“Adjusted R&D expenses also decreased 12% operationally, driven primarily by a decline in spending due to our pipeline optimization efforts expected to be reinvested later this year and into next year.”

In context

“dekl family, Commerdy, Hatseb, Neurotech, and LoBrena, which were more than offset by declines in pack Lobid, Eliquis, Xeljanz, and Ibrance. Adjusted gross margin for the quarter expanded to approximately 81%, primarily as a result of favorability in crude royalties, partially offset by unfavorable product mix. Focus on cost management across our manufacturing network will remain a priority. Total adjusted operating expenses were $5.2 billion for the first quarter of 2025, a 12% decline operationally versus last year. Now looking at the components, adjusted SIA expenses decreased 12% operationally, primarily reflecting our ongoing productivity improvements, driving a decrease in marketing and promotional spend for various products as well as lower spending in corporate enabling functions. Adjusted R&D expenses also decreased 12% operationally, driven primarily by a decline in spending due to our pipeline optimization efforts expected to be reinvested later this year and into next year. We continue to be disciplined with our operational expense management. Q1 reported diluted earnings per share were $0.52, and our adjusted diluted earnings per share were $0.92, which benefited from our efficient operating structure, which in addition to favorable global income tax resolutions, in multiple tax jurisdictions spanning multiple tax years, as well as a favorable change in the jurisdictional mix of earnings. With that, now let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. The strategy consists of maintaining and growing our dividend over time, reinvesting in our business at the appropriate level of financial return, and making value-enhancing share repurchases. In Q1, we returned $2.4 billion to shareholders vi”