“With respect to gross margin, we are raising our guidance to reflect the impact of sales mix.”

In context

“ocation, we are prioritizing opportunities that will further strengthen our long-term growth outlook, while remaining committed to our dividend. Please turn to Slide 19 to walk through the details of our guidance. On Q2 performance, focused execution across the business generated top-line growth and driving operational excellence. These results provided support for updated full-year guidance. As is our practice, we provide revenue guidance on a reported basis as well as on an underlying basis, which assumes currency remains consistent with prior year. Our guidance for the full-year revenue is now low single-digit growth, which we now expect to come in at the upper end of the range. This is due to the continued performance of our growth portfolio and better-than-expected sales of Revlimid. With respect to gross margin, we are raising our guidance to reflect the impact of sales mix. Excluding acquired and process R&D, we continue to expect our total operating expenses to be at the upper end of low-single-digit percentage increase range. This reflects incremental costs associated with the recent acquisitions, partially offset by the realization of savings due to our productivity initiative. Given the delay in timing of anticipated expenses in Q2 , we now expect a step-up in Q3. Overall, our previous operating margin target of at least 37% for the full year remains unchanged. For OI&E, we now expect annual expenses of approximately $50 million due to higher-than-anticipated estimated royalties and favorable net interest expense. The annual tax rate will be affected by one-time nondeductible expenses of Karuna acquired in-process R&D charge, which impacted our non-GAAP”