AbbVie Inc.

Good morning. Thank you for standing by. Welcome to the AbbVie Fourth Quarter 2022 Earnings Conference Call. All participants will be able to listen only until the question and answer portion of this call. You may ask a question by pressing star 1 on your phone. I would now like to introduce the call to Ms. Liz Shea, Senior Vice President of Investor Relations. You may proceed.

Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer, Rob Michael, Vice Chairman and President, Jeff Stewart, Executive Vice President, Chief Commercial Officer, Carrie Strom, Senior Vice President and President, Allergan Aesthetics, and Tom Hudson, Senior Vice President, R&D and Chief Scientific Officer. Joining us for the Q&A portion of the call are Scott Rentz, Senior Vice President and Chief Financial Officer, and Rupal Thakkar, Vice President, Global Regulatory Affairs. Before we get started, I'll note that some statements we make today may be considered forward-looking statements based on our current expectations. ABBYY cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. ABBYY undertakes no obligation to update these forward-looking statements except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.

Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll provide perspective on our overall performance and outlook, and then Jeff, Carrie, Tom, and Rob will review our business highlights, pipeline progress, financial results, and 2023 guidance in more detail. Today we reported another strong quarter and a highly productive year for AbbVie. We delivered full year 2022 adjusted earnings per share of $13.77, reflecting double-digit growth. Total net revenues of more than $58 billion were up 5.1% on an operational basis, driven by impressive growth from Skyrizzy and Rynvogue, which generated nearly $7.7 billion of combined sales in 2022. As I reflect on our 10 years as an independent company, we have made excellent progress evolving AbbVie into a leading biopharmaceutical company. We have successfully created a well-diversified portfolio with multiple growth platforms in attractive and sustainable markets. This includes the rapid development and launch of Skyrisian RENVOC across all of Humira's major indications, plus a distinct new indication, atopic dermatitis. We anticipate these two products will collectively exceed the peak revenues achieved by Humira by 2027, with significant growth expected through the end of the decade. We are also building a substantial portfolio of novel heme and solid tumor assets for oncology. The anticipated launches and indication ramp of several new products, like venetoclax in multiple myeloma and MDS, epicritimab across B-cell malignancies, and TelisoV, a new treatment option in non-small cell lung cancer, will collectively support growth in the middle of the decade. We expect continued robust performance in neuroscience, with our leading on-market portfolio to address migraine and psychiatric conditions, as well as a promising pipeline for neurodegenerative diseases. And we see significant long-term growth potential for aesthetics, an extremely attractive market, which is under-penetrated, where we have the leading position in toxins with Botox Cosmetic, and fillers with Juvederm. Second, we've established a productive, innovation-driven R&D organization with a robust pipeline. Our R&D engine has discovered and developed five major billion-dollar-plus medicines over the past decade. We are committed to pursuing new ways to address patients' most serious health issues and have more than doubled our annual R&D investment since our inception. The breadth and the depth of our pipeline, which now includes more than 80 programs across all development stages, further supports our long-term growth outlook. Lastly, we have maintained a strong financial position to fully invest in innovative science and commercial initiatives across our therapeutic categories to drive long-term growth. We've also used that financial position to support a robust and growing dividend which we have increased by 270% since our inception. And we have also used it as capacity to pursue value-enhancing business development to augment our existing portfolio and pipeline. With these strong operating characteristics, we remain well-positioned to absorb the impact from the Umaira LOE and quickly return to robust sales growth in 2025. As it pertains to AbbVie's near-term outlook, we anticipate 2023 adjusted earnings per share of $10.70 to $11.10. This guidance range contemplates the expected headwind from direct biosimilar competition with U.S. Unera sales down approximately 37%, which is at the lower end of our previous erosion projection, of 35 to 55 percent. Robust performance from Skyrizzy and Renvoke, which we expect will collectively generate $11.1 billion of revenue, reflecting year-over-year growth of nearly 45 percent. Revenue pressure in Hemant, with recent challenging market and share dynamics impacting in Bruvica, partially offset by strong sales growth of Venetoclax. double-digit revenue growth of neuroscience, including accelerating sales of Valar with our recent MDD approval. Our guidance also contemplates the transient economic impact, primarily in the U.S., on aesthetic procedure growth, affecting near-term performance for toxins, fillers, and body contouring. Given that it's difficult to predict the duration of economic and inflationary pressures, we have not assumed the recovery in 2023. And finally, this guidance reflects increasing investments in both R&D and SG&A to support our long-term growth opportunities. It's also important to note that while it is possible 2023 could outperform our guidance, depending upon the shape of the EMEA erosion curve, We don't anticipate that 2024 earnings will be lower than the $10.70 floor of the 2023 adjusted earnings per share guidance, which we are issuing today. In summary, we are executing well across our business and see numerous opportunities for our diverse portfolio to drive long-term growth. With that, I'll turn the call over to Jeff. Jeff?