碩騰 (ZTS) 2023 Q4 法說會逐字稿

Welcome to the Fourth Quarter and Full Year 2023 Financial Results Conference Call and Webcast for Zoetis. Hosting the call today is Steve Frank, Vice President of Investor Relations for Zoetis. The presentation materials and additional financial tables are currently posted on the Investor Relations section of zoetis.com. The presentation slides can be managed by you, the viewer, and will not be forwarded automatically. In addition, a replay of this call will be available approximately 2 hours after the conclusion of this call via dial-in or on the Investor Relations section of zoetis.com. (Operator Instructions)

歡迎參加碩騰 2023 年第四季和全年財務業績電話會議和網路廣播。今天主持電話會議的是碩騰投資人關係副總裁 Steve Frank。演示材料和其他財務表格目前發佈在 zoetis.com 的投資者關係部分。簡報幻燈片可以由觀眾您管理，並且不會自動轉發。此外，在本次電話會議結束後約 2 小時內，您可以透過撥入或在 zoetis.com 的投資者關係部分重播本次電話會議。 （操作員說明）

It is now my pleasure to turn the floor over to Steve Frank. Steve, you may begin.

現在我很高興將發言權交給史蒂夫·弗蘭克。史蒂夫，你可以開始了。

Thank you, operator. Good morning, everyone, and welcome to the Zoetis Fourth Quarter and Full Year 2023 Earnings Call. I am joined today by Kristin Peck, our Chief Executive Officer; and Wetteny Joseph, our Chief Financial Officer.

謝謝你，接線生。大家早安，歡迎參加碩騰 2023 年第四季和全年財報電話會議。今天我們的執行長 Kristin Peck 也加入了我的行列。以及我們的財務長 Wetteny Joseph。

Before we begin, I'll remind you that the slides presented on this call are available on the Investor Relations section of our website and that our remarks today will include forward-looking statements and that actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements in today's press release and our SEC filings, including, but not limited to, our annual report on Form 10-K and our reports on Form 10-Q.

在我們開始之前，我要提醒您，本次電話會議上演示的幻燈片可在我們網站的投資者關係部分找到，我們今天的言論將包括前瞻性陳述，實際結果可能與這些預測有重大差異。有關可能導致結果不同的某些因素的清單和說明，請參閱今天的新聞稿中的前瞻性聲明和我們向 SEC 提交的文件，包括但不限於我們的 10-K 表格年度報告和我們的表格10 -Q 上的報告。

Our remarks today will also include references to certain financial measures, which were not prepared in accordance with generally accepted accounting principles or U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures is included in the financial tables that accompany our earnings press release and the company's 8-K filing dated today, Tuesday, February 13, 2024. We also cite operational results, which exclude the impact of foreign exchange.

我們今天的演講還將提及某些財務指標，這些指標並非根據公認會計原則或美國公認會計準則制定的。這些非GAAP 財務指標與最直接可比較的美國GAAP 指標的調節表包含在我們的收益新聞稿和公司日期為今天（2024 年2 月13 日星期二）的8-K 備案文件中的財務表格中。我們也引用了營運結果排除了外匯的影響。

With that, I will turn the call over to Kristin.

這樣，我會將電話轉給克里斯汀。

Thank you, Steve, and welcome, everyone, to our fourth quarter and full year 2023 earnings call. Today, we reported strong full year results, driven by the success of our diverse portfolio across markets and species, game-changing innovation and the outstanding commitment of our purpose-driven colleagues.

謝謝史蒂夫，歡迎大家參加我們的 2023 年第四季和全年財報電話會議。今天，我們報告了強勁的全年業績，這得益於我們跨市場和物種的多元化投資組合的成功、改變遊戲規則的創新以及我們以目標為導向的同事的傑出承諾。

We delivered 7% operational revenue growth, growing faster than the industry, propelled by steady demand for our innovative products that enable our customers and the animals they care for to thrive. With the ongoing momentum of our monoclonal antibodies for osteoarthritis or OA pain, we saw segment growth of 6% in the U.S. and 9% operational growth internationally. Our companion animal portfolio remains a key growth driver, up 8% operationally, and we saw a return to growth for our livestock portfolio, up 6% operationally. While we continue to operate in an environment of global uncertainty, our diversity across markets, species and therapeutic areas has sustained our performance further demonstrating that animal health is a durable, essential and growing industry.

我們的營運收入成長了 7%，成長速度快於產業，這得益於對我們的創新產品的穩定需求，這些產品使我們的客戶和他們所照顧的動物能夠茁壯成長。隨著我們針對骨關節炎或骨關節炎疼痛的單株抗體持續發展的勢頭，我們在美國的業務增長了 6%，在國際上業務增長了 9%。我們的伴侶動物投資組合仍然是關鍵的成長動力，營運成長了 8%，我們的牲畜投資組合也恢復了成長，營運成長了 6%。雖然我們繼續在全球不確定的環境中運營，但我們在市場、物種和治療領域的多樣性維持了我們的業績，進一步證明動物健康是一個持久、重要和不斷增長的行業。

Our track record of innovation from pioneering breakthroughs to product life cycle enhancements has solidified our position as the industry leader consistently growing above the market and enabled us to create market-leading franchises. We don't just follow trends, we make markets. The launch of Librela and Solensia, the first 2 injectable monoclonal antibodies for the alleviation of osteoarthritis is fundamentally improving the quality of life for dogs and cats and strengthening the human animal bond. That's why today, Librela remains the #1 selling OA pain product in Europe.

我們從開創性突破到產品生命週期增強的創新記錄鞏固了我們作為行業領導者的地位，不斷超越市場，並使我們能夠創造市場領先的特許經營權。我們不只是跟隨趨勢，我們還創造市場。 Librela 和 Solensia 是首批用於緩解骨關節炎的兩種可注射單株抗體，其上市從根本上改善了狗和貓的生活質量，並加強了人類與動物的聯繫。這就是為什麼如今 Librela 仍然是歐洲銷量第一的 OA 疼痛產品。

At Investor Day last May and again at the JPMorgan Healthcare Conference, I shared that our [own pain] franchise could have peak sales exceeding $1 billion. And we are excited about Librela's performance since its U.S. launch in October, which reaffirms that view. Due to high clinic penetration, we've activated our direct-to-consumer or DTC efforts faster than any other product in our history, which we expect to provide a tailwind for commercial growth. Similarly, Solensia has also been well received with strong clinic penetration around the world with increased opportunity as we generate more awareness of OA pain in cats.

在去年 5 月的投資者日和摩根大通醫療保健會議上，我分享了我們的[自己的痛苦]特許經營業務的峰值銷售額可能會超過 10 億美元。我們對 Librela 自 10 月在美國推出以來的表現感到興奮，這再次證實了這一觀點。由於診所的高滲透率，我們比歷史上任何其他產品都更快地啟動了直接面向消費者或 DTC 的工作，我們預計這將為商業成長提供動力。同樣，Solensia 也受到了廣泛的歡迎，在世界各地的診所都有很強的滲透率，隨著我們對貓骨關節炎疼痛的認識不斷提高，機會也隨之增加。

Within our dermatology franchise, we've established ourselves as the trusted partner to veterinarians. And after nearly a decade of impressive growth, we still believe we have room to expand this market. increasing pet owners' awareness that itch is a medical condition that requires treatment, improve compliance and the opportunity to address even more unmet needs underpins our optimism. We remain confident that we can sustain growth, thanks to our differentiated products like Cytopoint and Apoquel chewable, the first and only chewable treatment for the control of allergic itch and inflammation in dogs.

在我們的皮膚科特許經營範圍內，我們已成為獸醫值得信賴的合作夥伴。經過近十年的令人印象深刻的成長，我們仍然相信我們有擴大這個市場的空間。寵物主人越來越意識到搔癢是一種需要治療的疾病，提高依從性，並有機會解決更多未滿足的需求，這些都支撐著我們的樂觀態度。我們仍然有信心維持成長，這要歸功於我們的差異化產品，如 Cytopoint 和 Apoquel 咀嚼片，這是第一個也是唯一一個用於控制狗過敏性搔癢和發炎的咀嚼治療藥物。

Our parasiticide portfolio and particularly Simparica Trio remains a key growth driver, even in the face of increasing competition. This continued success highlights our strategic execution, label strength and the efficacy of our products.

即使面對日益激烈的競爭，我們的殺蟲劑產品組合，特別是 Simparica Trio 仍然是關鍵的成長動力。這項持續的成功凸顯了我們的策略執行力、標籤優勢和產品功效。

The performance across our key product franchises not only reinforces our market-leading position, but also better innovation consistently meet the evolving demands in veterinary medicine. As we begin in 2024, we will stay disciplined and adaptable to the evolving macroeconomic and geopolitical backdrop around the world and focus on executing our plans and continuing to grow faster than the market. Two durable global trends give us confidence in that future growth, the powerful human animal bond and the world's growing need for a sustainable supply of animal protein. Our commitment to operational excellence ensures we are ready to scale to meet those demands and navigate unforeseen challenges while delivering shareholder value.

我們主要產品系列的表現不僅鞏固了我們的市場領先地位，而且還提供更好的創新，不斷滿足獸藥不斷變化的需求。 2024 年開始，我們將保持紀律並適應全球不斷變化的宏觀經濟和地緣政治背景，並專注於執行我們的計劃並繼續以快於市場的速度成長。兩個持久的全球趨勢讓我們對未來的成長充滿信心：人類與動物之間的強大紐帶以及世界對動物蛋白質可持續供應不斷增長的需求。我們對卓越營運的承諾確保我們準備好擴展以滿足這些需求並應對不可預見的挑戰，同時提供股東價值。

Looking ahead, we are committed to our track record of value creation and above-market performance. Our dedication to innovation remains the cornerstone of our market-leading position. We've consistently demonstrated agility, outpacing the market to bring groundbreaking solutions that meet and exceed customer expectations. We will continue to leverage that advantage, and we're guiding to a range of 7% to 9% operational revenue growth in 2024 and adjusted net income growth in the range of 9% to 11% operationally which reflects our ongoing investments in R&D, supply chain and commercial excellence to cultivate new markets, drive growth and create value. As you've heard me say time and time again, we are confident in our strategy, portfolio, pipeline and capabilities to deliver value to shareholders and customers while performing above the market. Our focus positions us well to navigate potential challenges and capitalize on emerging opportunities. In closing, we will continue our relentless pursuit to exceed customer expectations and invest in advancing the capabilities that differentiate Zoetis.

展望未來，我們致力於創造價值並實現高於市場的業績記錄。我們對創新的奉獻仍然是我們市場領先地位的基石。我們始終展現敏捷性，超越市場，推出滿足並超越客戶期望的突破性解決方案。我們將繼續利用這一優勢，預計 2024 年營業收入將增長 7% 至 9%，調整後淨利潤增長 9% 至 11%，這反映了我們對研發的持續投資，供應鏈和商業卓越，以培育新市場、推動成長和創造價值。正如您一次又一次聽到我所說，我們對我們的策略、產品組合、通路和能力充滿信心，能夠為股東和客戶提供價值，同時表現優於市場。我們的重點使我們能夠很好地應對潛在的挑戰並利用新出現的機會。最後，我們將繼續不懈地追求超越客戶的期望，並投入提升碩騰的差異化能力。

As you look to 2024, I could not be more excited about our future. Our key growth drivers will continue to showcase our commitment to nurturing the world in humankind by advancing care for animal and our ongoing innovations will expand the market, reaffirm our best-in-class product portfolio and defend our position amidst competition. I want to reiterate the 4 tenets of our value proposition discussed on Investor Day. We will grow revenue faster than the market. We will invest in innovation and growth capabilities. We commit to growing adjusted net income faster than revenue, and you will return excess capital to shareholders. While there is need and demand to improve the quality life for animals, Zoetis will continue leading the way and setting the standard for performance and growth. This is core to our vision to be the most trusted and valued animal health company, shaping the future of animal care through innovation, customer obsession and purpose-driven colleagues. Thank you.

展望 2024 年，我對我們的未來感到無比興奮。我們的主要成長動力將繼續體現我們透過推進動物照護來培育人類世界的承諾，我們不斷的創新將擴大市場，重申我們一流的產品組合，並捍衛我們在競爭中的地位。我想重申我們在投資者日討論的價值主張的 4 項原則。我們的收入成長速度將快於市場。我們將投資於創新和成長能力。我們承諾調整後淨利的成長速度快於收入的成長速度，您將把多餘的資本回饋給股東。儘管存在改善動物生活品質的需求和要求，碩騰將繼續引領潮流並為性能和生長設定標準。這是我們成為最值得信賴和最有價值的動物保健公司的願景的核心，透過創新、客戶至上和目標驅動的同事塑造動物照護的未來。謝謝。

Now let me hand it over to Wetteny. Wetteny?

現在讓我把它交給韋特尼。韋特尼？

Thank you, Kristin, and good morning, everyone. As Kristin mentioned, we had a strong year in 2023 with revenue of $8.5 billion and adjusted net income of $2.5 billion. Our full year revenue was near the top end of our guidance range while our adjusted net income was slightly below our guidance range, primarily due to the impact of foreign exchange as well as an impairment charge related to a prior acquisition.

謝謝克里斯汀，大家早安。正如 Kristin 所提到的，我們在 2023 年表現強勁，營收達 85 億美元，調整後淨利達 25 億美元。我們的全年收入接近指導範圍的上限，而調整後的淨利潤略低於指導範圍，這主要是由於外匯以及與先前收購相關的減值費用的影響。

Our revenue growth was broad with strong growth across both our U.S. and international segments, with our companion animal and livestock portfolios and due to both price and volume. Full year revenue grew 6% on a reported basis and 7% operationally with adjusted net income increasing 7% on both a reported and operational basis. Of the 7% operational revenue growth, 5% is from price and 2% is from volume. Volume growth was driven primarily by new products, including our monoclonal bodies for OA pain, Librela and Solensia as well as our key dermatology products and Simparica Trio.

由於我們的伴侶動物和牲畜產品組合以及價格和數量，我們的美國和國際部門都實現了強勁增長，收入增長廣泛。全年營收在報告基礎上成長 6%，在營運基礎上成長 7%，調整後淨利在報告基礎和營運基礎上均成長 7%。在 7% 的營業收入成長中，5% 來自價格，2% 來自數量。銷售成長主要由新產品推動，包括我們用於 OA 疼痛的單株抗體、Librela 和 Solensia 以及我們的主要皮膚科產品和 Simparica Trio。

On a segment basis, our U.S. business posted $4.6 billion in revenue, growing 6% on the year, while our International segment reported revenue of $3.9 billion with operational growth of 9% on the full year. Additionally, while China represents less than 5% of our global revenues, the ongoing economic weakness there continues to impact our business and represented a 0.5 percentage point drag on our total company operational revenue growth for the year, entirely in volume. Our full year growth was driven by continued demand for our innovative companion animal portfolio, which grew 8% operationally. Our livestock portfolio also had a strong year with operational growth of 6%.

從分部來看，我們的美國業務收入為 46 億美元，年增 6%，而我們的國際業務收入為 39 億美元，全年營運成長 9%。此外，雖然中國占我們全球收入的不到 5%，但那裡持續的經濟疲軟繼續影響我們的業務，並拖累我們公司今年總營業收入增長 0.5 個百分點（完全是在數量上）。我們全年的成長是由對我們創新伴侶動物產品組合的持續需求推動的，該產品組合的運作成長了 8%。我們的畜牧業​​投資組合今年也表現強勁，營運成長了 6%。

Performance in companion animal was led by OA pain mAbs, which posted $321 million in global revenue for the year. Growth came from first wave European markets as well as from the impact of new launch markets in 2023, including the U.S. We continue to see penetration of our pain mAbs grow within vet clinics and a high level of satisfaction amongst both vets and pet owners. Our key dermatology products generated $1.4 billion in sales globally, posting strong growth of 8% for the year on an operational basis. Simparica Trio contributed global revenue of $813 million in 2023, representing growth of 9% operationally despite distributor inventory headwinds in Q1 and aggressive competitive promotions for much of the year. Our companion animal diagnostics portfolio recorded $356 million in revenue and grew 7% operationally, with growth contributions from both the U.S. and international. Our livestock portfolio had a strong year, with 6% operational revenue growth driven by both price and volume.

伴侶動物領域的表現由 OA 疼痛單株抗體領銜，該公司今年的全球收入為 3.21 億美元。成長來自第一波歐洲市場以及 2023 年新上市市場（包括美國）的影響。我們繼續看到我們的止痛單株抗體在獸醫診所的滲透率不斷增長，獸醫和寵物主人的滿意度也很高。我們的主要皮膚科產品在全球產生了 14 億美元的銷售額，全年營運強勁成長 8%。 Simparica Trio 在 2023 年為全球貢獻了 8.13 億美元的收入，儘管第一季經銷商庫存面臨阻力，今年大部分時間都在積極進行競爭性促銷活動，但營運成長了 9%。我們的伴侶動物診斷產品組合收入達 3.56 億美元，營運成長 7%，成長貢獻來自美國和國際市場。我們的牲畜產品組合今年表現強勁，在價格和數量的推動下，營業收入增加了 6%。

Moving on to our Q4 financial results, which was another strong quarter. We closed Q4 with revenue of $2.2 billion, representing an increase of 8% on both the reported and operational basis, posting our third consecutive quarter of at least 8% operational revenue growth despite a tough comparative, particularly in U.S. companion animals. Adjusted net income of $569 million is an increase of 6% on both the reported and on operational basis. Of the 8% operational revenue growth, 6% is from price and 2% is from volume. Volume growth consisted of 4% growth from new products and a 2% decline in our in-line products. Volume from our key dermatology products was flat in the quarter.

接下來是我們第四季的財務業績，這是另一個強勁的季度。我們第四季的營收為22 億美元，報告營收和營運收入均成長8%，儘管比較情況嚴峻，特別是在美國伴侶動物方面，但我們已連續第三個季度實現至少8% 的營運收入成長。調整後淨利為 5.69 億美元，報告和營運淨利均成長 6%。在 8% 的營業收入成長中，6% 來自價格，2% 來自數量。銷售成長包括新產品 4% 的成長和同線產品 2% 的下降。本季我們主要皮膚科產品的銷量持平。

On a segment basis, our U.S. business posted $1.2 billion in revenue, growing 9% on the quarter, while International segment reported revenue of $982 million with operational growth of 8% on the quarter. Our companion animal portfolio was the main driver of revenue growth in the quarter, growing 10% operationally. Livestock also contributed with operational growth of 6%. We saw double-digit companion animal growth in both our U.S. and our international segment, driven by our innovative products. Our OA pain mAbs were the primary driver of growth posting $124 million in combined revenue in the quarter. Global growth came primarily from the impact of new launch markets, bolstered by the Q4 full launch of Librela in the U.S.

按部門劃分，我們的美國業務收入為 12 億美元，本季成長 9%，而國際部門營收為 9.82 億美元，本季營運成長 8%。我們的伴侶動物投資組合是本季營收成長的主要推動力，營運成長了 10%。畜牧業也貢獻了 6% 的營運成長。在我們的創新產品的推動下，我們的美國和國際市場的伴侶動物都實現了兩位數的成長。我們的 OA 疼痛單株抗體是成長的主要動力，本季合併收入達 1.24 億美元。全球成長主要來自新推出市場的影響，第四季度 Librela 在美國全面推出，這推動了這一成長。

Simparica Trio generated $208 million globally in the quarter, representing growth of 21% operationally. Price was the primary driver of growth in the quarter, followed by volume growth driven by expanded DTC advertising support globally as well as some increased field force focus. Our key dermatology products generated $375 million in sales globally, posting growth of 7% on an operational basis. Our companion animal diagnostics portfolio reported revenue of $87 million and grew 8% operationally, with growth contributions from both the U.S. and international. Our livestock products ended the year on a strong note with growth of 6% operationally, growing in both our U.S. and International segments. Growth was driven equally by price, which grew despite headwinds from [DRAXXIN] price decreases as well as by volume with growth in Synovex from our expanded label claims.

Simparica Trio 本季全球營收為 2.08 億美元，營運成長 21%。價格是本季成長的主要驅動力，其次是全球 DTC 廣告支援的擴大以及現場人員關注度的提高所推動的銷售成長。我們的主要皮膚科產品在全球產生了 3.75 億美元的銷售額，營運基礎上成長了 7%。我們的伴侶動物診斷產品組合報告收入為 8700 萬美元，營運成長 8%，成長貢獻來自美國和國際市場。我們的畜牧產品在今年底表現強勁，營運成長了 6%，美國和國際市場均成長。成長同樣受到價格的推動，儘管 [DRAXXIN] 價格下降帶來了阻力，但價格仍然增長；而 Synovex 的銷量則因我們擴大的標籤聲明而增長。

Now moving on to revenue growth by segment for the quarter. U.S. revenue was $1.2 billion in the quarter, growing 9% with companion animal sales growing 10% and livestock sales growing 4%. Companion animal again posted double-digit growth in the quarter, bolstered by a full launch of Librela at the start of the quarter, all while facing a tough comparative quarter with promotional activity and heavier-than-normal preprice buy-in at the end of last year. In the U.S., vet clinic visits were flat on the quarter and flat for the year. While we continue to see solid clinic revenue and revenue per visit growth of 6% for the quarter and 7.5% for the year. Our U.S. companion animal revenue growth continues to outpace its veterinary clinic revenue growth due in part to our innovative therapeutics as well as our strong presence in the retail channel.

現在我們來看看本季各細分市場的營收成長。美國本季營收為 12 億美元，成長 9%，其中伴侶動物銷售額成長 10%，牲畜銷售額成長 4%。在本季度初全面推出 Librela 的推動下，伴侶動物在本季度再次實現兩位數增長，同時面臨著艱難的比較季度，促銷活動和年底的預價購買量高於正常水平。去年。在美國，獸醫診所的就診量與季度持平，與全年持平。我們繼續看到診所收入和每次就診收入在本季度增長 6%，全年增長 7.5%。我們的美國伴侶動物收入成長持續超過獸醫診所收入成長，部分原因是我們的創新療法以及我們在零售通路的強大影響力。

Moving on to product performance. Growth in the U.S. was driven by our pain mAbs, Simparica Trio and our key dermatology portfolio. Our combined pain mAbs posted $58 million in U.S. sales in Q4. We moved to a full launch of Librela in the U.S. early in the fourth quarter, and we have been pleased with the results our field force has been able to drive thus far. Librela posted $44 million in U.S. sales in the quarter which is at the higher end of our initial expectations. It's important to note that while we are not leveraging distribution for our pain mAbs, there's significant clinic stocking impact in the first few months after launch. We have seen higher-than-expected penetration and reorder rates through the end of the year as well as rapid patient share growth in the Canine pain category.

繼續討論產品性能。在美國的成長是由我們的止痛單株抗體、Simparica Trio 和我們的主要皮膚科產品組合所推動的。我們的聯合止痛單株抗體第四季在美國的銷售額為 5,800 萬美元。我們在第四季初在美國全面推出 Librela，我們對我們的現場人員迄今為止所取得的成果感到滿意。 Librela 本季在美國的銷售額為 4,400 萬美元，高於我們最初預期的上限。值得注意的是，雖然我們沒有利用止痛單株抗體的分銷，但在推出後的頭幾個月內對診所庫存產生了重大影響。到今年年底，我們看到了高於預期的滲透率和再訂購率，以及犬類疼痛類別的患者份額的快速增長。

Solensia had sales of $14 million in Q4 in the U.S. We have seen a marked increase in feline vet visits and feline revenue growth in the clinic. In the U.S., feline OA patients are up 23% for 2023. Simparica Trio posted U.S. sales of $185 million in the quarter, growing 17%. Growth was driven primarily by price as we ran promotions in Q4 of 2022 following our Q3 2022 supply challenges, and in advance of a [than] expected competitor launch in early 2023.

Solensia 第四季在美國的銷售額為 1400 萬美元。我們看到貓科動物獸醫就診次數和診所貓科動物收入顯著增加。在美國，2023 年貓科動物 OA 患者數量將增加 23%。Sirparica Trio 本季在美國的銷售額為 1.85 億美元，成長 17%。成長主要由價格推動，因為我們在 2022 年第三季的供應挑戰之後，並在 2023 年初競爭對手推出之前，於 2022 年第四季度進行了促銷活動。

In our second quarter with competition in the trio combination space, we continue to see patient share growth in Simparica Trio. We remain confident in our ability to compete and grow in this space through the strength of our label, retail channel presence, strong corporate and specialty relationships and a significant advantage of being first to market.

在第二季度，隨著三重奏組合領域的競爭，我們繼續看到 Simparica Trio 的患者份額成長。我們仍然相信，憑藉我們的品牌實力、零售通路、強大的企業和專業關係以及率先進入市場的顯著優勢，我們有能力在這一領域競爭和發展。

Dermatology products sales in the U.S. were $252 million in the quarter, growing 6%. Cytopoint sales continue to drive growth through both price and volume with vets and pet owners referring this injectable method of administration. [Simparica] franchise growth is driven by better net price realization on lower volume due to promotional activity at the end of last year.

該季度美國皮膚科產品銷售額為 2.52 億美元，成長 6%。 Cytopoint 的銷售繼續透過價格和銷售量推動成長，獸醫和寵物主人都推薦這種注射方法。 [Simparica] 特許經營權的成長是由於去年底的促銷活動導致銷量減少而實現了更好的淨價。

Our U.S. companion animal diagnostics portfolio posted growth of 9% in the quarter. U.S. livestock grew 4% in the quarter, primarily driven by growth in poultry as a result of favorable rotation back to certain medicated feed additives and the extended use of Zoamix as well as share gains due to competitor supply constraints. Sales of both swine and cattle products increased in the quarter, primarily as a result of increased supply of vaccines that were limited in the same quarter of the prior year.

我們的美國伴侶動物診斷產品組合本季成長了 9%。本季度美國牲畜產量增加了 4%，這主要是由於某些藥物飼料添加劑的有利輪換和 Zoamix 的廣泛使用以及競爭對手供應限制帶來的份額增長所導致的家禽增長。本季豬和牛產品的銷售量均有所成長，主要是由於去年同期有限的疫苗供應增加。

Moving on to our International segment, where revenue in the quarter grew 9% on a reported basis and 8% excluding the impact of foreign exchange. International companion animal grew 10% operationally and livestock grew 7% operationally. China represented a 3% drag on our International segment operational revenue growth in the quarter. Higher sales in companion animal products was led by our pain mAbs, our key dermatology products and our small animal parasiticides portfolio.

接下來是我們的國際部門，該季度的收入按報告計算增長了 9%，排除外匯影響則增長了 8%。國際伴侶動物運作成長 10%，牲畜運作成長 7%。中國對我們本季國際部門營運收入成長造成了 3% 的拖累。伴侶動物產品的銷售成長主要由我們的止痛單株抗體、我們的主要皮膚科產品和我們的小動物殺寄生蟲劑產品組合所帶動。

Growth in our OA pain products was equally driven by (inaudible) focus and DTC awareness campaign in early launch European markets as well as continued uptake in markets launched earlier this year. Librela sales were $53 million internationally with 93% operational growth in the quarter. Solensia sales were $13 million internationally in the quarter, growing 77% operationally. Our international key dermatology portfolio contributed $123 million of revenue, posting growth of 10% in the quarter on an operational basis. We continue to see benefits to Apoquel from our DTC awareness campaigns across several international markets, and conversion to Apoquel chewable has been positive. Growth in Cytopoint continues to benefit from higher rates of conversion from Apoquel and overall market growth. Our international small animal parasiticides portfolio grew 4% operationally, driven by our Simparica franchise with Simparica posting $48 million in revenue and growing 32% on an operational basis in the quarter, driven primarily by price, a strong parasiticide season and demand generation in emerging markets.

我們的 OA 疼痛產品的成長同樣受到早期推出歐洲市場的（聽不清楚）關注和 DTC 意識活動以及今年早些時候推出的市場的持續吸收的推動。 Librela 本季的國際銷售額為 5,300 萬美元，營運成長了 93%。 Solensia 本季國際銷售額為 1,300 萬美元，營運成長 77%。我們的國際主要皮膚科產品組合貢獻了 1.23 億美元的收入，本季營運成長 10%。我們繼續看到 Apoquel 從我們在多個國際市場進行的 DTC 宣傳活動中獲益，並且向 Apoquel 咀嚼片的轉化是積極的。 Cytopoint 的成長繼續受益於 Apoquel 更高的轉換率和整體市場成長。我們的國際小動物殺寄生蟲劑產品組合在Simparica 特許經營權的推動下實現了4% 的營運成長，其中Simparica 的收入為4,800 萬美元，本季的營運基礎上成長了32%，這主要是由價格、強勁的殺蟲劑季節和新興市場的需求推動所推動的。

Simparica Trio contributed $23 million internationally, growing 72% operationally driven by high peak season sales in Australia and continued uptake in Europe driven by key account penetration and field force effectiveness. This growth was partially offset by a 33% operational decline in our revolution franchise which generates a high proportion of sales in China, where we had a tough comparative quarter due to the return of supply in Q4 of 2022 as well as the ongoing impact of the current economic conditions. Continuing onto international livestock, which grew 7% operationally driven primarily by price increases in all species, especially in high inflationary markets. Our poultry portfolio also benefited from favorable MFA rotations in certain markets. China had an unfavorable impact on our international livestock sales in the quarter, particularly in our swine portfolio.

Simparica Trio 在國際上貢獻了 2,300 萬美元，在澳洲旺季銷售旺季的推動下，營運成長了 72%，在大客戶滲透率和現場人員效率的推動下，在歐洲持續受到歡迎。這一增長被我們的革命特許經營權運營下降33% 所部分抵消，該特許經營權在中國產生了很高比例的銷售額，由於2022 年第四季度的供應恢復以及疫情的持續影響，我們在中國度過了一個艱難的季度。當前的經濟狀況。繼續關注國際畜牧業，其營運成長了 7%，主要是由於所有物種的價格上漲，特別是在高通膨市場。我們的家禽產品組合也受益於某些市場有利的 MFA 輪調。中國對我們本季的國際牲畜銷售產生了不利影響，特別是我們的豬隻產品組合。

Now moving on to the rest of the P&L for the quarter. Adjusted gross margin of 67.1% decreased 100 basis points on a reported basis compared to the prior year. On an operational basis, adjusted gross margins decreased by 20 basis points, resulting primarily from higher manufacturing costs, which were partially offset by price increases and lower freight costs.

現在繼續討論本季損益表的其餘部分。調整後毛利率為 67.1%，與前一年相比下降 100 個基點。在營運基礎上，調整後毛利率下降了 20 個基點，主要是由於製造成本上升，但部分被價格上漲和貨運成本下降所抵消。

Adjusted operating expenses increased 11% operationally, driven primarily by higher SG&A expenses, which grew 10% operationally primarily due to higher competition-related expenses as well as a charitable contribution related to the funding of the Zoetis Foundation. R&D expenses grew 17% on an operational basis, driven by higher competition-related expenses as well as portfolio progression of key pipeline projects. Finally, Other income and deductions were higher in the quarter due to an impairment charge related to an acquisition.

調整後的營運支出增加了 11%，主要是由於 SG&A 支出增加，而 SG&A 支出增加了 10%，主要是由於競爭相關支出增加以及與 Zoetis 基金會資助相關的慈善捐款。由於競爭相關費用增加以及主要管道項目的投資組合進展，研發費用在營運基礎上增加了 17%。最後，由於與收購相關的減損費用，本季的其他收入和扣除額較高。

The adjusted effective tax rate for the quarter was 18.8%, an a decrease of 200 basis points, primarily due to higher [than net] dispute tax benefits in the quarter, a higher benefit in the U.S. related to foreign-derived intangible income and a more favorable jurisdictional mix of earnings. Adjusted net income grew 6% operationally and adjusted diluted EPS grew 7% operationally for the quarter. Capital expenditures in the fourth quarter were $198 million. For the full year, we had capital expenditures of $732 million. Lastly, we continue to return excess capital to shareholders. For the year, we have returned approximately $1.8 billion to shareholders through a combination of share repurchases and dividends. In December, we announced a 15% annual dividend increase. continuing our commitment to grow our dividend at or faster than the growth in adjusted net income.

本季度調整後有效稅率為 18.8%，下降 200 個基點，主要是由於本季度爭議稅收優惠高於淨額、美國與外國無形收入相關的優惠較高以及更有利的司法管轄區收益組合。本季調整後淨利營運成長 6%，調整後稀釋每股盈餘營運成長 7%。第四季資本支出為1.98億美元。全年資本支出為 7.32 億美元。最後，我們繼續將多餘資本回饋給股東。今年，我們透過股票回購和股利結合的方式向股東返還了約 18 億美元。 12 月，我們宣布年度股利增加 15%。繼續我們的承諾，使股息成長等於或高於調整後淨利潤的成長。

Now moving on to our guidance for the full year 2024. Please note that guidance reflects foreign exchange rates as of late January. We are expecting foreign exchange to have an unfavorable impact on our growth versus the prior year. At net revenue, we expect foreign exchange to negatively impact our growth by 90 basis points, with the impact being more pronounced early in the year and decreasing later in the year. On adjusted net income, we expect FX to negatively impact our growth by 150 basis points. with significant unfavorable impact in the first half of the year, transitioning to slight favorability in the second half of the year. As a reminder, we do not actively forecast FX. So these estimates assume rates remain where they were as of late January.

現在轉向我們對 2024 年全年的指導。請注意，指導反映的是截至 1 月底的外匯匯率。與前一年相比，我們預計外匯將對我們的成長產生不利影響。就淨收入而言，我們預計外匯將對我們的成長產生 90 個基點的負面影響，這種影響在今年年初更為明顯，並在今年稍後減弱。就調整後淨利潤而言，我們預計外匯將對我們的成長產生 150 個基點的負面影響。上半年負面影響較大，下半年轉為輕微正面影響。提醒一下，我們不會主動預測外匯。因此，這些估計假設利率保持在一月底的水平。

For 2024, we are projecting revenue between $9.075 billion and [$9.225 billion], representing a range of 7% to 9% operational growth with growth across both price and volume. We expect companion animal to be the primary growth driver in 2024. With the expected impact of the U.S. launch of Librela, we expect to see robust growth from our OA pain mAbs both in the U.S. and internationally. Our current clinic penetration levels for Librela in the U.S. are exceeding our expectations. And as Kristin mentioned, we have launched our DTC efforts ahead of schedule to drive increased pet owner awareness. Even with the expectation of competitive entrants, we anticipate mid- to high single-digit growth in both Simparica Trio and in our key dermatology portfolio. For livestock, 2023 exceeded our expectations. Our growth in the year benefited from several tailwinds, including improvements in supply in certain markets as well as competitive out of stocks. While our outlook for the upcoming year is more optimistic than it was as we enter 2023, we do expect our growth rate to normalize and be in line with livestock industry growth.

對於 2024 年，我們預計營收在 90.75 億美元至 [92.25 億美元]之間，營運成長範圍為 7% 至 9%，價格和銷量均有所增長。我們預計伴侶動物將成為 2024 年的主要成長動力。隨著 Librela 在美國上市的預期影響，我們預計我們的 OA 疼痛單株抗體將在美國和國際上實現強勁成長。目前 Librela 在美國的診所滲透率超出了我們的預期。正如 Kristin 所提到的，我們提前啟動了 DTC 工作，以提高寵物主人的意識。即使有競爭者進入的預期，我們預計 Simparica Trio 和我們的主要皮膚科產品組合都將實現中高個位數成長。對牲畜而言，2023 年超出了我們的預期。我們今年的成長得益於多項有利因素，包括某些市場供應的改善以及競爭性缺貨。雖然我們對來年的展望比進入 2023 年時更為樂觀，但我們確實預計我們的成長率將正常化並與畜牧業的成長保持一致。

I'd like to briefly touch upon the key assumptions that underpin our expectations for revenue growth. For companion animal, we are not projecting significant change to the current vet clinic trends. We expect U.S. visits to grow flat to 1% and expect to see growth in therapeutic visits aided by the impact of our OA pain products. For our companion animal parasiticides, we continue to expect meaningful growth from Simparica Trio. We expect new entrants will help continue to drive the conversion from topicals and collars to triple combination (inaudible) parasiticides, a space where we are the market leader. In our key dermatology products, we are prepared for competition and confident in our ability to defend and grow our share through our 3 differentiated dermatology products, the strength of our customer relationships and the expertise we have gained from almost 10 years in the space.

我想簡要談談支撐我們營收成長預期的關鍵假設。對於伴侶動物，我們預計當前的獸醫診所趨勢不會發生重大變化。我們預計美國的就診人數將持平至 1%，並預計在我們的 OA 疼痛產品的影響下，治療就診人數將會成長。對於我們的伴侶動物寄生蟲殺蟲劑，我們繼續期望 Simparica Trio 能取得有意義的成長。我們預計新進業者將有助於繼續推動從外用藥和項圈到三重組合（聽不清楚）寄生蟲殺蟲劑的轉變，而我們是該領域的市場領導者。在我們的關鍵皮膚科產品中，我們已做好競爭準備，並對透過我們的3 種差異化皮膚科產品、強大的客戶關係以及我們在該領域近10 年中獲得的專業知識來捍衛和擴大我們的份額的能力充滿信心。

Lastly, while we are not assuming a change in the current economic situation in China, we do expect a headwind to growth, especially in the first half as the situation worsened over the course of 2023.

最後，雖然我們不假設中國當前的經濟狀況發生變化，但我們確實預期經濟成長將面臨阻力，尤其是在上半年，因為 2023 年經濟狀況惡化。

Now moving on to the rest of the P&L. Adjusted cost of sales as a percentage of revenue is expected to be approximately 29.5%. We continue to make investments to ensure we can support expected future growth in our portfolio, especially in monoclonal antibodies. These investments are driving short-term margin impacts from lower [stat utilization.] This is offset by price increases and favorable product mix. Adjusted SG&A expenses for the year are expected to be between $2.17 billion and $2.22 billion, with the increase in 2023, focused on supporting primary drivers of revenue growth. Adjusted R&D expenses for 2024 is expected to be between $665 million and $675 million. Spend is driven by the advancement of key pipeline projects as well as higher competition related expenses.

現在繼續討論損益表的其餘部分。調整後的銷售成本佔收入的百分比預計約為 29.5%。我們繼續進行投資，以確保我們能夠支持我們產品組合的預期未來成長，特別是在單株抗體方面。這些投資正在推動較低的[統計利用率]對短期利潤率的影響。這被價格上漲和有利的產品組合所抵消。今年調整後的 SG&A 費用預計在 21.7 億美元至 22.2 億美元之間，2023 年將有所增加，重點是支持收入成長的主要驅動力。 2024 年調整後的研發費用預計在 6.65 億美元至 6.75 億美元之間。支出是由關鍵管道項目的進度以及競爭相關費用的增加所推動的。

Adjusted interest expense and other income and deductions is expected to be approximately $210 million. This is significantly higher than the prior year as our growth here is negatively impacted by the nonrecurring royalty settlement income we reflected in Q1 of 2023 as well as the impact of lower interest income. Our adjusted effective tax rate for 2024 is expected to be in the range of 20% to 21%. Adjusted net income is expected to be in the range of $2.65 billion to $2.70 billion, representing operational growth of 9% to 11%. Our guidance once again reflects our value proposition of growing revenue in line with or faster than the market. And growing adjusted net income faster than revenue. We expect adjusted diluted EPS to be in the range of $5.74 to $5.84 and reported diluted EPS to be in the range of $5.34 to $5.44. And finally, we are anticipating capital expenditures in 2024 to be in the range of $800 million to $850 million. These levels remain elevated compared to historical spend levels as we continue to make investments to support our future growth.

調整後的利息支出和其他收入及扣除額預計約為 2.1 億美元。這明顯高於上年，因為我們的成長受到 2023 年第一季反映的非經常性特許權使用費結算收入以及利息收入下降的負面影響。 2024 年調整後的有效稅率預計在 20% 至 21% 範圍內。調整後淨利潤預計在 26.5 億美元至 27 億美元之間，營運成長 9% 至 11%。我們的指導再次反映了我們收入成長與市場一致或快於市場的價值主張。調整後淨利的成長速度快於收入的成長速度。我們預計調整後的稀釋後每股收益將在 5.74 美元至 5.84 美元之間，報告的稀釋後每股收益將在 5.34 美元至 5.44 美元之間。最後，我們預計 2024 年的資本支出將在 8 億至 8.5 億美元之間。隨著我們繼續進行投資以支持未來的成長，與歷史支出水準相比，這些水準仍然較高。

To summarize, 2023 was another strong year. Even with distributor inventory headwinds entering the year and a challenging economic environment, especially in China. We again outperformed the market. We continue to grow share even in spaces where we face new competition, and we remain confident in our ability to expand existing markets and create new ones in the future. As we move into 2024, our guidance highlights our ability to again grow faster than the market, driven by our innovative product portfolio and multiple sources of growth as well as our ability to grow our bottom line faster than our pipeline while making meaningful investments for the future and returning significant excess capital to our shareholders.

總而言之，2023 年又是強勁的一年。儘管經銷商庫存在進入今年以來一直面臨阻力，而且經濟環境充滿挑戰，尤其是在中國。我們的表現再次跑贏了市場。即使在面臨新競爭的領域，我們的份額將繼續成長，我們對擴大現有市場和在未來創造新市場的能力仍然充滿信心。隨著我們進入2024 年，我們的指導強調了我們有能力再次以比市場更快的速度成長，這得益於我們的創新產品組合和多種成長來源，以及我們有能力以比我們的產品線更快的速度成長我們的利潤，同時為以下領域進行有意義的投資：未來並將大量多餘資本回饋給我們的股東。

Now I'll hand things over to the operator to open the line for your questions. Operator?

現在我將把事情交給接線員來解答您的問題。操作員？

(Operator Instructions) We will take our first question from Erin Wright with Morgan Stanley.

（操作員說明）我們將接受摩根士丹利艾琳·賴特 (Erin Wright) 提出的第一個問題。

So can you talk a little bit about the reorder rates and feedback and expectations around Librela for 2024 in the U.S. and some of those stocking dynamics that we should think about quarter-to-quarter. And then a bigger picture question just on margins and profitability, and there are some moving factors in 2024, such as FX and the ramp-up of Librela that weigh on margins. But can you talk a little bit more about the potential margin leverage that you could see across your business as you expand in some of those faster-growing and higher-margin categories in 2025 and beyond? And if you could describe a little bit more about that longer-term margin leverage.

那麼，您能否談談美國 2024 年 Librela 的再訂購率、反饋和預期，以及我們應該按季度考慮的一些庫存動態。然後是關於利潤率和獲利能力的更大問題，2024 年會有一些影響利潤率的因素，例如外匯和 Librela 的成長。但是，您能否多談談您在 2025 年及以後在一些增長更快、利潤率更高的類別中擴張時在整個業務中看到的潛在利潤槓桿？您能否詳細描述長期保證金槓桿。

Thank you, Erin. I will take the first question on Librela and let Wetteny take that second question. Yes, we were very pleased with how we did with Librela in the first full quarter of launch in Q4. As you saw, we did about $44 million in the quarter, $47 million for the year, including the early experience trial. And really how we achieved that was our penetration was ahead of schedule, as we mentioned in the prepared remarks, we -- given that penetration, which is in the high 60s, we actually began DTC ahead of what we were expecting. Reorder rates are coming in exactly where we expected in line with our expectations. So that makes us really confident as we go into the year. We're looking at what -- your other question was what kind of stocking or inventory build we saw in the clinic. It's hard to give you a firm number. It's somewhere between 1/4 and 1/3. I would say, overall in stocking. But look, this is the #1 selling pain product in Europe, and we have no doubt it will be that in the U.S. as well. So we're quite pleased and certainly ahead of our plan on penetration. And look with our direct-to-consumer advertising investments we've already started late last year and into Q1 to drive growth in this product in the U.S.

謝謝你，艾琳。我將回答關於 Librela 的第一個問題，並讓 Wetteny 回答第二個問題。是的，我們對 Librela 在第四季度發布的第一個完整季度的表現感到非常滿意。正如您所看到的，我們本季的營收約為 4,400 萬美元，全年營收為 4,700 萬美元，其中包括早期體驗試驗。事實上，我們是如何實現這一目標的，我們的滲透率提前了，正如我們在準備好的發言中提到的，考慮到滲透率高達60 多歲，我們實際上比我們的預期提前開始了DTC。再訂購率完全符合我們的預期。因此，這讓我們在進入新的一年時充滿信心。我們正在研究您的另一個問題是我們在診所看到了什麼樣的庫存或庫存建設。很難給你一個確定的數字。它介於 1/4 和 1/3 之間。我想說的是，總體而言，在庫存方面。但看，這是歐洲銷售第一的止痛產品，我們毫不懷疑它在美國也會如此。因此，我們非常高興，並且肯定領先於我們的滲透計劃。看看我們在去年年底和第一季就開始的直接面向消費者的廣告投資，以推動該產品在美國的成長。

So I'll let Wetteny take the second question?

那我請韋特尼回答第二個問題吧？

Yes, sure. Look, when looking at margins, yes, indeed, there are some moving factors when you think about 2024 and then beyond, we do have Librela in 2023, as we've said at Investor Day, if you look at our monoclonal antibodies at peak, particularly as we ramp up production in our capacity, which was built to make sure that we're confident in being able to take advantage of demand. They started being dilutive to the overall company average, for example, in 2023. As we go through 2024, Librela becomes accretive to our overall margins, but still below whether you would consider our innovative companion animal products. And as we exit '24 into 2025 and beyond, it becomes more in line with our innovative companion animal products.

是的，當然。看，在考慮利潤率時，是的，確實，當你考慮2024 年及之後的情況時，會出現一些變化因素，正如我們在投資者日上所說，如果你看看我們巔峰時期的單克隆抗體，我們確實會在2023 年推出Librela特別是當我們提高產能時，我們的產能是為了確保我們有信心利用需求而建立的。例如，從 2023 年開始，它們開始稀釋公司的整體平均水平。隨著我們進入 2024 年，Librela 會增加我們的整體利潤，但仍低於您是否會考慮我們的創新伴侶動物產品。隨著我們從 '24 退出到 2025 年及以後，它變得更加符合我們的創新伴侶動物產品。

So overall, beyond '24, I won't give you specific guidance here in terms of what to expect. But I think if you look at it, we continue to expect companion animal to outpace the growth of livestock. So that mix will continue to be favorable for us. And as we get into the higher levels of production from monoclonal antibodies, they are also accretive to overall margins. And we're positioned to be able to leverage our SG&A base as well. So all of those should translate to margin expansion through the P&L over time. But as we've demonstrated, we're not afraid to make the right investments behind our products, behind our key franchises as we see them, investments in R&D, as you saw in 2023. And as the guide implies, R&D will continue to grow faster than revenue as well. So those investments will slightly offset some of those, but we're positioned to continue to expand.

因此，總的來說，在 24 年之後，我不會在這裡為您提供有關預期內容的具體指導。但我認為，如果你仔細觀察的話，我們仍然預期伴侶動物的成長速度將超過牲畜。因此，這種組合將繼續對我們有利。隨著單株抗體產量的提高，它們也會增加整體利潤。我們也能夠利用我們的銷售、管理和行政費用基礎。因此，隨著時間的推移，所有這些都應該透過損益表轉化為利潤率擴張。但正如我們所證明的那樣，我們並不害怕在我們的產品、我們所看到的關鍵特許經營權背後進行正確的投資，以及對研發的投資，正如您在2023 年所看到的那樣。正如指南所暗示的那樣，研發將繼續成長速度也快於營收成長速度。因此，這些投資將稍微抵消其中一些，但我們準備繼續擴張。

We'll take our next question from Michael Ryskin with Bank of America.

我們將接受美國銀行邁克爾·里斯金 (Michael Ryskin) 提出的下一個問題。

First, I want to touch on margins maybe both for 2023 and 2024. So it looks like you're guiding back in the [analogue math] you're guiding to about 100 bps of margin expansion in 2024. But you also did finish '23 lower than we would have expected. I think 4Q especially came in significantly lower. And you called out some headwinds during the call in terms of FX. You call out some timing, some contribution to the Zoetis Charitable Foundation. Any way you could kind of back that out, give us sort of a cleaner number for what margins should have been in '23? And then maybe what some of those onetime headwinds would have as an impact to 2024. Just to give us a better sense of underlying margins and underlying EPS.

首先，我想談談 2023 年和 2024 年的利潤率。因此，看起來您正在[模擬數學]中進行指導，您正在指導 2024 年利潤率擴張約 100 個基點。但您也確實完成了“ 23低於我們的預期。我認為第四季的表現尤其明顯下降。您在電話會議中指出了外匯方面的一些不利因素。您指出了一些時機，以及對碩騰慈善基金會的一些捐款。你有什麼辦法可以反駁這一點，給我們一個更清晰的數字，說明 23 年的利潤率應該是多少？然後，也許這些曾經的逆風會對 2024 年產生什麼影響。只是為了讓我們更了解基本利潤率和基本每股盈餘。

And then my second question is just following up on Librela. I don't believe you actually quantified the target. So I want to -- just given what you did in 4Q, a major focus point. Is something like $200 million to $250 million for Librela for 2024 reasonable? And especially that's for U.S., but then on the OUS side, we've heard some concerns maybe coming out of the Europe and it seems like Librela has sort of been a little bit flat over the last couple of quarters in international markets. So any color on what's going on internationally?

我的第二個問題是 Librela 的後續行動。我不相信你真的量化了目標。所以我想——考慮到您在第四季度所做的事情，這是一個主要焦點。 2024 年 Librela 的 2 億至 2.5 億美元合理嗎？尤其是對於美國來說，但在 OUS 方面，我們聽到一些可能來自歐洲的擔憂，而且 Librela 在過去幾季的國際市場上似乎有點平淡。那麼國際上發生的事情有什麼色彩嗎？

Yes, sure, Mike. Let me take this and then see what Kristin wants to add. So take a look at margins. Indeed, in 2024, we are guiding to about 100 basis points of expansion in margins. Keep in mind, when you look at 2023 and how we ended, Q4 had about 100 basis points of margin impact and about 80 of that is from FX. So you're talking about roughly 20 basis points when you consider manufacturing costs and a little bit of mix. Now looking at mix, we had clearly really strong and quite frankly, a strong year in livestock. And we're actually here at the national sales meeting for our livestock with our livestock team in Utah, and look, they've had a great year, and we expect livestock continue to grow as we go into 2024, but clearly ended stronger at the end. So that created a little bit of a mix. Yes, and as well as Librela outperforming our expectations exiting the year is also, as I said, a bit dilutive. So when you look at mix and manufacturing costs, you're still talking about 20 basis points of headwind exiting '23. Most of the impact here is coming from FX about 80 basis points.

是的，當然，麥克。讓我來看看克里斯汀想補充什麼。所以看看利潤率。事實上，到 2024 年，我們預計利潤率將擴大約 100 個基點。請記住，當您回顧 2023 年以及我們的結局時，您會發現第四季度的利潤率影響約為 100 個基點，其中約 80 個基點來自外匯。因此，當您考慮製造成本和一些混合因素時，您談論的是大約 20 個基點。現在看看組合，我們顯然非常強勁，坦白說，畜牧業是強勁的一年。實際上，我們正​​在猶他州與我們的牲畜團隊一起參加全國牲畜銷售會議，看，他們度過了美好的一年，我們預計牲畜在進入 2024 年時將繼續增長，但顯然最終表現強勁結束。所以這創造了一點混合。是的，正如我所說，除了 Librela 超出我們今年的預期之外，也有點稀釋了。因此，當您考慮組合和製造成本時，您仍然在談論 23 年退出的 20 個基點的逆風。這裡的大部分影響來自大約 80 個基點的外匯。

The other items that we referenced in our prepared commentary with respect to impact on the quarter and how we ended FX as I just said that has the impact on our finish here. If you take a look at FX, which is clearly nonoperational and you factor nonrecurring items like the impairment charge for the prior acquisition. Those 2 items are about $0.07 of headwind in the quarter in 2023 in the fourth quarter. So that's really the vast majority of what you saw impacting us here. Of course, we don't forecast FX. So what we bake into our guidance for 2024 is essentially what would happen if we assume FX rates stay where they are. at the end of January here. And with that, on a constant basis, we would expect to expand margins in 2024. And so that's really consistent with how we've approached our forecasting in the past, and I will sit here and guess what FX is going to do throughout the year 2024, and that will have an impact either favorable or unfavorable, depending on how that goes.

我們在準備好的評論中提到的其他項目涉及對本季的影響以及我們如何結束外匯，正如我剛才所說，這對我們的結束有影響。如果你看一下外匯，它顯然是非經營性的，並且你會考慮非經常性項目，例如先前收購的減損費用。這兩項對 2023 年第四季的影響約為 0.07 美元。這確實是您在這裡看到的影響我們的絕大多數因素。當然，我們不預測外匯。因此，我們在 2024 年的指導中所考慮的基本上是假設匯率保持不變的話會發生什麼。一月底在這裡。因此，在持續的基礎上，我們預計 2024 年的利潤率將擴大。因此，這與我們過去的預測方式非常一致，我將坐在這裡猜測外匯在整個 2024 年將會做什麼。2024 年，這將產生有利或不利的影響，取決於事態發展。

For the other part of your question, I just want to maybe talk a little bit about Librela, how we expect Librela? Clearly, when you think about how we will deliver on 7% to 9% operational growth in revenue. Price is a pretty significant factor. We continue to expect to be running price above our historic levels of 2 to 3 points. And perhaps slightly below what you saw in 2023 at 5%. And then Librela with the U.S. launch, clearly is going to be a significant factor. Certainly $44 million in the quarter and Q4 was, again, very pleased to see that. We do see about 1/4 to 1/3 of that being initial stocking. So you can model that out in terms of what that would translate to. We're still in the early stages of our launch, but we're very pleased with what we're seeing so far as we discussed already. In international, we couldn't be more pleased with what we're seeing.

對於你問題的另一部分，我只想談談 Librela，我們對 Librela 有何期望？顯然，當您考慮我們如何實現 7% 至 9% 的營運收入成長時。價格是一個非常重要的因素。我們繼續預計運行價格將高於歷史水準 2 至 3 個點。也許略低於您在 2023 年看到的 5%。 Librela 在美國的推出顯然將成為一個重要因素。當然，本季的營收為 4,400 萬美元，第四季我們再次非常高興地看到這一點。我們確實看到其中大約 1/4 到 1/3 是初始庫存。因此，您可以根據其轉換結果對其進行建模。我們仍處於發布的早期階段，但我們對到目前為止所看到的情況非常滿意，正如我們已經討論的那樣。在國際比賽中，我們對所看到的一切感到非常滿意。

If you look at international, the fourth quarter you still have about 47% growth if you look at the base markets where we were launched at the beginning of the year. And then the new markets are driving another bit of growth. You have another $12 million contribution from those new markets in addition to the U.S. $44 million. So I think what we have to really take into account here is as we've been launching in markets. In Europe, there's some stocking that happens from quarter-to-quarter as we do those launches. If you factor those out and you just focus on those markets that we've already launched. We're talking about 47% growth in the quarter, which has been consistent over the last few quarters about [50%] give or take growth. So we couldn't be more pleased with what we're seeing in the international markets.

如果你看看國際市場，如果你看看我們年初推出的基礎市場，第四季仍然有 47% 左右的成長。然後新市場又推動了一點成長。除了 4,400 萬美元之外，這些新市場還提供了另外 1,200 萬美元的貢獻。所以我認為我們在這裡必須真正考慮的是我們已經在市場上推出的產品。在歐洲，當我們發布這些產品時，每個季度都會進行一些備貨。如果您將這些因素排除在外，那麼您只需關注我們已經推出的那些市場。我們談論的是本季 47% 的成長，這與過去幾季 [50%] 的成長保持一致。因此，我們對國際市場的情況非常滿意。

We'll move next to Jon Block with Stifel.

我們將和史蒂菲爾一起搬到喬恩·布洛克旁邊。

Wetteny, any revenue cadence in the year to call out? You've got sort of the easier 1Q '23 comp, but you were also noting more acute China headwinds in the first half. So just -- how do we think about it? Do we sort of look at it on a 2-year stack basis? And a bit on the guidance for the full year, maybe GM, we're a little bit below what we were thinking. But SG&A expense despite the investments, Kristin, that you called out, the accelerated DTC, the SG&A was a little bit lower than where our heads were at. So maybe you can just talk through those items why we're only seeing seems like low to mid-single-digit SG&A growth year-over-year. I don't know if some of that's blunted by FX? And then just finally, I'm sorry, Librela, due to the stocking, do you still expect Librela to be up in the U.S. 4Q '23 to 1Q '24 as it absorbs the stocking?

韋特尼，今年有什麼收入節奏值得關注嗎？ 23 年第一季的比較比較容易，但您也注意到上半年中國面臨的阻力更為嚴重。那麼，我們該如何看待這個問題呢？我們是否以兩年為基礎來看待它？關於全年的指導，也許通用汽車，我們有點低於我們的想法。但是，克里斯汀，儘管您提到了投資，加速了 DTC，但 SG&A 費用，SG&A 仍比我們的預期要低一些。因此，也許您可以討論為什麼我們只看到 SG&A 年比低至中個位數的增長。我不知道其中一些是否被FX削弱了？最後，我很抱歉，Librela，由於庫存的原因，您是否仍然預計 Librela 在美國 23 年第 4 季至 24 年第 1 季會上漲，因為它吸收了庫存？

Look, I'll take the cadence point first and then see what Kristin wants to add in terms of Librela expectations. Look, sitting here, I would expect a roughly balanced cadence across the year. Now let's take a look at Q1, which is a specific point you raised in your question, Jon. If you look in Q1, certainly if you look at companion animal in the U.S., this is an easier comp. We had destocking in the first quarter last year. clearly something we look to see as an easier comp we come up against. But at the same time, you had a 12% growth quarter in livestock in Q1. And so I think if you look to balance -- complete the balance, but it's livestock growth both in the U.S. as well as international. And then you have China, which clearly started to more deteriorate in terms of the economic conditions there throughout the year. So that becomes a heavier I would say, headwind coming into Q1 as well as the conditions -- weather conditions in Australia, et cetera, are having an impact there. So I think if you balance those out and last point I'll make is, Librela, clearly very pleased with how we exit Q4 and enter into Q1 but it's going to continue to contribute more and more as you go through the year. So Q2 and Q3 would be more than Q1.

聽著，我將首先考慮節奏點，然後看看克里斯汀想在 Librela 期望方面添加什麼。看，坐在這裡，我預計全年的節奏大致平衡。現在讓我們來看看 Q1，這是您在問題中提出的具體觀點，喬恩。如果你看看第一季度，當然如果你看看美國的伴侶動物，這是一個更容易的比較。去年第一季我們就去庫存了。顯然，我們希望看到我們遇到的更容易的比賽。但同時，第一季牲畜產量增加了 12%。所以我認為，如果你想要平衡——完成平衡，但這是美國和國際牲畜的成長。然後是中國，全年經濟狀況顯然開始進一步惡化。因此，我想說，第一季的逆風以及澳洲的天氣狀況等都對其產生了影響。因此，我認為，如果你平衡這些因素，我要說的最後一點是，Librela，顯然對我們退出第四季度並進入第一季的方式非常滿意，但隨著這一年的推移，它將繼續做出越來越多的貢獻。所以 Q2 和 Q3 會大於 Q1。

Therefore, the contribution from Librela accelerates through the year again it doesn't have as much relative to speaking in Q1. So when you take all those into consideration, I actually see a roughly balanced year. Now we did make references to FX. So from a reported basis, that, again, taking a look at where the FX rates were a couple of weeks ago, you do have a heavier impact in terms of both revenue and bottom line. When FX de facto, hopefully, what we provide in prepared commentary is helpful there. So that's the other piece you have to think about. But when I think about operational base growth, I mean, we did exit the year with good momentum as we exited Q4 and [it's] Q1, again, looking at U.S. companion animal, but that's how I think about it.

因此，Librela 的貢獻在這一年中再次加速，與第一季相比沒有那麼大。因此，當你考慮到所有這些因素時，我實際上看到了大致平衡的一年。現在我們確實提到了 FX。因此，從報告的基礎來看，再次看看幾週前的外匯匯率，您確實對收入和利潤產生了更大的影響。當外匯事實上出現時，希望我們在準備好的評論中提供的內容能有所幫助。這是你必須考慮的另一件事。但當我考慮營運基礎成長時，我的意思是，隨著我們退出第四季度和第一季度，我們確實以良好的勢頭結束了這一年，再次看看美國的伴侶動物，但這就是我的想法。

Now is Q1 is going to be higher than Q4 from a Librela perspective? I think if you factor about a [1/4] to a [1/3] of impact coming from stock, and that's $12 million to $15 million. So even if you had a flat that means you grew by $12 million to $15 million going into Q1. I won't call it exactly here. Right now, what I would say is we're pleased with how the product is performing, but we are still in the early stages of this launch.

現在從 Librela 的角度來看，第一季會高於第四季嗎？我認為，如果考慮 1/4 到 1/3 來自庫存的影響，那就是 1200 萬到 1500 萬美元。因此，即使您擁有一套公寓，也意味著您在第一季的收入增長了 1200 萬至 1500 萬美元。我不會在這裡準確地稱呼它。目前，我想說的是，我們對該產品的表現感到滿意，但我們仍處於發布的早期階段。

We'll take our next question from David Westenberg with Piper Sandler.

我們將回答 David Westenberg 和 Piper Sandler 提出的下一個問題。

So last year, we saw some discounting in front of the NexGard combo launch. Do you anticipate there might be similar competitive dynamics in front of Elanco's Quattro launch? And how are you thinking about that in consideration with the gross margins? And then just a second one on just the DTC efforts on Librela. I don't think there is DC allowed in Europe. But can you talk about maybe some of the learnings that you learned in Europe in terms of marketing and how they might apply specifically around communication of the vet obviously is the one that understands the superior safety profile with monoclonal antibodies and maybe how that messaging can come out?

所以去年，我們在 NexGard 組合推出之前看到了一些折扣。您預計在 Elanco 推出 Quattro 之前可能會出現類似的競爭動態嗎？考慮到毛利率，您對此有何看法？接下來是關於 DTC 在 Librela 上所做的努力的第二篇文章。我不認為歐洲允許使用 DC。但是，您能否談談您在歐洲學到的一些行銷方面的經驗，以及它們如何專門應用於與獸醫的溝通，顯然是了解單株抗體的卓越安全性的人，也許是如何傳達這一訊息的出去？

Sure. I'll start with that one and Wetteny can certainly build on it. I mean I want to first underscore, we had a very strong Q4 with Trio with 21% growth in the quarter with competition. For the year, overall Trio grew 9%. So we're very pleased with that as we guided and Wetteny mentioned earlier, we're expecting mid- to high single-digit growth in Trio for the year. So this obviously underscores and we think we'll see that both in price and in volume. So we do anticipate, obviously, a competitor entering I'm not exactly sure what -- how Credelio Quattro will do it. Our expectation is that is not a differentiated product. They do mention tapeworm, but you get tapeworm from fleas then we actually control fleas. So therefore, that's really not a differentiated product. So we are used to having good competitors, obviously, with NexGard, I'm sure there'll be some heavy promotional. But I think our strength, honestly, with our corporate accounts, the experience switching is low for people with this product. It's very unlikely someone on Trio is going to switch. We're doing quite well with retail and auto ship, which I think also protects us. And we expect a new competitor to expand the market.

當然。我將從這個開始，韋特尼當然可以在此基礎上繼續發展。我的意思是，我想首先強調，我們的第四季度 Trio 表現非常強勁，在競爭中該季度增長了 21%。今年，Trio 整體成長了 9%。因此，我們對此感到非常滿意，正如我們的指導和 Wetteny 之前提到的那樣，我們預計 Trio 今年將實現中高個位數成長。因此，這顯然強調了這一點，我們認為我們會在價格和數量上看到這一點。因此，顯然，我們確實預計會有競爭對手進入，但我不確定 Credelio Quattro 將如何做到這一點。我們的期望是這不是一個差異化的產品。他們確實提到了絛蟲，但你從跳蚤中感染了絛蟲，然後我們實際上控制了跳蚤。因此，這實際上不是一個差異化產品。因此，我們已經習慣了擁有優秀的競爭對手，顯然，對於 NexGard，我確信將會有一些大力的促銷活動。但我認為，老實說，我們的企業客戶的實力對於使用該產品的人來說體驗切換很低。 Trio 中的某個人不太可能會改變。我們在零售和汽車運輸方面做得很好，我認為這也保護了我們。我們預期新的競爭對手將擴大市場。

What we're seeing a lot is a movement into the triple combos out of topicals, collars, et cetera. So as we look at that, we're confident in our Trio number as we look into the year. And with regards to your question on what have we learned from Librela in Europe? So we cannot do branded advertising for Librela in Europe, but we can do overall advertising for disease awareness and encouraging people who have pets both dogs and cats with osteoarthritis pain to bring them to the vet. And we are seeing real impact of that disease awareness. I think it's been a long time where pet owners have not had a product that they could turn to and encouraging them that there is a new product and then they should go to the vet and be seen. We are seeing really positive uplift from direct-to-consumer advertising even when it's not branded. So I don't know Wetteny, if you want to add into that?

我們經常看到的是從主題、項圈等轉向三重組合的趨勢。因此，當我們展望這一年時，我們對我們的 Trio 數字充滿信心。關於你的問題，我們從歐洲的 Librela 學到了什麼？因此，我們無法在歐洲為Librela 做品牌廣告，但我們可以做整體廣告，以提高人們對疾病的認識，並鼓勵那些養有患有骨關節炎疼痛的寵物（包括狗和貓）的人帶它們去看獸醫。我們正在看到這種疾病意識的真正影響。我認為寵物主人已經很長時間沒有可以求助的產品了，並鼓勵他們有新產品，然後他們應該去看獸醫。我們看到直接面向消費者的廣告確實帶來了正面的提升，即使它沒有品牌。所以我不認識韋特尼，你想補充嗎？

Look, I think you covered it Kristin. Trio has been performing really well for us in the face of drug competition in the U.S. couldn't be more pleased. And to be gaining patient share in the face of competition. I think that speaks a lot to what we've been talking about, which is the power of our relationships, the strength of our label and being first to market. So look, there'll be some initial, I'm sure, heavy promotion that happens when a new competitor comes in with factor some of that into our thinking here. But until we see the label and see what they do, we won't hold in on specific reaction and so on, but we're very confident in our ability to grow continued growth franchise, and we're saying we're going to see mid- to single-digit growth across Trio in 2024 as well.

聽著，我想你已經涵蓋了克里斯汀。面對美國的毒品競爭，Trio 的表現非常出色，我們對此感到非常高興。並在競賽中贏得患者份額。我認為這充分說明了我們一直在談論的內容，即我們關係的力量、我們品牌的力量以及率先進入市場的力量。所以看，當新的競爭對手加入並將其中的一些因素納入我們的思考時，我確信，將會發生一些初步的重大促銷活動。但在我們看到標籤並看到他們做了什麼之前，我們不會堅持具體反應等等，但我們對我們持續增長特許經營權的能力非常有信心，我們說我們將到2024 年，Trio 也將實現中位數到個位數的成長。

We'll take our next question from Nathan Rich with Goldman Sachs.

我們將回答高盛內森·里奇 (Nathan Rich) 提出的下一個問題。

I wanted to ask on the Derm franchise. I think you had talked about mid- to high single-digit growth for the franchise overall. I guess, specifically, are you assuming a headwind within that guidance from the competitive entry that's likely to occur against Apoquel this year? And can you talk about the strategies you're maybe putting in place to defend market share for that product? And then a quick follow-up on China. Could you maybe frame the type of headwind that you expect in China in 2024? And does that impact more on the companion or livestock side of the market?

我想問一下關於 Derm 特許經營權的問題。我想你已經談到了整個特許經營權的中高個位數成長。我想，具體來說，您是否假設今年可能會出現針對 Apoquel 的競爭性進入，從而在該指導中帶來阻力？您能否談談您為捍衛該產品的市場份額而可能採取的策略？然後是對中國的快速跟進。您能否描述一下您預計 2024 年中國將面臨的逆風類型？這對市場的伴侶或牲畜方面影響更大嗎？

Sure. I'll take the derm question, and I think Wetteny can follow up on your China question. Look, we saw strong growth both in the quarter and overall in derm at 8%. And I just want to underscore that, that growth is obviously understated given the price -- if you're looking at the prepriced buy-in that we saw in late 2022. As we look at our guidance for mid- to high single-digit growth for our derm franchise in 2024, that is the expectation that we will see a competitor launch. We expect this market to continue to expand and grow as we've talked about. There are 85 million dogs in the U.S. You have pruritus. There is still over 6 million untreated dogs and 3.5 million who are treated but with steroids and sort of over-the-counter products. So we strongly believe this is a market we can continue to expand.

當然。我將回答真皮問題，我認為韋特尼可以跟進你的中國問題。看，我們看到真皮在本季度和整體上都實現了 8% 的強勁增長。我只是想強調一點，考慮到價格，這種增長顯然被低估了——如果你看看我們在 2022 年底看到的預先定價的買入。當我們看到我們對中高個位數的指導時到2024 年，我們的derm 特許經營權將實現成長，這就是我們將看到競爭對手推出的預期。正如我們所討論的，我們預計這個市場將繼續擴大和成長。美國有 8500 萬隻狗，你有搔癢症。仍有超過 600 萬隻狗未經治療，還有 350 萬隻接受了治療，但使用了類固醇和某種非處方產品。因此，我們堅信這是一個我們可以繼續擴大的市場。

Look, we've had 2 products been on the market, 7 and 10 years, respectively. We've had millions of dogs on these products. Our products have been proven over time to be safe and efficacious and they're trusted by pet owners. They're trusted by vets. And we're seeing more and more a switch to Cytopoint, build a preference for compliance by both the pet owner and the vet, and our competition, we're expecting to come in a film-coated tablet. And if you look at that, we're really focused on investing in Apoquel chewable and moving them to chewable pet owners really prefer. We've been successful in doing this in Europe. We're quite focused on doing this in the U.S. And we're also continuing to look at innovation in the short term on the long-acting. So we are going to defend this franchise. We're confident in this franchise, our guidance of mid- to high single digits demonstrates that we believe we can continue to grow this market in the U.S. and around the world, not just defend our brand, but continue to bring life cycle innovation to the space over time to grow our share.

你看，我們有 2 個產品已經上市，分別是 7 年和 10 年。我們已經有數百萬隻狗使用了這些產品。我們的產品已被證明是安全有效的，並且受到寵物主人的信任。他們受到獸醫的信任。我們看到越來越多的人轉向 Cytopoint，建立了寵物主人和獸醫對合規性的偏好，而我們的競爭對手，我們期望推出薄膜包衣片劑。如果你看一下這一點，我們確實專注於投資 Apoquel 咀嚼片，並將其轉移到寵物主人真正喜歡的咀嚼片上。我們在歐洲已經成功地做到了這一點。我們非常專注於在美國進行這項工作，我們也將繼續專注於長期有效的短期創新。所以我們要捍衛這個特許經營權。我們對這個特許經營權充滿信心，我們的中高個位數指引表明，我們相信我們可以繼續在美國和世界各地發展這個市場，不僅是捍衛我們的品牌，而且繼續為世界帶來生命週期創新隨著時間的推移，我們的份額有成長的空間。

Wetteny, do you want to take China?

韋特尼，你想拿下中國嗎？

Yes, sure. And one point on derm of course, we have a mid- to high single-digit growth expectation that we laid out in our guidance. of course, across a broad range of expectation there, there's various scenarios around competitor entry, timing, pricing, et cetera, will play into that and the label that they have, of course, will be playing into how that plays out. But we're confident in our ability to grow. Our franchise has been around for a decade in this space.

是的，當然。當然，關於 derm 的一點是，我們在指導中提出了中高個位數的成長預期。當然，在廣泛的期望範圍內，圍繞著競爭對手的進入、時機、定價等存在各種情況，這些都會影響到這一點，而他們所擁有的標籤當然也會影響到結果。但我們對自己的成長能力充滿信心。我們的特許經營權在這個領域已經存在了十年。

On China, we've been consistent on this one. I think we continue to see sort of the broad economic situation there to remain where it is. We're not expecting to deteriorate nor improve at least through the first half of our year, and we also have stronger comps similar to the second half of 2023, little bit less so into the first half of '24, but still a headwind into the first half of '24. You continue to see consumer confidence being low and swine prices are remaining fairly depressed in consumption there as well. So all those factors, of course, in long term, we continue to expect China to be a strong growth market. It has done exceptionally well for us over the last decade. But in the near term, we're not expecting that to be a contribution to growth. In fact, we'll see some declining comps in the first half on China.

在中國問題上，我們在這一點上是一貫的。我認為我們繼續看到那裡的總體經濟狀況保持現狀。我們預計至少在今年上半年不會惡化或改善，而且我們也有類似於 2023 年下半年的更強的比較，到 24 年上半年的情況要少一些，但仍然是一個逆風24年上半年。您仍然看到消費者信心低迷，而且那裡的消費生豬價格仍然相當低迷。當然，所有這些因素從長遠來看，我們仍然預期中國將成為一個強勁成長的市場。在過去的十年裡，它為我們做得非常好。但在短期內，我們預計這不會對成長做出貢獻。事實上，上半年我們會看到中國的業績下降。

We'll take our next question from Balaji Prasad with Barclays.

我們將接受巴克萊銀行巴拉吉·普拉薩德 (Balaji Prasad) 提出的下一個問題。

A couple. Firstly, I just wanted to understand the currency dynamics better, considering that most of the nearly 100 basis points return revenue and 150 basis points yet on EPS seems to be going from here. Why is FX so severe and any particular currencies hurting you? I mean my general understanding is with $4 billion of -- $4-plus billion of export revenues and dollar weakening, I thought the impact would have been the other way around. Second question is around the FDA letter that Zoetis received on Librela in November. I wanted to understand how frequent or normal are these kinds of letters on the animal health side and the issues that FDA found with Librela's promotion with the inclusion of the P value on the secondary end points, and what is the current status now with regard to your communication with FDA.

一對夫婦。首先，我只是想更了解貨幣動態，考慮到大多數近 100 個基點的收入回報和 150 個基點的 EPS 似乎都是從這裡開始的。為什麼外匯如此嚴重並且任何特定貨幣都會傷害您？我的意思是，我的一般理解是，如果出口收入達到 40 億美元——超過 40 億美元，而美元疲軟，我認為影響會是相反的。第二個問題是圍繞 Zoetis 在 11 月收到的關於 Librela 的 FDA 信函。我想了解此類信件在動物健康方面的出現頻率或正常程度，以及 FDA 在 Librela 推廣中發現的問題，其中包括次要終點的 P 值，以及目前的狀況如何您與 FDA 的溝通。

Sure Balaji, so I'll take your second question first and then let Wetteny take it. I see you're referencing the letter back in November. Honestly, the letter is uneventful and was well addressed. We immediately resolved the request for clarification, what you're talking about is a request for clarification on our promotional materials. We just made a minor change to the promotional materials and how we represented some statistical data. The concerns are well addressed and the modifications were accepted by the FDA. I mean this isn't uncommon. So I don't -- that was easily resolved last year, that was a minor issue.

當然，巴拉吉，所以我先回答你的第二個問題，然後讓韋特尼回答。我看到你提到的是 11 月的那封信。老實說，這封信內容平淡無奇，而且寫得很好。我們立即解決了澄清請求，您所說的是對我們的宣傳資料進行澄清的請求。我們只是對宣傳資料以及一些統計數據的表示方式進行了微小的更改。這些擔憂得到了很好的解決，FDA 也接受了這些修改。我的意思是這並不罕見。所以我不認為──去年這個問題很容易解決，那是一個小問題。

But Wetteny, do you want to take the second question?

但是Wetteny，你想回答第二個問題嗎？

Yes, sure. On currency dynamics. And again, we don't forecast FX. So we tend to report out what we see the impact is. And the dollar continues to strengthen against the number of currencies that we operate in. And there's a little bit of a disproportional effect that we see on some of the higher inflationary markets like Argentina, if you follow Argentina, there have been 2 really significant drops in terms of FX rates versus the dollar, if you follow back as we ended last year, both in December and I think back in August. And there's a little bit of a delayed effect on those clearly there's an impact on top line that we've talked about. But there's also a little bit of a delayed effect if you look at the impact it has on inventory and receivables that are on the books at the time. So by the time you collect those, they have a greater impact, which is why you see the impact down to bottom line. So combinations [volumes.] Argentina, Brazil, Turkey, those are more pronounced in their relative percentage of our revenues, given how significantly they [de-value.] That's what you're seeing play out. But really across the board, if you look at how the dollar ended the year, it ended a bit stronger than you saw throughout the average of the year.

是的，當然。關於貨幣動態。再次強調，我們不預測外匯。因此，我們傾向於報告我們所看到的影響。美元相對於我們經營的貨幣數量繼續走強。我們在阿根廷等一些通膨較高的市場上看到了一點不成比例的影響，如果你關注阿根廷，就會發現有兩次真正顯著的下跌就外匯匯率與美元而言，如果你回顧去年的情況，無論是在12 月，還是在8 月。對於我們已經討論過的那些顯然對營收有影響的人來說，有一點延遲的影響。但如果你看看它對當時帳面上的庫存和應收帳款的影響，也會有一點延遲效應。因此，當您收集這些內容時，它們會產生更大的影響，這就是為什麼您會看到影響到底線。因此，阿根廷、巴西、土耳其的組合[數量]在我們收入中的相對比例更為明顯，考慮到它們[貶值]的程度。這就是你所看到的結果。但實際上，如果你看看美元在今年結束時的表現，你會發現它的收盤比你在全年平均水平上看到的要強一些。

We'll take our next question from Brandon Vazquez with William Blair.

我們將回答布蘭登·巴斯克斯和威廉·布萊爾提出的下一個問題。

First, can you talk a little bit about the prepriced buying in the quarter. Are you able to quantify how much of a headwind that was? And then maybe talk about should we expect that to be a headwind going forward at all? Are you guys still working through that? And a follow-up to that, just maybe higher level. Is there anything in the pipeline or kind of in product cycle management that you guys can share with us, you're still spending a lot of money in R&D and even for next year, it looks like that may not be a specific area to get leverage off of the R&D line. So anything that you'd be able to share with us there would be helpful.

首先，您能談談本季的預定採購情況嗎？你能量化這有多大的阻力嗎？然後也許談談我們是否應該預期這會成為未來的逆風？你們還在努力解決這個問題嗎？以及後續的，也許只是更高的水平。你們在產品週期管理方面有什麼可以與我們分享的嗎？你們仍然在研發上花費了大量資金，甚至在明年，看起來這可能不是一個需要獲得的特定領域研發線外的槓桿作用。因此，您能夠與我們分享的任何內容都會有所幫助。

Yes, sure. I'll take the first one and then Kristin will cover the second one. Look, there's always some level of prepriced buying in our -- as we exit the year given where what our price increases are going to be I would say, compared to the prior year where there was higher than average reprice buying as seen in 2022 into 2023, which had the impact on '24, we more actively managed customer orders in terms of reprice buying exiting 2023. And that gave us really first, the underlying market strength and momentum that we carried into but also, I would say, our quarter position walking into January 2024, we're certainly in a better position than, say, the prior year. So we more actively manage those, but there's always some level in the numbers.

是的，當然。我將負責第一個，然後克里斯汀將負責第二個。看，在我們退出這一年時，考慮到我們的價格上漲幅度，我想說，與前一年相比，我們總是存在一定程度的預先定價購買，2022 年的重新定價購買量高於平均水平2023 年，這對'24 產生了影響，我們在2023 年退出的重新定價購買方面更積極地管理客戶訂單。這給了我們真正的第一，我們所帶來的潛在市場實力和動力，而且我想說，我們的季度進入 2024 年 1 月，我們的處境肯定比前一年更好。因此，我們更積極地管理這些，但數字總是存在一定程度。

Sure. And the question with regards to R&D. Obviously, we are very confident in our pipeline. I think we've been the most innovative company in animal health. And if you look at the -- how we exceeded market growth every year for the last 11 years, it is due to the innovation in our pipeline. We are investing both for the short, medium and long term. In animal health, different than human health, that really makes a difference. You look at sort of what I call like life cycle enhancements that we just launched such as Apoquel chewable, which will significantly support our key brands. We're also looking at pretty disruptive innovations as well. As you look at sort of the short 1- to 3-year term of innovation, we're excited really for some of our long acting. And we've talked a lot about investing in the medium to long term and really important new franchises as well, such as renal, chronic kidney disease spaces, looking at cardiology, looking at oncology and diabetes, there's really important spaces of unmet medical need in animal health that we're really excited to tackle. We're continuing to invest behind our diagnostics as well as behind our livestock business. Looking at new vaccines and immunomodulators in our genetics business. So we have a very diverse pipeline because we have a diverse portfolio. So we're continuing to invest behind that and remain very confident in that.

當然。還有關於研發的問題。顯然，我們對我們的管道非常有信心。我認為我們是動物健康領域最具創新性的公司。如果你看看過去 11 年我們如何每年都超越市場成長，這要歸功於我們產品線的創新。我們進行短期、中期和長期投資。在動物健康方面，與人類健康不同，這確實很重要。你看看我們剛剛推出的我所說的生命週期增強產品，例如 Apoquel 咀嚼片，它將極大地支持我們的關鍵品牌。我們也在尋找相當顛覆性的創新。當您看到短期的 1 到 3 年創新期限時，我們對我們的一些長期行動感到非常興奮。我們已經談論了很多關於投資中長期和非常重要的新特許經營權的問題，例如腎臟、慢性腎臟病領域、心臟病學、腫瘤學和糖尿病領域，還有未滿足的醫療需求的非常重要的領域在動物健康領域，我們非常高興能夠解決這個問題。我們將繼續投資於我們的診斷以及畜牧業務。在我們的遺傳學業務中尋找新的疫苗和免疫調節劑。因此，我們擁有非常多樣化的管道，因為我們擁有多樣化的產品組合。因此，我們將繼續對此進行投資，並對此保持信心。

We'll take our next question from Chris Schott with JPMorgan.

我們將回答摩根大通的克里斯·肖特 (Chris Schott) 提出的下一個問題。

Just 2 for me. Just latest on vet visit growth. I know it's not the primary driver of growth for your business, but you're targeting 0% to 1% this year. I'm just trying to get more color on what is the underlying kind of dynamics here. Is this mostly still vet capacity? Is it macro dynamics? Just any color there would be appreciated. And then my second question was just coming back to Librela ex U.S. From your perspective, how penetrated is the market for monoclonals at this point? And where do you see the largest opportunity for growth in these markets? I'm showing a sense of like we're in the second inning or the seventh inning of the ramp ex U.S.

對我來說只有2個。最新的獸醫就診增長情況。我知道這不是您業務成長的主要驅動力，但您今年的目標是 0% 到 1%。我只是想更多地了解這裡的潛在動態。這主要還是獸醫能力嗎？是宏觀動態嗎？任何顏色都會受到讚賞。然後我的第二個問題是回到美國以外的 Librela。從您的角度來看，單株抗體市場目前的滲透率有多大？您認為這些市場中最大的成長機會在哪裡？我表現出一種感覺，就像我們正處於美國賽場的第二局或第七局一樣。

Sure. I mean, starting on the first, we are not very levered as we've spoken about many times before to vet business. I mean obviously, they're not inconsequential our view of 0% to 1% is that's where it's historically been. That is historically what you see in vet clinic visits over time. So I think we're really saying it's back to normal. What's really happening is there's strong end market demand. There remains some capacity issues in the U.S. But I think some of that's being addressed by more stuff going to auto ship and retail and online, which has also been supporting it. But we really sort of view the year as you look into the year for 2023, although we saw flat vet visits, we saw revenue and revenue per visit up 7.5%. So we really are seeing really strong growth, obviously, overall in revenue, and we're much more correlated over time with that, just given the strength of our portfolio, et cetera.

當然。我的意思是，從一開始，我們就沒有像我們之前多次談到的那樣有足夠的槓桿來審查業務。我的意思是，顯然，它們並不是無關緊要的，我們對 0% 到 1% 的看法就是歷史上的情況。從歷史上看，這就是您在獸醫診所就診時看到的情況。所以我認為我們真的是在說一切都恢復正常。真正發生的是終端市場需求強勁。美國仍然存在一些產能問題，但我認為其中一些問題正在透過更多的汽車運輸、零售和線上產品來解決，這也一直在支持它。但我們確實像展望 2023 年一樣看待這一年，儘管我們看到獸醫就診次數持平，但我們看到收入和每次就診收入增長了 7.5%。因此，我們確實看到了整體收入的強勁增長，考慮到我們投資組合的實力等，隨著時間的推移，我們與收入的相關性會更高。

And to your second question with regards to Librela outside the U.S., I think we're still early innings. And really where I think we see the growth is right now, that product is primarily being used in severe dogs. I think getting it into more moderate dogs. I mean, I think, obviously, at least somewhere -- I mean in my 50s, I will say, my hip hurts right now. But everyone doesn't know that is around me. And so the reality is osteoarthritis exists in animals long before they're limping and can't walk up the stairs. And the more we can control that pain early, I think, is critical. So I think what we're really trying to change the paradigm is getting Librela in first-line use for animals with osteoarthritis pain and getting it into more of those moderate dogs. And we think we more -- we can do that, the more we can continue to grow the market here and grow our franchise. So we know, we believe we're in early innings across the globe with regards to osteoarthritis pain with both Librela and certainly with Solensia, where we still have to continue to grow awareness for osteoarthritis pain in cats.

關於你關於美國以外的 Librela 的第二個問題，我認為我們仍處於早期階段。事實上，我認為我們現在看到的成長是，該產品主要用於嚴重的狗。我認為將其應用到更溫和的狗身上。我的意思是，我想，顯然，至少在某個地方——我的意思是，在我 50 多歲的時候，我會說，我的臀部現在很痛。但每個人都不知道它就在我身邊。事實上，骨關節炎早在動物一跛一跛、無法上樓梯之前就已經存在了。我認為，我們越能及早控制這種疼痛，至關重要。因此，我認為我們真正想要改變的範式是將 Librela 納入患有骨關節炎疼痛的動物的一線使用，並將其用於更多溫和的狗身上。我們認為我們越能做到這一點，我們就越能繼續擴大這裡的市場並擴大我們的特許經營權。所以我們知道，我們相信我們在全球範圍內對於 Librela 和 Solensia 的骨關節炎疼痛還處於早期階段，我們仍然需要繼續提高對貓骨關節炎疼痛的認識。

We'll now take our next question from Stephen Scala with TD Cowen.

現在我們將回答 Stephen Scala 和 TD Cowen 提出的下一個問題。

This is Chris on for Steve. We have 2 questions. First, on Librela. To what degree are U.S. debt capacity constraints, the headwind to longer-term treatment compliance? And then is there a regulatory path for the approval of an at-home administrative formulation?

這是克里斯替史蒂夫發言。我們有 2 個問題。首先，關於 Librela。美國債務能力限制在多大程度上阻礙了長期治療合規性？那麼國內行政制定審批是否有監理路徑呢？

Sure. Obviously, making sure that pet owners can get in monthly for their injections is critical. So vet capacity is certainly something that we're quite focused on. But I think after the first visit, this is an injection that can certainly be done by a vet tech. And I think the industry is really focused, and we've been partnering with corporates the AVMA with lots of people to really think about how to change the paradigm of vets to vet techs and clinics and things like that. So we believe there are solutions to really address some of the vet capacity issues. So far, globally, and by the way, this vet capacity issue is not just a U.S. issue, it's global. So far, it hasn't affected the growth of our key products. And your second question is with regard to home delivery. You want to take that one?

當然。顯然，確保寵物主人每月都能接受注射至關重要。因此，獸醫能力肯定是我們非常關注的。但我認為第一次就診後，這種注射絕對可以由獸醫技術人員完成。我認為這個行業確實很專注，我們一直在與 AVMA 的企業合作，有很多人真正思考如何改變獸醫的範式，以獸醫技術和診所之類的方式。因此，我們相信有解決方案可以真正解決一些獸醫能力問題。順便說一句，到目前為止，在全球範圍內，獸醫能力問題不僅僅是美國的問題，而是全球性的。到目前為止，它還沒有影響我們主要產品的成長。你的第二個問題是關於送貨上門的。你想拿走那個嗎？

Yes. Look, I think the regulatory path to that isn't really the direction we're going in terms of where we think we can make an impact here. Livestock and innovation, not only in our OA pain mAbs, but across our portfolio, really important. And as I look ahead, I think longer-acting formulations, both Solensia and Librela will be the direction that will help with this, even though as Kristin said, we're not seeing any significant impact in terms of our ability to grow the mAbs. I think initial visits where the vet has to see the pet and do the injection beyond that, the techs are able to do it, et cetera. And that varies a bit, but we don't see that as being a significant impact for us.

是的。聽著，我認為監管路徑並不是我們認為可以在這裡產生影響的真正方向。畜牧業和創新，不僅在我們的 OA 疼痛單株抗體中，而且在我們的產品組合中，都非常重要。展望未來，我認為長效製劑，Solensia 和 Librela 將是有助於實現這一目標的方向，儘管正如 Kristin 所說，我們沒有看到對單株抗體生長能力產生任何重大影響。我認為在初次就診時，獸醫必須查看寵物並進行注射，技術人員能夠做到這一點，等等。這略有不同，但我們認為這不會對我們產生重大影響。

We'll take our next question from Navann Ty with BNP Paribas.

我們將回答法國巴黎銀行的 Navannin Ty 提出的下一個問題。

I have 2 ones on Librela and one on Trio. The first one on Librela. With continued investments in 2024, what are the remaining SG&As in addition to the current testing campaign -- and just a clarification, do you currently expect Librela to become potentially gross margin accretive in 2025. And then on Trio, can you help us explain the switches from (inaudible) plus? Are they mostly from [BI's on like card] rather than from Simparica Trio and you see uptake from BI on younger dogs and puppies mostly.

我在 Librela 上有 2 個，在 Trio 上有 1 個。第一個關於 Librela 的。隨著2024 年的持續投資，除了當前的測試活動之外，剩餘的SG&A 是什麼——只是澄清一下，您目前預計Librela 是否會在2025 年實現潛在的毛利率增長。然後在Trio 上，您能幫我們解釋一下嗎？從（聽不清楚）加切換？它們主要來自[類似卡上的 BI]，而不是來自 Simparica Trio，您會看到 BI 的吸收主要集中在年幼的狗和幼犬上。

I'll take the first one on Librela. Look, of course, we are going to be making investments, and we already started because as you heard in the prepared commentary, our penetration levels are running above our expectations, and we've launched DTC on Librela, and we're already doing the DTC across Europe and international markets as well. As we look ahead, we did make significant investments in our field force going back about 1.5 years or so ago. So we're able to leverage those investments, and we don't see incremental investments beyond those to drive our expectations and take advantage of demand on the product. The gross margin picture, as I mentioned earlier, it is dilutive if you look at 2023 and particularly because you saw us outperform expectations on Librela in 2023, right?

我會選擇 Librela 上的第一個。看，當然，我們將進行投資，而且我們已經開始了，因為正如您在準備好的評論中聽到的那樣，我們的滲透水平超出了我們的預期，我們已經在Librela 上推出了DTC，而且我們已經在做DTC 也遍及歐洲和國際市場。展望未來，大約 1.5 年前，我們確實對現場人員進行了大量投資。因此，我們能夠利用這些投資，並且我們沒有看到超出這些投資的增量投資來推動我們的預期並利用產品的需求。正如我之前提到的，如果你看看 2023 年，毛利率會被稀釋，特別是因為你看到我們在 2023 年的表現超出了 Librela 的預期，對嗎？

As you go into 2024, Librela margins are actually accretive to the overall company margin leverage above. So 70%-ish gross margins for the company, Librela is above that, but it's below the gross margins that you would see in our innovative companion animal brands. As we get beyond 2024, you will start to see the -- at those innovative levels, which is above -- well above the company average. So hopefully, that helps clarify that point. Trio, as we've said, we've seen really strong performance in Trio, posting double-digit growth, Trio grew 17% in the U.S. in Q4 and we continue to gain patient share, which means, again, switching is low when you have a product that's safe effication has been in the market. for almost 4 years now. So we're very pleased with what we're seeing. I don't know if Kristin, you want to add.

進入 2024 年，Librela 的利潤實際上會增加上述公司整體利潤槓桿。 Librela 公司的毛利率為 70% 左右，高於這個數字，但低於我們創新的伴侶動物品牌的毛利率。當我們跨過 2024 年時，您將開始看到，在這些創新水平上，遠高於公司平均水平。希望這有助於澄清這一點。 Trio，正如我們所說，我們看到 Trio 的表現非常強勁，實現了兩位數的增長，Trio 在美國第四季度增長了 17%，我們繼續獲得患者份額，這再次意味著，當您有一種安全有效的產品已上市。到現在已經快4年了。所以我們對所看到的非常滿意。我不知道克里斯汀你是否想補充。

The only add, we're doing quite well with puppies. U.S. specifically with regards to puppies. I mean puppies are on the Trio label. So I just want to emphasize that. I know it wasn't on the original Simparica. So I mean, really, if you're looking at new starts, we see a lot of puppies and we see a lot of conversion from single and dual agent customers to a triple combination and certainly a movement to more people from topical to oral. So there's lots of ways for us to continue to gain market share for that product, but we're doing quite well with puppies to answer that other part of your question.

唯一補充的是，我們在小狗方面做得很好。美國特別是在小狗方面。我的意思是小狗是在 Trio 標籤上的。所以我想強調這一點。我知道它不在最初的 Simparica 上。所以我的意思是，實際上，如果你正在尋找新的開始，我們會看到很多小狗，我們看到很多從單一和雙重代理客戶到三重組合的轉變，當然還有更多人從局部到口頭的轉變。因此，我們有很多方法可以繼續獲得該產品的市場份額，但我們在小狗方面做得很好，可以回答您問題的其他部分。

And there seems to be no further questions at this time. I'll turn the call back to the speakers for any closing remarks.

而此時似乎沒有進一步的問題了。我會將電話轉回給發言人，讓他們發表結束語。

Great. Thank you all so much for the questions. And honestly, your continued interest in Zoetis. I want to underscore that the enduring strength of the human animal bond for pet owners expectations of human quality healthcare for pets and the need for safe and secure food supply all underscore that animal health industry is essential and very durable. We remain confident about our strategy and the ongoing value proposition because we know that our colleagues will make a difference every day in everything that we're doing. And with their support, I want to reiterate that we expect to grow faster than the market again in 2024, not just a line and to grow operational revenue by mid- to high single digits. We are firmly committed to investing in our innovative pipeline, our portfolio and the DTC programs we need to support the broadening and building billion-dollar franchises. The animal health industry is resilient even in times of uncertainty, and we are poised to navigate these challenges because our portfolio diversity, our commitment to exceptional customer experience, operational excellence and agility, and we look forward to keeping you updated on our progress in future calls. Thanks so much for joining us today, guys. Have a great day.

偉大的。非常感謝大家的提問。老實說，您對碩騰的持續興趣。我想強調的是，人類動物紐帶的持久力量，寵物主人對人類高品質醫療保健的期望，以及對安全可靠食品供應的需求，都強調了動物保健行業的重要性和持久性。我們對我們的策略和持續的價值主張仍然充滿信心，因為我們知道我們的同事每天都會為我們所做的一切做出貢獻。在他們的支持下，我想重申，我們預計 2024 年將再次快於市場成長，而不僅僅是一條生產線，並且營運收入將實現中高個位數成長。我們堅定地致力於投資我們的創新產品線、產品組合和 DTC 計劃，以支持擴大和建立數十億美元的特許經營權。即使在不確定的時期，動物保健產業也能保持彈性，我們已做好應對這些挑戰的準備，因為我們的產品組合多樣性、我們對卓越客戶體驗、卓越營運和敏捷性的承諾，我們期待向您通報我們未來的進度來電。非常感謝你們今天加入我們，夥伴們。祝你有美好的一天。

Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time.

謝謝。今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。