Luke

Luke asked about the clinical endpoints for ARV-102 in PSP, including early ones and what regulators seek for a registrational trial, and if there's a backup commercialization plan for vepdegestrant if a collaboration isn't secured by the PDUFA date.

Answer

President and CEO Randy Teel confirmed that the vepdegestrant partnership process is moving well with Pfizer, and a backup plan is on their radar if needed. Chief Medical Officer Noah Berkowitz stated that the PSP rating scale is the gold standard endpoint for PSP, and while the Phase 1B won't be fully powered, it will identify trends. He also mentioned incorporating eye movement and muscle movement indicators into studies for their predictive potential.

Luke asked about the clinical endpoints, including early ones and regulatory requirements, for ARV-102 in PSP to support a registrational trial, and if there is a backup commercialization plan for vepdegestrant if a collaboration is not secured by the PDUFA date.

Answer

Randy Teel (President and CEO) stated that the vepdegestrant partnership is on track, and Pfizer is well-situated to address issues if a partner isn't found by the PDUFA. Noah Berkowitz (CMO) explained that the PSP rating scale is the gold standard for registrational trials, and they will also incorporate indicators like eye movements or muscle movement in early studies, though these are not yet accepted as registration-quality tools.

Luke, on behalf of Alex Blostein, asked about Ameriprise's longer-term expense algorithm beyond 2026, specifically if a low single-digit growth rate is a reasonable expectation given ongoing investments and re-engineering efforts. Luke also sought clarification on Ameriprise's positive cash generation in the Advice & Wealth Management business, asking if it implies organic cash growth ex-seasonality, and how the pace of cash growth might evolve in a potentially lower interest rate environment.

Answer

Chairman and CEO Jim Cracchiolo affirmed that a low single-digit expense growth rate is reasonable, considering inflation and rising costs from external technology vendors. CFO Walter Berman added that Ameriprise continuously manages to margin, balancing investments with ongoing re-engineering and leveraging its broad platform for efficiency. Cracchiolo confirmed underlying organic cash generation, supported by new product capabilities. He suggested that in a lower rate environment, clients might shift from money markets to sweep accounts for transactional and investment purposes, potentially increasing sweep balances.