Earnings call transcript: Almirall’s Q2 2025 revenue beats forecast, stock rises

Almirall’s Q2 2025 earnings call revealed a positive revenue surprise, with the company reporting $275 million in revenue against a forecast of $273.97 million. This 0.38% revenue beat coincides with a modest stock price increase of 0.74%, reflecting investor confidence in the company’s performance. The $969 million market cap company has demonstrated impressive revenue growth of 24.46% over the last twelve months. According to InvestingPro analysis, Almirall is currently trading near its 52-week high, with multiple positive indicators including expected net income growth and strong liquidity position. Eight additional ProTips are available to subscribers.

Key Takeaways

• Almirall’s Q2 2025 revenue surpassed expectations by $1.03 million.
• Net sales increased by 13% year-over-year.
• Stock price rose by 0.74% following the earnings release.
• ILUMETRI and Evolus product lines showed significant growth.
• The company maintains a strong position in the European dermatology market.

Company Performance

Almirall demonstrated robust performance in the first half of 2025, with net sales increasing by nearly 13% year-over-year. The company reported a gross margin of 65.5% and an EBITDA of €121.8 million, marking a 17% increase. Based on InvestingPro’s Fair Value analysis, the stock appears to be slightly overvalued at current levels, though it maintains a strong position in the European dermatology market with a diversified portfolio and significant market share in key regions.

Financial Highlights

• Revenue: $275 million (0.38% above forecast)
• Gross margin: 65.5% of sales
• EBITDA: €121.8 million (17% increase YoY)
• R&D spending: 12.8% of net sales (27% increase)

Earnings vs. Forecast

Almirall’s revenue exceeded the forecast by $1.03 million, a 0.38% surprise. Although EPS data is not available, the revenue beat is a positive indicator of the company’s performance this quarter.

Market Reaction

Following the earnings release, Almirall’s stock price increased by 0.74%, reflecting investor confidence in the company’s financial health and strategic direction. With a beta of 1.22, the stock shows moderate market sensitivity while maintaining generally low price volatility. The stock remains close to its 52-week high, indicating a generally positive market sentiment. Discover comprehensive analysis and more insights with InvestingPro’s detailed Research Report, available for over 1,400 US stocks.

Outlook & Guidance

Almirall is targeting a double-digit net sales CAGR through 2030 and aims for a 25% EBITDA margin by 2028. The company is focused on expanding its dermatology portfolio and continuing pipeline development over the next 12-24 months.

Executive Commentary

CEO Carlos Gallardo emphasized the company’s ambition to achieve a double-digit net sales CAGR through 2030. He also highlighted the expansion of the market and increased access to novel treatments as key drivers for future growth.

Risks and Challenges

• Increased R&D spending could pressure margins if not offset by revenue growth.
• Market saturation in certain regions may limit sales potential.
• Macroeconomic pressures could impact consumer spending and healthcare budgets.
• Regulatory changes in key markets could affect product approvals.
• Competition from new entrants in the dermatology sector could erode market share.

Q&A

During the earnings call, analysts inquired about the potential for ILUMETRI in treating psoriatic arthritis, to which Almirall confirmed no current off-label use. The company also addressed the positive market reception of Evolus in new European markets and reiterated its focus on stabilizing US operations.

Full transcript - Almirall (ALM) Q2 2025:

Heidi, Conference Operator: Good day, and thank you for standing by. Welcome to the Almirall H 1 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. To ask a question during the session, you will need to press 11 on your telephone.

You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1 Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Pablo Diversson, Head of Investor Relations. Please go ahead.

Pablo Diversson, Head of Investor Relations, Almirall: Thank you very much, Heidi, and good morning, everyone. Thank you for joining us today’s quarterly earnings update and review of Almirall’s first half year financial results of 2025. As always, we are sharing the slides we are using today in the Investors section of our website at almira.com. Please move to Slide number two. Let me remind you that 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 Karl Sigabar, Chief Scientific Officer and we also have John Garay, our new CFO, joining us for the first time today. Carlos will start with the business highlights covering the first half of twenty twenty five, followed by an update specifically on biologics as the key growth drivers of our medical dermatology portfolio. Kai will provide you with the 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.

And we 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, and good morning, everyone. Our Mirae’s performance in the first half of twenty twenty five reflects the strength and consistency of our sustained long term growth strategy. We are happy to reaffirm our full year 2025 guidance as well as our midterm outlook and peak sales expectations. This confidence is underpinned by the solid momentum across our medical dermatology portfolio, where we continue to expand access to meaningful treatments for patients and physicians. Amel’s positions as a European leader in medical dermatology has never been stronger, supported by our commitment to innovation and operational excellence.

Airglis continues to deliver strong sales growth during the second quarter of twenty twenty five, driven by a robust uptake in Germany and positive traction from recent country launches. Irrometry continues to display steady year on year growth, which supports our peak sales expectations that we are happy to reconfirm today. Meanwhile, Winthor and Clizirid remain important contributors to our European revenue base, reinforcing the strength of our dermatology portfolio. We have maintained strong engagement in the medical dermatology field this year, participating in major events such as the twenty twenty five annual AAD meeting, the sixteenth Skin Academy in Barcelona, the eleventh World Congress of Melanoma, the twenty first EAGL Congress, and more recently, the twenty twenty five International Congress of Dermatology, ICD in Rome. As a key part of our business development efforts, we actively pursue external innovation opportunities in early and mid stage clinical development, aiming to strengthen our pipeline and broaden our impact in dermatology.

We are excited to share that we have recently expanded our collaboration agreement with Simsir to now include new B specific antibodies for immunodermatology diseases. Karl will soon share further insights on this opportunity, along with our remaining pipeline updates. Please move to Slide seven for an update on our biologics portfolio. ILUMETRI continues to demonstrate good momentum within the psoriasis market, solidifying its position within the broader and the IL-twenty three class. The recent rollout of the two hundred milligram formulation has been well received and is contributing nicely to our performance.

We also received a positive CHMP opinion regarding inclusion of the new SCALP trial data. This strengthens ILUMETRI’s differentiation and reinforces the perceived efficacy of ILUMETRI in treating patients suffering from SCALP psoriasis. In quarter two twenty twenty five, ILUMETRI generated net sales of 58,000,000 marking a 13% increase year over year. This growth reinforces our confidence in the brand’s trajectory as it has consistently delivered solid year on year on year growth since its initial European launch back in 2018. We continue to reaffirm our PIXAL’s guidance of over 300,000,000.

ILUMETRI remains a key growth driver in our portfolio, and we believe it’s well positioned to make a lasting impact to patients in the evolving psoriasis treatment landscape. Now that our partner, Sam Pharma, has successfully completed that psoriatic arthritis studies, we are assessing the commercial viability of expanding ILUMETRI into this indication. As a reminder, Almirai holds the rights to develop and commercialize ILUMETRI in Europe, which includes new indications. Please move to the next slide on Eblis highlights. Eblis continues to deliver a strong performance just over one years point since its launch in Germany in December 2023.

Cumulative sales have now reached €79,000,000 We view this as the most successful atopic dermatitis launch in recent years, reflecting strong market uptake and effective commercial execution. Overall, the advanced therapies market for atopic dermatitis in The EU5 is experiencing strong growth, expanding at an annual rate of approximately 30% to 40%. Our disciplined approach to launch execution and commercial rollout resulted in a solid market position in Germany and has laid the groundwork for successful expansion across Europe. Within the first year, Evolus captured the second highest dynamic new patient share in the German market, and we are seeing similar trend in our markets. Reimbursement pricing outcomes have been favorable, which we are very pleased about.

This reflects the higher net need for advanced treatment options in this disease and the value that national health care systems place on innovations in this space. Brand awareness has also outpaced benchmarks in various markets within one year from the launch. First half year sales quadrupled over year on year and rose 31% quarter on quarter, reaching around CHF 25,500,000.0. While Germany remains the largest contributor of Eplis, early launch countries are beginning to scale following a promising initial uptake. Eplis is now Almirai’s second highest selling product available in most major European markets, covering over 90% of our total sales potential.

As of today, the growth is commercially reimbursed in 14 European countries. We are expecting to launch in Portugal and Ireland before the end of the year. Our collaboration with Lilly continues to be highly constructive, fostering valuable knowledge exchange that supports ongoing market development. I will now hand over to Karl to provide an update of the progress of the company’s pipeline and R and D efforts.

Karl Sigabar, Chief Scientific Officer, Almirall: Thank you, Carlos, and good morning to everyone on the call from my side. This slide now shows you the status of our pipeline. Let me highlight the progress we made in the last couple of months. Our Phase III study to evaluate the efficacy and safety of tbanibulin applied to a treatment field larger than 25 square centimeters and up to 100 square centimeters in adult patients with actinic keratosis met primary and key secondary endpoints. Detailed results will be presented in an upcoming scientific meeting.

We are working on filing with EMA and aim to launch in 2026. Together with our partners, we continue to work in expanding the label for our key products, ILUMETRI and Eplis. Our partner Sun Pharma recently announced the top line results of two Phase III study to assess the efficacy and safety of tildrakizumab in patients suffering from psoriatic arthritis. Both trials met their primary endpoints. We are currently analyzing the results in detail and will keep you updated on next steps.

Together with our partner Eli Lilly, we are running a joint clinical development program to make lebrikizumab available to additional patient population. The different programs are well on track, and a detailed overview can be found in the appendix. We have recently received the top line results from the forty eight week interim analysis of the ADLONG study. This study is designed to further explore the long term safety and efficacy of lebrikizumab in patients with moderate to severe atopic dermatitis. The interim results at one year indicate excellent maintenance of efficacy and safety.

When these findings are combined with data from the parent study, they support that the majority of patients whose disease was well controlled after a sixteen week induction phase can maintain their response for up to four years with an excellent safety profile. Details of the study will be published at the forthcoming scientific meeting. Recruitment of our AD HOPE studies is progressing very well. ETHOPE I and II are Phase IIIb open label studies to evaluate the effectiveness and safety of a twenty four week lebrikizumab treatment in adult and adolescents with moderate to severe atopic dermatitis. In the ATHOPE II trial, we have started to explore a five hundred milligram Q12 weekly maintenance schedule to explore an extended treatment interval in this phase.

We have created an exciting early clinical pipeline addressing novel mechanisms and best in class compounds in high medical need skin diseases. In the coming twelve months, we plan to initiate four proof of concept Phase II clinical studies across a spectrum of different dermatological diseases. Let me highlight some of the progress. For our anti AL1REF monoclonal antibody, we have completed Phase I single and multiple ascending doses in healthy volunteers. Our anti AL1REP monoclonal antibody demonstrated a favorable safety and tolerability profile in healthy volunteers along with a low immunogenicity risk.

We have also explored pharmacokinetics and safety in patients suffering from hidradenitis suppurativa with similar results as seen in healthy volunteers. These data support further development of this anti alkaline rep monoclonal antibody, and we plan to start a Phase II study later this year. Together with our partner, Sinsere, we are developing a so called IL-two mutant Fc fusion protein to stimulate regulatory T cells as a novel approach to treat autoimmune skin diseases. We have recently completed Phase I and plan to progress to Phase II within the following month. Furthermore, we have expanded our collaboration with INSERE to jointly discover and develop novel multi specific antibodies for the treatment of various autoimmune skin diseases.

This collaboration adds to our bispecific antibody that we have already in preclinical development. Bi- and multispecific antibodies are emerging as the next wave of therapeutic advancement in a broad range of autoimmune diseases. Combining our complementary capabilities and geographic footprint, we believe this collaboration has the potential to generate significantly better therapeutic options for patients suffering from autoimmune skin diseases. In summary, we are progressing very well with both our early and late stage pipeline. With that, I will hand over to Mike for the financial review.

Mike McGillan, Chief Financial Officer, Almirall: Thank you, Karl, for the updates on our R and D pipeline. As Carlos mentioned earlier, we are pleased with how our consistent execution continues to translate into tangible results. In the first half of twenty twenty five, we delivered a solid performance with net sales up nearly 13% year on year, fully aligned with our guidance. Our European dermatology portfolio remains a key growth engine for boosting our overall net sales and reinforcing our path toward leadership in medical dermatology. Gross margin reached 65.5% of sales, supported in part by the outlicensing impact reported in the first quarter.

EBITDA for the first half came in at 121,800,000.0 a 17 increase versus the same period last year, driven by the strong top line growth and helped by the Q1 out licensing transaction. SG and A rose 8% to $251,000,000 reflecting our continued investment in the endless rollout. R and D spending increased by about 27% year on year, representing 12.8% of net sales. We had a more evenly distributed quarterly spending in 2025 compared to last year, resulting in a higher R and D investments in the second quarter versus the same period last year. Q2 R and D investment was slightly ahead of external expectations despite being in line with our annual target in relation to sales.

We closed the first half with a net debt to EBITDA ratio of 0.4 times. Despite the elementary milestone and dividend payments in the second quarter, cash flow generation remains solid. Our level of leverage continues to be low, providing us with significant flexibility to pursue out licensing opportunities or targeted bolt on acquisitions. These results reinforce our confidence in the full year 2025 guidance and the midterm outlook we shared earlier this year. Let’s move on to the details of the sales breakdown on Slide 13.

The European dermatology business delivered a great performance, achieving 24% year on year increase for the first half, and I’ll dive into the details on the next slide. In general medicine and OTC, European sales were primarily influenced by the recent divestment of Adjudal and the outlicensing of Secusan. Excluding these portfolio moves, the segment remained broadly stable as a delayed allergy season continued, the erosion of epacive, Tessavil, and a lower sales of minor products were offset by a solid contribution for Almax. In terms of outlicensing and royalty income, we expect the full year 2025 to land around $10,000,000 ahead of 2024. These transactions form part of our ongoing strategy to extract maximum value from the portfolio, including the q one transaction I mentioned earlier.

Performance declined in The US, and I’ll provide further insights on the next slide. Lastly, while general medicine remained broadly stable in the rest of the world, dermatology experience of sight decline. Let’s take a closer look at the dermatology business on the next slide. Our European dermatology business segment continues to thrive with ILUMETRI and EBVICE as the primary drivers, but other growth drivers such as, Cliserie and WEN Zor are making progress with their launches in key European markets. Evolus sales reached $45,000,000 in the first half, becoming our second ranked product overall after around eighteen months on the market, driven by uptake in the recently launched markets.

This result is in line with our expectation and enhances our confidence in its strong growth trajectory. Losgillarins and ceclipoli maintained similar levels to last year. The U. S. Business recorded a year on year decline, While the Clisteri large field launch continues to generate some positive momentum, these gains have been offset by the continuous pressure on the legacy portfolio.

Products such as Tazorac and Axone remain affected by ongoing generic competition, and we had a small stock out of, Cordran tape following a manufacturing change. Additionally, Seysara sales are slightly lower than previous year, mainly due to a decline in the overall oral antibiotic market for acne. The rest of the world saw a dip in dermatology sales year on year due to less minor licensing income than we had last year. Let’s now move on to the complete financial statements on slide 15. Let’s review the rest of the p and l starting with some elements Carlos mentioned earlier.

Gross margin moderated to 65.5% in q two twenty twenty five, following elevated q one levels. This has been temporarily boosted by the out licensing impact in Q1. Looking ahead, we expect to have some continued pressure on margins due to the evolving sales mix and higher royalty levels linked to Elementary’s growth. We maintain our full year guidance as outlined in the February call of gross margin percentage equal or slightly lower than 2024. Going forward, we see additional pressure on gross margin percentage due to high royalties and cost of goods of our biologic growth drivers.

Our R and D investments have risen to 12.8% of net sales, up from 11.4% in the first half of twenty twenty four, and we expect this to remain steady in the second half while last year ramped up investments in the second half. We anticipate landing in the range of 12.5% of net sales for R and D for the full year. SG and A investments grew by 8% compared to the first half of twenty twenty four. We expect the high single digit growth to continue in 2025 as we focus on launching Evolus in the new markets and supporting existing ones. Going forward, we see much lower increase in the following years as we will have the full infrastructure in place for Biologics already.

Financial expenses improved year on year, mainly due to a $6,000,000 positive impact of the valuation of the equity swap, driven by the share price gain year to date. Just a reminder that our effective tax rate continues to be impacted by the fact that U. S. Tax losses cannot be offset against profits generated in Europe, as mentioned in our full year guidance. Please move to the next slide, and we’ll take a look at the balance sheet.

The main item to highlight on the balance sheet this quarter is the investment in tangible assets in addition to some R and D capitalization related to Evolus Phase IV studies. Key investments also include a milestone upon the successful phase one of our anti I o one wrap monoclonal antibody, which we in licensed from Ichnos back in 2021. The total impact has been outweighed by higher depreciation. Our net debt ratio remains low at 0.4 times, supporting continued flexibility for potential inorganic growth. The increase in net debt primary reflects the Alemetry milestone triggered last year in q four that was paid in q two this year.

Let’s take a look at the cash flow statement next. We generated $57,600,000 in operating cash flow during the first half of twenty twenty five. Although changes in working capital were more pronounced than in the same period last year, mainly due to higher receivables from the higher sales level. These were largely offset by the increase in profit before tax. In addition to net financial income, which includes the impact of the equity swap, other adjustments reflect some additional pending cash collections.

Cash outflows related to investments were lower in the first half of twenty twenty four, primarily because of significant payments made in January 2024 following the AbbVie’s launch. The key investment in q two twenty twenty five was an additional 45,000,000 milestone payment linked to ILEMETRI sales that was triggered in the end of twenty twenty four. Remaining investments during the period primarily reflect scheduled milestones under the existing agreements, including the payment to IGNOS following the successful completion of the phase one trial of our anti IL-one rep monoclonal antibody. Cash dividends were higher this year due to a lower level of scrip dividend selected by shareholders. Please proceed to the next slide.

As announced earlier in the year, I am stepping down from my role as CFO, and I plan to leave Almirall in mid September. As this is my last earnings call with the company, I want to thank all of the investors, analysts, and others that follow our financial communications for their support and patience in recent years as we reshape the future of the company through significant investments in our new launches and our R and D pipeline. We are now starting to see the initial payoff of these efforts, and I’m happy to hand over to John, who started earlier this week who will take this forward. John brings to the role more than twenty five years of experience in finance and business leadership across the pharmaceutical, medical device, and telecommunication sectors. His deep expertise in specialty medicines and his strong track record in financial leadership make him exceptionally well suited to support Almirall’s continued growth as a leading player in medical dermatology.

John is here with us today as part of the handover process, so I’ll now turn it over to him.

John, Incoming Chief Financial Officer, Almirall: Thanks a lot, Mike, for your kind introduction, and good morning, everyone. I feel honored to be here with you all today and join Almirall at this certain point in time, a company with a tremendous legacy that keeps the patient at the center of everything it does. I’m excited for the opportunity to collaborate with Almirall’s talented and passionate team, contributed to company mission and sustainable profitable growth to be delivered in upcoming years aligned with 2030 vision. I would like to thank Mike for his support and help during my onboarding. We are working very closely to ensure a smooth transition from day one with a solid focus on business continuity, building up on the woodwork that has already been accomplished.

I look forward to meeting many of you in the upcoming months and quarters. And with this, I would like to hand it over back to Carlos for his closing remarks.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Mike, and thank you, John, and and a very warm welcome. On behalf of the board and the entire Alimera team, I would like to thank Mike McClellan for his leadership and dedication during his tenure as CFO. His contributions have been instrumental in strengthening our financial foundation and supporting our strategic direction. We wish him continued success in his future endeavors. As Mike confirmed, we remain fully on track to meet our 2025 guidance and midterm outlook.

Our ambition is to achieve a double digit net sales compounded annual growth rate through 2030 and reach an EBITDA margin of approximately 25% by 2028. As we close the second quarter of twenty twenty five, we are encouraged by the continued momentum driven by Lumetri and Epilisk, which are propelling total sales growth into double digits. Looking ahead, we anticipate further pipeline developments in the next twelve to twenty four months. Over the past decade, we’ve built a strong foundation in medical dermatology, which continues to offer meaningful opportunities for both growth and margin expansion. What differentiates Almirai in this evolving landscape is a combination of scientific depth, operational excellence, a pipeline with disruptive potential, including several first and best in class assets, and our close long standing relationship with dermatologists and patient communities across Europe.

I’m proud to say that over 400,000 patients have been treated with Ardiraj’s new dermatological products in 2025. And when I mean new dermatological products, I refer to Eblis, Rheumatrix, Lysuria, Winthora. Our capital allocation strategy remains disciplined and focused. We continue to invest in current and upcoming launches to drive midterm growth, strengthen our pipeline through internal R and D and in licensing, maintain a stable dividend and remain open to targeted business development and licensing opportunities, supported by a solid liquidity position and prudent financial approach. We are excited about the road ahead towards strengthening our leadership in medical dermatology.

With that, I will pass the word back to Pablo for Q and A.

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

Heidi, Conference Operator: Thank We will take our first question. And the first question comes from the line of Shan Haemer from Jefferies. Please go ahead. Your line is open.

Shan Haemer, Analyst, Jefferies: Hi there. Thank you for taking my questions. Just two from me. So firstly, what are the current competitive dynamics between Eblis and Nimlivia in Europe? I know Nimlivia only launched earlier this year, but is there anything you can provide on this front?

And then secondly, do you find that there’s an increasing use of biologics in Europe like Eblis in biologic naive patients? Thank you.

Pablo Diversson, Head of Investor Relations, Almirall: Sorry, Shannon. I missed the second part of or

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: the second question. Can you please repeat it?

Heidi, Conference Operator: Yeah. Of course. Do you find

Shan Haemer, Analyst, Jefferies: that there’s an increasing use of biologics like Eglis in Europe in biologic naive patients?

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Sure. Thank you, Shan. I think it’s not no surprise that we we’re seeing new entrants in atopic dermatitis because it’s a tremendously exciting market with that still has tremendous unmet need potential. Yes. And NEMLLUVIO have been recently launched that has indication for porico nodularis and has a IL-thirty one mechanism.

We believe if we believe that for AD, the main cytokine remain is IL-thirteen. 13. So and, you know, we could see the role that Nebulio plays in per gonadularis going forward. And in terms of the second question, the use of biologics, yes. I mean, we’ve seen it.

We saw it in the past in the psoriasis market. Whereas we see new entrants, what the new entrants and new classes do is to expand the market and of because there are still a big percentage of eligible patients of moderate to severe disease that are not treated. We are seeing the same dynamics, although at an earlier stage in the atopic dermatitis market. So, yes, we believe that new entrants, what we’ll do is expand the market and increase the access of these novel and exciting treatments to patients suffering from atopic dermatitis.

Shan Haemer, Analyst, Jefferies: Thank you.

Heidi, Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Guillaume Sampayya from Kegsaban. Just

Guillaume Sampayya, Analyst, Kegsaban: one so two, if I may. One on Ablys. Is there any factor that we should consider when modeling Ablys sales ramp ups throughout the year or this run rate this quarter on quarter run rate that you’re having in the Q1 and Q2 is a good reference? And the second one is a bit on the second half. So if I’m not mistaken, you’re assuming a bit more intense OpEx in the second half versus your prior expectations.

If you could provide some color on this, it would be great. And on out licensing royalty income expectations, you mentioned a €10,000,000 higher impact versus 2024. If you could provide us some bridge versus your prior expectations. Thank you.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Good. Thank you for your questions. Mike, do you wanna take

Pablo Diversson, Head of Investor Relations, Almirall: a stab at the questions?

Mike McGillan, Chief Financial Officer, Almirall: Yeah. So, we’re seeing good uptake of Evglis. So I think, you know, the the quarter on quarter growth you’ve seen in the last couple of quarters is probably a fairly good proxy. As we get bigger, that may slow down a little bit, but we’re seeing good uptake across this. And we think we’re definitely in line to meet or slightly beat the existing Street expectations.

So where do we see good good uptake there? The second half, we we we expect, you know, if you look at our our guidance range versus the first half, it’ll be fairly consistent. You know, we’ll we’ll continue to have good sales growth. And and if you look at the EBITDA range versus where we’ve landed in the first half, it shows that we’ll continue to have good good EBITDA growth there too. In terms of what I talked about total, outlicensing and royalties, if you look across the entire business, including, you know, outlicensing we do of of noncore products, things that we haven’t launched ourselves that we’re we’re finding partners.

Last year, the that bucket was about 15,000,000 in total. This year, with with the first quarter transaction, we’ll end up around 25,000,000 in total. So that’s the ten year, the 10,000,000 gap. That also includes some ongoing royalties from older, transactions that we’ve done and and minor minor outlicensing in in territories like Latin America and and Asia of some assets. So nothing nothing, huge, increase.

If you look back into 2023, that bucket was about 20,000,000, so it’s fairly consistent.

Heidi, Conference Operator: Okay. Thank you. Thank you. We will take our next question. Your next question comes from the line of Niall Alexander from Deutsche Bank.

Please go ahead. Your line is open.

Niall Alexander, Analyst, Deutsche Bank: Hi. How’s it going? It’s, Neil Alexander from Deutsche Bank. Just two questions, please. On your IL-one monoclonal antibody and hydrogenated supertiva, it’d be helpful just to get your takes on the commercial opportunity there.

You have the likes of Benzlek doing well in that space. So just wondering how you could potentially differentiate there once you tick off the regulatory r and d studies. And then on Eglis, just obviously focusing outside of Germany, which seems to be doing well. And just looking into the regions where you have launched, it’d be helpful to get an understanding of how these are tracking, in particular, other EU five regions.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Thank you, Nayu, for the question. So I’ll give you some some flavor on the I l one, and then I’ll and then please, and then I’ll pass the word for Karl for further insight into the into the anti I l one. First HS, again, is a big underserved market. The unmet need remains, although there are some treatments approved in HS, the unmet need remains tremendous the sort of suffering by these patients. So very excited to have two programs that are targeting HS, both with a potential to be best in class.

The other one is extremely exciting. We have already seen the the results of phase one that confirms, you know, the profile of the product, and now we we will soon enter the POC studies. At least outside Germany, every day, but we’re seeing a strong uptake even in countries where we still don’t have full access because there is a regional access landscape such as Spain and Italy. We’re seeing a very positive uptake of in these countries and already in some cases already being in the double digit in terms of dynamic market share. So, everything we’re seeing, very positive and confirming the the potential and the role of IL-thirteen in treating AD patients.

Karl Sigabar, Chief Scientific Officer, Almirall: Maybe to add on the anti IL-one rep antibody. This antibody is a target, the coreceptor of in total six cytokines of the IL-one cytokine superfamily, IL-one alpha beta, IL-thirty three, and IL-thirty six alpha beta and gamma. Antibody that targets individual cytokines like the IL-one sesser for targeting the IL-thirty six have shown activity in heteradenitis suppurativa. And we believe by having an antibody that can combine those activities will have a chance to see a better efficacy in this very high medical need indication.

Niall Alexander, Analyst, Deutsche Bank: Thank you very much.

Heidi, Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Jamie Escobano from Banco Santander. Please go ahead. Your line is open.

Jamie Escobano, Analyst, Banco Santander: Hi. Good morning. So my first question is regarding what you were commenting about Sun Pharma, an opportunity in psoriatic arthritis. Can you elaborate a little bit more on the size of this opportunity? How is this disease compared to the traditional psoriasis?

Is there already off label cells of ILUMETRI in this field? When when could you have the indication launched? And second second question is more of, you know, reviewing, like, a smaller products that this quarter were performing well just just to better understand the dynamics. Like, for example, cyclopoly was doing fine. Skilaranz was growing for the first time in several quarters just to to know if there is any specific dynamic there.

And also WinSoda, which, least I personally thought it was more of a small product of 20,000,000, maybe 30,000,000, but it’s already making a run rate of around 40,000,000. So, what’s going on with this product, and what could could we expect? Thank you.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Good morning. Hi, Meme. Thanks for the question. So on PSA, happy to see the positive results achieved by our partner Sun in this development. And this, again, adds to the body of evidence of filamentary being an effective treatment to a broader patient population.

We are now analyzing the results. We will see what we do going forward, and we will update you as soon as we have a view. Regarding your second question, yes. We are also very happy with the performance of of the a majority of the remaining of our portfolio, very impressed by Winthora. What I suggest maybe, Mike, you can you can comment on cyclopolyskilarence.

We have Paolo with us here as well. So maybe, Paolo, you can comment on Winthora.

Mike McGillan, Chief Financial Officer, Almirall: Yeah. So cyclopoly, we’re seeing some some small growth there. I think, you know, this is a a product where we are a market leader in in many of the OTC markets across Europe, and it’s been a good year so far this year. So it is affected by seasonality of of weather because, you know, it’s it’s basically a nail fungus remover. And when there’s better weather, people tend to wear sandals, they wanna get rid of the nail fungus.

So this is a typical annual variance. In terms of scalarins, what we’ve actually seen is in the main market Germany, one of the competing products has, withdrawn from the market, another one of the DMFs. So so we will see a slight growth this year as we pick up some of that volume, but it’s not going to significantly change the the the pattern. But but it’s nice for us to have a small growth in that. And maybe, Paolo, you wanna address BINZORA?

Pablo Diversson, Head of Investor Relations, Almirall0: Hi. Hi, Meh. This is Paolo Sonini, the, commercial officer here in AMIRAI. So, we are very pleased, on the trend of we are having with, with BINZORA. Actually, as a company that want to be a leader in dermatologists, not only about biologics, but it’s also offering a note to patients and dermatologists the full spectrum of treatment and, in psoriasis.

I mean, we are basically among the the the few companies, actually, the only company offering everything basically from, my disease to the very severe or a complete portfolio, on treating psoriasis. So about WinZora, we are pleased because the sales are catching up in the countries, the most relevant countries where we are operating with such a product. And, and also about the penetration of the market where we are already double digit, high double digit, I would say, in market penetrations, in market share, not only in dynamic but overall. And, and with ZORA showing that through this PAD technology that give us the possibility really to give an options to the patient that is much better than the the available products. I mean, we are really, seeing an increasing penetration of the market, and we will continue like that even in the future.

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

Heidi, Conference Operator: Thank you. We will take your next question. The next question comes from the line of Francisco Roos from BNP Paribas. Please go ahead. Your line is open.

Pablo Diversson, Head of Investor Relations, Almirall1: Hi. Good morning. First, I would like to thank Mike for the help during all this year, I wish him the best luck in the next developments. And I also welcome, John. I have two questions.

One is a follow-up from Jaime, which is that the €30,000,000 peak sales that you expect in ILUMEDIT does not include this new psoriasis arthritis therapy. And the second one, as always, I asked about the milestones in the coming quarters. So if you could give up a date after the €50,000,000 that we sold in this first half, what is remaining for the second half and what’s already known for 2026? Thank you.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Yeah. Sure. Hi, Francisco. Yes. The 300,000,000 over 300,000,000 peak sales estimate for ILUMETRI does not include additional indications such as PSA.

It’s only based on PSO. Mike, do you wanna take the milestone question?

Mike McGillan, Chief Financial Officer, Almirall: Yeah. So so far, you know, I think we’re we’re still on track to to have total investments this year, you know, between 70 and 80,000,000, absent any large significant new transaction. And and the difference between where we are at the the the half year and the second half means we’ll have much less in the second half. It’s really just going to be small things based on existing agreements. We may trigger, you know, larger milestones to be paid next year, but I would expect next year to be somewhere in that same ballpark, roughly 80,000,000, of course, absent any new, m and a or in licensing transactions.

Pablo Diversson, Head of Investor Relations, Almirall1: Okay. Well, thank you.

Heidi, Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Jochen Garcia Guerra Gonzalez Pammino from JP Capital. Please go ahead. Your line is open.

Pablo Diversson, Head of Investor Relations, Almirall2: Yes. Hello. Thank you for taking my question. Just I want to have a bit more insight on Tliceria in The US. It’s growing but still very small.

So I want to to know if large flow is really having, an effect there. And then despite that, US operations continue to to decline year on year. So what’s your, what what are you going to do in the future if this continues? Will you, consider closing, The US operations, or that’s not something you’re currently considering? Thank you.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Hello, Joaquin. Thanks for the question. About The US, we remain on on plan a that we’ve shared with with you a few times. One is to to stabilize the the the the company with the current portfolio and resume it to the growth trajectory. This year, we’re still planning to finish any EBITDA neutral.

Once, you know, we maximize the existing portfolio, then we we are looking for bolt on opportunities that that cannot, you know, in the future, that cannot further growth. And then whilst we wait for our pipeline to deliver, as reminder, we have The US rights in all the assets that we have in our portfolio, including the exciting assets that we were talking about just a few minutes ago, such as the anti IL-one. And sorry about Viciri, Kogin. Yes. I think we we are happy with the the launch of the large field.

Now we see a majority of prescriptions going to large field versus the small field, and we plan to see the this this this trajectory continued. So not only the molecule is growing based on the the actual sulfur product, but also we’re seeing the mix between the large and the small shifting towards favorably towards the natural. And we continue these to us to continue doing this in this trend.

Pablo Diversson, Head of Investor Relations, Almirall1: Thank you.

Heidi, Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Alvaro Lens from Altrauner Equities. Please go ahead. Your line is open.

Pablo Diversson, Head of Investor Relations, Almirall3: Hi. Thanks for taking my questions. The first one is on this market share. You mentioned you’re in the double digits in Germany. I don’t know if you have a similar figure or available data for France, in particular, after you launched this quarter?

My second question would be in terms of pricing, if you could provide whether pricing in the new launches missing any change and also if you could see potential for price upgrades in the future or if there are any any discussions given the the most favored nation discussions in The United States. I don’t know if you see any read across that that could push, in order to drop prices in Europe up in order to compensate for a potential decline in U. S. Prices by big pharma. Thank you.

Pablo Diversson, Head of Investor Relations, Almirall: So thank you, Alvaro, for the questions.

Carlos Gallardo, Chairman and Chief Executive Officer, Almirall: Please, France, it’s it’s it’s early days to to stop talking about percentages of uptake. What we see is very consistent with what we’ve seen in in in other markets where we have launched earlier. That that means good feedback, anecdotal, good feedback from physicians, willingness to try. Those that have already experienced with the product, signaling that they are willing to use it more. So quite consistent inputs coming from France compared to to previous, countries where where we have launched base.

Pricing pricing, well, as we mentioned a few times, so, we were very happy to see that the health systems in the different countries wanted, new treatments for atopic dermatitis, and then there’s a testament of the severe unmet need that remains in this indication. And therefore, we’ve seen, you know, the the pricing levels that we were expecting, in some cases, maybe slightly better. But also, as we’ve mentioned a few times also in these calls, we’ve got reimbursement ahead of in some cases, of the standard times. Right? So overall, in in the market access front, pricing and reimbursement, positive from that side.

The future about price upgrades, well, well, in Europe Europe, you know, that’s that’s have yet to have a see Europe revising pricing upwards. Yes. Now there’s an opportunity for Europe given the geopolitical events and the US administration policies to for you to get the act together and start rewarding innovation in a different way. So, let’s see what the developments are in this in this front.

Pablo Diversson, Head of Investor Relations, Almirall3: Thank you.

Heidi, Conference Operator: Thank you. There are no further questions. I would like to hand back to Pablo Diverson for closing remarks.

Pablo Diversson, Head of Investor Relations, Almirall: Thank you very much, Heidi. 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.

Heidi, Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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