Camurus Ab

Welcome to Camuro's Q3 report 2024. During the questions and answer session participants are able to ask questions by dialing pound key 5 on the telephone keypad. Now I will hand the conference over to CEO Fredrik Thibar. Please go ahead.

Thank you so much and hello everyone. Welcome to our Q3 2024 earnings call today. Before starting please note our forward-looking statements. The agenda for today is like previous quarters, a short summary of third quarterly business highlights, followed by a review of our financial performance. And then we will go into commercial and R&D updates and finish off with the Q&A. I'm joined in today's call by our CFO, John Garay, and Chief Commercial Officer, Richard Jameson. So for those of you who have seen our report today, we had a solid third quarter with strong profitability and operating performance. Our revenues grew by 38%, 41% at constant exchange rate year on year, excluding a one-time revenue in 2023, to a total of 480 million SEK. Profit before tax increased by 125%, to 165 million SEK in Q3. Our best results so far, again excluding the one-time milestone. Based on the performance and results here to date, we have raised our outlook for the full year 2024, particularly as regards to profit performance. And our cash position at the end of the quarter increased to 2.75 billion SEK, again with no debt in the company. We continued focusing on commercial execution, with Bovedal sales growing nicely by 22% year-on-year to 421 million SEK in the quarter. In the US, BrickSiding net sales increased by 39% year-on-year, or quarter-on-quarter, I should say. Sorry about that. Resulting in a royalty contribution of 58 million SEK to cameras. Our R&D pipeline advanced with positive phase 3 results from our Acrinova 2 study. Our USMDA progressed to labeling. However, after the quarter, we received a CRL from the FDA regarding a CGMP inspection at the third-party manufacturer, which is currently pending classification, and we expect to get clarity about this early December. In parallel with the USMDA process, the regulatory MAA review moved forward in the EU. Additionally, preparations for the first clinical study of monthly semaglutide depot CAM 2056 was completed. Based on the strong performance here today, Camrys remains on track to deliver its 2027 vision. And with this, I'll leave the word over to John for a financial review.

Thanks a lot, Frederick, and good afternoon, everyone. During the quarter, Camus continued his development, delivering a strong financial performance, and I would like to share now the key highlights of this quarter. At the end of the quarter, Camus achieved 480 million SEG total revenue, compared to 384 million SEG in the same period prior year. Excluding 36 million SEK one-time milestone revenues related to Bristol the approval by BFDA in the US in 2023, company revenues grew by 132 million SEK, delivering a growth of 38% versus same period last year, which is in the high range of provided guidance for this year. Buvidal sales reached 421 million SEK, growing 22% versus prior year and 5% versus prior quarter. Swedish Kruner appreciation has impacted negatively reported figures by two points year-on-year basis and four points versus prior quarter. Pre-study sales in the U.S. represented a 58 million SEK royalty income in the quarter, representing a 45 million SEK improvement versus prior quarter. Company profit before taxes was 165 million SEK, achieving a lending per share after dilution of 2.16 Kruner equivalent to a profit after tax of 129 million SEC in the quarter. Finally, our cash position progressed positively during the quarter and remains strong, ending at 2.75 billion SEC. Moving to next slide, we can see the main components of our profit before taxes. Company gross margin reached 93% in the quarter. Excluding one time milestone revenue impact, it represents an improvement of 222 basic points versus same period prior year, driven by three major factors. Firstly, supply chain efficiencies driven by VUIDAL volumes scale-up represented 163 basic points. Secondly, 100 basic points are driven by BRICS-AD royalty. And thirdly, FX represented a negative impact of 41 basic points. Total OPEX reached 304 million SEC, representing a 21% increase versus same period prior year, driven by following factors. Marketing and distribution investment to support market penetration in own territories, expansion of Boobidal into new markets and US operations grew 19% to 112 million SEC. Administrative expenses aligned with corporate evolution to substantiate company development grew 155% versus same period last year to 27 million SEG. Another of the investments reached 163 million SEG, growing 10% versus same period prior year, driven by progress in our preclinical and clinical pipeline. Company profit before taxes reached 165 million SEG. Excluding one-time milestone revenue impact, it represents an improvement by 92 million SEC, increasing 125% versus same period prior year. Company cash position at quarter end was 2.75 billion SEC. Camur has improved its cash position by 184 million SEC in the quarter, driven by following four factors. Firstly, company operations generated 134 million SEC, Secondly, working capital generated 16 million SEK, driven by account receivables reduction mainly. Thirdly, financing activities driven by the exercise of stock option program delivered 45 million SEK cash. And finally, company invested 6 million SEK in technological activities. At the end of quarter, Camurus has no debt. All in all, Camurus closes third quarter with a strong operational performance and solid financial position. As a consequence of such a strong performance year up to date, thank you for expectations, Camur's outlook for total revenue was increased to the range of 1,810 to 1,880 million SEK from prior range of 1,730 to 1,840 million SEK, with profit before taxes estimated in the updated range of 450 to 510 million SEK from prior range of 330 to 450 million SEK. and is on track to deliver the long-range plan vision shared at Capital Market Days, celebrated in September 2022. Having said that, I would like to pass the word to Richard. Thank you everyone for your attention.