“We expect these factors will continue to negatively impact the cost of sales in future quarters.”

In context

“n Inc. for their continued focus on patients and their commitment to advancing innovative medicines for serious diseases. I will now turn it over to Peter for the financial update. Peter H. Griffith: Thank you, Jay. We are pleased with our strong first quarter performance, executing through a full quarter of the patent expirations and losses of exclusivity. Our non-GAAP operating margin was 45%. We continue to invest in advancing our pipeline with non-GAAP R&D spending increasing 16% year over year in the first quarter. This reflects increased spending on our late stage by including continued investments in Meritide, IMBELTRA and opasiran. Our non-GAAP cost of sales as a percentage of product sales was 19.5%, driven by higher profit share and royalty expenses and changes in our sales mix. We expect these factors will continue to negatively impact the cost of sales in future quarters. We further expect second quarter operating margin to be in line with the first quarter operating margin. Our non-GAAP OI&E resulted in $480 million of expense for the quarter, including a gain of about $90 million from retiring debt through open market repurchase. Our non-GAAP tax rate decreased one percentage point year over year to 13.6%, primarily due to net favorable items in the current year period, partially offset by the change in earnings mix. We generated $1.5 billion in free cash flow in the first quarter, reflecting continued momentum across the business. We spent $700 million in the first quarter on capital expenditures, driven by investments across our U.S. manufacturing sites, including Ohio, North Carolina, and Puerto Rico. We continue to expect capital expenditures of appr”