Financial Data and Key Metrics Changes - For the full year 2025, the company recorded revenues of $62.6 billion, a 2% operational decline from $63.6 billion in the previous year. Excluding COVID-19 products, operational revenue growth was 6% [29] - Adjusted gross margins for the full year expanded to 76%, aligning with expectations, while diluted EPS was reported at $1.36 compared to $1.41 last year, and adjusted diluted EPS increased to $3.22 from $3.11 [29][30] - In Q4 2025, revenues were $17.6 billion, a 3% operational decline year-over-year, primarily due to a 40% decline in COVID product sales. Non-COVID product performance grew 9% operationally [30][31] Business Line Data and Key Metrics Changes - Recently launched and acquired products generated $10.2 billion in revenues for 2025, growing approximately 14% operationally [30] - The decline in COVID product sales was attributed to reduced demand for COMIRNATY and PAXLOVID due to lower infection rates [30] Market Data and Key Metrics Changes - The company anticipates stable revenue contributions from its non-COVID product portfolio, with an expected revenue compression of approximately $1.5 billion due to anticipated generic entry in 2026 [39] - The market for obesity treatments, particularly for the ultra-long-acting GLP-1 receptor agonist, is projected to be $150 billion, with significant opportunities in both mature and emerging markets [51] Company Strategy and Development Direction - The company aims for industry-leading growth as key products lose patent or regulatory exclusivity in the coming years, focusing on maximizing the value of in-line product portfolios and accelerating pipeline development [7][12] - Strategic acquisitions, including Seagen, Metsera, and Biohaven, are seen as transformative for the company, with a commitment to invest in R&D and maintain a robust dividend [7][12][37] - The company is scaling artificial intelligence across various functions to improve productivity and accelerate innovation [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite challenges, highlighting the resilience of the business and the successful execution of strategic priorities [5][27] - The company expects to face headwinds from loss of exclusivity (LOE) for several products but remains focused on investing in key assets to drive growth by the end of the decade [39][40] Other Important Information - The company achieved significant cost savings through manufacturing optimization programs, with expectations of additional savings in the coming years [31][34] - The company plans to advance over 20 pivotal studies in 2026, targeting potential approvals starting in 2028 for its obesity portfolio [23][25] Q&A Session Summary Question: Can you elaborate on the tolerability seen in VESPER-3 data? - Management indicated that the tolerability data will be shared at ADA, noting that the distribution of adverse events was encouraging, with no significant increase in discontinuations when switching to monthly dosing [43][45] Question: What role do you see for the drug with solid weight loss but potentially below competitors? - Management believes that the combination of competitive efficacy and a lower medication burden through monthly dosing will resonate well with patients and providers, enhancing the drug's market potential [49] Question: Did the placebo arm gain or lose weight in VESPER-3? - The placebo arm remained stable, showing no significant weight gain or loss, with detailed data to be presented at ADA [65] Question: What are the expectations for the upcoming phase III studies? - Management expressed confidence in the ongoing studies, highlighting the promising data observed so far and the potential for differentiation in the market [84][90]

Financial Performance - Q3 2025 revenues were $16.7 billion, a 7% decrease compared to Q3 2024, primarily due to a decline in COVID-19 product revenues[37] - Adjusted diluted EPS for Q3 2025 was $0.87, a 16% decrease compared to $1.06 in Q3 2024, impacted by a $1.35 billion Acquired In-Process R&D charge related to the 3SBio licensing agreement[37] - The company reaffirms its 2025 revenue guidance of $61.0 to $64.0 billion and raises and narrows its adjusted diluted EPS range to $3.00 to $3.15[47] Strategic Initiatives - The company reached an agreement with the U S Government to provide greater clarity and reduce uncertainty around tariffs and pricing[7, 8] - The company proposed acquisition of Metsera to accelerate and expand presence in obesity with highly differentiated medicines[7, 8] - The company closed of 3SBio Licensing Agreement, which is a potential foundational backbone in the company's Oncology portfolio[7, 8] Pipeline Development - PADCEV + pembro significantly and meaningfully improved overall and event-free survival vs surgery alone[11] - Single Arm Phase 2 PHAROS Trial OS showed 67% at 49 months, 54% at 47 months, 49% at 45 months[13] - XTANDI + Leuprolide showed HR (95% CI): 0.597 (0.444-0.804) P = 0.0006[17] Cost Management - The company expects $7.2 billion in total net cost savings by the end of 2027 while also reinvesting $500 million to strengthen R&D productivity[43]

Financial Performance - First quarter 2025 revenues reached $13.7 billion[26], a 6% decrease compared to $14.9 billion in the first quarter of 2024[28], primarily due to a decline in Paxlovid revenues[28] - Adjusted diluted EPS for the first quarter of 2025 was $0.92[26], a 10% increase compared to $0.82 in the first quarter of 2024[28], driven by operating efficiency and favorable global income tax resolutions[28] - Adjusted Cost of Sales as a percentage of revenues decreased by 1.5 percentage points, from 20.4% in Q1 2024 to 18.9% in Q1 2025[28], driven by favorable revision of accrued royalties and favorable FX[28] - Adjusted SI&A expenses decreased by 12% to $3.0 billion[28] from $3.5 billion[28] in the first quarter of 2024, reflecting productivity improvements and lower spending on COVID-19 products[28] - Adjusted R&D expenses decreased by 12% to $2.2 billion[28] from $2.5 billion[28] in the first quarter of 2024, driven by pipeline focus and optimization[28] Capital Allocation and Cost Savings - The company reinvested $2.2 billion in internal R&D in the first quarter of 2025[30] - $2.4 billion was returned to shareholders in the first quarter of 2025[30] - The company expects $7.2 billion in total net cost savings by the end of 2027[34], while reinvesting $500 million to strengthen R&D productivity[34] Strategic Priorities and Pipeline - The company reaffirms its 2025 financial guidance, with revenue expected to be in the range of $61.0 to $64.0 billion[35], and adjusted diluted EPS expected to be in the range of $2.80 to $3.00[35] - The company anticipates 4 regulatory decisions and 9 Phase 3 readouts in 2025[14]