Asad Haider

Asad Haider asked about Pfizer's business development (BD) plans if the Metsera acquisition does not proceed, and requested early framing on 2026 guidance, particularly regarding OpEx with and without Metsera, and further color on the dilution from the MFN deal.

Answer

Dave Denton, CFO, Pfizer, confirmed that Pfizer retains significant resources for business development and continues to aggressively pursue acquisitions across its therapeutic areas globally. He deferred detailed 2026 guidance until year-end but noted that current investments in Metsera and 3SBio are expected to have a slightly dilutive effect on operating performance next year. Andrew Baum, Chief Strategy and Innovation Officer and EVP, Pfizer, added that BD efforts are active across all geographies, especially China. Albert Bourla, Chairman and CEO, Pfizer, also contributed.

Asad Haider asked about Pfizer's business development plans if the MedSera acquisition does not materialize. He also sought early insights into the 2026 guidance, particularly regarding OpEx with and without MedSera, and clarification on the dilutive impact of the MFN deal.

Answer

Dave Denton, CFO, explained that Pfizer retains significant resources for successful transactions across its therapeutic areas and continues to actively identify acquisition candidates globally. He noted it was too early for exact 2026 guidance, but current investments (MedSera, 3SBio) would have a slightly dilutive effect. Andrew Baum, Chief Strategy and Innovation Officer and EVP, added that Pfizer is active in all geographies, especially China, and has increased its team there.

Asad Haider of Goldman Sachs sought clarity on what factors could cause significant swings in the company's quantified expectations for MFN's impact and whether the range of potential outcomes is narrowing.

Answer

CEO Albert Bourla reiterated that while the company has modeled numerous scenarios and mitigation plans, he could not disclose details or probabilities as they are in the middle of active discussions and negotiations with the administration. He stated it would be inappropriate to 'open the cards' at this time.

Asad Haider of Goldman Sachs asked what factors could cause large swings to the MFN impact expectations that are now reflected in the company's guidance.

Answer

Chairman & CEO Albert Bourla stated that while the company has modeled numerous scenarios with mitigation plans, it would be inappropriate to disclose details or probabilities of potential outcomes while in the midst of active discussions and negotiations with the administration.

Asad Haider asked about competitive dynamics for Vyndaqel, data timelines for the oral GIPR antagonist, and the biggest disconnects between analyst models and internal expectations for upcoming Phase III readouts.

Answer

Aamir Malik, Chief U.S. Commercial Officer, and Alexandre de Germay, Chief International Commercial Officer, both described strong growth for Vyndaqel driven by diagnosis and access. Chief Scientific Officer Chris Boshoff projected GIPR antagonist data in early 2026. Chief Strategy and Innovation Officer Andrew Baum identified two ADCs (SP, PD-L1V), the C. diff vaccine, a CDK4 inhibitor, and ponsegromab as key assets potentially undervalued by the Street.

Asad Haider asked for an update on AbbVie's M&A strategy following recent acquisitions like Capstan and Gilgamesh, inquiring about business development priorities geared towards the 2030s, preferred therapeutic areas, and appetite for larger deals.

Answer

Chairman and CEO Rob Michael reiterated that BD focus remains on assets driving growth in the next decade and beyond, emphasizing novel mechanisms and platform technologies in immunology, neuroscience, oncology, aesthetics, and obesity. He noted the financial capacity for late-stage opportunities but highlighted the current portfolio's clear growth runway, leading to a focus on robust depth for long-term pipeline opportunities.

Asad Haider asked Rob Michael for updated thoughts on M&A strategy following recent acquisitions, confirming if the focus remains on 2030s growth, prioritizing core therapeutic areas, and appetite for larger deals.

Answer

Rob Michael, Chairman and CEO, reiterated that BD focus remains on assets for growth in the next decade and beyond, emphasizing novel mechanisms and platform technologies. He confirmed core therapeutic areas (immunology, neuroscience, oncology, aesthetics) plus obesity as priorities, and while having the financial capacity for larger deals, the current portfolio's clear growth runway allows focus on long-term pipeline opportunities.

Asad Haider of Goldman Sachs asked a broader question about AbbVie's oncology franchise, its view on the PD-1/VEGF inhibitor class, and the criteria for potential business development in that area.

Answer

EVP & CSO Roopal Thakkar responded that AbbVie is monitoring the class and is interested in assets that could partner well with its internal ADC platform. The key strategic consideration would be finding a combination partner that aligns with AbbVie's focus on optimizing the benefit-risk profile and enhancing tolerability.

Asad Haider asked about orforglipron's pricing and volume dynamics ahead of launch, specifically regarding the rapid growth in the cash-pay channel for obesity (Zepbound vials) and learnings from ex-U.S. price elasticity (U.K. Mounjaro price increase) for orforglipron's ramp.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, discussed significant growth in the cash-pay channel, particularly via Lilly Direct, and the importance of expanding offerings like orforglipron for patient accessibility. Patrick Jonsson, President of Lilly International, noted learnings from the U.K. price increase (stopping exports, consumer pricing elasticity) and believes orforglipron will meet a different need for patients with BMI below 35, offering scalability and no refrigeration, complementing other OUS offerings.

Asad Haider questioned orforglipron's pricing and volume dynamics ahead of launch, focusing on cash pay channel growth, Zepbound vial uptake, learnings from Mounjaro's ex-U.S. price elasticity (U.K.), and implications for U.S. vs. OUS volume unlocks.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, highlighted significant growth in the direct-to-consumer channel and Zepbound vial uptake. Patrik Jonsson, President of Lilly International, discussed learnings from the U.K. Mounjaro price adjustment, consumer pricing elasticity, and how orforglipron will meet different OUS needs.

Asad Haider of Goldman Sachs Group, Inc. inquired about the LillyDirect channel, asking where Zepbound growth might stabilize, its impact on pricing, and if the company's view of it as a 'hedge' has evolved.

Answer

Lucas Montarce, CFO, confirmed the company still views LillyDirect as a 'hedge strategy' to bridge the gradual progression of employer coverage. He highlighted its success, noting 1.1 million total prescriptions in Q2, and stated that the channel is progressing very nicely and contributing significantly to overall performance.

Asad Haider asked about the investor concerns following the CVS formulary announcement to exclude Zepbound, questioning the expected impact on market share and Lilly's strategy for navigating PBMs potentially restricting access.

Answer

Chair and CEO David Ricks stated that the announcement was not surprising given Zepbound's market share gains. He emphasized that Lilly is not interested in exclusive 'one-of-one' deals that reduce patient choice and is focused on developing better, more accessible medicines like orforglipron. Ricks noted the CVS decision affects a smaller book of business with historically low employer opt-in rates for obesity coverage.

Asad Haider asked about the shape of the $1 billion in cost savings from strategic productivity initiatives over the next couple of years, considering potential R&D expenses for BNT327 and other phase III programs, and the implications for margin trajectory. He also asked CMO Christian Massacesi for his early thoughts on the pipeline and particularly encouraging programs.

Answer

CEO Chris Boerner emphasized balancing investments for growth with financial discipline. CFO David Elkins confirmed strong growth portfolio performance and being on track for $1 billion in efficiency savings this year, with clear line of sight to $2 billion by 2027. He highlighted P&L flexibility and financial discipline to manage the cost base through the transition. CMO Christian Massacesi expressed excitement for COBENFY, Milvexian (especially its potential as the only Factor 11A in NAF and ACS), and Admilparant in pulmonary fibrosis, as well as the protein degradation and autoimmune cell therapy platforms.

Asad Haider questioned the shape of Bristol Myers Squibb's strategic productivity initiatives, particularly the $1 billion in cost savings for 2025 and the $2 billion target by 2027, in the context of potential R&D expenses for BNT327 and other Phase 3 programs, and its impact on margin trajectory. He also asked Christian Masetti for his early thoughts on the pipeline and any particularly encouraging programs.

Answer

Chris Boerner, Board Chair and CEO, emphasized balancing investments for growth (pipeline, R&D, commercial) with financial discipline. David Elkins, Chief Financial Officer, highlighted strong growth portfolio performance, confirmed being on track for $1 billion in efficiency commitments this year and $2 billion by 2027, and noted numerous Phase 3 programs completing. He expressed confidence in managing the cost base and maintaining P&L flexibility. Cristian Massacesi, Chief Medical Officer and Head of Global Drug Development, expressed excitement for milvexian (novel Factor 11a, potential first/only in AFib/ACS/SSP), ArmiParent (IPF/PPF, strong Phase 2 data), and scientific platforms like protein degradation (iberdomide Phase 3 data) and cell therapy for autoimmune diseases (CD19 CAR T, Orbital acquisition).

Asad Haider of Goldman Sachs asked how BMY is balancing its cost optimization program with significant capital needs for new deals and development programs, and also requested clarification on the ADAPT-2 trial's read-across to other studies.

Answer

EVP & CFO David Elkins explained that ongoing strategic productivity initiatives provide the financial flexibility to fund new deals and R&D priorities while also reallocating resources from concluding trials. EVP & Chief Medical Officer Samit Hirawat clarified that the three ADAPT trials have distinct designs and that two of the three will need to be positive to support a regulatory filing.

Asad Haider asked for the drivers behind the 'renewed emphasis' on business development and inquired about the company's preferences regarding deal size, therapeutic area, and focus on near-term versus earlier-stage assets.

Answer

CEO Christopher Boerner clarified that the focus on business development has not changed and remains a top priority. He stated that the company does not filter by deal size but rather by a consistent set of criteria: strengthening key therapeutic areas, ensuring BMS is the rightful owner, favorable financials, and improving the company's growth profile at the end of the decade.

Asad Haider inquired about Johnson & Johnson's capital allocation priorities to sustain acceleration in Innovative Medicine and drive MedTech towards its 5-7% growth targets, and the biggest disconnects between J&J's bullish 2026 sales growth acceleration and current consensus models for Innovative Medicine.

Answer

Chairman and CEO Joaquin Duato highlighted internal investment opportunities across the pipeline and portfolio, emphasizing that J&J does not need large M&A to achieve high-end growth targets. CFO Joe Wolk pointed to the success of smaller, strategic deals like Inlexa and icatrekibart. EVP, Worldwide Chairman, Innovative Medicine Jennifer Taubert detailed specific areas of disconnect for Innovative Medicine, including Tremfya's IBD uptake, Spravato's expansion, Riviprant's subcutaneous form and new data, Inlexa's launch, and icatrekibart's potential. EVP, Worldwide Chairman, MedTech Tim Schmid noted strong MedTech performance in electrophysiology, vision, and surgery, with OTAVA expected to bolster future results.

Asad Haider asked how Johnson & Johnson plans to balance capital allocation priorities to sustain acceleration in Innovative Medicine and push MedTech towards its 5-7% growth targets, especially given the orthopedic spin-off. He also inquired about the biggest disconnects between J&J's bullish 2026 Innovative Medicine sales growth projections and current consensus models.

Answer

Chairman and CEO Joaquin Duato highlighted significant internal investment opportunities in both Innovative Medicine (e.g., TREMFYA, RYBREVANT, INLEXZO, icotrokinra) and MedTech (electrophysiology, heart pumps, Shockwave, OTTAVA robotic system). He emphasized that J&J does not need large M&A to meet high-end growth targets. CFO Joe Wolk added that smaller, strategic deals like INLEXZO and icotrokinra are key. EVP, Worldwide Chairman, Innovative Medicine, Jennifer Taubert identified TREMFYA, SPRAVATO, RYBREVANT, INLEXZO, and icotrokinra as key drivers where J&J is more bullish than consensus for 2026. EVP, Worldwide Chairman, MedTech, Tim Schmid pointed to strong performance in electrophysiology, vision, and surgery, with OTTAVA expected to bolster future growth.

Asad Haider of Goldman Sachs Group Inc. asked for commentary on potential pharma tariffs, J&J's current US manufacturing capacity, and its supply chain flexibility to adapt for 2026.

Answer

CEO and Chairman Joaquin Duato stated that while the ultimate outcome of tariffs is uncertain, recently passed tax policies have enabled J&J's $55 billion investment in the U.S. over the next four years. He affirmed the company's goal is to manufacture all medicines consumed in the U.S. domestically upon completion of this investment plan.

Asad Haider from Goldman Sachs requested quantitative framing on the STELARA biosimilar erosion curve and the potential mitigating effects from other products like TREMFYA.

Answer

EVP, Innovative Medicine, Jennifer Taubert reiterated that the HUMIRA 2-year erosion curve remains the best proxy, plus the impact of Part D redesign. She highlighted that the core business, excluding STELARA, grew over 12%. EVP, R&D, John Reed added that TREMFYA is well-positioned to succeed STELARA, citing strong head-to-head data and convenient subcutaneous delivery.

Asad Haider asked a multi-part question covering the drivers of the COVID-19 revenue guidance, the BNT327 acceleration strategy post-BMS deal, and the specifics of the upcoming FixVac melanoma data presentation at ESMO.

Answer

CFO Ramón Zapata addressed the guidance, noting revenue is back-half weighted with an assumption of lower vaccination rates but stable pricing and market share. He confirmed the 50/50 cost-sharing with BMS. CMO Özlem Türeci detailed that the ESMO presentation for BNT111 will include primary efficacy endpoints, secondary survival data, and translational results.

Asad Haider from Goldman Sachs posed a three-part question on Gardasil regarding U.S. demand dynamics, the potential impact of an ACIP recommendation for fewer doses, and the outlook for the China market in 2026.

Answer

Dr. Dean Li, President of Merck Research Labs, addressed the ACIP, highlighting the high FDA evidentiary standard for a single dose. EVP & CFO Caroline Litchfield handled the commercial questions, noting strong U.S. demand was offset by CDC purchasing patterns and confirming no further shipments to China are planned for 2025, with 2026 to be assessed later.

Asad Haider of Goldman Sachs posed a three-part question on Gardasil regarding U.S. demand dynamics versus CDC purchasing, the potential impact of an ACIP recommendation for lower doses, and the outlook for resuming shipments to China in 2026.

Answer

Dr. Dean Li, President of Merck Research Laboratories, emphasized the high evidentiary standard required by the FDA for a single-dose regimen. EVP & CFO Caroline Litchfield stated that U.S. growth was driven by price and demand but offset by CDC purchasing patterns. She confirmed no shipments to China are planned for the rest of 2025 and that the company is not counting on China for growth, which now represents less than 1% of company sales.