“Our gross margin assumption is now approximately 82%.”

In context

“percentage point driven by favorable product mix. Operating expenses decreased to $6.1 billion. There were no significant business development expenses in the quarter, compared with the $656 million charge a year ago. Excluding this charge, operating expenses grew 6% reflecting disciplined investments in support of our robust early and late-phase pipeline, and key growth drivers. Other expense was $75 million. Our tax rate of 14.2% benefited from certain discrete items. Taken together, earnings per share were $2.22. Now turning to our 2025 non-GAAP guidance. As Rob noted, we are maintaining our full-year revenue guidance of between $64.1 and $65.6 billion. This range represents growth of 1% to 3% excluding a negative impact from foreign exchange of approximately 1% using mid-April rates. Our gross margin assumption is now approximately 82%. This includes approximately $200 million in costs related to the tariffs implemented to date. Operating expenses are now assumed to be between $25.6 and $26.6 billion. This range now includes a $200 million payment related to the license agreement with Hungry Pharma, which is expected to close in the second quarter. It also includes the $300 million tech transfer payment related to Lenovo which remains in our guidance but has not yet occurred. As a reminder, our guidance does not assume additional significant potential business development transactions. Other expense is expected to be between $300 million and $400 million. We assume a full-year tax rate between 15.5% and 16.5%. We assume approximately 2.51 billion shares outstanding. Taken together, we expect EPS of $8.82 to $8.97. This r”