AbbVie Inc (ABBV)

“We also forecast adjusted earnings per share between $3.84 and $3.88.”

“Turning to the third quarter, we anticipate net revenues of approximately $17.2 billion, which includes an estimated 0.4% unfavorable impact from foreign exchange.”

“We continue to expect that the Apogee transaction will close in the third quarter.”

“In Parkinson's disease, an FDA approval decision is expected in the third quarter for tevapadon.”

“We are updating our full-year adjusted earnings per share guidance to between $13.87 and $14.07.”

“A Phase II study evaluating tmAbA plus pembrolizumab in frontline will start soon.”

“Dose selection for both schizophrenia and psychosis programs is expected in the coming months, and we remain on track to begin Phase II studies in the fourth quarter.”

“In hidradenitis suppurativa, we remain on track for 16-week data later this year from both RINVOQ and lutikizumab Phase III trials.”

“We continue to expect collective Parkinson's peak sales of more than $5 billion.”

“Vialev is well on track to achieve blockbuster sales this year, and we expect continued robust momentum in Parkinson's with the anticipated U.S. approval and launch of tevapadon in the third quarter.”

“The acute indication expansion in international markets for QLIPTA further supports our long-term outlook for our oral CGRPs to collectively achieve more than $5 billion of peak sales.”

“I am especially pleased with the momentum we see in gastroenterology, where RINVOQ is on pace to deliver 30% global sales growth this year.”

“Based on this momentum, we are raising our full-year revenue guidance by $300 million and have now raised total revenue by $600 million since the start of the year.”

“Finally, we now forecast our non-GAAP tax rate to be approximately 14.5%, which reflects the impact of acquired IPR&D.”

“We also expect adjusted net interest expense of approximately $2.9 billion, an increase of $200 million, which reflects the partial-year financing cost of the planned Apogee transaction.”

“We anticipate an adjusted operating margin ratio approaching 47% of sales.”

“We expect adjusted SG&A expense of approximately $14.5 billion as we continue to support our significant commercial momentum.”

“We now expect adjusted R&D expense of approximately $9.8 billion, an increase of $100 million reflecting Apogee-related pipeline investments.”

“Moving to the P&L for 2026, we continue to forecast full-year adjusted gross margin above 84% of sales.”

“Total neuroscience revenues of $12.7 billion, an increase of $100 million now reflecting Vraylar sales approaching $4.1 billion and Botox Therapeutic sales approaching $4.2 billion.”

“We now expect SKYRIZI global revenues of $21.7 billion, an increase of $100 million based on momentum across psoriatic and IBD indications.”

“We now expect total net revenues of approximately $67.6 billion, an increase of $300 million.”

“A Phase III study evaluating etansamig in combination with pomalidomide in second-line plus patients, including those that were exposed or refractory to an anti-CD38 antibody, or who lost response to an anti-BCMA CAR T or ADC, will begin by year-end.”

“An interim analysis is planned in the third quarter for progression-free survival from the monotherapy ThirdLinePlus trial. If this interim analysis is positive, regulatory submission would occur later this year.”

“In second-line CRC, data are expected later this year from a Phase II study evaluating tmAbA combinations versus chemotherapy.”

“This study is expected to complete this fall, and final results will be submitted for presentation at a future medical meeting.”

“Turning to gastroenterology, the U.S. application for SKYRIZI subcutaneous induction in Crohn's disease is under review with an approval decision expected later this fall.”

“Applications are also under review in the U.S. with approval decisions anticipated later this year for vitiligo and early next year for alopecia areata.”

“We expect Bowie will meaningfully expand the toxin market and look forward to potentially bringing this innovation to the U.S.”

“We are very excited about the growth potential in dermatology with vitiligo and alopecia areata now approved in Europe and U.S. approval decisions anticipated over the next few quarters.”

“We are also preparing for the potential approval of our subcutaneous induction dosing option for Crohn's later this fall, which is supported by very strong data, particularly in the frontline where we observe the highest levels of endoscopic response seen in the category.”

“We do not expect a material impact to our robust outlook in psoriasis from existing or new therapies, given SKYRIZI's distinct profile.”

“The acquisition will add even more depth to our robust pipeline in immunology, which we expect will be a major growth driver for AbbVie over the long term.”

“We now anticipate the combined peak sales for these two indications alone to approach $2 billion, which is meaningfully above our prior expectations.”

“Based on these results, a Phase III trial in newly diagnosed patients is being planned.”

“Our Phase II program is now expected to begin in the third quarter.”

“We anticipate a response rate readout in the third quarter with potential to also see an interim analysis on progression-free survival.”

“In Parkinson's disease, we remain on track for an approval decision for tavapadon in the third quarter.”

“A Phase IIb study is planned to begin this summer in patients with Crohn's disease and ulcerative colitis to evaluate Skyrizi in combination with both 382 and with our extended half-life TL1A antibody.”

“We expect adjusted earnings per share between $3.74 and $3.78.”

“We are forecasting an adjusted operating margin ratio of approximately 50%.”

“Turning to the second quarter. We anticipate net revenues of approximately $16.7 billion.”

“We believe both of these have significant multibillion-dollar peak potential and both have really not even been described any value by roughly half of the cell site.”

“When I look at sell-side consensus, I mentioned, we do see upside. We see upside for the total company revenue in every year with that upside growing.”

“When we look at overall Rinvoq expectations, at least for what sell side consensus is modeling we still see broadly upside on Rinvoq in each year with that number growing each year.”

“We continue to see upside to consensus forecast for Skyrizi going out every year and growing each year.”

“So the numbers that you're quoting from are consistent with what we've -- what we're seeing in terms of sell-side consensus. And yes, -- we do expect the peak potential for both Skyrizi and Rinvoq to exceed those estimates.”

“We already mentioned in neuroscience that we see upside versus expectations for the migraine in Parkinson's [indiscernible] right now, what we see in consensus is peaking at below $4 billion. We've said several times, we expect them to each peak in excess of 5.”

“giving us essentially a business of Parkinson's that we expect to peak above $5 billion.”

“We still look at that $2 billion as a reasonable base case. But I would say, basically, we're leaning towards more, let's say, bullishness.”

“Now it's important to note that regulatory data protection for Skyrizi does not expire until 2031. So we do not expect to see biosimilar application filings until the end of this decade.”

“On a full year basis, we do continue to expect low digit pricing for the full year.”

“We also now expect adjusted net interest expense of approximately $2.7 billion, a reduction of $100 million, primarily related to favorable rates on our debt issuance.”

“We now anticipate an adjusted operating margin ratio of approximately 47.5% of sales, in line with our previous expectations after including the roughly 1% unfavorable impact of acquired IP R&D expense incurred through the first quarter.”

“Adjusted R&D expense of approximately $9.7 billion and adjusted SG&A expense of approximately $14.2 million.”

“We continue to forecast full year adjusted gross margin above 84% of sales.”

“Total Neuroscience revenues of $12.6 billion an increase of $100 million, reflecting momentum across the portfolio.”

“Rinvoq global sales of $10.2 billion, an increase of $100 million, reflecting strong performance in the room and gastro indications.”

“We now expect Skyrizi global revenues of $21.6 billion, an increase of $100 million, reflecting demand growth in psoriatic and IBD indications.”

“We now expect total net revenues of approximately $67.3 billion, an increase of $300 million.”

“We are raising our full year adjusted earnings per share guidance to between $14.08 and and $14.28.”

“Interim data from our Phase I study in obese patients are anticipated later this year.”

“Two Phase II studies evaluating 706 triplet combinations in frontline patients are also planned to initiate this year.”

“Initial data readout is expected in the second half of next year.”

“Given the expanded patient population for the all-comers Phase III trial, we anticipate faster enrollment compared to the study in cMET selected patients.”

“Several studies are planned to begin in 2026, including a Phase III trial for single course acute treatment in MDD, a Phase IIb evaluating repeat dosing for chronic use in MDD and a proof of concept Phase II and post-traumatic stress disorder.”

“Additional data from an ongoing Phase II study in major depressive disorder will be available this year.”

“Phase II studies in monotherapy and adjunctive schizophrenia as well as psychosis related to Alzheimer's, Parkinson's and Louis Body Dementia are planned to begin in the fourth quarter.”

“We are nearing completion of a Phase I study for an [indiscernible] inhibitor, ABBV-848 and and plan to begin a Phase II study in rheumatoid arthritis later this year.”

“The study is expected to complete in the third quarter with presentation at a medical meeting anticipated by early next year.”

“Our U.S. regulatory application was recently submitted with an approval decision anticipated later this year.”

“[indiscernible], Phase III studies for both Rinvoq and lutukizumab are progressing well and remain on track for 16-week top line results in the second half of this year.”

“The regulatory application for alopecia areata was recently submitted to the FDA approval decisions are anticipated later this year in Europe and Japan and in early 2027 in the U.S.”

“While [indiscernible] is delayed in the U.S. we continue to anticipate approval and launches this year in key international markets, including Europe, Canada and Japan.”

“We continue to see encouraging uptake for VYALEV, which is on track to achieve blockbuster revenue this year.”

“Vraylar has significant close to branded competitor, and we expect continued momentum following the introduction of new lower doses, allowing prescribing flexibility as well as pediatric usage.”

“I look forward to providing an additional dosing option for physicians and IBD patients later this year.”

“Performance also remains very robust in IBD, where Skyrizi is on track to deliver more than 30% global sales growth across Crohn's disease and ulcerative colitis this year.”

“In oncology, we are now expecting the regulatory submission for [indiscernible] by the end of this year, which is earlier than our previous expectations.”

“Based on this strong performance, we are raising our full year adjusted earnings per share guidance by $0.12 and now expect adjusted EPS between $14.08 and $14.28.”

“If this interim analysis is positive, regulatory submissions would occur later this year.”

“We are also preparing for the potential approval and launch of Tavapadon in the U.S. later this year.”

“Turning to neuroscience, in our movement disorder programs, an approval decision is anticipated in the third quarter for tevapadon in Parkinson's disease.”

“we will shortly see a readout over a head-to-head study with Entyvio.”

“we're going to continue to stretch our lead in that area.”

“we're very, very confident that we're going to see very significant growth in leadership with SKYRIZI over IBD as well as the RINVOQ dynamic we discussed.”

“That said, we did plan conservatively that it could be selected based on CMS spend, so its selection does not impact our long-term growth guidance at all.”

“And given the ramp of our oral CGRPs, we believe our migraine franchise will also exceed $5 billion in peak sales.”

“And we remain on track for commercial approval of tevapadon in the US later this year.”

“We do not expect a material impact to our robust outlook in psoriasis from any existing or new therapies this year and beyond.”

“Given the strong outlook of our diverse portfolio, we are well-positioned to deliver high single-digit revenue growth through 2029.”

“So we're gonna look at a comparator with a slightly lower dose of self-control, and then that'll read out, I would say, by Q3 or so.”

“we've sized that opportunity, you know, roughly just above half a billion at peak.”

“we've highlighted that if you look at our next generation of our next wave of RINVOQ approvals, that we anticipate roughly $2 billion or more in peak year sales.”

“And so as I mentioned before, as we look at these brands, we would expect them to exceed $5 billion now.”

“So those dynamics will be played, but you're going to see low single-digit pricing in '26 for both products and then, you know, going forward as well as our anticipation.”

“So we've talked about it, and we continue to expect low single-digit pricing headwinds for both of those products, both in '26 and over the next few years as well.”

“we don't see a large or meaningful interaction between the two even if we do see the negotiation take place in twenty-eight.”

“That can help replace the $5 billion peak of Vraylar at its LOE in 2030.”

“I'd say neuroscience is clearly overperforming. We delivered nearly 20% growth last year. We expect to deliver mid-teens growth this year.”

“and we expect to generate free cash flow of $18.5 billion in 2026, which includes roughly $3.5 billion of SKYRIZI royalty payments.”

“Finally, we expect our share count to be roughly in line with 2025.”

“We forecast our non-GAAP tax rate to be approximately 14%, reflecting a modest underlying improvement compared to 2025 due to recent tax law changes.”

“We expect adjusted net interest expense of approximately $2.8 billion, which includes anticipated refinancing.”

“We also expect an adjusted operating margin ratio of approximately 48.5%, reflecting meaningful expansion compared to 2025.”

“Moving to the P&L for 2026, we are forecasting full-year adjusted gross margin above 84% of sales, adjusted R&D expense of approximately $9.7 billion, and adjusted SG&A expense of approximately $14.2 billion.”

“For aesthetics, we expect global sales of $5 billion.”

“In oncology, we expect global sales of $6.5 billion, including IMBRUVICA revenue of $2.2 billion, reflecting competitive headwinds and the impact of lower IRA-related pricing, VENCLEXTA sales of $3 billion, which reflects continued strong demand, and ELEHIR revenue of $850 million.”

“For neuroscience, we expect global sales of $12.5 billion, reflecting robust double-digit growth.”

“We expect global immunology sales of $34.5 billion, including SKYRIZI revenue of $21.5 billion, driven by market growth and share gains across the psoriatic and IBD indications, RINVOQ revenue of $10.1 billion, with growth across room, derm, and gastro indications, and HUMIRA total revenue of $2.9 billion, reflecting continued biosimilar impact.”

“At current rates, we expect foreign exchange to have a roughly 0.8% favorable impact on full-year sales growth.”

“We expect total net revenues of approximately $67 billion, reflecting growth of 9.5%.”

“Turning to our financial outlook for 2026, our full-year adjusted earnings per share guidance is between $14.37 and $14.57.”

“Results will guide our phase two program, which is expected to begin near the end of this year.”

“This year, data from two additional cohorts from a phase two study evaluating bradicilacin in major depressive disorder will help inform our development strategy and phase three plans.”

“Data from the generalized anxiety disorder phase two is anticipated in the early part of 2027.”

“Regulatory submission for Qlipta in Europe is anticipated later this year, and for UBRELVY in the US in 2027.”

“Our phase three studies evaluating Qlipta and UBRELVY for menstrual migraine prevention are progressing well, with data from both trials expected in the second half of this year.”

“Approval decisions in Europe and Japan are expected later this year.”

“This year, a phase two study assessing gemmibot A in essential tremor will begin.”

“Additionally, a phase three study in second-line evaluating entantamig with pomalidomide is expected to begin by early 2027.”

“Enrollment is projected to complete this quarter in our phase three trial evaluating monotherapy atentamig in third-line plus multiple myeloma, with an objective response rate readout anticipated in the second half of this year.”

“An approval decision is anticipated later this year.”

“A phase three study in second-line plus patients is also planned to initiate this year.”

“Later this year, data is anticipated in head and neck and ovarian cancer.”

“Data from these studies will be available next year, informing our phase three path.”

“Therefore, we will be initiating a phase three study this year in an all-comers population in combination with VEV.”

“Individual patient data from dose escalation studies will be available on a rolling basis, and we anticipate seeing efficacy results later this year.”

“Data from this study will be available later this year and will help inform our combination strategy for this molecule.”

“Regulatory applications for RINVOQ in alopecia areata are under review in Europe and Japan, with approval decisions expected later this year.”

“Regulatory applications for RINVOQ in nonsegmental vitiligo were recently submitted, with an approval decision in the US anticipated in the fourth quarter.”

“We look forward to commercializing Trinibot e, a fast-acting short-duration toxin, which is expected to be approved in the US later this year.”

“And we do anticipate IMBRUVICA IRA price pricing will unfavorably impact our oncology portfolio growth in 2026.”

“Given these insights and the robust early launch trends globally, we now expect Violet to achieve blockbuster revenue in 2026.”

“and we expect sales to ramp in the US, where Violet recently received full coverage.”

“We anticipate HUMIRA access will decrease further throughout 2026 as more plans move to exclusive biosimilar contracts.”

“So together, our two brands have already exceeded peak HUMIRA sales by more than $4.5 billion and are on pace to deliver more than 20% growth in 2026, remarkable considering this year will be their eighth year on the market.”

“And we expect continued double-digit revenue growth from our leading migraine products, which are also trending significantly above our long-term expectations.”

“We are also forecasting a substantial sales ramp for Vialev, achieving blockbuster status this year as a transformational treatment for Parkinson's.”

“We are raising our full year adjusted earnings per share guidance to between $10.61 and $10.65.”

“We remain on track to begin submitting regulatory applications later this year.”

“We expect adjusted earnings per share between $3.32 and $3.36.”

“This reflects an estimated 1% favorable impact from foreign exchange on sales growth.”

“Turning to the fourth quarter. We anticipate net revenues of more than $16.3 billion.”

“And we now forecast our non-GAAP tax rate to be approximately 17.3%, also reflecting the impact of acquired IPR&D.”

“We now anticipate an adjusted operating margin ratio of approximately 41% of sales, in line with our previous expectations after including the roughly 6% unfavorable impact of acquired IPR&D expense incurred through the third quarter.”

“We continue to expect adjusted gross margin of 84% of sales, adjusted R&D expense of $9 billion and adjusted SG&A expense of $13.5 billion.”

“And we also continue to assume a relatively neutral impact from foreign exchange on full year sales growth.”

“Aesthetics total sales of $4.9 billion, a decrease of $200 million, reflecting greater-than-expected market softness globally, with the remaining $200 million increase reflecting the collective momentum from Rinvoq and several other products across our diverse portfolio.”

“Neuroscience global revenues of $10.7 billion, an increase of $200 million, reflecting continued strength across Vraylar, Botox Therapeutic, VYALEV and the total oral CGRP portfolio.”

“This updated forecast primarily reflects Skyrizi global sales of $17.3 billion, an increase of $200 million with continued share gains in psoriasis and IBD.”

“We now expect total net revenues of approximately [ $16.9 billion, ] an increase of $400 million.”

“A Phase II study in MET amplified solid tumors is expected to begin later this year.”

“This step-up in volume erosion is expected to be partially offset by a price benefit also associated with these contract changes, which is included in our fourth quarter outlook.”

“We anticipate $9 billion of adjusted R&D expense in 2025, a substantial increase from the prior year.”

“But we're not concerned about it impacting our long-term guidance, but there's no impact in '26 because those prices do not take effect in '26.”

“So as it relates to the Vraylar and Linzess negotiations, keep in mind, those prices will not take effect until 2027.”

“So you will see earnings growth expand a little bit faster than the revenue growth through the decade with that long-term guidance.”

“We still remain extremely confident in our ability to achieve that high single-digit growth through the decade on the top line.”

“So it's reasonable to assume that we will exceed that long-term guidance.”

“That said, the outcomes for Vraylar and Linzess will not impact our long-term guidance.”

“We also remain on track to achieve a net leverage ratio of 2x by the end of 2026.”

“Based on these results, we plan to advance a new toxin for upper limb essential tremor.”

“Based on these results, we plan to begin a Phase III study for this combination in late-line all-comers CRC.”

“This includes investing at least $10 billion of capital in the U.S. over the next 10 years.”

“next year, once we have a handle on dosing, we'll start looking at patients starting on the rheumatology side of things like RA and lupus.”

“we've looked and sized those that, that revenue potential is at least $2 billion at peak.”

“We still anticipate our double-blinded week 16 data at the end of next year in HS.”

“But I would say that will be a very nice growth driver for us in 2026.”

“And Humira erosion will continue, albeit not at the same absolute level as we saw in 2025.”

“That momentum should allow us to deliver strong growth next year despite headwinds from continued Humira erosion and Imbruvica IRA pricing.”

“Additional Phase II studies in depression are expected to begin next year.”

“Phase II studies for TrenibotE in essential tremor and ventral hernia repair will begin next year.”

“A Phase II study in pancreatic cancer is expected to begin next year.”

“Given the significant commercial opportunity with our emerging Parkinson's portfolio, we are now actively expanding our field sales team to support higher anticipated demand next year.”

“We anticipate expanded coverage of VYALEV in the U.S. soon, which we expect will provide further revenue inflection next year.”

“We continue to anticipate Humira access in the U.S. will decrease throughout the remainder of this year and into 2026 as more plans select exclusionary contracts for existing patients.”

“We are making excellent progress and expect several important milestones over the next 2 years, including new product approvals for tavapadon and PVEK, expanded indications for Rinvoq, Epkinly, Qulipta and Ubrelvy and pivotal data for lutikizumab, Temab-A and etentamig.”

“the Phase Ib program late this year, maybe into January when we get everything started.”

“And that data will also likely read out probably in Q4 of next year.”

“we're very confident that we're going to start to see the Medicare ramp in the U.S. start here in the latter part of the year, and we're right on track for that.”

“I'm also very pleased with Skyrizi's performance in IBD, where we are on track to double our sales this year.”

“And on a long-term basis, of course, low single digits, consistent with what we've said. But this year had some anomalies. And so neutral for this year. You will see some negative price in the back half of the year.”

“We do expect on an overall basis that pricing to be neutral for Skyrizi.”

“As it relates to tariffs, I'd say, as it relates to '25, we're fairly insulated from any impact this year given inventory management actions.”

“We expect adjusted earnings per share between $3.24 and $3.28.”

“We also now anticipate an adjusted operating margin ratio of roughly 45% of sales, in line with our previous expectations after including the 1.8% unfavorable impact of acquired IPR&D expense incurred through the second quarter.”

“We now expect adjusted R&D expense of approximately $9 million and adjusted SG&A expense of approximately $13.5 billion.”

“We continue to forecast full year adjusted gross margin of approximately 84% of sales.”

“And in oncology, we now expect Imbruvica global revenues of $2.9 billion, an increase of $100 million, reflecting higher persistency rates for existing patients and Venclexta global sales of $2.8 billion, an increase of $100 million, reflecting continued strong demand in CLL.”

“In neuroscience, we now expect global sales of $10.5 billion, an increase of $300 million.”

“In Immunology, we now expect Skyrizi global revenues of $17.1 billion, an increase of $600 million, reflecting continued share gains in psoriasis and IBD and U.S. HUMIRA revenues of $3 billion, a decrease of $500 million, reflecting biosimilar competition.”

“We now expect total net revenues of approximately $60.5 billion, an increase of $800 million.”

“results from a registration-enabling Phase II study evaluating PVEK in BPDCN, which will support a regulatory submission later this year.”

“Based on these results, we plan to initiate additional studies in both first and second line.”

“The vitiligo program for Rinvoq is also nearing completion with top line results from Phase III studies expected later this year.”

“Results from a second Phase III alopecia areata study are anticipated in the third quarter, followed by regulatory submission starting later this year.”

“This includes a new BOTOX consumer campaign in the U.S. with ramping second half investment.”

“We anticipate HUMIRA access in the U.S. will continue to decrease throughout the second half of this year as more plans select exclusionary formularies for existing patients.”

“with access in the U.S. expected to ramp quickly over the rest of the year.”

“Skyrizi and Rinvoq, which are now on pace to deliver more than $25 billion in combined sales this year, well above our initial expectations.”

“We are also raising our full year adjusted earnings per share guidance by $0.21 and now expect adjusted EPS between $11.88 and $12.08.”

“We now expect full year revenue of $60.5 billion, an increase of $800 million.”

“We clearly have very strong positions in psych and migraine and emerging leadership position in Parkinson's with VYALEV and tavapadon, as Jeff mentioned... In fact, we expect to be the largest neuroscience company in the industry next year.”

“And longer term, we will add more U.S. manufacturing capacity, which is part of the planned $10 billion in capital investment that we announced during the first quarter call.”

“we've highlighted that the collection of the next wave of indications would add approximately $2 billion to peak year sales for Rinvoq.”

“So we previously would have assumed we had a time line as we model the impact of IRA. Now with this change, we would not expect Venclexta to be negotiated.”

“It has demonstrated strong efficacy in hidradenitis suppurativa, where Phase III is ongoing with data expected in 2027.”

“But in the meantime, we have enough confidence in the momentum of our business to raise our guidance this year, which should be viewed as a positive.”

“As a result, we will be lowering our full year sales guidance for US Humira.”

“Overall, Skyrizi and Rinvoq are demonstrating impressive results across all of their approved indications, and we will be raising our full year sales guidance for both products.”

“So we're going to start to see those international launches ramp here over the next several quarters.”

“Our big push will be to recover that share over the course of the year in the US toxin space.”

“Now we still have to gain some more share over the course of the year to come back to where we were pre the change to Alley.”

“With respect to Humira, we talked about in the quarter and on the full year that there is a decrease in volume associated with share erosion as well as the compression of the overall molecule. So that volume is going to continue.”

“But we still anticipate negative pricing headwinds on a full year basis.”

“So a multiple ascending dose study will be initiated this year and that would apply to potentially monotherapy in schizophrenia as well as the adjunctive setting.”

“We also now anticipate an adjusted operating margin ratio of roughly 46.5% of sales, in line with our previous expectations after including the 0.4% unfavorable impact of acquired IPR&D expense incurred through the first quarter.”

“We now expect adjusted R&D expense of approximately $8.9 billion reflecting additional investment in our robust pipeline for long term growth.”

“Moving to the P&L for 2025, we continue to forecast full year adjusted gross margin of approximately 84% of sales and adjusted SG&A expense of approximately $13.2 billion.”

“As a result, total sales guidance for BOTOX and Juvederm will each be lower by roughly $100 million.”

“And for aesthetics, we now expect global sales of $5.1 billion as we are moderating our assumptions for market growth globally.”

“Venclexta global sales of $2.7 billion an increase of $100 million reflecting continued uptake in both CLL and AML across our key countries.”

“Imbruvica global revenues of $2.8 billion an increase of $100 million reflecting lower erosion.”

“Total oral CGRP revenues of $2.2 billion an increase of $100 million reflecting strong prescription demand.”

“BOTOX Therapeutic global sales of $3.6 billion, an increase of $100 million reflecting growth in chronic migraine and other indications.”

“US Humira revenues of $3.5 billion a decrease of $500 million reflecting higher erosion from biosimilar competition as well as further molecule compression.”

“Rinvoq global sales of $8.2 billion, an increase of $300 million reflecting momentum across all approved indications.”

“We now expect Skyrizi global revenues of $16.5 billion an increase of $600 million reflecting share gains in psoriasis and IBD.”

“We now expect total net revenues of approximately $59.7 billion an increase of $700 million.”

“Our regulatory application is planned for later in the year.”

“Recruitment is going well in the Phase 3 monotherapy study in later lines, and we are on track to be fully enrolled by early next year.”

“A regulatory submission for PIVEC in BPDCN is also planned for this year.”

“In the area of hematologic oncology, the data readout remains on track for the Phase 3 VENCLEXTA MDS trial. And if positive, our regulatory submissions would follow later in the year.”

“Based on maturing duration of response and progression free survival data, we plan to advance 706 into a trial in a relapsed refractory population and a dose optimization study in combination with a PD-L1 in the frontline with the goal of establishing a chemo sparing regimen as a new standard of care.”

“This year, Phase 2 data from our CRC study evaluating tmAb A in combination with Bevacizumab will be available, which could enable a Phase 3 study in an all comers population.”

“In the EGFR mutant segment, we plan to initiate studies for tmAb A as a monotherapy in the second line setting and in combination with Osimertinib in the first line setting.”

“We anticipate accelerated approval in the second quarter for Teliso-V as a monotherapy in previously treated non-squamous non-small cell lung cancer with high c-Met expression.”

“This summer, we will start a Phase II study evaluating a combination of Lutikizumab and our anti CD40 Ravagalimab in rheumatoid arthritis.”

“We remain on track for several important data readouts this year as well including Phase III data for Rinvoq in alopecia areata and vitiligo and data from Skyrizi's head to head study in psoriasis versus SOTIQ2 [ph].”

“We are also pleased with the early launch feedback in the US, where revenues are expected to ramp gradually over the next couple of quarters as we work to establish the appropriate Medicare coverage and benefit determination.”

“Based on the trends we are seeing, including a decline in recent consumer sentiment, we are moderating our assumptions for category growth globally and adjusting our full year sales guidance for aesthetics accordingly.”

“Based on this strong performance, we are raising our full year adjusted earnings per share guidance by $0.10 and now expect adjusted EPS between $12.09 and $12.29.”

“And we really see these two products even before the combination that Roopal spoke about as having a long runway of at least for at least the next eight years and we feel very good about that from that perspective.”

“We've also given the long term guidance in 2027, which we continue to feel very confident in.”

“AbbVie has a clear runway to growth for at least the next eight years, including a high single digit revenue CAGR through 2029.”

“So the studies have initiated and we would anticipate next year starting to see early data readouts.”

“So we expect that to start to develop over that ’26 time period.”

“We do expect it to step down again. Just makes sense. That will be the fourth full year.”

“We expect to submit Tavapadon for regulatory review later this year with commercialization expected in 2026.”

“We anticipate commercialization next year.”

“So specific to 2025, we would look to mitigate the impact as much as possible with a combination of supply chain actions, cost efficiencies and any additional overperformance from our growth platform.”

“So, I'm very pleased with this momentum and continue to see a significant opportunity for share gains across our existing indications, in addition to the typical market growth we see across room, derm, and gastro in 2025 and beyond.”

“And then we expect the international business to continue to increase as a percent of the revenue for overall global Allergan aesthetics.”

“Maybe one comment to add to Carrie's. On the R&D side, even thinking past that, this year we'll initiate a study with BoNT/E plus Botox to cover people immediately and get that long-term benefit. So, that, those studies will start this year.”

“we expect to generate free cash flow approaching $17 billion in 2025, which includes roughly $2.7 billion of Skyrizi royalty payments.”

“Finally, we expect our share count to be roughly flat to 2024.”

“We expect adjusted net interest expense of approximately $2.6 billion which primarily reflects the annualized financing cost for the ImmunoGen and Cerevel transactions.”

“Moving to the P&L for 2025, we are forecasting full-year adjusted gross margin of approximately 84% of sales, adjusted R&D investment of approximately 14.5%, adjusted SG&A expense of approximately $13.2 billion and an adjusted operating margin ratio of roughly 47% of sales.”

“For eye care, we expect global sales of $2.2 billion.”

“In oncology, we expect global sales of $6.3 billion including IMBRUVICA revenue of $2.7 billion which reflects a $400 million net unfavorable impact from the Medicare Part D benefit redesign; Venclexta sales of $2.6 billion, reflecting continued strong demand, partially offset by a $100 million net unfavorable impact from Medicare Part D benefit redesign and Elahere revenue of $750 million.”

“And Humira total revenue of $5.6 billion, including U.S. sales of $4 billion as more plans exclude branded Humira around the middle of the year.”

“We expect global immunology sales of $29.4 billion, including Skyrizi revenue of $15.9 billion reflecting growth of more than $4.1 billion driven by continued strong performance in psoriasis as well as robust uptake in IBD; Rinvoq sales of $7.9 billion reflecting growth of nearly $2 billion with continued market growth and share momentum across all approved indications.”

“Longer term safety data will be available this year and regulatory submissions will then follow.”

“Moving to Skyrizi, data from the head-to-head in psoriasis versus Sotyktu will be available this year.”

“Data for two Phase 3 Rinvoq programs will be available this year, alopecia areata and vitiligo, and for our HS and lupus programs in 2026.”

“Additionally, based on our Alle loyalty program changes, we expect a one-time price adjustment to negatively impact our first quarter U.S. results.”

“We anticipate Humira access will decrease throughout 2025 as more plans move to exclusive biosimilar contracts.”

“In addition, we expect the readout of our fifth head-to-head study in psoriasis comparing Skyrizi to Sotyktu, which will continue to differentiate the brand versus oral competitors.”

“And expect our diverse portfolio to drive strong growth in 2025 and beyond.”

“In 2025, we anticipate approvals for Rinvoq in GCA, and Teliso-V for non-squamous, non-small cell lung cancer, as well as regulatory submissions for Tavapadon in Parkinson's, Venclexta in higher-risk MDS, and BoNT/E for aesthetics.”

“And given that we have no significant LOE events for the rest of this decade, we have a clear runway to growth for at least the next eight years, including a high single-digit revenue CAGR through 2029.”

“If you do the math on that range, that is something above $7 billion, a little bit north of $7 billion, depending on where it falls within that high single-digit range.”

“And if you model that, that's going to put you somewhere north of $7 billion.”

“So, we would -- if you model, you would anticipate '25 to be the trough. And then, our long-term guidance is that high-single-digit compound annual growth using '25 as the base year through '29.”

“So, as I think about the rate of growth for Skyrizi and Rinvoq beyond '27, Rinvoq will likely grow faster than Skyrizi because of those new indications, but you'll still see a robust performance from both assets, at least through '32.”

“And then, keep in mind, we will have the five, we expect the five new indications for Rinvoq, collectively adding about $2 billion in peak sales and so that will also contribute.”

“We would expect to see these markets continue to grow. We would also expect to see continued share gains, albeit as you start getting close to that in place share level, the share curve bends, but you still expect to see some level of share growth.”

“we expect to pay down nearly $3 billion of total debt this year and remain on track to achieve a net leverage ratio of 2x by the end of 2026.”

“Based on the market trends over the last few years, and our assumption for a gradual recovery in the near term, we now expect aesthetics to deliver a high single-digit revenue CAGR through 2029.”

“Based on this strong momentum, we now expect Skyrizi and Rinvoq to exceed more than $31 billion of combined sales in 2027, which is $4 billion above the guidance we provided last year.”

“The regulatory submission will likely occur around the middle of the year.”

“This year, data from a Phase 1 CRC study evaluating Temab-A in combination with bevacizumab could enable a Phase 3 study in an all-comers population.”

“It's reasonable to assume that roughly half of U.S. covered lives will continue to have parity access to Humira on a full-year basis, with select exclusionary contracts for existing patients expected to begin around the middle of the year.”

“as well as the potential for five new indications for Rinvoq over the next few years.”

“And, as Rob said, we’re still looking good for 25%.”

“But, as we look at 2025, we’re very confident in our ability to return to that robust mid-single-digit growth.”

“So yes, we are very confident in that robust mid-single-digit growth, both topline, bottom line for 2025.”

“In our novel toxin portfolio, we remain on-track to submit our regulatory application for BoNT/E around the end of this year.”

“As Rob mentioned, we remain on track to share data from the two emraclidine pivotal studies in the fourth quarter.”

“Recall, we’ve also advanced 400 in late line colorectal cancer and we remain on-track to begin a Phase 3 study later this year.”

“As a result of this continued strong performance, we will also be increasing the full-year sales guidance once again for Rinvoq.”

“So, given the momentum we are seeing across all of these indications, we will be raising our full-year sales guidance once again for Skyrizi.”

“We remain on-track to read out both pivotal studies for emraclidine in schizophrenia in the fourth quarter.”

“We expect adjusted earnings per share between $2.94 and $2.98.”

“At current rates, we expect foreign exchange to have a neutral impact on sales growth.”

“We anticipate net revenues approaching $14.8 billion.”

“We continue to forecast a full-year adjusted gross margin of approximately 84% of sales, adjusted R&D investment of 14%, adjusted SG&A expense of 23.5% as well as an adjusted operating margin ratio of roughly 44.5% of sales, which includes a 2.1% unfavorable impact from acquired IPR&D expense.”

“And for Botox, we now expect global revenue in the therapeutic space of $3.3 billion an increase of $100 million reflecting robust demand across all indications.”

“Aesthetics global revenue of $5.3 billion a decrease of $200 million almost entirely due to lower Juvederm volume which continues to be impacted by challenging economic conditions in key markets.”

“Venclexta total sales of $2.6 billion an increase of $100 million reflecting momentum in both U.S. and international markets.”

“Imbruvica totaled revenue of $3.3 billion an increase of $200 million reflecting higher persistency rates for existing patients.”

“U.S. Humira total sales of $7.4 billion a decrease of $400 million reflecting more Humira molecule volume moving to other novel mechanisms, including Skyrizi and Rinvoq.”

“Rinvoq total revenue of $5.8 billion an increase of $100 million reflecting robust uptake in IBD.”

“We now approximate Skyrizi global sales of $11.5 billion, an increase of $500 million due to continued strong performance across all approved indications.”

“At current rates, we expect foreign exchange to have a 0.7% unfavorable impact on full-year sales growth.”

“We now expect total net revenues of approximately $56 billion, an increase of $500 million.”

“Results from our long-term safety study, TEMPO-4 are expected next year.”

“We expect to see results from TEMPO-2 later this year, which is our Phase 3 monotherapy study evaluating a flexible dose of tavapadon.”

“Based on these encouraging preliminary data, we plan to begin Phase 2 studies for 400 in both non-small cell lung cancer and gastroesophageal cancer.”

“We anticipate an approval decision in Europe in the fourth quarter.”

“Primarily due to this circumstance, we are moderating our Juvederm sales outlook for the year.”

“Sales in the U.S. for Vyalev are expected to ramp gradually over the next several quarters as we work to establish the appropriate Medicare coverage and benefit determination.”

“Looking forward, we see substantial momentum for both Skyrizi and Rinvoq, including continued share gains across existing indications on top of the typical underlying market growth across room, derm and gastro.”

“We have now secured broad formulary access for Skyrizi in UC, with sales in this indication expected to ramp meaningfully over the next several quarters.”

“We are also raising our full-year adjusted earnings per share guidance by $0.15 and now expect adjusted EPS between $10.90 and $10.94.”

“If you believe that the market will recover to high single digits and we have a lot of confidence in BoNT/E, we still believe we can get there, which is why we’re not updating that guidance.”

“As we think about the long-term guide, which is greater than $9 billion by 2029, you need to believe that you can have essentially a compound growth around 11% to get there.”

“This free cash flow fully supports a strong and growing quarterly dividend, which we are increasing 5.8% to $1.64 per share, beginning with the dividend payable in 2025, as well as debt repayment, where we remain on-track to pay down the roughly $7 billion of maturities this year and anticipate achieving a net leverage ratio of two times by the end of 2026.”

“Longer-term, we anticipate peak sales of Vyalev to exceed $1 billion.”

“So the $11 floor, again, was on an ex-IPR&D basis, where obviously with this guidance, ex-IPR&D, I think, we’re just a little bit over $11.40 and we’re certainly positioned to return to robust growth.”

“I would expect the transaction to close soon, potentially as early as next week.”

“So that will be less of a headwind to growth in 2025 than it was in 2024.”

“And we remain on track to submit a regulatory application for BoNT/E near the end of this year.”

“And we remain on track to begin a Phase 3 study later this year in third-line CRC.”

“So, we’re quite comfortable that we can continue to grow our share, which has been growing very, very nicely, particularly on the MBRX side, and certainly, face the competitive dynamics and navigate those as we go forward.”

“With respect to orals, we did do this deal with Landos and this is our NX-13asset, which we’ll anticipate a readout end of this year, beginning of next year.”

“So we saw that partial reversal of that destocking event and then we will see that continue to unwind throughout the course of the year, especially as we have some of our larger promotional activities and the back half of the year with Botox Day and Juvederm Day, we do see typically an inventory, a stocking uplift from those activities.”

“Although, when we think about price, price is a factor that we’ll be looking for the second half of the year, which will give us some favorable pricing dynamics.”

“So we are anticipating very robust and consistent access for Skyrizi and Rinvoq.”

“I would say that, at a macro level, we do expect to maintain parity access next year for Humira for a meaningful portion of lives across all of the channels.”

“However, that expansion will be roughly offset by the fact that in 2025, we’ll have a full year of interest expense associated with the financing for Cerevel and ImmunoGen.”

“We’ve talked about that operating margin expansion will be on the SG&A line as we leverage the revenue growth and drive efficiencies and we have a good history of doing that.”

“I think when you model that, you can think about those several points as approximately a 3% headwind to growth.”

“And we do expect another step down in absolute dollar terms in 2025 for that erosion as well.”

“And when you think about robust growth, we characterize robust growth to be above industry average growth, which we see in the low-single digits.”

“We have indicated that we’ll be returning to robust revenue growth, despite the headwinds from Medicare Part D redesign and continued Humira erosion.”

“And we forecast our non-GAAP tax rate to be approximately 16.3%, also reflecting the impact of IPR&D.”