Priyanka Nagpal

Priyanka Nagpal sought clarification on Ultragenyx's strategy to achieve profitability in 2027, given the $466 million burn in 2025, and asked for a reminder on the number of drug launches expected to contribute to the 2027 top line.

Answer

Emil Kakkis, Chief Executive Officer and President, and Howard Horn, Chief Financial Officer, explained that profitability will be driven by continued double-digit growth from current products, contributions from upcoming launches, and significant expense reductions. Howard Horn detailed expected combined R&D and SG&A expenses to be flat to down low single digits in 2026 versus 2025, and down 15% or more in 2027 versus 2025, partly due to capitalization of manufacturing costs post-approval and elevated gross margins from prior expensing of pre-approval inventory. The plan also considers two PRVs.

Priyanka Nagpal asked for more color on how Ultragenyx plans to achieve profitability in 2027, given a 2025 burn of approximately $466 million, and requested a reminder of how many drug launches will contribute to the 2027 top line.

Answer

CEO Emil Kakkis indicated that profitability will be driven by continued double-digit growth from current products and contributions from upcoming launches. CFO Howard Horn elaborated, stating that the pathway to profitability assumes continued revenue growth and significant expense reductions. He noted expectations for combined R&D and SG&A to be flat to down low single digits in 2026 versus 2025, and down 15% or more in 2027. Horn also mentioned considering two PRVs as part of the plan and highlighted P&L dynamics like reduced R&D due to capitalization of manufacturing costs post-approval and elevated gross margins from prior expensing of pre-approval inventory.