“We expect our annual capital expenditures to decline starting in 2024 with the completion and licensing of our Ohio plant.”

In context

“with an income tax beginning in 2023 as well as increased interest expense on our existing tax reserves. We are committed to our capital allocation priorities. First, we continue our investments in internal and external innovation that drive our long-term growth. Our increased spending and non-GAAP R&D of 12% in Q1 '23 over Q1 '22, coupled with our acquisition of TAVNEOS and our announced acquisition of Horizon Therapeutics will further broaden and strengthen our portfolio of first-in-class and best-in-class therapeutics to deliver to more patients globally. Second, we continue investing in our business to further long-term growth. Capital expenditures are at near peak levels, driven by simultaneous construction of our state of the art manufacturing facilities in Ohio and North Carolina. We expect our annual capital expenditures to decline starting in 2024 with the completion and licensing of our Ohio plant. And third, we continue to return capital to our shareholders as we pay dividends of $2.13 per share in the first quarter. This represented a 10% increase over that paid in each of 2022 four quarters. Free cash flow for the quarter was driven lower by the timing of sales rebates and incentives, lower operating income and higher capital expenditures from the building out of the state-of-the-art facilities in North Carolina and Ohio. We expect strong cash flow for the remainder of the year consistent with our full year 2023 financial outlook that includes a non-GAAP operating margin of roughly 50%. We expect sequential growth in our free cash flow in the second quarter, although there may be an impact to Q2 and free cash flow from the expected closing of the Horizon acquisition due to the ac”