Almirall, S.A.

Good day and thank you for standing by. Welcome to the 2026 first half earnings call of Almarol. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 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 de Vasson, Head of Investor Relations. Please go ahead.

Thank you very much, Sharon, and good morning, everyone. Thank you for joining us for today's quarterly earnings update and review of Almirall's first half-year financial results of 2026. As always, the slides we are using today are shared in the investor section of our website at almirall.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, German and Chief Executive Officer, John Garay, Chief Financial Officer, and Karl Ziegelbauer, Chief Scientific Officer. Karl will start with the business highlights of the first half of 2026, followed by an update on biologics and the key growth drivers of our medical dermatology portfolio. Karl will provide you with an update on the pipeline and R&D programs, and then John will Go through the financials before Carlos concludes the presentation and we open for questions. I will hand over to Carlos Gallardo, our chairman and CEO. Please move to slide number five.

Thank you, Pablo, and good morning to everyone in the world. Amirai delivered a steady first half of 2026, broadly in line with our expectations and the trajectory set out at the beginning of the year. with performance expected to build progressively through the remainder of the year. Net sales reached 603 million, with European dermatology once again acting as the primary growth engine. These results remain broadly consistent with recent trends and our full year guidance. This is why we are reiterating our full year 2026 guidance, with growth expected to pick up towards the second half of the year. Turning to products, Illumetri delivered steady double-digit growth around 125 million in the first half, and remains firmly on track towards peak sales of over 300 million. Eplis generated 84.5 million in the first half, close to doubling year-on-year. I will provide a bit more context on Eplis on the following slides. Among other products, Winthora continues to lead market share across key regions, while Klyceri delivered stable growth overall. We remain closely connected to the dermatology community, strengthening our partnerships with physicians through ongoing engagement at key platforms such as the 2026 American Academy, Skin Academy and European Academy of Dermatology and Venereology Symposium. On the innovation side, we continue to make progress. We have several proof of concept and phase two programs advancing, most of which are first or potentially best in class. The initiation of phase two of our anti-21 monoclonal, IL-21, sorry, monoclonal antibody marks, a key step in our hydranitis superlative strategy. Combined with the IL-1 RAP, now we have two differentiated assets targeting a disease with significant and med need. We also signed a strategic research collaboration and licensing agreement with Certest Biotech, adding further depth to our innovation efforts. Karl will revisit our pilot updates in greater detail. Please move on to the next slide for an update on our biologics portfolio. Illumetri net sales reached 125 million in the first half of the year, marking a steady 10.5 year-on-year increase. Illumetri continues to demonstrate a solid position in the crisis market, maintaining its share within the leading anti-IL-23 class, supported by real-world evidence such as the positive study data presented at the latest AAD and EADP congresses. which continue to highlight meaningful long-term benefits in patients' well-being and disease control. Moreover, we see additional opportunity to further strengthen the profile of Illumetri. For that reason, we plan to initiate the evolved study in psoriasis to study the effect of the 200 mg dose in biologic naive patients diagnosed for less than two years, further reinforcing Illumetri's strong and growing long-term clinical evidence base. Karl will provide additional details on the OCOF study. Performance remains consistent and we therefore continue to be firmly on track to deliver over 300 million in peak net sales, even as both the product and the class enter a more mature phase of the growth cycle. Please move to the next slide for Eblis highlights. Since its approval in Germany in December 2023, Eblis has rapidly displayed to become our second largest product. underscoring one of the most successful atopic dermatitis launches in recent years. Second quarter sales reached 43 million, up from around 26 million a year earlier, bringing first half sales to approximately 85 million, close to double the level in the first half of 2025. Despite the positive trajectory of the launch, the performance in the second quarter reflects two factors. First, we must recall that we had a strong performance in the first quarter, which sets a higher base for comparison. Secondly, we experienced some softness in the countries like Germany, where a relatively modest pricing adjustment created a short-term uncertainty, and we may have resulted in some sales shifting from June to July. In addition, we also experienced temporary minor volatility in certain other countries. Overall, we have not changed our mid- and long-term view on Eblis, and we expect a strong clinical profile and continued healthy growth in the AD market to support Eblis sales. While we do not typically like to comment on individual product sales for the year, we are aware that we are the consensus seed for Eblis, and we remain comfortable around that figure. On the clinical side, our collaboration with Lilly continues to support Eblis positioning. with extensive Leiblich-Izumab data, including the long four-year results and the Adorable One pediatric data presented at recent scientific meetings. This week, the EMA admitted the submission of the pediatric indication of EPLIS. In June, the FDA approved the every eight-week maintenance dosing regimen for EPLIS in the U.S. This approval further strengthens EPLIS' profile in atopic dermatitis and supports its long-term competitiveness in the market. We are also conducting the ADHOPE2 trial in Europe, which has the potential to support an extension of the dosing interval to every 12 weeks. I will now hand over to Karl to walk you through our pilot developments in more detail.

Thank you, Carlos, and good morning to everyone on the call. On this slide, I would like to focus on the early and mid-stage pipeline as a source of future value iteration and upcoming clinical inflection points. Today, we have four proof-of-concept or Phase II studies ongoing, with two additional studies planned to start towards the end of this year. During 2025, we advance two important programs into Phase II. Our anti-IL-1 rep antibody in Hidradenitis superativa and the IL-2 mutant FC in Alopecia areata. In addition, our partners in SEER initiated a phase two study of IL-2 mutine FC in atopic dermatitis. We also recently started a proof of concept study for our anti-IL-21 antibody in H. superativa. Looking ahead, we plan to initiate two further proof of concept studies. Al2, Mutin S.C. in SLE with cutaneous manifestation, anti-anti-AL1 rep antibody in inflammatory skin disease. Taken together, this gives us six proof of concept or phase two studies with data readouts expected over the next couple of years, beginning at the end of 2026. These programs remain early, but they are anchored in well-defined biology and give us a diversified set of potential first or best in class opportunities in area of high unmet need. Next slide. While we advance the clinical pipeline, we're also building the next wave of innovation in dermatology. Our approach is to focus Almirall's internal capabilities on deep disease understanding and to partner selectively where external technology can provide the most appropriate modality for a novel therapeutic hypothesis. A recent example is our strategic research collaboration with Sirtis Biotech. a Spanish biotechnology company with mRNA and lipid nanoparticle discovery and development expertise. Together, we aim to discover novel treatments for rare dermatological diseases and recurrent cutaneous conditions. The important point is that this is a partner-enabled model. We access differentiated technology while Almeral retains global rights and leads future development and commercialization. This allows us to broaden our innovation reach while maintaining strategic control over assets that fit our dermatology focus. Next slide. This slide summarizes our lifecycle management activity for products already on the market. The objective is to support the long-term relevance of our key brands through label expansion, additional clinical evidence, and discipline prioritization of investment. For turbanibulin, the regulatory process for the larger 100 square centimeter treatment area is ongoing, and we now expect a European approval towards the end of this year. Together with our partners, Sun Pharma and Eli Lilly, we continue to advance label expansion opportunities and generate additional clinical data for Illumetri and Epclis, respectively. For lepricizumab, we have filed with the EMA for patriotic label extension to include children from six months to 70 years of age and are weighting below 40 kilo with moderate to severe atopic dermatitis, with approval expected around mid-2027. We are also running a phase three of lepricizumab enumera eczema with readout expected in 2029. Additional ongoing clinical studies are summarized in the appendix. Turning to Tiltrakizumab, the INSPIRE 1 and 2 studies showed benefit in psoriatic arthritis. Both trials met the primary endpoint at week 24 and continued to show benefit through week 52. After evaluating the access dynamics and investment required, we have decided not to pursue commercialization of Tildrakizumab in psoriatic arthritis in Europe. We believe that further investment in generating additional data in psoriasis can generate more value for Tildrakizumab, and we therefore plan to study Tildrakizumab in psoriasis patients with short disease duration and high disease burden. Details are shown on the next slide. Evolve PSO is designed to explore the potential benefit of Tildragizumab 200 milligram in biologic naive adults with moderate to severe blood psoriasis and short disease duration defined as less than two years. In addition, the study will evaluate the potential to maintain high levels of disease control using the dose spacing approach. We plan to initiate the study around year-end with first readouts are expected in 2029. Strategically, Evolve PSO is intended to support a more flexible and patient-centric treatment paradigm. If successful, it could help reinforce the value proposition of Tiltrakizumab in psoriasis by maintaining outcomes while potentially reducing treatment burdens. With that, I will hand over to John for the financial review.

Thank you, Karl, for the pipeline updates and good morning, everyone. Net sales for the first half reached €603 million, a 7.5% growth year-on-year and a 10% growth in the last 12 months, which is in line with providing net sales guidance rates. Please note that the second quarter of 2026 included the recently announced divestment of Actitool, comprising of €13 million upfront and an additional €1 million revenue recognition out of the remaining payments. As noted, the year is progressing positively, with increasing performance expected during the remaining part of the year, as indicated in February earnings call. European dermatology keeps delivering solid double-digit growth, reinforcing Armiral's path towards leadership in medical dermatology. We will review the details in the coming slides. EBITDA for the first half came in at €151 million, resulting in a ratio of 25% over net sales versus 21.7% prior year, representing an improvement by 330 basic points. Gross margin benefited from active yield divestment and is expected to normalize in upcoming quarters amid ongoing pressure from higher royalty tiers associated with Illumetri's net sales growth. Regarding SG&A, investment reflects the timing of our promotional activities during the year and there will be some pick-up in the coming quarters. On R&D expenses, our half-year phasing reflects the progress of our trials into Phase II with four already ongoing and another two set to start shortly. We closed the first half with a net cash to EBITDA ratio of around 0.1, with a strong cash generation in the first half of the year, leaving us with significant financial flexibility. Overall, these results lead us to reiterate our 2026 guidance. Let's move to the details of our sales breakdown on the next slide. European dermatology continued to perform positively in the first six months with double-digit year-on-year net sales growth. We will go into more details on the next slide. In general medicine and OTC, European sales reflected the investment of Acticure completed in the second quarter. Excluding these portfolio moves, the segment remained broadly stable with lower sales in some legacy products, largely offset by contributions from products such as Sebastel and Airtel. In the United States, performance declined year on year, reflecting continued pressure on the legacy portfolio, which we will discuss on the next slide. In the rest of the world, overall sales grew strongly, driven by solid dermatology demand. Let me tell you through the dermatology performance in more detail on the next slide. Our European dermatology business continued to perform well in the first half. Illumetri delivered robust double-digit growth versus prior year, reaching 125 million euros. Egblis further increased its contribution to approximately 85 million euros in the first six months of the year. We remain focused on unlocking the full value of the franchise from both the commercial and the R&D side. Winsora continued to build market share across core European countries, and Clay City demonstrated stable growth in Europe year on year. In the United States, overall performance declined, reflecting continued pressure on the legacy portfolio. Dollar-euro FX evolution represented a negative impact of minus 6% in our performance year-to-date. Cesara and Cleceri improved their price-volume dynamics in their second quarter while still declining, and Axon remained impacted by generic competition. In the rest of the world, dermatology sales were driven primarily by fin-juve demand in China. Overall, our dermatology franchise continues to show solid underlying performance. Let's briefly review the remaining elements of the P&L in the next slide. Gross margin reached 64.6% in the first half, with the second quarter divestment offsetting royalty impact associated with eulometrics growth. LG&A in the second quarter following an incremental quarter-on-quarter trend as previously announced. We expect that trend to continue in the remaining quarters of 2026 while supporting margin expansion on an annual basis. Around the percentage of net sales was somewhat lower than our target of 12.5%. Our half-year phasing reflects the progress of our trials into phase two with four already ongoing and another two set to start shortly. A full year ratio of approximately 12.5% remains a good proxy subject to the normal quarterly variability. A beta margin reached 25% of net sales, a level aligned with our 2028 ambition, but approximately two and a half years ahead of schedule. While this performance benefited from the divestment of a minor non-derma product, portfolio optimization is an integral part of our ongoing business strategy and value creation. This milestone demonstrates the strong position we are building. Financial expenses continue to reflect the valuation impact of the equity swap in line with the share price evolution during the period. Our effective tax rate continues to normalize and we continue delivering on this positive trend driven by the strong increase in the group's overall profitability, which materially reduces the related impact of our U.S. business at a consolidated level. Please move to the next slide to take a look at the balance sheet. Our balance sheet remained stable throughout the first half of the year. Intangible assets reflect every related R&D capitalization, the development must come to sincere for advancing IL-2 multi-infusion protein into phase 2, and the access field linked to the WHO-ALTA collaboration broadly offset by higher amortization. Our net cash to EBITDA ratio stood at around 0.1, providing us with a strong financial flexibility for licensing opportunities and selective bolt-on acquisitions. During the quarter, Moody's upgraded our credit rating to BAE1, validating the strength of our balance sheet and financial performance. Let's now turn to the cash flow statement. Company generated 17 million euro cash in the first six months of the year, compared to a dilution of minus 54 million euros in the same period last year, representing an improvement by 71 million euros. Free cash flow raised to 33 million euros compared to minus 20 million euros in the first half of 2025. Let's now go through the different components of our cash flow. Cash flow from operating activities raised to 132 million euros, representing more than two times improvement versus prior year, driven by working capital management alongside higher profitability levels. Cash flow from investing activities reflects the 2025 Illumetri sales milestone paid in the first quarter, the highest milestone expected this year, with the remaining investment-related payments for the year being marginal and the total outflow within the usual limits in absence of new acquisitions. Cash flow from financing activities reflects the change in the bond interest payment schedule following the recent bond issuance and cancellation of the previous one, as well as the dividend paid in the period. With that, thank you very much for your attention, and I hand it over to Carlos for his closing remarks. Thank you, John.

To summarize, the first half of 2026 confirms that the business remains solid and on track. We know where the consensus sits today, and we are comfortable with these figures. Turning to the key drivers. First, our biologics portfolio continues to give us real momentum in a dermatology market that keeps expanding. with EPLIS scaling across Europe and Illumetri still growing steadily as it moves through a more mature phase of growth. In parallel, we continue to generate robust lifecycle management data that further supports the strong profile of our biologics. Second, our growing and exciting pipeline now expands immune-mediated skin diseases, rare dermatology, and non-melanoma skin cancer with six proof-of-concept Phase II programs moving forward and most assets being with potential for best or first in class, providing a solid base for sustainable growth without concentration on any single asset. Third, we remain disciplined but active on capital deployment, with a strong balance sheet supporting both on M&A and early stage licensing. We continue to work toward delivering on our mid- and long-term ambitions, supported by a well-positioned portfolio, a strong and targeted pipeline, and strategic positioning in the right dermatology indications. This combination of pipeline depth, financial discipline, and execution gives us confidence as we continue to advance our mirage towards leadership in medical dermatology. With that, we can conclude the presentation, and turn to Pablo for the Q&A.

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

Thank you. As a reminder, to ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A roster. Thank you. We will now go to our first question. One moment, please. And your first question comes from the line of Henberg from DB. Please go ahead.

Morning, team. Yes, thank you for taking my questions. I've just got a couple. The first one you mentioned, there's a Germany pricing adjustment from July. It'd be good to know a bit of clarity about what effect that's having into H2 and also how this fits into maybe the German drug pricing reform that's taking effect in 27 and how you think that will impact and maybe whether that's included in your 28 EBITDA margin target of 25%. And then my second question, please, is you didn't reiterate your peak guidance for EBLIS. Is there a reason for this? Yeah, just a bit more clarity. Thank you.

Thank you, Helen. Not sure about the second question. You're asking us to confirm the PIXELS estimate for EBLIS? Yes, yeah. Okay, sure. Thanks for the question, Hen. So the German pricing reform is certainly not good news for the industry in Europe. However, there's still a number of clarifications as there are deductions and bonifications that now need to be clarified by the German government between now and the end of the year. Once we have clarity on this reform, we will be able to provide further clarity on how we see this impacting the business. In terms of the peak sales guidance for Eblis, yes, we remain very confident on the outlook that we have provided, and so we are very happy to reiterate peak sales above 450 million.

Great, thank you.

Thank you. Your next question today comes from the line of Shan Hammer from Jefferies. Please go ahead.

Hi there, thank you for taking my questions. Just two from me, please. Are you able to quantify the extent of the planned price decrease for EBLIS in Germany in July or from July? And then secondly, can you tell us about some early ordering patterns you're seeing in 3Q for EBLIS and whether you're expecting a return to acceleration from 3Q despite the typical slowdown during the summer season? Thank you.

Thank you, Sean, for the questions. If I understood well, you're asking about the price decrease in Germany and Eblis this year. It will be from January 1st, 2027.

Is that the question or not? No, your question, Sean, if I understood well, you are asking the price reduction for Eblis in July, right?

Yes, exactly.

Yes, so it has been a low single-digit one that was agreed with the German government at the point of launch of the product. It is minor, but it has had an impact on the facing of orders between quarters. So we expect an acceleration in the Q3. So this is the answer of your first question.

You want to take... Thank you for... Sorry, I misunderstood the question. Thanks, John, for your help. No worries.

You want to take the number two as well? Yes. Your second question, Sean, was about order pattern in the second half of the year and return to accelerate. Yes. I mean, we remain confident in the long-term profile of the product. We continue receiving very positive feedback from our key opinion leaders in the market, and we continue having long-term lifecycle management. The market consensus for the product shown at this point in time is in the range of 190 to 193 million euros, and we remain comfortable in this ballpark for this year. Just to reiterate that our focus remains firmly on the long-term opportunity, and as usual, we would encourage all the analysts to have a view on short months more than on quarter-on-quarter facing. Hope this addresses the answer to your question, Sean.

Thank you. Thank you. Your next question today comes from the line of Juan Vas Padilla from OdoBHF. Please go ahead.

Good morning. Thank you for taking my questions, too, if I may. First one regarding the PCS guidance. So after the H1 EBITDA, how should we interpret the guidance of 270 to 290 million for the year? Are you now maybe more comfortable with the upper half of the range? And secondly, regarding Illumetri, we've seen some moderation of the growth in Illumetri in Q2. Are you still expecting double digit growth for this year? What contribution are you seeing from the 200 milligram presentation? Thank you.

Juan, thank you very much for your questions. So at this stage, we are confirming our full year guidance. Yes, we had a very nice EBITDA in the first half. Not only that, we have already reached the 25% EBITDA ambition that we had set for ourselves in the long-term guidance that we set up, and we had set this target for 2028. We are very happy to see that we have been able to accelerate our operational leverage agenda, so that's great news. But at this time, we are happy to confirm the full year-to-year guidance that we have provided. Illumetri, perhaps for the detail, I'll pass it to John, but let me reiterate that we remain very, very confident with the performance of Illumetri, both in terms of how the market is growing, IL23 is firmly established as the winning class and within this class we are able to either to keep or to grow market share. So the underlying dynamics remain extremely positive for Illumetri. John, do you want to add some more color Illumetri?

Just to complement Juan that if I remember well the market consensus is in the world park of 260-262 million euros. similar level as of February end is called and the company feels comfortable with that ballpark although we do not provide guidance per product. On long term, the guidance for the product is to reach big sales beyond 300 million euros and we also reiterate we are comfortable with that big sales. But more importantly, Karl has been sharing with us exciting aspects of philometry, lifecycle management and products. So if it is okay, Juan, I would like to pass the word to Karl to complement our answer.

Thank you. I mean, just to remind everyone, Illumetri is the only anti-R23 with dose flexibility. And we're seeing, especially on the 200 milligram, that we receive very positive feedback, especially in patients that are overweight or with a high disease burden. And that's why We now start the Evolve PSO study to further explore this 200 milligram option in patients with a short disease duration and a high disease burden. And we are confident that this adds to the already very solid clinical evidence on Illumetri and will further drive the product.

Thank you.

We will now go to the next question. And your next question comes from the line of Guilherme Sampio from CaixaBank. Please go ahead.

Hello. Good morning. Thank you for taking my question. So, to Ifame, I'm sorry to insist on the Germany reform, but taking into consideration the accelerated operating leverage that you have been achieving Is there a scenario in your preliminary analysis in which you would not reiterate the 25% margin in 2028 that you've been targeting? And the second question, you've been guiding for an underlying EBITDA growth acceleration across 2026, and you've been delivering upon it. But you mentioned that you're comfortable with current consensus, which implies Thank you for your question, Guilherme.

Yes, as I mentioned, we're very happy to see our acceleration on the operational leverage agenda that we had established for ourselves. In addition, we've seen very good progress, and I would say already that's excellent progress in our pipeline. We did the six POCs by end of 26, and that means that we'll have all the data, all the data readouts in the next 18 months. And you were talking about, asking about the scenarios, right? So this opens many scenarios depending on the data, depending on the readouts. And we will be, of course, first solving with value maximization for shareholders in mind. And secondly, monitoring very closely what this means. And your question on EBITDA for the second half of this year, maybe, John, you want to take it?

Yes. Thank you very much, Carlos. Thanks a lot, Guillermo, for your question. When you are doing the comparison, first of all, any potential scenario we have had in the first half of the year, including the divestment of a minor thermal product, was already included in the scenarios we provided for our full-year guidance in both net sales and EBITDA, 9% to 12%, and EBITDA amount 270% to 290%. Having said that, in the second half of the year, we expect certain acceleration in our R&D investment as our trials progresses, and we expect certain pickup in our SG&A investment following the facing of our promotional activities. If you remember, what we have always said is that SG&A will be a key component to the operational leverage that you already see in the P&L as of today, but the growth will be materially lower than the growth we are showing in headsets. In this scenario, in the second half of the year, of course, in order to continue accelerating in the same ratio, we should have a similar divestment to the one we have executed for Actidio. But from an operational point of view, excluding the divestiture, we continue expecting a bit of acceleration. This would be our ambition, and still we think we are in the ranges we have provided for the full GR guidance range for 2026.

Okay, thank you.

Thank you. Your next question today comes from the line of Jamie Escribano from Banco Santander. Please go ahead.

Thank you. Good morning. So a couple of questions from my side. The first one more on the competitive landscape in Haiti. So today we heard Sanofi is discontinuing Amli Telimab. I would like to know your opinion and maybe to summarize which ones do you think are going to be the main competitors going forward. And the second one for Karl would be how excited you are with the new anti-IL-21 candidate that is passing to phase two for Hidradenitis Superativa. Maybe you can... Elaborate on this candidate versus, for example, the anti-1IL RAP. Thank you.

Thank you, Jaime, for the questions. So there's competitive landscape in AD. We've always said that the AD market is largely underpenetrated. So only around probably less than 20% of patients that are eligible for this type of advanced treatments are treated with modern medicines. So for us, the... New entrants, new mechanisms of action coming into this market continue to expand the market. Having said so, the community remains firmly convinced that the anti-IL-13 remains the mainstay treatment for first-line patients. So overall, we believe that that you know IL-13 will continue for the future to become the mainstay and market progression and feedback of physicians these patients you know make us very very continue to deliver very positive signals for us on this market because you want to comment maybe on Manly and the IL-21

Yes, I think, yes, we saw the news on Amletilimab this morning, you know, when these decisions are always based on benefit-risk, yeah, and we need now to analyze what this could mean on our bispecific antibody where we're This is only one component. The other component is an anti-IL-13 mechanism that, as Carlos said, is the key pathogenic driver in AD. Now, coming to your second question, we are very excited about the anti-IL-21 antibody. You know, HS is an indication with a very high unmet medical need, but it's also a very complex disease. And that's why we have been searching for mechanisms that can address multiple pathways. The anti-IL-1 rep addresses multiple pathway modes towards to the innate immune system, so the IL-1 alpha, beta, the IL-33, and the IL-36 alpha, beta, and gamma. And both the anti-IL-1 beta independently as well as an antibody against the IL-36 receptor have shown benefits. addressing different aspects of the pathophysiology. So we believe this combination of those activities when inhibiting the anti-AL1 rep has a chance for an increased efficacy. R21 is a cytokine that is involved both in B and T cell biology, so addressing more the adaptive immune system. And again, there is evidence that addressing T cells and addressing B cells has impact on the pathology Part of physiology of HS and our hypothesis is again that by combining those activity, this may lead to an increased efficacy. We have just started a phase two kind of proof of concept study and expect first results during next year.

Thank you very much.

Thank you. We have one further question in the queue. One moment, please. And the question comes from the line of Hakim Garcia Quiroz from JB Capital.

Please go ahead. Thank you for taking my questions. Just regarding the investments, if I remember correctly, you said that you could expect around 70 million for the year. Is that still a good target? And then what can we expect for next year? and then if you could remind us what could be the potential target market for Hidradenitis Supurativa and Alopecia areata and talk a bit on the competition right now that you could have on those fields.

Thank you.

Joaquín, thank you very much for the questions. John, do you want to take the first one on investments and then Carl? the ones on HS and EA.

Thanks a lot, Carlos, and thanks for your question. Joaquín, I understand you refer to investment capex. Should this not be the case, please feel free to speak up, and we also cover ordinary capex. In terms of investment capex, yes, our guidance for the full year was 70 to 80 million euros. of new acquisitions. Our gear today basically reflects the payment of our 2025 rudimentary sales milestone that is the highest we are going to experience this year. And right now, Joaquín, we confirm that range probably ending to the high, to 75 to 80 million euros. It is what we will be finalizing in our investment CAPEX. I've been happy to say that the results we are presenting today, where we are discussing CAPEX, they also show the strong cash generation the company has achieved in the first six months of the year. So I am confident we have enough muscle and power to fund those CAPEX and potential new licensing opportunities that may come up in the near future. Hopefully I have addressed your question. Otherwise, let me know. Back to Carlos. And then to Karl.

Yes. Thanks for the question. As I mentioned, HS is an indication with a still very high unmet need, and experts we have talked to mentioned that the currently available treatments are still suboptimal in addressing all the different aspects, specifically the efficacy. The high admit need is also reflected in the interest and in the pipeline. We believe we have two very differentiated assets that have, as I just mentioned, a chance for an increased efficacy by addressing not a single but multiple PABO mechanisms. When it comes to the potential commercial opportunities, EVALUITE estimates the HS market to be in the range of 5.3 billion in 2030. and the second, the A.A. market, Alopecia Rata, is estimated to be in the range of about 1.4 billion U.S. dollars. Again, from Evaluate Pharma 2030 estimates, it shows that both are significant commercial opportunities.

Thank you.

I will now hand the call back to Pablo as there are no further questions.

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