Earnings call transcript: Almirall Q3 2025 results show strong growth, stock surges

Almirall reported its Q3 2025 earnings on November 10, revealing steady financial performance with an earnings per share (EPS) of $0.13, in line with forecasts. The revenue slightly missed expectations, coming in at $260 million against a forecast of $260.8 million. Despite this, Almirall's stock jumped 7.22% in pre-market trading, reflecting investor optimism about the company's growth trajectory and strategic initiatives. According to InvestingPro data, Almirall's revenue has grown 7.5% over the last twelve months, with analysts expecting the company to be profitable this year despite current negative earnings.

Key Takeaways

• Almirall's net sales grew nearly 13% year-on-year, driven by strong product performance.
• The company achieved a 27% increase in EBITDA, reaching €180.7 million.
• Stock price rose by 7.22% following the earnings announcement.
• Strategic focus on expanding the dermatology market and pipeline development.

Company Performance

Almirall demonstrated robust performance in Q3 2025, with net sales increasing by nearly 13% compared to the previous year. The company's European dermatology business expanded significantly, growing by 24.5%, which underscores its strong market position. Almirall's strategic focus on dermatology, particularly in atopic dermatitis, positions it well against competitors in a rapidly growing market.

Financial Highlights

• Revenue: $260 million, slightly below the forecast of $260.8 million.
• EPS: $0.13, matching analyst expectations.
• EBITDA: €180.7 million, a 27% year-on-year increase.
• Gross margin: 64.9%, with R&D spending rising to 12.5% of net sales.

Earnings vs. Forecast

Almirall's Q3 2025 EPS of $0.13 was in line with forecasts, while revenue fell short by 0.31%. The lack of surprise in EPS indicates stable performance, consistent with previous quarters. The revenue shortfall was minor and did not significantly impact investor sentiment.

Market Reaction

Following the earnings report, Almirall's stock surged by 7.22%, closing at $11.50. This movement places the stock closer to its 52-week high of $12.85, indicating strong investor confidence. The stock's performance outpaced broader market trends, reflecting positive sentiment towards the company's strategic direction and financial health.

Outlook & Guidance

Almirall maintains a positive outlook, targeting double-digit net sales growth through 2030 and an EBITDA margin of 25% by 2028. The company plans continued investment in its product pipeline and anticipates double-digit growth in 2026, driven by new product launches and market expansion.

Executive Commentary

Carlos Gallardo, CEO of Almirall, expressed confidence in the company's market position: "We are poised to lead in a rapidly expanding medical dermatology market." He also highlighted the growth potential in advanced biologics, noting, "Only 10% of eligible patients that could be treated with advanced biologics are treated today."

Risks and Challenges

• Market saturation in dermatology could limit growth.
• Regulatory hurdles for new product approvals.
• Economic pressures affecting healthcare spending.
• Competition from larger pharmaceutical companies.
• Potential supply chain disruptions impacting production.

Q&A

During the earnings call, analysts focused on the progress of Almirall's pediatric studies for Ebgly and potential market expansion. The company addressed questions regarding mergers and acquisitions, emphasizing its openness to strategic opportunities to enhance its portfolio.

Full transcript - Almirall (ALM) Q3 2025:

Speaker 3: Today, and thank you for standing by. Welcome to the Almirall 9 Months 2025 Financial Results and Business Update Conference Call and Webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question-and-answer session. To ask a question during the session, you need to press 1 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw a question, please press 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Pablo Divasson, Head of IR. Please go ahead, sir.

Pablo Divasson, Head of IR, Almirall: Thank you very much, Nadia, and good morning, everyone. Thank you for joining us for today's quarterly earnings update and review of Almirall 9 Months Financial Results of 2025. As always, we are sharing the slides we are using today in the investor section of our website at almirall.com. Please move to slide number two. Let me remind you that the information presented in this call contains forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that may cause actual results to materially differ from what we are sharing today. Please move to slide number three. Presenting today, we have Carlos Gallardo, Chairman and Chief Executive Officer; Jon Garay, Chief Financial Officer; and Karl Ziegelbauer, Chief Scientific Officer.

Carlos will start with the business highlights covering the first nine months of 2025, followed by an update specifically on biologics as the key growth drivers of our medical dermatology portfolio. Karl will provide you with an R&D status update regarding our budget, and Jon will then talk you through the financials before Carlos concludes the presentation, and we open for questions. I will now hand over to Carlos Gallardo, our Chairman and CEO. Please move to slide number five.

Carlos Gallardo, Chairman and CEO, Almirall: Thank you, Pablo, and good morning to everyone on the call. Almirall delivered strong year-to-year today results in 2025, and we are confident to reiterate our guidance, meet-time outlook, and fixed expectations. Our consistent growth is powered by the success of our medical dermatology portfolio, where we continue to deliver innovative treatments and broaden access for patients to support our physician community. Ebgly delivered strong momentum in the third quarter of 2025 as European markets start to scale, with launches now completed in the key countries. Encouraging uptake in newly launched geographies reinforces our confidence in the product's positioning and growth potential. Illumetri continues to deliver steady year-on-year growth, keeping us on track to achieve peak sales of over EUR 300 million, with Wynzora now capturing leading market share in key countries, together with Seysara's strong performance across Europe as two other important contributors to our European revenue base.

This underscores the breadth of our dermatology portfolio and Almirall's position as a comprehensive provider, one-stop shop for diverse dermatological needs. We've built our strong presence in the medical dermatology field throughout the year. In addition to participating in major events such as the 2025 annual AAD meeting, we reinforced our presence at the 2025 European Academy of Dermatology and Venereology Congress in Paris. Our contributions include 44 scientific abstracts, two expert-led symposia, and the presentation of two-year positive study data on Illumetri as a late-breaking abstract. On the clinical side, we are excited to share that the anti-IL-1 RAP antibody has entered phase two for intravenous supportive. We also plan to start phase two studies in the upcoming months for the other proof-of-concept assets. Karl will soon provide a full update on the recent developments in our pipeline.

Please move on to slide seven for an update on our biologics portfolio. In the first nine months of 2025, Illumetri generated EUR 171 million in net sales, marking a steady 12% growth year-on-year. We remain on track to achieve over EUR 300 million in peak net sales, even as the product and the class start to reach a more mature stage in its growth curve. Illumetri continues to be well-positioned in the psoriasis market, keeping its market share and consolidating its position as a leading product within the leading anti-IL-23 class. The successful launch of the 200 mg formulation provides greater dosing flexibility for patients, enhancing its competitive positioning and supporting long-term growth. In addition, two-year positive study data presented at the 2025 EADV highlights the product's long-term value and real-world impact on patient well-being. Please move on to the next slide on Ebgly highlights.

We view Ebgly as one of the most successful atopic dermatitis launches in recent years since we gained approval in Germany in December 2023. It has quickly become our second-best-selling product. Meanwhile, the advanced therapy segment within the atopic dermatitis market in year five continues to expand rapidly, growing at an annual rate of around 30%. Sales for the first nine months of the year nearly quadrupled year-on-year to EUR 75.5 million, while Q3 sales reached EUR 31 million. Our focused execution has delivered solid quarterly growth momentum as European markets are scaling at a healthy pace following launches in most countries, with Portugal and Ireland undergoing negotiations. Encouraging early traction and market share uptake are evident across different geographies, building confidence in Ebgly's growth trajectory and positioning it as a key driver for future expansion.

It is important to note that good reimbursement reflects the high unmet needs in atopic dermatitis and the value healthcare systems place on innovation. We are continuing to expand and increase brand awareness across multiple markets within the first year, with which we are very pleased. In terms of clinical advancements, our collaboration with Lilly remains highly productive, fostering valuable knowledge exchange that drives ongoing market development. At EADV 2025, we presented numerous study results on lebrikizumab, reinforcing our commitment to advancing care in atopic dermatology. This included new real-world evidence from the AD LIFE study, long-term extension data up to three years, patient-reported outcomes, and safety analysis. Collectively, these results highlight rapid symptom relief for sustained efficacy, further strengthening lebrikizumab's differentiated profile. Let me turn it over to Karl for an update on our pipeline.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Thank you, Carlos, and good morning to everyone on the call. This slide shows you the status of our pipeline. Let me focus on the progress we made in the last month. We expect approval of psoricycline in China till this year. Together with our partners, Sun Pharma and Eli Lilly, we continue to work on the pending labels for our key products, Illumetri and Ebgly respectively. Our partner, Sun Pharma, announced in July the top-line results of two phase three studies to assess the efficacy and safety of tildrakizumab in patients suffering from psoriatic arthritis. Both trials met their primary endpoint at week 24 and are still ongoing for additional 28 weeks until completing the open label extension. We keep you updated on next steps.

Our partner, Eli Lilly, has recently published data from an additional 32-week extension of the phase three Adjoin trial at the 2025 Fall Clinical Dermatology Conference that indicates that lebrikizumab sustained similar levels of skin clearance when administered as a single injection of 250 mg once every eight weeks compared to once every four weeks. This supports a potential less frequent maintenance dosing in patients with moderate to severe atopic dermatitis. These data build on lebrikizumab's proven efficacy and demonstrate the potential for disease control with even less frequent dosing. Lilly has submitted these data from the Adjoin extension trial among other data to the FDA for a potential label update. As the regulatory and market access environment is different in Europe, we will stick to our label with the recommended 250 mg lebrikizumab four-weekly posology.

At the same time, we are investigating lebrikizumab maintenance dosing of 500 mg administered once every 12 weeks as part of our ad hoc two clinical trials. Together with our partner, Eli Lilly, we are running joint clinical development programs to make lebrikizumab available to additional patient populations. The different programs are well on track, and a detailed overview can be found in the appendix. We have created an exciting early clinical pipeline addressing novel mechanisms and best-in-class compounds in high medical need skin disease. In the coming 9-12 months, we plan to have initiated four proof-of-concept phase two clinical studies across a spectrum of different dermatological diseases. Let me highlight some of the progress. For our anti-IL-1RAP monoclonal antibody called LAD191, we have completed phase one single and multiple ascending doses in healthy volunteers.

We have also explored pharmacokinetics, pharmacodynamics, and safety in patients suffering from hidradenitis suppurativa and presented those data at the EADV meeting in September this year. LAD191 was well tolerated and demonstrated a favorable safety and PK profile in patients with hidradenitis suppurativa. LAD191 showed a transcendent decrease in neutrophil count. Furthermore, it led to downstream cytokine reduction and early signs of clinical improvement in HS lesion count. A phase 2 study to explore the efficacy of multiple dosing regimens of LAD191 compared to placebo in participants with moderate to severe hidradenitis suppurativa has been started. Together with our partner, Simcere, we are developing a so-called IL-2 mutein execution protein to stimulate regulatory T cells as a novel approach to treat autoimmune skin disease. We have recently completed phase 1 and plan to start a phase 2 study in alopecia areata within the next month.

Our partner, Simcere, has initiated a phase 2 study to evaluate the efficacy and safety of this IL-2 mutein fusion protein in subjects with moderate to severe atopic dermatitis. In summary, we're making good progress with both our early and late-stage pipeline program. With that, I will hand over to Jon for the financial record.

Carlos Gallardo, Chairman and CEO, Almirall: Thank you, Karl, for the update on our R&D pipeline, and good morning, everyone. As Carlos highlighted earlier, the company's consistent execution continues to achieve solid manageable results. In the first nine months of 2025, Almirall delivered strong performance with net sales growing nearly 13% year-on-year on track with the company's full year guidance. The European dermatology portfolio remains the key growth driver in net sales, reinforcing Almirall's path towards leadership in medical dermatology. Gross margin moderated to 64.9% of sales in the first nine months, reflecting ongoing pressure related to Illumetri royalties. EBITDA for the period reached EUR 180.7 million, marking a 27% increase versus the same period last year, driven primarily by robust top-line growth and a lower SG&A over net sales ratio. SG&A increased 6.2% to EUR 366.7 million, with the mentioned lower growth in the third quarter.

However, as with previous years, we do expect a certain pickup in expenditure in the final quarter. R&D spending increased by about 14% year-on-year, representing 12.5% of net sales. The ratio of spending relative to net sales moderated this quarter, following higher investment in Q2, keeping us on track with our annual target. We closed September with a net debt-to-EBITDA ratio of 0.1 after solid cash generation in the quarter. Our low leverage provides significant flexibility to pursue licensing opportunities and targeted both on acquisitions and on an opportunistic basis. These results reinforce our confidence in delivering full year 2025 guidance and the midterm outlook shared earlier this year. For the full year, we expect to land near the midpoint of our guidance range for both net sales and EBITDA. Please keep in mind the tough comparison against Q4 2024 revenue when the company reported sales growth of 17%.

In addition, as mentioned earlier, we expect a pickup in SG&A in the next quarter, which simply reflects the natural phasing of quarterly costs and sales trends. As a reminder, our 2025 guidance calls for net sales growth of 10%-13% and EBITDA in the range of EUR 220 million-EUR 240 million. Let's move to the details of our sales breakdown on the next slide. The European dermatology business delivered a top performance with net sales growing 24.5% year-on-year in the first nine months. Additional details will be shared on the next slide. In general medicine and OTC, European sales were mainly impacted by the recent divestment of Algidol and the out-licensing of Cetirizine. Excluding these portfolio changes, the segment remained broadly stable. A delayed allergy season in Evastel, continued erosion of epithelial subsets, and lower sales of minor products were largely offset by a solid contribution from amongst.

On out-licensing, we expect full year income to remain broadly consistent with 2024 and prior years, as these transactions are part of our ongoing strategy to maximize portfolio value, including the deals mentioned earlier. Performance in the U.S. declined, and further details will be shared on the next slide. In the rest of the world, general medicine remained broadly stable, while dermatology saw a slight decline. Let's take a closer look at the dermatology business on the next slide. Our European dermatology business continued to prosper. Illumetri exhibited its characteristic summer seasonality with flat quarter-on-quarter sales and healthy year-on-year growth. Ebgly consolidated its position as the primary growth engine for the company. Meanwhile, we are actively building market share for Klisyri and Wynzora as their launches gain traction across key European regions.

Ebgly delivered EUR 75.5 million sales in the first nine months as European markets scale up after launching in all key countries. This performance is in line with expectations and reinforces our confidence in the product's robust growth potential. Both Ilumetri and Seysara maintained sales broadly in line with prior years, with a slight growth compared to the last year. In the U.S., performance declined year-on-year. While Klisyri's large field launch continued to generate growth, these gains were offset by persistent pressure on the legacy portfolio. Products such as Cordran Tape, Tazorac, and Aczone remain impacted by ongoing competition. Additionally, Seysara sales fell versus last year primarily due to a contraction in the overall oral antibiotic market for acne. In the rest of the world, dermatology sales dipped year-on-year, reflecting lower license income compared to 2024. Now, let's review financial statements on the next slide.

In terms of P&L and once revenue has been covered, gross margin moderated to 64.9% in the first nine months of 2025 as we continue to face ongoing margin pressure primarily driven by higher royalty tiers linked to Illumetri's growth. At 12.5% of net sales, R&D spending remained broadly in line with the same period last year, with the third quarter reflecting a moderation in investment levels compared to the elevated activity seen prior quarters. SG&A expenses increased 6% versus the same period last year as we continue to support Ebgly launches in new markets and other key products. As highlighted earlier, we expect SG&A to pick up in the final quarter of the year due to the typical seasonal timing of our marketing activities. Financial expenses improved year-on-year, primarily reflecting an EUR 8 million positive impact from the valuation of the equity swap driven by share value increase year-to-date.

Finally, a reminder that our effective tax rate remains impacted by the inability to offset U.S. tax losses against European profits, consistent with the full year guidance provided earlier this year. Please move to the next slide to take a look at the balance sheet. Our balance sheet remained very stable in the first nine months of 2025 compared to the same period prior year as shown in the slide. Goodwill and intangible assets decline was driven by depreciation, which outweighed the impact of Ebgly R&D capitalization and progress in our pipeline. In the third quarter, capital expenditures remained minimal, primarily related to the recently extended collaboration agreement with Simcere. Our net debt ratio remains low at 0.1, providing continued flexibility to pursue inorganic growth opportunities. The decrease in net debt primarily reflects solid cash flow generation during the third quarter.

Let's take a look at the cash flow statement next. The company improved cash generation during the first nine months of 2025 by EUR 44 million versus the same period prior year. Cash flow from operating activities was EUR 146 million during the period, representing an improvement by EUR 40 million versus last year, mainly driven by material improvement of profit before taxes, slightly offset by working capital increase as our business grows. Cash flow from investing activities reached minus EUR 104 million, improving EUR 20 million versus prior year, driven by lower investments, mainly EUR 43 million Illumetri's sales milestone moved in 2024, partially compensated by milestones related to Wynzora and pipeline progress.

Finally, cash flow from financing activities was EUR 43 million, an increase in cash outflows by EUR 17 million compared to last year, driven by higher cash dividend selected by shareholders and partially offset by the positive equity swap impact mentioned earlier. With this, I would like to pass the word to Carlos for his closing remarks. Thanks a lot, everyone, for your attention.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Thank you, Jon. As Jon confirmed, we remain on track to deliver our 2025 guidance and midterm outlook, as we have a clear ambition to achieve our double-digit net sales CAGR through 2030 and reach an EBITDA margin of approximately 25% by 2028. We are poised to lead in a rapidly expanding medical dermatology market, leveraging a proven platform for sustainable growth. Over the past decade, we have built a foundation that combines scientific depth, operational excellence, and a pipeline with disruptive potential, including several first and best-in-class assets. Together with our long-standing relationship with dermatologists and patient communities across Europe, which drives our relevance as a leader in medical dermatology, these strengths represent a clear competitive advantage, positioning us to capture meaningful opportunities for both growth and margin expansion. To translate these strengths into sustained value creation, we apply a focused and prudent capital allocation strategy.

We are investing in current and upcoming launches to drive midterm growth, actively strengthening our pipeline through internal R&D and in-licensing, maintaining a stable dividend policy, and remaining open to targeted business development and licensing opportunities, all supported by a solid liquidity position. Our strategy of turning disciplined execution into solid financial results is encouraging. As we close the third quarter for 2025, momentum remains strong. Illumetri and Ebgly continue to drive double-digit total sales growth, reinforcing the strength of our dermatology franchise. Looking ahead, we expect further pipeline milestones in the coming months, adding depth to an already differentiated portfolio. We are committed to shaping leadership in medical dermatology in Europe, turning innovation into growth and delivering lasting value for patients and shareholders. With this, we conclude the presentation, and I hand it back to Pablo for the Q&A session.

Jon Garay, Chief Financial Officer, Almirall: Thank you very much, Carlos. Nadia, back to you for the Q&A, please.

Speaker 3: Thank you so much. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star one and one again. Please then bow or compile a Q&A or study. This will take a few moments. Now we are going to take our first question. It comes from the line of Lucy Cordington from Jefferies. Your line is open. Please ask your question.

Hi, thank you for taking my questions. Just a few, please. Starting off with Ebgly, please could you remind us, is the pediatric opportunity included in your current peak sales guide? What's the overlap there with your current sales force? Would that require additional SG&A investment? With Ebgly, with the peak sales guide, have you ever disclosed kind of what that implied penetration would be of the European atopic dermatitis market when you reach that peak? Secondly, on your midterm guide, how important is a Klisyri inflection in terms of reaching that midterm? Is it primarily driven by your two biologic therapies? Finally, I may be looking incorrectly, but I couldn't find the IL-2 mutein trial. When might we expect the data from that to read out? Thank you.

Jon Garay, Chief Financial Officer, Almirall: Thank you very much, Lucy. I'm not sure I got your last question about the anti-IL-1 wrap. It's a question about what?

Speaker 3: It was just when will we expect the data from that?

Jon Garay, Chief Financial Officer, Almirall: Maybe we can start with this last question.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Yes. Thanks a lot, Lucy, for the question. As I mentioned, for our anti-IL-2 mutein monoclonal antibody, we have just started phase 2 in hidradenitis suppurativa. And we start getting data towards the end of 2026, 2027.

Jon Garay, Chief Financial Officer, Almirall: Thank you, Karl. About your other questions, Lucy. Pediatric indication, yes, it's ongoing. It's an important part of our clinical studies to generate further data. Yes, the potential of this population is already included in the peak sales estimate. We don't expect further investment. We don't need further investment. We already have the necessary infrastructure to capture the pediatric opportunity. In terms of the peak sales, we have not disclosed the penetration, but we believe we have the best product in our hands. We believe that at peak sales, Ebgly will be playing a very significant role in treating nice patients for moderate to severe atopic dermatitis. Lastly, your question about the midterm, the key is to realize the value on two of our biologics, Ebgly and Illumetri, and that's what will drive our ambition to grow double-digit growth and the margin expansion.

Klisyri and Wynzora will play a lesser role on that regard.

Speaker 3: Got it. Thank you very much. Thank you. Now we are going to take our next question. The question comes to the line of Guillaume Sampaillan from CaixaBank. Your line is open. Please ask your question.

Hello. Thank you for taking my question. Two if I may. The first one on Algidol. Of course, the data was quite enticing. Appreciate the snowball that you provide on what you're doing. If you could provide a bit of timeline for the options that you're following to obtain a label update. The second question is a bit towards 2026. If you could provide us some initial indications on how you're seeing the year in terms of top line and EBIT expansion. Thank you.

Jon Garay, Chief Financial Officer, Almirall: Thank you, Guillermo. The timeline is for which product? It's for Klisyri.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: It's adjoint.

Jon Garay, Chief Financial Officer, Almirall: They're adjoint. Okay. Karl, can you take this question, please? You mean already adjoint study?

No, no. I mean, the efforts that you are undertaking to leverage on data that could be similar to adjoint to obtain potential more favorable.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Yeah. You know, AD is a chronic disease that requires chronic treatment. That's why generating data that shows the long-term efficacy and safety are very important. We are running a study that is called ADLONG, where we will generate data on efficacy and safety of Ebgly for up to five years. We have recently published four-year interim data that have shown that patients who have been well controlled after week 16 maintain a very good skin clearance and efficacy for up to four years. We will have then five-year data next year, 2026.

Jon Garay, Chief Financial Officer, Almirall: Guillermo, about your question about the 2026 outlook, we have to be a bit more patient as we typically share these expectations in February. I think that Jon has provided already a highlight, right?

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Yes.

Jon Garay, Chief Financial Officer, Almirall: A comment?

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Yes. As Carlos has mentioned, Guillermo, it is too early to provide detailed performance figures for 2026. I know that my predecessor, Mike, used to share some high-level indications with you all ahead of the fiscal year results. If some context can help, we can offer that we expect 2026 growth and EBITDA to be in line with the most recent midterm guidance. We expect net sales to remain in the double-digit territory. Please bear in mind that our midterm guidance does not include a typical M&A, except beyond the usual portfolio optimization we usually do every year.

We will see certain impressions in the gross margin as we have several in-license products that are subject to royalties, which means that actual margin expansion will happen at the EBITDA level, as sales are expected to grow more rapidly than SG&A expenses once the commercial infrastructure for Ebgly has already been fully deployed in Europe. R&D expenditure over net sales ratio aligned with the one shown in 2025 seems to be a fair proxy in the near to midterm. Hopefully, this helps until we disclose further details every next year.

Speaker 3: Thank you. Now we are going to take our next question. The question comes to the line of Natalia Webster from RBC. Your line is open. Please ask your question.

Hi there. Thanks for taking my question. Firstly, just to follow up on Ebgly. This continues to grow well quarter on quarter, but I was just curious to hear a bit more about how you're seeing the competitive dynamic evolving in Q3 and if the continued Nemluvia launch has impacted Ebgly's market share in key European markets. My second question is on efinaconazole following approval in Germany in August. Are you able to provide some more details on your launch preparations and thoughts around growth potential for this product over the medium term? Thank you.

Jon Garay, Chief Financial Officer, Almirall: Okay. Natalia, thank you for your question. As I mentioned before, Ebgly dynamics remain very favorable and in line with our expectations. We continue to receive very positive feedback from dermatologists, both in the more experienced ones in countries where we have launched already a number of months ago, but also in the newly launched countries such as France. The feedback from the dermatologists remains very consistent. Very good news. The majority of the prescriptions continue to come from naive patients, and that's very aligned with our strategy. Also confirmation of our expectations and good news there. In terms of NEMLUVIA impact, it's too early to say as NEMLUVIA has only launched in Germany, in Europe so far.

We've mentioned in other calls, we believe that new entrants will expand the market, and we remain confident that that's based on the feedback of the dermatology community that the anti-IL-13 remains the key class to treat these patients. We also believe that IL-31 is more indicated for prurigo nodularis. In any case, we believe that new launches will have to make even more noise and expand the market as only 10% of eligible patients that could be treated with advanced biologics or advanced treatments are only treated today with this treatment. There's a tremendous opportunity to continue to help patients in this class that will lead to market expansion. On efinaconazole, we are getting ready for launches in selective countries, and we will have to do more probably in 2026. We will play a modest role in the contribution to sales and PNL.

Speaker 3: Great. Thank you. Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one, one on your telephone keypad and wait for a name to be announced. Dear participants, please kindly stay connected while your questions are answered. Thank you so much. Now we are going to take our next question. The question comes from the line of Joaquin Garcia Queiros from GB Capital. Your line is open. Please ask your question.

Yes. Hello. Thank you for taking my questions. The first one, there was a EUR 20 million, a bit more than EUR 20 million positive impact in free cash flow from other adjustments, just if we could have more color on what exactly was the cause of that. On M&A, would you consider now that I know Ebgly is still on ramp up, but there have been a few years now since launch, a more relevant M&A acquisition, or are you still targeting smaller deals? Lastly, could you have a bit of insight onto hidradenitis suppurativa and the alopecia areata market? Do you have some information on how big could this be for you? Thank you very much.

Jon Garay, Chief Financial Officer, Almirall: Thank you, Joaquin, for the question. I will leave the first one to Jon, but let me answer the second and third questions on my side. In terms of M&A, we remain extremely focused on delivering value for the company in organic growth to make sure we maximize the penetration of Ebgly and Illumetri, and of course, to moving our three assets into POC, right? That is where we dedicate a lot of our efforts. However, licensing and M&A continue to be an important part of our strategy. So far, we are looking at both opportunities from an acquisition perspective and from licensing from early and late-stage opportunities in all geographies. HS and alopecia areata, these are two areas where there is tremendous up and need from a patient perspective, and that is based on strong feedback from the dermatology community.

They're very exciting to have two assets that have potential to be the first or best in class. We believe that if we get positive results and our target profile is confirmed, we will have therapies in our hands that will have a significant impact on the company, on the patient, but also from a sales perspective in the company. We cannot now, we're not prepared to provide more specifics here, but it could be a major impact into the company if the target profile is confirmed in the clinical trials. Jon, yeah. Sorry for the first question, Joaquin.

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Good morning, Joaquin. Thanks for your question. Yes. The improvement you have seen in our cash flow statement relates to an advance payment received during the quarter regarding a license deal for one minor product in our portfolio. To commercialize this in the countries included in Eastern Europe and Western Asia, mostly in the Commonwealth of Independent States, there is no impact in the P&L, as it will be recognized in the future years. Hope it helps.

Thank you.

Speaker 3: Thank you. Now we're going to take our next question. The question comes to the line of James Cobayo Mice from Banco Santander. Your line is open. Please ask your question.

Hi. Good morning. A few questions from my side. Could you remind us the pediatric indication for Ebgly? When do you think it can be launched, or when could we have some impact in sales, basically? Second, on Seysara in China, what could we expect here, any news, and what's the potential in revenues? A little bit of housekeeping for the modeling. Can you remind us tax rate for this year, more or less, where could we stand? Also, the milestones for 2026, if you can remind us. Final question. Yeah. My final question is a spicy one. I do not know if you will answer, but basically, when you see Bloomberg Consensus at around EUR 280 million EBITDA for 2026, how do you feel about this figure? Is it something fair? Is it something ambitious, or do you feel comfortable with that? Thank you very much.

Jon Garay, Chief Financial Officer, Almirall: Yes. Hi, this is Karl speaking. Thanks for your question. The pediatric studies called Adorable One and Adorable Two are run by our partner, Eli Lilly. For the first one, that covers participants six months to younger than 18 years. Lilly expects primary completion in December this year and full completion in December 2026. Adorable Two is the long-term safety and efficacy, and the primary completion is expected in December 2027. After that, of course, there is the compilation of the data, the submission, and the extension of the label before we can finally launch. Do you want to comment on Cesara China as well? Yes. On Cesara China, as I have mentioned in the presentation, we expect the approval of Cesara in China still within this year. Thank you, Karl. Jon, you want to take the other two questions?

Karl Ziegelbauer, Chief Scientific Officer, Almirall: Yes.

Jon Garay, Chief Financial Officer, Almirall: Thank you very much, Carlos. I think the first question related to the tax rate for this year. Right now, the tax rate is around 40%, which is a significant improvement versus prior year one, and it is aligned with the full-year guidance we provided for this year. We are working as hard as we can to try to be more effective here, but right now, I'm not confident providing any guidance for next year. We will just try to work and see how much we can improve. The other two questions regarding 2026 in the sense of milestones and EBITDA. If we start with milestones, I think that, again, bearing in mind for us, it is too early to provide the best performance figures for 2026.

Bearing in mind, I think, to assume certain milestones level similar to 2021, initially, it could be a good estimate, and we will provide further details in February when this close in the guidance. Regarding the Bloomberg Consensus, right now, we are very positive about the performance of the company. I'm confident in achieving our stated guidance. That's why we have reiterated it this quarter. Coming back to next year, it is still too early, but so far, I cannot tell you if we agree or we do not agree. It's a statement based by third parties, and what we have shared just in this call is that we expect to remain in the mid-term range provided for the company. We will provide more information in February so please stay tuned. Thank you very much.

Thank you.

Speaker 3: Thank you. The speakers turned off for the questions for today. I would now like to hand the conference over to Speaker Pablo Divasson for any closing remarks.

Thank you very much, Nadia. Thank you. As there are no further questions, ladies and gentlemen, this concludes our today's conference call. Thank you for your participation. You may now disconnect.

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