Pfizer CEO on the company’s future: ‘We are investing in science’

Pfizer CEO Albert Bourla joins Yahoo Finance's All Markets Summit to discuss the pharmaceutical giant's future and how it will continue to develop as current patents begin to expire.

Video Transcript

- So where are you now in terms of that question of what is next for Pfizer? What's going to be the next source of revenue as you are going to see patents roll off for various products?

ALBERT BOURLA: I think the pandemic from that aspect in all the bad things that brought to the world brought us something very important that gave to the Pfizer organization a belief that nothing is impossible. A belief in the culture that if we set our mind to a goal even if it is very big, we will make it. That's a big competitive advantage I think for the culture of this organization.

Now going forward, as you said, we are starting losing patents of some of our existing products in year '26, '27, '28, '29. And there is a lot of discussion of how are we going to bridge that gap. So from '25 to '30 depends which the analyst that you rate could be from $17 to $20 billion of losses. We are having $25 billion that we are bringing through business development.

COVID was nice in terms of revenue creation that COVID vaccines, but we are investing all of that. And we are investing in science that could bring products in 25, 26, 27, 28, 29. We committed to bring $25 billion of risk adjusted revenues by 2030.

And we are already exceeded the 10. Now, our internal pipeline, it is what I think it is the biggest competitive advantage. And the business development will provide growth over the loss of exclusivity.

We are losing to end you are gaining 25 so it's a small growth but the pipeline would be on top of it. Only next year, we are expecting to launch more than 10 products. Some were expecting to see the results right now.

That's why I don't give a specific number. Five new vaccines, two oncology medicines, two immunoinflamation medicines. All of that next year, and '24 another round of new innovative vaccines.

- And just by way of comparison, you said more than 10, what's a typical number of launches per year?

- One or two.

- Right. So you guys are busy?

- Very busy. I think next year for Pfizer, it is a pivotal year. It is the year that we can prove to the world and to can prove to us that we can do multiple launches.

I believe in the strength of our commercial organization and in the strength of our manufacturing organization, because it's very difficult for any company to pull together to 10 new medicines manufacturing wise, and sales force wise.

- And those are, of course, are already in the pipeline at the company, that's not even to speak of acquisitions. You've made a couple of acquisitions this year. Most notably biohaven, which just closed recently. Global Blood Therapeutics, which was just announced.

You have a lot of cash to make more, are you going to be making a lot more acquisitions, and I think we've talked about this in the past. Maybe not as large as legacy Pfizer, but maybe these sorts of mid-sized acquisitions, is that the path you see going forward?

- I think so. This is what we have told our shareholders and this is what we believe that it is the best value creation. We want to acquire science at early stages that we can add value to it by bringing our manufacturing capabilities, our clinical development capabilities.

All of these things that we demonstrated during the COVID period that we are able to do it, so that we can do way more with these medicines in our hands than if it was in the originator hands. We promised or we set a goal that we will make $25 billion of risk adjusted revenues we will acquire $25 billion of risk adjusted revenues. I feel very confident with what I see that there is enough substrate to do even more than that at prices and volume that requires a discipline.

We are not going just to buy things, we are going to be very disciplined with acquisition. You mentioned some of them that are extremely well received by the market, the biohaven, the arena, and we will continue doing that.