Q2 2025 AbbVie Inc Earnings Call

July 31, 2025

You May ask a question by pressing star one on your phone.

This 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 Investor Relations Ma'am you may begin.

Thank you good morning, and thanks for joining US also on the call with me today are Rob Michael Chairman and Chief Executive Officer, Jeff Stuart Executive Vice President and Chief Commercial Officer Group of Soccer Executive Vice President Research and development, Chief Scientific Officer, and Scott <unk> Executive Vice President Chief Financial Officer 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.

Asian to update these forward looking statements, except as required by law on today's conference call non-GAAP financial financial measures will be used to help investors understand how these business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and 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 Rob.

Thank you Liz good morning, everyone and thank you for joining us Abbvie delivered another outstanding quarter with results exceeding our expectations, we are making excellent progress advancing our pipeline and adding more depth through strategic transactions that support our long term growth.

Turning to our second quarter performance, we delivered adjusted earnings per share of $2 and 97.

Which is <unk> <unk> above our guidance midpoint.

Total net revenues were $15 4 billion.

More than $400 million ahead of our expectations.

This over achievement includes sales growth of 22% from our ex Humira platform with continued robust performance from Sky, Rosie and <unk>, which are now on pace to deliver more than $25 billion in combined sales this year well above our initial <unk>.

Expectations we.

We also delivered strong double digit growth from neuroscience, driven by <unk>, viola and our leading migraine portfolio.

Based on our momentum through the first half of the year, we are raising guidance for the second time, we now expect full year revenue of 65 billion.

An increase of 800 million, we have now raised our revenue guidance by one 5 billion since the start of the year.

We are also raising our full year adjusted earnings per share guidance by <unk> <unk>.

And now expect adjusted EPS between $11 88 and.

And $12 eight.

In addition to our strong financial results, we are making great progress with our R&D pipeline across all stages of development. Notable highlights from our late stage programs include the recent approvals of <unk> for non squamous non small cell lung cancer and <unk>.

<unk> for <unk>.

The regulatory submission of <unk> E. A first in class short acting toxin and aesthetics as well as highly differentiated phase III results in alopecia or you're out of a potential 10th indication for <unk> in the U S.

We are also focused on augmenting our pipeline with therapies and platform technologies that have the potential to elevate the standard of care for patients.

These include promising early stage programs that have the potential to drive growth for Abbvie in the next decade.

We have executed more than 30 business development transactions since the beginning of last year.

Our recent activity includes closing the agreement with <unk> for a long acting amylin analogue in the treatment of obesity as well as announcing our planned acquisition of cap stand therapeutics, giving us an in vivo car T platform that can further strengthen our immunology pipeline.

We also in licensed ISP 2001, a novel try specific antibody for multiple myeloma, and we announced the collaboration with <unk> to develop next generation S. RNA therapies across multiple disease areas, including immunology neuroscience and oncology.

Apology.

In summary, I'm very pleased with the performance of our business and the progress we are making against our long term strategy.

<unk> outlook is strong and we are well positioned to deliver on our commitments in 2025 and beyond 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 more than seven 6 billion.

Scott really continues to demonstrate impressive growth global sales were $4 4 billion up 61, 8% on an operational basis.

We continue to capture robust in play patient share in Psoriatic disease in the U S. This includes clear leadership in psoriasis across all lines of therapy versus both biologics and oral agent.

As well as continued strong performance in the PSA derm setting with frontline in play share leadership more than double the next closest biologic oral therapy.

Liz Shea: Start with the quarterly results for immunology, which delivered total revenues of more than $7.6 billion. Skyrizi continues to demonstrate impressive growth. Global sales were $4.4 billion, up 61.8% on an operational basis. We continue to capture robust in-play patient share in psoriatic disease. In the US, this includes clear leadership in psoriasis across all lines of therapy versus both biologics and oral agents, as well as continued strong performance in the PSA derm setting, with frontline in-play share leadership more than double the next closest biologic or oral therapy. Globally, Skyrizi continues to grow and achieve total psoriatic disease market leadership in numerous major markets around the world. I'm also very pleased with Skyrizi's performance in IBD, where we are on track to double our sales this year.

Total revenues of more than $7 $6 billion Sky really continues to demonstrate impressive growth global sales were $4 4 billion up 61, 8% on an operational basis.

Globally <unk> continues to grow and achieve total psoriatic disease market leadership and numerous major markets around the world.

I'm also very pleased with <unk> performance in IBD, where we are on track to double our sales. This year in the U S. We continue to capture more than a third of newer switching patients in crohn's disease and.

We continue to capture robust in play patient share in Psoriatic disease.

In the U S. This includes clear leadership in psoriasis across all lines of therapy versus both biologics and oral agent.

Nearly 20% of newer switching patients in ulcerative colitis.

As well as continued strong performance in the PSA derm setting with frontline in play share leadership more than double the next closest biologic oral therapy.

As we look ahead, we feel very confident in <unk> profile, including compelling efficacy safety and dosing in our very robust head to head program, where we have demonstrated superiority and clear differentiation against multiple novel therapies sets a high bar for comparison.

Globally <unk> continues to grow and achieve total psoriatic disease market leadership and numerous major markets around the world.

So as we do compare our current dynamic shared a total prescription share. It's clear there is still a substantial opportunity for continued total share gain across all our sky Sky <unk> indications over time, especially in ulcerative colitis, and Crohn's disease, which are still earlier in their launch trajectory.

Liz Shea: In the US, we continue to capture more than a third of new or switching patients in Crohn's disease and nearly 20% of new or switching patients in ulcerative colitis. As we look ahead, we feel very confident in Skyrizi's profile, including compelling efficacy, safety, and dosing, and our very robust head-to-head program, where we have demonstrated superiority and clear differentiation against multiple novel therapies, sets a high bar for comparison. So as we do compare our current dynamic share to total prescription share, it's clear there is still a substantial opportunity for continued total share gain across all of Skyrizi's indications over time, especially in ulcerative colitis and Crohn's disease, which are still earlier in their launch trajectory. Turning now to Rinvoq, which is also demonstrating outstanding growth.

Turning now to RIN book, which is also demonstrating outstanding growth.

Mobile sales were $2 billion up 41, 2% on an operational basis as we continue to see nice momentum across all of <unk> indications.

Uptake in IBD continues to be very strong in the U S were invoked in play patient share across all lines of therapy for both ulcerative colitis and Crohn's disease.

So as we do compare our current dynamic shared a total prescription share. It's clear there is still a substantial opportunity for continued total share gain across all of <unk> indications over time, especially in ulcerative colitis, and Crohn's disease, which are still earlier in their launch trajectory.

Only <unk> among branded medicines.

So as a portfolio <unk> together are capturing one out of every two in play Crohn's disease patients and one out of every three in play UC patients in the U S. A very strong combined leadership position in gastroenterology for Abbvie.

Turning now to RIN book, which is also demonstrating outstanding growth global sales were $2 billion up 41, 2% on an operational basis as we continue to see nice momentum across all of <unk> indications uptake.

Liz Shea: Global sales were $2 billion, up 41.2% on an operational basis, as we continue to see nice momentum across all of Rinvoq's indications. Uptake in IBD continues to be very strong. In the US, Rinvoq's in-play patient share across all lines of therapy for both ulcerative colitis and Crohn's disease is second only to Skyrizi among branded medicines. So as a portfolio, Rinvoq and Skyrizi together are capturing one out of every two in-play Crohn's disease patients and one out of every three in-play UC patients in the US, a very strong combined leadership position in gastroenterology for AbbVie. I'd also highlight that we are making excellent progress with Rinvoq's global launch in giant cell arteritis, our sixth indication in rheumatology. Initial prescription trends, as well as feedback from rheumatologists, have been positive, with access in the US expected to ram quickly over the rest of the year.

I would also highlight that we are making excellent progress with <unk> global launch in giant cell arteritis or six indications in rheumatology.

Uptake in IBD continues to be very strong in the U S. <unk> in play patient share across all lines of therapy for both ulcerative colitis and Crohn's disease is second only to sky rizzi among branded medicines.

Initial prescription trends as well as feedback from Rheumatologists has been positive with access in the U S expected to ramp quickly over the rest of the year.

Finally, we announced impressive phase III results in alopecia, areata and chronic autoimmune disease, leading to unpredictable hair loss with nearly 2 million diagnosed patients globally.

As a portfolio <unk> together are capturing one out of every two in play Crohn's disease patients and one out of every three in plate UC patients in the U S. A very strong combined leadership position in gastroenterology for Abbvie.

<unk> as well as the next wave of diseases, including Vitiligo, Hs and lupus would expand <unk> treatment in both dermatology and rheumatology areas, where we already have very strong call points with <unk> core indications.

I would also highlight that we are making excellent progress with <unk> global launch in giant cell arteritis or six indications in rheumatology initial prescription trends as well as feedback from Rheumatologists has been positive with access in the U S expected to ramp quickly over the rest of the year.

Turning now to Humira, which delivered global sales of more than $1 1 billion down 58, 2% on an operational basis, reflecting biosimilar competition.

Liz Shea: Finally, we announced impressive phase three results in alopecia areata, a chronic autoimmune disease leading to unpredictable hair loss with nearly 2 million diagnosed patients globally. Alopecia areata, as well as the next wave of diseases, including vitiligo, HS, and lupus, would expand Rinvoq's treatment in both dermatology and rheumatology, areas where we already have very strong call points with Rinvoq's core indications. Turning now to Humira, which delivered global sales of more than $1.1 billion, down 58.2% on an operational basis, reflecting biosimilar competition. We anticipate Humira access in the US will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients. Moving to oncology, which delivered total revenues of nearly $1.7 billion, Imbruvica global sales were $754 million, down 9.5%, reflecting continued competitive dynamics in CLL, partially offset by higher persistency rates for existing patients.

Finally, we announced impressive phase III results in alopecia, areata and chronic autoimmune disease, leading to unpredictable hair loss with nearly 2 million diagnosed patients globally.

We anticipate humira access in the U S. We will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients.

Moving to oncology, which delivered total revenues of nearly $1 7 billion and <unk> global sales were $754 million down nine 5%, reflecting continued competitive dynamics in CLO, partially offset by higher persistency rates for existing patients.

Turning now to Humira, which delivered global sales of more than $1 1 billion down 58, 2% on an operational basis, reflecting biosimilar competition.

<unk> global revenues were $691 million up eight 3% on an operational basis. This reflects strong demand in CML with combination use event cluster plus PTK inhibitors emerging as a preferred fixed duration treatment.

We anticipate humira access in the U S will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients.

We are also seeing nice momentum from Ella here and are keenly with both delivering double digit revenue growth.

Moving to oncology, which delivered total revenues of nearly $1 7 billion.

<unk> global sales were $754 million down nine 5%, reflecting continued competitive dynamics in CLO, partially offset by higher persistency rates for existing patients.

And we are early in the U S launch of <unk>, our newest ADC for previously treated non squamous non small cell lung cancer patients.

This commercialization will help to establish C met expression as a valid biomarker and non small cell lung cancer and also build abbey's presence more broadly in solid tumors, where we have several promising next generation adcs in development, including T map, which shares the same C met target.

Liz Shea: Venclexta global revenues were $691 million, up 8.3% on an operational basis. This reflects strong demand in CLL with combination use of Venclexta plus BTK inhibitors emerging as a preferred fixed duration treatment. We are also seeing nice momentum from Elahir and Abkhinli, with both delivering double-digit revenue growth. And we are early in the US launch of Imrelis, our newest ADC for previously treated non-squamous, non-small cell lung cancer patients. This commercialization will help to establish CMET expression as a valid biomarker in non-small cell lung cancer and also build AbbVie's presence more broadly in solid tumors, where we have several promising next-generation ADCs in development, including TMabA, which shares the same CMET target. Turning now to aesthetics, which delivered global sales of nearly $1.3 billion, down 8% on an operational basis.

Ben cluster global revenues were $691 million up eight 3% on an operational basis. This reflects strong demand in CLO with combination use of Ben cluster, plus PTK inhibitors emerging as a preferred fixed duration treatment.

We are also seeing nice momentum from Ella here and are keenly with both delivering double digit revenue growth.

Turning now to aesthetics, which delivered global sales of nearly $1 3 billion down 8% on an operational basis.

And we are early in the U S launch of <unk>, our newest ADC for previously treated non squamous non small cell lung cancer patients.

Botox cosmetic global revenues were $692 million and Jupiter global sales were $260 million with growth rates for both products down on an operational basis.

Consistent with the past few quarters economic challenges and lower overall consumer sentiment has impacted the aesthetics market, which continues to perform below historical levels.

As noted on the first quarter call, we moderated our assumptions for near term category growth globally, which is tracking largely in line with our expectations.

Okay.

Turning now to aesthetics, which delivered global sales of nearly $1 3 billion down 8% on an operational basis.

From a competitive perspective, our facial injectable portfolio remains the clear leader with strong market shares globally.

Liz Shea: Botox cosmetic global revenues were $692 million, and Juvederm global sales were $260 million, with growth rates for both products down on an operational basis. Consistent with the past few quarters, economic challenges and lower overall consumer sentiment have impacted the aesthetics market, which continues to perform below historical levels. As noted on the first quarter call, we moderated our assumptions for near-term category growth globally, which is tracking largely in line with our expectations. From a competitive perspective, our facial injectable portfolio remains the clear leader with strong market shares globally. Our progress with the Ally loyalty program is going well, and we have robust plans underway to support patient activation. This includes a new Botox consumer campaign in the US with ramping second-half investment, continued injector training globally, and bringing new products to market like Trinobot-E, our fast-acting short-duration toxin, with commercialization expected next year.

Botox cosmetic global revenues were $692 million and Jupiter global sales were $260 million with growth rates for both products down on an operational basis.

Our progress with the loyalty program is going well and we have robust plans underway to support patient activation. This.

This includes a new botox consumer campaign in the U S with ramping second half investment continued injector training globally, and bringing new products to market like trend about E. Our fast acting short duration toxin with commercialization expected next year.

Consistent with the past few quarters economic challenges and lower overall consumer sentiment has impacted the aesthetics market, which continues to perform below historical levels.

As noted on the first quarter call, we moderated our assumptions for near term category growth globally, which is tracking largely in line with our expectations.

So as economic conditions improve from current levels, we remained very well positioned for growth over the long term and the aesthetics category.

From a competitive perspective, our facial injectable portfolio remains the clear leader with strong market shares globally.

Moving now to neuroscience, our second largest therapeutic area, where we continue to demonstrate robust growth.

Our progress with the Alley loyalty program is going well and we have robust plans underway to support patient activation. This.

Total revenues were approximately $2 7 billion up 24% on an operational basis. This exceptional performance is driven by continued double digit operational growth of railcar with global sales of $900 million up 16, 3% botox therapeutic with global revenue.

Liz Shea: So as economic conditions improve from current levels, we remained very well positioned for growth over the long term in the aesthetics category. Moving now to neuroscience, our second largest therapeutic area, where we continue to demonstrate robust growth. Total revenues were approximately $2.7 billion, up 24% on an operational basis. This exceptional performance is driven by continued double-digit operational growth of Relar, with global sales of $900 million, up 16.3%; Botox Therapeutic, with global revenues of $928 million, up 14.2%; Ubrelvy, with global sales of $338 million, up 47.2%; and Qulipta, with global revenues of $267 million, up 76.9%. Importantly, we recently announced positive results from the head-to-head Temple study comparing Qulipta to topiramate for migraine prevention. Temple demonstrated that Qulipta had fewer treatment discontinuations attributed to adverse events, as well as a significant reduction in migraine days versus topiramate.

So as economic conditions improve from current levels, we remained very well positioned for growth over the long term and the aesthetics category.

As of $928 million up 14, 2%.

<unk> with global sales of $338 million up 47, 2% and Q Liptak with global revenues of $267 million up 76, 9%.

Moving now to neuroscience, our second largest therapeutic area, where we continue to demonstrate robust growth.

Importantly, we recently announced positive results from the head to head Temple study comparing Q Liptak Topiramate for migraine prevention.

Temple demonstrated that can lift it had fewer treatment discontinuation attributed to adverse events as well as a significant reduction in migraine days versus topiramate given.

As of $928 million up 14, 2%.

Given the high use of Topiramate as a frontline treatment for migraine prevention. We anticipate these strong results will support earlier adoption of <unk>.

You Barelvi with global sales of $338 million up 47, 2%.

<unk> Liptak with global revenues of $267 million up 76, 9%.

Moving to Parkinson's disease, I'm very pleased with the performance of <unk>, where the global launch is off to an excellent start total sales were $98 million up 56% on a sequential basis.

Importantly, we recently announced positive results from the head to head Temple study comparing Q Lipton Topiramate for migraine prevention.

Feedback from movement disorder specialists has been overwhelmingly positive with uptake across the international markets exceeding our expectations.

Temple demonstrated that <unk> had fewer treatment discontinuation attributed to adverse events as well as a significant reduction in migraine days versus topiramate.

Looking forward, we believe our emerging Parkinson's disease portfolio with Biolab, two adult and <unk> forthcoming has the collective potential to be a multibillion dollar opportunity over the long term.

Liz Shea: Given the high use of topiramate as a frontline treatment for migraine prevention, we anticipate these strong results will support earlier adoption of Qulipta. Moving to Parkinson's disease, I'm very pleased with the performance of Violev, where the global launch is off to an excellent start. Total sales were $98 million, up 56% on a sequential basis. Feedback from movement disorder specialists has been overwhelmingly positive, with uptake across the international markets exceeding our expectations. Looking forward, we believe our emerging Parkinson's disease portfolio, with Violev, Duodopa, and Tavafodon forthcoming, has the collective potential to be a multibillion-dollar opportunity over the long term. So overall, I'm very pleased with the execution and continued strong performance across our commercial portfolio. And with that, I'll turn the call over to Rupal for comments on our R&D highlights. Rupal?

Given the high use of Topiramate as a frontline treatment for migraine prevention. We anticipate these strong results will support earlier adoption of <unk>.

Moving to Parkinson's disease, I'm very pleased with the performance of <unk>, where the global launch is off to an excellent start total sales were $98 million up 56% on a sequential basis.

So overall I'm very pleased with the execution and continued strong performance across our commercial portfolio and with that I'll turn the call over to ruble for comments on our R&D highlights ruble.

Feedback from movement disorder specialists has been overwhelmingly positive with uptake across the international markets exceeding our expectations.

Thank you Jeff.

Turning with immunology, where we continue to make meaningful progress advancing our pipeline with several regulatory and clinical milestones since the last earnings call.

FDA approval was granted for Rainbow in GTA, representing our sixth rheumatology indication. Additionally, topline data from the first phase III Ringbolt Alopecia Areata trial were just announced.

And the study Ringbolt met the primary and key secondary endpoints, demonstrating a statistically significant improvement in hair regrowth across both doses compared to placebo.

Rob Michael: Thank you, Jeff. Starting with immunology, where we continue to make meaningful progress advancing our pipeline, with several regulatory and clinical milestones since the last earnings call. FDA approval was granted for Rinvoq in GCA, representing our sixth rheumatology indication. Additionally, top-line data from the first phase three Rinvoq alopecia areata trial were just announced. In the study, Rinvoq met the primary and key secondary endpoints, demonstrating a statistically significant improvement in hair regrowth across both Rinvoq doses compared to placebo. Baseline scalp coverage prior to treatment was approximately 16%. In the Rinvoq 30 milligram group, 54% of patients reached 80% or more scalp hair coverage, and 47% reached 90% or more coverage at 24 weeks. A robust effect was also demonstrated with Rinvoq 15 milligrams. These are truly transformative results and compare very favorably to the efficacy shown in pivotal trials for other JAK inhibitors.

Thank you Jeff.

Starting with immunology, where we continue to make meaningful progress advancing our pipeline with several regulatory and clinical milestones since the last earnings call.

Baseline scalp coverage prior to treatment was approximately 16% in the Ringbark 30 milligram group, 54% of patients reached 80% or more scale here coverage and 47% reached 90% or more coverage at 20.

Approval was granted for Rainbow in GTA, representing our sixth rheumatology indication. Additionally, topline data from the first phase III Ringbark Alopecia Areata trial were just announced.

Four weeks a robust effect was also demonstrated with <unk> 15 milligrams.

In this study <unk> met the primary and key secondary endpoints, demonstrating a statistically significant improvement in hair regrowth across both rainbow doses compared to placebo.

These are truly transformative results and compare very favorably to the efficacy of <unk> and pivotal trials for other JAK inhibitors.

The placebo adjusted Salt 20, and 10 scores for invoke 30 milligrams, where approximately 20 percentage points above the rates for the highest approved doses other JAK inhibitors.

Baseline scalp coverage prior to treatment was approximately 16% in the Rainbow 30 milligram group, 54% of patients reached at 80% or more scale here coverage and 47% reached 90% or more coverage at 24.

For the <unk> 15 milligram group rates were approximately 10 points above.

We are very pleased with these results, which certainly surpassed our expectations.

Weeks, a robust effect was also demonstrated with <unk> 15 milligrams.

Results from a second phase III alopecia Areata study are anticipated in the third quarter, followed by regulatory submissions starting later this year.

These are truly transformative results and compare very favorably to the efficacy.

Pivotal trials for other JAK inhibitors.

The vitiligo program for bring broke is also nearing completion with top line results from Phase III studies expected later this year.

Rob Michael: The placebo-adjusted SALT20 and 10 scores for Rinvoq 30 milligrams were approximately 20 percentage points above the rates for the highest approved doses of other JAK inhibitors. For the Rinvoq 15 milligram group, rates were approximately 10 points above. We are very pleased with these results, which certainly surpassed our expectations. Results from a second phase three alopecia areata study are anticipated in the third quarter, followed by regulatory submissions starting later this year. The vitiligo program for Rinvoq is also nearing completion, with top-line results from phase three studies expected later this year. External innovation has supported expansion of our growing immunology pipeline. We recently announced plans to acquire Capstan. Their novel platform allows for in vivo programming of cells through mRNA delivery using targeted lipid nanoparticles. Capstan's lead asset, currently in phase one, generates CD19-specific CD8-positive in vivo CAR T cells.

<unk> adjusted Salt 20, and 10 scores for Ringbark 30 milligrams.

Approximately 20 percentage points above the rates for the highest approved doses of other JAK inhibitors for.

External innovation has supported expansion of our drawing immunology pipeline, we recently announced plans to acquire caps down there.

For the <unk> 15 milligram group rates were approximately 10 points above.

<unk> platform allows for in vivo programming of cells through mrna delivery using targeted lipid nanoparticles.

We are very pleased with these results, which certainly surpassed our expectations.

Results from a second phase III alopecia Areata study are anticipated in the third quarter, followed by regulatory submissions starting later this year.

<unk> lead asset currently in phase one generate Citi 19 specific CDA positive in vivo car T cells.

Yes.

Our T cells are designed to achieve rapid and deep b cell depletion without the need for lymphoma and chemotherapy. While also avoiding other challenges associated with conventional ex vivo car Ts.

The <unk> program for bring book is also nearing completion with top line results from Phase III studies expected later this year.

External innovation has supported expansion of our drawing immunology pipeline, we recently announced plans to acquire caps down.

This innovative approach has the potential to become a transformative new treatment modality to reset the immune system and provide deep durable drug free remission for patients with autoimmune disease.

Their novel platform allows for in vivo programming of cells through mrna delivery using targeted lipid nanoparticles.

<unk> lead asset currently in phase one generate CD 19 specific CDA positive in vivo car T cells.

<unk> technology is a strong strategic fit for our early immunology efforts, where we have a number of internal assets designed to reset the immune system via depletion of pathogenic cells with the goal of delivering functional cures.

Rob Michael: The CAR T cells are designed to achieve rapid and deep B cell depletion without the need for lymphoablating chemotherapy, while also avoiding other challenges associated with conventional ex vivo CAR Ts. This innovative approach has the potential to become a transformative new treatment modality to reset the immune system and provide deep, durable, drug-free remission for patients with autoimmune disease. Capstan's technology is a strong strategic fit for our early immunology efforts, where we have a number of internal assets designed to reset the immune system via depletion of pathogenic cells with the goal of delivering functional cures. We plan to advance several assets that deplete B cells into the clinic, each with a different target or modality.

The car T cells are designed to achieve rapid and deep b cell depletion without the need for lymphoma blading chemotherapy, while also avoiding other challenges associated with conventional ex vivo car Ts.

We plan to advance several assets.

B cells into the clinic, each with a different target or modality.

These include.

Two anti CD 19, monoclonal antibodies that activate cell mediated cytotoxicity, one with and the other without a payload.

<unk> R V CMA CD three bi specific T cell engagements.

<unk> technology is a strong strategic fit for our early immunology efforts, where we have a number of internal assets designed to reset the immune system. The institution of pathogenic cells with the goal of delivering functional cures.

And ISP to zero or one eight Bcf a CD 38 cities three tri specific T cell engagements that as part of our recently announced agreement with <unk> Therapeutics.

We plan to advance several assets.

An interim analysis was recently completed on our monotherapy trial evaluating <unk> in ulcerative colitis.

T cells into the clinic, each with a different target or modality.

Rob Michael: These include two anti-CD19 monoclonal antibodies that activate cell-mediated cytotoxicity, one with and the other without a payload, Etentamide, our BCMA CD3 bispecific T cell engager, and ISB2001, a BCMA CD38 CD3 tri-specific T cell engager that is part of our recently announced agreement with IGI Therapeutics. An interim analysis was recently completed on our monotherapy trial evaluating Lutikizumab in ulcerative colitis. Lutikizumab showed numerically higher efficacy for the primary endpoint of endoscopic improvement compared to Humira, which was the control arm. However, the results were not sufficiently differentiated for us to pursue it as a monotherapy in this population. We believe there is still opportunity to drive incremental efficacy as a combination therapy in Crohn's disease, where Lutikizumab is being evaluated in combination with Skyrizi. Lutikizumab is one of several assets being studied, and results from our Crohn's combination platform study will begin to read out next year.

These include.

Two anti CD 19, monoclonal antibodies activate cell mediated cytotoxicity or <unk>.

<unk> showed numerically higher efficacy for the primary endpoint of endoscopic improvement compared to Humira, which was the control arm. However, the results were not sufficiently differentiated for us to pursue it as a monotherapy in this population.

With and the other without a payload.

We attempt to Meg or be CMA CD, three bi specific T cell engagement.

And ISP to zero or one eight Bcf a CD 38, CD three tri specific T cell engagement that is part of our recently announced agreement with <unk> Therapeutics.

We believe there is still opportunity to drive incremental efficacy as a combination therapy in crohn's disease, where <unk> is being evaluated in combination with <unk> <unk>.

<unk> is one of several assets being studied and results from our Crohns combination platform study will begin to read out next year.

An interim analysis was recently completed on our monotherapy trial evaluating <unk> in ulcerative colitis.

<unk> has the potential to drive efficacy across other autoimmune diseases. It has demonstrated strong efficacy in hidradenitis Suppurativa. We're phase III is ongoing with data expected in 2027.

Additional studies are underway evaluating monotherapy or combination approaches.

We believe there is still opportunity to drive incremental efficacy as a combination therapy in crohn's disease, where <unk> is being evaluated in combination with Scott Rajeev.

Psoriatic arthritis.

Dermatitis and rheumatoid arthritis.

Moving to oncology <unk>.

<unk> is one of several assets being studied and results from our Crohns combination platform study will begin to read out next year.

<unk> received accelerated approval from the FDA as a monotherapy in previously treated non squamous non small cell lung cancer with high C. Met expression. This is an important new treatment option for patients with this challenging disease.

Rob Michael: Lutikizumab has the potential to drive efficacy across other autoimmune diseases. It has demonstrated strong efficacy in hidradenitis suppurativa, where phase three is ongoing with data expected in 2027. Additional studies are underway evaluating monotherapy or combination approaches in psoriatic arthritis, atopic dermatitis, and rheumatoid arthritis. Moving to oncology, Imrelis received accelerated approval from the FDA as a monotherapy in previously treated non-squamous, non-small cell lung cancer with high CMET expression. This is an important new treatment option for patients with this challenging disease. At the recent ASCO meeting, we presented encouraging data for several novel ADCs in our oncology pipeline, including preliminary data from a phase one dose expansion study evaluating TMabA, our next-generation CMET ADC in patients with EGFR-mutated non-squamous, non-small cell lung cancer.

<unk> has the potential to drive efficacy across other autoimmune diseases. It has demonstrated strong efficacy in hidradenitis Suppurativa phase III is ongoing with data expected in 2027.

At the recent Astro meeting, we presented encouraging data for several novel Adcs in our oncology pipeline, including preliminary data from a phase one dose expansion study evaluating <unk>. Our next generation <unk> ADC in patients with Egfr mutated <unk>.

Additional studies are underway evaluating monotherapy or combination approaches.

Psoriatic arthritis.

Dermatitis and rheumatoid arthritis.

Moving to oncology <unk>.

<unk> received accelerated approval from the FDA as a monotherapy in previously treated non squamous non small cell lung cancer with high seen that expression. This is an important new treatment option for patients with this challenging disease.

Non squamous non small cell lung cancer.

<unk> demonstrated high and durable responses across the map expression levels with an objective response rate of 63% and median duration of response of nine eight months.

Based on these results we plan to initiate additional studies in both first and second line.

Other highlights from the Astro meeting included encouraging early stage results for ABP 706, and high grade neuroendocrine tumors and results from a registration, enabling phase III study evaluating <unk> and BP DCM, which will support a.

Non squamous non small cell lung cancer.

Rob Michael: TMabA demonstrated high and durable responses across CMET expression levels, with an objective response rate of 63% and median duration of response of 9.8 months. Based on these results, we plan to initiate additional studies in both first and second line. Other highlights from the ASCO meeting included encouraging early-stage results for ABBZ706 in high-grade neuroendocrine tumors and results from a registration-enabling phase two study evaluating PIVEC in BPDCN, which will support a regulatory submission later this year. At the ESMO meeting this fall, we have several planned presentations for TMabA, including results from a phase two study in combination with bevacizumab in CRC, as well as data from a proof-of-concept study in pancreatic cancer. We will also present updated data at the upcoming World Conference of Lung Cancer from our ABBZ706 dose-ranging proof-of-concept study in small cell lung cancer.

<unk> demonstrated high and durable responses across seem that expression levels with an objective response rate of 63% and median duration of response of nine eight months.

Regulatory submission later this year.

At the ESMO meeting this fall we have several planned presentations for <unk>, including results from a phase II study in combination with Bevacizumab in CRC as well as data from a proof of concept study in pancreatic cancer.

Based on these results we plan to initiate additional studies in both first and second line.

Other highlights from the Astro meeting included encouraging early stage results.

We will also present updated data at the upcoming World conference of lung cancer from our <unk> 706 dose ranging proof of concept study in small cell lung cancer.

<unk> 706, and high grade neuroendocrine tumors and results from a registration, enabling phase III study evaluating <unk> and BP DCM, which will support a regulatory submission later this year.

In the area of hematologic oncology, we recently announced a license agreement with <unk> therapeutics to develop a novel try specific T cell engagements for multiple myeloma and autoimmune diseases.

This first in class T cell engaging antibody targets be CMA and CD 38 on myeloma cells and has the potential to deliver deep and durable responses ultimately improving outcomes for patients.

We will also present updated data at the upcoming World conference of lung cancer from our <unk> 706 dose ranging proof of concept study in small cell lung cancer.

Despite investments the five year survival rate in multiple myeloma is still only about 60%. So unmet needs remain high quality of life is also important patients currently receive triplet and quad therapy, which can be challenging from a safety and convenience standpoint.

Rob Michael: In the area of hematologic oncology, we recently announced a licensed agreement with IGI Therapeutics to develop a novel tri-specific T cell engager for multiple myeloma and autoimmune diseases. This first-in-class T cell engaging antibody targets BCMA and CD38 on myeloma cells and has the potential to deliver deep and durable responses, ultimately improving outcomes for patients. Despite advancements, the five-year survival rate in multiple myeloma is still only about 60%, so unmet needs remain high. Quality of life is also important. Patients currently receive triplet and quad therapy, which can be challenging from a safety and convenience standpoint. HCPs and patients will continue to seek next-generation therapies that can provide high efficacy, better safety, and less complicated dosing regimens. We are extremely well positioned to address the unmet needs across all patient segments in multiple myeloma, with three next-generation multi-specific T cell engagers: Etentamide, ISB2001, and CIM0500.

In the area of hematologic oncology, we recently announced a license agreement with <unk> therapeutics to developing novel try specific T cell engagement for multiple myeloma and autoimmune diseases.

Hcp's and patients will continue to seek next generation therapies that can provide high efficacy better safety and less complicated dosing regimens.

This first in class T cell engaging antibody targets be CMA and CD 38 on myeloma cells and has the potential to deliver deep and durable responses ultimately improving outcomes for patients.

We are extremely well positioned to address the unmet needs across all patient segments in multiple myeloma.

With three next generation multi specific T cell engagements.

<unk> <unk> 2001, and Sim 0500, these off the shelf therapies may be particularly important for community based sites, where approximately 80% of patients receive care.

Hcp's and patients will continue to seek next generation therapies that can provide high efficacy better safety and less complicated dosing regimens.

In the area of neuroscience, we announced positive topline results from the head to head phase III temporal trial, comparing Q lifter and Topiramate for migraine prevention.

We are extremely well positioned to address the unmet needs across all patient segments in multiple myeloma.

The primary and all secondary endpoints were met in this study demonstrating that patients treated with <unk> fewer discontinuation due to adverse events and a greater reduction in migraine days compared to patients receiving topiramate.

Three next generation multi specific T cell engaging <unk>.

Meg ISP 2001, and Sim 0500, these off the shelf therapies may be particularly important for community based sites, where approximately 80% of patients receive care.

Rob Michael: These off-the-shelf therapies may be particularly important for community-based sites where approximately 80% of patients receive care. In the area of neuroscience, we announced positive top-line results from the head-to-head phase three Temple trial comparing Qulipta and topiramate for migraine prevention. The primary and all secondary endpoints were met in the study, demonstrating that patients treated with Qulipta had fewer discontinuations due to adverse events and a greater reduction in migraine days compared to patients receiving topiramate. Over the 24-week treatment period, 12% of patients discontinued Qulipta due to adverse events, compared to 30% for topiramate. 64% of patients on Qulipta achieved at least a 50% reduction in mean monthly migraine days, compared to 39% of patients on topiramate. These results add to the body of evidence supporting Qulipta as a first-line treatment option for episodic and chronic migraine prevention.

Over the 24 week treatment period, 12% of patients discontinuing due.

Due to adverse events compared to 30% for Topiramate.

In the area of neuroscience, we announced positive topline results from the head to head phase III temporal trial, comparing Q lifter and Topiramate for migraine prevention.

64% of patients on <unk> achieved at least a 50% reduction in mean monthly migraine days compared to 39% of patients on Topiramate.

Mary and all secondary endpoints were met in this study demonstrating that patients treated with <unk>.

These results add to the body of evidence supporting <unk> as a first line treatment option for episodic and chronic migraine prevention.

Fewer discontinuation due to adverse events and a greater reduction in migraine days compared to patients receiving topiramate.

In the quarter Maverick was approved for the treatment of acute HCV with this label expansion caregivers can now treat HCV patients immediately following diagnosis.

Over the 24 week treatment period, 12% of patients discontinued <unk> due.

Due to adverse events compared to 30% for Topiramate.

64% of patients on <unk> achieved at least a 50% reduction in mean monthly migraine days compared to 39% of patients on Topiramate.

Rather than waiting until progression to chronic disease earlier.

Earlier treatment, coupled with increased testing brings us closer to achieving the world health organization's goal of global HCV elimination by 2030.

These results add to the body of evidence supporting <unk> as a first line treatment option for episodic and chronic migraine prevention.

To summarize we've made significant progress across all of our therapeutic areas in the first half of the year and continue to expand our pipeline through internal and external innovation, we look forward to additional data readouts and regulatory milestones throughout the remainder of 2012.

Rob Michael: In the quarter, Mavyret was approved for the treatment of acute HCV. With this label expansion, caregivers can now treat HCV patients immediately following diagnosis, rather than waiting until progression to chronic disease. Earlier treatment coupled with increased testing brings us closer to achieving the World Health Organization's goal of global HCV elimination by 2030. To summarize, we've made significant progress across all of our therapeutic areas in the first half of the year and continue to expand our pipeline through internal and external innovation. We look forward to additional data readouts and regulatory milestones throughout the remainder of 2025. With that, I'll turn the call over to Scott.

In the quarter Maverick was approved for the treatment of acute HCV with this label expansion caregivers can now treat HCV patients immediately following diagnosis.

Five with that I will turn the call over to Scott.

Rather than waiting until progression to chronic disease earlier.

Earlier treatment, coupled with increased testing brings us closer to achieving the world health organization's goal of global HCV elimination by 2030.

Thank you ruble star.

Starting with our second quarter results, we reported adjusted earnings per share of $2 97.

Which is 11% above our guidance midpoint.

These results include a 42 unfavorable impact from acquired IP R&D expense.

Total net revenues were $15 4 billion.

Reflecting growth of six 5% on an operational basis.

Excluding a modestly favorable impact from foreign exchange.

Five.

With that I'll turn the call over to Scott.

Adjusted gross margin was 84, 4% of sales.

Scott Reents: Thank you, Rupal. Starting with our second quarter results, we reported adjusted earnings per share of $2.97, which is 11 cents above our guidance midpoint. These results include a 42-cent unfavorable impact from acquired IP R&D expense. Total net revenues were $15.4 billion, reflecting growth of 6.5% on an operational basis, excluding a modestly favorable impact from foreign exchange. Adjusted gross margin was 84.4% of sales. Adjusted R&D expense was 13.7% of sales, and adjusted SG&A expense was 21% of sales. The adjusted operating margin ratio was 44.3% of sales, which includes a 5.3% unfavorable impact from acquired IP R&D expense. Net interest expense was $678 million. The adjusted tax rate was 16.2%. Turning to our financial outlook, we are raising our full-year adjusted earnings per share guidance to between $11.88 and $12.08.

Thank you ruble.

Adjusted R&D expense was 13, 7% of sales.

Starting with our second quarter results, we reported adjusted earnings per share of $2 97.

And adjusted SG&A expense was 21% of sales.

Which is 11% above our guidance midpoint.

The adjusted operating margin ratio was 44, 3% of sales, which includes a five 3%.

These results include a 42 <unk> <unk> unfavorable impact from acquired IP R&D expense.

Total net revenues were $15 4 billion.

Favorable impact from acquired IP R&D expense.

Reflecting growth of six 5% on an operational basis.

Net interest expense was $678 million.

The adjusted tax rate was 16, 2%.

Excluding a modestly favorable impact from foreign exchange.

Adjusted gross margin was 84, 4% of sales.

Turning to our financial outlook, we are raising our full year adjusted earnings per share guidance to between $11 88.

Adjusted R&D expense was 13, 7% of sales.

And adjusted SG&A expense was 21% of sales.

And $12.08.

Please note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the second quarter.

The adjusted operating margin ratio was 44, 3% of sales, which includes a five 3%.

We now expect total net revenues of approximately $65 billion.

Unfavorable impact from acquired IP R&D expense.

An increase of $800 million.

Net interest expense was $678 million.

This reflects a relatively neutral impact from foreign exchange on full year sales growth.

The adjusted tax rate was 16, 2%.

Turning to our financial outlook, we are raising our full year adjusted earnings per share guidance to between $11 88.

Our updated revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas.

At $12 at <unk>.

And then the analogy, we now expect Sky really global revenues of $17 1 billion, an increase of $600 million, reflecting continued share gains in psoriasis and IBD.

Scott Reents: Please note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the second quarter. We now expect total net revenues of approximately $60.5 billion, an increase of $800 million. This reflects a relatively neutral impact from foreign exchange on full-year sales growth. Our updated revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas. In immunology, we now expect Skyrizi global revenues of $17.1 billion, an increase of $600 million, reflecting continued share gains in psoriasis and IBD, and US Humira revenues of $3 billion, a decrease of $500 million, reflecting biosimilar competition. In neuroscience, we now expect global sales of $10.5 billion, an increase of $300 million.

Please note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the second quarter.

We now expect total net revenues of approximately 65 billion.

And U S. Humira revenues of 3 billion, a decrease of $500 million, reflecting biosimilar competition.

An increase of $800 million.

This reflects a relatively neutral impact from foreign exchange on full year sales growth.

In neuroscience, we now expect global sales of $10 5 billion, an increase of $300 million.

Our updated revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas.

This includes a $100 million increase for viola, reflecting strong international uptake.

And immunology, we now expect <unk> global revenues of $17 1 billion, an increase of $600 million, reflecting continued share gains in psoriasis and IBD.

With the remaining $200 million increase split relatively evenly across railcar botox therapeutic and the total oil CG RP portfolio.

And then oncology, we now expect <unk>.

And U S. Humira revenues of 3 billion, a decrease of $500 million, reflecting biosimilar competition.

<unk> global revenues of $2 9 billion.

An increase of 100 billion, reflecting the higher persistency rates for existing patients.

In neuroscience, we now expect global sales of $10 5 billion, an increase of 300 million.

And then <unk> global sales of $2 8 billion, an increase of 100 billion.

Scott Reents: This includes a $100 million increase for Violev, reflecting strong international uptake, with the remaining $200 million increase split relatively evenly across Relar, Botox Therapeutic, and the total oral CGRP portfolio. And in oncology, we now expect Imbruvica global revenues of $2.9 billion, an increase of $100 million, reflecting higher persistency rates for existing patients, and Venclexta global sales of $2.8 billion, an increase of $100 million, reflecting continued strong demand in CLL. Moving to the P&L for 2025, we continue to forecast a full-year adjusted gross margin of approximately 84% of sales. We now expect adjusted R&D expense of approximately $9 billion and adjusted SG&A expense of approximately $13.5 billion. We also now anticipate an adjusted operating margin ratio of roughly 45% of sales, in line with our previous expectations after including the 1.8% unfavorable impact of acquired IP R&D expense incurred through the second quarter.

This includes a $100 million increase for viola, reflecting strong international uptake.

Reflecting continued strong demand in CLO.

With the remaining $200 million increase split relatively evenly across railcar botox therapeutic.

Moving to the P&L for 2025, we continue to forecast full year adjusted gross margin of approximately 84% of sales.

Total oil CG RP portfolio.

We now expect adjusted R&D expense of approximately $9 billion.

And then oncology, we now expect <unk> global revenues of $2 9 billion at.

And adjusted SG&A expense of approximately $13 $5 billion.

An increase of $100 billion, reflecting the higher persistency rates for existing patients.

We also now anticipate an adjusted operating margin ratio of roughly 45% of sales.

And then <unk> global sales of $2 8 billion.

In line with our previous expectations.

An increase of $100 billion, reflecting.

After including the one 8% unfavorable impact of acquired IP R&D expense incurred through the second quarter.

Continued strong demand in CLO.

Moving to the P&L for 2025, we continue to forecast full year adjusted gross margin of approximately 84% of sales.

Turning to the third quarter, we anticipate net revenues of approximately $15 $5 billion.

We now expect adjusted R&D expense of approximately $9 million and adjusted.

This reflects an estimated 1% favorable impact from foreign exchange on sales growth.

Good SG&A expense of approximately $13 $5 billion.

We also now anticipate an adjusted operating margin ratio of roughly 45% of sales.

We expect adjusted earnings per share between $3 24.

And $3 28.

In line with our previous expectations.

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

After including the one 8% unfavorable impact of acquired IP R&D expense incurred through the second quarter.

In closing Abbvie once again delivered outstanding top and bottom line performance with results well ahead of our expectations.

Scott Reents: Turning to the third quarter, we anticipate net revenues of approximately $15.5 billion. This reflects an estimated 1% favorable impact from foreign exchange on sales growth. We expect adjusted earnings per share between $3.24 and $3.28. This guidance does not include acquired IP R&D expense that may be incurred in the quarter. In closing, AbbVie once again delivered outstanding top and bottom line performance, which results well ahead of our expectations. I'm pleased with the momentum from our ex-Humira platform, including Skyrizi, Rinvoq, and neuroscience, which further supports AbbVie's long-term outlook. With that, I'll turn the call back over to Liz.

Turning to the third quarter, we anticipate net revenues of approximately $15 5 billion.

I am pleased with the momentum from our ex Humira platform, including <unk> revoked and neuroscience, which further supports <unk> long term outlook.

This reflects an estimated 1% favorable impact from foreign exchange on sales growth.

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

We expect adjusted earnings per share between $3 24.

Scott We will now open the call for question and 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 deals.

And $3 28.

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

Operator, we'll take the first question please.

So my first question comes from Mohit Bansal with Wells Fargo. Your line is open.

In closing Abbvie once again delivered outstanding top and bottom line performance with results well ahead of our expectations.

Thank you very much for taking my question and congrats on all the progress.

I have a question regarding the impact of Tela bio similar on <unk> care.

I am pleased with the momentum from our ex Humira platform, including <unk> revoked and neuroscience, which further supports at least long term outlook.

Specialty kind of Dizzy.

So I mean, one that could be it could be considered as a negative impact but.

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

Jeff Stewart: Thanks, Scott. We'll 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, we'll take the first question, please.

As you saw with Humira Biosimilar people decided to not move to biosimilar, but more efficacious drug like <unk>.

How do you think about.

Roopal Thakkar: Yes, and our first question comes from Mohit Panzo with Wells Fargo. Your line is open.

The impact of Biosimilar, considering these two dynamics here. Thank you.

So my first question comes from Mohit Bansal with Wells Fargo. Your line is open.

Scott Reents: Thank you very much for taking my question, and congrats on all the progress. I have a question regarding the impact of Telara biosimilar on Skyrizi and Rinvoq here, especially Skyrizi. I mean, so I mean, one end could be, I mean, it could be considered as a negative impact. But as you saw with Humira biosimilar, people decided to not move change to biosimilar but to a more efficacious drug like Skyrizi and Rinvoq. How do you think about the impact of biosimilar considering these two dynamics here? Thank you.

Thank you very much for taking my question and congrats on all the progress.

Yes, Thanks, Mohit, it's Geoff and you're right that we did see certainly with the first exclusionary.

I have a question regarding the impact of tailor our bio similar on the engine will cure.

Formulary that was Cvs last year, we did see movement from Humira.

Specialty kind of Dizzy.

So I mean, one that could be it could be considered as a negative impact but.

Not all of it went to the Biosimilar. Some went to as you as you mentioned Sky <unk> and RIN vote. Now still are we're still relatively early and there are more interchangeable biosimilars so and.

As you saw with Humira Biosimilar people decided to not move to biosimilar, but to a more efficacious drug like <unk>.

And it's frankly, it's a it was a much smaller drug because it's really just concentrated in Gi so it's difficult to sort of tease out.

How do you think about.

The impact of Biosimilar, considering these two dynamics here. Thank you.

Exactly what movement, we're seeing certainly we did see that some physicians as they think about a movement would be more willing to look at the higher end products, but net net I think that fundamentally the core.

Operator: Yeah, thanks, Mohit. It's Jeff. And you're right that we did see, certainly with the first exclusionary formulary, that was CVS last year, we did see movement from Humira. Not all of it went to the biosimilar. Some went to, as you mentioned, Skyrizi and Rinvoq. Now, Stelara is still relatively early, and there are more interchangeable biosimilars. So, and it's, frankly, it was a much smaller drug because it's really just concentrated in GI. So it's difficult to sort of tease out exactly what movement we're seeing. Certainly, we did see that some physicians, as they think about a movement, would be more willing to look at the higher-end products. But net-net, I think that fundamentally the core momentum around Skyrizi and Rinvoq are simply related to just the outstanding data, the breadth of indications, you know, our connections with physicians in terms of our value proposition.

Yes, Thanks, Mohit, it's Geoff and you're right that we did see certainly with the first.

Exclusionary.

Formulary that with Cvs last year, we did see movement from Humira.

The core momentum around <unk> and RIN book are simply related to just the outstanding data the breadth of indications.

Not all of it went to the Biosimilar. Some went to as you as you mentioned <unk> and <unk> now. So lora is still relatively early and there are more interchangeable biosimilars so and.

Our connections with physicians in terms of our value proposition.

And it's frankly, it's a it was a much smaller drug because it really just concentrated in Gi so it's difficult to sort of tease out.

So I would say if anything it's a minor.

Certainly contributor and this is Rob I'll just add on if you recall, we had the sequence had that trial.

<unk> versus the Lora and we did see significant share gains following the release of that head to head and so when you think about sky Brady's performance versus the Laura before the Biosimilar, we saw very notable share inflection.

The core momentum around <unk> and RIN book are simply related to just the outstanding data the breadth of indications.

And as Jeff mentioned, we're seeing right now is just continued momentum from Sky Rizzi.

I would not attribute that to be an impact from the biosimilar, but I sure want to make clear that we did see a very nice share I'll take following the sequence head to head trial.

Our connections with physicians in terms of our value proposition.

Operator: So I would say, if anything, it's a minor certainly contributor.

So I would say if anything it's a minor.

Rob Michael: And this is Rob. I'll just add on. If you recall, we had the sequence head-to-head trial of Skyrizi versus Stelara, and we did see significant share gains following the release of that head-to-head. And so when we think about Skyrizi's performance versus Stelara before the biosimilar, we saw a very notable share inflection. And as Jeff mentioned, what we're seeing right now is just continued momentum from Skyrizi. I would not attribute that to be an impact from the biosimilar, but I should want to make clear that we did see a very nice share uptake following the sequence head-to-head trial.

Certainly contributor and this is Rob I'll just add on if you recall, we had the sequence had that trial.

Thanks, Mohit operator next question please.

Our next question comes from Terence Flynn with Morgan Stanley. Your line is open.

<unk> versus the Lora and we did see significant share gains following the release of that head to head and so when you think about <unk> performance versus the law before the Biosimilar, we saw very notable share inflection.

Great. Thanks for taking the questions maybe two for me, obviously, another solid quarter here from Sky.

Annualizing at about $18 billion now I know you have the 2027 2027 guidance out there for over $20 billion. So just maybe help us think about.

And as Jeff mentioned, we're seeing right now is just continued momentum from Sky Rizzi.

That number and confidence there.

I would not attribute that to be an impact from the biosimilar, but I sure want to make clear that we did see a very nice share I'll take following the sequence head to head trial.

And kind of if you could tie in <unk> as well again annualize and $8 billion I think that guidance is for over 11 billion in 2027, and then no you might not have a lot of details yet, but just any thoughts on the latest tariff announcement regarding the EU and how that might impact 2026. Thank you.

Jeff Stewart: Thanks, Mohit. Operator, next question, please.

Thanks, Mohit operator next question please.

Roopal Thakkar: Our next question comes from Terrence Flynn with Morgan Stanley. Your line is open.

Our next question comes from Terence Flynn with Morgan Stanley. Your line is open.

Mohit Bansal: Great. Thanks for taking the questions. Maybe two for me. Obviously, another solid quarter here from Skyrizi. It's annualizing at about $18 billion now. I know you have the 2027 guidance out there for over $20 billion. So just maybe help us think about, you know, that number and confidence there. And kind of if you could tie in Rinvoq as well, again, annualizing $8 billion. I think that guidance is for over $11 billion in 2027. And then, no, you might not have a lot of details yet, but just any thoughts on the latest tariff announcement regarding the EU and how that might impact 2026. Thank you.

Great. Thanks for taking the questions maybe two for me, obviously, another solid quarter here from Sky.

The terrorists as Rob I'll tell I'll take both questions. So youre right were seeing tremendous performance from Sky really were invoked very pleased with.

Annualizing at about $18 billion now I know you have the 2000 2007 2027 guidance out there for over $20 billion. So just maybe help us think about.

With the progress, we're making obviously continue to raise our expectations for this year.

As you know, we occasionally update the long term guidance, what we've been doing that the last few years around the time of the fourth quarter call we've done that.

That number and confidence there.

Also previously at the Jpmorgan conference. So we do refresh long term guidance I'd say, we're obviously tracking very well against the last long term guidance, we issued and we will update that at the appropriate time, but obviously then when you look at street expectations as well they've come up too and so we're very pleased with the performance and we will update.

Rob Michael: Terrence, this is Rob. I'll take both questions. So you're right. We're seeing tremendous performance from Skyrizi and Rinvoq. Very pleased with the progress we're making. Obviously, you know, continue to raise our expectations for this year. As you know, we occasionally update the long-term guidance. We've been doing that the last few years around the time of the fourth quarter call. We've done that also previously at the JPMorgan conference. So we do refresh long-term guidance. I'd say we're obviously tracking very well against the last long-term guidance we issued, and we will update that at the appropriate time. But obviously, and then when you look at, you know, street expectations as well, they've come up too. And so, you know, we're very pleased with the performance, and, you know, we'll update that long-term guidance at the appropriate time. But the momentum is clearly there.

The tariff is relative to I'll take both questions. So youre right were seeing tremendous performance from Sky resilient, both very pleased with.

Date that long term guidance at the appropriate time, but.

With the progress, we're making obviously continue.

Momentum is clearly there.

As it relates to tariffs I would say as it relates to 25% are fairly insulated from any impact this year, given inventory management actions, but look without policy details, we're not going to speculate on the longer term impact we do need to see the outcome of the $2 32 investigation and how tariffs are ultimately phased in.

Raise our expectations for this year.

As you know, we occasionally update the long term guidance, what we've been doing that last few years around the time of the fourth quarter call we've done that.

Also previously at the Jpmorgan conference. So we do refresh long term guidance I'd say, we're obviously tracking very well against the last long term guidance, we issued and we will update that at the appropriate time, but obviously and then when you look at street expectations as well.

Can say is that we do not expect our exposure to be outsized relative to peers.

And as I mentioned during our first quarter call. We have a broad U S network. It includes 11 sites that manufacturer API biologics toxins and small molecules.

Up to and so we're very pleased with the performance and we will update that long term guidance at the appropriate time, but.

As a reminder, again our largest product <unk> is made in the U S for the domestic market and longer term, we will add more U S manufacturing capacity, which is part of the planned $10 billion in capital investment that we announced during the first quarter call that again includes adding four new sites for our U S network that will cover API peptides.

Momentum is clearly there.

Rob Michael: As it relates to tariffs, I'd say, you know, as it relates to '25, we're fairly insulated from any impact this year given inventory management actions. But look, without policy details, we're not going to speculate on the longer-term impact. We do need to see the outcome of the 232 investigation and how tariffs are ultimately phased in. What I can say is that we do not expect our exposure to be outsized relative to peers. And as I mentioned during the first quarter call, we have a broad US network. It includes 11 sites that manufacture API, biologics, toxins, and small molecules. As a reminder, again, our largest product, Skyrizi, is made in the US for the domestic market. And longer term, we will add more US manufacturing capacity, which is part of the planned $10 billion in capital investment that we announced during the first quarter call.

As it relates to tariffs I would say as it relates to 25% are fairly insulated from any impact this year, given inventory management actions, but look without policy details, we're not going to speculate on the longer term impact, but we do need to see the outcome of the $2 32 investigation and how tariffs are ultimately phased in.

Doug product end devices, and so we are well positioned we will obviously continue to invest in the U S. I think we're having constructive discussions with the administration on sectorial tariffs is clearly the best way to motivate that is through tax incentives as well as a trade agenda that prioritizes innovation.

Can say is that we do not expect our exposure to be outsized relative to peers.

And as I mentioned during our first quarter call. We have a broad U S network. It includes 11 sites that manufacturer API biologics toxins and small molecules.

We're well positioned as a company, but we're not going to be able to really give you any details until we understand the outcome of the 232 investigation.

Thanks, Taryn operator next question please.

So next question comes from Chris Schott with Jpmorgan. Your line is open.

Rob Michael: That, again, includes adding four new sites to our US network that will cover API, peptides, drug product, and devices. And so we are well positioned. We'll obviously continue to invest in the US. I think, you know, we're having constructive discussions with the administration on sectoral tariffs. Clearly, you know, the best way to motivate that is through tax incentives, as well as a trade agenda that prioritizes innovation. But we're, you know, we're well positioned as a company, but we're not going to be able to really give you any details until we understand the outcome of the 232 investigation.

Thanks, So much just a couple of thoughts here just on <unk>.

Obviously meaningful upside the results this year and just would love if you'd lay out what in particular is driving this I guess specifically as it all IBD are you also seeing upside to the derm indications as well and then second question I'm, just kind of a bigger picture kind of BD question I know the focus is on strengthening the growth profile 2030, and beyond but just given the momentum of the core business.

Doug product end devices, and so we are well positioned we will obviously continue to invest in the U S. I think we're having constructive discussions with the administration on sectorial tariffs. It's clearly the best way to motivate that is through tax incentives as well as a trade agenda that prioritizes innovation hub.

We are well positioned as a company, but we're not going to be able to really give you any details until we understand the outcome of the 232 investigation.

It seems as though Abbvie could fund significant growth in its pipeline and R&D over the next few years and still have pretty healthy earnings growth.

Jeff Stewart: Thanks, Terrence. Operator, next question, please.

Thanks, Taryn operator next question please.

Roopal Thakkar: Yes, our next question comes from Chris Shot with JPMorgan. Your line is open.

Should we think about there still being kind of a string of early stage or mid stage deals or is their appetite to also look at later stage assets that maybe have more spend upfront, but could also contributed as we get later in the decade. Thank you.

Yes. The next question comes from Chris Schott with Jpmorgan. Your line is open.

Chris Schott: Great, Don. Thanks so much. Just a couple of thoughts here. Just on Skyrizi, obviously meaningful upside to results this year. And just would love if you'd lay out what in particular is driving this, I guess specifically. Is it all IBD, or are you also seeing upside to the derm indications as well? And then the second question, which is kind of a bigger picture kind of BD question. I know the focus is on strengthening the growth profile 2030 and beyond. But just given the momentum of the core business, it seems as though AbbVie could fund significant growth in its pipeline and R&D over the next few years and still have pretty healthy earnings growth.

Thanks, So much just a couple of thoughts here just on <unk>.

Yes, Thanks, Chris.

Chris It's Jeff.

The momentum on Sky reserves across the board clearly we spent a lot of time talking about the more recent launches of of Crohns and.

Ulcerative colitis, Rob mentioned the sequence head to head trial, which was quite.

It seems as though Abbvie could fund significant growth in its pipeline and R&D over the next few years and still a pretty healthy earnings growth.

Remarkable and what that drove but really it's across the board I mean, particularly continue to be very very impressed with our momentum in psoriatic disease.

Chris Schott: So just should we think about this still being kind of the string of early or stage or mid-stage deals, or is there appetite to also look at later stage assets that maybe have more spend up front but could also contribute as we get later in the decade? Thank you.

It's been seven years since the initial psoriasis approval and we are still gaining in play share really not been observed on a brand this bag over that amount of time.

Operator: Yeah, thanks, Chris. It's Jeff. And you know the momentum on Skyrizi is across the board. Clearly, we've spent a lot of time talking about the more recent launches of Crohn's and ulcerative colitis. Rob mentioned the sequence head-to-head trial, which was quite remarkable in what that drove. But really, it's across the board. I mean, particularly continue to be very, very impressed with our momentum in psoriatic disease. So it's been seven years since the initial psoriasis approval, and we are still gaining in-play share. Really not been observed on a brand this big over that amount of time. And that's across both psoriasis and, as I mentioned in my prepared remark, in front-line PSA derm. So it really is strength across the board.

Yes, Thanks, Chris.

Chris It's Jeff.

And that's across both psoriasis and as I mentioned in my prepared remark and in.

The momentum on Sky <unk> across the board clearly we spent a lot of time talking about the more recent launches of of Crohns and.

Frontline PSA derm. So it really is strength across the board, we even see continued momentum in PSA in rheumatology, where our combined our combined share with both sky Rosie and revoke in terms of PSA room is the leading portfolio. So it really is well.

Ulcerative colitis, Rob mentioned the sequence head to head trial, which was quite.

Remarkable and what that drove but really it's across the board I mean, particularly continue to be very very impressed with our momentum in psoriatic disease.

Balanced Chris.

Chris Chris I would just add to Jeff's comments that 600 billion raise 400 of that you can think of as the IBD 200 in Psoriatic. So thats going to put the split of the 17 more than 11, three for Psoriatic and five eight for IBD.

It's been seven years since the initial psoriasis approval and we are still gaining in play share really not been observed on a brand in this big over that amount of time.

And that's across both psoriasis and as I mentioned in my prepared remark and in.

And Chris This is Rob I'll take your question on BD when you when you look at Abbvie.

Operator: We even see continued momentum in PSA in rheumatology, where our combined share with both Skyrizi and Rinvoq in terms of PSA room is the leading portfolio. So it really is well balanced.

And the diversified growth platform, we have today, that's going to provide us with the opportunity to really drive top tier performance clearer line of sight to grow for at least the next eight years. So as I think about strategically the pipeline external innovation.

The investments, we're making are really all around what's going to drive growth in the next decade, we have a clear line of sight based on the portfolio, we have today to drive that growth.

Balance.

Scott Reents: Chris, I would just add to Jeff's comments that $600 billion raised, $400 of that you could think of as IBD, $200 in psoriatic. So that's going to put the split of the 17-1 at $11.3 for psoriatic and $5.8 for IBD.

Chris Chris I would just add to Jeff's comments that 600 billion raised 400 of that you can think of as the IBD 200 in Psoriatic. So that's going to put the split of the 17 more than 11, three for Psoriatic and five eight for IBD.

Over the next eight years and so it's really more about how do we set the company up to grow beyond Sky resilient book and so we've made I think a lot of very compelling investments and Youre right. We.

Rob Michael: And Chris, this is Rob. I'll take your question on BD. When you look at AbbVie and the diversified growth platform we have today, you know that's going to provide us with the opportunity to really drive top-tier performance, you know clear line of sight to growth for at least the next eight years. So as I think about strategically the pipeline, external innovation, the investments we're making are really all around what's going to drive growth in the next decade. We have a clear line of sight based on the portfolio we have today to drive that growth over the next eight years. And so it's really more about how do we set the company up to grow beyond Skyrizi and Rinvoq. And so we've made, I think, a lot of very compelling investments.

And Chris This is Rob I'll take your question on BD when you when you look at Abbvie.

Without any significant eloise. This decade, we have the flexibility to invest more in R&D to continue to acquire external innovation and we're going to we will absolutely do that we have I think a lot of very exciting programs coming out of our internal pipeline. We look at the progress, we're making particularly.

And the diversified growth platform, we have today, that's going to provide us with the opportunity to really drive top tier performance.

Clear line of sight to grow for at least the next eight years, so as I think about strategically the pipeline external innovation.

The investments, we're making are really all around what's going to drive growth in the next decade, we have a clear line of sight based on the portfolio, we have today to drive that growth.

In oncology you look at the combination approaches in immunology.

But our BD strategy will continue to be focused on assets that can really drive growth in the next decade and beyond and if you just look at the deals we've done obviously bolstering our pipeline in immunology with novel mechanisms, but also adding important capabilities with oral peptide as well as b cell depletion approaches in oncology, we've added some very nice depth.

Over the next eight years and so it's really more about how do we set the company up to grow beyond Sky resilient and so we've made I think a lot of very compelling investments and you're right.

Rob Michael: And you're right, without any significant LOEs this decade, we have the flexibility to invest more in R&D to continue to acquire external innovation. And we will absolutely do that. We have, I think, a lot of very exciting programs coming out of our internal pipeline. We look at the progress we're making, particularly in oncology. You look at the combination approaches in immunology. But our BD strategy will continue to be focused on assets that can really drive growth in the next decade and beyond. And if you just look at the deals we've done, obviously bolstering our pipeline in immunology with novel mechanisms, but also adding important capabilities with oral peptides as well as B cell depletion approaches. In oncology, we've added some very nice depth in multiple myeloma.

Multiple myeloma, we actually have our own program and it tends to make but we've added to try specific deals. Some CRM agi to really give us significant depth and multiple myeloma drive growth for the long term. We've also made a lot of progress in neuroscience across psychiatry migrating Alzheimers and then DSI RNA transactional date Rx gives us.

In oncology you look at the combination approaches in immunology.

But our BD strategy will continue to be focus on assets that can really drive growth in the next decade and beyond and if you just look at the deals we've done obviously bolstering our pipeline in immunology with novel mechanisms, but also adding important capabilities with oral peptide as well as b cell depletion approaches in oncology. We've added some very nice stepped in.

A very compelling platform that can generate opportunities across really all three of these areas I mean, ology neuroscience oncology and then not to mention our entry into obesity with a goober deal, which we plan to build upon with more BD. So as I think about the company strategically we need to continue to invest in early stage programs that can really drive growth for the company in the neck.

Rob Michael: We actually have our own program in Etentamide, but we've added two tri-specific deals, Cimcera and IGI, to really give us significant depth in multiple myeloma to drive growth for the long term. We've also made a lot of progress in neuroscience across psychiatry, migraine, and Alzheimer's. And then the siRNA transaction with ARX gives us a very compelling platform that can generate opportunities across really all three of these areas: immunology, neuroscience, and oncology. And then not to mention our entry into obesity with the Guber deal, which we plan to build upon with more BD. So as I think about the company strategically, we need to continue to invest in early-stage programs that can really drive growth for the company in the next decade and beyond. And we're very well positioned to drive growth in this decade with the portfolio we have today.

Multiple myeloma, we actually have our own program at the chance to make but we've added to try specific deals sincere and agi to really give us significant depth and multiple myeloma to drive growth for the long term. We've also made a lot of progress in neuroscience across psychiatry migraine in Alzheimer's and then the SA RNA transaction with eight Rx gives us.

Decade, and beyond and we're very well positioned to drive growth in this decade with the portfolio we have today.

Thanks, Craig Operator next question please.

Thank you. Our next question comes from Dave Risinger with Leerink Partners. Your line is open.

Yes, thanks, very much and congrats on a on a phenomenal financial momentum.

[laughter].

My My question is could you. Please discuss your vision for leveraging your global AST Fedex commercial footprint.

Think about the company strategically we need to continue to invest in early stage programs that can really drive growth for the company in the next decade and beyond and we're very well positioned to drive growth in this decade with the portfolio we have today.

To sell obesity drugs in the future and also how are you thinking about potentially adding to your obesity R&D portfolio in the future. Thanks very much.

Jeff Stewart: Thanks, Chris. Operator, next question, please.

Thanks, Craig Operator next question please.

Roopal Thakkar: Thank you. Our next question comes from Dave Reisinger with Lirink Partners. Your line is open.

Thank you. Our next question comes from Dave Risinger with Leerink Partners. Your line is open.

Yes, Hi, David It's Jeff. So this is a very important point I mean, we do have a very strong footprint around the around the globe and what we observed and it's changed a little bit over the last several quarters.

Speaker 11: Yes, thanks very much, and congrats on the phenomenal financial momentum. So my question is, could you please discuss your vision for leveraging your global aesthetics commercial footprint to sell obesity drugs in the future? And also, how are you thinking about potentially adding to your obesity R&D portfolio in the future? Thanks very much.

Yes, thanks, very much and congrats on.

On the phenomenal financial momentum so.

My My question is could you. Please discuss your vision for leveraging your global AST Fedex commercial footprint.

We observe that the sort of a cash pay obesity or weight weight loss market in our <unk> practices.

Became the second largest sort of revenue driver for them and in terms of patient flow. So you had the toxins was number one then obesity and weight loss became number two and then dermal fillers was number three now that since mod moderating and it's moderated because of the.

To sell obesity drugs in the future and also how are you thinking about potentially adding to your obesity R&D portfolio in the future.

Thanks very much.

Operator: Yeah. Hi, David. It's Jeff. So this is a very important point. I mean, we do have a very strong footprint around the globe. And what we observed, and it's changed a little bit over the last several quarters, we observed that the sort of a cash pay obesity or weight loss market in our aesthetics practices became the second largest sort of revenue driver for them in terms of patient flow. So you had the toxins was number one. Then obesity and weight loss became number two. And then dermal fillers was number three. Now that's since moderated. And it's moderated because of basically the loss of some of the compounding dynamics and the way the clinics were thinking about this. So this was an important, certainly not the only, an important reason for the Guber transaction because we know that that's just going to be ongoing demand.

Basically the loss of some of the compounding dynamics and the way the clinics, we're thinking about this so we this was an important certainly not the only an important reason for the <unk> transaction, because we know that that's just going to be ongoing demand and as we think of a lot of patients who are going to have already tried to cycle through the <unk>.

We observe that the sort of a cash pay obesity or weight weight loss market in our <unk> practices.

One whether it was compounding or the branded over time, they're going to want to continue to think about how do they think about weight loss as.

Part of their aesthetics journey over time.

And we think we're very uniquely positioned to be able to deliver that.

To the aesthetic clinics around the world. So again pretty important in terms of how we would do that our ability to distribute directly to think about ways that we would handle that.

The cash pay aspects.

Aspects of thinking about.

Operator: And as we think of a lot of patients who are going to have already tried to cycle through the GLP-1s, whether it was compounding or the branded over time, they're going to want to continue to think about how do they think about weight loss as part of their aesthetic journey over time. And we think we're very uniquely positioned to be able to deliver that, you know, to the aesthetic clinics around the world. So again, pretty important in terms of how we would do that, you know, our ability to distribute directly, to think about ways that we would handle, you know, the cash pay aspects, aspects of thinking about, you know, how Ally would work and how that interaction would take place across the, you know, emerging portfolio and existing core brands that we have.

Ali would work and how that interaction would take place across the emerging portfolio in existing core brands that we have so that was a big consideration.

One whether it was compounding or the branded over time, they're going to want to continue to think about how do they think about weight loss as.

<unk> of our deal and certainly attractive.

Part of their aesthetics journey over time.

And this is ruble talking about.

And we think we're very uniquely positioned to be able to deliver that.

R&D, furthering our R&D and obesity space and that's something that's.

Certainly something we are open to.

To the aesthetic clinics around the world. So again pretty important in terms of how we would do that our ability to distribute directly to think about ways that we would handle that.

The asset we have right now is in the amylin class.

The things that we were thinking about there were.

Enhanced tolerability desirable dosing profile that could drive durability. The issue. We see here is many people will start, but a majority of whom won't fall off relatively.

The cash pay aspects.

Aspects of thinking about.

Ali would work and how that interaction would take place across the emerging portfolio in existing core brands that we have so that was a big consideration.

Operator: So that was a big consideration of our deal and certainly attractive.

Relatively quickly and then not get the benefits of weight loss.

Our of our deal and certainly attractive.

Rob Michael: And this is Rupal talking about R&D, furthering R&D in the obesity space. And that's certainly something we're open to. The asset we have right now is in the Amylan class. And the things that we were thinking about there were enhanced tolerability, a desirable dosing profile that could drive durability. The issue we see here is many people will start, but a majority of whom will fall off relatively quickly and then not get the benefits of weight loss. The other considerations are around muscle loss and bone loss. And along those lines of what I just mentioned, if there are other assets that address those similarly to an Amylan class and we have an opportunity to combine, that would be something that we'd be very interested in.

Other considerations are around <unk>.

And this is Grupo <unk> talking about.

<unk> loss and bone loss.

R&D, furthering our R&D and obesity space and that's something that.

And.

Along those lines of what I just mentioned if there are other assets that address those.

Certainly something we are open to.

The asset we have right now is in the amylin class.

Similarly to an inland class and we have an opportunity to combine that would be something that would be very interested in.

The things that we were thinking about there or.

Enhanced tolerability desirable dosing profile that could drive durability. The issue. We see here is many people will start, but a majority of whom will fall off.

The other thing we like about the 295 molecule is neutral ph, which may make it simpler.

Combined with other assets that address these I would say.

Relatively quickly and then not get the benefits of weight loss.

Continued continuing unmet needs.

The other considerations are around.

Thanks, Dave Operator next question please.

Muscle loss and bone loss.

Thank you and our next question comes from Carnival with Cantor Your line is open.

And.

Along those lines of what I just mentioned if there are other assets that address those.

Thanks for the question maybe.

Pacer and ask on <unk>.

Obviously, you raised the guide there how should we think about that being primarily driven by U S or O U S. I guess, specifically has the <unk> success sort of changed the way you think about the U S launch there. Thank you.

Similarly to an inland class and we have an opportunity to combine that would be something that would be very interested in.

Rob Michael: The other thing we like about the 295 molecule is a neutral pH, which may make it simpler to combine with other assets that address these, I would say, continuing unmet needs.

The other thing we like about the 295 molecule is neutral ph, which may make it simpler.

Yes, Hi, Carter, it's Jeff So again as we mentioned we're super pleased with the.

Combined with other assets that address these I would say.

With the launch in <unk> and what we're seeing is just very very strong demand. The drug device combination is really transformational and what we see with the control over the Parkinson's or the advanced Parkinson disease is you get 24 hour effect and so that helps manage the motor.

Continued continuing unmet needs.

Jeff Stewart: Thanks, Dave. Operator, next question, please.

Thanks, Dave Operator next question please.

Roopal Thakkar: Thank you. Our next question comes from Cargill with Cantor. Your line is open.

And our next question comes from Carnival with cancer. Your line is open.

Chris Schott: Thanks for the question. Maybe to change pace and ask on Violev. Obviously, you raised the guide there. Should we think about that being primarily driven by US or OUS? I guess specifically, has the OUS success sort of changed the way you think about the US launch now? Thank you.

Thanks for the question, maybe just pacer and ask on <unk>.

Obviously, you raised the guide there how should we think about that being primarily driven by U S or O U S. I guess, specifically as the success sort of changed the way you think about the U S launch there. Thank you.

Disorders, and the sleep disturbances and throughout not just the day when people are awake, but also through the night. So this quality of life impact and the control of diseases quite remarkable. So we're just seeing real demand that's coming through largely across the international markets. So as we've highlighted before.

Operator: Yeah. Hi, Carter. It's Jeff. So again, as we mentioned, we're super pleased with the launch on Violev. And what we're seeing is just, you know, very, very strong demand. The drug-device combination is really transformational. And what we see with the control over the Parkinson's or the advanced Parkinson's disease is you get 24-hour effect. And so that helps manage the motor disorders and the sleep disturbances and, you know, throughout not just the day when people are awake, but also through the night. So this quality of life impact and the control of disease is quite remarkable. So we're just seeing real demand that's coming through largely across the international markets. So as we've highlighted before, you know, we're very confident that we're going to start to see the Medicare ramp in the US start here in the latter part of the year.

Yeah, Hi, Carter, it's Jeff So again as we mentioned we're super pleased with the.

<unk>.

We're very confident that we're going to start to see the Medicare ramp in the U S start here in the latter part of the year and we're right on track for that but the raise really is largely related to just the core demand you think about really the first full year of $400 million running rate in the international market is very impressive based on the perform.

<unk> disorders, and the sleep disturbances and throughout not just the day when people are awake, but also through the night. So this quality of life impact and the controller diseases quite remarkable. So we're just seeing real demand that's coming through largely across the international markets. So as we've highlighted.

So the brand.

Okay. Thank.

Thank you Carter operator next question please.

Yes. Our next question comes from Tim Anderson with Bank of America. Your line is open.

Thank you very much.

I have a question on IRA price negotiation.

Sure.

So we're very confident that we're going to start to see the Medicare ramp in the U S start here in the latter part of the year and we're right on track for that but the raise really is largely related to just the core demand you think about really the first full year of $400 million running rate in the international markets very unimpressive based on the performance.

You guys have a horse in the race again, where the trailer.

I was coming around you had in <unk>.

Operator: And we're right on track for that. But the raise really is largely related to just the core demand. You think about it, really the first full year, a $400 million running rate in the international market. It's very impressive based on the performance of the brand.

In the first round.

Been investor fears that this next round of negotiations will be worse than last year. So Trump can make his mark.

Any assurances you can give us that this won't be the case, where can you otherwise provide any color on how those negotiations are matching up with your expectations.

Once of the brand.

Okay. Thank.

Jeff Stewart: Thank you, Carter. Operator, next question, please.

Thank you Carter operator next question please.

Roopal Thakkar: Yes, our next question comes from Tim Anderson with Bank of America. Your line is open.

Yes. The next question comes from Tim Anderson with Bank of America. Your line is open.

Because your first headed into those negotiations and then second question on aesthetics.

Speaker 11: Thank you very much. I have a question on IRA price negotiation. You guys have a horse in the race again with Brelar in this upcoming round. You had Imbruvica in the first round. There have been industrial fears that this next round of negotiations will be worse than last year's so Trump can make his mark. Any assurances you can give us that this won't be the case, or can you otherwise provide any color on how those negotiations are matching up with your expectations as you first headed into those negotiations? And then second question on aesthetics. If I know you talked about pushes and pulls, a question I've asked in the past. The impact from the GLP-1s on Botox and dermal fillers, what's the latest? Is it helping sales, hurting sales, or net neutral?

Thank you very much.

I have a question on IRA price negotiation.

If I know you talked about pushes and pulls.

Question I've asked in the past the impact from the <unk> on Botox and dermal fillers.

You guys have a horse in the race again, where the trailer.

And this upcoming round you had in <unk> and.

What's the latest as it helping sales hurting sales or net neutral.

In the first round.

<unk> been investor fears that this next round of negotiations will be worse than last year. So Trump can make his mark.

Hey, Tim It's Rob I'll take your first question, obviously as we go through these negotiations we don't publicly comment for obvious reasons and as you know the prices will be public in November and we'll comment as appropriate at that time, but as it relates to their IRA I do think one important notable change as part of the one big.

Any assurances you can give us that this won't be the case for can you otherwise provide any color on how those negotiations are matching up with your expectations as.

As you first headed into those negotiations and then second question on aesthetics.

Beautiful Bill Act is the expansion of the IRA orphan drug exemption drugs with more than one orphan designation are now exempt from IRI negotiations, which will be a benefit to our own cancer therapy been collected so we would previously would've assumed we had a timeline as we model the impact by array now with this change.

I know you talked about pushes and pulls.

And I have asked in the past the impact from the <unk> on Botox and dermal fillers.

What's the latest as it helping sales hurting sales or net neutral.

Rob Michael: Hey, Tim. It's Rob. I'll take your first question. Obviously, as we go through these negotiations, we don't publicly comment for obvious reasons. And as you know, the prices will be public in November, and we'll comment as appropriate at that time. But as it relates to the IRA, I do think one important notable change as part of the One Big Beautiful Bill Act is the expansion of the IRA orphan drug exemption. You know, drugs with more than one orphan designation are now exempt from IRA negotiations, which will be a benefit to our own cancer therapy, Venclexta. So we previously would have assumed, you know, we had a timeline as we model the impact of IRA. Now, with this change, we would not expect Venclexta to be negotiated. And that's an example of a good policy change where innovation is being rewarded and not penalized.

Hey, Tim It's Rob I'll take your first question, obviously as we go through these negotiations we don't publicly comment for obvious reasons and as you know the price will be public in November and we'll comment as appropriate at that time, but as it relates to their IRA I do think one important notable change as part of the one big.

We would not expect them to be.

Negotiate it and that's an example of a good policy change where innovation is being rewarded and not penalised.

But as it relates to the current negotiations we will provide commentary once those prices are public.

To fulfill act is the expansion of the IRA orphan drug exemption drugs with more than one orphan designation are now exempt from IRI negotiations, which will be a benefit to our own cancer therapy been collected so we would previously would've assumed we had a timeline as we model the impact by array now with this change.

Yeah, and regarding the <unk> ones I would say overall, what we see after numerous discussions and working with our clinics. Tim is that it's really a net neutral I mean, if anything if you look at it I mean, the the filler market where in some cases people are interested in as they lose as they lose their facial.

Muscle and fat do you think that would be a tailwind for the for the dermal filler market and we've seen that that has just been more.

We would not expect them to be.

Negotiate it and that's an example of a good policy change where innovation is being rewarded and not penalised, but as it relates to the current negotiations will provide commentary once those prices are public.

More afflicted clearly by macro issues and some sentiment issue. So net net we see it as a really a neutral effect.

Rob Michael: But as it relates to the current negotiations, you know, we'll provide commentary once those prices are public.

Okay.

Thanks, Tim Operator next question please.

Operator: Yeah, and regarding the GLP-1s, I would say overall what we see after, you know, numerous discussions and working with our clinics, Tim, is that it's really a net neutral. I mean, if anything, if you look at it, I mean, the filler market where, you know, in some cases, people are interested in as they lose their facial muscle and fat, you'd think that would be a tailwind for the dermal filler market. And we've seen that that's just been more afflicted clearly by macro issues and some sentiment issues. So net-net, we see it as really a neutral effect.

Yeah, and regarding the <unk> ones I would say overall, what we see after numerous discussions and working with our clinics. Tim is that it's really a net neutral I mean, if anything if you look at it I mean, the filler market where in some cases people are interested in as they lose as they lose their facial.

Our next question comes from <unk> <unk> with Guggenheim Securities. Your line is open.

Great. Thanks for taking the questions and congrats on the quarter. So just two for me one on the alopecia Areata data you touched on earlier in the call in the press release from yesterday wondering if you can just sort of talk.

Muscle and fat you think that would be a tailwind for the for the dermal filler market and we've seen that that has just been more afflicted clearly by macro issues and some sentiment issue. So net net we see it as a really a neutral effect.

About the commercial opportunity for that indication, obviously youre invoked a.

Our big product isn't going to get bigger, but just curious how much of an impact that can have on print book sales and then second going back to the aesthetics commentary, maybe if you can just give a little more color on what youre seeing on the ground in terms of the impact of the macro or are things that you are getting better.

Jeff Stewart: Thanks, Tim. Operator, next question, please.

Okay.

Thanks, Tim Operator next question please.

Roopal Thakkar: Yes, our next question comes from Vamo Devan with Guggenheim Securities. Your line is open.

Our next question comes from <unk> <unk> with Guggenheim Securities. Your line is open.

<unk> are you already seeing an increase in patient flow as maybe the macro sentiment is getting a little better over the last few months.

Chris Schott: Great. Thanks for taking the questions. Congrats on the quarter. So just two for me. One on the alopecia areata data you touched on earlier in the call on the press release from yesterday. Wondering if you can just sort of talk about the commercial opportunity for that indication. Obviously, Rinvoq's a big product and going to get bigger, but just curious how much of an impact that can have on Rinvoq sales. And then second, going back to the aesthetics commentary, maybe you can just give a little more color on what you're seeing on the ground in terms of the impact of the macro. Are things actually getting better in the practices? Are you already seeing an increase in patient flow and maybe the macro sentiment is getting a little better over the last few months? Thanks.

Great. Thanks for taking the questions. Congrats on the quarter. So just two for me one on the alopecia Areata data you touched on earlier in the call in the press release from yesterday wondering if you can just sort of talk.

Yeah. So thanks.

Yes, Jeff so the the data's was quite impressive that you've seen from the recovery of the hair growth quite striking relative to other JAK inhibitors that we've seen report out and gain approvals. So the way that we thought about <unk> and the new indications is really sort of the third wave of how we develop that.

Talk about the commercial opportunity for that indication, obviously youre in books that are big product isn't going to get bigger, but just curious how much of an impact that can have on print book sales and then second going back to the aesthetics commentary, maybe if you can just give a little more color on what youre seeing on the ground in terms of an impact on the macro or are things that you are getting better.

Product. So we had the big rheumatology indications to start out with and we built atopic dermatitis and the IBD indications and now we had this next set of indications GCE, a lupus et cetera, which are all overlapping with with the <unk> and the room categories, where we have this exceptional strength right now so.

When the practices are.

Seeing an increase in patient flow as maybe the macro sentiment getting a little better over the last few months.

Operator: Yeah, so thanks. Yeah, it's Jeff. So the data was quite impressive that you've seen from the recovery of the hair growth, quite striking relative to other JAK inhibitors that we've seen report out and gain approvals. So the way that we thought about Rinvoq and the new indications is really sort of the third wave of how we've developed the product. So we had the big rheumatology indications to start out with, then we built atopic dermatitis and the IBD indications. And now we have this next set of indications, GCA, lupus, et cetera, which are all overlapping with the derm and the room categories where we have this exceptional strength right now. So as we build that out, it's going to be, we think, quite significant.

Yes, so thanks.

It's Jeff So the data's was quite impressive that you've seen from the recovery of the hair growth quite striking relative to other JAK inhibitors that we've seen report out and gain approvals. So the way that we've thought about RIN Vulcan and and the new indications is really sort of the third wave of how we develop the.

As we build that out it's going to be we think quite significant and we've highlighted that the collection of the next wave of indications would add approximately $2 billion two.

Peak year sales for RIN book now, we're going to have to continue to study. This because it's sort of late breaking and understand could we get more momentum coming out of the transformational quality of this data because in the research that we've had with with patients with alopecia, clearly any sort of hair recovery helps out.

So we had the big rheumatology indications to start out with and we built atopic dermatitis and the IBD indications and now we have this next set of indications GCE, a lupus et cetera, which are all overlapping with with the derm and the room categories, where we have this exceptional strength right now so as we.

Their perception of their disease, they are immune disease, but when you look at the potential to get those salt scores at that level.

Build that out it's going to be we think quite significant and we've highlighted that the collection of the next wave of indications would add approximately $2 billion to two.

Operator: And we've highlighted that the collection of the next wave of indications would add, you know, approximately $2 billion to peak your sales for Rinvoq. Now, you know, we're going to have to continue to study this because it's sort of late breaking and understand, you know, could we get more momentum coming out of the transformational quality of this data? Because in the research that we've had with patients with alopecia, clearly any sort of hair recovery helps out their perception of their disease, their immune disease. But when you look at the potential to get those SALT scores at that level, you know, could we really see more momentum than we've studied the market so far? We'll have to see.

Could we really see more momentum than we've studied the market. So far we'll have to see but net net to your point, it's a very significant strategy for us.

Peak year sales for RIN bulk now we're going to have to continue to study this because it's sort of late breaking.

That will start to play out here towards the end of the decade, starting in 'twenty six 'twenty $7 28 and.

And we're really encouraged with the data.

And understand could we get more momentum coming out of the transformational quality of this data because in the research that we've had with with patients with alopecia clearly any sort of hair recovery helps out their perception of their disease or immune disease, but when you look at the potential to get those salt scores at that level.

In terms of additional color on the aesthetic.

Seen things pretty stable.

The big issue that has come up has been really the decline across some of the major territories in the dermal filler market, so certainly given their price points patients or more.

<unk>.

Could we really see more momentum than we've studied the market. So far we'll have to see but net net to your point, it's a very significant strategy for us.

Sensitive to the price points of the fillers versus the versus the toxins versus botox, but at the same time, we've seen that the sentiment around the worry over what happens if I become overfilled or is that the look at that I want I want a more subtle.

Operator: But net-net, to your point, it's a very significant strategy for us, you know, that will start to play out here towards the end of the decade, starting in '26, '27, '28. And we're really encouraged with the data. In terms of additional color on the aesthetic, we've seen things pretty stable. The big issue that has come up has been really the decline across some of the major territories in the dermal filler market. So certainly, given their price points, patients are more sensitive to the price points of the fillers versus the toxins versus Botox. But at the same time, we've seen that the sentiment around the worry over what happens if I become overfilled or is that the look that I want? I want a more subtle, natural look.

That will start to play out here towards the end of the decade, starting in 'twenty six 'twenty $7 28.

And we're really encouraged with the data.

Natural look and so that's something that we are basically going to deal with pretty substantially here in the second half with our clinics with our thought leaders and with our trainers to make sure that the consumers can really understand you can just get exceptional results.

In terms of additional color on the aesthetic.

<unk> seen things pretty stable.

The big issue that has come up has been really the decline across some of the major territories in the dermal filler market. So certainly given their price points patients are more sensitive to the price points of the fillers versus the versus the toxins versus botox, but at the same time, we've seen that the.

Results with thermal pillars, and so we see things fairly stable, but we're going to have to do some work basically to make sure that that market sort of stabilizes and then grows over time.

Thanks, TAMO operator next question please.

Around the worry over what happens if I become overfilled or is that the look at that I want I want a more subtle.

So next question comes from Steve Scala with TV Cowen Your line is open.

Thank you so much two questions first on that kind of steady nothing you have said is particularly encouraging in the past the company has pointed to past periods of uncertainty and.

Operator: And so that's something that we are basically going to deal with pretty substantially here in the second half with our clinics, with our thought leaders, and with our trainers to make sure that the consumers can really understand you can just get exceptional results with dermal fillers. And so we see things fairly stable, but we're going to have to do some work basically to make sure that that market sort of stabilizes and then grows over time.

Pointed to the resilience of these brands have had during that period. So the question is why is this economic uncertainty different than in the past. This one seems to be lingering longer than in past periods.

Results with thermal pillars, and so we see things fairly stable, but we're going to have to do some work basically to make sure that that market sort of stabilizes and then grows over time.

Jeff Stewart: Thanks, Vamo. Operator, next question, please.

Thanks, TAMO operator next question please.

Or are there other things that work such as perhaps competition. That's also knowing away at these franchises.

Roopal Thakkar: Yes, our next question comes from Steve Scala with TD Cowan. Your line is open.

So next question comes from Steve Scala with TD Cowen Your line is open.

Mohit Bansal: Oh, thank you so much. Two questions. First, back on aesthetics, nothing you have said is particularly encouraging. In the past, the company has pointed to past periods of uncertainty and pointed to the resilience these brands have had during that period. So the question is, why is this economic uncertainty different than in the past? This one seems to be lingering longer than in past soft periods. Or are there other things at work, such as perhaps competition that's also gnawing away at these franchises? And then secondly, on the pipeline, so you have an anti-amyloid monoclonal antibody that completed a phase one trial in April. What is the status of this product, and could AbbVie go straight to a potentially registrational trial based on imaging as an endpoint? Thank you.

And then secondly on the pipeline. So you have an anti amyloid monoclonal antibody that completed a phase one trial in April what is the status of this product and could Abbvie go straight to a potentially registrational trial based on imaging as an endpoint. Thank you.

Thank you so much two questions first on that kind of steady nothing you have said is particularly encouraging in the past the company has pointed to past periods of uncertainty and.

Yes, I think.

Steve to your point I think there is a difference between this and some other areas, where we've had some economic uncertainty it's been sort of more short term recessionary issues I think I think the longer term impact on the pocket book of the consumers has just been been more chronic and we've seen that across.

Are there other things that work such as perhaps competition. That's also knowing away at these franchises.

Even just recent reports on luxury good items and significant issue. So I do think it's more chronic than we've seen before ultimately I think we'll be able to work through it we still see high levels of interest in aesthetic procedures, and we do see the target customers complain.

Operator: Yeah, I think, Steve, to your point, I think that there is a difference between this and some other areas where we've had some economic uncertainty. It's been sort of more short-term recessionary issues. I think the longer-term impact on the pocketbook of the consumers has just been more chronic. And we've seen that across, you know, even just recent reports on luxury good items and significant issues. So I do think it's more chronic than we've seen before. Ultimately, I think we'll be able to work through it. We still see high levels of interest in aesthetic procedures, and we do see the target customers, you know, complain about issues of their wallet. I also did highlight that I do think something's different in terms of the sentiment around this natural look and worry about being overfilled in terms of the dermal fillers. All of these are addressable.

Complain about issues of their of their wallet I also did highlight that I do think something is different in terms of the sentiment around this natural look and worry about being overfilled in terms of the dermal fillers. All of these are addressable and I also think that we have the we.

Yes, I think.

We have the right portfolio and we also have the right disruptive innovations, that's pretty close, particularly around the toxin space with our short acting.

Even just recent reports on luxury good items and significant issue. So I do think it's more chronic.

We've seen before ultimately I think we'll be able to work through it we still see high levels of interest in aesthetic procedures, and we do see the target customers complain.

Fast on fast off trend about E. So I do think we're set up for taking advantage of the long term recovery and we will look forward to that as we continue to progress.

Strategy.

So Steve this is ruble talking about all timers assets.

We have a monoclonal antibody in nine months, six which right out of data I would say similar to what's already available on market and that was the.

Operator: And I also think that we have the right portfolio, and we also have the right disruptive innovation that's pretty close, particularly around the toxin space with our short-acting, you know, fast-on, fast-off, trendabot-e. So I do think we're set up for, you know, taking advantage of the long-term recovery, and we'll look forward to that as we continue to progress the strategy.

Also have the right disruptive innovations, that's pretty close, particularly around the toxin space with our short acting.

Around that period, we also acquired the <unk> technology, which is a.

Fast on fast off trend of body. So I do think we're set up for taking advantage of the long term recovery and we'll look forward to that as we continue to progress.

Monoclonal similar to our nine months six in that it binds with high potency to pyro glutamate it.

Amyloid.

And that also has the blood brain barrier crossing technology.

The strategy.

Rob Michael: And Steve, this is Rupal talking about Alzheimer's assets. We have a monoclonal antibody, 916, which read out as data, I would say, similar to what's already available on the market. And that was around that period. We also acquired the Aliyada technology, which is a monoclonal similar to our 916 in that it binds with high potency to pyroglutamate amyloid. And that also has the blood-brain barrier crossing technology via the transparent receptor so we can enhance penetration into the CNS. Also, what's emerging with that asset is a relatively long half-life. Taken together, we are focused on being able to deliver that subcutaneously. And what'll happen next year is that we'll be able to get into patients with that next generational asset.

So Steve this is ruble talking about all timers assets.

Fans ferron receptor. So we can enhance penetration into the CNS also what's emerging with that asset is a relatively long half life taken together, we are focused on being able to deliver that subcutaneously and what will happen next year is that we will be able to get into <unk>.

We have a monoclonal antibody in nine months six which.

Right out as data I would say similar to what's already available on market and that was the.

Around that period.

Also acquired the <unk> technology.

Technology, which is a.

Patients with that next generational asset now jumping straight to <unk>.

Monoclonal similar to our nine months six in that it binds with high potency to pyro glutamate it.

<unk> <unk> and getting an approval based on imaging, it's probably where industry and all of US would like to go to save time I think we are still going to have to demonstrate a favorable impact on cognition, along with that and perhaps that can eventually.

Amyloid.

And that also has the blood brain barrier crossing technology via the transferrin receptor. So we can enhance penetration into the CNS also what's emerging with that asset is a relatively long half life taken together, we are focused on being able.

Imaging.

Results can eventually become a predictive biomarker, but at this stage we're planning on doing the study based on the effect that we have.

To deliver that subcutaneously and what will happen next year is that we will be able to get into patients with that next generational asset now jumping straight to <unk>.

And also.

Reading out on cognition, Steve This is Rob I just want to come back on your aesthetics question. So when I look at this business.

Rob Michael: Now, jumping straight to phase three and getting an approval based on imaging, it's probably where industry and all of us would like to go to save time. I think we are still going to have to demonstrate a favorable impact on cognition along with that, and perhaps that can eventually, that imaging result can eventually become a predictive biomarker. But at this stage, we're planning on doing the study based on the effect that we have and also reading out on cognition.

Phase III and getting an approval based on imaging, it's probably where industry and all of us would like to go to save time.

As you look at the performance I think it's important to note as you look at this is it market growth versus market share.

And the market share performance has been stable and so when I look at this.

We are still going to have to demonstrate a favorable impact on cognition, along with that and perhaps that can eventually.

Longer term.

Low pennant with low penetration rates.

Being a leader in this space and the innovation that we have coming forward.

Imaging.

Results can eventually become a predictive biomarker, but at this stage we're planning on doing the study based on the effect that we have.

Tremendous potential here gives us a lot of confidence that over the long term this will be a very good business.

Had a prolonged.

And also.

Economic headwind and again, it's the dynamic we're seeing in various markets around market growth in certain dynamics as Jeff has mentioned around dermal fillers and <unk> in certain geographies.

Reading out on cognition, Steve This is Rob I just want to come back on your aesthetics question. So when I look at this business.

Rob Michael: Steve, this is Rob. I just want to come back on your aesthetics question. So when I look at this business, as you look at the performance, I think it's important to note, you know, as you look at this, is it, you know, market growth versus market share? And the market share performance has been stable. And so when I look at this, you know, longer term, with low penetration rates being a leader in this space and the innovation that we have coming forward, there's tremendous potential here. It gives us a lot of confidence that over the long term, this is a very good business. We've had a prolonged economic headwind. And again, it's this dynamic we're seeing in various markets around market growth and certain dynamics, as Jeff has mentioned, around dermal fillers in certain geographies.

As you look at the performance I think it's important to note as you look at this is that market growth versus market share.

But that said.

Again, given our position given our ability to compete very effectively as demonstrated by the market share performance and we're very excited about the short acting toxin in a way it could one drive an inflection in terms of market growth and market share as well as the other I'd.

And the market share performance has been stable and so when I look at this.

Longer term.

Low pennant with low penetration rates.

A leader in this space and the innovation that we have coming forward, there's tremendous potential here gives us a lot of confidence that over the long term this will be a very good business.

Items in our pipeline are around fillers.

There is tremendous potential here and then there was a question asked earlier about the role that a set of tin plate and obesity and so you think about strategically.

We've had a prolonged.

Economic headwind and again, it's dynamic we're seeing in various markets around market growth in certain dynamics as Jeff has mentioned around dermal fillers and certain geographies.

We have the opportunity to play in that market as well and so longer term, we have a great deal of confidence in this aesthetics business. It's been a challenging a few years, but the performance on a market share basis has been strong as just the the market growth has been challenged and we will overcome that.

Rob Michael: But that said, again, given our position, given our ability to, I think, compete very effectively as demonstrated by the market share performance, and we're very excited about the short-acting toxin and the way it could drive an inflection in terms of market growth and market share, as well as the other items in our pipeline around fillers. There's tremendous potential here. And then there was a question asked earlier about the role that aesthetics can play in obesity. And so you think about strategically, you know, we have the opportunity to play in that market as well. And so longer term, we have a great deal of confidence in this aesthetics business. It's been a challenging few years, but the performance on a market share basis has been strong. It's just the market growth has been challenged, and we will overcome that.

But that said.

Given our position given our ability to compete.

Compete very effectively as demonstrated by the market share performance.

And we're very excited about the short acting toxin in a way it could one drive an inflection in terms of market growth and market share as well as the other.

Thanks, Steve Operator next question please.

Yes. The next question comes from Trung Nguyen with UBS. Your line is open.

Items in our pipeline are around fillers.

Thanks for the question.

So when I compare your <unk> sales to prescription trends suggest pricing is being quite favorable which seems at odds with your commentary around low single digit price concessions. The major missing pieces the contribution from Ivy IBD induction scripts. So perhaps can you give us some help on the portion of.

There is tremendous potential here and then there was a question asked earlier about the role that set a template and obesity and so you think about strategically.

We have the opportunity to play in that market as well and so longer term, we have a great deal of confidence in this aesthetics business.

It's a challenging few years, but the performance on a market share basis has been strong. It's just the market growth has been challenged and we will overcome that.

Sales from Sky receive in IBD now all percentage of number of scripts getting IBD induction and if we take that into account is that one H pricing performance consistent with the full year expectations or should we expect a more meaningful step down in pricing in the second half.

Jeff Stewart: Thanks, Steve. Operator, next question, please.

Thanks, Steve Operator next question please.

Roopal Thakkar: Yes, the next question comes from Chuang Wen with UBS. Your line is open.

Yes. The next question comes from Trung Nguyen with UBS. Your line is open.

Scott Reents: Hi, all. Thanks for the question. So when I compare your Skyrizi 2Q sales to prescription trends, it suggests pricing's been quite favorable, which seems at odds with your commentary around low single-digit price concessions. The major missing piece is the contribution from IV IBD induction scripts. So perhaps can you give us some help on the portion of sales from Skyrizi in IBD now or percentage of number of scripts getting IBD induction? And if we take that into account, is the 1H pricing performance consistent with the full-year expectations, or should we expect a more meaningful step down in pricing in the second half of the year? Thank you.

Thanks for the question.

Thank you.

Hi, its Scott let me address your question. So I think you are correct from from an overall perspective, the first half of the year. We did see some price favorability now quickly on the volume side. When you look at it IQ via data as we've spoken about in the past there is a disconnect from the induction and that really I would call that about a 10.

Sales from Sky Rajeev in IBD, now or percentage of number of scripts getting IBD induction and if we take that into account is that one H pricing performance consistent with the full year expectations or should we expect a more meaningful step down in pricing in the second half.

Differential that you need to add to what youre seeing in the data to get to the volume trends, but we still do have a favorable price in the quarter and also the first half and there's really a couple of things going on there. It is.

It really some price gating items.

We're unique we also are seeing from some of the information that we've received.

Thank you.

Speaker 11: Hi, it's Scott. Let me address your question. So I think you're correct. From an overall perspective, the first half of the year, we did see some price favorability. Now, quickly on the volume side, when you look at that IQVIA data, as we've spoken about in the past, there is a disconnect from the induction. And that really, I would call that about a 10-point differential that you need to add to what you're seeing in the data to get to the volume trend. But we still do have a favorable price in the quarter and also the first half. And there's really a couple of things going on there. It's really some price gating items that were unique.

Hi, its Scott let me address your question. So I think you are correct from from an overall perspective, the first half of the year. We did see some price favorability now quickly on the volume side. When you look at that I'd give you data as we've spoken about in the past there is a disconnect from the induction and that really I would call that about a 10.

The part D redesign impact will be a little bit more heavily weighted towards towards the back half of the year. So that was less of a headwind in the first year, but really some pricing gating items, we do expect on an overall basis that pricing to be neutral for <unk>.

And you know on a long term basis of course low single digits consists of what we've said, but this year had some anomalies in so neutral for this year you will see some negative price in the back half of the year.

Differential that you need to add to what youre seeing in the data to get to the volume trends, but we still do have a favorable price.

The quarter and also the first half and there's really a couple of things going on there.

Thanks, John.

Really some price gating items.

Operator next question please.

Speaker 11: We also are seeing from some of the information that we've received, the Part D redesign impact will be a little bit more heavily weighted towards the back half of the year. So that was less of a headwind in the first year. But really some pricing gating items. We do expect on an overall basis that pricing to be neutral for Skyrizi. And, you know, on a long-term basis, of course, you know, low single digits consistent with what we've said. But this year had some anomalies. And so neutral for this year, you will see some negative price in the back half of the year.

We're unique we also are seeing from some of the information that we've received.

Yes. The next question comes from Gary Nachman with Raymond James Your line is open.

Thanks, Good morning, and nice quarter. So first also on currency what are you seeing regarding the competitive dynamics in the IL 23 class, especially with J&J is from fire with their new IBD approvals, if thats impacting at all.

And on a long term basis of course low single digits consistent what we've said, but this year had some anomalies in so neutral for this year you will see some negative price in the back half of the year.

Or is there just a ton of headroom in the IBD market to absorb that.

And then on narrow it was very strong in <unk> is that mainly volume demand driven across the various products any changes with gross to nets that are worth, noting and how much more have you been investing behind the neuro franchise overall, given such strong growth that you've been seeing there. Thank you.

Jeff Stewart: Thanks, Chuang. Operator, next question, please.

Thanks, John.

Operator next question please.

Roopal Thakkar: Yes, the next question comes from Gary Knockner with Raymond James. Your line is open.

Yes. The next question comes from Gary Nachman with Raymond James Your line is open.

Mohit Bansal: Thanks. Good morning and nice quarter. So first, also on Skyrizi, what are you seeing regarding the competitive dynamics in the IL-23 class, especially with J&J's Tremfya with their new IBD approvals, if that's impacting it all, or is there just a ton of headroom in the IBD market to absorb that? And then on Neuro, it was very strong in 2Q. Is that mainly volume demand driven across the various products? Any changes with gross to net that are worth noting? And how much more have you been investing behind the Neuro franchise overall, given such strong growth that you've been seeing there? Thank you.

Yes. So thanks for your question on <unk> and the competition.

We're quite.

Pleased again with the overall performance their head to head trials, our ability to think about the dosing in the convenience and the safety profile of <unk> is just fantastic across.

Or is there just a ton of headroom in the IBD market to absorb that.

And then on neuro it was very strong in <unk> is that mainly volume demand driven across the various products any changes with gross to nets that are worth, noting and how much more have you been investing behind the neuro franchise overall, given such strong growth that you've been seeing there. Thank you.

IBD that we've highlighted multiple times and I think your point is consistent with how we think about how this market will develop over time and I think I've highlighted it before there is actually that the launches of the 'twenty threes really sky Rishi first and now from five or so new you really have single digit patient share.

Operator: Yeah, so thanks for your question on Skyrizi and the competition. We're quite pleased, again, with the overall performance, their head-to-head trials, our ability to think about the dosing and the convenience and the safety. The profile of Skyrizi is just fantastic across IBD that we've highlighted multiple times. And I think your point is consistent with how we think about how this market will develop over time. And I think I've highlighted it before. There's actually the launches of the 23s, really Skyrizi first and now Tremfya, are so new, you really have single-digit patient share capture. This is for total patient share. We saw the same dynamic in psoriasis where you look at it, it was that way in 2018, 2019. Now, 60% of the entire market of patients is in the IL-23 category.

Yes. So thanks for your question on <unk> and the competition.

Capture this is for total patient share we saw the same dynamic in psoriasis, where you look at it it was that way in 2018 2019 now 60% of the entire market of patients is in the IL 23 categories. So to your point Theres plenty of headroom. When you look at the profile of these agents and certainly for.

We're quite pleased.

Pleased again with the overall performance their head to head trials, our ability to think about the dosing in the convenience and the safety profile of <unk> is just fantastic across.

IBD that we highlighted multiple times and I think your point is consistent with how we think about how this market will develop over time and I think I've highlighted it before there is actually that the launches of the 'twenty threes really sky Rishi first and now from five or so new you really have single digit patient share.

Our capture rate standpoint, we believe that <unk> will do very very well relative to the peers and the IL 23 category, having said that we.

We prudently would allocate a certain amount of share capture from a competitor like Trump fire. So hopefully that will help give the perspective certainly the macros perspective is important there.

Capture this is for total patient share we saw the same dynamic in psoriasis, where you look at it it was that way in 2018 2019 now 60% of the entire market of patients is in the IL 23 categories. So to your point there is plenty of headroom. When you look at the profile of these agents and certainly from.

And then in terms of of the neuro business Youre right strong growth rates across the board. Most of that is is volume and promotion. If you look at the migraine business, we have the leading business across all three segments of that category. So we're number one in acute with <unk> number one and prevention.

Operator: So to your point, there's plenty of headroom when you look at the profile of these agents. And certainly, from a capture rate standpoint, we believe that Skyrizi will do very, very well relative to the peers in the IL-23 category. Having said that, you know, we prudently would allocate a certain amount of share capture from a competitor like Tremfya. So hopefully, that'll help give the perspective. Certainly, the macro perspective is important there. And then in terms of the Neuro business, you're right, strong growth rates across the board. Most of that is volume and promotion. If you look at the migraine business, we have the leading business across all three segments of that category. So we're number one in acute with Ubrelvi, number one in prevention with Qulipta, and for chronic migraine where you have the injectors for Botox therapeutic there as well. So there's no cannibalization.

Capture rate standpoint.

We believe that <unk> will do very very well relative to the peers and the IL 23 category having.

With <unk> and for chronic migraine, where you have the injectors for botox therapeutic there as well. So there is no cannibalization all of them grow very well, we have super powerful share of voice out there.

Having said that we.

We prudently would allocate a certain amount of share capture from a competitor like Trump fire. So hopefully that'll help give the perspective certainly the macros perspective is important there.

That is helping to drive all of that and you've heard the comments of course on <unk> and <unk> as well Scott can highlight also sort of the mix in the quarter on price versus volume sure happy to I mean, it's a great question I mean, as Jeff said the volume is really driving this business. When you think about our two largest brands.

And then in terms of the neuro business Youre right, Doug strong growth rates across the board. Most of that is is volume and promotion. If you look at the migraine business, we have the leading business across all three segments of that category. So we're number one in acute with <unk> number one and prevention.

<unk> and Botox therapeutics those are both double digit.

Did see a little bit of a price benefit from Brio, our particular as we look at the part D redesign impacts so we have a little bit of price favorability, but railroad in particular double digit growth in volume for the year double digit every quarter and we're really seeing that across the board on the gross to net side I would say that especially in the oral <unk> space.

With cue lips and for chronic migraine, where you have the injectors for botox therapeutic there as well. So there is no cannibalization all of them grow very well, we have super powerful share of voice out there.

Operator: All of them grow very well. We have super powerful share of voice out there that's helping to drive all of that. And you've heard the comments, of course, on Violev and Brelar as well. Scott can highlight also sort of a mix in the quarter on price versus volume.

<unk>, we continue to work very closely on the co pays and making sure that we're getting the right gross of that and we've been very happy with that progress. So theres a little bit of benefit there coming across but these are this is a volume driven business at a volume driven therapeutic area and maybe in terms of investment going forward, we obviously have substantial investment in.

Speaker 11: Sure, AbbVie. I mean, it's a great question. I mean, as Jeff said, the volume is really driving this business. When you think about our two largest brands, Brelar and Botox Therapeutics, those are both double-digit. You did see a little bit of a price benefit from Brelar in particular as we look at the Part D redesign impact. So we have a little bit of price favorability. But, you know, Brelar in particular, double-digit growth and volume for the year, double-digit every quarter. And we're really seeing that across the board. On the gross net side, I would say that especially in the oral CGRP space, Ubrelvi, Qulipta, we continue to work very closely on the copays and making sure that we're getting the right gross to net. And we've been very happy with that progress. So there's a little bit of benefit there coming across.

<unk> and Botox therapeutics those are both double digit yeah.

Did see a little bit of a price benefit from Brio, our particular as we look at the part D redesign impacts. So we had a little bit of price favorability, but railroad in particular double digit growth in volume for the year double digit every quarter and we're really seeing that across the board on the gross net side I would say that especially in the oral <unk> space.

In the therapeutic area now, but it can take more investment for example, we are significantly ramping the investment in the U S. For <unk>, we would be anticipating to vapid, Don as I highlighted in my remarks. This is also shaping up to be a very important product.

That'll be true up to we continue to work very closely on the co pays and making sure that we're getting the right gross to that and we've been very happy with that progress. So theres a little bit of benefit there coming across but these are this is a volume driven business at a volume driven therapeutic area and maybe in terms of investment going forward. We obviously have substantial investment in the.

This is the oral medication that will be used prior to two via lab and so we're planning.

<unk> force expansions on that front.

Speaker 11: But this is a volume-driven business in a volume-driven therapeutic area.

And certainly ruble and I both highlighted the study versus Topiramate now Topiramate basically is 40% to 50% of all the generics and the preventative space and so we will also be assessing on whether or not more representation.

Operator: And maybe in terms of investment going forward, we obviously have substantial investment in the therapeutic area now, but it can take more investment. For example, we are significantly ramping the investment in the US for Violev. We would be anticipating Tevapodon, as I highlighted in my remark. This is also shaping up to be a very important product. This is the oral medication that will be used, you know, prior to Violev. And so we're planning salesforce expansions on that front. And certainly, Rupal and I both highlighted the study versus topiramate. Now, topiramate basically is 40% to 50% of all the generics in the preventative space. And so we will also be assessing on whether or not more representation might enable Qulipta to basically start to power forward over the long-range plan. But that approach is underway.

Might enable Q liptak basically start to power forward over the long range plan, but that that that approach is underway, but at a macro level. We certainly want to continue to invest into the neuroscience growth rates that we're seeing.

This is the oral medication that will be used prior to <unk> bio lab and so we're planning.

This is Rob I mean, I think it's an important question because we are obviously going to fully invest in neuroscience. It's our second largest therapeutic area. It's the fastest growing in our portfolio. In fact, we expect to be the largest neuroscience company in the industry next year, we clearly had a very strong positions in psych in migraine and emerging leadership position in Parkinson's.

<unk> force expansions on that front.

With Violet <unk> as Jeff mentioned, and we also have an opportunity to drive advancement in Alzheimers treatment through the IATA platform you've seen us.

Might enable cue lips to basically start to power forward over the long range plan, but that that that that approach is underway, but at a macro level. We certainly want to continue to invest into the neuroscience growth rates that we're seeing.

Operator: But at a macro level, we certainly want to continue to invest into the neuroscience growth rates that we're seeing.

Of course of the last several years.

Invest in external innovation.

We've highlighted the gedeon Richter.

Rob Michael: Yeah, this is Rob. I mean, I think it's an important question because we are obviously going to fully invest in neuroscience. It's our second largest therapeutic area. It's the fastest growing in our portfolio. In fact, we expect to be the largest neuroscience company in the industry next year. We clearly have very strong positions in psych and migraine and emerging leadership position in Parkinson's with Violev and Tevapodon, as Jeff mentioned. And we also have an opportunity to drive advancement in Alzheimer's treatment through the Aliyada platform. You've seen us, you know, over the course of the last several years invest in external innovation. You know, we've highlighted the Gideon-Richter discovery collaboration in psych, the Gilgamesh opportunity that we entered into last year in mood disorders. I have mentioned Aliyada, very excited about that next generation A-beta antibody in Alzheimer's, again, with a unique shuttle platform.

Discovery collaboration and Cyc.

This is Robert I mean, I think it's an important question because we are obviously going to fully invest in neuroscience. It's our second largest therapeutic area. It's the fastest growing in our portfolio. In fact, we expect to be the largest neuroscience company in the industry next year.

Yoga launch opportunity that we entered into last year in mood disorders, I haven't mentioned Alloeotic very excited about that next generation a beta antibody.

Alzheimer's again with a unique shuttle platform and then.

Clearly had a very strong positions in psych in migraine and emerging leadership position in Parkinson's with by 11 to that but on as Jeff mentioned and we also have an opportunity to drive advancement in Alzheimers treatment through the <unk> platform you've seen us.

Discussed earlier today.

Sigh RNA opportunity eight Rx will play a role in neuroscience as well and so we are fully investing in neuroscience we.

Look forward to maintaining our leadership position there. It's obviously performing exceptionally well you saw across the board every brand exceeded expectations in neuroscience this quarter.

Of course, the last several years.

Invest in external innovation.

We've highlighted that getting Richter.

And we're going to keep fueling that engine.

Discovery collaboration and Cyc.

Thanks, Gary Operator, we have time for one final question.

The <unk> opportunity that we entered into last year in mood disorders, I Hope mentioned Aliano very excited about that next generation a beta antibody.

Okay, and then last question come from Hasan <unk> with Goldman Sachs. Your line is open.

Alzheimer's again with a unique shuttle platform and then.

Great. Thanks, and congrats on yet another solid set of results I think most of my questions have been answered at this point just one bigger pick a bigger picture question on the oncology franchise, maybe for Grupo <unk>.

Rob Michael: And then, as I discussed earlier today, the siRNA opportunity, ARX, will play a role in neuroscience as well. And so we are fully investing in neuroscience. We look forward to maintaining our leadership position there. It's obviously performing exceptionally well. You saw across the board that every brand exceeded expectations in neuroscience this quarter. And we're going to keep fueling that engine.

Discussed earlier today.

Sigh RNA opportunity eight Rx will play a role in neuroscience as well and so we are fully investing in neuroscience we.

You've mentioned that you are watching the PD one VEGF class just curious if you have any updated thoughts on the broader landscape. How abbvie is positioned and given there's been a lot of there's been a lot of BD activity that what would it take for Abbvie to make a move yes. Thank you.

Look forward to maintaining our leadership position there. It's obviously performing exceptionally well you saw across the board every brand exceeded expectations in neuroscience this quarter.

And we're going to keep fueling that engine.

Yeah.

Jeff Stewart: Thanks, Gary. Operator, we have time for one final question.

Yes, it's rupal so yes.

Thanks, Gary Operator, we have time for one final question.

We're monitoring of that class of several assets.

Roopal Thakkar: OK. And then last question comes from Asad Haider with Goldman Sachs. Your line is open.

Okay, and then last question come from Hasan <unk> with Goldman Sachs. Your line is open.

That are revealing data overtime, but it is something that we're interested in and looking and in particular, how we think about that is what can partner well with our internal ADC platform.

Scott Reents: Great. Thanks. And congrats on yet another solid set of results. I think most of my questions have been answered at this point. Just one bigger picture question on the oncology franchise, maybe for Rupal. You've mentioned that you're watching the PD-1 VAJEP class. Just curious if you have any updated thoughts on the broader landscape, how AbbVie is positioned. And given there's been a lot of BD activity there, what would it take for AbbVie to make a move there? Thank you.

Great. Thanks, and congrats on yet another solid set of results I think most of my questions have been answered at this point just one pick up pick a bigger picture question on the oncology franchise, maybe for Grupo <unk>.

You've mentioned that you are watching the PD one by Jeff class. Just curious if you have any updated thoughts on the broader landscape, how apnea position and given there's been a lot of that's been a lot of BD activity that what would it take for happy to make a move yes. Thank you.

And I think this could that mechanism of that class could create an opportunity.

And how we think about adcs as we look for a good target we look for high tumor expression of that target versus what we would observe on healthy tissue that can allow for potential patient selection using biomarkers if appropriate that allows you to optimize the benefit risk and enhance tolerability.

Yeah.

Mohit Bansal: Yeah, it's Rupal. So yeah, you know, we're monitoring that class. There's several assets that are revealing data over time. But it is something that we're interested in and looking. And in particular, how we think about that is what can partner well with our internal ADC platform. And I think this could, that mechanism or that class could create an opportunity. And how we think about ADCs is, you know, we look for a good target. We look for high tumor expression of that target versus what we would observe on healthy tissue that can allow for potential patient selection using biomarkers if appropriate. That allows you to optimize benefit risk and enhance tolerability.

Yes, so yes, we.

We're monitoring that class of several assets.

Revealing data overtime, but it is something that we're interested in and looking and in particular, how do we think about that is what can partner well with our internal ADC platform.

The platform that we have with the linker technology and emerging total warhead, we're seeing I would.

Say very little spill, meaning low rates of alopecia stomatitis diarrhea, the things that you see with chemo and some other adcs, So safety and Tolerability are critical as a strategy and if we see a partner asset that we can combine with <unk>.

And I think this could that mechanism of that class could create an opportunity.

A variety of different indications.

That is something that we would be interested in for sure.

Thanks, It's odd that concludes today's conference call, if you'd like to listen to a replay of the call. Please visit our website at investors that Abbvie dot com. Thanks again for joining us.

Mohit Bansal: The platform that we have with the linker technology and our merging Topo Warhead, we're seeing, I would say, very little spill, meaning low rates of alopecia, stomatitis, diarrhea, the things that you see with chemo and some other ADCs. So safety and tolerability are critical as a strategy. And if we see a partner asset that we can combine with in a variety of different indications, that is something that we would be interested in for sure.

The platform that we have with the linker technology and emerging total warhead, we're seeing.

I say very little spill, meaning low rates of alopecia stomatitis diarrhea, the things that you see with chemo and some other adcs, So safety and Tolerability are critical as a strategy and if we see a partner asset that we can combine with.

Thank you that concludes today's conference you may all disconnect at this time.

A variety of different indications.

That is something that we would be.

Interested in for sure.

Jeff Stewart: Thanks, Asad. 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.

Thanks Hassan that concludes today's conference call, if you'd like to listen to a replay of the call. Please visit our website at investors that Abbvie dot com. Thanks again for joining us.

Roopal Thakkar: Thank you. That concludes today's conference. You may all disconnect at this time.Good

Thank you that concludes today's conference you may all disconnect at this time.

[music].

Okay.

[music].

Liz Shea: morning, and thank you for standing by. Welcome to AbbVie's second quarter 2025 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.

Good morning, and thank you for standing by welcome to Abbvie second quarter 2025 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'd now like to introduce MS. Liz Shea Senior Vice President.

The relations Ma'am you may begin.

Rob Michael: Thank you. Good morning, and thanks for joining us. Also on the call with me today are Rob Michael, Chairman and Chief Executive Officer; Jeff Stewart, Executive Vice President, Chief Commercial Officer; Roopal Thakkar, Executive Vice President, Research and Development, Chief Scientific Officer; and Scott Reents, Executive Vice President, Chief Financial Officer. 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.

Thank you good morning, and thanks for joining US also on the call with me today are Rob Michael Chairman and Chief Executive Officer, Jeff Stuart Executive Vice President Chief Commercial Officer, Ruble Soccer Executive Vice President Research and development, Chief Scientific Officer, and Scott <unk> Executive Vice President Chief Financial Officer.

Where we get started I'll note that some statements we make today may be considered forward looking statements based on our current expectations.

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 <unk>.

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 financial measures will be used to help investors understand the OE business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures.

Rob Michael: These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your question. So with that, I'll turn the call over to Rob.

Our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we will take your questions. So with that I'll turn the call over to Rob.

Scott Reents: Thank you, Liz. Good morning, everyone, and thank you for joining us. AbbVie delivered another outstanding quarter with results exceeding our expectations. We are making excellent progress advancing our pipeline and adding more depth through strategic transactions that support our long-term growth. Turning to our second quarter performance, we delivered adjusted earnings per share of $2.97, which is 11 cents above our guidance midpoint. Total net revenues were $15.4 billion, more than $400 million ahead of our expectation. This overachievement includes sales growth of 22% from our ex-Humira platform, with continued robust performance from Skyrizi and Rinvoq, which are now on pace to deliver more than $25 billion in combined sales this year, well above our initial expectation. We also delivered strong double-digit growth from neuroscience, driven by Brelar, Vylev, and our leading migraine portfolio.

Good morning, everyone and thank you for joining us abbvie delivered another outstanding quarter with results exceeding our expectations, we are making excellent progress advancing our pipeline and adding more depth through strategic transactions that support our long term growth.

Turning to our second quarter performance, we delivered adjusted earnings per share up $2.97, which is 11 cents above our guidance midpoint.

Total net revenues were $15 4 billion.

More than $400 million ahead of our expectations.

This over achievement includes sales growth up 22% from our ex Humira platform with continued robust performance from Sky, Rosie and RIN bulk, which are now on pace to deliver more than $25 billion in combined sales this year well above our initial.

Patient.

We also delivered strong double digit growth from neuroscience, driven by railcar viola and our leading migraine portfolio.

Scott Reents: Based on our momentum through the first half of the year, we are raising guidance for the second time. We now expect full-year revenue of $60.5 billion, an increase of $800 million. We have now raised our revenue guidance by $1.5 billion since the start of the year. We are also raising our full-year adjusted earnings per share guidance by 21 cents and now expect adjusted EPS between $11.88 and $12.08. In addition to our strong financial results, we are making great progress with our R&D pipeline across all stages of development. Notable highlights from our late-stage programs include the recent approvals of Emerilis for non-squamous, non-small cell lung cancer and Rinvoq for GCA, the regulatory submission of Trinobot-E, a first-in-class short-acting toxin in aesthetics, as well as highly differentiated phase three results in alopecia areata, a potential 10th indication for Rinvoq in the US.

Based on our momentum through the first half of the year, we are raising guidance for the second time, we now expect full year revenue up $65 billion, an increase of 800 million. We have now raised our revenue guidance by one 5 billion since the start of the.

A year.

We are also raising our full year adjusted earnings per share guidance by <unk> 21.

And now expect adjusted EPS between $11 88 and.

And $12 eight.

In addition to our strong financial results, we are making great progress with our R&D pipeline across all stages of development. Notable highlights from our late stage programs include the recent approvals of Emerald lists for non squamous non small cell lung cancer and <unk>.

<unk> for <unk>.

The regulatory submission uptrend about E. A first in class short acting toxin and aesthetics as well as highly differentiated phase III results in alopecia or you're out of a potential 10th indication for <unk> in the U S.

Scott Reents: We are also focused on augmenting our pipeline with therapies and platform technologies that have the potential to elevate the standard of care for patients. These include promising early-stage programs that have the potential to drive growth for AbbVie in the next decade. We have executed more than 30 business development transactions since the beginning of last year. Our recent activity includes closing the agreement with Gubra for a long-acting amylane analog in the treatment of obesity, as well as announcing our planned acquisition of Capstan Therapeutics, giving us an in vivo CAR-T platform that can further strengthen our immunology pipeline. We also en-licensed ISB2001, a novel tri-specific antibody for multiple myeloma, and we announced the collaboration with ARX to develop next-generation siRNA therapies across multiple disease areas, including immunology, neuroscience, and oncology.

We are also focused on augmenting our pipeline with therapies and platform technologies that have the potential to elevate the standard of care for patients.

These include promising early stage programs that have the potential to drive growth for Abbvie in the next decade.

We have executed more than 30 business development transactions since the beginning of last year.

We also in licensed ISP 2001, a novel bi specific antibody for multiple myeloma, and we announced the collaboration with <unk> to develop next generation S. I RNA therapies across multiple disease areas, including immunology neuroscience and oncology.

Apology.

Scott Reents: In summary, I'm very pleased with the performance of our business and the progress we are making against our long-term strategy. AbbVie's outlook is strong, and we are well positioned to deliver on our commitments in 2025 and beyond. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?

In summary, I'm very pleased with the performance of our business and the progress we are making against our long term strategy.

Jeff Stewart: Thank you, Rob. I'll start with the quarterly results for immunology, which delivered total revenues of more than $7.6 billion. Skyrizi continues to demonstrate impressive growth. Global sales were $4.4 billion, up 61.8% on an operational basis. We continue to capture robust in-play patient share in psoriatic disease. In the US, this includes clear leadership in psoriasis across all lines of therapy versus both biologics and oral agents, as well as continued strong performance in the PSA derm setting, with frontline in-play share leadership more than double the next closest biologic or oral therapy. Globally, Skyrizi continues to grow and achieve total psoriatic disease market leadership in numerous major markets around the world. I'm also very pleased with Skyrizi's performance in IBD, where we are on track to double our sales this year.

Sky really continues to demonstrate impressive growth global sales were $4 4 billion up 61, 8% on an operational basis.

We continue to capture robust in play patient share in Psoriatic disease in the U S. This includes clear leadership in psoriasis across all lines of therapy versus both biologics and oral agent.

As well as continued strong performance in the PSA derm setting with frontline in play share leadership more than double the next closest biologic oral therapy.

Globally <unk> continues to grow and achieve total psoriatic disease market leadership and numerous major markets around the world.

I'm also very pleased with <unk> performance in IBD, where we are on track to double our sales. This year in the U S. We continue to capture more than a third of newest switching patients in crohn's disease and.

Jeff Stewart: In the US, we continue to capture more than a third of new or switching patients in Crohn's disease and nearly 20% of new or switching patients in ulcerative colitis. As we look ahead, we feel very confident in Skyrizi's profile, including compelling efficacy, safety, and dosing. And our very robust head-to-head program, where we have demonstrated superiority and clear differentiation against multiple novel therapies, sets a high bar for comparison. So as we do compare our current dynamic share to total prescription share, it's clear there is still a substantial opportunity for continued total share gain across all of Skyrizi's indications over time, especially in ulcerative colitis and Crohn's disease, which are still earlier in their launch trajectory. Turning now to Rinvoq, which is also demonstrating outstanding growth.

Nearly 20% of newer switching patients in ulcerative colitis.

As we look ahead, we feel very confident in <unk> profile, including compelling efficacy safety and dosing and are very robust head to head program, where we have demonstrated superiority and clear differentiation against multiple novel therapies sets a high bar for comparison.

So as we do compare our current dynamic shared a total prescription share. It's clear there is still a substantial opportunity for continued total share gain across all our sky Sky receives indications over time, especially in ulcerative colitis, and Crohn's disease, which are still earlier in their launch trajectory.

Turning now to <unk>, which is also demonstrating outstanding growth.

Jeff Stewart: Global sales were $2 billion, up 41.2% on an operational basis, as we continue to see nice momentum across all of Rinvoq's indications. Uptake in IBD continues to be very strong. In the US, Rinvoq's in-play patient share across all lines of therapy for both ulcerative colitis and Crohn's disease is second only to Skyrizi among branded medicines. So as a portfolio, Rinvoq and Skyrizi together are capturing one out of every two in-play Crohn's disease patients and one out of every three in-play UC patients in the US, a very strong combined leadership position in gastroenterology for AbbVie. I'd also highlight that we are making excellent progress with Rinvoq's global launch in giant cell arteritis, our sixth indication in rheumatology. Initial prescription trends, as well as feedback from rheumatologists, have been positive, with access in the US expected to ramp quickly over the rest of the year.

Mobile sales were $2 billion up 41, 2% on an operational basis as we continue to see nice momentum across all of <unk> indications.

Uptake in IBD continues to be very strong in the U S. <unk> in play patient share across all lines of therapy for both ulcerative colitis and Crohn's disease.

Only to Sky Rizzi among branded medicines.

So as a portfolio <unk> together are capturing one out of every two in play Crohn's disease patients and one out of every three in plate UC patients in the U S. A very strong combined leadership position in gastroenterology for Abbvie.

I'd also highlight that we are making excellent progress with <unk> global launch in giant cell arteritis or six indications in rheumatology initial prescription trends as well as feedback from Rheumatologists has been positive with access in the U S expected to ramp quickly over the rest of the year.

Jeff Stewart: Finally, we announced impressive phase three results in alopecia areata, a chronic autoimmune disease leading to unpredictable hair loss with nearly 2 million diagnosed patients globally. Alopecia areata, as well as the next wave of diseases, including vitiligo, HS, and lupus, would expand Rinvoq's treatment in both dermatology and rheumatology, areas where we already have very strong call points with Rinvoq's core indications. Turning now to Humira, which delivered global sales of more than $1.1 billion, down 58.2% on an operational basis, reflecting biosimilar competition. We anticipate Humira access in the US will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients. Moving to oncology, which delivered total revenues of nearly $1.7 billion, Imbruvica global sales were $754 million, down 9.5%, reflecting continued competitive dynamics in CLL, partially offset by higher persistency rates for existing patients.

Finally, we announced impressive phase III results in alopecia, areata and chronic autoimmune disease, leading to unpredictable hair loss with nearly 2 million diagnosed patients globally.

Turning now to Humira, which delivered global sales of more than $1 1 billion down 58, 2% on an operational basis, reflecting biosimilar competition.

We anticipate humira access in the U S will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients.

Moving to oncology, which delivered total revenues of nearly $1 7 billion.

<unk> global sales were $754 million down nine 5%, reflecting continued competitive dynamics in CLO, partially offset by higher persistency rates for existing patients.

Jeff Stewart: Venclexta global revenues were $691 million, up 8.3% on an operational basis. This reflects strong demand in CLL with combination use of Venclexta plus BTK inhibitors emerging as a preferred fixed duration treatment. We are also seeing nice momentum from Elahir and Abkhinli, with both delivering double-digit revenue growth. And we are early in the US launch of Imrelis, our newest ADC for previously treated non-squamous, non-small cell lung cancer patients. This commercialization will help to establish CMET expression as a valid biomarker in non-small cell lung cancer and also build AbbVie's presence more broadly in solid tumors, where we have several promising next-generation ADCs in development, including TMabA, which shares the same CMET target. Turning now to aesthetics, which delivered global sales of nearly $1.3 billion, down 8% on an operational basis.

We are also seeing nice momentum from Ella here and are keenly with both delivering double digit revenue growth.

And we are early in the U S launch of <unk>, our newest ADC for previously treated non squamous non small cell lung cancer patients. This commercialization will help to establish C met expression as a valid biomarker and non small cell lung cancer and also build abbvie presence more broadly in solid tumor.

Where we have several promising next generation Adcs in development, including team at Bay, which shares the same C met target.

Turning now to aesthetics, which delivered global sales of nearly $1 3 billion down 8% on an operational basis.

Jeff Stewart: Botox cosmetic global revenues were $692 million, and Juvederm global sales were $260 million, with growth rates for both products down on an operational basis. Consistent with the past few quarters, economic challenges and lower overall consumer sentiment have impacted the aesthetics market, which continues to perform below historical levels. As noted on the first quarter call, we moderated our assumptions for near-term category growth globally, which is tracking largely in line with our expectations. From a competitive perspective, our facial injectable portfolio remains the clear leader with strong market shares globally. Our progress with the Ally Loyalty program is going well, and we have robust plans underway to support patient activation. This includes a new Botox consumer campaign in the US with ramping second-half investment, continued injector training globally, and bringing new products to market like Trinobot-E, our fast-acting short-duration toxin, with commercialization expected next year.

Botox cosmetic global revenues were $692 million in Jupiter global sales were $260 million with growth rates for both products down on an operational basis.

<unk> with the past few quarters economic challenges and lower overall consumer sentiment has impacted the aesthetics market, which continues to perform below historical levels.

As noted on the first quarter call, we moderated our assumptions for near term category growth globally, which was tracking largely in line with our expectations.

From a competitive perspective, our facial injectable portfolio remains the clear leader with strong market shares globally, our progress with the loyalty program is going well and we have robust plans underway to support patient activation.

This includes a new botox consumer campaign in the U S with ramping second half investment.

Continued injector training globally, and bringing new products to market like <unk> E. Our fast acting short duration toxin with commercialization expected next year.

Jeff Stewart: So as economic conditions improve from current levels, we remain very well positioned for growth over the long term in the aesthetics category. Moving now to neuroscience, our second largest therapeutic area, where we continue to demonstrate robust growth. Total revenues were approximately $2.7 billion, up 24% on an operational basis. This exceptional performance is driven by continued double-digit operational growth of Brelar, with global sales of $900 million, up 16.3%; Botox Therapeutic, with global revenues of $928 million, up 14.2%; Ubrelvi, with global sales of $338 million, up 47.2%; and Qulipta, with global revenues of $267 million, up 76.9%. Importantly, we recently announced positive results from the head-to-head Temple study comparing Qulipta to topiramate for migraine prevention. Temple demonstrated that Qulipta had fewer treatment discontinuations attributed to adverse events, as well as a significant reduction in migraine days versus topiramate.

So as economic conditions improve from current levels, we remained very well positioned for growth over the long term and the aesthetics category.

Moving now to neuroscience, our second largest therapeutic area, where we continue to demonstrate robust growth total revenues were approximately $2 7 billion up 24% on an operational basis. This exceptional performance is driven by continued double digit operational growth of.

Railcar with global sales of $900 million up 16, 3% botox therapeutic with global revenues of $928 million up 14, 2%.

<unk> with global sales of $338 million up 47, 2%.

<unk> Liptak with global revenues of $267 million up 76, 9%.

Importantly, we recently announced positive results from the head to head Temple study comparing Q lifted two topiramate for migraine prevention.

Temple demonstrated that <unk> had fewer treatment discontinuation attributed to adverse events as well as the significant reduction in migraine days versus Topiramate.

Jeff Stewart: Given the high use of topiramate as a frontline treatment for migraine prevention, we anticipate these strong results will support earlier adoption of Qulipta. Moving to Parkinson's disease, I'm very pleased with the performance of Vylev, where the global launch is off to an excellent start. Total sales were $98 million, up 56% on a sequential basis. Feedback from movement disorder specialists has been overwhelmingly positive, with uptake across the international markets exceeding our expectations. Looking forward, we believe our emerging Parkinson's disease portfolio, with Vylev, Duodopa, and Tavapodon forthcoming, has the collective potential to be a multi-billion dollar opportunity over the long term. So overall, I'm very pleased with the execution and continued strong performance across our commercial portfolio. And with that, I'll turn the call over to Roopal for comments on our R&D highlights. Roopal?

Given the high use of Topiramate as a frontline treatment for migraine prevention. We anticipate these strong results will support earlier adoption of <unk>.

Moving to Parkinson's disease, I'm very pleased with the performance of <unk>, where the global launch is off to an excellent start total sales were $98 million up 56% on a sequential basis.

Feedback from movement disorder specialists has been overwhelmingly positive with uptake across the international markets exceeding our expectations.

Looking forward, we believe our emerging Parkinson's disease portfolio with viola two adult and <unk> forthcoming has the collective potential to be a multibillion dollar opportunity over the long term.

Roopal Thakkar: Thank you, Jeff. Starting with immunology, where we continue to make meaningful progress advancing our pipeline, with several regulatory and clinical milestones since the last earnings call. FDA approval was granted for Rinvoq in GCA, representing our sixth rheumatology indication. Additionally, top-line data from the first phase three Rinvoq alopecia areata trial were just announced. In the study, Rinvoq met the primary and key secondary endpoints, demonstrating a statistically significant improvement in hair regrowth across both Rinvoq doses compared to placebo. Baseline scalp coverage prior to treatment was approximately 16%. In the Rinvoq 30 milligram group, 54% of patients reached 80% or more scalp hair coverage, and 47% reached 90% or more coverage at 24 weeks. A robust effect was also demonstrated with Rinvoq 15 milligrams. These are truly transformative results and compare very favorably to the efficacy shown in pivotal trials for other JAK inhibitors.

Thank you Jeff.

Starting with immunology, where we continue to make meaningful progress advancing our pipeline with several regulatory and clinical milestones since the last earnings call.

Approval was granted for Rainbow in GTA, representing our sixth rheumatology indication. Additionally, topline data from the first phase III Ringbark Alopecia Areata trial were just announced.

In this study Ringbolt met the primary and key secondary endpoints, demonstrating a statistically significant improvement in hair regrowth across both.

Doses compared to placebo.

Baseline scalp coverage prior to treatment was approximately 16%.

In the Rainbow 30 milligram group, 54% of patients reached 80% or more scale hair coverage and 47% reached 90% or more coverage at 24 weeks a robust effect was also demonstrated with <unk> 15 milligrams.

These are truly transformative results and compare very favorably to the efficacy of <unk> in pivotal trials for other JAK inhibitors.

Roopal Thakkar: The placebo-adjusted SALT20 and 10 scores for Rinvoq 30 milligrams were approximately 20 percentage points above the rates for the highest approved doses of other JAK inhibitors. For the Rinvoq 15 milligram group, rates were approximately 10 points above. We are very pleased with these results, which certainly surpassed our expectations. Results from a second phase three alopecia areata study are anticipated in the third quarter, followed by regulatory submissions starting later this year. The vitiligo program for Rinvoq is also nearing completion, with top-line results from phase three studies expected later this year. External innovation has supported expansion of our growing immunology pipeline. We recently announced plans to acquire Capstan. Their novel platform allows for in-vivo programming of cells through mRNA delivery using targeted lipid nanoparticles. Capstan's lead asset, currently in phase one, generates CD19-specific, CD8-positive in-vivo CAR-T cells.

Placebo adjusted Salt 20, and 10 scores for Ringbark 30 milligrams, where approximately 20 percentage points above the rates for the highest approved doses of other JAK inhibitors.

For the <unk> 15 milligram group rates were approximately 10 points above.

We are very pleased with these results, which certainly surpassed our expectations.

Results from a second phase III alopecia Areata study are anticipated in the third quarter, followed by regulatory submissions starting later this year.

The <unk> program for <unk> book is also nearing completion with top line results from Phase III studies expected later this year.

External innovation has supported expansion of our drawing immunology pipeline, we recently announced plans to acquire capstone.

There are novel platform allows for in vivo programming of cells through mrna delivery using targeted lipid nanoparticles.

<unk> lead asset currently in phase one generate CD 19 specific CDA positive in vivo car T cells the.

Roopal Thakkar: The CAR-T cells are designed to achieve rapid and deep B-cell depletion without the need for lymphoablating chemotherapy, while also avoiding other challenges associated with conventional ex-vivo CAR-Ts. This innovative approach has the potential to become a transformative new treatment modality to reset the immune system and provide deep, durable, drug-free remission for patients with autoimmune disease. Capstan's technology is a strong strategic fit for our early immunology efforts, where we have a number of internal assets designed to reset the immune system via depletion of pathogenic cells with the goal of delivering functional cures. We plan to advance several assets that deplete B cells into the clinic, each with a different target or modality.

The car T cells are designed to achieve rapid and deep b cell depletion without the need for lymphoma bleeding chemotherapy, while also avoiding other challenges associated with conventional ex vivo car Ts.

<unk> technology is a strong strategic fit for our early immunology efforts, where we have a number of internal assets designed to reset the immune system via depletion.

<unk> sales with the goal of delivering functional cures.

We plan to advance several assets.

B cells into the clinic, each with a different target or modality.

Roopal Thakkar: These include two anti-CD19 monoclonal antibodies that activate cell-mediated cytotoxicity, one with and the other without a payload, Bitentamig, our BCMA CD3 bispecific T cell engager, and ISB2001, a BCMA CD38 CD3 tri-specific T cell engager that is part of our recently announced agreement with IGI Therapeutics. An interim analysis was recently completed on our monotherapy trial evaluating Lutikizumab in ulcerative colitis. Lutikizumab showed numerically higher efficacy for the primary endpoint of endoscopic improvement compared to Humira, which was the control arm. However, the results were not sufficiently differentiated for us to pursue it as a monotherapy in this population. We believe there's still opportunity to drive incremental efficacy as a combination therapy in Crohn's disease, where Lutikizumab is being evaluated in combination with Skyrizi. Lutikizumab is one of several assets being studied, and results from our Crohn's combination platform study will begin to read out next year.

These include two.

<unk> anti CD 19, monoclonal antibodies that activate cell mediated cytotoxicity, one with and the other without a payload.

Tend to Meg or CMA CD, three bi specific T cell engagement.

And ISP to zero or one a bcm a CD 38, CD three tri specific T cell engagement that is part of our recently announced agreement with Agi Therapeutics.

An interim analysis was recently completed on our monotherapy trial evaluating <unk> in ulcerative colitis.

We believe there is still opportunity to drive incremental efficacy as a combination therapy in crohn's disease, where <unk> is being evaluated in combination with Scott Rajeev <unk>.

<unk> is one of several assets being studied and results from our Crohns combination platform study will begin to read out next year.

Roopal Thakkar: Lutikizumab has the potential to drive efficacy across other autoimmune diseases. It has demonstrated strong efficacy in hidradenitis suppurativa, where phase three is ongoing with data expected in 2027. Additional studies are underway evaluating monotherapy or combination approaches in psoriatic arthritis, atopic dermatitis, and rheumatoid arthritis. Moving to oncology, Emrelys received accelerated approval from the FDA as a monotherapy in previously treated non-squamous, non-small cell lung cancer with high CMET expression. This is an important new treatment option for patients with this challenging disease. At the recent ASCO meeting, we presented encouraging data for several novel ADCs in our oncology pipeline, including preliminary data from a phase one dose expansion study evaluating TMabA, our next-generation CMET ADC in patients with EGFR-mutated non-squamous, non-small cell lung cancer.

<unk> has the potential to drive efficacy across other autoimmune diseases. It has demonstrated strong efficacy in hidradenitis Suppurativa. We're phase III is ongoing with data expected in 2027.

Additional studies are underway evaluating monotherapy or combination approaches.

Psoriatic arthritis.

Dermatitis and rheumatoid arthritis.

Moving to oncology umbrella received accelerated approval from the FDA as a monotherapy in previously treated non squamous non small cell lung cancer with high C met expression.

This is an important new treatment option for patients with this challenging disease.

Non squamous non small cell lung cancer Tina.

Roopal Thakkar: TMabA demonstrated high and durable responses across CMET expression levels, with an objective response rate of 63% and median duration of response of 9.8 months. Based on these results, we plan to initiate additional studies in both first and second line. Other highlights from the ASCO meeting included encouraging early-stage results for ABBV706 in high-grade neuroendocrine tumors and results from a registration-enabling phase two study evaluating Tivec in BP DCN, which will support a regulatory submission later this year. At the ESMO meeting this fall, we have several planned presentations for TMabA, including results from a phase two study in combination with bevacizumab in CRC, as well as data from a proof-of-concept study in pancreatic cancer. We will also present updated data at the upcoming World Conference of Lung Cancer from our ABBV706 dose-ranging proof-of-concept study in small cell lung cancer.

<unk> demonstrated high and durable responses across seem that the expression levels with an objective response rate of 63% and median duration of response of nine eight months.

Based on these results we plan to initiate additional studies in both first and second line.

Other highlights from the Astro meeting included encouraging early stage results.

<unk> 706, and high grade neuroendocrine tumors and results from a registration, enabling phase III study evaluating <unk> and BP DCM, which will support a regulatory submission later this year.

We will also present updated data at the upcoming World conference of lung cancer from our <unk> 706 dose ranging proof of concept study in small cell lung cancer.

Roopal Thakkar: In the area of hematologic oncology, we recently announced a licensed agreement with IGI Therapeutics to develop a novel tri-specific T cell engager for multiple myeloma and autoimmune diseases. This first-in-class T cell engaging antibody targets BCMA and CD38 on myeloma cells and has the potential to deliver deep and durable responses, ultimately improving outcomes for patients. Despite advancements, the five-year survival rate in multiple myeloma is still only about 60%, so unmet needs remain high. Quality of life is also important. Patients currently receive triplet and quad therapy, which can be challenging from a safety and convenience standpoint. HCPs and patients will continue to seek next-generation therapies that can provide high efficacy, better safety, and less complicated dosing regimens. We are extremely well positioned to address the unmet needs across all patient segments in multiple myeloma with three next-generation multi-specific T cell engagers: Bitentamig, ISB2001, and CIM0500.

In the area of hematologic oncology, we recently announced a license agreement with <unk> therapeutics to develop a novel try specific T cell engagement for multiple myeloma and autoimmune diseases.

This first in class T cell engaging antibody targets be CMA and CD 38 on myeloma cells and has the potential to deliver deep and durable responses ultimately improving outcomes for patients.

Hcp's and patients will continue to seek next generation therapies that can provide high efficacy better safety and less complicated dosing regimens.

We are extremely well positioned to address the unmet needs across all patient segments in multiple myeloma.

Three next generation multi specific T cell engaging.

<unk> <unk> 2001, and Sim 0500, these off the shelf therapies may be particularly important for community based sites, where approximately 80% of patients receive care.

Roopal Thakkar: These off-the-shelf therapies may be particularly important for community-based sites where approximately 80% of patients receive care. In the area of neuroscience, we announced positive top-line results from the head-to-head phase three Temple trial comparing Qulipta and topiramate for migraine prevention. The primary and all secondary endpoints were met in the study, demonstrating that patients treated with Qulipta had fewer discontinuations due to adverse events and a greater reduction in migraine days compared to patients receiving topiramate. Over the 24-week treatment period, 12% of patients discontinued Qulipta due to adverse events, compared to 30% for topiramate. 64% of patients on Qulipta achieved at least a 50% reduction in mean monthly migraine days, compared to 39% of patients on topiramate. These results add to the body of evidence supporting Qulipta as a first-line treatment option for episodic and chronic migraine prevention.

In the area of neuroscience, we announced positive topline results from the head to head Phase III Temple trial, comparing Q lifter and Topiramate for migraine prevention.

The primary and all secondary endpoints were met in the study demonstrating that patients treated with <unk> fewer discontinuation due to adverse events and a greater reduction in migraine days compared to patients receiving topiramate.

Over the 24 week treatment period, 12% of patients discontinued.

Due to adverse events compared to 30% for Topiramate.

64% of patients on <unk> achieved at least a 50% reduction in mean monthly migraine days compared to 39% of patients on Topiramate.

These results add to the body of evidence supporting <unk> as a first line treatment option for episodic and chronic migraine prevention.

Roopal Thakkar: In the quarter, Mavyret was approved for the treatment of acute HCV. With this label expansion, caregivers can now treat HCV patients immediately following diagnosis rather than waiting until progression to chronic disease. Earlier treatment coupled with increased testing brings us closer to achieving the World Health Organization's goal of global HCV elimination by 2030. To summarize, we've made significant progress across all of our therapeutic areas in the first half of the year and continue to expand our pipeline through internal and external innovation. We look forward to additional data readouts and regulatory milestones throughout the remainder of 2025. With that, I'll turn the call over to Scott.

In the quarter Maverick was approved for the treatment of acute HCV with this label expansion caregivers can now treat HCV patients immediately following diagnosis, rather than waiting until progression to chronic disease earlier.

Earlier treatment, coupled with increased testing brings us closer to achieving the world health organization's goal of global HCV elimination by 2030.

Five.

With that I'll turn the call over to Scott.

Scott Reents: Thank you, Roopal. Starting with our second quarter results, we reported adjusted earnings per share of $2.97, which is 11 cents above our guidance midpoint. These results include a 42-cent unfavorable impact from acquired IP R&D expense. Total net revenues were $15.4 billion, reflecting growth of 6.5% on an operational basis, excluding a modestly favorable impact from foreign exchange. Adjusted gross margin was 84.4% of sales, adjusted R&D expense was 13.7% of sales, and adjusted SG&A expense was 21% of sales. The adjusted operating margin ratio was 44.3% of sales, which includes a 5.3% unfavorable impact from acquired IP R&D expense. Net interest expense was $678 million. The adjusted tax rate was 16.2%. Turning to our financial outlook, we are raising our full-year adjusted earnings per share guidance to between $11.88 and $12.08.

Thank you ruble.

Starting with our second quarter results, we reported adjusted earnings per share of $2 and 97.

Which is 11% above our guidance midpoint.

These results include a 42 sets of unfavorable impact from acquired IP R&D expense.

Total net revenues were $15 4 billion.

Reflecting growth of six 5% on an operational basis.

Excluding a modestly favorable impact from foreign exchange.

Adjusted gross margin was 84, 4% of sales.

Adjusted R&D expense was 13, 7% of sales.

And adjusted SG&A expense was 21% of sales.

The adjusted operating margin ratio was 44, 3% of sales, which includes a five 3%.

Unfavorable impact from acquired IP R&D expense.

Net interest expense was $678 million.

The adjusted tax rate was 16, 2%.

Turning to our financial outlook, we are raising our full year adjusted earnings per share guidance to between $11 88.

At $12 at <unk>.

Please note that this guidance does not include an estimate for acquired IP R&D expense that may be incurred beyond the second quarter.

We now expect total net revenues of approximately 65 billion.

An increase of $800 million.

This reflects a relatively neutral impact from foreign exchange on full year sales growth.

Our updated revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas.

And then immunology, we now expect <unk> global revenues of $17 1 billion, an increase of $600 million, reflecting continued share gains in psoriasis and IBD.

And U S. Humira revenues of 3 billion, a decrease of $500 million, reflecting biosimilar competition.

In neuroscience, we now expect global sales of $10 5 billion, an increase of 300 billion.

Scott Reents: This includes a $100 million increase for Vylev, reflecting strong international uptake, with the remaining $200 million increase split relatively evenly across Brelar, Botox Therapeutic, and the total oral CGRP portfolio. And in oncology, we now expect Imbruvica global revenues of $2.9 billion, an increase of $100 million, reflecting higher persistency rates for existing patients, and Venclexta global sales of $2.8 billion, an increase of $100 million, reflecting continued strong demand in CLL. Moving to the P&L for 2025, we continue to forecast a full-year adjusted gross margin of approximately 84% of sales. We now expect adjusted R&D expense of approximately $9 billion and adjusted SG&A expense of approximately $13.5 billion. We also now anticipate an adjusted operating margin ratio of roughly 45% of sales, in line with our previous expectations after including the 1.8% unfavorable impact of acquired IP R&D expense incurred through the second quarter.

This includes a $100 million increase for viola, reflecting strong international uptake.

With the remaining $200 million increase split relatively evenly across railcar botox therapeutic and the total oil CG RP portfolio.

And then oncology, we now expect <unk> global revenues of $2 9 billion at.

An increase of $100 billion, reflecting the higher persistency rates for existing patients.

And then <unk> global sales of $2 8 billion.

An increase of 100 billion.

Reflecting continued strong demand in CLO.

Moving to the P&L for 2025, we continue to forecast full year adjusted gross margin of approximately 84% of sales.

We now expect adjusted R&D expense of approximately $9 million and adjusted SG&A expense of approximately $13 $5 billion.

We also now anticipate an adjusted operating margin ratio of roughly 45% of sales.

In line with our previous expectations.

After including the one 8% unfavorable impact of acquired IP R&D expense incurred through the second quarter.

Scott Reents: Turning to the third quarter, we anticipate net revenues of approximately $15.5 billion. This reflects an estimated 1% favorable impact from foreign exchange on sales growth. We expect adjusted earnings per share between $3.24 and $3.28. This guidance does not include acquired IP R&D expense that may be incurred in the quarter. In closing, AbbVie once again delivered outstanding top and bottom line performance, with results well ahead of our expectations. I'm pleased with the momentum from our ex-Humira platform, including Skyrizi, Rinvoq, and neuroscience, which further supports AbbVie's long-term outlook. With that, I'll turn the call back over to Liz.

Turning to the third quarter, we anticipate net revenues of approximately $15 $5 billion.

This reflects an estimated 1% favorable impact from foreign exchange on sales growth.

We expect adjusted earnings per share between $3 and 24.

And $3 28.

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

In closing Abbvie once again delivered outstanding top and bottom line performance with results well ahead of our expectations.

I am pleased with the momentum from our ex Humira platform, including <unk> revoked and neuroscience, which further supports <unk> long term outlook.

With that I'll turn the call back over to Liz. Thanks, Scott We will now open the call for question and 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, we'll take the first question. Please.

Rob Michael: Thanks, Scott. We'll 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, we'll take the first question, please.

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

So my first question comes from Mohit Bansal with Wells Fargo. Your line is open.

Mohit Bansal: Thank you very much for taking my question, and congrats on all the progress. I have a question regarding the impact of Stelara biosimilar on Skyrizi and Rinvoq here, especially Skyrizi. I mean, so, I mean, one end, it could be, I mean, it could be considered as a negative impact. But as you saw with Humira biosimilar, people decided to not move change to biosimilar but to a more efficacious drug like Skyrizi and Rinvoq. How do you think about the impact of biosimilar considering these two dynamics here? Thank you.

Thank you very much for taking my question and congrats on all the progress.

I have a question regarding the impact of tailor our bio similar on <unk> care.

Especially as kind of the.

So I mean, one that could be it could be considered as a negative impact but.

As you saw with Humira Biosimilar people decided to not move change to Biosimilar, but.

More efficacious drug like <unk>.

How do you think about.

The impact of Biosimilar, considering these two dynamics here. Thank you.

Jeff Stewart: Yeah, thanks, Mohit. It's Jeff. And you're right that we did see, certainly with the first exclusionary formulary, that was CDS last year, we did see movement from Humira. Not all of it went to the biosimilar. Some went to, as you mentioned, Skyrizi and Rinvoq. Now, Stelara is still relatively early, and there are more interchangeable biosimilars. So, and it's, frankly, it was a much smaller drug because it's really just concentrated in GI. So it's difficult to sort of tease out exactly what movement we're seeing. Certainly, we did see that some physicians, as they think about a movement, would be more willing to look at the higher-end products. But net-net, I think that fundamentally the core momentum around Skyrizi and Rinvoq are simply related to just the outstanding data, the breadth of indications, you know, our connections with physicians in terms of our value proposition.

Yeah. Thanks, Mohit, it's Geoff and you're right that we did see certainly with the first exclusionary formulary.

Formulary that with Cvs last year, we did see movement from Humira.

Not all of it went to the Biosimilar. Some went to as you as you mentioned Sky Roseann Rainbow now so lora is still relatively early and there are more interchangeable biosimilars so and.

And it's frankly, it's a it was a.

A much smaller drug because it is really just concentrated in Gi so it's difficult to sort of tease out.

The core momentum around <unk> and RIN book are simply related to just the outstanding Dave.

Data the breadth of indications.

Our connections with physicians in terms of our value proposition. So I would say if anything it's a minor.

Jeff Stewart: So I would say, if anything, it's a minor certainly contributor.

Certainly contributor and this is Rob I'll just add on if you recall, we had the sequence had that trial a sky receive versus the Lora and we did see significant share gains following the release of that head to head and so when you think about <unk> performance versus the law before the Biosimilar we saw very notable.

Roopal Thakkar: And this is Rob. I'll just add on, if you recall, we had the sequence head-to-head trial of Skyrizi versus Stelara, and we did see significant share gains following the release of that head-to-head. And so when you think about Skyrizi's performance versus Stelara before the biosimilar, we saw a very notable share inflection. And as Jeff mentioned, what we're seeing right now is just continued momentum from Skyrizi. I would not attribute that to be an impact from the biosimilar, but I should want to make clear that we did see very nice share uptake following the sequence head-to-head trial.

Sure inflection and as Jeff mentioned, we're seeing right now is just continued momentum from Sky rosy.

I would not attribute that to be an impact from biosimilar, but I sure want to make clear that we did see a very nice share I'll take following the sequence head to head trial.

Rob Michael: Thanks, Mohit. Operator, next question, please.

Thanks, Mohit operator next question please.

Operator: Our next question comes from Terrence Flynn with Morgan Stanley. Your line is open. Great. Thanks for taking the questions. Maybe two for me. Obviously, another solid quarter here from Skyrizi. It's annualizing at about $18 billion now. I know you have the 2027 guidance out there for over $20 billion. So just maybe help us think about, you know, that number and confidence there. And kind of if you could tie in Rinvoq as well, again, annualizing $8 billion. I think that guidance is for over $11 billion in 2027. And then, no, you might not have a lot of details yet, but just any thoughts on the latest tariff announcement regarding the EU and how that might impact 2026. Thank you.

Our next question comes from Terence Flynn with Morgan Stanley. Your line is open.

Great. Thanks for taking the questions maybe two for me, obviously, another solid quarter here from Sky.

Annualized at about $18 billion now I know you have the 2000 2007 2027 guidance out there for over $20 billion. So just maybe help us think about that.

That number and confidence there.

Kind of if you could tie in <unk> as well again annualize and $8 billion I think that guidance is for over 11 billion. In 2027, and then you might not have a lot of details yet, but just any thoughts on the latest.

Tariff announcement regarding the EU and how that might impact 2026. Thank you.

Roopal Thakkar: The tariffs as well, I'll take both questions. So you're right, we're seeing tremendous performance from Skyrizi and Rinvoq. Very pleased with the progress we're making. Obviously, you know, continue to raise our expectations for this year. As you know, we occasionally update the long-term guidance. We've been doing that the last few years around the time of the fourth quarter call. We've done that also previously at the JPMorgan conference. So we do refresh long-term guidance. I'd say we're obviously tracking very well against the last long-term guidance we issued, and we will update that at the appropriate time. But obviously, and then when you look at, you know, street expectations as well, they've come up too. And so, you know, we're very pleased with the performance, and, you know, we'll update that long-term guidance at the appropriate time. But the momentum is clearly there.

The tariffs is relative to I'll take both questions. So youre right were seeing tremendous performance from Sky really were invoked very pleased.

With the progress, we're making obviously continue to raise our expectations for this year as you know we occasionally update the long term guidance, while we've been doing that last few years around the time of the fourth quarter call we've done that.

Also previously at the Jpmorgan conference. So we do refresh long term guidance I'd say, we're obviously tracking very well against the last long term guidance, we issued and we will update that at the appropriate time, but obviously and then when you look at street expectations as well.

Come up too and so we're very pleased with the performance and we will update that long term guidance at the appropriate time, but the momentum is clearly there.

Roopal Thakkar: As it relates to tariffs, I'd say, you know, as it relates to '25, we're fairly insulated from any impact this year given inventory management actions. But look, without policy details, we're not going to speculate on the longer-term impact. We do need to see the outcome of the 232 investigation and how tariffs are ultimately phased in. What I can say is that we do not expect our exposure to be outsized relative to peers. And as I mentioned during the first quarter call, we have a broad US network. It includes 11 sites that manufacture API, biologics, toxins, and small molecules. As a reminder, again, our largest product, Skyrizi, is made in the US for the domestic market. And longer term, we will add more US manufacturing capacity, which is part of the planned $10 billion in capital investment that we announced during the first quarter call.

As it relates to tariffs I would say as it relates to 2005 are fairly insulated from any impact this year given inventory management actions, but look without policy details, we're not going to speculate on the longer term impact, but we do need to see the outcome of the $2 32 investigation and how tariffs are ultimately phased in.

Can't say is that we do not expect our exposure to be outsized relative to peers.

And as I mentioned during the first quarter call. We have a broad U S network. It includes 11 sites that manufacturer API biologics toxins and small molecules.

Roopal Thakkar: That, again, includes adding four new sites to our US network that will cover API, peptides, drug product, and devices. And so we are well positioned. We'll obviously continue to invest in the US. I think, you know, we're having constructive discussions with the administration on sectoral tariffs. Clearly, you know, the best way to motivate that is through tax incentives, as well as a trade agenda that prioritizes innovation. But we're, you know, we're well positioned as a company, but we're not going to be able to really give you any details until we understand the outcome of the 232 investigation.

Rug product end devices, and so we are well positioned we will obviously continue to invest in the U S. I think we're having constructive discussions with the administration on sectorial tariffs. It's clearly the best way to motivate that is through tax incentives as well as a trade agenda that prioritizes innovation.

We are well positioned as a company, but we're not going to be able to really give you any details until we understand the outcome of the 232 investigation.

Rob Michael: Thanks, Terrence. Operator, next question, please.

Thanks, Taryn operator next question please.

Operator: Yes, our next question comes from Chris Shot with JPMorgan. Your line is open.

Yes. The next question comes from Chris Schott with Jpmorgan. Your line is open.

Rob Michael: Great, Don. Thanks so much. Just a couple of thoughts here. Just on Skyrizi, obviously meaningful upside to results this year. And just would love if you'd lay out what in particular is driving this, I guess specifically. Is it all IBD, or are you also seeing upside to the derm indications as well? And then the second question, which is kind of a bigger picture kind of BD question. I know the focus is on strengthening the growth profile 2030 and beyond. But just given the momentum of the core business, it seems as though AbbVie could fund significant growth in its pipeline and R&D over the next few years and still have pretty healthy earnings growth.

Thanks, So much just a couple of thoughts here just on Sky Ranch.

Meaningful upside the results this year and just would love if you'd lay out what in particular is driving this I guess specifically as it all IBD are you also seeing upside to the derm indications as well and then second question I am just kind of a bigger picture kind of BD question I know the focus is on strengthening the growth profile 2030, and beyond but just given the momentum in our core business.

It seems as though Abbvie could fund significant growth in its pipeline and R&D over the next few years and still a pretty healthy earnings growth.

Rob Michael: So just should we think about this still being kind of the string of early or stage or mid-stage deals, or is there appetite to also look at later-stage assets that maybe have more spend up front but could also contribute as we get later in the decade? Thank you.

Jeff Stewart: Yeah, thanks, Chris. It's Jeff. And you know the momentum on Skyrizi is across the board. Clearly, we've spent a lot of time talking about the more recent launches of Crohn's and ulcerative colitis. Rob mentioned the sequence head-to-head trial, which was quite remarkable in what that drove. But really, it's across the board. I mean, particularly continue to be very, very impressed with our momentum in psoriatic disease. So it's been seven years since the initial psoriasis approval, and we are still gaining in-play share. Really not been observed on a brand this big over that amount of time. And that's across both psoriasis, and as I mentioned in my prepared remark, in front-line PSA derm. So it really is strength across the board.

Yes. Thanks.

Chris It's Jeff.

The momentum on Sky <unk> across the board clearly we spent a lot of time talking about the more recent launches of of Crohns and.

Ulcerative colitis, Rob mentioned the sequence head to head trial, which was quite remarkable.

Remarkable and what that drove but really it's across the board I mean, particularly continue to be very very impressed with our momentum in psoriatic disease. So it's been seven years since the initial psoriasis approval and we are still gaining in play share really not been observed on a brand this big over that amount of time.

And thats across both psoriasis and as I mentioned in my prepared remark and in.

Frontline PSA derm. So it really is strength across the board, we even see continued momentum in PSA and rheumatology, where our combined our combined share with both sky Rizzi and revoke in terms of PSA room is the leading portfolio. So it really is well.

Jeff Stewart: We even see continued momentum in PSA in rheumatology, where our combined share with both Skyrizi and Rinvoq in terms of PSA room is the leading portfolio. So it really is well balanced.

Balanced Chris.

Chris Chris I would just add to just how does that 600 billion raised 400 of that you can think of as the IBD 200 in Psoriatic. So thats going to put the split of the 17 more than 11, three for Psoriatic and five eight for IBD.

Roopal Thakkar: And Chris, this is Rob. I'll take your question on BD. When you look at AbbVie and the diversified growth platform we have today, you know that's going to provide us with the opportunity to really drive top-tier performance, you know clear line of sight to growth for at least the next eight years. So as I think about strategically the pipeline, external innovation, the investments we're making are really all around what's going to drive growth in the next decade. We have a clear line of sight based on the portfolio we have today to drive that growth over the next eight years. And so it's really more about how do we set the company up to grow beyond Skyrizi and Rinvoq. And so we've made, I think, a lot of very compelling investments.

And Chris This is Rob I'll take your question on BD when you when you look at Abbvie.

The investments, we're making are really all around what's going to drive growth in the next decade, we have a clear line of sight based on the portfolio at today to drive that growth.

Roopal Thakkar: And you're right, without any significant LOEs this decade, we have the flexibility to invest more in R&D to continue to acquire external innovation. And we will absolutely do that. We have, I think, a lot of very exciting programs coming out of our internal pipeline. We look at the progress we're making, particularly in oncology. You look at the combination approaches in immunology. But our BD strategy will continue to be focused on assets that can really drive growth in the next decade and beyond. And if you just look at the deals we've done, obviously bolstering our pipeline in immunology with novel mechanisms, but also adding important capabilities with oral peptides as well as B cell depletion approaches. In oncology, we've added some very nice depth in multiple myeloma.

Without any significant LOE. This decade, we have the flexibility to invest more in R&D to continue to acquire external innovation and we're going to we will absolutely do that we have I think a lot of very exciting programs coming out of our internal pipeline. We look at the progress, we're making particularly.

In oncology you look at the combination approaches in immunology.

Roopal Thakkar: We actually have our own program in Bitentamig, but we've added two tri-specific deals, Cimcera and IGI, to really give us significant depth in multiple myeloma to drive growth for the long term. We've also made a lot of progress in neuroscience across psychiatry, migraine, and Alzheimer's. And then the siRNA transaction with ARX gives us a very compelling platform that can generate opportunities across really all three of these areas: immunology, neuroscience, and oncology. And then, you know, not to mention our entry into obesity with the Quber deal, which we plan to build upon with more BD. So as I think about the company strategically, we need to continue to invest in early-stage programs that can really drive growth for the company in the next decade and beyond. And we're very well positioned to drive growth in this decade with the portfolio we have today.

Multiple myeloma, we actually have our own program at the chance to make but we've added to try specific deals <unk> and <unk> to really give us significant depth and multiple myeloma to drive growth for the long term. We've also made a lot of progress in neuroscience across psychiatry migraine in Alzheimers and then the SA RNA transaction with eight Rx gives us.

A very compelling platform that can generate opportunities across really all three of these areas I mean, ology neuroscience oncology and then not to mention our entry into obesity with the Uber deal, which we plan to build upon with more BD. So as I think about the company strategically we need to continue to invest in early stage programs that can really drive growth for the company in the <unk>.

Decade, and beyond and we're very well positioned to drive growth in this decade with the portfolio we have today.

Rob Michael: Thanks, Chris. Operator, next question, please.

Thanks, Craig Operator next question please.

Operator: Thank you. Our next question comes from Dave Reisinger with Lering Partners. Your line is open.

Thank you. Our next question comes from Dave Risinger with Leerink Partners. Your line is open.

Chris Schott: Yes, thanks very much, and congrats on the phenomenal financial momentum. So my question is, could you please discuss your vision for leveraging your global asphetics commercial footprint to sell obesity drugs in the future? And also, how are you thinking about potentially adding to your obesity R&D portfolio in the future? Thanks very much.

Yes, thanks, very much and congrats on.

On a phenomenal financial momentum.

So.

My My question is could you. Please discuss your vision for leveraging your global AST Fedex commercial footprint.

To sell obesity drugs in the future and also how are you thinking about potentially adding to your obesity R&D portfolio in the future. Thanks very much.

Jeff Stewart: Yeah. Hi, David. It's Jeff. So this is a very important point. I mean, we do have a very strong footprint around the globe. And what we observed, and it's changed a little bit over the last several quarters, we observed that the sort of a cash pay obesity or weight loss market in our asphetics practices became the second largest sort of revenue driver for them in terms of patient flow. So you had the toxins was number one, then obesity and weight loss became number two, and then dermal fillers was number three. Now that's since moderated. And it's moderated because of basically the loss of some of the compounding dynamics and the way the clinics were thinking about this. So this was an important, certainly not the only, an important reason for the Qubra transaction because we know that that's just going to be ongoing demand.

We observe that the sort of a cash pay obesity or weight weight loss market in our <unk> practices.

<unk> became the second largest sort of revenue driver for them and in terms of patient flow. So you had the toxins was number one then obesity and weight loss became number two and then dermal fillers was number three now that since my.

Moderated and it's moderated because of the.

Jeff Stewart: And as we think of a lot of patients who are going to have already tried to cycle through the GLP-1s, whether it was compounding or the branded over time, they're going to want to continue to think about how do they think about weight loss as part of their asphetic journey over time. And we think we're very uniquely positioned to be able to deliver that, you know, to the asphetic clinics around the world. So again, pretty important in terms of how we would do that, you know, our ability to distribute directly, to think about ways that we would handle, you know, the cash pay aspects, aspects of thinking about, you know, how Ally would work and how that interaction would take place across the, you know, emerging portfolio and existing core brands that we have.

One is whether it was compounding or the branded over time, they're going to want to continue to think about how do they think about weight loss as.

Part of their aesthetics journey over time.

And we think we're very uniquely positioned to be able to deliver that.

To the aesthetic clinics around the world. So again pretty important in terms of how we would do that our ability to distribute directly to think about ways that we would handle that.

The cash pay aspects.

<unk> of thinking about.

How Ali would work and how that interaction would take place across the emerging portfolio in existing core brands that we have so that was a big consideration.

Jeff Stewart: So that was a big consideration of our deal and certainly attractive.

Our of our deal and certainly attractive.

Roopal Thakkar: And this is Roopal talking about R&D, furthering R&D in the obesity space. And that's certainly something we're open to. The asset we have right now is in the Amylan class. And the things that we were thinking about there were enhanced tolerability, a desirable dosing profile that could drive durability. The issue we see here is many people will start, but a majority of whom will fall off relatively quickly and then not get the benefits of weight loss. The other considerations are around muscle loss and bone loss. And along those lines of what I just mentioned, if there are other assets that address those similarly to an Amylan class and we have an opportunity to combine, that would be something that we'd be very interested in.

And this is Grupo <unk> talking about.

R&D, furthering our R&D and obesity space and that's something that's.

Certainly something we are open to.

The asset we have right now is in the Amazon class.

The things that we were thinking about there were.

Enhanced tolerability desirable dosing profile that could drive durability. The issue. We see here is many people will start, but a majority of whom will fall off.

Relatively quickly and then not get the benefits of weight loss.

The other considerations are around muscle.

Muscle loss and bone loss.

And.

Along those lines of what I just mentioned if there are other assets that address those.

Similarly to an inland class and we have an opportunity to combine that would be something that would be very interested in.

Roopal Thakkar: The other thing we like about the 295 molecule is a neutral pH, which may make it simpler to combine with other assets that address these, I would say, continuing unmet needs.

The other thing we like about 295 molecule is neutral ph, which may make it simpler.

Combined with other assets that address these I would say.

Continued continuing unmet needs.

Rob Michael: Thanks, Dave. Operator, next question, please.

Thanks, Dave Operator next question please.

Operator: Thank you. Our next question comes from Carl Gould with Cantor. Your line is open.

Thank you and our next question comes from Carnival with Cantor Your line is open.

Scott Reents: Thanks for the question. Maybe to change pace and ask on Vylev, obviously you raised the guide there. Should we think about that being primarily driven by US or OUS? I guess specifically, has the OUS success sort of changed the way you think about the US launch now? Thank you.

Thanks for the question maybe.

Pacer and ask on <unk>.

Jeff Stewart: Yeah. Hi, Carter. It's Jeff. So again, as we mentioned, we're super pleased with the launch on Vylev. And what we're seeing is just, you know, very, very strong demand. The drug-device combination is really transformational. And what we see with the control over the Parkinson's or the advanced Parkinson's disease is you get 24-hour effect. And so that helps manage the motor disorders and the sleep disturbances and, you know, throughout not just the day when people are awake, but also through the night. So this quality of life impact and the control of the disease is quite remarkable. So we're just seeing real demand that's coming through largely across the international markets. So as we've highlighted before, you know, we're very confident that we're going to start to see the Medicare ramp in the US start here in the latter part of the year.

Yes, Hi, Carter, it's Jeff So again as we mentioned we're super pleased with the.

<unk> disorders, and the sleep disturbances and throughout not just the day when people are awake, but also through the night. So this quality of life impact and the control of the disease is quite remarkable. So we're just seeing real demand that's coming through largely across the international markets. So as we've highlighted.

<unk>.

Jeff Stewart: And we're right on track for that. But the raise really is largely related to just the core demand. You think about it, really the first full year, a $400 million running rate in the international market. It's very impressive based on the performance of the brand.

So the brand.

Okay. Thank.

Rob Michael: Thank you, Carter. Operator, next question, please.

Thank you Carter operator next question please.

Operator: Yes, our next question comes from Tim Anderson with Bank of America. Your line is open.

Yes. The next question comes from Tim Anderson with Bank of America. Your line is open.

Scott Reents: Thank you very much. I have a question on IRA price negotiation. You guys have a horse in the race again with Brelar in this upcoming round. You had Imbruvica in the first round. There have been investor fears that this next round of negotiations will be worse than last year's so Trump can make his mark. Any assurances you can give us that this won't be the case, or can you otherwise provide any color on how those negotiations are matching up with your expectations as you first headed into those negotiations? And then second question on asphetics. I know you talked about pushes and pulls, a question I've asked in the past. The impact from the GLP-1s on Botox and dermal fillers, what's the latest? Is it helping sales, hurting sales, or net neutral?

Thank you very much.

I have a question on IRA price negotiation.

You guys have a horse in the race again, where the trailer.

And this upcoming round you had in <unk>.

In the first round.

Been investor fears that this next round of negotiations will be worse than last year. So Trump can make his mark.

Any assurances you can give us that this won't be the case for can you otherwise provide any color on how those negotiations are matching up with your expectations as.

As you first headed into those negotiations.

And then second question on aesthetics.

I know you talked about pushes and pulls.

And I've asked in the past.

The impact from the <unk> on Botox and dermal fillers.

What's the latest as it helping sales hurting sales or net neutral.

Roopal Thakkar: Hey, Tim. It's Rob. I'll take your first question. Obviously, as we go through these negotiations, we don't publicly comment for obvious reasons. And as you know, the prices will be public in November, and we'll comment as appropriate at that time. But as it relates to the IRA, I do think one important notable change as part of the One Big Beautiful Bill Act is the expansion of the IRA orphan drug exemption. You know, drugs with more than one orphan designation are now exempt from IRA negotiations, which will be a benefit to our own cancer therapy, Venclexta. So we previously would have assumed, you know, we had a timeline as we model the impact of IRA. Now with this change, we would not expect Venclexta to be negotiated. And that's an example of a good policy change where innovation is being rewarded and not penalized.

We would not expect <unk> to be in.

<unk> negotiated and Thats. An example of a good policy change where innovation is being rewarded and not penalised, but as it relates to the current negotiations will provide commentary once those prices are public.

Roopal Thakkar: But as it relates to the current negotiations, you know, we'll provide commentary once those prices are public.

Jeff Stewart: Yeah, and regarding the GLP-1s, I would say overall what we see after, you know, numerous discussions and working with our clinics, Tim, is that it's really a net neutral. I mean, if anything, if you look at it, I mean, the filler market where, you know, in some cases, people are interested in as they lose their facial muscle and fat, you'd think that would be a tailwind for the dermal filler market. And we've seen that that's just been more afflicted clearly by macro issues and some sentiment issues. So net-net, we see it as really a neutral effect.

Muscle and fat you'd think that would be a tailwind for the for the dermal filler market and we've seen that that has just been more afflicted clearly by macro issues and some sentiment issues. So net net we see it as a really a neutral effect.

Rob Michael: Thanks, Tim. Operator, next question, please.

Okay.

Thanks, Tim Operator next question please.

Operator: Yes, our next question comes from Vamo Devon with Google Home Securities. Your line is open.

Our next question comes from <unk> <unk> with Guggenheim Securities. Your line is open.

Scott Reents: Great. Thanks for taking the questions. Congrats on the quarter. So just two for me. One on the alopecia areata data you touched on earlier in the call in the press release from yesterday. Wondering if you can just sort of talk about the commercial opportunity for that indication. Obviously, Rinvoq's a big product and going to get bigger, but just curious how much of an impact that can have on Rinvoq sales. And then second, going back to the asphetics commentary, maybe you can just give a little more color on what you're seeing on the ground in terms of the impact of the macro. Are things actually getting better in the practices? Are you seeing an increase in patient flow as maybe the macro sentiment is getting a little better over the last few months? Thanks.

Great. Thanks for taking the question congrats on the quarter. So just two for me one on the alopecia Areata data you touched on earlier in the call in the press release from yesterday wondering if you can just sort of talk.

Talking about the commercial opportunity for that indication, obviously youre in books that are.

A big product and I'm going to get bigger, but just curious how much of an impact that can have on print book sales and then second going back to the aesthetics commentary, maybe if you can just give a little more color on what youre seeing on the ground in terms of the impact of the macro or are things that you are getting better.

Practices are you already seeing an increase in patient flow as maybe the macro sentiment getting a little better over the last few months.

Jeff Stewart: Yeah, so thanks. Yeah, it's Jeff. So the data was quite impressive that you see the recovery of the hair growth, quite striking relative to other JAK inhibitors that we've seen report out and gain approvals. So the way that we thought about Rinvoq and the new indications is really sort of the third wave of how we've developed the product. So we had the big rheumatology indications to start out with, and we built atopic dermatitis and the IBD indications. And now we have this next set of indications, GCA, lupus, et cetera, which are all overlapping with the derm and the room categories where we have this exceptional strength right now. So as we build that out, it's going to be, we think, quite significant.

Yes, so thanks.

Yes, Jeff So the data's was quite impressive that you've seen the recovery of the hair growth quite striking relative to other JAK inhibitors that we've seen report out and gain approvals. So the way that we thought about <unk> and the new indications is really sort of the third wave of how we develop the.

Our products. So we had the big rheumatology indications to start out with and we built atopic dermatitis and the IBD indications and now we have this next set of indications GCE, a lupus et cetera, which are all overlapping with with the derm and the room categories, where we have this exceptional strength right now so.

As we build that out it's going to be we think quite significant and we've highlighted that the collection of the next wave of indications would add approximately $2 billion two.

Jeff Stewart: And we've highlighted that the collection of the next wave of indications would add, you know, approximately $2 billion to peak year sales for Rinvoq. Now, you know, we're going to have to continue to study this because it's sort of late-breaking and understand, you know, could we get more momentum coming out of the transformational quality of this data? Because in the research that we've had with patients with alopecia, clearly any sort of hair recovery helps out their perception of their disease, their immune disease. But when you look at the potential to get those SALT scores at that level, you know, could we really see more momentum than we've studied the market so far? We'll have to see.

To peak year sales for <unk> now, we're going to have to continue to study this because it's sort of late breaking.

And understand could we get more momentum coming out of the transformational quality of this data.

Because in the research that we've had with with patients with alopecia, clearly any sort of hair recovery helps out their perception of their disease or immune disease, but when you look at the potential to get those salt scores at that level.

Could we really see more momentum than we've studied the market. So far we'll have to see but net net to your point, it's a very significant strategy for us.

Jeff Stewart: But net-net, to your point, it's a very significant strategy for us, you know, that will start to play out here towards the end of the decade, starting in '26, '27, '28. And we're really encouraged with the data. In terms of additional color on the asphetic, we've seen things pretty stable. The big issue that has come up has been really the decline across some of the major territories in the dermal filler market. So certainly, given their price points, patients are more sensitive to the price points of the fillers versus the toxins versus Botox. But at the same time, we've seen that the sentiment around the worry over what happens if I become overfilled or is that the look that I want? I want a more subtle, natural look.

That will start to play out here towards the end of the decade, starting in 'twenty six 'twenty $7 28.

And we're really encouraged with the data.

In terms of additional color on the aesthetic.

<unk> seen things pretty stable.

Around the worry over what happens if I become overfilled or is that the look at that I want I want a more subtle.

Natural look and Thats something that we are basically going to deal with pretty substantially here in the second half with our clinics with our thought leaders and with our trainers to make sure that the consumers can really understand you can just get exceptional results.

Jeff Stewart: And so that's something that we are basically going to deal with pretty substantially here in the second half with our clinics, with our thought leaders, and with our trainers to make sure that the consumers can really understand you can just get exceptional results with dermal fillers. And so we see things fairly stable, but we're going to have to do some work basically to make sure that that market sort of stabilizes and then grows over time.

Results with thermal pillars, and so we see things fairly stable, but we're going to have to do some work basically to make sure that that market sort of stabilizes and then grows over time.

Rob Michael: Thanks, Vamo. Operator, next question, please.

Thanks, TAMO operator next question please.

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

So next question comes from Steve Scala with TD Cowen Your line is open.

Scott Reents: Oh, thank you so much. Two questions. First, back on asphetics, nothing you have said is particularly encouraging. In the past, the company has pointed to past periods of uncertainty and pointed to the resilience these brands have had during that period. So the question is, why is this economic uncertainty different than in the past? This one seems to be lingering longer than in past soft periods. Or are there other things at work, such as perhaps competition that's also gnawing away at these franchises? And then secondly, on the pipeline, so you have an anti-amyloid monoclonal antibody that completed a phase one trial in April. What is the status of this product, and could AbbVie go straight to a potentially registrational trial based on imaging as an endpoint? Thank you.

Thank you so much two questions first on that kind of steady nothing you have said is particularly encouraging in the past the company has pointed to past periods of uncertainty and.

Or are there other things that work such as perhaps competition. That's also knowing away at these franchises.

Jeff Stewart: Yeah, I think, Steve, to your point, I think there is a difference between this and some other areas where we've had some economic uncertainty. It's been sort of more short-term recessionary issues. I think the longer-term impact on the pocketbook of the consumers has just been more chronic. And we've seen that across, you know, even just recent reports on luxury good items and significant issues. So I do think it's more chronic than we've seen before. Ultimately, I think we'll be able to work through it. We still see high levels of interest in asphetic procedures, and we do see the target customers, you know, complain about issues of their wallet. I also did highlight that I do think something's different in terms of the sentiment around this natural look and worry about being overfilled in terms of the dermal fillers. All of these are addressable.

Yes, I think.

Even just recent reports on luxury good items and significant issue. So I do think it's more chronic.

And we've seen before ultimately I think we'll be able to work through it we still see high levels of interest in aesthetic procedures, and we do see the target customers.

<unk> about issues of their of their wallet I also did highlight that I do think something is different in terms of the sentiment around this natural look and worry about being overfilled in terms of the dermal fillers. All of these are addressable and I also think that we have the we have the right portfolio and we also.

Jeff Stewart: And I also think that we have the right portfolio, and we also have the right disruptive innovation that's pretty close, particularly around the toxin space with our short-acting, you know, fast-on, fast-off Trinobot-E. So I do think we're set up for, you know, taking advantage of the long-term recovery, and we'll look forward to that as we continue to progress the strategy.

The REIT disruptive innovations, that's pretty close, particularly around the toxin space with our short acting.

A fast on fast off trend about E. So I do think we're set up for taking advantage of the long term recovery and we'll look forward to that as we continue to progress.

The strategy.

Roopal Thakkar: And Steve, this is Roopal talking about Alzheimer's assets. We have a monoclonal antibody in 916, which read out as data, I would say, similar to what's already available on the market. And that was around that period. We also acquired the Aliata technology, which is a monoclonal similar to our 916 in that it binds with high potency to pyroglutamate amyloid.

So Steve this is ruble talking about.

All timers assets.

We have a monoclonal antibody nine months, six which read out as data I would say similar to what's already available on market and that was the.

Around that period, we also acquired the <unk> technology, which is a.

Monoclonal similar to our nine months six in that it binds with high potency to pyro glutamate it.

Amyloid.

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