Arvind Sood: Okay. The next question is from Umer Raffat from Evercore and he has 2 questions. The first 1 is for you, Dave, on OX40 and the monthly dosing in Phase III. He said and I don’t see an arm investigating extended intervals quarterly or biannually. I’m just trying to tie the Phase III dosing interval versus the durable efficacy seen through 6 months post last dose. And the second question is for you, Peter, that the tax rate stepped up from 14% to 18% to 19%. Just wanted to get some additional color.
David Reese: Yes. Regarding the dosing of rocatinlumab. As we’ve indicated before, we will explore different dosing paradigms here. And as that suite of Phase III trials fully launches, I think it will become clear what we’re looking for there based on both the mechanism of action of the molecule as well as patient convenience. Peter?
Peter Griffith: Umer, good question on tax. Again, it’s just a change in what I would say the real estate on the P&L which is the PRET moves from the cost of sales line down to income tax expense in connection with the change in Puerto Rico for us from a PRET to the actual income tax in Puerto Rico which began here in 2023. So that’s the nature of that change and that’s where the 18% to 19% comes in from where we’ve been here historically.
Arvind Sood: Okay. The next question is from Jay Olson of Oppenheimer. And Jay is asking, can you talk about your plans for geographic diversification? It seems like ex U.S. revenues have become a small percentage of Amgen’s total revenues over the past few quarters. And we were wondering what underlying dynamics drove that shift in geographical mix and if there are any future launches or other dynamics that might push the geographical mix back in favor of ex U.S. growth.
Murdo Gordon: Yes, we are actually very pleased with the expansion internationally of the Amgen footprint being in over 100 markets. We continue to launch products and secure reimbursement around the world. I talked about LUMAKRAS. And most recently in China, we’ve been able to secure national reimbursement drug listing for both Prolia and Repatha. Our Japanese affiliate is growing well. In the recent history, I think what you’re seeing is a function of just timing of launches coming a bit earlier in the U.S. and also some of our partnering products. I think longer term, what we’ve got is a very interesting portfolio of products that will continue to make their way around the world. The announced Horizon acquisition has a very large opportunity internationally.
And we see our JPAC region is actually our fastest-growing potential opportunity longer term. So I wouldn’t look at short-term movement from quarter-to-quarter. The long-term prevailing trend is that we will grow quickly outside the United States.
Arvind Sood: Okay. The next question is for you, Murdo, from Michael Schmidt of Guggenheim Partners. And he’s asking, how confident are you in achieving low double-digit Otezla growth in 2023 and beyond, given the current pattern of essentially flat sales since 2020 of $2.2 billion?
Murdo Gordon: Yes, I think we remain quite confident in our long-term growth of Otezla. We are in a period where there’s a lot of new product entrants in the market competing for new patient starts. I think the unique positioning of the product, as I mentioned, allows us to source a very large pool of patients. And our coverage around the world and particularly in the U.S. from an insurance reimbursement perspective allows us to penetrate that market. So we feel very good about the continued prospects to grow Otezla.
Arvind Sood: Okay. The next question is from Robyn Karnauskas from Truist Securities. So she’s asking, big picture, your guidance implies potentially flat growth. Given biosimilar pressures and pricing pressures, do you think 2023 is a trough year? And regarding the guidance range, can you give pushes and pulls on the biosimilar range?
