Earnings call transcript: Hansa Biopharma Q2 2025 reveals mixed results

Hansa Biopharma (market cap: $234.6 million) reported mixed financial results for Q2 2025, with a notable miss on both earnings and revenue forecasts. The company posted an earnings per share (EPS) of -2.53, falling short of the projected -1.82. Revenue reached SEK 49.1 million, missing the SEK 59.11 million forecast. Despite this, the stock price rose by 3.93% to 25.94, reflecting investor optimism driven by strong product sales and operational efficiencies. According to InvestingPro analysis, the company maintains a "FAIR" overall financial health score of 1.87, suggesting moderate stability despite current challenges.

Key Takeaways

• Ideferix product sales surged by 76% compared to Q2 2024.
• Gross margin improved significantly to 66%.
• The company completed restructuring, anticipating annual savings of SEK 60 million.
• Stock price increased by 3.93% post-earnings release, despite financial misses.

Company Performance

Hansa Biopharma demonstrated robust product sales growth, particularly with Ideferix, which saw a 76% increase from the previous year. The company also improved its gross margin to 66%, up from 35% in 2024, showcasing enhanced operational efficiency. InvestingPro data reveals a trailing twelve-month revenue growth of 9.53% and a gross profit margin of 52.71%. However, the firm continues to face challenges with an operating loss of SEK 154.8 million, albeit a 17% improvement compared to Q2 2024. InvestingPro subscribers have access to 6 additional key insights about Hansa’s financial performance and market position.

Financial Highlights

• Revenue: SEK 49.1 million, a 43% increase year-over-year.
• Earnings per share: -2.53, a miss compared to forecasted -1.82.
• Gross Margin: 66%, up from 35% in 2024.
• Operating Loss: SEK 154.8 million, a 17% improvement from Q2 2024.

Earnings vs. Forecast

Hansa Biopharma reported an EPS of -2.53, missing the forecasted -1.82 by 39.01%. Revenue also fell short at SEK 49.1 million versus the expected SEK 59.11 million, marking a -16.93% surprise. These misses highlight ongoing challenges in meeting market expectations.

Market Reaction

Despite missing earnings and revenue forecasts, Hansa Biopharma’s stock price rose by 3.93% to 25.94. This positive movement suggests investor confidence in the company’s strategic initiatives and product sales growth. InvestingPro analysis indicates the stock is currently trading at 1.36 times its 52-week low of $2.01, with a beta of 1.54 suggesting higher volatility than the market. Based on InvestingPro’s Fair Value model, the stock appears to be undervalued at current levels. Discover comprehensive valuation insights and more with InvestingPro’s detailed research reports, available for over 1,400 US equities.

Outlook & Guidance

Hansa Biopharma remains optimistic about exceeding its 2024 product sales of SEK 140 million in 2025. The company is also preparing for significant developments, including top-line data from the Confidus U.S. trial in kidney transplantation and the GOODIGIS-2 Phase 3 trial in anti-GBM disease. The cash runway is extended into early Q2 2026, providing financial stability for future initiatives.

Executive Commentary

CEO Renee Aguirre Lutander highlighted the increasing adoption of Ideferix, stating, "We continue to see an increase in transplant clinics with initial and repeat usage of Idifferx." COO Maria Turnson emphasized the transformative potential of Ideferix, saying, "Idaferric represents significant opportunity to transform kidney transplantation."

Risks and Challenges

• The pause in Germany’s transplant prioritization program could affect European market dynamics.
• Ongoing operating losses may pressure financial resources.
• Potential macroeconomic pressures could impact future growth and profitability.

Q&A

During the earnings call, analysts inquired about the potential impact of Germany’s program pause and the strength of the Sarepta partnership. Executives reassured that other European markets remain unaffected and affirmed the partnership’s stability despite restructuring efforts.

Full transcript - Hansa Biopharma AB (HNSA) Q2 2025:

Conference Operator: Good day, and welcome to the Hansa Biopharma Second Quarter Earnings Conference Call. All participants will be in listen only mode. After today’s presentation, there will be an opportunity to ask questions. Please note today’s event is being recorded. I would now like to turn the conference over to Renee Aguirre Lutander, Chief Executive Officer.

Please go ahead.

Maria Turnson, Chief Operating Officer and President of U.S., Hansa Biopharma: Thank you.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Good afternoon and good morning everyone and welcome to the Hamza BioPharma conference call to review Q2 and half year results for 2025. I’m Renee Aguirre Lukander, CEO for Hamza BioPharma And joining me today is Evan Ballantyne, Chief Financial Officer Heath O’Kaufmann, Chief Scientific and Technology Officer and Maria Turnson, Chief Operating Officer and President of The U. S. Please turn to Slide two. Please allow me to draw your attention to the fact that we will be making forward looking statements during this presentation and you should therefore apply appropriate caution.

Please turn to Slide three. So this today, we’ll discuss the progress we’ve made in the 2025 and review the quarterly performance. I’ll also share my reflections and insights based on my first few months in the row. The presentation should take roughly fifteen to twenty minutes, after which there will be an opportunity to ask questions during a Q and A session. If you can please turn to Slide four for the significant achievements in the first half.

In the first half of twenty twenty five, the company achieved several notable achievements. Of note, in Q2, we stabilized the business through a directed share issue and the restructuring of existing debts held by Novacrest. Together, these actions ensure a cash runway into Q2 twenty twenty six and the opportunity to read out the two Phase three trials, the Confidus U. S. Trial in kidney transplantation and the GOODIGIS nine trial in anti GBM, both scheduled for readout later this year.

Additionally, we further bolstered the executive leadership team with the addition of Maria Turnsson, CEO and President of The U. S. And Doctor. Richard Phillipson, Chief Medical Officer, who just joined us this week. In Q2, the company significantly increased sales revenues as compared to previous year.

We continue to see an increase in transplant clinics with initial and repeat usage of Idifferx and we’re encouraged about the number of regional and local clinical consensus on the appropriate use of Itoferix as desensitization treatment for highly sensitized patients. Additionally, in the first half of the year, we completed enrollment of the Phase three post authorization efficacy and safety or PAES study in kidney transplantation. We expect the data readout for that trial to occur in middle of twenty twenty six. The 15 HMEDAL S09 Phase II study in Guillain Barre syndrome delivered positive results for Aimlifidase. This study was presented at a leading medical congress in Q2, and we look forward to following up with publishing the data during 2026.

Please turn to Page five. So as mentioned, the company posted solid financial performance in the first half of the year. Idaferric sales revenues for Q2 was CHF 47,900,000.0, representing a 76% increase when compared to Q2 twenty twenty four. Idifferic sales revenue for the 2025 amounted to SEK113.5 million, representing a 52% increase in idofuric sales revenues as compared to the same period last year and around 80% of full year product sales in 2024. As a consequence, the company’s total revenue in the 2025 represents a 27% increase as compared to the first half of twenty twenty four.

So it is important to note that full year 2024 Idifferix product sales were SEK140 million and we believe despite continued market volatility and quarterly variability that we are well positioned to significantly exceed this in 2025. Please turn to 2026 to Slide six. So as mentioned, there were two key financial catalysts for the company in Q2. The first was a successful capital raise of SEK $232,000,000 to support key data readouts in the second half of twenty twenty five, including KINFIDUS in kidney transplantation and GERDITA-two in anti GBM. Additionally, the company restructured the existing debt agreement with Novacrest.

The original agreement, which was set in July, has been amended to offset $14,800,000 of outstanding debt to new shares or equity for Novakrest. The remaining debt will be paid in fixed cash payments in June 2028 and in 2029. A true up payment of $14,900,000 is also due either in cash or in equity at the discretion of Hansa in January 2026. Please turn to Slide seven for a brief overview of operational and strategic progress. So today, it’s been almost three months since I joined Hansa.

And during this time, I focused on reducing the annual burn rate to ensure a sustainable operating base for the company and also work to simplify and clarify reporting lines to enhance transparency, accountability and speed of decision making. I can now report that the restructuring process has been completed and we expect that annual savings will exceed the previous estimates to amount to approximately SEK60 million on an annual basis. We’re obviously sad to see many extremely experienced colleagues leave us at this juncture, but the challenging and extremely volatile macro environment has, as you know, resulted in biotech companies taking a hard look at their cost basis and we’ve taken that responsibility very seriously as reflected by the rapid action. In conjunction with these actions, however, we will invest in systems and processes, market research and analytics to support productivity and efficacy across operational activities as well as select key U. S.

Market related competencies and expertise to support our pre commercial activities in The U. S. At this stage, I’m very happy with where the organization stands with regards to complementary expertise we’ve been able to attract and add to the highly experienced staff which Hanse already has in place. I believe that we will, at the end of the year, have an extremely strong, experienced and aligned team to execute on our strategic goals. On this basis, we look forward to the upcoming catalysts in the second half twenty twenty five, which I believe will put the organization in a position to truly leverage these strategic initiatives.

I’d now like to turn it over to Maria Turnsin, who joined the company in Q2 as Chief Operating Officer and President of The U. S.

Maria Turnson, Chief Operating Officer and President of U.S., Hansa Biopharma: Thank you very much, Rene. I am very excited to join Hansa at an important time for the company. I’ve spent the last several weeks assessing our priorities and current preparation for several key milestones in the second half of the year. In a few minutes, I’ll talk about the opportunities we have in the market. But first, I’d like to provide an update on the current European commercialization we saw an increase in the overall number of centers using IVIXRIX.

You may recall that last quarter, the PAES trial completed enrollment. And following this, 65% of these participating trial centers have now transitioned to commercial utilization. This affirms the fact that having both clinical experience and protocols in place to treat these highly sensitized kidney transplant patients is key to Idifferix utilization. We also continue to see an increase in the total number of centers with repeat utilization. Sixty percent of centers have had more than one positive clinical experience with Idifferix.

This is good news as it ensures that even more highly sensitized kidney transplant patients are gaining access to Idifferix and receiving a life changing organ transplant. As mentioned in previous quarterly reports, the access to organs continue to fluctuate based on country and regional organ allocation system. Earlier in the year, Germany decided to pause the UARTransplant Prioritization Program for highly sensitized kidney transplant patients. This is a program which is active in seven other European countries. And while German physicians can use Idifferix through the standard allocation system, this lack of this prioritized program impacted Q2 revenues from Germany.

We expect this to continue to have a negative impact over the near term. However, we are working with clinical, patient and public health communities to understand the potential impact on commercialization in Germany over the longer term. Earlier in the quarter, additional consensus guidelines were published in the journal Transplant. This consensus from Belgium marks the ninth country with guidelines supporting the use of Idifferix as a desensitization strategy and reinforcing its potential to be the standard of care in kidney transplantation for highly sensitized patients. Finally, in Q2, we secured access in two additional markets, Australia and Switzerland.

Idrisiris is now reimbursed in a total of 20 countries, including the five largest European markets. Please turn to Slide 10. I thought it was worth sharing the learnings from the European market and how the progress we have made here is helping us prioritize activities as we plan for entry into The U. S. Market.

As you may recall, there are one hundred and seventy thousand people on the kidney transplant waitlist in Europe and in The U. S. Of that, approximately twenty five thousand have a CPRA above ninety eight percent and are considered highly sensitized. And more than five thousand have a CPRA over ninety nine point nine percent. Without national prioritization programs and access to desensitizing treatment, these highly sensitized patients have a very low chance to receive a kidney transplant.

Adycereich therefore represents significant opportunity to transform kidney transplantation. Through commercialization of Adisthenics in Europe, we have gained several important learnings, which will help us as we prepare to enter The U. S. Market. Organ allocation systems can be complex and vary between countries and having local guidelines and centers that are clinically ready to use Idotherex is critical for success.

However, we need to remember that we will enter market with access to significantly more clinical data and experience compared to when we launched in Europe a few years ago. In addition to engaging with Clinician, we also need to establish an account approach to commercialization to ensure that the multidisciplinary team is educated on these anticipation and treatment guidelines. We will also focus on establishing a strong market access team to build relationships with the payer community and secure access for patients. Additionally, we are engaging with patient advocacy groups and policymakers to elevate the discussion on the unmet needs and changing the standard of care for highly sensitized patients. We are very excited and positive with regards to potential launch into The U.

S. Market assuming approval as we will have substantial multicenter clinical data from the Phase three study in The U. S. Several high volume, high quality transplant centers, as well as the readout of the PAES study from Europe in mid-twenty twenty six involving 50 patients. In addition to these substantial data sets, there is also significant real world data from Europe, which we believe will be supportive for adoption of this groundbreaking and innovative approach.

I will now turn it over to Hito to cover off on the progress we have made with the pipeline.

Heath O’Kaufmann, Chief Scientific and Technology Officer, Hansa Biopharma: Thank you, Maria. Please turn to Slide 12 for an overview of the pipeline. As you can see, we have eight programs in various phases in both desensitization and autoimmune disease. In desensitization, I’ll start with gene therapy. In collaboration with Genetor, we continue to enroll patients in the GMT018 IDIS Phase II program evaluating emlifidase as a pretreatment to Denafont’s gene therapy, GNT003 in Crigler De Najjar.

GNT003 is currently being evaluated in the pivotal clinical study in France, Italy and The Netherlands and has received prime status from the European Medicines Agency. We look forward to reporting out on top line data later this year. Additionally, we continue to progress with Sarepta Phase Ib trial in Duchenne muscular dystrophy evaluating the effectiveness of emphyseidase as a pretreatment to elafidase Sarepta’s gene therapy. Again, we look forward to sharing initial data later this year. In May, data from the 15H MET ADIUS SO9 Phase II study of omelifidase in Guillain Barre syndrome, also known as GBS, were presented at the Peripheral Nerve Society Annual Meeting in Glasgow.

This was followed by a deep dive discussion we hosted with key opinion leaders, Doctor. David Kornbleth, John Hopkins University and Simon Renaldi, MRCP PhD, University of Oxford. And we look forward to publishing the data later this year. Please turn to Slide 13 for a summary of the Confidus Phase three pivotal trial in kidney transplantation. As Maria mentioned, there is significant unmet medical need when it comes to highly sensitized kidney transplant patients.

The Concytis U. S. Pivotal Phase III trial was fully randomized in May 2024. There are 23 participating centers in the trial, which is an open label controlled randomized trial evaluating kidney function in 64 highly sensitized CBRA 99.9 and above kidney transplant patients with positive cross niche against the disease donor comparing desensitization using amlifidase with standard of care. The primary endpoint of the trial is kidney graft function at twelve months measured by estimated glomerular filtration rate called eGFR.

The total trial duration is five years including a long term follow-up as agreed with the U. S. FDA as part of the accelerated approval pathway. We look forward to sharing top line data from Confidus trial later this year followed by a BLA submission to the U. S.

FDA. Please turn to Slide 14 for a look at the GOOD study in anti GBM. We anticipate that we will have data from the GOOD IDIS-two Phase three trial in anti GBM later this year. As a reminder, the GOOD IDIS-two trial is a Phase three open label controlled randomized multi center trial across Europe and The U. S.

And is evaluating renal function and the need for dialysis at six months in patients with severe anti GBM disease. Encouraged by our Phase II data, which showed that ten out of fifteen patients were dialysis independent after stage one versus the historic cohort where only eighteen percent were dialysis independent at this point in time. These results were published in JESSEN in 2022 and we believe enlifidase has significant potential in improving the outcome of these patients and address the unmet medical need. Enlifidase has been granted orphan drug designation for the treatment of anti GBM disease by both U. S.

Food and Drug Administration and the European Medicines Agency. I’d like to now turn over to Evan to cover financial performance.

Evan Ballantyne, Chief Financial Officer, Hansa Biopharma: Thank you very much, Ito. Total revenues for Q2 twenty twenty five were SEK49.1 million representing a 43% increase compared to Q2 twenty twenty four of SEK34.3 million. Pideforix product sales for Q2 twenty twenty five were SEK48 million representing a 76% increase compared to Q2 twenty twenty four. Product sales for the 2025 totaled SEK113.5 million, representing a 52 percent increase compared to the same period a year ago. As Renee mentioned, we continue to see fluctuation in our performance quarter over quarter.

However, it should be noted that year over year performance continues to increase. Quarterly volatility represents the unpredictability of the organ allocation market. We expect this fluctuation to diminish over time, having recently completed the post approval efficacy study and Esfonza continues to enter new markets. You’re already there, next slide. For Q2 twenty twenty five, SG and A expense totaled approximately SEK90.5 million, which was 2.6% unfavorable compared to Q2 twenty twenty four.

SG and A expenses in Q2 twenty twenty five included a SEK21 million reserve to reflect restructuring actions taken by the company in late Q2 to reduce costs and improve operating efficiency. Excluding the impact of the restructuring charge, PONZA’s SG and A expenses would have been 20% favorable compared to the same period a year ago. R and D expenses in Q2 twenty twenty five totaled approximately million and were 4.4% unfavorable compared to Q2 twenty twenty four expense of SEK 91,700,000.0. R and D expenses in Q2 twenty twenty five also included a restructuring charge. Excluding the impact of the restructuring charge, R and D expenses in Q2 twenty twenty five were essentially flat compared to the same period a year ago.

In Q2 twenty twenty five, financial income and expense net represents a charge of approximately million compared to a SEK20.5 million charge in Q2 twenty twenty four. Changes in financial income and expense compared to the same period a year ago were primarily driven by favorable changes in the U. S. Dollar exchange rate against the Swedish krona, non cash interest expense related to the NovaSeq note and a SEK59.4 million charge taken by the company to reflect the NovaSeq loan restructuring modification. In Q2 twenty twenty five, the company’s operating loss was SEK154.8 million or 17% favorable compared to Q2 twenty twenty four of SEK187.4 million.

For the first half of twenty twenty five, Hans’ operating loss was 28% favorable compared to the same period a year ago. On a year to date basis, ONZ’s cost of sales was approximately million favorable compared to the first half of twenty twenty four. The company’s gross margin in the 2025 was 66% compared to 35% in 2024. The improvement in Hansa’s Q2 and year to date operating loss was driven by increased sales, a substantial improvement in the company’s gross margin associated with a lower cost of goods sold and a reduction in expenses across all departments, a very positive trend. Next slide, 18.

Cash used in operations in Q2 twenty twenty five totaled million, an improvement of SEK77.5 million compared to the same period a year ago. For the period ended 06/30/2025, cash and cash equivalents totaled SEK354.4 million. With the recent capital raise and debt restructuring, the company has extended its cash runway into early Q2 twenty twenty six. And now, I would like to turn the presentation back to Renee for closing remarks and for the Q and A portion of the call. Renee?

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Thank you, Evan. So with this overview, our presentation is now concluded and we’d be happy to open it up for any questions. Operator?

Conference Operator: Today’s first question comes from Shushila Hernandez with Van Lanshaw Kempen. Go ahead.

Shushila Hernandez, Analyst, Van Lanshaw Kempen: Yes. Thank you for taking our questions. Two from our side. So on the euro transplant desensitization program that was closed in Germany, are you expecting an update from the other European countries where it’s still active? Do you anticipate disclosing in these countries?

And then a second question on your Sarepta partnership. So yesterday Sarepta announced restructuring and strategic changes. With this current sequence of events, how does Sarepta look at your partnership? And what kind of data can we expect this half of the year? Thank you.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: So, you. No, so we’re not expecting this to kind of be the case in other countries or regions. We have had no information, data or kind of any signs of that being the case. I do think that historically as well, I think Germany has had a quite a kind of conservative approach generally to transplantation, but we have no kind of reason to believe that this is going to be the case. So with regards to Sarepta, yes, you are correct indeed.

There was another interesting release obviously from them yesterday. I guess in terms of any potential impact on our program with them, I guess my point of view is that obviously, if anything, this would probably mean that Sarepta is going to be even more interested, think, and really kind of want to try to reach all patients on label with their kind of commercial drug. So I don’t see that the kind of restructuring or any other the other kind of actions that Sarepta is taking would have any negative impact on our program at all, quite the opposite. I think obviously there is the outstanding question of limb girdle, which also is covered by our contract with Sarepta. And with that, I don’t have any kind of particular updates on that from Sarepta as of yet.

But I think that obviously with regards to the vast majority, obviously here is with regards to the DMD program. And I think that, as I said, from our perspective, I think that this really should make it more even more interesting and exciting, I think, for both of us to continue with that program. I don’t know, Heathrow, if you have any additional comments on that.

Heath O’Kaufmann, Chief Scientific and Technology Officer, Hansa Biopharma: Thanks, Renee. I would just add because you also asked about the sort of what type of data are we generating in the study that’s currently ongoing. What Srepta and Hunter would like to demonstrate is that through the conditioning treatment with omelifidase, we can bring down the anti AAV antibody levels and enable virus transduction. And that’s how the study is designed. Ultimately, demonstrate that the transcript is expressed in the relevant tissue and that’s the type of data we expect to have this year.

Shushila Hernandez, Analyst, Van Lanshaw Kempen: Okay. Thank you so much.

Conference Operator: Thank you. And our next question today comes from Matt Phipps of William Blair. Please go ahead.

Matt Phipps, Analyst, William Blair: Hi. Thanks for taking my call question on the call. Do you guys have a sense of what you will be able to disclose in the top line release from the CONFIDES trial? Just wondering if it will be purely qualitative or maybe get some of the numerical eGFR data. And then it seems like there has not been any comments on 05/1987.

Just wondering if any of the plans for that program have changed. Thank you.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Sure. So I’ll briefly cover the 05/1987. And then Hito, I will hand over to you for the confidus top line. So in terms of the 05/1987, so yes, that is something where you can squarely blame me for that update. So actually what we are doing since I’ve been here for a fairly short period of time, I do want to kind of go through in some detail in terms of what the best kind of positioning and indication etcetera is for 05/1987.

So we are in the midst of an internal review of that really involving all aspects, kind of the market aspect as well as kind of the profile of the drug. We are going making a fairly kind of significant just kind of internal assessment and review to make sure that whatever kind of clinical plans we then present with regards to five thousand four hundred eighty seven are well anchored and aligned within the entire organization. So we will be sharing that probably my guess is that we’ll probably share that publicly in Q4 would be my best guess at this point in time. Victor?

Heath O’Kaufmann, Chief Scientific and Technology Officer, Hansa Biopharma: Thanks, Rene. We have not yet shared in detail what we will disclose as part of the top line results, But the clear focus is, a, on the primary endpoint, which is EGFR measured twelve month post transplant. So that will of course be something that we will have done some statistical analysis of this to see whether we have reached that primary endpoint with a statistical significance. The other thing we obviously will be looking at very early on is any safety signals. And so that’s roughly what you could expect for a top line results, Matt.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Thank you.

Conference Operator: All right. Thank you. Our next question today comes from Douglas Sowe with H. C. Wainwright.

Please go ahead.

Douglas Sowe, Analyst, H.C. Wainwright: Hi, good morning. Thanks for taking the questions. So Renee to confirm on 05/1987, it sounds like the prior guidance in terms of positioning for a pursuit of indications is kind of on pause and that you’re going to just reconsider whether things like MG are necessarily the right indication for the sort of initial clinical work? And then as a follow-up, I’m just curious in terms of Germany and neurotransplant, do you have a sense of what the catalyst was for them to stop the program? Thank you.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Thanks. So I will hand over to Maria for the background on the kind of German decision. And so yes, you are correct. I do think that it is particularly in these kind of times that we live in, I do want to make absolutely sure that when we make a decision to spend significant dollars in any kind of clinical research program that we have an extremely clear view on how we can possibly accelerate that as much as possible, how we can target that market and truly kind of be a dominant player in that market. And so I think we really need to make sure that we’ve done the homework in

Douglas Sowe, Analyst, H.C. Wainwright: order

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: to ensure that the indications that we will choose are the right ones. And I think obviously in this case, it’s a good problem to have, but I think this enzyme could actually be used in quite a variety of ways and indications. And so I think it’s a little bit of just making sure that we have assessed all of those different options and that when we do kind of come out, we are very clear on the rationale for the positioning of 05/1987. So that is correct. Maria, I will hand over to you with regards to Germany.

Maria Turnson, Chief Operating Officer and President of U.S., Hansa Biopharma: Sure. And thank you for the question. So within the Europe Transplant zone, there are several countries that collaborate on organ allocation and guidelines and things like that. And there are two programs. There’s a general allocation program and there’s a program for the highly sensitized patients, which has been in place for a couple of years.

In Germany, that is the highly sensitized program that has been paused for the moment. Would like to say that this has nothing first of all, this has nothing to do with the belief in Idifferis as a product. What it has to do with is, I think a couple of things. If you look historically, Germany has had an organ transplant scandal many, many years ago, and there’s a general hesitancy in terms of how to transplant organs in Germany. So that’s sort of the situation that has been the case in Germany for many years.

When comes it to these highly sensitized patients, they end up in this priority program for specific reasons. Let’s say they’ve had a previous transplant, they have been pregnant, they’ve had a blood transfusions, you know the reason why they are highly sensitized. And in Germany, what they have really been discussing is this health equity that certain patients end up in this program. So that is the reason for the pause is that they are really evaluating how do you ensure that you treat everybody the same and health equity and equal care for all patients that may be in need of a transplant. So it has nothing to do with the belief in Adafirix.

We have physicians in Germany that have used Adafirix in transplants and have had great success. So this is the strong belief among the German physicians in the product itself. It only has to do with the health equity part of it.

Douglas Sowe, Analyst, H.C. Wainwright: Okay, great. That’s helpful. And I guess Maria just as a follow-up in terms of those physicians who do believe strongly in it, then sort of counterbalance with the sort of health equity issues. So it sounds like this is to some extent a little bit more of a political issue than a clinical issue. And how does that necessarily over the long term impact the commercial opportunity in Germany?

And then just a quick follow-up also in terms of the restructuring that you saw from the cost agency, is there any impact in terms of the size of the European commercial organization? Thank you.

Maria Turnson, Chief Operating Officer and President of U.S., Hansa Biopharma: So I’ll follow-up on that, your transplant question. So you are correct that like the physicians in Germany, they believe in the product. We have had successful transplantations in Germany for several years and they can continue to transplant through that general allocation system in Germany. We saw an impact in Q2 as we disclosed. We are expecting that it’s going to have a near term impact as we work through this by obviously speaking to German physicians and other policymakers and other stakeholders in Germany to see what is the best path forward.

At this point in time, we’ve said that in the near term, we expect that this will continue to have an impact in Germany. But obviously, we are looking at the long term effect. We are evaluating that. And at this point in time, there’s nothing that I can comment on because we are in discussions at the moment. Renee, do you want to take the restructuring question or?

Douglas Sowe, Analyst, H.C. Wainwright: Sure.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: So with regards to the restructuring, we in terms of the impact on the European commercial kind of group organization, there was virtually very, very limited or hardly any, I would say, impact on the European organization. So it was very limited. There were some, but it was very limited in terms of the impact on the commercial organization.

Douglas Sowe, Analyst, H.C. Wainwright: Okay, great. Thanks for all the answers.

Conference Operator: Thank you. And this concludes our question and answer session. I’d like to turn the conference back over to the company for any closing remarks.

Renee Aguirre Lutander, Chief Executive Officer, Hansa Biopharma: Thank you very much to everybody who’s listened in to this Q2 report and we look forward to a very exciting rest of the year here at Hanse. Thank you.

Conference Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.

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