Pete Lucas

Pete Lucas asked for more details on the competitive landscape within the Alzheimer's imaging market, particularly for tau tangle imaging, and how MK-6240 is positioned against other products.

Answer

CEO Brian Markison described MK-6240 as a second-generation tau agent with demonstrated superiority in studies compared to commercially available options like Talvet. He emphasized the increasing importance of tau imaging for staging and longitudinal management of Alzheimer's disease.

Pete Lucas asked for more color on the competitive landscape in the Alzheimer's imaging market, specifically on the tau tangle side, and how MK-6240 is positioned against other products.

Answer

Brian Markison, CEO, described MK-6240 as a second-generation tau agent, highlighting its reported superiority in head-to-head studies compared to commercially available agents like Talvet, and emphasized tau's increasing importance in staging and longitudinal management of Alzheimer's disease.

Pete Lucas of CJS Securities, on behalf of Larry Solow, asked about the recovery path for the Engineering segment's operating margins and their potential to return to and exceed mid-teens levels.

Answer

CFO Marco Dal Lago confirmed progress, with the segment reaching a 15.3% operating margin in Q4, and stated the goal is to resolve project delays by mid-2025. Chairman and CEO Franco Stevanato added that beyond fixing delays, the company is optimizing the segment's cost structure and footprint to improve efficiency and capture future growth in biologics.

Pete Lucas inquired about the drivers of the Flight Support Group's strong organic growth, asking if it stemmed from deeper penetration with existing customers or expansion to new ones, and questioned the outlook for the segment's high operating margins.

Answer

Eric Mendelson, Co-President, confirmed that growth is primarily from deeper market penetration with existing customers who desire more cost-saving solutions. Regarding margins, he expressed reluctance to forecast increases beyond the current 26% EBITA level, despite a consistent upward trend, attributing success to an experienced, efficient team rather than aggressive pricing.