Camurus AB

During the questions and answer session, participants on the telco are able to ask questions by dialing pound key five on the telephone keypad. Now I will hand the conference over to CEO Fredrik Thibald. Please go ahead.

Thank you so much and good day everyone and welcome to Canberra's second quarter 2026 result call. Thank you for joining us. Before we begin, please take note of our forward-looking statements which apply throughout today's presentation. Turning to the agenda, we will start with highlights, moving over to financial and commercial performance reviews, before finishing with a short R&D pipeline update, key takeaways, and then of course Q&A. With me on the call today are Anders Wadsholt, our Chief Financial Officer, and Richard Jameson, our Chief Commercial Officer. So let me start with some highlights. I'm very pleased to report a solid second quarter, marking a clear return to growth after a softer start of the year for cameras. Total revenues were 702 million SEK, up 4% year-on-year and 32% sequentially, with an operating result of 293 million SEK, corresponding to a 42% margin and finishing with 4.1 billion SEK in cash. Commercially, product sales reached a record of 528 million SEK. It's the first time we are above half a billion in a quarter. Buvidal grew 12% year-on-year and 24% over the quarter. Bixadi royalties in the U.S. increased 42%, and the OxyVisa launch continued in our first wave European markets. In the pipeline, we received a complete response letter for the acromegaly NDA in the U.S. in June, which I will cover and come back to later in the presentation. Elsewhere, Sorrento continued to progressing towards its primary analysis. We advanced CAM 2056 phase 2b preparations. Lilly expanded our collaboration by exercising its option to include amylin receptor agonists. And with that, Anders will now take over and go through the financials.

Thank you, Frederik. The financial figures clearly demonstrate strengths, which is encouraging. Looking beyond the headline numbers presented by Frederik, if we strip up the one-off milestones, our underlying product and royalty revenue has grown from around 445 million in Q2 2024 to 559 million last year and now reaching 655 million this quarter. This reflects a compound annual growth rate of around 21%, with bubidyls showing stable growth and Briggs hydrology is almost tripling as Braeburn scales in the U.S. Over the two-year period, marketing distribution expenses rose from 108 to 175 million, reflecting our expanding commercial operations and sales growth. At the same time, R&D costs declined from 172 million to 125 million following the completion of multiple trials, signaling a favorable change in our cost structure as we shift towards a commercial execution. Administrative costs have increased to support the higher level of activity. Regarding profitability, the operational results reached 293 million this quarter, up from 292 million last year. Although year-on-year figures appear similar, they conceal an improvement. Last year's figure included a significant milestone of 150 million, whereas this year's milestone was 46 million. The core margin is clearly improving. Earnings per share were 4.05 Swedish kronor. Our cash position at the end of the quarter was 4.1 billion up from around 3.9 billion at the start, reflecting a rise of approximately 190 million. The primary factor for the net cash flow came from the operating activities, which comes to be $338 million before working capital adjustments. This was primarily partially offset by $104 million outflow in working capital, mainly due to the higher trade receivables and increased inventory to support the growing demand for OXISA, along with $41 million invested primarily to set up a second manufacturer. Importantly, we remain debt-free, which gives us real flexibility as we look ahead. Regarding capital allocation for the rest of 2026, our main priorities are clear. To finance the organic growth of the business, including commercial expansion and pipeline development while maintaining a strong and flexible balance sheet to support partnerships and business opportunities as they emerge. On the cost side, we initially allocated additional 200 million to expand our commercial activities, particularly for the U.S. team to support the upcoming of Glaze launch and to prepare for CAM 2029 in JEPNET. Furthermore, we intend to invest additional 150 million R&D for the planned new clinical trials. These investments will be funded from our own cash flow. Despite the CRL, we have reaffirmed our four-year guidance. And with that, I'll hand over to Richard for the commercial update.