Ipsen Sa S/Adr

Hello and welcome to the Ibsen's conference call and webcast on H1 2026 results. I'll now hand you over to David Loew, Ibsen's CEO.

Thank you, operator. Good afternoon, everyone, and thank you for joining Ibsen's H1 2026 results presentation. Today, we will review our first half performance, the progress we are making across the business and the key milestones ahead. Please turn to slide two. Before we begin, please take note of the forward-looking statement and risk factors described on this slide. Unless otherwise stated, gross comments during the presentation are at constant exchange rates. Please turn to slide three. I will start with the business update. Aymeric will then cover the financial update. Christelle will take you through the R&D progress, and Mari will cover the commercial updates. I will then return for the conclusion before we open the call for questions. Please turn to slide four. Let me start with a business update, slide five. The first half of 2026 was marked by excellent financials and progress on our strategy to accelerate growth of key medicines and expand the pipeline. We posted strong numbers with total sales growth at 23.5% at constant exchange rates and a 38.6% core operating margin. The late stage pipeline is delivering with three positive phase three readouts and three late stage trials underway. The pipeline has been further bolstered as we announced two later stage clinical acquisitions. Finally, based on this strong first half performance, we are upgrading our 2026 guidance. Aymeric will provide more details in this section. Slide six. Turning to sales performance, total sales reached 2.2 billion in the first half, growing 23.5% at constant exchange rates. All three therapeutic areas contributed positively. Oncology grew 15.6%, rare disease grew 108%, and neuroscience grew 16.6%. Importantly, total sales excluding somatolin grew 24.8%, demonstrating the breadth of growth across the business. Please turn to slide seven. Starting with oncology, H1 cells grew 15.6% to 1.45 billion. Somatilin delivered 686 million, supported by performance in the US and Europe, ongoing generic lanrethite supply constraints, and growth in rest of the world. Covometics reached 351 million, driven by increasing share in renal cell carcinoma, and the contribution from the NET launch in Germany. Rare Disease delivered a very strong first half with sales of 305 million, more than doubling year on year. iQuerbo reached 173 million driven by higher patient numbers in the US and strong launches across European countries. Bilbey reached 120 million, reflecting strong growth in PFIC and Alagile in the US and Europe, with increasing contribution from rest of world. Turning to neuroscience, H1 cells grew 16.6% to 434 million. Aesthetics delivered 257 million, up 19.6%, with sustained growth across North America and Europe, and favorable shipment phasing in certain rest of world countries. Therapeutics reached 170 million, up 13.8% with double digit growth in the US and Europe, partially offset by tender phasing in rest of the world. Please turn to slide eight. I wanted to highlight the evolution of our late stage pipeline. We have now delivered three positive phase three readouts, two for this board in therapeutics across episodic and chronic migraine, both showing very strong results and one for iQuerbo in PBC through the ELSPIRE studies. Both assets, iQuerbo in PBC and Bisport in Therapeutics with blockbuster potential. At the same time, we're advancing three important late-stage assets, Corobotes in Glabell Alliance, Elefibonor in PSC and IPN6340 in AML, reinforcing the depth and breadth of our internal pipeline. Together, this progress demonstrates that we are not only delivering strong near-term performance, but also building the next wave of growth through disciplined execution across our priority therapeutic areas. Please turn to slide nine. Let me lastly touch on the two recently announced transactions, which are aligned with our strategy to build sustainable growth through focused external innovation. With Carters Therapeutics, We're adding Nazimadaline, a phase 3 oral MDM2 inhibitor for myelofibrosis, strengthening our hemato-oncology pipeline. With Memo Therapeutics, we're adding Potravitoc, a first-in-class anti-BK poliomavirus antibody for post-transplant nephropathy, strengthening our rare disease pipeline. Both assets address areas of high unmet need, and each has blockbuster potentials subject to successful development and approval. With that, I will hand over to Aymeric for the financial update. Please turn to slide 10.

Thank you, David. I will now take you through the financial update for the first half, including our P&L performance, cash flow performance, and also our upgraded 2026 full-year guidance. Please turn to slide 11. As you can see, we deliver another very strong set of financial results in the first half across sales, profitability and cash flow generation. Total sales reached 2.2 billion euros, growing 23.5% at constant exchange rates. Co-operating income increased even further by 28.8% to 845 million euros, while free cash flow was also very strong at 652 million euros, up 34.9% year over year. And consequently, after the announced cartos and memo acquisition, we will still have more than 2 billion euros of pro forma firepower for external innovation based on net debt, including contingent liability and commitments at two times EBITDA. Let's go into the detail of those financials on the following slide. Please turn to slide 12. Starting with the P&L to co-operating income, total sales reaching €2.190 million, up 20.4% at current exchange rate, including an adverse impact of currency for 3.1 points. Gross margin increased by 19% to reach 85.1% of total sales, compared with 86.1% last year. This reflects mainly lower other revenues, due to fewer milestones received versus 2025 despite better cost of sales due to favorable product mix. HG&A expenses increased by 8.4% reflecting the higher commercial investment to support launches to reach around 600 million euros and improved significantly as a percentage of total sales to 27% compared to 30.8% last year. R&D expenses increased by more than 10% to over 400 million euros due to continued investment to strengthen the internal pipeline, mainly in neuroscience for co-robotase and early stage oncology assets. As a result, the co-operating margin improved by 2.5 points to a record level of 38.6% of total sales. Please turn to slide 13. Cash flow generation was also very strong in the first half. Free cash flow increased by almost 35% to 652 million euros, driven by higher EBITDA, up 27%, and a disciplined management of capital expenditures and working capital. Net cash reached €1 billion, an improvement of €445 million versus December 2025, after limited investment, only €40 million related to regulatory commercial milestones and the proceeds from the sale of equity investment shares, and after payment of dividends for €132 million. Based on that level of net cash at the end of June, and as I said, on the pro forma basis, after the announced acquisition of Cartos and Memo, we will have more than 2 billion euros of remaining firepower for external innovation. Let's now turn to the guidance for 2026, and please turn to slide 14. Based on that solid momentum and the strong first half performance, we are upgrading today our full year 2026 guidance. First, on sales, we now expect growth of more than 20% at constant exchange rate as compared to 13% in our initial sales guidance. This is assuming a stronger growth for Somatulin with an entry of L'Oriented Generics later in the second half. We also expect higher growth across the rest of the portfolio, notably driven by Bilvet, iCurveau and D-SPORT but also an higher contribution from our new product Ojemda. We are also upgrading our core operating margin guidance by two points from the prior level of greater than 35 to more than 37% of total sales despite the expected dilutive impact from the planned acquisition of Cartos Therapeutic. This improvement is driven mainly by the higher level of sales Those factors also, on top of additional R&D expenses, pre-launch preparation expenses for D-SPORT in migraine. With all of that, I will now hand over to Christelle for the R&D update. Please turn to slide 15.