This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion. Conclusions and/ or potential strategies contained herein are NOT necessarily endorsed by Pfizer management. Any implied strategy herein would be subject to management, regulatory and legal review and approval before implementation.

Better Biotech Innovation by Improving the Ecosystem

MIT Startup Exchange (STEX)

Feb 26, 2015

Tim Charlebois Pfizer BioTherapeutics Technology and Innovation

Pfizer 2010+ An Aggregation of 25+ Companies!

2000 Agouron Gene/Networks

Hickson Int’l  Plc  

Institute Farmaco Biologico Pagni

Plaistow

+ + + +

American Home Products

A.H Robbins

+

1989

American Cyanamid

+

1987–88 +

1992 +

1994

Animal divisions of:

Kabi Pharmacia

Pharmacia AB

Upjohn Company

Sugen

1990

1995

Kelco Chemicals (1994) (1985)

+

1993 + +

+

+ Kabi Vitrum

1990 1997 1998 1999 +

2009

2003

– SmithKline Beecham Animal Health (1995) – Restivo Italiana (1994 – through Roerig) – Koshin Medical KK (1992)

– Vicuron Pharmaceuticals Ltd (2005) – Idun Pharma (2005) — Apoptech (1994) – CSL Ltd Animal Health Unit (2004)

1999

Pfizer Commercial Biologics and Vaccines

3

Pharma’s Fundamental Problem: Increased spending, less output = Less R&D Productivity

4

0

20

40

60

80

100

120

140

160

Worldwide Total Pharmaceutical R&D Spend

WW

Ph

arm

a R

&D

Sp

en

d (

$b

n)

+10.6% CAGR 2002-08

+2.3% CAGR 2009-16

0

10

20

30

40

50

60

70

FDA Approval Count (NMEs & Biologics)

Total mol. NMEs Biologics

No

. of

Mo

lecu

les

Ap

pro

ved

Source: EvaluatePharma April 30, 2010

Unsustainable Need new innovation model

Even for biologics, only ~ 10% of candidates make it to market. Often go deep into clinical development before recognize futility

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Preclinical Phase 1 Phase 2 Phase 3 Registration

61%*

42%

18%

60%

85%

75%

56%

44%

79% 79%

Small Molecules Biotherapeutics

Succ

ess

Rate

by

Phas

e %

Source: KMR, Bernstein Analysis

*Percentage means the probability that a compound progresses to the next phase

Cost/candidate:$10’s  of  millions $100’s  -1000s of millions

Accelerating Testing of Therapeutic Hypotheses Pfizer CTI: Partner & Enable Translational Research

6

CTI-Boston

CTI-New York

CTI-California

Cost/candidate:$10’s  of  millions

Effective integration of Science & Business in Deal Making: - Technical Diligence to be matched with appropriate partnering model

WRD’s  Approach  to  External  Partnerships: - Thoughtful integration of internal capabilities & external substrate

Evolution Towards an Entrepreneurial R&D Ecosystem

8

Academic Partnerships

Access to Proprietary Technologies and Compound Libraries

Venture Capital

Funding for Early Stage Products & Technologies

Joint Funding for Shared Interests

Disease Foundations

Public Partnerships

Pfizer Venture Investments

Co-Funding and Drug Re-Purposing

• Hospira: M/A to significantly  enhance  Pfizer’s  Global  Established  Pharmaceutical  Business  with Injectable drug, infusion technology and biosimilars

• Redvax GmbH: M/A for hCMV vaccine and another vaccine as well as technology platform • OPKO: Long-Acting hGH-CTP for growth hormone deficiency and growth failure • iTeo Therapeutics: collaboration on discovery and development of IDO1/TDO2 cancer

immunosuppression targets • Baxter: Acquire portfolio vaccines NeisVac, FSME-IMMUN/TicoVac • Merck-KGaA; Global strategic alliance to accelerate presence in Immuno-Oncology • Kyowa Hakko Kirin: Collaboration on combo Immuno-Oncology of Pfizer 4-1BB antibody and

KHK’s  CCR-4 antibody • InnoPharma: Build strong sterile injectable pipeline for oncology and CNS disorders • Merck: collaboration on study evaluating combo regimen  between  Pfizer’s  crizotinib and axitinib

with Merck PD-1 antibody • MedGenesis Therapeutics: collaboration on development of GDNF using convection

enhanced  delivery  (CED)  technology  for  potential  treatments  for  Parkinson’s  disease • Gliknik: Licensed Stradomer™  for  autoimmune  diseases • Philogen Therapeutics: Licensed Dekavil for autoimmune diseases

Recent Innovative Product Opportunities: We have been active!

Recent Innovative Technology Opportunities • Spark Therapeutics: To advance gene therapy for Hemophilia B; Launches Gene Therapy Unit

headed  by  Michael  Linden  from  King’s  College  London • Cellectis: Global strategic collaboration on proprietary allogeneic CAR-T Therapy • Circle Pharma: Seed funding to develop cell permeable macrocyclic peptide therapeutics • 23andMe: Research genetics of Ulcerative Colitis and Crohn’s disease • X-CHEM: multi-target collaboration on the potential development of several small molecule

programs for the treatment of inflammatory and orphan diseases • BioRestorative Therapies: Collaboration to study human brown adipose tissue and cell lines • Second Genome: Collaboration on Microbiome research initiative in Obesity • Merck Serono/Broad Institute: Research collaboration to identify biomarkers relevant to future

therapies in SLE and Lupus nephritis • Neoantigenics: Pfizer Seed Fund to develop antibody-based therapeutics for cancer • Saniona: collaborate on ion channel platform to research and develop small molecule treatment

for neurological disorders • CytomX: Global strategic collaboration to develop/commercialize multi-Probody™-Drug

Conjugates in Oncology • BIND Therapeutics: Global strategic collaboration to develop/commercialize Accurins with

select small molecule targeted therapies • Halozyme Therapeutics: Collaboration to develop/commercialize Enhanze™  technology  for  

Pfizer molecules

Recent Innovative Foundation Opportunities • Colitis Foundation of America: Collaboration on identification and support of the potential

development and translation of research in IBD • Epilepsy Foundation: Collaboration on personalized drug discovery platform for Epilepsy with

Intellimedix technology to improve disease Dx, accelerate drug discovery and personized medicine

• The Lieber Institute for Brain Development (LIBD): Participate on research consortium to analyze RNA, the genomic and epigenetic data to brain disorders in the hope of identifying potential new treatments

• Science Foundation Ireland (SFI): Promote biotherapeutic breakthroughs through academic-inductry collaboration

• JDRF: Join novel translational research in Type 1 diabetes • MD Anderson: Access  to  MD  Anderson’s  immunotherapy  platform • Cystic Fibrosis Foundation Therapeutics (CFFT): Collaboration to discover new drugs to

treat people with most common mutation of CF, Delta F508

Focus on Disease Areas With Strong Commercial & Scientific Potential

R&D Core Areas

CVMED1 Neuroscience Oncology

Specialized Areas

Biosimilars Pain & Sensory Disorders

Vaccines

Supporting  Research  Using  Various  Modalities…and  interested  in  partnerships http://www.pfizer.com/partnering/areas_of_interest/research_and_development

Inflammation & Immunology

Orphan & Genetic Diseases

1 Cardiovascular, Metabolic and Endocrine Diseases

Indefinite

Drug Discovery Preclinical Clinical Trials FDA Review Scale-up to Mfg.

Postmarketing Surveillance

1 FDA-Approved

Drug

0.5–2 Years 6–7 Years 3–6 Years

Number of Volunteers

Phase 1

Phase 2

Phase 3

5 250 ~ 5,000 – 10,000

Compounds

Pre-

Dis

cove

ry

20–100 100–500

1,000–5,000

IND

Sub

mitt

ed

ND

A Su

bmitt

ed

High Risk Process + 10–15 years + $1-2 Billion

Sources: Drug Discovery and Development: Understanding the R&D Process, www.innovation.org; DiMasi and Grabowski, The Cost of Biopharmaceutical R&D: Is Biotech Different?, Managerial and Decision Economics 28 (2007): 469-479.

Challenge:  the  risk  profile  is  killing  us… ..but we know we need to innovate!

Reflections on the Innovation Ecosystem in biopharmaceuticals- how is it evolving?

Academia Startups/biotec Biopharma

Scientific & technology innovation

Therapeutic product concepts and candidates Novel technology

Building value & developing

utility Products to

Patients

Who

Value

What

Clinical /technical development; supply Platforms and integration

Preclinical/early clinical trials ID applications & show feasibility

What is—and is not—working? Is risk appropriately distributed?

Academia Startups/biotec Biopharma

Scientific & technology innovation

Therapeutic product concepts and candidates Novel technology

Building value & developing

utility Products to

Patients

Who

Value

What

Clinical /technical development; supply Platforms and integration

Preclinical/early clinical trials ID applications & show feasibility

Most importantly, what are opportunities to improve?