Financial Data and Key Metrics Changes - The company has transitioned from a leading generics company to a biopharma company, showing significant progress in financials and business setup over three years [2] - AUSTEDO's peak sales forecast has increased from $1.4 billion to over $2 billion for the current year, with expectations of exceeding $3 billion in peak sales [2][3] - The gross margin is projected to grow from approximately 48% in Q1 2023 to around 54% by the end of the year, with further growth expected to reach 57% to 58% by 2027 [10][11] Business Line Data and Key Metrics Changes - The innovative product portfolio, including AUSTEDO, UZEDY, and AJOVY, has shown strong growth, with AUSTEDO growing at 33% in Q3 [11] - The generics business has stabilized and grown over the last three years, contributing to overall EBITDA growth [4] Market Data and Key Metrics Changes - The company anticipates losing over $1 billion in sales from the generic Revlimid next year, but is committed to growing EBITDA through innovative products and cost-saving programs [7][8] - The market for AUSTEDO remains largely untreated, with 85% of patients not receiving treatment, presenting a significant growth opportunity [23][27] Company Strategy and Development Direction - The company is focused on a "Pivot to Growth" strategy, emphasizing innovation and the development of high-margin products [2][4] - The launch of olanzapine is expected to be a significant growth driver, with a projected market size of $1.5 billion to $2 billion for the schizophrenia franchise [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow EBITDA despite the loss of Revlimid sales, highlighting the importance of innovative product launches [8][9] - The company is optimistic about the impact of the IRA on AUSTEDO, forecasting $2.5 billion in sales by 2027 [16][17] Other Important Information - The company is actively pursuing partnerships for biosimilars, aiming to establish a portfolio of 25 biosimilars to drive growth [58][59] - Management emphasized the importance of maintaining price discipline while ensuring access to innovative products [42][43] Q&A Session Summary Question: How should we think about 2026 in terms of pushes and pulls? - Management indicated that 2026 is crucial as the company will lose significant sales from Revlimid but is committed to growing EBITDA through innovative products and cost-saving measures [7][8] Question: What are the underlying drivers for the $2.5 billion guidance in 2027? - The company highlighted the large untreated market for AUSTEDO and the importance of patient education and adherence programs to drive growth [23][24] Question: How does the company view the competitive landscape for AUSTEDO? - Management stated that they prioritize long-term value over immediate access, maintaining discipline in pricing strategies [21][22] Question: What is the potential impact of the olanzapine launch? - The company expects olanzapine to be a significant growth driver, with a unique position in the market as the only long-acting treatment for schizophrenia [35] Question: How does the company plan to allocate capital moving forward? - Management emphasized the importance of efficient capital allocation to support innovation and growth, reducing investment in generics to focus on high-return opportunities [65][66]

Financial Data and Key Metrics Changes - The company has transitioned from a leading generics company to a biopharma company, showing significant progress in financials and business setup over the past three years [2] - The gross margin is expected to grow from approximately 48% in Q1 2023 to around 54% by the end of the year, with projections of 57%-58% by 2027 [10][11] - The innovative portfolio grew by 33% in Q3, contributing to overall financial improvements [11] Business Line Data and Key Metrics Changes - Austedo, a key product, is projected to exceed $2 billion in sales this year, with peak sales expected to surpass $3 billion [2][17] - The generics business has stabilized and grown over the last three years, despite the loss of over $1 billion in sales from generic Revlimid next year [4][8] - The company is focusing on high-margin innovative products like Austedo, Uzedy, and Ajovy to drive EBITDA growth [8][9] Market Data and Key Metrics Changes - The company anticipates a significant opportunity in the untreated market for Austedo, with 85% of patients currently untreated [23] - The competitive landscape for Uzedy is described as congested, yet the product has shown strong performance due to its unique profile [39][40] Company Strategy and Development Direction - The company is committed to its "Pivot to Growth" strategy, focusing on innovative products and improving operational efficiency [2][4] - Future product launches, including Olanzapine and Duvakitug, are expected to drive significant revenue growth and enhance the product portfolio [35][46] - The company aims to maintain price discipline while ensuring access to its products, balancing value and market penetration [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA growth despite the loss of significant sales from generics, emphasizing the importance of innovative product launches [8][9] - The company is optimistic about the impact of the IRA on its products, particularly Austedo, and is focused on patient engagement and adherence programs [17][24] - Management highlighted the importance of regulatory changes in the biosimilars market as a potential tailwind for future growth [56][61] Other Important Information - The partnership with Sanofi for Duvakitug allows the company to share development costs and profits, enhancing its financial outlook [49][50] - The company is focusing on capital allocation to ensure efficient investment in its innovative pipeline while reducing investment in generics [66][67] Q&A Session Summary Question: How should we think about 2026 in terms of pushes and pulls? - Management indicated that losing over $1 billion in sales from generics will impact the top line, but they are committed to growing EBITDA through innovative products and cost-saving programs [7][9] Question: What are the underlying drivers for the $2.5 billion guidance in 2027? - The company highlighted the significant untreated market for Austedo and the importance of patient education and adherence programs to drive growth [23][24] Question: How does the company view the competitive landscape for Austedo? - Management emphasized a disciplined approach to maintaining value while ensuring access, focusing on the quality of the product and physician engagement [21][42] Question: What is the potential impact of the label expansion into bipolar for Uzedy? - While the label expansion may not significantly impact peak sales, it enhances the brand's overall perception and could contribute to growth [44] Question: What are the expectations for the Duvakitug product? - Management expressed excitement about Duvakitug's potential, projecting it could be a $3-$5 billion product based on its competitive advantages [47]