I would now like to introduce Arvind Sood, Vice President of Investor Relations. Mr. Sood, you may now begin.
Okay, Laura. Thank you. Good morning, everybody, and thanks for joining us on short notice. Our announced acquisition of Otezla this morning is an important step in adding to our leadership in the information space. To address this in greater detail, I'm joined by several members of our leadership team this morning.
And just a reminder that some of the statements we make today will be forward looking statements and our SEC filings identify factors that could cause our actual results to differ materially. So with that, I would like to turn the call over to Bob Bradbury, our CEO. Bob?
Okay, Arvind, thank you. And let me reiterate what Arvind said, which is thank you for joining us, particularly at such short notice. We're very excited about the opportunity to bring Otezla and the team that has done such a wonderful job with it to Amgen. As a long standing leader in inflammation, having looked at a number of oral anti inflammatories through time, we watched with great interest the success of Otezla and to have an opportunity to acquire a truly innovative and established success like this now while it's still at an early stage in its global life cycle is really unique. And strategically, as I think many of you would agree, this is a great fit for us.
We've been clear that inflammatory disease is one of our focused areas of interest and this molecule clearly offers what we're looking for, which is 1st in class, best in class innovation to make a big difference for patients with serious disease. For patients suffering from plaque psoriasis and psoriatic arthritis in a pre biologic setting, Otezla offers a really attractive option. While we were already a leader in inflammatory disease, there's no question that this deal will strengthen our position in that important therapeutic category and we expect to be a strong owner of Otezla well positioned to capitalize on the full potential of this important medicine. We've been clear that international expansion is an important strategic priority for us and Otezla with approvals around the world offers yet another attractive international growth opportunity, especially in a number of large European markets and Japan. And the timing of this deal is attractive for us as Otezla will fit well alongside our ongoing investments in our biosimilar AMGEVITA business and it will contribute as well to the growth of our recently established presence in Japan.
And one further comment on the strategic fit, we said that we will invest in medicines where we believe there to be a strong case for long term unit volume driven growth. And with IP exclusivity through 2028 in the U. S. And label and geographic expansion opportunities, we think Otezla can deliver that. Organizationally, we don't expect this transaction to be too disruptive.
As transactions go, this has the potential to be more straightforward than most in that it doesn't entail any complex infrastructure integration or redundancy issues. The teams joining us from sales and marketing, development, medical affairs and manufacturing, for example, will fit well with our existing infrastructure capabilities and we look forward to welcoming our colleagues from Celgene and the Otezla team in particular to Amgen. I would add that we're excited about our own pipeline of innovative molecules and we see this transaction as being compatible with our plans for increased R and D investment in that portfolio. Financially, we think this acquisition at a net price of $11,200,000,000 will prove attractive. We expect the returns from it to exceed our cost of capital and see a number of ways for us to add upside value for our shareholders.
The P and L picture is very attractive and we expect the deal to be accretive to our revenue and earnings growth rates
from the get go.
Our balance sheet will remain strong and our cash flows will remain attractive as well. Altogether, even after the deal, we expect to remain in a strong position to invest in our business internally and through business development, while also maintaining our commitment to return capital to our shareholders in the form of buybacks and dividends. As this transaction shows, there are many ways to benefit from the ongoing consolidation in our industry. This opportunity was created for us by industry consolidation and we're happy to have been in a position to capitalize on it. We've been patient in deploying our capital.
I think this deal rewards that patience. In this and any other deals we might consider, we will seek to strengthen our strategic position in the industry and with it our ability to deliver attractive long term growth for our investors. Now let me turn over to David who will
go through some more details. Okay. Thanks, Bob. As Bob mentioned, we have reached an agreement with Celgene Corporation to acquire a Tesla for $13,400,000,000 or approximately $11,200,000,000 net of the present value of anticipated cash tax benefits, which we expect to approximate $2,200,000,000 Based on the established and differentiated position of the product in a growing segment, we expect Otezla to contribute to Amgen's revenue and earnings per share growth immediately from close with acceleration thereafter. Otezla is already a blockbuster product.
With IP exclusivity through at least 2028 in the U. S, it is expected to deliver long term revenue, including at least a low double digit Otezla sales growth on average over the next 5 years. Based on the strength of Otezla coupled with Amgen's well established strength and inflammation, we expect immediate non GAAP EPS accretion. This accretion incorporates growing Otezla revenue as well as the operating cost associated with the commercialization and R and D investments to support Otezla growth, cost to ensure an effective transition and 0.5 percentage point tax increase on Amgen's overall non GAAP corporate tax rate. As is customary, we will provide complete 2020 guidance in our January conference call.
However, as you consider the impact of this acquisition on 2020 financials, it is important to consider several factors. 1st, non GAAP SG and A operating expenses on the 1st full year basis will increase $600,000,000 to $700,000,000 driven by costs associated with ongoing support of OTEZLA and to a lesser extent, the cost to ensure an effective transition in 2020. 2nd, in addition to R and D investments and new indications associated with the OTEZLA, we also currently expect our overall R and D investments to continue to increase in support of a rapidly advancing innovative molecule pipeline in 2020. The combination of these OTEZLA and internal R and D investments will preliminarily increase year over year non GAAP R and D operating expenses by about 500,000,000 dollars I note that somewhat less than half of the incremental non GAAP R and D expense is associated with this transaction. We will finance the acquisition with current balance sheet cash and we expect to retain our investment grade credit rating.
Additionally, Amgen's capital allocation priorities will remain unchanged. 1st, to grow our business through internal investment and business development. 2nd, to maintain an optimal capital to minimize our weighted average cost of capital. 3rd, we will continue to provide capital returns to shareholders through a growing dividend and continued share repurchases. Based on the strength of our balance sheet and continuing strong cash flow generation from our base business as well as this acquisition, we will continue to pursue all of our priorities without interruption.
We anticipate share repurchases in 2020 to be in a range consistent with the share repurchase range between 20 152018 on an annual basis, excluding the tender in 2018. Lastly, the transaction is expected to close by the end of 2019.
Okay.
Thanks. David Reiss is going
to share a few thoughts as well. Dave? Thanks, Bob. I'm very excited about the unique opportunity that Otezla represents. Otezla is a strong strategic fit for Amgen and complements our capabilities in serving patients with chronic inflammatory conditions.
I'm also looking forward to welcoming the many professionals from Celgene around the world that are working for it on OTEZLA and who have through dedicated patient focused established OTEZLA as the leading pre biologic treatment across its approved indications. With their help, we are looking forward to continuing to drive strong growth performance and explore potential new indications for Otezla. Otezla occupies a unique position in treating moderate to severe psoriasis patients. Otezla is the 1st choice therapy for patients not satisfied with topical therapies given its differentiated mechanism of action and established efficacy and safety profile. In psoriatic arthritis, OTEZLA is positioned for use in patients early in disease and or with moderate joint involvement who are unsatisfied with DMARDs.
Importantly, since OTEZLA is administered orally as a pill, it provides a patient friendly alternative to injections or creams. We also plan to continue to provide the comprehensive suite of patient support services to ensure a patient who receives a prescription for Otezla can access Otezla. Otezla also complements our biosimilar portfolio and represents an exciting growth opportunity that will strengthen our presence around the world given Amgen's expanded geographic footprint. OTEZLA is approved in over 50 countries, including major European markets. However, it is launched in only 32 countries to date.
Overall, we are taking Amgen's capabilities in the area of autoimmune disease and making them even stronger by adding a great product in Otezla along with a great team of people that will further enhance our ability to serve many more patients with chronic inflammatory diseases.
Great. Thanks, Dave. Laura, let's go ahead and open it up for Q and A. Maybe you can just quickly review the procedure for asking questions. Yes,
sir. And our first question is from Alethia Young
I guess I wanted to just talk a little bit more about the ex U. S. Opportunities you see for expansion. And then maybe for Dave Reese, a little bit more around the expansion by indication
as well. Thanks.
All right. Why don't
we start with Dave on the
Go ahead. Yes. Thanks Alethia. This is a great question. There are a number of ongoing programs that we think can lead to expanded indications and label enhancement.
These would include importantly mild to moderate psoriasis, an area currently we believe underserved, scalp and genital psoriasis, as well as various pediatric indications such as moderate to severe psoriasis, juvenile idiopathic arthritis, JIA and Behcet's. So we think more to come on the development front and feel very good in terms of the clinical profile and the likelihood of success in those indications.
And Alethia, as I said or as Dave said in his remarks, we have an opportunity to continue to invest in this product and expand internationally. We think it fits particularly well in some of the large European markets, both with our ongoing investments in AmgeVita, but also with our strong existing sales and marketing capabilities. So we look forward to being able to add this to the Amgen in Europe in particular. In Japan, I would also flag that we're excited about the opportunity to add this to what is a new and rapidly growing opportunity for us internationally. So when we look at the business, it grew double digits through the first half of the year in international markets.
And we expect that, again, international volume growth will continue to be an attractive option for us.
Okay, Laura. Let's take the next question.
Our next question comes from Yaron Werber of Cowen.
Yes. Hi, good morning and congrats on the deal. So I got a couple of questions. The first one on IP, what can give us any sense what's the IP ex U. S?
I mean, you mentioned 2028 in the U. S. And then, David, I mean, this to be obviously a highly accretive business unit for you coming in. So it seems to us that the new guidance takes into account with your stability on Enbrel, your view of the future, And it's just not we shouldn't think the 600 or 700 in SG and A unless of, let's say, 250 of the R and D is just or Tesla related. Is that right?
I'm trying to think kind of how much dry powder are you also using because of your confidence in next year? Thank you.
Why don't we do it in 2 parts? David, you take the second half and I'll talk about the IP.
Yes. So in terms of the financial guidance that I offered there, as I said, obviously in January, we'll give the full view of 2020 for the company. So what I decided to do today is offer you some understanding of what we expect the 2020 cost to be associated with this transaction. And then as you picked up on, what we're seeing is that with the acceleration that is developing of our new pipeline, in particular in the oncology area, we're seeing some incremental push for R and D investments for next year. And so given that that continues to develop very nicely, I thought that it would be helpful to also provide that incremental information on our spend for next year.
And I think you've interpreted correctly, which is a little more than half of the R and D spend number that I gave is associated with our own efforts that are already underway internally. And again, in the spirit of always updating you guys as we see trends in the business, that's why I decided to offer that information this morning. So I think the point is, is we think Otezla will be very attractive financially and provide nice returns and cash flows for the company.
And with respect to IP, Yaron, as you know, we feel confident about IP through 2028 in the U. S. And internationally, it's different from one jurisdiction to the next. So I don't want to get into details, but it's not as long in all the international jurisdictions as we think it will be in the U. S.
Okay, Laura. Let's take the next question please.
Our next question is from Michael Yee of Jefferies.
Thanks and congrats on a very nice deal as well. I guess following along on the prior questions, maybe you could talk about Otezla leverage. In other words, where you think the corporate margins are margins on Otezlar versus your corporate margins and how much synergy you can derive? And then if you could talk about the tax benefit that you were referencing from 13% down to 11% what you implied based on that? Thanks.
All right. Why don't we have David tackle those? And David, if you want Murdo to jump in on some of the leverage related issues for the broader commercial franchise.
Yes. That sounds good. Yes. So with regard to the tax benefit, as this is an asset acquisition, we'll have the opportunity then to amortize the intangible over a period of years, which we estimate the amortization to be some $2,200,000,000 Of course, as we're excluding the intangible amortization from our non GAAP results, likewise, this tax benefit will accrue on a GAAP basis only and hence why I mentioned that based on the estimate for the taxability of the ongoing income from the product, we expect to see a modest uptick in the company's overall non GAAP tax rate. So it's simply the math here of being able to get a benefit from the intangible amortization that results in that $2,200,000,000 which we can offset against our very expansive of course other taxable income.
In terms of leverage, we think of this 1st and foremost as there's some very important strategic leverage for the company. And so maybe we'd start there, Murdo, with some comments on that.
Sure. Thanks, David. We're obviously really excited about the fit of OTEZLA in our current in line portfolio. In the U. S, we were able to more significantly represent our portfolio with the dermatology audience.
And we think that that has real complementarity with existing portfolio inclusive of Enbrel. And as you go ex U. S, our biosimilars portfolio, namely AMGEVITA is a very nice fit. And in the big five markets in Europe, we have a good strong presence and good share performance with that. So the additional portfolio of Otezla will be really, really helpful as we expand and continue to strengthen our international footprint.
And lastly, as Dave Reese mentioned, we're pleased with what Otezla can do in our Japanese portfolio given that we'll become an independent company next year.
Yes. So I guess I would just conclude, Michael. I think we were together last week about how we focus in our business development activities and having a view that there's always a best buyer with the best business case. As we said, we focus our efforts in these end market and late stage opportunities in areas where we have a commitment and expertise and this fits very nicely there where we have the ability then to really leverage our own capabilities to drive performance for the business. So we think this fits exactly within that framework.
Perfect. Thanks, guys.
Our next question comes from Mohit Bansal of Citigroup.
Great. Thanks for taking my question. Maybe one question regarding the cost of capital. So you mentioned that the returns could exceed your cost of capital. Could you please give us a sense of where do you see internally your current cost of capital?
Thank you.
Yes. So we look at the cost of capital, I think, as others do. I don't know that we've talked specifically about the number that we use, but I think when we look at the modeling that others use, I think it's very consistent with how we look at internally. Probably one would argue we're a bit conservative because despite an argument that with record low interest rates, one could argue the cost of capital has gone down. But we tend to look at this over a longer term period because assets that we're investing in are long term assets.
So if we look at a longer term cost of capital, right, which I think would be consistent with the market view, That's how we value it. And I think more importantly, as we see an asset of this sort, we can see, unlike others that are not yet in the market, the visibility here on our ability to generate our returns against our capital investment, we think is quite good. And therefore, with expected low double digit growth rate over the period over the next 5 years, we think that we'll get a good return above our own cost.
Our next question is from Evan Sejerman of Credit Suisse.
Congrats on the deal. So just one on the bidding process. Was this a competitive bidding process? And can you walk me through the rationale for spending $11,200,000,000 net of tax benefit on the asset?
Sure. I think with respect to the process, you should talk to Celgene in Bristol about that, but I don't think there's anything particularly unusual about this. The process that is, Evan, this is obviously a very attractive product, innovative, unique PDE4 inhibitor, demonstrated great efficacy already in the marketplace, strong safety profile, yet it's still at an early stage in its life cycle. So while it's a blockbuster, it still has already, it still has great room to grow. So this is attractive in every regard as molecules go in our industry.
And as I said earlier, fits very clearly and very squarely in our area of strategic focus. And with respect to our thinking on valuation, I think David summarized it pretty well. But I'll just reiterate that when we look at transactions like this, we start with wanting to have an understanding of what the net present value is. So we do we focus carefully on cash flows and we try to make sure that we do transactions at values where we believe our shareholders will benefit, which means that the IRR of our investment needs to exceed our cost of capital. So we think we will achieve that with this deal.
And in addition, this is a deal that will be attractive from a pro form a financial perspective and leaves us with a strong balance sheet, still in a strong position to look to continue to invest in the business. And again, I think this is consistent with our strong track record and plays well to the execution strengths that we've demonstrated here at Amgen.
All right. Thanks for taking the question. Appreciate it.
Our next question is from Matthew Harrison of Morgan Stanley.
Great. Good morning. Thanks for taking the question. I guess, one, can you just broadly comment around your confidence around being able to close this transaction given what we've seen coming out of the FTC recently? And then separately, David, I just want to be clear on what you said.
I mean, it sounds like you're talking about this product has about a 50 percent operating margin given the numbers that you talked about. I mean, how do you think about your ability to increase that over time? Thanks.
I'm going to start with you, David, and then I'll pass it.
Yes. So I think it's fair to say that we'll have some initial cost associated with bringing the product into the portfolio in 2020. So if I start there, one can imagine that there's opportunities from a cost perspective to efficiently manage this through time. As I also mentioned, this is certainly within our areas of expertise and therefore gives us the chance to efficiently run this product within the context of our overall business portfolio. And then on a revenue basis, as I mentioned, we think that the opportunity for continued growth is very strong over the coming years.
So I wouldn't dispute your analysis of the profitability. And certainly, we think that it will positively contribute to performance and potentially over time to the overall margin performance of the company.
And Matthew, with respect to FTC, obviously, we have a high degree of confidence, but we want to respect the FTC's process and they will review it, I'm sure, on the merits. But you should assume that we feel very confident. And I think you can probably conclude that the sellers feel confident that we're a strong buyer and appropriate buyer of Otezema.
And our next question comes from Terence Flynn of Goldman Sachs.
Hi, good morning. Thanks for taking the question. I was just wondering if you can give us any more detail behind your double digit growth assumptions, in particular, how much is from new versus existing indications? Did you assume any contribution from price or is this mainly all volume driven? Thanks a lot.
Yes, thanks. Thanks Terence. The double digit growth assumption is really predicated on maintaining and slightly accelerating share in the market, but having a very strong market growth overall. We're also looking at expanding indications over time, hopefully with the addition of mild to moderate psoriasis, which we think fits squarely in the target zone for the types of patients that OTEZLA can benefit. And I think, one of the things I will add is the team that's currently working on OTEZLA has done a very, very nice job of establishing OTEZLA as a very good fit for the moderate to severe psoriasis patients and psoriatic arthritis indication.
And I'd have every confidence that as we welcome those new colleagues to Amgen, they would be a strong foundation for that future growth. And we have every intent of welcoming them in. And hopefully, they're looking forward to that as well. And of course, job 1 is really about making sure patients who are currently on Otezla continue to receive Otezla and we'll be exerting every effort there to make sure that that happens without any hitch or any problems.
So Terrence, if your underlying question is do we think we have to rely on price increases, the answer is no. And as I said in my opening remarks, we're investing here in an innovative product that we think is capable of growing volumes. So we look forward to that.
Our next question is from Jay Olson of Oppenheimer.
Hey, thanks for taking the question and congrats on what looks like a highly complementary deal. I wanted to follow-up on the comments around capital allocation and continued share repurchases. I think you mentioned they would continue at the same rate as previous years excluding the tender in 2018. And in 2019, you've already repurchased shares in excess of what you had done in previous years. So I'm curious about the remaining $4,700,000,000 under the current stock repurchase authorization.
At what pace should we expect that to occur? Is that something that will happen this year or maybe it gets pushed into next year? Thank you.
Yes. Okay. Thanks. So, I wanted to be quite clear as to how we're thinking about this transaction in the context of the overall allocation approach at Amgen. And the points being, 1 is our priority is to 1st and foremost invest in our own business via our internal development as well as business development continues.
And so we don't see given the strength of the ongoing cash flow at the company and the strength of our balance sheet, notwithstanding the capital being deployed for this acquisition, it's quite clear to us that we still have plenty of financial flexibility to pursue all of our priorities actively. We've also committed that through time that we will provide returns to shareholders, we will maintain an optimal capital structure and we'll return excess capital to shareholders through time. Hence, the comment to reaffirm our intent to grow our dividend based on the continued growth of the company. And then finally, I think importantly, I wanted to clarify that we don't see this transaction constraining our ability to continue to provide returns via repurchases. So you can expect that will continue.
We had indicated that we expected in the 3rd quarter to have $1,000,000,000 to $2,000,000,000 of repurchases again in this quarter. We expect repurchases through year end. And then, I tried to give some indication in 2020, notwithstanding the fact that it is August. So there's we've got some time to go before we give guidance for next year. But what I said was that you can expect at least as we see the plan right now to continue repurchases in 2020.
If you look at our you look at what we've done each year during the years 2015 to 2018, I think that gives you some guidance as to what the size might be and as we move through time, we'll give you more specifics.
Our next question is from Geoffrey Porges of SVB Leerink.
Thank you very much for taking the question. Congratulations on the transaction. David, could you give us some clarity on, first, what you expected breakeven period is on a cash to cash basis for this transaction? And then secondly, what the period of recognition of the tax benefit from the intangible amortization is likely to be? And then, Murdo, you mentioned market expansion.
Are you assuming with the revenue growth that you're expecting significant expansion to the mild to moderate psoriasis population as well as the existing label?
Thanks. Yes. So, I'll comment first. So, tax amortization, I believe the rules would require that we would be amortizing the tax benefit over a 15 year period. In terms of cash flow breakeven, as we said, we expect this asset to be in the market with IP protection at least through 2028.
And I would say typical of a business of this sort, it wouldn't surprise me to see that we get at least halfway through that period until such time as we get to a cash flow breakeven.
Yes. And Jeff, on market expansion, with respect to growth, I think the majority of the growth will come from indication expansion in the U. S. In that mild to moderate population if we're successful in securing that indication. And then on market expansion, there are a number of markets within our footprint where Otezla has yet to be commercialized and that would be our intent to expand into those areas.
I think in Europe, we'd have to look at the overall reimbursement scenarios that would allow us to grow into a more mild profile of patients.
Great. Thanks very much.
Our next question is from Cory Kasimov of JPMorgan.
My questions. Actually I have 2 that are follow ups to prior questions. So first is Otezla seemingly gained a lot more traction in the U. S. Than OUS.
So can you talk about your confidence to drive that OUS expansion, the key levers there? Is it really is it just about reimbursement? Is there something more than that? And then one quick follow-up on IP. You say you have IP exclusivity until at least 2028 in the U.
S. Can you talk about potentially extending that what it would take to potentially extend that runway beyond that time point?
Thanks. Okay.
So why don't we take it in 2 parts? Again, Murdo, if you get the first part, I'll talk about the patents.
Sure. Rory, the dynamics in Europe in this category are different. Patients tend to stay longer with non prescription agents. They also tend to look for topicals. We do think we continue to have an opportunity to grow in Europe, given the pricing that we have there and the opportunity to compete against biologics.
I do think the mild to moderate indication could help. And I think that the combination of Celgene's team and the Amgen Resources in those markets will also help. So some expansion of the OUS business would be anticipated. But as I said to Jeff Borges' question, most of the volume expansion will come in the U. S.
With respect to your question on IP, I would just note, Cory, that we will have patents that are already in place that go through 2,034, but obviously those will be subject to litigation. So there'll be some uncertainty. But I don't want to say anything more about IP at this point than just that.
Okay. Thank you.
Our next question is from Umer Raffat of Evercore ISI.
Hi. This is Bo for Umer. Also, we have a question on IP. You mentioned that the U. S.
Exclusivity will run through at least 2028 and we find a 20 20 3 patent on CrystalForm and the 2028 patent is on a pharmaceutical composition that reads like a substantially pure positive isomer patent. So could you give us some color on how strong is the 20 28 patent on this positive antitumor of Tesla? Thanks.
Yes. Thanks, Bo. Obviously, we feel confident that we have patent protection or intellectual property protection through at least 2028 in the U. S. And why don't we leave it
at that? Thanks. Laura, let's take the next question please.
Our next question is from Salim Syed of Mizuho Securities. Could you please tell us more about how we should think about, BMW's TIC II launch in 2021 to 2022 and how it would affect Otezla sales decline?
Sorry, who's asking the question there?
My name is Ellen. I'm asking on behalf of Salim Syed.
Okay, Ellen, thanks.
Yes. So if I heard the question properly, the question is about Bristol Myers Squibb's tick 2 compound coming. I think Otezla sets a very high bar in the swath of moderate to severe psoriasis and psoriatic arthritis patient and will have we'll be able to compete effectively. I also think that we'll be able to compete effectively. I also think that the profiles of other orals remain to
be seen and we'll watch that space closely. Laura, we had slated this call for about half an hour as we are already over half an hour. Let's take one last question, please.
Yes, sir. Our last question comes from Kennen MacKay of RBC Capital Markets.
Congrats on the deal. Thanks for squeezing me in. Maybe just relating to the timing of this announcement versus the Enbrel IP situation, how did the recent Enbrel and El Resi, New Jersey court decision that played in your favor sort of play into the decision behind this acquisition? Thanks so much for taking the question and congrats again on the new addition.
Kennen, we can take it in 2 pieces. David, I'll invite you to share any comments if you
have any and then why don't I wrap up. Yes. So I would refer to the fact that we've been quite consistent in our commentary in the past, which is we had a high level of confidence throughout in our Enbrel patent estate. Our guidance that we've been offering over recent years has treated that as plan A and we didn't have a plan B that we were talking about or guiding to. And so really no change in terms of the planning for the company financially and strategically as we did prevail in that litigation.
So that continues according to our plans and obviously this opportunity arose and given the strength of the company and the strategic fit, we took the opportunity to proceed with this one.
I guess that's what I would echo, Ken. And I can't recall a transaction like this in my 30 plus years of watching transactions and being part of them in this industry. So we're very excited about this. Obviously, we didn't control the timing of the judge's decision in the Enbrel matter and we didn't control the timing of this divestiture of this asset. But as I said in my earlier remarks, we've been patient looking for the right opportunities to deploy our capital to invest and grow value for our shareholders and we think this is clearly one of them.
So we're very excited about this opportunity and we look forward to welcoming our new colleagues from Celgene and the Otezla team to Amgen and look forward to continuing to serve the patients who've been so well looked after by the team at Celgene and the product that is Otezlo. So exciting morning for us here at Amgen and thank you again for joining us at short notice. Arvind and his team will be around for any of you who didn't get a chance to ask you a question already this morning. Thank you.
Okay. Thanks all for participating. Bob stole my closing pitch here. But yes, if you have any other questions or observations, feel free to call me and my team will be standing by for quite some time. Thanks again.
And this concludes today's call. You may now disconnect.