Dear Shareholders:

I am pleased to report that Pfizer had another strong year in 2017. We delivered solid financial results, advanced our pipeline and enhanced shareholder value through prudent capital allocation decisions, and continued to strengthen our OWNIT! culture, which has become a true competitive advantage and growth driver for our company.

During the year we achieved growth in many of our anchor brands, including Ibrance, Eliquis and Xeljanz—all of which currently have market-leading positions and many years of patent protection remaining. We also continued to generate growth in emerging markets and in our biosimilars business. Our success in these areas helped us navigate an approximately $3.2 billion negative revenue impact due to the loss of exclusivity of certain brands and the divestment of Hospira Infusion Systems. We accomplished all of this while simultaneously returning $12.7 billion directly to shareholders through a combination of dividends and share repurchases.

One of our most important accomplishments in 2017 was the sustained progress in strengthening our R&D pipeline, which today is as strong as it’s ever been. We advanced 43 assets in our pipeline and received 10 approvals from the FDA—significantly more than we had achieved in any year in the past decade. Over the next five years, we see the potential for approximately 25-30 approvals, of which up to 15 have the potential to be blockbusters—subject to some expected attrition. We are excited about the unprecedented opportunity that this presents to have a life-changing impact on a growing number of patients while creating value for all of our stakeholders.

To help seize this opportunity, we continued to advocate for regulatory and legislative changes that will enhance our ability to innovate and ensure patients around the world have affordable access to our medicines. In 2017, Pfizer’s continued advocacy helped shape the discussion in Washington that ultimately led to the most significant and wide-reaching changes to the U.S. tax code in decades. The new tax code places U.S. multinationals on a more competitive footing, and overall it has strengthened Pfizer’s ability to make capital allocation decisions that maximize patient benefit and enhance shareholder value.

After evaluating the expected positive net impact the new tax code will have on Pfizer, we decided to take several actions.

• Over the next five years, we plan to invest approximately $5 billion in capital projects in the U.S., including the strengthening of our manufacturing presence in the U.S.
• We made a $500 million contribution to our U.S. pension plan in February 2018.
• We made a $200 million contribution to The Pfizer Foundation in the fourth quarter of 2017.
• We earmarked approximately $100 million for a special, one-time bonus for all non-executive Pfizer colleagues.

Ever since I became CEO in December 2010, we have worked diligently to establish a unique ownership culture within our company because we recognize that it is critical to sustaining Pfizer’s ability to innovate and grow. Our culture enables colleagues to have honest conversations, take thoughtful risks, be decisive in addressing the complex issues we face, and collaborate more effectively. It reinforces the value that diversity brings to an organization, the importance of addressing jerk-like behaviors in the moment to ensure they do not impair our personal interactions, and holding ourselves accountable to the highest standards of quality, compliance and integrity in all we do. In other words, it has established an environment where all colleagues feel fully empowered to bring their best selves to work every day for the benefit of patients, customers and shareholders.

I’m proud to say that in 2017, we continued to fortify our already strong culture, which is leading to even higher levels of colleague engagement. In fact, our annual colleague engagement survey produced an enviable 85 percent engagement score—among the highest in our industry. It’s this level of engagement that has helped us enter 2018 even better positioned to deliver new medicines for patients and value for our investors.

Our ownership culture also extends to our commitment to being a responsible corporate citizen. In 2017, Pfizer provided more than 60 million doses of our Prevenar 13 vaccine at a reduced price to countries served by Gavi, the Vaccine Alliance; we helped launch Access Accelerated, a global partnership working to improve access to treatment and care for non-communicable diseases (NCDs) in low- and middle-income countries; and in response to recent natural disasters, we provided product donations and cash grants to relief organizations, while delivering water, food, generators and other items to Pfizer colleagues’ families in Puerto Rico.

I want to close by thanking Pfizer’s more than 90,000 colleagues around the world for their commitment to Pfizer’s purpose, strategic imperatives and OWNIT! culture. Thank you also to our Board of Directors for their confidence in our leadership team, and their hard work, commitment and continued stewardship on behalf of our shareholders. And on behalf of everyone at Pfizer and our Board, I thank you for your continued support of the work we do every day to significantly improve patients’ lives. I encourage you to review this proxy statement and vote your shares.

Sincerely,

Ian C. Read
Chairman and CEO

We encourage you to read our 2017 Financial Report, which includes our financial statements as of and for the year ended December 31, 2017. Please also refer to our Annual Report on Form 10-K for the year ended December 31, 2017, including the sections captioned “Risk Factors” and “Forward-Looking Information and Factors that May Affect Future Results,” for a description of the substantial risks and uncertainties related to the forward-looking statements included herein.