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Segment, Geographic and Other Revenue Information
 9 Months Ended
Sep. 29, 2024
Segment Reporting [Abstract]  
Segment, Geographic and Other Revenue Information Segment, Geographic and Other Revenue Information
A. Segment Information
We manage our commercial operations through three operating segments, each led by a single manager: Biopharma, PC1 and Pfizer Ignite. Biopharma is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. PC1 is our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients. Pfizer Ignite is an offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizer’s R&D focus areas. Prior to June 2024, PC1 and Pfizer Ignite were managed together by a single manager as part of the former Business Innovation operating segment. Biopharma is the only reportable segment. Our commercial divisions market, distribute and sell our products, and global operating functions are responsible for the research, development, manufacturing and supply of our products. Each operating segment is supported by our global corporate enabling functions. Our chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation. We regularly review our segments and the approach used by management to evaluate performance and allocate resources.
At the beginning of 2024, we made changes in our commercial organization to incorporate Seagen and improve focus, speed and execution. Specifically, within our Biopharma reportable segment, we created the Pfizer Oncology Division, the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division:
•Pfizer Oncology Division combines the U.S. Oncology commercial organizations, global Oncology marketing organizations and global and U.S. Oncology medical affairs from both Pfizer and Seagen.
•Pfizer U.S. Commercial Division includes the U.S. Primary Care and U.S. Specialty Care customer groups, the Chief Marketing Office, the Global Chief Medical Affairs Office and Global Access & Value.
•Pfizer International Commercial Division includes the ex-U.S. commercial and medical affairs organizations covering Pfizer’s entire product portfolio in all international markets.
Beginning January 1, 2024, Biopharma’s earnings include costs related to R&D, medical and safety, manufacturing and supply, and sales and marketing activities that are associated with products in our Biopharma segment. Prior to 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations were presented as part of Other business activities. We have reclassified our prior period segment information to conform to the current period presentation.
Other Business Activities and Reconciling Items––Other business activities include the operating results of PC1 and Pfizer Ignite as well as certain pre-tax costs not allocated to our operating segment results, such as costs associated with corporate enabling functions and other corporate costs as well as our share of earnings from Haleon. Reconciling items include the following items, transactions and events that are not allocated to our operating segments: (i) all amortization of intangible assets; (ii) acquisition-related items; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis.
Segment Assets––We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were $219 billion as of September 29, 2024 and $227 billion as of December 31, 2023.
Selected Statement of Operations Information
The following provides selected information by reportable segment:
Three Months EndedNine Months Ended
 
Total Revenues
Earnings(a)
Total Revenues
Earnings(a)
(MILLIONS)Sept. 29, 2024Oct. 1, 2023Sept. 29, 2024Oct. 1, 2023Sept. 29, 2024Oct. 1, 2023Sept. 29, 2024Oct. 1, 2023
Reportable Segment:
Biopharma(b)
$17,392 $13,188 $8,319 $(137)$44,987 $44,051 $21,838 $14,422 
Other business activities(c)
310 303 (1,527)(1,100)877 933 (5,520)(3,325)
Reconciling Items:
Amortization of intangible assets(1,312)(1,179)(3,927)(3,466)
Acquisition-related items(465)(227)(1,590)(778)
Certain significant items(d)
(299)(708)(2,768)(1,666)
$17,702 $13,491 $4,715 $(3,352)$45,864 $44,984 $8,033 $5,187 
(a)Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $7.7 billion and $11.1 billion of net costs in the third quarter and first nine months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation.
(b)Biopharma’s revenues and earnings in the first nine months of 2024 reflect a non-cash favorable product return adjustment of $771 million recorded in the first quarter of 2024 (see Note 13C). Biopharma’s earnings also include dividend income from our investment in ViiV of $48 million in the third quarter of 2024 and $30 million in the third quarter of 2023, and $183 million in the first nine months of 2024 and $213 million in the first nine months of 2023. Biopharma’s earnings in the third quarter and first nine months of 2023 include approximately $5.6 billion and $5.8 billion, respectively, of inventory write-offs and related charges to Cost of sales mainly due to lower-than-expected demand for our COVID-19 products.
(c)Other business activities include revenues and costs associated with PC1 and Pfizer Ignite as well as costs that we do not allocate to our operating segments, per above.
(d)Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the third quarter and first nine months of 2024 include, among other items, a charge in Other (income)/deductions––net of $420 million related to the expected sale of one of our facilities resulting from the discontinuation of our DMD program. Earnings in the first nine months of 2024 also includes restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.5 billion (primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in the first nine months of 2023 included, among other items, net losses on equity securities of $711 million recorded in Other (income)/deductions––net. See Notes 3 and 4.
B. Geographic Information
The following summarizes revenues by geographic area:
 Three Months EndedNine Months Ended
(MILLIONS)September 29,
2024		October 1,
2023		%
Change		September 29,
2024		October 1,
2023		%
Change
United States$12,064 $8,064 50 $29,470 $23,233 27 
International:
Developed Markets
3,412 3,335 2 9,774 13,094 (25)
Emerging Markets2,226 2,092 6 6,620 8,656 (24)
Total revenues
$17,702 $13,491 31 $45,864 $44,984 2 
C. Other Revenue Information
Significant Customers
In October 2023, we announced an amended agreement with the U.S. government, which facilitated the transition of Paxlovid to traditional commercial markets in the U.S. starting in November 2023. In connection with this agreement, we recorded a non-cash revenue reversal of $3.5 billion in the fourth quarter of 2023 related to the expected return of an estimated 6.5 million treatment courses of EUA-labeled U.S. government inventory. In the first quarter of 2024, we recorded a non-cash favorable final adjustment of $771 million to reflect 5.1 million EUA-labeled treatment courses returned through February 29, 2024, which were converted to a volume-based credit that supports continued access to Paxlovid through a U.S. government patient assistance program operated by Pfizer. In the third quarter of 2024, in connection with this amended agreement, we also supplied at no cost to the U.S. government or taxpayers a U.S. SNS of 1.0 million treatment courses to enable future pandemic preparedness through 2028, and recorded revenue of $442 million. While we are recognizing revenue as the 6.1 million treatment courses are delivered, there is no cash consideration for these treatment courses.
Revenues from the U.S. government comprised 9% of total revenues for the three months ended September 29, 2024 and 7% for both the nine months ended September 29, 2024 and October 1, 2023. Revenues from the U.S. government as a percentage of total revenues for the three months ended October 1, 2023 were not material. For information on our significant wholesale customers, see Note 17C in our 2023 Form 10-K.
Significant Revenues by Product
The following provides detailed revenue information for several of our major products:
(MILLIONS)Three Months EndedNine Months Ended
PRODUCTPRIMARY INDICATION OR CLASSSept. 29, 2024Oct. 1, 2023Sept. 29, 2024Oct. 1, 2023
TOTAL REVENUES$17,702 $13,491 $45,864 $44,984 
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)
$17,392 $13,188 $44,987 $44,051 
Primary Care$9,060 $6,310 $21,224 $23,755 
Eliquis(a)
Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism1,617 1,498 5,534 5,135 
Paxlovid(b)
COVID-19 in certain high-risk patients2,703 202 4,989 4,414 
Prevnar familyActive immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae1,803 1,843 4,853 4,877 
Comirnaty
Active immunization to prevent COVID-19
1,422 1,306 1,970 5,858 
Nurtec ODT/VyduraAcute treatment of migraine and prevention of episodic migraine337 233 870 646 
Abrysvo
Active immunization to prevent RSV infection
356 375 557 375 
Premarin family
Symptoms of menopause
90 92 283 299 
FSME-IMMUN/TicoVac
Active immunization to prevent tick-borne encephalitis disease
81 91 246 237 
All other Primary CareVarious652 670 1,921 1,914 
Specialty Care$4,289 $3,763 $12,215 $11,035 
Vyndaqel familyATTR-CM and polyneuropathy1,447 892 3,907 2,360 
Xeljanz
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis
321 503 818 1,210 
Enbrel (Outside the U.S. and Canada)
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
169 208 507 627 
SulperazonBacterial infections156 122 468 619 
ZaviceftaBacterial infections152 130 427 378 
(MILLIONS)Three Months EndedNine Months Ended
PRODUCTPRIMARY INDICATION OR CLASSSept. 29, 2024Oct. 1, 2023Sept. 29, 2024Oct. 1, 2023
Octagam(c)
Primary humoral immunodeficiency, chronic immune thrombocytopenic purpura in adults, and dermatomyositis in adults
221 53 400 164 
Inflectra
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
126 121 382 373 
GenotropinReplacement of human growth hormone119 158 358 379 
ZithromaxBacterial infections83 60 357 254 
BeneFIXHemophilia B88 107 294 321 
Oxbryta(d)
Sickle cell disease17 85 193 232 
CibinqoAtopic dermatitis63 37 152 91 
All other Hospital(e)
Various
1,108 1,086 3,296 3,452 
All other Specialty CareVarious218 202 658 575 
Oncology$4,043 $3,115 $11,549 $9,261 
IbranceHR-positive/HER2-negative metastatic breast cancer1,087 1,244 3,272 3,635 
Xtandi(f)
mCRPC, nmCRPC, mCSPC, nmCSPC561 440 1,474 1,202 
Padcev
Locally advanced or metastatic urothelial cancer409 — 1,144 — 
Oncology biosimilars(g)
Various
285 310 828 1,085 
AdcetrisHodgkin lymphoma and certain T-cell lymphomas268 — 804 — 
InlytaAdvanced RCC247 252 736 773 
Lorbrena
ALK-positive metastatic NSCLC
206 159 538 393 
BosulifPhiladelphia chromosome–positive chronic myelogenous leukemia161 160 474 463 
Braftovi/Mektovi
Metastatic melanoma in patients with a BRAFV600E/K mutation and for metastatic NSCLC in patients with a BRAFV600E mutation; and, for Braftovi, in combination with Erbitux (cetuximab)(h) for the treatment of BRAFV600E-mutant mCRC after prior therapy
173 131 437 346 
Tukysa
Unresectable or metastatic HER2-positive breast cancer; RAS wild-type, HER2-positive unresectable or metastatic colorectal cancer124 — 351 — 
Tivdak
Recurrent or metastatic cervical cancer34 — 94 — 
Talzenna
In combination with Xtandi (enzalutamide) for adult patients with HRR gene-mutated mCRPC; treatment of BRCA gene-mutated, HER2-negative, inoperable or recurrent breast cancer36 20 91 42 
All other Oncology
Various453 399 1,306 1,322 
PFIZER CENTREONE(i)
$285 $293 $820 $908 
PFIZER IGNITE
$25 $10 $56 $25 
BIOPHARMA
$17,392 $13,188 $44,987 $44,051 
PFIZER U.S. COMMERCIAL DIVISION (U.S. Primary Care and U.S. Specialty Care)
8,938 5,864 20,702 16,679 
PFIZER ONCOLOGY DIVISION
3,026 2,111 8,516 6,260 
PFIZER INTERNATIONAL COMMERCIAL DIVISION
5,428 5,214 15,769 21,112 
Total Alliance revenues included above$1,900 $1,645 $6,140 $5,672 
Total Royalty revenues included above
$384 $260 $992 $737 
(a)Primarily reflects Alliance revenues and product revenues.
(b)The third quarter and first nine months of 2024 includes $442 million of revenue recorded in connection with the creation of the U.S. SNS. The first nine months of 2024 also includes a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash revenue reversal of $3.5 billion recorded in the fourth quarter of 2023, reflecting 5.1 million EUA-labeled treatment courses returned by the U.S. government through February 29, 2024 versus the estimated 6.5 million treatment courses that were expected to be returned as of December 31, 2023.
(c)The third quarter and first nine months of 2024 include $129 million related to a one-time sales true-up settlement agreement with our commercialization partner.
(d)In September 2024, we announced our voluntary withdrawal of all lots of Oxbryta for the treatment of sickle cell disease in all markets where it is approved, as well as the discontinuation of all active voxelotor clinical trials and expanded access programs worldwide, based on the totality of clinical data that now indicates the overall benefit of Oxbryta no longer outweighs the risk in the approved sickle cell patient population. The data suggest an imbalance in vaso-occlusive crises and fatal events, which requires further assessment.
(e)Includes, among other Hospital products, amounts previously presented as All other Anti-infectives and Ig Portfolio.
(f)Primarily reflects Alliance revenues and royalty revenues.
(g)Biosimilars are highly similar versions of approved and authorized biological medicines. Oncology biosimilars primarily include Retacrit, Ruxience, Zirabev, Trazimera and Nivestym.
(h)Erbitux is a registered trademark of ImClone LLC.
(i)PC1 includes revenues from our contract manufacturing and our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with legacy Pfizer businesses/partnerships.
Remaining Performance Obligations––Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty and Paxlovid to our customers totaled approximately $6 billion and $1 billion, respectively, as of September 29, 2024, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of these amounts, current contract terms provide for expected delivery of product with contracted revenue from 2024 through 2028, the timing of which may be renegotiated. Remaining performance obligations are based on foreign exchange rates as of the end of our fiscal third quarter of 2024 and exclude arrangements with an original expected contract duration of less than one year. Remaining performance obligations associated with contracts for other products and services were not significant as of September 29, 2024 or December 31, 2023.
Deferred Revenues––Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers for supply of Paxlovid and Comirnaty. The deferred revenues related to Paxlovid and Comirnaty totaled $3.5 billion as of September 29, 2024, with $2.0 billion and $1.5 billion recorded in current liabilities and noncurrent liabilities, respectively. The deferred revenues related to Paxlovid and Comirnaty totaled $5.1 billion as of December 31, 2023, with $2.6 billion and $2.5 billion recorded in current liabilities and noncurrent liabilities, respectively. The decrease in Paxlovid and Comirnaty deferred revenues during the first nine months of 2024 was primarily driven by amounts recognized in Product revenues as we delivered the products to our customers (including $442 million associated with the U.S. SNS for Paxlovid) as well as the aforementioned $771 million favorable final adjustment recorded in the first quarter of 2024 for Paxlovid, partially offset by additional advance payments received in the first nine months of 2024 as we entered into amended contracts. During the third quarter and first nine months of 2024, we recognized revenue of approximately $1.1 billion and $2.3 billion, respectively, that was included in the balance of Paxlovid and Comirnaty deferred revenues as of December 31, 2023. The Paxlovid and Comirnaty deferred revenues as of September 29, 2024 will be recognized in Product revenues proportionately as we transfer control of the products to our customers and satisfy our performance obligations under the contracts, with the amounts included in current liabilities expected to be recognized in Product revenues within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in Product revenues from 2025 through 2028. Deferred revenues associated with contracts for other products were not significant as of September 29, 2024 or December 31, 2023.