Almirall, S.A.

Good day and thank you for standing by. Welcome to the Armoural H1 2025 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pablo Deverson, Head of Investor Relations. Please go ahead.

Thank you very much, Heidi, and good morning, everyone. Thank you for joining us today's quarterly earnings update and review of Admiral's first half year financial results of 2025. As always, we are sharing the slide we are using today in the investor section of our website at admiral.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 are Carlos Gallardo, Chairman and Chief Executive Officer, Mike McGillan, Chief Financial Officer, Carl Ziegabar, Chief Scientific Officer, and we also have John Garay, our new CFO, joining us for the first time today. Carlos will start with the business highlights covering the first half of 2025, followed by an update especially on biologics, as the key co-drivers of our medical dermatology portfolio. Kai will provide you with the R&D status update regarding our pilot. And Mike will then talk you through the finances before Carlos concludes the presentation, and we open for questions. And we hand over to Carlos Gallardo, our chairman and CEO. Please move to slide number five.

Thank you, Pablo, and good morning, everyone. Almirai's performance in the first half of 2025 reflects the strength and consistency of our sustained long-term growth strategy. We are happy to reaffirm our full-year 2025 guidance, as well as our midterm outlook and peak sales expectations. This confidence is underpinned by the solid momentum across our medical dermatology portfolio, where we continue to expand access to meaningful treatments for patients and physicians. Alvarez's position as a European leader in medical dermatology has never been stronger, supported by our commitment to innovation and operational excellence. EBLIS continues to deliver strong sales growth during the second quarter of 2025, driven by a robust uptake in Germany and positive traction from recent country launches. Illumetri continues to display steady year-on-year growth, which supports our peak self-expectations that we are happy to reconfirm today. Meanwhile, Winthor and Glyceria remain important contributors to our European revenue base, reinforcing the strength of our dermatology portfolio. We have maintained strong engagement in the medical dermatology field this year, participating in major events such as a 2025 annual AAD meeting, the 16th Skin Academy in Barcelona, the 11th World Congress of Melanoma, the 21st EADO Congress, and most recently, the 2025 International Congress of Dermatology, ICD, in Rome. As a key part of our business development efforts, we actively pursue external innovation opportunities in early and mid-stage clinical development, aiming to strengthen our pipeline and broaden our impact in dermatology. We are excited to share that we have recently expanded our collaboration agreement with CIMSIR to now include new B-specific antibodies for immunodermatology diseases. Carl will soon share further insights on this opportunity, along with the remaining pipeline updates. Please move to slide seven for an update on our biologics portfolio. Illumetri continues to demonstrate good momentum within the psoriasis market. solidifying its position within the broader and the IR23 class. The recent rollout of the 200 milligram formulation has been well received and is contributing nicely to our performance. We also received a positive CHMP opinion regarding inclusion of the new scalp trial data. This strengthens silumetric differentiation and reinforces the perceived efficacy of silumetric in treating patients suffering from scalp psoriasis. In quarter to 2025, Illumetri generated net sales of 58 million, marking a 13% increase year over year. This growth reinforces our confidence in the brand's trajectory, as it has consistently delivered solid year-on-year-on-year growth since its initial European launch back in 2018. We continue to reaffirm our pixel guidance of over 300 million. Illumetri remains a key growth driver in our portfolio. and we believe it's well positioned to make a lasting impact to patients in the evolving psoriasis treatment landscape. Now that our partner, Sun Pharma, has successfully completed the psoriatic arthritis studies, we are assessing the commercial viability of expanding Illumetri into this indication. As a reminder, Almirai holds the right to develop and commercialize Illumetri in Europe, which includes new indications. Please move to the next slide on EBLIS Highlights. Epiglyphs continues to deliver a strong performance just over a year and a half since its launch in Germany in December 2023. Cumulative sales have now reached 79 million. We view this as the most successful atopic dermatitis launch in recent years, reflecting strong market uptake and effective commercial execution. Overall, the advanced therapies market for atopic dermatitis in the EU5 is experiencing strong growth. expanding at an annual rate of approximately 30 to 40%. Our disciplined approach to launch execution and commercial rollout resulted in a solid market position in Germany and has laid the groundwork for successful expansion across Europe. Within the first year, Eblis captured the second highest dynamic new patient share in the German market, and we are seeing similar trend in other markets. Reimbursement pricing outcomes have been favorable. which we are very pleased about. This reflects the higher net need for advanced treatment options in this disease and the value that national healthcare systems place on innovations in this space. Brand awareness has also based benchmarks in various markets within one year from the launch. First half-year sales quadrupled over year-on-year and rose 31% quarter-on-quarter, reaching around 25.5 million. While Germany remains the largest contributor of Eprilis, early launch countries are beginning to scale following a promising initial uptake. Eprilis is now Almirai's second highest selling product, available in most major European markets, covering over 90% of our total sales potential. As of today, the product is commercially reimbursed in 14 European countries. We are expecting to launch in Portugal and Ireland before the end of the year. Our collaboration with Lilly continues to be highly constructive, fostering valuable knowledge exchange that supports ongoing market development. I will now hand over to Carl to provide an update of the progress of the company's pipeline and R&D efforts.

Thank you, Carlos, and good morning to everyone on the call from my side. This slide now shows you the status of our pipeline. Let me highlight the progress we've made in the last couple of months. Our phase three study to evaluate the efficacy and safety of t-banidoline applied to a treatment field larger than 25 square centimeters and up to 100 square centimeters in adult patients with actinic keratosis, med primary, and key secondary endpoints. Detailed results will be presented in an upcoming scientific meeting. We are working on filing with EMA and aim to launch in 2026. Together with our partners, we continue to work on expanding the labels for our key products, Ilumetri and Eptilis. Our partner, Sun Pharma, recently announced the top-line results of two-phase restudy to assess the efficacy and safety of Tiltrakizumab in patients suffering from psoriatic arthritis. Both trials met their primary endpoints. We are currently analyzing the results in detail and will keep you updated on next steps. Together with our partner, Eli Lilly, we are running a joint clinical development program to make libricizumab available to additional patient population. The different programs are well on track and a detailed overview can be found in the appendix. We have recently received the top line results from the 48 weeks interim analysis of the ADLONG study. This study is designed to further explore the long-term safety and efficacy of lepricizumab in patients with moderate to severe atopic dermatitis. The interim results at one year indicate excellent maintenance of efficacy and safety. When these findings are combined with data from the parent study, they support that the majority of patients whose disease was very controlled after a 16-week induction phase can maintain their response for up to four years with an excellent safety profile. Details of the study will be published at a forthcoming scientific meeting. Recruitment of our AD-HOPE studies is progressing very well. AD-HOPE 1 and 2 are phase 3b open-label studies to evaluate the effectiveness and safety of a 24-week leprechaun treatment in adult and adolescents with moderate to severe atopic dermatitis. In the ATO2 trial, we have started to explore a 500 milligram Q12 weekly maintenance schedule to explore an extended treatment interval in this phase. We have created an exciting early clinical pipeline addressing novel mechanisms and best-in-class compounds in high medical need skin diseases. In the coming 12 months, we plan to initiate four proof-of-concept phase 2 clinical studies across the spectrum of different dermatological diseases. Let me highlight some of the progress. For our anti-IL-1 red monoclonal antibody, we have completed phase 1 single and multiple ascending doses in healthy volunteers. Our anti-AL1 rep monoclonal antibody demonstrated a favorable safety and tolerability profile in healthy volunteers, along with a low immunogenicity risk. We have also explored pharmacokinetics and safety in patients suffering from hydradenitis superativa, with similar results as seen in healthy volunteers. These data support further development of this anti-algal rep monoclonal antibody, and we plan to start a phase two study later this year. Together with our partners in SEER, we are developing a so-called altimutin FC fusion protein to stimulate regulatory T cells as a novel approach to treat autoimmune skin diseases. We have recently completed phase one and plan to progress to phase two within the following months. Furthermore, we have expanded our collaboration with Sincere to jointly discover and develop novel multispecific antibodies for the treatment of various autoimmune skin diseases. This collaboration adds to our bispecific antibody that we have already in preclinical development. Bi and multi-specific antibodies are emerging as the next wave of therapeutic advancement in a broad range of autoimmune diseases. Combining our complementary capabilities and geographic footprint, we believe this collaboration has the potential to generate significantly better therapeutic options for patients suffering from autoimmune skin diseases. In summary, we are progressing very well with both our early and late-stage pipeline. With that, I will hand over to Mike for the financial review.

Thank you, Carl, for the updates on our R&D pipeline. As Carlos mentioned earlier, we are pleased with how our consistent execution continues to translate into tangible results. In the first half of 2025, we delivered a solid performance with net sales up nearly 13% year-on-year, fully aligned with our guidance. Our European dermatology portfolio remains a key growth engine for boosting our overall net sales and reinforcing our path toward leadership in medical dermatology. Gross margin reached 65.5% of sales, supported in part by the out-licensing impact reported in the first quarter. Evita for the first half came in at 121.8, a 17% increase versus the same period last year, driven by the strong top-line growth and helped by the Q1 out-licensing transactions. SG&A rose 8% to $251 million, reflecting our continued investment in the endless rollout. R&D spending increased by about 27% year-on-year, representing 12.8% of net sales. We had a more evenly distributed quarterly spending in 2025 compared to last year, resulting in a higher R&D investment in the second quarter versus the same period last year. Q2 R&D investment was slightly ahead of external expectations, despite being in line with our annual target in relation to sales. We closed the first half with a net debt to EBITDA ratio of 0.4 times. Despite the illimitary milestone in dividend payments in the second quarter, cash flow generation remains solid. Our level of leverage continues to be low, providing us with significant flexibility to pursue licensing opportunities or targeted bolt-on acquisitions. These results reinforce our confidence in the full year 2025 guidance and the midterm outlook we shared earlier this year. Let's move on to the details of the sales breakdown on slide 13. The European dermatology business delivered a great performance, achieving 24% year-on-year increase for the first half, and I'll dive into the details on the next slide. In general medicine and OTC, European sales were primarily influenced by the recent divestment of Adjidal and the outlicensing of Secosone. Excluding these portfolio moves, the segment remained broadly stable. As the delayed allergy season continued, the erosion of Ephesive, Tessavelle, and a lower sales of minor products were offset by a solid contribution for Alma. In terms of outlicensing and royalty income, we expect the full year 2025 to land around $10 million ahead of 2024. These transactions form part of our ongoing strategy to extract maximum value from the portfolio, including the Q1 transaction I mentioned earlier. Performance declined in the U.S., and I'll provide further insights on the next slide. Lastly, while general medicine remained broadly stable in the rest of the world, dermatology experience of site declined. Let's take a closer look at the dermatology business on the next slide. Our European dermatology business segment continues to thrive, with Illumetri and Ebvis as the primary drivers, but other growth drivers such as Cliteria and Windsor are making progress with their launches in key European markets. Ebvis sales reached $45 million in the first half, becoming our second-ranked product overall after around 18 months on the market, driven by uptake in the recently launched markets. This result is in line with our expectation and enhances our confidence in its strong growth trajectory. Moskilerins and Cyclopoli maintain similar levels to last year. The U.S. business recorded a year-on-year decline. While the Klyceri large field launch continues to generate some positive momentum, these gains have been offset by the continuous pressure on the legacy portfolios. Products such as Tazerac and Axone remain affected by ongoing generic competition, and we had a small stock out of Cordura and Tate following a manufacturing change. Additionally, Saysara sales are slightly lower than previous year, mainly due to a decline in the overall oral antibiotic market for Anthony. The rest of the world saw different dermatology sales year on year due to less minor licensing income than we had last year. Let's now move on to the complete financial statements on slide 15. Let's review the rest of the P&L, starting with some elements Carlos mentioned earlier. Gross margin moderated to 65.5% in Q2 2025, following elevated Q1 levels. This has been temporarily boosted by the outlicensing impact in Q1. Looking ahead, we expect to have some continued pressure on margins due to the evolving sales mix and higher royalty levels linked to elementary growth. We maintain our full year guidance, as outlined in the February call, of gross margin percentage equal or slightly lower than 2024. Going forward, we see additional pressure on gross margin percentage due to high royalties and cost of goods of our biologic growth drivers. Our R&D investments have risen to 12.8% of net sales, up from 11.4% in the first half of 2024. And we expect this to remain steady in the second half, while last year ramped up investments in the second half. We anticipate landing in the range of 12.5% of net sales for R&D for the full year. SG&A investments grew by 8% compared to the first half of 2024. We expect the high single-digit growth to continue in 2025 as we focus on launching EBLIS in the new markets and supporting existing ones. Going forward, we see much lower increase in the following years as we will have the full infrastructure in place for biologics already. Financial expenses improved year-on-year, mainly due to a $6 million positive impact of the valuation of the equity swap, driven by the share price gain year-to-date. Just a reminder that our effective tax rate continues to be impacted by the fact that U.S. tax losses cannot be offset against profits generated in Europe, as mentioned in our full-year guidance. Please move to the next slide, and we'll take a look at the balance sheet. The main item to highlight on the balance sheet this quarter is the investment in tangible assets. In addition to some R&D capitalization related to EBLIS Phase 4 studies, Key investments also include a milestone upon the successful phase one of our anti-IO1 wrap monoclonal antibody, which we enlicensed from ICNOSPAC in 2021. The total impact has been outweighed by higher depreciation. Our net debt ratio remains low at 0.4 times, supporting continued flexibility for potential inorganic growth. The increase in net debt primary reflects the elementary milestone, triggered last year in Q4 that was paid in Q2 this year. Let's take a look at the cash flow statement next. We generated $57.6 million in operating cash flow during the first half of 2025, although changes in working capital were more pronounced than in the same period last year, mainly due to higher receivables from the higher sales level. These were largely offset by the increase in profit before tax. In addition to net financial income, which includes the impact of the equity swap, other adjustments reflect some additional pending cash collections. Cash outflows related to investments were lower in the first half of 2024, primarily because of significant payments made in January 2024 following the ABDIS launch. The key investment in Q2 2025 was an additional $45 million milestone payment linked to elementary sales that was triggered in the end of 2024. Remaining investments during the period primarily reflect scheduled milestones under the existing agreements, including the payment to ICNOS following the successful completion of the Phase I trial of our anti-IL-1 rep monoclonal antibodies. Cash givens were higher this year due to a lower level of script dividends selected by shareholders. Please proceed to the next slide. As announced earlier in the year, I am stepping down from my role as CFO, and I plan to leave Almarol in mid-September. As this is my last earnings call with the company, I want to thank all of the investors, analysts, and others that follow our financial communications for their support and patience in recent years as we reshape the future of the company through significant investments in our new launches and our R&D pipeline. We are now starting to see the initial payoff of these efforts, and I'm happy to hand over to John who started earlier this week, who will take this forward. John brings to the role more than 25 years of experience in finance and business leadership across the pharmaceutical, medical device, and telecommunications sectors. His deep expertise in specialty medicines and his strong track record in financial leadership make him exceptionally well suited to support Almerell's continued growth as a leading player in medical dermatology. John is here with us today as part of the handover process So, I'll now turn it over to him.

Thanks a lot, Mark, for your kind introduction, and good morning, everyone. I feel honored to be here with you all today and join Almiral at this exciting point in time, a company with a tremendous legacy that keeps the patient at the center of everything it does. I'm excited for the opportunity to collaborate with Almiral's talented and passionate team and sustainable profitable growth to be delivered in upcoming years aligned with 2030 vision. I would like to thank Mike for his support and help during my onboarding. We are working very closely to ensure a smooth transition from day one with a solid focus on business continuity, building up on the good work that has already been accomplished. I look forward to meeting many of you in the upcoming months and quarters. And with this, I would like to hand it over back to Carlos for his closing remarks.

Thank you, Mike, and thank you, John, and a very warm welcome. On behalf of the board and the entire M&A team, I would like to thank Mike McClellan for his leadership and dedication during his tenure as CFO. His contributions have been instrumental in strengthening our financial foundation and supporting our strategic direction. We wish him continued success in his future endeavors. As Mike confirmed, we remain fully on track to meet our 2025 guidance and mid-term outlook. Our ambition is to achieve a double-digit net sales compounded annual growth rate through 2030 and reach an EBITDA margin of approximately 25% by 2028. As we close the second quarter of 2025, we are encouraged by the continued momentum driven by the median EBITs, which are propelling total sales growth into double digits. Looking ahead, We anticipate further pipeline developments in the next 12 to 24 months. Over the past decade, we've built a strong foundation in medical dermatology, which continues to offer meaningful opportunities for both growth and margin expansion. What differentiates Almira in this evolving landscape is a combination of scientific depth, operational excellence, a pipeline with disruptive potential, including several first and best-in-class assets. and our close, long-standing relationship with dermatologists and patient communities across Europe. I'm proud to say that over 400,000 patients have been treated with Alvirae's new dermatological products in 2025. And when I mean new dermatological products, I refer to Eblis, Lumetri, Glycerin, and Wintora. Our capital allocation strategy remains disciplined and focused. We continue to invest in current and upcoming launches to drive mid-term growth. strengthen our pipeline through internal R&D and in licensing, maintain a stable dividend, and remain open to targeted business development and licensing opportunities, supported by a solid equity position and prudent financial approach. We are excited about the road ahead towards strengthening our leadership in medical dermatology. With that, I will pass the word back to Pablo for Q&A.

Thank you very much, Carlos. Heidi, back to you for the Q&A, please.

Thank you. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. We will take our first question and the first question comes from the line of Shan Hamer from Jefferies. Please go ahead, your line is open.

Hi there, thank you for taking my questions. There's two from me. So, firstly, what are the current competitive dynamics between Eblis and Nimluvio in Europe? I know Nimluvio only launched earlier this year, but is there anything you can provide on this front? And then, secondly, do you find that there's an increasing use of biologics in Europe, like Eblis in biologic naive patients? Thank you.

I missed the second part of the second question. Can you please repeat it?

Yeah, of course. Do you find that there's an increase in use of biologics like EpGlyph in Europe in biologic naive patients?

Sure.

Thank you, Sian. I think it's no surprise that we see new entrants in atopic dermatitis because it's a tremendously exciting market that still has tremendous and many potential. Yes, and Mluvio have been recently launched that has indication for pulmonic nodularis. and has a IL-31 mechanism. We believe that for AD, the main cytokine is IL-13. So, and, you know, we'll see the role that Nembruglio plays in prurigo nodularis going forward. In terms of the second question, the use of biologics, yes, I mean, we've seen it. We saw it in the past in the psoriasis market. Whereas we see new entrants, what the new entrants and new classes do is they expand the market. And because there are still a big percentage of eligible patients of moderate to severe disease that are not treated. We are seeing the same dynamics, although at an early stage in the atopic dermatitis market. So, yes, we believe that new entrants, what we'll do is expand the market and increase the access of these novel and exciting treatments to patients suffering from atopic dermatitis.

Thank you. Thank you. We will take our next question. Your next question comes from the line of Guilherme Sampaio from Kegsa Bank. Please go ahead. Your line is open.

Hello. Thank you for taking my question. Just one, so two if I might. Is there any factor that we should consider when modeling every self? Rump up throughout the year or this run by this quarter on quarter run rate that you're having in the in the in the q1 and q2 is a good reference And the second one is a bit on the second half So you if I'm not mistaken you're you're assuming a bit more intense so fix in the second half versus your prior expectations. If you could provide some color on this, it would be great. And don't out-license your royalty income expectations. You mentioned a 10 million year-on-year higher impact versus 2024. If you could provide us some reach versus your prior expectations. Thank you.

Thank you for your questions. Mike, do you want to take a stab at the questions?

Yeah, so we're seeing good uptake of EBLIS. So I think, you know, the quarter-on-quarter growth you've seen in the last couple quarters is probably a fairly good proxy. You know, as we get bigger, that may slow down a little bit, but we're seeing good uptake across EBLIS and And we think we're definitely in line to meet or slightly beat the existing street expectations. So we see good uptake there. The second half, we expect, you know, if you look at our guidance range versus the first half, it'll be fairly consistent. We'll continue to have good sales growth. And if you look at the EBITDA range versus where we've landed in the first half, it shows that we'll continue to have good EBITDA growth there, too. In terms of what I talked about, total out-licensing and royalties, if you look across the entire business, including, you know, out-licensing we do of non-core products, things that we haven't launched ourselves that we're finding partners. Last year, that bucket was about $15 million in total. This year, with the first quarter transaction, we'll end up around $25 million in total. So that's the 10-year, the $10 million gap. That also includes some ongoing royalties from older businesses. transactions that we've done and minor out licensing in territories like Latin America and Asia of some assets. So nothing a huge increase. If you look back into 2023, that bucket was about 20 million. So it's fairly consistent.

Okay, thank you. Thank you. We will take our next question. Your next question comes from the line of Niall Alexander from Deutsche Bank. Please go ahead. Your line is open.

Hi, how's it going? It's Niall Alexander from Deutsche Bank. Just two questions, please. On your IL-1 monoclonal antibody in hydrogenitis subcutiva, would it be helpful just to get your takes on the commercial opportunity there? You have the likes of Benzlex doing well in that space. So just wondering how you could potentially differentiate there once you tick off the regulatory R&D studies. And then on EBLIS, just obviously focusing outside of Germany, which seems to be doing well, and looking into the regions where you have launched, it'd be helpful to get an understanding of how these are tracking, in particular the other EU5 regions. Thank you.

Thank you, Niall, for the question. I'll give you some flavor on the IL-1, and then I'll pass the word for Carl for further insight into the anti-IL-1. First, HS, again, is a big underserved market. The underneath remains, although there are some treatments approved in HS, the underneath remains tremendous as a result of suffering diabetes patients, so very excited to have Two programs that are targeting HS, both with a potential to be best in class. The other one is extremely exciting. We have already seen the results of phase one that confirms, you know, the profile of the product, and now we will soon enter the POC studies. EGLIS outside Germany. Early days, but we're seeing a strong uptake. Even in countries where we still don't have full access because it's a regional access landscapes such as Spain and Italy, we're seeing a very positive uptake of EBLIS in these countries, and already in some cases already being in the double-digit in terms of dynamic market share. So everything we're seeing, very positive and confirming the potential and the role of IL-13 in treating AD patients.

Maybe to add on the anti-IL-1 rep antibody, this antibody is a target, the core receptor of in total six cytokines of the IL-1 cytokine superfamily, IL-1 alpha, beta, IL-33, and IL-36 alpha, beta, and gamma. Antibody that targets individual cytokines like the IL-1 beta, for targeting the IL-36 have shown activity in . And we believe by having an antibody that can combine those activities, we'll have a chance to see a better efficacy in this very high medical need indication.

Thank you very much.

Thank you. We will take our next question. Your next question comes from the line of Jamie Escribano from Banco Santander. Please go ahead, your line is open.

Hi, good morning. So, my first question is regarding what you were commenting about some pharma and opportunity in psoriatic arthritis. Can you elaborate a little bit more on the size of this opportunity? How is this disease compared to the traditional psoriasis? Is there already off-label sense of in in this field um and when when could you have the the indication launched and um second second question is more of um you know reviewing like a smaller products that uh this quarter were performing well just just to better understand the dynamics like for example cyclopoly uh was doing fine uh skillarance um was growing for the first time in several quarters just to to to know if there is any specific dynamic there and also in soda which at least i personally thought it was more of a small product of 20 million maybe 30 million but it's already making a run rate of around 40 million so uh what's going on with this product and what could we expect thank you

Good morning, Jaime. Thanks for the question.

So, on PSA, happy to see the positive results achieved by our partner, Sun, in this development. And this, again, adds to the body of evidence of filometry being an effective treatment to a broader patient population. We are now analyzing the results. We will see what we do going forward, and we will update you as soon as we have a view. Regarding your second question, yes, we are also very happy with the performance of a majority of the remaining of our portfolio, very impressed by Windsor. And what I suggest maybe, Mike, you can comment on Cyclopolis. We have Paolo with us here as well, so maybe, Paolo, you can comment on Windsor.

Yeah, so Cyclopolis, we're seeing some small growth there. I think, you know, this is a, a product where we are market leader in many of the OTC markets across Europe, and it's been a good year so far this year. So, it is affected by seasonality of weather because, you know, it's basically a nail fungus remover, and when there's better weather, people tend to wear sandals, and they want to get rid of the nail fungus. So, this is a typical annual variant. In terms of sclerins, what we've actually seen is in the main market Germany, One of the competing products has withdrawn from the market, another one of the DMFs. So we will see a slight growth this year as we pick up some of that volume, but it's not going to significantly change the pattern. But it's nice for us to have a small growth in that. And maybe, Paolo, you want to address Manzora?

Hi, Jaime. This is Paolo Zanini, the commercial officer here in Admiralty. So, we are very pleased on the trend we are having with Binzora. Actually, as a company that wants to be a leader in dermatology, it's not only about biologics, but it's also offering to patients and dermatologists the full spectrum of treatment and insurances. I mean, we are basically among the The few companies, actually the only company offering everything basically from my disease to the very severe or a complete portfolio on treating psoriasis. So about Windsor, we are pleased because the sales are catching up in the countries, the most relevant countries where we are operating with such a product. And also about the penetration of the market, where we are already double digit, high double digit, I would say, in market penetrations, in market share, not only in dynamic, but overall. And with Zora is showing that through this PAD technology that give us the possibility really to give an option to the patient that is much better than the available products. I mean, we are really seeing an increasing penetration of the market and we will continue like that even in the future.

Thank you very much.

Thank you. We will take your next question. The next question comes from the line of Francisco Ruz from BMP Paribas. Please go ahead. Your line is open.

Hi. Good morning. First, I would like to thank Mike for the help during all this year and wish him the best luck in the next developments and also welcome John. I have two questions. One is a follow-up from Jaime, which is that the 30 million euros peak says that USPEP in Illumeti does not include this new psoriasis arthritis therapy. The second one, as always, I asked about the milestones in the coming quarter, so if you could give an update after the 50 million euros that we saw in this first half, what is remaining for the second half and what's already known for 2036. Thank you.

Yeah, sure. Hi, Francisco. Yes, the 300 million, over 300 million pixels estimate for Illumetri does not include additional indications such as PSA. It's only based on PSO. Mike, do you want to take the question?

Yeah. So, so far, you know, I think we're still on track to have total investments this year, you know, between 70 and 80 million. Absent any large, significant new transaction, and the difference between where we are at the half here and the second half means we'll have much less in the second half. It's really just going to be small things based on existing agreements. We may trigger, you know, larger milestones to be paid next year, but I would expect next year to be somewhere in that same ballpark, roughly $80 million. Of course, absent any new M&A or in licensing transactions.

Okay. Well, thank you.

Thank you. We will take our next question. Your next question comes from the line of Joaquin Garcia Quiroz Gonzalez-Pamino from JP Capital. Please go ahead. Your line is open.

Yes, hello. Thank you for taking my question. Just I want to be more So insight on Tliciri in the U.S. It's growing, but still very small. So I want to know if large flow is really having an effect there. And then despite that, U.S. operations continue to decline year and year. So what are you going to do in the future if this continues? Will you consider closing Tliciri? the U.S. operations, or that's not something you're currently considering? Thank you.

Hello, Joaquin. Thanks for the question. About the U.S., we remain on plan A that we shared with you a few times. One is to stabilize the company with the current portfolio and resume it to the growth trajectory. This year, we're still planning to finish EBITDA-neutral. Once, you know, we maximize the existing portfolio, then we are looking for bolt-on opportunities that cannot, you know, in the future, that cannot further grow. And then while we wait for our patent to deliver, as a reminder, we have the U.S. rights in all the assets that we have in our portfolio, including the exciting assets that we were talking about just a few minutes ago, such as the anti-IL-1. I'm sorry. Yes, I think we are happy with the launch of the large field. Now we see a majority of prescriptions going to the large field versus the small field, and we plan to see this trajectory continue. So not only the molecule is growing based on the large profile of the product, but also we're seeing the mix between the large and the small shifting favorably towards the large field. Thank you.

Thank you. We will take our next question. Your next question comes from the line of Alvaro Lenz from Altrana Equities. Please go ahead. Your line is open.

Hi. Thanks for taking my questions. The first one is on every market share you mentioned during the double digits in Germany. I don't know if you have a similar figure or available data for France in particular after you launched this quarter. My second question would be in terms of pricing, if you could provide whether pricing in the new launches missing any change and also if you could see potential for price upgrades in the future or if there are any discussions, even the most favored nation discussions in the United States. I don't know if you see any read across that that could push, you know, the drug prices in Europe up in order to compensate for a potential decline in U.S. prices by big pharma. Thank you.

So thank you, Alvaro, for the questions. Please, Franz, it's early days to start talking about percentages of upticks. What we see is very consistent with what we've seen in other markets where we have launched earlier. That means good feedback, anecdotal good feedback from physicians, willingness to try. Those that have already experience with the product signaling that they are willing to use it more. So quite consistent inputs coming from Franz compared to to previous countries where we have . Pricing. Pricing. Well, as we mentioned a few times, so we were very happy to see that the health systems in the different countries wanted new treatments for atopic dermatitis, and there's a testament of the severe need that remains in this indication. We've seen, you know, the pricing levels that we were expecting, in some cases maybe slightly better, but also, as we've mentioned a few times also in these calls, we've got reimbursement ahead of, in some cases, ahead of the standard times, right? So, overall, in the market access front, pricing and reimbursement positive from that side. The future about price upgrades, well, in Europe, you know, that's Have you seen Europe revising pricing upwards? Yes, now there's an opportunity for Europe, given the geopolitical events and the U.S. administration policies, for Europe to get their act together and start rewarding innovation in a different way. So let's see what the developments are in this front.

Thank you. Thank you. There are no further questions. I would like to hand back to Pablo Deveson for closing remarks.

Thank you very much, Heidi. As there are no further questions, ladies and gentlemen, this concludes our today's conference call. Thank you for your participation. You may now disconnect.

This concludes today's conference call. Thank you for participating. You may now disconnect.