Q1 2024 AbbVie Inc Earnings Call

April 26, 2024

Operator: Good morning, and thank you for standing by. Welcome to the AbbVie first quarter 2024 earnings conference call.

Operator: Good morning, and thank you for standing by. Welcome to the AbbVie Q1 2024 earnings conference call. All participants will be able to listen only until the question-and-answer portion of this call. You may ask a question by pressing star one on your phone. Today's call is also being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce Ms. Liz Shea, Senior Vice President of Investor Relations. Ma'am, you may begin.

All participants will be able to listen only until the question and answer portion of this call. You may ask a question by pressing star one on your phone. Today's call is also being recorded. If you have any objections, you may disconnect at this time.

I'd now like to introduce Ms. Liz Shea, Senior Vice President of Investor Relations. Ma'am, you may begin.

Liz Shea: Ma'am you may begin.

Liz Shea: Good morning, and thanks for joining us. Also in the call with me today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer, Rob Michael, President and Chief Operating Officer, Jeff Stewart, Executive Vice President, Chief Commercial Officer, Scott Reents, Executive Vice President, Chief Financial Officer, Carrie Strom, Senior Vice President, AbbVie and President, Global Allergan Aesthetics, and Roopal Thakkar, Senior Vice President, Chief Medical Officer, Global Therapeutics. Joining us for the Q&A portion of the call is Tom Hudson, Senior Vice President, Chief Scientific Officer, Global Research. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in our forward-looking statements.

Liz Shea: Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer, Rob Michael, President and Chief Operating Officer, Jeff Stewart, Executive Vice President, Chief Commercial Officer, Scott Reents, Executive Vice President and Chief Financial Officer, Carrie Strom, Senior Vice President AbbVie and President Global Allergan Anesthetics, and Roopal Thakkar, Senior Vice President Chief Medical Officer Global Therapeutics.

Liz Shea: And President Global Allergan, Anesthetics, and ruble soccer Senior Vice President Chief Medical Officer Global Therapeutics.

Liz Shea: Joining us for the Q&A portion of the call is Tom Hudson, Senior Vice President, Chief Scientific Officer of Global Research. Before we get started, I will note that some statements we make today may be considered forward-looking statements based on our current expectations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in our forward-looking statements.

Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law.

Liz Shea: Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and our regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions. So with that, I'll turn the call over to Rick.

Tom Hudson: On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release, and our regulatory filings from today, which can be found on our website.

Tom Hudson: Following our prepared remarks, we'll take your questions. So with that, I'll turn the call over to Rick.

Rick Gonzalez: Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'm extremely pleased with our start to 2024, with first-quarter results exceeding our expectations. Before we discuss our performance in more detail, I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as AbbVie's first CEO, I have decided to retire from the role effective 1 July 2024 and will continue to serve AbbVie as Executive Chairman of the Board. As you've heard me say before, it is important that we choose the right time to make this critical leadership transition. The Board and I have been long planning for my eventual succession, and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term.

Rick A. Gonzalez: Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'm extremely pleased with our start to 2024, with first-quarter results exceeding our expectations. Before we discuss our performance in more detail, I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as AbbVie's first CEO, I have decided to retire from the role effective 1 July 2024 and will continue to serve AbbVie as Executive Chairman of the Board. As you've heard me say before, it is important that we choose the right time to make this critical leadership transition. The Board and I have been long planning for my eventual succession, and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term.

Richard A. Gonzalez: Thank you Liz. Good morning everyone and thank you for joining us today. I'm extremely pleased with our start to 2024 with first quarter results exceeding our expectations.

Rick: Extremely pleased with our start to 2024 with first quarter results exceeding our expectations.

Rick: Before we discuss our performance in more detail, I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as AbbVie's first CEO, I have decided to retire from the role effective July 1st of this year and will continue to serve AbbVie as Executive Chairman of the board.

Speaker Change: After serving more than 11 years as Abbvie for a CEO I have decided to retire from the role effective July one of this year and will continue to serve Abbvie as executive chairman of the board.

Speaker Change: As you've heard me say before, it is important that we choose the right time to make this critical leadership transition. The board and I have been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term.

Speaker Change: Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well.

Speaker Change: We are successfully navigating the HUMIRA U.S loss of exclusivity. We have built an outstanding company culture, an important priority and competitive advantage. And our productive R&D engine, which has yielded numerous innovative new medicines for patients, will continue to fuel a robust pipeline for years to come. After a multiyear process, our board has unanimously selected Rob Michael, our current President and Chief Operating Officer as AbbVie's next CEO. I have known and worked with Rob for many, many years and he is an excellent choice as my successor. He brings the experience, leadership, and strategic vision to build on AbbVie's past successes and advance our strategy and enhance shareholder value. Since our inception, Rob has held several important leadership positions that have collectively had a tremendous impact on AbbVie.

We are successfully navigating the HUMIRA U.S loss of exclusivity. We have built an outstanding company culture, an important priority and competitive advantage. And our productive R&D engine, which has yielded numerous innovative new medicines for patients, will continue to fuel a robust pipeline for years to come.

Rick Gonzalez: We are successfully navigating the Humira US loss of exclusivity. We have built an outstanding company culture, an important priority and competitive advantage, and our productive R&D engine, which has yielded numerous innovative new medicines for patients, will continue to fuel our robust pipeline for years to come. After a multi-year process, our Board has unanimously selected Rob Michael, our current President and Chief Operating Officer, as AbbVie's next CEO. I have known and worked with Rob for many, many years, and he is an excellent choice as my successor. He brings the experience, the leadership, and the strategic vision to build on AbbVie's past successes, advance our strategy, and enhance shareholder value.

Rick A. Gonzalez: We are successfully navigating the Humira US loss of exclusivity. We have built an outstanding company culture, an important priority and competitive advantage, and our productive R&D engine, which has yielded numerous innovative new medicines for patients, will continue to fuel our robust pipeline for years to come. After a multi-year process, our Board has unanimously selected Rob Michael, our current President and Chief Operating Officer, as AbbVie's next CEO. I have known and worked with Rob for many, many years, and he is an excellent choice as my successor. He brings the experience, the leadership, and the strategic vision to build on AbbVie's past successes, advance our strategy, and enhance shareholder value.

Speaker Change: We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage. And our productive R&D engine, which has yielded numerous innovative new medicines for patients. We will continue to fuel a robust pipeline for years to come. Yeah.

We have built an outstanding company and culture and important priority and competitive advantage. And our productive R&D engine, which has yielded numerous innovative new medicines for patients. We will continue to fuel a robust pipeline for years to come. Yeah.

Speaker Change: And our productive R&D engine, which has yielded numerous innovative new medicines for patients. We will continue to fuel a robust pipeline for years to come. Yeah.

After a multiyear process, our board has unanimously selected Rob Michael, our current President and Chief Operating Officer as AbbVie's next CEO. I have known and worked with Rob for many, many years and he is an excellent choice as my successor. He brings the experience, leadership, and strategic vision to build on AbbVie's past successes and advance our strategy and enhance shareholder value. Since our inception, Rob has held several important leadership positions that have collectively had a tremendous impact on AbbVie.

Speaker Change: Yeah.

After a multiyear process our board has unanimously selected Rob Michael our current President and Chief operating officer as add these next CEO. I have known and worked with Rob for many many years and he is an excellent choice as my successor. He brings deep experience leadership and strategic vision to build an NAV these past successes and advance our strategy and enhance shareholder value.

I have known and worked with Rob for many many years and he is an excellent choice as my successor. He brings deep experience leadership and strategic vision to build an NAV these past successes and advance our strategy and enhance shareholder value.

Robert A. Michael: He brings deep experience leadership and strategic vision to build an NAV these past successes and advance our strategy and enhance shareholder value.

Rick Gonzalez: Since our inception, Rob has held several important leadership positions that have collectively had a tremendous impact on AbbVie, from establishing our financial planning organization to navigating the end of exclusivity for Humira in the US, to driving key business development opportunities that have been critical to diversify our business and support long-term growth, including the acquisitions of Allergan, ImmunoGen, and the pending Cerevel transaction. Looking back, AbbVie has evolved tremendously as an independent company, and our performance has truly been exceptional. Since our inception, we've grown our revenue from $18 billion to $55 billion. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We have achieved a total shareholder return of more than 675%, which is top-tier relative to our peers.

Rick A. Gonzalez: Since our inception, Rob has held several important leadership positions that have collectively had a tremendous impact on AbbVie, from establishing our financial planning organization to navigating the end of exclusivity for Humira in the US, to driving key business development opportunities that have been critical to diversify our business and support long-term growth, including the acquisitions of Allergan, ImmunoGen, and the pending Cerevel transaction. Looking back, AbbVie has evolved tremendously as an independent company, and our performance has truly been exceptional. Since our inception, we've grown our revenue from $18 billion to $55 billion. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We have achieved a total shareholder return of more than 675%, which is top-tier relative to our peers.

Robert A. Michael: Since our inception, Rob has held several important leadership positions that are collectively had a tremendous impact on abbvie.

Robert A. Michael: From establishing our financial planning organization to navigating the end of exclusivity for HUMIRA in the U.S to driving key business development opportunities that have been critical to diversify our business and support long term growth, including the acquisitions of Allergan and Immunogen and the pending [inaudible] transaction. Looking back, AbbVie has evolved tremendously as an independent company and our performance has truly been exceptional. Since our inception, we have grown our revenue from $18 billion to $55 billion. Our market capitalization has increased substantially, from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%, which is top tier relative to our peers. And importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

From establishing our financial planning organization to navigating the end of exclusivity for HUMIRA in the U.S to driving key business development opportunities that have been critical to diversify our business and support long term growth, including the acquisitions of Allergan and Immunogen and the pending [inaudible] transaction.

Robert A. Michael: Pending <unk> transaction. Looking back. Abbvie has evolved tremendously as an independent company and our performance has truly been exceptional. Since our inception, we have grown our revenue from $18 billion to $55 billion our. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Looking back, AbbVie has evolved tremendously as an independent company and our performance has truly been exceptional. Since our inception, we have grown our revenue from $18 billion to $55 billion. Our market capitalization has increased substantially, from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%, which is top tier relative to our peers. And importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Robert A. Michael: Looking back. Abbvie has evolved tremendously as an independent company and our performance has truly been exceptional. Since our inception, we have grown our revenue from $18 billion to $55 billion our. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Robert A. Michael: Abbvie has evolved tremendously as an independent company and our performance has truly been exceptional. Since our inception, we have grown our revenue from $18 billion to $55 billion our. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Robert A. Michael: Since our inception, we have grown our revenue from $18 billion to $55 billion our. Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Our market capitalization has increased substantially from $54 billion to roughly $300 billion today. We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Robert A. Michael: We achieved a total shareholder return of more than 675%. Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Robert A. Michael: Which is top tier relative to our peers and importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients.

Rick Gonzalez: Importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients. As I look ahead, our company has never been stronger, and our future has never been brighter. We are executing well across all aspects of our business, and our long-term growth prospects remain very strong. In summary, it has been a privilege and immensely gratifying to serve with all of my AbbVie colleagues for the past 11 years, growing AbbVie into what it is today. I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders. I'd also like to take this opportunity to thank all of our shareholders for the trust and confidence you put in me as AbbVie's CEO.

Rick A. Gonzalez: Importantly, we have substantially increased our investments in R&D to discover and develop new medicines that have the potential to improve the lives of patients. As I look ahead, our company has never been stronger, and our future has never been brighter. We are executing well across all aspects of our business, and our long-term growth prospects remain very strong. In summary, it has been a privilege and immensely gratifying to serve with all of my AbbVie colleagues for the past 11 years, growing AbbVie into what it is today. I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders. I'd also like to take this opportunity to thank all of our shareholders for the trust and confidence you put in me as AbbVie's CEO.

Robert A. Michael: As I look ahead, our company has never been stronger and our future has never been brighter. We are executing well across all aspects of our business and our long term growth prospects remain very strong. In summary, it has been a privilege and immensely gratifying to serve with all of my AbbVie colleagues for the past 11 years, growing AbbVie into what it is today. And I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders.

As I look ahead, our company has never been stronger and our future has never been brighter. We are executing well across all aspects of our business and our long term growth prospects remain very strong.

Robert A. Michael: Our future has never been brighter we were executing well across all aspects of our business and our long term growth prospects remain very strong. In summary, it has been a privilege and immensely gratifying to serve with all of my Abbvie colleagues for the past 11 years growing abbvie into what it is today. And I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders.

In summary, it has been a privilege and immensely gratifying to serve with all of my AbbVie colleagues for the past 11 years, growing AbbVie into what it is today. And I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders.

Robert A. Michael: In summary, it has been a privilege and immensely gratifying to serve with all of my Abbvie colleagues for the past 11 years growing abbvie into what it is today. And I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders.

Robert A. Michael: And I look forward to continuing to work with Rob and the leadership team to create meaningful value for our shareholders and all of our stakeholders.

Robert A. Michael: And I'd also like to take this opportunity to thank all of our shareholders for their trust and confidence you put in me as AbbVie's CEO. With that, I will turn the call over to Rob for comments on our recent business performance. Rob? Thank you Rick. Before I comment on our first quarter performance, I want to congratulate Rick on his exceptional leadership of AbbVie over the past 11 years.

And I'd also like to take this opportunity to thank all of our shareholders for their trust and confidence you put in me as AbbVie's CEO. With that, I will turn the call over to Rob for comments on our recent business performance. Rob?

Rick Gonzalez: With that, I'll turn the call over to Rob for comments on our recent business performance. Rob?

Rick A. Gonzalez: With that, I'll turn the call over to Rob for comments on our recent business performance. Rob?

Rob Michael: Thank you, Rick. Before I comment on our first-quarter performance, I want to congratulate Rick on his exceptional leadership of AbbVie over the past 11 years. During his tenure, Rick made several strategic moves that have positioned AbbVie to have a bright future beyond Humira, consistently drove the organization to deliver very strong performance, and demonstrated a genuine care for our employees, patients, shareholders, and communities that has defined who we are as a company today. It has been my privilege to work closely with Rick over many years, and I look forward to working with him in his role as Executive Chairman. AbbVie's outlook is very strong, and I am excited about the remarkable impact that we will continue to have on patients' lives. During the first-quarter performance, we're off to an excellent start to the year with strong top- and bottom-line results.

Robert A. Michael: Thank you Rick. Before I comment on our first quarter performance, I want to congratulate Rick on his exceptional leadership of AbbVie over the past 11 years. During his tenure, Rick made several strategic moves that have positioned AbbVie to have a bright future beyond HUMIRA, consistently drove the organization to deliver a very strong performance and demonstrated the genuine care for our employees, patients, shareholders and communities that has defined who we are as a company today. It has been my privilege to work closely with Rick over many years and I look forward to working with him in his role as Executive Chairman. AbbVie's outlook is very strong and I am excited about the remarkable impact that we will continue to have on patients' lives.

Rob: Over the past 11 years.

Rob: During his tenure, Rick made several strategic moves that have positioned AbbVie to have a bright future beyond HUMIRA, consistently drove the organization to deliver a very strong performance and demonstrated the genuine care for our employees, patients, shareholders and communities that has defined who we are as a company today. It has been my privilege to work closely with Rick over many years and I look forward to working with him in his role as Executive Chairman. AbbVie's outlook is very strong and I am excited about the remarkable impact that we will continue to have on patients' lives.

Rob: Hey. It has been my privilege to work closely with Rick over many years and I look forward to working with him in his role as executive Chairman. <unk> outlook is very strong and I am excited about the remark will impact that we will continue to have on patients' lives.

Rob: It has been my privilege to work closely with Rick over many years and I look forward to working with him in his role as executive Chairman. <unk> outlook is very strong and I am excited about the remark will impact that we will continue to have on patients' lives.

Rob: <unk> outlook is very strong and I am excited about the remark will impact that we will continue to have on patients' lives.

Rob: Turning to first quarter performance, we're off to an excellent start to the year with strong top and bottom line results. We reported adjusted earnings per share of $2.31, which is 11 cents above our guidance midpoint. Total net revenues were $12.3 billion, approximately $400 million ahead of our expectations. This over achievement was driven by our ex-HUMIRA growth platform, which delivered revenue growth of more than 15% this quarter and includes continued robust sales from SKYRIZZI and [inaudible] with combined growth above 50% in their fifth full year on the market, as well double digit revenue growth from several other key products, including [inaudible] and QULIPTA.

Rob Michael: We reported adjusted earnings per share of $2.31, which is $0.11 above our guidance midpoint. Total net revenues were $12.3 billion, approximately $400 million ahead of our expectations. This overachievement was driven by our ex-Humira growth platform, which delivered revenue growth of more than 15% this quarter and includes continued robust sales from Skyrizi and Rinvoq, with combined growth above 50% in their fifth full year on the market, as well as double-digit revenue growth from several other key products, including Venclexta, Vraylar, Ubrelvy, and Qulipta. This broad-based sales momentum clearly demonstrates the strength of our diversified portfolio, with multiple growth drivers to support our long-term outlook. We are also making excellent progress with several of our near-term priorities. We recently completed the acquisition of ImmunoGen, which accelerates our entry into the solid tumor market and strengthens our oncology pipeline.

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Rob: Total net revenues were $12 $3 billion approximately $400 million ahead of our expectations. This over achievement was driven by our ex Humira growth platform, which delivered revenue growth of more than 15% in this quarter and includes continued robust sales from sky <unk> and <unk> with combined growth above 50% and their fifth full year on the market as well. <unk> double digit revenue growth from several other key products, including <unk>, <unk> <unk> and <unk>.

Rob: This over achievement was driven by our ex Humira growth platform, which delivered revenue growth of more than 15% in this quarter and includes continued robust sales from sky <unk> and <unk> with combined growth above 50% and their fifth full year on the market as well. <unk> double digit revenue growth from several other key products, including <unk>, <unk> <unk> and <unk>.

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Rob: This broad based sales momentum clearly demonstrates the strength of our diversified portfolio with multiple growth drivers to support our long term outlook. We are also making excellent progress with several of our near term priorities. We recently completed the acquisition of Immunagen, which accelerates our entry into the solid tumor market and strengthens our oncology pipeline. The integration has been seamless and we are impressed by the caliber of talent we've welcomed into AbbVie. We also remain on track with the pending acquisition of [inaudible], which we anticipate will close in the middle of the year. [inaudible] pipeline of differentiated assets will further augment our neuroscience portfolio.

Rob: We are also making excellent progress with several of our near term priorities. We recently completed the acquisition of immune adjourn, which accelerates our entry into the solid tumor market and strengthens our oncology pipeline the. The integration has been seamless and we are impressed by the caliber of talent we've welcomed into abbvie. We also remain on track with the pending acquisition of cerebral which we anticipate will close in the middle of the year. <unk> pipeline of differentiated assets will further augment our neuroscience portfolio.

Rob Michael: The integration has been seamless, and we are impressed by the caliber of talent we have welcomed into AbbVie. We also remain on track with the pending acquisition of Cerevel, which we anticipate will close in the middle of the year. Cerevel's pipeline of differentiated assets will further augment our neuroscience portfolio. In addition, we continue to advance our R&D pipeline and invest for long-term growth. This progress includes the FDA's full approval of Elahere for FR-alpha positive platinum-resistant ovarian cancer, a meaningful first-in-class treatment for patients, and a significant long-term growth opportunity for AbbVie in solid tumors. We also gained US approval of Juvéderm Voluma XC for temple hollows, further strengthening our leadership and aesthetic fillers. We executed several business development opportunities, adding novel early-stage programs and partnerships in oncology and immunology.

Rob: The integration has been seamless and we are impressed by the caliber of talent we've welcomed into abbvie. We also remain on track with the pending acquisition of cerebral which we anticipate will close in the middle of the year. <unk> pipeline of differentiated assets will further augment our neuroscience portfolio.

Rob: We also remain on track with the pending acquisition of cerebral which we anticipate will close in the middle of the year. <unk> pipeline of differentiated assets will further augment our neuroscience portfolio.

Rob: <unk> pipeline of differentiated assets will further augment our neuroscience portfolio.

Rob: In addition, we continue to advance our R&D pipeline and invest for long term growth. This progress includes the FDA's full approval of [inaudible] for Fr Alpha positive platinum resistant ovarian cancer, a meaningful first-in-class treatment for patients and a significant long term growth opportunity for AbbVie in solid tumors. We also gained U.S approval of [inaudible] XC for temple hollows, further strengthening our leadership in aesthetic fillers. And we executed several business development opportunities, adding novel early stage programs and partnerships in oncology and immunology. Given our strong results this quarter, we are raising our full year adjusted earnings per share guidance by 16 cents and now expect adjusted EPS between $11.13 and $11.33.

Rob: Long term growth opportunity for Abbvie in solid tumors. We also gained U S approval of Jupiter for Luma XC for temple hollows further strengthening our leadership in aesthetic fillers. And we executed several business development opportunities, adding novel early stage programs and partnerships in oncology and immunology. Given our strong results. This quarter, we are raising our full year adjusted earnings per share guidance by <unk> 16.

Rob: We also gained U S approval of Jupiter for Luma XC for temple hollows further strengthening our leadership in aesthetic fillers. And we executed several business development opportunities, adding novel early stage programs and partnerships in oncology and immunology. Given our strong results. This quarter, we are raising our full year adjusted earnings per share guidance by <unk> 16.

Rob: And we executed several business development opportunities, adding novel early stage programs and partnerships in oncology and immunology. Given our strong results. This quarter, we are raising our full year adjusted earnings per share guidance by <unk> 16.

Rob Michael: Given the strong results this quarter, we are raising our full-year adjusted earnings per share guidance by $0.16 and now expect adjusted EPS between $11.13 and $11.33. In summary, this is an exciting time for AbbVie, and I am extremely pleased with the momentum of our diverse portfolio. We're off to an excellent start to the year, and we are well positioned to deliver a high single-digit revenue CAGR through the end of the decade. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff? Thank you, Rob. I'll start with the quarterly results for immunology, which delivered total revenues of approximately $5.4 billion, exceeding our expectations. Skyrizi global sales were $2 billion, reflecting operational growth of 48%. We continue to see exceptional momentum across all of the approved indications.

Rob: Given our strong results. This quarter, we are raising our full year adjusted earnings per share guidance by <unk> 16.

Rob: In summary, this is an exciting time for AbbVie and I am extremely pleased with the momentum of our diverse portfolio. We're off to an excellent start to the year and we are well positioned to deliver a high single digit revenue CAGR through the end of the decade. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?

Rob: And $11 33. In summary, this is an exciting time for Abbvie and I am extremely pleased with the momentum of our diverse portfolio. We're off to an excellent start to the year and we are well positioned to deliver a high single digit revenue CAGR through the end of the decade with that I'll turn the call over to Jeff. Jeff for additional comments on our commercial highlights Jeff. Thank.

Rob: In summary, this is an exciting time for Abbvie and I am extremely pleased with the momentum of our diverse portfolio. We're off to an excellent start to the year and we are well positioned to deliver a high single digit revenue CAGR through the end of the decade with that I'll turn the call over to Jeff. Jeff for additional comments on our commercial highlights Jeff. Thank.

Rob: Jeff for additional comments on our commercial highlights Jeff. Thank.

Jeff Stewart: Thank you Rob. I'll start with the quarterly results for immunology, which delivered total revenues of approximately $5.4, billion exceeding our expectations. SKYRIZZI global sales were $2 billion, reflecting operational growth of 48%. We continue to see exceptional momentum across all of the approved indications. In psoriasis, SKYRIZZI is the clear market leader in the U.S Biologics psoriasis market with a total prescription share now above 35%. That's more than double the share of the next closest biologic therapy. Share is also ramping nicely in PSA, especially in the dermatology segment, where we are now capturing one out of every four new or switching in play biologic patients. Globally, SKYRIZZI has achieved psoriatic in play share leadership in nearly 30 key countries. In IBD, SKYRIZZI is on track to add more than $1 billion of incremental sales growth this year. We are seeing tremendous performance in Crohn's disease, where our compelling head to head data versus STELLARA is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U.S and Japan, as well as other key markets around the world.

Jeffrey Ryan Stewart: <unk> global sales were $2 billion, reflecting operational growth of 48%. We continue to see exceptional momentum across all of the approved indications.

Jeffrey Ryan Stewart: We continue to see exceptional momentum across all of the approved indications.

Jeff Stewart: In psoriasis, SKYRIZZI is the clear market leader in the U.S Biologics psoriasis market with a total prescription share now above 35%. That's more than double the share of the next closest biologic therapy. Share is also ramping nicely in PSA, especially in the dermatology segment, where we are now capturing one out of every four new or switching in play biologic patients. Globally, SKYRIZZI has achieved psoriatic in play share leadership in nearly 30 key countries.

Rob Michael: In psoriasis, Skyrizi is the clear market leader in the US biologic psoriasis market, with a total prescription share now above 35%. That's more than double the share of the next closest biologic therapy. Share is also ramping nicely in PSA, especially in the dermatology segment, where we are now capturing 1/4 of every new or switching in-play biologic patients. Globally, Skyrizi has achieved psoriatic in-play share leadership in nearly 30 key countries. In IBD, Skyrizi is on track to add more than $1 billion of incremental sales growth this year. We are seeing tremendous performance in Crohn's disease, where our compelling head-to-head data versus Stelara is driving a meaningful inflection of patient share. As a result, we have now achieved in-play share leadership in Crohn's across all lines of therapy in both the US and Japan, as well as other key markets around the world.

In psoriasis <unk> is the clear market leader in the U S. Biologics psoriasis market with a total prescription share now above 35% that's more than double the share of the next closest biologic therapy. Sure is also ramping nicely and PSA, especially in the dermatology segment, where we are now capturing one out of every four new or switching in play biologic patients. Globally <unk> has achieved psoriatic in play share leadership in nearly 30 key countries. In IBD Sky <unk> is on track to add more than $1 billion of incremental sales growth. This year, we are seeing tremendous performance in crohn's disease, where our compelling head to head data versus to Lora is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U S and Japan as well as other key markets around the world.

Jeffrey Ryan Stewart: Sure is also ramping nicely and PSA, especially in the dermatology segment, where we are now capturing one out of every four new or switching in play biologic patients. Globally <unk> has achieved psoriatic in play share leadership in nearly 30 key countries. In IBD Sky <unk> is on track to add more than $1 billion of incremental sales growth. This year, we are seeing tremendous performance in crohn's disease, where our compelling head to head data versus to Lora is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U S and Japan as well as other key markets around the world.

Jeffrey Ryan Stewart: Globally <unk> has achieved psoriatic in play share leadership in nearly 30 key countries. In IBD Sky <unk> is on track to add more than $1 billion of incremental sales growth. This year, we are seeing tremendous performance in crohn's disease, where our compelling head to head data versus to Lora is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U S and Japan as well as other key markets around the world.

Jeff Stewart: In IBD, SKYRIZZI is on track to add more than $1 billion of incremental sales growth this year. We are seeing tremendous performance in Crohn's disease, where our compelling head to head data versus STELLARA is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U.S and Japan, as well as other key markets around the world.

Jeffrey Ryan Stewart: In IBD Sky <unk> is on track to add more than $1 billion of incremental sales growth. This year, we are seeing tremendous performance in crohn's disease, where our compelling head to head data versus to Lora is driving a meaningful inflection of patient share. As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U S and Japan as well as other key markets around the world.

Jeffrey Ryan Stewart: As a result, we have now achieved in play share leadership in Crohn's across all lines of therapy in both the U S and Japan as well as other key markets around the world.

Jeffrey Ryan Stewart: And finally, we are preparing for the launch of SKYRIZZI in ulcerative colitis, which represents another substantial long term growth driver. We expect approval decisions in the middle of this year and anticipate rapid access in the U.S following our launch. Given the robust frontline capture for SKYRIZZI in Crohn's and the exceptional bio naive data we have generated in UC, we anticipate a strong launch. Turning now to RINVOQ with global sales of approximately $1.1 billion, reflecting operational growth of 61.9%. In Rome, we continued to see strong prescription growth across each of the four approved indications and I'm especially pleased with our performance in rheumatoid arthritis, where RINVOQ has achieved in play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

And finally, we are preparing for the launch of SKYRIZZI in ulcerative colitis, which represents another substantial long term growth driver. We expect approval decisions in the middle of this year and anticipate rapid access in the U.S following our launch. Given the robust frontline capture for SKYRIZZI in Crohn's and the exceptional bio naive data we have generated in UC, we anticipate a strong launch.

Rob Michael: And finally, we are preparing for the launch of Skyrizi in ulcerative colitis, which represents another substantial long-term growth driver. We expect approval decisions in the middle of this year and anticipate rapid access in the US following our launch. Given the robust frontline capture for Skyrizi in Crohn's and the exceptional Bio-naive data we have generated in UC, we anticipate a strong launch. Turning now to Rinvoq with global sales of approximately $1.1 billion, reflecting operational growth of 61.9%. In RA, we continue to see strong prescription growth across each of the four approved indications, and I'm especially pleased with our performance in rheumatoid arthritis, where Rinvoq has achieved in-play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations, with continued market share momentum globally. Importantly, we recently announced positive results from Level Up, our second head-to-head study in AD.

Jeffrey Ryan Stewart: Given the robust frontline capture for <unk> in Crohn's and the exceptional bio naive data we have generated in UC, we anticipate a strong launch. Turning now to Renova with global sales of approximately $1 $1 billion, reflecting operational growth of 61, 9%. In Rome, we continued to see strong prescription growth across each of the four approved indications and I'm, especially pleased with our performance in rheumatoid arthritis, where <unk> has achieved in play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

Jeffrey Ryan Stewart: Turning now to Renova with global sales of approximately $1 $1 billion, reflecting operational growth of 61, 9%. In Rome, we continued to see strong prescription growth across each of the four approved indications and I'm, especially pleased with our performance in rheumatoid arthritis, where <unk> has achieved in play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

Turning now to RINVOQ with global sales of approximately $1.1 billion, reflecting operational growth of 61.9%. In Rome, we continued to see strong prescription growth across each of the four approved indications and I'm especially pleased with our performance in rheumatoid arthritis, where RINVOQ has achieved in play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

Jeffrey Ryan Stewart: In Rome, we continued to see strong prescription growth across each of the four approved indications and I'm, especially pleased with our performance in rheumatoid arthritis, where <unk> has achieved in play share leadership in nearly 20 key international markets. Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

Jeffrey Ryan Stewart: Atopic dermatitis is tracking in line with our expectations with continued market share momentum globally.

Jeffrey Ryan Stewart: Importantly, we recently announced positive results from level up, our second head to head study in AD. Level up demonstrated RINVOQ's superiority for patients starting therapy on the 15 milligram dose versus DUPIXENT across key efficacy parameters, including the high levels of skin clearance and itch reduction. We anticipate these strong head to head results will support additional share capture, especially given RINVOQ's label use in the U.S, which requires that initiation with a 15 milligram dose. And in IBD, RINVOQ's uptake continues to be very strong. RINVOQ is capturing high teens in play patient share in ulcerative colitis as well as mid teens in play patient share in Crohn's disease. This performance is especially encouraging recognizing that we're still relatively early in the launch phase for both the UC and CD indications and the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like RINVOQ and IBD.

Importantly, we recently announced positive results from level up, our second head to head study in AD. Level up demonstrated RINVOQ's superiority for patients starting therapy on the 15 milligram dose versus DUPIXENT across key efficacy parameters, including the high levels of skin clearance and itch reduction. We anticipate these strong head to head results will support additional share capture, especially given RINVOQ's label use in the U.S, which requires that initiation with a 15 milligram dose.

Rob Michael: Level Up demonstrated Rinvoq's superiority for patients starting therapy on the 15-milligram dose versus Dupixent across key efficacy parameters, including the high levels of skin clearance and itch reduction. We anticipate these strong head-to-head results will support additional share capture, especially given Rinvoq's label use in the US, which requires that initiation with a 15-milligram dose. In IBD, Rinvoq's uptake continues to be very strong. Rinvoq is capturing high teens in-play patient share in ulcerative colitis, as well as mid-teens in-play patient share in Crohn's disease. This performance is especially encouraging, recognizing that we are still relatively early in the launch phase for both the UC and CD indications, and the lines of therapy are also expanding, with second-line plus growing even faster as patients cycle to newer, higher efficacy agents like Rinvoq in IBD.

Jeffrey Ryan Stewart: Level up demonstrating <unk> superiority for patients starting therapy on the 15 milligram dose versus do picks it across key efficacy parameters, including the high levels of skin clearance and itch reduction we anticipate these strong head to head results will support additional share capture. Actually given written books label use in the U S, which requires that initiation with a 15 milligram dose. And in IBD RIN Vilks uptake continues to be very strong where invoke is capturing high teens in play patient share in ulcerative colitis as well as mid teens in play patient share in Crohn's disease. This performance is especially encouraging recognizing that we're still relatively early in the launch phase for both the UC. And CD indications. And the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like revoke and IBD.

Jeffrey Ryan Stewart: Actually given written books label use in the U S, which requires that initiation with a 15 milligram dose. And in IBD RIN Vilks uptake continues to be very strong where invoke is capturing high teens in play patient share in ulcerative colitis as well as mid teens in play patient share in Crohn's disease. This performance is especially encouraging recognizing that we're still relatively early in the launch phase for both the UC. And CD indications. And the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like revoke and IBD.

And in IBD, RINVOQ's uptake continues to be very strong. RINVOQ is capturing high teens in play patient share in ulcerative colitis as well as mid teens in play patient share in Crohn's disease. This performance is especially encouraging recognizing that we're still relatively early in the launch phase for both the UC and CD indications and the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like RINVOQ and IBD.

Jeffrey Ryan Stewart: And in IBD RIN Vilks uptake continues to be very strong where invoke is capturing high teens in play patient share in ulcerative colitis as well as mid teens in play patient share in Crohn's disease. This performance is especially encouraging recognizing that we're still relatively early in the launch phase for both the UC. And CD indications. And the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like revoke and IBD.

Jeffrey Ryan Stewart: And CD indications. And the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like revoke and IBD.

Jeffrey Ryan Stewart: And the lines of therapy are also expanding with second line plus growing even faster as patients cycled to newer higher efficacy agents like revoke and IBD.

Jeffrey Ryan Stewart: Turning now to HUMIRA, which delivered global sales of approximately $2.3 billion, down 35.2% on an operational basis due to biosimilar competition. Erosion in the U.S played out slightly better than our expectations in the quarter with the vast majority of the impact this quarter driven by price. As previously communicated, the recent changes to the CVS template formularies were anticipated in our full year outlook for U.S Humira and the volume impact is tracking in line with our expectations. Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that HUMIRA will maintain parity access to biosimilars for a significant majority of patient lives this year.

Rob Michael: Turning now to Humira, which delivered global sales of approximately $2.3 billion, down 35.2% on an operational basis due to biosimilar competition. Erosion in the US played out slightly better than our expectations in the quarter, with the vast majority of the impact this quarter driven by price. As previously communicated, the recent changes to the CVS template formularies were anticipated in our full-year outlook for US Humira, and the volume impact is tracking in line with our expectations. Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that Humira will maintain parity access to biosimilars for a significant majority of patient lives this year. Moving now to oncology, where total revenues were more than $1.5 billion, exceeding our expectations.

Jeffrey Ryan Stewart: Erosion in the U S played out slightly better than our expectations in the quarter with the vast majority of the impact this quarter driven by price. As previously communicated the recent changes to the Cvs template formularies were anticipated in our full year outlook for U S. Humira. And the volume impact is tracking in line with our expectations. Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that Humira will maintain parity access to biosimilars for a significant majority of patient lives. This year.

Jeffrey Ryan Stewart: As previously communicated the recent changes to the Cvs template formularies were anticipated in our full year outlook for U S. Humira. And the volume impact is tracking in line with our expectations. Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that Humira will maintain parity access to biosimilars for a significant majority of patient lives. This year.

Jeffrey Ryan Stewart: And the volume impact is tracking in line with our expectations. Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that Humira will maintain parity access to biosimilars for a significant majority of patient lives. This year.

Jeffrey Ryan Stewart: Our guidance has also contemplated the impact of additional formulary changes that are expected to go into effect over the course of the year. We continue to anticipate that Humira will maintain parity access to biosimilars for a significant majority of patient lives. This year.

Jeffrey Ryan Stewart: Moving now to oncology where total revenues were more than $1.5 billion exceeding our expectations, IMBUVICA global revenues were $838 million, down 4.5%, reflecting continued competitive pressure in CLL. [inaudible] global sales were $614 million, up 16.3% on an operational basis, and we are seeing robust momentum internationally with strong performance for both CLL and AML. [inaudible] generated $64 million of sales to AbbVie, reflecting a partial quarter of revenue following the February close of the Immunogen acquisition. The [inaudible] sales and marketing team is executing very well and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCCN guidelines for both platinum sensitive and platinum resistant ovarian cancer patients, as well as the full label approval, which of course includes the compelling overall survival data that has never been achieved before in these platinum resistant patients will continue to drive strong [inaudible] uptake.

Moving now to oncology where total revenues were more than $1.5 billion exceeding our expectations, IMBUVICA global revenues were $838 million, down 4.5%, reflecting continued competitive pressure in CLL. [inaudible] global sales were $614 million, up 16.3% on an operational basis, and we are seeing robust momentum internationally with strong performance for both CLL and AML.

Rob Michael: Imbruvica global revenues were $838 million, down 4.5%, reflecting continued competitive pressure in CLL. Venclexta global sales were $614 million, up 16.3% on an operational basis, and we are seeing robust momentum internationally with strong performance for both CLL and AML. Elahere generated $64 million of sales to AbbVie, reflecting a partial quarter of revenue following the February close of the ImmunoGen acquisition. The Elahere sales and marketing team is executing very well, and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCCN guidelines for both platinum-sensitive and platinum-resistant ovarian cancer patients, as well as the full label approval, which of course includes the compelling overall survival data that has never been achieved before in these platinum-resistant patients, will continue to drive strong Elahere uptake.

Jeffrey Ryan Stewart: Ben collects the global sales were $614 million up 16, 3% on an operational basis, and we are seeing robust momentum internationally with strong performance for both <unk> and AML. Ella here generated $64 million of sales to abbvie, reflecting a partial quarter of revenue following the February close of Immunogen acquisition. The yellow here sales and marketing team is executing very well and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCC and guidelines for both platinum sensitive and platinum resistant ovarian cancer patients as well as the full label approval. Which of course includes the compelling overall survival data that has never been achieved before and these platinum resistant patients will continue to drive strong <unk> uptake.

[inaudible] generated $64 million of sales to AbbVie, reflecting a partial quarter of revenue following the February close of the Immunogen acquisition. The [inaudible] sales and marketing team is executing very well and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCCN guidelines for both platinum sensitive and platinum resistant ovarian cancer patients, as well as the full label approval, which of course includes the compelling overall survival data that has never been achieved before in these platinum resistant patients will continue to drive strong [inaudible] uptake.

Jeffrey Ryan Stewart: Ella here generated $64 million of sales to abbvie, reflecting a partial quarter of revenue following the February close of Immunogen acquisition. The yellow here sales and marketing team is executing very well and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCC and guidelines for both platinum sensitive and platinum resistant ovarian cancer patients as well as the full label approval. Which of course includes the compelling overall survival data that has never been achieved before and these platinum resistant patients will continue to drive strong <unk> uptake.

Jeffrey Ryan Stewart: The yellow here sales and marketing team is executing very well and I'm pleased with the smooth integration into our commercial organization. We anticipate that the recent positive updates in the NCC and guidelines for both platinum sensitive and platinum resistant ovarian cancer patients as well as the full label approval. Which of course includes the compelling overall survival data that has never been achieved before and these platinum resistant patients will continue to drive strong <unk> uptake.

Jeffrey Ryan Stewart: We anticipate that the recent positive updates in the NCC and guidelines for both platinum sensitive and platinum resistant ovarian cancer patients as well as the full label approval. Which of course includes the compelling overall survival data that has never been achieved before and these platinum resistant patients will continue to drive strong <unk> uptake.

Jeffrey Ryan Stewart: Which of course includes the compelling overall survival data that has never been achieved before and these platinum resistant patients will continue to drive strong <unk> uptake.

Jeffrey Ryan Stewart: Lastly, the global launch of EPKINLY in third line plus ELBCL is also performing well and we remain on track for the potential label expansion for follicular lymphoma later this year. Neuroscience total revenues were nearly $2 billion, up 16% on an operational basis, again ahead of our expectations. This robust performance was driven by continued double digit growth of VRAYLAR with global sales of $694 million, UBRELVY with total revenue of $203 million and QULIPTA with global sales of $131 million. Each of these leading assets continue to gain share and remain competitively well positioned.

Rob Michael: Lastly, the global launch of Epkinli in third-line plus DLBCL is also performing well, and we remain on track for the potential label expansion for follicular lymphoma later this year. Neuroscience total revenues were nearly $2 billion, up 16% on an operational basis, again ahead of our expectations. This robust performance is driven by continued double-digit growth of Vraylar, with global sales of $694 million, Ubrelvy, with total revenue of $203 million, and Qulipta, with global sales of $131 million. Each of these leading assets continue to gain share and remain competitively well-positioned. Botox Therapeutic is also performing well, especially in chronic migraine. Total global sales were $748 million, up 4.5% on an operational basis. And finally, we are very excited about 951, which will be commercialized as Vyalev in the US and represents a potentially transformative next-generation therapy for advanced Parkinson's disease.

Jeffrey Ryan Stewart: Neuroscience total revenues were nearly $2 billion up 16% on an operational basis again ahead of our expectations. This robust performance was driven by continued double digit growth of <unk> with global sales of $694 million <unk> with total revenue of 200. <unk> 3 million in Q, liptak with global sales of $131 million. Each of these leading assets continue to gain share and remain competitively well positioned.

Jeffrey Ryan Stewart: <unk> 3 million in Q, liptak with global sales of $131 million. Each of these leading assets continue to gain share and remain competitively well positioned.

Jeffrey Ryan Stewart: Each of these leading assets continue to gain share and remain competitively well positioned.

Jeffrey Ryan Stewart: Botox therapeutic is also performing well, especially in chronic migraine. Total global sales were $748 million, up 4.5% on an operational basis. And finally, we are very excited about 951, which will be commercialized as [inaudible] in the U.S and represents a potentially transformative next generation therapy for advanced Parkinson's disease. Feedback from the launches in Japan and Europe have been very encouraging and we remain on track for commercial approval in the U.S later this year. So overall, I'm extremely pleased with the strong and balanced growth across our therapeutic portfolio this quarter, a testament to our differentiated product profiles and commercial execution. And with that, I'll turn the call over to Carrie for additional comments on aesthetics. Carrie?

Jeffrey Ryan Stewart: And finally, we are very excited about 95, one which will be commercialized as via lab in the U S and represents a potentially transformative next generation therapy for advanced Parkinson's disease. Back from the launches in Japan, and Europe have been very encouraging and we remain on track for commercial approval in the U S. Later this year. So overall I'm extremely pleased with the strong and balanced growth across our therapeutic portfolio. This quarter, a testament to our differentiated product profiles and commercial execution. And with that I'll turn the call over to Kerry for additional comments on aesthetics Carey.

Rob Michael: Feedback from the launches in Japan and Europe has been very encouraging, and we remain on track for commercial approval in the US later this year. So overall, I'm extremely pleased with the strong and balanced growth across our therapeutic portfolio this quarter, a testament to our differentiated product profiles and commercial execution. And with that, I'll turn the call over to Carrie for additional comments on aesthetics. Carrie?

Jeffrey Ryan Stewart: Back from the launches in Japan, and Europe have been very encouraging and we remain on track for commercial approval in the U S. Later this year. So overall I'm extremely pleased with the strong and balanced growth across our therapeutic portfolio. This quarter, a testament to our differentiated product profiles and commercial execution. And with that I'll turn the call over to Kerry for additional comments on aesthetics Carey.

Jeffrey Ryan Stewart: So overall I'm extremely pleased with the strong and balanced growth across our therapeutic portfolio. This quarter, a testament to our differentiated product profiles and commercial execution. And with that I'll turn the call over to Kerry for additional comments on aesthetics Carey.

Jeffrey Ryan Stewart: And with that I'll turn the call over to Kerry for additional comments on aesthetics Carey.

Carrie Strom: Thank you, Jeff. Q1 global aesthetic sales were over $1.2 billion, reflecting a modest decline on an operational basis. In the US, aesthetic sales of $776 million were roughly flat versus the prior year. We continue to see sustained momentum in the facial injectable market recovery that emerged in the back half of last year. Consistent with the past few quarters, the toxin market grew by a mid-single-digit %. We saw similar year-over-year increases in the number of facial filler procedures, representing a return to quarterly market growth for the first time since early 2022. From a competitive perspective, our US aesthetics portfolio continues to perform well. Market share for both Botox Cosmetic and Juvéderm was stable in the first quarter, as these assets remain the clear market leaders.

Carrie Strom: Thank you, Jeff. First quarter global aesthetic sales were over $1.2 billion, reflecting a modest decline on an operational basis. In the US, aesthetic sales of $776 million were roughly flat versus the prior year. We continue to see sustained momentum in the facial injectable market recovery that emerged in the back half of last year. Consistent with the past few quarters, the toxin market grew by a mid single digit percentage. We saw similar year over year increases in the number of facial filler procedures, representing a return to quarterly market growth for the first time since early 2022.

Kerry: U S aesthetic sales of $776 million were roughly flat versus the prior year. We continue to see sustained momentum in the facial injectable market recovery that emerged in the back half of last year. Distant with the past few quarters, the toxin market grew by a mid single digit percentage, we saw similar year over year increases in the number of facial filler procedure, representing a return to quarterly market growth for the first time since early 2022.

Kerry: We continue to see sustained momentum in the facial injectable market recovery that emerged in the back half of last year. Distant with the past few quarters, the toxin market grew by a mid single digit percentage, we saw similar year over year increases in the number of facial filler procedure, representing a return to quarterly market growth for the first time since early 2022.

Kerry: Distant with the past few quarters, the toxin market grew by a mid single digit percentage, we saw similar year over year increases in the number of facial filler procedure, representing a return to quarterly market growth for the first time since early 2022.

Kerry: From a competitive perspective, our U.S aesthetics portfolio continues to perform well. Market share for both botox cosmetic and Juvederm was stable in the first quarter as these assets remain the clear market leaders. While we're pleased that the market share trends across U.S facial injectables are aligned with our previous expectations, our first quarter results were impacted by customers holding lower than normal inventory levels at quarter end.

From a competitive perspective, our U.S aesthetics portfolio continues to perform well. Market share for both botox cosmetic and Juvederm was stable in the first quarter as these assets remain the clear market leaders.

While we're pleased that the market share trends across U.S facial injectables are aligned with our previous expectations, our first quarter results were impacted by customers holding lower than normal inventory levels at quarter end.

Carrie Strom: While we're pleased that the market and share trends across US facial injectables are aligned with our previous expectations, our first quarter results were impacted by customers holding lower than normal inventory levels at quarter end. This dynamic relates to a decision made during the quarter to shift the timing of certain promotional activities into the second quarter. We therefore expect inventory levels to normalize in the second quarter and remain on track to deliver full-year aesthetic sales growth in the US. Internationally, first quarter aesthetic sales were $473 million, reflecting an operational decline of 5.5%. Consistent with our expectations, growth in China was impacted by persistent economic headwinds, as well as a challenging comparison versus the first quarter of last year, which benefited from a robust recovery post-COVID. We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Kerry: While we're pleased that the market share trends across U S. Facial injectables are aligned with our previous expectations. Our first quarter results were impacted by customers holding lower than normal inventory levels at quarter end.

This dynamic relates to a decision made during the quarter to shift the timing of certain promotional activities into the second quarter. We therefore expect inventory levels to normalize in the second quarter and remain on track to deliver full year aesthetic sales growth in the U.S. Internationally, first quarter aesthetic sales were $473 million, reflecting an operational decline of 5.5%. Consistent with our expectations, growth in China was impacted by persistent economic headwinds as well as a challenging comparison versus the first quarter of last year, which benefited from a robust recovery post COVID-19. We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Kerry: Internationally first quarter aesthetic sales were $473 million, reflecting an operational decline of five 5%. Consistent with our expectations of growth in China was impacted by persistent economic headwinds as well as a challenging comparison versus the first quarter of last year, which benefited from a robust recovery post COVID-19. We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Consistent with our expectations, growth in China was impacted by persistent economic headwinds as well as a challenging comparison versus the first quarter of last year, which benefited from a robust recovery post COVID-19. We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Kerry: Consistent with our expectations of growth in China was impacted by persistent economic headwinds as well as a challenging comparison versus the first quarter of last year, which benefited from a robust recovery post COVID-19. We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Kerry: We are monitoring the economic developments across China and continue to anticipate a recovery in the second half of this year.

Kerry: Our pipeline continues to generate important new assets. Uptake off our recently launched [inaudible] and [inaudible] products remained strong, underscoring the importance of innovation within anesthetics. Given this context, we are excited for the upcoming launch of Juvederm voluma XV for the treatment of [inaudible]. As the only HA dermal filler approved for use in the upper face, we anticipate the voluma XV introduction will activate more consumers and support the long term growth of our filler portfolio. And within our toxin pipeline, we continue to expect FDA approval of [inaudible] prominent indications for botox near the end of this year, enhancing botox growth potential as a non-invasive treatment to reduce the appearance of vertical [inaudible] and improve jaw line definition.

Our pipeline continues to generate important new assets. Uptake off our recently launched [inaudible] and [inaudible] products remained strong, underscoring the importance of innovation within anesthetics. Given this context, we are excited for the upcoming launch of Juvederm voluma XV for the treatment of [inaudible]. As the only HA dermal filler approved for use in the upper face, we anticipate the voluma XV introduction will activate more consumers and support the long term growth of our filler portfolio.

Carrie Strom: Our pipeline continues to generate important new assets. Uptake of our recently launched Juvéderm Volux and SkinVive products remains strong, underscoring the importance of innovation within aesthetics. Given this context, we are excited for the upcoming launch of Juvéderm Voluma XC for the treatment of Temple Hollows. As the only HA dermal filler approved for use in the upper face, we anticipate the Voluma XC introduction will activate more consumers and support the long-term growth of our filler portfolio. Within our toxin pipeline, we continue to expect FDA approval of the platysma prominence indication for Botox near the end of this year, enhancing Botox growth potential as a non-invasive treatment to reduce the appearance of vertical neck bands and improve jawline definition. We also remain on track to submit a new drug application for our short-acting toxin, BoNT/E, before the end of this year.

Kerry: Take off our recently launched <unk> and <unk> products remained strong underscoring the importance of innovation with anesthetics. Given this context, we are excited for the upcoming launch of Jupiter and <unk> for the treatment of temporal holidays at. That's the only Hh dermal filler approved for use in the upper face we anticipate the voluminous Z introduction will activate mark consumers and support the long term growth of our solar portfolio. And within our toxin pipeline, we continue to expect FDA approval at the party is not prominent indications for botox near the end of this year enhancing botox growth potential as a noninvasive treatment to reduce the appearance of vertical nexsan and improved childline definition.

Kerry: That's the only Hh dermal filler approved for use in the upper face we anticipate the voluminous Z introduction will activate mark consumers and support the long term growth of our solar portfolio. And within our toxin pipeline, we continue to expect FDA approval at the party is not prominent indications for botox near the end of this year enhancing botox growth potential as a noninvasive treatment to reduce the appearance of vertical nexsan and improved childline definition.

Kerry: And within our toxin pipeline, we continue to expect FDA approval at the party is not prominent indications for botox near the end of this year enhancing botox growth potential as a noninvasive treatment to reduce the appearance of vertical nexsan and improved childline definition.

And within our toxin pipeline, we continue to expect FDA approval of [inaudible] prominent indications for botox near the end of this year, enhancing botox growth potential as a non-invasive treatment to reduce the appearance of vertical [inaudible] and improve jaw line definition.

Kerry: We also remain on track to submit our new drug application for our short acting toxin [inaudible] before the end of this year. This novel toxin has demonstrated a rapid onset of action as well as a short duration of effect, meaningfully lowering the barrier for toxin adoption across consumers who have been considering but hesitant to try botox. Given this profile, [inaudible] has significant market expansion potential as satisfied patients would naturally convert to botox. Overall, the underlying trends across our aesthetics portfolio align well with our previous expectations and we remain on track to deliver high single digit global aesthetics growth this year. With that, I will turn the call over to Roopal.

We also remain on track to submit our new drug application for our short acting toxin [inaudible] before the end of this year. This novel toxin has demonstrated a rapid onset of action as well as a short duration of effect, meaningfully lowering the barrier for toxin adoption across consumers who have been considering but hesitant to try botox. Given this profile, [inaudible] has significant market expansion potential as satisfied patients would naturally convert to botox.

Carrie Strom: This novel toxin has demonstrated a rapid onset of action, as well as a short duration of effect, meaningfully lowering the barrier for toxin adoption across consumers who have been considering but hesitant to try Botox. Given this profile, BoNT/E has significant market expansion potential as satisfied patients would naturally convert to Botox. Overall, the underlying trends across our aesthetics portfolio align well with our previous expectations, and we remain on track to deliver high single-digit global aesthetics growth this year. With that, I'll turn the call over to Roopal.

Kerry: This novel toxin has demonstrated a rapid onset of action as well as a short duration of effect meaningfully lowering the barrier for toxin adoption across consumers, who have been considering but hesitant to try botox. Given this profile <unk> has significant market expansion potential as satisfied patients with naturally convert at that time. Overall, the underlying trends across our aesthetics portfolio align well with our previous expectations and we remain on track to deliver high single digit global aesthetics growth this year. That I will turn the call over to Rip off.

Overall, the underlying trends across our aesthetics portfolio align well with our previous expectations and we remain on track to deliver high single digit global aesthetics growth this year. With that, I will turn the call over to Roopal.

Kerry: Overall, the underlying trends across our aesthetics portfolio align well with our previous expectations and we remain on track to deliver high single digit global aesthetics growth this year. That I will turn the call over to Rip off.

Kerry: That I will turn the call over to Rip off.

Roopal Thakkar: Thank you, Carrie. I'll start with immunology. We recently announced positive top-line results from two phase 3 studies for Rinvoq in dermatology and rheumatology. In the Level Up study, which evaluated Rinvoq against Dupixent in atopic dermatitis, Rinvoq demonstrated superiority on the primary endpoint at week 16, which was a composite endpoint measuring skin clearance and itch reduction. Twice as many Rinvoq patients achieved this very stringent endpoint compared to Dupixent. Rinvoq also demonstrated superiority on all ranked secondary endpoints in this trial. Level Up was a study in which patients started on Rinvoq 15 mg and could escalate to 30 mg if they did not achieve treatment goals, which is how Rinvoq is prescribed for atopic dermatitis in the US. We also saw very rapid responses, with Rinvoq demonstrating superiority on itch as early as week 2 and on skin lesions as early as week 4.

Roopal Thakkar: Thank you Carrie. I'll start with immunology. We recently announced positive topline results from two phase III studies for [inaudible] in dermatology and rheumatology. In the level up study, which evaluated RINVOQ against [inaudible] in atopic dermatitis, RINVOQ demonstrated superiority on the primary endpoint at week 16, which was a composite endpoint measuring skin clearance and its reduction. Twice as many RINVOQ patients achieve this very stringent endpoint compared to [inaudible]. RINVOQ also demonstrated superiority on all ranked secondary endpoints in this trial.

Rip: And the level up study, which evaluated <unk> against the pillow Mab in atopic dermatitis RIN, both demonstrated superiority on the primary endpoint at week, 16, which was a composite endpoint measuring skin clearance and its reduction twice. Twice as many <unk> patients achieve this very stringent endpoint compared to diplomat <unk> also demonstrated superiority on all ranked secondary endpoints in this trial.

Rip: Twice as many <unk> patients achieve this very stringent endpoint compared to diplomat <unk> also demonstrated superiority on all ranked secondary endpoints in this trial.

Rip: Level up was a study in which patients started on RINVOQ 15 milligrams and could escalate to 30 milligrams if they did not achieve treatment goal, which is how RINVOQ is prescribed for atopic dermatitis in the U.S. We also saw very rapid responses with RINVOQ demonstrating superiority on itch as early as week two and on skin lesions as early as week four. RINVOQ's safety profile in the Level up trial was consistent with what has been observed in previous studies. There were no serious infections in patients treated with RINVOQ and one in the [inaudible] group. The rate of serious adverse events was similar across treatment arms. There were no malignancies, mace events or [inaudible] reported in either treatment group.

Level up was a study in which patients started on RINVOQ 15 milligrams and could escalate to 30 milligrams if they did not achieve treatment goal, which is how RINVOQ is prescribed for atopic dermatitis in the U.S. We also saw very rapid responses with RINVOQ demonstrating superiority on itch as early as week two and on skin lesions as early as week four.

Rip: We also saw very rapid responses with rainbow demonstrating superiority on itch as early as week, two and on skin lesions as early as week four. <unk> safety profile and the level of trial was consistent with what has been observed in previous studies there. There were no serious infections in patients treated with <unk> and one in the <unk> group. The rate of serious adverse events. It was similar across treatment arms, there were no malignancies, mace events or <unk> reported in either treatment group.

Roopal Thakkar: Rinvoq's safety profile in the Level Up trial was consistent with what has been observed in previous studies. There were no serious infections in patients treated with Rinvoq and one in the Dupixent group. The rate of serious adverse events was similar across treatment arms. There were no malignancies, MACE events, or VTEs reported in either treatment group. Based on these data, as well as results from previous phase 3 studies, we remain very confident in Rinvoq's profile in atopic dermatitis, and we believe it offers meaningful advantages over other products on the market today. We also announced positive top-line results from our phase 3 Select Giant Cell Arteritis trial, which evaluated Rinvoq in combination with a 26-week steroid taper regimen compared to patients receiving placebo in combination with a 52-week steroid taper.

Rip: <unk> safety profile and the level of trial was consistent with what has been observed in previous studies there. There were no serious infections in patients treated with <unk> and one in the <unk> group. The rate of serious adverse events. It was similar across treatment arms, there were no malignancies, mace events or <unk> reported in either treatment group.

RINVOQ's safety profile in the Level up trial was consistent with what has been observed in previous studies. There were no serious infections in patients treated with RINVOQ and one in the [inaudible] group. The rate of serious adverse events was similar across treatment arms. There were no malignancies, mace events or [inaudible] reported in either treatment group.

Rip: There were no serious infections in patients treated with <unk> and one in the <unk> group. The rate of serious adverse events. It was similar across treatment arms, there were no malignancies, mace events or <unk> reported in either treatment group.

Rip: The rate of serious adverse events. It was similar across treatment arms, there were no malignancies, mace events or <unk> reported in either treatment group.

Rip: It was similar across treatment arms, there were no malignancies, mace events or <unk> reported in either treatment group.

Rip: Based on these data, as well as results from previous phase III studies, we remain very confident in RINVOQ's profile in atopic dermatitis and we believe it offers meaningful advantages over other products on the market today. We also announced positive topline results from our phase III select giant cell arteritis trial, which evaluated RINVOQ in combination with a 26 week steroid taper regimen compared to patients receiving placebo in combination with a 52-week steroid taper. In this study, RINVOQ 15 milligrams met the primary and key secondary endpoints, demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare and reduction in cumulative steroid exposure at week 52. Importantly, RINVOQ's safety profile was consistent with what has been observed in more than 15,000 patients previously studied across control trials. The mean age in this population was 71,

Based on these data, as well as results from previous phase III studies, we remain very confident in RINVOQ's profile in atopic dermatitis and we believe it offers meaningful advantages over other products on the market today.

Rip: We also announced positive topline results from our phase III select giant cell arteritis trial. Which evaluated <unk> in combination with a 26 week steroid taper regimen compared to patients receiving placebo in combination with a 52 week steroid taper. In this study revoke 15 milligrams met the primary and key secondary endpoints demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare and reduction in cumulative steroid exposure at week 52. Importantly, <unk> safety profile was consistent with what has been observed in more than 15000 patients previously studied across control trials. The mean age in this population was 71.

We also announced positive topline results from our phase III select giant cell arteritis trial, which evaluated RINVOQ in combination with a 26 week steroid taper regimen compared to patients receiving placebo in combination with a 52-week steroid taper. In this study, RINVOQ 15 milligrams met the primary and key secondary endpoints, demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare and reduction in cumulative steroid exposure at week 52. Importantly, RINVOQ's safety profile was consistent with what has been observed in more than 15,000 patients previously studied across control trials. The mean age in this population was 71,

Rip: Which evaluated <unk> in combination with a 26 week steroid taper regimen compared to patients receiving placebo in combination with a 52 week steroid taper. In this study revoke 15 milligrams met the primary and key secondary endpoints demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare and reduction in cumulative steroid exposure at week 52. Importantly, <unk> safety profile was consistent with what has been observed in more than 15000 patients previously studied across control trials. The mean age in this population was 71.

Roopal Thakkar: In the study, Rinvoq 15 milligrams met the primary and key secondary endpoints, demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare, and reduction in cumulative steroid exposure at week 52. Importantly, Rinvoq's safety profile was consistent with what has been observed in more than 15,000 patients previously studied across controlled trials. The mean age in this population was 71, which is the oldest population studied to date with Rinvoq, and the average prednisone equivalent dose at baseline was almost 35 milligrams. Rates of serious adverse events and VTEs were similar across treatment groups. There were no MACE events in the Rinvoq arm, while there were two in the placebo group. Based on the results from the Select GCA trial, we believe Rinvoq has the potential to be a safe and tolerable oral treatment option.

Rip: In this study revoke 15 milligrams met the primary and key secondary endpoints demonstrating superiority on sustained remission from week 12 through week 52, as well as on disease flare and reduction in cumulative steroid exposure at week 52. Importantly, <unk> safety profile was consistent with what has been observed in more than 15000 patients previously studied across control trials. The mean age in this population was 71.

Rip: Importantly, <unk> safety profile was consistent with what has been observed in more than 15000 patients previously studied across control trials. The mean age in this population was 71.

Importantly, RINVOQ's safety profile was consistent with what has been observed in more than 15,000 patients previously studied across control trials. The mean age in this population was 71, which is the oldest population studied to date with RINVOQ and the average prednisone equivalent dose at baseline was almost 35 milligrams. [inaudible] serious adverse events and VTE's were similar across treatment groups. There were no mace events in the RINVOQ trial while there were two in the placebo group. Based on the results from the select GCA trial, we believe RINVOQ has the potential to be a safe and tolerable oral treatment option. We plan to submit our regulatory applications for this indication later this year. We continue to make very good progress with our inflammatory bowel disease programs. We anticipate several advancements this year including the initiation of a phase two study for [inaudible] in ulcerative colitis, the start of our phase II Crohn's disease platform study, which will evaluate combinations of SKYRIZZI with [inaudible] and other novel biologics. And we remain on track for approval decisions for SKYRIZZI in ulcerative colitis with the U.S expected in the second quarter and Europe in the second half of the year.

Rip: The mean age in this population was 71.

Rip: which is the oldest population studied to date with RINVOQ and the average prednisone equivalent dose at baseline was almost 35 milligrams. [inaudible] serious adverse events and VTE's were similar across treatment groups. There were no mace events in the RINVOQ trial while there were two in the placebo group. Based on the results from the select GCA trial, we believe RINVOQ has the potential to be a safe and tolerable oral treatment option. We plan to submit our regulatory applications for this indication later this year. We continue to make very good progress with our inflammatory bowel disease programs. We anticipate several advancements this year including the initiation of a phase two study for [inaudible] in ulcerative colitis,

Rip: It's a serious adverse events and V. Tes were similar across treatment groups. There were no mace events in the Rainbow car, while there were two in the placebo group. Based on the results from the select DCA trial, we believe <unk> has the potential to be a safe and tolerable oral treatment option, we plan to submit our regulatory applications for this indication later this year. We continue to make very good progress with our inflammatory bowel disease programs, we anticipate several advancements this year <unk>. Including. The initiation of a phase two study for <unk> in ulcerative colitis.

Based on the results from the select DCA trial, we believe <unk> has the potential to be a safe and tolerable oral treatment option, we plan to submit our regulatory applications for this indication later this year. We continue to make very good progress with our inflammatory bowel disease programs, we anticipate several advancements this year <unk>. Including. The initiation of a phase two study for <unk> in ulcerative colitis.

Roopal Thakkar: We plan to submit our regulatory applications for this indication later this year. We continue to make very good progress with our inflammatory bowel disease programs. We anticipate several advancements this year, including the initiation of a phase two study for Lutikizumab in ulcerative colitis, the start of our phase two Crohn's disease platform study, which will evaluate combinations of Skyrizi with Lutikizumab and other novel biologics. We remain on track for approval decisions for Skyrizi in ulcerative colitis, with the US expected in Q2 and Europe in the H2 of the year. We also continue to invest in external innovation to expand our immunology pipeline, as evidenced by four deals that we announced in Q1.

Rip: We continue to make very good progress with our inflammatory bowel disease programs, we anticipate several advancements this year <unk>. Including. The initiation of a phase two study for <unk> in ulcerative colitis.

Rip: Including. The initiation of a phase two study for <unk> in ulcerative colitis.

Rip: The initiation of a phase two study for <unk> in ulcerative colitis.

Rip: the start of our phase II Crohn's disease platform study, which will evaluate combinations of SKYRIZZI with [inaudible] and other novel biologics. And we remain on track for approval decisions for SKYRIZZI in ulcerative colitis with the U.S expected in the second quarter and Europe in the second half of the year. We also continue to invest in external innovation to expand our immunology pipeline, as evidenced by four deals that we announced in the first quarter. These include,

the start of our phase II Crohn's disease platform study, which will evaluate combinations of SKYRIZZI with [inaudible] and other novel biologics. And we remain on track for approval decisions for SKYRIZZI in ulcerative colitis with the U.S expected in the second quarter and Europe in the second half of the year. We

Rip: And we remain on track for approval decisions for Sky Rizzi in ulcerative colitis with the U S expected in the second quarter in Europe in the second half of the year. We also continue to invest in external innovation to expand our immunology pipeline as evidenced by four deals that we announced in the first quarter. <unk> include.

Rip: We also continue to invest in external innovation to expand our immunology pipeline as evidenced by four deals that we announced in the first quarter. <unk> include.

We also continue to invest in external innovation to expand our immunology pipeline, as evidenced by four deals that we announced in the first quarter. These include, the acquisition of Lando, Biopharma, which brings an oral NL. Rx one agonist currently in phase two for ulcerative colitis. A partnership with OC Immuno Therapeutics to develop a novel Cam R23 agonist antibody for inflammatory conditions, such as IBD and RA, a collaboration with harvest therapeutics to utilize their immune tolerization platform to develop novel therapies for IBD, and the collaboration with [inaudible] biotherapeutics to develop conditionally active multi-specific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Roopal Thakkar: These include the acquisition of Landos Biopharma, which brings an oral NLRX1 agonist currently in phase 2 for ulcerative colitis, a partnership with OSE Immunotherapeutics to develop a novel ChemR23 agonist antibody for inflammatory conditions such as IBD and RA, a collaboration with Parvus Therapeutics to utilize their immune tolerization platform to develop novel therapies for IBD, and a collaboration with Tentarix Biotherapeutics to develop conditionally active multispecific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies. Moving to oncology, where in the quarter we closed the ImmunoGen transaction, which brings exciting programs in both solid and blood cancers. Last month, Elahere received full approval from the FDA for FR-alpha positive platinum-resistant ovarian cancer in patients treated with up to three prior therapies.

Rip: <unk> include.

Rip: the acquisition of Lando, Biopharma, which brings an oral NL. Rx one agonist currently in phase two for ulcerative colitis. A partnership with OC Immuno Therapeutics to develop a novel Cam R23 agonist antibody for inflammatory conditions, such as IBD and RA, a collaboration with harvest therapeutics to utilize their immune tolerization platform to develop novel therapies for IBD, and the collaboration with [inaudible] biotherapeutics to develop conditionally active multi-specific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Rip: A partnership with Oc immuno therapeutics to develop a novel Cam are 23 agonist antibody for inflammatory conditions, such as IBD and raw. A collaboration with harvest therapeutics to utilize their immune tolerance nation platform to develop novel therapies for IBD. And the collaboration with <unk> biotherapeutics to develop conditionally active multi specific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Rip: A collaboration with harvest therapeutics to utilize their immune tolerance nation platform to develop novel therapies for IBD. And the collaboration with <unk> biotherapeutics to develop conditionally active multi specific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Rip: And the collaboration with <unk> biotherapeutics to develop conditionally active multi specific biologics in immunology and oncology. We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Rip: We are excited to partner with these companies who are all pursuing very innovative approaches to developing transformative therapies.

Rip: Moving to oncology. Near end the quarter, we closed the Immunogen transaction, which brings exciting programs in both solid and blood cancers. Last month, ELAHERE received full approval from the FDA for Fr Alpha positive platinum resistant ovarian cancer in patients treated with up to three prior therapies. This conversion to full approval was based on data from the confirmatory phase III Mirasol trial, where ELAHERE demonstrated an overall survival benefit and significantly reduced the risk of cancer progression. We expect to see results from additional Immunogen programs this year, including data from the phase two Piccolo study evaluating ELAHERE as a monotherapy in Fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment with platinum based therapies.

Moving to oncology. Near end the quarter, we closed the Immunogen transaction, which brings exciting programs in both solid and blood cancers. Last month, ELAHERE received full approval from the FDA for Fr Alpha positive platinum resistant ovarian cancer in patients treated with up to three prior therapies. This conversion to full approval was based on data from the confirmatory phase III Mirasol trial, where ELAHERE demonstrated an overall survival benefit and significantly reduced the risk of cancer progression.

Rip: In the quarter, we closed the immunogen transaction, which brings exciting programs in both solid and blood cancers. Last month <unk> received full approval from the FDA for Fr Alpha positive platinum resistant ovarian cancer in patients treated with up to three prior therapies. This conversion to full approval was based on data from the confirmatory phase III Mirasol trial, where <unk> demonstrated an overall survival benefit and significantly reduce the risk of cancer progression. We expect to see results from additional immuno Gen programs this year, including data from the phase two Piccolo study evaluating <unk> as a monotherapy in fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment. Platinum based therapies.

Rip: Last month <unk> received full approval from the FDA for Fr Alpha positive platinum resistant ovarian cancer in patients treated with up to three prior therapies. This conversion to full approval was based on data from the confirmatory phase III Mirasol trial, where <unk> demonstrated an overall survival benefit and significantly reduce the risk of cancer progression. We expect to see results from additional immuno Gen programs this year, including data from the phase two Piccolo study evaluating <unk> as a monotherapy in fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment. Platinum based therapies.

Roopal Thakkar: This conversion to full approval was based on data from the confirmatory phase 3 Mirasol trial, where Elahere demonstrated an overall survival benefit and significantly reduced the risk of cancer progression. We expect to see results from additional ImmunoGen programs this year, including data from the phase 2 Piccolo study evaluating Elahere as a monotherapy in FR-alpha positive third-line plus platinum-sensitive ovarian cancer patients who are not eligible for retreatment with platinum-based therapies. We expect to see data in the second half of the year from a potentially registration-enabling phase 2 trial for our CD123 targeting ADC, Pivec, in a rare blood cancer called blastic plasmacytoid dendritic cell neoplasm. Now, moving to program updates in hematologic oncology.

Rip: This conversion to full approval was based on data from the confirmatory phase III Mirasol trial, where <unk> demonstrated an overall survival benefit and significantly reduce the risk of cancer progression. We expect to see results from additional immuno Gen programs this year, including data from the phase two Piccolo study evaluating <unk> as a monotherapy in fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment. Platinum based therapies.

We expect to see results from additional Immunogen programs this year, including data from the phase two Piccolo study evaluating ELAHERE as a monotherapy in Fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment with platinum based therapies. And we expect to see data in the second half of the year from a potentially registration enabling phase II trial for our CD 123 targeting ADC, [inaudible] in a rare blood cancer called blasted plasmacytoid dendritic cell neoplasm.

Rip: We expect to see results from additional immuno Gen programs this year, including data from the phase two Piccolo study evaluating <unk> as a monotherapy in fr Alpha positive third line plus platinum sensitive ovarian cancer patients who are not eligible for re treatment. Platinum based therapies.

Rip: Platinum based therapies.

Rip: And we expect to see data in the second half of the year from a potentially registration enabling phase II trial for our CD 123 targeting ADC, [inaudible] in a rare blood cancer called blasted plasmacytoid dendritic cell neoplasm. Now moving to program updates in hematologic oncology. Based on the totality of the data from our transform one trial and following recent feedback from regulators, we will not be submitting [inaudible] for approval in myelofibrosis, and we will wind down the transform two study in the relapsed refractory setting. In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U.S and Europe for our EPKINLEY and relapsed refractory follicular lymphoma. The phase III readout from the the [inaudible] Verona trial in treatment naive, higher risk MDS and initiation of a phase III monotherapy study for ABBV 383 and third line multiple myeloma.

And we expect to see data in the second half of the year from a potentially registration enabling phase II trial for our CD 123 targeting ADC, [inaudible] in a rare blood cancer called blasted plasmacytoid dendritic cell neoplasm.

Now moving to program updates in hematologic oncology. Based on the totality of the data from our transform one trial and following recent feedback from regulators, we will not be submitting [inaudible] for approval in myelofibrosis, and we will wind down the transform two study in the relapsed refractory setting. In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U.S and Europe for our EPKINLEY and relapsed refractory follicular lymphoma. The phase III readout from the the [inaudible] Verona trial in treatment naive, higher risk MDS and initiation of a phase III monotherapy study for ABBV 383 and third line multiple myeloma.

Rip: Now moving to program updates in hematologic oncology based on the totality of the data from our transform one trial and following recent feedback from regulators, we will not be submitting the <unk> for approval in myelofibrosis, and we will wind down the transform two study in the relapsed. Refractory setting. In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U S and Europe for our kinley and relapsed refractory Follicular lymphoma.

Roopal Thakkar: Based on the totality of the data from our Transform One trial and following recent feedback from regulators, we will not be submitting Navitoclax for approval in myelofibrosis, and we will wind down the Transform Two study in the relapsed refractory setting. In other areas of HEMONC, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the US and Europe for Epkinly in relapsed refractory follicular lymphoma, the phase 3 readout from the Venclexta Verona trial in treatment naive higher risk MDS, and initiation of a phase 3 monotherapy study for ABBV-383 in third-line multiple myeloma. We remain very excited about this asset's potential to become a best-in-class BCMA CD3 bispecific by providing deep, durable responses and low incidence and severity of CRS, with the potential for outpatient administration, limited or no step-up dosing, and monthly administration from the beginning of treatment.

Rip: Refractory setting. In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U S and Europe for our kinley and relapsed refractory Follicular lymphoma.

Rip: In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U S and Europe for our kinley and relapsed refractory Follicular lymphoma.

In other areas of Hema, we remain on track for several regulatory and clinical milestones this year, including regulatory approvals in the U.S and Europe for our EPKINLEY and relapsed refractory follicular lymphoma. The phase III readout from the the [inaudible] Verona trial in treatment naive, higher risk MDS and initiation of a phase III monotherapy study for ABBV 383 and third line multiple myeloma.

Rip: The phase III readout from the then collect stuff Verona trial in treatment naive higher risk Mds. And initiation of a phase III monotherapy study for ABB, the 383 and third line multiple myeloma.

Rip: And initiation of a phase III monotherapy study for ABB, the 383 and third line multiple myeloma.

We remain very excited about this asset potential to become a best in class BCMA CD3 by specific by providing deep durable responses and low incidence and severity of CRS with the potential for outpatient administration limited or no step up dosing and monthly administration from the beginning of treatment.

Rip: Moving to other areas of our pipeline. In aesthetics, we remain on track to submit our regulatory application for [inaudible] in the second half of the year. Our rapid onset, short acting toxin has a highly differentiated clinical profile compared to currently available neurotoxins. [inaudible] is designed for patients that are considering using facial toxins for the first time or for a special event and will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients would naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 951 where we have received regulatory approvals in 33 countries thus far and anticipate an approval decision in the U.S in the second quarter.

Rip: Moving to other areas of our pipeline. And aesthetics, we remain on track to submit our regulatory application for <unk>. In the second half of the year, our rapid onset short acting toxin is a highly differentiated clinical profile compared to currently available neurotoxins. <unk> T is designed for patients that are considering using facial toxins for the first time or for a special event. And will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Roopal Thakkar: Moving to other areas of our pipeline. In aesthetics, we remain on track to submit our regulatory application for BoNT/E in the second half of the year, our rapid-onset short-acting toxin as a highly differentiated clinical profile compared to currently available neurotoxins. BoNT/E is designed for patients that are considering using facial toxins for the first time or for a special event and will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients would naturally transition to Botox following experience with this trial toxin. In neuroscience, we continue to make good progress with ABBV-951, where we have received regulatory approvals in 33 countries thus far and anticipate an approval decision in the US in Q2.

Rip: And aesthetics, we remain on track to submit our regulatory application for <unk>. In the second half of the year, our rapid onset short acting toxin is a highly differentiated clinical profile compared to currently available neurotoxins. <unk> T is designed for patients that are considering using facial toxins for the first time or for a special event. And will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: In the second half of the year, our rapid onset short acting toxin is a highly differentiated clinical profile compared to currently available neurotoxins. <unk> T is designed for patients that are considering using facial toxins for the first time or for a special event. And will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: <unk> T is designed for patients that are considering using facial toxins for the first time or for a special event. And will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: And will allow them to experience results over a very short period of time. This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: This novel toxin will complement our existing business as patients with naturally transition to botox following experience with this trial toxin. And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: And in neuroscience, we continue to make good progress with 95, one where we have received regulatory approvals in. In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Rip: In 33 countries, thus far and anticipate an approval decision in the U S in the second quarter.

Roopal Thakkar: As Rob mentioned, we remain on track to close the Cerevel transaction in the middle of this year. Cerevel recently announced positive top-line results from their phase three Tempo Three trial evaluating Tavapadon as adjunctive therapy to levodopa in patients with Parkinson's disease. In the study, Tavapadon met the primary endpoint, demonstrating a 1.1-hour increase in total on time without troublesome dyskinesia compared to patients treated with levodopa and placebo. Tavapadon also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo. Two additional phase three studies for Tavapadon in Parkinson's disease are expected to read out later this year. The Emraclidine pivotal studies in schizophrenia remain on track to begin reading out later this year as well. We look forward to providing updates on these programs once the transaction has closed.

Rip: As Rob mentioned, we remain on track to close the Cerevel transaction in the middle of this year. Cerevel recently announced positive top line results from their phase III tempo three trial evaluating [inaudible] as adjunct therapy to levodopa in patients with Parkinson's disease. In this study, [inaudible] met the primary endpoint demonstrating a 1.1 hour increase in total on time without troublesome dyskinesia compared to patients treated with levodopa and placebo. [inaudible] also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo. Two additional phase III studies for [inaudible] in Parkinson's disease are expected to read out later this year. The EMRACLIDINE pivotal studies in schizophrenia remain on track to begin reading out later this year as well. We look forward to providing updates on these programs once the transaction has closed. With that, I'll turn the call over to Scott.

As Rob mentioned, we remain on track to close the Cerevel transaction in the middle of this year. Cerevel recently announced positive top line results from their phase III tempo three trial evaluating [inaudible] as adjunct therapy to levodopa in patients with Parkinson's disease. In this study, [inaudible] met the primary endpoint demonstrating a 1.1 hour increase in total on time without troublesome dyskinesia compared to patients treated with levodopa and placebo. [inaudible] also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo.

Rip: <unk> recently announced positive top line results from their phase III tempo three trial evaluating <unk> as adjunct therapy to levodopa in patients with Parkinson's disease. In this study <unk> met the primary endpoint demonstrating a one one hour. Greece and total on time without troublesome dyskinesia compared to patients treated with levodopa and placebo. <unk> also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo. Two additional phase III studies for <unk> in Parkinson's disease are expected to read out later this year. The <unk> pivotal studies in schizophrenia remain on track to begin reading out later this year as well we look forward to providing updates on these programs once the transaction has closed.

Rip: Greece and total on time without troublesome dyskinesia compared to patients treated with levodopa and placebo. <unk> also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo. Two additional phase III studies for <unk> in Parkinson's disease are expected to read out later this year. The <unk> pivotal studies in schizophrenia remain on track to begin reading out later this year as well we look forward to providing updates on these programs once the transaction has closed.

Rip: <unk> also met the key secondary endpoint in the trial, providing a significant reduction in off time compared to levodopa and placebo. Two additional phase III studies for <unk> in Parkinson's disease are expected to read out later this year. The <unk> pivotal studies in schizophrenia remain on track to begin reading out later this year as well we look forward to providing updates on these programs once the transaction has closed.

Two additional phase III studies for [inaudible] in Parkinson's disease are expected to read out later this year. The EMRACLIDINE pivotal studies in schizophrenia remain on track to begin reading out later this year as well. We look forward to providing updates on these programs once the transaction has closed. With that, I'll turn the call over to Scott.

Rip: Two additional phase III studies for <unk> in Parkinson's disease are expected to read out later this year. The <unk> pivotal studies in schizophrenia remain on track to begin reading out later this year as well we look forward to providing updates on these programs once the transaction has closed.

The <unk> pivotal studies in schizophrenia remain on track to begin reading out later this year as well we look forward to providing updates on these programs once the transaction has closed.

Roopal Thakkar: With that, I'll turn the call over to Scott. Thank you, Roopal. Starting with our Q1 results, we reported adjusted earnings per share of $2.31, which is $0.11 above our guidance midpoint. These results include a $0.08 unfavorable impact from acquired IP R&D expense. Total net revenues were $12.3 billion, $400 million ahead of our guidance, and reflecting a return to growth of 1.6% on an operational basis, excluding a 0.9% unfavorable impact from foreign exchange. Importantly, these results reflect more than 15% sales growth from our ex-Humira growth platform. The adjusted operating margin ratio was 42.2% of sales. This includes adjusted gross margin of 82.9%, adjusted R&D expense of 14.7%, acquired IP R&D expense of 1.3%, and adjusted SG&A expense of 24.6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14.8%.

Scott Reents: Thank you Roopal. Starting with our first quarter results, we reported adjusted earnings per share of $2.31, which is 11% above our guidance midpoint. These results include an 8 cent unfavorable impact from acquired IP R&D expense. Total net revenues were $12.3 billion, $400 million ahead of our guidance and reflecting a return to growth of 1.6% on an operational basis, excluding a 0.9% unfavorable impact from foreign exchange.

Rip: Ruble. Starting with our first quarter results, we reported adjusted earnings per share of $2.31. Which is 11% above our guidance midpoint. These results include <unk> <unk> unfavorable impact from acquired IP R&D expense. Total net revenues were $12 $3 billion $400 million ahead of our guidance Andrew. And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Scott: Starting with our first quarter results, we reported adjusted earnings per share of $2.31. Which is 11% above our guidance midpoint. These results include <unk> <unk> unfavorable impact from acquired IP R&D expense. Total net revenues were $12 $3 billion $400 million ahead of our guidance Andrew. And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Scott: Which is 11% above our guidance midpoint. These results include <unk> <unk> unfavorable impact from acquired IP R&D expense. Total net revenues were $12 $3 billion $400 million ahead of our guidance Andrew. And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Scott: These results include <unk> <unk> unfavorable impact from acquired IP R&D expense. Total net revenues were $12 $3 billion $400 million ahead of our guidance Andrew. And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Christopher Thomas Schott: Total net revenues were $12 $3 billion $400 million ahead of our guidance Andrew. And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Christopher Thomas Schott: And reflecting a return to growth of one 6% on an operational basis. Excluding a 0.9% unfavorable impact from foreign exchange.

Excluding a 0.9% unfavorable impact from foreign exchange.

Christopher Thomas Schott: Importantly, these results reflect more than 15% sales growth from our ex-HUMIRA growth platform. The adjusted operating margin ratio was 42.2% of sales. This includes adjusted gross margin of 82.9%, adjusted R&D expense of 14.7%, acquired IP R&D expense of 1.3%, and adjusted SG&A expense of 24.6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14.8%.

Christopher Thomas Schott: The adjusted operating margin ratio was 42, 2% of sales. This includes adjusted gross margin of 82, 9% adjusted R&D expense of 14, 7%. Acquired IP R&D expense of one 3%. Adjusted SG&A expense of 24, 6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14, 8%.

Christopher Thomas Schott: This includes adjusted gross margin of 82, 9% adjusted R&D expense of 14, 7%. Acquired IP R&D expense of one 3%. Adjusted SG&A expense of 24, 6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14, 8%.

Christopher Thomas Schott: Acquired IP R&D expense of one 3%. Adjusted SG&A expense of 24, 6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14, 8%.

Christopher Thomas Schott: Adjusted SG&A expense of 24, 6%. Adjusted net interest expense was $429 million. The adjusted tax rate was 14, 8%.

Christopher Thomas Schott: Adjusted net interest expense was $429 million. The adjusted tax rate was 14, 8%.

Christopher Thomas Schott: The adjusted tax rate was 14, 8%.

Turning to our financial outlook, we are raising our full year adjusted earnings per share guidance to between $11.13 and $11.33. This increase of 16 cents at the midpoint includes 26 cents of operating over performance, partially offset by 10 cents of higher dilution due to the earlier close of Immunogen. As previously communicated, this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of Immunogen and the pending acquisition of Cerevel. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter. We now expect total net revenues of approximately $55 billion, an increase of $800 million.

Roopal Thakkar: Turning to our financial outlook, we are raising our full year adjusted earnings per share guidance to between $11.13 and $11.33. This increase of $0.16 at the midpoint includes $0.26 of operating overperformance, partially offset by $0.10 of higher dilution due to the earlier close of ImmunoGen. As previously communicated, this earnings per share guidance includes $0.42 of dilution related to the recently closed acquisition of ImmunoGen and the pending acquisition of Cerevel. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter. We now expect total net revenues of approximately $55 billion, an increase of $800 million. At current rates, we expect foreign exchange to have a 0.9% unfavorable impact on full year sales growth.

Christopher Thomas Schott: And $11 33. This increase of 16 cents at the midpoint. <unk> 26 cents of operating over performance, partially offset by 10. Higher dilution due to the earlier close of Immunogen. As previously communicated this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of immune Jen and the pending acquisition of <unk>. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

Christopher Thomas Schott: This increase of 16 cents at the midpoint. <unk> 26 cents of operating over performance, partially offset by 10. Higher dilution due to the earlier close of Immunogen. As previously communicated this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of immune Jen and the pending acquisition of <unk>. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

Christopher Thomas Schott: <unk> 26 cents of operating over performance, partially offset by 10. Higher dilution due to the earlier close of Immunogen. As previously communicated this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of immune Jen and the pending acquisition of <unk>. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

Christopher Thomas Schott: Higher dilution due to the earlier close of Immunogen. As previously communicated this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of immune Jen and the pending acquisition of <unk>. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

As previously communicated, this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of Immunogen and the pending acquisition of Cerevel. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter. We now expect total net revenues of approximately $55 billion, an increase of $800 million.

Christopher Thomas Schott: As previously communicated this earnings per share guidance includes 42 cents of dilution related to the recently closed acquisition of immune Jen and the pending acquisition of <unk>. Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

Christopher Thomas Schott: Please also note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the first quarter.

Christopher Thomas Schott: We now expect total net revenues of approximately $55 billion. An increase of $800 million.

Christopher Thomas Schott: An increase of $800 million.

At current rates, we expect foreign exchange to have a 0.9% unfavorable impact on full year sales growth. This revenue forecast includes the following updated assumptions with the entire sales increase driven by our ex- HUMIRA growth platform. We now expect SKYRIZZI global revenue of $10.7 billion, an increase of $200 million due to strong momentum across all approved indications, RINVOQ total sales of $5.6 billion, an increase of $100 million, reflecting robust uptake in IBD, IMBUVICA total revenue of $3.1 billion, an increase of 200 million, reflecting lower erosion, and ELAHERE total sales to AbbVie of $450 million, an increase of roughly 200 million reflecting a partial year of revenue following the February close of the Immunogen acquisition.

Christopher Thomas Schott: This revenue forecast includes the following updated assumptions with the entire sales increase driven by our ex Humira growth platform. We now expect. Sky Ritchie global revenue of $10 7 billion, an increase of $200 million. Due to strong momentum across all approved indications. Revoked total sales of $5 6 billion. An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Roopal Thakkar: This revenue forecast includes the following updated assumptions, with the entire sales increase driven by our ex-US growth platform. We now expect Skyrizi global revenue of $10.7 billion, an increase of $200 million due to strong momentum across all approved indications. Rinvoq total sales of $5.6 billion, an increase of $100 million, reflecting robust uptake in IBD. Imbruvica total revenue of $3.1 billion, an increase of $200 million, reflecting lower erosion. Elahere total sales to AbbVie of $450 million, an increase of roughly $200 million, reflecting a partial year of revenue following the February close of the ImmunoGen acquisition. Moving to the P&L for 2024, we continue to forecast adjusted gross margin of approximately 84% of sales, adjusted R&D investment of 14%, adjusted SG&A expense of 23.5%, and an adjusted operating margin ratio of roughly 46.5%.

This revenue forecast includes the following updated assumptions, with the entire sales increase driven by our ex-US growth platform. We now expect Skyrizi global revenue of $10.7 billion, an increase of $200 million due to strong momentum across all approved indications. Rinvoq total sales of $5.6 billion, an increase of $100 million, reflecting robust uptake in IBD. Imbruvica total revenue of $3.1 billion, an increase of $200 million, reflecting lower erosion. Elahere total sales to AbbVie of $450 million, an increase of roughly $200 million, reflecting a partial year of revenue following the February close of the ImmunoGen acquisition. Moving to the P&L for 2024, we continue to forecast adjusted gross margin of approximately 84% of sales, adjusted R&D investment of 14%, adjusted SG&A expense of 23.5%, and an adjusted operating margin ratio of roughly 46.5%.

Christopher Thomas Schott: We now expect. Sky Ritchie global revenue of $10 7 billion, an increase of $200 million. Due to strong momentum across all approved indications. Revoked total sales of $5 6 billion. An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: Sky Ritchie global revenue of $10 7 billion, an increase of $200 million. Due to strong momentum across all approved indications. Revoked total sales of $5 6 billion. An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: Due to strong momentum across all approved indications. Revoked total sales of $5 6 billion. An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: Revoked total sales of $5 6 billion. An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: An increase of $100 million, reflecting robust uptake in IBD. <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: <unk> total revenue of $3 1 billion, an increase of 200 million, reflecting lower erosion. And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: And Ella here total sales to Abbvie, a $450 million, an increase of roughly 200 million rift. Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: Reflecting a partial year of revenue following the February February close of the Immunogen acquisition.

Christopher Thomas Schott: Moving to the P&L for 2024, we continue to forecast adjusted gross margin of approximately 84% of sales, adjusted R&D investment of 14%, adjusted SG&A expense of 23.5%, and an adjusted operating margin ratio of roughly 46.5%. We now expect adjusted net interest expense of $2.2 billion, which includes the partial year cost in 2024 to finance the Immunogen and Cerevel transactions.

Christopher Thomas Schott: Adjusted R&D investment of 14%. Adjusted SG&A expense of 23, 5%. And an adjusted operating margin ratio of roughly 46, 5%. We now expect adjusted net interest expense of $2 2 billion. Which includes the partial year cost in 2024 to finance, the immunogen and serve El transactions.

Christopher Thomas Schott: Adjusted SG&A expense of 23, 5%. And an adjusted operating margin ratio of roughly 46, 5%. We now expect adjusted net interest expense of $2 2 billion. Which includes the partial year cost in 2024 to finance, the immunogen and serve El transactions.

Christopher Thomas Schott: And an adjusted operating margin ratio of roughly 46, 5%. We now expect adjusted net interest expense of $2 2 billion. Which includes the partial year cost in 2024 to finance, the immunogen and serve El transactions.

Roopal Thakkar: We now expect adjusted net interest expense of $2.2 billion, which includes the partial year cost in 2024 to finance the ImmunoGen and Cerevel transactions. Turning to the second quarter, we anticipate net revenues of approximately $14 billion, which includes US Humira erosion of approximately 32%, reflecting a step-up in volume erosion with the recent CVS formulary change, partially offset by a one-time price benefit also associated with that change. At current rates, we expect foreign exchange to have a 1.3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49.5% of sales, and we are also modeling a non-GAAP tax rate of 16.4%. We expect adjusted earnings per share between $3.05 and $3.09. This guidance does not include acquired IP R&D expense that may be incurred in the quarter. In closing, I'm very pleased with the excellent start to the year.

We now expect adjusted net interest expense of $2.2 billion, which includes the partial year cost in 2024 to finance the ImmunoGen and Cerevel transactions. Turning to the second quarter, we anticipate net revenues of approximately $14 billion, which includes US Humira erosion of approximately 32%, reflecting a step-up in volume erosion with the recent CVS formulary change, partially offset by a one-time price benefit also associated with that change. At current rates, we expect foreign exchange to have a 1.3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49.5% of sales, and we are also modeling a non-GAAP tax rate of 16.4%. We expect adjusted earnings per share between $3.05 and $3.09. This guidance does not include acquired IP R&D expense that may be incurred in the quarter. In closing, I'm very pleased with the excellent start to the year.

Christopher Thomas Schott: We now expect adjusted net interest expense of $2 2 billion. Which includes the partial year cost in 2024 to finance, the immunogen and serve El transactions.

Christopher Thomas Schott: Which includes the partial year cost in 2024 to finance, the immunogen and serve El transactions.

Christopher Thomas Schott: Turning to the second quarter, we anticipate net revenues of approximately $14 billion, which includes U.S HUMIRA erosion of approximately 32%, reflecting a step up in volume erosion with the recent CVS formulary change, partially offset by a onetime price benefit also associated with that change. At current rates, we expect foreign exchange to have a 1.3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49.5% of sales and we are also modeling a non-GAAP tax rate of 16.4%. We expect adjusted earnings per share between $3.05 and $3.09. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Turning to the second quarter, we anticipate net revenues of approximately $14 billion, which includes U.S HUMIRA erosion of approximately 32%, reflecting a step up in volume erosion with the recent CVS formulary change, partially offset by a onetime price benefit also associated with that change.

Christopher Thomas Schott: Reflecting a step up in volume erosion with the recent Cvs formulary change. Partially offset by a onetime price benefit also associated with that change. At current rates, we expect foreign exchange to have a one 3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49, 5% of sales. And we are also modeling and non-GAAP tax rate of 16, 4%. We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Partially offset by a onetime price benefit also associated with that change. At current rates, we expect foreign exchange to have a one 3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49, 5% of sales. And we are also modeling and non-GAAP tax rate of 16, 4%. We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: At current rates, we expect foreign exchange to have a one 3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49, 5% of sales. And we are also modeling and non-GAAP tax rate of 16, 4%. We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

At current rates, we expect foreign exchange to have a 1.3% unfavorable impact on sales growth. We are forecasting adjusted operating margin ratio of approximately 49.5% of sales and we are also modeling a non-GAAP tax rate of 16.4%. We expect adjusted earnings per share between $3.05 and $3.09. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: We are forecasting adjusted operating margin ratio of approximately 49, 5% of sales. And we are also modeling and non-GAAP tax rate of 16, 4%. We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: And we are also modeling and non-GAAP tax rate of 16, 4%. We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: We expect adjusted earnings per share between $3 and five and. And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: And $3 nine. This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Christopher Thomas Schott: This guidance does not include acquired IP R&D expense that may be incurred in the quarter.

Speaker Change: In closing, I'm very pleased with an excellent start to the year. We are demonstrating strong momentum across the portfolio and our financial outlook remains very strong. With that, I'll turn the call back over to Liz.

Roopal Thakkar: We are demonstrating strong momentum across the portfolio, and our financial outlook remains very strong. With that, I'll turn the call back over to Liz. Thanks, Scott. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please. Yes, our first question comes from Mohit Bansal with Wells Fargo. Your line is open. Great. Thank you very much for taking my question and congrats on the progress, and congrats to Rob as well. So maybe let's just start with 2024. I mean, so thanks for this guidance. But when we look from 2024 to 2025, there are a couple of headwinds that you have highlighted in the past.

We are demonstrating strong momentum across the portfolio, and our financial outlook remains very strong. With that, I'll turn the call back over to Liz.

Speaker Change: We are demonstrating strong momentum across the portfolio and our financial outlook remains very strong. With that I'll turn the call back over to Liz.

Speaker Change: With that I'll turn the call back over to Liz.

Liz Shea: Thanks, Scott. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please.

Liz Shea: Thanks Scott. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question please.

Operator: Yes, our first question comes from Mohit Bansal with Wells Fargo. Your line is open.

Operator: Yes, the first question comes from Mohit Bansal with Wells Fargo. Your line is open.

Operator: Great. Thank you very much for taking my question and congrats on the progress, and congrats to Rob as well. So maybe let's just start with 2024. I mean, so thanks for this guidance. But when we look from 2024 to 2025, there are a couple of headwinds that you have highlighted in the past.

Mohit Bansal: Great. Thank you very much for taking my question and congrats on the progress and congrats to AbbVie as well. Maybe let's just start with 2024. Thanks for the guidance, but when you look from 2024 to 2025, there are a couple of headwinds that you have highlighted in the past, [inaudible] re-design would be there and HUMIRA may have another leg down and given the volume relationship you were a little bit concerned there. Can you help us understand that what is your current thinking on the trough of '24 versus '25 then could you give us some confidence that you can continue to grow in '25 despite these headwinds from IRA and HUMIRA? Thank you.

Mohit Bansal: I saw that. No. Maybe let's just start with two. 2024. Thanks for that. This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Mohit Bansal: No. Maybe let's just start with two. 2024. Thanks for that. This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: Maybe let's just start with two. 2024. Thanks for that. This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: 2024. Thanks for that. This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: Thanks for that. This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

This guidance. But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: But then you look somebody talked when you foresee when you cite a couple of headwinds that you have highlighted in the past so all of this the Iot. Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Roopal Thakkar: So obviously, IRA Part D redesign would be there, and Humira may have another leg down. And given the volume erosion share, people are a little bit concerned there. Can you help us understand what is your current thinking on the trough 2024 versus 2025? And could you give us some confidence that you can continue to grow in 2025 despite these headwinds from IRA and Humira? Thank you. So Mohit, this is Rob. I'll take that question. So if you think about 2024 and 2025, I mean, clearly the ex-Humira growth platform is demonstrating great momentum. If you just think about Skyrizi and Rinvoq alone, are growing by more than $4 billion per year. Aesthetics will recover to high single-digit growth. Our neuroscience franchise will grow by over $1 billion this year on the heels of strong momentum from Vraylar and our migraine portfolio.

So obviously, IRA Part D redesign would be there, and Humira may have another leg down. And given the volume erosion share, people are a little bit concerned there. Can you help us understand what is your current thinking on the trough 2024 versus 2025? And could you give us some confidence that you can continue to grow in 2025 despite these headwinds from IRA and Humira? Thank you.

Speaker Change: Design would be there and Humira may have another leg down and given the volume relationship you put a little bit concerned there can. Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: Can you help us understand that what is your current thinking on the trough 24 versus 25 then. Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: Could you give us some confidence that you can continue to grow in 2005. Despite these headwinds from IATA and somebody else. Thank you.

Speaker Change: Despite these headwinds from IATA and somebody else. Thank you.

Rob Michael: So Mohit, this is Rob. I'll take that question. So if you think about 2024 and 2025, I mean, clearly the ex-Humira growth platform is demonstrating great momentum. If you just think about Skyrizi and Rinvoq alone, are growing by more than $4 billion per year. Aesthetics will recover to high single-digit growth. Our neuroscience franchise will grow by over $1 billion this year on the heels of strong momentum from Vraylar and our migraine portfolio.

Robert A. Michael: So Mohit, this is Rob, I'll take that question. So if you think about '24 and '25, I mean, clearly the ex-HUMIRA growth platform is demonstrating great momentum. If you just think about SKYRIZZI and RINVOQ alone are growing by more than $4 billion per year. Aesthetics will recover to high single digit growth. Our neuroscience franchise will grow by over $1 billion this year on the heels of strong momentum for VRAYLAR and our migraine portfolio and we will have incremental contributions from VIOLEV and ELAHERE in '25. So we have several drivers that will offset HUMIRA erosion next year as well as the part D benefit redesign impact and allow us to still deliver robust revenue growth. When you think about that redesign impact, it will really spread across our business most concentrated in immunology and oncology and we would estimate that that whole revenue impact could be worth several points of growth while we will still deliver robust revenue growth, we will have that headwind in '25. But keep in mind for us, the IRA impact really hits us in '25 and isn't a significant headwind in the years that follow as products that are subject to negotiation will not have

Rob: A strong momentum for <unk>, and our migraine portfolio and we will have incremental contributions from viola and early here in 'twenty five. We have several drivers that will offset humira erosion next year as well as the part D benefit redesign impact and allow us to still deliver a robust revenue growth. When you think about that redesign impact it will really spread across our business most concentrated in. Immunology and oncology and we would estimate that thats whole revenue impact could be worth several points of growth. While we will still deliver robust revenue growth, we will have that headwind in 'twenty five but keep in mind for us the IRA impact really hits us in 2005, it isn't a significant headwind in the years that follow as products that are subject to negotiation will not have.

Roopal Thakkar: We will have incremental contributions from Vyalev and Elahere in 2025. So we have several drivers that will offset Humira erosion next year, as well as the Part D benefit redesign impact, and allow us to still deliver robust revenue growth. When you think about that redesign impact, it will really spread across our business, most concentrated in immunology and oncology. We would estimate that that total revenue impact could be worth several points of growth. While we will still deliver robust revenue growth, we will have that headwind in 2025. Keep in mind, for us, the IRA impact really hits us in 2025 and isn't a significant headwind in the years that follow, as products that are subject to negotiation will not have that Part D cost share impact.

We will have incremental contributions from Vyalev and Elahere in 2025. So we have several drivers that will offset Humira erosion next year, as well as the Part D benefit redesign impact, and allow us to still deliver robust revenue growth. When you think about that redesign impact, it will really spread across our business, most concentrated in immunology and oncology. We would estimate that that total revenue impact could be worth several points of growth. While we will still deliver robust revenue growth, we will have that headwind in 2025. Keep in mind, for us, the IRA impact really hits us in 2025 and isn't a significant headwind in the years that follow, as products that are subject to negotiation will not have that Part D cost share impact.

Rob: We have several drivers that will offset humira erosion next year as well as the part D benefit redesign impact and allow us to still deliver a robust revenue growth. When you think about that redesign impact it will really spread across our business most concentrated in. Immunology and oncology and we would estimate that thats whole revenue impact could be worth several points of growth. While we will still deliver robust revenue growth, we will have that headwind in 'twenty five but keep in mind for us the IRA impact really hits us in 2005, it isn't a significant headwind in the years that follow as products that are subject to negotiation will not have.

Robert A. Michael: When you think about that redesign impact, it will really spread across our business most concentrated in immunology and oncology and we would estimate that that whole revenue impact could be worth several points of growth while we will still deliver robust revenue growth, we will have that headwind in '25. But keep in mind for us, the IRA impact really hits us in '25 and isn't a significant headwind in the years that follow as products that are subject to negotiation will not have that part D cost share impact. So the way to think about it is despite that headwind in '25, we will still deliver robust growth with that growth rate accelerating in the years to follow. And then if you think about on a margin perspective, we're going to continue to expand operating margins, so that will be a tailwind. You should be modeling annualization of interest expense from these transactions and keep in mind that we essentially would have think of it as roughly half year for Cerevel and 10 and a half months this year for Immunogen, so that should be something that you do model for '25 so we'll have robust revenue growth, we'll have earnings growth, not quite at the rate of the revenue growth because of that amortization impact, but then when you get to '26 and beyond, you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think about the profile of the company, but when you look at that ex-HUMIRA growth platform, there's a lot of momentum there and we are very well positioned to deliver a very robust growth.

Rob: Immunology and oncology and we would estimate that thats whole revenue impact could be worth several points of growth. While we will still deliver robust revenue growth, we will have that headwind in 'twenty five but keep in mind for us the IRA impact really hits us in 2005, it isn't a significant headwind in the years that follow as products that are subject to negotiation will not have.

Rob: that part D cost share impact. So the way to think about it is despite that headwind in '25, we will still deliver robust growth with that growth rate accelerating in the years to follow. And then if you think about on a margin perspective, we're going to continue to expand operating margins, so that will be a tailwind. You should be modeling annualization of interest expense from these transactions and keep in mind that we essentially would have think of it as roughly half year for Cerevel and 10 and a half months this year for Immunogen, so that should be something that you do model for '25 so we'll have robust revenue growth, we'll have earnings growth, not quite at the rate of the revenue growth because of that amortization impact, but then when you get to '26 and beyond, you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think about the profile of the company, but when you look at that ex-HUMIRA growth platform, there's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

that part D cost share impact. So the way to think about it is despite that headwind in '25, we will still deliver robust growth with that growth rate accelerating in the years to follow. And then if you think about on a margin perspective, we're going to continue to expand operating margins, so that will be a tailwind. You should be modeling annualization of interest expense from these transactions and keep in mind that we essentially would have think of it as roughly half year for Cerevel and 10 and a half months this year for Immunogen, so that should be something that you do model for '25 so we'll have robust revenue growth, we'll have earnings growth, not quite at the rate of the revenue growth because of that amortization impact, but then when you get to '26 and beyond, you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think about the profile of the company, but when you look at that ex-HUMIRA growth platform, there's a lot of momentum there and we are very well positioned to deliver a very robust growth.

Roopal Thakkar: So the way to think about it is, despite that headwind in 2025, we will still deliver robust growth with that growth rate accelerating in the years that follow. And then if you think about on a margin perspective, we're going to continue to expand operating margins, so that will be a tailwind. You should be, though, modeling annualization of interest expense from these transactions. And keep in mind that we essentially would have, think of it as a roughly half year for Cerevel and 10 and a half months this year for ImmunoGen. So that should be something that you do model for 2025. So we'll have robust revenue growth. We'll have earnings growth, not quite at the rate of the revenue growth because of that annualization impact. But then when you get to 2026 and beyond, you have even faster revenue growth and very robust earnings growth.

So the way to think about it is, despite that headwind in 2025, we will still deliver robust growth with that growth rate accelerating in the years that follow. And then if you think about on a margin perspective, we're going to continue to expand operating margins, so that will be a tailwind. You should be, though, modeling annualization of interest expense from these transactions. And keep in mind that we essentially would have, think of it as a roughly half year for Cerevel and 10 and a half months this year for ImmunoGen. So that should be something that you do model for 2025. So we'll have robust revenue growth. We'll have earnings growth, not quite at the rate of the revenue growth because of that annualization impact. But then when you get to 2026 and beyond, you have even faster revenue growth and very robust earnings growth.

Rob: Perspective, we're going to continue to expand operating margins. So that will be a tailwind you should be modeling <unk> of interest expense from these transactions and keep in mind that we essentially would have. Think of it as roughly half year for. <unk> for cerebral. 10, and a half months this year for immunogen, so that should be something that you do model, where 25. So we'll have robust revenue growth, we'll have earnings growth not quite at the rate of the revenue growth because of that amortization impact, but then when you get to 'twenty six and beyond you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think of. The profile of the company, but when you look at that ex Humira growth platform. There's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

Rob: Think of it as roughly half year for. <unk> for cerebral. 10, and a half months this year for immunogen, so that should be something that you do model, where 25. So we'll have robust revenue growth, we'll have earnings growth not quite at the rate of the revenue growth because of that amortization impact, but then when you get to 'twenty six and beyond you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think of. The profile of the company, but when you look at that ex Humira growth platform. There's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

<unk> for cerebral. 10, and a half months this year for immunogen, so that should be something that you do model, where 25. So we'll have robust revenue growth, we'll have earnings growth not quite at the rate of the revenue growth because of that amortization impact, but then when you get to 'twenty six and beyond you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think of. The profile of the company, but when you look at that ex Humira growth platform. There's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

Rob: 10, and a half months this year for immunogen, so that should be something that you do model, where 25. So we'll have robust revenue growth, we'll have earnings growth not quite at the rate of the revenue growth because of that amortization impact, but then when you get to 'twenty six and beyond you have even faster revenue growth and very robust earnings growth. So that's probably the best way to think of. The profile of the company, but when you look at that ex Humira growth platform. There's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

Roopal Thakkar: So that's probably the best way to think about the profile of the company. But when you look at that ex-Humira growth platform, there's a lot of momentum there, and we are very well positioned to deliver very robust growth. Super helpful. Thank you. Thanks, Mohit. Operator, next question, please. The next question is from Vamil Divan with Guggenheim. Your line is open. Great. Thanks for taking the question. So maybe I could just ask a couple on the aesthetics side. It sounds like your commentary is pretty generally in line with what you said before, but obviously, the number was a little lighter this quarter than even your guidance and what people were expecting. So can you maybe just talk a little bit more about that? You mentioned some shift in promotional efforts to the second quarter and maybe the inventory levels then as a result being lower.

So that's probably the best way to think about the profile of the company. But when you look at that ex-Humira growth platform, there's a lot of momentum there, and we are very well positioned to deliver very robust growth.

The profile of the company, but when you look at that ex Humira growth platform. There's a lot of momentum there and we are very well positioned to deliver a very robust growth. Super helpful. Thank you.

Super helpful. Thank you.

Speaker Change: Super helpful. Thank you.

Mohit Bonsal: Super helpful. Thank you.

Liz Shea: Thanks, Mohit. Operator, next question, please.

Liz Shea: Thanks Mohit. Operator, next question please.

Operator: Our next question is from Vermont Devaughn with Guggenheim. Your line is open.

Operator: The next question is from Vamil Divan with Guggenheim. Your line is open.

Operator: Great. Thanks for taking the question. So maybe I could just ask a couple on the aesthetics side. It sounds like your commentary is pretty generally in line with what you said before, but obviously, the number was a little lighter this quarter than even your guidance and what people were expecting. So can you maybe just talk a little bit more about that? You mentioned some shift in promotional efforts to the second quarter and maybe the inventory levels then as a result being lower.

Vermont Devaughn: Great, thanks for taking the question. So maybe I could just ask a couple on the aesthetics side. It sounds like your commentary was pretty generally in line with what you said before but obviously the number was a little lighter this quarter than even your guidance and what people are expecting. So can you maybe just talk a little bit more about that? You mentioned some shift in promotional efforts to the second quarter and maybe inventory levels and as a result being lower and maybe if you can quantify that a little bit and was this sort of planned when you gave your guidance back in February or is this something that's sort of evolved over the course of the quarter and maybe just kind of why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Geoffrey Christopher Meacham: Maybe I could just ask a couple on the aesthetics side. It sounds like your commentary was pretty generally in line with what you said before.

Geoffrey Christopher Meacham: It sounds like your commentary was pretty generally in line with what you said before.

Geoffrey Christopher Meacham: You see the number was a little lighter this quarter than even your guidance and what people are expecting so can you maybe just talk a little bit more about that you mentioned some shift in promotional efforts to the second quarter and. Maybe inventory levels and as a result, being lower and maybe if you can quantify that a little bit and was this sort of planned. When you gave your guidance back in February or is just something thats sort of evolved over the course. For the quarter and maybe just kind of. Why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Geoffrey Christopher Meacham: Maybe inventory levels and as a result, being lower and maybe if you can quantify that a little bit and was this sort of planned. When you gave your guidance back in February or is just something thats sort of evolved over the course. For the quarter and maybe just kind of. Why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Roopal Thakkar: Maybe I don't know if you can quantify that a little bit. Was this sort of planned when you gave your guidance back in February, or is this something that sort of evolved over the course of the quarter? Maybe just kind of why the decision was made would be helpful to give us some comfort on the outlook there. Thanks. Hi, this is Carrie. Thanks for the question. So first, I'll give a little bit of context to the fundamentals in terms of market growth and market share, which were in line with our expectations. So our market share continues to be strong and stable for Botox Cosmetic despite a new competitor, strong, stable share at high levels. And then for our Juvéderm line, continued share strength, even some share pickup in the past few quarters as we launch our new products.

Maybe I don't know if you can quantify that a little bit. Was this sort of planned when you gave your guidance back in February, or is this something that sort of evolved over the course of the quarter? Maybe just kind of why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Geoffrey Christopher Meacham: For the quarter and maybe just kind of. Why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Speaker Change: Why the decision was made would be helpful to give us some comfort on the outlook there. Thanks.

Carrie Strom: Hi, this is Carrie. Thanks for the question. So first, I'll give a little bit of context to the fundamentals in terms of market growth and market share, which were in line with our expectations. So our market share continues to be strong and stable for Botox Cosmetic despite a new competitor, strong, stable share at high levels. And then for our Juvéderm line, continued share strength, even some share pickup in the past few quarters as we launch our new products.

Carrie Strom: Hi, this is Carrie, thanks for the question. So first I'll give a little bit of context to the fundamentals in terms of market growth and market share, which were in line with our expectations. So our market share continues to be strong and stable for botox cosmetic despite a new competitor, strong stable share at high level, and then for our JUVEDERM line continued share strength, even some share pickup in that in the past few quarters as we launch our new products. So like you said, those fundamentals are in line with our expectations. As we were going through the quarter, we really realized that those clinics market is quite sensitive to seasonality with Q2 and Q4 typically having the highest volume. And after a few years of COVID and the economic disruption, we're now anticipating our return to that typical seasonality. So we shifted investment in some of our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year. And I'll let Scott address the rest of that question.

Our strong stable share at high level, and then for our Jupiter online continued share strength, even some share pickup in that. In the past few quarters as we launch our new products. So like you said those fundamentals are in line with our expectations. As we were going through the quarter, we really realized that those clinics market is quite sensitive to seasonality with Q2 and Q4 are typically having the highest volume and after a few years of Covid and the economic disruption. We're now anticipating a return to that typical seasonality. So we shifted investment in some. Our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year and I'll, let Scott addressed the rest. That question.

Cary: In the past few quarters as we launch our new products. So like you said those fundamentals are in line with our expectations. As we were going through the quarter, we really realized that those clinics market is quite sensitive to seasonality with Q2 and Q4 are typically having the highest volume and after a few years of Covid and the economic disruption. We're now anticipating a return to that typical seasonality. So we shifted investment in some. Our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year and I'll, let Scott addressed the rest. That question.

Roopal Thakkar: So like you said, those fundamentals are in line with our expectations. As we were going through the quarter, we really realized that the aesthetics market is quite sensitive to seasonality, with Q2 and Q4 typically having the highest volume. After a few years of COVID and economic disruption, we're now anticipating a return to that typical seasonality. So we shifted investment in some of our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1. We do expect that to come back in Q2 and the rest of the year. I'll let Scott address the rest of that question. Sure. Thanks, Carrie. So Vamil, to quantify the inventory impact in the first quarter, it was a little bit more than $50 million between Juvéderm and Botox.

So like you said, those fundamentals are in line with our expectations. As we were going through the quarter, we really realized that the aesthetics market is quite sensitive to seasonality, with Q2 and Q4 typically having the highest volume. After a few years of COVID and economic disruption, we're now anticipating a return to that typical seasonality. So we shifted investment in some of our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1. We do expect that to come back in Q2 and the rest of the year. I'll let Scott address the rest of that question.

Cary: As we were going through the quarter, we really realized that those clinics market is quite sensitive to seasonality with Q2 and Q4 are typically having the highest volume and after a few years of Covid and the economic disruption. We're now anticipating a return to that typical seasonality. So we shifted investment in some. Our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year and I'll, let Scott addressed the rest. That question.

Carrie Strom: As we were going through the quarter, we really realized that those clinics market is quite sensitive to seasonality with Q2 and Q4 typically having the highest volume. And after a few years of COVID and the economic disruption, we're now anticipating our return to that typical seasonality. So we shifted investment in some of our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year. And I'll let Scott address the rest of that question.

Cary: Our sales and marketing efforts into Q2, which impacted customer and sales promotional timing and activities, which then resulted in lower inventory held by our customers in Q1, and we do expect that to come back in Q2, and the rest of the year and I'll, let Scott addressed the rest. That question.

Sure. Thanks, Carrie. So Vamil, to quantify the inventory impact in the first quarter, it was a little bit more than $50 million between Juvéderm and Botox.

Scott: That question.

Scott Reents: Sure, thanks Carrie. To quantify the inventory impact in the first quarter, it was a little bit more than $50 million between JUVEDERM and Botox, and you can think of that as being split roughly two thirds to botox and one third to JUVEDERM. And I think as Carrie mentioned in her remarks that that impact of that inventory we expect that to turn in the second quarter.

Scott: To quantify the inventory impact in the first quarter. It was a little bit more than $50 million between Juvederm and Botox and you can think of that as being split roughly two thirds to botox and one third to Juvederm and I think as Carey mentioned in her remarks that that impact of that inventory will we expect that to. Turn into second quarter.

Roopal Thakkar: You can think of that as being split roughly 2/3 to Botox and 1/3 to Juvéderm. I think, as Carrie mentioned in her remarks, that impact of that inventory; we expect that to turn in Q2. Thanks, Vamil. Operator, next question, please. Yes, our next question comes from Chris Shibutani with Goldman Sachs. Your line is open. Great. Thank you very much. Good morning. When we think about the 2024 upcoming contracting season, which obviously has been quite dynamic for Humira over the past year plus, can you provide us with any insights in terms of structural aspects within your contracts that you build in that may help provide offsets? We often have limited visibility. We're looking at the prescription volume trends, and it feels as if our calculus is sometimes incomplete.

You can think of that as being split roughly 2/3 to Botox and 1/3 to Juvéderm. I think, as Carrie mentioned in her remarks, that impact of that inventory; we expect that to turn in Q2.

Turn into second quarter.

Liz Shea: Thanks, Vamil. Operator, next question, please.

Liz Shea: Thanks Vermont. Operator, next question please.

Operator: Yes, our next question comes from Chris Shibutani with Goldman Sachs. Your line is open.

Great. Thank you very much. Good morning. When we think about the 2024 upcoming contracting season, which obviously has been quite dynamic for Humira over the past year plus, can you provide us with any insights in terms of structural aspects within your contracts that you build in that may help provide offsets? We often have limited visibility. We're looking at the prescription volume trends, and it feels as if our calculus is sometimes incomplete.

Chris Shibutani: Great. Thank you very much. Good morning. When we think about the 2024 upcoming contracting season, which obviously has been quite dynamic for HUMIRA over the past year plus, can you provide us with any insights in terms of structural aspects within your contracts that you build in that may help provide offsets? We often have limited visibility, we're looking at the prescription volume trends and it feels as if our calculus is sometimes incomplete, but what can you reassure us in terms of the dynamics as we're seeing this year two play out and how you are approaching contracting for the forward? Thank you.

Chris: Can you provide us with any insights in terms of structural aspects within your contracts that you build in that May help provide offsets we often have limited visibility we're looking at. Scripps in volume trends. And it feels as if our calculus is sometimes incomplete, but what can you reassure us in terms of the dynamics as we're seeing this year to play out and how you are approaching contracting for the forward. Thank you.

Chris: Scripps in volume trends. And it feels as if our calculus is sometimes incomplete, but what can you reassure us in terms of the dynamics as we're seeing this year to play out and how you are approaching contracting for the forward. Thank you.

Chris: And it feels as if our calculus is sometimes incomplete, but what can you reassure us in terms of the dynamics as we're seeing this year to play out and how you are approaching contracting for the forward. Thank you.

Roopal Thakkar: But what can you reassure us in terms of the dynamics as we're seeing this year to play out and how you're approaching contracting for the future? Thank you. Yeah. Hi, Chris. It's Jeff. So the contracting season typically starts April or May, and frankly, as we've highlighted before, can run in the immunology category really through the end of the year. So we have a few philosophies that we look towards, which are we want to continue to basically make sure that patients, if possible, based on our pricing concessions, aren't disrupted. Because when you start to disrupt patients, they do struggle with the change. It's a change in their treatment course. And so as we look to that, we've historically highlighted that we are negotiating for parity contracts with Humira. And we do put some controls in place.

Roopal Thakkar: But what can you reassure us in terms of the dynamics as we're seeing this year to play out and how you're approaching contracting for the future? Thank you.

Jeffrey Stewart: Yeah. Hi, Chris. It's Jeff. So the contracting season typically starts April or May, and frankly, as we've highlighted before, can run in the immunology category really through the end of the year. So we have a few philosophies that we look towards, which are we want to continue to basically make sure that patients, if possible, based on our pricing concessions, aren't disrupted. Because when you start to disrupt patients, they do struggle with the change. It's a change in their treatment course. And so as we look to that, we've historically highlighted that we are negotiating for parity contracts with Humira. And we do put some controls in place.

Jeff Stewart: Yeah, hi, Chris, it's Jeff. So the contracting season typically starts April or May and frankly, as we've highlighted before, it can run in the immunology category really through the end of the year. So we have a few philosophies that we look towards, which are we want to continue to basically make sure that patients if possible based on a pricing concessions aren't disrupted because when you start to disrupt patients they do struggle with the change, it's a change in their treatment course. So as we look to that, we've historically highlighted that we are negotiating for parity contracts with HUMIRA and we do put some controls in place in some cases, but not all we seek multiyear contracts with our payers to try to establish the relationship, the pricing et cetera, and we will think of ways to make sure that those contracts can hold so they have some teeth in them. They can't just be Willy Nilly discarded and so it is a long term in some cases partnership over a couple of years with these payers.

Jeffrey Ryan Stewart: The contracting season, typically starts April or May and frankly, as we've highlighted before it can run in the immunology category really through the end of the year. So we have a few philosophies that we. That we that we look towards which are. We want to continue to basically make sure that that patience. If possible based on a pricing concessions aren't disrupted because when you start to disrupt patients. Do struggle with the with the change it's a change in their treatment course. So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

Jeffrey Ryan Stewart: That we that we look towards which are. We want to continue to basically make sure that that patience. If possible based on a pricing concessions aren't disrupted because when you start to disrupt patients. Do struggle with the with the change it's a change in their treatment course. So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

Jeffrey Ryan Stewart: We want to continue to basically make sure that that patience. If possible based on a pricing concessions aren't disrupted because when you start to disrupt patients. Do struggle with the with the change it's a change in their treatment course. So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

Jeffrey Ryan Stewart: If possible based on a pricing concessions aren't disrupted because when you start to disrupt patients. Do struggle with the with the change it's a change in their treatment course. So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

Jeffrey Ryan Stewart: Do struggle with the with the change it's a change in their treatment course. So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

Jeffrey Ryan Stewart: So as we look to that we've historically highlighted that we are negotiating for parity contracts with humira. And we.

And we.

Jeffrey Ryan Stewart: do put some controls in place in some cases, but not all we seek multiyear contracts with our payers to try to establish the relationship, the pricing et cetera, and we will think of ways to make sure that those contracts can hold so they have some teeth in them. They can't just be Willy Nilly discarded and so it is a long term in some cases partnership over a couple of years with these payers. I can't go into the details over exactly how those controls work, but suffice it to say that there are terms and timing and limits in terms of when contracts can be changed even maybe some clawbacks in some cases. So because we want these more sustained relationships because of our position in the category with these great brands, we typically use those sort of techniques and that's how we go for it. So again, it's hard to look forward to much because it is dynamic as we looked at '25 but we've been quite successful in maintaining good access for our brands and certainly HUMIRA is tracking in line with our expectations.

do put some controls in place in some cases, but not all we seek multiyear contracts with our payers to try to establish the relationship, the pricing et cetera, and we will think of ways to make sure that those contracts can hold so they have some teeth in them. They can't just be Willy Nilly discarded and so it is a long term in some cases partnership over a couple of years with these payers.

Roopal Thakkar: In some cases, but not all, we seek multi-year contracts with our payers to try to establish the relationship, the pricing, etc. We will think of ways to make sure that those contracts can hold so they have some teeth in them. They can't just be willy-nilly discarded. So it is a long-term, in some cases, partnership over a couple of years with these payers. I can't go into the details over exactly how those controls work, but suffice it to say that there's terms, timing, and limits in terms of when contracts can be changed, even maybe some clawbacks in some cases. So because we want these more sustained relationships because of our position in the category with these great brands, we typically use those sort of techniques, and that's how we go for it.

In some cases, but not all, we seek multi-year contracts with our payers to try to establish the relationship, the pricing, etc. We will think of ways to make sure that those contracts can hold so they have some teeth in them. They can't just be willy-nilly discarded. So it is a long-term, in some cases, partnership over a couple of years with these payers. I can't go into the details over exactly how those controls work, but suffice it to say that there's terms, timing, and limits in terms of when contracts can be changed, even maybe some clawbacks in some cases. So because we want these more sustained relationships because of our position in the category with these great brands, we typically use those sort of techniques, and that's how we go for it.

Jeffrey Ryan Stewart: As a long term in some cases partnership over a couple of years with these payers. I can't go into the details over exactly how those controls work, but suffice it to say that there is. Terms and timing and. Limits in terms of when contracts can be changed evens. <unk>, maybe some clawbacks in some cases, so because we want these more sustained relationships because of our position in the <unk>. In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: I can't go into the details over exactly how those controls work, but suffice it to say that there is. Terms and timing and. Limits in terms of when contracts can be changed evens. <unk>, maybe some clawbacks in some cases, so because we want these more sustained relationships because of our position in the <unk>. In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

I can't go into the details over exactly how those controls work, but suffice it to say that there are terms and timing and limits in terms of when contracts can be changed even maybe some clawbacks in some cases. So because we want these more sustained relationships because of our position in the category with these great brands, we typically use those sort of techniques and that's how we go for it. So again, it's hard to look forward to much because it is dynamic as we looked at '25 but we've been quite successful in maintaining good access for our brands and certainly HUMIRA is tracking in line with our expectations.

Jeffrey Ryan Stewart: Terms and timing and. Limits in terms of when contracts can be changed evens. <unk>, maybe some clawbacks in some cases, so because we want these more sustained relationships because of our position in the <unk>. In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: Limits in terms of when contracts can be changed evens. <unk>, maybe some clawbacks in some cases, so because we want these more sustained relationships because of our position in the <unk>. In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: <unk>, maybe some clawbacks in some cases, so because we want these more sustained relationships because of our position in the <unk>. In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: In the category with these these great brands, we we typically. Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: Use those sort of techniques and that's how we go for it. So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Roopal Thakkar: So again, it's hard to look forward too much because it is dynamic as we look to 2025, but we've been quite successful in maintaining good access for our brands, and certainly, Humira is tracking in line with our expectations. Thanks, Chris. Operator, next question, please. Our next question comes from Chris Schott with J.P. Morgan, and your line is open. Great. Thanks so much. Just a couple more on the Humira front. I think in Humira, you had mentioned that in 2024, you expected most of the impact would be price versus volume. But I think the street's been concerned that we're seeing more volume erosion, particularly with the CVS book of business. I'm just interested in your latest thinking as we think about price versus volume for the remainder of this year as we consider CVS, Cigna, etc.

So again, it's hard to look forward too much because it is dynamic as we look to 2025, but we've been quite successful in maintaining good access for our brands, and certainly, Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: So again, it's hard to look forward too much because it is dynamic as we looked at 25%, but we've been quite successful in in maintaining. Good access for our brands and certainly Humira is tracking in line with our expectations.

Jeffrey Ryan Stewart: Good access for our brands and certainly Humira is tracking in line with our expectations.

Liz Shea: Thanks, Chris. Operator, next question, please.

Liz Shea: Thanks Chris. Operator, next question please.

Operator: Our next question comes from Chris Schott with J.P. Morgan, and your line is open.

Operator: Our next question comes from Chris Schott with JP Morgan. Your line is open.

Operator: Great. Thanks so much. Just a couple more on the Humira front. I think in Humira, you had mentioned that in 2024, you expected most of the impact would be price versus volume. But I think the street's been concerned that we're seeing more volume erosion, particularly with the CVS book of business. I'm just interested in your latest thinking as we think about price versus volume for the remainder of this year as we consider CVS, Cigna, etc.

Christopher T. Schott: Great. Thanks so much. Just a couple more on the HUMIRA front. Can you remember you had mentioned that in 2024, you expected most of the impact would be price versus volume but I think the street's been concerned they were seeing more volume erosion, particularly with the CBS book of business. I'm just interested in your latest thinking as we think about price versus volume for the remainder of this year as we consider CVS Cigna et cetera, how should we think about that balance just so there's kind of surprises and so I guess as we watch these volume trends playing out? And then maybe just on a related topic, can you talk at all about the tail for HUMIRA sales in the US? I guess, that's the heart of the question. Do you expect that you'll see most payers eventually switch out HUMIRA like we're seeing at CVS and if so, is it still reasonable to think about there being kind of a decent tail of revenue I guess for this product in the U.S over time? Thanks so much.

Chris Schott: Can you remember you had mentioned that in 2024, you expected most of the impact would be price versus volume bank. The street's been concerned they were seeing more volume erosion, particularly with the CBS book of business I'm just interested in your latest thinking as we think about price versus volume for the remainder of this year as we consider Cvs Cigna et cetera. How should we think about that balance just so theres kind of surprises and so I guess, we watch these volume trends playing out and then maybe just on a related topic can you talk at all about the tail for Humira sales in the U S. I guess, that's the heart of the question do you expect that Youll see most players payers eventually switch out humira like we're seeing at Cvs and if so is it still. Reasonable to think about there being a kind of a decent tail of revenue I guess for this product in the U S over time, thanks, so much.

Roopal Thakkar: How should we think about that balance just so there's kind of no surprises as I guess we watch these volume trends playing out? And then maybe just on a related topic, can you talk at all about the tail for Humira sales in the US? I guess the heart of the question, do you expect that you'll see most players or payers eventually switch out Humira like we're seeing at CVS? And if so, is it still reasonable to think about there being kind of a decent tail of revenue, I guess, for this product in the US over time? Thanks so much. Yeah. Great, great question. There's a lot in there. Let me go through it in a systematic fashion. So I think first, to directly answer your question, we still, as we look forward, believe that the significant majority of our lives will be at parity.

How should we think about that balance just so there's kind of no surprises as I guess we watch these volume trends playing out? And then maybe just on a related topic, can you talk at all about the tail for Humira sales in the US? I guess the heart of the question, do you expect that you'll see most players or payers eventually switch out Humira like we're seeing at CVS? And if so, is it still reasonable to think about there being kind of a decent tail of revenue, I guess, for this product in the US over time? Thanks so much.

Chris Schott: How should we think about that balance just so theres kind of surprises and so I guess, we watch these volume trends playing out and then maybe just on a related topic can you talk at all about the tail for Humira sales in the U S. I guess, that's the heart of the question do you expect that Youll see most players payers eventually switch out humira like we're seeing at Cvs and if so is it still. Reasonable to think about there being a kind of a decent tail of revenue I guess for this product in the U S over time, thanks, so much.

Christopher T. Schott: And then maybe just on a related topic, can you talk at all about the tail for HUMIRA sales in the US? I guess, that's the heart of the question. Do you expect that you'll see most payers eventually switch out HUMIRA like we're seeing at CVS and if so, is it still reasonable to think about there being kind of a decent tail of revenue I guess for this product in the U.S over time? Thanks so much.

Reasonable to think about there being a kind of a decent tail of revenue I guess for this product in the U S over time, thanks, so much.

Jeffrey Stewart: Yeah. Great, great question. There's a lot in there. Let me go through it in a systematic fashion. So I think first, to directly answer your question, we still, as we look forward, believe that the significant majority of our lives will be at parity.

Jeff Stewart: Yeah, great question. There's a lot in there. Let me go through it in a systematic fashion. So I think first to directly answer your question, we still, as we look forward, believe that the significant majority of our lives will be at parity. So that means our guidance around the majority being price is still holding in our go forward look. Let me give you some perspective. I had something in my opening remarks over what's happening with CVS. So the first is that as I mentioned the step down in volume was really anticipated and based on our analysis of the data, which I'll highlight it's really right in line with our expectations. Now one of the things in my remarks that I often talk about new to brand or are in play share capture and that's a really good way to look at performance, particularly early in launch cycles when you're looking at capture rate or competitive dynamics.

Roopal Thakkar: So that means our guidance around the majority being price is still holding in our go-forward look. Let me give you some perspective. I had some in my opening remarks over what's happening with CVS. So the first is that, as I mentioned, the step down in volume was really anticipated. And based on our analysis of the data, which I'll highlight, it's really right in line with our expectations. Now, one of the things in my remarks, I often talk about new-to-brand or in-play share capture. And that's a really good way to look at performance, particularly early in launch cycles when you're looking at capture rate or competitive dynamics. I think it's important that investors and analysts need to be very mindful when you have a dislocation, or disruption, or switching.

So that means our guidance around the majority being price is still holding in our go-forward look. Let me give you some perspective. I had some in my opening remarks over what's happening with CVS. So the first is that, as I mentioned, the step down in volume was really anticipated. And based on our analysis of the data, which I'll highlight, it's really right in line with our expectations. Now, one of the things in my remarks, I often talk about new-to-brand or in-play share capture. And that's a really good way to look at performance, particularly early in launch cycles when you're looking at capture rate or competitive dynamics. I think it's important that investors and analysts need to be very mindful when you have a dislocation, or disruption, or switching.

Speaker Change: Being price is still holding in our in our. The go forward look let me give you some perspective I had something in my opening remarks over what's happening with Cvs. So the first is that as I mentioned the step down in volume was was really in tip anticipated. And based on our analysis of the data, which I'll highlight it's really right in line with our expectations now one of the things in my remarks, I, often talk about new to brand or are in play share capture and that's a really good way to look at performance, particularly early in launch cycles. When your when Youre looking at capture rate or.

Speaker Change: The go forward look let me give you some perspective I had something in my opening remarks over what's happening with Cvs. So the first is that as I mentioned the step down in volume was was really in tip anticipated. And based on our analysis of the data, which I'll highlight it's really right in line with our expectations now one of the things in my remarks, I, often talk about new to brand or are in play share capture and that's a really good way to look at performance, particularly early in launch cycles. When your when Youre looking at capture rate or.

Speaker Change: And based on our analysis of the data, which I'll highlight it's really right in line with our expectations now one of the things in my remarks, I, often talk about new to brand or are in play share capture and that's a really good way to look at performance, particularly early in launch cycles. When your when Youre looking at capture rate or.

Speaker Change: I think it's important that investors and analysts need to be very mindful when you have a dislocation or disruption or switching, you can get very, very fooled at looking at NRX or NBRX because it's sort of over inflates what you might be looking at, so I think that's important. The other fact base that we look at is in terms of the step down is we look at other analogs and we look at the [inaudible] Tulse analog or Tulse was advantage ESI for [inaudible] back in 2019, and we see that typically in this category almost 90% of the erosion tracks within the first two to three weeks and that's actually what we're starting to see we believe with the CVS template following that similar pattern. So if you can't really look at NRX or NBRX, you really have to look at TRX in this case, Chris and this is very interesting. And we would make sure to guide folks to look at what's happening with the TRX data in the market and what we see is that not all of the HUMIRA prescriptions are moving to a biosimilar.

I think it's important that investors and analysts need to be very mindful when you have a dislocation or disruption or switching, you can get very, very fooled at looking at NRX or NBRX because it's sort of over inflates what you might be looking at, so I think that's important. The other fact base that we look at is in terms of the step down is we look at other analogs and we look at the [inaudible] Tulse analog or Tulse was advantage ESI for [inaudible] back in 2019, and we see that typically in this category almost 90% of the erosion tracks within the first two to three weeks and that's actually what we're starting to see we believe with the CVS template following that similar pattern.

Roopal Thakkar: You can get very, very fooled at looking at NRX or NBRX because it sort of overinflates what you might be looking at. So I think that's important. The other fact base that we look at is, in terms of the step down, we look at other analogs, and we look at the Cosentyx Taltz analog, or Taltz was advantaged in ESI for Cosentyx back in 2019. We see that typically in this category, almost 90% of the erosion tracks within the first two to three weeks. That's actually what we're starting to see, we believe, with the CVS template following that similar pattern. So if you can't really look at NRX or NBRX, you really have to look at TRX in this case, Chris. This is very interesting.

You can get very, very fooled at looking at NRX or NBRX because it sort of overinflates what you might be looking at. So I think that's important. The other fact base that we look at is, in terms of the step down, we look at other analogs, and we look at the Cosentyx Taltz analog, or Taltz was advantaged in ESI for Cosentyx back in 2019. We see that typically in this category, almost 90% of the erosion tracks within the first two to three weeks. That's actually what we're starting to see, we believe, with the CVS template following that similar pattern. So if you can't really look at NRX or NBRX, you really have to look at TRX in this case, Chris. This is very interesting.

Speaker Change: What you might be looking at so I think that's important the other fact base that we look at is in. In terms of the. Step down as we look at other analogs and we look at the Concentrix Tulsa analog or Tulse was advantage and ESI FERC <unk> back in 2019, and we see that typically in this category almost 90% of the erosion tracks within the first two to three weeks and that's actually what we're starting. C. We believe with the Cvs template following that similar pattern. So if you can't really look at <unk>, you really have to look at <unk> in this case, Chris and this is very interesting and we would. Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

Speaker Change: In terms of the. Step down as we look at other analogs and we look at the Concentrix Tulsa analog or Tulse was advantage and ESI FERC <unk> back in 2019, and we see that typically in this category almost 90% of the erosion tracks within the first two to three weeks and that's actually what we're starting. C. We believe with the Cvs template following that similar pattern. So if you can't really look at <unk>, you really have to look at <unk> in this case, Chris and this is very interesting and we would. Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

Speaker Change: Step down as we look at other analogs and we look at the Concentrix Tulsa analog or Tulse was advantage and ESI FERC <unk> back in 2019, and we see that typically in this category almost 90% of the erosion tracks within the first two to three weeks and that's actually what we're starting. C. We believe with the Cvs template following that similar pattern. So if you can't really look at <unk>, you really have to look at <unk> in this case, Chris and this is very interesting and we would. Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

Speaker Change: C. We believe with the Cvs template following that similar pattern. So if you can't really look at <unk>, you really have to look at <unk> in this case, Chris and this is very interesting and we would. Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

So if you can't really look at NRX or NBRX, you really have to look at TRX in this case, Chris and this is very interesting. And we would make sure to guide folks to look at what's happening with the TRX data in the market and what we see is that not all of the HUMIRA prescriptions are moving to a biosimilar. And if you look at the first two weeks, it's pretty meaningful. Over 20% of the HUMIRA prescriptions are moving to other mechanisms of actions, including SKYRIZZI and RINVOQ. And in fact, while we haven't studied this week as much, it actually seems to have accelerated a bit from there and that actually makes some sense because if you think it from the physician's perspective when patients are being switched, they often take a break and a pause to say, are these patients really under our control, should I consider an alternative and that's actually what we see playing out in the market.

Speaker Change: So if you can't really look at <unk>, you really have to look at <unk> in this case, Chris and this is very interesting and we would. Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

Roopal Thakkar: We would make sure to guide folks to look at what's happening with the TRX data in the market. What we see is that not all of the Humira prescriptions are moving to a biosimilar. If you look at the first two weeks, it's pretty meaningful. Over 20% of the Humira prescriptions are moving to other mechanisms of action, including Skyrizi and Rinvoq. In fact, while we haven't studied this week as much, it actually seems to have accelerated a bit from there. That actually makes some sense because if you think of it from the physician's perspective, when patients are being switched, they often take a break and a pause to say, "Are these patients really under control? Should I consider an alternative?" That's actually what we see playing out in the market.

We would make sure to guide folks to look at what's happening with the TRX data in the market. What we see is that not all of the Humira prescriptions are moving to a biosimilar. If you look at the first two weeks, it's pretty meaningful. Over 20% of the Humira prescriptions are moving to other mechanisms of action, including Skyrizi and Rinvoq. In fact, while we haven't studied this week as much, it actually seems to have accelerated a bit from there. That actually makes some sense because if you think of it from the physician's perspective, when patients are being switched, they often take a break and a pause to say, "Are these patients really under control? Should I consider an alternative?" That's actually what we see playing out in the market.

Speaker Change: Make sure to guide folks to look at what's happening with the T. Rx data in the market and what we see is that not all of the Humira prescriptions are moving to a biosimilar and.

Speaker Change: And if you look at the first two weeks, it's pretty meaningful. Over 20% of the HUMIRA prescriptions are moving to other mechanisms of actions, including SKYRIZZI and RINVOQ. And in fact, while we haven't studied this week as much, it actually seems to have accelerated a bit from there and that actually makes some sense because if you think it from the physician's perspective when patients are being switched, they often take a break and a pause to say, are these patients really under our control, should I consider an alternative and that's actually what we see playing out in the market. So the pure degradation or step down from HUMIRA is in line with what we see but we are seeing a fairly significant move to other mechanisms as I mentioned, including our own SKYRIZZI and RINVOQ and that could be very, very good for patients who are probably getting better care for control of their disease.

And if you look at the first two weeks, it's pretty meaningful. Over 20% of the HUMIRA prescriptions are moving to other mechanisms of actions, including SKYRIZZI and RINVOQ. And in fact, while we haven't studied this week as much, it actually seems to have accelerated a bit from there and that actually makes some sense because if you think it from the physician's perspective when patients are being switched, they often take a break and a pause to say, are these patients really under our control, should I consider an alternative and that's actually what we see playing out in the market.

Speaker Change: Patients are being switched they often take a break in a pause to say are these patients really under our control should I consider an alternative and that's actually what we see playing out in the market. So the pure. Degradation or stepped down from Humira is in line, what we see but we are seeing a fairly significant move to other mechanisms as I mentioned, including our own <unk> and RIN book and that could be very very good for patients who are probably getting better care for control of their disease.

Roopal Thakkar: So the pure degradation or step down from Humira is in line with what we see, but we are seeing a fairly significant move to other mechanisms, as I mentioned, including our own Skyrizi and Rinvoq. And that could be very, very good for patients who are probably getting better care for control of their disease. Now, having said that as well, if we look through the rest of 2024, we have very solid contracts with our payers through 2024. And remember that these payers can add biosimilars at parity whenever they choose. We saw that last year in the middle of the year, and that's really not different now. So when we look at the structure and controls of our existing agreements, we do not see widespread exclusions for the rest of the year as we go forward.

So the pure degradation or step down from Humira is in line with what we see, but we are seeing a fairly significant move to other mechanisms, as I mentioned, including our own Skyrizi and Rinvoq. And that could be very, very good for patients who are probably getting better care for control of their disease. Now, having said that as well, if we look through the rest of 2024, we have very solid contracts with our payers through 2024. And remember that these payers can add biosimilars at parity whenever they choose. We saw that last year in the middle of the year, and that's really not different now. So when we look at the structure and controls of our existing agreements, we do not see widespread exclusions for the rest of the year as we go forward.

So the pure degradation or step down from HUMIRA is in line with what we see but we are seeing a fairly significant move to other mechanisms as I mentioned, including our own SKYRIZZI and RINVOQ and that could be very, very good for patients who are probably getting better care for control of their disease.

Speaker Change: Degradation or stepped down from Humira is in line, what we see but we are seeing a fairly significant move to other mechanisms as I mentioned, including our own <unk> and RIN book and that could be very very good for patients who are probably getting better care for control of their disease.

Now, having said that as well, if we look through the rest of '24, we have very solid contracts with our payers through 2024. And remember that these payers can add biosimilars at parity whenever they choose. We saw that last year in the middle of the year and that's really not different now. So when we look at the structure and control of our existing agreements, we do not see widespread exclusions for the rest of the year as we go forward. And so I think we've been pretty consistent with that, that select clients will move towards biosimilars over the course of the year. Last year, we saw that with Kaiser and Medicaid plans. We've talked about the CVS exclusion for the template business. And we do see that some select plans may take another approach, which we've contemplated as the year goes on, which is they may move new patients to the biosimilar but maintain the large existing base and that's quite manageable because really only about 14 or 15% of the patients are our new patients that cycle into into HUMIRA.

Speaker Change: <unk> of our existing agreements, we do not see widespread exclusions for the rest of the year as we go forward and so I think we've been pretty consistent with that that select clients will move towards biosimilars over the course of the year last year, we saw that with Kaiser and Medicaid plans, we've talked about the Cvs. <unk> for the template business. And we do see that some select plans may take another approach, which we've contemplated as the year goes on which is they may move new patients to the biosimilar. <unk> maintained the large existing base and that's quite manageable because really only about 14 or 15% of the patients are our new patients that cycle into into Humira.

Roopal Thakkar: I think we've been pretty consistent with that, that select clients will move towards biosimilars over the course of the year. Last year, we saw that with Kaiser and Medicaid plans. We've talked about the CVS exclusion for the Humira business. We do see that some select plans may take another approach, which we've contemplated as the year goes on, which is they may move new patients to the biosimilar but maintain the large existing base. That's quite manageable because really only about 14% or 15% of the patients are new patients that cycle into Humira. Overall, that's our perspective. We're confident. Things are tracking in line. We're quite interested in the shift to other mechanisms, which is frankly somewhat anticipated, but maybe operating a little higher than we thought.

I think we've been pretty consistent with that, that select clients will move towards biosimilars over the course of the year. Last year, we saw that with Kaiser and Medicaid plans. We've talked about the CVS exclusion for the Humira business. We do see that some select plans may take another approach, which we've contemplated as the year goes on, which is they may move new patients to the biosimilar but maintain the large existing base. That's quite manageable because really only about 14% or 15% of the patients are new patients that cycle into Humira. Overall, that's our perspective. We're confident. Things are tracking in line. We're quite interested in the shift to other mechanisms, which is frankly somewhat anticipated, but maybe operating a little higher than we thought.

Speaker Change: <unk> for the template business. And we do see that some select plans may take another approach, which we've contemplated as the year goes on which is they may move new patients to the biosimilar. <unk> maintained the large existing base and that's quite manageable because really only about 14 or 15% of the patients are our new patients that cycle into into Humira.

Speaker Change: And we do see that some select plans may take another approach, which we've contemplated as the year goes on which is they may move new patients to the biosimilar. <unk> maintained the large existing base and that's quite manageable because really only about 14 or 15% of the patients are our new patients that cycle into into Humira.

Speaker Change: <unk> maintained the large existing base and that's quite manageable because really only about 14 or 15% of the patients are our new patients that cycle into into Humira.

Speaker Change: So overall, that's our perspective. We're confident things are tracking in line, we're quite interested in this shift to other mechanisms, which is frankly somewhat anticipated, but maybe operating a little higher than we thought. And we still believe that a significant majority of HUMIRA will sit at parity lives in '24. Oh, the tail. So the tail, we're gonna be negotiating '25 and what we've highlighted is we are going to watch exactly how the interchangeable play out. We think we've got a good understanding of that and so it will probably become more apparent as we move through '25 where that tail may may set. We've highlighted that it may start to emerge in '25 and probably might be much more visible by '26 and that's going to ultimately depend on how over the course of '25 the price volume fully plays out in the marketplace.

Roopal Thakkar: We still believe that a significant majority of Humira will sit at parity lives in 2024. Oh, the tail. Okay. So the tail, we're going to be negotiating 2025. And what we've highlighted is we are going to watch exactly how the interchangeables play out. We think we've got a good understanding of that. And so it'll probably become more apparent as we move through 2025 where that tail may sit. And we've highlighted that it may start to emerge in 2025 and probably be much more visible by 2026. And that's going to ultimately depend on how, over the course of 2025, the price volume fully plays out in the marketplace. And Chris, this is Rob. On your question regarding the guidance for this year, I think it's important to note, yes, we've said the vast majority of the erosion is price. We've talked about that dynamic.

We still believe that a significant majority of Humira will sit at parity lives in 2024. Oh, the tail. Okay. So the tail, we're going to be negotiating 2025. And what we've highlighted is we are going to watch exactly how the interchangeables play out. We think we've got a good understanding of that. And so it'll probably become more apparent as we move through 2025 where that tail may sit. And we've highlighted that it may start to emerge in 2025 and probably be much more visible by 2026. And that's going to ultimately depend on how, over the course of 2025, the price volume fully plays out in the marketplace.

Speaker Change: And we still believe that a significant majority of Humira will sit at parity lives in 'twenty four. Oh, okay. So the tail. We're gonna be negotiating 25. And what we've highlighted is we are going to watch exactly how the interchangeable play out we think we've got a good understanding of that and so it will probably become more apparent as we move through 'twenty five where that tail may may set and we've highlighted that it may start to emerge in 'twenty, five and probably might be much more visible bye bye <unk>.

Speaker Change: Oh, okay. So the tail. We're gonna be negotiating 25. And what we've highlighted is we are going to watch exactly how the interchangeable play out we think we've got a good understanding of that and so it will probably become more apparent as we move through 'twenty five where that tail may may set and we've highlighted that it may start to emerge in 'twenty, five and probably might be much more visible bye bye <unk>.

Speaker Change: We're gonna be negotiating 25. And what we've highlighted is we are going to watch exactly how the interchangeable play out we think we've got a good understanding of that and so it will probably become more apparent as we move through 'twenty five where that tail may may set and we've highlighted that it may start to emerge in 'twenty, five and probably might be much more visible bye bye <unk>.

Speaker Change: And what we've highlighted is we are going to watch exactly how the interchangeable play out we think we've got a good understanding of that and so it will probably become more apparent as we move through 'twenty five where that tail may may set and we've highlighted that it may start to emerge in 'twenty, five and probably might be much more visible bye bye <unk>.

Robert A. Michael: And Chris, this is Rob. On your question regarding the guidance for this year, I think it is important to note, yes, we said that the vast majority of the erosion is price. We've talked about that dynamic. If you think about first half, second half, we have the annualization impact given the mid year step up in rebates last year, so that annualization impact will come through in the first half. You would expect price erosion to be greater in the first half or the second half, but at the same time, we did contemplate volume erosion because we were very well aware of the CVS contract. We gave you that guidance and so we have contemplated that volume erosion, but that's more of a second half versus first half as well as the potential for we knew with an interchangeable coming in there could be some marginal amount of volume pickup there. So we did put in volume erosion in our guidance, but the vast majority of it is price, but I don't want investors to think that we didn't put any volume into our guidance. We were very well aware of the CVS contract and I think we've made some prudent assumptions on potentially other impacts, but overall, we're still tracking in line with that guidance.

Rob Michael: And Chris, this is Rob. On your question regarding the guidance for this year, I think it's important to note, yes, we've said the vast majority of the erosion is price. We've talked about that dynamic.

Roopal Thakkar: If you think about H1, H2, we have the annualization impact given the mid-year step up in rebates last year. So that annualization impact comes through in the H1. So you'd expect price erosion to be greater in the H1 or the H2. But at the same time, we did contemplate volume erosion because we were very well aware of the CVS contract. We gave you that guidance. And so we have contemplated that volume erosion, but that's more of a H2 versus H1, as well as the potential for we knew with an interchangeable coming in, there could be some marginal amount of volume pickup there. So we did put in volume erosion in our guidance, but the vast majority of it is price. But I don't want investors to think that we didn't put any volume into our guidance.

If you think about H1, H2, we have the annualization impact given the mid-year step up in rebates last year. So that annualization impact comes through in the H1. So you'd expect price erosion to be greater in the H1 or the H2. But at the same time, we did contemplate volume erosion because we were very well aware of the CVS contract. We gave you that guidance. And so we have contemplated that volume erosion, but that's more of a H2 versus H1, as well as the potential for we knew with an interchangeable coming in, there could be some marginal amount of volume pickup there. So we did put in volume erosion in our guidance, but the vast majority of it is price. But I don't want investors to think that we didn't put any volume into our guidance.

Rob: Second half we have the <unk> impact given the mid year step up in rebates last year, so that immunization impact. It will come through in the first half you would expect price erosion to be greater in the first half or the second half, but at the same time, we did it. To play volume erosion, because we were very well aware of the Cvs contract. We gave you that guidance and so we have contemplated that volume erosion, but that's more of a second half versus first half as well as the potential for we knew with an interchangeable coming in there could be some marginal amount of volume pickup there. So we did put in volume erosion. In our guidance, but the vast majority of it is price, but I don't want investors to think that we didn't put any volume into our guidance. We were very well aware of the Cvs contract and I think we've made some prudent assumptions on potentially other impacts, but overall, we're still tracking in line with that guidance.

Rob: It will come through in the first half you would expect price erosion to be greater in the first half or the second half, but at the same time, we did it. To play volume erosion, because we were very well aware of the Cvs contract. We gave you that guidance and so we have contemplated that volume erosion, but that's more of a second half versus first half as well as the potential for we knew with an interchangeable coming in there could be some marginal amount of volume pickup there. So we did put in volume erosion. In our guidance, but the vast majority of it is price, but I don't want investors to think that we didn't put any volume into our guidance. We were very well aware of the Cvs contract and I think we've made some prudent assumptions on potentially other impacts, but overall, we're still tracking in line with that guidance.

Rob: To play volume erosion, because we were very well aware of the Cvs contract. We gave you that guidance and so we have contemplated that volume erosion, but that's more of a second half versus first half as well as the potential for we knew with an interchangeable coming in there could be some marginal amount of volume pickup there. So we did put in volume erosion. In our guidance, but the vast majority of it is price, but I don't want investors to think that we didn't put any volume into our guidance. We were very well aware of the Cvs contract and I think we've made some prudent assumptions on potentially other impacts, but overall, we're still tracking in line with that guidance.

Rob: In our guidance, but the vast majority of it is price, but I don't want investors to think that we didn't put any volume into our guidance. We were very well aware of the Cvs contract and I think we've made some prudent assumptions on potentially other impacts, but overall, we're still tracking in line with that guidance.

Roopal Thakkar: We were very well aware of the CVS contract, and I think we made some prudent assumptions on potentially other impacts. But overall, we're still tracking in line with that guidance. Thanks, Chris. Operator, next question, please. Yes, our next question comes from Terence Flynn with Morgan Stanley. Your line is open. Thanks so much for taking the questions, and congrats, Derek, and best of luck to Rob in the new role. Just wondering if you could maybe frame a little bit for us the opportunity for Skyrizi and UC versus Crohn's disease. I think last time we heard from J&J, Crohn's represented about $7 billion of Stelara sales. Obviously, you guys have made decent inroads there based on your comments, but just wondering how to think about the dollar opportunity and also of colitis.

Liz Shea: Thanks, Chris. Operator, next question, please.

Liz Shea: Thanks Chris. Operator, next question please.

Operator: Yes, our next question comes from Terence Flynn with Morgan Stanley. Your line is open.

Operator: Thanks so much for taking the questions, and congrats, Derek, and best of luck to Rob in the new role. Just wondering if you could maybe frame a little bit for us the opportunity for Skyrizi and UC versus Crohn's disease. I think last time we heard from J&J, Crohn's represented about $7 billion of Stelara sales. Obviously, you guys have made decent inroads there based on your comments, but just wondering how to think about the dollar opportunity and also of colitis.

Terence C. Flynn: Thanks, so much for taking the questions and congrats to Rick and best of luck to Rob in the new role. Just wondering if you could maybe frame a little bit for us the opportunity for SKYRIZZI in UC versus Crohn's disease. Last time, we heard from J&J Crohn's represented about $7 billion of STELARRA sales. Obviously, you guys have made some decent inroads there based on your comments, but just wondering how to think about the dollar opportunity in ulcerative colitis. And then when you were talking through some of the latest RINVOQ data, I was just wondering if there is an opportunity down the road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point or if we shouldn't think about that as a possibility. Thank you.

Terence Flynn: Just wondering if you could maybe frame a little bit for us the opportunity for <unk> in UC versus Crohn's disease. Last time, we heard from J&J Crohn's represented about $7 billion of store sales. Obviously, you guys have made some decent inroads there based on your comments, but just wondering how to think about the dollar opportunity in ulcerative colitis and then when you were talking through some of the latest <unk> data I was just wondering if there is an opportunity down there. The road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point or we shouldn't think about that as a possibility. Thank you.

Terence Flynn: Last time, we heard from J&J Crohn's represented about $7 billion of store sales. Obviously, you guys have made some decent inroads there based on your comments, but just wondering how to think about the dollar opportunity in ulcerative colitis and then when you were talking through some of the latest <unk> data I was just wondering if there is an opportunity down there. The road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point or we shouldn't think about that as a possibility. Thank you.

Terence C. Flynn: And then when you were talking through some of the latest RINVOQ data, I was just wondering if there is an opportunity down the road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point or if we shouldn't think about that as a possibility. Thank you.

Roopal Thakkar: And then when you were talking through some of the latest Rinvoq data, I was just wondering if there's an opportunity down the road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point, or if we shouldn't think about that as a possibility. Thank you. Yeah. Thanks, Terence. It's Jeff. I'll take the first question. So Crohn's is larger than and then UC. I mean, if you look at the overall market or revenue, I think it's 65 to 70%. So Crohn's is very, very significant. Having said that, ulcerative colitis is a multi-billion dollar opportunity for us. It's still a very, very underpenetrated and substantial indication. So it's weighted about 65-35, 70-30, but still, I wouldn't underestimate what ulcerative colitis means.

And then when you were talking through some of the latest Rinvoq data, I was just wondering if there's an opportunity down the road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point, or if we shouldn't think about that as a possibility. Thank you.

Terence Flynn: The road as you generate more clinical data, but also commercial data to potentially revisit the restrictions on line of therapy on the label at some point or we shouldn't think about that as a possibility. Thank you.

Jeff Stewart: Yeah, thanks Terence. It's Jeff, I'll take the first question. So Crohn's is larger than UC. I mean, if you look at the overall market of revenue, I think it's 65-70%, so Crohn's is very, very significant. Having said that, ulcerative colitis is a multibillion dollar opportunity for us. It's still a very very underpenetrated and substantial indication so it's weighted about 65/35, 70/30, but still I wouldn't underestimate what ulcerative colitis means. And I think I would add in concert with my prepared remarks, we've seen very, very significant acceleration into frontline Crohn's disease with SKYRIZZI, and what's remarkable, we studied a very, very difficult population in ulcerative colitis, but we still had a substantial amount of naive patients and the performance in that naive population is exceptional. I mean, it is at the very, very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are establishing the Crohn's indication in frontline and we know that we can bring UC very fast afterwards when we get the approval this year. So it's a substantial global opportunity, not the size that we'll see over the LRP with Crohn's, but still one of our largest opportunities that we have in the category. And then I'll ask Roopal based on the safety day he highlighted to comment on the second question.

Rob Michael: Yeah. Thanks, Terence. It's Jeff. I'll take the first question. So Crohn's is larger than and then UC. I mean, if you look at the overall market or revenue, I think it's 65 to 70%. So Crohn's is very, very significant. Having said that, ulcerative colitis is a multi-billion dollar opportunity for us. It's still a very, very underpenetrated and substantial indication. So it's weighted about 65-35, 70-30, but still, I wouldn't underestimate what ulcerative colitis means.

Terence Flynn: Dollar opportunity for us, it's still a very very underpenetrated and substantial. Indication. So it's weighted about 65, 35, 70, 30, but still I wouldn't underestimate what ulcerative colitis means and I think I would add and in concert with my prepared remarks, we've seen very very significant acceleration into frontline. Crohn's disease with Sky Rizzi, and what's remarkable we studied a very very difficult population in ulcerative colitis, but we still had a substantial. Tangible amount of naive patients and the performance in that naive population is exceptional I mean, it is at the very very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are. <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Terence Flynn: Indication. So it's weighted about 65, 35, 70, 30, but still I wouldn't underestimate what ulcerative colitis means and I think I would add and in concert with my prepared remarks, we've seen very very significant acceleration into frontline. Crohn's disease with Sky Rizzi, and what's remarkable we studied a very very difficult population in ulcerative colitis, but we still had a substantial. Tangible amount of naive patients and the performance in that naive population is exceptional I mean, it is at the very very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are. <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Speaker Change: So it's weighted about 65, 35, 70, 30, but still I wouldn't underestimate what ulcerative colitis means and I think I would add and in concert with my prepared remarks, we've seen very very significant acceleration into frontline. Crohn's disease with Sky Rizzi, and what's remarkable we studied a very very difficult population in ulcerative colitis, but we still had a substantial. Tangible amount of naive patients and the performance in that naive population is exceptional I mean, it is at the very very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are. <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Jeff Stewart: And I think I would add in concert with my prepared remarks, we've seen very, very significant acceleration into frontline Crohn's disease with SKYRIZZI, and what's remarkable, we studied a very, very difficult population in ulcerative colitis, but we still had a substantial amount of naive patients and the performance in that naive population is exceptional. I mean, it is at the very, very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are establishing the Crohn's indication in frontline and we know that we can bring UC very fast afterwards when we get the approval this year. So it's a substantial global opportunity, not the size that we'll see over the LRP with Crohn's, but still one of our largest opportunities that we have in the category. And then I'll ask Roopal based on the safety day he highlighted to comment on the second question.

Roopal Thakkar: And I think I would add, in concert with my prepared remarks, we've seen very, very significant acceleration into frontline Crohn's disease with Skyrizi. And what's remarkable, we studied a very, very difficult population in ulcerative colitis, but we still had a substantial amount of naive patients. And the performance in that naive population is exceptional. I mean, it is at the very, very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control. And so we like that setup because, obviously, we have exactly the same representatives who are establishing the Crohn's indication in frontline. And we know that we can bring UC very fast afterwards when we get the approval this year.

And I think I would add, in concert with my prepared remarks, we've seen very, very significant acceleration into frontline Crohn's disease with Skyrizi. And what's remarkable, we studied a very, very difficult population in ulcerative colitis, but we still had a substantial amount of naive patients. And the performance in that naive population is exceptional. I mean, it is at the very, very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control. And so we like that setup because, obviously, we have exactly the same representatives who are establishing the Crohn's indication in frontline. And we know that we can bring UC very fast afterwards when we get the approval this year.

Speaker Change: Crohn's disease with Sky Rizzi, and what's remarkable we studied a very very difficult population in ulcerative colitis, but we still had a substantial. Tangible amount of naive patients and the performance in that naive population is exceptional I mean, it is at the very very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are. <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Speaker Change: Tangible amount of naive patients and the performance in that naive population is exceptional I mean, it is at the very very top of the league table in terms of overall ability to get to endoscopic clearance and symptom control and so we like that setup because obviously, we have exactly the same representatives who are. <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Speaker Change: <unk>. Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Speaker Change: Crohn's indication in frontline and we know that we can bring you see very fast afterwards, when we get the approval. This year. So it's a substantial global opportunity not the size that we'll see over the LLP with crohn's, but still one of our largest opportunities that we have in the in the category and then I'll ask ruble based on the safety day. He highlighted to comment on the second question, yes. Thank you.

Roopal Thakkar: It's a substantial global opportunity, not the size that we'll see over the LRP with Crohn's, but still one of our largest opportunities that we have in the category. I'll ask Roopal, based on the safety data he highlighted, to comment on the second question. Yeah. Thank you. The data we keep generating continues to at least drive confidence for sure that the original phase 3s that came out with their safety profile, and what we continue to learn even with longer-term data, even in more high-risk patients, confirms what we've always seen. That will continue to drive confidence, I think, with our clinicians.

It's a substantial global opportunity, not the size that we'll see over the LRP with Crohn's, but still one of our largest opportunities that we have in the category. I'll ask Roopal, based on the safety data he highlighted, to comment on the second question.

Speaker Change: He highlighted to comment on the second question, yes. Thank you.

Roopal Thakkar: Yeah. Thank you. The data we keep generating continues to at least drive confidence for sure that the original phase 3s that came out with their safety profile, and what we continue to learn even with longer-term data, even in more high-risk patients, confirms what we've always seen. That will continue to drive confidence, I think, with our clinicians.

Roopal Thakkar: Yes, thank you. So the data we keep generating continues to at least drive confidence for sure that the original phase III that came out with their safety profile and what we continue to learn even with longer term data, even more high risk patients confirms what we've always seen. And that will continue to drive confidence I think with our clinicians. Now from a health authority standpoint, I think the position there is that you have this oral surveillance study with Tofacitinib and they're going to apply those findings to the other assets in a similar class probably until there's another outcome study to sort of argue against that and that's kind of how we see it. Now that's in the U.S. I would say globally, there is still an opportunity for many jurisdictions where JAK inhibitors can be at parity, so you might start seeing some more movement there in earlier lines. But as Jeff stated in his prepared remarks, the second line and even third line of many of these indications continues to grow as people now have options where in the past all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data.

So the data we keep generating continues to at least drive confidence for sure that the original phase III that came out. With their safety profile and what we continue to learn even with longer term data. Even more high risk patients confirms what we've always seen. And that will continue to drive confidence I think with our clinicians now. From a health authority standpoint, I think the position there is that you have this oral surveillance study. With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: With their safety profile and what we continue to learn even with longer term data. Even more high risk patients confirms what we've always seen. And that will continue to drive confidence I think with our clinicians now. From a health authority standpoint, I think the position there is that you have this oral surveillance study. With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: Even more high risk patients confirms what we've always seen. And that will continue to drive confidence I think with our clinicians now. From a health authority standpoint, I think the position there is that you have this oral surveillance study. With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: And that will continue to drive confidence I think with our clinicians now. From a health authority standpoint, I think the position there is that you have this oral surveillance study. With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Roopal Thakkar: Now, from a health authority standpoint, I think that the position there is that you have this ORAL Surveillance study with tofacitinib, and they're going to apply those findings to the other assets in a similar class, probably until there's another outcome study to sort of argue against that. And that's kind of how we see it. Now, that's in the US. I would say globally, there's still an opportunity for many jurisdictions where JAK inhibitors can be at parity. So you might start seeing some more movement there in earlier lines. But as Jeff stated in his prepared remarks, the second line and even third line of many of these indications continues to grow as people now have options where in the past, if all you had was a TNF, maybe you were cycling.

Now, from a health authority standpoint, I think that the position there is that you have this ORAL Surveillance study with tofacitinib, and they're going to apply those findings to the other assets in a similar class, probably until there's another outcome study to sort of argue against that. And that's kind of how we see it. Now, that's in the US. I would say globally, there's still an opportunity for many jurisdictions where JAK inhibitors can be at parity. So you might start seeing some more movement there in earlier lines. But as Jeff stated in his prepared remarks, the second line and even third line of many of these indications continues to grow as people now have options where in the past, if all you had was a TNF, maybe you were cycling.

Speaker Change: From a health authority standpoint, I think the position there is that you have this oral surveillance study. With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: With Tofacitinib and they're going to apply those findings to the other assets and a similar class. Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: Probably until Theres, another outcome study to sort of. Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: Argue against that and that's kind of how we see it now that's in the U S. I. I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Roopal Thakkar: I would say globally, there is still an opportunity for many jurisdictions where JAK inhibitors can be at parity, so you might start seeing some more movement there in earlier lines. But as Jeff stated in his prepared remarks, the second line and even third line of many of these indications continues to grow as people now have options where in the past all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data.

Speaker Change: I would say globally, there is still an opportunity. For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: For many jurisdictions, where JAK inhibitors can be at parity. So you might start seeing. Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: Some more movement there in earlier lines, but as Jeff stated in his prepared remarks, the second line and even third line. Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: Many of these indications continues to grow. People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Speaker Change: People now have options where in the past. So all you had was a TNF maybe you were cycling, but now that you know that there's other therapies you are starting to see people break sooner. So I think that second and third line is still a huge opportunity and we will continue to grow with this emerging data and Terence It's Jeff again.

Roopal Thakkar: But now that you know that there's other therapies, you're starting to see people break sooner. So I think that that second and third line is still a huge opportunity and will continue to grow with this emerging data. And Terence, it's Jeff again. One more comment. I mentioned how we're excited about the naive position for both Skyrizi, CD, and UC coming. But what's also nice is those same representatives are in the office and are able to highlight basically a one-two punch where you use Skyrizi first in earlier lines based on this exquisite data, and then obviously for later lines, you can use Rinvoq. And so we actually see in the marketplace that that combination and that positioning is allowing us right now in real time capturing almost towards 40% of all in-play share with Skyrizi first and Rinvoq second.

But now that you know that there's other therapies, you're starting to see people break sooner. So I think that that second and third line is still a huge opportunity and will continue to grow with this emerging data. And Terence, it's Jeff again. One more comment. I mentioned how we're excited about the naive position for both Skyrizi, CD, and UC coming. But what's also nice is those same representatives are in the office and are able to highlight basically a one-two punch where you use Skyrizi first in earlier lines based on this exquisite data, and then obviously for later lines, you can use Rinvoq. And so we actually see in the marketplace that that combination and that positioning is allowing us right now in real time capturing almost towards 40% of all in-play share with Skyrizi first and Rinvoq second.

Jeff Stewart: And Terence, it's Jeff again, one more comment. I mentioned how we're excited about the naive position for both SKYRIZZI, CD and UC coming but what's also nice is those same representatives are in the office and are able to highlight basically a one-two punch where you use SKYRIZZI first in earlier lines based on this exquisite data and then obviously for later lines you can use RINVOQ and so we actually see in the marketplace that that combination and that positioning is allowing us right now in real time capturing almost towards 40% of all in play share with SKYRIZZI first and RINVOQ second so it's an encouraging position as we fill out that portfolio.

Jeffrey Ryan Stewart: Naive position for both Sky Rizzi C D and you see coming but what's also nice is those same representatives are in the office and are able to highlight basically a one two punch where you use <unk> in earlier lines based on this exquisite data and then obviously for later lines you can can use rainbow and so. We actually see in the marketplace that that combination and that positioning is allowing us right now in real time. Capturing almost towards 40% of all in play share with Sky Rizzi first and <unk> second so. It's a it's an encouraging position as we fill out that portfolio.

Jeffrey Ryan Stewart: We actually see in the marketplace that that combination and that positioning is allowing us right now in real time. Capturing almost towards 40% of all in play share with Sky Rizzi first and <unk> second so. It's a it's an encouraging position as we fill out that portfolio.

Jeffrey Ryan Stewart: Capturing almost towards 40% of all in play share with Sky Rizzi first and <unk> second so. It's a it's an encouraging position as we fill out that portfolio.

Roopal Thakkar: So it's an encouraging position as we fill out that portfolio. Thanks, Terence. Operator, next question, please. The next question comes from Carter Gould with Barclays. Your line is open. Good morning. Thanks for taking the question. I wanted to circle back on the prior commentary around some of that TRX data. And I guess the overarching question is, is that, I guess, appropriately kind of capturing all the volume you're really seeing? I mean, there's clearly, with your part of your agreement with CVS and the Cordavis there, there is the potential for some Humira volume to potentially be shifting there. Is that being captured by TRX? So I guess any commentary there and sort of the accuracy of that data that we're all seeing.

So it's an encouraging position as we fill out that portfolio.

Jeffrey Ryan Stewart: It's a it's an encouraging position as we fill out that portfolio.

Liz Shea: Thanks, Terence. Operator, next question, please.

Liz Shea: Thanks Terence. Operator, next question please.

Operator: The next question comes from Carter Gould with Barclays. Your line is open.

Operator: Our next question comes from Carter Gould with Barclays. Your line is open.

Operator: Good morning. Thanks for taking the question. I wanted to circle back on the prior commentary around some of that TRX data. And I guess the overarching question is, is that, I guess, appropriately kind of capturing all the volume you're really seeing? I mean, there's clearly, with your part of your agreement with CVS and the Cordavis there, there is the potential for some Humira volume to potentially be shifting there. Is that being captured by TRX? So I guess any commentary there and sort of the accuracy of that data that we're all seeing.

Carter Gould: Good morning. Thanks for taking my question. I wanted to circle back on the prior commentary around some of the TRX data and I guess the overarching question is that I guess appropriately kind of capturing all the volume you're really seeing and there's clearly your part of your agreement with CVS and the core Davis there there is the potential for some HUMIRA volume potential would be shifting there, is that being captured by TRX? So I guess any commentary there on sort of the accuracy of that data that we're all seeing and then maybe if you could just go back and wanted to circle back on the EPS commentary on '25, sort of the way you framed that growth is that sort of ex IP R&D? Any color there would be appreciated. Thank you.

Carter Lewis Gould: Is that. I guess appropriately kind of capturing all the the volume you're really seeing them and there's clearly. With your part of your agreement with Cvs and the core Davis there there is the potential for some humira volume potential would be shifting there is that being captured by <unk>. So I guess any commentary there on sort of. The accuracy of that data that we're all seeing and then maybe if you could just go back and wanted to circle back on the EPS commentary on 25. The way you frame that growth does that sort of ex IP R&D any color there would be appreciated. Thank you.

Carter Lewis Gould: I guess appropriately kind of capturing all the the volume you're really seeing them and there's clearly. With your part of your agreement with Cvs and the core Davis there there is the potential for some humira volume potential would be shifting there is that being captured by <unk>. So I guess any commentary there on sort of. The accuracy of that data that we're all seeing and then maybe if you could just go back and wanted to circle back on the EPS commentary on 25. The way you frame that growth does that sort of ex IP R&D any color there would be appreciated. Thank you.

Carter Lewis Gould: With your part of your agreement with Cvs and the core Davis there there is the potential for some humira volume potential would be shifting there is that being captured by <unk>. So I guess any commentary there on sort of. The accuracy of that data that we're all seeing and then maybe if you could just go back and wanted to circle back on the EPS commentary on 25. The way you frame that growth does that sort of ex IP R&D any color there would be appreciated. Thank you.

Carter Lewis Gould: The accuracy of that data that we're all seeing and then maybe if you could just go back and wanted to circle back on the EPS commentary on 25. The way you frame that growth does that sort of ex IP R&D any color there would be appreciated. Thank you.

Roopal Thakkar: And then maybe if you just go back and wanted to circle back on the EPS commentary on 2025, sort of the way you frame that growth, is that sort of ex IP R&D? Any color there would be appreciated. Thank you. Yeah, it's a great question. So it's early, but we believe the data is accurate. I mean, if you look at the first two weeks to give you some sense, and this is inclusive of the Cordavis Humira, there was a downdraft of about 13,000 prescriptions for Humira from baseline. And the biosimilars captured about 10,000, which was primarily the Cordavis Hyrimoz. So there's 3,000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our Skyrizi and Rinvoq. And again, it's very logical because this is just not a one-to-one type of switch.

And then maybe if you just go back and wanted to circle back on the EPS commentary on 2025, sort of the way you frame that growth, is that sort of ex IP R&D? Any color there would be appreciated. Thank you.

Carter Lewis Gould: The way you frame that growth does that sort of ex IP R&D any color there would be appreciated. Thank you.

Jeffrey Stewart: Yeah, it's a great question. So it's early, but we believe the data is accurate. I mean, if you look at the first two weeks to give you some sense, and this is inclusive of the Cordavis Humira, there was a downdraft of about 13,000 prescriptions for Humira from baseline. And the biosimilars captured about 10,000, which was primarily the Cordavis Hyrimoz. So there's 3,000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our Skyrizi and Rinvoq. And again, it's very logical because this is just not a one-to-one type of switch.

Jeff Stewart: Yes, it's a great question. So it's early but we believe the data is accurate. I mean, if you look at the first two weeks to give you some sense and this is inclusive of the [inaudible] HUMIRA. There was a downdraft of about 13,000 prescriptions for HUMIRA from baseline. And the Biosimilars captured about which was primarily the [inaudible] most captured about 10. So there's 3000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our SKYRIZZI and RINVOQ. And again, it's very logical because this is just not a one-to-one type of switch like these physicians are interviewing and discussing with patients their care path forward and so we think that clearly some are moving to other mechanisms and we've seen that in other analogs as well. So we believe the data is accurate. Again, it's early. We're going to continue to monitor it. Where that ultimately lands we'll have to see. Again, I want to reiterate that the pure HUMIRA downdraft is within line with what we assumed and we are seeing this other market behavior that's taking place.

Speaker Change: It's early but we believe the data is accurate I mean, if you look at the first two weeks to give you some sense and this is inclusive of the corridor is humira. There was a downdraft of about 13000 prescriptions for Humira from baseline. And the Biosimilars captured about which was primarily the cordobas HERA. Most captured about 10. So there's 3000 3000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our Sky Roseann Rainbow and again, it's very logical because this is just not a. You know a one to one type of switch like these physicians are. Interviewing and discussing with patients their care path forward and so we think that clearly some are are moving to other mechanisms and we've seen that in other other analogs as well. So we believe the data is accurate you know again, it's early we're going to continue to monitor it. Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Speaker Change: There was a downdraft of about 13000 prescriptions for Humira from baseline. And the Biosimilars captured about which was primarily the cordobas HERA. Most captured about 10. So there's 3000 3000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our Sky Roseann Rainbow and again, it's very logical because this is just not a. You know a one to one type of switch like these physicians are. Interviewing and discussing with patients their care path forward and so we think that clearly some are are moving to other mechanisms and we've seen that in other other analogs as well. So we believe the data is accurate you know again, it's early we're going to continue to monitor it. Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Speaker Change: And the Biosimilars captured about which was primarily the cordobas HERA. Most captured about 10. So there's 3000 3000 prescriptions or over 20% that we can see in our data moving to other mechanisms of action, including our Sky Roseann Rainbow and again, it's very logical because this is just not a. You know a one to one type of switch like these physicians are. Interviewing and discussing with patients their care path forward and so we think that clearly some are are moving to other mechanisms and we've seen that in other other analogs as well. So we believe the data is accurate you know again, it's early we're going to continue to monitor it. Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Speaker Change: You know a one to one type of switch like these physicians are. Interviewing and discussing with patients their care path forward and so we think that clearly some are are moving to other mechanisms and we've seen that in other other analogs as well. So we believe the data is accurate you know again, it's early we're going to continue to monitor it. Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Roopal Thakkar: These physicians are interviewing and discussing with patients their care path forward. So we think that clearly some are moving to other mechanisms. We've seen that in other analogs as well. We believe the data is accurate. Again, it's early. We're going to continue to monitor it. Where that ultimately lands, we'll have to see. Again, I want to reiterate the pure Humira downdraft is in line with what we assumed, and we are seeing this other market behavior that's taking place. Carter, this is Rob. Just to clarify my earlier comments. Yes, it is ex-IP R&D. We always guide to ex-IP R&D. What I was trying to highlight is you should expect robust revenue growth in 2025, and that growth accelerating in 2026 and beyond, given that Part D benefit redesign impact in 2025.

These physicians are interviewing and discussing with patients their care path forward. So we think that clearly some are moving to other mechanisms. We've seen that in other analogs as well. We believe the data is accurate. Again, it's early. We're going to continue to monitor it. Where that ultimately lands, we'll have to see. Again, I want to reiterate the pure Humira downdraft is in line with what we assumed, and we are seeing this other market behavior that's taking place. Carter, this is Rob. Just to clarify my earlier comments. Yes, it is ex-IP R&D. We always guide to ex-IP R&D. What I was trying to highlight is you should expect robust revenue growth in 2025, and that growth accelerating in 2026 and beyond, given that Part D benefit redesign impact in 2025.

Speaker Change: Interviewing and discussing with patients their care path forward and so we think that clearly some are are moving to other mechanisms and we've seen that in other other analogs as well. So we believe the data is accurate you know again, it's early we're going to continue to monitor it. Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Speaker Change: Where that ultimately lands. We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Speaker Change: We'll have to see again I want to reiterate that the pure humira downdraft as within within line with what we assumed and we are seeing this other market behavior, that's taking place and.

Robert A. Michael: And Carter, this is Rob. Just to clarify my earlier comments, yes, it is X IP R&D, we always guide to X IP R&D. What I was trying to highlight is you should expect robust revenue growth in '25 with growth accelerating in '26 and beyond given that the part D benefit redesign impact in '25 and given that operating margin will expand, you typically would expect our earnings to grow faster than our revenue and that is generally true with one exception in '25 being that we will have an annualization impact from net interest expense. We will still deliver a very solid earnings growth, but as you model it, just keep in mind that while you would expect typically earnings to outpace revenue growth given expanding operating margin, you do have that dynamic in '25 that's important for your modeling.

Rob: Yes. It is X IP R&D, we always guide to X IP R&D, what I was trying to highlight is you should expect robust revenue growth and 25% with growth accelerating in 2006 and beyond given that. Part D benefit redesign impact in 'twenty, five and given that operating margin will expand you typically would expect our earnings to grow faster than our revenue and that is generally true with one exception and twenty-five being that we will have an annualized impact from net interest expense, we will still deliver a very solid earnings growth, but as you model. It just keep in mind that while you would expect typically earn. Earnings to outpace revenue growth given expanding operating margin you do that how that dynamic and twenty-five that's important for your modeling. Okay.

Rob: Part D benefit redesign impact in 'twenty, five and given that operating margin will expand you typically would expect our earnings to grow faster than our revenue and that is generally true with one exception and twenty-five being that we will have an annualized impact from net interest expense, we will still deliver a very solid earnings growth, but as you model. It just keep in mind that while you would expect typically earn. Earnings to outpace revenue growth given expanding operating margin you do that how that dynamic and twenty-five that's important for your modeling. Okay.

Roopal Thakkar: Given that operating margin will expand, you typically would expect our earnings to go faster than our revenue. That is generally true with the one exception in 2025 being that we will have an annualization impact from that interest expense. We will still deliver as a very solid earnings growth. But as you model it, just keep in mind that while you'd expect typically earnings to outpace revenue growth given expanding operating margin, you do have that dynamic in 2025 that's important for your modeling. Thanks, Carter. Operator, next question, please. Our next question comes from Simon Baker with Redburn Atlantic. Your line is open. Thank you for taking my questions. Two quick ones, if I may.

Given that operating margin will expand, you typically would expect our earnings to go faster than our revenue. That is generally true with the one exception in 2025 being that we will have an annualization impact from that interest expense. We will still deliver as a very solid earnings growth. But as you model it, just keep in mind that while you'd expect typically earnings to outpace revenue growth given expanding operating margin, you do have that dynamic in 2025 that's important for your modeling.

Rob: Earnings to outpace revenue growth given expanding operating margin you do that how that dynamic and twenty-five that's important for your modeling. Okay.

Liz Shea: Thanks, Carter. Operator, next question, please.

Rob: Okay.

Liz Shea: Thanks Carter. Operator, next question please.

Operator: Our next question comes from Simon Baker with Redburn Atlantic. Your line is open.

Operator: Thank you for taking my questions. Two quick ones, if I may.

Simon Baker: Thank you for taking my questions. Two quick ones, if I may. Just going back to HUMIRA but in a broader sense. There's been a degree of political noise around the role of PBMs blocking rather than assisting biosimilar uptake, I was just wondering if you expect that to come to anything in terms of structural changes within the market. And then secondly, [inaudible] level up data, I wonder how you see the competitive dynamics evolving in that space. Is this about switch or is this about market expansion? And I ask because this morning Sanofi said they welcome competition as a way of expanding the number of people treated in an area that's still relatively under penetrated. So I just wonder how you see the opportunity commercially. Thanks so much.

Roopal Thakkar: Just going back to Humira, but in a slightly broader sense, there's been a degree of political noise around the role of PBMs in blocking or rather than assisting biosimilar uptake. I just wonder if you expect that to come to anything in terms of structural changes within the market. Then secondly, on Rinvoq and the level up data, I wonder how you see the competitive dynamics evolving in that space. Is this about switches or is this about market expansion? I ask because this morning, Sanofi said that they welcome competition as a way of expanding the number of people treated in an area that's still relatively unpenetrated. So I just wonder how you see the opportunity commercially. Thanks so much. Yeah. Thank you for the questions. It's Jeff again. I would say that we're not anticipating a wholesale restructure of the PBM industry, for example.

Just going back to Humira, but in a slightly broader sense, there's been a degree of political noise around the role of PBMs in blocking or rather than assisting biosimilar uptake. I just wonder if you expect that to come to anything in terms of structural changes within the market. Then secondly, on Rinvoq and the level up data, I wonder how you see the competitive dynamics evolving in that space. Is this about switches or is this about market expansion? I ask because this morning, Sanofi said that they welcome competition as a way of expanding the number of people treated in an area that's still relatively unpenetrated. So I just wonder how you see the opportunity commercially. Thanks so much.

Simon Baker: The board of <unk>. A degree of political noise around the Pbms. Blocking. Blocking rather than assisting Biosimilar uptake I was just wondering if you expect that to come to anything in terms of structural changes within the market. And then secondly. When Vulcan the level up to you. Data. Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: A degree of political noise around the Pbms. Blocking.

Simon Baker: Blocking.

Simon Baker: Blocking rather than assisting Biosimilar uptake I was just wondering if you expect that to come to anything in terms of structural changes within the market. And then secondly. When Vulcan the level up to you. Data. Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

And then secondly. When Vulcan the level up to you. Data. Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: When Vulcan the level up to you. Data. Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: Data. Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: Wonder how you see easy. The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: The competitive dynamics. Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: Dynamics evolving in that space. She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said. Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: She says about switch you said, we're just about market expectation. And I ask because this morning, sorry, if you said.

Simon Baker: And I ask because this morning, sorry, if you said.

Simon Baker: Hey, welcome competition as a way of expanding. The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: The number of people treated in an area that still relatively under penetrated. I just wonder how you see the opportunity commercially thanks, so much.

Simon Baker: I just wonder how you see the opportunity commercially thanks, so much.

Jeffrey Stewart: Yeah. Thank you for the questions. It's Jeff again. I would say that we're not anticipating a wholesale restructure of the PBM industry, for example.

Jeff Stewart: Yeah, thank you for the questions. It's Jeff again. I'd say that we're not anticipating like a wholesale restructure of of the PBM Industry for example. We certainly think that there is a very reasonable chance of sort of transparency reform exactly how some of the economics are working, maybe transparencies to the government or downstream to the clients, that's very possible, but like a major wholesale change, we don't see that happening in the near term. Obviously, we are continuing to monitor that and we would make adjustments as we might need to. Regarding your atopic dermatitis question, I think the answer is really a bit of both. I think as we've highlighted before, the market here is exceptional in terms of the low bio penetration, oral and bio penetration. It's really only about 4 or 5%. So I think Sanofi's comments are very well timed. I mean, this marketplace is going to grow significantly as this innovation is able to be delivered to the global population with this very serious disease. But we also think this level up study is good for our market share penetration and I'll give you some perspective.

I'd say that. We're not anticipating like a wholesale restructure of of the P. B M. Industry for example. We certainly think that there is a very reasonable chance of sort of transparency reform exact.

Jeffrey Ryan Stewart: We're not anticipating like a wholesale restructure of of the P. B M. Industry for example. We certainly think that there is a very reasonable chance of sort of transparency reform exact.

Jeffrey Ryan Stewart: Industry for example. We certainly think that there is a very reasonable chance of sort of transparency reform exact.

Roopal Thakkar: I mean, we certainly think that there's a very reasonable chance of sort of transparency reform, exactly how some of the economics are working, maybe transparencies to the government or downstream to the clients. That's very possible. But a major wholesale change, we don't see that happening in the near term. Obviously, we're continuing to monitor that and would make adjustments as we might need to. Regarding your atopic dermatitis question, I think the answer is really a bit of both. I think, as we've highlighted before, the market here is exceptional in terms of the low bio penetration or oral and bio penetration. It's really only about 4% or 5%. So I think Sanofi's comments are very well timed. I mean, this marketplace is going to grow significantly as this innovation is able to be delivered to the global population with this very serious disease.

I mean, we certainly think that there's a very reasonable chance of sort of transparency reform, exactly how some of the economics are working, maybe transparencies to the government or downstream to the clients. That's very possible. But a major wholesale change, we don't see that happening in the near term. Obviously, we're continuing to monitor that and would make adjustments as we might need to. Regarding your atopic dermatitis question, I think the answer is really a bit of both. I think, as we've highlighted before, the market here is exceptional in terms of the low bio penetration or oral and bio penetration. It's really only about 4% or 5%. So I think Sanofi's comments are very well timed. I mean, this marketplace is going to grow significantly as this innovation is able to be delivered to the global population with this very serious disease.

Jeffrey Ryan Stewart: We certainly think that there is a very reasonable chance of sort of transparency reform exact.

Jeffrey Ryan Stewart: Exactly how some of the economics are working maybe transparencies to the government or downstream to the clients, that's very possible, but at like a major wholesale change. We don't see that happening in the near term obviously, we are continuing to monitor that and we would make adjustments as we as we might need to regarding your atopic derm. Dermatitis. Question I think the answer is really a bit of both I think as we've highlighted before the. The market here is exceptional in terms of the low bio penetration oral and bio penetration, it's really only about four 5%. So I think Sanofi is comments R. R. R. R very well timed I mean, this marketplace is going to grow significantly as this innovation. Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: We don't see that happening in the near term obviously, we are continuing to monitor that and we would make adjustments as we as we might need to regarding your atopic derm. Dermatitis. Question I think the answer is really a bit of both I think as we've highlighted before the. The market here is exceptional in terms of the low bio penetration oral and bio penetration, it's really only about four 5%. So I think Sanofi is comments R. R. R. R very well timed I mean, this marketplace is going to grow significantly as this innovation. Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: Dermatitis. Question I think the answer is really a bit of both I think as we've highlighted before the. The market here is exceptional in terms of the low bio penetration oral and bio penetration, it's really only about four 5%. So I think Sanofi is comments R. R. R. R very well timed I mean, this marketplace is going to grow significantly as this innovation. Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: Question I think the answer is really a bit of both I think as we've highlighted before the. The market here is exceptional in terms of the low bio penetration oral and bio penetration, it's really only about four 5%. So I think Sanofi is comments R. R. R. R very well timed I mean, this marketplace is going to grow significantly as this innovation. Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: The market here is exceptional in terms of the low bio penetration oral and bio penetration, it's really only about four 5%. So I think Sanofi is comments R. R. R. R very well timed I mean, this marketplace is going to grow significantly as this innovation. Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: Is able to be delivered to the to the global population with this very serious disease. But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Roopal Thakkar: But we also think this LEVEL UP study is good for our market share penetration. I'll give you some perspective. Our US market share is lower. It's around 9%. So typically, where our countries have been able to highlight more direct comparisons, we couldn't do that because of the starting dose I highlighted. We see that most of our international affiliates have market shares in the mid-teens, in some cases in the low 20s. So the ability to bring a comparative study that's directly linked to the US label and show the physicians how you can get to higher levels of control. Really, patients, they want no disease on their skin, and they really don't want itch if they can get there. That's what we studied in LEVEL UP.

But we also think this LEVEL UP study is good for our market share penetration. I'll give you some perspective. Our US market share is lower. It's around 9%. So typically, where our countries have been able to highlight more direct comparisons, we couldn't do that because of the starting dose I highlighted. We see that most of our international affiliates have market shares in the mid-teens, in some cases in the low 20s. So the ability to bring a comparative study that's directly linked to the US label and show the physicians how you can get to higher levels of control. Really, patients, they want no disease on their skin, and they really don't want itch if they can get there. That's what we studied in LEVEL UP.

Jeffrey Ryan Stewart: But we also think this level up Ah study is good for our market share penetration and I'll give you some perspective.

Jeffrey Ryan Stewart: Our U.S market share is lower, it's around 9%, so typically where our countries have been able to highlight more direct comparisons we couldn't do that because of the starting dose I highlighted. We see that most of our international affiliates have market shares in the mid teens, in some cases in the low twenty's and so the ability to bring a comparative study that's directly linked to the U.S label and show the physicians how you can get to higher levels of control and really patients they want no disease on their skin and they really don't want itch if they can get there and that's what we studied in level up. So we think it's certainly going to help with both market expansion and in particular around the world with our ability to capture some more share, so I hope that helps.

Jeffrey Ryan Stewart: Bring a a comparative study that's directly linked to the U S label. And show the physicians, how you can get to higher levels of control and really patients one they want no disease on their skin and they really don't Wan edge, if they can get there and that's what we studied in level up. So we think it's certainly going to help with both market expansion and in particular around the world with our ability to capture some. More share so I hope that helps.

Jeffrey Ryan Stewart: And show the physicians, how you can get to higher levels of control and really patients one they want no disease on their skin and they really don't Wan edge, if they can get there and that's what we studied in level up. So we think it's certainly going to help with both market expansion and in particular around the world with our ability to capture some. More share so I hope that helps.

Roopal Thakkar: So we think it's certainly going to help with both market expansion and, in particular, around the world with our ability to capture some more share. So I hope that helps. Thanks, Simon. Operator, next question, please. Our next question comes from Tim Anderson with Wolfe Research. Your line is open. Thank you so much. I have questions on contracting for Skyrizi in 2025. How many lives do you already have locked up through your general multi-year contracting? And then do you continue to think that the availability of cheap versions of Humira, either brand or biosimilar, won't lead to any increase in step edits on Skyrizi? Under the idea that while Skyrizi is better, something like Humira or biosimilar Stelara might be just fine, that same argument can be made in the statin category. For example, Crestor is the best. Zocor might do just fine. Thanks. Yeah.

Roopal Thakkar: So we think it's certainly going to help with both market expansion and, in particular, around the world with our ability to capture some more share. So I hope that helps.

Speaker Change: More share so I hope that helps.

Liz Shea: Thanks, Simon. Operator, next question, please.

Liz Shea: Thanks Simon. Operator, next question please.

Operator: Our next question comes from Tim Anderson with Wolfe Research. Your line is open.

Thank you so much. I have questions on contracting for Skyrizi in 2025. How many lives do you already have locked up through your general multi-year contracting? And then do you continue to think that the availability of cheap versions of Humira, either brand or biosimilar, won't lead to any increase in step edits on Skyrizi? Under the idea that while Skyrizi is better, something like Humira or biosimilar Stelara might be just fine, that same argument can be made in the statin category. For example, Crestor is the best. Zocor might do just fine. Thanks. Yeah.

Timothy Anderson: Thank you so much. I have questions on contracting for SKYRIZZI in '25. How many lives do you already have locked up through your general multi-year contracting? And then do you continue to think that the availability of cheap versions of HUMIRA either brand or biosimilar won't lead to any increase in step edit instead of SKYRIZZI under the idea that while SKYRIZZI is the better, something like HUMIRA or biosimilars to STELARA might be just fine. That same argument can be made in the statin category for example customers [inaudible] might do just fine. Thanks.

Speaker Change: Oh boy. Cheap versions of Humira, either brand or Biosimilar won't lead to any increase in step edit it sounds kind of risky. Under the idea that loss kind of is the better something like Humira biosimilars to Laura might be just fine. Same argument can be made in the statin category for example customers the past Zocor might do just fine.

Cheap versions of Humira, either brand or Biosimilar won't lead to any increase in step edit it sounds kind of risky. Under the idea that loss kind of is the better something like Humira biosimilars to Laura might be just fine. Same argument can be made in the statin category for example customers the past Zocor might do just fine.

Speaker Change: Under the idea that loss kind of is the better something like Humira biosimilars to Laura might be just fine. Same argument can be made in the statin category for example customers the past Zocor might do just fine.

Speaker Change: Same argument can be made in the statin category for example customers the past Zocor might do just fine.

Speaker Change: Thanks.

Roopal Thakkar: I think we'll probably pass on the number of lives locked up. I mean, we are confident given the market position, Tim, of Skyrizi and Rinvoq. I think, in particular, around the momentum that we have across the Skyrizi indications, that we're going to have very favorable access in 2025 and beyond. I think the other thing that we've highlighted is I'm very pleased with how the adoption of Skyrizi is going in IBD. I mean, it's very, very clear that we're taking significant share from Stelara, and the doctors are voting with their pen or their basically electronic prescribing because the ability to get these very sensitive patients under significant control. The world's really never seen anything like this sequence trial in terms of the ability to control the most difficult aspect of this challenging disease.

Jeffrey Stewart: I think we'll probably pass on the number of lives locked up. I mean, we are confident given the market position, Tim, of Skyrizi and Rinvoq. I think, in particular, around the momentum that we have across the Skyrizi indications, that we're going to have very favorable access in 2025 and beyond. I think the other thing that we've highlighted is I'm very pleased with how the adoption of Skyrizi is going in IBD. I mean, it's very, very clear that we're taking significant share from Stelara, and the doctors are voting with their pen or their basically electronic prescribing because the ability to get these very sensitive patients under significant control. The world's really never seen anything like this sequence trial in terms of the ability to control the most difficult aspect of this challenging disease.

Jeff Stewart: Yeah, I think we will probably pass on the number of lives locked up. I mean, we are confident given the market position Tim of SKYRIZZI and RINVOQ I think in particular around the momentum that we have across the SKYRIZZI indications that we're going to have very favorable access in 2025 and beyond. I think the other thing that we've highlighted is I'm very pleased with how the adoption of SKYRIZZI is going in IBD. I mean, it's very, very clear that we're taking significant share from STELARA and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control, the world's never really never seen anything like the sequence trial in terms of the ability to control the most difficult aspect of this challenging disease. So as time goes by, we think that differentiation is going to aid us significantly as we think about the formulary positions relative to not only HUMIRA but also to also to STELARA.

Speaker Change: Market position Tam of <unk> and <unk> I think in particular around the momentum that we have across the sky rizzi indications. That we're going to have a very favorable access. In 2025 and beyond. The other thing that we've highlighted is I'm very pleased with how the adoption. The option of Sky Ritchie is going. In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the. <unk> really never seen anything like the sequence trial in terms of the ability to control. The most difficult aspect of this challenging disease. So as time goes by we think that differentiation is going to aid us significantly. As we think about the formulary positions relative to not only humira, but also to also to Lora. Yeah.

Speaker Change: That we're going to have a very favorable access. In 2025 and beyond. The other thing that we've highlighted is I'm very pleased with how the adoption. The option of Sky Ritchie is going. In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the. <unk> really never seen anything like the sequence trial in terms of the ability to control. The most difficult aspect of this challenging disease. So as time goes by we think that differentiation is going to aid us significantly. As we think about the formulary positions relative to not only humira, but also to also to Lora. Yeah.

Speaker Change: In 2025 and beyond. The other thing that we've highlighted is I'm very pleased with how the adoption. The option of Sky Ritchie is going. In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the. <unk> really never seen anything like the sequence trial in terms of the ability to control. The most difficult aspect of this challenging disease. So as time goes by we think that differentiation is going to aid us significantly. As we think about the formulary positions relative to not only humira, but also to also to Lora. Yeah.

Speaker Change: The other thing that we've highlighted is I'm very pleased with how the adoption. The option of Sky Ritchie is going. In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the.

Speaker Change: The option of Sky Ritchie is going. In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the.

Speaker Change: In IBD I mean, it's very very clear that we're taking significant share from still lora and the doctors are voting with their pen or they're basically electronic prescribing because the ability to get these very sensitive patients under significant control the.

Speaker Change: <unk> really never seen anything like the sequence trial in terms of the ability to control. The most difficult aspect of this challenging disease. So as time goes by we think that differentiation is going to aid us significantly. As we think about the formulary positions relative to not only humira, but also to also to Lora. Yeah.

Roopal Thakkar: So as time goes by, we think that differentiation is going to aid us significantly as we think about the formulary positions relative to not only Humira, but also to Stelara. Thanks, Tim. Operator, next question, please. Yes. Our next question comes from Luisa Hector with Berenberg. Your line is open. Thank you very much for taking my question. It's on Elahere. I wonder whether you might be able to tell us the full quarter of sales and then any commentary around penetration rate of Elahere and how much off-label use you think may be happening with the guideline inclusion. Thank you. Sure. Thanks, Luisa. It's Scott. With respect to the Elahere full quarter of sales, so we closed mid-year in February. Prior to that, there were, according to what we've seen, approximately, just let me just double-check here, $70 million. I'm sorry. $110 million in the full quarter, $113 million in the full quarter.

So as time goes by, we think that differentiation is going to aid us significantly as we think about the formulary positions relative to not only Humira, but also to Stelara.

Speaker Change: As we think about the formulary positions relative to not only humira, but also to also to Lora. Yeah.

Liz Shea: Thanks, Tim. Operator, next question, please.

Speaker Change: Yeah.

Liz Shea: Thanks Tim. Operator, next question please.

Operator: Yes. Our next question comes from Luisa Hector with Berenberg. Your line is open.

Operator: Yes, our next question comes from Luisa Hector with [inaudible]. Your line is open.

Operator: Thank you very much for taking my question. It's on Elahere. I wonder whether you might be able to tell us the full quarter of sales and then any commentary around penetration rate of Elahere and how much off-label use you think may be happening with the guideline inclusion. Thank you.

Luisa Hector: Thank you very much for taking my question, it's on ELAHERE. I wonder whether you might be able to tell us the full quarter of sales and then any commentary around penetration rate of ELAHERE and how much off label use you think maybe happening with the guideline inclusion. Thank you.

Luisa Caroline Hector: And then any commentary around penetration rates of other here. And how much off label use you think maybe happening Betsy guideline inclusion thank Keith.

Luisa Caroline Hector: And how much off label use you think maybe happening Betsy guideline inclusion thank Keith.

Scott Reents: Sure. Thanks, Luisa. It's Scott. With respect to the Elahere full quarter of sales, so we closed mid-year in February. Prior to that, there were, according to what we've seen, approximately, just let me just double-check here, $70 million. I'm sorry. $110 million in the full quarter, $113 million in the full quarter.

Scott Reents: Sure, thanks Lisa. It's Scott. With respect to the ELAHERE full quarter of sales, so we closed mid year in February. Prior to that, there were according to what we've seen approximately just let me just double check here, 110 in the full quarter, 113 in the full quarter. And it's Jeff. What we also see in the marketplace, a big catalyst that we saw in the first quarter was the movement from the accelerated approval to full approval that Roopal highlighted with the Mirasol data. So we were rapidly able to basically integrate that into all the material of the medical liaisons and certainly the account managers and sales folks and having that definitive table in the label and the ability to go deeper into our call plan, is going to be very positive to continue the growth rates through the rest of the year. In terms of off label, that's difficult to say. We think that the majority of the sales thus far are in that platinum resistant population. However, the guidelines do allow for reimbursement with different levels of FrA Alpha, some of the updates that I mentioned in my prepared remarks, so we will continue to monitor it but there's certainly significant headroom in terms of the populations that are coming in terms of the ovarian cancer marketplace.

Luisa Caroline Hector: With respect to the Ela here for a full quarter of sales. So we closed mid year in February prior to that there were according to what we've seen approximately just let me just double check here 70 million I'm sorry. 110 in the fourth quarter of 113, and the full quarter.

Luisa Caroline Hector: So we closed mid year in February prior to that there were according to what we've seen approximately just let me just double check here 70 million I'm sorry. 110 in the fourth quarter of 113, and the full quarter.

Speaker Change: 110 in the fourth quarter of 113, and the full quarter.

Jeff Stewart: And it's Jeff. What we also see in the marketplace, a big catalyst that we saw in the first quarter was the movement from the accelerated approval to full approval that Roopal highlighted with the Mirasol data. So we were rapidly able to basically integrate that into all the material of the medical liaisons and certainly the account managers and sales folks and having that definitive table in the label and the ability to go deeper into our call plan, is going to be very positive to continue the growth rates through the rest of the year. In terms of off label, that's difficult to say. We think that the majority of the sales thus far are in that platinum resistant population. However, the guidelines do allow for reimbursement with different levels of FrA Alpha, some of the updates that I mentioned in my prepared remarks, so we will continue to monitor it but there's certainly significant headroom in terms of the populations that are coming in terms of the ovarian cancer marketplace.

Speaker Change: And as Jeff, but what we also see in the marketplace a big catalyst that we saw in the first quarter was the movement from the accelerated approval to full approval that ruble highlighted with the Mirasol data. So we were rapidly able to basically integrate that into all the material.

Roopal Thakkar: It's Jeff. What we also see in the marketplace, a big catalyst that we saw in the first quarter, was the movement from the accelerated approval to the full approval that Roopal highlighted with the MIRASOL data. So we were rapidly able to basically integrate that into all the material of the medical liaisons and certainly the account managers and sales folks. And having that definitive table in the label and the ability to go deeper into our call plan is going to be very positive to continue the growth rates through the rest of the year. In terms of off-label, that's difficult to say. We think that the majority of the sales thus far are in that platinum-resistant population. However, the guidelines do allow for reimbursement with different levels of FR-alpha, some of the updates that I mentioned in my prepared remarks.

It's Jeff. What we also see in the marketplace, a big catalyst that we saw in the first quarter, was the movement from the accelerated approval to the full approval that Roopal highlighted with the MIRASOL data. So we were rapidly able to basically integrate that into all the material of the medical liaisons and certainly the account managers and sales folks. And having that definitive table in the label and the ability to go deeper into our call plan is going to be very positive to continue the growth rates through the rest of the year. In terms of off-label, that's difficult to say. We think that the majority of the sales thus far are in that platinum-resistant population. However, the guidelines do allow for reimbursement with different levels of FR-alpha, some of the updates that I mentioned in my prepared remarks.

Speaker Change: <unk> of the medical liaisons and certainly the account managers and sales folks and having that definitive table in the in the label and the ability to go deeper into our call plan. Is going to be very positive to continue the growth rates through the rest of the year. In terms of off label. That's difficult that's difficult to say, we think that the majority of the sales thus far are in that platinum resistant. Platinum resistant population. However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Speaker Change: Is going to be very positive to continue the growth rates through the rest of the year. In terms of off label. That's difficult that's difficult to say, we think that the majority of the sales thus far are in that platinum resistant. Platinum resistant population. However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Speaker Change: In terms of off label. That's difficult that's difficult to say, we think that the majority of the sales thus far are in that platinum resistant. Platinum resistant population. However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Speaker Change: That's difficult that's difficult to say, we think that the majority of the sales thus far are in that platinum resistant. Platinum resistant population. However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Speaker Change: Platinum resistant population. However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Speaker Change: However, the guidelines do allow for reimbursement with different levels of Fr Alpha. The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

The updates that I mentioned in my prepared remarks, so we will continue to monitor it but theres certainly significant headroom in terms of the populations that are. That are coming in terms of the ovarian cancer marketplace.

Roopal Thakkar: So we'll continue to monitor it, but there's certainly significant headroom in terms of the populations that are coming in terms of the ovarian cancer marketplace. Thanks, Luisa. Operator, next question, please. Yes. Our next question comes from Gary Nachman with Raymond James. Your line is open. Thanks. Good morning. When looking at the strong performance of the Neuro franchise of Vraylar and Migraine in particular, talk about the competitive dynamics there in those markets and how did the growth tenets impact you in Q1 versus what you expected, and how should that trend for the rest of the year? And then with respect to Cerevel, just your confidence that it will still close by mid-year and how FTC is viewing the schizophrenia market and how much overlap there might be between Emraclidine and Vraylar, just the latest thinking on that based on your conversations with FTC. Thanks. Yeah.

So we'll continue to monitor it, but there's certainly significant headroom in terms of the populations that are coming in terms of the ovarian cancer marketplace.

Speaker Change: That are coming in terms of the ovarian cancer marketplace.

Liz Shea: Thanks, Luisa. Operator, next question, please.

Liz Shea: Thanks Luisa. Operator, next question please.

Operator: Yes. Our next question comes from Gary Nachman with Raymond James. Your line is open.

Operator: Yes, yhe next question comes from Gary Nachman with Raymond James. Your line is open.

Operator: Thanks. Good morning. When looking at the strong performance of the Neuro franchise of Vraylar and Migraine in particular, talk about the competitive dynamics there in those markets and how did the growth tenets impact you in Q1 versus what you expected, and how should that trend for the rest of the year? And then with respect to Cerevel, just your confidence that it will still close by mid-year and how FTC is viewing the schizophrenia market and how much overlap there might be between Emraclidine and Vraylar, just the latest thinking on that based on your conversations with FTC. Thanks. Yeah.

Gary Nachman: Thanks, good morning. When looking at the strong performance of the neuro franchise of VRAYLAR on migraine in particular, talk about the competitive dynamics there in those markets and how did the gross to net impact you in 1Q versus what you expected and how should that trend for the rest of the year? And then with respect to Cerevel, your confidence that it will still close by mid year and how FTC is viewing the schizophrenia market and how much overlap there might be between EMRACLIDINE and VRAYLAR. Just the latest thinking on that based on your conversations with FTC. Thanks.

Gary Jay Nachman: When looking at the strong performance of the neuro franchise of railcar on migraine in particular talk about the competitive dynamics there in those markets and how did the gross to net impact you in <unk> versus what you expected and how should that trend for the rest of the year. Yes. And then with respect to serve all just your confidence that it will still close by mid year and how FTC is viewing the schizophrenia market and how much overlap there might be between them rapidly and in very large. The latest thinking on that based on your conversations with FTC. Thanks.

Gary Jay Nachman: Yes. And then with respect to serve all just your confidence that it will still close by mid year and how FTC is viewing the schizophrenia market and how much overlap there might be between them rapidly and in very large. The latest thinking on that based on your conversations with FTC. Thanks.

Gary Jay Nachman: And then with respect to serve all just your confidence that it will still close by mid year and how FTC is viewing the schizophrenia market and how much overlap there might be between them rapidly and in very large. The latest thinking on that based on your conversations with FTC. Thanks.

Gary Jay Nachman: The latest thinking on that based on your conversations with FTC. Thanks.

Jeff Stewart: Yeah, hi, it's Jeff, I'll take the competitiveness comment in terms of what we're looking at. We're very pleased with the competitive ability to gain market share in these segments so I'll start off with migraine. We continue to be the new to brand share leader in botox for chronic migraine and we see that QULIPTA is accelerating significantly. So QULIPTA is now the leading preventative agent and what's nice is there's very little interaction with botox, because if you're an injector, you use botox, if you're not an injector, you have access to a fantastic drug with QULIPTA. So QULIPTA is really clearly taking over the market leadership position among the injectable and oral UGRT. UBRELVI continues to have a very meaningful and substantial lead over the main competitor [inaudible] and we are seeing some increased penetration into the larger Triptan segment, which is key to our long term growth.

Roopal Thakkar: Hi. It's Jeff. I'll take the competitiveness comment in terms of what we're looking at. We're very pleased with the competitiveness, our ability to gain market share in these segments. I'll start off with migraine. We continue to be the new-to-brand share leader in Botox for chronic migraine, and we see that Qulipta is accelerating significantly. So Qulipta is now the leading preventative agent. And what's nice is there's very little interaction with Botox because if you're an injector, you use Botox. If you're not an injector, you have access to a fantastic drug with Qulipta. So Qulipta is really clearly taking over the market leadership position among the injectable and the oral CGRPs. Ubrelvy continues to have a very meaningful and substantial lead over the main competitor, Nurtec, and we are seeing some increased penetration into the larger triptan segment, which is key to our long-term growth.

Jeffrey Stewart: Hi. It's Jeff. I'll take the competitiveness comment in terms of what we're looking at. We're very pleased with the competitiveness, our ability to gain market share in these segments. I'll start off with migraine. We continue to be the new-to-brand share leader in Botox for chronic migraine, and we see that Qulipta is accelerating significantly. So Qulipta is now the leading preventative agent. And what's nice is there's very little interaction with Botox because if you're an injector, you use Botox. If you're not an injector, you have access to a fantastic drug with Qulipta. So Qulipta is really clearly taking over the market leadership position among the injectable and the oral CGRPs. Ubrelvy continues to have a very meaningful and substantial lead over the main competitor, Nurtec, and we are seeing some increased penetration into the larger triptan segment, which is key to our long-term growth.

Jeffrey Ryan Stewart: Well, we're looking at we're very pleased with the competitive our ability to gain market share in these. In these segments, so I'll start off with migraine, we continue to be the. The new to brand share leader in Botox for chronic migraine and we see that Q lift is accelerating significantly. So <unk> is now the leading preventative agent and. And what's nice is there's very little interaction with botox, because if you're an injector use botox if youre not an injector you have access to a fantastic drug with <unk>. So can you look to us really.

Jeffrey Ryan Stewart: In these segments, so I'll start off with migraine, we continue to be the. The new to brand share leader in Botox for chronic migraine and we see that Q lift is accelerating significantly. So <unk> is now the leading preventative agent and. And what's nice is there's very little interaction with botox, because if you're an injector use botox if youre not an injector you have access to a fantastic drug with <unk>. So can you look to us really.

Jeffrey Ryan Stewart: The new to brand share leader in Botox for chronic migraine and we see that Q lift is accelerating significantly. So <unk> is now the leading preventative agent and. And what's nice is there's very little interaction with botox, because if you're an injector use botox if youre not an injector you have access to a fantastic drug with <unk>. So can you look to us really.

Jeffrey Ryan Stewart: And what's nice is there's very little interaction with botox, because if you're an injector use botox if youre not an injector you have access to a fantastic drug with <unk>. So can you look to us really.

Jeffrey Ryan Stewart: clearly taking over the market leadership position among the injectable and oral UGRT. UBRELVI continues to have a very meaningful and substantial lead over the main competitor [inaudible] and we are seeing some increased penetration into the larger Triptan segment, which is key to our long term growth. VRAYLAR continues to perform very well, ongoing market growth and it's really because we have, if you look at our perceptions Gary of our key prescribers, you're at the very, very top of the lead table in terms of perceptions around the efficacy around adjunctive major depression, which is our most recent indication and we have probably the best scope of indications for bipolar one and so both of those are allowing us to continue to gain share so we're in a pretty good position. We also feel that the gross to net, our

clearly taking over the market leadership position among the injectable and oral UGRT. UBRELVI continues to have a very meaningful and substantial lead over the main competitor [inaudible] and we are seeing some increased penetration into the larger Triptan segment, which is key to our long term growth.

Jeffrey Ryan Stewart: Among the injectable in the oral <unk> you Barelvi continues to have a very meaningful and substantial lead over the main competitor <unk> and we are seeing some increased penetration into the larger Triptan segment, which is key to our long term growth. <unk> continues to perform very well our ongoing market a market growth and it's really because we have if you look at our perceptions Gary of our key prescribers youre at the very very top of the table. The league table in terms of perceptions around the efficacy around adjunctive.

VRAYLAR continues to perform very well, ongoing market growth and it's really because we have, if you look at our perceptions Gary of our key prescribers, you're at the very, very top of the lead table in terms of perceptions around the efficacy around adjunctive major depression, which is our most recent indication and we have probably the best scope of indications for bipolar one and so both of those are allowing us to continue to gain share so we're in a pretty good position. We also feel that the gross to net, our vouchers, our co pay which sometimes can get little funky in the first quarter, we have strong controls there and we're seeing a lot of stability. So overall those businesses are performing very well.

Roopal Thakkar: Vraylar continues to perform very well, ongoing market growth. It's really because we have, if we look at our perceptions, Gary, of our key prescribers, you're at the very, very top of the table, the lead table in terms of perceptions around the efficacy around adjunctive major depression, which is our most recent indication, and we have probably the best scope of indications for bipolar I. So both of those are allowing us to continue to gain share. We're in a pretty good position. We also feel that the gross to net, our vouchers, our copay, which sometimes can get a little funky in Q1, we have strong controls there, and we're seeing a lot of stability. Overall, those businesses are performing very well. Gary, I'll take your question. This is Rob. I'll take your question on the FTC.

Vraylar continues to perform very well, ongoing market growth. It's really because we have, if we look at our perceptions, Gary, of our key prescribers, you're at the very, very top of the table, the lead table in terms of perceptions around the efficacy around adjunctive major depression, which is our most recent indication, and we have probably the best scope of indications for bipolar I. So both of those are allowing us to continue to gain share. We're in a pretty good position. We also feel that the gross to net, our vouchers, our copay, which sometimes can get a little funky in Q1, we have strong controls there, and we're seeing a lot of stability. Overall, those businesses are performing very well.

Jeffrey Ryan Stewart: <unk> continues to perform very well our ongoing market a market growth and it's really because we have if you look at our perceptions Gary of our key prescribers youre at the very very top of the table. The league table in terms of perceptions around the efficacy around adjunctive.

Jeffrey Ryan Stewart: Major depression, which is our most recent indication and we have probably the best scope of indications for for bipolar one and so both of those are allowing us to continue to gain share. So we're in a pretty good position. We also feel that the gross to net or.

Jeffrey Ryan Stewart: vouchers, our co pay which sometimes can get little funky in the first quarter, we have strong controls there and we're seeing a lot of stability. So overall those businesses are performing very well. Gary, it's Rob, I'll take your question on the ADC. we are working closely with the ADC on their additional requests. I mean keep in mind that we do not have any overlapping ways with Cerevel and VRAYLAR's share in schizophrenia is very low and the vast majority of VRAYLAR sales comes from the bipolar and AMBV indications. In the case of [inaudible], it will serve the early Parkinson's segment, which [inaudible] do not participate in. So we don't have any concerns with the American transactions and continue to expect closing it in the middle of the year.

vouchers, our co pay which sometimes can get little funky in the first quarter, we have strong controls there and we're seeing a lot of stability. So overall those businesses are performing very well.

Robert A. Michael: Gary, it's Rob, I'll take your question on the ADC. we are working closely with the ADC on their additional requests. I mean keep in mind that we do not have any overlapping ways with Cerevel and VRAYLAR's share in schizophrenia is very low and the vast majority of VRAYLAR sales comes from the bipolar and AMBV indications. In the case of [inaudible], it will serve the early Parkinson's segment, which [inaudible] do not participate in. So we don't have any concerns with the American transactions and continue to expect closing it in the middle of the year.

Rob Michael: Gary, I'll take your question. This is Rob. I'll take your question on the FTC.

Roopal Thakkar: We are working closely with the agency on their additional requests. I mean, keep in mind that we do not have any overlapping MOAs with Cerevel. Vraylar's share in schizophrenia is very low. The vast majority of Vraylar sales comes from the bipolar and MDD indications. In the case of Tavapadon, it will serve the early Parkinson's segment, which Duodopa and Vyalev do not participate in. So we don't have any concerns with the merits of the transaction and continue to expect closing it in the middle of the year. Thanks, Gary. Operator, next question, please. Yes. Our next question comes from Steve Scala with TD Cowen. Your line is open. Thank you very much. I apologize in advance for asking you to clarify on Humira, but you mentioned several times that things are playing out as planned.

We are working closely with the agency on their additional requests. I mean, keep in mind that we do not have any overlapping MOAs with Cerevel. Vraylar's share in schizophrenia is very low. The vast majority of Vraylar sales comes from the bipolar and MDD indications. In the case of Tavapadon, it will serve the early Parkinson's segment, which Duodopa and Vyalev do not participate in. So we don't have any concerns with the merits of the transaction and continue to expect closing it in the middle of the year.

Speaker Change: In mind that we do not have any overlapping ways with cerebral and <unk> share in schizophrenia is very low and the vast majority of railcar sales comes from the bipolar and <unk> indications in the case of <unk>. It will serve the early Parkinson's segment, which do adult by and Viola do not participate in so we don't have any <unk>. <unk> at the merits of the transaction and continue to expect closing it in the middle of the year.

<unk> at the merits of the transaction and continue to expect closing it in the middle of the year.

Liz Shea: Thanks, Gary. Operator, next question, please.

Liz Shea: Thanks Gary. Operator, next question please.

Operator: Yes. Our next question comes from Steve Scala with TD Cowen. Your line is open.

Operator: Yes, our next question comes from Steve Scala with TD Cowen. Your line is open.

Operator: Thank you very much. I apologize in advance for asking you to clarify on Humira, but you mentioned several times that things are playing out as planned.

Steve Scala: Thank you very much and I apologize in advance for asking you to clarify on HUMIRA, but you mentioned several times that things are playing out as planned, but in the prepared remarks, you said U.S erosion played out slightly better than you thought in Q1. So is the conclusion that whatever was better is temporary? You also mentioned volume pressure offset by price benefit, can you quantify that? But when you sum it all up, it sounds like you expect volumes to underperform the expectations you set three months ago and is that in part maybe due to the Accredo news from yesterday? So that's a long question, but that's only one question.

Roopal Thakkar: But in the prepared remarks, you said US erosion played out slightly better than you thought in Q1. So is the conclusion that whatever was better is temporary? You also mentioned volume pressure, but offset by price benefit. Can you quantify that? But when you sum it all up, it sounds like you expect volumes to underperform the expectations you set three months ago. And is that in part maybe due to the Accredo news from yesterday? So that's a long question, but that's only one question. The second question is curious if the FDA has contacted AbbVie about the potential safety issues with Emraclidine post the competitor issue with convulsions and rabbits. And have you seen this with your agent? Thank you. Yeah. So it's Jeff. So I'll try to take that. So the first part was the first quarter.

So is the conclusion that whatever was better is temporary you also mentioned volume pressure, but price offset by price benefit can you quantify that but when you sum it all up it sounds like you expect volumes to underperform the expectations you set three months ago.

Steve Scala: and is that in part maybe due to the Accredo news from yesterday? So that's a long question, but that's only one question. The second question is curious if the FDA has contacted AbbVie about the potential safety issues with EMRACLIDINE post the competitor issue with convulsions in rabbits and have you seen this with your agent? Thank you.

and is that in part maybe due to the Accredo news from yesterday? So that's a long question, but that's only one question.

Steve Scala: Curious if the FDA has contacted. About the potential safety issues with <unk>. And black redeem post the competitor issue with convulsions in rabbits and have you seen this with your agent. Thank you.

The second question is curious if the FDA has contacted AbbVie about the potential safety issues with EMRACLIDINE post the competitor issue with convulsions in rabbits and have you seen this with your agent? Thank you.

Steve Scala: About the potential safety issues with <unk>. And black redeem post the competitor issue with convulsions in rabbits and have you seen this with your agent. Thank you.

Steve Scala: And black redeem post the competitor issue with convulsions in rabbits and have you seen this with your agent. Thank you.

Jeffrey Stewart: Yeah. So it's Jeff. So I'll try to take that. So the first part was the first quarter.

Jeff Stewart: Yeah, so it's Jeff, I'll try to take that. So the first part was the first quarter I mean, it was marginally better in terms of overall performance, because obviously, we didn't see any volume disruption until four one. Now when you look at four one and after three weeks, we look at our model in terms of the expectation around retention of HUMIRA with the CVS template, that's largely tracking in line with what our expectations were with a bit of the surprise that some of that HUMIRA is not go into the biosimilar as I mentioned, it's going to other mechanisms, including SKYRIZZI and RINVOQ. So overall, as we look to the balance of really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight if he has anything to add, is very much in line with what we guided at the beginning of the year. so no material change in what we're seeing in the market place.

Roopal Thakkar: I mean, it was marginally better in terms of overall performance because we didn't see, obviously, we didn't see any volume disruption until Q1. Now, when you look at Q1 and we look after three weeks, we look at our model in terms of the expectation around retention of Humira with the CVS formulary, that's largely tracking in line with what our expectations were, with a bit of the surprise that some of that Humira is not going to the biosimilar, as I mentioned, is going to other mechanisms, including Skyrizi and Rinvoq. So overall, as we look to the balance of really the first quarter, what we're seeing play out in the second quarter, and look to the full year, our commentary, and I'll ask Rob to highlight if he has anything to add, is very much in line with what we've guided at the beginning of the year.

I mean, it was marginally better in terms of overall performance because we didn't see, obviously, we didn't see any volume disruption until Q1. Now, when you look at Q1 and we look after three weeks, we look at our model in terms of the expectation around retention of Humira with the CVS formulary, that's largely tracking in line with what our expectations were, with a bit of the surprise that some of that Humira is not going to the biosimilar, as I mentioned, is going to other mechanisms, including Skyrizi and Rinvoq. So overall, as we look to the balance of really the first quarter, what we're seeing play out in the second quarter, and look to the full year, our commentary, and I'll ask Rob to highlight if he has anything to add, is very much in line with what we've guided at the beginning of the year.

Jeffrey Ryan Stewart: Performance, because we didn't see obviously, we didn't see any volume disruption until four one. Now when you look at four one and we look after. After three weeks, we look at our model in terms of the expectation around retention of Humira with the Cvs template that's largely tracking in line with what our expectations were with a bit of the surprise that some of that Humira is not go into the Biosimilar as I mentioned is going to other mechanisms, including sky rosy in Renova. So overall as we as we look to the balance of the really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight. A highlight if he has anything to add is is very much in line with what we guided at the beginning of the year. So no no material change in <unk>.

Now when you look at four one and we look after. After three weeks, we look at our model in terms of the expectation around retention of Humira with the Cvs template that's largely tracking in line with what our expectations were with a bit of the surprise that some of that Humira is not go into the Biosimilar as I mentioned is going to other mechanisms, including sky rosy in Renova. So overall as we as we look to the balance of the really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight. A highlight if he has anything to add is is very much in line with what we guided at the beginning of the year. So no no material change in <unk>.

Jeffrey Ryan Stewart: After three weeks, we look at our model in terms of the expectation around retention of Humira with the Cvs template that's largely tracking in line with what our expectations were with a bit of the surprise that some of that Humira is not go into the Biosimilar as I mentioned is going to other mechanisms, including sky rosy in Renova. So overall as we as we look to the balance of the really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight. A highlight if he has anything to add is is very much in line with what we guided at the beginning of the year. So no no material change in <unk>.

Jeff Stewart: So overall, as we look to the balance of really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight if he has anything to add, is very much in line with what we guided at the beginning of the year. so no material change in what we're seeing in the market place.

Jeffrey Ryan Stewart: So overall as we as we look to the balance of the really the first quarter, what we're seeing play out in the second quarter and look to the full year, our commentary and I'll ask Rob to highlight. A highlight if he has anything to add is is very much in line with what we guided at the beginning of the year. So no no material change in <unk>.

Rob: A highlight if he has anything to add is is very much in line with what we guided at the beginning of the year. So no no material change in <unk>.

Roopal Thakkar: So no material change in what we're seeing in the marketplace. Yeah. This is Rob. I'll confirm that, what Jeff is saying. I mean, it's tracking in line with our expectations. We are not saying that volume is worse than we originally guided. We're saying this is tracking in line with our expectations. We've tried to characterize for you the price versus volume dynamics, obviously saying the price erosion is the vast majority of the decline, but there is volume, and it's tracking exactly as we anticipated. So there isn't an additional downside here. And as Jeff mentioned, we did have slightly better performance in Q1, but again, it was, I mean, I think to the tune of $30 to 40 million on this book of business, not overly material, but ahead of the initial expectation. And hey, Steve, it's Roopal. I can take the next question.

So no material change in what we're seeing in the marketplace. Yeah. This is Rob. I'll confirm that, what Jeff is saying. I mean, it's tracking in line with our expectations. We are not saying that volume is worse than we originally guided. We're saying this is tracking in line with our expectations. We've tried to characterize for you the price versus volume dynamics, obviously saying the price erosion is the vast majority of the decline, but there is volume, and it's tracking exactly as we anticipated. So there isn't an additional downside here. And as Jeff mentioned, we did have slightly better performance in Q1, but again, it was, I mean, I think to the tune of $30 to 40 million on this book of business, not overly material, but ahead of the initial expectation.

Robert A. Michael: Yeah, this is Rob. I'll confirm what Jeff is saying. I mean, it's tracking in line with our expectations. We are not saying that volume is worse than we originally guided [inaudible] tracking in line with our expectations, we try to characterize for you the price versus volume dynamics, obviously, saying the price erosion is the vast majority of [inaudible] volume and it's tracking exactly as we anticipated, so there is an additional downside here. And as Jeff mentioned, we did have slightly better performance in the first quarter, but again, I mean, I think to the tune of $30 million to $40 million so on this book of business not overly material, but ahead of the initial expectation.

Speaker Change: <unk> versus volume dynamics, obviously, saying, it's the price erosion as the vast majority of the decline, but there is volume. And it's tracking exactly as we anticipated so there isn't an additional downside here and as Jeff mentioned, we did have slightly better performance in the first quarter, but again. It was I mean, I think to the tune of $30 million to $40 million. So on this book of business. Overly material, but ahead of the initial expectation.

Rob: And it's tracking exactly as we anticipated so there isn't an additional downside here and as Jeff mentioned, we did have slightly better performance in the first quarter, but again. It was I mean, I think to the tune of $30 million to $40 million. So on this book of business. Overly material, but ahead of the initial expectation.

Overly material, but ahead of the initial expectation.

Roopal Thakkar: And hey, Steve, it's Roopal. I can take the next question.

Roopal Thakkar: Hey, Steve, it's Roopal, I can take the next question. We did a thorough diligence and when we look at data sets that offer clinical data obviously, we do a deep dive there, also look at blinded data, but we also do a deep dive look into toxicology, animal tox in particular, and we didn't observe anything that was consistent with what has been described thus far. And as I mentioned, when we look at blinded safety data, either from the 1B or the current pivotals that are running, we don't see an adverse event like this that would be related and as far as we know, no health authority has reached out to ask any further questions about this.

RUPAUL: Steve It's rupaul I can I can take the next question. We did a thorough diligence and. When we look at data sets that offer a clinical data obviously, we do a deep dive there. So look at blinded data, but we also do a deep dive look. <unk>. Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data. Either from the <unk> b or the. Our current <unk>. Pivotal as that are running. Don't see an adverse event like this that would be related and as far as we know no no health authority. <unk> has reached out to ask any further questions about this.

Roopal Thakkar: We did a thorough diligence. When we look at data sets that offer clinical data, obviously, we do a deep dive there. Also look at blinded data, but we also do a deep dive looking at toxicology, animal tox in particular. We didn't observe anything that was consistent with what has been described thus far. As I mentioned, when we look at blinded safety data, either from the 1B or the current pivotals that are running, we don't see an adverse event like this that would be related. As far as we know, no health authority has reached out to ask any further questions about this. Hey, Steve, this is Rob. I'm going to come back to your previous question, and maybe I understand where the confusion could be. That one-time price benefit is a year-over-year dynamic. It was contemplated in our guidance.

We did a thorough diligence. When we look at data sets that offer clinical data, obviously, we do a deep dive there. Also look at blinded data, but we also do a deep dive looking at toxicology, animal tox in particular. We didn't observe anything that was consistent with what has been described thus far. As I mentioned, when we look at blinded safety data, either from the 1B or the current pivotals that are running, we don't see an adverse event like this that would be related. As far as we know, no health authority has reached out to ask any further questions about this. Hey, Steve, this is Rob. I'm going to come back to your previous question, and maybe I understand where the confusion could be. That one-time price benefit is a year-over-year dynamic. It was contemplated in our guidance.

RUPAUL: We did a thorough diligence and. When we look at data sets that offer a clinical data obviously, we do a deep dive there. So look at blinded data, but we also do a deep dive look. <unk>. Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data. Either from the <unk> b or the. Our current <unk>. Pivotal as that are running. Don't see an adverse event like this that would be related and as far as we know no no health authority. <unk> has reached out to ask any further questions about this.

RUPAUL: When we look at data sets that offer a clinical data obviously, we do a deep dive there. So look at blinded data, but we also do a deep dive look. <unk>. Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data. Either from the <unk> b or the. Our current <unk>. Pivotal as that are running. Don't see an adverse event like this that would be related and as far as we know no no health authority. <unk> has reached out to ask any further questions about this.

RUPAUL: So look at blinded data, but we also do a deep dive look. <unk>. Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data.

RUPAUL: <unk>. Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data.

Psychology animal Tox in particular, and we didn't observe anything that was consistent with what. It has been described thus far and as. As I mentioned, when we look at blinded safety data.

RUPAUL: It has been described thus far and as. As I mentioned, when we look at blinded safety data.

RUPAUL: As I mentioned, when we look at blinded safety data.

RUPAUL: Either from the <unk> b or the. Our current <unk>. Pivotal as that are running.

RUPAUL: Our current <unk>. Pivotal as that are running.

RUPAUL: Pivotal as that are running.

RUPAUL: Don't see an adverse event like this that would be related and as far as we know no no health authority. <unk> has reached out to ask any further questions about this.

RUPAUL: <unk> has reached out to ask any further questions about this.

Robert A. Michael: Hey Steve, this is Rob, I'm going to come back to your previous question and maybe I understand where the confusion could be. That one time price benefit is a year-over-year dynamic. It was contemplated in our guidance. When you have a formulary change, you essentially have those rebates go away and you recognize that that was part of our guidance, that was not a benefit versus our guidance, that's a benefit in the year-over-year. So if you look at Scott guided to I think it was 32% erosion in the second quarter, which is lower, it was about 40% in the first quarter, so naturally you would wonder why would you have less erosion, where there was that year-over-year dynamic, but that was how we planned the year. We anticipated because we knew about the change that was coming in April 1st. So I don't want you to interpret that as a benefit versus our guidance, that's a benefit in the year-over-year calculation.

Roopal Thakkar: When you have a formulary change, you essentially have those rebates go away, and you recognize that. That was part of our guidance. That was not a benefit versus our guidance. That's a benefit in the year-over-year. So you look at Scott guided to, I think it was 32% erosion in Q2, which is lower than it was around 40% in Q1. So naturally, you'd wonder why would you have less erosion. Well, there's that year-over-year dynamic, but that was how we planned the year. We anticipated this because we knew about the change that was coming on 1 April. So I don't want you to interpret that as a benefit versus our guidance. That's a benefit in the year-over-year calculation. Thanks, Steve. Operator, next question, please. Yes. Our next question comes from Trung Huynh with UBS. Your line is open. Hi, guys. Trung Huynh from UBS.

When you have a formulary change, you essentially have those rebates go away, and you recognize that. That was part of our guidance. That was not a benefit versus our guidance. That's a benefit in the year-over-year. So you look at Scott guided to, I think it was 32% erosion in Q2, which is lower than it was around 40% in Q1. So naturally, you'd wonder why would you have less erosion. Well, there's that year-over-year dynamic, but that was how we planned the year. We anticipated this because we knew about the change that was coming on 1 April. So I don't want you to interpret that as a benefit versus our guidance. That's a benefit in the year-over-year calculation.

Rob: you essentially have those rebates go away and you recognize that that was part of our guidance, that was not a benefit versus our guidance, that's a benefit in the year-over-year. So if you look at

Rob: Scott guided to I think it was 32% erosion in the second quarter, which is lower, it was about 40% in the first quarter, so naturally you would wonder why would you have less erosion, where there was that year-over-year dynamic, but that was how we planned the year. We anticipated because we knew about the change that was coming in April 1st. So I don't want you to interpret that as a benefit versus our guidance, that's a benefit in the year-over-year calculation.

Rob: <unk> and the year over year calculation.

Liz Shea: Thanks, Steve. Operator, next question, please.

Liz Shea: Thanks Steve. Operator, next question please.

Operator: Yes. Our next question comes from Trung Huynh with UBS. Your line is open.

Operator: Yes, our next question comes from Trung Nguyen with UBS. Your line is open.

Operator: Hi, guys. Trung Huynh from UBS.

Trung Nguyen: Hi, guys, Trung Nguyen from UBS. Congratulations Rick on the next chapter of your life and Rob for moving AbbVie forward. Again on Biosimilar HUMIRA, in your remark you mentioned post the expected CVS contract there was a step up in price for HUMIRA, is that simply because you're giving away more price to CVS at the contract at the time? And you mentioned additional contracts moving to biosimilar like CVS this year, are there any meaningful contracts here that you can flag so we're not surprised and is it possible we could see actually a pricing increase by year end because of this? Thanks very much.

Roopal Thakkar: Congratulations, Rick, on the next chapter of your life and role for moving AbbVie forward. Again, on biosimilar Humira, in your remarks, you mentioned post the expected CVS contract, there was a step up in price for Humira. Is that simply because you were giving away more price for CVS at the contract at the time? And you mentioned additional contracts moving to biosimilar like CVS this year. Are there any meaningful contracts here that you can flag so we're not surprised? And is it possible we could see actually a pricing increase by year-end because of this? Thanks very much. Trung, this is Scott. I'll start with your question regarding the price benefit. So in my remarks, I indicated that with the formulary change in CVS and the volume step down we saw there, that there's a one-time price benefit associated with that.

Congratulations, Rick, on the next chapter of your life and role for moving AbbVie forward. Again, on biosimilar Humira, in your remarks, you mentioned post the expected CVS contract, there was a step up in price for Humira. Is that simply because you were giving away more price for CVS at the contract at the time? And you mentioned additional contracts moving to biosimilar like CVS this year. Are there any meaningful contracts here that you can flag so we're not surprised? And is it possible we could see actually a pricing increase by year-end because of this? Thanks very much.

Trung Chuong Huynh: Again on Biosimilar Humira in Euro amongst you mentioned post the expected Cvs contract that was a step up in price for Humira is that simply because youre, giving away more price to Cvs at the contract at the time.

Trung Chuong Huynh: And you mentioned additional contracts moving to Biosimilar like CBS. This year are there any meaningful contracts here that you can flag. So we're not surprised. Is it possible, we could see actually the pricing increase by year end because of this thanks very much.

Trung Chuong Huynh: Is it possible, we could see actually the pricing increase by year end because of this thanks very much.

Scott Reents: Trung, this is Scott. I'll start with your question regarding the price benefit. So in my remarks, I indicated that with the formulary change in CVS and the volume step down we saw there, that there's a one-time price benefit associated with that.

Trung Nguyen: Trung, this is Scott, I'll start with your question regarding the price benefit. So in my remarks, I indicated that with the formulary changes in CVS and the volume step down we saw there that there is a one time price benefit associated with that. And you can think of this as, as we have the the volume declines that volume had been associated with price that we would've been paying in terms of rebate that those rebates will no longer be paid, therefore, there]s a one time price benefit associated with that initial step down in the quarter, so that's what that relates to. Yeah and in terms of what we see going forward as I highlighted, we don't see a significant exclusionary action where HUMIRA would be removed from a formulary going forward. We did plan for obviously that smaller plans may make some adjustments to their formularies. That's all within the volume degradation and the pricing dynamics that we put into our guidance. And as I mentioned in one of the one of the comments,

Scott Reents: Trung, this is Scott, I'll start with your question regarding the price benefit. So in my remarks, I indicated that with the formulary changes in CVS and the volume step down we saw there that there is a one time price benefit associated with that. And you can think of this as, as we have the the volume declines that volume had been associated with price that we would've been paying in terms of rebate that those rebates will no longer be paid, therefore, there]s a one time price benefit associated with that initial step down in the quarter, so that's what that relates to.

Roopal Thakkar: And you can think of this as we have the volume declines, that volume had been associated with price that we would have been paying in terms of rebate. Those rebates will no longer be paid. Therefore, there's a one-time price benefit associated with that initial step down in the quarter. So that's what that relates to. Yeah. And in terms of what we see going forward, as I highlighted, we don't see a significant exclusionary action where Humira would be removed from a formulary going forward. We did plan for, obviously, that smaller plans may make some adjustments to their formularies. That's all within the volume degradation and the pricing dynamics that we put into our guidance.

And you can think of this as we have the volume declines, that volume had been associated with price that we would have been paying in terms of rebate. Those rebates will no longer be paid. Therefore, there's a one-time price benefit associated with that initial step down in the quarter. So that's what that relates to. Yeah. And in terms of what we see going forward, as I highlighted, we don't see a significant exclusionary action where Humira would be removed from a formulary going forward. We did plan for, obviously, that smaller plans may make some adjustments to their formularies. That's all within the volume degradation and the pricing dynamics that we put into our guidance.

Scott: As we have the the volume declines that volume had been associated with price that we would've been paying in terms of rebate that those rebates will no longer be paid therefore, theres a onetime price benefit associated with that initial step down in the quarter. So that's what that relates to. Yeah and in terms of what we see going forward as I as I highlighted we don't see a significant exclusionary action, where humira would be removed from a formulary going forward.

Speaker Change: Yeah and in terms of what we see going forward as I as I highlighted we don't see a significant exclusionary action, where humira would be removed from a formulary going forward.

Robert A. Michael: Yeah and in terms of what we see going forward as I highlighted, we don't see a significant exclusionary action where HUMIRA would be removed from a formulary going forward. We did plan for obviously that smaller plans may make some adjustments to their formularies. That's all within the volume degradation and the pricing dynamics that we put into our guidance. And as I mentioned in one of the one of the comments, some of the payers, not super large would maybe consider this idea of starting new patients on the biosimilars versus maintaining all the existing patients on HUMIRA. So if you were to see that, you shouldn't be surprised about that and that would be within the contemplated approaches that we're taking as we look across '24 with our knowledge of what's happening in the marketplace.

Speaker Change: We did plan for obviously that smaller plans may make some adjustments to their formularies. That's all within the the volume degradation in the pricing dynamics that we put into our guidance and as I mentioned in one of the one of the comments.

Roopal Thakkar: And as I mentioned in one of the comments, some of the payers, not super large, would maybe consider this idea of starting new patients on the biosimilars versus maintaining all the existing patients on Humira. So if you were to see that, you shouldn't be surprised about that. And that would be within the contemplated approaches that we're taking as we look across Q2 2024 with our knowledge of what's happening in the marketplace. Thanks, Trung. Operator, we have time for one final question. Okay. And our final question comes from Evan Seigerman with BMO Capital Markets. Your line is open. Hi guys. Thank you so much for taking my question. On the aesthetics business, maybe talk to me about some of the dynamics you're seeing in China. I know that there's a lot of macro headwinds, and this is a pretty big part of your business.

And as I mentioned in one of the comments, some of the payers, not super large, would maybe consider this idea of starting new patients on the biosimilars versus maintaining all the existing patients on Humira. So if you were to see that, you shouldn't be surprised about that. And that would be within the contemplated approaches that we're taking as we look across Q2 2024 with our knowledge of what's happening in the marketplace.

Speaker Change: some of the payers, not super large would maybe consider this idea of starting new patients on the biosimilars versus maintaining all the existing patients on HUMIRA. So if you were to see that, you shouldn't be surprised about that and that would be within the contemplated approaches that we're taking as we look across '24 with our knowledge of what's happening in the marketplace.

Speaker Change: Not not Super large would maybe consider this idea of starting new patients on the biosimilars versus maintaining all the existing patients on humira. So if you were to see that. You shouldnt be surprised about that and that would be within the contemplated or approaches that we're taking as we look across 24 with our knowledge of what's happening in the marketplace.

Speaker Change: So if you were to see that. You shouldnt be surprised about that and that would be within the contemplated or approaches that we're taking as we look across 24 with our knowledge of what's happening in the marketplace.

Speaker Change: You shouldnt be surprised about that and that would be within the contemplated or approaches that we're taking as we look across 24 with our knowledge of what's happening in the marketplace.

Liz Shea: Thanks, Trung. Operator, we have time for one final question.

Liz Shea: Thanks Trung. Operator, we have time for one final question.

Speaker Change: Operator, we have time for one final question.

Operator: Okay. And our final question comes from Evan Seigerman with BMO Capital Markets. Your line is open.

Operator: Okay and our final question comes from Evan Seigerman with BMO Capital Markets. Your line is open.

Operator: Hi guys. Thank you so much for taking my question. On the aesthetics business, maybe talk to me about some of the dynamics you're seeing in China. I know that there's a lot of macro headwinds, and this is a pretty big part of your business.

Evan Seigerman: Hi guys. Thank you so much for taking my question. On the aesthetics business, maybe talk about some of the dynamics you're seeing in China. I know that there's a lot of macro headwinds in this and this is a pretty big part of your business. And then a bit of housekeeping on SKYRIZZI, last quarter you disclosed the $1.9 billion dollar cash payment for royalties, can you provide us any color on what this quarter's royal was? I believe that was for the full year last year, but maybe just for this quarter. Thank you.

Roopal Thakkar: Then a bit of housekeeping on Skyrizi: last quarter, you disclosed a $1.9 billion cash payment for royalties. Can you provide us any color on what this quarter's royalty was? And I believe that was for the full year last year, but maybe just for this quarter. Thank you. Hi. This is Carrie. I'll address your question on aesthetics in China. And we do expect economic headwinds that we're seeing in China to persist over the near term, with the China aesthetics market flat overall for 2024. So the way to think about it is to expect negative market until the recovery starts to begin in the second half of 2024. China does remain a very important market for our aesthetics business.

Then a bit of housekeeping on Skyrizi: last quarter, you disclosed a $1.9 billion cash payment for royalties. Can you provide us any color on what this quarter's royalty was? And I believe that was for the full year last year, but maybe just for this quarter. Thank you.

Speaker Change: He was I believe that was for the full year last year, but maybe just for this quarter. Thank you.

Carrie Strom: Hi. This is Carrie. I'll address your question on aesthetics in China. And we do expect economic headwinds that we're seeing in China to persist over the near term, with the China aesthetics market flat overall for 2024. So the way to think about it is to expect negative market until the recovery starts to begin in the second half of 2024. China does remain a very important market for our aesthetics business.

Carrie Strom: Hi, this is Carrie, I'll address your question on the aesthetics in China. We do expect economic headwinds that we're seeing in China to persist over the near term with the China aesthetics market flat overall for 2024. So the way to think about it is to expect negative market until the recovery starts to begin in the second half of 2024. China does remain a very important market for our aesthetics business and as the market there starts to recover, we will continue to invest in consumer activation, injector training and continue to launch new products in this important market.

Gary Jay Nachman: So the way to think about it is to expect negative market until the recovery starts to begin in the second. 24. Does remain a very important market for aesthetics business and as the market. There starts to recover we will continue to invest and consumer activation injector training and continued to launch new products in this important market.

Gary Jay Nachman: 24. Does remain a very important market for aesthetics business and as the market. There starts to recover we will continue to invest and consumer activation injector training and continued to launch new products in this important market.

Gary Jay Nachman: Does remain a very important market for aesthetics business and as the market. There starts to recover we will continue to invest and consumer activation injector training and continued to launch new products in this important market.

Roopal Thakkar: And as the market there starts to recover, we will continue to invest in consumer activation, injector training, and continue to launch new products in this important market. Hi. It's Scott. So you're right. With respect to the Skyrizi royalty payments, so you have to remember that these are on a bit of a lag, so they don't track each quarter sales. But the $400 million was the amount in the first quarter that we paid in cash payment. Well, thanks, Evan. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us. Thank you. That concludes today's conference. You may all disconnect at this time. Good morning, and thank you for standing by. Welcome to the AbbVie First Quarter 2024 earnings conference call.

And as the market there starts to recover, we will continue to invest in consumer activation, injector training, and continue to launch new products in this important market.

Scott Reents: Hi. It's Scott. So you're right. With respect to the Skyrizi royalty payments, so you have to remember that these are on a bit of a lag, so they don't track each quarter sales. But the $400 million was the amount in the first quarter that we paid in cash payment.

Scott Reents: Hi, it's Scott. So you're right, with respect to the SKYRIZZI relative payments, you have to remember that these are on a bit of a lag so they don't track each with each quarter sales, but the $400 million was the amount in the first quarter that we paid in cash payments.

Liz Shea: Well, thanks, Evan. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.

Gary Jay Nachman: Yeah.

Liz Shea: Well, thanks Evan. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.

Operator: Thank you. That concludes today's conference. You may all disconnect at this time. Good morning, and thank you for standing by. Welcome to the AbbVie First Quarter 2024 earnings conference call.

Operator: Thank you. That concludes today's conference, you may all disconnect at this time.

Speaker Change: Yes. Yes. President Global allergy anesthetics, and ruble Becker Senior Vice President Chief Medical Officer Global Therapeutics joined. Following our prepared remarks, we'll take your questions so with that I'll turn the call over to Rick. Thank you Liz good morning, everyone and thank you for joining us today. Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Speaker Change: Yes. President Global allergy anesthetics, and ruble Becker Senior Vice President Chief Medical Officer Global Therapeutics joined. Following our prepared remarks, we'll take your questions so with that I'll turn the call over to Rick. Thank you Liz good morning, everyone and thank you for joining us today. Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Speaker Change: Yes. [music]. [music]. [music]. Good morning, and thank you for standing by and welcome to the Abbvie first quarter 2024 earnings Conference call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question. We are pressing star one on your phone today's call is also being recorded if you have any objections you may disconnect at this time. I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations. Amy you may begin. Good morning, and thanks for joining US also on the call with me today are Rick in Dallas, Chairman of the Board and Chief Executive Officer, Rob, Michael President and Chief Operating Officer, Jeff Stuart Executive Vice President Chief Commercial Officer, Scott <unk> Executive Vice President and Chief Financial Officer, Carrie Strom Senior Vice President Abby and.

Speaker Change: [music]. [music]. [music]. Good morning, and thank you for standing by and welcome to the Abbvie first quarter 2024 earnings Conference call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question. We are pressing star one on your phone today's call is also being recorded if you have any objections you may disconnect at this time. I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations.

Speaker Change: [music]. [music]. Good morning, and thank you for standing by and welcome to the Abbvie first quarter 2024 earnings Conference call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question. We are pressing star one on your phone today's call is also being recorded if you have any objections you may disconnect at this time. I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations.

Speaker Change: [music]. Good morning, and thank you for standing by and welcome to the Abbvie first quarter 2024 earnings Conference call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question. We are pressing star one on your phone today's call is also being recorded if you have any objections you may disconnect at this time. I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations.

Good morning, and thank you for standing by and welcome to the Abbvie first quarter 2024 earnings Conference call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question. We are pressing star one on your phone today's call is also being recorded if you have any objections you may disconnect at this time. I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations.

Roopal Thakkar: All participants will be able to listen only into the question-and-answer portion of this call. You may ask a question by pressing star one on your phone. Today's call is also being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce Ms. Liz Shea, Senior Vice President of Investor Relations. Ma'am, you may begin. Good morning, and thanks for joining us. Also in the call with me today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer, Rob Michael, President and Chief Operating Officer, Jeff Stewart, Executive Vice President, Chief Commercial Officer, Scott Reents, Executive Vice President, Chief Financial Officer, Carrie Strom, Senior Vice President, AbbVie, and President, Global Allergan Aesthetics, and Roopal Thakkar, Senior Vice President, Chief Medical Officer, Global Therapeutics.

Operator: All participants will be able to listen only into the question-and-answer portion of this call. You may ask a question by pressing star one on your phone. Today's call is also being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce Ms. Liz Shea, Senior Vice President of Investor Relations. Ma'am, you may begin.

Speaker Change: I'd now like to introduce MS. Liz Shea senior Vice President of Investor Relations.

Roopal Thakkar: Good morning, and thanks for joining us. Also in the call with me today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer, Rob Michael, President and Chief Operating Officer, Jeff Stewart, Executive Vice President, Chief Commercial Officer, Scott Reents, Executive Vice President, Chief Financial Officer, Carrie Strom, Senior Vice President, AbbVie, and President, Global Allergan Aesthetics, and Roopal Thakkar, Senior Vice President, Chief Medical Officer, Global Therapeutics.

Liz Shea: Amy you may begin. Good morning, and thanks for joining US also on the call with me today are Rick in Dallas, Chairman of the Board and Chief Executive Officer, Rob, Michael President and Chief Operating Officer, Jeff Stuart Executive Vice President Chief Commercial Officer, Scott <unk> Executive Vice President and Chief Financial Officer, Carrie Strom Senior Vice President Abby and.

Liz Shea: Good morning, and thanks for joining US also on the call with me today are Rick in Dallas, Chairman of the Board and Chief Executive Officer, Rob, Michael President and Chief Operating Officer, Jeff Stuart Executive Vice President Chief Commercial Officer, Scott <unk> Executive Vice President and Chief Financial Officer, Carrie Strom Senior Vice President Abby and.

Liz Shea: President Global allergy anesthetics, and ruble Becker Senior Vice President Chief Medical Officer Global Therapeutics joined. Following our prepared remarks, we'll take your questions so with that I'll turn the call over to Rick. Thank you Liz good morning, everyone and thank you for joining us today. Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Roopal Thakkar: Joining us for the Q&A portion of the call is Tom Hudson, Senior Vice President, Chief Scientific Officer, Global Research. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in our forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and our regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions.

Joining us for the Q&A portion of the call is Tom Hudson, Senior Vice President, Chief Scientific Officer, Global Research. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in our forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and our regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions.

Liz Shea: Joining us for the Q&A portion of the call is Tom Hudson Senior Vice President Chief Scientific Officer Global Research before we get started I'll note that some statements. We make today may be considered forward looking statements based on our current expectations Abbvie cautions that these forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in our forward looking. Statements additional information about these risks and uncertainties is included in our SEC filings Abbvie undertakes no obligation to update these forward looking statements except as required by law on today's conference call non-GAAP financial measures will be used to help investors understand abbvie business performance. These non-GAAP financial measures are reconciled with comparable GAAP. Financial measures in our earnings release, and our regulatory filings from today, which can be found on our website.

Tom Hudson: Statements additional information about these risks and uncertainties is included in our SEC filings Abbvie undertakes no obligation to update these forward looking statements except as required by law on today's conference call non-GAAP financial measures will be used to help investors understand abbvie business performance. These non-GAAP financial measures are reconciled with comparable GAAP. Financial measures in our earnings release, and our regulatory filings from today, which can be found on our website.

Tom Hudson: Financial measures in our earnings release, and our regulatory filings from today, which can be found on our website.

Tom Hudson: Following our prepared remarks, we'll take your questions so with that I'll turn the call over to Rick. Thank you Liz good morning, everyone and thank you for joining us today. Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Roopal Thakkar: So with that, I'll turn the call over to Rick. Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'm extremely pleased with our start to 2024, with first-quarter results exceeding our expectations. Before we discuss our performance in more detail, I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as AbbVie's first CEO, I have decided to retire from the role effective 1 July 2024 and will continue to serve AbbVie as Executive Chairman of the Board. As you've heard me say before, it is important that we choose the right time to make this critical leadership transition.

So with that, I'll turn the call over to Rick.

Rick: Thank you Liz good morning, everyone and thank you for joining us today. Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Rick: I'm extremely pleased with our start to 2024 with first quarter results exceeding our expectations. Before we discuss our performance in more detail I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as Abbvie for CEO I have decided to retire from the role effective July one of this year and we will continue to serve Abbvie as executive chairman of the board. As you've heard me say before it is important that we choose the right time to make this critical leadership transition. Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Rick: Before we discuss our performance in more detail I'd like to share my perspective on the planned CEO transition that was announced earlier this year. After serving more than 11 years as Abbvie for CEO I have decided to retire from the role effective July one of this year and we will continue to serve Abbvie as executive chairman of the board. As you've heard me say before it is important that we choose the right time to make this critical leadership transition. Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Speaker Change: After serving more than 11 years as Abbvie for CEO I have decided to retire from the role effective July one of this year and we will continue to serve Abbvie as executive chairman of the board. As you've heard me say before it is important that we choose the right time to make this critical leadership transition. Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Speaker Change: As you've heard me say before it is important that we choose the right time to make this critical leadership transition. Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Roopal Thakkar: The Board and I have been long planning for my eventual succession, and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira US loss of exclusivity. We have built an outstanding company culture, an important priority, and competitive advantage, and our productive R&D engine, which has yielded numerous innovative new medicines for patients, will continue to fuel our robust pipeline.

Speaker Change: Gordon I haven't been long planning for my eventual succession and now is the opportune time to move forward with the transition as our business is performing very well and is in a strong position for the long term. We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Speaker Change: We are successfully navigating the Humira U S loss of exclusivity. We have built an outstanding company and culture and important priority and competitive advantage.

Speaker Change: We have built an outstanding company and culture and important priority and competitive advantage.

Our productive R&D engine, which has yielded numerous innovative new medicines for patients we will continue to fuel a robust pipeline.

Q1 2024 AbbVie Inc Earnings Call

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