Earnings call transcript Q4 2022

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Operator

Good morning. Thank you for standing by. Welcome to the AbbVie Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would now like to turn -- introduce the call to Ms. President Relations. Vice Senior Shea, of Investor Liz

You may proceed.

Liz Shea

Rob joining on Rick and Chief Vice Jeff Officer. the morning Executive Chairman and Carrie with Stewart, Aesthetics; Also Senior for thanks Officer; Chief Chief and R&D are President, Scientific Good Executive call Vice and Commercial Allergan us. me Senior Vice the and President Board Tom Vice President, President, Hudson, Michael, Chairman of Officer; President; Gonzalez, Strom, today and

portion the Vice Officer; call Q&A Regulatory Reents, the Vice President Financial Scott for Chief Senior and us Joining of Affairs. President, are and Thakkar, Roopal Global

statements we may subject uncertainties and may note be Before our in to that cause today statements that to differ statements. forward-looking actual forward-looking indicated we forward-looking based those on make cautions I'll materially are started, considered the AbbVie from current risks some get expectations. results statements these that

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

questions. take our prepared remarks, your we'll Following

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

Rick Gonzalez

$X.X full pipeline joining reported revenues and and operational quarter you will growth more more X.X% for performance Thank who Carrie, we a today. in another Liz. sales business and per and nearly year an XXXX billion on by Jeff, you, which XXXX. results then $XX.XX net $XX reflecting XXXX detail. basis, for provide highly AbbVie. and our earnings us RINVOQ and delivered Tom impressive from driven perspective review financial in morning, thank double-digit than of and SKYRIZI billion strong of productive up our Today, highlights outlook Total everyone I'll guidance combined on overall Good growth. were adjusted progress We generated share of year by Rob,

years As company, a company. made as an I into excellent our leading on evolving progress have biopharmaceutical AbbVie reflect we XX independent

a plus We anticipate end a markets. created these products atopic attractive major distinct XXXX indications, includes HUMIRA development revenues growth peak by the significant the and expected the with new successfully multiple dermatitis. HUMIRA's exceed of platforms collectively decade. will RINVOQ of achieved have X in portfolio and well-diversified through growth indication, the by across with This We launch SKYRIZI and sustainable all of rapid

We building also launches across like collectively the venetoclax support a growth tumor decade. Teliso-V, of B-cell cell treatment and heme are of anticipated non-small and in and lung the cancer novel, of ramp The MDS, in assays several solid new indication substantial new malignancies option for a myeloma oncology. middle in epacritumab products and multiple portfolio will

significant psychiatric with long-term BOTOX our position attractive as expect underpenetrated, robust Rejuvido which pipeline leading neuroscience in for see for Fillers And extremely diseases. a We an [ph]. we performance with neurodegenerative leading promising as have the market growth to portfolio continued well and address toxins migraine cosmetic on-market we where conditions potential aesthetics, and in is

organization R&D robust innovation-driven productive a established we've Second, with a pipeline.

over discovered R&D major medicines billion-plus has the Five Our decade. past engine developed and

outlook. which have to since ways now doubled are more We annual and R&D committed long-term XX breadth and than serious inception. of address our programs our health supports more issues the across pipeline our all new stages, includes depth our to most development patients' than pursuing further investment The growth

position increased to science to also growth. a to that across and used drive fully in invest We've maintained position. pipeline. have business initiatives have long-term by portfolio we categories we used and growing commercial And and Lastly, to financial existing pursue it development to our XXX% value-enhancing our our innovative have which inception. as strong augment since financial support therapeutic a robust also capacity we dividend

remain the to positioned robust well HUMIRA to the characteristics, these quickly With in return of and impact absorb LLE operating sales XXXX. strong we growth

As to down and at adjusted RINVOQ projection collectively $XX.X revenue, HUMIRA lower year-over-year with of $XX.XX This reflecting expect anticipate direct XX% XX%. will performance from the AbbVie's erosion of our XX% previous generate of expected billion earnings approximately which range to XX%. of per end it is share of to Robust we pertains we growth biosimilar $XX.XX. nearly near-term competition outlook, guidance from we contemplates, which U.S. XXXX headwind sales SKYRIZI

Revenue recent in of by dynamics [indiscernible] of of strong sales MDD venetoclax. Double-digit offset approval. our accelerating partially including growth IMBLUVICA, impacting with revenue with growth share pressure challenging neuroscience and Vraylar recent market sales

Our toxins, contemplates for performance and in the impact primarily guidance procedure economic growth, fillers U.S. on contouring. also aesthetic transient affecting near-term the body

have not assumed Given the in inflationary recovery and that to economic it's difficult the we duration predict pressures, XXXX. of

share possible increasing investments both and the to also support We opportunities. of our long-term that is guidance note reflects this in outperform could while HUMIRA erosion curve. depending finally, guidance, And shape R&D XXXX the to opportunities it across the that our issuing It's numerous today. portfolio growth are SG&A don't important and to anticipate upon for we diverse our earnings drive our summary, long-term be will for well business guidance executing see than XXXX of which we the earnings XXXX In growth. lower $XX.XX per adjusted are

over turn Jeff. that, With call the Jeff? to I'll

Jeff Stewart

million. are well, revenues our up year combined in the $X.X quarterly revenues $X.X total up guidance outperforming reflecting growth exceed performing more basis. basis. Global by than for than Rick. operational SKYRIZI results start delivered quarter I'll more continues of XX%. our you, Thank XX.X% exceptionally to sales billion and were immunology $XXX contributing expectations, $X.X initial XX.X% this an on which billion, sequential of than nearly this a operational more with full on SKYRIZI quarter, billion, RINVOQ

psoriasis dozen leadership in leadership in-play disease key share of share In biologic XX prescription SKYRIZI more on momentum at the markets. based increased total XX%. XX%. than market psoriatic share countries U.S. leading new psoriasis, growth is nearly SKYRIZI's a remains psoriasis total in-play globally share substantial switching and market continued market than SKYRIZI's achieving there more strong with in which has is and in room to patients And of for

it more U.S. nice with of X market. SKYRIZI in also Psoriatic encouraging SKYRIZI being a room XX% products in sales, RINVO well leading positive, accounts PSA share providing inflection the share approximately are XX%. gastroenterologists room In especially with as achieved where of in-play segment, we achieved making already launch. been have very and progress than the clinical are a share PSA new total which treatments. We XX%. arthritis in-play XX% than to have relates more these U.S. achieving all of biologic disease, for SKYRIZI overall patient patient co-positioned Crohn's is approximately as rheumatologists DTC dosing segment novel has is to to U.S. started especially from starts seeing we combined for also promotion profile. the Dermatology the total where And already Feedback are we a recently of this and SKYRIZI's excellent indication

PSA, now global growth. across representing sales X $XXX indications, nicely SpA. ankylosing million, RA, and are spondylitis invoke rheumatology, axial prescriptions of Turning which RINVOQ's non-radiographic global ramping In double-digit approved sequential to delivered

second-line share key XX% as strong to trending uptake derm the naive especially in chronic share rapid shares the patients market with in in-place dermatitis, up is In as positive XX% major markets the both momentum global clearance in itch are across atopic our RINVOQ line see skin importance AD prescriptions control which to to globally in it and international community both our treatment from with continue mid-teens expectations. therapy are and U.S. U.S. globally. and demonstrating the relates in-place both and relief. a of RINVOQ tracking a geographies. international across to atopic We Feedback long-term supports RINVOQ dermatitis,

gastroenterology, rates share been well colitis onset RINVOQ the expectations. in-play resulted the UC Internationally, line XX% launch well. This In UC progressing RINVOQ's second the achieving have RINVOQ in in approved gastroenterologists in speed countries XX in potential has of as our of healing adoption Physicians disease RINVOQ's strong. strong with setting. in encouraging pleased reimbursement amongst for very as Crohn's as RINVOQ is very plus line for discussions in endoscopic high now which quickly approximately is U.S. with trends with in are ulcerative

the on and U.S. regulatory are for are EMA track and quarter preparing in second decisions We commercial launch. the for

up for for patient where $X.X Global on operationally of encompassing operational HUMIRA volume secured to biosimilar to us with the growth billion, X.X% were XX% in to lives all were which compete than revenues U.S., more we the In X% biosimilars. international, approximately formulary sales an XX.X% by HUMIRA at basis broad competition. enables partially offset due parity down U.S. access have covered

to COVID operational with of basis. operational billion, the recovery The global on continues impacted Imbruvica and increasing well million, share continued hematologic on pace were to an to $X.X were dynamics as revenues now XX.X% performance oncology, were Venclexta demand and sales approximately Turning CLL. down XX.X% down strong competition. both global basis, an billion, challenging up total by $XX revenues AML in where XX.X%. attributed market U.S. be $X.X as [ph]

for revenues an to operational are and in In share, growth. We also X.X% disorder. primarily recently the as $XXX an approved continues on X increasing with adjunctive XX.X% treatment opportunity Asia. billion, gains were on neuroscience, growth. marking across particularly and long-term of pleased million up EU approved was substantial major basis. depressive a by were robust for driven the new disorder, performance reflecting market robust adding international an operational Sales $X.X demonstrate share fourth its indication basis, in Vraylar up Vraylar bipolar

an who in the is X-milligram are AMDD profile, flexibility both important, Vraylar's with we efficacy with confirms is seeing and of responders new pleased and The launch with ability and a the dose to as AMDD depressive positive partial the label reduce a or for in total which risk strong results the symptoms strong to without very are the symptoms We for marketplace. anxiety. nice and already benefit dosing add-on inflection prescriptions start present off X.X this

we in quarter, oral strong for both XX% prescription and leading migraine, sales $XXX Within growth demand contributed to combined QULIPTA. CGRP see portfolio reflecting our Ubrelvy nearly of this million as continue

are available patients preventative QULIPTA uniquely the strengthen in also episodic would position a preventative QULIPTA and CGRP with as our We as profile for for migraine patients and chronic commercial which treatment pursuing competitive migraine. further oral approval U.S. for a as both only the with chronic treatment

to for billion-plus a continue disease and Parkinson's potentially $X the launch transformative later Japan sales advanced a the BOTOX Rounding for in chronic a clear a prevention. migraine in out the portfolio $XXX branded unique were an sales Therapeutic million, BOTOX indications XX.X% basis. and therapeutic on XXX is Total therapy and last, year. And dozen the this opportunity. of with Europe prepare operational both treatment we U.S., represents ABBV-XXX Therapeutic, leader next-generation migraine approved up peak

and So performance I'm the therapeutic pleased overall, portfolio. with the momentum the across

And additional turn Carrie call the aesthetics. to with I'll Carrie? that, over for comments on

Carrie Strom

billion, Botox operationally. Full XXXX, XX% an down Thank on X% of Juvederm roughly were basis. approximately operationally aesthetic were up sales X% approximately you, were cosmetic approximately billion, Jeff. $X.X $X.X reflecting nearly sales global global year billion, and operational growth $X.X Global sales

Our headwinds, of global XXXX suspension in aesthetics the lockdowns portfolio and dynamics in grew U.S., our several China inflationary notably most in operations in despite COVID-related Russia.

Botox the sales a the economic of the in deferrable grew the robust economic began filler remainder last the including full priced the year the saw sales resulted moderating by metrics. contouring. on in In see year with of of down XX% in approximately U.S. with but quarter XXXX, in year with market U.S. These first growth the year softening approximately most strong the Juvederm these quarter XXXX. fillers year. of procedures, end sales second second and higher over Despite strong in continued Similarly, the the trends which pressures, to versus body more we first through year a of throughout the impact in procedures half U.S. cosmetic XX% being half coincided aesthetic significant declines growth driven slowdown

and track U.S. to number metrics, key of Confidence Consumer consumption personal real Index. We the continue including a external economic

to economic stabilization. improvements as in major them these metrics, the headwinds. data course months It persist over seen the difficult last end the But shown not XXXX. noted, of through to duration predict we the remains have we of several Rick these have of has modeled While

demonstrate and to the continued portfolio in performance major China aesthetics international markets, offsetting from with strong growth most impacts Russia. robust Our

significant billion approximately approximately performance an of headwinds grew sales sales delivered nearly XX% the and were X year international and cosmetic $X our international operational operationally faced up We largest last Juvederm X% in basis. this on Botox filler China market, we despite Russia. International

appears COVID-related our aesthetics China current While be -- peaked. to wave the in impacted portfolio to continues by have headwinds

first the in through the quarter. of in We to third situation expect beginning recovery half China XXXX improve with full the

outlook Consumers remain penetration facing, in for growth. for continue to substantial Despite the see be our brands. the long-term continuing interested very further our portfolio. and long-term the we are our room to categories each support confident aesthetics and in aesthetics we're We of category invest in aesthetics challenges market across to transitory

Our our increasing promotional into are customers' consumers efforts focused offices driving patients. productivity retention of on more and existing while

We for program, developing team have known built Eli. best-in-class technology consumer a commercial loyalty our

We consumers million use XX,XXX and offices. have who X Eli than our more customers' over of

our We have technology significant on we growth and the aesthetics consumers. drive growth a this and to potential. of Internationally, customers series are launching support products new year markets in focused market with

and oriented aesthetically which rapidly Japan injector our of markets expanded increased expected second have is Latin one be largest is training investments in which our We fastest-growing which in force growing is field in very China market. America to and and is XXXX. our

are delivering we innovation. focused product new on Additionally,

year, we're bio-stimulatory also the launching We're improvement Skin HA for several markets. approved year of new and to to fillers is half expected skin the our in continuing hydration of Harmonica, which in XXXX. launch X enhanced filler Vive attributes, late hybrid be for including which VOLUX first approved in was U.S., This last jawline quality international

China, to making for portfolio, we're stabilizing economic tobidynamics outlook our improving growth investments along leave The the future support in for long-term and growth. positioned well us aesthetics with

Tom. the over With call that, I'll turn to

Tom Hudson

Thank you, Carrie.

diseases programs well program as we this continue and are We our very core all adjacent expect stages with where advancement progress of In make pipeline significant immunology, rheumatology expanding areas as in in of we our good year. portfolio. our dermatology, to across

for other will SKYRIZI our include this SKYRIZI's versus head-to-head of will We're studies Otezla. a used year from SKYRIZI. add registrational III from of III Phase competitive anticipated this supporting versus evaluating These submissions Phase which for regulatory later Phase trial Results in best-in-category studies we III disease completion studies ulcerative We'll these and with major also induction expect in STELARA our which body the In year. first its to from half nearing distinguish colitis these from ulcerative program evidence profile agents studies we'll colitis program last in our see trial SKARIZI Crohn's versus in commonly data as of further maintenance indication in is agent the the this year, expansion SKYRIZI our and psoriasis offerings. the data see comparison indications.

completion of the indication nearing also programs expansion RINVOQ. for core We're

rates for inhibitor have approved treatment remains a TNF new is approximately This market high where unmet used anticipate the regulatory demonstrated once improvement of an of Our maintenance RINVOQ important are applications RINVOQ Crohn's option Crohn's deliver in bioexperience patients XX% in remission. and will induction that approval and quarter. for endoscopic disease remission our we and studies decisions RINVOQ can III second strong be believe rates and under disease. review there long-term of Phase and and very need we the considerable response and therapies in

we've Beyond a potential several indications, inhibitor therapy. strong RINVOQ where immunology we're highly to our evidence diseases seen has the become our effective JAK that core in developing

giant in III alopecia these Phase And of begin Phase studies suppurativa, this systemic we hidradenitis program for arteritis. X Our X is plan cell and additional underway vitiligo year, lupus, already diseases, III areata. later indications, to

In their year. oncology, Phase important indications. milestones Venclexta's myelofibrosis. studies regulatory and multiple of several oncology from our support second trial in including with respective several Moving TXXX Navitoclax' we studies, navitoclax expected are where now data this Results in from patients year half the in event-driven in myeloma TRANSFORM-X and these trial clinical regulatory the for see we'll de submissions hematology and of from results expect to Venclexta the novo a portfolio, area frontline relapsed/refractory III mutation to

year. potential We epcoritamab for the to has progress, thus geographies, the believe epcoritamab believe therapy become in responses upon also has significantly development lymphoma the our relapsed/refractory Europe we malignancies. continue and major make our programs And in in far epcoritamab the the anticipate in B-cell Japan quarter we We a program, for drillable potential regulatory across Based several and epcoritamab these for clinical large approval improve that patients. U.S. the to very of demonstrated the half this on good several in deep and that second year second indications. very for options including to B-cell treatment core expanding in

Over the and on malignancies studies and II course the data as several and programs of in to Phase forward best-in-class studies, III combination with multiple very remain in CLL in providing R-CHOP become therapy frontline We MCL. XXXX, potential we updates new expect across DLBCL to including multiple Phase to B-cell look these mature. about a begin epcroritumab's a excited study

Now to in see second-line data plus pipeline. year We solid II our non-squamous Teliso-V non-small later cancer. our remain advanced cell tumor moving Phase evaluating study lung this on from track

As year a c-Met designation based and ADC, reminder, potential on the an results from has II we'll the this for later study we data therapy the see this of encouraging received support Phase to X a approval. Stage breakthrough Teliso-V, accelerated our

confirmatory Our also is c-MET in ongoing. Phase study patients overexpressed with III

these poor. Treatment who exhausted patients are patients chemotherapy, cancer options have very prognosis for immunotherapy for and targeted limited platinum-based and extremely is these therapy

ADC, more be solid tumors. the used can drive deeper broaden which c-MET inhibitor c-MET responses topoisomerase of important therapies overexpressed As also potential population, new making which cell of Teliso-V a we for the has lung good treatment option believe next-generation as therapy potent potentially such approximately cement cancer patients. as colorectal a non-squamous for with well XX% to utilizes our tumor with non-small represents range to ABBV-XXX targeted and progress as these patients gastroesophageal become the payload, We're where an tumors

from I We in see to XXXX. expect Phase our program early data

programs Phase advance see II pipeline, solid year. encouraging data we have we from studies plan the tumor begun into which this to several to in Elsewhere

ABBV-XXX activity, strong antibody, types. on showing deep anti-GARP to signals with Phase plan studies prolonged several II in responses durability. efficacy, preliminary Based Our we tumor is including this of initiate

non-small to a Phase also subset this of year based ABBV-XXX cell stage combined ADC on promising approximately is of the our cancer c-MetSo non-small non-squamous patients. into XX% optimizing PTKX will lung which c-Met cell cancer lung targets program. This our approximately advance and plan studies target early overlap results We ADCs from II and little has dose non-squamous PTKX patients and XX% ADC represents of with

FDA which fourth approval we pleased excited risk benefit disorder adjunctive or marks label an Now approval received very major approval. the We're is continue indication moving important highlights antidepressant to its patients by an strong Real as this new to treatment taking neuroscience, option Vraylar where for Vraylar treatment which depressive symptoms. are recently who with an for in have unresolved depression profile indication. but currently this for and

We DUOPA DUOPA-LIKE options. approval both ABBV-XXX, secured other In half patient the expected U.S., second improvement potential for transformative potentially remain in delivery more system, subcutaneous This a levodopa year, half also U.S. the launch system the expand anticipate disease. received it currently we approval brain therapies addressed after or also and approval reimbursement. in delivery our product deep invasive the first Parkinson's the population in Japan we delivering by in efficacy such track approach on recently PD to year for current We a of for to nonsurgical With has this as treatment with stimulation. invasive, of delivery represents less system Europe. decisions advanced subcutaneous patients a the innovative novel to through the advanced significantly carbidopa for treatment

and migraine, of a decision the new patients Europe, chronic migraine. remain a we area a is we of oral would anticipate Lipa both the approval as FDA year we And third quarter Europe, an for to it And we disease quarter approved, prevention approval available to QULIPTA approval feature in for for quarter of that only forward life oral chronic with for look In option year. chronic patients for with this preventive for for in significantly in in approved once impacts treatment this treatment patients the track as would migraine. the second this differentiating on of in This CGRP debilitating and decision an episodic in fourth migraine. the preventive as anticipate approved. quality another common with treatment patients this be If and make be atogepant

expect prominence from toxin several Phase we III in And near international portfolio help the for BOTOX U.S. X in prominent the regulatory see in where we expected jaw Phase year from expect data of aesthetics the our submit China certain masseter our results our submission and platysma data our to in novel end and for Canada. to XXXX programs to the well These study segment. for III year, pipeline, muscle Botox including this half as study muscles with lower build the including from in second in markets regulatory further of prominence, applications will as indications phase neck in

data We'll applications or end with from also our III toxin of this year Bot-AE the plan glabellar for in short-acting Phase XXXX. see for regulatory trial lines near

in numerous So XXXX. and we summary, all our in stages demonstrate anticipate progress pipeline clinical milestones and again continue regulatory to of important across significant

With to our Rob Rob? the call and turn on quarter that, comments over XXXX financial performance fourth additional our for outlook. I'll

Rob Michael

adjusted sales was rate of adjusted interest gross XX.X%. foreign million X.X% growth we positioned above adjusted quarter $X.XX the foundation on sales, and Thank include from diverse adjusted financial These XX.X% impact remains unfavorable net is guidance $X.XX excluding from IPR&D of we reported adjusted with up expense of of $XX.X SG&A a our includes of fourth X.X% $X.XX earnings AbbVie's a are This expense across The R&D expense. per of XX% which and well Starting you, acquired results of Net was X.X% positions by midpoint. an sales, return sales. performance operating acquired to were revenues results, share robust Tom. $XXX XXXX. operational IPR&D strong with Total XX.X% was billion, sales. to expense ratio XX.X% investment adjusted margin of a exchange. tax margin leadership basis, of unfavorable impact of our portfolio, and

financial Turning to outlook XXXX. for our

share share may does year full between expense and incurred earnings be adjusted guidance IPR&D an estimate guidance for per per earnings This that year. include the $XX.XX $XX.XX. acquired not is Our throughout

$XX expect and This forecast we therapeutic to year the areas. for revenue approximate revenues comprehends our of approximately expect full At billion. foreign have a neutral impact sales assumptions current following We products growth. net rates, on key exchange

$X.X billion, sales of We than sales of share expect reflecting SKYRIZI of with approved and billion, reflecting January. growth than RINVOQ of market of of revenue all following $X.X billion, continued $X.X indication and expansion sales including to $XX.X XX% billion, $XX.X more immunology growth strong more late HUMIRA across due a XX% exclusivity including U.S. performance in of indications. erosion of loss billion

anticipate X sales In biosimilar middle half XXXX. available we second the X sales With be in of currently weighted more in biosimilars the we hematologic and of VENCLEXTA oncology, potentially of heavily will the of [indiscernible] $X.X $X.X expect billion and year, towards erosion market billion. more that the revenue

growth market $X.X and expect $X.X of from the from in Juvederm, when including of For year. billion with lap Botox to expected the Cosmetic $X.X aesthetics, billion, billion slowdown we rates middle we sales improve the

more neuroscience, oral XX.X%. $X.X expect billion, of revenue approximately representing billion $X.X than Ubrelvy CGRP billion growth Therapeutic XX%, $X.X sales billion, of Botox $X.X sales we and total including For including growth revenue of Vraylar of of of

$X.X sales billion. Mavyret eye care, billion we For revenue expect and we of of expect $X.X

Moving to XXXX. P&L the for

margin effective given point expense of benefit is in We year Puerto a of the fully of that basis includes profile forecast $XX.X sales, of of tax tax billion. adjusted Rico's XX This an tax transition at excise are XX% adjusted income sales. the to an of R&D of beginning offset margin this XX% SG&A $X.X adjusted year. expense adjusted of operating and ratio full We forecasting gross billion investment

interest our non-GAAP tax impact transition. forecast expense points an rate from We expect net the of and billion $X.X including adjusted XX.X%, Rico Puerto we tax be to of X.X

we expect flat count to be XXXX. roughly to our share Finally,

key Turning rates, approximate We of X% we sales have care assumptions $X.X sales sales the billion forecast to therapeutic billion; net foreign for of Immunology following unfavorable Aesthetic $XXX on and $X.X approaching revenues anticipate HUMIRA comprehends Neuroscience which of growth. revenue XX%, million. This At revenue includes $XX.X expect eye areas. Oncology of quarter. of erosion billion; revenue U.S. the a current $X.X first billion. $X.X exchange approaching impact our to billion. sales

forecasting XX% an tax adjusted of of non-GAAP and model ratio We sales of rate margin a are operating XX.X%. we

between the include IPR&D expense expect in $X.XX share We quarter. adjusted does acquired earnings and be that incurred This guidance $X.XX. may per not

Finally, capital business AbbVie's allocation support continues performance outlook strong our to and priorities.

We generate adjusted flow will XXXX is inception, reduction net $XX expect increased we have this pay dividend to billion cash which year a billion payments. repayment, flow our $XX free $X.X nearly of expect debt by fully strong and royalty cash of SKYRIZI support which in This maturities growing bringing we since billion. billion XXX% debt in continued $X where to down cumulative to in

very in diverse pleased be to continue to with well further portfolio. portfolio, In deliver we are cash results strong XXXX. with our to closing, strong Our continued AbbVie's augment development flow growth. also long-term provides we business our capacity positioned for And

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

Liz Shea

Rob. Thanks,

Operator? open the call We will Instructions] now [Operator for questions.

Operator

with Our Fargo. first question from comes Wells Mohit Bansal

Mohit Bansal

And for a maybe question -- a bigger Rick. question so

to talk percent than when still AbbVie XX% X been less always ways, that And right you has given -- those. in and The R&D issue. we sales since that's get of of company always the organically. investors, defensive AbbVie even And as now, pushback the a grow playing HUMIRA inception, low. always an been been cannot have that been always we So some it is has has

versus -- think do get spend? allocate you're past with that something that, beginning you to way helpful. R&D to That external change change you'll would Now you fundamentally the be want you company internal the very and

Rick Gonzalez

Rick. is This Okay.

heard obviously that a We've question. good So it's question.

you that support. revenue dynamics at I have think R&D there's R&D a into expense our HUMIRA play a relatively volume requires is, large little as of of profile. look One a obviously, we that it. when number

dilutes out obviously that business. the the so profile And of

we impact, obviously, go see biosimilar revenues be some As there know, that down. you were will as our impact to on

to expensive it. aggressively able second many funding of we're aesthetics programs. be business, definition, those The by the to is it that grow not But fund thing to it's

much a profile. has it So lower

So you think some when it is it. about of mix

we thing our obviously that I'd level look is at at The you fund we years, productivity. can over a if tremendous. second R&D the I drive R&D are think And look most believe productivity say industry. we Certainly, last the engines return XX data assets those I've in products seen of on like the the at X we suggests you SKYRIZI is and when RINVOQ, the productive

move coming as thing a forward phase or volumes will say to over when what large create will number is drives third successful, increase of The we they look, programs extent we a where greatest I'd we R&D have expense they years, you X that if a scenario into X And Phase R&D. programs. where we're the are is, the next have III of

relatively now, investment trials to of an program advance far we solid II our be example the We've that significantly significant encouraging able require combines that tumors. it be out And way our program if incredibly then GARP continues of expand increase that. range will thus that to checkpoint with the some That data inhibitors. III of Phase do and immuno-oncology to a across program. So seen see as broad would would want to Phase to in That that program in our next-generation program. we

that So be we perspective. can in way we And any be on we don't level confidence constrain and R&D that high programs drive successful. to R&D a based from tend have can of productive

move that we proves program will high That III. Phase that program be want of to into and rapidly our deliver low amyloid program. REA. Another AbbVie be another program rates If reduction will to

will the in growth. investors of them say I drive so the to brought programs number from We that going ability that in single-digit fortunate programs. a of to decade. have drive now this indicated in We are to return our to we're can the to standpoint we look fact, strong the robust increase comfortable to out at we've high you, to with I'm between very productivity objectives. of earlier 'XX. And we're We're that's bring of very of and stage and growth R&D. on as in. end growth, the we we can the always continue X And programs that And tell want over last couple Certainly, outside getting I'd years,

us that time So mostly and growth XXs will early assets for allow we're looking to XXs in late drive that frame.

later-stage those they're and and into they will development they as again, need programs, investment. for drive successful go mature further So

Rob Michael

add I'll this that. just Mohit, Rob. is

a at If to it's increase investment year's where needed. R&D guide, this of willingness it's great our you example look

look and you epcoritamab as if on assets $X.X So billion as $X.X GARP it as at from PTKX. well such increases billion. midstage we're focused increasing Those are to

decade. RINVOQ We billion Phase revenue studies several dollars indications could several of latter the for of half new III which additional the in contribute also have

We're year So the seeing even we're line, a or committed to we're whether where innovation increasing decline R&D very internal in external. in investments. investment, it's top the increasing

Operator

Stanley. is with next Morgan from Terence Our question Flynn

Terence Flynn

wondered, just approach your was the last on guess, I this about level, there year. guidance if to high different, revenue side Rob, I anything or Rick, versus year

think performance of year, franchises. different across I last was number choppy a

you you thinking dynamics any can is Obviously, then in about XXXX. this the we as XXXX other think it? in appreciate the about but this U.S. about on year, provide should year And details you question you're So the anything my as how second I color HUMIRA guidance thought how different approached

Rick Gonzalez

Okay.

So start might maybe then in that can fill I and I'll Rob miss. anything

look that assumptions range in on bit based have HUMIRA did that is as a for wider fact very erosion HUMIRA at than we and I project. execute we at small that been whenever this can seen We significant impact. look on can this high biosimilar, it we that guidance fairly as I have say a very we our we're against a the obviously has the normally we I practice. the guidance, making guidance. obviously, that you've level that goes historical look would year, changes at think what something think little we And

about in $X.XX. we're So the right by this guidance. that's and range reflected in

And level so of this confidence I would have guidance. say a have as in deliver we high on going we're historically, to that we

requests a are we be we That that $XX.XX should As it will from you provided think to it have assume to that would maybe that's we will $XX.XX lot that, the One, means to we but of 'XX what when about little of and a about go guidance, we this relates that. it to how give doesn't is as we've So floor. you will part because a to the down hit floor. floor is around investors say color trough we investors mean the or 'XX? it be gotten XXXX, will projecting what a be absolute

Now when will we we Will to XXXX. occur? in drop that when occur, XXXX? Or or if trough in were it see see the will we the

trough platform 'XX tell grow erosion occur into significantly is what will XXXX. reason impacts is HUMIRA. and why versus obviously 'XX move and risk into growing expectations be 'XX what is the in based greater between I has have could we XXXX, if growth will should And I current planning would we're in strength basically the you XX% based it plan, XXXX. would obviously in overachieved But there's XXXX will our of ability where on on you this The plan that in would offset further because to where it of assumptions, to the tell you our somewhat 'XX. on the this be HUMIRA it

annualization year. will said in You expect we Rob of 'XX. more as have in second impact half an the of remarks, his this the And of

those when So of But and the extent, both to would the expect further based impact that we 'XX. greater an growth probably has have HUMIRA, to erosion volume flows annualize And XXXX. going price in that, through grow then platform to that assumptions. you're through to on you ability a

operate we the the with that on And philosophy so that's guidance.

add? anything Rob, you'd

Rob Michael

at we've our think record I on AbbVie, exceeding delivering guidance. reflect the you history a back long of had track if

didn't top I XXXX on line make is now, we if earnings. at look think an And you the exception.

highlight. important So that's to

the would were down versus on some share top X CLO And market you actually it's did XXXX not XX% in the that look factors that, guidance and miss with line, IMBRUVICA. that's versus the pre-pandemic biggest we Imbruvica recover. then that levels. market, anticipate at original additional mean Venclexta, see did the If we I impact drove not --

we the aesthetics, in slowdown very a to first month obviously, of started had we then a quarter. May, see strong And saw, in We the economy.

we what those So drove both made are line really things top earnings. of the miss,

Now responsible guidance about said we can we it where the But we the things good look in we we give XXXX. XXXX to always set factored feel have most we and confidence those that set appropriately. both investors to guidance

Operator

comes question Chris with Schott next Our JPMorgan. from

Chris Schott

just a for franchise have following here. me. HUMIRA guidance trough up It X a Maybe number. on XXXX about still billion Just going $XX being the seems to like you're U.S.

you're think HUMIRA? So look reasonable Like XXXX can the XX% year is look down provide to like what little of bit XX% we 'XX. you to to a color more to about for it out just maybe envisioning as

much facing this I think around we My we the trends just as time. core same I aesthetics is just year. on at growth a HUMIRA question platform and headwind, hands much how turn was be to how second just your of in guess, the move going that through

at some You've few of sequential talked quarters. signs stability last about least the

talking You're up about stepping investments.

a got launching. products out guess we think I the second of the couple as year? we You've some in half recovery why shouldn't business of about new look to this

Rick Gonzalez

Chris, this is Rick.

the about We're the bit trough. a X weeks into and biosimilar me Let little HUMIRA talk activity.

you So little precise difficult XXXX. it's predictions give a to or

most obviously, this about what forward to the Certainly, the on price at significant to the HUMIRA what is impact be year, we're clearly forward And think going price. we to as price. like. significant think going we that predict trying HUMIRA is would most I is expect look will is look going way impact

in know put predictable the is what we contracts more because the that together. that's we've obviously So pricing

I we so that of something have confidence. think that's high a And level

and 'XX, It on to be probably emerge. X as stable platform. expect would start where and will the the will pressure 'XX revenue. be to is from but should move would volume on be of still I And more further stable price able 'XXd. things have some to pressure of tail we see further tail HUMIRA in that for at say, we growth into as a of allows there'll the There that's we 'XX to see us But that the 'XX develop end move more 'XX underlying in HUMIRA growth pressure I

So happen 'XX then a as we number forward. 'XX and 'XX things and between move of

that. comment, rates second will that certainly economy difficult recover the that's it quickly put happens. that when to U.S. may think in very all As want to see return does, And obviously, for would recover business would And plan start that because to growth predict. that to assume to expect the together a earlier expect we to in than mentioned recovery I economy. if you aesthetics be a we we expect that fully for the XX will But us don't your in 'XX. We great. would It back would historical U.S.

to another key move is other be able And see us. this that occur business to will that be say expect I we And forward. be 'XX. Imbruvica grow. as then we pressure the year for on so that would downward will and for erosion move there the to the majority opportunity We would Imbruvica of we issue as will less

'XX be allows prediction I able would come look to of to up. don't What you what even make a; though growth that's the like. in So tell want I what to HUMIRA will

have through that. growth like the between 'XX have of to if curve a 'XX and it that the level now we've and platform confidence go the think we erosion high the how looks have we able ability that I to be have ability modeled we

So we can absorb that impact.

playing on far, so we're And said, I'd early I it's so but with like comfortable how far, out. are say things

the you and want to a question maybe little Rob, add color. can more Carrie, give on anything first you

Rob Michael

will more the erosion, erosion. biosimilars Rick. be you will vast in erosion of see the for think price I you In I a coming in contracted the second would of the see middle you'll volume the with although we volume because the market way in this half, expect priced. step-up also more it see you the for the well, year, you'll really we've half think the first that to 'XX, rebates, highlight of in year, characterized majority mean about thing year the HUMIRA

see expect, the to that's how think 'XX, I to about the HUMIRA think be contract right level about albeit through would we guidance based but in you think not to to model way 'XX, at if think up in you volume. but would 'XX we a as step it price think now. It's We're probably but see it. same to as 'XX the the best we not more on give way about going 'XX,

Rick Gonzalez

Carrie, Okay. aesthetics? to add anything want on you

Carrie Strom

strong market thinking is how with still for The and in Carrie. the about very very we're is I'd market terms XXXX, interested This first, of are yes, Yes. mean, category. who -- a say, aesthetics fundamental this it consumers in the entering I

saw want we saw And in also procedures. that and these is trends with And economic a where consumers, the with a saw modeling And with interested strong the new what the in metrics that we But reflected as future. so were we what's our but on XXXX. we we research in to now we're in for they said, reflected their in softening, yes, we conversations for economy, that exited on demand opportunity XXXX based those going aesthetic might the enter category. that, remains to to market see category before the practices, perhaps continue customers, in are as patient want

those market said, different around a for U.S. part first mid-single-digit lap decline. means like as of year. by rates quarter that for growth be around would we the be would market And the And a is strong XX% we what growth market toxin a U.S. filler decline

the would other represent if scenario there is hand, course, of deep environment that that skyrockets, we've like is on macroeconomic a where or if unemployment improve our a favorability something to plan. Or that stabilizes recession, Now the contemplated. not

Operator

BMO is question next Markets. with Gary from Capital Nachman Our

Gary Nachman

the question First quarter. thought. on It's in neuro we than is actually weaker

maybe annual So have the do adoption this expecting article was inflection And deals. Rick, to then, gross net, might there you lifting $X be how what any are would that rapid you additional the be cap think oral MDD, that self-imposed said And year? billion do for on you you more development in you an capacity be Vraylar business pressure that and to that would recently of you on CGRPs? for sort

do focused on important what have capacity aggressive? the pipeline? products guys Or would it much to sizable you looking it how be And how areas mix? are add So most into marketed mostly is be you to

Jeff Stewart

on pressure the we the it's Jeff. we the the overall incremental Thanks see did material for did a but Yes. it expectation No, quite I'll marketplace see first our gross softening -- was not take on question. modest. little one, preventative net versus to

shared So if XX-XX ourselves fairly competitor. look between at and capture rate capture mean the and our consistent basically no, market, prescription you a new the it's oral I trending. major

In because terms depression inflection we depression would that had for we of adjunctive rapid the adoption discussed indication. we a have very, very really pretty the anticipate previously the adoption trend, access Vraylar Vraylar indication, strong in for

what we've seen. As I remarks, mentioned that's in my

already we're versus So trend mean quite see encouraged. I indication. break new what prescription very a bipolar adoption the we was X the nice significant can a growth on rate for

dynamics think response, the and customers. the see scripts terms of again, here the we metrics encouraged So a it's in feedback terms month IQVIA, our from both of sales quite the but only We're in in been been force the early from January indication. I the where promoting also qualitative market really new has out the

Rick Gonzalez

us look in. what for look on on to assets. based we then we find operating areas each accomplish we're be are capacity, would obviously that areas good the and identify And that can business see think -- we strategically trying we we're development we those if we at to of in believe opportunities of deal therapeutic kinds

or end gives to X our able of return the the growth well market ability we we're over strong the then what's drive assets years. can that we to through be on As I mentioned that high to out of single-digit decade. as next a very the the position that I of before, the us think growth drive fortune and as in with That coming pipeline the have growth. X today

fortunate relative we our [ph] after we're peers, also HUMIRA, low that a And to have LOE -- very have exposure. we a

So lot a the pressure on of we downward don't have business.

billion paying the of on I'd And kinds remind cap of done focus assets. acquisition that, when historical again to those place we said we Xx that about Allergan debt did practice allowed from assets. put that an transaction, was we've in having some $X the our been down what Now earlier-stage for job Allergan excellent everyone us the incremental that has

have that. we're would were thing could there But now to So plenty do right certainly along, do position a able create We the shown transaction that the come a of be wherewithal value we to in And that much that we certainly to in to the to do were in. we've if larger. we and that was do financial that capacity certainly bring be able assets that.

The aligned are areas that our look growth we areas. therapeutic with typically at

for would aesthetics. eye though. areas smaller We to look areas of I care, opportunities are certain continue well obviously tend in the oncology, immunology, So states. to as the as and be say, They predominant acquisitions, neuroscience

good we we've at the day, are end about of active. and so And where feel been the I quite

and those. round development like group. I We look continue a that you help have at should something category that's us in, a really interest very that. could active And us expect then find we're it of we'll And to said, on we out to business act

Operator

with Gould Carter from Barclays. comes It

Carter Gould

evolves maybe potentially 'XX over that near-term phenomenon 'XX, drawn that a link you sort you've sort about evolve think going of if number and expect intact? Maybe is to disappear guidance you come -- I I on return we the to as of the guidance guess, to differently. how you does And as will sort we in business China reopening think It of the aesthetics. fronts. of, then I for sort around of expect also back if to touch that sound you to wanted you it how and it Or of back, comes didn't built will forward. the -- guess and then was? around link of it to Or sort conservatism as like sort that -- to in that if a much remaining should

Rick Gonzalez

don't question. why the on Carrie, aesthetics you touch

Carrie Strom

Yes.

and say So in increased the that responsive China years growth I'd past demonstrated global that we're is has It to around question putting second very the be significant and market. few China proven to largest your into our business. promotion

second China issues aesthetics COVID-related market, and the quarters. especially fourth impact did XXXX, in course, Of in the

and situation current look everyone peaked. And XXXX at the QX through that expecting Year, the a the first the in China we and recovery year market in and from as like look as improve improve does Now, the the returning the in to to it has full beginning New and beginning continue half wave is is second will we're the for Chinese half of year.

definitely and continuing we So in challenges XXXX, posted our China investments in will despite beyond. China growth the and positive in be XXXX still

Rob Michael

And Carter, second answer to I'll Rob. your this is try question.

for I go in mean the we 'XX always gave $XX.XX is 'XX flow as a at about reason you could being through mentioned year, think the we we think that what erosion. think because we about that and guidance way HUMIRA way for dynamics of the the the range, the -- it look the around through to to trends as 'XX. clearly, contemplate [ph] But the floor

do So range. we're can we happens in and more in anchor if EPS going that not 'XX to least you floor back better our then to $XX.XX 'XX, it below at of fall guidance in

this on erosion sure is 'XX. better HUMIRA factor in the means So that's to for guidance. way understood the it. in we than think we always If but would just it We it's that trends want year make you potentially about to what this have

to So trends. think sit here way as we that's that's again, always the about it. But factor best in today,

Rick Gonzalez

clarify me add it. Maybe just that thing might X help let

in believe what you in XXXX competitive we're 'XX. price think a because level and 'XX, of almost I think about happens should dynamic. of get HUMIRA to regardless certain of the in We going volume to

when what we're we really talking inflating 'XX. is talk the so And shift, about about

the 'XX it we 'XX better to and point about be 'XX in to much And think of between solid expected, level but inflates of that is that anchors have it that is a So than that way we 'XX the where we HUMIRA's That's in [ph]. a point happens 'XX. will high anchor confidence the shift you against If still do thing right? tail this. 'XX only

Operator

It Cowen. Steve comes with Scala from

Steve Scala

though the price the end and line QX cadence with as The EPS guidance AbbVie appreciably What floor that our XX% It Maybe is assumes is the high anticipation to guidance way could not the of question. on that seems is erosion. restate because believes as low the possible HUMIRA of through end implies better? EPS XX% another of already year low? is full the Or we be QX be should erosion, XXXX reached? How year? for quarterly it go EPS in QX the guide

Rob Michael

the X so on think Steve, you is guidance So on gave I U.S. HUMIRA the we anchor way today. best

first be we for we said erosion. XX% quarter, would So the it said

going vast the in the majority And we to there'll will And come expect biosimilars coming erosion of because the -- more half we the year, so in X second that's that year. of be be and to would -- of market middle priced. the said the to of

So affects you got in Then the erosion you in for have the factor at like to factor first of second the more that that have into quarters things HUMIRA there'll rates. growth to impact economic way aesthetics the dynamic that year, look will we be versus the year. also you middle half year it, first also So see the you of aesthetics, you've half the down, that into lap get when we have dynamic of But haven't year-over-year quite in quarter, right? you the a right? still lapped the the when where we your yet,

those as performance see we you'll growth brands, growth drive underlying the then, those to of accelerate. continue rates And the platform

things look we've the all as really, you full then are QX given at those you So quarterly year. -- the that factor would and

really that tend lot have fourth you those of in would look the levels But if to are -- I X you the example, higher to not investment, given do a There's X. see flex. haven't that quarter. look variables you whole at. for in some terms and We at typically We QX,

those historically the could you quarter investment first a the our you consider But could of use you year. proxy. look think about patterns the at as are -- and to rest the variables as So, versus that

Operator

from will Tim Wolfe come with Research. Anderson It

Tim Anderson

more on volume? If How couple questions that subject of minus The HUMIRA guidance is is, HUMIRA as I in the erosion a XX%. with of you guidance erosion QX torch at U.S. much the to XX% going price your same minus is I'm versus look 'XX. U.S. what so others.

it, call cuts would that for volumes X% HUMIRA XX% range. be Given positive, that may price are, the to suggest in the XX%

of percent that off minus And to what triangulate second question, to the comes the goes we understand of then I lots QX price? XXXX. can there's from know again, back for XX% So erosion minus 'XX. on be that hit minus faster or you net HUMIRA rate likely the of XX%. if XXXX uncertainty erosion than on XX% the would nose, right exact of But guidance slower

Rob Michael

it the So the right? half question in vast the think is what it's quarter, year, Tim, way not on volume. the the impact your majority XX% second price, very first in of in The the of price first half, So that much. to there is is and to as but the as we -- and in see related about step you'll some know market, is have up second the erosion cases, the will to to coming is we see erosion. to increasing and in volume price we'll rebate more equivalent some biosimilars between think going volume expect overall because it as rates volume half, you're of well have

about vast year, half you'll volume volume So XX% the guidance kicking the some you're to you've as about question second in. way That's trying majority's is with And triangulate volume the absolute on terms price or of as I price, think best percentage [ph]? 'XX, of the you in think the question your split. more to price then given, think the -- the percentage your have

Tim Anderson

your hit or you is rate for be the which 'XX in HUMIRA, this than if that erosion XX%? So, U.S. guidance minus the would greater less XX% year of

Rob Michael

a XXXX you give to going not Tim. we're So guidance,

as biosimilars because the for in the through would year. the expect way the level same market albeit volume up you're XX 'XX price going at and see but about is to think have think additional to more to we 'XX coming to full not I

impact in to see we more a would that we volume 'XX. of in So see to would expect expect 'XX

Operator

Goldman from It Shibutani with Chris Sachs. comes

Chris Shibutani

some 'XX. potential expectation trajectory You into being Is What still the of margin of broadly, the previously is part commented And is I believe about -- seeing are basically of Are we're that. about want to as biosimilars operating to part that of clearly, figure flattish. invoke approaches outlook you some dynamics, lot cross-currency portfolio data. novel portfolio? across your those out the your them of mix 'XX immunology have do category characterizing of [ph] the you clinical a that then with the case? that you PNSIL-XX. to with for we're to care some for see the some of whether newer keen given going mechanisms emerging your What the mechanisms, standard most

Rob Michael

Chris, this is Rob. I'll take your question. first

for purposes, roughly and again think sales modeling robust with stay growth. level to return this I in I margins then at begin would 'XX our expect expanding operating in

that then of what the the long-term and pace the and think as beyond. look depend prioritize always through to we best 'XX drive like I and margin operating to think on will R&D 'XX way SG&A will investment will expansion growth needs but in that's investment

Jeff Stewart

And some maybe on immunology well. your ask Chris, Jeff. on and as comment then I'll Tom question kick to dynamics off it's

indications he amount IL-XX atopic my really, as excitement our noted in that interest is So dermatitis the for very, highlighted. the certainly follow And the there's very particularly categories incredible RINVOQ. the mean, midterm, and across SKYRIZI clear it mentioned striking. wave I IL-XX dermatologic Tom really excitement profound. most these that a It's in next is for think and in these across still that I of around are quite indications on immunology remarks, I And of

players. that, maybe having orals. We novel them the are some major Now landscape potentially for as some don't we competitive said watching see

can that And approaches, of biomarker-driven there use look we IBD. possibility As or we novel our those particularly biologics pipeline, see the for monitor the deeper we look we carefully in very in plan. as combination long-range is at

if the terms in know don't I things in Tom, our of back want pipeline you address immunology. And are that some to of

Tom Hudson

it bar I with really for just terms you mucosal the mean and RINVOQ SKYRIZI healing, I I start see think the and want saying to of example. that in raised in Sure. -- efficacy

getting to is read head-to-head year we're show continue STELARA we bar, to that to we're this and Otezla. bar raising and that. the to will out higher the going we're So with do do But even also -- going studies

we be the We're in that the that are a of treatment SXPX on -- terms look of which show to very discontinuing way less of at but We have effective mean, are data is competitors. based inhibitors that seeing to another what similar seen profound with signals previous kind responses others and to at and we hearing And So we've patients with we're data honestly, continue we field. look the what see really appears cardiovascular number patients. ones. we of I

without difficult durable do the again, SKYRIZI endoscopy that data, strong, with how they'll able at and are having the of to RINVOQ be predict seen level So also. our I to strong accept all and it's mean, very again, very of kind data

we we edge. already have think a competitive So

see we'll this continue later year. PMR data We

our about additional clinic the in now. talked right looking inhibitor, healing We're coal that's again, from RIPKX the have We at indications.

in obviously, to down on well mechanisms. necessarily happen additional RINVOQ time, pathway. as going And target responses. combine mechanisms pathways pushing tool will SKYRIZI mucosal other we're just look the an where being that this things more but a over not JAKs scan So at the GI, healing at immunomodulators our same profound other or give think like of to again, even is and in we with But combination of cytokines looking

Operator

from with Colin UBS. Bristow comes It

Colin Bristow

all helpful color the For so far.

one market So just maybe a been net this impact is -- has us people around regards I expect getting HUMIRA lot year? give just heads anticipate progress? you that of I&I broader the are biosimilars. the here? just CF we've wrap you what maybe to their a later curious a data on sort trying ongoing. on the know then in broader Can price trial still and we the your I triple. update question Should of to I'm How just been question like, is an of terms is with

Jeff Stewart

immunology take the Yes, marketplace. I'll one on the

are do coming. pipeline X different quick is -- for to in impact of mean RINVOQ just be the of it in of what these I which post-TNF which on already Tom recognizing give the the place the have either overall changes this. they've versus based seen SKYRIZI that think pure has the and mean payers discussed our products would a that I'll standards category think agents what before and that And lot some others of really they net really a modest. the certainly, the the particularly in I on are RINVOQ. and I type and is label dynamic. profile of price past. the taken care of example major I And physicians are is RINVOQ, setting a I've

pricing the there's for to it, pricing so no the ability step is to be going incremental example. And

on Otezla, thing with major competitors trials note the would Tom another other one coming as SKYRIZI, head-to-head and we noted. I have against The is X all

achieve multiple against higher going here. I clearance and start much Otezla, And you it's of levels whether that becomes you're to to that relief. just of as see So TNFs. just clear performance, said, STELARA, pending level that's it very

time, So in the certainly, can navigate that performance that of impact the particularly And very the we U.S. of the we modest. confident over feel on pretty will portfolio. pricing market based be the power

Tom Hudson

have looking the FEVX we sweat triplet, drug, were Tom. assets. program the just triplet is best-in-class of we're part the year, answer this of we about fibrosis continues. you, expecting we in basically we of Again, on the for previous I'll chloride. this This program. this -- for ones X where the remind where working improvement believe give were meaningful and X CX components called just didn't triple the But another that cystic last to corrector, a And

actually, studies. we've year, in In new in I last to groups, the ABBV-XXX continue So our discovery forward. ones. we've develop in our SAD moved Phase

behave high later it -- of this to I'll this -- will, continue and to together. good they give has show tested, that's all, again, best-in-class first again We us actually part to And combine that if a an -- these, be makes is we'll this with be things with how with to -- able think have our potential exposures, it of to you at being data, year, year see triplet PK, preclinical data safety, update.

Operator

[indiscernible] next Credit Our question with is from Suisse.

Unidentified Analyst

Trung Credit [ph] Two, from may. Suisse. I if

U.S. your broadly the So I and was more dynamics in the on thoughts just pricing EU on wondering

There So Europe. you does are proposed U.K. an the just in recently there's reforms in like EU, -- of being it feel exited complicated increasingly pricing agreement. environment. number the In pricing a it's Europe, becoming

like for bio. then I question to and renew see perhaps things ex pharma when guess to your to you going about is can material growth in engaged remain controls. it and you How these D.C. in your just to you IRA you a is, not secondly, talk or headwinds and you membership have any my are first do And U.S.? voice So pricing reasons decided changes being your comes

Jeff Stewart

think let's it's for were the U.K. the needs in that VPaaS. that We They voluntary terms about the a of properly of there in frankly, or a all decision is problems, Thanks ways, EU. take revenue think, I in tax same. see the to might now because Yes. dynamically very some was movement that impact for the really evolve and of [ph] U.K. government how plan the it the program, some voluntary didn't I'll is U.K. company. policy in the industry I'll that first on not causing VPaaS reform and do the across one particularly things And say, substantial the, we or part the question. of the the in we comment so-called program outside whether In there,

business it net whether modest we U.K. position policy were neutral. frankly, or in for relatively and a So the position, a is didn't was of not It us. matter,

in aware in come the Europe free law, pressure of. you're example. changes as And modest net particular, Germany, rebates, there's for probably There's pricing months. X that because year to We seeing that think, is, importantly, increase in I you modest are perhaps more in some will a in know, as of German may the from X move, a

-- it's it's platform we scheme, our see the But we've austerity I So bigger wouldn't growth been that impact. discussing. to some on do say material

Rob Michael

Rob. this [ph], Trung is And

for In it terms low digits year-over-year see of decline of I prices, we as mean, that's modeling to typically, well. the and international we're way mid-single 'XX

Rick Gonzalez

is that point any pharma, based or and that decision to on this is pharma investment we then significant going Rick. to decision that. of make. the right made a around return appropriate the at is we of And evaluate that on year, have not ultimately, And to as believe level we going time. kind make we're And Obviously, investment whether we every in

to grow as appropriately we anticipation of significant been a XXXX, as organization. We We in for active did appropriate very that it for been patients. try that's affairs group Back well on things government have and this being came into the been part since grown have active that somewhat in advocate think in not to We we pharma. plan we've ever place past of being in year we existence. are

the we've to into decide do think future, to that. being made to that be we that I group would that at in that And point elsewhere think It's a And of point, But simple could capable I might at pharma. you decision as is as able back quite that. tell the we this investment used be more effective. go

Operator

question with Meacham from Geoff America. next is Bank Our of

Geoffrey Meacham

I the I next comments just HUMIRA on appreciate your Rick, in on scale year all guidance. the on had perspective the follow-up a starting for U.S. on it.

when international you orphan us still expect X think for do next And U.S. all role you're could years give double-digit HUMIRA after here declines clear, at there that we what a look Maybe at STELARA some expand I&I context think the the seeing so. getting biosimilars, the versus year may when just be that much see question, what the expand or seeing from I the more for across that the that just say the think are niche I HUMIRA into therapeutic the front, second to then indications, the assumptions on about you erosion? wasn't some menu to guys I space interested indication. companies and you categories if geographies, other But BD guys for here something you play sure would with you you to just talked look revenues, broadly you're to impact consider? your more in. some biosimilar appetite how when landscape, was And you're in of

Rick Gonzalez

to HUMIRA the see that, would more want I to and that XXXX to XXXX, case. So make HUMIRA. we're for XXXX. think just I tail words, somehow would then what In sure tail, move expect a XXXX as going stable maybe see communicate we is I we erosion in the on clarify I didn't wasn't that start other to I said through in

I you think periods time. deceiving probably what's to is if different in going you at look you countries biosimilar had OUS, So at different

So you went that those heterogeneous the so look in biosimilars. an because year it's can't that as at countries necessarily analog

the it countries double-digit Yes, But but payers still all a the of market. different in experiencing the some market a you by have those decline and it's large stability yet. correct. have been who of drive activity that not a small reached have countries you of typically this is the U.S. are because -- -- haven't is number bulk fact you So little driven large those -- number

of of So, that did it's we couple example. more government-wide other after as do stability. Germany see there, an like kinds of in we've some years, the like a activity, countries And seen

a So I not biosimilar misleading is into think that what's at of that, the you're but these looking factoring fact went you across number overall countries number the years. you're

Rob Michael

is this Jeff, Rob.

to Just to add that.

Rico, if year, and so this Canada about you So look is half markets come of newer from the going like to just Puerto Mexico. at erosion

as mentioned, that, have Rick different waves. we So

seeing And those waves so of still you're through. come some

also that's to see then some like in So a price playing have and low to you also something agents those for right? new again, You markets, mid-single markets. mind going in out in to HUMIRA that's volume international keep that that's negative trends RINVOQ, typically SKYRIZI And dynamic digits.

to see some going of level pressure there. you're So

on year-over-year in you're So international factoring those are sure all the make mind. into keeping something HUMIRA to

Jeff Stewart

prior go a it And with if to back biosimilar, watching. the my couple over think clinical you STELARA comments of there's we're the does at dynamic differentiation. look I that dynamics And the

we've against to STELARA. less be were going will that -- there not the Certainly, or XX that is anything we X see competitive like that biosimilar [ph] X we're seen intensity on first The HUMIRA.

And quite is high so -- and point that actually. price

branded now you with If program. Stellar where look the is at

year. positive, will really the the We in be I believe which plan that towards highlighted what will which entry. standard we've against And on trial end read space. is particularly the the we're importantly, that that in certainly, STELARA and becoming if head-to-head out before, think it endoscopic anticipated endpoint studying is gastroenterology an Now into as ongoing Crohn's, promotion have we putting more that we maybe we've of

think we IL with can our the of So -- Pure 'XX. the we that [ph] versus quite carry ultimate XX/XX arrival well

So I helps. that hope

Rick Gonzalez

third think road to tends I across our drive the question, long-term is what BD place the in strategic on again, that map your put strategy we branch.

I think if about So immunology, immunology you it, objectives within as fundamental mentioned example. say areas in trying There you an are immunology, X we still we we're within of the the where in. we have would that drive. better effectiveness on to higher of words, that levels that higher therapies used to drive endoscopic the raise clinical other patients remission healing. of or are levels significantly we're In areas believe can outcomes

to so have bring as those to in areas mentioned together And tremendous mechanisms combine Tom next-generation there we to assets opportunities X therapeutic that potentially a his amount in or are level benefit. of comments, achieve of effort

able or don't tend that areas mechanism unmet are either look we look bring our significant develop currently have. there group adjacencies. a look where we existing where discovery be acquire to for But we areas can the that for we needs either of outside in us own we relatively But large for those to the outside on something populations. at can within to or opportunities the then we And an and something mechanism as are patient

prevalent. that's good are those a effectively Vitiligo. significant Vitiligo today There overtime. that So, to allow I If to vitiligo. use aren't all. examples illustrate. it We very very will is X there that disease effective, opportunity could are treat do a in options you therapeutic mechanisms be believe at

Alopecia is that. another of good example

So opportunity I that these wouldn't something orphan is say areas. at is how a we that's to would or but core opportunity strategy. much focus orphan our say to more That's never in not an look BD we

Operator

Robyn comes It Karnauskas with Truist. from

Robyn Karnauskas

with you've some given. I want was follow the mentioned It had Vitiligo. great all on, up to just I you color --

And advantage your my the second beta. rux in have vitiligo an Can With it [ph] earnings see TGF in you GARP which last oral have then topical do highlighted for opportunity for call, the Pfizer. with and might RINVOQ? you a competition well then they question compete? first How you mover as

been [ph] know I And XXX. a of there's the space. that's in cardio-tox lot So

how do gives the view what And on competition what and you you you confidence features So what this? like profile? some how indications, do focus

Rick Gonzalez

large manageable will a team maybe areas tag place vitiligo, would that it. I vitiligo say that is and bodies their patients. a for On be impacted a by like are Jeff difficult of it a topical therapy something certainly has topical but to on I have for for people those

typically So outcomes. has better an oral clinical compliance that greater for you those frankly, among have more disease patients severe ultimately those patients better benefit which and gives

stack up data see pretty Based looks competitive areas, like good will the what against feel data. will alternatives in the based I data the what RINVOQ on the potential how are RINVOQ the whoever think the we've about I on So think other itself, for seen we But is. speak perform

and would anything? add Jeff you Tom,

Jeff Stewart

alopecia build those exactly will quickly example, of, look or valuation We atopic are indications do to or middle we of of follow oriented that which derm that. on on Just at on what dermatitis. again Rick pretty top the that the for highlighted. HS When the in indication decade

body the certain We for based topicals of will area. will that surface We on know segment the a patients the important population. percentage be

with action. But be indications at And a in don't case RINVOQ. United For do the we in for be RINVOQ, we've exceptionally believe for base appropriate, of JAK performs example, that that we at There with because just if will clinic. the selective the located have well would looked disease. it And another spectacular all just as the Crohn's might it's anticipate Crohn's first that you States they maybe highly results JAK scenario. Perfect more the example inhibitor course that almost work. to well disease just least as above is face, in not

So We forward our competitive take all that to future calculations indications. into those that as for derm context look into return all we

Tom Hudson

we've continue body been at I our cases for the -- readouts have this mean, year II mostly there's disease just looking Phase and will we those face. coverage can where I study If or with. more extensive

take cream we another have it on to report the Again, a much a body think I you better actually will be it's an different significant data, a coverage. would quarter see oral -- when call. So than we'll

question. immunotherapies. have it a to Yes, and is the to to for drug tried Robin, pathway increase people the you, tumor TGF-beta response known Thank suppressive second

have TGF-beta related heart. The is to of cardiovascular so so because the the in first-generation having valves the TGF-beta effects, of body, target actually cells you some and on the activity in parts of effects many the endothelial the the

latent little Here, as on GARP store we're actually using but it's a Treg heart is target. bit fiber some some inactive receptor in some the sound TGF-beta or not for on GARP a cells, called our that tissues. only that's GARP other sales

other what ability as places That's tumor gives in found a the on Treg us the our suppression to to cells cells causing opposed profile body. safety and in

been the So to able will be needed attribute and that to so we target to would from we've something we the pathway felt that selective tumor beginning far. that's was go be this what see

Rick Gonzalez

She asked about what tumors potentially.

Tom Hudson

Tumors.

initially, in So we on our focused tumors. --

we TGF-beta this off found which express and did we'd of is we tumor tumors well So a patients terms almost although a we responses. and I bladder of And CRC, there in we that Phase unselected in subset will type. do were indications. TGF-beta X saw some has -- in [ph] we GARP. study I our study those thinking because pathway solid saw SAC We started was pathway picked tumor which we in every that saw expand. we which on had And lot liver Phase also knew We

in in to cancer based indications where did cancer So we're see expected did at it responses see but we've point. actually of studying this those expression see in TGF-beta. continued we We expanding on bladder we expanding and liver CRC it

seen we're now. tumors or Given Phase tumors, we've we're both studies have where called we're actually study. we baskets the all its we rating right when right in earlier our I types indication fact that get cold, to to now, have data to continue expanding hot I going indications Phase signals actually But expanding that said to space. actually other II And in TGF-beta of explore again, in we'll dose tumors that's

Operator

It with Baker comes Redburn. Simon from

Simon Baker

if please. I Two, may,

HUMIRA. back Giving give that expected Just impressive to erosion point you also a the extremely us erosion to extremely helpful. confident 'XX. It's U.S. going percentage estimate for is enough in the

pulls us thinking the could market. the Is being we where if upside to what I pushes be due of should about inability you are. wonder So biosimilars and risk those this supply likely that, the additional something to give more notwithstanding generics

XXXX color there in pushes the any 'XX? curve your around and So and pulls into and erosion confidence also

a raised initiatives your 'XX. then an in been by of tax from tax. rate that's One the OECD on question been impact And global some has question topic peers minimum

you factor a would rate? on that suggest could expect guidance give for impact isn't wonder you Your you. initiatives and just tax if I any to when those your if color us

Rob Michael

is I'll this your Rob. first Simon, question. take

typically we So we estimates. typically we approximate point product do give We level range. guidance, give and give when use don't assumptions

has been our practice. it So

for XX% So we said approximately HUMIRA. erosion U.S.

going volume the volume you We that's course the made and have think think I But confidence terms the erosion. that obviously. in erosion, year, -- number, we right? in about pushes of pulls, I it's assumptions over around really if to of think be

price. We visibility the of good have

it's look year, go you what Now update will we'll volume obviously, question like? the a of And through we erosion on that. as the

Scott Reents

Scott. is OECD question give This I'll you the on regarding asked tax. you thoughts some that

So you're right.

the mentioned. there's For lot to XXXX, our impact respect minimum tax do with we out this. worked view, from of any not In see you global things a be to

that We details as occur and OECD be out see there's a if any that wouldn't to an until minimum have, tax impact a this is impact. in know, the we if being worked there a anticipate tax XXXX, of lot on you we top-up but there U.S., ultimately does

Operator

from BNP Navann Ty comes It Parabas. with

Navann Ty

X have follow-ups, please. I quick

aesthetics, your your in allocation. competitors, is follow-up addition smaller and third from increasing first campaigns to macro question on in The new X capital expectation. on you competition is or The Are seeing impact. And you expect line HUMIRA. with the the on DTC second do products? Was AMGEVITA

So can consider which to relevant material leverage AbbVie development. soft we target of for a net business Xx think as is

Rick Gonzalez

Carrie?

Carrie Strom

take I'll competition. on that first question aesthetic

And revamped we in are of competitive What trial are know market So that and [ph] and and is products these product that, and course, highly of expected. It's expand will customers have be XXs. in XX factor stabilize. XX months that's And aesthetic watched, for tends share and driven market newness though entered market-leading to that commands that a year. a is then BOTOX last the increased market years the these toxin and see launches the to coming what we've of this ramps the entrants and first competition novelty at a the the still past we has for to Cosmetics, in is XX and aesthetics new kind as share going around is in terms there's of based and seen terms trial we've U.S. products. competitive to try new end high of

course, And so, any our underestimate of of competitors. don't we

the XXXX, of or And And so customers' continue market for that in erosion clear is that to expect X we share in the new their think BOTOX terms number in be competitive in will U.S. our beyond we'd a X, And number enter toxins X the [ph] 'XX amount X market business. position we our competing offices. leader. what and that are modeling cosmetic Botox will be of

Jeff Stewart

X and very range high again, carefully, that were On very expect. interest different of as on And released is and some this seen we've WACC your WACC. that studied this it's a been external There's AMGEVITA, where it there AMGEVITAs, on X were across the pricings of But would not really Jeff. categories low comment were you surprise. thoughts different

from in products And market their the HCV other generics seen our across multiple So segments were it the the diabetes of own often with list competitors. we've with authorized competitors. around biosimilar variably certainly, prices own They priced competitors, -- including with Amgen space and business. in seen We've the moving well. as WACC

So all range the in expect we that Yes. Amgen. from would all, within

Rob Michael

I'll question the This leverage. is take on Rob. net

-- it think target. is Xx the sustainable about as our So

way to could how to would path a back think back X it path, very about the as Xx, years as to clear there's us as So best X long that's of net Xx, to leverage take get evaluate some as in But back get that. we to a long cases, path could of there's a take leverage net to it. to

Operator

Our Clark-Gartner final with Gavin ISI. from question will come Evercore

Gavin Clark-Gartner

XXX that they were One the Venclexta the this frontline from FDA plus to thing And the combination from Wanted rates. top don't yet. discontinuation ASH full data if sticks then I to planning have following submit you on that line data Imbruvica competitors year? CLL to is we have the out month. confirm in Parkinson's, lower saw last

just may on there's or any explain devices insight So if that this. wondering trial design

Rob Michael

I'll Roopal. take those. It's

prospective we you ASH as that about couple I that you're ISV X.X% think Europe and the at There less and the not see of for data, submitting referenced, PFS a the or would data At FDA. years in we're stays like the is this They talking So it another low. still more little here in to overall setting. have time, survival. clears trial

bring this on you interesting So that's the competitors up. hype. the XXX, On is

it's impact patients could or happens them, So these going the them include have what when you post you run not include to run rates. in. you in, discontinuation if And

So our into the set, the and when run-in for discontinuation you run-in main part of see data the get trial. count example, post we you as

range you would And subcutaneous us consistent in you clear fairly data, X see it's and XX infusion. injection to the as percentile that is more about not that's so. is or a speaking So than see And that's about with we if Also, can how X what injections that it don't you're tell XXX. rotated daily. is that reported. I know with you

XX it leave We to XX unique single from gets up that you for exposure DUOPA It's injection and have DUOPA hours. in a hours. dosing to can

Liz Shea

That concludes today's Thanks, conference Gavin. call.

visit the replay please Thanks joining call, to listen us. a for again at like our to you'd website If investors.abbvie.com. of

Operator

for all you thank We call. conference today's conclude does participating. This

disconnect of may now great You rest day. your a and have

AbbVie (ABBV) 9 Feb 232022 Q4 Earnings call transcript