Idorsia Pharmaceuticals Ltd

Good day and thank you for standing by. Welcome to the IdleCyfl Year 2024 Financial Results webcast. 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 1-1 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 has been recorded. I would now like to hand the conference over to your first speaker today. Andrew Jones, Head of Corporate Communications. Please go ahead.

Thank you, Sonia. Good afternoon, good morning, everyone, and welcome to our webcast to discuss the 2024 Financial Results. On the call today, we have our CEO, Andre Muller, our President of the UCAN region, Benjamin Limahl, our President of US, Michael Moy, joining us in this capacity for the first time since the departure of Tosh, our Chief Scientific Officer, Martin Closell, and our Chief Financial Officer, Arno Grunewald. Then joining us for the Q&A session, we have our Group General Counsel, Julian Gander, in case of questions related to the recently announced agreement. So a lot to get through today. Next slide. Before handing over, I need to remind everyone that we will be making forward-looking statements. You have therefore been appropriately warned about the risks and opportunities of investing in Eidosia shares. With that, I hand over to Andre for his introductory remarks. Next slide.

Yeah, thank you, Andrew. Good afternoon, or good morning, everyone, and thank you for joining the call today. Before going into the 2024 highlights, let's deal with the elephant in the room, the envisaged out-licensing agreement for our ProCETentan that we eventually could not close, for reasons unrelated to the drug. As you can imagine, the undisclosed party did not agree to pay an exclusivity fee of US$35 million without a thorough assessment of the quality of the data and the potential of our ProCETentan. Very frustrating. But we need to move on. And now pivot to potential alternative partners. As a result of this unexpected setback, we need to look for alternative ways to keep the company operational. Due to tight timelines, we had to discuss with partners that had a vested interest in Eidosia. One partner is Vitris. The original deal was in March 2024 and secured the future of Celatorel and Cenarimod two phase three programs, allowing Eidosia to retain long-term upside through potential milestone and royalties. Last week, we announced an update to the agreement that reduced Eidosia commitment to R&D costs by US$100 million, which was due in 2025, therefore relieving significant pressure on our cash. At the same time, we have worked with bondholders for holistic restructuring of the convertible bond debt, to remove the debt and cash overhang and to fancy a company's operation with a new money facility of 150 million Swiss francs. This is obviously a huge relief, but with so much attention going to see a financial situation of the company during the past months, it's easy to lose sight of how well the company was performing in other areas. Let's start with QVIC. QVIC is doing well around the world, and particularly in the European and Canadian region, we call it UTAN. Benjamin will give you an update today. We could also slightly grow CSL since US, despite some significant lower marketing and selling investments. And Michael will also give you an update. Approxitentan, we have secured the approval of Trivio in the US, Jerrego in the EU, and we strongly believe that Approxitentan has the potential to revolutionize a serious and growing public cash cash problem. Michael will give you an update on launch preparation in the US, and Martin will also give you more background on what was called and considered up to recently as resistant hypertension, where the risk of cardiovascular complications such as strokes, heart failure, renal failure, is considered almost twice higher than in the usual forms of hypertension. Martin will also give you some color on our R&D portfolio. And finally, Arnaud will provide the usual financial update for 2024 and the guidance for 2025. As Andrew said, a lot to get through, so I hand over to Benjamin for the UKAN commercial update. Benjamin, the floor is yours.

Next slide. Thank you, André.

Good morning, good afternoon. QVVIC is now available in nine countries across Europe and Canada, or UKAN region. We launched QVVIC in Germany and Italy in 2022, and the most recent launches were France and Sweden, respectively in March and September 24. QVVIC is the first and only dual-orexin receptor antagonist in the European market, and has been described as the most significant recent development in the pharmacological treatment of insomnia by European Sleep Research Society in its recent guidelines. This innovative class has also been recognized by local authorities, resulting in full reimbursement in three countries already, Germany, France, the UK, with a rapid and considerable impact on our sales trajectory, allowing the UKAN region to achieve 32 Swiss francs million of net sales in 2024. Sales have shown a steady increase in the first three quarters of 2024, as you can see, but then you see also the recent acceleration in Q4, particularly driven by a great performance in Germany and an outstanding launch in France. Overall, France and Germany have been the two drivers of our 24 performance, with respectively 12 and 11 million Swiss francs, and I will share more details on these two countries today. Next slide, please. This slide represents the actual QVVIC demand across the UKAN region. These are the sales from wholesalers to pharmacies, and overall, in 2024, we distributed more than 15 million QVVIC tablets across the region. That's 15 million restorative night sleep and 15 million revitalized days. There are two main takeaways from this chart. First, as I mentioned, the Q4 acceleration in the QVVIC demand mainly driven by France and Germany. And second, the importance of reimbursement in the UKAN region, where 90% of QVVIC demand is coming from markets where we have been able to secure reimbursement. And here, I include the private reimbursement in Canada. So, since public reimbursement is so critical in the UKAN region, let's take a look at the current status country by country. Next slide, please. Starting from the top, in Germany, as already reported, QVVIC is the only insomnia treatment that does not have the four-week prescription limitation. I'm very glad to share that we've been able to finalize the pricing negotiations with GKV-AZ. The positive final outcomes of these two steps, two-year process with AMNOG will be made public in early March. In the UK, QVVIC is recommended as a first-line pharmacological treatment for patients with chronic insomnia as an alternative to CBTI. Priority in the UK in 2024 was to secure regional access and the team has achieved reimbursement throughout 85% of the UK population already. In France, ASMR4 and rapid negotiation pricing negotiation allowed us to have QVVIC launched at the end of March 24 and I'll share more details on the French performance. In Canada, QVVIC is available to private market patients since November 23. Private market represents almost 55% of the Canadian insomnia market and so far, 85% of the private Canadian lives are covered. In parallel, we now have submitted QVVIC to both INNES and CDA and we expect final public reimbursement decisions by the end of 2025. Now moving to the countries where we have launched out of pocket or self-pay. Let's start with Italy. QVVIC was launched in Italy in the self-pay market in November 2022 with prescribers restricted to only psychiatrists and neurologists who account for approximately 20% of the insomnia market. IFAR recently agreed to expand the prescription rights to all specialties, including GPs, allowing us to now cover 80% of the market potential we've been excluded from in the last two years. In Spain, QVVIC was launched in the self-pay market in September 23. Public reimbursement was submitted last year. We expect final decision around mid-25. Spain is the biggest insomnia market in UCAM and Spanish health authorities are very well aware of the problem of addictive treatment use they are facing since years. We are also in discussion with Swiss and Austrian authorities to make QVVIC publicly reimbursed. Next slide, please. As agreed, I now would like to focus on the two countries which generated 70% of our 24 sales, starting with France, where we launched in March two specialists only first and where we expanded promotion to GPs in October of last year. Just two numbers I'd like you to recall. 450,000 tablets were sold in September 24. Three months later, in December 24, we sold 1.4 million tablets in France. We've tripled the QVVIC demand in three months thanks to our co-promotion partnership to GPs with Menarini who deployed 135 reds to promote QVVIC to the French primary care prescribers with, as you see, immediate impact on our performance in France. Next slide, please. Next country focus, Germany, where we have launched in November 22 and we've been managing a two-year long access and pricing process now coming to its end. Germany quarterly growth kept increasing steadily, especially to represent 40% of the market potential, clearly have now adopted QVVIC thanks to our marketing and medical activities. We are today very excited to announce that we've agreed a commercial partnership with Berlin Chemie, a Menarini-owned company, to reach the GP prescribers who represent 60% of the market in Germany. 216 reds, 16 cans will visit GPs from April 25. We strongly believe this co-promotion will strengthen and accelerate our uptake in Germany. Next slide, please. So to conclude with UCAN regions, I want to remind you about the massive opportunities Insomnia Market represents with almost 4 billion tablets sold every year in a large majority coming from outdated products having many known issues. We've made great progress in 2024 through our targeted marketing activities, our very precise commercial execution to increase QVVIC awareness, first to specialists and then to GPs. These efforts are paying off with more and more prescribers who have adopted QVVIC to treat their chronic insomnia patients. Best illustration of this progress reflected by our new patient share clearly demonstrating that our commercial efforts with QVVIC in the UCAN region are beginning to translate into promising success. I'm very confident, especially with the commercial partnership such as Menarini in France, Berlin Chemie in Germany, that QVVIC adoption will keep accelerating in 2025. Thank you. Now we're handing over to Michael for the US focus. Next slide, please.

Thank you, Benjamin. By the end of 2024, more than 175,000 US patients have been treated with QVVIC since launch. More than 550,000 prescriptions have been dispensed and the product has been prescribed by more than 50,000 healthcare professionals. Throughout 2024, we optimized our resources and promotional effort and adjusted our commercial approach to get more towards a payor-paid model. We made a lot of great progress on that. I'm very pleased that we've been able to see steady US sales growth for QVVIC the last year and we've been able to increase the sales to over 28 million Swiss francs despite drastically reducing our marketing and selling investments. Notice, notably by reducing our field force in April 24 from 250 reps to 100 reps. Next slide. We're limiting our commercial efforts in the short term while we wait for the anticipated descheduling of the dual erection receptor antagonist class of sleep therapies. The citizens petition that we submitted outlined scientific and medical evidence demonstrating that the DORA class has a negligible abuse profile and lacks physical and psychological dependence and therefore should not be a scheduled class under the Controlled Substances Act. Adorcia continues to be very confident. There is a solid and very compelling case here. In fact, yesterday, I was in Washington, DC on Capitol Hill meeting in offices on both the Senate and the House side as we continue to find legislative advocates for our citizens petition. Descheduling the class would remove many, many access barriers for patients and the prescribers which add complications for physicians and consequently, we hope it would unlock the true value of QVVIC in the US. Next slide. So until the potential descheduling comes through, for 2025, the company has implemented a change to the commercialization approach for QVVIC with the objective to continue to reduce operating costs while maintaining the sales. We have expanded our multi-year relationship with Cineos. This was primarily around our sales organization. Cineos Health will now be more of our commercialization partner. We've switched from around 100 field sales reps to 20 virtual sales reps operating remotely. And we're using very advanced analytics and digital strategies to be highly focused and targeted. But Dorcia and Cineos will coordinate our marketing efforts, digital search and media, data analytics, our market access activities, all to support the virtual representatives and maintain sales. Next slide. And as you heard Andre mentioned earlier, in parallel, we've been preparing for the launch of Tribio in the US. We made Tribio available to doctors and patients in October of 2024. There are millions of patients in the US whose high blood pressure is not adequately controlled by other drugs. Again, you will hear this is a massive opportunity and unmet need within our healthcare system. Our team has fully developed a launch plan. We have a fully developed product campaign. Everything is properly planned out, including field sales force deployment and promotional activities. But the decision of the underclosed party not to close the Afris-Attenton deal urged the reduced US team to execute a much more limited and focused launch of Tribio in the US in order to maintain and increase the value of a potential out licensing deal for Afris-Attenton. So we've been very encouraged by the initial and ongoing conversations with our KOLs, our payers who understand that Tribio is addressing a significant patient need and that treating these patients who remain uncontrolled at a very high risk, they are at a very high risk for serious cardiovascular events. So now to hear more about that, I'll pass along to Martine. Next slide.

Thank you, Michael, and good morning, good afternoon. Picking up on a precedent, and I would like to highlight a few points. Resistant hypertension, when subjects are still hypertensive despite three drugs or more at optimal dose, remains one of the biggest medical needs in the field of hypertension. This form of especially difficult to treat hypertension is particularly seen in some populations, patients with renal failure, African Americans, high body weight, or older age. When hypertension exists, despite such combination of several anti-hypertensive drugs, this speaks for a key role of endothelin, which we know since more than 30 years as an important player in hypertension, but which was not blocked by classical anti-hypertensive drugs. Apocytentin is the first drug able to block the endothelin pathway in systemic hypertension. Next slide. Apocytentin is a once daily tablet. It's one dose for all. It's easy to use for patients, easy to prescribe for physicians. It can be combined with other drugs, and importantly, it can be used in patients with renal failure. Apocytentin, even on top of three drugs or more at optimal dosage, and even after controlling for good compliance, decrease blood pressure by more than 15 millimeters of mercury from this line. It was well tolerated long term with an extremely low number of discontinuations, and also had an impressive effect of decreasing protein. These properties taken together make apocytentin a highly differentiated drug, and ideal for the millions of patients who are unable to bring their hypertension under control with existing medications before apocytentin, particularly for difficult to treat patients with chronic kidney disease and hypertension. We are prioritizing the partnering of apocytentin to make sure we can get this outstanding discovery to patients as quickly as possible. Next slide. I would like also to spend a few minutes talking about our other assets at late and at earlier stages of clinical development. As you know, we have put our portfolio of research and development through a rigorous prioritization, and we have limited our activities in R&D in order to make the money that we have last. Each portfolio compound has been assessed in the context of the competitive landscape for the feasibility of high dossier to be able to develop a loan or to be generating the appropriate pre-clinical and clinical proof of concept data, enabling others to recognize the value of the asset. First, Luce Rasta in phase three. With Luce Rasta being in a rare disease and also with so much experience with the compound and the treating community, we believe we can advance the loan. We have already conducted the largest study for patients with family disease, and also we did not reach significance on the primary endpoint of neuropathic pain. Luce Rasta showed a marked reduction in the decline of kidney function. This is a major medical need in family disease. We are currently investigating in a small kidney biopsy study if this effect on EGFR slope is accompanied by an histological change, and we will see the results from this in the coming months. And at that stage, we will further discuss the regulatory pathway with the FDA. So next inflection point, therefore, is quite near term. Next slide, please. We found exciting and very unique early stage clinical pipelines that have come from our discovery group. Funding permitting, we intend to develop these to the next inflection point before finding a partner unless someone is happy to join forces already today. For example, we have our ACKR3 antagonist, former called CXR7 antagonist, for progressive multiple sclerosis. This first in class compound showed in every one of the preclinical tests we did, including human oligodendrocyte precursor cells, a unique combination of remyelinating effect and anti-inflammatory effect with decreased inflammatory cell infiltration. So we have a CXR3 antagonist, which we plan to develop in the DLIGO, another first in class. Targeting systemic therapy for vitiligo, targeting very specifically a system which is deemed to be very important in vitiligo pathophysiology. There is a huge medical need in vitiligo with very, very few drugs and no drug systemically approved. These two compounds, CXR7 or ACKR3 and CXR3, are ready for phase two proof of concept studies. Our CCR6 antagonist for immune-meditated disorders offers unique potential as a first in class oral targeted systemic therapy for effective treatment of -helper-17 driven diseases, which can be in immunodermatology and in other autoimmune disorders.

An earlier stage portfolio

is composed

again

of potential first or best in class compounds and this portfolio is again truly innovative. Time does not allow me today to go into detail for all earlier preclinical assess which we discovered, but again we have really discovered very special compounds such as, for example, our LPA1 receptor antagonist for immune-meditated and fibrotic related disorders, where I am convinced we have a best in class compound due to its insurmountable binding mod on the LPA1 receptor. It has proven inhibitory activity and efficacy as anti-inflammatory and anti-fibrotic in several preclinical models of inflammation and fibrosis. Or our CFTR type 4 corrector for cystic fibrosis, a unique corrector targeting a totally new binding site on the CFTR protein, which has been identified again by our team to name just two. I'm happy to spend more time during the Q&A to give you more color of any compound in our portfolio, but for now I'll hand over to Arnaud to take you through the financial update. Next slide, please.

Thank you, Martine. Good afternoon and good morning to everyone following the call. Let's start by looking at the non-GAAP operating results. As you know, Eidosia sold its APEC business to Nexera in July 2023. Therefore, we show you the 2023 pro forma, excluding the APEC business for a better comparison with 2024. More details are provided in the next slide, but here you can clearly see that we were able to increase our revenues, but at a significantly lower cost. The lower cost, R&D cost, is primarily due to the cost saving initiative that we implemented at the end of 2023 and the VITRE deal relating to the phase three programs of Celote-Gral and Scenarium of. Eidosia continues to assume clinical services and clinical costs for both programs, but these costs are netted against the deferred revenue, having no impact on our P&L. The SG&A cost reduction is primarily due to a reduction in sales and marketing costs in the US and HQ, while we continue to invest in the EU Can growth. This results in a non-GAAP operating loss of 308 million, a reduction of almost 50% compared to 2023. Next slide, please. Looking now at the US GAAP and non-GAAP operating results in more detail. The Eidosia led business reports a significant growth in QVIP sales from 32 to 61 million, which is largely driven by the EU Can region. In 2024, the partner business mainly includes the sale of intermediate products to partners on a cost plus basis. This also explains the relatively high cost of goods. The US GAAP operating result of 232 million includes a 125 million gain resulting from the viages deal and restructuring charges. Next slide, please. Let's now look at the cash development in 2024. We started the year with 145 million in cash. During the year, we had cash inflows from product sales of 107 million and cash outflows of 263 million for SG&A OPEX and 128 million for R&D OPEX, excluding the Phase III trials for Solatogrel and Scenery Mod. Other cash inflows of 10 million include working capital movements below EBIT items and the 30 million royalty monetization with Arbridge regarding Agamry, the D&D drug of Sontera. We received a 350 million US dollar cash inflow from the Vitris deal, which converted into 308 million Swiss francs, of which 200 million US dollar were committed to fund the ongoing Phase III trial of Solatogrel and Scenery Mod. This commitment was reduced by 100 million in February 2025. It will result in no cash outflow for these trials in 2025. In 2024, we paid 73 million as R&D contribution for the Phase III trials, leaving a 27 million R&D commitment for 2026. This results in a cash balance of 106 million at the end of 2024. Next slide, please. As mentioned by Andre, in the last weeks, we were able to secure the future operations of Eidosia through three key measures. As just mentioned, the amendment of the Vitris deal relieves Eidosia from a 100 million US dollar R&D funding commitment for 2025. A holistic restructuring of the 2025 and 2028 convertible bonds, which removes the large debt and cash overhang, was a very important pillar of the future going forward. Finally, some of the bondholders backstopped 150 million Swiss francs new money facility, which will fund the Eidosia business well into 2026. Next slide, please. This slide shows the result of the holistic restructuring that we announced last week. Both convertible bonds will be extended by 10 years from the original maturity date. So the 200 million convertible bonds originally due in 2024 will be pushed out to 2034. And the 600 million convertible bonds due in 2028 will be pushed out to 2038, with a put option in 2036. The agreement with certain bondholders means that we already know that around 75% of the existing Eidosia convertible bond debt will be exchanged for notes in the SPV that we are establishing. All remaining bondholders can voluntarily exchange their restructured Eidosia bonds for SPV notes. And I believe that the final amount left with Eidosia Limited will be lower than the 205 million Swiss franc that you see on the slide. In addition, once it is clear that the final debt to be carried over will be, we will adjust our share account. And the 90 million shares issued by year end 2024 will increase to approximately 220 to 222 million shares, depending on the percentage of convertible bonds exchanged. The 288 million diluted shares by year end 24 will see a limited increase to approximately 294 to 304 million shares, depending on the removal of the potential conversion from the existing bonds. As you can see, the issuance of shares and warrants associated with the holistic bond restructuring, together with the new money funding, will bring the dilution to 14 to 15% on the shares issued and down to 2 to 5% on a diluted basis. Next slide, please. This slide shows the financial outlook for 2025 compared to 2023 and 2024 operating results of the Eidosia led business. As already explained by Benjamin, we expect that the momentum in the Eidosia led business will continue to increase to 110 million. At the same time, we have and will further reduce our cost base to ensure that the money will last longer. This results in a further improvement of the non-GAAP EBIT loss to 215 million. Next slide, please. And then finally, the guidance for 2025. As mentioned on the previous slide, an expected non-GAAP EBIT loss of 215 million, which together with contract revenues of 15 million, results in a total non-GAAP EBIT loss of 200 million. A US GAAP result of 155 million includes the 100 million US dollar R&D cost sharing waiver by Viatris and the restructuring charges. Next slide, please. And I hand over to Andre.

Yeah, thank you, Arno. To conclude,

I want to remind you of the priorities that we have set for 2025 and our immediate future. It's up to us to make the money last and make the right decision on how it is spent. We have already some clear priorities. Firstly, we continue to prioritize finding a partner for our prositent and cons. I believe we can secure a great deal for our prositent and cons and see a sooner, see a better. Because we will be able to repurpose the money needed for the US launch activities. Secondly, the best way to solidify our future is to accelerate the success of QAVIC in the UCAN region. Our current forecasts have us reaching commercial profitability with QAVIC in 2026. The faster we can become commercially profitable, the greater the ability will be in idle share future success. And we also continue our efforts to get the Adora class scheduled in the US. And there's a good chance, as Michael explained, that we can finally unlock the true value of QAVIC in the US. As we are seeing in the UCAN region, if we are able to remove this barrier, big barrier, to prescription. Finally, we must leverage our innovative portfolio who targeted the development of some of our assets and partnering others. This could be a great source of income to keep our R&D engine fueled. And with this, I hand back to Andrew to

open the lines for Q&A.

Thanks, everyone. And now we have time to take your questions. As I mentioned at the beginning, we are also joined by our group general counsel, Julian Gander, for the Q&A. With that, operator, please open the lines for questions.

Thank you. As a reminder to ask a question, you will need to press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 1 again. We will now take our first question. Please stand by. And the first question comes from Henrietta Boag from Deutsche Bank. Please go ahead. Your line is now open.

Hi there. Thank you for taking my questions. Just a couple, please. Firstly, could you give us some timelines for the V-schedule for QAVIC in the US or any tangible next steps that you could share? Secondly, for Tri-VO, could you talk us through peer discussions and access levels and any conversations you've had so far? And then a last quick one, please. What do you consider to be the most important data point looking into the next 12 months? Thank you very much.

Okay. I think we'll start with you, Michael, for the discussion of the de-scheduling timeline and Tri-VO reimbursement. And then we'll come to what he considers the most important item coming up.

Yeah, absolutely. On de-scheduling, you know, we have benchmarked a handful of other products that have gone through this process. And that leaves us, you know, we would project, you know, there's a lot of unknowns, of course, in Washington. But within the next year or so, we'd be consistent with a few other products on the benchmark. So while we watch that, we're cautiously optimistic. It is a somewhat unpredictable process, but we have made a lot of great progress recently. And I think those benchmarks would put us in that next year to 18-month period, hopefully sooner. On the Tri-VO side, we are very, you know, continue to be very optimistic. The discussions with payers, you know, I think this coming in as a later-line product has allowed us to kind of naturally be in the approval process. In other words, the nature, as you heard Martine describe, of these patients is that they have failed multiple lines of therapies. And that has been good, that has given us a very good path with most of the payers. I think they see the real value of the product, and they see that these patients, you know, are truly struggling. And many of these patients for years, sometimes decades, have been struggling with their hypertension. And, you know, this being the first new mechanism and first option in more than 40 years, we've been having a great recognition to the payers of that fact, and that this is something that these patients desperately need. André?

Yes, Michael, thank you. So Henrietta, to your questions on the priorities. Actually, we, as you just mentioned, you know, all priorities are important to Adosia. But the first one is the commercial goals, which is 110 million cells, with almost triple in cells for Europe and Canada, and hopefully doing a little better and maintaining the cells in the US. And it's very important for us, because here we are in control of our destiny, and this will bring us to a sustainable overall profitability. The second one is relating to Procidentan. We are actively working, as you know, on the deal. And Michael and the US team is also working in close collaboration with our partner, Senior Health, on how we can go for limited targeted loads. And lastly, as Martin explained, we have really unique, innovative portfolio pipeline assets. And here we definitely need to see how we can bring these assets to the next inflection point. So if we believe that we need a partner, we'll try to find a partner. We have some discussions for these mid or early stage assets. One which was not mentioned by Martin because of lack of time was also phase one for Clostridium difficile, where we expect results by the end of the first half of 2025. So we have a few inflection points here demonstrating the potential value of the assets, proof of concepts, including, of course, and Martin mentioned it with Lucia, because that's the next drug, which has the potential to get market authorization across the globe. So we should be very happy with the recent developments because we extended significantly the cash runway. But we have a lot to do and, of course, reusing what I said at JP Morgan, I would say we have a mountain to climb, but I'm confident and I'm sure that the view from the top will be fantastic.

Great. Thank you very much.

Thank you,

Henrietta.

We will now take our next question. Please stand by. And the next question comes from the line of yours, Zimmerman from Octavian. Please go ahead, your line is now open.

Yes, thank you. Thank you, Tim, for taking my question. Maybe two. One on the financing and the restructuring of the situation there. With the creation of the special purpose vehicle, can you help me understand a bit better where the obligation related to the opposite on re-efficient fits? So where is this obligation now to be considered and what's the priority of repayment? And then the second question on your pipeline, what do you think is the realistic timeline for us to host for additional update and understand a bit where you go with the assets that you just showed in the presentation? Thanks.

Thanks for that, your hand over to Arno for the first question.

Hi, yours. Yes, so the SPV will acquire the ivory, the vitreous contract for a slotted grail and scenario mud plus a prosciutto and any income that will come from these assets. 30% of a prosciutto will go to J&J and 10% of slotted grail scenario mud income will go to J&J. That remains unchanged. So that will come to Eidorsia, Eidorsia will pay to J&J.

And then Andre, what do we think on the timelines?

Yeah, maybe just to add on the on the on CSPV, meaning remaining 70% or 90% respectively for prosciutto and vitreous, slotted grail and scenario mud will will go to the SPV, i.e. repaying the SPV notes. So that's also very, very important. And because as you have seen, almost 75% of the of the bondholders have agreed to exchange the existing convertible bonds for SPV notes. So it's at approximately 600 million that will move from Eidorsia Limited to CSPV. Regarding the CSPV pipeline, we have some inflection points as mentioned with Lucela's stuff and Clostridium difficile. So that's mid of this year, so stay tuned. And for all the other assets, it's like a out licensing or M&A process where you cannot predict what the outcome could be. But we are actively discussing with potential partners to maximize value of all compounds in our

pipeline portfolio. Thank you for the question, Joris. Operators,

do you have another question?

As a reminder to ask a question, you will need to press star 1-1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1-1 again. We have no further questions on the telephone lines. I would now like to hand back to, we have one more question on the telephone. Would you like to take it?

Yes, please go ahead.

We will now take a follow-up question. And the follow-up question comes from Joris Zimmerman from Octavian. Please go ahead, your line is now open.

Yes, sorry for bothering you. Maybe just one additional question on the going forward funding your operations. Is it correct for me to assume that the funding will come from the QVILUX sales from this new Backstop money facility and then any potential R&D pipeline deals that you will realize? Or is there any potential additional income streams that I have missed now? Thank you.

Andre, do you want to take that on? Where are we going to get our future funding from?

Yes, we are still investing, Joris, to be clear, in QVILUX reducing the loss which we incur. So sooner we drive the sales, the better and faster we'll reach breakeven and profitability. So that's for QVILUX. For our process as you understand, there's nothing to be expected in QVILUX. So you're right, the new money facility, 150 million, plus I would say the removal of 100 million US dollars and the commitment in connection with the deal with Viatris will bring us well into 2026. And of course, we no longer have to repay in 2025 the CV convertible bond 2025. And we will no longer have to pay down the road and with investors put in August 2026, the 600 million convertible bonds. That's what Arno explained as being removing a significant debt and cash overhang. And now on top and above, if we manage to secure some upfront payments in connection with some deals from our portfolio, this will definitely help to extend even more the cash run way of

FIDOXIA. Thank you, André.

As there are no further questions on the phone lines, I would now like to hand back to Andrew Jones for any closing remarks.

Thank you, Sonia. So this concludes the call for today. Thank you everyone for your time. Keep an eye out for the publication of the annual report 2024 on March 27, 2025. This consists of the business report, the governance report, compensation report, sustain sustainability report, and the financial report, which was already published today. We have our first quarter results on April 30th, our AGM on May 28th. We look forward to speaking with you again at latest at our next scheduled webcast with a half-year financial reporting on July 30th. And with that, operator, please close down the lines.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.