Tim Power: Right. Let’s go to the next question please, Andrea.
Operator: The next question comes from James Sheehan of Deutsche Bank. Please go ahead.
James Sheehan: Good morning, guys. Thank you for taking the question. Just wanted to circle back on Zeposia. Adam, I think you mentioned earlier or late last year the access was still improving for UC. Is that access going to improve meaningfully this year or is it going to take a little bit more time, sort of like a similar situation to so tick two and psoriasis?
Adam Lenkowsky: Yeah. Thanks for the question. So overall we’re seeing solid and continued quarterly and year-on-year growth. As David shared, we showed 66% growth versus prior year. And I think Zeposia has been really tail of two launches. MS performance amongst the oral competitors is solid. We expect continued share growth there. And we’re growing in the face of a declining oral market in favor of B-Cell agents. We continue to have an opportunity for continued growth in UC, which as you know, is a very competitive know. We’re making progress as volume and share are increasing. We are focused on expanding the breadth of prescribers. We’re continuing to position Zeposia earlier in lines of treatment and the opportunity for additional indications like Crohn’s disease, the data read out later this year will also add to the sales for Zeposia.
So again, we do expect to see continued growth for Zeposia as patients continue to accumulate and physicians continue to gain experience with the product.
Tim Power: And maybe time for one or two more. Let me go to next question for now. And then one after that, Andrea.
Operator: Okay. The next question is from Akash Tiwari of Jefferies. Please go ahead.
Akash Tiwari: Hey. Thanks so much. Can you comment on what drives your confidence on the Alzheimer’s psychosis trials reading out positively? Any color on what percent of patients you think we’ll be able to get on the high-dose of KarXT? And what percent of dropouts do you think will occur in the treatment arm through these the depth trials? Should it be roughly similar to what we’ve seen in the schizophrenia study? Thank you.
Chris Boerner: Samit?
Samit Hirawat: So thank you. Thank you for the question, Akash. Look, our confidence in trial remains very high. And the reason for that is if you go back to the first publications of the Xenomaline trial, that was a study that was published, I think in 1997, in fact. And if you look at that data, that was a positive trial, which tells us that M-1 M-4 muscular agonist (ph) do work over there. The obvious issue over there was the toxicity due to the peripheral muscarinic agonism that was seen. So that combination with Trospium has led to obviously better outcomes as we saw in schizophrenia. The trial in AD psychosis is right now at the beginning stages, so the doses are being tested right now. So it’s hard to comment on what the dose utilization would be, whether patients will be on the highest doses.
It’s too early to tell. We’ll have to get into it. But of course, Karuna and us, we continue to operate as separate companies right now. And once the transaction closes, then we’ll be able to get deeper into it and look at what the future looks like. So we’ll be talking about it at a later date. Thank you.
Tim Power: And let’s go to our last one please, Andrea.
Operator: The next question comes from Rajesh Kumar of HSBC. Please go ahead.
Rajesh Kumar: Hi. Good morning. I appreciate that you can’t obviously you know give any color on Eliquis price negotiations. But when we look at your margin guidance this year, I’m assuming that you have made an assumption and that is implicit in that guidance, an outcome of this negotiation, or should we expect, as we get more clarity, to adjust your guidance from what you learn?
Adam Lenkowsky: So, Rajesh, thanks for the question. I’ll try to start and then I’ll turn it over to David to just talk a little bit about how we’re thinking about margin. We’re not going to be able to give any additional discussion around where we sit with IRA on Eliquis. We got the initial offer. We’re going to follow the process they have and the price will be public in September and we won’t be providing additional details around that. But maybe, David can talk to you a bit about how we think about margins generally.
David Elkins: Just overall, as we guide it, we anticipate gross margins to be about 74% this year. And that’s really driven by the LOE brands coming down. But as the growth portfolio continues to increase, obviously that’ll help offset longer term where those gross margins are going. We also said that our operating expenses grow in the mid low-single digit range. And with that, really, there’s a lot going on there that, as we said on Karuna, we’re going to find savings and efficiencies in order to cover those expenses. But also, as Adam indicated, and I said in opening remarks, we’re increasing our investments in Camzyos and Sotyktu. So with that, we’re finding from our legacy brands, refundling those resources into that. And all of that said, we’ll be able to deliver a margin greater than 37% for the year, which we feel very confident about.
Tim Power: Thanks, David. So I think that was it for the time that we have. But I thank you all for joining the call today. I know it’s a very busy day for all of you. Hopefully, you get a sense from the discussion this morning that we exited 2023 with good momentum to capitalize on the strategy that we have articulated about how we’re going to navigate this decade. And of course, we look forward to sharing the progress against that on future calls. And with that, we’ll close the call. And as always, the team is available to answer any questions following today’s discussion. And I hope all of you have a very good day and a good weekend. Thanks.
Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
