Earnings call transcript: Almirall’s Q1 2025 sees robust sales growth but misses revenue forecasts

Almirall reported a strong performance in the first quarter of 2025, with net sales increasing by 15% year-on-year. The company missed its revenue forecast, achieving $284.6 million against an expected $287.3 million. The stock price rose by 7.82% in pre-market trading, reflecting investor optimism due to significant growth in key segments and strategic launches. According to InvestingPro data, the company maintains a healthy current ratio of 4.74, indicating strong liquidity position and operational efficiency.

Key Takeaways

• Net sales increased by 15% year-on-year in Q1 2025.
• Almirall missed its revenue forecast by approximately $2.68 million.
• Stock price surged by 7.82% in pre-market trading.
• ILUMETRI and EGLIS showed strong sales growth.
• European dermatology business expanded by 23.4%.

Company Performance

Almirall demonstrated strong performance in Q1 2025, with significant growth in its European dermatology division, which expanded by 23.4% year-on-year. The company continues to capitalize on its robust product lineup and strategic market launches, particularly with EGLIS, which has been introduced in 13 European countries.

Financial Highlights

• Revenue: $284.6 million, up 15% year-on-year.
• Gross margin: 66.9%.
• EBITDA: $70.9 million, up 35% compared to Q1 2024.
• R&D investment: Increased by 34% year-on-year, representing 12.5% of net sales.

- Net debt to EBITDA ratio: 0.1x.

InvestingPro analysis reveals additional insights about Almirall’s financial health, with 10+ exclusive ProTips available to subscribers. These insights cover profitability trends, valuation metrics, and growth potential, helping investors make more informed decisions.

Earnings vs. Forecast

Almirall’s actual revenue of $284.6 million fell short of the forecasted $287.3 million, marking a miss of approximately 0.93%. This deviation, while minor, highlights the challenges in meeting market expectations despite robust sales growth.

Market Reaction

Despite missing revenue forecasts, Almirall’s stock price rose by 7.82% in pre-market trading, reaching $10.62. This increase suggests positive investor sentiment driven by the company’s strong sales performance and strategic market expansions. The stock is approaching its 52-week high of $10.7, with InvestingPro data showing a beta of 1.28, indicating moderate market sensitivity. The company’s Piotroski Score of 5 suggests reasonable financial strength, while its current valuation appears to be above the InvestingPro Fair Value estimate.

Outlook & Guidance

Almirall is targeting double-digit net sales CAGR by 2023 and aims for a 25% EBITDA margin by 2028. The company is also planning four new proof-of-concept Phase II clinical studies in the coming year, highlighting its commitment to innovation and growth.

Executive Commentary

CEO Carlos Gallardo expressed optimism, stating, "We are excited to lead Almirall into the next phase of our journey towards becoming leaders in medical dermatology." CSO Karl Sigaban highlighted the versatility of their products, noting, "Physicians value that they can use Epclase in all different kinds of patients."

Risks and Challenges

For a comprehensive understanding of Almirall’s risk profile and growth potential, access the detailed Pro Research Report available on InvestingPro, offering expert analysis and actionable insights across 1,400+ top stocks.

• Potential for revenue forecast misses could affect investor confidence.
• Competitive pressures in the dermatology market may impact market share.
• Macroeconomic factors, such as currency fluctuations, could affect financial performance.
• Regulatory challenges in new markets might delay product launches.
• Dependence on key products like ILUMETRI and EGLIS for growth.

Q&A

During the earnings call, analysts focused on the performance of EGLIS and its market reception compared to competitors like Dupixent. Management expressed confidence in meeting full-year sales expectations for EGLIS and discussed exploring new indications for IL-thirteen treatments.

Full transcript - Almirall (ALM) Q1 2025:

Sandra, Conference Operator: Good day, and thank you for standing by. Welcome to the Almirall Q1 twenty twenty five Financial Results and Business Update Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Pablo Divason, Head of Investor Relations. Please go ahead.

Pablo Divason, Head of Investor Relations, Almirall: Thank you very much, Sandra. Good morning, everyone. Thank you for joining us for today’s quarterly earnings update and review of Almirall’s first quarter financial results of 2025. As always, we are sharing the slides we are using today in the Investors 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 are Carlos Gallardo, Chairman and Chief Executive Officer Mike McGillan, Chief Financial Officer and Carl Sigaban, Chief Scientific Officer. Carlos will start with the business highlights covering the first quarter of twenty twenty five, followed by an update especially on biologics as they key growth drivers on our medical dermatology portfolio. Karl will provide you with an R and D status update regarding our pipeline.

And Mike will then talk you through the financials before Carlos concludes the presentation and we open for questions. I will hand over to Carlos Gallardo, our Chairman and CEO. Please move to Slide number five.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Pablo. We are delighted to share with you that we have started the year with continued strong business performance that is very much aligned with the long term trajectory of sustained growth we have outlined for Polar Mirae recently. Therefore, we are pleased to confirm our full year guidance for 2025, our midterm outlook and peak sales projections. This represents another quarter in the right direction in our ambition to transform the life of patients suffering from dermatology skin conditions. Eclipse delivered a strong sales during the first quarter of twenty twenty five, benefiting from the dynamic German market, but also from initial contributions from launches in additional countries.

ILUMETRI continues to show year on year growth, and we confirm our recently updated peak sales projections. Additionally, WIthora and QIACD continue to support our sales in Europe. We remain very active in the medical community and this first quarter has not been an exception. As an illustration, we’ve been at the twenty twenty five Annual American Academy of Dermatology Meeting where we showcased our success in AK treatment with Kayseri and shared exciting phase one data on our anti IL one drug. We were also present at the sixteenth Skin Academy in Barcelona.

That is our flagship medical educational event where we had over 800 delegates from different countries based on our fancy in this history. We participated from the eleventh World Congress of melanoma and the twenty first European Association of Dermato Oncology Congress in Athens, hosting over 1,200 health care professionals. This is very important for us, this interaction with medical professionals, and we constantly seek external opportunities and the early and mid stages of clinical development to further enhance our portfolio and impact the dermatology field. Please move to Slide seven for an update on our biologics portfolio. ILUMETRI and the anti IL-twenty three class have continued to secure a strong position in the psoriasis market.

ILUMETRI’s market share remains solid, underpinned by the recent introduction of the two hundred milligram presentation. This new treatment option has been very well received and is contributing to our robust performance. Net sales for ILUMETRI are up 13% year on year, reaching $55,000,000 in the first quarter of twenty twenty five. I would like to reiterate our recently upgraded PIXAL projection of over $300,000,000 and underscore our confidence on ILUMETRI’s continued growth and its potential to make a significant impact in the psoriasis treatment landscape. Please move to the next slide for every highlights.

ELGI’s have shown strong performance after being on the market for just over a year. Starting with our December 2020 launch in Germany, cumulative sales since then have reached over $54,000,000 We consider this the best launch in atopic dermatitis in recent years. Our strategic focus has allowed us for a strong initial uptake in Germany, positioning us well to launch in other European markets. Within a year of launch, we have reached the second highest dynamic new patient share in Germany. Also reimbursement pricing in Germany and in other countries is either in line with our expectations or even slightly better And brand awareness is strong, exceeding the average within one year of launching in various markets.

Sales in the first quarter increased by 52% quarter on quarter, reaching EUR 19,400,000.0, driven largely by Germany. But as I said before, also we are seeing the contribution of recently launched regions beyond Germany. Our good partnership with Lilly is leading to fruitful exchanges and key learnings. Let’s move to the next slide for more details on the launch time. Airplift has already been launched now in all key countries in Europe, which combined represent more than 90% of the total sales potential in the region.

We are progressing with launches in new European markets and have seen significant advancements since the German launch back in December 23. As of today, Evidence is available for commercial reimbursement in 13 countries in Europe, including France as of last month, April 2025. We are very excited about this new launch as France represents a very important market for us. It is important to reemphasize that we have been able to secure solid price levels in the launch markets. This is a prime example on how the desire for alternative treatments in atopic dermatitis is significant in the different national health care systems.

Next, please move to Slide 11, where I invite Karl to give us an update on our positive R and D and pipeline progress.

Karl Sigaban, Chief Scientific Officer, Almirall: Thank you, Carlos, and good morning, everyone on the call. This slide shows you the progress of our pipeline. Saraciclib’s regulatory review in China is ongoing. We expect approval in the second half of twenty twenty five. For Glacieris expansion to large field in Europe, we are finishing a clinical study aiming to launch in 2026.

Together with our partners, we continue to work on expanding the labels for our key products, ILUMETRI and EptiF. Our partner, Sun Pharma, is running two Phase III studies to assess efficacy and safety of tildarecizumab in patients suffering from psoriatic arthritis. First results are being expected in the second half of twenty twenty five. Together with our partner Eli Lilly, we are running a joint clinical development program to make eplift available to additional patient population. I will give more details on the next slide.

We have created an exciting early clinical pipeline, addressing novel mechanisms and best in class compounds in high medical need diseases. In the next year, we plan to initiate four proof of concept Phase II clinical studies across a spectrum of different dermatological diseases. Let me highlight a few assets. For our anti IL-one rep monoclonal antibody, we have completed Phase I single and ascending doses in healthy volunteers and presented the results at the recent AAD meeting. Overall, our anti IL-one rep monoclonal antibody demonstrated a favorable safety and tolerability profile in healthy volunteers, along with a low immunogenicity risk supporting its further development for the treatment of immune mediated inflammatory skin disorders.

We plan to start a Phase II study later this year in hetadenitis suppuratine. Let me also highlight that we are advancing KKN013 in Phase I as potential new treatment for severe dermatological indications such as dystrophic epidermolysis bullosa and junctional epidermolysis bullosa. ZKNO13 is an oral read through inducer designed to overcome nonsense mutation that cause a premature stop codon. In summary, we are progressing with both our early and late stage pipeline. Now let’s move to Slide 12.

This slide shows the comprehensive joint clinical development program for lebrikizumab with our partner Eli Lilly. This joint program will allow us to make lebrikizumab available to additional patient populations or in different settings. Let me highlight some of the studies. A launching Epclase this year in all European markets, we will complement our excellent clinical data package with real world evidence studies. One example is the so called AD TRUST study I highlighted in the last call.

To make lebrikizumab available to all patients with atopic dermatitis, our papilli Lilly is running a Phase III study exploring the safety and efficacy of lebrikizumab in patients six months to 18 years. Primary completion is expected in 2026. Furthermore, our partner Eli Lilly has started the AD Touch study, exploring efficacy and safety of lebrikizumab in adults and adolescents with moderate to severe atopic hand and foot dermatitis. Atopic hand and foot dermatitis is a frequent, chronic and difficult to treat condition. It can substantially impact the patient’s quality of life.

There is tremendous interest from academic investigators in further exploring lebrikizumab in different indications or settings. For example, Professor Johan Gutchensen from University of Michigan, a leading expert in applying genomics technology to advance the molecular understanding of inflammatory skin diseases, will be the lead investigator for the so called AD FIND study. AD FIND is a mechanistic study aimed at understanding at the cellular and molecular levels the changes in the skin of patients suffering from moderate to severe atopic dermatitis when treated with lebrikizumab. Finally, in addition to the two studies in perennial allergic rhinitis and chronic rhinosinusitis with nasal polyps, our partner Eli Lilly is running, we continue to explore new indications for which IL-thirteen is hypothesized to be a key pathogenic drug. With that, I will hand over to Mike for the financial review.

Mike McGillan, Chief Financial Officer, Almirall: Thank you, Karl, for the update on our R and D progress and pipeline activities. As Carlos mentioned earlier, we’re excited to start off the year on a positive note. We displayed solid performance in the first quarter of twenty twenty five with 15% net sales increase year on year. Please bear in mind that this includes the recently announced outlicensing of Aljudal and SecuSan in Spain. Excluding the impact of this transaction, net sales growth for Q1 would land around 10%, aligned with our 2025 guidance.

The full year net impact should be approximately $15,000,000 at the EBITDA level. We’re very pleased with the growth of our European dermatology portfolio, which continues to boost our overall net sales. This is a key pillar in our journey towards leadership in medical dermatology. Our gross margin came in at 66.9, aided by the effects of the outlicensing transaction in q one, but up slightly from 2024 excluding this impact. We achieved a total EBITDA of $70,900,000 in q one twenty twenty five, up 35% versus Q1 twenty twenty four.

This was driven by robust net sales growth and the previously mentioned out licensing. Excluding this out licensing, our EBITDA margin in the quarter would have landed in the low 20%. SG and A in Q1 twenty twenty five is up 9.6% to 122,800,000 driven by investments in recent and upcoming Evolus launches to support the brand’s growth trajectory as Q1 twenty twenty four did not have the full staffing yet in the recent launch countries. R and D investment is up 34% year on year, representing 12.5% of net sales, in line with our annual target to advance our pipeline and future growth strategy. The high growth rate versus prior year is due to phasing impacts as Q1 twenty twenty four was lighter before second half ramp up last year.

We ended the first quarter with a net debt to EBITDA ratio of 0.1 times, positioning us very well for potential licensing or bolt on M and A opportunities. Although this gives us confidence to reiterate our full year 2025 guidance, and we remain on track with the midterm outlook and peak sales updates announced earlier in the year. Let’s move on to the details of our sales breakdown in Slide 15. The European dermatology business displayed a very strong performance, growing 23.4% year on year, which I’ll cover in the next slide. Our general medicine OTC sales growth in Europe was driven mainly by the recent outlicensing activity with the rest of the business flat due to a late allergy season and the ongoing decline of epacetacevel, which was offset by strong Almex performance.

The full year outlicensing and royalty income for the company will be relatively similar to 2024 and prior years with roughly $15,000,000 in this total bucket in 2024 and 20,000,000 to $25,000,000 in this total bucket for 2025, including the Q1 activity. This is part of our normal portfolio value maximization strategy. Our U. S. Business declined slightly, and I’ll share more details with that on the next slide.

The performance of our general medicine unit in the rest of the world is down primarily due to lower Evistel and ImmunoRig sales. Let’s take a closer look at our dermatology business on the next slide. As mentioned by Carlos, our European dermatology segment continues to thrive with ILUMETRI and Eglos as the primary drivers. Other growth drivers such as CLICERI and WINZORA are making progress with their launches in key European markets. Eglot sales reached 19,400,000 in the first quarter, becoming our second rate dermatology product after just over one year on the market.

This result is in line with our expectations, enhances our confidence in its strong growth trajectory. The U. S. Business is generally stable with Seysara sales in line with the prior year. The positive impact of the recent large field launch for Tliceria in August is starting to take effect and the overall sales has grown since launch.

The U. S. Legacy business remains under pressure from ongoing generic pressure related to cordron tape, Passatrak, although Axon sales have picked up year on year. Dermatology and Zynjuvy and Ciclopoli income. Now let’s move on to the complete financial statements on slide 16.

Let’s review the revenue for the bill starting with some elements Carlos mentioned earlier. Gross margin for Q1 twenty twenty five increased to 66.9. As we mentioned earlier, this is largely due from the onetime impact of the outlicensing deal with a slight increase in the underlying business due to better product mix. We anticipate some gross margin pressure for the full year versus 2024 due to sales mix and higher royalty tiers as ILUMETRI sales increase, and we maintain our full year expectations as mentioned in our February call, which included the Sellevicing transaction. Our R and D investments have risen to 12.5% net sales, up from 10.7% in Q1 of twenty twenty four, and we expect this 12% -ish level to remain steady during the year to support our innovation strategy.

SG and A investments grew by almost 10% compared to Q1 twenty twenty four. We expect this trend to continue as we focus on launching Eplis in new markets and support existing ones, but the growth will decelerate somewhat in the second half once we reach periods with comparable structures. Financial expenses have benefited from a $3,900,000 improvement year on year in the primarily due to the positive equity swap valuation driven by recent share price gains. Bear in mind that our effective tax rate is influenced by the inability to offset U. S.

Tax losses against our profitable European business. We anticipate this will continue in 2025, and we should land in the mid-forty percent range of effective tax rate before declining in 2026 and beyond into the mid-20s as we mentioned in the full year call. Please move to the next slide and take a look at the balance sheet. The main highlight on the balance sheet is the impact of the investments in intangible assets during the quarter. In addition to R and D capitalization related to Evolus, key investments also include a milestone upon a successful Phase one of our anti IL-one wrap program, which we insolicensed from Ichnos in 2021.

The total impact has been outweighed by higher depreciation. Our net debt ratio remains solid at 0.1x, allowing for more flexibility in inorganic growth opportunities. Let’s take a look at the cash flow statement next. We generated an operating cash flow of $26,400,000 in Q1 twenty twenty five despite significant challenges in working capital compared to Q1 twenty twenty four due to the Evglis launch in new countries and higher receivables from the higher sales. And we were able to partially offset this with the increase in profit before tax, which was in our favor.

Other adjustments mainly relate to financial income, including the equity swap. Cash outflows associated with investments are much lower in q one twenty five than q one twenty four. This is largely due to substantial payments made last year, including a 45,000,000 milestone for Eblis and its first EU sales and 20,000,000 for ILUMETRI. We anticipate an additional 45,000,000 ILUMETRI sales milestone to be made in q one of twenty twenty five. The remaining Q1 investments for minor payments on existing agreements.

With that, I hand back to Carlos for the closing remarks.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Mike. Thank you, Carlos. Mike. We have raised our 2025 guidance and detailed aiming for double digit net sales CAGR by 2013 and reaching approximately 25% EBITDA margin by 2028. As we think of 2025, we are pleased to see accelerating growth as we can make it an increase by total sales growth into double digits.

In terms of r and d, we anticipate more exciting pipeline updates in the next twelve to twenty four months. Over the past decade, we have built a successful platform in medical dermatology. And now several factors set us apart in the field, positioning us well in growing markets with numerous unmet needs. First, we possess a strong scientific and innovation capability. Second, we have a robust pipeline with disruptive potential, featuring several first in class and best in class molecules.

Finally, our close relationship with dermatologists and patient groups across Europe give us a competitive edge. Our capital allocation focuses on four principles, investing in current and future product launches in dermatology to drive acceleration in mid term revenue growth strengthening our pipeline via proprietary research and in licensing assets maintaining a stable dividend for shareholders and exploring inorganic growth whilst maintaining a prudent financial policy and solid liquidity. We are very excited to lead Almirall into the next phase of our journey towards becoming leaders in medical dermatology and look forward to continued growth in the coming years. With this, we conclude the presentation. And I hand it back to Pablo for the Q and A.

Pablo Divason, Head of Investor Relations, Almirall: Thank you very much, Carlos. Sandra, back to you for the Q and A, please.

Sandra, Conference Operator: Thank you. We will now take the first question from the line of Shan Hama from Jefferies. Please go ahead.

Shan Hama, Analyst, Jefferies: Hi. Thank you so much. Just two for me, please. Could you give us an insight into perhaps any physician and patient feedback on positioning, especially versus Dupixent? And then in terms of streamlining the business further and increase and sort of increasing your R and D engine, should we expect more of these divestments, particularly of your mature derm business and perhaps your OTC business?

Thank you so much.

Pablo Divason, Head of Investor Relations, Almirall: Yes. Could you repeat the first question?

Karl Sigaban, Chief Scientific Officer, Almirall: Can repeat it.

Shan Hama, Analyst, Jefferies: Yes, of course. In terms of physician and patient feedback on Epglis and sort of positioning versus Dupixent. Thank you.

Karl Sigaban, Chief Scientific Officer, Almirall: Yes, I can start with the first question. So the feedback overall is extremely positive. Physicians value that they can use Epclase in all different kind of patients, also specifically in difficult to treat patients, and they see a very fast onset of of symptoms. I think with the entire clinical data, even as the most out first experience from the market, we believe that Eptiase has a profile that allows us to position cisunig as a as a first line treatment for atopic dermatitis.

Mike McGillan, Chief Financial Officer, Almirall: Yeah. And I can cover the question about divestments. As I mentioned in my remarks, we don’t expect significant investments or out licensing income. Last year, we had about $15,000,000 in total between small activities and and royalties. This year, we expect around 20 to 25,000,000.

This is just part of some minor nonderma value maximization we do in in. In terms of the derma products, we do do some outlicensing of of the products that we haven’t launched like FINJUVY and terabenapine, but we don’t expect to do any major transactions, in in terms of of reshaping the consumer. Nothing nothing significant is is on the plans in the near term.

Sandra, Conference Operator: Thank you. We will now take the next question from the line of Guillaume Sampaio from Caixabank. Please go ahead.

Guillaume Sampaio, Analyst, Caixabank: Hello. Thank you for taking my questions. So two again, if I may. On Epworth, if you could quantify a bit the share of Germany sales in Q1 and note any stocking effects in other countries that we should be aware of when extrapolating for the full year? I remember that at the time of Q4 results, consensus was about €95,000,000 of sales for EpoEast for this year.

Is it still a level that you’re comfortable with? And the second question, in terms of Eurometry, should we think that in terms of phasing of growth going forward, this low double digit percentage growth is about the level that we should expect? You.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Guillermo. Thank you for the question. So in terms of at least we see, you know, already other countries, as I mentioned, is starting to kick in in terms of sales. So we we seeing a a healthy growth now coming in in terms of mix of of German German sales and and other countries. We remain very comfortable with with the consensus for the full year.

And as we’re getting in, we keep getting exceptional feedback from from physicians and from the different countries have launched. On on given that we have a Paulo here, maybe. Paulo, can you do you wanna comment on on the second question?

Paulo Chunini, Chief Commercial Officer, Almirall: Yeah. Sure. Hi, everyone. This is Paulo Chunini, the chief commercial officer. So, the market in in psoriasis, of course, is a mature market, and, I have 23 classes that class basically leading the growth in, in this market.

Our positions, I think, is quite strong with a double digit market share. We are happy with the the positions we are taking and with the trend of the product. So we expect the market, of course, being more mature in the future, sending Lumetri, staying in the market and keeping the competitive positions we have. I would like also to mention that we have recently launched the 200, which is something extremely important because we are the only, IL twenty three with two dosages, to give an opportunity to both patients and dermatologists to be, flexible with their patients and manage at the right levels, eventually, flares in periods where, the variability of the disease, can change. So I think that, thanks to these two hundred milligrams, we can also strengthening our positions into the market.

Guillaume Sampaio, Analyst, Caixabank: Okay. Thank you.

Sandra, Conference Operator: Thank you. We will now take the next question from the line of Alvaro Lentz from Alantra Equities. Please go ahead.

Alvaro Lentz, Analyst, Alantra Equities: Hi, thanks for taking my questions. The first one is if you could provide some detail on the pricing in France since you launched. How does it compare to Germany and other European countries? Second question in Clai Siri, if you can provide some detail on the trends there because we are not seeing much of a pickup in revenue contribution despite the the label extension. And lastly, I didn’t get my comments on milestones, milestone payments for the year.

I I I got some 45,000,000 paid for Illumetri in q one, but that doesn’t seem to show up in the cash flow statement or maybe I’m I’m looking at it wrong. Thank you.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Oliver, for the questions. So, we are extremely pleased with our new launch in France. This is a fundamental, very important market for us for Biologics, and we have been able to secure an attractive price. And we’ve been able to secure to launch it even ahead of what we had in our schedule. So that’s great news.

And again, that’s testimony as we mentioned in my early remarks. The great work that the team is doing on the ground, for us in France, but also the the eagerness of health systems. And France has not been an exception to adopt Eglis as the this tremendous unmet need to keep remaining in the in the treatment of the bigger ratitis. We don’t comment specifically on its price country by country, where but what can I say is that it’s the price that that it was in our plan, and and we have achieved it? So we’re pleased about it.

Actually, largely continues to to contribute. It’s in The US. It’s not it’s not eating into the head of the whole field, so it’s additive. So so far, that progression is good. And same question was from milestones.

Right? So, Mike, do you wanna comment on that?

Mike McGillan, Chief Financial Officer, Almirall: Yes. Yes. I’ll take the milestone question. Sorry if it wasn’t clear. When I talked about the 45,000,000 for Eulimetry, that’ll be a q two payment.

We had quite a few in q one last year, not much in q one this year. We’ll have a q two. The overall full year milestones in investments, I would say, would probably land between 70,000,000 and $80,000,000 this year, very similar to last year’s full year cash flow, just a little bit of a different quarterly pattern.

Alvaro Lentz, Analyst, Alantra Equities: Thank you. That’s very helpful.

Sandra, Conference Operator: Thank you. We will now take the next question from the line of Jaime Escrivano from Banco Santander. So

Jaime Escrivano, Analyst, Banco Santander: a couple of questions from my side or maybe three. First one on gross margin. So gross margin is good in the the sale, I get something like more than 65%. So this is a little bit higher than than the usual. I think your guidance was more closer to 64% or so, better than expected just to understand what is behind that and what should we expect for the rest of the year.

Second question regarding your guidance for the year, if we do a simple run rate EBITDA taking Q1 without the asset sale, plus the asset sale, you get to the high part or even more than the $2.40. So, just wanted to know your thoughts. Is it that you are going to spend more OpEx in the following quarters? Or do you see upside risk to the mid range of your guidance? And the final question regarding tariffs, if you can tell us what would be your exposure in case The U.

S. Put, just as an example, from newspapers, a 25% tariff on on imports? And also, what is the your exposure on retaliation if Europe puts tariffs to The US products like, Everglis or ILUMETRI that you are imported from from there? What is your exposure, and what are the mitigating factors you have? Thank you very much.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Hey, Ignacio. Thank you for your questions. I only take questions because going to my later for for Mike. And guidance for the year, I think very, very, very pleased with the start of twenty twenty five quarter one. Great results.

We’re in line with the maintenance that that we that we gave you a few months ago. So I think it’s too early today to to make additional comments on that. I think I am very comfortable and moving in the definitely in the right direction. The guidance is very comfortable here. Because of that, we’re in a again, we are in a very good place on that regard.

Our US business, as you know, is is around 5%. We see really marginal impact, if any, on regardless of what is the tariff that is finally imposed, if any, again, and this is regulatory tariff. Again, there will be no impact or very marginal impact for our site either way. So also, we’re in a good place here.

Mike McGillan, Chief Financial Officer, Almirall: Yes. And I’ll take the gross margin question. Thanks, Jaime. Yes. We had a good gross margin in Q1 even if you take out the outlicensing transaction.

We still expect the full year to be slightly down Last year’s gross margin was 64.7. I would say we we probably have a little bit, like, 20 basis points to 50 basis points of pressure. So still above 64, but maybe a little bit lower than last year. It’ll really depend on on the the product mix.

This q one, we actually saw slow allergy season. We saw a slow cough and cold season. The weather’s been impacting in Europe a little bit q one, so that that having a slow cough and cold season actually helped our gross margin a little bit with those margin products. So I don’t think it changes drastically our our prediction for the full year.

Jaime Escrivano, Analyst, Banco Santander: Okay. Thank you very much.

Sandra, Conference Operator: Thank you. We will now take the next question from the line of Jaime Esquivano from Banco Santander. Please go ahead.

Jaime Escrivano, Analyst, Banco Santander: Hi. One final question from my side. On the pipeline, maybe for Carl, either any the either identity support ativa, looks like a very nice opportunity. Can you dig a little bit deeper on the on the potential, of this new compound, bearing in mind, I don’t know, comparison with other peers and size of the market? So any color that you can provide on that opportunity would be great.

Karl Sigaban, Chief Scientific Officer, Almirall: Thanks, Jamie. Very happy to provide a little bit of color on that. His identities superativa is a very high medical need indication, so really with a lot of impact on patients’ quality of life. There are already certain treatments available, but the benefit so far is rather limited, and there is still a very high medical need in this indication, which is from the prevalence about onefour of AD. So it could become a very significant indication.

We are very excited about our anti IL-one rep monoclonal antibody, where we just have completed Phase I and plan to start a Phase II later this year because it combines mode of action that has been shown individually already activity in this indication. On the one side, the IL anti IL-one beta antibodies have shown some activity, and also the anti IL-thirty six antibody has shown some activity. And as our anti IL-one rep antibody inhibits in total six different cytokines of the IL-one, IL-thirty three, and IL-thirty six isoforms, we believe that this combination has a great potential in this indication.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Carr.

Sandra, Conference Operator: Thank you. There are no further questions at this time. I would now like to turn the conference back to Pablo Divason for closing remarks.

Pablo Divason, Head of Investor Relations, Almirall: Thank you very much, Sandra. As there are no further questions, ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.

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