Jaime Escribano

Jaime Escribano from Banco Santander requested a summary of the Canadian operations, including products, timing, and potential. He also asked about the expected timeline for the subcutaneous IG indication in CIDP and its potential revenue impact.

Answer

CEO Nacho Abia explained the Canadian operation is a long-term partnership to increase the country's self-sufficiency, currently producing albumin with plans to add immunoglobulins later. President of BioPharma Roland Wandeler stated that the Subcutaneous IG for CIDP is a key driver, with a Phase III trial starting now and a market launch expected in a 'couple of years,' which would allow them to compete for a market share similar to their IVIG franchise.

Jaime Escribano inquired about the timeline for Canadian revenues, the manufacturing strategy for fibrinogen, the drivers behind the strong market-wide growth in IVIG and subcutaneous IG, trends in donor fees, and the company's capital allocation plans if the Biotest bid is not fully successful.

Answer

CEO Nacho Abia confirmed that Canadian operations are expanding with local manufacturing planned, and that fibrinogen production will start in Germany before moving to the U.S. President of Biopharma Roland Wandeler attributed strong IG growth to increased diagnosis rates and IG's efficacy as a first-line therapy. An executive noted donor fees are being optimized through improved donor experience. CFO Rahul Srinivasan stated that the company's capital allocation framework remains firm regardless of the Biotest offer's outcome.

Jaime Escribano of Santander sought to reconcile the full-year EBITDA guidance of EUR 1.8 billion, questioning the interplay between top-line growth, gross margin, and OpEx. He also asked if selling plasma to third parties was still a potential lever to boost free cash flow.

Answer

CEO Nacho Abia stated that selling plasma to third parties is not on the table. To reconcile the EBITDA guidance, he explained that the Q2 gross margin was impacted by a 250 basis point provision for inventory. Excluding this, the margin would have been higher than Q1, and he expects further improvement from a better product mix, lower plasma costs, and higher sales in the second half of the year.

Jaime Escribano from Santander questioned the comfort level with the current EUR 700 million liquidity position, given upcoming commitments like ImmunoTek payments. He asked about potential strategic asset sales to further reduce debt and whether a capital increase was being considered to deleverage.

Answer

CEO Nacho Abia affirmed that the company is comfortable with its current liquidity, considering anything above EUR 500 million as an operable level. He noted that while a portfolio analysis is underway, it is too early to comment on specific asset sales. He definitively stated that there is 'absolutely no plan at this point to consider a capital increase.'