Almirall, S.A.

Good day and thank you for standing by. Welcome to the Almiralfull Year 2024 Results and Business Update conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star 11 on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Pablo Divasson. Please go ahead.

Thank you very much, Nadia. Good morning, everyone. Thank you for joining us for today's quarterly earnings update and review of Almiral's 2024 full-year financial results. As always, we are sharing the slides we are using today in the investor section of our website at almiral.com. Please move to slide number two. Let me remind you that the information presented in this call contains forward-looking statements, which involve known and unknown risk, uncertainties, and other factors that may cause actual results to materially differ from what we are sharing today. Please move to slide number three. Presenting today, we have Carlos Gallardo, Chairman and Chief Executive Officer, Mike MacKillen, Chief Financial Officer, and Carl Singapur, Chief Scientific Officer. Carlos will start with an strategic overview and mid-term guidance. The business highlights covering 2024 and will also give us an update specifically on our biologic portfolio as key growth drivers in our medical dermatology portfolio. Carl will provide you with an R&D status update highlighting the progress of our pipeline. Mike will then talk you through the financials before Carlos closes and we open up for your questions. Now, I will hand over to Carlos Gallardo, our chairman and CEO, for an introduction.

Thank you very much, Pablo, and good morning to everyone in the call. So 10 years ago, we took the strategic decision to focus exclusively on medical dermatology as we anticipated a fast-growing market driven by the tremendous unmet need of patients suffering with skin conditions. but also because of the increased understanding of disease biology on a number of diseases. Today, I'm happy to say that we got it right. Medical dermatology is already a 46 billion market worldwide and poised to grow 7.5% on a compounded annual growth rate. In this context, We have executed very well on our strategy, having been able to either source or to internally develop products in all these key categories. As a reminder, the growth of this market is being driven today thanks to the biologics in psoriasis and in atopic dermatitis, and that's where we have our key products, Idumetri and Eplis. But also, let's not forget that we have other very exciting programs that are helping patients tremendously, such as Winthora, Clay City, Cyclopoli, and more recently, Jublia, that will contribute to drive the growth of this company going forward. Since I became CEO two years ago, we saw this tremendous opportunity in this nice and growing market. So we've been focusing on investing to make sure we could deliver on the biologics and we could position Endless and Illumetri as key first-line products in moderate to severe patients. I'm happy to say that everything's working according to plan and we're entering a new era of accelerated growth and margin expansion. In addition to working in building the right capabilities to maximize the growth and the potential of these brands, we were also focusing, of course, in shaping the future, in getting ready to deliver the next wave of innovation in our labs in San Feliu, but also in sourcing externally the next wave of innovation to continue to grow the company in the years to come. A few weeks ago, I was in San Francisco at the J.P. Morgan healthcare conference, and we provided midterm guidance for the first time that I'm happy to reiterate and confirm today. We envisage double-digit sales compounded annual growth rate from now until the end of the decade, and EBITDA to continue to expand up to around 25% by 2028. And this is while skipping our R&D investment rate at around Moving into the guidance, I'm delighted to say that we have surpassed our 2024 guidance and we have delivered double-digit net sales growth versus the high single-digit that we had anticipated 12 months ago. And EBIT as well, we anticipated a range of 175 to 190, and we have surpassed this range, landing in 192.6 million. Moving into this year, and very aligned with the midterm guidance that we signaled or we commented a number of weeks ago, now we're going to be doing what we've been doing in 2024, that is executing well on the launches and executing well in in the rfd front so we envisage to accelerate our net sales growth from 10 to 13 percent this year and ebitda again align with the guidance a bit of margin expansion and we expect to launch the ebitda between 220 and 240 a million in 2025. moving to the next slide if we double click on 2024 and some highlights what has worked well I would highlight that what has worked well is the execution, the capability of our teams to execute consistently on our strategy ranging from pricing to market access to marketing to commercial Every single department across the value chain has delivered flawlessly in 2024. I'm going to take this opportunity also as I know that some of my colleagues are connected to the call to congratulate them because the performance in 2024 has been fantastic and the beginning of 2025 seems to be very strong as well. I'm not going to dwell on the finances as we have already commented on them, but in terms of the key growth drivers, You know, great growth in the biologics continued to gain market share, both in psoriasis and in atopic dermatitis, but also not forgetting our other growth drivers, such as glycerin, we thought that they have performed extremely well. And moving to R&D pipeline, we have continued in 24 to develop our pipeline. And Kyle will comment on the different specifics, but I would like to highlight the inclusion of two new assets in our clinical stage, the free-through introducer and the IL-21. So going back to the biologics, if we move forward to the next slide, please, we can see that combined we expect to reach more than 800 million. And this guidance on peak sales was also updated during the GP more than confidence. And again, this is a testimony of the markets that are going very well. The classes where we have our assets are becoming the winning classes. And also we continue, and we envision to continue to gain market share in this market thanks to the great execution of our teams and the strong partnering that we have with dermatologists. If we move into the psoriasis market in particular, what we can see here is how the psoriasis market has evolved in the past 10, 15 years. We have seen that it has grown exponentially thanks to the inclusion of new acid classes and new technologies. And we could look at the market and think that this is already a mature market, but it's not the case because these 365,000 patients represent only around 20% of the number of eligible patients for this type of advanced treatment, advanced systemic treatments. So this is still tremendous opportunity for market expansion. It's a tremendous opportunity to continue to help patients through partnering with dermatologists, and this is our strategy. Within this context and within this quickly expanding market, our product, Illumetri, has continued to perform really well and has performed very well because one as i said before we're in a nicely growing market within this nicely growing market our our our mechanism of action the anti-l il-23 has become in europe the winning class the go-to class for dermatologists to treat moderate to severe patients and within this class we are gaining market share and we're gaining market share because it's a great profile because of the great execution of our teams, because of our strong partnering with dermatologists, and also I would like to remind you that last year we launched the 200 milligram presentation, which is providing additional flexibility to prescribers to achieve their treatment goals, and in particular with these patients that are overweight or have a high burden of disease. We don't think that these dynamics are going to change in the near future. We expect these dynamics to continue in 2025 and beyond. Moving to atopic dermatitis, and this is a slide showing a little bit the market and market evolution. We see atopic dermatitis market very similar to the psoriasis market, but we are around 10 years where the psoriasis market was. We see today that there are, at least 2023, there were 81,000 or 82,000 patients treated. That is less than 10% of the total number of eligible patients. So tremendous growth, but we see this market to continue to grow in the year to come. And we look at 2031 estimates that there will be 400,000 patients treated. And we believe that this projection probably is a bit conservative. So again, we see tremendous opportunity in this market to continue to help patients. And this market will continue to expand until 2030 and beyond. Within this favorable backdrop, we launched, next slide please, we launched EGLIS in Germany in late 23. So we have now a full year of commercialization of the product in Germany. And we're delighted to see how the product is performing in this key market. We have achieved already the second largest dynamic new person share in Germany. The feedback that we're getting from physicians is very good. and we already have thousands of patients in therapy. Also, we have launched already in other countries, but remind you that this is 33 million that we have achieved in 2024 are coming largely from Germany, because in the other countries that we launched in 2024, and we are still in the market access stage. So we are getting the product in the formularies, we are getting the product in the different hospitals, and in some cases we have to go either region by region or hospital by hospital. However, this effort is going to pay off this year, in 2025. So you can expect this year 2025 to see a strong contribution from Germany, but already a sizeable contribution from the other markets. If we move to the next slide, this illustrates the launch sequence. As I said before, we launched in Germany in 2023, and a number of additional countries in 2024. And from these countries, these six countries, we should already start to see a strong contribution in 2025. In 2025, we have launched in a number of additional countries, or we are planning to launch. There will be up to 12 countries in 2025. I have to say that The execution in terms of pricing and market access is going everything either according to plan or sometimes surpassing expectations. For example, in Spain, we've been able to achieve reimbursement six months ahead of what typically takes. And the same thing in some cases in other countries. Not only the price that we are achieving, but also sometimes in how quickly we're achieving these prices. so and i think that's a great testimony again of our ability to execute but also what we're finding is that payers want these products and this is helping us a lot to accelerate our agenda in this front so so far um things going very well in at least in 24 with illuminati and eclipse and we anticipate this dynamic should to continue 25 and beyond Next, if we move to the next slide, I invite Carl to give us an update on the positive progress in R&D in our pipeline.