“We expect in 2027 to find room in our portfolio and P&L as well.”

In context

“expansion, particularly in the 2027 to 2028 time frame? Thank you. Andrew Dickinson: Hey, Alex. Thanks for the question. In the first quarter, we delivered a 47% operating margin—significant strengthening from last year. The business continues to perform really well; you see that in our updated guidance, including the increase in revenue guidance. You also see the ability to absorb all three of these deals—essentially offsetting with revenue outperformance the incremental expenses we expect this year. Of the roughly $400 million in incremental expenses, a little over $200 million are R&D this year and the remainder are financing expenses. With revenue outperformance and disciplined expense management, we can offset those when you exclude IPR&D and look at EPS on an apples-to-apples basis. We expect in 2027 to find room in our portfolio and P&L as well. We spent a lot of time planning for this as we looked at the transactions, so we feel very comfortable navigating the incremental expenses. Beyond 2027, our expectation was that we would have more room in our portfolio in any event, as we have been wrapping up a number of Phase 3 trials across the portfolio. So 2026 and 2027 are modest, manageable increases. 2028 and beyond, we needed to add to the portfolio in any event, and these are high-quality assets to add. You should still expect very strong financial performance—top line and bottom line. There is room to strengthen the margin over time. Of course, it can vary quarter to quarter, but we feel like we are in a great spot today and really excited about what lies ahead. Analyst: Thank you, guys. I was really looking forward to a possib”