Recordati Industria Chimica e Farmaceutica S.p.A.

Good afternoon, this is the Coruscall conference operator. Welcome and thank you for joining the Recordati results for first nine months of 2024 conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Ms. Eugenia Leeds, Vice President of Investor Relations of Recordati. Please go ahead, Madam.

Thank you, and good afternoon, everyone. I'm pleased to be here today with Rob Cormans, our CEO, and Luigi Licorte, our CFO. Together, they will present results for the first nine months of 2024. As always, the presentation is available in the investor section of our website. It is now my pleasure to pass the call over to Rob. Please go ahead.

Thank you, Eugenia, and good afternoon, good morning. Thank you for joining us all today. I'm pleased to share once again our outstanding results for the first nine months of 2024. We are proud of our performance and our excellent track record of consistently delivering at or above our financial objectives over the last decade. For this nine months, starting with net revenue of 1,743,000,000, up 12% versus the previous year, or 9.3% like-for-like at a constant exchange rate. This performance reflects continued excellent growth across specialty primary care, which was up 6.5% like-for-like at a constant exchange rate, and rare diseases, which was up 14.5% like-for-like at a constant exchange rate. Topline growth and operating leverage translated into our usual sector-leading profitability with an EBITDA margin of 38.2%. The adjusted net income was 445.4 million, up 9.5% versus the previous year, successfully absorbing the increase in financial expenses and tax rate. With a very robust free cash flow of 434.3 million, we ended the first nine months with a leverage of just below 1.6 times EBITDA. Now, in September, and a bit earlier than anticipated, ISTERISA was approved in China for the treatment of adults with Cushing syndrome. We remain very optimistic about the overall market potential. Given the strong results year to date and a positive outlook for the remainder of the year, I'm pleased to confirm our full year 2024 financial targets, which were upgraded in July. These targets reflect a strong momentum across the business and our confidence to successfully execute on our plans. I would also like to clarify that these targets exclude any potential contribution from a JMO. Our agreement with Sanofi to acquire the global rights to NJMO reaffirms our continuous commitment to addressing serious unmet needs in rare diseases and is a perfect strategic fit with an attractive product and financial profile. On the following slide, I would like to highlight the key points of the transaction in a little bit more detail. NGEMO provides patients with cold agglutinin disease a novel treatment option as the only approved targeted product. It was launched in 2022 in the U.S., Europe, and Japan, and the last 12 months as of August 24 of sales are approximately 100 million. NGEMO is a great complement to our rare disease portfolio in an area of high unmet medical need and is synergistic with Silvent, with hematologists as the key target physicians. On the financial side, we expect the 2025 revenue of greater than €150 million and peak sales in the range of €250 to €300 million. We anticipate positive EBITDA contribution immediately after closing with margins becoming accretive to our current rare disease business from 2025 onwards. And lastly, I would like to highlight the de-risked deal structure. with an upfront payment and potential commercial milestones, which are subject to the achievement of net sales at or above the top end of our peak sales, year sales expectations. I'd like to remind you that the closing is expected by the end of this year in 2024, pending, of course, regulatory clearances. And as such, we expect minimal financial contribution this year, and they have not been in our 24 outlook so far. We are thrilled to welcome many wonderful new colleagues who played an essential role in making NGMO as successful as it is today, and who we are convinced will continue to play a crucial role in the success of NGMO going forward. It's now my pleasure to turn the call over to Luigi.