Profitability impacts Operating margin at some risk (2021-2022) Large pharma baseline* Impacts Rationale 2019 actual Net sales 100% Disruption in demand from April to June, offset by forwarding buying in March, and return in July-Dec at 95% of 2019 level COGS 28% Slight increase due to shifting some production to more expensive locations SG&A 27% Initial investment in virtual technology off-set by more significant rebalance of field force investment R&D 19% Maintain program at same absolute level Operating margin 25% Management priorities and actions to maintain operating margin Source: Company financial statements for 15 largest companies by global pharmaceutical sales; IQVIA Institute. IQVIA Global Executive Briefing: COVID-19 June 2020; Copyright 2020 IQVIA. 25