PFIZER INC

See the Total Revenues––Selected Product Discussion section within MD&A for additional analysis and Note 13C.

Product Revenue Deductions––Our gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. These deductions represent estimates of the related obligations and, as such, knowledge and judgment are required when estimating the impact of these product revenue deductions on gross sales for a reporting period. Historically, adjustments to these estimates to reflect actual results or updated expectations, have not been material to our overall business and generally have been less than 1% of revenues. Product-specific rebates, however, can have a significant impact on year-over-year individual product revenue growth trends.

(a)The decrease in Medicare rebates in the third quarter of 2025 is driven by lower Paxlovid revenues following transition from the U.S. government agreement, partially offset by the impact of higher manufacturer discounts as a result of IRA Medicare Part D Redesign. The increase in Medicare rebates in the first nine months of 2025 is primarily driven by the impact of higher manufacturer discounts as a result of IRA Medicare Part D Redesign, partially offset by lower Paxlovid revenues. See the Overview of Our Performance, Operating Environment, Strategy and Outlook section within MD&A.

(b)The decrease in Sales returns and cash discounts in the first nine months of 2025 is primarily driven by lower sales returns provision for Comirnaty, partially offset by a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash Paxlovid revenue reversal of $3.5 billion recorded in the fourth quarter of 2023.

Product revenue deductions are primarily a function of product sales volume, mix of products sold, contractual or legislative discounts and rebates.

For information on our accruals for product revenue deductions, including the balance sheet classification of these accruals, see Note 1C.