.B.Other Current LiabilitiesOther current liabilities include,among other things,amounts payable to BioNTech for the gross profit split for Comirnaty,which totaled$1.1 billion as ofMarch 30,2025 and$1.3 billion as of December 31,2024.C.Supplier Fin

178、ance Program ObligationWe maintain voluntary supply chain finance agreements with several participating financial institutions.Under these agreements,participating suppliers mayvoluntarily elect to sell their accounts receivable with Pfizer to these financial institutions.As of March 30,2025 and Dec

179、ember 31,2024,respectively,$546 million and$688 million of our trade payables to suppliers who participate in these financing arrangements were outstanding.Note 9.Identifiable Intangible Assets,Net and GoodwillA.Identifiable Intangible AssetsThe following summarizes the components of Identifiable in

180、tangible assets:March 30,2025December 31,2024(MILLIONS)GrossCarryingAmountAccumulatedAmortizationIdentifiableIntangibleAssets,NetGrossCarryingAmountAccumulatedAmortizationIdentifiableIntangibleAssets,NetFinite-lived intangible assetsDeveloped technology rights$99,404$(66,224)$33,180$99,397$(65,044)$

181、34,353 Brands1,274(1,001)274 1,277(992)285 Licensing agreements and other2,722(1,554)1,169 2,724(1,513)1,210 103,401(68,778)34,622 103,397(67,549)35,848 Indefinite-lived intangible assetsIPR&D18,893 18,893 18,893 18,893 Licensing agreements and other460 460 670 670 19,353 19,353 19,563 19,563 Identi

182、fiable intangible assets$122,754$(68,778)$53,976$122,961$(67,549)$55,411 The decrease in the gross carrying amount reflects an impairment of$210 million(see Note 4).The decrease is primarily due to amortization expense of$1.2 billion.B.GoodwillAs a result of the organizational changes to the commerc

183、ial structure within the Biopharma operating segment effective in the first quarter of 2025(see Note13A),our goodwill was reallocated amongst impacted reporting units.We completed the re-(a)(a)(a)(b)(a)(b)19PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUD

184、ITED)allocation during the first quarter of 2025 and concluded that none of our goodwill was impaired.All goodwill continues to be assigned within the Biopharmareportable segment.Note 10.Pension and Postretirement Benefit PlansThe following summarizes the components of net periodic benefit cost/(cre

185、dit):Pension Plans U.S.InternationalPostretirementPlansThree Months Ended(MILLIONS)March 30,2025March 31,2024March 30,2025March 31,2024March 30,2025March 31,2024Service cost$24$20$4$4 Interest cost133 139 70 78 6 6 Expected return on plan assets(184)(208)(79)(80)(14)(13)Amortization of prior service

186、 cost/(credit)1 1(32)(29)Curtailments (9)(2)(50)Special termination benefits 5 Net periodic benefit cost/(credit)reported in income$(51)$(69)$8$22$(85)$(33)The components of net periodic benefit cost/(credit)other than the service cost component are primarily included in Other(income)/deductionsnet(

187、see Note4).For the three months ended March 30,2025,we contributed$66 million to our U.S.Pension Plans and$42 million to our International Pension Plans from ourgeneral assets,which include direct employer benefit payments.Note 11.Earnings Per Common Share Attributable to Pfizer Inc.Common Sharehold

188、ersThe following presents the detailed calculation of EPS:Three Months Ended(MILLIONS)March 30,2025March 31,2024EPS NumeratorIncome from continuing operations attributable to Pfizer Imon shareholders$2,967$3,120 Discontinued operationsnet of tax(5)Net income attributable to Pfizer Imon shareholders$

189、2,967$3,115 EPS Denominator Weighted-average number of common shares outstandingBasic5,675 5,657 Common-share equivalents36 40 Weighted-average number of common shares outstandingDiluted5,710 5,697 Anti-dilutive common stock equivalents17 26 These common stock equivalents were outstanding for the pe

190、riods presented,but were not included in the computation of diluted EPS for those periods because their inclusion would have had ananti-dilutive effect.Note 12.Contingencies and Certain CommitmentsWe and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course

191、 of business,including tax and legal contingencies,guarantees and indemnifications.The following outlines our legal contingencies,guarantees and indemnifications.For a discussion of our tax contingencies,see Note 5B.A.Legal ProceedingsOur legal contingencies include,but are not limited to,the follow

192、ing:Patent litigation,which typically involves challenges to the coverage and/or validity of patents on various products,processes or dosage forms.An adverseoutcome could result in loss of patent protection for a product,a significant loss of revenues from a product or impairment of the value of ass

193、ociated assets.We are the plaintiff in the majority of these actions.(a)(a)20PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Product liability and other product-related litigation related to current or former products,which can include personal injur

194、y,consumer fraud,off-labelpromotion,securities,antitrust and breach of contract claims,among others,and often involves highly complex issues relating to medical causation,labelwarnings and reliance on those warnings,scientific evidence and findings,actual,provable injury and other matters.Commercial

195、 and other asserted or unasserted matters,which can include acquisition-,licensing-,intellectual property-,collaboration-or co-promotion-related and product-pricing claims and environmental claims and proceedings,and can involve complexities that will vary from matter to matter.Government investigat

196、ions,which often are related to the extensive regulation of pharmaceutical companies by national,state and local government agenciesin the U.S.and in other jurisdictions.Certain of these contingencies could result in increased expenses and/or losses,including damages,royalty payments,fines and/or ci

197、vil penalties,which couldbe substantial,and/or criminal charges.We believe that our claims and defenses in matters in which we are a defendant are substantial,but litigation is inherently unpredictable and excessive verdictsdo occur.We do not believe that any of these matters will have a material ad

198、verse effect on our financial position.However,we could incur judgments,enterinto settlements or revise our expectations regarding the outcome of matters,which could have a material adverse effect on our results of operations and/or ourcash flows in the period in which the amounts are accrued or pai

199、d.We have accrued for losses that are both probable and reasonably estimable.Substantially all of our contingencies are subject to significant uncertainties and,therefore,determining the likelihood of a loss and/or the measurement of any loss can be complex.Consequently,we are unable to estimate the

200、 range ofreasonably possible loss in excess of amounts accrued.Our assessments,which result from a complex series of judgments about future events anduncertainties,are based on estimates and assumptions that have been deemed reasonable by management,but that may prove to be incomplete or inaccurate,

201、and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can relyheavily on estimates and assum

202、ptions.For proceedings under environmental laws to which a governmental authority is a party,we have adopted a disclosurethreshold of$1 million in potential or actual governmental monetary sanctions.The principal pending matters to which we are a party are discussed below.In determining whether a pe

203、nding matter is a principal matter,we consider bothquantitative and qualitative factors to assess materiality,such as,among others,the amount of damages and the nature of other relief sought,if specified;ourview of the merits of the claims and of the strength of our defenses;whether the action purpo

204、rts to be,or is,a class action and,if not certified,our view of thelikelihood that a class will be certified by the court;the jurisdiction in which the proceeding is pending;whether related actions have been transferred tomultidistrict litigation;any experience that we or,to our knowledge,other comp

205、anies have had in similar proceedings;whether disclosure of the action wouldbe important to a reader of our financial statements,including whether disclosure might change a readers judgment about our financial statements in light ofall of the information that is available to the reader;the potential

206、 impact of the proceeding on our reputation;and the extent of public interest in the matter.Inaddition,with respect to patent matters in which we are the plaintiff,we consider,among other things,the financial significance of the product protected by thepatent(s)at issue.Some of the matters discussed

207、 below include those which management believes that the likelihood of possible loss in excess of amountsaccrued is remote.A1.Legal ProceedingsPatent LitigationWe are involved in suits relating to our patents(or those of our collaboration/licensing partners to which we have licenses or co-promotion r

208、ights),includingbut not limited to,those discussed below.We face claims by generic drug manufacturers that patents covering our products(or those of ourcollaboration/licensing partners to which we have licenses or co-promotion rights and to which we may or may not be a party),processes or dosage for

209、ms areinvalid and/or do not cover the product of the generic drug manufacturer.Also,counterclaims,as well as various independent actions,have been filed allegingthat our assertions of,or attempts to enforce,patent rights with respect to certain products constitute unfair competition and/or violation

210、s of antitrust laws.Inaddition to the challenges to the U.S.patents that are discussed below,patent rights to certain of our products or those of our collaboration/licensing partnersare being challenged in various other jurisdictions.Some of our collaboration or licensing partners face challenges to

211、 the validity of their patent rights in non-U.S.jurisdictions.For example,in April 2022,the U.K.High Court issued a judgment finding invalid a BMS patent related to Eliquis due to expire in 2026.InMay 2023,the Court of Appeal dismissed BMSs appeal and in October 2023,the Supreme Court refused BMS pe

212、rmission to appeal.Additional challenges arepending in other jurisdictions.Also,in July 2022,CureVac AG(CureVac)brought a patent infringement action against BioNTech and certain of its subsidiariesin the German Regional Court alleging that Comirnaty infringes certain German utility model patents and

213、 certain expired and unexpired European patents.Additional challenges21PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)involving Comirnaty patents may be filed against us and/or BioNTech in other jurisdictions in the future.Adverse decisions in these

214、 matters could have amaterial adverse effect on our results of operations.We are also party to patent damages suits in various jurisdictions pursuant to which generic drugmanufacturers,payors,governments or other parties are seeking damages from us for allegedly causing delay of generic entry.We als

215、o are often involved in other proceedings,such as inter partes review,post-grant review,re-examination or opposition proceedings,before the U.S.Patent and Trademark Office,the European Patent Office,or other foreign counterparts,as well as court proceedings relating to our intellectual property or t

216、heintellectual property rights of others,including challenges to such rights initiated by us.Also,if one of our patents(or one of our collaboration/licensingpartners patents)is found to be invalid by such proceedings,generic or competitive products could be introduced into the market resulting in th

217、e erosion ofsales of our existing products.For example,several of the patents in our pneumococcal vaccine portfolio have been challenged in inter partes review and post-grant review proceedings in the U.S.Patent and Trademark Office,as well as outside the U.S.The invalidation of any of the patents i

218、n our pneumococcalportfolio could potentially allow additional competitor vaccines,if approved,to enter the marketplace earlier than anticipated.In the event that any of thepatents are found valid and infringed,a competitors vaccine,if approved,might be prohibited from entering the market or a compe

219、titor might be required topay us a royalty.We are also subject to patent litigation pursuant to which one or more third parties seek damages and/or injunctive relief to compensate for allegedinfringement of its patents by our commercial or other activities.If one of our marketed products(or a produc

220、t of our collaboration/licensing partners to whichwe have licenses or co-promotion rights)is found to infringe valid patent rights of a third party,such third party may be awarded significant damages or royaltypayments,or we may be prevented from further sales of that product.Such damages may be enh

221、anced as much as three-fold if we or one of our subsidiaries isfound to have willfully infringed valid patent rights of a third party.Actions In Which We Are The PlaintiffXeljanz(tofacitinib)Beginning in 2017,we brought patent-infringement actions against several generic manufacturers that filed sep

222、arate abbreviated new drug applications(ANDAs)with the FDA seeking approval to market their generic versions of tofacitinib tablets in one or both of 5 mg and 10 mg dosage strengths,and in bothimmediate and extended release forms.To date,we have settled actions with several manufacturers on terms no

223、t material to us.The remaining actions continuein the U.S.District Court for the District of Delaware as described below.In December 2024,we brought a patent infringement action against Alkem Laboratories Ltd.(Alkem)asserting the infringement and validity of ourcomposition of matter patent,covering

224、immediate release formulations of tofacitinib that was challenged by Alkem in its ANDA seeking approval to market ageneric version of tofacitinib 5 mg and 10 mg immediate release tablets.In February 2025,we settled the action against Alkem on terms not material to us.In April 2025,we brought a paten

225、t infringement action against Annora Pharma Private Limited(Annora)asserting the infringement and validity of ourcomposition of matter patent,covering immediate release formulations of tofacitinib that was challenged by Annora in its ANDA seeking approval to market ageneric version of tofacitinib 5

226、mg and 10 mg immediate release tablets.Mektovi(binimetinib)Beginning in August 2022,two generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions ofMektovi.The companies assert the invalidity and non-infringement of two method of use patents exp

227、iring in 2030,a method of use patent expiring in 2031,two method of use patents expiring in 2033,and a product by process patent expiring in 2033.Beginning in September 2022,we brought patent infringementactions against both of the generic filers in the U.S.District Court for the District of Delawar

228、e,asserting the validity and infringement of all six patents.InJanuary 2025,we settled with one of the generic companies on terms not material to us.In August 2022,we received notice from Teva Pharmaceuticals,Inc.(Teva)that it had filed an ANDA seeking approval to market a generic version of Mektovi

229、.Teva asserts the invalidity and non-infringement of two method of use patents expiring in 2033 and a product by process patent expiring in 2033.In June 2023,we brought a patent infringement action against Teva in the U.S.District Court for the District of Delaware,asserting the validity and infring

230、ement of the threepatents.Vyndaqel-Vyndamax(tafamidis/tafamidis meglumine)Beginning in June 2023,several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions oftafamidis capsules(61 mg)or tafamidis meglumine capsules(20 mg),challenging some

231、 or all of the patents listed in the FDAs Orange Book for Vyndamax(tafamidis)and Vyndaqel(tafamidis meglumine).Scripps Research Institute(Scripps)owns the composition of matter patent and the method of treatmentpatents covering the products,and Pfizer22PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CON

232、DENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)is the exclusive licensee.Pfizer separately owns the crystalline form patent.Beginning in August 2023,we and Scripps brought patent infringement actionsagainst the generic filers in the U.S.District Court for the District of Delaware,asserting the v

233、alidity and infringement of the patents in suit.Pfizer is the soleplaintiff in actions that assert only the infringement and validity of the crystalline form patent.Oxbryta(voxelotor)In January 2024,Zydus Pharmaceuticals(USA)Inc.,Zydus Lifesciences Limited,and Zydus Worldwide DMCC(collectively,Zydus

234、)and MSNPharmaceuticals Inc.and MSN Laboratories Private Ltd.(collectively,MSN)separately notified us that they had filed ANDAs with the FDA seeking approvalto market generic versions of voxelotor tablets,challenging some of the patents listed in the FDAs Orange Book for Oxbryta(voxelotor tablets in

235、 300 mg and500 mg strengths and/or for oral suspension)on non-infringement grounds.In March 2024,we filed patent infringement actions against both generic filers inthe U.S.District Court for the District of Delaware,asserting the validity and infringement of the challenged patents.Zydus and MSN have

236、 not challenged ourcomposition of matter patents or method of treatment patents for Oxbryta.Nurtec(rimegepant)In April 2024,Rubicon Research Private Limited,Teva Pharmaceuticals,Inc.,Changzhou Pharmaceutical Factory,Natco Pharma Limited and Natco Pharma,Inc.,MSN,Aurobindo Pharma Limited,Apitoria Pha

237、rma Private Limited and Aurobindo Pharma U.S.A.Inc.(collectively,Aurobindo)and Apotex Inc.andApotex Corp.(collectively,Apotex)notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of rimegepant orallydisintegrating tablets,claiming noninfringement and/or chal

238、lenging the validity of some or all of the patents listed in the FDAs Orange Book for Nurtec(rimegepant orally disintegrating tablets Eq 75 mg base).In May 2024,we filed patent infringement actions against all the generic filers in the U.S.DistrictCourt for the District of Delaware.Xtandi(enzalutami

239、de)Beginning in August 2024,several generic companies notified us and Astellas that they had filed ANDAs with the FDA seeking approval to market genericversions of Xtandi,challenging some or all of the patents listed in the FDAs Orange Book for Xtandi.Beginning in August 2024,we brought patentinfrin

240、gement actions against the generic filers in the U.S.District Court for the District of New Jersey,asserting the validity and infringement of the patents insuit.Inlyta(axitinib)In October 2024,Sandoz Inc.(Sandoz)notified us that it had filed an ANDA with the FDA seeking approval to market a generic

241、version of Inlyta.Sandozasserts the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030.In November 2024,we filed suit against Sandoz in theU.S.District Court for the District of Delaware,asserting the validity and infringement of the crystalline form paten

242、t for Inlyta.Actions in Which We are the DefendantComirnaty(tozinameran)In March 2022,Alnylam Pharmaceuticals,Inc.(Alnylam)filed a complaint in the U.S.District Court for the District of Delaware against Pfizer and Pharmacia&Upjohn Company LLC,our wholly owned subsidiary,alleging that Comirnaty infr

243、inges a U.S.patent issued in February 2022,and seeking unspecifiedmonetary damages.In July 2022,Alnylam filed a second complaint in the U.S.District Court for the District of Delaware against Pfizer,Pharmacia&UpjohnCompany LLC,BioNTech and BioNTech Manufacturing GmbH,alleging that Comirnaty infringe

244、s a U.S.patent issued in July 2022,and seeking unspecifiedmonetary damages.In May 2023,Alnylam filed a separate complaint in the U.S.District Court for the District of Delaware against Pfizer and Pharmacia&Upjohn Company LLC alleging that Comirnaty infringes four additional U.S.patents issued on var

245、ious dates in 2023 and seeking unspecified monetarydamages.In February 2025,one of the patents asserted in the May 2023 complaint was dismissed from the litigation by stipulation of the parties.In August2022,ModernaTX,Inc.(ModernaTX)and Moderna US,Inc.(Moderna)sued Pfizer,BioNTech,BioNTech Manufactu

246、ring GmbH and BioNTech US Inc.in theU.S.District Court for the District of Massachusetts,alleging that Comirnaty infringes three U.S.patents.In its complaint,Moderna stated that it is seekingdamages for alleged infringement occurring after March 7,2022.In March 2024,the U.S.Patent Office Patent Tria

247、l&Appeal Board instituted a review of twoof the three patents in suit.In March 2025,the U.S.Patent Office issued a decision holding that the two Moderna patents were invalid.In August 2022,ModernaTX filed a patent infringement action in Germany against Pfizer and certain subsidiary companies,as well

248、 as BioNTech and certainsubsidiary companies,alleging that Comirnaty infringes two European patents.In March 2025,a German court found the asserted patents infringed;nodecision on invalidity was rendered.In September 2022,ModernaTX filed patent infringement actions in the U.K.and in the Netherlands

249、against Pfizer andcertain subsidiary companies,as well as BioNTech and certain subsidiary companies,on the same two European patents.In its complaints,ModernaTX statedthat it is seeking damages for alleged infringement occurring after March 7,2022.In November 2023,one of the European patents was rev

250、oked by theEuropean Patent Office.In December 2023,the other European patent was declared invalid by a court in the23PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Netherlands(the invalidity decision is limited to the Netherlands).In July 2024,the U

251、.K.court revoked one patent,ruling that it was invalid,and held that theother patent was valid and infringed.ModernaTX has also filed additional patent infringement actions against Pfizer and BioNTech in certain other ex-U.S.jurisdictions.In April 2023,Arbutus Biopharma Corporation(Arbutus)and Genev

252、ant Sciences GmbH(Genevant)filed a complaint in the U.S.District Court for the Districtof New Jersey against Pfizer and BioNTech alleging that Comirnaty and its manufacture infringe five U.S.patents,and seeking unspecified monetary damages.In April 2024,GlaxoSmithKline Biologicals SA and GlaxoSmithK

253、line LLC(collectively,GSK Group)sued Pfizer and Pharmacia&Upjohn Company LLC,BioNTech,BioNTech Manufacturing GmbH and BioNTech US Inc.in the U.S.District Court for the District of Delaware,alleging that Comirnaty infringesfive U.S.patents and seeking unspecified money damages.In August 2024,GSK Grou

254、p filed an amended complaint alleging that Comirnaty infringes threeadditional U.S.patents.In January 2025,Promosome LLC filed a complaint in the Unified Patent Court,Local Division Munich,against Pfizer and BioNTech and certain of theirsubsidiaries alleging that Comirnaty infringes a European paten

255、t that is in force only in France,Germany and Sweden,and seeking unspecified monetarydamages in connection with the manufacture and sale of Comirnaty in France,Germany and Sweden.PaxlovidIn June 2022,Enanta Pharmaceuticals,Inc.(Enanta)filed a complaint in the U.S.District Court for the District of M

256、assachusetts against Pfizer alleging that theactive ingredient in Paxlovid,nirmatrelvir,infringes a U.S.patent issued in June 2022,and seeking unspecified monetary damages.In December 2024,theDistrict Court issued an order granting Pfizers motion for summary judgment,finding Enantas patent invalid.A

257、brysvoIn August 2023,GSK Group filed a complaint in the U.S.District Court for the District of Delaware against Pfizer alleging that the active ingredient inAbrysvo infringes four U.S.patents.In November 2023,GSK Group amended its complaint to assert infringement of two additional patents.In Novembe

258、r2024,the GSK Group filed a second amended complaint,adding a seventh patent to the lawsuit.The second amended complaint seeks unspecified monetarydamages and a permanent injunction against sales of Abrysvo for use in adults in age ranges for which GSK Groups Arexvy product is also indicated.In addi

259、tion,we have challenged certain of GSKs RSV vaccine patents in certain ex-U.S.jurisdictions,including the U.K.,the Netherlands,Belgium and theUnified Patent Court,and GSK has asserted that Abrysvo infringes these patents.In October 2024,the U.K.Court held that two of GSKs U.K.patents wereinvalid and

260、 not infringed.In April 2025,the Company settled all of the patent disputes related to Abrysvo on terms not material to Pfizer.Matters Involving Pfizer and its Collaboration/Licensing PartnersComirnaty(tozinameran)In July 2022,Pfizer,BioNTech and BioNTech Manufacturing GmbH filed a declaratory judgm

261、ent complaint against CureVac in the U.S.District Court for theDistrict of Massachusetts seeking a judgment of non-infringement for three U.S.patents relating to Comirnaty.In May 2023,the case was transferred to theU.S.District Court for the Eastern District of Virginia.Also in May 2023,CureVac asse

262、rted that Comirnaty infringes the three patents that were the subject ofour declaratory judgment complaint,and in May and July 2023,CureVac asserted that Comirnaty infringes a number of additional U.S.patents.In the U.K.,Pfizer and BioNTech have sued CureVac seeking a judgment of invalidity of sever

263、al patents and CureVac has made certain infringementcounterclaims.In September 2024,the U.K.Court held that both of the CureVac patents in suit are invalid.In January 2025,the U.K.Court rejected CureVacsrequest for permission to appeal.Orgovyx(relugolix)Beginning in January 2025,several generic comp

264、anies notified us that they had filed ANDAs with the FDA seeking approval to sell a generic form of relugolix(Orgovyx),and challenging one or more patents listed in the FDAs Orange Book for Orgovyx which are licensed to Pfizer.In March 2025,we,along withSumitomo Pharma Switzerland GBBH,Sumitomo Phar

265、ma America,Inc.,Takeda and Takeda Pharmaceuticals International AG jointly filed separate patentinfringement actions in the U.S.District Court for the District of Delaware against the generic companies,asserting the infringement and validity of the patentsin suit.A2.Legal ProceedingsProduct Litigati

266、onWe are defendants in numerous cases,including but not limited to those discussed below,related to our pharmaceutical and other products.Plaintiffs in thesecases seek damages and other relief on various grounds for alleged personal injury and economic loss.24PFIZER INC.AND SUBSIDIARY COMPANIESNOTES

267、 TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)AsbestosBetween 1967 and 1982,Warner-Lambert owned American Optical Corporation(American Optical),which manufactured and sold respiratory protectivedevices and asbestos safety clothing.In connection with the sale of American Optical in 1982,W

268、arner-Lambert agreed to indemnify the purchaser for certainliabilities,including certain asbestos-related and other claims.Warner-Lambert was acquired by Pfizer in 2000 and is a wholly owned subsidiary of Pfizer.Warner-Lambert is actively engaged in the defense of,and will continue to explore variou

269、s means of resolving,these claims.Numerous lawsuits against American Optical,Pfizer and certain of its previously owned subsidiaries are pending in various federal and state courts seekingdamages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly

270、hazardous materials sold by Pfizer and certainof its previously owned subsidiaries.There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned orformerly owned by Pfizer or its subsidiaries.DocetaxelA numb

271、er of lawsuits have been filed against Hospira and Pfizer in various federal and state courts alleging that plaintiffs who were treated with Docetaxeldeveloped permanent hair loss.Hospira is a wholly-owned subsidiary that we acquired in September 2015.The significant majority of the cases also nameo

272、ther defendants,including the manufacturer of the branded product,Taxotere.Plaintiffs seek compensatory and punitive damages.Additional lawsuits havebeen filed in which plaintiffs allege they developed blocked tear ducts following their treatment with Docetaxel.In 2016,the federal cases were transfe

273、rred for coordinated pre-trial proceedings to an MDL in the U.S.District Court for the Eastern District of Louisiana.In2022,the eye injury cases were transferred for coordinated pre-trial proceedings to an MDL in the U.S.District Court for the Eastern District of Louisiana.ZantacA number of lawsuits

274、 have been filed against Pfizer in various federal and state courts alleging that plaintiffs developed various types of cancer,or face anincreased risk of developing cancer,purportedly as a result of the ingestion of Zantac.The significant majority of these cases also name other defendants thathave

275、historically manufactured and/or sold Zantac.Pfizer has not sold Zantac since 2006,and only sold an OTC version of the product.In 2006,Pfizer sold theconsumer business that included its Zantac OTC rights to Johnson&Johnson and transferred the assets and liabilities related to Zantac OTC to Johnson&J

276、ohnson in connection with the sale.Plaintiffs in these cases seek compensatory and punitive damages.In February 2020,the federal actions were transferred for coordinated pre-trial proceedings to an MDL in the U.S.District Court for the Southern District ofFlorida(the Federal MDL Court).Plaintiffs in

277、 the MDL filed against Pfizer and many other defendants a master personal injury complaint,a consolidatedconsumer class action complaint alleging,among other things,claims under consumer protection statutes of all 50 states,and a medical monitoring complaintseeking to certify medical monitoring clas

278、ses under the laws of 13 states.In December 2022,the Federal MDL Court granted defendants Daubert motions toexclude plaintiffs expert testimony and motion for summary judgment on general causation,which has resulted in the dismissal of all complaints in thelitigation.Plaintiffs have appealed the Fed

279、eral MDL Courts rulings.In addition,(i)Pfizer has received service of Canadian class action complaints naming Pfizer and other defendants,and seeking compensatory and punitivedamages for personal injury and economic loss,allegedly arising from the defendants sale of Zantac in Canada;and(ii)the State

280、 of New Mexico and theMayor and City Council of Baltimore separately filed civil actions against Pfizer and many other defendants in state courts,alleging various state statutory andcommon law claims in connection with the defendants alleged sale of Zantac in those jurisdictions.In April 2021,a Judi

281、cial Council Coordinated Proceedingwas created in the Superior Court of California in Alameda County to coordinate personal injury actions against Pfizer and other defendants filed in Californiastate court.Coordinated proceedings have also been created in other state courts.The large majority of the

282、 state court cases have been filed in the SuperiorCourt of Delaware in New Castle County.Many of these Zantac-related cases have been outstanding for a number of years and could take many more years to resolve.From time to time,Pfizer hasexplored and will continue to explore opportunistic settlement

283、s of these matters.As of April 2025,Pfizer had settled,or entered into definitive agreements oragreements-in-principle to settle,subject to certain conditions,a substantial majority of the cases filed in state courts in which the plaintiff alleges use of aPfizer product.The remaining unresolved stat

284、e court cases continue in various state courts.ChantixBeginning in August 2021,a number of putative class actions have been filed against Pfizer in various U.S.federal courts following Pfizers voluntary recall ofChantix due to the presence of a nitrosamine,N-nitroso-varenicline.Plaintiffs assert tha

285、t they suffered economic harm purportedly as a result of purchasingChantix or generic varenicline medicines sold by Pfizer.Plaintiffs seek to represent nationwide and state-specific classes and seek various remedies,includingdamages and medical monitoring.In December 2022,the federal actions were tr

286、ansferred for coordinated pre-trial proceedings to an MDL in the U.S.25PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)District Court for the Southern District of New York.Similar putative class actions in Canada and Israel,where the product brand is

287、 Champix,have beendismissed.Depo-ProveraA number of lawsuits have been filed against Pfizer and certain subsidiaries in various federal and state courts alleging that plaintiffs who used the injectableversion of Depo-Provera(active ingredient medroxyprogesterone acetate,or MPA)for contraception deve

288、loped meningioma.The cases also name otherdefendants,including the manufacturers of generic versions of injectable MPA for contraception.Plaintiffs assert claims against Pfizer relating to both Depo-Provera and generic MPA products,and seek compensatory and punitive damages.In February 2025,the fede

289、ral cases were transferred for coordinated pre-trialproceedings to an MDL in the U.S.District Court for the Northern District of Florida.A3.Legal ProceedingsCommercial and Other MattersMonsanto-Related MattersIn 1997,Monsanto Company(Former Monsanto)contributed certain chemical manufacturing operati

290、ons and facilities to a newly formed corporation,SolutiaInc.(Solutia),and spun off the shares of Solutia.In 2000,Former Monsanto merged with Pharmacia&Upjohn Company to form Pharmacia.Pharmacia thentransferred its agricultural operations to a newly created subsidiary,named Monsanto Company(New Monsa

291、nto),which it spun off in a two-stage process thatwas completed in 2002.Pharmacia was acquired by Pfizer in 2003 and is a wholly owned subsidiary of Pfizer.In connection with its spin-off that was completed in 2002,New Monsanto assumed,and agreed to indemnify Pharmacia for,any liabilities related to

292、Pharmacias former agricultural business.New Monsanto has defended and/or is defending Pharmacia in connection with various claims and litigation arisingout of,or related to,the agricultural business,and has been indemnifying Pharmacia when liability has been imposed or settlement has been reached re

293、gardingsuch claims and litigation.In connection with its spin-off in 1997,Solutia assumed,and agreed to indemnify Pharmacia for,liabilities related to Former Monsantos chemical businesses.As the result of its reorganization under Chapter 11 of the U.S.Bankruptcy Code,Solutias indemnification obligat

294、ions relating to Former Monsantos chemicalbusinesses are primarily limited to sites that Solutia has owned or operated.In addition,in connection with its spin-off that was completed in 2002,NewMonsanto assumed,and agreed to indemnify Pharmacia for,any liabilities primarily related to Former Monsanto

295、s chemical businesses,including,but notlimited to,any such liabilities that Solutia assumed.Solutias and New Monsantos assumption of,and agreement to indemnify Pharmacia for,these liabilitiesapply to pending actions and any future actions related to Former Monsantos chemical businesses in which Phar

296、macia is named as a defendant,including,without limitation,actions asserting environmental claims,including alleged exposure to polychlorinated biphenyls.Solutia and/or New Monsanto aredefending Pharmacia in connection with various claims and litigation arising out of,or related to,Former Monsantos

297、chemical businesses,and have beenindemnifying Pharmacia when liability has been imposed or settlement has been reached regarding such claims and litigation.In 2018,Bayer AG acquiredMonsanto Company(New Monsanto),which is now a subsidiary of Bayer AG.Since the acquisition,New Monsanto has continued t

298、o defend and indemnifyPharmacia for these liabilities.Environmental MattersIn 2009,as part of our acquisition of Wyeth,we assumed responsibility for environmental remediation at the Wyeth Holdings LLC(formerly known as WyethHoldings Corporation and American Cyanamid Company)discontinued industrial c

299、hemical facility in Bound Brook,New Jersey.Since that time,we haveexecuted or have become a party to a number of administrative settlement agreements,orders on consent,and/or judicial consent decrees,with the U.S.Environmental Protection Agency,the New Jersey Department of Environmental Protection a

300、nd/or federal and state natural resource trustees to performremedial design,removal and remedial actions,and related environmental remediation activities,and to resolve alleged damages to natural resources,at theBound Brook facility.We have accrued for the currently estimated costs of these activiti

301、es.We are also party to a number of other proceedings brought under the Comprehensive Environmental Response,Compensation,and Liability Act of 1980,asamended,and other state,local or foreign laws in which the primary relief sought is the cost of past and/or future remediation.Contracts with Iraqi Mi

302、nistry of HealthIn 2017,a number of U.S.service members,civilians,and their families brought a complaint in the U.S.District Court for the District of Columbia against anumber of pharmaceutical and medical devices companies,including Pfizer and certain of its subsidiaries,alleging that the defendant

303、s violated the U.S.Anti-Terrorism Act.The complaint alleges that the defendants provided funding for terrorist organizations through their sales practices pursuant to pharmaceuticaland medical device contracts with the Iraqi Ministry of Health and seeks monetary relief.In July 2020,the District Cour

304、t granted defendants motions todismiss and dismissed all of plaintiffs claims.In January 2022,the Court of Appeals reversed the District Courts decision.In June 2024,the U.S.SupremeCourt issued an order granting certiorari,vacating the Court of Appeals decision,and remanding the case to the Court of

305、 Appeals.26PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Allergan Complaint for IndemnityIn 2019,Pfizer was named as a defendant in a complaint,along with King,filed by Allergan Finance LLC(Allergan)in the Supreme Court of the State of NewYork,asse

306、rting claims for indemnity related to Kadian,which was owned for a short period by King in 2008,prior to Pfizers acquisition of King in 2010.Thissuit was voluntarily discontinued without prejudice in January 2021.Breach of Contract ComirnatyIn 2023,Pfizer and BioNTech Manufacturing GmbH initiated se

307、parate formal proceedings against the Republic of Poland,the Republic of Romania andHungary in Belgiums Court of First Instance of Brussels.Pfizer and BioNTech are seeking an order from the Court holding those countries to theircommitments for COVID-19 vaccine orders,which were placed as part of the

308、ir contracts signed in 2021.A4.Legal ProceedingsGovernment InvestigationsLike other multi-national pharmaceutical companies,we are subject to extensive regulation by government agencies in the U.S.,other developed markets andmultiple emerging markets in which we operate.Criminal charges,substantial

309、fines and/or civil penalties,limitations on our ability to conduct business inapplicable jurisdictions,corporate integrity or deferred prosecution agreements,as well as reputational harm and increased public interest in the matter couldresult from government investigations in the U.S.and other juris

310、dictions in which we do business.These matters often involve government requests forinformation on a voluntary basis or through subpoenas after which the government may seek additional information through follow-up requests or additionalsubpoenas.In addition,in a qui tam lawsuit in which the governm

311、ent declines to intervene,the relator may still pursue a suit for the recovery of civil damagesand penalties on behalf of the government.Among the investigations by government agencies are the matters discussed below.Greenstone Antitrust LitigationIn 2019 and 2020,Attorneys General of more than 50 s

312、tates and territories filed two complaints in the U.S.District Court for the District of Connecticut againsta number of pharmaceutical companies,including Pfizer and Greenstonea former Pfizer subsidiary that sold generic drugs.As to Greenstone and Pfizer,thecomplaints allege anticompetitive conduct

313、in violation of federal and state antitrust laws and state consumer protection laws.The State Attorney Generalcomplaints were initially transferred to an MDL in the U.S.District Court for the Eastern District of Pennsylvania for coordinated pre-trial proceedings butwere transferred back to the Distr

314、ict of Connecticut in April 2024.The Greenstone antitrust litigation also includes civil complaints filed in federal and statecourt by private and governmental plaintiffs against Pfizer,Greenstone,and a number of other defendants.These related civil lawsuits assert allegations thatgenerally overlap

315、with those asserted by the State Attorneys General.All of the related federal lawsuits are part of the MDL pending in Pennsylvania.Subpoena relating to Tris Pharma/Quillivant XRIn October 2018,we received a subpoena from the U.S.Attorneys Office for the Southern District of New York(SDNY)seeking rec

316、ords relating to ourrelationship with another drug manufacturer and its production and manufacturing of drugs including,but not limited to,Quillivant XR.We have producedrecords in response to this request.Government Inquiries relating to Meridian Medical TechnologiesIn February 2019,we received a Ci

317、vil Investigative Demand(CID)from the U.S.Attorneys Office for the SDNY.The CID seeks records and informationrelated to alleged quality issues involving the manufacture of auto-injectors at Pfizers former Meridian site.In August 2019,we received a HIPAA subpoenaissued by the U.S.Attorneys Office for

318、 the Eastern District of Missouri,in coordination with the Department of Justices Consumer Protection Branch,seekingsimilar records and information.We have produced records in response to these and subsequent requests.U.S.Department of Justice Inquiries relating to India OperationsIn March 2020,we r

319、eceived an informal request from the U.S.Department of Justices Consumer Protection Branch seeking documents relating to ourmanufacturing operations in India,including at our former facility located at Irrungattukottai in India.In April 2020,we received a similar request from theU.S.Attorneys Office

320、 for the SDNY regarding a civil investigation concerning operations at our facilities in India.We have produced records pursuant to theserequests.ZantacState of New Mexico and Mayor and City Council of Baltimore Civil ActionsSee Legal ProceedingsProduct LitigationZantac above for information regardi

321、ng civil actions separately filed by the State of New Mexico and the Mayorand City Council of Baltimore alleging various state statutory and common law claims in connection with the defendants alleged sale of Zantac in thosejurisdictions.27PFIZER INC.AND SUBSIDIARY COMPANIESNOTES TO CONDENSED CONSOL

322、IDATED FINANCIAL STATEMENTS(UNAUDITED)Government Inquiries relating to XeljanzIn April 2023,we received a HIPAA subpoena issued by the U.S.Attorneys Office for the Western District of Virginia,in coordination with the Department ofJustices Commercial Litigation Branch,seeking records and information

323、 related to programs Pfizer sponsored in retail pharmacies relating to Xeljanz.Wehave produced records pursuant to this request.B.Guarantees and IndemnificationsIn the ordinary course of business and in connection with the sale of assets and businesses and other transactions,we often indemnify our c

324、ounterparties againstcertain liabilities that may arise in connection with the transaction or that are related to events and activities prior to or following a transaction.If theindemnified party were to make a successful claim pursuant to the terms of the indemnification,we may be required to reimb

325、urse the loss.Theseindemnifications are generally subject to various restrictions and limitations.Historically,we have not paid significant amounts under these provisions and,asof March 30,2025,the estimated fair value of these indemnification obligations is not material to Pfizer.In addition,in con

326、nection with our entry into certain agreements and other transactions,our counterparties may be obligated to indemnify us.For example,ourglobal agreement with BioNTech to co-develop a mRNA-based coronavirus vaccine program aimed at preventing COVID-19 infection includes certainindemnity provisions p

327、ursuant to which each of BioNTech and Pfizer has agreed to indemnify the other for certain liabilities that may arise in connection withcertain third-party claims relating to Comirnaty.See Note 7D in our 2024 Form 10-K for information on Pfizer Inc.s guarantee of the debt issued by Pfizer Investment

328、 Enterprises Pte.Ltd.(a wholly ownedsubsidiary of Pfizer)in May 2023.We have also guaranteed the long-term debt of certain subsidiaries of Pfizer and certain companies that we acquired and thatnow are subsidiaries of Pfizer.C.Contingent Consideration for AcquisitionsWe may be required to make paymen

329、ts to sellers for certain prior business combinations that are contingent upon future events or outcomes.See Note 1D in our2024 Form 10-K.Note 13.Segment,Geographic and Other Revenue InformationA.Segment InformationWe manage our commercial operations through three operating segments,each led by a si

330、ngle manager:Biopharma,PC1 and Pfizer Ignite.Biopharma isengaged in the discovery,development,manufacture,marketing,sale and distribution of biopharmaceutical products worldwide.PC1 is our contractdevelopment and manufacturing organization and a leading supplier of specialty active pharmaceutical in

331、gredients.Pfizer Ignite is an offering that providesstrategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizers R&D focus areas.Biopharma is the onlyreportable segment.We regularly review our operating segments and the approach used by management to

332、evaluate performance and allocate resources.Our commercial divisions market,sell and distribute our products,and global operating functions are responsible for the research,development,manufacturingand supply of our products.Each operating segment is supported by our global corporate enabling functi

333、ons.At the beginning of 2025,we made the followingchanges within our Biopharma reportable segment that went into effect on January 1,2025 to support our continued focus on commercial execution and tofurther strengthen Pfizers capabilities and leadership in discovering and developing breakthrough medicines and vaccines:transitioned all activities within the former Pfizer Oncology Division to other