AbbVie (ABBV) 27 Apr 232023 Q1 Earnings call transcript

Good morning, and thank you for standing by. Welcome to the AbbVie First Quarter 2023 Earnings Conference Call. All participants will be able to listen-only until the question-and-answer portion of this call. [Operator Instructions]

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

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

for Joining Medical is Development Officer. Senior Q&A and us Thakkar President, the call portion of Vice Chief Roopal the Regulatory and Affairs, -

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

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

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

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

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

joining with our was consumer strong and extremely and sales our biosimilar exceeding momentum us of both Venclexta, adjusted allergen from as U.S., Thank you, with Humira, driven tracking performance aesthetics by much first positive price. This per and the stabilizing business, the results I'm Liz. and expected by products in in-line U.S. impact and revenues including, is to key from from everyone, expectations. several performance Skyrizi, Rinvoq, Good internationally, trends total Vraylar, earnings today. morning, our for with you growth double-digit quarter our thank pleased and start driven XXXX, share,

Since markets, we successfully a have and well-diversified highly multiple created immunology, attractive portfolio oncology, including inception, neuroscience, with in our hematological growth platforms aesthetics.

of assets indications, especially including Our these Vraylar and Each growth launch MDD. expected of revenue Rinvoq, contribute across milestones commercial and to recently the depth pipeline products two growth also our over been next execution, are has with and the Skyrizi important outstanding, new and breadth significant and over numerous outlook, of the pipeline the our decade. we The expanded supports anticipate years. R&D and long-term

our the into we are Most well. U.S. biosimilar importantly, is demonstrating the strong exceeding performance, erosion and event In growth one are summary, quarter platform expectations. managing for Humira, our

are executing diverse well to for see We our our opportunities portfolio of across aspects growth. numerous long-term and drive business, all

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

approximately with areas guidance to $XXX billion, start to strength our therapeutic were is each key or XXXX, million you, five quarter share of excellent exceeding Rick. in portfolio. $X.XX of revenues $XX.X meeting midpoint. broad We're our Thank per which $X.XX, expectations. net delivered off of adjusted a testament ahead the We Total our earnings first our above our an of expectations,

full-year performance sales combined quarter from billion $XX in both the this which our year. include rates more contribute results first Skyrizi are expectations. robust to quarter than Rinvoq, products First track on in with consistent continued Growth remain and for

opportunities in indications. European and and in we well Crohn's launch later And U.S. out Skyrizi to IBD Rinvoq's anticipated momentum this Skyrizi's year. are demonstrating approved disease, in as global regulatory Crohn's This in their its expect Rinvoq round submission approval as includes UC. across all

guidance, $XXX migraine with this approval accelerating revenues growth. delivering million our also neuroscience. We in well quarter and above strong following exceptionally are nearly performing sales net Vraylar Total were MDD

outlook for we As be result, our full-year will increasing a neuroscience.

Aesthetics expected. is than also performing better

in personal stability trends indicators and procedures market recovery in consumer that positive with we Google the confidence, economic closely some aesthetics and where including monitoring consumption, correlate We U.S. are several searches. are China, seeing

confidence Although for markets, under-penetrated as to it's our still the international early with full-year increase in market the year, continues to aesthetics growth these across well. especially This positive outlook be potential. us give trends, an significant our

on outlook expect this full-year quarter between robust adjusted $XX.XX by and share earnings are per per earnings Based share raising and adjusted our and our the performance $XX.XX. we now guidance business, strong continued for our $X.XX,

diverse a business. extremely confidence the to our In strong the to outlook closing, of portfolio. the We're I'm the further reinforces start our performance with pleased year, in of which off long-term

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

with I'm continued Thank with Rinvoq. approximately robust and across delivered pleased Skyrizi from double-digit total Immunology portfolio. therapeutic you, our of Rob. $X.X growth billion, execution very the commercial strong revenues

on psoriasis, Skyrizi XX% other clear market leader patients physicians the This or or high has to a XXX; across of a Skyrizi have well relative prescription sales retail attributes very billion, high on daily rapid PASI includes were categories development, more reflecting a global maintenance XX therapy, action differentiated the and U.S. most demonstrated the which onset complete as operational now convenient growth dose, In durability clearance nearly to administered frequently quarter. over can XX%. multifold the first as we therapies psoriasis increase with biologic after important. despite quarterly of $X.X with dosing market, set bar injectables. that time, in higher oral more with destocking inventory Skyrizi is and share the skin nearly total alternative than for of the response, the deem market in in rates at PASI

XX With patients, in-play now Skyrizi's achieving best-in-class new supporting is disease Globally, Skyrizi And, as growth total dermatology has in rheumatologists in the nearly in for a segment. profile been also there market markets. and we continued of leadership in strong Rinvoq roughly in-play psoriasis. room increasing U.S. XX% XX% switching with arthritis of segment XX momentum of substantial the share This biologic Skyrizi share in-play U.S. than PsA well. share in is Skyrizi psoriatic is psoriatic where U.S. nearly an with co-positioned utilization rheum more those key in seeing are countries. achieved among in leadership

disease, In seeing well Skyrizi at dosing as is Stelara. share U.S. are Japan forthcoming. strong launch XX%, gastroenterologist positive, overall see patient in and as a it the and only the Feedback of approximately in-play from especially total we to clinical novel very to European very adoption second fast uptick with in We Crohn's profile. Skyrizi's Canada relates with

differentiated for reported And, colitis, Skyrizi we that Tom look also disease. strong across inflammatory bowel to recently is it induction Based of next trial, new a to discuss We clear this year. forward potential and that momentarily. in which Skyrizi results will on increasingly the ulcerative bringing physicians data indication asset represents patients

sales pleased million, performance total reflecting rheumatology global despite than of in am dermatitis with across of similar with four Turning also expectations. in now Rinvoq, to I Atopic XX% line operational retail with inventory is prescriptions destocking the our more the quarter, which very $XXX growth of indications. each in delivered tracking increasing the approved

continue share to share market globally in increasing U.S. see XX% We momentum to the including patient approximately in-play

strong bar ulcerative in growth colitis about set and disease, rates and We demonstrating gastroenterology. of high a are has very improvement. efficacy both remission endoscopic for Rinvoq potential in the Crohn's excited

impressive in very adoption This than launch UC setting, seeing adoption among achieving encouraging the reflecting been now second-line since year an momentum less Rinvoq in plus gastroenterologist ramp strong robust. in-play where U.S. is pending Rinvoq's accelerated has UC in a is outlook in one our We share are XX% very ago. for Crohn's.

for only is this the quickly And, a this the later the launching back JAK approved this approval of Rinvoq CD in geography where in E.U., currently on to commercialization over broad half are both formulary anticipated track IBD the quarter year. conditions. remain with and in indication access to treat We U.S. ramp we

bowel in due Rinvoq patients. need, competition. Though two against were inflammatory agents. disease of to we be And oral of biosimilar each an $X.X for positioned with step levels and or differentiated Humira high two an see efficacy IBD other forward area is operational delivered therapies basis important we with well having novel XX.X% that Global to are these biological an down continues unmet compete assets, to billion, sales on approximately complementary very Skyrizi

driven most impact line the expectations Erosion in the U.S. our with with remains in price. by of

increasing total XX.X% the due Hematologic global Venclexta billion partially cumulative a revenues on competition double with to an were on strong growth of million, momentum offset market. up with suppressed digit impact AML Venclexta. million, now where down XX.X% CLL. $X.X and Imbruvica were with and by basis $XXX Imbruvica across Oncology $XXX were both continued pressure robust Turning to revenues global operational sales

$X.X basis, expectations. XX.X% approximately on were up is of on our revenues $XXX Vraylar billion, exceptionally operational Sales Neuroscience, performing basis. operational an above XX% million up were well. an In

a for as which launch, the DTC raising total full-year ramping We psychiatrists pleased promotion, a will well opportunity see dedicated indications, and guidance as are be care, that label we uplift all accelerated prescriptions Vraylar across we on in and calls with for With for significant growth our sales new both in AMDD and approved accordingly. primary an the force resulted very is Vraylar.

remain with support to Within positioned migraine complete migraine, uniquely we portfolio freedom. a

of Our leading XX% continue oral CGRP and for both as combined more sales to strong million we quarter, reflecting see Ubrelvy than this demand in QULIPTA. prescription therapies growth contributed $XXX

and treatment profile. the is episodic as a oral both further QULIPTA, with CGRP positioned our expanded available competitive for which recently the only preventative We now uniquely label chronic strengthening as migraine, for patients

BOTOX across extremely Though total in I'm $XXX portfolio. chronic other were as overall, migraine with indications. Therapeutic performance the million, the pleased therapeutic sales as strong Lastly, reflecting approved well performance

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

Jeff. you, Thank

aesthetic of which procedures U.S. planning in slightly as dynamics. in in Aesthetic were a economy China sales global well due billion, In stronger million, a X.X%, as reopening First down sales $X.X guidance, softness we inflationary to approximately aesthetic ahead see came $XXX to faster our primarily continue versus quarter assumptions. as to related the were U.S. in the our

the of very for performance robust in a comparison first U.S. year. of this our reminder, quarter we quarter performance XXXX, in for As saw created which growth a difficult first the

cosmetic slightly a million were $XXX sales down U.S. basis. on Botox year-over-year

compared see large point of inflationary aesthetic We repeat BOTOX lesser a of due portfolio from on cosmetic its lower consumers. continue areas to and to price loyal other our impact base to relatively dynamics installed

of by clear down a to filler dermal stable. cosmetic the market on down share on cosmetic the basis. continues toxin continues leader XX% Sales in U.S. were first U.S. and single-digits remains consumer quarter U.S. collection was impacted low for year-over-year toxin portfolio pressure as the Juvederm be market The inflationary its to be market our our BOTOX spending.

filler a basis market down due inflationary quarter year-over-year to XX% nearly in was the environment. U.S. persistent on the The

launched share filler business dermal on U.S. offset VOLUX the by the filler, The quarter. market jawline the the our improvement collection Juvederm definition. pressure approved stable recently strong is is was for in quarter of and for which Our remains initial leader uptake partially our clear economic in

We the growth VOLUX expect support skin with quality for Vive U.S. the filler combined of in our our long-term injectable upcoming portfolio to Skin launch

category in While the year-end with the the key the soft XXXX remained have U.S. be continues that aesthetics consistent to challenged to we levels. track economy, external relatively economic metrics due

international our international $XXX aesthetics which to in Our demonstrate recovering with performance on basis. which China, rapidly expected. X.X% and is strong portfolio aesthetics is were growth up portfolio from faster robust than million growing, an Japan, operational continues Sales

recovery operationally an is BOTOX impacted in operational in February negatively China, second January our were sales and which but XX.X% was approximately X.X% sharp COVID down and cosmetic International market on March. sales international approximately largest by experienced grew Juvederm a basis.

to activity injector to responsive level is which expect until investment to not the our throughout assumed Recall recovery remainder And to year. continue we in our We would the make Japan, a of guidance sustained be of underdeveloped force consumer year. full education. this an reach of be field original the improving very in this and we promotion, market, training, second-half significant

through team us the executing our portfolio. our increase outlook our strong positive internationally the business. are encouraged and remain U.S. dynamic for to momentum environment and this we improving how with stabilization trends give confidence across These by aesthetics Overall, pleased trends has full-year continued been and

proven to ability than more continue grow $X decade. to term, products sales innovative remain of as aesthetics Aesthetics ability robust the demand over our growth extremely a develop underpenetrated new to to continues end of business this confident and the support by well achieve base and market, long-term. of total extremely the loyal the as consumer and Longer our strong we drive to billion market, bring be customers, to in expect will an attractive

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

first in JAK Thank you, Crohn's European we making the continued disease, to to indication. progress Rinvoq our start Carrie. very it inhibitor We've good year. this In pipeline with for recently this approval make approved received immunology, for

approval Crohn's continue next FDA We and month. anticipate to for Rinvoq disease

challenging Skyrizi is disease our announced with ulcerative Phase top line also and manage. which it unpredictable study frequent for from results colitis, in symptoms X induction players to positive We recently a making

and endoscopic improvement. study, on strong the In demonstrating all very disease impact remission, clinical our Skyrizi met measured response, the and as endpoints, by primary secondary clinical a

We're improvement more efficacy this the patients placebo. particularly This compared pleased stringent potential with of endoscopic impressive measures the has on Skyrizi on approximately level Skyrizi's XX% effective trial, position as Skyrizi performance with achieving treated highly XX% of patients of to to therapy. a in

treatment be it patients will from a presented at once study option data believe medical we this and new for approved. And physicians a will be welcome meeting. forthcoming induction Detailed

planned for the Phase maintenance second-half study see second with in the submissions our of quarter, the X expect year. regulatory the We from to data

good solid and make large stages remain several track important year, this We lymphoma. milestones B clinical progress all pipelines. cell for on refractory to Epcoritamab approval in continue hematology we oncology, tumor our across including regulatory regulatory and relapsed of for In

Phase VENCLEXTA plus relapsed from approval. to X Teliso-V X myeloma line non-small data second accelerated lung with non-squamous patients potential has trial regulatory And advanced CANOVA mutation cell data and TRANSFORM-X myelofibrosis. cancer, a which for Navitoclax's trial frontline submission Phase refractory in TXX,XX multiple in for a support the in

encouraging in payload uses we've for our next than potent CMAT on data, We're very to ADC, Based the Teliso-V topo also ADC. to which seen for data a our ABBV-XXX beginning date to plan see cancer. generation earlier is our CMAT liver Phase pancreatic other colorectal in expressed, to program the Basket where tumor and study, as evaluate we in lines cancer, X expand as well tumors solid more including

as CGRP episodic for migraine. for patients both preventive of chronic Moving where QULIPTA to chronic recently approved a our we've oral Neuroscience antagonist FDA only for pipeline, with treatment making it received migraine approval and prevention the

chronic study, in and X QULIPTA common as patients provided life days disease. debilitating Phase significant as migraine migraine, reduction of improvements in significant function our with quality In in a well and a

highly with well In treatment migraine. for prevention migraine quarter a both to an the QULIPTA be Europe, as approval oral treatment effective in the chronic patients As preventive for episodic we chronic decision a third option, will Atogepant believe in positioned we continue anticipate market. and

Turning not now drug they device use. or application ABBV-XXX, announced but additional FDA to information response asked have for regulatory regarding as received the well we to additional efficacy the to we pump letter rather studies a The for safety complete system, has in related requested as our that our updates U.S. for delivery instruction

to to are expect later working generate CRL respond anticipated the this 'XX. We a and the of with the first-half to information, year, in action necessary we nifty

In in continue for Japan, the this expect international quarter we markets, approval fourth and received Europe to recently have year. in XXX approval in of we

ABBV-XXX. X neuroscience stage DX pipeline, recently studies In began our selective of Phase receptor early dopamine agonist we our

receptor with DX to Our of and provide experience with DX enhanced efficacy. more achieving compound engages Vraylar, that dopamine selectively selectivity, benefit potential believe as highlighted, the has clinical we that a is potential our

potential with expand psychiatric anxiety to new Our will focus disorder, general initially to the disorders. on other program

The are in that explored PTPNX We assets now programs Calico have ageing-related also neuro diseases, activator Phase modulator our diseases. eIFXB an under in including in four signaling oncology, collaboration clinical with progressing well. for two X trials, in degenerative be will inhibitors and IGFX pathway our

eIFXB Our activator the most is advanced XXXX. program

accelerate ALS Phase Mass for HEALEY break-through study Center to of designed This recently for first by treatments simultaneously the enrolled X-X General. the to development Healey conducted therapies was with multiple the platform at potential the is in The patient trial, evaluate trial a ALS. goal ALS

and recently our this on analyzed stage our discontinuing ongoing evaluating like analysis in In programs study fibrosis program. would pipeline. not from criteria fibrosis, a from are data therapy. proof-of-concept brief provide our results an cystic advancing, earlier cystic meet triple our Now, therapeutic The update two I combination we to did interim we for

results disease. from not risk of changes also with data while we PMR this systemic We asset. not differentiate of with studies observed be Crohn's Similar XXX, in efficacy exploratory study, does across benefit higher interim recently XXX observe development we will to Based the for pursuing also reviewed the data other in ABBV-XXX sufficiently from Crohn's PMR steroid in are that available our consistent biomarkers from and the we some the RA RA, profile studies, treatments. totality at the doses. on exposure The disease for

the to moving for muscles, study prominence. In data Now, our Botox in X from prominence masseter and the all data XXXX. primary and of jaw neck in prominent studies studies X was end the significant the met the expected with of Botox followed year, trials aesthetic we demonstrating prominence saw recently unwanted the platysma first muscle our pipeline, on prominence second-half from neck near platysma two a U.S. secondary reduction Phase appearance in endpoints, Phase submission This remaining by in lines. our of and in for the platysma regulatory three of the

Botox performed muscle, in well secondary endpoints and meeting trial. the very all for masseter in the prominent primary study our also

and Asian is and Our the on is build in the on will results Botox trial, options. our populations, significant unmet submit Based high Once novel to in common program initially lower approved, other is indication, demand portfolio as masseter in this regulatory Asian the expect need application for for focused segment. we from China minimally-invasive we prominence in second-half in there markets, year. anticipate of help our phase this China to which treatment further

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

With that, over Scott. the will call to turn I

first top is line share our earnings bottom above delivered with expense. results I per guidance adjusted Thank midpoint. These $X.XX, results guidance. results, which included $X.XX impact strong our performance. financial $X.XX IPR&D our most We Tom. unfavorable will and from acquired reported of quarter discuss Starting and you, recent we

expense Total a from operational gross unfavorable ratio guidance acquired of expense tax exchange. of $XX.X Net excluding The investments adjusted of XX.X% XX.X% XX.X% sales, impact million down net XX.X%. sales. sales, was an adjusted revenues sales, were X.X% adjusted This ahead IPR&D of $XXX operating R&D was million. adjusted was and sales. and foreign adjusted includes of on of billion, interest our margin of margin $XXX expense basis XX% X.X% of rate of of SG&A X.X% The

first earnings between estimate adjusted acquired an include to financial our to impact expense revenues now we net guidance an per and growth. to incurred beyond At million. share that the outlook, does for our current have share earning expect a $XX.XX. foreign expect Turning guidance not unfavorable quarter. may full-year on raising full-year sales We of billion, modest are per increase IPR&D approximately of This be exchange $XX.X rates, $XXX we $XX.XX

following includes guidance the expect reflecting U.S. MDD reflecting expect stable revenue of $X.X China trends global increase strong economic prescription the in approximately following updated We $XXX recovery sales now And we aesthetics, This better-than-expected for in and of the now billion, approximately approval. Vraylar growth $X.X assumptions. million, the an of billion, the

the approximately of exchange have net impact unfavorable $XX.X U.S. Humira a on to revenues erosion growth. billion, At which sales includes we Turning second current rates, to foreign we anticipate quarter, XX%. expect of X.X%

forecasting sales. of are adjusted XX.X% operating ratio an We margin of

non-GAAP a tax of We XX.X%. are modeling rate

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

start of ahead to an portfolio strong expectations. excellent across with performance In our are results year, to and financial off we the closing, the

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

Thanks, Scott.

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

you. Thank

comes question Terence Stanley. with Morgan from Our Flynn first

open. is line Your

the question, two Great, maybe me. taking thanks for so for much

both spoke the call, due can you I amount of Skyrizi interest rising Biogen, and to working capital on think for some on Rinvoq Just tighter quarter? immunology, wholesalers destocking rates. in the at quantify requirements to their

data you be and to not might can a elaborate we that's program, see something there? all if sure So, at want to just here, your pricing And some you. you're just wondering ALS Thank about dynamic? seeing then, when similar

Hi, is this Terence, Rob.

we destocking, surprise. So, on quarter, first do the it inventory see in complete this so wasn't the a typically retain

impact In factored fact, did single it the beat digits, guidance was for was The Rinvoq. both We immunology high for our guidance. Skyrizi into and quarter. our in

$XX In terms value, talking for for $XX Rinvoq. of around Skyrizi about you're million million absolute and

Jeff. it's And

as distributed some recall, Just in there's specialty to it's clarify comment, retail, there's on I&I as ones XX basically so And the and highlighted, the think there. products, Rob in you'll it's pharmacy your pharmacies specialty wholesale channel. the big about you I know, that

was products and see was get So, a these as which, retail in dynamic it it bigger inventory not contemplate dynamic, a wholesaler our we projections. again, do

And Terence, Rob. then this is

destock, rebate offsets, that's I've volume last down the typical already was see by type answer Skyrizi. the saw you driven last year. U.S. at And just inventory of for sure more Just up broadly We XX% performance so as you Rinvoq up then Rinvoq when really look And being in quantified. price if Jeff strong is two approved investors many the north highlighted. which I'm digits, U.S. have, we the sales high across and XX% question very saw up which growth that to quarter, the year, single one We all increases, in the overall partial of retail XX% demand Skyrizi the increase. was indications, have did and

kind you new number So, with had that for of indications approved, Skyrizi. couple volume that two five for and see indications of the we had we when growth, and Rinvoq

was out of but appreciated our first quarter that into It that there. know So, the street contemplating. something fully were it put factored we don't that was were terms I the guidance, estimates in

about there's for And that the year (ph) to is Tom had is the question, we years, needed. patients, [ALS] recruit say follow-up a of about I'd this and two

good would late-'XX, which on I on the pace. understand all a starting off enrollment, I early-'XX, depends say So, is

next Operator, question Terence. Thanks, please.

you. Thank

comes from with Cowen. Steve Scala Our next question

open. is line Your

in AbbVie much such Skyrizi point. have called performances Thank or year was as led more vocal has that been a Cosentyx. this of peers have out to you. are some different factor factors and A your the range couple copay How that the the and products resets EPS on in and less modest Dupixent questions, Rinvoq in early end guidance then very low to high What continues have end Thank for out the And be that to that? performance some you secondly, in hit of way? solid the would wide. despite of you. QX, play to

managing for Steve, seeing accumulator it's Look, And Jeff. hi, do copay apply peers some are or the sometimes, thanks maximizer the I'll in which reset been the and lingering not highlighted, We programs of I the of question. Yes, We've don't take indications some one. can had some of tightly. the surge what effects are quarter, the that. programs how the fast so-called The and pressure. mean modest even first based dynamic. as benefit is designs of or terms seeing very creep we're see And volume the through. moving, Rob the this exactly which dynamic that of we on destocking the event that any price significant number is is that in talked

very is AbbVie. stable for copay So,

Rob, $X.XX is range U.S. Humira this And your the EPS we key of typically is, $X.XX that the driver gave this a Steve, year dynamics. And We've obviously, range, given range. on question. a

see that would tighten that the As we in out, play we second-half, range. typically particularly

market dynamics of it did keep think, as the call. able And the think quarter range you represents have not it's wider clarity see for widen U.S. the on more I so you wide second as but the you year, color given in about $X.XX growth, U.S. Humira Humira. in give middle we'll we mind, of coming the to Now, as more biosimilars those we'll that be X% we with in might X-X

you. Thank

Thanks, Steve. question Operator, next please.

Chris from JPMorgan. comes with Schott question next Our

Your line is open.

thanks so much. Great,

assumption more. about little this then price Just a I'm coming should as level about you price that this stable pricing trend inventory we year? Is of the maybe around beyond issue one-time through trying a those progress rest all more back price reasonable to of going to hands then Skyrizi forward? changes. mentioned think single-digit we and as a think high just given the I new indications, just think more Rinvoq, a erosion And get year erosion my bit to the like that longer-term, and

the was visibility question little you seems of tone a seeing strong that bit And confidence on the seeing, market but just you're trends? more I you trends has you my second a elaborate the on business, bumpy, Could we're favorable saw these but the in your very been you. XQ. like sustainability bit obviously of of right a much know international sustainability trends aesthetics little have now? those encouraged it in just is you're Thank by how terms the

Chris, Rob. is this

digits. to your the on So, question down be about and price Skyrizi XXXX yes, for price, Rinvoq for high year the would on way think single

single Now, the big indications forward we driver of number was wouldn't expect launched. high new be digits to rate going given we the a that

So, moderate over I would time. expect that to

Hi, this is Carrie.

the U.S. expenditure some that planning include recovery consumption U.S. China. the your to XXXX the was economy, our see personal terms the aesthetics we track, in other and which are In and economy, market, key QX assumptions we with around questions When real you of about think metrics at there around we two Rob favorability around look Google. the mentioned the assumptions for the planning. and was One

saw we softening. February, March although and favorability are January potential some there in signs of in So, there,

for So, business have for continue to we year. the our of outlook rest a U.S. cautious the

downturn, think The we digits market year. about until happened for would low-to-mid the market which would way growth to XXXX of for the And toxins, May. growth the the lap be around rest down that, after flat the then we be, would expect market full-year for single

the think we how U.S. that's So, about

Well, and improvement, recall China. not is started of was what year. the biggest second market do see Our would we in we the in was really will recovery of a although rest that was China second-half we January to significantly actuality, the aesthetics we in the that through February, other saw sustain impacted, fully market March, in there expect steep assumed had or the And year. recovery until

other U.K., around markets now. I Canada we the demand, rest right seems and consumer the And some guess stable Europe in seeing in world, of are inflation but impacting high

next you, question please. Thank Operator, Chris.

comes with from Our next Bansal Wells Mohit question Fargo.

Your open. line is

I question. one my question. clarification taking thanks have Great, and for one

clarification. So, Skyrizi you term, -- the of at going growing. position so products, you should you hoping clarification out quarter, pan forward, quarter-over-quarter for we and pipeline, price versus least, rest not single-digit, we single-digit a regarding the that assume for, high regarding is, XXX but XXX your for forward year-over-year leadership is, to. that pipeline as are And with some of assume, just were and Rinvoq, But volumes, them going declines still more should I&I, then like pricing and they stable question I&I the did the said have decline high and

should So, beyond we you. can even Thank two think increased about pipeline scrutiny nowadays? given And products? strategy how FTC this the M&A do you these

So, two, this maybe just cover number number I'll one. and on is Rick. touch

If of we pipeline, deliver assets you mechanisms have obviously clearly opportunity different next to there still a try that areas being part as early Rinvoq, look Skyrizi the those market of most to the at and as across the about of drive restated Having segments able for growth look we does, said strong we're operate We everyone they restate that as significant immunology where assets and of through obviously think that, our in view in. believe the industry standard of will different kind to care. assets performance. explore, to find we is those many kinds continuing mechanisms we that in to And this decade.

label it it -- we highest way highest of look we It's would steroids some that at the those products, be the effects worked you did did some the from and competitive certainly look of dose, it a for profile. thought in But of But on a would at would biomarkers. mechanism. believe hypothesis the the dose efficacy. didn't based the on think kinds interesting, what it we platform the XXX only that did do way when at And regulators we it of standpoint around at exactly see a

So, look for we continue to opportunities.

assets to the be explore We a bring be should to have find next of or making get the other will internally we we're lots be those, we're mechanisms progress that. number the of that decade to to hopefully, decade this that we look, at able early additional assets the for be there. desire feel and here products areas. introduced, continuing both of externally, do into different but good into follow-on immunology company And some next-generation And to AbbVie. about the near runway as end to continuing to that do that can able to We're I

believe To the from able would competitive bring into being you look your a criteria don't one standpoint. crowded encumbered of at we question very to an that market, And most that's space important from be this FTC assets of because immunology a that is standpoint. we

an from across we have as believe FTC well. we those segments to So, of standpoint freedom operate most

the for it that breadth And does clear. when in access, with level get I you would those price price, this indications which this the it's Rob to say require industry, I at you It for make and that got on seen have go speed and Skyrizi what tag-team some to negotiate of of concession. one would to is we're of lower and able will indications Rinvoq the those when you add and end on maybe access. typically sure out access you common be that contracts we

we expect you year certainly year are that expect price, to last those years most saw the you the would be would to moderate. and areas of you of the majority so, indications, because amount And where added the the this that significant

about then And at volume as by forward. modest So then is, driven typically it's volume go way only the It's not more forward, it that kinds of much price price. you going really requires to point. zero think

an But that not expectation. I you single-digits Anything of would going have forward. expectation have Rob. You shouldn't add, high

Mohit on to think quarters this the Just year. to gating. question, of price it's single-digit that safe you'll in Yes, see I assume the each high the answer

Helpful, thank you.

please. Operator, question Mohit. you, next Thank

Wolfe comes Tim next with Anderson question Research. from Our

is line Your open.

is you thank This Nettleton our taking for Tim Anderson. Hi, questions. Alice on for

you're you incumbent think So, to a of And remove to legislative those overlapping you. any is start Thank off the there that rebating have seeing question think that to biosimilars chance on renewed patients the put secondly, launched? wall? or of risk PBMs, proposed material were two might some do are the because scrutiny. place, rebate of under Humira collateral of more brands changes year? changes the picking would currently at called structure since any And If see products actually law? generally, some on becoming from you'll do Rinvoq Skyrizi Given in which the impact in there big indications, it then second-half biosimilars you the so

give it's hi, some I'll Jeff. that. on Yes, comment

think brands another on four the many I can way got mean, on the as trials way the are. our clearly Skyrizi we look we Rinvoq. at we with product place one think head-to-head about and where I that that is the have we and first differentiate how we've they is well distinctive

standpoint, of we've really sort And basis everybody. of all be which was these approach would rebate I fairly if would do a the there'd a about products thought the I of different PDMs, mean, reasonable restructuring very load which perspective from So, of somehow is I don't there have say and INI rebate very, we imminent. disappeared. think, the a well. development disappears for a It competition and it

concerned these which products So, distinctive. relative are structural we're not about sort a very to change fundamental of two

It's perspective part look is in a same And the in really Skyrizi biosimilars we one of to second lines sort at which step Humira States let's that way If it's distinctive. of very, third of TNF, Rinvoq. and thinking and you very the behind space there your at very of expansion your it's take second that is are about on the see is don't impacts is and which answer, such be of performance Rinvoq see it. performing United because going level significant simple we Skyrizi and of that already question,

we effect a on the core second-half our emergent anticipate in to no, of knock sort brands. do the not of biosimilars two So,

question Thanks, Alice. please. next Operator,

you. Thank

from comes question with Carter Barclays. next Our Gould

is line Your open.

for there morning. different just of on or taking the of kind conversations Maybe those sort question. the the Good question with you in a have BE potential engage of Great. spin as targets. marketplace volatility the Thanks sort given

the on of to spread boards a deals, any consider and sort management seen shift updates helpful. and of ask willingness you've if Just that in bid that front be would

I I'd companies. last hasn't This money in months more Rick. is biotech perspective. XX changed the to think difficult the it's environment my say still certainly for raise from materially

of a bit data And XX But if they're a you lot process to find the and I to that in find able that's they've engage question XX think willing them needs. a say a I'd to a players The for right biotech like probability. more and last is have level one is say meets reasonable to attractive. it interest engage have it at or to in months. to transaction I'd what makes a engagement generated in to asset that your of there's be find similar area. makes is probably with point the opportunity them are it that the the assets us being negotiate So, you kind attractive where But been able has to

still at for I'd say, prices high so high go valuations relatively and to good assets are a pretty tend level.

as pursue of look it's to opportunities. in again, to past, provide return. going can asset And to going opportunities, we those and a I valuation got continue value certainly it's that think be to I we're demonstrate them. So, to said a But kind that the for an that of significant justify we as kinds find

question, Carter. next Operator Thanks, please.

from comes Vamil Securities. next Our Guggenheim with Divan question

Your line is open.

one, bit the so taking up I be is from may focused questions. you well, for couple year points a Navitoclax this data on thanks and couple coming have think less just a Maybe a Teliso-V. me as that of Great, little

Humira guess, sort updated your from hoping your in looking other your now just the gen for the Rick we it process. you should too. year, that of there, been of just on some be on comments what timing that around something planning. then sort you're on succession assets, is frame you're this later? thoughts announcement to looking plans ABBV-XXX. any wondering stick we can before that if you see you. expect And given more we expectations especially or the or maybe XXXX Teliso-V next getting questions sort some I those through we're Thank mentioned of have are, I'm the bench. for, more this question, be so this would Is So, around middle And what of We've what to should for

and take I'll the Roopal. it's on Navitoclax Teliso-V. ones Hi,

So, decrease looking frequency. also we're also, fatigue. allelic like observed for Navitoclax, the fullness, to fibrosis it's bone variant And myelofibrosis. spleen uniquely, perhaps is with improvement and space in fever, what in size be the with JAK-X combination that an there and pain, improving a a than in monotherapy abdominal and And better symptoms marrow we've and JAK-X

by we readout we for. So, And get that's should so. what mid-year or would looking be

designation. that's For where lung have with Therapy and Teliso-V the wild cancer, in high type we CMAT, Breakthrough indication EGFR

if end seen there's accelerated data ORR the expected of second, submit data a be is potential care cuts an could for we've readout. that say that's a line is in strong, year, than what in in above And where approval. would looks Around in standard I What third setting. higher of see which the next would we this earlier a year quite that would XX%, bit we

little XXX. mentioned you a I'll the I'll question, a and bit maybe Teliso-V, second make take think of I comment because on

there's that in an presented have to that you'll And think question to I to this we're have is XXX seeing opportunity think see impressive right early at us, data it. I ASCO no in data where going we're the about CRC. some

said, CMAT get Now, Teliso-V, CMAT of set having broader good believe population, But do more to the Roopal topo That get give to deeper seems said it to very to warhead. we very as be and responses in move good CMAT. responses does has time, over you to play responses. out that, It for platform but data highs. a to a appears durable need

more data I'd need you'll that data a the in to need see this is of develop a data we But early and at so mature chance to and ASCO. pretty encouraging area. say have And that the we to snippet

transition fourth to can't or discussions here have I'd changes, transition what operating last in the obviously the right similar more get succession. against the experienced Humira The so succession. I'm through I first and say smooth we many, I'm pleased committed biosimilars is we year recall a very U.S. to knows that board process in have operating need had either are we quarter leadership successful board. place, as pleased quarter, now. way The about even board with how many it's we're and completely far, I'd in for I've with the going platform We the ensure pretty to I'm a say far criteria to is As be said the with around transition. growth here

we if we're despite it fact, that look in business the and mid-single-digits the returning to Once growth you starts And deliver to to and to increase returns this at its into single platform move we 'XX rates digit on that the as high And from headwinds robust rate of headwinds seeing Imbruvica that going on platform. the pressure forward. aesthetics to economy subside, on growth growth deliver and the much we significantly 'XX growth see aesthetics. going should that year, for do the Imbruvica, is see normal is and the it growth from obviously, point in

So, that's the are that against. working expectation we

it to. the that operating a is make want we is we business it the believe sure that sure make predictable. to prove want we to biosimilar that want point we So, to way We erosion the

the they is I capacity that ready that whatever would. succeed stay me would to that willing also part they length desire a have transition. make that second will in am criteria the to is obviously told candidate successful I the of for the then, Board any that do And to ensuring

the that now to a is I transition would of Chairman think time role for period the to finish right CEO. I Executive expectation the the assume new

not occur expecting be going should transition is You 'XX. that in to that

Thanks, Vamil. Operator, next please. question

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

open. Your is line

Hi, you much my question. Thank taking guys. so for

you assets kind penetration and of follow-up indication? of puts do a of some kind characterize the thinking that Kind of in about takes on just some of this to you other assume about are on you is you. are And Thank psoriasis Just done dermatology investing in that safe CF there, totally programs, Skyrizi area? dynamics are you development seeing Or, it have the kind emerge? market? earlier the further can could how in you in the

your take comment I'll on Jeff. it's Hi, psoriasis. Yes.

I as share very, the impressive. very is mentioned, that I think

some is are further any headroom think is significant by what run, can market total really And, XX% you lot. putting run one -- that about have further asking we I which and share it is a it. if bit much can degree category So, how about to a other to against think think it way now, it you drug quite in

So, one we of about share roughly our share are capturing the XX%, is of every two out XX. so, dynamic And market on patients.

going over to So, disruption total your is the some move there unless right?, that we in significant market, theoretically is time, disruption which don't market see share in-play towards share.

fundamental many can years. it's achieve, look Now, that that takes many still the at we we momentum as very But, very significant.

long momentum dynamic. exciting international of be basically of Add growing the the are that And, way PsA gap right very so very now the and again to remember what that going say if in and in starting the UC. would that, continued is rest didn't both market. see had, that you the on remiss And last that really to still to are by is we markets in we market we derms we're Crohn's world see it's I remaining treated because in a PsA a run. And, ramp sort to very significant -- has very I have in how data and fast U.S. impact

to very feel Skyrizi. continue ability we lot secured our create in a to So, value with of

Tom. this right, is All

do just CX are producing we And attempt Regarding tested, not one. backup. our your corrector question on we first our have was program, did not not another This we that work. triplet that

So, have the discontinue CF program. options don't we other to than

Great, thank you.

please. next Operator, Evan. Thanks, question

you. Thank

comes Suisse. (ph) from with question [Chong Credit next Our Wang]

is open. line Your

is Chong. for on Thanks [Carson] question. this for (ph) Hi,

if XXX pushed confident Imbruvica, the And and can did delay there hem-onc for do mean understand guide for the that, down year, the X.X% in level I well? like Imbruvica the out for given on through you in there? Just your if step I expect with you January. guide pressure the be could Thanks. potential later Imbruvica year? as given is further of U.S. until particularly late are competitive how pressure pricing What significant have a we

a seeing Jeff. saw market. in is as very market. market one pressure think which highlighted suppressed significant growth pricing it's over we not reminder, in we which effects, a call. This the is two think for Hi, I in the cumulative And time good just are as positive actually time, a And that's be Yes. three really we've over first the effect to the the normalizing. Actually years, we looks

So, that's encouraging.

by then under under driver the new is the pressure -- Calico, share (ph) is has [Bukimso] from recent big pressure. The launch. been own certainly Venclexta, our which patient and the share Initially

we put probably would any got going we in when all of step-down we're into that to think that so, and significant see the put jeopardy. unlikely calculus, that right, And that it it's we

I'll Rob. question. your is this second Carson, answer

how the consider would push U.S. plays variables the It's So, overall to that about I year out, be trough Humira. wouldn't second-half Imbruvica-XXX with out. particularly really the more

U.S. point that what if to Humira A really delay in I we would wouldn't 'XX, Imbruvica-XXX could focus that So, below push then trough. fall better would earnings to does of consider we in expect on. the XXXX to outperform we see mind the and in occurs 'XX. That's keep variables the We trough is, regardless when be XIPRD. trough don't

Carson. Thanks,

of are peers We number of today. cognizant reporting a

the And have in question. for last of one so, we interest time time

Meacham Geoff with from Bank comes question of last America. Our

Your open. line is

withdrawal? to you Do MCL/MDL expect read-through to Hi. changes Susan any expect following follicular This outlook that on withdrawal? do follow-up then, is lymphoma And Imbruvica. We for you Geoff Meacham. on any a from guys had

Yes. for you the Hi, Thank it's Jeff. question.

are very these First, small indications.

for Imbruvica, percent. about a X% is our less some of you percent MCL really relative is sense than the give about of to So, value, MDL the size

those didn't due anticipate So, confirmatory the impact. the get fact studies clear, we a to have to material withdrawals that we don't will that we

continue product. think that I physicians. switched, physicians put the they There is on these patients requirement market That's off the taken example, do note won't it's to They for will or the another many intelligence. for be on and need that all medication. that important to no also

really so, Roopal And given follicular. net-net, size address I And this point those the issue, think a material is not your of on indications. will

can about FL for Yes, minute. take I a here

in MCL the would what know, in reflected is, be not which you we readout soon, as we about actions FL say expected data in with or have DL Epco programs, would and FL we outcomes in we It's I X and would will well. see response BCL expect Phase year. later BCL But either be here our if FL we there. this DL Epcoritamab, very high as focus and in combos with monotherapy of seeing see at a dual clear combinations, what which are some So, levels or then ASCO is engager, those

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

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

Thank may time. this your disconnect you Participants participation. for you at