Ipsen Sa S/Adr

Good day and thank you for standing by. Welcome to IPSEN's conference call and webcast on full year 2025 results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during 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 one and one again. Please, the advice of today's conference is being recorded. I will now like to hand the conference over to your speaker today, David Lowe, Ibsen CEO. Please go ahead.

Thank you, operator, and hello, everyone. I'm delighted to welcome you to our presentation this afternoon, 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 2025, and on 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 of 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 our CFO, Aymeric Le Chatelier, who will take you through the financials, and finally, I will provide an R&D update. At the end of the presentation, we will open the Q&A session. Let's begin by looking at today's highlights. Please turn to slide four. Turn to slide five. Today's headlines illustrate how we are continuing to deliver strong and sustainable growth. In 2025, total sales grew double digits by 10.9%. a performance driven mostly by the strong performance of our portfolio, excluding somatolin, which grew by 14.2% over the year. Regarding margin, we delivered a core operating margin of 35.2% of total sales. Turning to regulatory highlights, this year was marked by the MR regulatory submission of tovorafenib for pediatric low-grade glioma in the first quarter, EU approval of carbometrics in neuroendocrine tumors in July, and importantly, by the announcement of the first data for our first-in-class differentiated long-acting molecule IPN10200 in September. Looking ahead, 2026 promises to be another exciting year for our pipeline with five key milestones, which includes three pivotal readouts in addition to the highly anticipated full data presentation of the Phase 2 data for IPN 10200 in first aesthetics indication glabella lines at an upcoming medical meeting. Lastly, we are expecting another year of double-digit sales growth for 2026, supported by accelerated performance across the entire portfolio and a better outlook for somatilin given the production challenges faced by generic competition. Emmerich will provide more details in his section. Please turn to slide six. Our full-year sales delivered a solid 10.9% growth and 7.5% in Q4, fueled by all three therapeutic areas with an improvement of performance for neuroscience and rare disease this year compared to last year. The portfolio excluding somatolin grew at 14.2% this year and by 19.6% in Q4. Oncology performed well with sales growth of 4.1%, but were down in the last quarter due to a decline in somatolin sales versus a very high baseline in 2024. Rare disease performed very well with sales doubling this year. Neuroscience with Dysport continues to deliver high single-digit growth I'll now turn to ecology for more detail. Please turn to slide seven. Starting with the methylene, sales were up by 4.3% for the full year. Both Europe and the U.S. continued to benefit from shortages of generic land realty and we saw a strong performance in the rest of the world. As we have previously communicated, we are aware of recent updates on the potential challenges with regards to the manufacturing and availability of generic land realty in several markets, And this is factored in our guidance. Carbametic cells were up by 5.1% with solid performance in Europe, driven by renal cell carcinoma growth and boosted by the neuroendocrine tumor launch, despite increased competition in the rest of the world. Decafeptil cells were up by 2.7% as we experienced volume growth in Europe and China, despite continuous competition and some pricing pressure in some countries. Only by sales grew by 6.2% with expansion of use in the US driven by the first line metastatic pancreatic adenocarcinoma indication. We expect sales to continue to grow modestly, but it's knowledge that we are now unlikely to reach 500 million euro in peak sales. Now let's turn to rare disease. Let's go to slide eight. On rare disease, BuildA continues to perform well with annual sales of 180 million euro, growing by 36.3%. Growth was driven by both PFIC and Allergy Syndrome indications in the US. Additionally, we saw a strong double-digit growth in both Europe and in rest of world. Q4 self-growth was impacted by ongoing competitive challenges in the PFIC indication and we expect to see the positive effect of the new pediatric field force we put recently in place in the coming months in the U.S. iCorvo continues to track very well with annual sales of 184 million euros with growth coming from all regions. Let me go into a bit more detail on the next slide. Please turn to slide nine. As you can see, we have demonstrated strong quarter-on-quarter growth since the launch just over a year and a half ago. In the U.S., we have seen a significant number of Ocaliva patients switching to I-Corvo on top of a growing PPAR market. We believe that the new data published at ASLD this year has further strengthened I-Corvo's profile as a drug with both long-term efficacy and safety, including improvements in pruritus, fatigue, and fibrosis. In Europe, we're continuing the launch across many countries, We're also very pleased with how well the launches are progressing, capturing new patients and contributing to expand the market. Moving to neuroscience, please turn to slide 10. These sports delivered another year of solid performance with sales growth of 9.7% for the full year. In aesthetics, sales grew by 13.7%, driven by continued strong sales in most territories, including the US and rest of the world, and by strong performance from our partner, Galderma, who continued to gain market share in key countries and a solid growth in our Ipsen territories. On the therapeutic side, this point grew by 4.2%, driven by strong growth in the US and Europe. Reported sales were, however, down in the rest of the world, impacted by adverse phasing of orders in Brazil. That concludes the review of sales. I'll now hand over to Emmerich, who will provide you more details on our full-year financials. Please turn to slide 11.

Thank you, David, and hello to everybody. I will now take you through more details of our 2025 financial performance and our guidance for 2026. Please turn to slide 12. We delivered another set of strong financial results this year across sales, profitability, and cash flow. First, our total sales, which exceeded €3.6 billion, grew by 10.9% at Coastal ExxonJoy. Our core operating income grew by 16.7% to €1.3 billion, in line with our free cash flow, increasing by 29% to reach €1 billion. Given this strong performance and our solid balance sheet with no debt, we had €3.2 billion of firepower available for external innovations. Let's take now a closer look at those financials in the next slide. Please turn to slide 30. Starting with the P&L to core operating income. I would like to highlight that we implemented this year a slight reclassification of our distribution expenses. These costs have been moved from SG&A to cost of sales and therefore now impact our gross margin. This change brings our reporting in line with common practices of most of our industry peers you have all the details in the appendix of that presentation. Now, if we look at the figures, the growth in total sales of 10.9% at constant exchange rates translated into 8.1% at current rates, given the adverse currency movements. Growth margin increased by 2.1 points, driven by the higher level of other revenue, by 18 million, mainly due to commercial and regulatory milestones received from ex-US partners for Onivide and some other products, and the growth in royalties received primarily from this port partner. SG&A costs increased by only 6.9%, with the ratio to sales at 31.6%, improving by 0.3 points, reflecting an increased investment to support the launches, especially iCurvo and Bilvey, and the impact of our ongoing efficiency program. R&D costs increased by 9.8% to reach 20.5% of total sales, driven mainly by increased investment to support the development, mainly in neuroscience and early stage oncology assets. As a consequence, our co-operating income increased by 16.7% with a co-operating margin standing at 35.2%, increasing by 2.6 points. Please turn to slide 14. Turning to IFRS Consolidated Net Profit. This year, we recognize impairment losses for about 350 million before tax, mainly driven by, first, TASVERY, for which we no longer expect to achieve the 500 million pixels given the recent competitive developments. Secondly, by FIDRESERTIB, following the negative readout in December 2025 of the Pivotal Phase 2 trial. And thirdly, by the discontinuation of some of our early stage assets. Despite those impairments, IFRS operating income and consolidated net profit increased by 26% and 28% respectively. Please turn to slide 15. Finally, on cash flow. We continue to generate strong free cash flows this year and maintain a solid balance sheet with a cash position of more than 500 million at the end of December. Free cash flow increased by 29% to 1 billion, driven by EBITDA growth, sound management of capital expenditures and working capital. Net investments included the acquisition of InCheck Therapeutics for about 350 million and some regulatory and commercial milestones. As a consequence, with a net cash position of exactly 560 million euros at the end of December, and based on the maximum of two times net debt to EBITDA, we had an available firepower of 3.2 billion for external innovation at the end of 2025. Let's now move to 2026 guidance. Please turn to slide 16. For this year, we anticipate another year of double-digit sales growth with a high level of profitability. For total sales, we expect growth of more than 13% at constant exchange rates. This year, we also anticipate adverse impact of around 2% from currency based on the January exchange rate. This guidance on sales is assuming an accelerated sales growth of the portfolio, excluding somatulin. This will be driven by iCurvo, Bilve, D-Sport, but also Cavometics, as well as a continued growth from somatulin. Given the recent challenges with regard to the manufacturing and availability of generic lauriotides, we assume limited generic supply in 2026, with a potential entrant only in the second half of this year. On profitability now, we anticipate a co-operating margin greater than 35% of total sales. We will continue to leverage our top line growth with moderate increase in HG&A and R&D ratio to stay around 20% of sales. However, currency rate and a lower level of other revenue will have an adverse impact on our margin in 2026. Regarding our midterm outlook, we are highly confident to exceed our total sales average growth of at least 7% per year for the period 23 to 27, and our 2027 core operating margin greater than 32% given the higher than expected somatine in sales due to continued generic laurieotide challenges and the stronger performance of our broader portfolio across our three therapeutic areas. With that, I will now hand over to David. Please turn to slide 17.