Pfizer Ltd Management Discussions.

INDIAN ECONOMIC OVERVIEW

The year 2020 was defined by the singular and unprecedented event of COVID-19 pandemic. The rampant spread of this pandemic severely impacted global economic activity and triggered significant downside risks to the overall global economic outlook. The International Monetary Fund (IMF), in its June 2020 update of its flagship World Economic Outlook forecasted a ~4.9% global growth in 2020, 1.9% below its April 2020 estimate.

India, like other countries around the world, has been severely impacted. The IMF has projected a deeper contraction of 4.5%, for India for the year 2021, citing a more extended lockdown period and slower-than-anticipated recovery in the first half of 2020. Similarly, international rating agencies such as Moodys Investors Service, Fitch Ratings and S&P Global Ratings, have predicted a 4-5% contraction in Indias economic growth rate during the financial year 2020-21.

While assessing the exact impact on India is difficult, with the uncertainty on how long the pandemic would last and the economic impact of current lockdowns, there is hopeful anticipation of a U-shaped recovery.

Recovery is expected to manifest in different sectors in different ways. It is expected that the countrys economic recovery is going to be led by rural sector which in turn may feed into manufacturing sector as well. The depth of the slowdown would present an opportunity to the companies to rebound and recover, though the road back today will be steeper.

With an overall stringent restriction on movement, specific industries will face pressure as rising debt and defaults affect market sentiments, stress the financial sector and reduce domestic demand.

Current Healthcare and Pharmaceuticals Environment

Like every other industry, the Healthcare Industry was no exception to the challenges faced due to COVID-19 lockdown and the resultant restrictions. The global pandemic led to a significant impact on the Healthcare Industry resulting in a drastic reduction in the outpatient footfalls in hospitals. This coupled with postponement of elective procedures by patients have adversely impacted the healthcare sector.

The Indian pharmaceutical sector was poised to grow at a CAGR of 9.3% (+2.0%), reaching Rs.2,39,620 Crore by 2024.

However, the COVID-19 outbreak and its rapid spread across the globe has had both a direct and an indirect impact on the pharmaceutical industry. The uncertainty around its containment is expected to impact healthcare demand, disruptions on supply chain and changes to macroeconomic outlook.

In the 2020-21 Union Budget, the government allocated Rs.67,484 Crore to healthcare, a modest 5.7% increase from the previous year. However, India continues to fall short of achieving the target of spending 2.5% of GDP on healthcare by 2025. While the government is stepping up its efforts to broaden access to subsidised healthcare, the progress, however, is expected to be gradual and patients will continue to foot the majority of the national healthcare bill.

With the roll-out of the government-funded Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and growth of private health insurance market, a proportion of the population with access to some form of health insurance cover may increase in the coming years. Private clinics, however, will remain dominant providers of primary care. The Government is putting efforts to strengthen public provision to shift focus from treatment to prevention and effective disease management. The government plans to create a network of 1,50,000 health and wellness centres by 2022, offering free access to comprehensive primary care services. Around 29,000 such centres are reported in operation as of January 2020.

Indian Pharmaceutical Industry Market Overview:

The Indian pharma market (IPM) grew at 10.8% over the April 2019-March 2020 period, with a turnover of Rs.1,50,153 Crore. The growth was primarily driven by price, which contributed 5.2% to the total, followed by new products at 3.2% and volume at 2.4%. Multinational companies hold about 20% share in the market and have grown at 7.4%.

Therapeutic Growth:

Anti-infectives continues to be the top therapy area within the Industry. Respiratory segment has the highest growth rate of 14.5% among the key therapy areas. The Acute Care segment is growing at 10.4%, which has improved over last years rate of 9%. Key growth drivers for the acute market have been Anti-infectives, Pain and Respiratory. Chronic segment has maintained its growth at 12% with both Cardiac and Anti-Diabetic therapies continuing to post double-digit growths.

COVID-19 Impact on Pharmaceutical Industry:

The impact of COVID-19 is visible on the performance of the Industry as month-on-month growth has slipped to 5.4% (Mar20) from 14.5% (Feb20). The healthcare sector is at the epicenter of this unprecedented global pandemic challenge. There has been a significant drop in both in-patient and out-patient footfall for private hospital chains, be it a single specialty, multi-specialty, tertiary-care hospitals or even diagnostics. Impact is lesser on chronic therapies as patients have stocked up on essential medications to prepare for extended lockdowns. With the emerging COVID-19 situation, the Industry has severely suffered as IQVIA has projected growth for MAT December 2020 between 0.8% to 2%. However, a fair degree of recovery is expected in 2021, and the Industry may yet achieve its Pre-COVID-19 growths. Early monsoons too may result in uptake of Anti-Infectives which will further boost co-prescribed therapies like Vitamins, Pain and Gastro.

The ongoing COVID-19 situation has brought some degree of Government focus on bolstering the healthcare infrastructure and modernizing policies, particularly those related to ease of regulatory eco-system. The COVID-19 pandemic has served a stark reminder that economies can be brought to a grinding halt, if public healthcare systems are inadequate, clearly demonstrating the need for increased investment in the Sector. Should this focus on strengthening healthcare in India continues, it may have an overall positive impact on the healthcare and pharmaceuticals industry in the country.

AN OVERVIEW OF THE OPERATING ENVIRONMENT

The Government expended significant efforts to ease up and help resolve operational challenges faced by the Industry resulting from COVID-19 related disruptions. The Department of Pharmaceuticals played a key role in maintaining a high degree of engagement with the Industry Associations, resolving roadblocks that challenged the manufacturing and transportation of medicines at federal and state levels. Consequent to the efforts of the Industry and partnership role played by the Government, there were no major incidents of any shortage of essential medicines during the peak of the COVID-19 related lockdowns in the country.

Looking at the bigger picture, the Governments efforts for providing access to affordable and quality healthcare to the poorest sections of the society has seen a boost due to the continued rollout of the AB-PMJAY scheme across the country. There is also an increasing focus on simplifying regulatory processes so as to make it easy for innovative therapies to be produced and/or launched in India.

During the year under review, a number of areas of policy and public healthcare programming were taken up by the Government.

Process for Revision of the National List of Essential Medicines (NLEM) and Price Controls:

The Government constituted a Standing National Committee Medicines (SNCM) and initiated the process of revision of the NLEM 2015 in areas including cardio-vascular diseases, oncology, respiratory diseases, anti-microbial resistance etc. Simultaneously, the SNCM undertook external stakeholder consultations wherein various stakeholders including industry associations shared their views regarding the revision. A specific stakeholder consultation was held focusing on anti-infective agents aligning with anti-microbial resistance. Your Company as well as various Industry Associations have made representation to the SNCM, providing evidence-based arguments for consideration. In view of the COVID-19 pandemic, the SNCM has also been urged to postpone implementation of the revised NLEM to 2021.

Intellectual Property Rights (IPR) Protection:

IPR protection continues to be an area of interest for your Company. The Industry has been in discussion with the government on various IPR issues at different forums and has raised concerns on pending reforms. In particular, the current provisions of pre and post grant oppositions that significantly delay the launch of innovative therapies in the country, lack of a patent information system that prevents innovator companies from defending their IP and gaps in IP enforcement, including the illegal inflow of patented molecules to India from neighboring markets, are some of the issues raised at multiple platforms with the Government. Meaningful IP reforms would help provide an enabling environment that promotes and protects innovation in India.

Drugs and Magic Remedies (Objectionable Advertisements) (Amendment) Bill, 2020:

The Ministry of Health and Family Welfare, Government of India initiated early discussions on amendments to the DMR (OA) Amendment Bill 2020, in order to keep pace with the changing times and technology. Your Company had strongly advocated for amending this Act such that capacities and capabilities of the private and not-for-profit sectors can be leveraged to strengthen and expand the Governments health awareness and preventive health campaigns and initiatives.

Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and Role of Pharma Industry:

During the year under review, the National Health Authority (NHA), the implementing agency for AB-PMJAY, undertook a comprehensive review of the Health Benefit Packages (HBPs) of various specialties by constituting 24 Specialist Committees. These Committees evaluated the existing HBPs in order to remove aberrations, recommended inclusions and exclusions and advised on the cost of each HBP, among others. The recommendations after review by the NHA Review Committee were announced as HBP 2.0 in October, 2019; by March 31, 2020, seven states had adopted it and the expectation is that more states will be covered in the coming year. Your Company continues to advocate for greater partnerships between the AB-PMJAY program and the private sector to help a broader availability of innovative therapies to the programs beneficiaries.

Regulatory system strengthening:

The Central Drugs Standards and Control Organization (CDSCO) is aspiring to transform the Indian regulatory system to Stringent Regulatory Authority (SRA), as outlined by WHO and at par with the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH). It is vital to strengthen the drug regulatory system in the country through identification of gaps and monitoring regulatory activities, to gain the trust of the public on the system and ensure that the drugs manufactured and marketed in the country are safe and effective.

Overall, the operating environment in India was defined by an immediate and short-term focus to resolve COVID-19 related bottlenecks and minimize disruption of manufacturing, supply chains and availability of medicines.

Over a longer term, your Company believes that a positive environment would entail focus on several key priorities, viz.:

Enhancing Access by creating opportunities and frameworks for partnerships with the private sector in flagship Government programs such as Ayushman Bharat and Jan Aushadhi program.

Evolving from traditional drug pricing regulations to make room for modern models such as tiered pricing while simplifying onerous provisions of price implementation.

Making Indias IP eco-system among the best in the world by addressing long awaited reforms on IP laws and plugging gaps in IP enforcement.

Removing or simplifying archaic policies and practices, in particular, those that prevent private and not-for profit organizations from raising awareness on prevention of diseases and a simplification of regulatory systems.

Review of Strategic Alternatives for Upjohn Business

Pfizer Inc., USA had announced on July 29, 2019, that it had entered into a definitive agreement to combine its Upjohn Business which consists off-patented branded and generic established medicines with Mylan N.V., thereby creating a new global pharmaceutical Company. It may be noted that five brands currently marketed by Pfizer Limited in India, viz., Lyrica, Amlogard, Daxid, Dilantin and Viagra are expected to be a part of this combined entity. The transaction is anticipated to close in mid-2020, subject to regulatory approvals and satisfaction of other customary closing conditions.

Review of Strategic Alternatives for Global Consumer Healthcare Business

Pfizer Inc., USA had announced on October 10, 2017, that it was considering a review of strategic alternatives for its Global Consumer Healthcare business. Further to this, in December 2018, Pfizer Inc. had announced the formation of a joint venture between Pfizer Inc. and GlaxoSmithKline Plc. to create a premier global consumer healthcare company with robust iconic brands.

On July 31, 2019, Pfizer Inc completed the transaction in which Pfizer Inc and GlaxoSmithKline (GSK) combined its respective consumer healthcare businesses into a new consumer healthcare joint venture that operates globally under the GSK Consumer Healthcare name. The Joint Venture is a category leader in pain relief, respiratory and vitamins, minerals and supplements, and therapeutic oral health and is the largest global OTC consumer healthcare business.

Your Company had been informed by Pfizer Inc. that the brands Anne French and Anacin which are currently marketed by your Company will become part of the portfolio of the Joint Venture Company.

Thane Plant – Business Transfer Agreement

In September 2015, the Company entered into a Business Transfer Agreement (BTA) for transfer of the Companys manufacturing facility at Thane as a going concern. The BTA will be concluded upon receipt of all necessary approvals.

REVIEW OF OPERATIONS:

COVID-19 impact on Business Operations:

COVID-19, a pandemic caused by the Novel Coronavirus, has emerged as an unprecedented challenge globally and to the pharmaceutical companies in particular, who have a responsibility towards public health. As a participant in this eco-system, your Company has taken a number of steps to respond to this unique situation and ensure supply of essential medicines to its customers. The Companys Goa Plant continues to remain operational at almost its usual capacity while strictly following the protocols on social distancing and providing safe working environment to its workforce at the Goa Plant.

There has been no significant adverse operational impact on the Companys supply chain during March 2020 due to the nationwide lockdown imposed by the Government of India in view of COVID-19. The Company has monitored the impact of COVID-19 on all aspects of its business. In view of the continued uncertainties and its inability to predict the extend and duration of COVID-19 situation, the Company currently is unable to predict any future impact on its business operations. Your Company will continue to ensure supply of essential medicines and take steps to mitigate any risks associated with COVID-19 pandemic.

The Company transitioned into a full Work From Home model and several measures were put in place for communications, technology and productivity improvements to help employees cope with this change. The Company also made various contributions to Government, health department, public healthcare workers, etc., as part of its COVID-19 CSR initiatives.

COVID-19 insurance coverage to Stockists:

As the world continues to battle the unprecedented challenge of COVID-19, your Company played an effective role to ensure that every patients has access to the medicines they need. During this time of fear and contagion, your Company also ensured that the Stockists and their employees, who selflessly dedicate their services as a shining example of the nobility of the profession of healthcare, are protected in case of any unfortunate COVID-19 related situation.

Your Company partnered with a leading insurance and risk management service firm, to provide its Stockists and their employees a special complimentary COVID-19 Insurance Cover to take care of COVID-19 treatment costs for a period of one year. This would benefit approximately 25,000 Stockists and their employees across the country.

This goodwill gesture towards our trade partners has been widely appreciated. While your Company hopes and prays for the safety and good health of its Stockists and their employees, we are sure that this step would ease their financial concerns and help them focus on the need of the hour-to ensure supply of essential drugs to the needy patients.

Business Operations:

Your Companys commercial operations are conducted through distinct business units that focus on clearly defined therapeutic areas. Between these business units, your Company collectively addresses 15 therapy areas with a portfolio of over 150 products that include therapeutics and vaccines.

1. Vaccines:

The Vaccine business focuses on Prevenar13, a pneumococcal conjugate vaccine that is administered to children between 6 weeks to 17 years and adults above 50 years of age. This vaccine provides broad coverage against the most prevalent 13 serotypes of streptococcus pneumoniae.

Your Company continues to enjoy a leadership position in the pneumococcal vaccines market with a share of 61%. With its continuing preference among Pediatricians, Prevenar 13 is now the 13th ranked brand in the Indian Pharma Industry.

In India, the incidence of community-acquired Pneumonia (CAP) is 4 million cases a year with up-to 20% requiring hospitalization. The burden of the disease is higher amongst children, individuals who are suffering with underlying chronic conditions and those with age-group above 50.

Your Company, being a leader in the pneumococcal vaccines market is committed towards creating awareness, education and make vaccines available so that more individuals can be protected against devastating pneumococcal infections.

To support Healthcare Professionals (HCPs) with robust scientific updates and global best practices, your Company conducted a large number of experience-sharing initiatives by enlisting the support of international speakers.

Your Company partnered with parenting health portals and e-commerce platforms to create awareness and education of pneumococcal vaccination amongst parents. Understanding that such initiatives help individuals realize the value of vaccination, your Company extended the program to e-Pharmacies, YouTube and dedicated health portals. The team also created digital awareness resources such as Fight Pneumo microsite and a toll-free number from where additional information on vaccination can be obtained.

Availability of vaccines for adults is a critical step to complete the circle of protection. Hence, your Company partnered with approximately 100 hospitals across India to encourage them to deploy adult vaccination centers – a dedicated unit from where information on adult immunization can be obtained and vaccination be administered. Your Company has an ambition to expand such strategic partnership to protect more lives against pneumococcal disease in the future.

2. Inflammation and Immunology:

The Inflammation and Immunology vertical makes available medicines to patients suffering from chronic diseases related to immune system like Rheumatoid Arthritis, Psoriasis, Psoriatic Arthritis, Ankylosing Spondylitis and Internal Bowel Diseases. These advance therapies include drugs made from protein-cytokine, and oral therapies that manage inflammation and pain.

The goal of this team is to transform the management of chronic inflammatory diseases, many of which are poorly managed by existing treatment options that provide only symptomatic relief.

Your Company has two products in the Rheumatology therapy area:

Enbrel is the first Tumor Necrosis Factor (TNF) inhibitor launched across the globe for chronic indications like Rheumatoid Arthritis (RA), Ankylosing Spondylitis (AS), Psoriatic Arthritis (PsA), Psoriasis (PsO) and Juvenile Idiopathic Arthritis (JIA). Till date, this auto prefilled injection that can be applied subcutaneously among all age groups, has impacted the lives of over 6 million patients worldwide.

Enbrel is currently prescribed by Rheumatologist, Dermatologist, Pediatric Rheumatologist and selected orthopedic treating physicians in India. Your Company played a key role in maintaining the growth of this 20-year old brand via various medical marketing initiatives like

Train the Trainer, Case Based Discussions and Communication campaign focusing on safety and efficacy, etc.

Launched in India in 2016, Xeljanz (tofacitinib), is the first oral Janus Kinase (JAK) inhibitor, a type of medication that functions by inhibiting the activity of one or more of the Janus kinase family of enzymes, launched for chronic conditions such as RA. Today Xeljanz is the market leader in the ORAL Category with 12% Market share. Being Oral Medication, it does not require cold storage, it is safer compared to TNFs and has ease of compliance.

In recognition of its growth and the unique digital awareness program built around it, Xeljanz was also recognized as the "Best New Product Launch Brand" by the Industry Association OPPI in 2019. In its efforts to shape the ORAL category, your Company rolled out medical-marketing initiatives like Experience Sharing Meetings, RA Summit, TOFACON, National & Regional Experience Webinars, Meet the Masters and other scientific driven engagements.

One of the stand-out initiatives launched by your Company was the creation of Asias largest Facebook community called All About Arthritis – a platform to create awareness on quality of life, symptoms and management for patients suffering from arthritic diseases. The community today has over 100k followers. Additionally, your Company launched first-of-its-kind in-clinic and digital patient reach program where patients along with physicians share their success stories with other patients.

3. Internal Medicine:

In the third quarter of FY19-20, your Companys Internal Medicine (IM) team framed a new mission for the next five years and developed a strategic roadmap – "To deliver sustainable, market-beating growth for core brands enabled by innovative go-to-market strategy and accelerate growth with new launches in relevant specialties". The team undertook a significant restructuring exercise to build an organization poised to deliver the envisaged strategy through a three pronged strategic approach:– a specialty focus that leverages the strength of science; a targeted approach where different go-to-market solutions are deployed that are customized to respective territories and a business model that delivers sustainable growth.

Consequently, the Internal Medicine business was categorized into three focus areas based on multiple parameters, including the nature of current business, population density, analysis of prescribing Healthcare Professionals (HCP) universe and potential for future growth. With these changes and a new leadership team in place, the Internal Medicine team is well poised to deliver sustainable market beating growth for each of its key portfolios.

Respiratory Portfolio:

Your Company has a 9.8% market share in the respiratory segment with its flagship brand Corex Dx that has maintained leadership position in the dry cough RPM with 15.2% market share with value growth of 11% and prescription growth of 23%. With continuous focus and growth, the brand is now part of the prestigious Top 100 brands of the IPM. As part of future growth strategy, your Company continues to focus on building brands in the wet cough segment with line extensions of Corex LS and Corex LS Junior. In the OCS segment, your Company has maintained our 7% market share with focus on prescription-led growth with 5% prescriber growth.

Vitamins Portfolio:

Your Companys flagship brand Becosules continues to lead and shape the B-complex vitamins market and has a strong prescriber base of ~60,000 doctors. With a legacy of more than 60 years, the brand is still growing faster than the market with an Evolution Index (EI) of 102, which has resulted in moving its market share to 73.3%. Continuous focus on expanding the prescriber base and innovative channel initiatives have been the key pillars to strengthen the brands leadership.

Neuroscience and Cardiovascular:

Your Companys Neuroscience portfolio represents multiple brands that are leaders in their respective segments. Pacitane leads in its respective therapeutic category with 70% market share. Ativan (Lorazepam) is the second largest anxiolytic brand in the Benzodiazepine Tranquilizer market. During this year there has also been renewed focus on the smoking cessation drug Champix with dedicated efforts on HCP education, capacity building and also providing end-to-end solutions for smokers in their Quit Journey through awareness programs, etc.

The Cardiovascular (CV) team operates in the anti-hypertensive segment with its brand Minipress XL.

Your Company continued its engagement activities in the area of uncontrolled hypertension through medico-marketing meetings with Nephrologists and Physicians on treating hypertension in people with chronic kidney disease. Over 2500 healthcare practitioners were involved in various educational initiatives.

Eliquis:

Eliquis (Apixaban) a Factor Xa Inhibitor Anticoagulant is a leading oral Anticoagulant, predominantly prescribed by Cardiologists and Neurologists. Eliquis is the leader in the NOAC Market, with an EI of 139. Eliquis grew by 91% over last year same period as per MAT Mar 2020.

During the year under review, the team has bought in extraordinary focus on the brand through a dedicated unit that is focused on building brand Eliquis. The new go-to-market model enables your Company to drive significant patient outcomes through maximizing reach and effort at core specialty of cardiology.

Your Company has been on the forefront of leading scientific education programs like International speaker programs, Masterclasses, Cardio-Neuro Connect programs, AUGUSTUS round table meets, AF live webinars etc. which have helped improve the overall management of patients with Atrial Fibrillation. Over 3000 Cardiologists and Neurologists have been engaged in various educational initiatives. During the year in review, Eliquis has made significant progress to attain its leadership in the top 200 Hospitals of the country.

Womens Healthcare:

Your Companys portfolio in Womens Healthcare comprises many of the segments iconic brands, supporting important life-stages like pregnancy and overall reproductive health. Brands like Folvite, Autrin, Premarin and Ovral L continue to maintain their leadership position in the represented market and the consolidated portfolio continues to grow faster than the market average.

Partnership with reputed institutions and societies like Federation of Obstetric and Gynaecological Societies of India (FOGSI) and Indian Menopause Society have helped drive engagement of a large number of Gynecologists through tailor-made programs in the areas of reproductive health, maternal nutrition and menopause, through Indian and global experts, engaging large number of Gynecologists.

Your Company collaborated with FOGSI and Spina Bifida Foundation for comprehensive maternal and reproductive health, driving awareness and HCP training on the importance of maternal nutrition to prevent birth defects and better diagnosis via point-of-care detection kits, which provide instant hemoglobin readings. Brands like Folvite and Ovral-L continue to grow strong. New launches in the portfolio continue to be the fastest growing with an EI of over 100. Folvite DHA is now ranked third (out of 59 brands) and Folvite Active is ranked seventh (out of 73 brands).

Gastric portfolio:

Your Company has made strong strides towards the consolidation of its gastroenterology portfolio, spearheaded by the PPI (Proton Pump Inhibitor) brand Neksium, by driving relevance at a specialty level. Neksium continues to be one of the fastest growing NIs in its represented market, with imminent potential for growth through preferential share gain amongst gastroenterologists.

Other leading brands such as Gelusil and Mucaine have further entrenched your Companys dominance in the gastric therapy, displaying market beating growth and registering the highest market share in last 12 months.

4. Hospitals

Your Companys Hospitals business unit focuses on institutions such as hospitals and nursing homes with an advanced anti-infectives and sterile injectables portfolio. The year under review stood out with the team launching two new and breakthrough innovative therapies from Pfizer Incs global portfolio in India.

Zavicefta

In 2019, the team launched Pfizers original breakthrough innovative and patented drug Zavicefta 2gm/0.5gm (ceftazidime-avibactam) and has already recorded a business of over Rs.9 Crore in the first nine months of launch. This novel drug is indicated for the management of hospital-acquired pneumonia including ventilator-associated pneumonia (HAP/VAP), complicated intra-abdominal infection (cIAI) and complicated urinary infection (cUTI) in adults. The emergence and spread of carbapenemase-producing pathogens are a concern and has highlighted the urgent need for new antimicrobial agents. Zavicefta is the first anti-infective launched by your Company in a decade and represents the cutting edge of our medical research and innovation.

Zinforo

The team has also recently launched Zinforo (ceftaroline fosamil)-a novel cephalosporin indicated for treatment of adult patients with community-acquired Pneumonia.

This introduction further strengthens our commitment to bring to our stakeholders the very latest of medical innovation in anti-infectives. Community-acquired Pneumonia features second in the list of most common cause of mortality due to infectious diseases in India with 25% mortality rate in the ICU. With its activity against Streptococcus pneumoniae, which is associated with a significant burden of the disease, Zinforo provides the benefit of early response within four days.

The Team believes that the launch of Zavicefta and Zinforo is an excellent example of how your Company is focusing on key therapeutic areas to achieve our purpose of bringing breakthroughs that change patients lives.

During the year under review, this business unit made significant progress to attain its "Leadership in Hospitals" goal. Several interventions were made to consolidate this leadership position, such as roll-out of Antimicrobial Stewardship programs to encourage appropriate use of antibiotics in hospitals which has been identified as a key requirement for hospitals across. The Hospital Category

Market data source: IQVIA TSA MAT March 2020 also engaged with stakeholders beyond doctors in the hospital to gain collaborative insights to become value partners for these institutions.

The team revamped its go-to-market model to bring in a customer-centric approach, focusing on key hospital institutions to maximize opportunity and effort for the multi-brand portfolio. The Hospital category maintained its leadership in represented markets and four brands are currently leaders in their molecule segments with a double-digit growth of 14%.

The category has a strong presence across the anti-bacterial continuum, ranging from beta-lactam/ beta-lactamase-inhibitor (BL/BLI) products to high-end anti-bacterial products. Amongst these, Magnex is the leading brand with approximately 5% market share by value in the represented market segment and has posted a growth of 19% vs last year. In 2017, the team acquired and launched the brand Meronem, an injectable antibiotic indicated for the treatment of serious bacterial infections which are difficult to treat due to resistant pathogens. Meronem enjoys over 6.8% market share by value in the represented market and has posted a growth of 6% vs last year.

5. Consumer Healthcare

Your Company rolled out various trade initiatives for Anacin and retained focus on differentiated packs for different geographies to enhance retail penetration. Mass point-of-sale material was used in-store to improve brand visibility.

Your Company sustained its brand communication and messaging for Anne French to strengthen brand relevance for consumers. The media mix was strengthened with the addition of digital channels to expand consumer outreach. Local visibility was improved through regular display campaigns rolled out at key retail outlets to ensure in-store brand presence.

DIGITAL MARKETING

Your Company is dedicated to delivering new and innovative solutions in Digital Marketing. During the year under review, the initiatives focused beyond scaling reach and frequency with HCPs: to provide credible human health information to patients and caregivers.

The Team has built a strong eco-system of digital opportunities in alignment with global initiatives and delivered ~1.9 million touchpoints with HCPs through Virtual Promotions across therapies. The team has also undertaken social media community building efforts for patients and caregivers such as ‘All About Arthritis on Facebook with over 100k followers. The Vaccines portfolio leveraged the power of video content marketing by leveraging YouTube to build awareness with ~1.9 million video views.

Your Companys Digital Marketing efforts stood out during the months impacted by the COVID-19 pandemic, where your Company has virtually reached over 22,000 HCPs across specialties on third party online initiatives. Further, your Company delivered over ~1.9 million communication impression to covered and uncovered HCPs across online marketing platforms.

In other digital initiatives, the team has demonstrated reach and frequency with trade partners with access to over 300K digital touchpoints for offers, promotions, etc.

MANUFACTURING OPERATIONS

Overview

Your Companys manufacturing operations are carried out in full compliance with local laws and in line with the stringent Global Pfizer Quality and EHS standards. Your Company has taken stringent measures to ensure that there is no disruption in production due to the COVID-19 pandemic. Your Company has ensured that all colleagues maintain a social distance of minimum two meters during transportation and manufacturing operations. Other measures including daily thermal screening of all employees entering the site, provision of mask for all employees and placing of sanitization dispensers across the site, are being followed. Your Companys plant in Goa was categorized as an ‘essential service and thus remained operational even during the lockdown.

People

Over the past year, your Company conducted several programs and initiatives to train and motivate colleagues to deliver best-in-class performance, including Integrated Manufacturing Excellence Program (IMEx) for leaders, Six Sigma Green Belt training and Operational Excellence trainings.

Environment Sustainability

Your Companys continued focus on renewable resources has created an excellent model for environmental sustainability through which effort is made to reduce waste and a strong emphasis is put on conservation of resources across manufacturing site. The Goa Plant follows stringent global safety, environmental health and hygiene requirements and this year has received a number of awards including award for Excellence in Environment Sustainability.

Your Company installed one 50 KW Hybrid Renewable Energy plant consisting of 45 KW Solar Photovoltaic cells and one 5 KW wind turbine. Your site is planning to install another 70 KW Solar Energy plant in the coming year.

The Plant continued its drive towards energy conservation initiatives including replacement of old manufacturing operations machines with high-efficiency machines thereby reducing energy consumption. Your site also replaced old dehumidifiers with new generation high efficiency units to conserve energy. These initiatives have resulted in significant reduction in power consumption and carbon footprint.

MEDICAL AFFAIRS

The year under review was attributed to transformation, leadership and Delivering first-in-class Science and Winning the Digital Race in these unprecedented times for the Medical Team. The Team partnered with a large number of healthcare practitioners, medical institutions and associations as relevant to each business line and remained committed to delivering impactful insights and disseminating medical knowledge to meet the ultimate goal of improving patient care. Additionally, the team has been agile in disseminating timely appropriate information on COVID-19 through a multispecialty panel discussion.

A. Medical Education

During the period under review, the team delivered first-in-class science to 14,000 HCPs through various initiatives including general physicians (ECHO), consulting physicians, neurologists, cardiologists (AF Connect), gynecologists (partnership with SBF and ESI), gastroenterologists (GUTS), nephrologists (Nephro Connect) and psychiatrists (Psychiatry Connect) via face-to-face and virtual meetings.

Your Company developed case-based modules in partnership with the Academy of Infection Management (AIM), a non-profit UK-based organization that aims to conduct educational programmes and help improve health outcomes in infectious disease. The modules were rolled out to HCPs across varied specialties, to combat the menace of AMR. The team partnered with medical professional associations for antimicrobial stewardship for training of clinicians (AIM), nurses (CCNS) and pharmacists (IPA), and management of fungal diseases (FISF) and continued Antimicrobial Testing Leadership and Surveillance (ATLAS) at nine institutes PAN India.

To strengthen your Companys leadership position in private hospitals, the team conducted 42 programs (Pharmacy Academia, Virtual Preceptorship Program with International expert, and Nursing Academia) in 40 key institutes across India, training over 1200 pharmacists and 300 nurses. The team has also supported ID Fellowships in order to improve the capability for management of infectious disease in the country.

Additionally, the team also conducted six "IN IT TOGETHER: Medical-to-Medical update webinars" to reach over 60 rheumatologists and dermatologists covering recent updates in rheumatology through patient registries, guideline updates and Pfizer efforts during the COVID-19 pandemic. The regionally-hosted webinars were leveraged for updating the clinician fraternity to reach out to more than 100 rheumatology experts.

The team hosted 135 virtual meetings with 7500 pediatricians at their clinics disseminating information on pneumococcal disease, the current practices in pneumococcal disease and prevention.

B. Insights Generation

Your Companys Medical team conducted multiple advisory board meetings with an objective to gain structured insights engaging 150 HCPs across specialties like cardiologist, neurologists, ID specialist, nephrologist, pulmonologist, rheumatologists, dermatologists, hematologists and pediatricians. Additionally, the team also gathered insights on new clinical evidence on oral anticoagulants in high risk patients with AF as well as recently published clinical trials-AUGUSTUS and ARISTOPHANES.

C. Data Generation and Publications

During the period under review, the team contributed to valuable and extensive data generation and has been presenting at scientific conferences and submitted for publishing in science journals.

The team collaborated with the Indian Academy of Pediatrics on ACVIP guidelines on Immunization during COVID-19 pandemic, the scientific discussions helped justify the medical value of vaccination with pneumococcal vaccine. Additionally, a chapter titled "Vaccine Industry and Manufacturing of Vaccines" in the third edition of "IAP textbook of vaccines" was released in January 2020.

The team published posters on clinical and scientific outcomes in renowned publications and forums. The team published the papers on "in vitro activity of tigecycline", "expert review and recommendations on rational use of proton pump inhibitors" (JAPI), and "pharmacogenomics and treatment resistant depression" (Indian J Private Psychiatry). Additionally, a few manuscripts on antacids and uncontrolled hypertension are under review.

The team also worked towards publishing first-of-its-kind Indian long-term extension experience for up to seven years for Indian subset of patients in global clinical trials. The article titled "Tofacitinib in the treatment of Indian patients with rheumatoid arthritis: A post hoc analysis of efficacy and safety in Phase 3 and long-term extension studies over 7 years" was published in the International Journal of rheumatic diseases.

HUMAN RESOURCES

Faced with the unprecedented disruption caused due to the COVID-19 pandemic, your Company has responded with agility to facilitate a smooth transition, enabling all our employees to safely work from home alongside maintaining business continuity.

The team continued to leverage the power of digital platforms to hire and on-board all our new hires, thus ensuring minimal disruption to the employee experience.

To ensure that the employees and their families continue to stay safe and protected during this phase, your Company extended a special Pfizer COVID Care Plan for employees and their spouses, along with reimbursement of COVID-19 testing for employees and their eligible dependents.

During this time, your Company also launched a Telemedicine facility for its employees and their families which they can avail to tele consult with healthcare professionals from the comfort of their homes.

The crisis is putting to test not only our physical, but also our mental and emotional resolve. Keeping this in mind, your Company partnered with a global technology platform to provide physical, mental and emotional well-being services at no cost to employees.

Overall, the HR team focused on four key priorities:

A. Attracting Talent

Strengthening our Employee Value Proposition (EVP):

In line with your Companys Bold vision of Unleashing the Power of our People and making Pfizer an Amazing Workplace for all, the team began the journey of co-creating Pfizers Employee Value Proposition in partnership with a leading external partner, a cross-section of internal colleagues and those who aspire to be associated with your Company. The newly-crafted Employee Value Proposition conveys your Companys purpose and embodies the values as an employer. The Employee Value Proposition campaign will bring alive the tenets of Pfizers meritocratic culture driven by equity and joy and will proclaim as an Employer of Choice in the marketplace.

Pfizer Sales Training Program: Every year, your Companys HR team partners with the commercial teams to induct bright, young talents with a flair for sales and the zeal to learn and build their career in the pharmaceutical industry. With the objective of infusing young talent into the organisation, improving gender diversity and being future-ready, the ‘Pfizer Sales Trainee Program continues to attract high potential graduates from campus. These cohorts of fresh graduates are supported by a strong induction plan titled ‘Campus to Corporate, followed by a strong learning journey for a 12-month period.

Differentiated Rewards Approach for Diversity Hiring:

Your Company believes that a diverse workforce is a key enabler for it to unlock its full potential. Your Companys women colleagues in the field are the brand ambassadors, capable of inspiring their peers to embrace a career in pharma sales. With this in mind, the team launched a ‘Women as Allies for Women initiative. Under the aegis of this initiative, your Companys referral policy was made more attractive, encouraging the women workforce to refer fellow women peers from their network to earn double the referral amount.

B. Developing Talent & Capability

Building a Strong Career Architecture: Your Company is committed to identifying and developing talent from within, ensuring that its employees get the right experiences and development opportunities to that prepares them for the opportunities in the future. The current Sales Career Architecture was thus revamped, based on feedback of employees and the evolving needs of your Companys businesses. The new framework ensures a well-rounded approach to identifying and assessing potential for future commercial leadership roles. The selected talent pool of high potential colleagues is then put through a well-crafted, bespoke development journey aimed at preparing them to take on leadership roles in the future.

Launch of the Learning Architecture: With continued focus on developing managerial capability using a structured approach, a personalized learning journey, SANKALP was launched for those colleagues who demonstrate managerial potential. SANKALP is designed to promote self-growth and development through a blended learning approach which includes an appropriate mix of on the job, peer to peer, classroom/online as well as self-paced learning. The program aims at enabling a colleague to make a successful transition from being an individual contributor to becoming a manager of a team.

Enabling Managers to Own the Employee Experience:

Managers are the last mile experience of Pfizer for colleagues today. It is thus important that your Companys managers are fully equipped with the right tools and information to make these experiences rich and positive. With this endeavor, your Company launched a Conversations That Count capability building program that aims to facilitate a deeper understanding of the key employee life-cycle events and the role that managers play to bring alive the Pfizer Values with the right level of engagement.

C. Creating an Inclusive Environment & Focusing on Employee Wellness Creating an Inclusive and Safe Environment: Your Company is committed to building a workforce that is as diverse as the patients and communities that we serve. Towards this, your Company has prioritized Gender Diversity as a core area of focus and has committed to double the number of women colleagues in field and increase the representation of women colleagues in the India Leadership Team. In the field, your Company has earmarked headquarters that are safe and conducive for women colleagues and are working towards enhancing the representation of women substantially in these headquarters. To ensure a safe and supportive work environment to women colleagues your Company launched a Travel Safe policy whereby a woman colleague in field is eligible to avail a fully reimbursed cab facility should they find themselves working late in the field.

D. Breakthrough Benefits & Wellness

Flexible Work Arrangements: Your Company knows colleagues today juggle multiple priorities, and optimum employee productivity occurs when they have the flexibility and independence to manage those priorities appropriately. Thus, where possible, a Flexible Work Arrangement (FWA) framework has been put in place. This enables employees to avail flexible working hours, work from home facility or avail part time work thus empowering them to balance their personal and professional lives appropriately. This proposition will also help attract a wide range of diverse talent pool into your organisation.

Pfizer Employee Assistance Program: As part of Breakthrough Benefits, a new global Employee Assistance Plan (EAP) is now available to support employees to deal with daily stresses and challenges of a busy working life. Through this program, colleagues can reach out for expert opinion on wellness and mental health, seek counselling, advice and tips on various aspects of day to day life such as parenting, ageing, balancing work and life etc.

PREVENTION OF SEXUAL HARASSMENT POLICY

The ‘Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("the Act") seeks to protect women colleagues against sexual harassment in their workplace. Your company has specially designed training modules to help all colleagues and contingent associates to understand what constitutes sexual harassment in the workplace and how to address it; as well as the organisations role in preventing it.

Your Company has complied with the provisions relating to the constitution of Internal Complaints Committee under the Act. The details of complaints filed and disposed of during the Financial Year under review are as under:

Particulars
Number of Complaints pending as on the beginning of the Financial Year 2019-20.

2

Number of Complaints filed during the Financial Year 2019-20.

Nil

Number of Complaints disposed of during the Financial Year 2019-20.

2

Number of Complaints pending as on the end of the Financial Year 2019-20.

Nil

LEGAL DIVISION

Your Companys Legal Division is committed to providing pragmatic solutions in line with the legal and commercial interests of the Company. Being a specialized department, the Legal Division works proactively with the business to drive compliant and innovative business ideas, strategies and programs right from inception and thereby promotes your Companys commitment to Patients First.

During the COVID-19 situation, the Legal Division has been fore fronting solutions for business continuity with support on documentation and processes.

Few of the areas where the Legal Division played leadership role during the year under review include:

• Spearheading litigation against infringers and protecting the IP rights and entitlement of your Company.

• Guiding the business across Digital initiatives to enhance reach to physicians and awareness to patients using technology.

• Constant support for Projects across divisions and enabling functions.

• Mitigation of risks associated with Companys business operations and intellectual property rights.

• Defending the Company against litigation as well as pro-actively initiating litigation, wherever necessary, to ensure that your Company is insulated from operational risks.

GLOBAL COMMERCIAL OPERATIONS (GCO)

Converging globally into the Chief Business Office (CBO), GCO is an integral part of Pfizers Commercial Operating model enabling strategic and operational capabilities and excellence. GCO continues to build on four key pillars: Ease of doing things; Commercial impact; Capability development; and Compliance. This strategic model has empowered GCO to significantly undertake transformational projects which have advanced Pfizers Purpose and Bold Moves. Global Commercial Operations has witnessed enormous growth in the scale and size of its operations since the six years of its inception in India.

Some of GCOs milestones and achievements built on the overarching theme of ‘Automation and Simplification in 2019 include:

• Launch of global platform Pfizer for Professionals (PfizerPro) in India which will serve as a single point of contact for HCPs to view scientific content

• Launch of the first patient-centric website, globally, for pneumococcal disease, ChooseWisely

• Launch of Local Contract Management (LCM) system, contributing to simplification and automating ~4000 Health Care Professional (HCP) speaker contracts

• Launch of new global Sales Force Automation (SFA) platform PforceRx furthering field force excellence and laying the foundation to truly transform the way we connect with Health Care Professionals

These achievements have been possible due to the strong collaboration and partnership with various functions across the organisation and the unparalleled spirit of the employees who work every day with the aim of making a significant difference to the lives of customers and patients.

GLOBAL SUPPLY CHAIN

Your Companys Supply Chain and Distribution orchestrates breakthroughs that change patients lives through various interventions by enhancing the service capability across the value chain. Conscious efforts are made to develop and upgrade your Companys facilities with digital support that delivers value beyond supply through a robust, flexible and efficient distribution network comprising of 21 CFAs and 3 Hubs who oversees supply of medicines to ~7500 stockist and 2100 institutions across India.

The Division also focuses on increasing the customer reach by developing an optimized network model, while demonstrating the responsibility towards nature by undertaking Go-Green initiatives. Amidst the COVID-19 pandemic, special arrangements were made with charter flight operators and alternate airport options and collaborations with industry peers to safeguard unremitting supply of medicines to patients.

DIGITAL

COVID-19 challenged your Companys traditional way of work. It was important to ensure that as an organization, we were able to maintain a high degree of engagement with HCPs and channel partners. Your Company ensured that the usual processes and essential tasks such as support IT need of the employees, onboarding new joinees etc., do not get hampered. Your Companys Digital team responded to this challenge through a number of measures, including:

• Partnered with Business for launch of new products, portals and facebook page

• Introducing new ways of connecting with HCPs over video call

• Webex, OFFICE-365 (Teams, One Drive, OUTLOOK) and remote desktop for new joinees

Your Company is one of the first Pfizer worldwide locations to adopt Veeva VCC. The platform allows front-end Field Force to do remote video call with HCPs and share approved content.

Consequently, your Company has embarked on many new initiatives which would help us grow and be more connected to the HCPs patients and care givers, including:

a. Tele medicine and tele health platform b. Fight pneumo FB page for vaccines c. FB LIVE webinar for HCP and Patients

d. Virtual promotions using FB, Instagram, LinkedIn and Google

While physical visits have become more and more difficult, your Companys thoughtful, novel and innovative means have augured well to connect with HCPs and patients. All the above initiatives will keep your Company ahead of the pack and your Company will continue to keep adopting new digital technologies and solutions to support the business.

FINANCE

The Finance Division has been a strong and effective business partner to provide guidance and leadership while upholding highest standards for internal controls and governance. The Division has been instrumental in driving performance, managing risks and opportunities, and leading enterprise wide initiatives.

During the year under review, your Companys Finance team partnered strongly with business in driving key projects including restructuring of the Internal Medicine Business Unit, launch of innovative medicines, resource allocation/reallocation, and played the role of enabler in multiple high impact business critical matters.

The Finance Division also played vital role in ensuring business continuity during the challenging COVID-19 times by providing thought leadership to the Management, working capital support to the trade and driving various business decisions to ensure uninterrupted supply of medicines.

In addition to the strong business partnering, the Finance division played a pivotal role in ensuring fiduciary integrity, upholding high corporate governance standards, maintaining good investor relations, institutionalizing effective internal controls and consistently driving strong business performance and financial prudence.

COMPLIANCE AND ETHICS

As your Company continues to grow its business and work towards achieving its goals, it also ensures that it is consistent with Pfizers commitment to integrity and compliance. The Compliance Division of your Company makes sure that all its employees demonstrate integrity at every level.

Your Company has a proactive approach to address compliance risks driving through thoughtful risk taking and leadership accountability. In order to achieve compliance culture at all the levels in the organisation, the Team has implemented various unique compliance initiatives which includes Compliance Roadshows, Compliance Champions League and Captain Compliance. The team has also embedded various compliance elements in the entire lifecycle of people process (from hiring to exit). Approach to all compliance programs has been to keep it interesting, technology based, innovative and above all, making it a way of life at Pfizer.

The Team has also increased its focus in recent years on leveraging technology not only for proactive monitoring of trends through various analytical tools but also engaging with our customers, healthcare professionals and patients using virtual platforms in a compliant manner.

Internal Control Systems, their adequacy and Compliance

The Compliance Controls and Risk (CCR) team is responsible to ensure adequacy and effectiveness of internal controls through continuous monitoring. The teams objective is to give senior management, Risk Management Committee and the Audit Committee, an independent and reasonable assurance on the adequacy and effectiveness of the Companys risk management, control and governance processes. This is achieved through a co-sourced internal audit model which includes independent reviews performed by the CCR team together with audit reviews performed through an independent Chartered Accountancy firm.

Your Company has laid down Internal Financial Controls that include a risk-based framework to ensure orderly and efficient conduct of its business, safeguarding of its assets, accuracy and completeness of the accounting records and assurance on reliability of financial information. The Audit Committee has evaluated the design framework and operative assessment and deliberated with members of management and Statutory Auditors to ascertain their views or opinion. The Audit Committee has satisfied itself on the adequacy and effectiveness of the internal financial control system laid down by management. The Statutory Auditors have confirmed the adequacy of the internal financial control systems over financial reporting.

The CCR team conducts a risk assessment every year during which all risks to the Companys objectives are assessed and mitigating plans put in place. These risks include operational, financial, regulatory, legal, business and compliance risks. All the key risks along with mitigating plans are presented and discussed annually with the Risk Management Committee and the Audit Committee.

Annually, based on the risk assessment and findings from previous internal audits, the CCR Team prepares the annual audit plan approved by the Risk Management Committee and the Audit Committee and followed throughout the year. As part of the quarterly review, status of the annual audit plan, design assessment, operating effectiveness, key audit findings and remediation status of prior findings are presented and discussed with the Risk Management Committee and the Audit Committee.

Your Company has a policy covering interaction with Healthcare Professionals and Government officials called ‘My Anti- Corruption Policy & Procedures (MAPP). The policy addresses both local legal requirements while also leveraging best practices followed in other markets. As a way of reinforcing its compliance culture, your Company has identified 70 colleagues as "Compliance Champions" from various teams who act as first point of contact for colleagues in case they have policy related questions. These measures have ensured that your Company is well placed to drive the spirit of compliance across its stakeholders.

CORPORATE AFFAIRS

The Corporate Affairs Division works in the domains of Government Relations, Communications and Corporate Social Responsibility. During the year under review, the division undertook a number of policy advocacy initiatives; stakeholder engagement outreach; campaigns to build corporate and TA reputation and community and colleague engagement programs.

Government Relations

Your Companys Managing Director Mr. S. Sridhar was re-elected as the Chair of the Federation of Indian Chambers of Commerce

& Industrys (FICCI) National Pharmaceutical Committee for the current year. He also continues to serve as an Executive Committee Member in the Organisation of Pharmaceuticals Producers of India (OPPI). Pfizer also assumed the Co-Chair of the India Pharma Committee of the Pharmaceutical Research and Manufacturers of America (PhRMA) and the US India Business Council (USIBC).

a) Engagement through industry associations and direct advocacy:

As a member of the OPPI, FICCI, PhRMA, USIBC and US India Strategic Partnership Forum (USISPF), your Company continued to participate and play an active role in leading the dialogue with relevant government stakeholders and contributing recommendations and comments on key policy matters such as the revision of the National List of Essential Medicines, amendments of the Drug Price Control Order, Drug and Magic Remedies (Objectionable Advertisements) Amendment Bill 2020 and strengthening of Intellectual Property eco-system among others.

b) Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY):

The National Health Authority (NHA), the implementing arm of the governments AB-PMJAY has shown interest in engaging with the industry and explore possibilities that would increase the availability and access to in hospital treatments and medicines for the AB-PMJAY beneficiaries.

The review of the Health Benefit Packages (HBPs) and implementation of the second version of the same by the NHA, after only one year of the launch of the scheme, has signaled the governments intention to cover therapeutic areas and packages that were not covered earlier.

Your Company has been engaging with the NHA to explore the possibility of working out mechanisms through which innovative therapies could be included in specific HBPs and make them available to the AB-PMJAY beneficiaries.

c) Adult immunisation:

Your Company strongly believes that adult immunisation against vaccine preventable pneumococcal disease should be taken up on a large scale. With the World Health Organization also recommending pneumococcal vaccination to prevent deaths due to respiratory problems caused by the COVID-19 pandemic, the time is appropriate for the Government to initiate an immediate targeted adult immunisation campaign. Your Company has been in discussions with several State Governments to explore the possibility of partnerships to roll out the pneumococcal adult vaccination campaign in these States. It also continues to explore other avenues for inclusion of adult immunisation in specific government programs and by government agencies such as Ayushman Bharat and National AIDS Control Organisation (NACO).

Communications

Your Companys communications team plays the role of a key enabler in communicating the organizations growth plans, important decisions and milestones to stakeholders both internally and externally.

Externally, your Company, continued to engage with media to share important messages pertaining to business developments and key therapies and products. The team also showcased important corporate responsibility initiatives to a wider universe of external stakeholders, including media, the HCP community, Government and industry stakeholders, through communication and participation in industry events.

Internally, your Company continued to maintain a high-impact communication program, especially to keep colleagues informed, engaged and supported during the COVID-19 crisis. Your Company maintained a high-performance culture by engaging employees and aligning them with our values, purpose and strategy. Through an active calendar of activities that focused on the wellness of our colleagues, as well as celebrations of achievements and festivals, your Company worked towards bringing its colleagues together regularly.

Highlights of the year under review include:

a) COVID-19 communication:

With a goal to ensure that Pfizer colleagues in the field and in Regional and Head Offices remain engaged in a positive manner, the Communications team created a number of unique initiatives to disseminate information and involve colleagues in interactive activities.

Work from home tips: A series of tips and tricks for colleagues to follow to settle into this new way of working, carry out their work efficiently and strike a balance between work and leisure.

At home with video series: Multiple videos of the leadership team and RBMs sharing ways in which they have been making work from home, work for themselves! These videos received more than 6000 views.

#wfhisfun contests: 10 contests conducted across your organisation where colleagues were asked to share their insights, images and videos on having fun while working from home, on India Yammer page. This initiative resulted in more than 35,000 visits on Yammer over two months.

Return to workplace guidebook: A consolidated avant-garde guidebook highlighting safety precautions to keep in mind once colleagues returned to work in office and in the field.

Townhalls with India Leads: Virtual townhalls with India Leads where everyone was updated on the recent business achievements and guidelines to keep oneself safe at home and in the field. Most of the queries on the ever-evolving COVID-19 situation were also shared to remove all roadblocks and make work easier for all.

COVID-19 Booklet: A handy, easy to read and visually rich booklet was prepared for colleagues to explain the disease, its causes and ways to be safe from it.

Field safety kit: A comprehensive guide document was shared with all colleagues which featured the major guidelines for field colleagues to follow to be safe while working in the field.

Workplace Diaries: A new podcast where colleagues can share their experiences of working in the field and their tips and tricks to survive in the field, given the current situation.

b) Celebrating Womens Day:

Your Company celebrated Womens Day by unveiling a video on the work and dedication of women colleagues in the field. Women achievers from across the country were invited to the Mumbai headquarters including a mountaineer who had climbed Mount Everest, the founder of a successful new age media company and one of the few female auto rickshaw drivers in Mumbai, who fought her way in life to choose her profession and independence. Their stories helped colleagues understand what it means to be a woman and successful in todays day and age.

c) Supporting a cause:

100 Pfizer colleagues ran in the Tata Mumbai Marathon to support two Cancer Care Centers dedicated to providing support and accommodation to children and their families during the childrens treatment in Mumbai. St Jude India Childcare Center being one of these establishments interacted with the colleagues in Mumbai headquarters and shared about the work that goes into supporting these suffering children and their families. This was an eye-opener for our colleagues most of whom were unaware of the care and commitment that these children require to be able to outlive the ailment. Colleagues also understood the gravity of their contribution to the cause.

CORPORATE SOCIAL RESPONSIBILITY

Your Company continued to stay true to its purpose of promoting access to quality healthcare in the country by nurturing innovation, encouraging community involvement of our colleagues and synergising efforts with government and other stakeholders for collective impact.

This year, the team continued to identify and work on projects that are aligned to Pfizers CSR priorities as listed below:

• Encourage and support Indian innovation and Indian intellectual property with a focus on healthcare;

• Undertake awareness and access programs ourselves or in partnership with NGOs, Government and healthcare providers in areas such as women and child health, among others;

• Support Government national and/or state programs and priorities with linkages to healthcare;

• Enlist employees as volunteers to support activities around health, sanitation and disease awareness; and

• Participate in disaster relief activities.

Your Companys flagship CSR initiatives undertaken during the year gained significant momentum leading to high-impact outcomes.

Pfizer along with NGO partner Americares India Foundation has rolled out two major projects to combat Indias AMR challenges.

a. The Parivartan project that aims to reduce the spread of antimicrobial resistance in health facilities and to promote overall infection prevention and control in targeted health facilities. A multi-year project, the goal is to demonstrate a tangible impact of infection prevention and antimicrobial stewardship activities on key outcome indicators of hospitals, such as a reduction in hospital acquired infections.

b. Online Learning Platform (OLP) is an online platform for Health Care Workers (HCWs) to ensure that the HCWs across India have access to quality training on Infection Prevention and Control (IPC). The project is currently in the initial phase of building the IPC module as per the WHO guidelines. The platform would be accessible free of cost with certification in three languages (English, Hindi, Malayalam).

The Pfizer-ACF (Tata Trusts) Cancer Care Project has been set up to work with the high-risk population that require healthcare attention. Overall, this project aims to serve as a one-stop, information and support centre for patients and families at Tata Trusts key cancer hospitals. Alamelu Charitable Foundation (ACF) was established by Tata Trusts to support the setup of a comprehensive healthcare network across India. The program is in the first Phase of its operation and includes the following:

a. Health and wellness kiosks in Ranchi, Diphu, Silchar and Tirupati. The kiosks provide services such as counselling and interactive sessions on preventing cancer and lifestyle-related disorders to reduce the risk of non-communicable diseases, counselling session for smoking cessation and prevention, screening for Oral, Cervical and Breast cancer, general physician examination and basic laboratory investigation mainly haemotological, serological and biochemical test, etc.

b. Community outreach and early detection for NCD screening of catchment population and referral to the nearest centre

c. Set-up and operationalisation of a patient referral and tracking platform

d. Manage and operate a virtual patient helpdesk, complemented by one on-site patient navigator in OPD and day care centers in the four locations.

The Pfizer-IIT Delhi Innovation and IP Program supports Indian innovation and Indian intellectual property with a focus on healthcare. The program is now in its fourth phase and has supported around 20 innovations since inception in 2015-16. During the year under review, an additional four innovators were incubated, and ten IP filings supported.

Your Company is working towards developing the village of Kaulale, Jawhar under the Pfizer Sustainable Village Transformation Project with BAIF Institute for Sustainable Livelihoods and Development as the implementation partner. The aim of the program is to provide a holistic intervention around areas of water, sanitation, health, skill development and sustainable livelihoods. The project addresses the issues access to drinking water, improving nutrition, improving agricultural practices and irrigation facilities, sustainable livelihood opportunities and creating awareness regarding water and water conservations.

Your Company had taken up 13 schools in Mumbai and Goa under the Pfizer School Sanitation and Development Program in 2018-19. The program has now reached completion impacting the lives 6000 students in the regions.

Your Company has been actively involved in supporting the Governments COVID-19 Relief Efforts in India. As a part of its efforts, Your Company is supporting the State and Central Government and other healthcare institutions to bridge the gap and enhance the current healthcare infrastructure for treating the increasing number of COVID-19 cases. Support has also been provided for the frontline healthcare workers and COVID-19 warriors by sponsoring Personal Protective Equipment kits and masks.

a. Donation of 3 lakh protective N95 Masks: Our frontline healthcare workers are performing a remarkable duty to provide healthcare services to patients across the country. More often, this is at considerable personal risks of contracting infections, including COVID-19. In order to provide relief to such personnel, Pfizer has funded NGOs to donate close to 3 lakh certified N95 protective masks for use by frontline and supporting healthcare personnel across 15 states in India.

b. Providing 5 state-of-the-art ventilators: As the number of COVID-19 cases rapidly increase in Maharashtra, the MCGM Disaster Management Cell along with the Health Department are ramping up the testing and isolation facilities currently available. Your Company has partnered with the NGO Americares to provide 5 high-quality Macquet Servo-I Ventilators to three key Government hospitals with COVID-19 facilities: the 20-bed ward at the HBT Trauma Care Centre, Jogeshwari; the 10-bed ward at Bhabha Hospital, Bandra; and the 20-bed ward at Rajawadi Hospital, Ghatkopar, all located in densely populated suburbs in Mumbai.

c. Assisting migrant workers with food relief: Goa is home to your Companys manufacturing plant. Being an industrial state, it is also home to a large migrant population that would require basic food relief and support at this time. Through its NGO partners, Pfizer has provided food and grocery packets containing rice, dals, wheat flour, poha, sugar, oil and other essentials for those in need in the talukas of Sattari and Valpoi in Goa.

d. Donation of 75,000 tablets of Azithromycin: Responding to a call from the Government of India, your Company has partnered with HLL Lifecare Ltd. to donate 75,000

Azithromycin 500 Mg tablet for the treatment of COVID-19 patients under the care of Government facilities.

e. COVID-19 Treatment Facility for Police Personnel: In addition to the healthcare workers, our police personnel too are serving as COVID-19 Warriors with courage and dedication. Unfortunately, their line of duty also places them at higher risks of contracting the illness. In order to support our Police Personnel, Pfizer has supported a 75-bed isolation ward at the Mumbai Police Kalina Hospital for the Maharashtra Police. Support was provided towards COVID-19 Emergency Response Intervention for setting up of the temporary COVID-19 hospital dedicated to police personnel in Kalina. The support included critical lifesaving supplies such as Oxygen concentrators, Pulse Oximeters, Multipara Monitors, ECG Machines etc.

Shortfall in CSR spend

The Company had earmarked a significant proportion of the CSR outlay towards two key initiatives – namely the AMR Hospital Transformation Project in partnership with Americares and the Cancer patients support program in partnership with Tata Trusts.

Given the extensive planning required for these projects, the scale of interventions and time taken to conclude initial work, the projects were not in a position to consume the entire outlay within the financial year.

Consequently, in line with the provisions of sub-section (6) in Section 135 of The Companies Act, 2013, (to be gazetted), the Company has placed an amount of Rs.4.63 crores earmarked for aforementioned identified projects in a dedicated bank account with a plan to utilize the same within 3 years for the said projects which are long term and continuing in nature and are expected to remain in your Companys CSR portfolio in the subsequent years.

Further, the Company will look towards meeting its CSR spend obligations in the year 2020-21.

A brief outline of the initiatives undertaken during the year and details of CSR projects undertaken by your Company during the financial year under review are provided in the Corporate Social Responsibility Report which forms part of this Report and annexed herewith as "Annexure - A".

CAUTIONARY NOTE

Certain statements in respect to Management Discussion and Analysis may be forward looking and are stated as required by the applicable laws and regulations. The future results of the Company may be affected by many factors, which could be different from what the Directors envisage in terms of future performance and outlook.