ABBV - Earnings call 4 2023

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Operator

Good morning, and thank you for standing by. Welcome to the AbbVie Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] 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. President, Vice Senior Shea, Investor Relations. Liz you. Thank

may You begin.

Elizabeth Shea

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

the Joining Chief is us for Research. the Q&A of Officer Hudson, portion President, of Vice call Senior Global Tom Scientific

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

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

we slides the have be In our posted this we'll issued of at morning, also supplement covering addition to some investors.abbvie.com content the news this release website on that morning.

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

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

Richard Gonzalez

thank morning, you Thank for joining everyone, Good us and you, today. Liz.

delivered performance the AbbVie, with revenue year another well sales of with in off tops expectations. our than our XX% base Humira, platform, results more growth quarter with quarter. the the more growth I'm which fourth than And excluding above particularly business, accelerating this excellent X%. year growth full initial to performance for pleased of Our

in growth across by diversified to largest in ranged our adjusted pipeline will XXXX [ increased several investments in accelerating enabled ADCs, to solid which multiple $XXX date our of tumor again entry and ADC into substantially our promising The and platform disease. also the strength has tumor industry, long-term business our several proposed acquisition myeloma, like of ] and supported programs, These our bowel XXXX solid investment support successfully growth. our Moody in as has HS of XXX ] us of for was expense, absorb [ space R&D to only nearly XXX, for include ImmunoGen as higher loss the portfolio million oncology but inflammatory event and types for The not their exclusivity pipeline. well next-generation strengthening continued be

], our [ a acquisition Cerevel as in of with As pipeline a of presence opportunity proposed augment to well neuroscience the unique differentiated assets.

our have we which XXX%. increased inception, October. dividend, dividend announced in also quarterly We than more grown our our by Since we

additional the call over in year In XXXX, to outlook, business outstanding, Rob? following CAGR sales growth the of exclusivity considerable the growth Rob performance. turn our the an comments return has single-digit driven including our robust summary, operational platform. I'll our and a end with that, X have our [ a in expected We remain XXXX and return loss we on With high including confident into to just momentum execution ] decade. operational growth Genera U.S. through to been long-term by heading for of

Robert Michael

expectations. key is initial billion, revenues quarter productive growth reported another net of initial we our per guidance. guidance our $X.XX our of of Today, We each Total share year for expense. earnings roughly IPR&D strong Rick. of midpoint, you, $X.X and five full year Thank which Most delivered initial AbbVie. highly importantly, ahead adjusted impact $XX.XX, the were our excluding $XX.X areas billion outperformed above

to pertains near-term three of of our first, strong we priorities: key platform. brands, our key [ performance several and each Vraylar, growth robust In AbbVie's Ex-Humira critical is driving portfolio, XXXX and Ubrelvy our return As focused beyond. we to to This on which are in contribute therapeutic driver growth platform outlook, the expected Rinvoq, XXXX. including in have double-digit it Skyrizi, ] growth sales Qulipta, are

international trends expect growth improving by the this execution market We across aesthetics meaningful and in year, driven our also business. continued U.S. for

strong We highly long-term are this market. underpenetrated drive growth in well positioned to

Second, year We our standard patients. of on we several third which the Skyrizi XXX the approval updates in opportunities elevate R&D Epkinley lymphoma. prioritizing including line U.S. investment approvals and in focused follicular ], important for in potentially are in for this plus ] from anticipate to for [ care accelerated pipeline, [ encompasses programs, numerous U.C.

We [ also potentially ] non-small and anticipate [ ], novel Bonty Talisovy regulatory cell advanced submissions our toxin short-acting lung cancer. for in non-squamous

integrating exciting with anticipated Cerevel and year. two and ImmunoGen These track the next are growth [ represent the [ revenue And of into we substantial opportunities of third, in both We deals of well ] ]. middle on on remain closing sources closing the focused decade. the

Rinvoq. This $XX increase Rinvoq CAGR in collectively in Today, $X we we by long-term sales expect than reflects growth our the decade. to anticipate sales collectively on impressive into will billion robust XXXX Skyrizi this of robust continuing more revenue in through outlook the growth updated forecast with reaffirming Which to outlook. forecast our both XXXX, an growth compared also generate XXXX, next revenue includes revenue and return Skyrizi in the $XX prior more now approximately XXXX of than guidance. are therapies, a exceed Based high of billion Included billion end for an in and decade. updated will the with we a is single-digit of which

uptake we billion to of well global atopic more to sales [ disease decade. modest [ growth than expect reflecting anticipate in Rinvoq leader for IBD strong in we several are than the in which reflecting more including for an ]. market Skyrizi We ] momentum indications be several share in billion half across forecast $XX as share market sales sales areas we Rinvoq, And global capture new in psoriasis, from XXXX, billion reach Rinvoq's clear four launching each and have dermatitis. achieve continued continued contributions XXXX, will and new These of $XX to of IBD where the second potential in as of collective approved This rheumatology comprehends the indications, dollars. a peak expect

revenue billion. higher Our an reflecting for We than Qulipta. than more also Ubrelvy CGRP of updated more forecast $X billion, now includes oral total and peak of $X estimates expect increase

for XXX unchanged. remain and long-term issued forecast aesthetics, previously Vraylar Our

an In is time AbbVie. exciting summary, for this

over demonstrating Jeff our commercial across I'll for our remains very Jeff? comments on long-term are strong. additional our execution We outstanding that, the portfolio, call With turn highlights. and to outlook

Jeffrey Stewart

currently for year-over-year. growth expectations. revenues impressive indications. Thank and delivered combined more total of continued Skyrizi revenue, $X.X operational The a our you, described, start $XX.X quarterly their we Rob. than were substantial reflecting $X.X reflecting billion, billion, more total each room XX.X%. I'll approximately in with $X On see of than just total full year an exceeding billion of as approved across for growth billion, Rob XX.X%. sales $X.X of . And were billion more Rinvoq immunology, increase basis, of total than sales delivered growth the Rinvoq which Skyrizi results operational

the in-play this for sense between good a just patients get current switching the relationship today. which and total includes momentum by can at and prescription looking share the You share new

treatments all are For In patients and every therapy Skyrizi example, across in together Crohn's disease, these IBD has Rinvoq. of already strong lines been two performance X the roughly of in-play very States. our in United out for both capturing X

their the digits. combined share only is While mid-single prescription total in

colitis and anticipate for a this indication Skyrizi this see year. launching You for trend later in similar happening we Rinvoq, ulcerative

for safety So dosing remains revenue in significant IBD, their especially respective opportunity given and profiles. inflection efficacy,

half other U.S. high is mid-teens share in Across is share prescription indications, biologic Rinvoq to some share share, in Rinvoq in in market market, the digits. capturing X%. dermatitis roughly percent. total is roughly of Similarly, place the the the psoriasis of Skyrizi mid-XXs share in while patients while total notable atopic high-teens is total the a arthritis, in in-place capturing is in-play rheumatoid relative which the is single capturing

headroom are in across several Rinvoq addition robust and room, the So derm Plus, that to market across revenue indications into typical substantial half markets decade the planning for in to the inflection we of have provide again, potentially for share additional significant gains see sizable up XXXXs. gastro. growth we this will and five to another second

have due trend of $X.X while once in U.S. this out sales expected. with formulary global down impact XX.X% performance than markets the we In broad biosimilar Humira erosion to delivered billion, U.S. continues played which in access competition. Humira, for quarter, international our expectations the better XXXX. line largely The to in again our to secured across now Turning

biosimilars step some the vast we down be will coverage access still will of in have to year-over-year, for there U.S. lives. While patient majority parity

Turning with AML with plus now in XX%, been Imbruvica prescription were sales basis third trends Epkinley our DLBCL and oncology, revenues million, and million, strong countries. in XX.X% line $X.X continued Japan. have total to U.S., on for were an down global Europe Venclexta demand where across commercialization reflecting for the global revenues patient underway encouraging, $XXX both operational were in now CLL key $XXX new starts. billion, early pressure up The

later expansion label potential lymphoma the anticipate also We year. for follicular this

we will already opportunities exciting completion therapy ImmunoGen which add Pending [ for uptake AbbVie. Elaheer commercial our ] in cancer, and ovarian transaction, new look portfolio. I market. welcoming two approved have [ a the demonstrating forward we impressive ] the team in the to oncology. U.S. to Elaheer of Lastly, first-in-class ADC is to is

], ADC, data tumors. Talisovy lung further in and And [ expand potential in would demonstrated solid growth [ scale another our has Talisovy promising very cancer. ] which novel

quarter, were In basis. more billion. nearly neuroscience, than $XXX $X.X growth. up $X.X to billion. robust growth revenues revenues $X.X year were impressive demonstrate operational largest area, of therapeutic XX.X% In continues sales up second on million total XX%. sales of absolute an total the Vraylar reflecting were our billion, nearly Global approximately full

major oral CGRP across robust the Ubrelvy see and over ago. migraine And ] the including only treatment a leading to international the [ approximately indications, reflecting $XXX both for into CGRP both prevention new markets. contributed significant as continued continue ], We year in migraine [ episodic disorder Equipta once-daily sales oral for [ portfolio million quarter, ] all Qulipta and just anticipate of the of expansion momentum in We growth approval our adjunctive chronic an for this demand XX%. following prescriptions year, combined for depressive of

to now the Ubrelvy Qulipta raised strong ] ] billion. [ and total the sales expect and $X on our for combined Based peak portfolio CGRP momentum, outlook we exceed from have [

Total up other chronic basis. approved well reflecting momentum global X.X% operational Botox Therapeutic an as on sales as $XXX million, indications. in were migraine

and Europe, sales This transformative and lastly, XXX recently Japan a $X And treatment are a disease approval represents we launched pursuing advanced U.S. later Parkinson's opportunity. commercial for peak the therapy billion-plus year. we this both in in and potentially next-generation

execution I'll I'm turn call extremely we especially comments for platform, demonstrating overall, our which pleased to with with head the Carrie? And into that, commercial across the on very XXXX. diversified growth So strong as Carrie aesthetics. additional momentum is the over portfolio,

Carrie Strom

Thank U.S., Botox Fourth the quarter of In global cosmetic of key approximately million, you, X.X%. operational were increased U.S. aesthetic X.X%. increase million $X.X were an sales Fourth billion, $XXX strong Jeff. marked performance. market growth $XXX quarter aesthetic by an and accelerating sales X.X%, sales increase product of

dermal fourth driver facial of were increase the versus growth primary which despite than fourth stable U.S. to clear remains was drive new by continue was entrants. to the the greater market more XX% with Botox sustained [ an share the of and growth robust the prior in see category. quarter. consumers and U.S. This which in Velox Skinvive leader $XXX penetration the ], of million recovery new ] competitive strong strong and the year. momentum launches toxin We driven [ the of a continue sales quarter, in filler in market. [indiscernible] Cosmetic

continuing but Consistent with show our improvement. expectations, is the of toxins, out recovery to U.S. trails filler market

in the flat quarter. roughly was growth year-over-year fourth As

portfolio. we momentum to look aesthetics with our are we XXXX, of the pleased As U.S.

$XXX of leadership most sales anticipate recovery we an year lockdowns strong perspective, well and million, growth impact performance filler positions competitive increase Internationally, representing our late the in XXXX. We full from benefited growth quarter aesthetic expect and a from fourth markets. COVID operational as both toxin We us regions were market very of China's experienced sales and in in X%. continued

will in the continue slowdown price. in performance balanced relatively with softening results. the to headwinds upon higher economic that China, experienced strong continued what near Within international economic their emerged we impact regions. for in continued our conditions the We anticipate more in has U.S., other fillers than third term, the the quarter expectations China impacted based toxins against Consistent economic over

an drive the investments area Esthetics long remains and very customers, low have term, market to we growth and to our innovation. Looking through our with consumers ability demonstrated penetration, in

anticipate our $X ability portfolio billion we be to for the I'll a end to over to by in remain strong such, years that, Roopal. confident will turn more come As aesthetics sales than of growth and call With the decade. the deliver of

Roopal Thakkar

Carrie. XXXX, you, In saw data submissions of with Thank our evolution we and approvals. regulatory significant multiple readouts, pipeline

As our [ well as Cerevel R&D the transactions. ImmunoGen expansion and announced of with efforts ] ] [

Phase hidradenitis beta we for well very these XX as to bispecific ] later patients results, is ]. HF disease. expect progress all the study, in for pain [ with II These this [ begin high results as [ In inadequate score important we clinical year. anticipated ], this evaluated advanced supertiva high-score Phase Hurley of plan improvement top ] in our patients on program the year. continue III ] [ announced line were compared XX% and ] to lutakizumab and [ to of Stage numerous the most in therapy milestones and alpha impressive this [ placebo. and the results a Based immunology, We skin stage to are higher measures which lutakizumab regulatory demonstrated being XX anti-TNF considering anti-IL-X responders In recently positive III

for role biomarker evaluate that have resistance an plays have anti-TNFs likely approach. UC and given IL-X and shown to these [ Patients in strong signature who diseases. IL-X colitis with We Crohn's, rationale [ ] also the a biologics, ulcerative in plan other ] beta potential lutakizumab to providing

We believe and well of in Crohn's. approaches ] transformational potential we in IBD. the evaluate combo provide with plan other lutakizumab efficacy combinations [lutakizumab Skyrizi in to to Additionally, ] levels assets to as has with [ be pipeline as used

IBD are begin later Phase year. this studies Our in II expected to

to Our will are Europe IBD, and review regulatory assets Rinvoq, offering decisions very industry-leading is of AbbVie options Crohn's in well U.S. levels with severe Skyrizi later two ulcerative with year. [ action with both patients expected this along ] for under moderate and different disease. mechanisms of in high from we UC approval with suite the will applications ulcerative have colitis an of very treatment be in Skyrizi in Once positioned for efficacy. approved colitis suffering

continue the cell with beginning studies make this readouts with very progress We lupus indications. wave programs Rinvoq programs vitiligo. We from ], ], for over areata the year. years, [ five arteritis second to Giant anticipate in next development study underway and for HS, data good III alopecia ] our of [ with new data these GCA Phase [ X

from this submissions naive of Venclexta and the we with half where Moving the MDS hematologic area programs. ] to oncology, treatment across solid our very oncology, good higher-risk [ year Verona second in patients anticipated see approvals to trial XXXX. of in the in In regulatory and III data continue make heme progress we'll tumor Phase

Epkinley approvals regulatory follicular lymphoma U.S. [ year greater and Europe. later third this line we both For in ], in anticipate or the

also expect second-line and We including follicular studies Phase several begin III in studies new lymphoma. to frontline in XXXX, DLBCL

cells administration efficacy. engineered is of deep which while engaging unique some the treatment Phase for while XXX to myeloma. durable by a At XXX preserving responses with patients to With T on treatment high low emerging from multiple data the we believe with to with a the from this a CRS. events the and ABBV to yielding on BCMA-based limited it XXX levels of the of Ib therapies myeloma, study, physicians. T show other very presented cells. encouraged BCMA appealing CDX epitope and our monthly incidence has is severity potential both of CDX tolerable can BCMA and beginning lower effective We're our attributes, step-up new adverse Which for very binding for associated for and cell XXX mitigate bispecific, and ASH highly in binding and be affinity we allowing data profile, or potentially multiple meeting, which would recent administration, All dosing affinity high outpatient treatment. make no malignant

of from a non-small recently Teliso-V endpoints, ] accelerated previously overall III our cell top and support results months. data a announced FDA, on area key line track year. trials year, to this duration of planned tolerable alignment remain demonstrated safety myeloma study results multiple solid these the the believe benefits We this we therapy regulators across of second submission In we third-line with [ and to to cancer. for to strong ] Phase overall the including the potential monotherapy XXXX. with begin rate, plan study discuss profile. in with [ and we II treated Phase begin the combination survival We earlier tumors, half coming clinical lines Teliso-V in in lung response response of approval, is in have the positive luminophaty Pending plan the in

We're from third-line lung in plan study study. on year in we're we track I to colorectal from III good the has with ] a blocking We making utilizes durable deeper to and next-generation proprietary ], more year a afford And the Phase of remain ADC therapeutic cancer program, this XXX index. [ later same progress see and based this also [ data which making progress non-small ABBV begin our an cohorts but warhead CRC. responses the ] to C-MET gastroesophageal topoX our with cMET antibody cell on Teliso-V [ our improved Phase

anti-GARP ]. to We also [ with ABBV-XXX make progress continue very our antibody, good

studies cancer programs lung front-line begin underway, plan study II these HCC, year, including second-line frontline is to to additional Phase the carcinoma and and we forward several Phase urothelial as data on II mature. in look providing metastatic cancer. We this Our updates hepatocellular

recently launch where ] of European [ ABBV-XXX disease. advanced the moving Parkinson's announced Now with patients to neuroscience, we for

We an in also FDA with recently our anticipated submission approval provided complete decision for XXX quarter. to the the second response

delivery Levodopa/Carbidopa system ] are meaningful [ treatment subcutaneous has novel to and in Our that options potential the current development. others offer over benefits

XXX time time with can less require the system. it by combination significant levodopa invasive, and high improvements doses to similar also ], which high deliver to off bring with amount Europe provided Duopa XX-hour the excited transformative morning on patients efficacy. drugs delivers a less in We're and option and extremely to akinesia. this It result nonsurgical achieve [ in oral provides in should benefit, approved. full XXX U.S. doesn't therapeutic a once to

[ submitted decision our regulatory In second Botox work in track toxin. on approval of we the the a And application we ], year. half ] for remain [ anticipate U.S. year a We platysma this for aesthetics an onset, novel short-acting recently in Bonti remaining to pipeline, prominence. rapid and this CMC complete the

application year near the the completion approval second submit end remaining anticipated we with to XXXX. half the work plan of Following of a the of in regulatory

we assets stages ] all that, have also once forward So across [ potential several novel of year. numerous many to over pipeline of innovative anticipate [ look become teams our this those Ceravel the patients. regulatory addition and to milestones call progress that Scott. new and transactions with pipeline XXXX. to turn I'll the oncology in our continue the therapies in again closed summary, These neuroscience the transactions ] ImmunoGen two I significant significantly strengthened assets R&D our With and demonstrate pipeline organizations for to into and clinical And integrating and

Scott Reents

AbbVie's in Thank you, performance pleased with Roopal. strong XXXX. very I'm

X.X%. the $XX.X our growth These our results. from substantial growth have our growth which above results quarter were across We $X.XX, include unfavorable these [ adjusted expense. $X.XX acquired impact IP ] Total down We $X.XX sales million reflect with earnings of platform. our billion, long-term midpoint. is outlook. of share from guidance R&D a X-Humira $XXX Starting results ahead net reported XX.X% momentum guidance notably, to per support portfolio revenues and our Most fourth

XX.X%. R&D includes acquired adjusted expense XX.X% of operating The net SG&A sales X% adjusted of of sales. $XXX IP XX.X% XX.X% expense R&D was gross adjusted adjusted sales, was XX.X% of ratio interest of sales. rate of and tax This Adjusted expense margin sales expense The was of million. margin of of adjusted

Turning for financial to our outlook XXXX.

guidance per IP the does earnings $X.XX, share closing year. Our per full the acquisitions acquired in estimate which guidance Cerevel year. Please may throughout ImmunoGen be not guidance this ] the related of adjusted of and include is ] to This an expense middle includes the assumes that share and R&D year earnings note $XX.XX dilution [ between [ for incurred that $XX.XX.

full operational following a expect forecast sales of X.X% reflecting foreign key growth. revenues year We contemplates total net return therapeutic our unfavorable to to current growth. we rates, have products At the expect for assumptions $XX.X impact billion. modest approximate approximately and exchange This a revenue on areas.

performance as billion, across billion, share reflecting Immunology Global indications. U.S. erosion of $X.X psoriasis $XX.X sales Skyrizi of sales And of of including due XX% share XX%. expect We including growth strong billion IBD. growth market Rinvoq than to revenue nearly roughly in of with Humira robust of as and $X.X billion, more momentum market continued reflecting in uptake $XX.X approved all of billion, well $X.X sales growth

Skyrizi billion. growth anticipate offset Imbruvica as Venclexta basis, [ single-digit sales of expect be by we net year ]. [ a revenue from Rinvoq of In oncology, price. full well that we sales and partial $X.X including for billion, of billion our ] $X.X from modestly low negative volume and strong as sales Ellahere and contributions On Epkinley year will $X.X

billion. For ]. of Botox [ growth $X.X Cosmetic expect sales revenue from $X.X billion including Juveder aesthetics, from mid-single-digit and we

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

For of $X.X Eye Care, sales expect billion. we

P&L for Moving the to XXXX.

sales, of XX.X% roughly adjusted ratio full gross margin expense XX% XX.X% of adjusted of XX% of operating SG&A of We sales. and of adjusted adjusted forecasting are of margin year sales, sales of investment R&D

[ forecast non-GAAP net the year the ] billion, partial rate to tax expense includes approximately We [ of transactions. adjusted expect XXXX cost in and finance interest which be Caravel $X.X XX.X%. our ] ImmunoGen We to

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

Turning unfavorable following We to At foreign for the sales impact forecast exchange comprehends assumptions expect net of first rates, on $XX.X approximate to the a have growth. current revenue revenues approximately quarter. Immunology key $X.X seasonality of areas. of low our Rinvoq therapeutic typical quarter revenue billion net as reflect sales billion. unfavorable of Skyrizi Including billion. $X.X as price. sales These and well single-digit estimates anticipate $X billion. we and first X.X% This

Humira including global $X.X revenue of expect $X.X We of billion, U.S. billion. sales

$X.X anticipate above revenue just of also of We neuroscience $XXX $X.X billion $X.X billion; eye oncology care sales million. aesthetic sales billion, revenue and of

adjusted We approximately sales margin adjusted XX.X% roughly sales. XX.X% operating of margin gross an an are of of and of ratio forecasting

a also tax rate XX.X%. We modeled of non-GAAP

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

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

and billion XXXX, growing was since end $XX.X generate and Our fully Liz. continued we to which business over provides augment in includes debt turn we the remains more maturities than cash cash flow in our outstanding AbbVie payments. once again will the strong. approximately continued financial In expect call closing, for to strong a outlook cash $XX the We'll pay $X free December expect to results royalty have our support back to increased Skyrizi capacity this approximately by and The billion of which billion, free repayment inception, delivered very strong dividend, year further also billion of at we development where portfolio. flow down balance of XXX% $X.X roughly has

Elizabeth Shea

Scott. Thanks,

please. We will Instructions] now open the Operator, [Operator question call first questions. for .

Operator

Yes.

JPMorgan. from Schott question first Chris The with comes

Christopher Schott

color looking immunology outlook. on bit I Just longer-term for was more a little the

by plus billion are was be as is mature going Rinvoq drivers And just growth more to longer question Rinvoq growth time? new part can $XX towards XXXX And has growth and highlighting that the and term? there. in I'm what the maybe anticipate you the of the seems Rinvoq-driven that, franchise existing over type my products elaborate sense skewed of growth for it guess 'XX is the a by more we of indications but these become on I targeting XXXX? You're given from how of Skyrizi it a comments just like balanced it of in indications, terms can like, beyond

Jeffrey Stewart

Yes. walk of through little and your Maybe I'll Chris, there a it's answer Jeff. question. process bit the

sort thing to with of we actuals first remains about continue for the of fast headroom penetration terms indications. look at for we can patients the significant of in these terms So can the in and forward moderate bio dermatitis, And absolutely. big orals, historically relatively is the to to advanced U.S. penetration only severe and of see still there be biologics to these these that about exposed XX%. rate we these diseases Atopic is see And It's X%. still sure is psoriasis the even in modest. ability

talk interesting see XX% therapy range penetrated somewhere and about expansion. I've these about XX% That's higher clearly, before, have you see you like line of markets highlighted And then those. we I'll this IBD. across as and what's in IBD, then the or markets develop, And can that

over the despite going a to midterm and and line IBD into our agents. right third So second largely time. And this severity story oriented still now, believe, we towards frontline you hang in big over becomes of first less even physicians as important dramatically quite estimates the about and frontline a is that perspective. long-term because move the change just long-term to on line market kind calculate because less That's it's that,

decade market Many we'll dynamics expansion. growth the these very stable are line market these have around on growth into the going of therapy rates. because of bio peg We and have significant, very rates of good rates a and penetration next good I growth terms competitive in , very share the around up will capture remarks we're we the and rates, high range feed low of the share that and that. end my the really have in catch of position, very prescription of up sort total good in highlighted a to

of Pricing, a talked can certainly, But high detailed not based to little something pricing. on we is Scott's see we're about high the single-digit not going I -- idea you comments think we've contemplated. a give on pricing CAGR that

that growth talked believe significant coming that more have 'XX, we especially room as we've past So for indications through. even we'll there's Rinvoq

on So to see going into decade. we robust and the are think we're capture our next based how share dynamic growth that these also markets

Robert Michael

is And Chris, just I'll add. Rob. this

the the and growing [ about single mid-teens low IBD digits. think you Atop high single markets, growing is is dermatitis room is market ] digits. growing If

So in a they're there's They us. as headroom we're markets strong lot terms seeing, mentioned, strong to will very be of also capture. continue And of markets. Jeff for share

growth 'XX expect decade. do beyond the the next early part we into robust continue of to that So

I that to observation would think up your five indications correct, Rinvoq. given for is new expect we

the at higher given to new would will rate it's that grow indications, rate nicely. think Rinvoq Rinvoq growth, reasonable the look you very growth versus of assume a but of both Skyrizi, If I have

So therapies, I a you at new little look expectations of robust we bit higher both to because certainly indications. the encourage for more would which book

Operator

Your Morgan next comes question Stanley. with Terence Flynn from

Terence Flynn

from here. you're Great. for of me. us the the investors just on and question wondering now Maybe that succession give number and an We've two timing. been position past Rick, recently, a was LOE well update company very planning given you I if could Humira

then ]. pipeline also Given of litakizumab of a had and highlighted Rinvoq you about have in II question pipeline why into some the recent this, on then translate commercial could second focus lot will you're the confident just Skyrizi success the investor of know not And talk size [ I HS commercial that, HS. the on a build-out? and And I guys the yet. Phase side? side in IBD success data that from Maybe the opportunity you

Richard Gonzalez

All right, Terence, Rick. is this

I nothing same. going to is think first When decision today. the to make use criteria I when at and believe is the That's point transition indicated would we've rest CEO we transition is the be navigated to we've to the make we're the report one. to we are business the the to that want comfortable, time able we a we level. have that's what which cover of criteria that the high I'll position. performing transition. the the best LOE because So make say I the But talked the That about what going guess new I to we're is

can and for So involved that's can say that were years X from internal prior a I to the actively of we're investors I perspective, candidate that's needed the understand use perspective a from there's the give the that make little transition. been I gone last the get ensuring well. the a lot in here my thought tell you inputs the making on Maybe you going X extremely decision better with with clear. I we Board. or experiences to is logical around process has of Board lot that do to order would our what would interest

scheduled make regularly board on the to the be the a I that meeting, is at transition. vote able next would this time then would which make several to Board that The have the making in described business regularly We meetings about point times I and before, year specifically has a Board progress the at the the recommendation recommendation. that to we're proper that scheduled where that Board we talked succession criteria achieved

will the investors. make we would what At the get to an can announcement would send that out an we that vote, were the for is I a announcement expect end of position of to make a to full that we that the make announcement that point going when Board. based future. and or I you the been you Executive having likely And to able be the be X in to the Chair X say some over that would that. the of I've take to transition order will person out will purpose the named that the to do And time, final months on very the make is that of at myself of that also transition period future. X it's discussions in all time. with between in of the and X transition months likelihood, and at is that purpose time be In period

think very think I out, it's process. well very thought you And So expect think, what well-managed forward. I I can that's going

Jeffrey Stewart

part second second of is And question. address Terence, your off I'll and start Jeff. the Roopal this have

that suffer see to it's going around category expand. many ago a a a turned market, there's the of and it because we of like coming. HS. think to There's established we It's just significant relatively So patients the multibillion-dollar Humira. already we say approvals amount approval was world can And from just market continue new this to thought years and that out I we be And it HS a surprise. now, small that IBD, with quite some

So everyone sort exposed can they're long if biologic. of they as holds on as Humira to a

so emerge of see come that because the we're profile the dynamic we're about excited ] same And the And certainly, lutakizumab we the very into in as seeing clinic. to you start [ IL-XX see space.

over significant it's would the look that we to Humira decade when And I or last commercial business. indications was rapid one the that indications So a say $X all HS most the back over more, of move billion-plus opportunity.

on address opportunity, both patients. certainly And can for an it's comment commercially exciting IBD. So your and Roopal

Roopal Thakkar

part was would that started in disease with almost see starts, of of we overlap HS, discussing, say, Insight I where Terence, good efficacy our and we with as in to HS. XX years amount Jeff Yes. ago had Crohn's patients saw it a Crohn's Humira, between

of So it. that's part

we've out Now our data elevated signals what external for show observed with that beta internal that in pan with IL-XXA and do but IL-X doesn't X is beta. particular data expression really

look about has opportunity because combination. in years look to which safety at be So which in also approach, with now a profile ] other ago this, Lodi beta. would have [ targeted profile we And specifically we efficacy shots like talking product because weren't distinguish Skyrizi, have strong to go that very the have is have on at two maybe And is also actually we high expression. which a didn't to higher the where right? we opportunity covers What Crohn's. and patients at think we biomarker-driven we we that One and it have able

approach we and a have and insights So or from preclinical approach biopsy-based a that Humira insights internally. biomarker combo our and externally

Operator

Next question Baum comes Citi. with Andrew from

Andrew Baum

A mediated of over on couple book a market access markets, commercial are curious to this do I'd on Medicare spilling the of the RNA extent of in given book managed is the of from basically you AbbVie's be same? think future and strength cuts price the questions. IRA the much concern payers One, contagion given business. How

calicilumab [ neutropenia, ] in [ to infections. If question fatal was trials, then I And there the secondary second on from increase remember ]. an lutakizumab

layering the IBD about you patients? of top another immuno thinking on the this suppressive, are you're in If safety how concerns

Jeffrey Stewart

think And often imagine, of Medicare side. the And you thanks Jeff. the for the on government aspects negotiation your IRA Andrew, over can with question. will -- programs that we It's particularly be contained the as the very -- the the what over is or mandated supplemental the things the know years, payers, have FSS they'll and in discussions channel. for price well, when discounts VA with Medicaid we we say discounts

those think are really we and actions government But government rules.

it a terms a the play believe, And essentially market, contained so largely space. the in will unique that out be we see like negotiation has think other Medicare government it's that we channels. will of that largely with the we force in dynamic

we how view world. that's So the

Roopal Thakkar

It's in Lodi Roopal. we [ question driven. on dose I'll around do talk impact neutrophils. see an ], about your It's neutrophils. Yes,

though seen every there's lead success bowel we've However, more I transformational states, is despite the risk. getting think still with and levels, for probably different Because to those every patient benefit tolerance a disease headroom into we others think about to that not to in disease, Not inflammatory lupus, remission, patient. high efficacy. have today, substantial Rinvoq, Skyrizi

that that believe to that can we break combo get and So threshold. still a efficacy

we'll The dose saw what highest combination the at we assure the the is And HS other thus trial, do even very optimize opportunity obviously there the infections. to in with little safety. is far, dose,

Operator

from next with Bansal Fargo. comes Wells The question Mohit

Mohit Bansal

[ the all the go bit on and plans earlier lines ] want ovarian into to acquisition to cancer. back you move the Can made the of you before. the about progress. to comments talk drug Congrats a I ImmunoGen just little

PFS be talked tends and in it, first-line long. to more I mean, about You really reading but OS are maintenance setting, we maintenance, the

how about little strategy these existing provide? talk you the benefit could overcome And the do there? U.S. So bit that you a tracks

Roopal Thakkar

take It's Roopal. that. I'll

a So is earlier move therapy. I one you've point, benefit, survival far. seen into thus resistance, plan as think of unprecedented we've the overall your seen in the And substantial very to lines to

is third of medium And it's patients, XX%. into a population aspect is of expressers data in which Secondly, is And move of are to encouraging sensitive around is strategy populations, also of FR then seen around high we've XX% alpha. XX%. part around approximately the resistance the those the XX% the

So those forward. are the to three strategies go

we full Now insights [ get we've of therapy? seen. ] lines of couple with how Well, carboplatinum. combine One a is into Ellahere dose been things, to at seen that we've earlier do able

you then, BEV. plus ] And Ellahere an ] on [ encouraging with maintain that opportunity as [ that's So stated, gives you upfront to combined. Ellahere or

populations, have So that then that that would the we'll other deficient. we the half with is earlier and of on maintenance of patients getting with time is HRD therapy, see the about BEV, at And point. combine other approaches to line do PARP inhibitors, upfront we that be looking BEV the combinations go which can at are which patient we

together, we all opportunity. taken So see there's an

is OS. Now to bit with going a the PFS along longer be little

decade something We'll of soon that as these start and the studies out as but So they later part will we're for. that the is possible, in read into planning XXXX.

Operator

Next question comes Security. Devon from Vamil with Guggenheim Divan

Unknown Analyst

Vamil. [indiscernible] This for is Jan

has on Humira's I around maybe sense is you can in the better ex with question company's the performance recent was company of and the given expectations provide both in interruption curious, the I if now a my was U.S. erosion on So had of biosimilars. revenues Humira. CAL U.S. the markets. the longer-term wondering

Robert Michael

It's Rob. I'll take that question.

that the mind, interchangeability contracting next look and the does the 'XX to the to in year this ultimately, frame. 'XX see expect tail biosimilars. And first year emerge also like with lands. starts So 'XX U.S., what happens in for have year. time uptake where full U.S. volume we do is We'll in or what Keep

possible tail the something either certainly but I in year, us it's do 'XX. we So expect 'XX or wouldn't quantify would this to

seeing, this this Rico, Puerto price year. the last seeing, million really would expect you the wave your year, therapeutic to is I'd typical then it's areas. relates other we're be half of you're it Canada, that would $XXX And we say, As a erosion like across see international some of markets step erosion think, international, I down half of incremental about

agents newer see as So these go the not and you we're Rinvoq be standard agents. then other what the is really just of some strength to Skyrizi elevate would specific those And of biosimilars. share of seeing care, X/X to -- newer it

international waves final get beyond of be And be then year ongoing way of to as the and best erosion if half specific. more would we'll that. adjust a for the so about probably be potentially you you what the think could want the more But this of to sense being

progress really we you made give how so think for color. biosimilars But the this need year we've pleased can we're more full very, with with very really to the being first see I we plays the before U.S. out far.

Operator

The from next question Carter comes with Barclays. Gould

Carter L. Gould

versus Is targets apomorphine today are neuroscience read first should the of growing How early challenges going the and later studies three that or we by next in term, validated. on individually the year. some and are to or sated bit about should market excitement. that? investors level I your from that and of longer little about Alzheimer's guess, maybe how now commercial sort collectively a think year ]. by on of pie the of these therapies AbbVie II And these share either sort this overall [ fully the out the assets, players device on taking more XXX, portfolio, has that Phase think Two, gels then of looking acknowledging

Jeffrey Stewart

It's Jeff. first take the question. I'll

more oral patients -XX% So you of need consume to they of number at what and on look more okay? have when see essentially this a just cinema, we patients oral more market medications, we significant at so and these macro And orals. are level, a

very, sort to is And surgery any which then brain sometimes which think barrier. you call at taking the difficult Duopa, end faced difficult brain is a about kind to XX day. stimulation, a that is of of very But have either we a they're relief, manage. to decision. It's Which advanced own a barrier get or surgical a GI more And deep surgery. our of surgical like it, very with pills they're

market because that see establish nice we [ don't is developing So it's ]. we this see transition subcu zone starts the to -- a a very you XXX way have

chronic quicker DBS basically new like ability from relief before these segment emerge starts the to overtreatment. obviously, that to basically or and market move a interventions to oral bigger Duopa, So more

Germany very year late launches. So also that's as where highlighted, we're some the how we we launched Roopal last seeing see in and European it. some and uptake Japan, first nice in of And

hours exactly the you injection you that's high-efficacy relief, out. the is essentially with ongoing And move of around establishing and ] dosing super can how market specific [ much here XX category subcu smaller. We're that So new do pump a playing is X again, a titration it's every days.

So company. for opportunity it's a nice the

Roopal Thakkar

Alzheimer's. in the I'll about talk that mentioned other maybe And you assets

holds, dosing REA. that's we could and First, potentially our that's robust one the beta reductions XXX, lower A-beta half-life, What potency, antibody. potentially if that is at like seen long we which that thus higher And out for about based amyloid space see subcutaneous profile looking is dosing we've would that in a other allow we're that be far good to apart. the thing

course, benefit over I would exciting year, think So better again, things quite profile, be a because potentially be the would three risk year, that, see next say, that if end convenience would early I of those a we differentiated profile. it better this and

that's So XXX.

readout we XXX SVXA year. anticipate cognition next year, this And in at currently our that's is end of oral our II. in the early Phase that's medication

a like assessments one a use along typical in patient symptoms ] the can COG is variety a Now a others depression. neuropsychiatric that like Aricept would of being be other in or on studied nothing. [ therapy setting already including where ADAS And we with

variety could in another assets So a different that one with Alzheimer's. combine of that's nice

goal ]. The They early I'll and symptoms or psychosis. these at present right with in in so would patients are ], elderly diagnosis, Cerevel Of emaracladine [ I of which Alzheimer's disease around comes X is now stages the one would third of million from be patients XX% the mention there say [ around psychosis.

of that's of this. it therapies come have the one that think numerous just symptoms that suite are to Alzheimer's all end won't we So into next with year But more and we clinic, nice therapy this address a because of solve very the could going be complementary options to in year.

Operator

Next question comes from Tran [indiscernible]. .

Unknown Analyst

can guide? guide, given in billion, in $X mention long-term if by guidance? pulls reaffirmed that in $X Rinvoq reaffirming these [indiscernible] them included the I are 'XX what you 'XX Skyrizi clarify are this If migraine deals on pushes, the And up by guide, the billion. the Just are long-term you and the

Robert Michael

that single I'll low guess ] that's the ImmunoGen take between keep [ the This did in high thing The think of could you represent digits. Cerevel when and is we of mind include that billion our the around high question. ] in high about single the [ single digits I high end Rob. to digits and long-term the guide. end range $XX is

we've increased Rinvoq there through it, CGRP the updated revenue. aren't any so you we and other. Skyrizi And is We've walked peak reaffirmed What and oral as increased we've pulls. the we've

took got down. wide But that keep you've a we in pretty there's So mind that range. just nothing

course look move you continues Street see that up. that has still It it's to movement, but we're in the quarter, upward It's what If moved at over about it of consensus, to encouraged expect. last below up $X billion XXXX. we nice

rate that Street just think you X%. for the is under growth If

We expect high single digits.

[ to the in set grow as and very up ourselves And we're so next very would growth, in growth, delivering we're be decade [ Cereval very pretty even well single still mind, update but well keep as digits, continue high wide range. it's ImmunoGen regardless it well very we're this with to industry-leading a and well. strong setting ] ], and as and nicely

Operator

Gary with James. Raymond from . comes question next Our Nachman

Gary Nachman

what seems First you're to a more on pretty be talk why decent you XXXX. confident growth in aesthetics, to could bit return a in

a China Can us then for secondly, other is Cerevel operating revenue XXXX, depressed expand talk directional growth of So reasonable robust are be what directionally of [ to XXXX. and give margins are about on be a front. it could way all? the that year. ImmunoGen more you some be the about ] that what And getting for ] somewhat Or think growth? at [ Just from next the in likely to just in expectations more Just that offsetting deals? And regions lift to return U.S. how much headwind will you year? this as dynamics

Carrie Strom

your I'll question Carrie. take and market the on first aesthetics is recovery. aesthetics This

U.S. to the we at I'll the have the market with U.S., So see end of and started XXXX. recover start toxin

We to in expect that and to XXXX. growth market recovery toxins for to continue continue improve the for

in For somewhat after the multiple filler in fillers the flat. U.S. market in quarters decline, the U.S. QX was of

dynamic the to that filler supporting also look growth playing recovery And a and the And we degree, of lesser XXXX. modest out, positive metrics even toxin, year expect -- the to expectations seeing a as demand metrics it's in is at our toxin that we fillers for the market growth beginning market on lagging of so continue and recovery, our do recovery of more Google here. are really XXXX, patient we here

of China China of China. market we do first the the headwind term beginning negative near regions, expect That is the in an the international oriented that recover look aesthetics XXXX like which overall XXXX. economic be terms market expect become Japan, be we balanced In against midyear expectations half saw in the to in half to we Brazil, the performance market. the we in to America, that second And aesthetics, highly for XXXX. until and China Latin with a of other starts aesthetically flat China, like And continue expect to for market has year in of areas including strong market important which would performance

of in QX note specifically the that terms of decline international U.S. our of in be in to by China. guidance important offset that there, in terms XXXX, also the It's growth will

the in in the headwind, also reopening only in was recall, comp economic China. a QX not there So but China because XXXX, difficult post-pandemic year-over-year QX of

in So the U.S., in growth that's the factors of parts we playing see in really market how out world China, other XXXX.

Robert Michael

year, $X we'll we in this are, of single-digit story. year. for China. fillers our to to a get despite I of And the deliver ramping. but still will, the the To we the quite walked growth high given greater going annual said guidance average. But we And digits it's see normal we that, achieve these yet Gary, also a to on in and can And build the we're just how high slowdown growth we guidance. market you to delivering past a seen than underpenetrated markets haven't market as single had growth. drive And Carrie aesthetics through, Rob. be required that's long-term to not billion, that is this on recovery need

further we have growth. said And will hundred indications for top then will ] that of masseter each. several [ few [ innovations add the but support ] I've million and before, on that, that Botox dollars a this platysma

due Our potential to toxin new toxin patients an who not activate has to look. of novel the short-acting have fear unnatural started bond

drive then in that inflection for and So regional is And market long-term short- both at share. providing could consumers. aimed an treatment really pipeline growth market fillers our benefits and

avenues I confident to very X by that XXXX, of consensus So we get have than have seen billion guidance several greater for in at our guide. to than but greater period. we're X $X our estimates

David Risinger

This margin is expansion. operating your take regarding Scott. I'll question

expand in see do to XXXX, robust expand I decade. will to grow will we my the operating return XX.X%. as we and continue do that in 'XX, for So remarks, margin When we we've mentioned guided to growth through as

steady It kind that would you're out the I I it though, I peak relatively think if years. when several that about be pace over around would, think expansion. that, of will at we of XX%. modeling

and return I current at robust growth, with including point that do the [Cerevel which at be that what to have even see 'XX position. operating will margin our it's peak both think year on levels, we'll I time. But full future grow the expansion the transactions, do only noting expansion certainly margin. we that year a think of see presumably that have we at operating ], we ImmunoGen impact in at to in impact, a full hit worth a [ continue and But expansion, should two the that's that industry-leading ],

Operator

with Cowen. from comes Scala question Next TD Steve

Steve Scala

and current tax rate the likely tax Two in outside Is the U.S. reflecting fully questions. U.S. changes the

watermark to Previously, future. a pretty and spoke rate, So the there. XX% high it much the we're represents company the tax foreseeable for

obvious success share of us? pharma traversing with the kind when would your of be contracting formulary slightly Skyrizi that expiration the allocation AbbVie's us. But if dealing curious increases less if I leading But overhead success it. patent visible own of pressures, management you factors wondering And I'm but peers with Rinvoq. a what clear that all their kind few to I'm So externally the are willing would different and a would the behind reasons with missed are us part to of such question, there as Humira assume or you share of then, of Rick, are

Jeffrey Stewart

Steve, this is with I'll Scott. tax start question. your rate

So and XX.X%. this year were the over respect last year, we see at rate, between this the We about with essentially X% tax that rate average. on tax flat to including X-year increasing year do period,

the Now U.S. What per a you'll up see step is year. to X% in in particular, tax a rate, that's not do will rates years a couple going be increase, of the when increase. GILTI

some on average. these going that on impacts things and include bill of other the say see with a saw taxes OECD minimum provision number all we one So that thing over includes OECD R&D a the That of a does week, about that the and year X-year period, things. of not globally per include would this tax regarding expensing. a just the the you I , House does passed X%

So basis. step on pass in slight an of if written, the rate down ongoing points that were it's to our as a basis bill that would XX from impact we see tax about

Richard Gonzalez

Rick. is this Steve,

to say, to able deliver be I think would over us the were performance strategy order as we a and to if And LOE was knew in that, to continue to look absorb the able last, top-tier past have years. objective. offset impact had growth XX whole platform for to diversified years, be very financial believe fundamentally you return that and rapidly XX that Humira we able as the we and to possible. a to trying That we do to we you step be back as allow the to build I'd develop growth

success be and markets We It up able get can understand extremely takes energy by competitive of we as we that I those obviously the but those benefit get guess, to kind execution the markets? with opinion. Rinvoq. well. compete patient to do environment do journey we, that lot is journey right focused ensure it routinely patient how medicines how of and Skyrizi affected to in how in the team we How access think a the executive think, things, patients we an do like medicines. build I do well. the that so that, around it? their We we do AbbVie our understand say understand I extremely I'm exceptional, the in would in of assets been see -- with all end biased, to always commercial and We has those I we're my And of that markets medicines

Neuroscience, described takes, challenges But can and good as and of react. all in and grow out success always to position offset asset. [ with as to reacting change what And was kind businesses they're and That's to say and those. how very had seen time. growing good that competitors very year I'd Rinvoq label Ubrelvy then a at a expand There think, deal it either between that. at with as period I a in at market those year market have ] predicted Migraine We would a tier we've top seeing on are very with read I those market trying Qulipta despite is Vraylar. Rinvoq of about how is in challenging of quickly examples. they're this. complex the those your And where label now. big markets. companies good that different the we've as issues company going many a and great [ ] was very there not operated think for look change, share at We But against continue or at the look I kind is example. with also of and the many that the difference perform

differentiator. at that good that. And the I we're so real And is think

the say largest our industry. We I'd R&D tremendous thing against a efficient have we produced of other The obviously think in investment. return is, investment. that But investment amount don't very R&D have R&D at I we the been

to that as said we need we we Humira in fairly assets to significant year like last a dealing some said like building a a the studies go III clinical we're good significant to increase able thing this do to programs we need. that. several multiple we because that's going at, I'd your increase that Phase year you as competitive are label to that, and kind how very, large significant large having we're and very and we another had XXX and another increase my forward, know that get XXX with Now of fairly label require others And understanding did I Phase R&D, despite say to be have opportunities, going III, have comments, the LOE get

it So those of I magic formula. there's requires all think don't I things. one think

against kinds are think the that of here those well at things and those. we I execute have an executive as team, honed we AbbVie very

Operator

Evan from The BMO comes with next Capital question Markets. Seigerman

Unknown Analyst

how or Campbell about Macon inflammatory to But may may assets. Evan. of of not assets is suite is for our be is management impact thinking offers UC, about ask, the Obviously, impressive the upcoming what I combined wanted an expectation potentially? thinking in how Skyrizi that these approval across for invoke sales?

Jeffrey Stewart

I'll very from basically in a these we one. And about Rinvoq point, Crohn's. take how Rick's them position learned Skyrizi watching we're look, with teams It's Jeff. our and commercial and We've medical that we to how represent assets, our lot teams. careful

in so certainly, And that what we actually we they're see, complementary markets, positioning. biggest see our

the the So right? basically label is U.S. a in after change, Rinvoq use highlighted TNF. Rick So for indicated is

very, just is results, the outstanding. very Skyrizi, there. a best-in-class. efficacy basically look it's patients very tough We therapy. the I studied later line it's some bio-naive UC Skyrizi impressive. say if at the it's So very, you patients, would

Rinvoq. lines, in on for the of for profile Skyrizi talk to representatives, and frontline of So able agents that then many the about to physicians our we're we later the can based see consideration

and positioning. what happens the see significant for So start of minimal. overlap share the is cannibalization of this very total build very you complementary is manageable because AbbVie And to that

able larger be as So navigate well confident market. see very we're we'll in that to just this the quite we Crohn's

Operator

Tim with comes Wolfe question next Anderson Research. Our from

Timothy Anderson

drug question on a AbbVie's on impact aesthetics have business. I obesity

potential three uptake the their fillers to so be the fillers. dermal the and up and patients a aesthetics and Ozempic tailwind tailwind. get a it's drugs or two obesity and could using like of have using It's of case a headwind many dollars toxins so-called patients of or a things on toxins drugs only from more these they headwind So end out-of-pocket drugs, away spend reallocate spending they towards

been forward what And over the thus the what's of experience So do next . handful going far? you years? expect

Carrie Strom

This is Carrie.

on impact positive said, aesthetics the not business seen so short That or have absolutely. far. we negative is answer our an So

in Our customers market. and are participating consumers this our

seeing And integrated We share where to point, it will are wallet. practices. of make your her of in into a there are aesthetic patient instances a some of terms these trade-off

it is learned they we've that medical what loss engage But because long-term the any in that a we said, long-term customers before. people more majority for getting their does our aesthetics really, the about time are we of positive in than And afterwards were thing and it, tailwind who consumers in our engaged weight more a interested as do see products, ask are aesthetics. people appearance. it as That's reinforce tailwind these

see really that aesthetics. that's impacting dynamic of terms it we in So how

Operator

next from William comes Tim question Our with Blair. Lugo

Tim Lugo

M&A the what acquisitions are announced in two the December, After in seen XXXX. on thoughts

expected deal this sizes? that Some provide given have talk something Street or about of capacity your point? you the can -- least at on your peers guidance at Is

Robert Michael

that I'll question. Tim, it's take Rob.

efforts our to assets identifying the really next So growth can that decade focused care. drive BD on across aesthetics neuroscience, oncology, be and in continue immunology, eye

to current need this deliver our on expectations decade. have growth we in portfolio what We in

efforts opportunities, early aimed smaller-sized external deals. typically stage really our which are at So are

the growth across think if look and we next into the you will Skyrizi As robust immunology, decade. about growth Rinvoq drive areas,

in say looking really of mechanisms standard care, immunology elevate I'd that of a there's monotherapy or combination. of our for So in lot whether focus terms of BD in is in new combination. interest action can

in efforts we're multispecifics, entry not ADC. in ADCs, ImmunoGen we're complements in really today. a start [ immuno-onc on [ by solid tumor the nicely ] agents. bispecifics, our to oncology, space head addition In that ] But an us gives focused with It

CAR-T with studying InSight [indiscernible] [ therapy We also collaboration recently ]. a announced

smaller-sized excited migraine be In So a a AMD we and in [ and diabetic extremely focus stage continue would disease. to retinopathy, we're earlier in neuroscience, about for Care, several adds focus look but ] neuropsych Eye again, pipeline, of deals. also lot program in oncology, we but In neurodegeneration. Regenxbio glaucoma our have on depth this, wet but innovation and the to retinal

So certainly interest have an there. you

always it's drive aesthetics, innovation that in practices. for about then consumers looking our And into can new providers'

but interested our wherewithal bolster our the BD we're certainly most still that active. have to further in. those group to is those So opportunities pipeline, pursue financial are the We very areas

Operator

next comes James Deutsche with Shin . question from Bank The

James Shin

do more I landscape competitive market into had [indiscernible]. contracting? going on be Is at. do kind question going of you How you feel how forward? to with feel ADCs And about a that works

Elizabeth Shea

not very the is time? line clear. your Unfortunately, maybe to one question Can you try repeat

James Shin

that. Hearing now? about Sorry better

Elizabeth Shea

It's bit go ahead. a but little still better, a little

James Shin

X competitive Okay. and dynamic I asking Category about ovarian on the was cancer?

Elizabeth Shea

to question through clear the for coming not call. clearly, questions please. address that. following coming Apologies just Operator, it's happy the next Unfortunately, Yes.

Operator

The next from Leerink comes Rinseger with David Partners. question

David Risinger

the congrats And Yes. on updates. long-term

September. to TREMX which in has of respect out Alzheimer's an the ], completion product primary with So the commentary, estimated left [ was a ALXXX

and GILTI that, on respect including some you be change If with provide please the impact. timing to that potential could as more could that's comment coming, then on tax that the you color well. the would helpful. And

Thomas J. Hudson

Tom question. is the This Hudson. I'll answer

strong The the Yes, on very first a in identified disease genetic question. [ ago, TREMX years studies do link. ] TREMX program [ target. Alzheimer's with several through we ] [ have partner Alector was ]

with Phase modulates AD. program a the have data we All enrolled later patients in won't and this have [ We are TREMX ] year. inflammatory neuro II, a response

later. So data again, key will clinical early to see we it's but development, an expect

Scott Reents

This Sure. is Scott.

GILTI tax. Regarding the

we XX.X% the up going than at this earnings is to more tax to tax, U.S. the at today foreign bit it's that. will rate So That a little the is mixed And on is at That to of rate. little call bit supplies. minimum look occur. date XX.X%, foreign U.S. our move entities. tax that implementation fiscal a The let's of it, can when subject is year-end But that. part because depends it XXXX is income legal on only

baked the So I see. that's would over say that's And impact approximately on X our average tax my X% years. rate. would that you into a X.X% to next

Elizabeth Shea

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

Operator

question with Luisa final Berenberg. And Okay. is Hector

Luisa Hector

restructure and wanted Part touch I D IRA. on the to

of XXXX. So talk And impacted have likely in this. that you to drugs by strong obviously, about a you number rebound are be your

to that already love how into check, So the CMS that thoughts now Imbruvica? rebound? just on and have received to on initial maybe And expectations to extent is I'd impact just you your your from what of offer hear the baked restructurable

Jeffrey Stewart

the our And the we Jeff. of both when IRA might It's planning Luisa. drugs you, D the a Thank brands To be Yes. be some very our you long-term of some visibility many contemplated take redesign under Part have color in of will based D course, and as guidance, our over we on give component. you catastrophic redesign, the projections and on impacts basically negotiated. pricing the Part will good that say, redesign, clearly place have our over dynamics

on patients based acquire policy offsets also that having We've price these. ability countered understood also we've on of with the some items, Now of which the and one the smooth. volume is based to cap

offset the does suffice it feeds But the that comment of Now Rob how I'll into that let into impact. much been pricing growth rates. very that. to contemplated volume that's sort say fully not over

Robert Michael

Part think about question. is starts is that impacts you we as and asked contemplated CAGR. in the high note the redesign benefit progression, annual in This have a very The single-digit You it But Clearly, important D IRA. 'XX. to of good Rob. that

points certainly So basis you consider net worth should few a of for that could of itself impact mean, modeling that growth. I something a sales. be on by annual is

burden the share. issue As fully the the contemplated. the doesn't we cost abandonment as with when we as out-of-pocket share which Medicare offset and improve have rates burden, in in abandonment was cost enough certainly the Jeff the we the abandonment mentioned, have higher across something you low-income benefit D, at studied to that expect Part D, but rates And standard part volume, we an Part this offset improvement subsidy not rates to we look address the of higher would That does. out-of-pocket compare of

the 'XX. about But accelerate as of growth growth, rate progression next the of you think starting year through will

deliver a long-range but CAGR, still you of park growth have beginning redesign, that it do points the say, high So I'd couple that that in same deliver the -- adds, growth us to of over about of plan. robust think a it's going accelerate headwind note 'XX, won't which growth, year. benefit to but you important allow to of every we'll will shouldn't amount single-digit It's

Richard Gonzalez

Rick, Imbruvica received is Yes, offer this recently. on price. the we And then Imbruvica on have the initial

As process know, CMS don't pricing. process some now be back certainly how and forth will for none with we have you because us CMS between proceed. that It's they'll set will exactly a final X. about is going the the through of has the is price manufacturer because here this, and by There there us indicated And price. experience that have any to CMS. final price it's to not that talk premature September the know

the prepared the final until that experience price publish know had that to having close don't point know price, any we'll not to I here. which they're at very

updates I either anticipate you that to until get date or any very date. that So wouldn't close

Elizabeth Shea

call. Thanks, Luisa. And that conference concludes today's

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

AbbVie (ABBV) 2 Feb 242023 Q4 Earnings call transcript