Richard Francis: Yes, I’ll take that. Thanks for the question, Umer. We have launched Korlym, we launched that, I think a week ago, so that is launched in the market, so I think that answers your question.
Umer Raffat: Thank you very much.
Richard Francis: Thanks Umer.
Operator: Thank you. Our next question comes from David Amsellem of Piper Sandler. Your line is now open, please go ahead.
David Amsellem: Hey, thanks. One question on Austedo and one on Uzedy. On Austedo, wanted to get a sense for the level of sales and marketing investment and DTC investment that you’re thinking about the product longer term. Certainly your competitor has spent pretty heavily promoting and supporting Ingrezza, so how do you think about that and how does that tie into your long term thinking regarding the trajectory of operating margins? That’s number one. Then number two on Uzedy, I think you mentioned the $80 million for ’24. Just wanted to drill down on where these patients are coming from, are these patients that are switching from other LAIs or are they naïve to LAIs? Are you getting switches from, say, Invega, one of the Invega products? Just wanted to get a sense for where your business on Uzedy is coming from in these early days. Thank you.
Richard Francis: Thanks David. Thanks for the question. On Austedo, you’re right – we have invested significantly in Austedo. We have that capability, so it’s not just about self-source, it’s about bringing in pharmaceutical expertise, so we’ve done that and that, I think has been a significant contributor to the acceleration of the product’s continued performance. We aim to make sure that we are competitive and maximizing the revenue of Austedo, but also knowing that, to the last part of your question, we want to be driving improvement in our operating margin, and we see the ability to do that definitively with Austedo and the sales and marketing we’ve put into it. As we talk about the $2.5 billion in 2027, this is going to be a major contributor to us driving our top line, but particularly our OP, so we have modeled that out extensively.
With regard to Uzedy, what we’re seeing right now–and to highlight, this is relatively small data, but we’re seeing a considerable amount of patients coming from oral risperidone, so a lot of patients are going straight from the oral to our long acting Uzedy. But when it comes to choosing a long acting risperidone, a significant proportion of those are going onto Uzedy as well, so I think that just highlights what Eric pointed out, how much the physicians like this product profile, primarily the fact that you can get onto therapeutic levels within six to 24 hours, which when you’re having a schizophrenic episode is really critical, so I think that’s why we’re seeing that enthusiasm. ’24 is about taking that enthusiasm and the access and converting it into scripts, so that’s what we’re doing.
Hopefully that answers your question, David.
David Amsellem: Yes, that’s helpful. Thank you.
Richard Francis: Thank you.
Operator: Thank you. Our next question comes from Chris Schott of JP Morgan. Chris, your line is now open. Please go ahead.
Chris Schott: Great, thanks so much. Just two questions for me. Just following up on that opex comment, you’ve obviously stepped up opex, you’re seeing really nice core growth in these core drivers, you’ve got pipeline that’s progressing. I’m just trying to get my hands around opex beyond 2024, so I guess, is this kind of 27% to 27.5% range that we’re seeing this year a good level for the next few years, or are you now actually reaching an absolute spend level where we can maybe think about some opex leverage looking beyond ’24? My second question was just a little bit more color on the international generics growth drivers. It seemed like that business was particularly strong in ’23. I think from your comments, you’re assuming similar growth this year, and would just love a little bit more color on the dynamics you’re seeing in those markets. Thank you.
Richard Francis: Okay, thanks for the questions, Chris. On the first one, I’ll tag team a bit with Eli. I think just to give you a high level on the opex, one of the thing we’ve realized here at Teva, we have a significant opportunity in front of us here and now with our innovative portfolio on the market – Uzedy, Austedo and Ajovy, and a great pipeline that Eric just talked about. It’s really important we invest in those to optimize them and bring them to market as soon as possible, so that’s what we’re doing. Now, we absolutely commit and believe we’re going to hit our 30% margin in 2027, and investing now allows us to change the trajectory of those products, the speed that we bring them to the market – Olanzapine potentially end of ’25, early ’26, and that obviously changes once again not only our portfolio mix but the gross margin that they deliver, which obviously falls down to the OP.
We have thought this through very carefully about that and how we invest, and then when we actually start to see some significant pick-up on our bottom line. But I’ll maybe give the specifics to Eli as well.
Eli Kalif: Thanks Richard, and thanks Chris for the question. Just to continue Richard’s answer, in terms of absolute numbers, we don’t see that one too much expand dollar-wise more than what we have in ’24 to ’25 onwards, and as we grow with revenue, of course the percentage will go down but currently for this year, that’s the range. We also would like to remind that there are certain elements in our R&D and our sales and marketing that are still considered a variable element, that we had some level of control in terms of prioritization and timing on that level, so this is still a controllable item from our perspective.
