Geoffrey Meacham, the operator of the event, introduces the CEO, Rob Michael, as well as other members of the company. Meacham asks about the impact of HUMIRA erosion on the company's outlook and growth platform, to which Michael responds that they are confident in the performance of their growth platform and expect above industry average growth next year and high single-digit compound growth in the future. He also mentions the success of their products SKYRIZI and RINVOQ in capturing market share.

The speaker discusses the potential for growth in dynamic share and TRx share for SKYRIZI and RINVOQ, citing strong performance and differentiation in head-to-head trials. They also mention the impact of the HUMIRA U.S. biosimilar entry and how it was anticipated and factored into their guidance. Despite this, the company is still returning to growth thanks to their strong performance and pipeline in oncology, including exciting programs in BCMA CD3 bispecific and ADC.

Cerevel's addition of emraclidine and tavapadon to their neuroscience pipeline has given them depth and confidence in their ability to drive growth in the next decade. SKYRIZI and RINVOQ are performing exceptionally well, with an expected UC approval for SKYRIZI in the middle of this year and a wave of indications for RINVOQ in the '26-'28 timeframe. These indications are expected to add a few billion dollars in peak revenue for RINVOQ and will lead to another inflection in growth for both assets. The company expects very robust growth for SKYRIZI and RINVOQ until at least '33, with an upped guidance for '27 to greater than $27 billion for these two assets.

Robert Michael discusses the impact of the Part D benefit changes on the company's growth. He explains that while there will be a volume offset for 1/3 of patients, the cost share will still impact certain areas of the company's business. He estimates that the changes will be worth several points of growth next year, but the company is still expected to deliver robust growth. He also mentions that investments focused on negotiation impact and the selection of IMBRUVICA for negotiation will provide a natural offset. Additionally, HUMIRA will be declining, so there will not be another step function in terms of impact beyond 2025.

The company is not expecting any major LOEs for the rest of the decade, and with the growth platform and the impact of IRA, they are expecting high single-digit compound growth. The recent head-to-head trial against STELARA has shown significant results and has helped SKYRIZI's performance around the world. The acquisition of the ADC platform in oncology is expected to bring significant momentum to SKYRIZI and RINVOQ in the coming years.

The speaker discusses how the recent deal has opened up opportunities for the company to expand into other areas, such as ADCs. They mention a backup asset in the clinic for ovarian cancer and a Phase III trial for colon cancer. They also note the potential for combining their ADC with other commonly used treatments.

The company is seeing high levels of response in a refractory patient population and will enter Phase III of that segment this year. They are also targeting ovarian, colon, and lung cancer, with the potential to expand into earlier lines of therapy and combine with other therapies in a tolerable way. The maintenance ovarian market is seen as a bigger opportunity, with potential for growth in both platinum-resistant and sensitive populations.

The company sees the expansion of ELAHERE as a multibillion-dollar opportunity and plans to invest resources into its promotion and education. They have not redeployed resources from other products, but plan to supplement their existing team to target a wider range of physicians and reach more patients through digital channels. The acquisition of ImmunoGen has also provided them with an early entry into solid tumor treatment and allowed them to invest in ADCs.

The company has brought in a solid tumor commercial infrastructure to complement their hematology footprint. They saw this as an acceleration of their investment. The company has seen strong data in Parkinson's with tavapadon and expects to see the results of their Phase III study this year. They anticipate approvals for VYALEV or 951 this summer and see no overlap with tavapadon. KarXT is seen as a zero-sum game by investors.

The speakers are discussing the potential market share for muscarinic agents in the treatment of schizophrenia. They believe that KarXT and emra both have strong profiles, but it is not a zero-sum game and having multiple options will benefit patients. Emra has an advantage with its once-daily dosing and lack of food effect, making it easier for patients to take. They also believe that having multiple players in the market will be positive for patients.

Geoffrey Meacham and Jeffrey Stewart discuss the potential for step edits with the newer muscarinic agents, but believe that their better clinical profile will lead to longer duration of use. They also discuss the growth of VRAYLAR, which is largely driven by share capture in the bipolar disorder and adjunctive MDD markets. Geographic expansion is minimal, making it primarily a U.S. story.

The company's recent market research shows that their product has the highest perceived value in the bipolar segment and is tied for #1 in the adjunctive MDD segment, making it a strong contender for gaining market share. The U.S. toxin market has also returned to growth, with the company's aesthetics business expected to see high single-digit growth. Despite concerns about the impact of a competitor's product, the company has maintained its share in the market and even seen an increase in share with the launch of new products. Overall, the fundamentals of the aesthetics business are strong.

In the first quarter, there was a shift in promotions which affected revenue, but the company is confident in meeting their outlook for the year and long-term growth expectations. They expect the aesthetics market to grow high single digits, with potential for additional growth from new indications for Botox and innovative products like short-acting BoNT/E and regenerative fillers. These innovations could also help overcome barriers and increase market growth and share capture.

The company's focus on deleveraging in the near term has not stopped them from actively investing in opportunities to drive growth in the next decade. They have recently made deals to deepen their core in areas such as neuroscience, immunology, and oncology, and are particularly interested in multispecifics, ADCs, and in-situ CAR-T. They have also announced collaborations in these areas, such as the Gilgamesh collaboration for mood and anxiety disorders and the Tentarix multispecifics platform.

The company is focusing on smaller-sized opportunities to bolster their pipeline for long-term growth, not because of balance sheet limitations, but because of their strategic focus on investing for the long term. While they are open to adding a new therapeutic area if it fits their profile and can provide a good return on investment, their priority is on building depth in their core therapeutic areas.

This summary was generated with AI and may contain some inaccuracies.