Ipsen Sa S/Adr

Hello, everyone. I'm delighted to welcome you this afternoon to our H1 2025 results presentation, which can also be found on Ibsen.com. I want to use the time we have together to focus on the progress Ibsen delivered in the first half of 2025 and all the future opportunities and platforms for growth. Please turn to slide two. Please take note of our forward-looking statements, which outline the routine risks and uncertainties contained within this presentation. Also, All my comments on growth will be based on constant exchange rates. Please turn to slide three. I'm going to take you through the presentation of our latest business update, followed by Christelle Hügge, head of research and development, who will provide an R&D update, while our CFO, Aymeric Le Chatelier, will take you through the financials. At the end of the presentation, all three of us will be participating in the question and answer session. Let's begin by looking at today's highlight. Please turn to slide four. Turn to slide five. Today's headlines illustrate how we are continuing to produce sustainable growth. Total sales grew by 11.4% in the first half of 2025, accompanied by a core operating margin of 36%. As you have seen, we announced last week the European Commission approval of Covometics in neuroendocrine tumors, an area where Ipsen has a strong legacy. During this first half, we also made good progress with our pipeline, including the entry in phase two of IPN 10-200, our long-acting neurotoxin AD, in cervical dystonia. This milestone highlights the fourth study in the global long-acting neurotoxin development plan in therapeutic and aesthetic indications. Pipeline progress also came in form of the EMEA regulatory submission of tovorafenib for pediatric low-grade glioma earlier in the year. In the second half, we anticipate a pivotal trial readout for fitresertib in FOP and, excitingly, our first proof-of-concept data for our long-acting neurotoxin in aesthetics. Christelle will provide more details on these as well as on the development of elefribenor in PBC and PSC in her sections. Lastly, based on the solid momentum and the strong performance of this first half, we are pleased to upgrade our full year guidance. We now expect total sales growth greater than 7% at constant exchange rates and the core operating margin greater than 32%. Emmerich will provide more details in his section. Please turn to slide six. Our sales in H1 delivered a solid 11.4% growth fueled by all three therapeutic areas, with Q2 very much aligned with Q1 performance. Oncology has performed well with H1 cells growth of 6.4%. Rare disease continues to have the most impressive performance driven by the sustained success of iQurbo and the strong performance of Pilvay. Neuroscience with this work continues to deliver high single-digit growth. I now turn to oncology for more details. Please turn to slide seven. Starting with somatolin, sales were up by 14.1%. Both Europe and the U.S. continue to benefit from shortages of generic lanreotide. We do anticipate more lanreotide generic competition with potential entry in the second half of the year. Cobamethic sales were slightly down by 0.2%, with solid performance in Europe from increased volumes offset by shipment phasing and increased competition in the rest of the world. We're confident that carbometrics should continue to grow its market share in the current indication in real cell carcinoma and progressively launch in the neuroendocrine tumor indication. Decapestile cells were up by 0.5% as we experienced volume growth in Europe and China, despite continued competition and some pricing pressure in some countries. Oedipal cells grew by 6.5%, with moderate growth in the U.S., driven by the first-line metastatic pancreatic ductal adenocarcinoma. We recognize that it will take time to drive first-line differentiation and address some challenges around access to payers. Now, let's turn to rare disease. Please turn to slide eight. On the rare disease, BuildA continues to perform nicely, with H1 cells of 87 million growing by 53.7%, driven by strong demand in the U.S. and in Europe in both PCIC and Allergy Syndrome indications. We also had an increase in contribution from rest of the world with access and reimbursement now secured in 17 countries. Turning to Aquervo, the launch continues to track very well with sales reaching 59 million this semester. In Q2, we saw an acceleration in the U.S. with a 65% growth quarter over quarter, driven by an increasing uptake from new patients and switches from Ocaliva. Europe was also very strong with sales mainly from Germany and the UK and launches initiated in Spain and Italy in June. Moving to neuroscience, let's turn now to slide 9. This board delivered another solid performance with H1 sales growth of 9.7%. In aesthetics, sales grew by 17.5%, driven by continued expansion in most territories, including the US, Europe, and rest of the world, and by a strong performance from our partner, Galderma, who continues to gain market share in key countries and a solid growth in our Ipsen territories. On the therapeutic side, this work shows solid and consistent demand growth across all geographies. In the US, notably, we continue to gain market share in our specificity indications, with strong double-digit sales growth. Reported sales were, however, flat due to an adverse phasing of orders in Brazil. Supported by solid market growth in both indications and strong execution, we're confident that this sport should continue to deliver high single-digit sales growth in the short, mid, and long term. Now, I'd like to present the upcoming catalyst. Please turn to slide 10. In the second half of 2025, we are expecting updates in rare disease and neuroscience. Starting with rare disease, we should report the pivotal FALCON trial results for FITRESERTIP in FOP. Secondly, in neuroscience, we're expecting the proof-of-concept data rewrite for LAND in aesthetics. Looking ahead, 2026 is going to be a busy year for the pipeline, with several anticipated phase three data re-dives across all three therapeutic areas, including for Bilway, iQuerbo, Tasveric, as well as migraine trial re-dives for Dysport. With that, I'll now hand over to Christelle, who will provide more detail on our pipeline and those exciting milestones. Please turn to slide 11.

Thank you, David. Good morning and good afternoon. Please turn to slide 12. As David already mentioned, last week we were delighted to receive the European Commission approval for cabometrics in advanced pancreatic and extra-pancreatic neuroendocrine tumors. This approval was based on the strong results of the cabinet study displayed here on the graph, which showed a significant improvement in medium progression-free survival for patients treated with cabometrics versus placebo. Working within the NET community for more than 35 years, we recognize that patients require multiple lines of therapy for this slow-growing and chronic form of cancer. We are now focused on bringing this important treatment to patients. Please turn to slide 13 and our pipeline. We continue to have a strong and differentiated pipeline that has advanced in all three therapeutic areas in the first half, of 2025. In oncology, we have established a strong expertise in the MAP kinase pathway, starting with pervoracinib, a second-generation RAS inhibitor, and the Firefly 2 Phase 3 study in untreated pediatric low-grade glioma patients. IPN 1195, our newest third-generation RAS inhibitor, has entered the clinic in April, alongside IPN1194, which selectively inhibits ERK, also in the MAP kinase pathway. Both IPN1194 and IPN1195 are being evaluated in a number of solid tumors. In rare disease, we continue to grow our rare liver portfolio, both in pediatric with BELVE, in biliary atresia, and in adult, In PSC and PBC with iCurvo, I will share more on the Elmwood study in a minute and also update you on the Fulton study in SOP. In neuroscience, we continue to evaluate the potential of our portfolio in both chronic and episodic migraine. We've also just shared that we have added a fourth phase to trial in our LANS program, with Catalpa, evaluating IPN10-200 in cervical dystonia. Please turn to slide 14 for more detail on the rare disease portfolio, and starting with Fibrodysplasia Ossificant Progressiva, or FOP. A FALCON is a Phase II registrational study evaluating the change in heterotopic ossification volume from baseline to 12 months. and assessed by a whole-body CT scan. Importantly, Fidricertib selectively inhibits the mutated form of ARC2 that is found to be a driver in FOP. We expect this data to read out in the second half of 2025. Please turn to slide 15. With an update now on the rare liver disease portfolio, first starting with primary biliary cholangitis, At the recent ESOL meeting, we shared late-breaking data from the Phase 3 L-active study for iCurve or MPBC. Additional analysis showed that at Week 52 of treatment, 67% of patients treated with L-afibrino had a clinically meaningful improvement in fatigue compared with 31% of patients treated with placebo. Importantly, this effect was also shown to be independent of the reduction in pruritus. Alongside these data, we presented evidence from a comprehensive proteomic analysis that showed the V-bar alpha activation is linked to the fatigue improvement in PBC. Please turn to slide 16. Moving to PSC. At ESOL, we also shared the results of our Phase II Elwood study, evaluating the safety and efficacy of elafibrinol in primary sclerosing cholangitis, a rare liver disease that currently has no approved treatment option. In this study, elafibrinol showed a favorable safety profile and demonstrated dose-dependent efficacy at 12 weeks versus placebo, across a number of endpoints. In particular, significant improvement in liver biochemical parameters, including alkaline phosphatase, shown on the graph on your left. In the center graph, stabilization of non-invasive markers, including enhanced liver fibrosis, ELF. Of note, the changes in ELF are greater in patients with moderate to severe fibrosis at baseline. And finally, the graph on the right shows a significant improvement in pruritus. And this was observed using the Worth HNRS score at the 128 dose. We are now engaging with regulatory agencies to decide on the next steps of our clinical development program for this indication. Please turn to slide 17. In neuroscience, the next data revealed is the LANTIC phase two, a multi-stage dose escalation study, evaluating the safety and efficacy of IPN 10-200 in moderate to severe upper facial lines. The proof of concept is determined in the stage one, where we are evaluating IPN 10-200 in glabella lines, and we expected this data in the second half of 2025. The stage two of this study has already started and includes forehead and lateral cancer line. We're excited to see these results coming from the stage one in the coming months, and the positive proof of concept will support a phase three start. I would now like to hand over to Aymeric Le Chatelier for the details of our H1 fundamentals. Turn to slide 18, please.

Thank you, Christelle, and hello, everyone. I will now take you through the detail of our financial performance in the first half of this year, as well as our guidance for 2025. Please turn to slide 19. We deliver another set of strong financial results in the first half across sales, co-operating income and cash flow. Our total sales over 1.8 billion grew by 11.4% at constant exchange rate. Our co-operating income grew by 21.9% to €656 million in line with our free cash flow, increasing also by 22% to €483 million. Given this strong performance and our solid balance sheet with no debt, we now have at the end of June an updated firepower available for external innovation of €3 billion. Let's go more in the detail of those financials in the following slide. Please turn to slide 20. Starting with the P&L to core operating income, the growth in total sales of 11.4% at consortium exchange rates translated into 9.7% at current rates given the adverse currency movement, mainly from emerging markets. Growth margin increased by 2.1 percentage points, driven by a favorable product miss and higher other revenue from partners. R&D costs increased by 12.8% to reach a ratio of 20.1% of total sales, driven mainly by increased investment for D-SPOT in migraine, long-acting toxin in aesthetic and therapeutic, and our early-stage oncology assets. SG&A costs increased by only 5.6%, with a ratio to sales at 33.3%, improving by 1.3 percentage points, reflecting our commercial investment to support the launches, but also the impact of our efficiency programs. As a consequence, our co-operating income increased by 21.9% with a co-operating margin standing at 36% of sales, an improvement of 3.6 percentage points. Please turn to slide 21. IFRS operating income and consolidated net profit increased both by more than 40%, thanks to lower restructuring and other operating expenses, lower financial expenses, and despite implement losses recognized for €53 million in relation with discontinued early-stage assets, as well as slightly higher income tax. Please turn to slide 22. Finally, on cash flow, we continue to generate strong free cash flow this year and have a strong balance sheet with a cash position of 488 million euros at the end of June. Free cash flow increased by 22.8%, driven by EBITDA growth, sound management of capital expenditures and working capital. Net investment included payment related to regulatory and commercial milestones. With the net cash position increasing, of 400 million and 88 million at the end of June, and based on a maximum two times net debt to EBITDA, we have a firepower of 3 billion euros available for external innovation. Let's now move to 2025 guidance and turn to slide 23. Based on this solid momentum in the first half of the year and that very strong performance, we are pleased to upgrade our full year 2025 guidance. First, we expect total sales to grow by more than 7% at constant exchange rates, as compared to our previous guidance of sales growth above 5%. We assume also a negative impact of 2 points from currencies, based on the latest exchange rates during the month of June. This guidance assumes, as indicated by David, a negative impact in H2 on somatidine sales in the U.S. and in Europe with a progressive resupply from the current generic and a potential entry of an additional generic. On the other side, we expect an accelerated sales growth from the rest of the portfolio, driven by the significant drop-off of iCurvo in the U.S. and in Europe, as well as the growth of Cabometrics. On the other hand, we anticipate now a co-operating margin greater than 32% of total sales as compared to more than 30% in our previous initial guidance. It assumes, however, a lower level of profitability in the second half of the year, including additional R&D expenses from potential early or mid-stage external innovation opportunities, additional commercial investment to support our launches, and a lower level of other revenue than in the first half of the year. With all of that, I will now hand over back to David. Please turn to slide 24.

Thank you, Aymeric. I will now move to the conclusion. Please turn to slide 25. We continue to deliver strong momentum and remain firmly on track to achieve our ambitions. I'd like to leave you with three key messages. We intend to continue growing our top line fueled by the performance of our existing portfolio and launches. This consistent growth reflects our focus on execution and our ability to deliver across both commercial and medical fronts. Second, we remain committed to continuing our R&D investments and growing our internal pipeline while investing to support our current and future commercial launches. Finally, we have a significant firepower to pursue external innovation. We remain disciplined but ambitious, and we are well positioned to seize the right opportunities to further strengthen our portfolio. With that, please turn to slide 26. This concludes our presentation, and we will now take your questions. Operator, over to you.

Thank you very much. As a reminder, to ask a question, please press star 1 and 1 on your telephone. and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by as you compile the Q&A roster. Our first question comes from the line of Richard Melser from JP Morgan. Your line is now open.

Hi, thanks for taking my question. Two questions, please. Just one on somatoline. It seems like generics are always going to have supply issues. So at what point do you think we can think about a substantial residual tail to the business? Where might that be? How should we think about the outlook maybe beyond 25 or 26 and I suppose the profitability of the business during that period? And then a second question on a Curvo launch, just obviously going very strongly, how should we think about that and the level of use maybe off-label in other indications that might come through going forward in the coming months? Thanks very much.

Thanks a lot, Richard. On your first question, I mean, I have to say, first of all, At least with our performance on somatoline, it also shows that it is very difficult to produce compounds. So we have observed that Pharma 10 is only coming back very slowly, you know, delivering to accounts in Europe and Cyprus, so they're slightly increasing. And on SunPharma, which had the approval last year in October, we don't see them on the markets. Now, you know, they're telling the market that they might come towards the second half in Europe. In the US, we have not heard anything. So, it's correct that, you know, semantolin is holding up very nicely, but we just want to be careful, you know, perhaps one day they're going to figure out how to produce it, and we will see a somewhat accelerated erosion. That's all I can say because we're not inside the production buildings of these companies, and it's hard to say how well they are doing on eventually ramping up. So I would assume that there is going to be a tail in the future even because of those reasons that it's so hard to produce. On iQurvo, we are, as you said, on a really nice trajectory. We're off to a great launch in the U.S., but also outside of the U.S. We have had outside of the U.S. a substantial advance versus Gilead. And we have also seen the withdrawal of Ocaliva in Europe. So that has accelerated things for sure. And we have been able to capture a lot of switch patients as well. And we're only about to launch now in other large markets. We just got the reimbursement in June in Italy and also in Spain. So we are ramping up there. So things are going very well. Off-label use, PSC, I guess you would allude to, because we have shown results in May at the EASL conference, which look very promising, and we are going to discuss these results with the FDA and potential way forward in PSC. But, you know, I can't really comment on off-label. As you know, we are not promoting it, obviously. We can only have scientific exchanges for our MSLs when we get questions. But so far, so good. I mean, there is a lot of enthusiasm on iQuervo. And we also have shown, you know, new fatigue data. We analyzed the data with proteomics. And we believe the PPAR-Alpha effect is actually linked to this fatigue effect, which is totally independent from pruritus. So, that's also encouraging data. So, I'm very positive on iQuervo, I have to say. Thanks a lot for your question.

Thank you. Just a moment for our next question, please. Next, we have Xian Ding from UBS.

Hi, thank you very much. Thank you for taking my questions. And just two, please. The first one on couple metrics. Now you've got the NET approval in Europe, so just wondering how should we think about the cadence in the second half you know, roughly when are you thinking to launch, or can you actually launch immediately, given this is actually a drug that's already on market, so we should expect already update from Q3, or this is more going to be back and loaded? So that's the first question. And second one on Discord, please. Just wondering, you know, what's the latest underlying trend in aesthetics that you've been seeing? Have you seen any softness in the U.S. from, you know, macroeconomics and anything else? Yes, thank you very much.

Hi, Stein. Thank you for your questions on carbometrics. Obviously, we're very enthusiastic now launching into neuroendocrine tumor. This is an area that we know very well, obviously, because we have had a very long legacy with somatilin in this. We know the KOLs very well. We can launch in Germany, as you know, immediately, because you can launch when you have the approval in Europe, in Germany. And then for the other markets, we will have also some payer discussions, and it sometimes takes up to 12 months with payers in Europe outside of Germany to actually get the reimbursement, and then we're going to be ready to launch there as well. On this board, your question on the trend in AX, we don't really see a softening in the US. that our partner, Calderma, is doing an excellent job in the U.S. gaining market share, but also outside of the U.S. gaining market share. And we see a similar trend in the territories that we have in aesthetics, where we also see a nice growth. So, as I said, on this board, we expect short, mid, long term, really nice growth in aesthetics, but also in therapeutics. So, next question, please.

Thank you. Just a moment for our next question. Next, we have Victor Floch from PNP.

Hey, thanks a lot for taking my question, Victor Floch from PNP Paribas Exxon. Maybe first on IQO though, I was wondering if you could comment on the potential next step in PSC. And I guess it's mainly tied to the IQOVO IP situation. So, if so, what are your options to meaningfully extend IQOVO LOE? And if you can do it, what would be the other indication you would be looking at? And my second question on the LEN-TIC readouts later this year, any chance you could remind us what data you are expecting to share in the second part of the year? So, again, I understand it's going to be limited to the stage one. And so, can you confirm that out of those stage one data, it will be enough to have a clear view on the asset direction of action? Thanks so much.

Okay. Thank you, Victor. On iCorvo, regarding next steps on PSC, as I said, I mean, we have presented the data, which was very encouraging, not just on ALP, but also on the fibrosis, which is what you want to see in PSC. So, we're going to have a discussion with FDA in terms of potential trial design. On IP, as you know, we have orphan drug designation, but there is also method of use patent. So, if you would, for example, get an approval in PSC, and since this is a different dose, it's under 20 milligram, we could also get another orphan drug protection there. And so, this is what we are right now discussing. Regarding the LANTIC data, I will ask Christelle to comment.

Thank you, Victor. So, yes, indeed, we're reading out the stage one of our LANTIC study that looks at the safety and efficacy in glabella line. And these studies had a design that includes a follow-up of both our primary and secondary endpoints out to six and nine months. We're very excited to see that data coming, but it's too early to comment on the outcome of the study. But you have the design that gives you an idea of what we're really looking for, a differentiation at a longer duration of action that we've built in our study.

Mr. Thanks so much.

Thank you, Victor.

Next question.

Thank you. Just a moment for our next question, please. Next, we have Charles Kings from Barclays. Your line is now open.

Hi, guys. Charles from Barclays. Thanks very much for taking my question. Two focusing just on your neurology portfolio. Firstly, a quick one on Dysport and the therapeutic. Wondering if you could just quantify that phasing impact from Brazil on your therapeutic results. I'm just wondering if that should unwind over 2H25 to kind of bring you back in line with that high single-digit top-line growth you're targeting. And then secondly, as far as the kind of long-acting neurotoxin strategy, can you give us a quick update on what the latest is as far as the arbitration with Galderma is? And then thinking maybe just a bit more holistically, what is the kind of long-term goal here? Assuming you're successful with the arbitration, do you see value in trying to produce your own distribution network for the aesthetic indications, or would you try and continue to leverage Galderma's distribution network? You know, what are the associated investments that would be required to do that um and just a kind of connection to the investment on on land can we just like can you give us any breakdown of the impact of higher r d costs in 2h as to why you're expecting us to step down on that ebit margin um for the four-year guide thank you very much okay thank you charles uh regarding this board phasing brazil i let the emery collaborate

Yes, so thank you for the questions. I think we are very pleased with the performance that we have in therapeutic, as you know, across the board, including the performance in the U.S. in spasticity, the performance also in Europe. I think the performance was impacted by some shipment phasing that we have with the Ministry of Health. in brazil we're not going to provide the quantification also exactly but we expect that to stabilize by the end of the year and i think that overall in therapeutic we expect this port to continue this icing and digit goals and then on the question of the launch arbitration we are expecting that the arbitration should read out probably towards the end of the year so uh you know

We just have to be patient and then see what the arbitration is going to say. So I can't really, you know, elaborate on longer-term aesthetics, et cetera, or partnering aspects because, you know, we first need to see the arbitration look and then see where we take it from there. Thanks a lot, Charles.

Operator, next question. Thank you. Just a moment for our next question, please.

Next we have Simon Baker from Ruth Child and Co. Redburn. Please go ahead.

Thank you for taking my questions. I'll try and squeeze three in, if I may. Firstly, on Builder, I wonder if you could give us some idea of the split of revenues between indications. And then for Akirvo, Could you remind us how you see the relative size of opportunities in PBC and PSC? As you said, there is no currently approved treatment for PSC. You're probably three or four months ahead of Miriam in PSC. So I just wonder how confident you are that you can be first to market and just give us some sort of idea of what would be a reasonable timeline to get to market. And then the final question was, you mentioned the U.S. share gains for Dysport. I wonder if you could give us a little bit more color on exactly what's behind that and where those are occurring. Thanks so much.

Okay. Thank you, Simon. On Build Day, We're not guiding, you know, on the split of sales, et cetera, for competitive reasons, obviously. But what I can say is that since we launched in PFIC first and Mirum launched in Alagile first, both companies are a bit more dominant in these two indications. We are now launching Kayfunda and Alagile in the U.S., so we are gaining market share in the U.S., but also we will start to see the effect of the Kayfunda launch ex-U.S. in the coming months and years. So BuildA is on a really good track. We are going to reinforce also in the U.S. our infield strengths, to further push the product because we think the product has a really nice potential and we can penetrate even more with some more share of voice. On iCorvo, regarding your question on the size of PBC and PSC. So the PBC market in second line is roughly 40,000 patients. In PSC, The first line indication, because you need to now compare first line, that would be the first product to be used in PSC because there is no other product. You have also 40,000 patients. So the two market sizes are actually fairly similar. Now, I didn't quite capture your logic on Mirum developing in PSC because that's not at all the same mechanism of action. We don't see that mirum would have an effect on fibrosis, which are, you know, long-term outcome, which is really what you need to look for, not just pruritus. We do assume that acorbo also has a pruritus effect, which you have seen in the Phase II data. But much more importantly in PSC, you want to see an effect on the fibrosis, on the long-term impact on your liver. So that's going to, of course, take a bit of time, such a trial. We are going to discuss endpoints with FDA to look at exactly how we would structure that trial. And then we will come back, you know, to provide you with more details. So, it's a bit too early to answer this question on the timeline. Regarding this board and the U.S. market share, what is behind? I would say, you know, you should really ask Galderma, of course, if you want to have the details. What I can say is that I think they have done an excellent execution on the launch of Diceport, and Diceport has a very strong perception in the market, so they are gaining market share.

Great. Thanks so much.

Thank you. Just a moment for our next question, please. Next, we have Shane Hammer from Jefferies. Your line is now open.

Heather, thank you for taking my questions. Two from me, please. If I could just push you a little bit on that arbitration. So if the resolution isn't favorable to Ipsen, do you think there's scope to renegotiate with Garderma for better financials? And then secondly, what's your outlook on Onovide for the rest of the year and even into 2026? Because it looks like uptake is strained a little bit. Is this because of the physician preference for the original and cheaper regimen? Or is it something else that is important for us to note? Thank you.

Thank you, Sian. On the arbitration, you know, I really can't comment. As you know, whenever you are in a legal situation, you don't want to speculate on whatever could come out. So I will have to park this for really after the arbitration readout, which should come anyway fairly soon. And then on your second question on divide and regarding the longer term. So as I said, we recognize that This is a bit of a slower penetration. There is, I would say, a bit of habit with modified Folfirinox, especially in the academic centers. We have been presenting recently real-world effectiveness data, which look very good and actually very strong. We're also going to start doing more trials in the office space because we want to make sure that we show that also this drug can be used very well in the office space. Of course, this is going to take a bit of time. And we're also negotiating with payers to take away the hurdles that some of the payers have put in place. We have already had one smaller payer which has lifted this. we are still negotiating with other players. So, it's going to take time, you know, to see the growth. So, we think it's a bit of a slower growth over time. Thank you for your question.

Thank you.

Thank you. Next, we have Florent Sepide from Bernstein. Your line is now open.

Good afternoon. Thank you very much for taking my questions too, please. First, on M&A, as your firepower is improving over time, could you maybe elaborate a bit on your strategy? Is there the time to be maybe a bit more ambitious or to look for maybe bigger targets or you stick to your historical strategy? And my second question is maybe a follow-up on the LANTIC trial, just to figure out, Could you maybe give a little bit more color about the time frame? Because you have the stage two and the stage three. Do you have to understand that it will be first the stage two and then the stage three, the same patients? Or is there anything that could be in parallel? Any color on the time frame would be great. Thank you.

Thank you, Florent. Regarding M&A, I mean, as you rightly outlined, we have a very significant firepower now. Regarding our ambitions, we will always look for the best science, and then we will make up our mind how we are going to split that firepower. Having said that, we want to continue doing deals over the full spectrum of preclinical, early clinical, late stage clinical, but also on market. And so, It gives us optionality, obviously, when you have more firepower on what you can do and how many deals you can do. So that's actually quite a nice situation to be in. So we are, of course, very actively screening for really nice scientific data of companies. And then you will hear more once we have, you know, won acquisitions or we have done licensing deals. On Lantik, I will hand over to Christelle regarding the design.

Thank you, Florent, for your question. Indeed, you are right. It's a three-stage study. The stage one, our proof-of-concept readout, is in glabella line, and a positive proof-of-concept from that stage will support a phase three start. While in parallel, the stage two is running in forehead line and lateral canter line to other lines of the face, and that phase two will be followed by a phase three, where we will study the full upper facial line, glabella line, forehead line, and lateral cancer line. But just to be very specific again, the proof of concept in glabella line will support a phase three start in glabella line. The others will come in parallel.

Thank you very much. Thank you.

Thank you. I see no further questions at this time. I will now turn the conference back to David Lowe, CEO, for closing remarks.

Thank you, everybody, for attending, and I hope you have a nice summer break.