Risk Factors Update Summary

• Payors in the U.S. increasingly employ formularies to control costs, demand rebates, and use cost containment strategies.
• Market consolidation increases negotiating power, leading to higher rebates and utilization management tools.
• Added discussion of potential impacts on pipeline delivery, loss of continuity, knowledge, and inefficiency.
• Increased interest in cost-containment strategies for specialty pharmaceuticals may impact pricing and access.
• Recent impairments of IPR & D assets discussed in Note 4, impacting intangible assets.
• Market consolidation may lead to greater pricing pressure from payors, driving patients to lower-cost alternatives.
• Changes in tax laws effective since January 1, 2024, including the proposed "Tax Relief for American Families and Workers Act of 2024".
• Revenue concentration decreased from 82% to 64% for top products, with Comirnaty and Paxlovid dropping from 57% to 19%.
• Anticipate reduced revenues from patent expiries in 2026-2030 due to patent-based expirations.
• Increased competition from generic manufacturers may result in challenges related to patent infringement and validity.