Core Insights - AbbVie reported strong year-on-year revenue growth of 9.1%, reaching $15.78 billion, surpassing analyst estimates of $15.58 billion [6] - The growth was primarily driven by the immunology and neuroscience portfolios, particularly from products like Skyrizi and Rinvoq, alongside double-digit expansion in neuroscience products [1][6] - Despite exceeding Wall Street revenue and profit estimates, the market reacted negatively due to a significant drop in operating margin, which fell to 12.1% from 26.5% year-on-year [1][6] Financial Performance - Adjusted EPS was reported at $1.86, beating analyst estimates of $1.78 by 4.2% [6] - Adjusted EBITDA reached $5.07 billion, with a margin of 32.2%, exceeding analyst expectations of $4.86 billion [6] - Management lowered its full-year Adjusted EPS guidance to $10.63 at the midpoint, reflecting an 11.3% decrease [6] Market Dynamics - CEO Rob Michael highlighted the impact of challenging economic conditions on discretionary spending and emphasized the company's focus on core therapeutic areas [1] - Analysts raised concerns regarding evolving Pharmacy Benefit Manager (PBM) models and IRA price negotiations, with management asserting that these factors would not affect long-term guidance for key drugs [6] - Competitive dynamics in the IL-23 market were discussed, with indications that category expansion is benefiting Skyrizi [6] Aesthetics Segment - The aesthetics segment faced headwinds, with management acknowledging market softness for products like BOTOX and Juvederm [6] - Analysts inquired about the U.S. aesthetics market share, with management signaling that guidance is likely to be exceeded despite current challenges [6] Future Outlook - Management discussed the potential for recovery in the aesthetics market, pointing to consumer confidence and new product launches as leading indicators [6] - The company remains engaged with U.S. policymakers on issues related to access and innovation, indicating a proactive approach to navigating regulatory challenges [6]