Q2 2026 AbbVie Inc Earnings Call

July 31, 2026

Speaker #1: Good morning, and thank you for standing by. Welcome to AbbVie’s second quarter 2026 earnings conference call. All participants will be able to listen only until the question-and-answer portion of this call.

Operator: Good morning, and thank you for standing by. Welcome to the AbbVie Second Quarter 2026 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, Investor Relations.

Operator: Good morning, and thank you for standing by. Welcome to the AbbVie Q2 2026 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, Investor Relations.

Speaker #1: You may ask a question by pressing star 1 on your phone. Today's call is also being recorded. If you have any objections, you may disconnect at this time.

Speaker #1: I would now like to introduce Ms. Liz Shea, Senior Vice President, Investor Relations.

Speaker #2: 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.

Liz Shea: Good morning, 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.

Elizabeth Shea: Good morning, 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.

Speaker #2: 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.

Elizabeth Shea: 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.

Speaker #2: 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.

Elizabeth Shea: Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.

Speaker #2: On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website.

Liz Shea: 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. With that, I'll turn the call over to Rob.

Elizabeth Shea: 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. With that, I'll turn the call over to Rob.

Speaker #2: Following our prepared remarks, we'll take your questions. So, with that, I'll turn the call over to Rob.

Speaker #3: Thank you, Liz. Good morning, everyone, and thank you for joining us. AbbVie delivered another excellent quarter. With results, once again, exceeding our expectations. I'm especially pleased with the execution across our business, including double-digit sales growth from our diverse portfolio, the advancement of our compelling pipeline of innovative medicines, and our planned acquisition of Apogee Therapeutics.

Rob Michael: Thank you, Liz. Good morning, everyone, thank you for joining us. AbbVie delivered another excellent quarter with results once again exceeding our expectations. I'm especially pleased with the execution across our business, including double-digit sales growth from our diverse portfolio, the advancement of our compelling pipeline of innovative medicines, and our planned acquisition of Apogee Therapeutics, which represents an exciting opportunity to bolster AbbVie's leading immunology portfolio. Turning to our Q2 performance, we achieved adjusted earnings per share of $3.65, which is $0.06 above our guidance midpoint. Total net revenues were nearly $17 billion, beating our expectations by $300 million and reflecting robust sales growth of 10.2%. The performance of SKYRIZI, RINVOQ, and our neuroscience portfolio continues to be very strong, with each delivering growth above 20%.

Robert Michael: Thank you, Liz. Good morning, everyone, thank you for joining us. AbbVie delivered another excellent quarter with results once again exceeding our expectations. I'm especially pleased with the execution across our business, including double-digit sales growth from our diverse portfolio, the advancement of our compelling pipeline of innovative medicines, and our planned acquisition of Apogee Therapeutics, which represents an exciting opportunity to bolster AbbVie's leading immunology portfolio.

Speaker #3: Which represents an exciting opportunity to bolster AbbVie's leading immunology portfolio. Turning to our second quarter performance, we achieved adjusted earnings per share of $3.65.

Robert Michael: Turning to our Q2 performance, we achieved adjusted earnings per share of $3.65, which is $0.06 above our guidance midpoint. Total net revenues were nearly $17 billion, beating our expectations by $300 million and reflecting robust sales growth of 10.2%. The performance of SKYRIZI, RINVOQ, and our neuroscience portfolio continues to be very strong, with each delivering growth above 20%.

Speaker #3: Which is $0.06 above our guidance midpoint. Total net revenues were nearly $17 billion, beating our expectations by $300 million and reflecting robust sales growth of 10.2%.

Speaker #3: The performance of Skyrizi-Rinvoq and our neuroscience portfolio continues to be very strong. With each delivering growth above 20%. Based on this momentum, we are raising our full-year revenue guidance by $300 million, and have now raised total revenue by $600 million, since the start of the year.

Rob Michael: Based on this momentum, we are raising our full-year revenue guidance by $300 million and have now raised total revenue by $600 million since the start of the year. Turning now to R&D, we continue to make excellent progress advancing our pipeline. Recent highlights from our late-stage programs include the US approval of DECNUPAZ, a treatment for a rare form of blood cancer. This represents AbbVie's first marketed ADC in hematology. We also received European approvals for QULIPTA to treat acute migraine, EPKINLY for second-line follicular lymphoma, as well as Boey, a first-in-class short-acting toxin in aesthetics. In addition, we received European approvals for RINVOQ in both vitiligo and alopecia areata, with US regulatory decisions forthcoming.

Robert Michael: Based on this momentum, we are raising our full-year revenue guidance by $300 million and have now raised total revenue by $600 million since the start of the year. Turning now to R&D, we continue to make excellent progress advancing our pipeline. Recent highlights from our late-stage programs include the US approval of DECNUPAZ, a treatment for a rare form of blood cancer.

Speaker #3: Turning now to R&D, we continue to make excellent progress advancing our pipeline. Recent highlights from our late-stage programs include: the U.S. approval of Decnupaz, a treatment for a rare form of blood cancer. This represents AbbVie's first marketed ADC in hematology. We also received European approvals for Qlipta to treat acute migraine, Epkenly for second-line follicular lymphoma, as well as BOEE, a first-in-class short-acting toxin in aesthetics.

Robert Michael: This represents AbbVie's first marketed ADC in hematology. We also received European approvals for QULIPTA to treat acute migraine, EPKINLY for second-line follicular lymphoma, as well as Boey, a first-in-class short-acting toxin in aesthetics. In addition, we received European approvals for RINVOQ in both vitiligo and alopecia areata, with US regulatory decisions forthcoming.

Speaker #3: In addition, we received European approvals for Rinvoq in both vitiligo and alopecia areata, with U.S. regulatory decisions forthcoming. Based on the compelling data generated for each of these programs, we now anticipate the combined peak sales for these two indications alone to approach $2 billion.

Rob Michael: Based on the compelling data generated for each of these programs, we now anticipate the combined peak sales for these two indications alone to approach $2 billion, which is meaningfully above our prior expectations. During the quarter, we also announced the acquisition of Apogee Therapeutics, which will add multiple differentiated assets in dermatology, respiratory, and other related inflammatory diseases with significant sales potential. The acquisition will add even more depth to our robust pipeline in immunology, which we expect will be a major growth driver for AbbVie over the long term. This transaction is an excellent fit with our strategy to build and advance a compelling pipeline with new sources of growth to support AbbVie's performance in the 2030s and beyond. We have ample financial capacity for more business development and remain focused on adding both early and late-stage opportunities across our core disease areas.

Robert Michael: Based on the compelling data generated for each of these programs, we now anticipate the combined peak sales for these two indications alone to approach $2 billion, which is meaningfully above our prior expectations.

Speaker #3: Which is meaningfully above our prior expectations. During the quarter, we also announced the acquisition of Apogee Therapeutics. Which will add multiple differentiated assets in dermatology, respiratory, and other related inflammatory diseases, with significant sales potential.

Robert Michael: During the quarter, we also announced the acquisition of Apogee Therapeutics, which will add multiple differentiated assets in dermatology, respiratory, and other related inflammatory diseases with significant sales potential.

Speaker #3: The acquisition will add even more depth to our robust pipeline in immunology, which we expect will be a major growth driver for AbbVie over the long term.

Robert Michael: The acquisition will add even more depth to our robust pipeline in immunology, which we expect will be a major growth driver for AbbVie over the long term. This transaction is an excellent fit with our strategy to build and advance a compelling pipeline with new sources of growth to support AbbVie's performance in the 2030s and beyond.

Speaker #3: This transaction is an excellent fit with our strategy to build and advance a compelling pipeline, with new sources of growth to support AbbVie's performance in the 2030s and beyond.

Speaker #3: We have ample financial capacity for more business development, and remain focused on adding both early- and late-stage opportunities across our core disease areas. In summary, we are delivering outstanding execution across our business, and our long-term outlook remains very strong.

Robert Michael: We have ample financial capacity for more business development and remain focused on adding both early and late-stage opportunities across our core disease areas.

Rob Michael: In summary, we are delivering outstanding execution across our business, and our long-term outlook remains very strong. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?

Robert Michael: In summary, we are delivering outstanding execution across our business, and our long-term outlook remains very strong. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff?

Speaker #3: With that, I'll turn the call over to Jeff for additional comments on our commercial highlights. Jeff.

Speaker #4: Thank you, Rob. I'll start with the quarterly results for immunology, which delivered total revenues of nearly $8.8 billion, reflecting very strong operational sales growth of $14.6%.

Jeff Stewart: Thank you, Rob. I'll start with the quarterly results for immunology, which delivered total revenues of nearly $8.8 billion, reflecting very strong operational sales growth of 14.6%. SKYRIZI total sales were $5.5 billion, up 24% on an operational basis, once again exceeding our expectations. I'm very pleased with our performance in psoriasis, where we continue to capture robust in-play share of new and switching patients at a rate which is impressively four times higher than any other biologic or oral treatment in the US. We have achieved market share leadership now in more than 30 countries and see substantial room for continued growth globally. We do not expect a material impact to our robust outlook in psoriasis from existing or new therapies, given SKYRIZI's very distinct profile.

Jeffrey Stewart: Thank you, Rob. I'll start with the quarterly results for immunology, which delivered total revenues of nearly $8.8 billion, reflecting very strong operational sales growth of 14.6%. SKYRIZI total sales were $5.5 billion, up 24% on an operational basis, once again exceeding our expectations.

Speaker #4: Skyrizi total sales were $5.5 billion, up 24% on an operational basis, once again exceeding our expectations. I'm very pleased with our performance in psoriasis, where we continue to capture robust in-play share of new and switching patients, at a rate which is impressively four times higher than any other biologic or oral treatment in the U.S. We have achieved market share leadership now in more than 30 countries and see substantial room for continued growth globally.

Jeffrey Stewart: I'm very pleased with our performance in psoriasis, where we continue to capture robust in-play share of new and switching patients at a rate which is impressively four times higher than any other biologic or oral treatment in the US.

Jeffrey Stewart: We have achieved market share leadership now in more than 30 countries and see substantial room for continued growth globally. We do not expect a material impact to our robust outlook in psoriasis from existing or new therapies, given SKYRIZI's very distinct profile.

Speaker #4: We do not expect a material impact to our robust outlook in psoriasis from existing or new therapies given Skyrizi's very distinct profile. This includes high and very durable skin clearance from head to toe, widely demonstrated superior efficacy in head-to-head trials versus five different mechanisms, including both biologics, and oral agents, simple and convenient quarterly dosing, and extremely strong long-term data in psoriatic arthritis, extending now to five years, which is very important to prescribers, as roughly 30% of psoriasis patients ultimately develop PSA.

Jeff Stewart: This includes high and very durable skin clearance from head to toe, widely demonstrated superior efficacy in head-to-head trials versus five different mechanisms, including both biologics and oral agents, simple and convenient quarterly dosing, and extremely strong long-term data in psoriatic arthritis extending now to five years, which is very important to prescribers, as roughly 30% of psoriasis patients ultimately develop PsA, as well as now our recent approval for pediatric use with the new weight-based dosing option. In IBD, SKYRIZI's fastest-growing indication, we continue to capture a leading share of total new patient starts in the US in the quarter, including substantial leadership in the frontline setting, the clearest signal of physician preference. Competitive dynamics remain in line with our expectations with the IL-23 category seeing very robust growth in both Crohn's disease and ulcerative colitis.

Jeffrey Stewart: This includes high and very durable skin clearance from head to toe, widely demonstrated superior efficacy in head-to-head trials versus five different mechanisms, including both biologics and oral agents, simple and convenient quarterly dosing, and extremely strong long-term data in psoriatic arthritis extending now to five years.

Jeffrey Stewart: Which is very important to prescribers, as roughly 30% of psoriasis patients ultimately develop PsA, as well as now our recent approval for pediatric use with the new weight-based dosing option.

Speaker #4: As well as now, our recent approval for pediatric use with the new weight-based dosing option. In IBD, Skyrizi's fastest-growing indication, we continue to capture a leading share of total new patient starts in the U.S.

Jeffrey Stewart: In IBD, SKYRIZI's fastest-growing indication, we continue to capture a leading share of total new patient starts in the US in the quarter, including substantial leadership in the frontline setting, the clearest signal of physician preference. Competitive dynamics remain in line with our expectations with the IL-23 category seeing very robust growth in both Crohn's disease and ulcerative colitis.

Speaker #4: In the quarter, including substantial leadership in the front-line setting, the clearest signal of physician preference. Competitive dynamics remain in line with our expectations with the IL-23 category, seeing very robust growth in both Crohn's disease and ulcerative colitis.

Jeff Stewart: Importantly, we are also preparing for the potential approval of our subcutaneous induction dosing option for Crohn's later this fall, which is supported by very strong data, particularly in the front line, where we observe the highest levels of endoscopic response seen in the category. Turning now to RINVOQ, which is also performing above our expectations. Global sales were more than $2.5 billion, up 23.7% on an operational basis. I am especially pleased with the momentum we see in gastroenterology, where RINVOQ is on pace to deliver 30% global sales growth this year. RINVOQ has set a very high bar for efficacy in both ulcerative colitis and Crohn's disease, demonstrating strong rates of remission and endoscopic improvement. We continue to see a nice inflection of in-play patient share following the recently expanded label supporting access to RINVOQ earlier in the treatment paradigm for IBD patients.

Jeffrey Stewart: Importantly, we are also preparing for the potential approval of our subcutaneous induction dosing option for Crohn's later this fall, which is supported by very strong data, particularly in the front line, where we observe the highest levels of endoscopic response seen in the category.

Speaker #4: Importantly, we are also preparing for the potential approval of our subcutaneous induction dosing option for Crohn's later this fall. This is supported by very strong data, particularly in the front line, where we observe the highest levels of endoscopic response seen in the category.

Speaker #4: Turning now to Rinvoq, which is also performing above our expectations. Global sales were more than $2.5 billion, up 23.7% on an operational basis. I'm especially pleased with the momentum we see in gastroenterology, where Rinvoq is on pace to deliver 30% global sales growth this year.

Jeffrey Stewart: Turning now to RINVOQ, which is also performing above our expectations. Global sales were more than $2.5 billion, up 23.7% on an operational basis. I am especially pleased with the momentum we see in gastroenterology, where RINVOQ is on pace to deliver 30% global sales growth this year.

Speaker #4: Rinvoq is set a very high bar for efficacy in both ulcerative colitis and Crohn's disease, demonstrating strong rates of remission and endoscopic improvement. And we continue to see a nice inflection of in-play patient share, following the recently expanded label supporting access to Rinvoq earlier in the treatment paradigm for IBD patients.

Jeffrey Stewart: RINVOQ has set a very high bar for efficacy in both ulcerative colitis and Crohn's disease, demonstrating strong rates of remission and endoscopic improvement. We continue to see a nice inflection of in-play patient share following the recently expanded label supporting access to RINVOQ earlier in the treatment paradigm for IBD patients.

Speaker #4: More broadly, we continue to see strong demand across all of Rinvoq's indications, and we are very excited about the growth potential in dermatology, with vitiligo and alopecia areata now approved in Europe, with U.S.

Jeff Stewart: More broadly, we continue to see strong demand across all of RINVOQ's indications, and we are very excited about the growth potential in dermatology with vitiligo and alopecia areata now approved in Europe with US approval decisions anticipated over the next few quarters. RINVOQ's profile is competitively positioned for both of these chronic diseases, where our recently expanded US derm field force will support both launches. Lastly, in immunology, HUMIRA global sales were $756 million, down 36.1% on an operational basis, reflecting biosimilar competition and in line with our expectations. Moving to neuroscience, where we once again outperformed our expectations. Total revenues were more than $3.2 billion, up approximately 20% on an operational basis. All three of our leading neuro pillars continue to demonstrate robust sales growth. In psychiatry, VRAYLAR global sales were nearly $1.1 billion, up approximately 19%, reflecting share gains in both bipolar disorder and adjunctive MDD.

Jeffrey Stewart: More broadly, we continue to see strong demand across all of RINVOQ's indications, and we are very excited about the growth potential in dermatology with vitiligo and alopecia areata now approved in Europe with US approval decisions anticipated over the next few quarters.

Speaker #4: Approval decisions are anticipated over the next few quarters. Rinvoq's profile is competitively positioned for both of these chronic diseases, where our recently expanded U.S. derm field force will support both launches.

Jeffrey Stewart: RINVOQ's profile is competitively positioned for both of these chronic diseases, where our recently expanded US derm field force will support both launches. Lastly, in immunology, HUMIRA global sales were $756 million, down 36.1% on an operational basis, reflecting biosimilar competition and in line with our expectations.

Speaker #4: Lastly, in Immunology, Humira global sales were $756 million, down 36.1% on an operational basis, reflecting biosimilar competition and in line with our expectations. Moving to Neuroscience, where we once again outperformed our expectations.

Jeffrey Stewart: Moving to neuroscience, where we once again outperformed our expectations. Total revenues were more than $3.2 billion, up approximately 20% on an operational basis. All three of our leading neuro pillars continue to demonstrate robust sales growth. In psychiatry, VRAYLAR global sales were nearly $1.1 billion, up approximately 19%, reflecting share gains in both bipolar disorder and adjunctive MDD.

Speaker #4: Total revenues were more than $3.2 billion, up approximately 20% on an operational basis. All three of our leading neuro pillars continue to demonstrate robust sales growth.

Speaker #4: In psychiatry, Vraylar global sales were nearly $1.1 billion, up approximately 19%, reflecting share gains in both bipolar disorder and adjunctive MDD. In migraine, our leading portfolio continues to deliver outstanding results, with Botox Therapeutic, Ubrelvy, and Qlipta each delivering double-digit sales growth again this quarter.

Jeff Stewart: In migraine, our leading portfolio continues to deliver outstanding results with BOTOX therapeutic, UBRELVY, and QULIPTA each delivering double-digit sales growth again this quarter. QULIPTA is now approved in Europe for adults as both an acute treatment option for migraine attacks and as a once-daily preventative treatment option for chronic or episodic migraine. The acute indication expansion in international markets for QULIPTA further supports our long-term outlook for our oral CGRPs to collectively achieve more than $5 billion of peak sales. Moving to Parkinson's disease, another substantial long-term growth driver for AbbVie. Total sales for Vyalev were $256 million, up more than 27% on a sequential basis. Vyalev is well on track to achieve blockbuster sales this year, and we expect continued robust momentum in Parkinson's with the anticipated US approval and launch of tavapadone in Q3.

Jeffrey Stewart: In migraine, our leading portfolio continues to deliver outstanding results with BOTOX therapeutic, UBRELVY, and QULIPTA each delivering double-digit sales growth again this quarter. QULIPTA is now approved in Europe for adults as both an acute treatment option for migraine attacks and as a once-daily preventative treatment option for chronic or episodic migraine.

Speaker #4: Qlipta is now approved in Europe for adults as both an acute treatment option for migraine attacks, and as a once-daily preventative treatment option for chronic or episodic migraine.

Speaker #4: The acute indication expansion in international markets for Qlipta further supports our long-term outlook for our oral CGRPs, to collectively achieve more than $5 billion of peak sales.

Jeffrey Stewart: The acute indication expansion in international markets for QULIPTA further supports our long-term outlook for our oral CGRPs to collectively achieve more than $5 billion of peak sales. Moving to Parkinson's disease, another substantial long-term growth driver for AbbVie.

Speaker #4: Moving to Parkinson's disease, another substantial long-term growth driver for AbbVie. Total sales for VYALEV were $256 million, up more than 27% on a sequential basis. VYALEV is well on track to achieve blockbuster sales this year.

Jeffrey Stewart: Total sales for Vyalev were $256 million, up more than 27% on a sequential basis. Vyalev is well on track to achieve blockbuster sales this year, and we expect continued robust momentum in Parkinson's with the anticipated US approval and launch of tavapadone in Q3.

Speaker #4: And we expect continued robust momentum in Parkinson's, with the anticipated U.S. approval and launch of Tevapodon in the third quarter. Feedback from key opinion leaders has been very positive, with Tevapodon demonstrating strong efficacy as both a monotherapy as well as an add-on to standard of care.

Jeff Stewart: Feedback from key opinion leaders has been very positive, with tavapadone demonstrating strong efficacy as both a monotherapy as well as an add-on to standard of care. Overall, we believe our Parkinson's portfolio with Vyalev, tavapadone, and Duopa will be a substantial commercial opportunity. We continue to expect collective Parkinson's peak sales of more than $5 billion. Turning now to oncology, where total revenues were more than $1.6 billion, down 2.4% on an operational basis. Total VENCLEXTA sales were $771 million, up 9.6% on an operational basis. Performance in CLL continues to be strong as VENCLEXTA use in combination with BTK inhibitors is expanding as a preferred fixed-duration treatment globally. Double-digit sales growth from ELAHERE, EPKINLY, and EMRELIS also helped to partially offset the sales decline from IMBRUVICA, which was down 29.4% as expected due to IRA pricing and competitive share pressure.

Jeffrey Stewart: Feedback from key opinion leaders has been very positive, with tavapadone demonstrating strong efficacy as both a monotherapy as well as an add-on to standard of care. Overall, we believe our Parkinson's portfolio with Vyalev, tavapadone, and Duopa will be a substantial commercial opportunity.

Speaker #4: Overall, we believe our Parkinson's portfolio, with ViaLev, Tevapodon, and Duopa, will be a substantial commercial opportunity. We continue to expect collective Parkinson's peak sales of more than $5 billion.

Jeffrey Stewart: We continue to expect collective Parkinson's peak sales of more than $5 billion. Turning now to oncology, where total revenues were more than $1.6 billion, down 2.4% on an operational basis. Total VENCLEXTA sales were $771 million, up 9.6% on an operational basis. Performance in CLL continues to be strong as VENCLEXTA use in combination with BTK inhibitors is expanding as a preferred fixed-duration treatment globally.

Speaker #4: Turning now to oncology, where total revenues were more than $1.6 billion, down 2.4% on an operational basis. Total Venclexta sales were $771 million, up 9.6% on an operational basis.

Speaker #4: Performance in CLL continues to be strong, has Venclexta use in combination with BTK inhibitors, is expanding as a preferred fixed-duration treatment globally. Double-digit sales growth from Elahir, Eptenly, and Umbrellas also helped to partially offset the sales decline for Imbruvica, which was down 29.4% as expected, due to IRA pricing and competitive share pressure.

Jeffrey Stewart: Double-digit sales growth from ELAHERE, EPKINLY, and EMRELIS also helped to partially offset the sales decline from IMBRUVICA, which was down 29.4% as expected due to IRA pricing and competitive share pressure.

Speaker #4: We also launched Decnupast, a new therapeutic option for patients living with BPDCN, an ultra-rare form of blood cancer, further expanding AbbVie's emerging ADC portfolio.

Jeff Stewart: We also launched DECNUPAZ, a new therapeutic option for patients living with BPDCN, an ultra-rare form of blood cancer, further expanding AbbVie's emerging ADC portfolio. Moving now to aesthetics, which delivered global sales of nearly $1.3 billion, down 0.9% on an operational basis. BOTOX Cosmetic total revenues were $728 million, up 3.4% operationally, reflecting modest market growth globally. JUVÉDERM global sales were $245 million, down 6.6% operationally, reflecting continued headwinds in key dermal filler markets. As the industry leader, we continue to invest in this highly under-penetrated market to support long-term growth. I'm especially pleased with the recent Europe and Canada approvals of Boey, our fast-acting short-duration toxin. Boey complements our toxin portfolio very nicely and represents a new way for patients to initiate an aesthetic treatment. We expect Boey will meaningfully expand the toxin market and look forward to potentially bringing this exciting innovation to the US.

Jeffrey Stewart: We also launched DECNUPAZ, a new therapeutic option for patients living with BPDCN, an ultra-rare form of blood cancer, further expanding AbbVie's emerging ADC portfolio. Moving now to aesthetics, which delivered global sales of nearly $1.3 billion, down 0.9% on an operational basis.

Speaker #4: Moving now to aesthetics, which delivered global sales of nearly $1.3 billion, down 0.9% on an operational basis. Botox Cosmetic total revenues were $728 million, up 3.4% operationally, reflecting modest market growth globally.

Jeffrey Stewart: BOTOX Cosmetic total revenues were $728 million, up 3.4% operationally, reflecting modest market growth globally. JUVÉDERM global sales were $245 million, down 6.6% operationally, reflecting continued headwinds in key dermal filler markets.

Speaker #4: Juvederm global sales were $245 million, down 6.6% operationally, reflecting continued headwinds in key dermal filler markets. As the industry leader, we continue to invest in this highly under-penetrated market to support long-term growth.

Jeffrey Stewart: As the industry leader, we continue to invest in this highly under-penetrated market to support long-term growth. I'm especially pleased with the recent Europe and Canada approvals of Boey, our fast-acting short-duration toxin.

Speaker #4: I'm especially pleased with the recent Europe and Canada approvals of BOE, our fast-acting, short-duration toxin. BOE complements our toxin portfolio very nicely, and represents a new way for patients to initiate an aesthetic treatment.

Jeffrey Stewart: Boey complements our toxin portfolio very nicely and represents a new way for patients to initiate an aesthetic treatment. We expect Boey will meaningfully expand the toxin market and look forward to potentially bringing this exciting innovation to the US.

Speaker #4: We expect BOE will meaningfully expand the toxin market and look forward to potentially bringing this exciting innovation to the U.S. Overall, we continue to demonstrate outstanding commercial execution.

Jeff Stewart: Overall, we continue to demonstrate outstanding commercial execution. With that, I'll turn the call over to Roopal for comments on our R&D highlights. Roopal?

Jeffrey Stewart: Overall, we continue to demonstrate outstanding commercial execution. With that, I'll turn the call over to Roopal for comments on our R&D highlights. Roopal?

Speaker #4: And with that, I'll turn the call over to Roopal for comments on our R&D highlights. Roopal?

Speaker #1: Thank you, Jeff. I'll begin with dermatology programs and immunology. Rinvoq was approved in Europe for the treatment of severe alopecia and nonsegmental vitiligo. Applications are also under review in the U.S., with approval decisions anticipated later this year for vitiligo and early next year for alopecia areata.

Roopal Thakkar: Thank you, Jeff. I'll begin with dermatology programs in immunology. RINVOQ was approved in Europe for the treatment of severe alopecia and non-segmental vitiligo. Applications are also under review in the US, with approval decisions anticipated later this year for vitiligo and early next year for alopecia areata. In hidradenitis suppurativa, we remain on track for 16-week data later this year from both RINVOQ and lutikizumab phase III trials. In our early-stage dermatology pipeline, three programs were recently advanced into the clinic, including an IL-13/IL-31 receptor bispecific antibody for atopic dermatitis, an oral IL-23 receptor inhibitor for psoriasis, and a long-acting IL-1 alpha beta bispecific antibody for hidradenitis suppurativa. Turning to gastroenterology, the US application for SKYRIZI subcutaneous induction in Crohn's disease is under review, with an approval decision expected later this fall.

Speaker #1: In hydradenitis suppurativa, we remain on track for 16-week data later this year from both Rinvoq and Lutekizumab phase 3 trials. In our early-stage dermatology pipeline, three programs were recently advanced into the clinic, including an IL-13, IL-31 receptor bispecific antibody for atopic dermatitis, an oral IL-23 receptor inhibitor for psoriasis, and a long-acting IL-1 alpha beta bispecific antibody for hydradenitis suppurativa.

Roopal Thakkar: In hidradenitis suppurativa, we remain on track for 16-week data later this year from both RINVOQ and lutikizumab phase III trials. In our early-stage dermatology pipeline, three programs were recently advanced into the clinic, including an IL-13/IL-31 receptor bispecific antibody for atopic dermatitis, an oral IL-23 receptor inhibitor for psoriasis, and a long-acting IL-1 alpha beta bispecific antibody for hidradenitis suppurativa.

Speaker #1: Turning to gastroenterology, the U.S. application for Skyrizi subcutaneous induction in Crohn's disease is under review, with an approval decision expected later this fall. The subcutaneous regimen demonstrated very high levels of endoscopic response and clinical remission, with rates on both measures 25 points higher than placebo in the overall population.

Roopal Thakkar: Turning to gastroenterology, the US application for SKYRIZI subcutaneous induction in Crohn's disease is under review, with an approval decision expected later this fall.

Roopal Thakkar: The subcutaneous regimen demonstrated very high levels of endoscopic response and clinical remission, with rates on both measures 25 points higher than placebo in the overall population, and 45 points higher in patients who had not previously experienced advanced therapy. To our knowledge, these results in patients naive to advanced therapies are the highest reported for induction therapies in Crohn's disease, comparing very favorably to SKYRIZI IV and other approved agents. Full results from the study will be presented this fall, which will include additional important endpoints such as endoscopic remission. Startup activities are underway for our phase II-B combination trial in IBD. This multi-arm study will evaluate SKYRIZI plus a higher dose of our novel anti-α4β7 antibody and extended half-life TL1A antibody in both Crohn's disease and ulcerative colitis.

Speaker #1: And 45 points higher in patients who had not previously experienced advanced therapy. To our knowledge, these results in patients naive to advanced therapies are the highest reported for induction therapies in Crohn's disease, comparing very favorably to Skyrizi IV and other approved agents.

Roopal Thakkar: To our knowledge, these results in patients naive to advanced therapies are the highest reported for induction therapies in Crohn's disease, comparing very favorably to SKYRIZI IV and other approved agents.

Speaker #1: Full results from the study will be presented this fall, which will include additional important endpoints, such as endoscopic remission. Startup activities are underway for our phase 2B combination trial in IBD.

Roopal Thakkar: Full results from the study will be presented this fall, which will include additional important endpoints such as endoscopic remission. Startup activities are underway for our phase II-B combination trial in IBD. This multi-arm study will evaluate SKYRIZI plus a higher dose of our novel anti-α4β7 antibody and extended half-life TL1A antibody in both Crohn's disease and ulcerative colitis.

Speaker #1: This multi-arm study will evaluate Skyrizi plus a higher dose of our novel anti-alpha-4 beta-7 antibody and extended half-life TL1A antibody in both Crohn's disease and ulcerative colitis.

Speaker #1: Interim results for Skyrizi plus anti-alpha 4 beta 7 in Crohn's disease demonstrated a doubling of endoscopic remission at week 24, compared to either monotherapy.

Roopal Thakkar: Interim results for SKYRIZI plus anti-α4β7 in Crohn's disease demonstrated a doubling of endoscopic remission at week 24 compared to either monotherapy. This study is expected to complete this fall, final results will be submitted for presentation at a future medical meeting. Lastly, in immunology, we announced the planned acquisition of Apogee Therapeutics, which adds a portfolio of long-acting biologics targeting atopic dermatitis, respiratory conditions, and other immune-mediated diseases. These novel assets are highly complementary to our immunology strategy and further strengthen an already robust pipeline. Moving to neuroscience. QULIPTA was approved in Europe for the acute treatment of migraine, expanding options for patients. In Parkinson's disease, an FDA approval decision is expected in the Q3 for tavapadone.

Speaker #1: This study is expected to complete this fall, and final results will be submitted for presentation at a future medical meeting. And lastly, in immunology, we announced the planned acquisition of Apogee Therapeutics, which adds a portfolio of long-acting biologics targeting atopic dermatitis, respiratory conditions, and other immune-mediated diseases.

Roopal Thakkar: Lastly, in immunology, we announced the planned acquisition of Apogee Therapeutics, which adds a portfolio of long-acting biologics targeting atopic dermatitis, respiratory conditions, and other immune-mediated diseases.

Speaker #1: These novel assets are highly complementary to our immunology strategy and further strengthen an already robust pipeline. Moving to neuroscience, Qulipta was approved in Europe for the acute treatment of migraine, expanding options for patients.

Roopal Thakkar: These novel assets are highly complementary to our immunology strategy and further strengthen an already robust pipeline. Moving to neuroscience. QULIPTA was approved in Europe for the acute treatment of migraine, expanding options for patients. In Parkinson's disease, an FDA approval decision is expected in the Q3 for tavapadone.

Speaker #1: In Parkinson's disease, an FDA approval decision is expected in the third quarter for Tavapadan. Results from three Phase 3 trials demonstrated that this novel selective D1/D5 dopamine agonist has the potential to be a highly effective treatment for motor symptoms, with low rates of dyskinesia, edema, sedation, and impulse control disorder.

Roopal Thakkar: Results from three phase III trials demonstrated that this novel selective D1/D5 dopamine agonist has the potential to be a highly effective treatment for motor symptoms with low rates of dyskinesia, edema, sedation, and impulse control disorder. We look forward to bringing this innovation to patients later this year. In our early-stage neuroscience pipeline, multiple new trials were recently initiated, including a phase II study for a novel toxin, AGN-151607, in essential tremor, and a phase I-B study for ABBV-1758, a blood-brain barrier-crossing anti-pyroglutamate Aβ antibody in Alzheimer's disease. In schizophrenia, the multi-ascending dose study for emraclidine is nearing completion. The 100 milligram dose retained a safe and tolerable profile, 150 milligrams is now being evaluated. Dose selection for both schizophrenia and psychosis programs is expected in the coming months, and we remain on track to begin phase II studies in the Q4. Moving to solid tumor programs.

Speaker #1: We look forward to bringing this innovation to patients later this year. In our early-stage neuroscience pipeline, multiple new trials were recently initiated, including a phase 2 study for a novel toxin, Gemibade, in essential tremor, and a phase 1B study for ABBV-1758, a blood-brain barrier crossing antipyroglutamate A beta antibody in Alzheimer's disease.

Roopal Thakkar: We look forward to bringing this innovation to patients later this year. In our early-stage neuroscience pipeline, multiple new trials were recently initiated, including a phase II study for a novel toxin, AGN-151607, in essential tremor, and a phase I-B study for ABBV-1758, a blood-brain barrier-crossing anti-pyroglutamate Aβ antibody in Alzheimer's disease.

Speaker #1: In schizophrenia, the multi-ascending dose study for Imraclitine is nearing completion, the 100 milligram dose retained a safe and tolerable profile. And now, 150 milligrams is being evaluated.

Roopal Thakkar: In schizophrenia, the multi-ascending dose study for emraclidine is nearing completion. The 100 milligram dose retained a safe and tolerable profile, 150 milligrams is now being evaluated. Dose selection for both schizophrenia and psychosis programs is expected in the coming months, and we remain on track to begin phase II studies in the Q4. Moving to solid tumor programs.

Speaker #1: Dose selection for both schizophrenia and psychosis programs is expected in the coming months, and we remain on track to begin Phase 2 studies in the fourth quarter.

Speaker #1: Moving to solid tumor programs, progress with TMAB-A continues across a broad range of tumor types. In colorectal cancer, breakthrough therapy designation was granted for TMAB-A in combination with bevacizumab in refractory metastatic CRC.

Roopal Thakkar: Progress with teliso-V continues across a broad range of tumor types. In colorectal cancer, breakthrough therapy designation was granted for teliso-V in combination with bevacizumab in refractory metastatic CRC. This designation supports our phase III strategy in an all-comer third-line plus setting, the trial is now actively recruiting. In second-line CRC, data are expected later this year from a phase II study evaluating teliso-V combinations versus chemotherapy. These results will help inform the development strategy for teliso-V in first and second-line CRC as an irinotecan replacement. Early-stage results in ovarian and head and neck cancers were presented at the recent ASCO meeting, demonstrating teliso-V's potential in both tumor types. In platinum-resistant ovarian cancer, teliso-V showed strong anti-tumor activity, particularly in c-Met-selected patients, where response rates reached as high as 80%.

Speaker #1: This designation supports our phase 3 strategy in an all-tumor third-line plus setting, and the trial is now actively recruiting. In second-line CRC, data are expected later this year from a phase 2 study evaluating TMAB-A combinations versus chemotherapy.

Roopal Thakkar: In second-line CRC, data are expected later this year from a phase II study evaluating teliso-V combinations versus chemotherapy. These results will help inform the development strategy for teliso-V in first and second-line CRC as an irinotecan replacement.

Speaker #1: These results will help inform the development strategy for TMAB-A in first and second-line CRC, as in irinotecane replacement. Early-stage results in ovarian and head and neck cancers were presented at the recent ASCO meeting.

Roopal Thakkar: Early-stage results in ovarian and head and neck cancers were presented at the recent ASCO meeting, demonstrating teliso-V's potential in both tumor types. In platinum-resistant ovarian cancer, teliso-V showed strong anti-tumor activity, particularly in c-Met-selected patients, where response rates reached as high as 80%.

Speaker #1: Demonstrating TMAB-A's potential in both tumor types. In platinum-resistant ovarian cancer, TMAB-A showed strong anti-tumor activity. Particularly in CMET-selected patients, where response rates reached as high as 80 percent.

Speaker #1: TMAB-A also demonstrated a 50 percent response rate in clear cell carcinoma, a segment with high unmet need that typically does not respond well to cytotoxic therapy.

Roopal Thakkar: TMAB-A also demonstrated a 50% response rate in clear cell carcinoma, a segment with high unmet need that typically does not respond well to cytotoxic therapy. Plans to advance TMAB-A in ovarian cancer will be discussed with regulators over the coming months. In c-Met-selected patients with advanced head and neck cancer, TMAB-A demonstrated a 31% response rate and a median overall survival of 15.3 months, which compares favorably to standard of care. A phase II study evaluating TMAB-A plus pembrolizumab in frontline will start soon. In pancreatic cancer, a phase II study evaluating TMAB-A with FOLFOX as a frontline combination therapy was recently initiated. Turning to hematologic oncology, progress continues with etentamig across lines of therapy in multiple myeloma. An interim analysis is planned in Q3 for PFS from the monotherapy third-line plus trial.

Speaker #1: Plans to advance TMAB-A in ovarian cancer will be discussed with regulators over the coming months. In CMET-selected patients with advanced head and neck cancer, TMAB-A demonstrated a 31 percent response rate and a median overall survival of 15.3 months, which compares favorably to standard of care.

Roopal Thakkar: In c-Met-selected patients with advanced head and neck cancer, TMAB-A demonstrated a 31% response rate and a median overall survival of 15.3 months, which compares favorably to standard of care. A phase II study evaluating TMAB-A plus pembrolizumab in frontline will start soon.

Speaker #1: A Phase 2 study evaluating TMAB-A plus pembrolizumab in the front line will start soon. In pancreatic cancer, a Phase 2 study evaluating TMAB-A with FOLFOX as a front-line combination therapy was recently initiated.

Roopal Thakkar: In pancreatic cancer, a phase II study evaluating TMAB-A with FOLFOX as a frontline combination therapy was recently initiated. Turning to hematologic oncology, progress continues with etentamig across lines of therapy in multiple myeloma. An interim analysis is planned in Q3 for PFS from the monotherapy third-line plus trial.

Speaker #1: Turning to hematologic oncology, progress continues with etentamib across lines of therapy in multiple myeloma. An interim analysis is planned in the third quarter for progression-free survival from the monotherapy third-line plus trial.

Speaker #1: If this interim analysis is positive, regulatory submission would occur later this year. A phase 3 study evaluating etentamib in combination with pomalidomide in second-line plus patients, including those that were exposed or refractory to an anti-CD38 antibody, or who lost response to an anti-BCMA CAR-T or ADC, will begin by year-end.

Roopal Thakkar: If this interim analysis is positive, regulatory submission would occur later this year. A phase III study evaluating etentamig in combination with pomalidomide in second-line plus patients, including those that were exposed or refractory to an anti-CD38 antibody, or who lost response to an anti-BCMA CAR T or ADC, will begin by year-end. Additionally, encouraging early-stage results for etentamig in relapse refractory light chain amyloidosis were presented at the recent EHA Congress. At the 40 mg dose, 100% of patients achieved hematologic complete response with a promising safety profile that included no CRS or ICANS. Based on these results, a phase III trial in newly diagnosed patients is being planned. Also in hematology, DECNUPAZ received FDA approval for blastic plasmacytoid dendritic cell neoplasm, an ultra-rare and aggressive blood cancer.

Speaker #1: Additionally, encouraging early-stage results for ententamib in relapse refractory light chain amyloidosis were presented at the recent EHA Congress. 100 percent of patients achieved hematologic complete response, with a promising safety profile that included no CRS or ICANS.

Roopal Thakkar: Additionally, encouraging early-stage results for etentamig in relapse refractory light chain amyloidosis were presented at the recent EHA Congress. At the 40 mg dose, 100% of patients achieved hematologic complete response with a promising safety profile that included no CRS or ICANS.

Speaker #1: Based on these results, a Phase 3 trial in newly diagnosed patients is being planned. Also, in hematology, dechnopaz received FDA approval for blastic plasmacytoid dendritic cell neoplasm.

Roopal Thakkar: Based on these results, a phase III trial in newly diagnosed patients is being planned. Also in hematology, DECNUPAZ received FDA approval for blastic plasmacytoid dendritic cell neoplasm, an ultra-rare and aggressive blood cancer.

Speaker #1: An ultra-rare and aggressive blood cancer. As a new treatment alternative providing durable responses with a manageable safety profile and outpatient administration, Dechnopaz offers a meaningful benefit to patients with this rare cancer.

Roopal Thakkar: As a new treatment alternative providing durable responses with a manageable safety profile and outpatient administration, DECNUPAZ offers a meaningful benefit to patients with this rare cancer. Moving to aesthetics, our rapid onset and short duration toxin, Boey, was approved in Europe and Canada for the temporary improvement in appearance of glabellar lines. This marks an important milestone in aesthetic medicine. Boey was developed to allow patients to temporarily preview the benefits of cosmetic toxins without worrying about long-lasting results. Clinicians and patients now have another option to tailor treatment to individual needs and goals. In summary, we are making meaningful progress with our pipeline and look forward to additional important data readouts, regulatory submissions, and approvals throughout the remainder of 2026. With that, I'll turn the call over to Scott.

Speaker #1: Moving to aesthetics, our rapid onset and short-duration toxin BOE was approved in Europe and Canada, for the temporary improvement in appearance of glabellar lines.

Speaker #1: This marks an important milestone in aesthetic medicine. BOE was developed to allow patients to temporarily preview the benefits of cosmetic toxins without worrying about long-lasting results.

Roopal Thakkar: This marks an important milestone in aesthetic medicine. Boey was developed to allow patients to temporarily preview the benefits of cosmetic toxins without worrying about long-lasting results.

Speaker #1: Clinicians and patients now have another option to tailor treatment to individual needs and goals. In summary, we are making meaningful progress with our pipeline and look forward to additional important data readouts regulatory submissions and approvals throughout the remainder of 2026.

Roopal Thakkar: Clinicians and patients now have another option to tailor treatment to individual needs and goals. In summary, we are making meaningful progress with our pipeline and look forward to additional important data readouts, regulatory submissions, and approvals throughout the remainder of 2026. With that, I'll turn the call over to Scott.

Speaker #1: With that, I'll turn the call over to Scott.

Speaker #2: Thank you, Roopal. Starting with our second quarter results, we reported adjusted earnings per share of $3.65. Which is 6 cents above our guidance midpoint.

Scott Reents: Thank you, Roopal. Starting with our Q2 results, we reported adjusted earnings per share of $3.65, which is $0.06 above our guidance midpoint. These results include a $0.17 unfavorable impact from acquired IPR&D expense. Quarterly net revenues were nearly $17 billion, reflecting robust growth of 10.2%, including a 0.7% favorable impact from foreign exchange. Adjusted gross margin was 84.7% of sales, adjusted R&D expense was 13.6% of sales, and adjusted SG&A expense was 21% of sales. The adjusted operating margin was 48.3% of sales, which includes a 1.7% unfavorable impact from acquired IPR&D expense. Net interest expense was $679 million. The adjusted tax rate was 14.7%. Turning to our financial outlook, we are updating our full year adjusted earnings per share guidance to between $13.87 and $14.07.

Speaker #2: These results include a 17-cent unfavorable impact from acquired IPR&D expense. Quarterly net revenues were nearly $17 billion. Reflecting robust growth of 10.2 percent, including a 0.7 percent favorable impact from foreign exchange.

Scott Reents: Quarterly net revenues were nearly $17 billion, reflecting robust growth of 10.2%, including a 0.7% favorable impact from foreign exchange. Adjusted gross margin was 84.7% of sales, adjusted R&D expense was 13.6% of sales, and adjusted SG&A expense was 21% of sales.

Speaker #2: Adjusted gross margin was $84.7 percent of sales, adjusted R&D expense was $13.6 percent of sales, and adjusted SG&A expense was $21 percent of sales.

Speaker #2: The adjusted operating margin was $48.3 percent of sales, which includes a 1.7 percent unfavorable impact from acquired IPR&D expense. Net interest expense was $679 million, the adjusted tax rate was $14.7 percent.

Scott Reents: The adjusted operating margin was 48.3% of sales, which includes a 1.7% unfavorable impact from acquired IPR&D expense. Net interest expense was $679 million. The adjusted tax rate was 14.7%. Turning to our financial outlook, we are updating our full year adjusted earnings per share guidance to between $13.87 and $14.07.

Speaker #2: Turning to our financial outlook, we are updating our full-year adjusted earnings per share guidance to between $13.87 and $14.07. This update reflects a $0.10 improvement in the outlook for our existing business, based on strong second quarter results and continued momentum.

Scott Reents: This update reflects a $0.10 improvement in the outlook of our existing business based on strong Q2 results and continued momentum. It also now includes $0.14 of anticipated dilution related to the planned Apogee acquisition that is more than offsetting our underlying over-performance. We continue to expect that the Apogee transaction will close in Q3. This guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond Q2. We now expect total net revenues of approximately $67.6 billion, an increase of $300 million. This assumes a roughly 0.5% favorable impact from foreign exchange on full year sales growth, reflecting less benefit than our previous expectation. Our increased revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas.

Speaker #2: It also now includes $0.14 of anticipated dilution related to the planned Apogee acquisition, which is more than offsetting our underlying overperformance. We continue to expect that the Apogee transaction will close in the third quarter.

Speaker #2: This guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond the second quarter. We now expect total net revenues of approximately $67.6 billion.

Scott Reents: This guidance does not include an estimate for acquired IPR&D expense that may be incurred beyond Q2. We now expect total net revenues of approximately $67.6 billion, an increase of $300 million. This assumes a roughly 0.5% favorable impact from foreign exchange on full year sales growth, reflecting less benefit than our previous expectation. Our increased revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas.

Speaker #2: Increase of $300 million. This assumes a roughly 0.5 percent favorable impact from foreign exchange on full-year sales growth, reflecting less benefit than our previous expectation.

Speaker #2: Our increased revenue forecast includes the following approximate assumptions for several of our key products and therapeutic areas. We now expect Skyrizi Global revenues of $21.7 billion and increase of $100 million based on momentum across psoriatic and IBD indications.

Scott Reents: We now expect SKYRIZI global revenues of $21.7 billion, an increase of $100 million based on momentum across psoriatic and IBD indications. Total neuroscience revenues of $12.7 billion, an increase of $100 million, now reflecting VRAYLAR sales approaching $4.1 billion and BOTOX therapeutic sales approaching $4.2 billion. The remaining $100 million increase reflects momentum from RINVOQ and VENCLEXTA. Moving to the P&L for 2026, we continue to forecast full year adjusted gross margin above 84% of sales. We now expect adjusted R&D expense of approximately $9.8 billion, an increase of $100 million reflecting Apogee-related pipeline investments. We expect adjusted SG&A expense of approximately $14.5 billion as we continue to support our significant commercial momentum. We anticipate an adjusted operating margin ratio approaching 47% of sales.

Speaker #2: Total neuroscience revenues of $12.7 billion, an increase of $100 million, now reflecting Vraylar sales approaching $4.1 billion and Botox Therapeutic sales approaching $4.2 billion.

Speaker #2: The remaining $100 million increase reflects momentum from Rinvoq and Venclexta. Moving to the P&L for 2026, we continue to forecast full-year adjusted gross margin above 84% of sales.

Scott Reents: The remaining $100 million increase reflects momentum from RINVOQ and VENCLEXTA. Moving to the P&L for 2026, we continue to forecast full year adjusted gross margin above 84% of sales. We now expect adjusted R&D expense of approximately $9.8 billion, an increase of $100 million reflecting Apogee-related pipeline investments.

Speaker #2: We now expect adjusted R&D expense of approximately $9.8 billion, an increase of $100 million reflecting Apogee-related pipeline investments. We expect adjusted SG&A expense of approximately $14.5 billion, as we continue to support our significant commercial momentum.

Scott Reents: We expect adjusted SG&A expense of approximately $14.5 billion as we continue to support our significant commercial momentum. We anticipate an adjusted operating margin ratio approaching 47% of sales.

Speaker #2: We anticipate an adjusted operating margin ratio approaching 47 percent of sales, we also expect adjusted net interest expense of approximately $2.9 billion. An increase of $200 million which reflects the partial-year financing cost of the planned Apogee transaction.

Scott Reents: We also expect adjusted net interest expense of approximately $2.9 billion, an increase of $200 million, which reflects the partial year financing cost of the planned Apogee transaction. Finally, we now forecast our non-GAAP tax rate to be approximately 14.5%, which reflects the impact of acquired IPR&D. Turning to Q3, we anticipate net revenues of approximately $17.2 billion, which includes an estimated 0.4% unfavorable impact from foreign exchange. We also forecast adjusted earnings per share between $3.84 and $3.88. This guidance contemplates a partial quarter of dilution related to the planned Apogee transaction but does not include acquired IPR&D expense that may be incurred in the quarter. Finally, AbbVie is financially well-positioned to complete the planned Apogee acquisition. We have secured interim financing and expect to issue long-term debt in the coming months.

Speaker #2: Finally, we now forecast our non-GAAP tax rate to be approximately 14.5%, which reflects the impact of acquired IPR&D. Turning to the third quarter, we anticipate net revenues of approximately $17.2 billion.

Scott Reents: Turning to Q3, we anticipate net revenues of approximately $17.2 billion, which includes an estimated 0.4% unfavorable impact from foreign exchange. We also forecast adjusted earnings per share between $3.84 and $3.88.

Speaker #2: Which includes an estimated $0.4 percent unfavorable impact from foreign exchange. We also forecast adjusted earnings per share between $3.84 and $3.88. This guidance contemplates a partial quarter of dilution related to the planned Apogee transaction but does not include acquired IPR&D expense that may be incurred in the quarter.

Scott Reents: This guidance contemplates a partial quarter of dilution related to the planned Apogee transaction but does not include acquired IPR&D expense that may be incurred in the quarter. Finally, AbbVie is financially well-positioned to complete the planned Apogee acquisition. We have secured interim financing and expect to issue long-term debt in the coming months.

Speaker #2: Finally, AbbVie is financially well-positioned to complete the planned Apogee acquisition. We have secured interim financing and expect to issue long-term debt in the coming months.

Speaker #2: We remain committed to achieving a net leverage ratio of 2 times within 2 to 3 years following the deal close. Importantly, based on our strong cash flows, balance sheet, and business outlook, we continue to have substantial financial flexibility to pursue additional innovative business development.

Scott Reents: We remain committed to achieving a net leverage ratio of 2x within two to three years following the deal close. Importantly, based on our strong cash flows, balance sheet, and business outlook, we continue to have substantial financial flexibility to pursue additional innovative business development. In closing, AbbVie continues to deliver outstanding performance, and we are carrying significant momentum into H2 2026. With that, I'll turn the call back over to Liz.

Speaker #2: In closing, AbbVie continues to deliver outstanding performance, and we are carrying significant momentum into the second half of 2026. With that, I'll turn the call back over to Liz.

Speaker #3: Thanks, Scott. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two.

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

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

Speaker #3: Operator, we'll take the first question.

Speaker #4: Thank you. And as a reminder, that is STAR 1 if you have a question. We'll go first to Terrence Flynn with Morgan Stanley.

Operator: Thank you. As a reminder, that is star one if you have a question. We will go first to Terence Flynn with Morgan Stanley.

Speaker #5: Great, congrats on the progress. Maybe a two-part question for me on Skyrizi. I know you have the FDA action on the subcutaneous formulation for induction coming up this fall.

Terence Flynn: Great. Congrats on all the progress. Maybe a two-part for me on SKYRIZI. I know you have the FDA action on the subcutaneous formulation for induction coming up this fall. Maybe, Roopal, you could just speak through confidence in that approval. Is everything on manufacturing lined up? Just want to make sure there's no issues there. Then on SKYRIZI plus alpha 4 beta 7, some very exciting data. Looking forward to seeing that. Can you confirm yet if that will be at the UEGW conference in the fall? Thank you.

Speaker #5: Maybe Roopal, you could just speak through confidence in that approval. Is everything on manufacturing lined up? Just want to make sure there's no issues there.

Terence Flynn: Just want to make sure there's no issues there. Then on SKYRIZI plus alpha 4 beta 7, some very exciting data. Looking forward to seeing that. Can you confirm yet if that will be at the UEGW conference in the fall? Thank you.

Speaker #5: And then on Skyrizi plus alpha-4 beta-7, some very exciting data—looking forward to seeing that. Can you confirm yet if that will be at the UEGW conference in the fall?

Speaker #5: Thank you.

Speaker #2: Thanks, Terrence. It's Roopal. So on the CD subcutaneous Skyrizi, as I highlighted, very strong data. It is with Skyrizi, so it's an asset well known to health authorities, and manufacturing is very well known to us.

Roopal Thakkar: Thanks, Terence. It's Roopal. On the CD subcutaneous SKYRIZI, as I highlighted, very strong data. It is with SKYRIZI, so it's an asset well known to health authorities, and manufacturing is very well known to us, so we have a very complete submission that's in front of the agency, and so far, that review is going according to plan, no concerns at this moment. Then on the alpha 4 beta 7 combo data, I didn't specifically call out a meeting because of the timing. What we provided earlier was interim data. As the rest of it comes in, we would obviously try for later this fall, and if we're unable to get into that window, then it would go into next year congresses.

Speaker #2: So, we have a very complete submission that's in front of the agency, and so far that review is going according to plan. So, no concerns at this moment.

Speaker #2: And then on the alpha 4 beta 7 combo data, you know, I didn't specifically call out a meeting because of the timing. What we provided earlier was interim data.

Roopal Thakkar: Then on the alpha 4 beta 7 combo data, I didn't specifically call out a meeting because of the timing. What we provided earlier was interim data. As the rest of it comes in, we would obviously try for later this fall, and if we're unable to get into that window, then it would go into next year congresses.

Speaker #2: So as the rest of it comes in, we would obviously try for later this fall, and if we're unable to get into that window, then it would go into next year's Congresses.

Speaker #2: So either way, we're very excited to show more of that data. And like I said, it could be in the fall, and if that's not possible, we'll see it next year.

Roopal Thakkar: Either way, we're very excited to show more of that data, and like I said, could be in the fall, and if not possible, we'll see it next year.

Speaker #3: Thanks, Terrence. Operator, next question, please.

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

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

Speaker #4: Yes, ma'am. We'll go next to Carter Gould with Cantor Fitzgerald.

Operator: Yes, ma'am. We'll go next to Carter Gould with Cantor Fitzgerald.

Speaker #5: Great, good morning. Thanks for taking the question. Follow-up for Roopal. The Phase 2 that you've talked about starting with the alpha 4 beta 7, it's a bit of a beast.

Carter Gould: Great. Good morning. Thanks for taking the question. A follow-up for Roopal. The phase II that you've talked about starting with the α4β7, it's a bit of a beast, 2,000 patients across a number of settings. Can you maybe just set the stage there? In the past, you've talked about the speed, not waiting potentially for the full phase II data before moving to phase III. Is that still on the cards? In that study, it also talks about ABBV-466 with SKYRIZI and trosunilimab. Is that a co-formulation or just a co-administration? Thank you.

Speaker #5: 2,000 patients across a number of settings. Can you maybe just set the stage there? In the past, you've talked about the speed—not necessarily waiting for the full Phase 3 data or Phase 2 data before moving to Phase 3.

Carter Gould: In the past, you've talked about the speed, not waiting potentially for the full phase II data before moving to phase III. Is that still on the cards? In that study, it also talks about ABBV-466 with SKYRIZI and trosunilimab. Is that a co-formulation or just a co-administration? Thank you.

Speaker #5: Is that still in the cards? And in that study, it also talks about ABBV-466 with Skyrizi and Trosalilamab. Is that a co-formulation or just a co-administration?

Speaker #5: Thank you.

Speaker #2: Yeah, thanks for the question. Yes, it is a large study. It's a platform study, similar to what we've run before. Skyrizi is the anchor asset.

Roopal Thakkar: Thanks for the question. It's a large study. It's a platform study similar to what we've run before. SKYRIZI is the anchor asset. We will be combining trosu or the α4β7 at even a higher dose than we studied previously. We are, in parallel, working on co-formulation. The intent at launch for any of these assets in combination with SKYRIZI and IBD would be a co-formulation. That data would be collected in Crohn's and ulcerative colitis in combination with SKYRIZI. The reasoning for the scale of that study is also the TL1A is in that trial as well, combined with SKYRIZI in Crohn's disease and ulcerative colitis. The enrollment should be starting any moment where a patient will be entered. The trial is ready to go. The other question was around when we can start seeing data.

Speaker #2: We'll be combining Trosa or the alpha-4 beta-7 at an even higher dose than we studied previously. We are, in parallel, working on co-formulation.

Speaker #2: So, the intent at launch for any of these assets, in combination with Skyrizi and IBD, would be a co-formulation. So, that data would be collected in Crohn's and ulcerative colitis.

Roopal Thakkar: That data would be collected in Crohn's and ulcerative colitis in combination with SKYRIZI. The reasoning for the scale of that study is also the TL1A is in that trial as well, combined with SKYRIZI in Crohn's disease and ulcerative colitis. The enrollment should be starting any moment where a patient will be entered. The trial is ready to go. The other question was around when we can start seeing data.

Speaker #2: In combination with Skyrizi, and then also, the reasoning for the scale of that study is that the TL1A is in that trial as well, combined with Skyrizi.

Speaker #2: In Crohn's disease and ulcerative colitis, the enrollment should be starting any moment, where a patient will be entered. The trial is ready to go.

Speaker #2: The other question was around when we can start seeing data. We don't have an intention to wait till the end. If we we will take a couple interim snapshots and if we see for example the higher dose of Trosa or the Alpha 4 beta 7 agent, is supporting higher efficacy, then we would start making plans to move into Phase 3 with that combination.

Roopal Thakkar: We do not have an intention to wait until the end. We will take a couple interim snapshots, and if we see, for example, the higher dose of trosu or the α4β7 agent is supporting higher efficacy, we would start making plans to move into phase III with that combination. The same goes for the TL1A. If we start seeing really strong data, we would start moving quickly into phase III. We would anticipate right now, hopefully in H1 2028, being able to kick off phase III programs in IBD.

Speaker #2: And same goes for the TL1A. If we start seeing really strong data, we would start moving quickly into Phase 3. We would anticipate right now, hopefully in the first half of 2028, being able to kick off Phase 3 programs in IBD.

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

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

Speaker #3: Thanks, Carter. Operator, next question, please.

Speaker #4: Yes, ma'am. We'll go next to Chris Schott with JPMorgan.

Operator: Yes, ma'am. We will go next to Chris Schott with J.P. Morgan.

Speaker #5: Great, thanks so much for the questions. Can I just come back to Skyrizi in psoriasis? I know you just made some comments in terms of the launch of Eikatide and the impact, or I guess lack of impact, that's had there.

Chris Schott: Great. Thanks so much for the questions. Can I just come back to SKYRIZI in psoriasis? I know you just made some comments in terms of the launch of Icatib and the impact, or I guess, lack of impact that's had there. Can you elaborate a bit more of just what you're seeing in terms of dynamics in psoriasis and just how much more growth opportunity there is for SKYRIZI in the setting, given the higher penetration rates? A quick second question is looking ahead to the upcoming readouts for lutikizumab and RINVOQ in HS. Can you just talk about your relative confidence in those two assets and the role you see each playing in the market there? Thanks so much.

Speaker #5: Just can you elaborate a bit more of just what you're seeing in terms of dynamics in psoriasis and just how much more growth opportunity there is for Skyrizi in this setting given the higher penetration rates?

Chris Schott: Can you elaborate a bit more of just what you're seeing in terms of dynamics in psoriasis and just how much more growth opportunity there is for SKYRIZI in the setting, given the higher penetration rates? A quick second question is looking ahead to the upcoming readouts for lutikizumab and RINVOQ in HS. Can you just talk about your relative confidence in those two assets and the role you see each playing in the market there? Thanks so much.

Speaker #5: Just then a quick second question is looking ahead to the upcoming readouts for LUTI and Rinvoq and HS. Can you just talk about your relative confidence in those two assets and the role you see each playing in the market there?

Speaker #5: Thanks so much.

Speaker #6: Yeah, hi, it's Jeff. I'll take the first question and you know, as I mentioned, the profile is very, very strong as you know. The skin clearance, the joint protection, the safety, the convenience, it's a very unique product.

Jeff Stewart: Yeah. Hi, it's Jeff. I'll take the first question. As I mentioned, the profile is very strong as you know. The skin clearance, the joint protection, the safety, the convenience, it's a very unique product. That's why I think we have such a high capture rate. We see a couple of things in the market, and I'll highlight them. We've not seen a material change in our momentum since the launch of Iko. One of the things that we look at, I'll give you a couple of data points. We have a fairly detailed Symphony model, which looks at sort of sequential share. What we can see since the launch of Iko, the vast majority of Iko share that we see is being sourced from the two other orals in the marketplace, and that's pretty similar to what we had expected.

Jeffrey Stewart: Yeah. Hi, it's Jeff. I'll take the first question. As I mentioned, the profile is very strong as you know. The skin clearance, the joint protection, the safety, the convenience, it's a very unique product. That's why I think we have such a high capture rate. We see a couple of things in the market, and I'll highlight them.

Speaker #6: And that's why I think we have such a high capture rate. We see a couple of things in the market, and I'll highlight them.

Speaker #6: We've not seen a material change in our momentum since the launch of ICO. So, one of the things that we look at—I'll give you a couple of data points.

Jeffrey Stewart: We've not seen a material change in our momentum since the launch of Iko. One of the things that we look at, I'll give you a couple of data points. We have a fairly detailed Symphony model, which looks at sort of sequential share. What we can see since the launch of Iko, the vast majority of Iko share that we see is being sourced from the two other orals in the marketplace, and that's pretty similar to what we had expected.

Speaker #6: You know, we have a fairly detailed Symphony model, which looks at sort of sequential share. And what we can see since the launch of ICO, the vast majority of ICO share that we see is being sourced from the two other orals in the marketplace.

Speaker #6: And that's pretty similar to what we had expected. I think the other thing, which is even more important, is a sort of quantum measurement.

Jeff Stewart: I think the other thing which is even more important, it's a sort of a quantum measurement. Just to put a fine point on it, we can track, we can actually see our raw MBRx data in the derm and psoriasis market. This, of course, is our new starts as well as our switching starts, classical MBRx. When we look at the data from the launch of Iko, we've absolutely seen no degradation in any of our MBRx trends. In fact, they've actually grown from the launch of Iko in March. That leads to another point that's probably accurate as we continue to monitor, is there's still significant headroom in the moderate to severe psoriatic space. A large percentage of patients in the United States and around the world are still not on an advanced therapy.

Jeffrey Stewart: I think the other thing which is even more important, it's a sort of a quantum measurement. Just to put a fine point on it, we can track, we can actually see our raw MBRx data in the derm and psoriasis market. This, of course, is our new starts as well as our switching starts, classical MBRx. When we look at the data from the launch of Iko, we've absolutely seen no degradation in any of our MBRx trends.

Speaker #6: So just to put a fine point on it, when we can track, we can actually see our raw MBRx data in the derm and psoriasis market.

Speaker #6: And this, of course, is our new starts as well as our switching starts—you know, classical MBRX. And when we look at the data from the launch of ICO, we've absolutely seen no degradation in any of our MBRX trends.

Speaker #6: In fact, they've actually grown since the launch of ICO in March. So that leads to another point that's probably accurate as we continue to monitor—there's still significant headroom in the moderate to severe psoriatic space.

Jeffrey Stewart: In fact, they've actually grown from the launch of Iko in March. That leads to another point that's probably accurate as we continue to monitor, is there's still significant headroom in the moderate to severe psoriatic space. A large percentage of patients in the United States and around the world are still not on an advanced therapy.

Speaker #6: A large percentage of patients in the United States and around the world are still not on an advanced therapy. So we do, of course, factor competitive dynamics into our competitive set.

Jeff Stewart: We do, of course, factor in competitive dynamics into our competitive set, and we'll continue to monitor. We're quite pleased with the SKYRIZI momentum, and we think it will continue given the robustness of this marketplace.

Jeffrey Stewart: We do, of course, factor in competitive dynamics into our competitive set, and we'll continue to monitor. We're quite pleased with the SKYRIZI momentum, and we think it will continue given the robustness of this marketplace.

Speaker #6: And we'll continue to monitor, but we're quite pleased with the Skyrizi momentum, and we think it will continue given the robustness of this marketplace.

Speaker #2: And Chris, this is Rob. I'll just add, I mean, we've always viewed this as a market-expanding competitive launch, and that's exactly how we're seeing it.

Rob Michael: Chris, this is Rob. I'll just add, I mean, we've always viewed this as a market-expanding competitive launch, and that's exactly how we're seeing it. Obviously, we're still investing. I think you've seen some disease awareness investments that we've made, so we are seeing very nice momentum continue. I think Jeff's point that he's highlighting here that we're actually seeing an acceleration of NBRx growth for SKYRIZI since the launch of Iko just further supports our view that is more of a market-expanding opportunity.

Robert Michael: Chris, this is Rob. I'll just add, I mean, we've always viewed this as a market-expanding competitive launch, and that's exactly how we're seeing it. Obviously, we're still investing. I think you've seen some disease awareness investments that we've made, so we are seeing very nice momentum continue.

Speaker #2: Obviously, we're still investing. I think you've seen some disease awareness investments that we've made, and so we are seeing very nice momentum continue.

Speaker #2: And I think Jeff's point that he's highlighting here—that we're actually seeing an acceleration of MBRx growth for Skyrizi since the launch of IBD—just further supports our view that that is more of a market-expanding opportunity.

Robert Michael: I think Jeff's point that he's highlighting here that we're actually seeing an acceleration of NBRx growth for SKYRIZI since the launch of Iko just further supports our view that is more of a market-expanding opportunity.

Speaker #5: And Chris, it's Roopal regarding the HS questions. You know, we have observed other failures in the space in HS over the years. And we did our best to design two very robust studies and enrollment has gone very well.

Roopal Thakkar: Chris, it's Roopal regarding the HS questions. We have observed other failures in the space in HS over the years, we did our best to design two very robust studies, and enrollment has gone very well. I would say training is very important for the sites. Patient selection is very important to make sure you're picking up moderate and severe disease. As we look at the distinction between Ludi and RINVOQ, the lutikizumab studies are enrolling patients that were naive to advanced therapies or biologics, along with those that had failed, for example, let's say anti-TNFs. The primary endpoint there is a HiSCR 75, so a more stringent endpoint, while including more naive patients. When we look at the RINVOQ design, that is coming post-biologic, so for example, post-HUMIRA.

Speaker #5: I would say training is very important for the sites. Patient selection is very important to make sure you're picking up moderate and severe disease.

Speaker #5: As we look at the distinction between LUTI and Rinvoq, the LUTI-Kezumab studies are enrolling patients that were naive to advanced therapies or biologics, along with those.

Roopal Thakkar: As we look at the distinction between Ludi and RINVOQ, the lutikizumab studies are enrolling patients that were naive to advanced therapies or biologics, along with those that had failed, for example, let's say anti-TNFs. The primary endpoint there is a HiSCR 75, so a more stringent endpoint, while including more naive patients. When we look at the RINVOQ design, that is coming post-biologic, so for example, post-HUMIRA.

Speaker #5: That had failed, for example, let's say anti-TNFs. And the primary endpoint there is high score 75, so a more stringent endpoint. While including more naive patients.

Speaker #5: When we look at the Rinvoq design, that is coming post-biologics. So for example, post-Humira. And given that that's 100% after that one has a high score 50 and we'll have secondary endpoints that we'll look at high score.

Roopal Thakkar: Given that that's 100% after, that one has a HiSCR 50, and we'll have secondary endpoints that will look at HiSCR 75. These are things that we are doing to manage the trial outcomes to ensure as high a probability of success as we can. How I describe the eligibility criteria for these two trials will be our go-to market strategy, which is very consistent what we have executed, I would say, very well. Jeff's team's done a fantastic job in IBD with SKYRIZI and RINVOQ. Something similar is how we're thinking here, where Ludi, based on the robust safety profile we observed in phase II, along with strong efficacy, could allow that to be in earlier lines of patients. RINVOQ, as we've seen over the years across multiple indications, works well as a later line after advanced therapy.

Speaker #5: So these are things that we were doing to manage the trial outcomes to ensure as high a probability of success as we can.

Speaker #5: And how I describe the eligibility criteria for these two trials, will be our go-to market strategy which is very consistent what we have executed I would say very well.

Roopal Thakkar: How I describe the eligibility criteria for these two trials will be our go-to market strategy, which is very consistent what we have executed, I would say, very well. Jeff's team's done a fantastic job in IBD with SKYRIZI and RINVOQ.

Speaker #5: Jeff's team's done a fantastic job in IBD with Skyrizi and Rinvoq. And something similar is how we're thinking here, where LUTI, based on the robust safety profile we observed in Phase 2 along with strong efficacy, could allow that to be in earlier lines of patients.

Roopal Thakkar: Something similar is how we're thinking here, where Ludi, based on the robust safety profile we observed in phase II, along with strong efficacy, could allow that to be in earlier lines of patients. RINVOQ, as we've seen over the years across multiple indications, works well as a later line after advanced therapy.

Speaker #5: And Rinvoq, as we've seen over the years across multiple indications, works well as a later line after advanced therapies. So based on those designs, you would see a similar profile in the market with those two agents just like you've seen very successfully in IBD.

Roopal Thakkar: Based on those designs, you would see a similar profile in the market with those two agents, just like you've seen very successfully in IBD.

Speaker #1: Thanks, Chris. Operator, next question, please.

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

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

Speaker #4: Yes, we'll go next to Michael Yee with UBS.

Operator: Yes. We'll go next to Michael Yee with UBS.

Speaker #7: Thank you. Maybe just pivoting away from immunology for one second. Can you just talk a little bit about your expectations on Tevapodon launch ultimately and how you see this playing out and what could be a slow start, fast start?

Michael Yee: Thank you. Maybe just pivoting away from immunology for one second. Can you just talk a little bit about your expectations on tavapadone launch ultimately, and how you see this playing out and what could be a slow start, fast start? Maybe just talk a little bit about how you think about that. Similarly in CNS, which you've talked a lot about seeking to grow, you also have a brain shuttle as well, and just wanted to understand a little bit about how you think that's differentiated as there's obviously a lot of interest here given what's going on in Alzheimer's. Thank you.

Speaker #7: Maybe just talk a little bit about how you think about that. And then similarly in CNS, which you've talked a lot about, seeking to grow, you also have a Boeing shuttle as well.

Michael Yee: Maybe just talk a little bit about how you think about that. Similarly in CNS, which you've talked a lot about seeking to grow, you also have a brain shuttle as well, and just wanted to understand a little bit about how you think that's differentiated as there's obviously a lot of interest here given what's going on in Alzheimer's. Thank you.

Speaker #7: And just wanted to understand a little bit about how you think that's differentiated as there's obviously a lot of interest here given what's going on in Alzheimer's.

Speaker #7: Thank you.

Speaker #2: Yeah, thanks for the question. I'm glad you brought up Tevapodon because it's a key piece of our overall long-term strategy for growth in Parkinson's, as I highlighted in my remarks.

Jeff Stewart: Yeah. Thanks for the question. I'm glad you brought up tavapadone because it's a key piece of our overall long-term strategy for growth in Parkinson's, as I highlighted in my remarks. Tavapadone is a very, very unique product. There's nothing else like it in the marketplace. It's the first selective D1/D5 agonist. Obviously we'll have both a monotherapy indication as well as an add-on to levodopa carbidopa orals, the standard of care. It's quite remarkable data that we see. Certainly, one of the most impressive dynamics that the thought leaders are very excited about is after 85 weeks of long-term utilization of tavapadone, more than 90-plus% of patients don't need to basically increase their dose of levodopa carbidopa. Essentially, it kind of pauses the motor dysfunction, which is really, really critical. There's a belief that that, of course, will then spare the dyskinesia.

Jeffrey Stewart: Yeah. Thanks for the question. I'm glad you brought up tavapadone because it's a key piece of our overall long-term strategy for growth in Parkinson's, as I highlighted in my remarks. Tavapadone is a very, very unique product. There's nothing else like it in the marketplace. It's the first selective D1/D5 agonist.

Speaker #2: Tevapodon is a very, very unique product. There's nothing else like it in the marketplace. It's the first selective D1, D5 agonist, and obviously we'll have both a monotherapy indication as well as an add-on to levodopa/carbidopa orals, the standard of care.

Jeffrey Stewart: Obviously we'll have both a monotherapy indication as well as an add-on to levodopa carbidopa orals, the standard of care. It's quite remarkable data that we see. Certainly, one of the most impressive dynamics that the thought leaders are very excited about is after 85 weeks of long-term utilization of tavapadone, more than 90-plus% of patients don't need to basically increase their dose of levodopa carbidopa.

Speaker #2: And it's quite remarkable data that we see. Certainly, one of the most impressive dynamics that the thought leaders are very excited about is, after 85 weeks of long-term utilization of Tevapodon, more than 90—90 plus—percent of patients don't need to basically increase their dose of levodopa/carbidopa.

Speaker #2: So essentially, it kind of pauses the motor dysfunction, which is really, really critical. And there's a belief that that, of course, will then spare the dyskinesia that's just, you know, the hallmark of what happens over time.

Jeffrey Stewart: Essentially, it kind of pauses the motor dysfunction, which is really, really critical. There's a belief that that, of course, will then spare the dyskinesia.

Jeff Stewart: That's just the hallmark of what happens over time. It's very impressive. The other thing that's impressive and very distinctive is very low rates of sedation or so-called sleep attacks, which are very challenging in this population, low rates of edema, and really impulse control disorder. That profile of efficacy and safety and distinctiveness is quite attractive. Now, to get to the nub of your question, we do see that the ramp will be modest at first, and I'll tell you why. It's not the profile of the medication. It's largely because based on the timing of the approval, we will not be immediately added into the Medicare formularies. That's going to take some more time based on the way those negotiation works, et cetera.

Jeffrey Stewart: That's just the hallmark of what happens over time. It's very impressive. The other thing that's impressive and very distinctive is very low rates of sedation or so-called sleep attacks, which are very challenging in this population, low rates of edema, and really impulse control disorder.

Speaker #2: So it's very impressive. The other thing that's impressive and very distinctive is low, very low rates of sedation or so-called sleep attacks which are very challenging in this population low rates of edema and really impulse control disorder.

Speaker #2: So that profile of efficacy and safety and distinctiveness is quite attractive. Now, to get to the nub of your question, we do see that the ramp will be modest at first.

Jeffrey Stewart: That profile of efficacy and safety and distinctiveness is quite attractive. Now, to get to the nub of your question, we do see that the ramp will be modest at first, and I'll tell you why. It's not the profile of the medication. It's largely because based on the timing of the approval, we will not be immediately added into the Medicare formularies. That's going to take some more time based on the way those negotiation works, et cetera.

Speaker #2: And I'll tell you why. It's not the profile of the medication. It's largely because, based on the timing of the approval, we will not be immediately added into the Medicare formularies.

Speaker #2: That's going to take some more time based on the way those negotiations work, et cetera. But nonetheless, we believe that this will be a substantial addition to the marketplace and a clear contributor to that greater than $5 billion peak potential.

Jeff Stewart: Nonetheless, we believe that this will be a substantial addition to the marketplace and a clear contributor to that greater than $5 billion peak potential. Lots of excitement for tavapadone.

Jeffrey Stewart: Nonetheless, we believe that this will be a substantial addition to the marketplace and a clear contributor to that greater than $5 billion peak potential. Lots of excitement for tavapadone.

Speaker #2: So lots of excitement for Tevapodon.

Speaker #5: And Michael, it's Roopal regarding the 1758 or the Haliade asset. So that has now entered into 1b setting, so patients who have disease, and the molecule was built to have an extended half-life, and we've observed that with the PK data in the first-in-human studies.

Roopal Thakkar: Michael, it's Roopal regarding the 1758 or the Aliada asset. That has now entered into I-B setting, so patients who have disease. The molecule was built to have an extended half-life, and we've observed that with the PK data in the first-in-human studies. The other thing we wanted was a better cerebrospinal fluid penetration than we saw with a naked antibody, which let's say is around 0.1%, 0.2%. This is over 1%, so severalfold higher. The transport is working. If we're able to get more into the CSF and an extended half-life, you can take down plaque, and specifically this is targeting Aβ, the pyroglutamate type, which we think is the more toxic species. We think that could set up a potential for a subcutaneous agent that could be dosed monthly. We're looking for simplicity in the patient experience.

Speaker #5: The other thing we wanted was a better cerebrospinal fluid penetration than we saw with a naked antibody which let's say is around 0.1, 0.2%.

Roopal Thakkar: The other thing we wanted was a better cerebrospinal fluid penetration than we saw with a naked antibody, which let's say is around 0.1%, 0.2%. This is over 1%, so severalfold higher. The transport is working.

Speaker #5: This is over 1%, so several-fold higher. So the transport is working. If we're able to get more into the CSF and have an extended half-life, and you can take down plaque—specifically, this is targeting Aβ, the pyroglutamate type, which we think is the more toxic species.

Roopal Thakkar: If we're able to get more into the CSF and an extended half-life, you can take down plaque, and specifically this is targeting Aβ, the pyroglutamate type, which we think is the more toxic species. We think that could set up a potential for a subcutaneous agent that could be dosed monthly. We're looking for simplicity in the patient experience.

Speaker #5: We think that could set up a potential for a subcutaneous agent that could be dosed monthly. So we're looking for a simplicity in the patient experience so I would say by next year we should start seeing data in scans to see if we can clear the brain as much as possible and if we see that this would rapidly move and in parallel we're also working on our anti-Tau program utilizing siRNA and the same shuttle technology what we've observed today is mostly intrathecal approaches we think that can be challenging and if we can deliver an siRNA using similar technology with from Aliada that could be another benefit.

Roopal Thakkar: I would say by next year, we should start seeing data in scans to see if we can clear the brain as much as possible. If we see that, this would rapidly move. In parallel, we're also working on our anti-tau program utilizing siRNA and the same shuttle technology. What we've observed today is mostly intrathecal approaches. We think that can be challenging. If we can deliver an siRNA using similar technology from Aliada, that could be another benefit ultimately down the road. I think everyone has commented on this to approach Alzheimer's will likely require a combination approach, and I would say AbbVie is well-positioned to go after this and hopefully one day help as many patients as possible.

Roopal Thakkar: What we've observed today is mostly intrathecal approaches. We think that can be challenging. If we can deliver an siRNA using similar technology from Aliada, that could be another benefit ultimately down the road.

Speaker #5: Ultimately down the road I think everyone has commented on this to approach Alzheimer's will likely require a combination approach and I would say AbbVie is well positioned to go after this and hopefully one day help as many patients as possible.

Roopal Thakkar: I think everyone has commented on this to approach Alzheimer's will likely require a combination approach, and I would say AbbVie is well-positioned to go after this and hopefully one day help as many patients as possible.

Speaker #1: Thank you, Michael. Operator, next question please.

Liz Shea: Thank you, Michael. Operator, next question, please.

Elizabeth Shea: Thank you, Michael. Operator, next question, please.

Speaker #4: Yes, we'll go next to Mohit Bansal with Wells Fargo.

Operator: Yes. We'll go next to Mohit Bansal with Wells Fargo.

Speaker #6: Hey, thank you very much for taking my question. So I want to come back to HS and the biggest debate like when you talk to KOS is that is this or is IL-1 is simply another inflammatory mechanism for HS or it could become meaningfully superior to like IL-17 or everything that is out there.

Mohit Bansal: Great. Thank you very much for taking my question. I want to come back to HS, and the biggest debate, like when you talk to KOS, is that IL-1 is simply another inflammatory mechanism for HS, or it could become meaningfully superior to IL-17, so everything that is out there, but also in fibrotic and all those components. What evidence today gives you confidence that lutikizumab could actually break through the efficacy ceiling there? The second part on this one, same one is that how are you managing the GLP-1 baseline use in your clinical trials? Because that could actually contribute to high placebo rates here. Thank you.

Speaker #6: Also on. Taken all those components. What evidence do you today gives you confidence that luticasemab could be could actually break through the efficacy ceiling there and then the second part on this one same one is that how do you how are you managing the GLP-1 baseline use in your clinical trial because that could actually contribute to high placebo rates here.

Mohit Bansal: What evidence today gives you confidence that lutikizumab could actually break through the efficacy ceiling there? The second part on this one, same one is that how are you managing the GLP-1 baseline use in your clinical trials? Because that could actually contribute to high placebo rates here. Thank you.

Speaker #6: Thank you.

Speaker #5: Yeah, thanks, Mohit. It's Roopal. Regarding the efficacy comparisons, I would say benefit-risk comparisons. So, in the Phase 2 study with luticasemab, we saw very strong data—very high deltas—that would position it very favorably against anti-TNFs and anti-IL-17s.

Roopal Thakkar: Yeah. Thanks, Mohit. It's Roopal. Regarding the efficacy comparisons, I would say benefit risk comparisons. One, in the phase II study with lutikizumab, we saw very strong data, very high deltas that would position it very favorably against anti-TNFs and anti-IL-17s. We don't see fungal infections. We haven't seen flares in IBD. We think all of that taken together creates a strong benefit risk balance. As I stated, you would have potentially strong data from RINVOQ as well, so that way we would have a dual offering. Now, when it comes to the GLP use, the trial is quite large. If there is GLP-1 use, we would see that occurring in both arms. If it's happening in placebo and driving up placebo responses, we would anticipate a similar effect in the active treatment arm as well.

Speaker #5: We don't see fungal infections. We haven't seen flares in IBD, so we think all of that taken together creates a strong benefit-risk balance. And as I stated, you would have potentially strong data from Rinvoq as well, so that way we would have a dual offering.

Roopal Thakkar: We think all of that taken together creates a strong benefit risk balance. As I stated, you would have potentially strong data from RINVOQ as well, so that way we would have a dual offering. Now, when it comes to the GLP use, the trial is quite large. If there is GLP-1 use, we would see that occurring in both arms. If it's happening in placebo and driving up placebo responses, we would anticipate a similar effect in the active treatment arm as well.

Speaker #5: Now, when it comes to the GLP, the trial is quite large, so if there is GLP-1 use, we would see that occurring in both arms.

Speaker #5: So, if it's happening in placebo and driving up placebo responses, we would anticipate a similar effect in the active treatment arm as well. And then remember, most of these studies started a little bit before the rate of increase, I would say, with GLP-1 usage. But that being said, I think weight loss is a potentially important driver of inflammation and pain in the disease, and having our 295 asset, our amylin, potentially in combination with Lutik, is another approach that's under consideration. I've already mentioned blocking IL-23 with Skyrizi and AAK1 with amylin in psoriasis.

Roopal Thakkar: Remember, most of these studies started a little bit before the rate of increase, I would say, with GLP-1 usage. That being said, I think weight loss is a potential important driver of inflammation and pain in the disease. Having our ABBV-295 asset, our amylin. Potentially in combination with luti is another approach that's under consideration. I've already mentioned blocking 23 with SKYRIZI and a combo with amylin in psoriasis. I think your observations are spot on what's occurring, and we would like to build off of those observations even in our obesity franchise, combined in our immunology franchise.

Roopal Thakkar: Having our ABBV-295 asset, our amylin. Potentially in combination with luti is another approach that's under consideration. I've already mentioned blocking 23 with SKYRIZI and a combo with amylin in psoriasis. I think your observations are spot on what's occurring, and we would like to build off of those observations even in our obesity franchise, combined in our immunology franchise.

Speaker #5: So I think your observations are spot on on what's occurring and we would like to build off of those observations even in our obesity franchise combined in our immunology franchise.

Speaker #1: Thanks, Mohit. Operator, next question please.

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

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

Speaker #4: Yes, ma'am. We'll go next to Assad Hader with Goldman Sachs.

Operator: Yes, ma'am. We'll go next to Asad Haider with Goldman Sachs.

Asad Haider: Great. Thanks for taking the question, and congrats on the quarter. Maybe just if we can talk about oncology, Rob, I know you've said in the past that this doesn't get enough attention. Maybe just a question on the broader oncology strategy and some of your key programs in the context of a rapidly evolving landscape where both ADCs and PD-1/VEGF programs are in high focus. First, what are we going to learn about TMAB-A in the upcoming readouts, and where do you see this ADC differentiating from others like Merck's sacTMT or AstraZeneca's data DXT? Related, on the PD-1/VEGF compound that you licensed from RemeGen, I think, Roopal, you've said that there will be some data at World Lung in a couple of months, and you've previously noted that you're considering accelerating that program into phase III with chemo combos and ADC combos.

Speaker #6: Great, thanks for taking the question and congrats on the quarter. Maybe just if we can talk about oncology, Rob, I know you've said in the past that this doesn't get enough attention, so maybe just a question on the broader oncology strategy and some of your key programs in the context of a rapidly evolving landscape, where both ADCs and PD-1 budget programs are in high focus.

Speaker #6: So first, what are we going to learn about TMAB A in the upcoming readouts and where do you see this ADC differentiating from others like Merck, SAC, TMT or AstraZeneca's data DXD and then related on the PD-1 budget compound that you license from Remgen I think Roopal you've said that there will be some data at Wehrlung in a couple of months and you've previously noted that you're considering accelerating that program into phase three with chemo combos and ADC combos so just any preview of what we can expect at Wehrlung and on your overall development strategy.

Asad Haider: First, what are we going to learn about TMAB-A in the upcoming readouts, and where do you see this ADC differentiating from others like Merck's sacTMT or AstraZeneca's data DXT? Related, on the PD-1/VEGF compound that you licensed from RemeGen, I think, Roopal, you've said that there will be some data at World Lung in a couple of months, and you've previously noted that you're considering accelerating that program into phase III with chemo combos and ADC combos.

Asad Haider: Just any preview of what we can expect at World Lung and on your overall development strategy? Thank you.

Speaker #6: Thank you.

Speaker #5: Thanks, Assad. It's Roopal here. So regarding our ADC portfolio if you look for a second and it's happened pretty quickly we have Ellie here, Amaryllis, and now Decnipaz on market so there's three ADCs already out there.

Roopal Thakkar: Thanks, Asad. It's Roopal here. Regarding our ADC portfolio, if you look for a second, and it's happened pretty quickly, we have ELAHERE, EMRELIS, and now DECNUPAZ on market. There's three ADCs already out there. The EMRELIS asset is already in c-Met in 2nd line lung. Physicians are already getting experience. In terms of differentiation, it's already starting now with EMRELIS because folks are now learning about c-Met testing, and they're seeing, I would say, really reasonable uptake in EMRELIS that is exceeding our expectations. That's the first point. As we move on to teliso-V, as I described, we're already well into phase III in combination with bevacizumab in 3rd line colon cancer. Colon, which is not all that different from ovarian, which is going to get crowded, but right now it's all chemo based.

Speaker #5: The Amaryllis asset is already in CMAT in second line lung so physicians are already getting experience so in terms of differentiation it's already starting now with Amaryllis because folks are now learning about CMAT testing and they're seeing you know I would say really reasonable uptake in Amaryllis that is exceeding our expectations.

Roopal Thakkar: In terms of differentiation, it's already starting now with EMRELIS because folks are now learning about c-Met testing, and they're seeing, I would say, really reasonable uptake in EMRELIS that is exceeding our expectations. That's the first point. As we move on to teliso-V, as I described, we're already well into phase III in combination with bevacizumab in 3rd line colon cancer. Colon, which is not all that different from ovarian, which is going to get crowded, but right now it's all chemo based.

Speaker #5: So that's the first point. And as we move on to TMAB A, as I described, we're already well into phase three in combination with bevacizumab in third-line lung and colon cancer. And colon is not all that different from ovarian, which is going to get crowded, but right now it's all chemo-based. So it's a very broad market, and we see high rates of CMET expression in these tumors, especially in later lines. So that's going to be in an all-comer population. And recall in phase two, again, with the standard of care, we saw 0% response rates, with a 30% response rate with TMAB A plus Bev in that third-line setting.

Roopal Thakkar: It's a very broad market, and we see high rates of c-Met expression in these tumors, especially in later lines. That's going to be in an all-comer population. Recall in phase II against standard of care, we saw 30% response rate with teliso-V plus Bev in that 3rd line setting. What I mentioned earlier today was data readouts in 2nd line CRC, the larger population, the therapy in front line and 2nd line is similar. If we see strong data there against irinotecan, we're trying to replace irinotecan. If we see higher response rate and deeper response rates, we are positioned to move teliso-V into the front and 2nd line setting, which are large markets. Now, what we'll be evaluating as you get into earlier lines is how c-Met expression looks. We tend to see it quite high in later lines.

Speaker #5: What I mentioned earlier today was data readouts in second line CRC the larger population the therapy in front line and second line is similar and if we see strong data there against a renal TCAN we're trying to replace a renal TCAN if we see higher response rate and deeper response rates then we are positioned to move TMAB A into the front and second line setting which are large markets.

Roopal Thakkar: What I mentioned earlier today was data readouts in 2nd line CRC, the larger population, the therapy in front line and 2nd line is similar. If we see strong data there against irinotecan, we're trying to replace irinotecan.

Roopal Thakkar: If we see higher response rate and deeper response rates, we are positioned to move teliso-V into the front and 2nd line setting, which are large markets. Now, what we'll be evaluating as you get into earlier lines is how c-Met expression looks. We tend to see it quite high in later lines.

Speaker #5: Now what we'll be evaluating as you get into earlier lines is how CMAT expression looks we tend to see it quite high in later lines so what that could allow us then is to have a biomarker-directed approach which as I stated the community and academic centers are becoming very familiar with CMAT testing and that could be a strategy in front line and second line and that's another layer of differentiation physicians want to individualize care and maximize benefit risk and how that can occur in oncology with ADCs is first we optimize the dose select the right patients and then deliver a biomarker to the field so they can do exactly that is individualized care so I would say these are distinctions that will further differentiate now we're also studying in head and neck as I described and ovarian and we're positioned as those data readout to move into phase three I would say in particular in ovarian we know ovarian already in the FR alpha space and if we do a CMAT-directed approach in ovarian that would be highly distinctive and differentiated from everyone else let's say majority pursuing FR alpha we see little overlap between the two biomarker approaches so another individualized approach and if I step back further and look at the work that we're doing in lung with TMAB A we're exceeding efficacy levels that we saw with Amaryllis so combinations in the front line are going to be very important and that's where PD-1 budget can come in and as we're establishing that early on and you'll see that at Wehrlung what you'll see is response rates and PFS in lung and we anticipate seeing a very competitive profile when it comes to efficacy tolerability safety and we think at this stage if we have optimized dosing and we get concordance with regulators we can move into phase three very rapidly as a chemo combo and then in parallel start testing our ADCs in combination with that PD-1 budget across tumor types so that would include lung as we already stated and also potentially ovarian amongst other tumor types I don't want to take up too much time but 706 and 76 is our ADC which is shown very strong data in small cell lung cancer that's in phase three now and I'll highlight our PSMA steep bispecific antibody 969 showed very strong data at ASCO and that one is now well positioned to start moving into phase three into prostate cancer and can be very competitive and will not have all the logistical challenges of radioligand therapy so that's a snapshot I would say much more to come and we're very excited about this portfolio in oncology.

Roopal Thakkar: What that could allow us is to have a biomarker directed approach, which, as I stated, the community and academic centers are becoming very familiar with c-Met testing, and that could be a strategy in front line and 2nd line, and that's another layer of differentiation. Physicians want to individualize care and maximize benefit risk. How that can occur in oncology with ADCs is first we optimize the dose, select the right patients, and deliver a biomarker to the field so they can do exactly that, is individualized care. I would say these are distinctions that will further differentiate. Now, we're also studying in head and neck, as I described, and ovarian, and we're positioned as those data read out to move into phase III.

Roopal Thakkar: How that can occur in oncology with ADCs is first we optimize the dose, select the right patients, and deliver a biomarker to the field so they can do exactly that, is individualized care. I would say these are distinctions that will further differentiate. Now, we're also studying in head and neck, as I described, and ovarian, and we're positioned as those data read out to move into phase III.

Roopal Thakkar: I would say in particular in ovarian, we know ovarian already in the FR alpha space, and if we do a c-Met directed approach in ovarian, that would be highly distinctive and differentiated from everyone else, let's say majority pursuing FR alpha. We see little overlap between the two biomarker approaches, so another individualized approach. If I step back further and look at the work that we're doing in lung with TMAB-A, we're exceeding efficacy levels that we saw with Marelus. Combinations in the front line are going to be very important, and that's where PD-1/VEGF can come in. As we're establishing that early on, and you'll see that at World Lung, what you'll see is response rates and PFS in lung. We anticipate seeing a very competitive profile when it comes to efficacy, tolerability, safety.

Roopal Thakkar: We see little overlap between the two biomarker approaches, so another individualized approach. If I step back further and look at the work that we're doing in lung with TMAB-A, we're exceeding efficacy levels that we saw with Marelus.

Roopal Thakkar: Combinations in the front line are going to be very important, and that's where PD-1/VEGF can come in. As we're establishing that early on, and you'll see that at World Lung, what you'll see is response rates and PFS in lung. We anticipate seeing a very competitive profile when it comes to efficacy, tolerability, safety.

Roopal Thakkar: We think at this stage, if we have optimized dosing and we get concordance with regulators, we can move into Phase III very rapidly as a chemo combo, then in parallel, start testing our ADCs in combination with that PD-1/VEGF across tumor types. That would include lung, as we already stated, and also potentially ovarian, amongst other tumor types. I don't want to take up too much time, but 706 and SEZ6 is our ADC, which has shown very strong data in small cell lung cancer. That's in Phase III now. I'll highlight our PSMA-STEAP1 bispecific antibody, 969, showed very strong data at ASCO, and that one is now well-positioned to start moving into Phase III into prostate cancer, and can be very competitive and will not have all the logistical challenges of radioligand therapy. That's a snapshot.

Roopal Thakkar: That would include lung, as we already stated, and also potentially ovarian, amongst other tumor types. I don't want to take up too much time, but 706 and SEZ6 is our ADC, which has shown very strong data in small cell lung cancer.

Roopal Thakkar: That's in Phase III now. I'll highlight our PSMA-STEAP1 bispecific antibody, 969, showed very strong data at ASCO, and that one is now well-positioned to start moving into Phase III into prostate cancer, and can be very competitive and will not have all the logistical challenges of radioligand therapy. That's a snapshot.

Roopal Thakkar: I would say much more to come, we're very excited about this portfolio in oncology.

Speaker #1: Thanks, Assad. Operator, next question please.

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

Elizabeth Shea: Thanks, Asad. Operator, next question, please.

Speaker #4: Well, good. Next to David and Selim with Piper Sandler.

Operator: We'll go next to David Anselm with Piper Sandler.

Speaker #6: Thanks. So, in light of your comments on RINVOQ in AA and vitiligo—particularly regarding vitiligo—just how do you square your expectations in terms of peak with an increasingly crowded development landscape, inclusive of other agents like IL-15s and CD122s? So that's number one. And then maybe switching gears to bretacillusin in the psychedelics/neuroplastogens space: how are you thinking about the positioning of that agent? I know there's a lot of development work ahead, but I wanted to get your thoughts on positioning, particularly in light of the recent MDD data for Develium's form of LSD. So, if you can comment on that, that would be helpful.

David Anselm: Thanks. In light of your comments on RINVOQ in AA and vitiligo, particularly regarding vitiligo, just how do you square your expectations in terms of peak with an increasingly crowded development landscape, inclusive of other agents like IL-15s and CD122s? That's number 1, and then maybe switching gears to bretasilicin in the psychedelics/neuroplastogens. How are you thinking about positioning of that agent? I know there's a lot of development work ahead, but wanted to get your thoughts on positioning, particularly in light of the recent MDD data for Dephinnyan's form of LSD. If you could comment on that would be helpful. Thank you.

David Anselm: That's number 1, and then maybe switching gears to bretasilicin in the psychedelics/neuroplastogens. How are you thinking about positioning of that agent? I know there's a lot of development work ahead, but wanted to get your thoughts on positioning, particularly in light of the recent MDD data for Dephinnyan's form of LSD. If you could comment on that would be helpful. Thank you.

Speaker #6: Thank you.

Speaker #5: Yeah, I'll take the vitiligo question as Jeff. You know and what we've seen and I think the whole world has seen this over time is that these immunology markets are amazingly resilient and very expansive once these technologies come in and I think we've seen that over and over again we've talked about how you know years ago you start to establish an immunology segment and then you start getting second line third line you know these are lifelong conditions and I think the first key piece is vitiligo obviously there's no systemic treatments approved we will be the first so in terms of that dynamic around being particularly effective for the higher body surface areas which are quite common and obviously the topicals just they don't make sense there particularly if they're active it's just very difficult to manage creams and when you look at the efficacy that we start to see particularly in the longer term extensions that just builds over time the ability to really systematically clear the skin is quite striking so that gives us a significant amount of confidence and in terms of how these markets will cascade and our ability to manage it plus we have an extremely strong position I mentioned in my remarks that we've already started to expand our essentially our Rinvoq sales force so our ability to bring multiple indications with long-term safety data across the board whether it's atopic dermatitis alopecia you know vitiligo will have I think an exceptionally strong position to lead this emergence of the vitiligo market so that's how we see it I'll let Roopal handle the bretacillusin dynamic.

Jeff Stewart: Yeah. I'll take the vitiligo question. It's Jeff. What we've seen, and I think the whole world has seen this over time, is that these immunology markets are amazingly resilient and very expansive once these technologies come in, and I think we've seen that over and over again. We've talked about how years ago you start to establish a immunology segment, and then you start getting second line, third line. These are lifelong conditions. I think the first key piece is vitiligo. Obviously, there's no systemic treatments approved. We will be the first. In terms of that dynamic around being particularly effective for the higher body surface areas, which are quite common, and obviously the topicals just don't make sense there, particularly if they're active. It's just very difficult to manage creams.

Jeffrey Stewart: Yeah. I'll take the vitiligo question. It's Jeff. What we've seen, and I think the whole world has seen this over time, is that these immunology markets are amazingly resilient and very expansive once these technologies come in, and I think we've seen that over and over again.

Jeffrey Stewart: We've talked about how years ago you start to establish a immunology segment, and then you start getting second line, third line. These are lifelong conditions. I think the first key piece is vitiligo. Obviously, there's no systemic treatments approved.

Jeffrey Stewart: We will be the first. In terms of that dynamic around being particularly effective for the higher body surface areas, which are quite common, and obviously the topicals just don't make sense there, particularly if they're active. It's just very difficult to manage creams.

Jeff Stewart: When you look at the efficacy that we start to see, particularly in the longer-term extensions, that just builds over time. The ability to really systematically clear the skin is quite striking. That gives us a significant amount of confidence in terms of how these markets will cascade and our ability to manage it. Plus, we have an extremely strong position. I mentioned in my remarks that we've already started to expand essentially our RINVOQ sales force. Our ability to bring multiple indications with long-term safety data across the board, whether it's atopic dermatitis, alopecia, and vitiligo, we'll have, I think, an exceptionally strong position to lead this emergence of the vitiligo market. That's how we see it. I'll let Roopal handle the bretasilicin dynamic.

Jeffrey Stewart: When you look at the efficacy that we start to see, particularly in the longer-term extensions, that just builds over time. The ability to really systematically clear the skin is quite striking. That gives us a significant amount of confidence in terms of how these markets will cascade and our ability to manage it. Plus, we have an extremely strong position.

Jeffrey Stewart: I mentioned in my remarks that we've already started to expand essentially our RINVOQ sales force. Our ability to bring multiple indications with long-term safety data across the board, whether it's atopic dermatitis, alopecia, and vitiligo, we'll have, I think, an exceptionally strong position to lead this emergence of the vitiligo market. That's how we see it. I'll let Roopal handle the bretasilicin dynamic.

Speaker #5: Hey David, it's Roopal. And you know regarding vitiligo and alopecia areata the head start is very beneficial and at this stage we don't know how all the other assets will play out in terms of longer term safety and efficacy Rinvoq is very well characterized with well over a decade of safety data and the familiarity already exists in atopic derm and it'll build further with alopecia areata and vitiligo and then we also anticipate improving improvement in efficacy over time so that's to add to Jeff's comments and then on bretacillusin several areas of differentiation one is the short time of the experience majority of the patients within two hours are ready to leave the clinic so I think that's one advantage the second advantage I would say is the experience itself where with bretacillusin is described as visual and a rich experience some of these other assets that are being development that are being developed can be quite intense some have described them as unpleasant and distressing the clinics with some of these assets will observe loss of consciousness where a patient becomes unresponsive so that's not something that we have observed with bretacillusin along with that short duration of effect the other notable mechanistic quality is the fact that it's an antagonist it's antagonistic at 5-HD2b and many of the others are still agonistic at that receptor and recall that's the receptor where you see cardiovascular toxicity specifically with thickening of cardiovascular of the valves and regurgitation so we don't see that as a problem which could set up the potential for chronic use and we are under study with MDD and also considering PTSD and amongst others so hopefully that gives you a good sense of why we like this asset and how it can be differentiated once hopefully it gets to market.

Roopal Thakkar: Hey, David, it's Roopal. Regarding vitiligo and alopecia areata, the head start is very beneficial, and at this stage, we don't know how all the other assets will play out in terms of longer-term safety and efficacy. RINVOQ is very well-characterized with well over a decade of safety data, and the familiarity already exists in atopic derm, and it'll build further with alopecia areata and vitiligo. We also anticipate improvement in efficacy over time. That's to add to Jeff's comments. On bretasilicin, several areas of differentiation. One is the short time of the experience. Majority of the patients within two hours are ready to leave the clinic. I think that's one advantage. The second advantage, I would say, is the experience itself, where with bretasilicin is described as a visual and a rich experience.

Roopal Thakkar: We also anticipate improvement in efficacy over time. That's to add to Jeff's comments. On bretasilicin, several areas of differentiation. One is the short time of the experience. Majority of the patients within two hours are ready to leave the clinic. I think that's one advantage. The second advantage, I would say, is the experience itself, where with bretasilicin is described as a visual and a rich experience.

Roopal Thakkar: Some of these other assets that are being developed can be quite intense. Some have described them as unpleasant and distressing. The clinics with some of these assets will observe loss of consciousness where a patient becomes unresponsive. That's not something that we have observed with bretasilicin along with that short duration of effect. The other notable mechanistic quality is the fact that it's antagonistic at 5-HT2B, and many of the others are still agonistic at that receptor. Recall, that's the receptor where you see cardiovascular toxicity, specifically with thickening of the valves and regurgitation. We don't see that as a problem, which could set up the potential for chronic use. We are under study with MDD and also considering PTSD and amongst others.

Roopal Thakkar: The other notable mechanistic quality is the fact that it's antagonistic at 5-HT2B, and many of the others are still agonistic at that receptor. Recall, that's the receptor where you see cardiovascular toxicity, specifically with thickening of the valves and regurgitation. We don't see that as a problem, which could set up the potential for chronic use. We are under study with MDD and also considering PTSD and amongst others.

Roopal Thakkar: Hopefully that gives you a good sense of why we like this asset and how it can be differentiated once hopefully it gets to market.

Speaker #1: Thanks, David. Operator, next question, please.

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

Elizabeth Shea: Thanks, David. Operator, next question, please.

Speaker #4: Yes, we will go next to Louisa Hector with Barenberg.

Operator: Yes. We will go next to Luisa Hector with Berenberg.

Speaker #7: Oh, hello. Thank you for taking my question. I wonder if you can give us any kind of early indication from formulary season I'm hearing levels of confidence as usual on Skyrizi and Rinvoq so just sort of checking around pricing environment and impact of some of their head-to-head studies from competitors and then just a quick check post the announcement of Apogee did you deprioritize any of your own pipeline assets in AD around that time in connection with Apogee?

Luisa Hector: Thank you for taking my question. I wonder if you can give us any kind of early indication from formulary season. I'm hearing levels of confidence as usual on SKYRIZI and RINVOQ. Just sort of checking around pricing environment and impacts of some of the head-to-head studies from competitors. Then just a quick check, post the announcement of Apogee. Did you deprioritize any of your own pipeline assets in AD around that time in connection with Apogee? Thank you.

Speaker #7: Thank you.

Speaker #5: Yeah, thank you for the question. It's Jeff. And I would say that the progression of our discussions with the payers you know we obviously are in contracting season here that's typically starts in the you know early spring it seems like it starts earlier and earlier but I would say we're you know while these negotiations are always tough negotiations with the payers I would say they're relatively consistent very consistent with what we've seen over the years as you know we've highlighted before that particularly in immunology that this is a this is a volume-driven business and we see sort of you know low single-digit concessions around rebates and price concessions as the standard and our position really hasn't changed from that standpoint so we are continue to be encouraged with how things will play out we're not we're not done yet obviously but we have a very strong capability here and our consistency should be appreciated.

Jeff Stewart: Thank you for the question. It's Jeff. I would say that the progression of our discussions with the payers, we obviously are in contracting season here, which typically starts in the early spring. It seems like it starts earlier and earlier. I would say while these negotiations are always tough negotiations with the payers, I would say they're relatively consistent, very consistent with what we've seen over the years. As you know, we've highlighted before that, particularly in immunology, that this is a volume-driven business, and we see sort of low double-digit concessions around rebates and price concessions as the standard, and our position really hasn't changed from that standpoint. We continue to be encouraged with how things will play out. We're not done yet, obviously. We have a very strong capability here, and our consistency should be appreciated.

Jeffrey Stewart: Thank you for the question. It's Jeff. I would say that the progression of our discussions with the payers, we obviously are in contracting season here, which typically starts in the early spring. It seems like it starts earlier and earlier. I would say while these negotiations are always tough negotiations with the payers, I would say they're relatively consistent, very consistent with what we've seen over the years.

Jeffrey Stewart: As you know, we've highlighted before that, particularly in immunology, that this is a volume-driven business, and we see sort of low double-digit concessions around rebates and price concessions as the standard, and our position really hasn't changed from that standpoint. We continue to be encouraged with how things will play out. We're not done yet, obviously. We have a very strong capability here, and our consistency should be appreciated.

Speaker #5: And Louisa, it's Roopal. And also on the head-to-head question what we've observed over time with these head-to-heads against Skyrizi the data gap closes over time so you see less and less of a separation and clinicians really like the safety profile and patients like the quarterly dosing so there's going to be continued strong demand for Skyrizi and on the question on our own atopic dermatitis assets I would say we are running all of them in parallel and as quickly as we can obviously we want to move the anti-IL-13 as quickly as possible in whatever we can do to help that post-deal closure we're going to do that and we are in the clinic with our 1331 bispecific and should be shortly in the clinic with a 1318 bispecific in atopic dermatitis and then potentially even asthma and then there's a 31 monoclonal that's coming with Apogee and that's something else that we want to test as well and all of these assets that we've mentioned are going to be long-acting so it will if they can deliver the efficacy that we want to see we will also be able to deliver that convenience to patients as well.

Roopal Thakkar: Louisa, it's Roopal. Also on the head-to-head question, what we've observed over time with these head-to-heads against SKYRIZI, the data gap closes over time, you see less and less of a separation, and clinicians really like the safety profile, and patients like the quarterly dosing. There's going to be continued strong demand for SKYRIZI. On the question on our own atopic dermatitis assets, I would say we are running all of them in parallel and as quickly as we can. Obviously, we want to move the anti-IL-13 as quickly as possible. Whatever we can do to help that post-deal closure, we're going to do that. We are in the clinic with our 1331 bispecific and should be shortly in the clinic with an ABBV-1318 bispecific in atopic dermatitis and then potentially even asthma.

Roopal Thakkar: On the question on our own atopic dermatitis assets, I would say we are running all of them in parallel and as quickly as we can. Obviously, we want to move the anti-IL-13 as quickly as possible. Whatever we can do to help that post-deal closure, we're going to do that. We are in the clinic with our 1331 bispecific and should be shortly in the clinic with an ABBV-1318 bispecific in atopic dermatitis and then potentially even asthma.

Roopal Thakkar: There's a 31 monoclonal that's coming with Apogee, and that's something else that we want to test as well. All of these assets that we've mentioned are going to be long-acting. If they can deliver the efficacy that we want to see, we will also be able to deliver that convenience to patients as well.

Speaker #1: Thanks, Louisa. Operator, next question, please.

Liz Shea: Thank you.

Elizabeth Shea: Thank you.

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

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

Speaker #7: Next question please.

Luisa Hector: Oh, sure.

Speaker #4: We'll go next to Matt Phipps with William Blair.

Operator: We'll go next to Matt Phipps with William Blair.

Speaker #8: I want to ask about AbbVie 859 the oral IL-23 receptor inhibitor you know you talked a little bit about coming into the market how do you see the differentiation for 859 and maybe how you'll position it across other indications?

Matt Phipps: Wanted to ask about ABBV-859, the oral IL-23 receptor inhibitor. You talked a little bit about ecitide coming into the market. How do you see the differentiation for 859 and maybe how you'll position it across other indications? Thank you.

Matthew Phipps: Wanted to ask about ABBV-859, the oral IL-23 receptor inhibitor. You talked a little bit about ecitide coming into the market. How do you see the differentiation for 859 and maybe how you'll position it across other indications? Thank you.

Speaker #8: Thank you.

Speaker #5: Thanks, Matt. It's Roopal. So the what we liked pre-clinically about this asset was the potency and if that can play out that may be a way to allow the dose to be a little bit higher and to get much better coverage right now when we see how Skyrizi provides coverage it's much, much deeper and we see higher responses than the oral and many other assets and we think that could be potency and how high you can push the dose that still tolerated by the patient and still needs to make sense from a cost of goods standpoint that's one aspect the second aspect is around half-life many of our orals will have short half-lifes and if you if you have a drop what we call CMIN that's when the concentration reaches a low you could be losing efficacy so with this one we have a design element that allows for an extension of half-life and we'll start seeing that data I would say next year to see if we do see an extended duration of half-life that could exceed a day or two or even further and if you have that you can have much better coverage potentially drive higher efficacy where we would like to get it hopefully closer and closer to Skyrizi and could there be the question mark still remains is could there be a question here you may not require daily dosing if the half-life is extended long enough could you run in quickly in a starter pack and could you even take this once a week and that's something we've observed pre-clinically now we'll have to see if it plays out in human and that those studies are kicking off imminently.

Roopal Thakkar: Thanks, Matt. It's Roopal. What we liked pre-clinically about this asset was the potency. If that can play out, that may be a way to allow the dose to be a little bit higher and to get much better coverage. Right now, when we see how SKYRIZI provides coverage, it's much, much deeper, and we see higher responses than the oral and many other assets. We think that could be potency and how high you can push the dose that's still tolerated by the patient and still needs to make sense from a cost of goods standpoint. That's one aspect. The second aspect is around half-life. Many of our orals will have short half-lives. If you have a drop, what we call Cmin, that's when the concentration reaches a low, you could be losing efficacy.

Roopal Thakkar: We think that could be potency and how high you can push the dose that's still tolerated by the patient and still needs to make sense from a cost of goods standpoint. That's one aspect. The second aspect is around half-life. Many of our orals will have short half-lives. If you have a drop, what we call Cmin, that's when the concentration reaches a low, you could be losing efficacy.

Roopal Thakkar: With this one, we have a design element that allows for an extension of half-life. We'll start seeing that data, I would say, next year to see if we do see an extended duration of half-life that could exceed a day or two or even further. If you have that, you can have much better coverage, potentially drive higher efficacy, where we would like to get it, hopefully closer and closer to SKYRIZI. The question mark still remains is could there be a question here, you may not require daily dosing if the half-life is extended long enough. Could you run in quickly in a starter pack, and could you even take this once a week? That's something we've observed pre-clinically. Now we'll have to see if it plays out in humans, and those studies are kicking off imminently.

Roopal Thakkar: The question mark still remains is could there be a question here, you may not require daily dosing if the half-life is extended long enough. Could you run in quickly in a starter pack, and could you even take this once a week? That's something we've observed pre-clinically. Now we'll have to see if it plays out in humans, and those studies are kicking off imminently.

Speaker #1: Thanks, Matt. Operator, next question, please.

Liz Shea: Thanks, Matt. Operator, next question, please. Thank you. We'll go next to Louise Chen with Scotiabank.

Elizabeth Shea: Thanks, Matt. Operator, next question, please.

Speaker #4: Thank you. We'll go next to Louise Chen with Scotiabank.

Operator: Thank you. We'll go next to Louise Chen with Scotiabank.

Speaker #7: Hi, thanks for taking my question. I wanted to ask you on Skyrizi subcutaneous if you get this approved in the fall do you expect that to drive an acceleration of sales in the second half of the year for Skyrizi and then on the runway for exclusivity for Skyrizi beyond 2033 any update there?

Louise Chen: Hi. Thanks for taking my question. I wanted to ask you on SKYRIZI subcutaneous, if you get this approved in the fall, do you expect that to drive an acceleration of sales in the H2 of the year? For SKYRIZI. Then on the runway for exclusivity for SKYRIZI beyond 2033, any updates there? Thank you.

Speaker #7: Thank you.

Speaker #5: Yeah, thanks for the question. It's Jeff. Like we do expect a meaningful acceleration for Skyrizi because of this and if you think about it right the number one market value driver in IBD is efficacy on these stringent endpoints we talked about like endoscopic response endoscopic healing and the whole aspect over the sub-Q induction it allows a certain segment of physicians to not have to work across two different reimbursement channels like you know a Part B or a medical channel and then a pharmacy channel for the sub-Q so in that sense it's convenient so when we look at our data that Roopal and I highlighted you look at the availability of that induction you're sort of hitting on all of the market value drivers so very strong efficacy and the most stringent endpoints you know more convenience on induction so certain segments don't have to work across both reimbursement channels and then lastly we obviously have a very strong position for our maintenance convenience so with that with those three things we are planning for an acceleration of our capture rate now having said that it will take you know a month or two or a few months to sort of fully ramp up the availability based on our contracts so we'll probably start seeing that really early in 2027 but nonetheless our ability to start to communicate and basically highlight this innovation will come here in the fourth quarter.

Jeff Stewart: Yeah, thanks for the question. It's Jeff. We do expect a meaningful acceleration for SKYRIZI because of this. If you think about it, the number one market value driver in IBD is efficacy on these stringent endpoints we talked about, like endoscopic response, endoscopic healing. The whole aspect over the subQ induction, it allows a certain segment of physicians to not have to work across two different reimbursement channels, like a Part B or a medical channel, then a pharmacy channel for the subQ. In that sense, it's convenient. When we look at our data that Roopal and I highlighted, you look at the availability of that induction, you're sort of hitting on all of the market value drivers. Very strong efficacy in the most stringent endpoints. More convenience on induction, so certain segments don't have to work across both reimbursement channels.

Jeffrey Stewart: Yeah, thanks for the question. It's Jeff. We do expect a meaningful acceleration for SKYRIZI because of this. If you think about it, the number one market value driver in IBD is efficacy on these stringent endpoints we talked about, like endoscopic response, endoscopic healing.

Jeffrey Stewart: The whole aspect over the subQ induction, it allows a certain segment of physicians to not have to work across two different reimbursement channels, like a Part B or a medical channel, then a pharmacy channel for the subQ.

Jeffrey Stewart: In that sense, it's convenient. When we look at our data that Roopal and I highlighted, you look at the availability of that induction, you're sort of hitting on all of the market value drivers. Very strong efficacy in the most stringent endpoints. More convenience on induction, so certain segments don't have to work across both reimbursement channels.

Jeff Stewart: Then lastly, we obviously have a very strong position for our maintenance convenience. With those three things, we are planning for an acceleration of our capture rate. Now, having said that, it will take a month or two or a few months to sort of fully ramp up the availability based on our contracts. We'll probably start seeing that really early in 2027. Nonetheless, our ability to start to communicate and basically highlight this innovation will come here in the Q4.

Jeffrey Stewart: Then lastly, we obviously have a very strong position for our maintenance convenience. With those three things, we are planning for an acceleration of our capture rate. Now, having said that, it will take a month or two or a few months to sort of fully ramp up the availability based on our contracts. We'll probably start seeing that really early in 2027. Nonetheless, our ability to start to communicate and basically highlight this innovation will come here in the Q4.

Speaker #5: And Louise, this is Rob. I'll take your question on the Skyrizi LOE. I mean, although Skyrizi's composition of adirpan expires in 2033, as you noted, we do have later-expiring IP granted and in process that embodies Skyrizi's significant innovation. This includes patents expiring in the US in the mid-2030s and later.

Rob Michael: Louise, this is Rob. I'll take your question on the SKYRIZI LOE. Although SKYRIZI's composition of matter patent expires in 2033, as you noted, we do have later expiring IP granted and in process that embodies SKYRIZI's significant innovation. This includes patents expiring in the US in the mid-2030s and later. It's important to note, though, that regulatory data protection for SKYRIZI does not expire until 2031. We do not expect to see biosimilar application filings until the end of this decade. We have a strong track record of vigorously defending our patents and protecting our innovation, and I would expect that to continue.

Robert Michael: Louise, this is Rob. I'll take your question on the SKYRIZI LOE. Although SKYRIZI's composition of matter patent expires in 2033, as you noted, we do have later expiring IP granted and in process that embodies SKYRIZI's significant innovation. This includes patents expiring in the US in the mid-2030s and later.

Speaker #5: Now, it's important to note, though, that regulatory data protection for Skyrizi does not expire until 2031, so we do not expect to see biosimilar application filings until the end of this decade. Obviously, we have a strong track record of vigorously defending our patents and protecting our innovation, and I would expect that to continue.

Robert Michael: It's important to note, though, that regulatory data protection for SKYRIZI does not expire until 2031. We do not expect to see biosimilar application filings until the end of this decade. We have a strong track record of vigorously defending our patents and protecting our innovation, and I would expect that to continue.

Speaker #1: Thanks, Louise. Operator, we have time for one final question.

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

Elizabeth Shea: Thanks, Louise. Operator, we have time for one final question.

Speaker #4: Yes, ma'am. We'll go next to Evan Seekerman with BMO Capital Markets.

Operator: Yes, ma'am. We'll go next to Evan Seigerman with BMO Capital Markets.

Malcolm Hoffman: Hi, Malcolm Hoffman on for Evan. Thanks for taking our question. For emraclidine, I know you had said 100 milligrams is safe and tolerable with further escalation plans. Can you speak to why you may be confident this increased dosing could translate into improved efficacy above what we had previously seen with the asset? Are you looking at receptor occupancy data? Just trying to get a sense of confidence here. Thanks.

Speaker #6: Hi, I'm Malcolm Offman on for Evan. Thanks for taking our question. For Mraclidine, I know you had said 100 milligrams is safe and tolerable, with further escalation plans.

Speaker #6: Can you speak to why you may be confident this increased dosing could translate into improved efficacy above what we had previously seen with the asset?

Speaker #6: Are you looking at receptor occupancy data? Just trying to get a sense of confidence here. Thanks.

Roopal Thakkar: Hi, it's Roopal. I'll take that. Yes, 100 milligrams is looking good, and that would be the lowest dose that we would take forward. Next is 150. As you stated, receptor occupancy, when we noted the previous EMPOWER data sets, was lower than what we would have wanted. As we're able to increase the dose, we do anticipate much higher receptor occupancy. The other observation is PK variability, even within patients. If we can deliver a higher dose, we're going to have a better consistent PK dose to dose, and then over time, improved receptor occupancy. We still like this profile. If we can deliver on that efficacy, we are seeing good safety. It's once a day, and we're not having the GI adverse events. I think that can be quite problematic today in schizophrenia.

Speaker #5: Hi, it's Roopal. I'll take that. Yes, 100 milligrams is looking good and that will be the lowest dose that we would take forward next is 150 and as you stated receptor occupancy when we noted the previous Empower data sets was lower than what we would have wanted so as we're able to increase the dose we do anticipate much higher receptor occupancy the other observation is PK variability even within patients so if we can deliver a higher dose we can have a better consistent PK dose-to-dose and then over time improved receptor occupancy we still like this profile if we can deliver on that efficacy we are seeing good safety it's once a day and we're not having the GI adverse events I think that can be quite problematic today in schizophrenia so more to come and phase two is kicking off later this.

Roopal Thakkar: The other observation is PK variability, even within patients. If we can deliver a higher dose, we're going to have a better consistent PK dose to dose, and then over time, improved receptor occupancy. We still like this profile. If we can deliver on that efficacy, we are seeing good safety.

Roopal Thakkar: It's once a day, and we're not having the GI adverse events. I think that can be quite problematic today in schizophrenia. More to come, and phase II is kicking off later this.

Roopal Thakkar: More to come, and phase II is kicking off later this.

Speaker #1: Thanks, Malcolm. 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.

Liz Shea: Thanks, Malcolm. 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.

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

Operator: This does conclude today's call. Thank you for your participation. You may now disconnect.

Q2 2026 AbbVie Inc Earnings Call

Request DemoDemo

AbbVie

Earnings