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LH 2025 Q4 财报电话会议

Operator: Good day, and thank you for standing by. Welcome to the Q4 2025 Labcorp Holdings Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Christin O'Donnell, Vice President of Investor Relations. Please go ahead. Christin O'Donnell: Thank you, operator. Good morning, and welcome to Labcorp's Fourth Quarter 2025 Conference Call. As detailed in today's press release, there will be a replay of this conference call available. With me today are Adam Schechter, Chairman and Chief Executive Officer; and Julia Wang, Executive Vice President and Chief Financial Officer. This morning, in the Investor Relations section of our website at www.labcorp.com, we posted both our press release and an Investor Relations presentation with additional information on business and operations, which includes a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. Please see the use of adjusted measures section in our press release and Investor Relations presentation for more information regarding our use of non-GAAP financial measures. Additionally, we are making forward-looking statements. These forward-looking statements include, but are not limited to, statements with respect to the estimated 2026 guidance and the related assumptions, the projected impact of various factors on the company's businesses, operating and financial results, cash flows and/or financial condition, including global economic and market conditions, future business strategies and expected savings, benefits and synergies from acquisitions and other strategic actions and partnerships and opportunities for future growth. Each of the forward-looking statements is subject to change based upon various factors, many of which are beyond our control. More information is included in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q and in the company's other filings with the SEC. We have no obligation to provide any updates to these forward-looking statements even if our expectations change. Now I'll turn the call over to Adam Schechter. Adam Schechter: Thank you, Christin, and good morning, everyone. We appreciate you joining us to review our fourth quarter and full year 2025 performance and our outlook for 2026. 2025 was a very strong year for Labcorp with over 7% top line growth, 13% adjusted EPS growth and with margins also improving by over 50 basis points. With the momentum that we have, we expect strong underlying business performance in 2026. As we look back at 2025, we made significant progress across our strategic priorities. We deepened our partnerships with health systems and regional and local laboratories by signing or closing 13 deals. The transactions we have closed in this area over the past three years have contributed to growth of more than $1 billion in revenue and have expanded access to our broad portfolio of routine and specialty testing. In the fourth quarter, we entered into an agreement to acquire select outreach laboratory services from Parkview Health. We completed our acquisition of select outreach assets from Community Health Systems, and we acquired select anatomic pathology assets from Incyte Diagnostics. Subsequent to the quarter, we completed our acquisition of select assets of Empire City Laboratories. We continue to have a very robust pipeline of opportunities, and we look forward to updating you on our progress. We also advanced our leadership in specialty testing with providers, health systems and pharmaceutical clients. They're increasingly turning to us for more complex and innovative laboratory testing. In fact, esoteric testing grew double digits last year. And when physicians choose Labcorp for specialty testing, they tend to use Labcorp for all of that patient's testing needs. This will continue to be a key growth engine, including in our central laboratory business, where utilization of specialty testing in clinical trials continues to increase. In 2025, we launched more than 130 new tests. The majority of those were in strategic and high-growth areas, including oncology, women's health, neurology and autoimmune disease. We also successfully integrated Invitae, expanding our leadership in genetic testing solutions. Recently, we added several new specialty tests. In January, we expanded access to MRD testing for Stage I through III breast cancer, stage I through IIIA non-small cell lung cancer and Stage III colon cancer to help detect recurrence earlier than traditional imaging. In oncology, we now offer comprehensive and advanced testing capabilities with over 450 tests for many types and stages of cancer. We also advanced our leadership in neurology and launched the first FDA-cleared blood test for Alzheimer's disease assessment in the primary care setting. This will enable broader access and better and more timely patient care. And in Consumer Health, we saw strong growth as consumers look to take more control of their health and wellness. Last year, Labcorp OnDemand continued to expand and now offers tests for over 200 biomarkers in categories like men's and women's health, cancer screenings, sexual health and longevity. In the quarter, OnDemand launched new tests for food allergies, micronutrients and thyroid health. We also continue to make significant progress through technology and AI-powered solutions to accelerate innovation to improve quality, to enhance customer experience and to operate more efficiently. For example, we launched AI and automation in areas such as pathology, cytology and microbiology. Recently, we announced that Labcorp became the first U.S. commercial laboratory to enter in an agreement to implement Roche's fully automated mass spectrometry solution. In addition, we improved the customer experience in several areas. AI-powered solutions simplified appointment scheduling and results reporting for consumers. Our AI test finder experience for physicians helps them find the right lab test in seconds, freeing up time for patient care. And Labcorp's Global Trial Connect will help to accelerate clinical trials for investigator sites and for sponsors. Finally, we announced a strategic investment to build a new central laboratory facility to support growth and demand, which will enable us to deliver more integrated connected experience for customers. Construction of the new state-of-the-art 500,000-plus square foot laboratory and kit production facility is expected to begin later this year. Our strategic focus and disciplined execution drove strong financial results in 2025. In the fourth quarter, enterprise revenue increased 6%. Margins improved 120 basis points and adjusted EPS grew 18%. Diagnostics revenue increased 6% with organic growth of over 4%. Central Laboratory revenue increased 11% or 8% constant currency and as expected, early development revenue declined. The Biopharma Laboratory Services segment book-to-bill in the quarter reached 1.16 and the trailing 12 months was also strong at 1.09. Our central laboratory business saw strong demand, underscored by wins in oncology, neurology and also in cardiometabolic studies. Free cash flows from continuing operations were $490 million. Based upon the momentum of our business going into 2026, we expect full year enterprise revenue growth of 5.4% at the midpoint of our guidance, improved margins across both segments and adjusted EPS growth of approximately 9%. This outlook reflects the delay of PAMA through December 31, 2026. While we are pleased by the delay, permanent reform is necessary, and we will continue to advocate for the passage of the RESULTS Act this year. Finally, Mark Schroeder, Executive Vice President and President of Diagnostics and Chief Operations Officer; and Sandy Van der Vaart, Executive Vice President, Chief Legal Officer and Corporate Secretary, will be retiring, April 1. It has been a privilege to work with Mark and Sandy. They have made extraordinary contributions, shaped our strategy, developed strong talent and strengthened our ability to deliver on our mission. Their successors have been appointed following a thoughtful succession plan, and we look forward to introducing them to you in the coming months and as we plan for an Investor Day later in the year. With that, I'll turn the call over to Julia to discuss our financial results and 2026 outlook in greater detail. Julia Wang: Thank you, Adam. My remarks today will focus on our adjusted financial results. Please see our earnings press release and supplemental financial presentation for detail on our GAAP results. In 2025, we made meaningful progress on our strategic priorities and delivered strong financial results. In comparison to prior year, enterprise revenue grew over 7% and enterprise margins expanded over 50 basis points, driven by ongoing strong performance in Diagnostics and Central Labs. Our LaunchPad initiative also delivered savings for the full year, in line with our long-term target of $100 million to $125 million per year. Adjusted EPS grew 13% and free cash flow of $1.2 billion grew 10%. We ended the year with a strong trailing 12-month book-to-bill of 1.09, driven by Central Labs. Now turning to fourth quarter results. Revenue was $3.5 billion, an increase of 5.6% compared to last year, driven by organic growth of 3.8%, the impact from acquisitions of 1.2% and foreign currency translation of 0.6%. Adjusted operating income was $488 million or 13.9% of revenue compared to $423 million or 12.7% of revenue last year. The increase in adjusted operating income and operating margin was primarily driven by organic growth in Diagnostics and Central Labs. The adjusted tax rate was 22.5% compared to 22.4% last year. Adjusted EPS was $4.07, up 18% from last year. Free cash flow was $490 million compared to $665 million last year. The decrease in free cash flow was primarily driven by working capital timing. During the quarter, we invested $258 million in acquisitions, paid out $59 million in dividends and repurchased $225 million of stock. We continue to have a robust pipeline of potential acquisition opportunities that meet our financial criteria and will supplement our organic growth. In addition, our share repurchase program and dividend continue to be important parts of our capital allocation strategy. The company currently has approximately $800 million of share repurchase authorization. At year-end, we had $532 million in cash, while total debt was $5.6 billion. Our debt leverage as of year-end is 2.3x gross debt to trailing 12-month adjusted EBITDA, reflecting a disciplined leverage position. Now I will review our fourth quarter segment performance, beginning with Diagnostics Laboratories. Revenue was $2.7 billion, an increase of 5.5% compared to last year, with strong organic growth of 4.1% and acquisitions contributing 1.5%. Total volume increased 2.2% with organic volume and acquisitions each contributing 1.1%. Price/mix increased 3.3%, with organic price/mix contributing 3%, primarily due to an increase in test per session. Acquisitions contributed 0.3%. Diagnostics adjusted operating income was $419 million or 15.4% of revenue compared to $360 million or 13.9% of revenue last year. Adjusted operating margin was up 150 basis points, primarily driven by organic growth, which includes Invitae. Now I will review the fourth quarter segment performance for Biopharma Laboratory Services or BLS. Revenue was $793 million, an increase of 3.4% compared to last year due to an increase in organic revenue of 0.6% and foreign currency translation of 2.8%. In the quarter, Central Labs performed well and revenue grew 11.1% or 7.7% constant currency. Early development revenue was down 13.5% or 15.1% constant currency, and we continue to focus on streamlining our business, which will reduce annual revenue by $50 million and increase operating income. The actions began in the fourth quarter 2025, and we expect to be largely completed by the end of the second quarter. BLS adjusted operating income was $136 million or 17.2% of revenue compared to $131 million or 17% of revenue last year. Adjusted operating income and operating margin were slightly up due to Central Labs revenue growth. We ended the quarter with a backlog of $8.7 billion, and we expect approximately $2.7 billion of this backlog to convert into revenue over the next 12 months. Our segment quarterly book-to-bill and trailing 12-month book-to-bill was strong at 1.16 and 1.09, respectively. Now I will discuss our 2026 full year guidance, which assumes foreign exchange rates effective as of December 31, 2025, for the full year. The enterprise guidance also includes the impact from currently anticipated capital allocation, utilizing free cash flow for acquisitions, share repurchases and dividends. Beginning with the enterprise, we expect revenue to grow 4.7% to 6% compared to prior year. This includes the tailwind from foreign currency translation of approximately 40 basis points. We expect Diagnostics revenue to be up 5% to 6% compared to 2025. This guidance assumes the majority of revenue growth comes from organic growth. We expect BLS revenue to grow 3% to 5% versus prior year. This guidance incorporates the actions taken in early development and a tailwind from foreign currency translation of 170 basis points. For the full year, we expect Central Labs to grow mid-single digits organic constant currency, with early development relatively flat, improving throughout the year. We expect enterprise margins to increase with margins improving in both Diagnostics and BLS in 2026 versus 2025. BLS margins are expected to expand more than Diagnostics, reflecting continued strong top line growth in Central Labs and operating efficiencies in early development as we streamline the business. As an enterprise, we anticipate our LaunchPad initiatives to deliver savings for the full year 2026, in line with our long-term target of $100 million to $125 million per year. We expect our adjusted tax rate for 2026 to be approximately 23%, and we expect net interest expense of approximately $230 million. Our guidance range for adjusted EPS is $17.65 to $18.25 with an implied growth rate at the midpoint of approximately 9% and includes an impact from adverse weather year-to-date. Our free cash flow guidance range is $1.24 billion to $1.36 billion. And due to normal seasonality, we expect it to be weighted towards the second half of the year. We expect 2026 capital expenditures to be approximately 4% of revenue, higher relative to prior year as we began investing in a new strategic facility to support long-term growth in our central lab service operations. In summary, we are encouraged by the underlying strength of our businesses. As we move into 2026, we expect to drive continued profitable growth and strong free cash flow generation that will be utilized for acquisitions that support our strategy and supplement our organic growth while also returning capital to shareholders through our share repurchase program and dividends. As we look ahead, we are confident in our ability to deliver sustainable growth and long-term value for our shareholders. Now I will turn the call back over to Adam to provide closing remarks. Adam Schechter: Thank you, Julia. I'd like to thank our Labcorp team members for their contribution to a very successful year. It's because of their commitment to our mission that Labcorp was recently named to Fortune World's Most Admired Companies list. In summary, we delivered strong financial performance in 2025. We made significant progress against our strategic priorities, and we expect strong performance in 2026. We remain focused on growth, disciplined execution and creating sustainable long-term value for our customers and our shareholders. We look forward to discussing our progress throughout the year. Operator, we'll now take questions. Operator: [Operator Instructions] And our first question comes from Michael Cherny of Leerink Partners. Daniel Christopher Clark: This is actually Dan Clark on for Mike. Just wanted to ask on 2026 guidance. How are you kind of thinking about the contributions from price and margin -- price and volume, excuse me, kind of at the high and low ends of the range at this point? Adam Schechter: Yes, sure. So first of all, if you look at our 2026 guidance, we expect another very strong year. And we expect that with the midpoint of our revenue growth being about 5.4%, and we expect both segments to perform well. I think you're probably referring to the volume in the Diagnostics segment. If you look at Diagnostics, we're expecting the revenue to grow 5% to 6%, and we expect the majority of the revenue growth to come organically. And if you look at the guidance, we assume about half of the organic growth will come from volume and about half will come from price/mix, pretty similar to what you saw this year. Julia Wang: Dan, to add to that, I'd like to provide some color on our margin trajectory under a broader context. I would say that as an enterprise, we have been highly focused on delivering strong top line growth while driving operating efficiencies, which translates into margin expansion. In this regard, we are really pleased with the progress that we made in 2025, which positions us with positive momentum as we head into this year. So for full year 2025, we expanded our enterprise margin by over 50 basis points, and the margin growth was supported by both segments, with Diagnostics margin being up about 50 basis points and BLS margin was up 40 basis points. If you step back, look at the key drivers of the margin expansion, it was really coming from the strong top line growth, coupled with disciplined expense management and continued execution of our LaunchPad initiative. Looking forward to 2026, we actually expect another year of meaningful margin improvement by both segments. I would also add that if you look at the contribution in terms of margin progression versus last year, we expect the BLS segment to improve more than the Diagnostics segment as we continue to drive strong top line growth in Central Labs while streamlining the ED business. So all in all, we are pleased with the margin progression, and we believe it positions us for continued success in 2026. Daniel Christopher Clark: Great. Just a quick follow-up. How should we think about contributions from Invitae this year, given that you did a pretty good job integrating it thus far? Adam Schechter: Yes. So the Invitae integration went extraordinarily well. And in fact, it's so integrated, it's almost impossible to pull out any longer because if you look at the Invitae lab, for example, in San Francisco, we now are running tests that historically ran in some of our diagnostic labs. If you look at the sales forces, they're now completely combined. So we expect strong revenue growth as one of our specialty areas. We expect that to grow to 2 to 3x faster than the overall market. But we won't be breaking out Invitae any longer specifically. Operator: And our next question comes from Kevin Caliendo of UBS. Kevin Caliendo: The fourth quarter organic volume was lighter than normal, up 1%. Was there anything in particular to call out there? It was sort of one of your -- given the volume trajectory that you saw in the guidance what you imply in '26, it seems an outlier, but I just want to understand it a little bit better. Adam Schechter: Yes. Let me give you some specifics on that, Kevin. So first of all, if you start with the Diagnostics revenue, it was $2.7 billion, around 6% growth versus last year. The organic growth was strong. It was 4.1% and the acquisitions were about 1.5%. If you then kind of break it back further, the volume increased 2.2% and organic volume was about half of that, acquisitions was the other half. If you look at the organic volume, there were two things to look at that impacted it. First of all, there were lower referrals from a large consumer genetic client who experienced financial challenges during the fourth quarter. And there was just a little bit from weather. If you just adjusted for those two, Kevin, it would have been over 2% growth, which is consistent with the full year. As we think about 2026, we expect strong growth in the Diagnostic business of 5% to 6%, 5.5% at the midpoint. And that assumes about half of it will come -- or the majority of the revenue will come organically. And if you look at the organic growth, about half will come from volume, half from price mix, about the same as this year. Kevin Caliendo: So that one customer that was just -- a fourth quarter, it sounds like that's really the issue here, and that was a fourth quarter thing that's not going to continue or no longer... Adam Schechter: That's correct. Operator: And our next question comes from Ann Hynes of Mizuho. Ann Hynes: So when you look at your 2026 guidance, where do you think maybe you're being the most conservative? And alternatively, where do you think the biggest risks are? Adam Schechter: Yes. Thanks, Ann. So as I look at the enterprise guidance for 2026, I feel really good about it. And if you look at the -- it's really 4.7% to 6% revenue guidance and the EPS guidance implies about a 9% growth at the midpoint. If you look at the pushes and pulls, I'll focus on diagnostics first. We expect the utilization environment to be healthy. We're seeing these industry trends that I talked about before, aging population, a number of tests that people are getting, lots of positive trends in that direction. But of course, slightly higher or lower organic volumes could move us within the range to the high end. If you think about the underlying business and business development pipeline, that's strong and the timing of M&A could impact us one way or the other. So we have a very strong pipeline of M&A, but we're going to continue to see how quickly we can turn that pipeline into revenue. If you look at biopharma side, if you look at the Central Labs, we expect to see solid organic mid-single-digit growth, and you can see the strong trailing 12-month book-to-bill that will support that. And that's a very backlog-driven business. So I feel good about the guidance. If you think about early development, we expect to see organic growth relatively flat for the full year. It will be driven partly by how quickly we either consolidate or we've already sold the $50 million of impacted revenue. We expect that to impact us started in the fourth quarter, but the majority will be done by the end of the second quarter. And it's just the timing of that, that can impact us a bit one way or the other. Those would be the big pushes and pulls. Ann Hynes: And just as a follow-up, do you think there's any change to the competitive landscape in the diagnostic business? And when you look at like the break of test, I know there's like a lot of these consumer tests happening. How do you view your market share in those type of consumer tests versus peers? Adam Schechter: Yes. So I continue to believe that the diagnostic market is strong and that we will outperform, continue to perform slightly better than the overall market growth of the market. When I think strategically of where we're focused, first and foremost, we've talked about the hospital deals and the strong pipeline that we have. Those hospital deals in the past few years have contributed to more than $1 billion of growth. Those hospital deals are overall about our average margin, and there are things that we can implement well and integrate well. So we're going to continue to focus there. I talked about specialty testing, and we launched over 130 new tests last year. The majority of those were in the 4 areas of women's health, oncology, neurology and autoimmune disease. We see those areas growing 2 to 3x faster than the overall diagnostic market. So that's going to continue to be a growth engine for us, good margins. But in addition to that, when you have a specialty patient that uses your specialty test, the physician tends to use all of our testing for the patients' needs there. So it has a really good return for us. Then when I think about consumer business, if you look at our Labcorp OnDemand, we've launched over 200 different biomarkers in areas like women's health, men's health, longevity. We will continue to focus and launch new tests there. We have our Ovia Health, which helps the women throughout the stages of her life, and that's doing very well. And then we have our consumer genetics testing, which is also continuing to do well. If you look at those three together, we have very strong growth. We don't break out the dollar amount yet. It's not yet at that level where I believe it's critical to break out. But with the growth rates that I see, I expect that we will break that out at some point into the future. Where we haven't necessarily been focused is on the other areas of consumerism and some of the wearables and so forth. And those areas, we look at the pricing environment, we look at the margin environment, and we have so many things that we focus on in the other parts of our strategy. I feel that we have just tremendous opportunity before us with the focuses that we have in the areas. Operator: And our next question comes from Jack Meehan of Nephron Research. Jack Meehan: First question is on PAMA. Adam, I would love to know how you think this is going to play out this year. Are you prepared to submit in the survey that's going to take place in a few months? And what do you think happens once the data reads out some time in the fall? Adam Schechter: Yes. Thanks for the question, Jack. The first thing I'd say is we were pleased that the PAMA was delayed this year. I think it shows that people really understand that the way in which it was intended to be in the marketplace is not the way in which it has been if we continue to use it in the original design. But it's not enough. I mean we're still going to continue to advocate for the RESULTS Act. And that, to me, is the right answer to the problem that we have. And we're going to continue to work with our ACI trade organization to advocate for the passage of that bill this year. Of course, if we need to submit the data, we will submit the data and we'll be prepared to submit the data. It's hard to understand exactly what would happen because we don't know how many other people will be able to submit the data and what that may or may not show. But under all circumstances, I still believe that the RESULTS Act is the right way for us to enable the -- frankly, the government to achieve the objectives that they put place in the beginning of what they were trying to achieve with PAMA. So to me, that's the right answer. Jack Meehan: Okay. And one unrelated follow-up. You mentioned investments in the central lab business within CapEx this year. I was wondering if you could just give us an update as to what's going on there and how that's in your footprint or just where those investments are getting directed? Julia Wang: Yes. Jack, maybe I can start by sharing a bit of our thought around the CapEx investment in 2026 in general. And then I'd like to really invite Adam to comment a bit about the business considerations and the footprint planning for central lab in particular. So for 2026, we commented that we are expecting the CapEx investment around 4% of our revenue in the year, which is higher than prior years. And as we shared in the past, as you look at the priority areas in terms of the CapEx investment, it's primarily around refreshing our lab infrastructure as well as our technology investment to ensure that we create a set of experiences for our customers, our patients and our employees that are compelling and differentiated. Now this year, in addition to those areas of investments, we are also starting to plan to invest in an expansion of a new strategic site for the central lab business in order to support the long-term growth. And that investment in addition to all the ongoing investment is contributing to the overall planning for CapEx. With that, Adam, do you want to comment a bit about the business considerations? Adam Schechter: So if you look at the business, we are a leader in this business. It is a strong business. I believe it will continue to be a strong business. The majority of our trials are with large pharma or large biotech companies. They're in Phase II, Phase III areas, and there are areas that will continue to get investment from pharma over time in order to launch new products into the marketplace. As we look at the book-to-bill, it remains strong across the segment as well as within the central laboratory. And if you look at the book that we have, it remains very strong and the growth is strong as well. When I think about the business, we have a truly global footprint. We have the ability to get samples from over 100 different countries around the world. It is a competitive advantage, and our laboratories consistently are able to give results that are using the same types of machinery, the same type of reagents around the world, which I think is a competitive advantage for us. As I think about the growth, it's going to continue to grow. And therefore, we need to continue to invest both in capital for building the kit facility as well as the laboratory we've talked about. We're also going to continue to invest in areas that improve the customer experience. So for example, our Global Trial Connect is a new digital way to help our pharmaceutical clients track their samples, track their studies, be able to submit data and other things faster than before. So because of the importance of the business, we'll continue to invest in it as appropriate. Operator: And our next question comes from Pito Chickering of Deutsche Bank. Pito Chickering: I guess just to start off with just looking at the ED market, can you sort of talk about overall market growth there? How does pricing volume look for '26? And then your thoughts around your market share for the upcoming year? Adam Schechter: Yes. So if you look at our early development business, it remains a very small part of our business. In fact, it's now less than 6% of our revenue. And as we think about what we're going to do there is continue to be a market leader, which we are, but we're also going to streamline the business to areas where we can win in the marketplace that are strategically focused on where we want to win. And then at the same time, we will either divest areas like we mentioned before and/or consolidate sites. Historically, I said that we were going to keep the excess capacity for the growth to come back. But it's been too long, frankly. The growth has not come back to the level that we would have anticipated. So we've moved down the path to appropriately consolidate so that our utilization is at a better level and therefore, the margins and the profitability will improve. So as I think about that business, it's a strong business. We are a market leader. I expect it to be relatively flat throughout the year in '26, but it will improve as we go through the year. And I think it will be based somewhat on the timing of the $50 million of revenue that we've decided to consolidate or divest. Pito Chickering: Okay. Great. And then a follow-up here. Can you talk about sort of the new test you're launching in oncology? You've had some interesting studies in peer-reviewed journals recently. How do you think about those tests launching and the revenues associated with those tests in the next sort of 12 to 24 months? Adam Schechter: Yes. No, thanks for the question. If you think about precision oncology testing, I think about liquid biopsies, but I also think about solid tumors, and we're very well positioned in that market. We acquired OmniSeq in 2021. We acquired PGDx in 2022, and we acquired Invitae in 2024. Those are all intended to help accelerate our capabilities in this area. Earlier this year, we announced our MRD testing being expanded to Stage I through III breast cancer, I through IIIa non-small cell lung cancer and Stage III colon cancer. And that actually leverages both the Plasma Detect genome, but also the Plasma Detect ID that we put into the marketplace. So I feel very good about our position there. I think the growth over time will be strong for the test individually. But as importantly, we offer now over 450 different tests for oncology patients across different stages and types of cancer. And when you have a cancer patient that's tested for either an MRD test or a solid tumor test, they tend to get a lot of other tests alongside of that. So it not only is encouraging that we have these specialty tests available, but it actually helps us provide one place for the oncologist to go for all the testing needs or the majority of the testing needs of their patients. I think that's another growth opportunity for us. Operator: And our next question comes from Lisa Gill of JPMorgan. Lisa Gill: I just want to follow up on a few things from a guidance perspective. First, when we last spoke, you had talked about a potential headwind around the exchanges and perhaps Medicaid. So I just want to understand, one, what's in your guidance? Two, we had pretty severe weather in the Northeast in January. So just curious if you had any impact as it pertains to weather here in the first quarter. And that really leads to how do we think about the cadence of numbers? Should we think about that having some kind of impact in the first quarter? Or can you make it up within the quarter? And then just lastly, Julia, you mentioned that the enterprise margins had expanded by 50 basis points, and you expect it to be meaningful again in '26. Should I take that as it should be another roughly 50 basis point expansion? Julia Wang: Yes. Lisa, let me take the first cut of your question. Your first one relates to the impact from the expiration of the ACA tax credits. We have estimated that impact to be about a 30 basis point reduction to our diagnostic volume in 2026. This estimate is incorporated into our revenue guidance for this year. It is also worth noting that the reported enrollment this year has been slightly better than anticipated. Of course, we continue to monitor the utilization of this insured group as the year progresses. I think your second question, Lisa, is as it relates to the weather impact. Yes, we indeed experienced weather in January of this year, which was worse than this time of last year. But when you look at the guidance that we have provided here, we have already reflected that weather impact year-to-date. Now from a cadence perspective, while we don't really guide to the quarters, but what I can share from a directional perspective, for this year, you can expect potentially be very much similar to last year. So essentially, you look at 2025, I believe we generated approximately half of our earnings in the first half and in the second half, respectively, as well. So that is probably a good proxy for you to consider as you model things out. So all in all, I would say that -- from a margin perspective, I think that's your last question -- yes, so I shared a bit earlier that as a company, we're just highly focused and it's been a priority, but we've been extremely diligent with respect to prioritizing investments where it's really driving top line growth in an accelerated fashion. And then we are also diligently utilizing technology, among other things to help us become ever increasingly efficient in the way that we operate and in the way that we deliver value end-to-end to our customers and our patients. So while we do not guide margin specifically in the guidance, but what I would say is if you look at our guidance for 2026, in terms of the top line growth at the midpoint of 5.4% for the enterprise and then the midpoint of our adjusted EPS growth at 9%, you can perhaps triangulate into a margin expansion that is going to be supportive of that adjusted EPS guidance. So all in all, I would say that once again, we're really pleased with the strength of margin expansion in 2025, and we expect that strength to continue into 2026. Operator: And our next question comes from Elizabeth Anderson of Evercore ISI. Elizabeth Anderson: Maybe one modeling question and one longer-term question. I think originally, when PAMA, we were still trying to decide whether PAMA was going to get delayed or not for 2026, you guys had previously said something about maybe $25 million to $30 million of additional savings if that came through. I know Julia just sort of put it -- talked about it in the traditional range. Is that -- like are those potential savings that you guys were talking about if PAMA came through, do you still view that as a potential source of upside like as you move through this year? Or is it just kind of -- we should think about it as, no, those are sort of investments needed at the higher revenue rate to think about? And then secondarily, just on the early development business, I think there's been some concern that there might be increased behavior changes, particularly from pharma and biotech in terms of some of the new AI applications. Just curious, are you actually seeing any of that like in terms of client requests currently? Has that been part of discussions? Or should we think of something that's something maybe that's potentially further out, but not something you're currently seeing? Adam Schechter: Yes. Let me start with the second question first. So as we start to think about new models, we have a significant number of people within our organization that are actually working on the new models. In fact, we're working with several governments in Europe to try to develop those models. So we've not seen a utilization of them instead of the regular testing at the moment. But over time, I think in certain areas, you would see people move more towards NAMs. And I think those NAMs will be something that we want to be part of that there'll be ways to monetize the work that we do there in different ways than the work that we do today. And we're actually encouraged by the progress that we're making in those areas. But I would say, at the moment, it's not having a significant impact. In fact, if I look at our business, I look at like the dollar amount of our RFPs and I look at our win rate, they still remain relatively consistent to the historical levels. Julia Wang: Yes. Elizabeth, we are pleased that PAMA is delayed for another year as we continue to work on the more permanent solution through the RESULTS Act. Now as you were saying previously, we did comment that should PAMA be implemented in 2026, we have plans to drive additional $25 million of savings above and beyond our LaunchPad initiative to help mitigate a portion of the PAMA impact. At this point, we continue to move forward with those efforts; however, given the PAMA delay, we plan to reinvest a portion of the additional savings into our businesses to position ourselves for continued long-term growth. So at the end of the day, I would say that in 2026, we expect enterprise margin once again to expand versus 2025 to support the adjusted EPS growth of 9% at the midpoint of our guidance. Operator: And our next question comes from Michael Ryskin of Bank of America. Michael Ryskin: I'm wondering if you could add a little bit of color on esoteric testing, what you saw in the fourth quarter, just how that played out relative to expectations, just if there's been any changes in the market there? And a small follow-up to what you called out earlier in terms of the 4Q volume weakness that you called out sort of a consumer genomics business. Just clarify, is that a onetime hit? Or do you expect that to continue to be a little bit softer in 2026? And just sort of what was behind that? Was that just timing? Or just explain that a little bit more. Adam Schechter: Yes. It was, in our opinion, a onetime hit, and we've actually seen good recovery, and we have additional business that we brought in into that area. So as I look at 2026 and we provide the guidance for 2026, you can see that we expect the volume to be strong. Julia Wang: Michael, as it relates to the question about the esoteric testing, we are pleased with the progress that we continue to make in this regard. Just for perspective, in the first quarter of 2023, esoteric testing accounted for 37.5% of our total testing in revenue. And then if you fast forward to Q4 of last year, that contribution went up to 41.5%. So clearly, if you just look at the growth of the esoteric testing, it's been outpacing the routine testing, as you would have expected, given our strategy around enhancing our investment execution in the specialty testing as well as our continued focus around enhancing our partnership with the hospitals and the health care systems. So we are encouraged by the progress, and we will continue to focus on that going forward. Operator: And our next question comes from Erin Wright of Morgan Stanley. Erin Wilson Wright: You mentioned that the Diagnostics segment, it's largely organic in terms of the revenue guidance there. But can you talk a little bit about the deal pipeline on that front? I guess, how do you think about the nature of the deal pipeline now, how it compares to maybe this time last year? And when you think about hospitals and health systems, what are you thinking about in terms of the nature of some of those conversations and deals going forward? Adam Schechter: Yes, sure. And as I look at our deal pipeline, it remains very robust. And I look at it not only from hospitals, but I also look at local, regional laboratories. And I think there's just a lot of pressure right now in the systems, particularly with the hospitals in terms of profitability. So they've been turning to us quite a bit to say, how can we partner with them? What can we do to work with them in order to help them with the issues that they're facing financially. So I've personally been involved in many of those discussions and the discussions continue to go well. I would say there's two things that I monitor. One is the number and the size of the partnerships that we're involved in discussions with and the pipeline there is strong. I look at the timing. We've seen the timing be a little bit slower perhaps because now for certain states, we also have to get approval in addition to the federal approvals that we need. But not been -- those have not been obstacles to approval. It just takes sometimes a little bit longer. And then I look at the future pipeline in terms of where I think the business can come from. And I would expect that we'll be talking about these types of acquisitions for quite some time because we still have a long, long tail to what I believe this business can do in those areas. Erin Wilson Wright: Okay. Great. And then the lower referrals from that one consumer client, I guess, in light of that one-off dynamic, I guess, how do you think about the durability of growth across the consumer-driven market? Can you talk about the long-term growth profile, margin profile, durability thereon? And what's your philosophy on how to participate or not in that market? Adam Schechter: Yes. So first, I'll respond to the consumer genetic company that we were referring to. We now have additional business in that area. So I don't think it's going to be a headwind as we move forward. As I think about the consumer market, I put it into perspective of strategically where we want to be. And first and foremost, your first question regarding hospitals and local regional laboratories, the pipeline there is strong. When you look at the average margin across those businesses, they're typically about the same as our average margin, and we continue to have that as a priority focus. I then look at our specialty testing areas. And we talked earlier about how the esoteric testing is shifting in terms of our mix, and I expect that's going to continue. The esoteric testing or specialty testing continues to be an area of focus in oncology, neurology, women's health and autoimmune disease. And a big part of why is because that's going to grow 2 to 3x faster than the underlying diagnostic market. And in general, those margins tend to be about the same margins as our other business. But equally important, when you do the specialty test for a patient, you tend to do all the other tests that a physician may request for that same patient. So there's even spillover into the routine testing for us that I think makes a lot of sense. Then when it comes to the consumer market, and we have a good consumer business. Our Labcorp OnDemand continues to show significant growth. We launched new tests in there almost every single quarter. We have over 200 different biomarkers that can be ordered from Labcorp OnDemand. Ovia Health continues to perform well and grow and help women through different stages of life and their testing needs. And then we also have the genetic testing that we do. And I think that, that will continue to be an area of growth. So if you look at those three areas together, the growth there is strong. We haven't broken out the revenue there to this point. But I think as it reaches critical mass with the growth rates I've seen at some point, we will, I expect, break it out. So I think that's how we approach the market. And it's really based upon strategically where we see the best growth opportunities, maintaining the margins that we want to maintain at the price points that we think makes sense. We also, of course, look at our ROIC on each and every one of those areas, which remains strong. Operator: And our next question comes from Eric Coldwell of Baird. Eric Coldwell: A little late in the Q&A here, so I'm going to have to get pretty myopic. I want to go back to early development. I heard you say a few times on the call, you expected the business to be relatively flat year-over-year. I do think that was before taking out the $50 million of divestiture and cost impacts as well as FX. So if I do make some preliminary assumptions there on the FX, I mean, it looks like you're talking about an $800 million revenue year in early development. Is that really what you're saying? Adam Schechter: No, I would say that including the $50 million impact that we've said, we expect it to be relatively flat with the second half performing better than the first half, Eric. Eric Coldwell: So you are expecting something in the [ $865 ] million, [ $866 ] million ZIP code? Adam Schechter: Again, I don't want to give the exact number, but I would say, directionally, your second number is closer than the first, I think, but there's always a range that we look at within there. Eric Coldwell: So that would suggest to me that you're either being very aggressive with that formula or you had pretty good bookings or you have pretty good signs on your expectations for that business, given that you are eating into the $50 million -- you have to overwhelm that $50 million of divestiture and cost impacts, cost action impacts. So what are the signs in the market that give you that level of confidence? Adam Schechter: Yes. I would say you saw the overall book-to-bill across the segment. It was strong. The trailing 12 months is strong, and we've seen improvement in both segments, frankly, of the book-to-bill. Eric Coldwell: Okay. And then on the margin front, prior to the divestiture and the cost actions, I believe this business was running at a low single-digit margin with the actions and your revenue outlook as well where there would be more leverage than I was expecting. Could you give us some sense on where you think margin could exit this year in early development? What kind of improvement is available near term? And then longer term, what kind of profile do you expect your business could have in that piece of BLS? Julia Wang: Yes. Eric, as you know, we don't really necessarily break out the business unit within the segment from a profitability perspective. But what I could share is the following to reiterate what I commented earlier. We head into 2026 with the momentum, including from a margin perspective. So we not only are expecting another year of margin expansion for the enterprise, we actually expect that improvement to be supported by expansion in both segments, inclusive of BLS. And then if you look at BLS margin expansion in '26 over '25, we actually expect that ratio improvement to be even greater than Diagnostics segment. And the key drivers for that are really two. One of them is what you already alluded to is all these actions we are taking with ED, which will be complete by the second quarter of this year is going to make that business meaningfully more profitable. And the other contributor to the BLS margin expansion in '26 versus '25 is really driven by the solid growth from a top line perspective. So all in all, we are pleased with the direction we are heading towards, and we look forward to providing you with more updates as the year progresses. Operator: This concludes our question-and-answer session. I'd like to turn it back to Adam Schechter for closing remarks. Adam Schechter: Thank you. So it was great to spend time with you this morning. As you can see, we entered 2026 with momentum, and we look forward to continuing to provide you with updates as the year progresses. Have a great day. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

45天前Insight Analytics约5分钟阅读

GMAB 2025 Q4 财报电话会议

Operator: Hello, and welcome to the Genmab Full Year 2025 Financial Results Conference Call. As a reminder, this conference call is being recorded. During this telephone conference, you may be presented with forward-looking statements that include words such as believes, anticipates, plans or expects. Actual results may differ materially, for example, as a result of delayed or unsuccessful development projects. Genmab is not under any obligation to update statements regarding the future nor to confirm such statements in relation to actual results, unless this is required by law. Please also note, Genmab may hold your personal data as indicated by you as a part of our Investor Relations outreach activities in order to update you on Genmab going forward. Please refer to our website for more information on Genmab and our privacy policy. I would now like to hand the conference over to our first speaker today, Jan van de Winkel. Please go ahead. Jan van de Winkel: Hello, and welcome to our financial results call for 2025. With me today is our Chief Financial Officer, Anthony Pagano; and our Chief Commercial Officer, Brad Bailey. For the Q&A, we will be joined by our Chief Medical Officer, Tahi Ahmadi; and our Chief Development Officer, Judith Klimovsky. As noted, we will be making forward-looking statements, so please keep that in mind. As we reflect on 2025, I would like to remind you of the commitments that we made at the beginning of the year. We said that we would accelerate the development of our high-impact late-stage pipeline, that we would maximize the potential of our commercialized medicines and that we would deliver on our capital allocation priorities. I'm pleased to say that we have delivered on these commitments. And we begin 2026 with a diversified, high-quality revenue base and a late-stage portfolio that can drive sustainable growth well into the 2030s. In 2025, we grew total revenue by 19%, fueled by both our royalty portfolio and sales from our own medicines. And we also invested fully [ in line ] with our capital allocation priorities. Importantly, we have also grown operating profit even while making these strategic investments. 2025 was marked by some significant milestones in our mission to deliver innovative medicines to patients. Highlights include positive momentum for EPKINLY as it continues to demonstrate the potential to become a core therapy in B-cell lymphomas, its FDA approval in second-line follicular lymphoma in combination with R2 as well as the unprecedented data in this indication are key milestones. Taken together, these move treatment into earlier lines of therapy and expand our impact for people living with follicular lymphoma. We also built on our commitment to the GynOc community. In addition to the availability of TIVDAK in both Japan and Europe, we expanded the development of Rina-S, ending the year with 3 Phase III trials across PROC, endometrial cancer and PSOC. Finally, a pivotal step on our journey to sustainable diversified growth was our acquisition of Merus, which enhanced our late-stage portfolio with petosemtamab. Petosemtamab -- with petosemtamab joining EPKINLY and Rina-S, we have a strong pipeline of late-stage assets that will provide us with multiple value-creating catalysts in 2026 and in the future. Now let's take a look at the strength of these 3 programs on the next slide. With the 5 combined breakthrough therapy designations, these 3 programs have multibillion-dollar potential, and they firmly underpin our long-term growth. EPKINLY is currently the only bispecific antibody with a dual indication across B-cell malignancies in the U.S., Europe and Japan. And following unprecedented data, EPKINLY plus R2 is well positioned to become a best-in-class option in second-line plus follicular lymphoma. Rina-S is a folate receptor alpha targeted ADC designed to broaden eligibility beyond high expressers. Based on current expression distributions, this could expand the addressable population by as much as 3x versus approved medicines that are restricted to high folate receptor alpha expression. And finally, petosemtamab, a potentially transformative EGFR LGR5 bispecific antibody with compelling data in both first-line and later-line recurrent and metastatic head and neck cancer. As a reminder, in the first-line setting, petosemtamab in combination with pembro achieved a 63% response rate, and that is more than 3x higher than the 19% that has been observed with the standard of care. 2026 will be a defining year for all 3 of these programs, as we will see on the next slide. We expect up to 6 potential -- potentially registrational data readouts that could set the stage for multiple important product launches and line extensions in 2027. In the second half of the year, we expect Phase II data for Rina-S in platinum-resistant ovarian cancer. We also anticipate that one or both Phase III trials for petosemtamab in first and second line or third line head and neck cancer will deliver top line data in the second half. And while we anticipate around 25,000 potential patients for later lines of therapy in first-line head and neck cancer, this increases to an additional 41,000 patients. For EPKINLY, we anticipate data from 2 Phase III trials in diffuse large B-cell lymphoma. The indication with the largest addressable patient population, around 70,000 people is, of course, frontline diffuse large B-cell lymphoma, and we are looking forward to data in this indication in combination with R-CHOP this year. We are also looking forward to data in the first half of the year in second-line plus diffuse large B-cell lymphoma in combination with lenalidomide. Now as you are aware, in January, we announced top line results from the Phase III EPCORE DLBCL-1 trial of EPKINLY monotherapy. The results showed an improvement in progression-free survival as well as improvements in complete response rates, duration of response and time to next treatment. And in fact, this is the first Phase III study to demonstrate an improvement in progression-free survival in patients with relapsed or refractory diffuse large B-cell lymphoma who are treated with the CD3/CD20 T-cell engaging bispecific monotherapy. Overall survival did not reach statistical significance and further analysis of the data is ongoing, including the potential impact of a variety of factors, including COVID-19 and the increasing availability of novel anti-lymphoma therapies. The full trial results will be submitted for presentation at a future medical meeting, and we will engage with global regulatory authorities on next steps. The monotherapy results do not change our expectations for our other Phase III trials. And we are very confident that these studies continue to have the potential to move EPKINLY earlier in the treatment paradigm and significantly increase its addressable population from approximately 27,000 patients today to almost 150,000 patients by early in the next decade. The data presented across EPKINLY, Rina-S and petosemtamab in 2025 strengthened our conviction in these programs. Now in 2026, it is the meaningful registrational readouts that will be the catalysts that allow us to potentially bring these antibodies to patients in 2027. I'm pleased to now hand you over to Brad for a review of the recent commercial performance for EPKINLY and TIVDAK. Brad Bailey: Thanks, Jan. 2025 marked another successful year for our commercialization team. We maintained leading positions for our proprietary brands globally, and we made important progress evolving into a wholly owned model, fueling our long-term growth engine. In the past year, we successfully executed 4 key launches across our portfolio, 2 of which were led entirely by Genmab, demonstrating the strength of the commercialization model we've built in the U.S., Japan and now in Europe. We expanded our footprint to 3 additional markets, opening business operations in Germany, the U.K. and France, and we delivered on our commitment to bringing our antibody-based medicines to patients in an area of high need. To this end, TIVDAK became the first ADC approved in recurrent or metastatic cervical cancer in the EU, U.K. and Japan, providing a much needed option for patients whose disease progresses after initial therapy and where outcomes have historically been poor. Additionally, when its approval in the U.S. -- with its approval in the U.S. in relapsed or refractory follicular lymphoma, EPKINLY became the first bispecific antibody approved in any form of non-Hodgkin's lymphoma in the second-line setting and the first bispecific combination therapy approved in the lymphoma space. These milestones represent progress for patients, and they set the foundation for our growth trajectory in gynecologic cancers, along with Rina-S in the future and further into B-cell malignancies. Through our efforts in 2025, sales of our proprietary medicines totaled $632 million. This is up 54% year-over-year and accounting for approximately 28% of our total revenue growth. We expect this growth trajectory to continue in 2026, grounded in the strong foundation we've built as we deliver our own medicines to an increasing number of patients around the world. Now let's take a closer look at EPKINLY. We closed out 2025 with solid performance, achieving $468 million in sales for the year, which represents a 67% year-over-year increase. This performance was driven by continued growth for the brand across geographies as the first and only bispecific with approved dual indication in diffuse large B-cell lymphoma and FL in Europe, Japan and the U.S. In fact, EPKINLY closed 2025 with regulatory approvals in more than 65 countries, nearly all of which feature the dual indication. We continue to be encouraged by EPKINLY's strong momentum and the positive feedback we hear from physicians across geographies regarding EPKINLY's differentiated clinical profile, powerful efficacy and proven safety and the value of having a single dual indication option across DLBCL and FL. In the U.S., this momentum translated to continued growth for EPKINLY across sites of care with an acceleration in new sites ordering, including in the community and the majority of health systems now ordering from multiple sites. As expected, following the launch of EPKINLY in second-line FL in November, we're seeing increased uptake suggesting that this approval will be a growth driver for the brand. In Japan, we continue to see EPKINLY's launch in third line plus FL build on the brand's success in large B-cell lymphoma. This is driven in large part by EPKINLY's dual indication differentiation and execution by our field teams to activate sites. Across all other markets, we continue to increase our presence through our partner, AbbVie, and its global footprint. We closed out the year with yet another quarter of solid sales for EPKINLY in these markets as we continue to see rapid uptake in countries gaining access and reimbursement. Looking ahead, 2026 will be a pivotal year for EPKINLY as we advance our position in early lines of therapy and anticipate key data readouts supporting EPKINLY's versatility and status as the core therapy in B-cell malignancies. Our focus is on delivering EPKINLY to as many patients as possible, particularly in early lines of therapy where we see the market opportunity and critically where we may have the opportunity to truly transform the trajectory of these diseases for patients. To that end, we're maximizing our first-mover advantage in second-line FL in the U.S., and we expect to build on this opportunity across markets with anticipated approvals in this setting in Europe and Japan later this year. With this traction in earlier lines of FL, we're looking towards key readouts in 2026 in first- and second-line DLBCL with fixed duration EPKINLY combination therapies to further strengthen EPKINLY's position in DLBCL. Together with a robust development program for EPKINLY and strong execution by our teams, we see a clear opportunity for EPKINLY to achieve blockbuster status over the next few years. Moving now to TIVDAK. TIVDAK continues to be recognized as the global standard of care in recurrent or metastatic cervical cancer. In 2025, TIVDAK generated $164 million in sales, representing a 26% year-over-year increase. TIVDAK continues to perform well across both new and established markets, highlighting the clear need for treatments that improve survival for women with advanced cervical cancer across geographies. In the U.S., notably, TIVDAK posted its fourth consecutive year-over-year growth, underscoring its continued market leadership. This strong stable performance continues to be driven by the depth and breadth of sites of care using TIVDAK. In Japan, TIVDAK demonstrated another strong quarter of continued performance, underscoring the traction it's gaining in the second-line setting and the high patient need in recurrent and metastatic cervical cancer in the country. This trend continued in Europe where the launch in Germany continues to be off to an encouraging start with strong consistent uptake and positive physician feedback. As the first medicine we've launched in Europe independently, our efforts in recent months have demonstrated our ability to strategically build infrastructure and scale in new markets. We received MHRA approval in December in the U.K. and are now working towards reimbursement to bring TIVDAK to more patients as soon as possible. As we look ahead to the new fiscal year, we have the foundation in place to continue this momentum and bring TIVDAK to additional markets. Infrastructure and operations are well underway in new markets with our teams executing in preparation for exciting launches on the horizon. We expect to see continued positive performance across markets as we strengthen and scale our presence and broaden our impact within the gynecologic cancer community. Wrapping up, 2025 was a critical year in our company's evolution. We built on our proven launch expertise and scientific strength and achieved key milestones to solidify our commercialization model and business operations that will unlock our ability to deliver on the significant growth opportunities ahead of us. Our proven ability to evolve our model in the U.S. and Japan, coupled with the early traction we are seeing in Europe, gives us the confidence that we have the pieces in place today to drive future growth and expansion. With this strong foundation, 2026 is shaping up to be another meaningful year for Genmab. We will grow the impact of our proprietary portfolio, expand our footprint and sharpen our capabilities as we look toward entering new and larger market opportunities and delivering on the blockbuster potential of EPKINLY, Rina-S and petosemtamab in the coming years. With that, I'll hand the call over to Anthony to discuss our financials. Anthony Pagano: Thanks, Brad. 2025 was a year of strong execution for Genmab with solid revenue growth, expanding profitability and disciplined investment. Looking ahead, our 2026 guidance reflects the same framework we outlined at Q3 and at the time of the Merus acquisition. And it also reflects our continued commitment to funding growth while maintaining substantial profitability. Now before diving into the numbers, please note that the results and guidance I will review exclude the impact of acquisition-related expenses, including amortization. A reconciliation to our reported results is included in the appendix. In 2025, total revenue increased 19% to $3.7 billion, reflecting strong execution across our royalty portfolio as well as continued progress for our commercialized medicines. We also continue to improve the quality of our revenue profile with a higher contribution from our own medicines, especially EPKINLY, further diversifying our revenue base. In addition, we strengthened our long-term growth potential with the addition of petosemtamab to our late-stage pipeline. Alongside the Merus acquisition, we made targeted strategic investments during the year with operating expenses up 13%. The investments we've made in building our commercialization capabilities are already delivering for us today. And importantly, they are positioning us to support expansion into earlier lines for EPKINLY and the potential launches of Rina-S and petosemtamab in 2027. And even with these investments, we expanded operating profit to $1.26 billion, reflecting strong execution and increasing operating leverage as the business scales. Overall, 2025 demonstrates the strength and quality of Genmab's underlying financial performance. Turning to our 2026 guidance. Our framework is straightforward. Revenue growth enables strategic investment, which supports long-term value creation. At the midpoint, we expect 14% total revenue growth, driven by continued momentum in EPKINLY and our royalty portfolio, further enhancing revenue quality. More specifically, we expect DARZALEX net sales in the range of $15.6 billion to $16.4 billion. As discussed previously, expectations for operating expenses were in a reasonable place. For 2026, the increase in operating expenses reflects planned investments to advance late-stage development for petosemtamab and Rina-S as well as launch readiness activities to support multiple potential product launches. Even with the strategic step-up, our guidance delivers on our commitment to maintain substantial profitability in 2026. With that, now I would like to provide some context for how revenue growth supports a deliberate increase in investments while delivering $1.15 billion of operating profit at the midpoint for 2026. And you can see this on the chart on the right. What really stands out is the strength of our underlying business, demonstrated by strong organic operating profit growth before our planned investments in petosemtamab. Here, we are choosing to reinvest part of the operating leverage now to strengthen future growth drivers while continuing to manage costs actively and maintain profitability discipline. This balance, reinvesting to support growth while driving substantial profitability is a core feature of our operating model. Taken together, our 2025 results and 2026 guidance demonstrate consistent delivery against our financial commitments. Our capital allocation framework remains fully aligned with our strategy to drive sustainable growth well into the 2030s. First, we will continue to invest to accelerate our late-stage pipeline and maximize the success of our commercialized medicines, including launch readiness. These investments are intended to generate meaningful revenue for us in the future. Second, we will continue the rapid integration of Merus to accelerate value capture while maintaining focus and prioritization. And third, we remain committed to deleveraging, targeting gross leverage below 3x by the end of 2027, maintaining balance sheet strength and flexibility. In summary, our performance in 2025 underscores our ability to deliver revenue growth, our ability to advance key pipeline assets and our ability to maintain strong profitability through disciplined execution. Looking ahead to 2026, we are building on this momentum through disciplined prioritization of our investments, continued operating discipline and expansion of market opportunities. This positions us for sustained growth and long-term value creation. And on that note, I'm going to hand you back over to Jan. Jan van de Winkel: Thank you, Anthony. Our confidence in our ability to execute on key data readouts in 2026 and subsequent high-impact launches in 2027 come from our track record. We have proven that we are excellent evaluators of innovation and that we deliver on our promises. We have also proven that we are disciplined in our execution against our capital allocation framework and in the prioritization of our investments, and we are committed to delivering profitable growth. Genmab is a scaled oncology biotech business with strong momentum, an increasingly diversified growth profile and multiple catalysts ahead. As we begin 2026, our focus remains on translating our antibody science and development expertise into meaningful breakthroughs for patients and long-term value for shareholders. That ends our formal presentation. Thank you for listening. Operator, please open the call for questions. Operator: [Operator Instructions]. And now we're going to take our first question, and it comes from the line of Jonathan Chang from Leerink. Jonathan Chang: Can you discuss what the next steps are for EPKINLY following the results of the EPCORE DLBCL-1 study? Can you still get the second line plus label with the EPCORE DLBCL-4 combination study? And what was the rationale, I guess, behind using the monotherapy DLBCL-1 study as the confirmatory study in the first place? Jan van de Winkel: Thanks, Jonathan, for the questions. I will hand it over to Tahi to explain in further detail what the next steps are for the regulatory part for [ 05 ] Tahi? Tahamtan Ahmadi: Yes. Thank you, Jan, and thank you, Jonathan, for the question. Yes, as we already indicated in the press release, I mean, the [ 05 ] study is positive by PFS as a single agent beating a chemo-immuno regimen on progression-free survival, but it missed the overall survival confounded by key aspects that are already discussed in the community. One is being COVID. The study was involved heavily during the Omicron wave. And the other one is the emergence of access to bispecifics, which we are an important part as well. So we will have this discussion with the agencies. They are prespecified analysis in the protocol that were already agreed prior to the readout on these 2 major biases. And so we'll have this conversation both with the FDA and of course, with the European health authorities and global health authorities on the data set. And we're also going to have this conversation with you guys once it is in the public domain. As it relates on the rationale for -- which was your third question on the rationale for why this is the confirmatory study, it's important to put yourself back into the situation where we were -- when this [ kidney ] program started. This was the first Phase III to be initiated. And hence, it was a confirmatory study because the requirement for an accelerated approval is that you have a confirmatory study initiated and really actually well on enrolled by the time you file for the accelerated approval, which is why this was initially -- it was for a long time, the only diffuse large B-cell study, the confirmatory study. Discussions are ongoing with the agencies about all the other Phase III studies that we have ongoing to specifically for which we both already guided that we will have a readout this year. There is absolutely from our end and no indication from any of the health authority interactions, any readout to the fail ability of the other study that is being conducted and that we already guided will read out in the first half of this year, which is the combination with [ EPCORE ] in second line, third line. This is a separate study that was set up separately. This was started and initiated after the Omicron wave. It is testing a combination regimen with lenalidomide with a fixed duration, as Brad was alluding to earlier. So it's a different study with different opportunities. And we will be looking forward to have this data in our hand and to also like communicate them to the community and then to engage with health authorities as appropriate. Jan van de Winkel: Thanks Tahi. Jonathan, I think that answered your question? Jonathan Chang: Understood. Thank you very much. Operator: The next question comes from the line of Asthika Goonewardene from Truist. Asthika Goonewardene: So you presented EPCORE outpatient data late last year. I just want to get an update from you on how this data has been adapted to change in the practice in the U.S. I guess given maybe you can give us an idea of what proportion of community clinics that are still sending patients to DLBCL patients to a large center to get that step-up dose monitoring. And then just maybe to tag on to Jonathan's question, could you put us at ease and just tell us what you think is the likelihood that you'll be able to convince the regulatory agencies to consider one of the many other EPCORE Phase III study readouts that are coming this year as the confirmatory study? Jan van de Winkel: Thanks, Asthika, for the questions. I will first hand it over to Tahi and then also Brad will definitely be able to comment on the community center use of EPCORE, I believe. But Tahi, why don't you start with the first question? Tahamtan Ahmadi: Yes. I mean thank you, Asthika, for this question. So I'm going to reiterate the green, but reaffirm what I said earlier. We have, at this point, 3 Phase IIIs in diffuse large B-cell, one that we already announced the results and then 2 that we already announced we're going to have the results this year, one in the first half at least, and the other one we have not committed to when. So we are extremely comfortable to a degree also by the precedent already set on the [ glofi ] program, but also generally speaking, that this is really not a concern on our end in terms of the confirmation trial. We have 2 major Phase IIIs that are reading out in addition to a study that was positive on PFS, but confounded on OS. So this is -- I can -- as much as I can say at this point, we are not concerned about this and don't see a reason to be concerned also if you look at the precedent that was set by [ Russia ]. On the outpatient, I'll leave it to Brad to talk about the pattern of prescription. But what I would say to the outpatient study is that, that was an important strategy for a variety of reasons. One is, of course, what Brad talk about practice patterns in the community, but it's also an incredibly important component for our overall regulatory strategy to modify the label and to have label language that then also facilitates administration of EPKINLY in the community. And Brad, you can take it from here. Brad Bailey: Yes. No, Tahi, just dovetailing off that, you're absolutely correct. And we do see this as certainly an enabler, if you will. And as we continue to evolve and receive physician feedback, specifically moving into even earlier -- more early lines of therapy, see this as a potential great opportunity for us. Operator: Now we're going to take our next question. And it comes from the line of Xian Deng from UBS. Xian Deng: So I have one on Rina-S, please. So given the pivotal Phase II that's due to come out this year, and given this is kind of pivotal Phase II and there -- it's not a formal Phase III. So just wondering what determines when you can decide you are going to have a readout? What is the definition of this? Because I guess here, you don't have to have the formal PFS here and it's an open-label trial. So that's the first question. And then sorry, the second one, sorry, just a very quick yes and no question, please. So for EPKINLY frontline DLBCL trial, just wondering, can you confirm whether you have passed the interim, please? Jan van de Winkel: Thanks, Xian, for the questions. The first one, I will ask Judith to address and then Tahi can give a very short answer on the second question. Judith, why don't you start on the Phase II data for Rina? Judith Klimovsky: Yes. Thank you for the question. So the study was designed or the pivotal arm with a potential outcome of being supportive of accelerated approval and accelerated approval is a path that the FDA has for drugs when the results support with the substantial benefit over current standard of care with endpoints that can predict substantial benefit. So the way the Phase II design is, is for ORR and duration of response, which is our validated endpoint to [ slate ] for clinical benefit. Now the accelerated approval is also dependent on having Phase IIIs with clinical endpoint. As you know, we have [ O2 ] study ongoing, which is a Phase III with PFS as a primary endpoint. Jan van de Winkel: Thank you, Judith. And then maybe Tahi, can you give some color on the frontline diffuse large B-cell lymphoma study? Tahamtan Ahmadi: Thank you for the question, and I appreciate the attempt of yes, no question. But we're just going to reiterate what we've been saying publicly since JPMorgan that we expect the readout for the study to happen in '26. Operator: Now we are going to take our next question and the question comes from the line of Rajan Sharma from Goldman Sachs. Rajan Sharma: So just same with EPKINLY. Could you just discuss your expectations into the EPCORE DLBCL-4 trial? What do you think is a clinically meaningful outcome here, especially relative to LUNSUMIO and POLIVY? Jan van de Winkel: Thanks, Rajan, for the question. Tahi, can you handle the -- address the DLBCL-4 question? Tahamtan Ahmadi: Well, I mean, the anticipation is that it will actually be a trial that will be registered, which is the first differentiation to the studies that you mentioned. That's, I think, the intent as a study that has a -- as I said, combination with lenalidomide that was enrolled exclusively after the Omicron wave, which was a significant confounder for a lot of the studies that were run with these bispecifics in the diffuse large B-cell space, not only the diffuse large B-cell, but relevant to this conversation. And we're really excited and looking forward to this data set, which will also have a larger portion of second-line patients. And so the expectation is that this is a trial that will be positive and then will lead to registration in second line and third line. Jan van de Winkel: Thanks, Tahi. Thanks for the question. Let's move on to the next one. Operator: And now we're going to take our next question from Judah Frommer from Morgan Stanley. Judah Frommer: Just curious on your thoughts on the pembro approval in PROC recently and kind of implications for Rina-S. And then maybe just more high level, we appreciate the guidance on DARZALEX. But I guess just kind of given positive data in combo with bispecific at ASH. Just curious if you have any kind of high-level thoughts on the DARZALEX trajectory over the coming years, maybe versus where your expectations were 6, 12 months ago for that drug? Jan van de Winkel: Thanks, Judah. Judith, can you start and then maybe Tahi can chip in. Judith Klimovsky: Yes. Thank you for the question. So we are aware of the data and the approval. I think it's a good potential option for patients. However, 2 things not to underestimate. First, that the approval is in PD-L1 positive CPS 1 above 1% and this encompass around 70% of the population; and b, the combination includes [ wekitaxel ], which is not minor for patients. So on the one hand, it is great that patients have another option. On the other hand, we believe that Rina can be more transformative and serve the full broad population. Jan van de Winkel: Thanks, I think that addresses your question, Judah. So let's move on to the next one. Operator: The next question comes from the line of James Gordon from Barclays. James Gordon: James Gordon from Barclays. Also a question on EPKINLY in first-line DLBCL. So my question was, what are you hoping to see when the trial reports in terms of the OS benefit? Would you hope to see a strong OS benefit even though it is a first-line trial and some other agents like POLIVY has struggled to do that? I know that related to lack of OS benefit. And then connected to it, just what is the efficacy bar? Are you just hoping to be start? Would you need to be materially better than POLIVY [indiscernible] given that Roche are doing a CD3 CD20 on top of POLIVY? And maybe also just thoughts on MONJUVI frontline trial as well in terms of whether that sets any sort of bar. Jan van de Winkel: Thank you, James, for the questions. This is definitely Tahi questions and very exciting questions. So let's see what Tahi answers. Tahamtan Ahmadi: All right. Let's try my best to answer your questions in sequence. I think the first part that I think we've been very clear for a while is that the primary endpoint is PFS. The expectation on our end, the anticipation and the excitement is that we believe that kidney in combination with [indiscernible] will be transformative. Of course, the data will have to show. We've been arguing for a while that the robust Phase II data sets have been quite informative in our development on the second-line follicular lymphoma, just to remind everybody again, the Phase III mimic almost to a point the efficacy that we had seen in the second-line data set in combination with R2 in second-line follicular lymphoma. And if you then go back and revisit the data that's in the public domain on R-CHOP combination with the kidney and IPI-325 and particularly pay attention to the CR, which is the most relevant data point. So there is a reason, and this is where the excitement and the enthusiasm and the expectation comes from our end to believe that the study will be quite positive. I'm not going to speculate on what positive really, really means, but certainly, on a compound by compound, we anticipate that it's going to exceed the current reported Phase III data sets that are positive. As it relates to OS, you're absolutely right. In diffuse large B-cell OS is an endpoint that lags to a degree also by a change on factors, but also because of the impact on PFS. So I think this is a discussion we can have once we have the data set and we can have a conversation on the scale of improvement in PFS and how that translates to us. Jan van de Winkel: Thanks, Tahi. I think we have to leave it with that, but that was a very good answer. Thanks, James, for the question. Let's move on to the next question. Operator: And the next question comes from the line of Zain Ebrahim from JPMorgan. Zain Ebrahim: A quick clarification question on EPKINLY, just in the first-line DLBCL trial in terms of the events tracking, how they are tracking relative to your expectations and given reiterate 2026 to [indiscernible] narrowing it down to the first -- and then my actual question was on the Merus acquisition. So following the acquisition completion, have you spoken to the FDA about the trial design for the ongoing Phase III trials? And based on those conversations, how confident you are that the response rate is sufficient as a regulatory endpoint? Jan van de Winkel: Thanks, Zain, for the question. So I'll ask Tahi to talk a bit about events tracking if we can, and then Judith can potentially address the peto question on trial design in head and neck cancer. Tahi, why don't you start? Tahamtan Ahmadi: On events tracking, I don't necessarily think this is what we do in calls like this that we give a commentary on events tracking. But we cannot comment. So this is not something that we can do right now. But we obviously do track. Jan van de Winkel: All right. Thanks. Then let's move on to Judith and then maybe some feedback on the design of the head and neck pivotal trials for peto. Judith Klimovsky: Yes. No, thank you for the question. As we all know, I mean, the 2 Phase III studies have dual endpoints, ORR and OS which I would say, as you know, the OrigAMI-5 recently published as well ORR and PFS. So it's quite a standard that in areas of unmet medical need, the FDA and even other health authorities can be prone to earlier endpoints that can be good surrogates or good associated with more overall survival. So we feel good with the dual endpoints that both studies have. And of course, as part of the integration, we are digging into the operational characteristics of the studies, but we are pleased with the design as is initially and yes, and with the dual endpoint. Jan van de Winkel: Thank Judith. Thanks Zain, for the questions. Let's move on to the next one. Operator: And the next question comes from the line from Suzanne van Voorthuizen from Van Lanschot Kempen. Suzanne van Voorthuizen: This is Suzanne from Kempen. I was wondering for peto, whether we should be expecting a Phase I/II data update in head and neck cancer during this year at a medical conference, considering especially the frontline data set further matured since ASCO last year, this could be very insightful for the market ahead of the Phase III readout. And if there is a data update, could you elaborate what you believe the expectations should be on duration metrics and survival, for example? Jan van de Winkel: Thanks, Suzanne, for the questions. I will ask Judith to comment on that. Suzanne, as you know, we hope to see one or both of the Phase III data this year, but you asked specifically about the Phase I/II data, Judith? Judith Klimovsky: Yes. No, thank you for the question. But I want to reinforce that the last readout for the peto-pembro combination was with around 15 months follow-up, which allowed to see 79% of patients at 12 months landmark overall survival. And so of course, there is sensoring, but the sensoring happened after the 12, 16 months, is what you expect from the control arm. So what I'm trying to say is that the last ASCO 2025 presentation from Merus is very informative in terms of the probability of success of the Phase III, and you can take advantage of that presentation already. Jan van de Winkel: Let's move on to the next one. Operator: And our next question comes from the line of Yaron Werber from TD Securities. Yaron Werber: So quick question, just as a natural follow-up. The OrigAMI-5 study, as you mentioned, uses KEYTRUDA and chemo as a combo, presumably in patients with more bulky aggressive disease in front line. Would you consider doing the same sort of trial design with peto? Jan van de Winkel: Judith, can you address that question from Yaron on OrigAMI-5? Judith Klimovsky: Yes. No, thank you for the question. So first, let me tell you that we are stand behind the original strategy, which is combining peto with pembro. And the reason is that the 65% ORR furthermore with 6 CRs is unprecedented even in the context of what we know for pembro chemo. So we are very pleased that [indiscernible] put in place a strategy that could offer a chemo-free option for patients. Having said that, given the data that you have seen and we have seen on peto, we believe that the CDP potentially could be expanded on many different directions. This could be one, but we are very -- we think that the chemo-free combination for patients that can offer almost double what the chemo can offer is a very good value proposition for patients. Jan van de Winkel: So more to come. Operator: And our next question comes from the line of Qize Ding from Rothschild & Co. Qize Ding: So I noticed that petosemtamab is at Phase II stage for combining pembrolizumab in first-line non-small cell lung cancer. Just wanted to clarify, is this a new trial that was started in Q4 2025? If so, could you please share your high-level thoughts and expectation behind this study? Jan van de Winkel: Thanks, Qize, for the question. Judith, can you comment on the lung cancer trial for peto? Judith Klimovsky: Yes, yes, I can. Thank you. So as we all know, EGFR is a good target for lung cancer. The study was planned as a signal seeking in the indications where cetuximab showed the maximum benefit and in combination with pembro, given that what we know, which is the synergy between peto and pembro. So it's a signal-seeking study, and we will update you when we have data. Jan van de Winkel: Thanks, Judith. Thanks Qize for the questions -- question. Let's move on to the next one. Operator: And the next question comes from the line of Matthew Phipps from William Blair. Matthew Phipps: Just to confirm, you listed an additional Phase III for peto in 2026. Is that the locally advanced trial that you've already talked about or something else? And do you anticipate providing any update from the colorectal cancer cohorts that we saw in the fall or maybe thoughts on the development plan there? Jan van de Winkel: Thank you, Matt, for the question. So Judith, maybe you can address both of them. Judith Klimovsky: Yes. Thank you for the question. So yes, the data that Merus presented in December on colorectal was very encouraging, albeit a limited number of patients as it was shown publicly, each one of the cohorts is to enroll 40, 40 and 60. So this data set is growing. And as the data is growing, we plan to inform the medical community. And we have not decided when, but the data set is growing. And in terms of future Phase IIIs, we already mentioned the locally advanced head and neck, and we are actively working on a comprehensive clinical development plan. Jan van de Winkel: Thanks Judith. Thanks Matt for the question. Operator: And now we're going to take our next question, and it comes from the line of Victor Floch from BNP Paribas. Victor Floch: So maybe a quick one on the pipeline and I mean, more specifically your early-stage pipeline, which has been significantly streamlined over the last 12 months. And to my knowledge, only contains now 2 clinical stage bispecifics. So I just wanted to hear your thoughts and maybe whether you can discuss your priorities moving forward in terms of platform technologies and therapeutic areas because I can't really see any ADCs. So maybe it's -- I mean, whether you can discuss like what are the technologies behind the 2 recent INDs you've done. But so moving forward, whether you can discuss whether you believe you have enough candidates in-house? Or should we expect also some early-stage M&A at some point? Jan van de Winkel: Victor, let me start off here and then Tahi, can definitely chip in. We have recently actually had 3 IND filings, one for a bispecific antibody, one for an ADC, making use of the linker and payload technology, which we acquired via ProfoundBio, and one which is a bispecific also including the HexaBody technology. So when you look at our whole pipeline overall, 45% is ADC right now, 50% is DuoBody-based or bispecific based and 5% HexaBody-based, Victor. But right now, we are integrating both the Merus pipeline and the Genmab pipeline and only prioritize the high-impact ones basically for further development. So we have a very, I think, diversified pipeline, all based on next-generation antibody technologies. But I will stop here and maybe Tahi can give you a bit more color on the organic pipeline, which is still a key priority for the company to actually fill the pipeline with candidates, which can then be promoted to mid- and late-stage programs in due time. Tahi? Tahamtan Ahmadi: Yes. I mean you kind of like framed this already, right. So as you said, we have 3 INDs that we filed towards the end of the year with -- that are expecting dosing this month. More to come on this end in this year as well. And our focuses are now particularly also after the integration of [indiscernible] And the capabilities that came to that integration continue to be in antibodies and then they fall into these categories of next-generation ADC platforms, which is an increased interest of our research in [indiscernible] and next-generation bispecific and trispecific platforms that is obviously a focus on our research capabilities in [ Utrecht ]. And that's what we're going to continue to do. There is, of course, a change now with a very heavily focused late-stage landscape within [indiscernible] with peto being positioned in head and neck and maybe we'll see in the future also opportunities in colorectal with Rina being positioned in the GynOc space in ovarian and endometrial, but also maybe possibly based on data, also opportunities in other folate receptor alpha tumors, there is very clearly also a change on how we think internally about where our focus should be, right? So it's not completely a disease area focus, but without a doubt, we're starting to get into a space where we're also starting to think about combinatorial strategies for our internal assets. But generally speaking, you should expect more to come from our internal capabilities. And that in and of itself does not preclude that we will not continue to look for external innovation because that's what we're going to do. Operator: Now we're going to take our next question. And the question comes from the line of Mattias Haggblom from Handelsbanken. Mattias Häggblom: I had one on peto, an asset which you now own. Help me think about what you need in terms of additional information from ongoing or future clinical trials to specify your current peak sales potential from multibillion dollar to an actual number like you have for EPKINLY and Rina-S. Jan van de Winkel: Thanks, Mattias, for the question. And I will hand it over with pleasure to Anthony Pagano to see what he's willing to say about the multibillion-dollar potential of these molecules. Anthony Pagano: Yes. Thanks, Mattias. So as you've heard from us since the time of the acquisition, we're highly encouraged by the data we've seen so far for petosemtamab, highly encouraged by the outside and recognition from the FDA in terms of the breakthrough therapy designations and really looking forward here to one or more data readouts, pivotal readouts during the course of 2026 and equally looking forward to potentially expanding into earlier lines in terms of starting a first Phase III in locally advanced head and neck cancer. So if we look at this overall, petosemtamab has the characteristics of potentially being best-in-class, first-in-class, and we're really focused on expanding and accelerating it to also make it broadest in class, starting, of course, in head and neck cancer. For now, we're going to remain with our guidance in terms of multibillion blockbuster potential. As we continue to review the opportunity, refine our CDP, see more data, we'll look for the right time to update that. So I'm not going to front run this, Mattias, in terms of guiding to when we're going to potentially update guidance. But the key takeaway here really is that we're very happy owners of petosemtamab, and we look forward to seeing the data later in 2026 and continue to expand and accelerate the CDP. Jan van de Winkel: Thanks, Anthony. We will leave it with this, Mattias, but thank you for the question. Operator: And now we'll take our next question, and it comes from the line of [ Sarah B ] from Guggenheim Partners. Unknown Analyst: This is [ Sarah ] on for Michael Schmidt from Guggenheim. I wanted to quickly circle back to Rina-S, if you could comment on the size of the opportunities for Rina-S, both in and outside of [indiscernible], including in the ongoing Phase II? And then separately, super quickly, if you could clarify the terms of the debt offering announced late last year. Jan van de Winkel: Thank you, [ Sarah ]. Anthony, can you address both questions, the size of the opportunity for Rina and also the debt offering terms? Anthony Pagano: Sure. Happy to do so. First of all, everything I've just said about petosemtamab, I would echo for Rina-S, very happy owners of Rina-S, and the team is really here looking for any and all opportunities to expand and accelerate the opportunity. Again, looking forward to the first potentially pivotal and registrational data here during the course of 2026, initially in the platinum-resistant ovarian cancer setting. Today, I can reiterate our overall guidance of $2 billion plus for Rina-S that's really underpinned by second line plus PROC, second line plus endometrial, second line plus PSOC and then also moving forward, the frontline endometrial opportunity. What's important to note for on those first 3 indications that I've mentioned, second-line PROC, second-line endometrial, second-line PSOC, we've already initiated Phase III trials. So very excited about the opportunity, very excited about what we're seeing in terms of the data so far, both in PROC and endometrial cancer. So that takeaway is we continue to reiterate our peak year sales guidance of $2 billion plus and a very significant amount of clinical development work is ongoing to underpin that investment -- that peak year sales guidance, excuse me. In terms of the overall debt offering. First of all, we're very pleased with the demand for the offering, both in quantum in terms of also the high-quality nature of the investors that ultimately subscribed to the deal. Again, it's $5.5 billion with roughly $2.5 billion of it being fixed. Another $3 billion is floating rate debt based upon a spread over 3-month [ SOFR ]. Now what we have done and for the $3 billion that is floating around $1.6 billion of that, we've hedged back to make it fixed. So net, $4.1 billion is now fixed as well as the remaining being floating. One thing I would leave you with is that we've committed and remain committed to getting below 3x gross leverage by the end of 2027. And one maybe other data point that kind of help you sort of think this through would be, if you look at the kind of weighted average based on current market conditions, the weighted average sort of effective interest rate of the debt is around 6.6%. So that's what can help for now. Jan van de Winkel: Thanks, Anthony. Thanks, [ Sarah ], for the questions. Let's see whether there's any further questions. Operator? Operator: Now we're going to take our last question for today. And it comes from the line of Benjamin Jackson from Jefferies. Benjamin Jackson: Brilliant. Conscious of time, so just one for me. I guess, longer term, are you able to comment on how you're thinking about the level of sales and marketing investments needed to be made ahead of any potential launches given that you're now starting to get into the later stages of a lot of this pivotal data. So how comfortable are you with how big and where the team is located today? And how much more scale needs to be achieved in terms of feet on the floor? Jan van de Winkel: Thanks, Ben, for the question. And I will ask Brad to give you -- give a short feedback here. Brad? Brad Bailey: Yes. Thank you for the question. And we continue to be disciplined on OpEx as guided. And certainly, we'll invest strategically to strengthen the development and commercialization to bring our medicines to as many patients as possible. We're strong with where we are today, both U.S. and Japan and early signs in Europe are encouraging and look forward to sharing more in the not-too-distant future. Jan van de Winkel: So more to come, Ben, in the future. Operator: There are no further questions for today. I would now like to hand the conference over to your speaker, Jan van de Winkel, for any closing remarks. Jan van de Winkel: So thank you for calling in today. If you have additional questions, please reach out to our Investor Relations team. We very much look forward to speaking with you again soon. Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

45天前Insight Analytics约5分钟阅读

MMT.PA 2025 Q4 财报电话会议

Operator: Good evening, ladies and gentlemen. Welcome to the presentation of Group M6's Annual results for 2025. [Operator Instructions]. I will now give the floor to Mr. David Larramendy, the CEO of the Group. You have the floor. David Larramendy: Thank you. Good evening, everyone. We are delighted I'm with Jérôme Lefébure here. We are happy to introduce the results for the year 2025 and to talk about the year 2026 that has already started. For 2026, only 2 figures to remember. That was a good year with an EBITDA of EUR 214 million for a current operating margin of 17%, and EBITDA margin, which is relatively high amongst our peers. If we take more figures for consolidated sales, EUR 1.256 billion with EUR 225 million of non-advertising revenues. So slightly over EUR 1 billion in advertising revenues, EUR 1.032 billion. And then I'll come back to the breakdown of advertising revenues for the main messages. We still have robust growth in streaming and the transformation of our model. You know that it's a major point with revenue growth of 27% at EUR 126 million for the year 2025. Strong profitability, I've talked about it. and the net income group share at EUR 123 million. Some of that is related to some operational declines and also some accounting items that we'll come back to in a minute. A word before we come back to our audiences for advertising, especially the main source. Video advertising revenue, EUR 884 million, minus 3.1%. We reckon that the entire market is down by 8%. So we significantly outperformed with a video advertising market share, which is around 27%. So 1.4 percentage points growth. This overperformance is explained by our ratings. We'll come back to that in a second and also a change in the number of players with the appearance of 2 less powerful channels and 2 channels that went off air in the year 2025. Looking at our programming schedule, we had a number of major changes, especially around access prime time -- well, access prime time doesn't necessarily have huge ratings, but that's 7 days a week, 52 weeks a year. So that makes a strong contribution to building up annual ratings, and we had good successes, especially with our game show offering and programs that work very well. The other specific focus that we had was entertainment, prime time entertainment programs with very good seasons. Well, you can see here, Farmer Seeks Wife or France's Got Talent generation after generation, many, many French people are drawn to it, and they do very well both on linear TV, but also digital TV. They are major contributors for M6+. News magazines, especially during prime time, Capital, Zone Interdite or Enquête Exclusive, Late Nights or 66 Minutes access prime time are still doing very well for 2025. We also had the Champions League final that was won by PSG, which was the second best audience for us for 2025 and the best for under 50s. All these efforts, all these changes and choices that were made in the last few years resulted in group audience performance that is good. The year 2025 was the best year in the last 3 years for the entire audience, the best of the last 4 years for the entire commercial target. You can see the 25, 49 age group and that's the same thing. If you look at Women Responsible for Purchases, WRPs, the best of the last 4 years, that's working quite well. And that's also visible when you're looking at the ratio between our ratings and those of our main competitors, especially for prime time because that's when we generate most of our revenues. The ratio is 76%, something that hasn't been achieved in the 2020s. That was M6. Now a word about what really matters, W9 with structural changes that were made with the arrival of the Tout Beau Tout N9uf chat show with Cyril Hanouna from 1st September onwards at 6:30 p.m. and Y’a que la vérité qui compte that also reached our schedule, and we still broadcast magazines and reality TV shows like Temptation Island. All that paid off in terms of audiences quite spectacularly so. You could see that on the slide. Ratings, both for the entire audience over 4s from 2.2 to 2.5 audience share, 40% growth, 14% growth. And it's even more striking if you look at the 25 to 49 age group, which is the main advertising target, the audience share went from 3.4% to 4.2%. That's 24% growth, mind you, which is quite remarkable, especially given the main changes in programming that were made in September. And so the channels ratings were only impacted for 1/3 of the year. Other DTT channels behaved very well as well. Sixster grew on its main target, WRPs under 50, 2.8. That's a historic year for Sixster and Gulli. During the daytime, it focuses on children between 4 and 10 and ratings reached record levels for the last 6 years. And finally, M6+ digital development. You know that it's a fundamental development area in our transformation, a model with 2 legs, linear and digital. We still have good figures for consumption and audiences with 29 million, a reach, a cover of 29 million French people a year, nearly 80% growth over 2 years. Consumption reached, well, exceeded 600 million hours viewed and streaming revenues stood at EUR 126 million plus, 73% over 2 years, well, compared to -- and plus 26% compared to last year. The goals that we set for M6+, you remember them, achieved EUR 200 million in revenues, EUR 125 million more than the 2023 revenues. We had EUR 52 million growth compared to the initial base. So we are slightly ahead of the milestones. So there, things are going very well. OpEx, we expect to spend EUR 100 million over 5 years, EUR 80 million in the first few years. We are slightly below that because consumption growth on the platform helped us make a few positive choices in terms of OpEx. For the first 2 years, we anticipated a negative contribution. It was negative, but significant -- not significantly less than the figures that we expected. We are at minus 8%, we expected 31%. Looking at EBITDA purely for the Video division, there was a slight deterioration in margin at 16.6% versus 17.4%. There were 3 effects. First, advertising revenues that declined. Of course, there was a big dramatic slowdown in H2. And that was slightly offset by the growth in advertising revenues for M6+. We responded to the slowdown in terms of linear OpEx. We saved EUR 25.4 million, and we kept investing in streaming to the tune of EUR 13.7 million that you can see. That's what we could say for video. When it comes to audio, we also started from a strong base with our essential shows that are #1 on their time slots, Ça peut vous arriver, Les Grosses Têtes, very strong morning shows on RTL, RTL2 and Fun Radio, and we added to this programming with well-known faces like Anne-Sophie Lapic on RTL, Marc-Olivier at 8:15. Anne-Sophie Lapic is in charge of the 6 to 8 p.m. slot and Ophélie Meunier is now having an interview on RTL 2 and Cyril Hanouna has a 3-hour time slot in the afternoon on fun radio. The digital dimension is not so much mentioned as video streaming, but the digital aspect for our audio channels is important. We are the only group that has such a strong presence. If you look at the top 30 podcasts, we've got 7 ranked amongst the top 30, especially with Les Grosses Têtes, which is the biggest podcast in France, has been so for a while with quite a big gap over the other. We've got 3 in the top 10. And of course, that's one of the main growth areas for [ Jonathan's ] team. now and for the next few years. Coming to more traditional audiences, we had good growth for all our stations, 16.7% plus 0.2% for audience share. Our main competitors, Radio France or other competitors were down. And you could see growth for the Lagardère Group, plus 0.7%. EBITDA margin for the audio division is still high, 24.4% margin with revenues that were slightly down. The third division, which is production and audiovisual rights. We announced that we had a quite exceptional year last year. I won't mention that again. So you have the figures for 2023, which were more nominal figures, a more nominal level for that business. So we had a good year for that division, 12.6%, plus 2 million compared to 2023. But yes, it's down by 4.7 million compared to 2024. We had 7.5 million admissions for the movies that we distributed or produced, especially Now You See Me Now, You Don't, that had a very good launch and Kaamelott Part 2 that you probably saw in a theater with 1 million admissions and [indiscernible] with a partner brand with slightly less than 1 million tickets sold. And finally, diversification. Our revenues held up almost at the same level, but profitability declined by about EUR 4 million, mostly due to a lower contribution from the SPF franchise business. 2025 was a big year for this business because we started the Sixième Avenue brand. The direct impact is that it reduced the SPI franchisees, and that had an impact on the value of the brand, and Jerome will get back to that in a second. And the other thing we can say about diversification is that for the first time, we had a full year for La Boîte aux Enfants, which operates Games Parc as Gulli Parc, so that we can add to the reputation of the Gulli brand outside of television. I will now give the floor to Jerome for investments. Jérôme Lefébure: Well, to add to diversifications as usual, let's look at equity affiliates. All these projects were companies with strong growth where we have a stake, but not a controlling stake. Three main divisions, digital marketing, streaming tech and other smaller projects with fundamental marketing adding to the division. For digital marketing, here, an essential aspect, our activities are still profitable with growth and profitability. And Atolls, as we listed on the side, is still growing its EBITDA and margin rate, 32% in 2025 because of all efforts in the countries where Atolls is present. So Atolls is still getting stronger on its markets. Streaming tech, most of that, there used to be Salto in the past. I remember -- I remind you that we lost a lot of equity on our Salto investments. Now we're investing in operating income for streaming and with our share in Bedrock, which provides the technological platform for M6+, but it also onboarded RTL+ last year, the #1 streaming platform in Europe with the largest number of subscribers. And for Bedrock, that's an opportunity because now Bedrock will become profitable operationally speaking. It has doubled its revenues without structurally increasing OpEx. And that's the reason why -- there's still a bit of operational losses related to the onboarding costs for Germany that were still a drag for 2025, but we're now looking at the future with more peace of mind. That's for our equity affiliates. Now moving on to the operating income, the profit and loss statement. As David said, a word about EBIT because the decline in the number of franchisees who chose to stick to the historic brand of SPF franchise and those who prefer to migrate to Sixième Avenue. At the end of the year, we recognized that the balance in the split of branches led to a lower value for intangible assets that were recognized in 2023 when we took over SPF franchise. So we had an impairment test that led to EUR 35.5 million in impairments on the SPF franchise legacy brands and the impairment was -- led to a decline on operating income. The other nonrecurring costs, very rare for M6 Group. Here, we have support costs for franchisees who decided to switch brands. That was a commitment we made to them, so that they could choose very easily between the 2 brands and their future. So an impact of a few million is a very small amount. And the rest, we decided to impair assets that were used to produce drama, TV drama in 2025. The financial income reflects our investment policy over the last few years and also dividend payouts that mechanically led to cash consumption and that reduced the remunerated cash base. And so the decline in the financial income reflects the decline in excess cash and the lower rates year-on-year. That explains the entire variation at EUR 55 million. Overall, this performance and these accounting corrections for intangible assets for the SPF franchise legacy brands led to a significant tax impact because the tax the tax paid was EUR 44 million versus EUR 56 million the previous year. And the Group contributed to this exceptional tax on profit for about EUR 11 million. Now if you look at the balance sheet, we still had equity close to EUR 1.3 billion versus EUR 1.32 billion, a slight decline related mostly to the payout policy and also the declining income for the year. But what matters, and you should look at current assets with growth from EUR 790 million to EUR 846 million. That growth reflected a content funding policy that I mentioned earlier, content funding because our production subsidiary is increasing investment in feature films that mobilizes resources before the movies are released, and we increased our prefinancing for the World Cup that started in 2024 and continued in 2025. Looking at the cash flow statement, you can see all the operations that I mentioned. First, our operating cash flow with a decline in business presented by David earlier, the WCR variation with investment in content and a decline in our payables over the year. Income tax paid is close to the previous year. That won't be the case in 2026 because we'll have a lower tax cash out because of the lower results. And we end the year with cash at EUR 216 million versus EUR 332 million the previous year and net cash and cash equivalents at EUR 140 million, reflecting all these financing operations. As you know, in 2024, we said when we launched the M6+ plan that we would have a payout policy on the increase. Why? Because we want to explain that we are confident about our ability to self-finance not just the transformation of our video and audio businesses towards digital, financing that requires working capital as we saw and also sometimes additional OpEx. And at the same time, ahead of us, we've got a year 2026 that looks favorable in terms of operational cash flow and therefore, free cash flow because we've already financed 3 quarters of the World Cup to date, and we'll only have 1 quarter that will have an impact on the cash for 2026 when we will cash in the entire revenues for the event, and that will probably have an impact on the income statement. David will get back to that later. So we'll propose the payout of a dividend of EUR 1.25 per share for the third year running for the next general meeting on the 28th of April. A few words about corporate social responsibility, social and environmental responsibility for the company. Just to share with you, the decarbonation of the group was validated by SBTi end of October. Well, on Scope 1 and 2, we have committed to reduce by 42% in carbon equivalent. And for Scope 3, we're going to have 2 subsets, one that will have an absolute reduction objective of minus 25%. The second one, 2/3 of our suppliers should have carbon emissions related to -- covered by SBTi engaged suppliers. The group is mobilized to respect those objectives. David? David Larramendy: To go back to the '26 priorities, we've talked about 2 things. the advertising market, of course, and also the impact of the World Cup. Regarding the advertising market, it is under pressure for this month and the next one with a lot of uncertainties, little visibility and a lack of visibility that's made worse by the World Cup and its expected impact that will move positions. That allows us to go back to the strength of the TV media for advertisers and media agency. There are 4 main forces, i.e., it's a media that has a daily reach of 72%, 71% of 25 to 49. It is a broadcasting context that's very safe for the brands, contrary to some platform. Thirdly, it is collective viewing. It is done with your family and your friends, which demultiplies the impact of advertising messages. And finally, it is meter that is increasingly digital with improved advertising offer, with specific elements for advertisers. Regarding the World Cup, of course, it is a wonderful opportunity for M6, a few figures. We have the next 2 editions, '26 from June 11 to 19th of July and 2034. And then we'll have other additions of the Champions League next year in Brazil, in 2027. 54 matches, 104 matches, 54 will be broadcast freely on M6, M6+ with expected audiences that will be very high. For example, probably 11 million for the first match between France and Senegal on June 16 at 9:00 p.m. Exceptional audience that you never find outside of the World Cup that can be monetized. There is regular growth of receipts after that kind of event because those events are increasingly rare and sought for by advert. We are beginning to market sponsorship at a very high level. We've launched the day before yesterday, the reservation platform for traditional spots in the competition. Of course, that has a positive impact on revenue. In the medium term, it's also good for the Group's positioning, be it vis-a-vis advertisers, distributors and viewers. Regarding the financial impact, Jerome said it, but I will repeat it. It will all depend, of course, on the results of the matches. It has an impact on -- a negative impact on the operating income and a cash -- positive cash flow effect. As Jérôme was saying, we will have the 3/4 of the competition, whereas we will get 100% of the receipts in '26. One word before we take a few questions, one word about the future. Our business is to make choices in terms of programs. We want to keep increasing our advertising revenue for audio and video. This is what we've been doing for years for RTL for 40 years for M6. We're going to keep doing that in the years to come. We're also going to transform -- keep transforming our operating model and try and adapt the regulatory framework in France. Regarding the transformation of the operating model, we're not going to wait for too long. We will try and be agile and adaptive. We are going to start a savings plan of EUR 80 million in the next 5 years around 3 areas. First, production costs. AI makes it possible to produce better with improved quality of production at a lower cost. We've started discussions with all of our producers to see how we could implement those optimizations in the years to come with a higher production value. We don't want to disinvest the content, but we want to improve them with existing and future tools. Second and third point, we're going to review all of our cost, suppliers, review our processes, simplify them, streamline our technical costs. The third point, of course, is what we want to do to adapt to the regulatory framework for the audiovisual industry. We said it for a long time. Today, the framework is obsolete. We have 6 points on which we're working. First, the 5-year rule that is blocking the consolidation of the French market. When you see what's going on in the U.S., it is ridiculous what we have in France. I hope that we'll be able to change the law in the months to come. Secondly, we still have prohibited sectors in France where you have no right to advertise. You probably know about it regarding little -- this prohibition is meaningless. It is defended by people who are stuck on old ideas that exist in no other country in Europe. So we're going to fight, be it in Paris or in Brussels for this prohibition to be lifted. Thirdly, the securing of funding, we are very much attached to the French creation model. That's why we want to change the model in order to change everybody's contribution. We have had a few steps made in that direction. I hope we will be able to continue in that direction in the next few years. Fourthly, we're going to keep reducing our broadcasting costs. We love DTT, but it should be less expensive. We started discussion with our main contact radio. Radio is a wonderful media, but it has 2 problems, legal mentions that are not adapted. I think there is a political consensus around that. We'll have to find the right legislative tool to treat differently radio and those protective messages. There are also the music quotas on which we want to fight. Since there is music streaming, how come we still have so many quotas, not only regarding French and foreign songs. We're also limited as to the number of titles we can broadcast. We have to cut the favorite songs and reduce the number of times you can play them. I don't really know why, but that is because of legislation. Last point, it's an important one also. It's one of the elements we have talked about. We have to ensure transparency and visibility for the different investments between national players and platforms. That will be good for everybody to know more about advertising investments. You know all of the subjects. Of course, it's always difficult to change the regulation. It is a harsh fight. We have to wage on a daily basis. We will keep doing it. We've already had a number of small victories beginning of '26, and we will keep fighting that fight. Thank you very much for listening to us. And now do not hesitate to ask questions if you have any. Operator: [Operator Instructions]. The first question comes from Eric Ravary from CIC. Eric Ravary: First question is on advertising trends. You said that in March and February, you had a downward pressure. Is it comparable to the fourth quarter, minus 7% on global advertising revenues? More globally, for 2026, do you share the views of your main competitors who said the market might go down to mid- to single digit. Regarding your savings plan of EUR 80 million. Do you have any phasing information regarding the impact? Thirdly, regarding the cost of the World Cup, which is exceptional this year. In front of that, are you going to save another programs in order to reduce the impact of the World Cup? Unknown Executive: Regarding your first question on the advertising trend for February and March, it's not really far from the last quarter. Regarding annual forecast, I will not comment the forecast made for us. It's too early. We don't have enough visibility to do such forecast. Regarding the phasing, what is clear is that all efforts should be started now. But regarding production costs, those are industrial processes, we have to change, and it's going to take some time, and there will be a progressive ramp-up in the impact on our cost basis, but the first impact should be felt this year even though some of our events have already been prepared. So the impact will be less. Regarding the cost of -- yes. This is what we have done in the fourth quarter, we'll pay attention to the advertising market. We're going to be careful. But we really want to keep nice audiences and keep the same momentum. But then, of course, we will have phasing that will follow the advertising market. We try to be very pragmatic. You need to have the right balance between defending audiences and defending our EBITDA. Operator: Next question by Jérôme Bodin from ODDO BHF. Jérôme Bodin: Sir. I just had a complementary question about the savings plan. It is mainly or fully related to the TV division, if I'm not mistaken, if that is not the case, what is the distribution between TV and other divisions? Regarding this cost reduction on content and production, you said that you were referring to your external supplier costs with producers. Can you tell us more about that savings plan? Or is it only related to internal costs? Or does it also concern procurement costs externally? Is it just a question of supply and demand, you depend on producers and competition. I would like to have more information about that. Unknown Executive: Jérôme, I understand -- your point, I understood the question about the distribution between -- it will be mainly about video and all support functions. But regarding your second question, you want to know whether we want to reduce our external costs or internal costs. To give you -- is that your question, Jérôme? Jérôme Bodin: Yes, that was my question. Unknown Executive: We have EUR 1 billion in costs to simplify 50% of programming and 50% of other costs regarding production costs of EUR 500 million. We're already working with all of our producers. We have 2 internal production companies, Studio 89 that produces for us Top Chef for example, an [ Seprod ] that produces news magazines we're going to work with those internal producers and with our external producers to define our savings program with an increase in what we call the production value. One is the restructuring cost -- not at this point, the majority comes from work done in collaboration with producers. Operator: [Operator Instructions]. We do not seem to have any more questions. I'm going to give the floor to David Larramendy to conclude this presentation. David Larramendy: Very well. Thank you, Madam. Thanks to all for having listened to our presentation and then -- we will see you at the end of the first half, and now we're going to prepare for the World Cup on our screens, June 11. Thank you. Operator: Ladies and gentlemen, the call is now over. Thanks to all for taking part. You can disconnect. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

45天前Insight Analytics约5分钟阅读

MTPVY 2025 Q4 财报电话会议

Operator: Good evening, ladies and gentlemen. Welcome to the presentation of Group M6's Annual results for 2025. [Operator Instructions]. I will now give the floor to Mr. David Larramendy, the CEO of the Group. You have the floor. David Larramendy: Thank you. Good evening, everyone. We are delighted I'm with Jérôme Lefébure here. We are happy to introduce the results for the year 2025 and to talk about the year 2026 that has already started. For 2026, only 2 figures to remember. That was a good year with an EBITDA of EUR 214 million for a current operating margin of 17%, and EBITDA margin, which is relatively high amongst our peers. If we take more figures for consolidated sales, EUR 1.256 billion with EUR 225 million of non-advertising revenues. So slightly over EUR 1 billion in advertising revenues, EUR 1.032 billion. And then I'll come back to the breakdown of advertising revenues for the main messages. We still have robust growth in streaming and the transformation of our model. You know that it's a major point with revenue growth of 27% at EUR 126 million for the year 2025. Strong profitability, I've talked about it. and the net income group share at EUR 123 million. Some of that is related to some operational declines and also some accounting items that we'll come back to in a minute. A word before we come back to our audiences for advertising, especially the main source. Video advertising revenue, EUR 884 million, minus 3.1%. We reckon that the entire market is down by 8%. So we significantly outperformed with a video advertising market share, which is around 27%. So 1.4 percentage points growth. This overperformance is explained by our ratings. We'll come back to that in a second and also a change in the number of players with the appearance of 2 less powerful channels and 2 channels that went off air in the year 2025. Looking at our programming schedule, we had a number of major changes, especially around access prime time -- well, access prime time doesn't necessarily have huge ratings, but that's 7 days a week, 52 weeks a year. So that makes a strong contribution to building up annual ratings, and we had good successes, especially with our game show offering and programs that work very well. The other specific focus that we had was entertainment, prime time entertainment programs with very good seasons. Well, you can see here, Farmer Seeks Wife or France's Got Talent generation after generation, many, many French people are drawn to it, and they do very well both on linear TV, but also digital TV. They are major contributors for M6+. News magazines, especially during prime time, Capital, Zone Interdite or Enquête Exclusive, Late Nights or 66 Minutes access prime time are still doing very well for 2025. We also had the Champions League final that was won by PSG, which was the second best audience for us for 2025 and the best for under 50s. All these efforts, all these changes and choices that were made in the last few years resulted in group audience performance that is good. The year 2025 was the best year in the last 3 years for the entire audience, the best of the last 4 years for the entire commercial target. You can see the 25, 49 age group and that's the same thing. If you look at Women Responsible for Purchases, WRPs, the best of the last 4 years, that's working quite well. And that's also visible when you're looking at the ratio between our ratings and those of our main competitors, especially for prime time because that's when we generate most of our revenues. The ratio is 76%, something that hasn't been achieved in the 2020s. That was M6. Now a word about what really matters, W9 with structural changes that were made with the arrival of the Tout Beau Tout N9uf chat show with Cyril Hanouna from 1st September onwards at 6:30 p.m. and Y’a que la vérité qui compte that also reached our schedule, and we still broadcast magazines and reality TV shows like Temptation Island. All that paid off in terms of audiences quite spectacularly so. You could see that on the slide. Ratings, both for the entire audience over 4s from 2.2 to 2.5 audience share, 40% growth, 14% growth. And it's even more striking if you look at the 25 to 49 age group, which is the main advertising target, the audience share went from 3.4% to 4.2%. That's 24% growth, mind you, which is quite remarkable, especially given the main changes in programming that were made in September. And so the channels ratings were only impacted for 1/3 of the year. Other DTT channels behaved very well as well. Sixster grew on its main target, WRPs under 50, 2.8. That's a historic year for Sixster and Gulli. During the daytime, it focuses on children between 4 and 10 and ratings reached record levels for the last 6 years. And finally, M6+ digital development. You know that it's a fundamental development area in our transformation, a model with 2 legs, linear and digital. We still have good figures for consumption and audiences with 29 million, a reach, a cover of 29 million French people a year, nearly 80% growth over 2 years. Consumption reached, well, exceeded 600 million hours viewed and streaming revenues stood at EUR 126 million plus, 73% over 2 years, well, compared to -- and plus 26% compared to last year. The goals that we set for M6+, you remember them, achieved EUR 200 million in revenues, EUR 125 million more than the 2023 revenues. We had EUR 52 million growth compared to the initial base. So we are slightly ahead of the milestones. So there, things are going very well. OpEx, we expect to spend EUR 100 million over 5 years, EUR 80 million in the first few years. We are slightly below that because consumption growth on the platform helped us make a few positive choices in terms of OpEx. For the first 2 years, we anticipated a negative contribution. It was negative, but significant -- not significantly less than the figures that we expected. We are at minus 8%, we expected 31%. Looking at EBITDA purely for the Video division, there was a slight deterioration in margin at 16.6% versus 17.4%. There were 3 effects. First, advertising revenues that declined. Of course, there was a big dramatic slowdown in H2. And that was slightly offset by the growth in advertising revenues for M6+. We responded to the slowdown in terms of linear OpEx. We saved EUR 25.4 million, and we kept investing in streaming to the tune of EUR 13.7 million that you can see. That's what we could say for video. When it comes to audio, we also started from a strong base with our essential shows that are #1 on their time slots, Ça peut vous arriver, Les Grosses Têtes, very strong morning shows on RTL, RTL2 and Fun Radio, and we added to this programming with well-known faces like Anne-Sophie Lapic on RTL, Marc-Olivier at 8:15. Anne-Sophie Lapic is in charge of the 6 to 8 p.m. slot and Ophélie Meunier is now having an interview on RTL 2 and Cyril Hanouna has a 3-hour time slot in the afternoon on fun radio. The digital dimension is not so much mentioned as video streaming, but the digital aspect for our audio channels is important. We are the only group that has such a strong presence. If you look at the top 30 podcasts, we've got 7 ranked amongst the top 30, especially with Les Grosses Têtes, which is the biggest podcast in France, has been so for a while with quite a big gap over the other. We've got 3 in the top 10. And of course, that's one of the main growth areas for [ Jonathan's ] team. now and for the next few years. Coming to more traditional audiences, we had good growth for all our stations, 16.7% plus 0.2% for audience share. Our main competitors, Radio France or other competitors were down. And you could see growth for the Lagardère Group, plus 0.7%. EBITDA margin for the audio division is still high, 24.4% margin with revenues that were slightly down. The third division, which is production and audiovisual rights. We announced that we had a quite exceptional year last year. I won't mention that again. So you have the figures for 2023, which were more nominal figures, a more nominal level for that business. So we had a good year for that division, 12.6%, plus 2 million compared to 2023. But yes, it's down by 4.7 million compared to 2024. We had 7.5 million admissions for the movies that we distributed or produced, especially Now You See Me Now, You Don't, that had a very good launch and Kaamelott Part 2 that you probably saw in a theater with 1 million admissions and [indiscernible] with a partner brand with slightly less than 1 million tickets sold. And finally, diversification. Our revenues held up almost at the same level, but profitability declined by about EUR 4 million, mostly due to a lower contribution from the SPF franchise business. 2025 was a big year for this business because we started the Sixième Avenue brand. The direct impact is that it reduced the SPI franchisees, and that had an impact on the value of the brand, and Jerome will get back to that in a second. And the other thing we can say about diversification is that for the first time, we had a full year for La Boîte aux Enfants, which operates Games Parc as Gulli Parc, so that we can add to the reputation of the Gulli brand outside of television. I will now give the floor to Jerome for investments. Jérôme Lefébure: Well, to add to diversifications as usual, let's look at equity affiliates. All these projects were companies with strong growth where we have a stake, but not a controlling stake. Three main divisions, digital marketing, streaming tech and other smaller projects with fundamental marketing adding to the division. For digital marketing, here, an essential aspect, our activities are still profitable with growth and profitability. And Atolls, as we listed on the side, is still growing its EBITDA and margin rate, 32% in 2025 because of all efforts in the countries where Atolls is present. So Atolls is still getting stronger on its markets. Streaming tech, most of that, there used to be Salto in the past. I remember -- I remind you that we lost a lot of equity on our Salto investments. Now we're investing in operating income for streaming and with our share in Bedrock, which provides the technological platform for M6+, but it also onboarded RTL+ last year, the #1 streaming platform in Europe with the largest number of subscribers. And for Bedrock, that's an opportunity because now Bedrock will become profitable operationally speaking. It has doubled its revenues without structurally increasing OpEx. And that's the reason why -- there's still a bit of operational losses related to the onboarding costs for Germany that were still a drag for 2025, but we're now looking at the future with more peace of mind. That's for our equity affiliates. Now moving on to the operating income, the profit and loss statement. As David said, a word about EBIT because the decline in the number of franchisees who chose to stick to the historic brand of SPF franchise and those who prefer to migrate to Sixième Avenue. At the end of the year, we recognized that the balance in the split of branches led to a lower value for intangible assets that were recognized in 2023 when we took over SPF franchise. So we had an impairment test that led to EUR 35.5 million in impairments on the SPF franchise legacy brands and the impairment was -- led to a decline on operating income. The other nonrecurring costs, very rare for M6 Group. Here, we have support costs for franchisees who decided to switch brands. That was a commitment we made to them, so that they could choose very easily between the 2 brands and their future. So an impact of a few million is a very small amount. And the rest, we decided to impair assets that were used to produce drama, TV drama in 2025. The financial income reflects our investment policy over the last few years and also dividend payouts that mechanically led to cash consumption and that reduced the remunerated cash base. And so the decline in the financial income reflects the decline in excess cash and the lower rates year-on-year. That explains the entire variation at EUR 55 million. Overall, this performance and these accounting corrections for intangible assets for the SPF franchise legacy brands led to a significant tax impact because the tax the tax paid was EUR 44 million versus EUR 56 million the previous year. And the Group contributed to this exceptional tax on profit for about EUR 11 million. Now if you look at the balance sheet, we still had equity close to EUR 1.3 billion versus EUR 1.32 billion, a slight decline related mostly to the payout policy and also the declining income for the year. But what matters, and you should look at current assets with growth from EUR 790 million to EUR 846 million. That growth reflected a content funding policy that I mentioned earlier, content funding because our production subsidiary is increasing investment in feature films that mobilizes resources before the movies are released, and we increased our prefinancing for the World Cup that started in 2024 and continued in 2025. Looking at the cash flow statement, you can see all the operations that I mentioned. First, our operating cash flow with a decline in business presented by David earlier, the WCR variation with investment in content and a decline in our payables over the year. Income tax paid is close to the previous year. That won't be the case in 2026 because we'll have a lower tax cash out because of the lower results. And we end the year with cash at EUR 216 million versus EUR 332 million the previous year and net cash and cash equivalents at EUR 140 million, reflecting all these financing operations. As you know, in 2024, we said when we launched the M6+ plan that we would have a payout policy on the increase. Why? Because we want to explain that we are confident about our ability to self-finance not just the transformation of our video and audio businesses towards digital, financing that requires working capital as we saw and also sometimes additional OpEx. And at the same time, ahead of us, we've got a year 2026 that looks favorable in terms of operational cash flow and therefore, free cash flow because we've already financed 3 quarters of the World Cup to date, and we'll only have 1 quarter that will have an impact on the cash for 2026 when we will cash in the entire revenues for the event, and that will probably have an impact on the income statement. David will get back to that later. So we'll propose the payout of a dividend of EUR 1.25 per share for the third year running for the next general meeting on the 28th of April. A few words about corporate social responsibility, social and environmental responsibility for the company. Just to share with you, the decarbonation of the group was validated by SBTi end of October. Well, on Scope 1 and 2, we have committed to reduce by 42% in carbon equivalent. And for Scope 3, we're going to have 2 subsets, one that will have an absolute reduction objective of minus 25%. The second one, 2/3 of our suppliers should have carbon emissions related to -- covered by SBTi engaged suppliers. The group is mobilized to respect those objectives. David? David Larramendy: To go back to the '26 priorities, we've talked about 2 things. the advertising market, of course, and also the impact of the World Cup. Regarding the advertising market, it is under pressure for this month and the next one with a lot of uncertainties, little visibility and a lack of visibility that's made worse by the World Cup and its expected impact that will move positions. That allows us to go back to the strength of the TV media for advertisers and media agency. There are 4 main forces, i.e., it's a media that has a daily reach of 72%, 71% of 25 to 49. It is a broadcasting context that's very safe for the brands, contrary to some platform. Thirdly, it is collective viewing. It is done with your family and your friends, which demultiplies the impact of advertising messages. And finally, it is meter that is increasingly digital with improved advertising offer, with specific elements for advertisers. Regarding the World Cup, of course, it is a wonderful opportunity for M6, a few figures. We have the next 2 editions, '26 from June 11 to 19th of July and 2034. And then we'll have other additions of the Champions League next year in Brazil, in 2027. 54 matches, 104 matches, 54 will be broadcast freely on M6, M6+ with expected audiences that will be very high. For example, probably 11 million for the first match between France and Senegal on June 16 at 9:00 p.m. Exceptional audience that you never find outside of the World Cup that can be monetized. There is regular growth of receipts after that kind of event because those events are increasingly rare and sought for by advert. We are beginning to market sponsorship at a very high level. We've launched the day before yesterday, the reservation platform for traditional spots in the competition. Of course, that has a positive impact on revenue. In the medium term, it's also good for the Group's positioning, be it vis-a-vis advertisers, distributors and viewers. Regarding the financial impact, Jerome said it, but I will repeat it. It will all depend, of course, on the results of the matches. It has an impact on -- a negative impact on the operating income and a cash -- positive cash flow effect. As Jérôme was saying, we will have the 3/4 of the competition, whereas we will get 100% of the receipts in '26. One word before we take a few questions, one word about the future. Our business is to make choices in terms of programs. We want to keep increasing our advertising revenue for audio and video. This is what we've been doing for years for RTL for 40 years for M6. We're going to keep doing that in the years to come. We're also going to transform -- keep transforming our operating model and try and adapt the regulatory framework in France. Regarding the transformation of the operating model, we're not going to wait for too long. We will try and be agile and adaptive. We are going to start a savings plan of EUR 80 million in the next 5 years around 3 areas. First, production costs. AI makes it possible to produce better with improved quality of production at a lower cost. We've started discussions with all of our producers to see how we could implement those optimizations in the years to come with a higher production value. We don't want to disinvest the content, but we want to improve them with existing and future tools. Second and third point, we're going to review all of our cost, suppliers, review our processes, simplify them, streamline our technical costs. The third point, of course, is what we want to do to adapt to the regulatory framework for the audiovisual industry. We said it for a long time. Today, the framework is obsolete. We have 6 points on which we're working. First, the 5-year rule that is blocking the consolidation of the French market. When you see what's going on in the U.S., it is ridiculous what we have in France. I hope that we'll be able to change the law in the months to come. Secondly, we still have prohibited sectors in France where you have no right to advertise. You probably know about it regarding little -- this prohibition is meaningless. It is defended by people who are stuck on old ideas that exist in no other country in Europe. So we're going to fight, be it in Paris or in Brussels for this prohibition to be lifted. Thirdly, the securing of funding, we are very much attached to the French creation model. That's why we want to change the model in order to change everybody's contribution. We have had a few steps made in that direction. I hope we will be able to continue in that direction in the next few years. Fourthly, we're going to keep reducing our broadcasting costs. We love DTT, but it should be less expensive. We started discussion with our main contact radio. Radio is a wonderful media, but it has 2 problems, legal mentions that are not adapted. I think there is a political consensus around that. We'll have to find the right legislative tool to treat differently radio and those protective messages. There are also the music quotas on which we want to fight. Since there is music streaming, how come we still have so many quotas, not only regarding French and foreign songs. We're also limited as to the number of titles we can broadcast. We have to cut the favorite songs and reduce the number of times you can play them. I don't really know why, but that is because of legislation. Last point, it's an important one also. It's one of the elements we have talked about. We have to ensure transparency and visibility for the different investments between national players and platforms. That will be good for everybody to know more about advertising investments. You know all of the subjects. Of course, it's always difficult to change the regulation. It is a harsh fight. We have to wage on a daily basis. We will keep doing it. We've already had a number of small victories beginning of '26, and we will keep fighting that fight. Thank you very much for listening to us. And now do not hesitate to ask questions if you have any. Operator: [Operator Instructions]. The first question comes from Eric Ravary from CIC. Eric Ravary: First question is on advertising trends. You said that in March and February, you had a downward pressure. Is it comparable to the fourth quarter, minus 7% on global advertising revenues? More globally, for 2026, do you share the views of your main competitors who said the market might go down to mid- to single digit. Regarding your savings plan of EUR 80 million. Do you have any phasing information regarding the impact? Thirdly, regarding the cost of the World Cup, which is exceptional this year. In front of that, are you going to save another programs in order to reduce the impact of the World Cup? Unknown Executive: Regarding your first question on the advertising trend for February and March, it's not really far from the last quarter. Regarding annual forecast, I will not comment the forecast made for us. It's too early. We don't have enough visibility to do such forecast. Regarding the phasing, what is clear is that all efforts should be started now. But regarding production costs, those are industrial processes, we have to change, and it's going to take some time, and there will be a progressive ramp-up in the impact on our cost basis, but the first impact should be felt this year even though some of our events have already been prepared. So the impact will be less. Regarding the cost of -- yes. This is what we have done in the fourth quarter, we'll pay attention to the advertising market. We're going to be careful. But we really want to keep nice audiences and keep the same momentum. But then, of course, we will have phasing that will follow the advertising market. We try to be very pragmatic. You need to have the right balance between defending audiences and defending our EBITDA. Operator: Next question by Jérôme Bodin from ODDO BHF. Jérôme Bodin: Sir. I just had a complementary question about the savings plan. It is mainly or fully related to the TV division, if I'm not mistaken, if that is not the case, what is the distribution between TV and other divisions? Regarding this cost reduction on content and production, you said that you were referring to your external supplier costs with producers. Can you tell us more about that savings plan? Or is it only related to internal costs? Or does it also concern procurement costs externally? Is it just a question of supply and demand, you depend on producers and competition. I would like to have more information about that. Unknown Executive: Jérôme, I understand -- your point, I understood the question about the distribution between -- it will be mainly about video and all support functions. But regarding your second question, you want to know whether we want to reduce our external costs or internal costs. To give you -- is that your question, Jérôme? Jérôme Bodin: Yes, that was my question. Unknown Executive: We have EUR 1 billion in costs to simplify 50% of programming and 50% of other costs regarding production costs of EUR 500 million. We're already working with all of our producers. We have 2 internal production companies, Studio 89 that produces for us Top Chef for example, an [ Seprod ] that produces news magazines we're going to work with those internal producers and with our external producers to define our savings program with an increase in what we call the production value. One is the restructuring cost -- not at this point, the majority comes from work done in collaboration with producers. Operator: [Operator Instructions]. We do not seem to have any more questions. I'm going to give the floor to David Larramendy to conclude this presentation. David Larramendy: Very well. Thank you, Madam. Thanks to all for having listened to our presentation and then -- we will see you at the end of the first half, and now we're going to prepare for the World Cup on our screens, June 11. Thank you. Operator: Ladies and gentlemen, the call is now over. Thanks to all for taking part. You can disconnect. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

45天前Insight Analytics约5分钟阅读

GMAB.CO 2025 Q4 财报电话会议

Operator: Hello, and welcome to the Genmab Full Year 2025 Financial Results Conference Call. As a reminder, this conference call is being recorded. During this telephone conference, you may be presented with forward-looking statements that include words such as believes, anticipates, plans or expects. Actual results may differ materially, for example, as a result of delayed or unsuccessful development projects. Genmab is not under any obligation to update statements regarding the future nor to confirm such statements in relation to actual results, unless this is required by law. Please also note, Genmab may hold your personal data as indicated by you as a part of our Investor Relations outreach activities in order to update you on Genmab going forward. Please refer to our website for more information on Genmab and our privacy policy. I would now like to hand the conference over to our first speaker today, Jan van de Winkel. Please go ahead. Jan van de Winkel: Hello, and welcome to our financial results call for 2025. With me today is our Chief Financial Officer, Anthony Pagano; and our Chief Commercial Officer, Brad Bailey. For the Q&A, we will be joined by our Chief Medical Officer, Tahi Ahmadi; and our Chief Development Officer, Judith Klimovsky. As noted, we will be making forward-looking statements, so please keep that in mind. As we reflect on 2025, I would like to remind you of the commitments that we made at the beginning of the year. We said that we would accelerate the development of our high-impact late-stage pipeline, that we would maximize the potential of our commercialized medicines and that we would deliver on our capital allocation priorities. I'm pleased to say that we have delivered on these commitments. And we begin 2026 with a diversified, high-quality revenue base and a late-stage portfolio that can drive sustainable growth well into the 2030s. In 2025, we grew total revenue by 19%, fueled by both our royalty portfolio and sales from our own medicines. And we also invested fully [ in line ] with our capital allocation priorities. Importantly, we have also grown operating profit even while making these strategic investments. 2025 was marked by some significant milestones in our mission to deliver innovative medicines to patients. Highlights include positive momentum for EPKINLY as it continues to demonstrate the potential to become a core therapy in B-cell lymphomas, its FDA approval in second-line follicular lymphoma in combination with R2 as well as the unprecedented data in this indication are key milestones. Taken together, these move treatment into earlier lines of therapy and expand our impact for people living with follicular lymphoma. We also built on our commitment to the GynOc community. In addition to the availability of TIVDAK in both Japan and Europe, we expanded the development of Rina-S, ending the year with 3 Phase III trials across PROC, endometrial cancer and PSOC. Finally, a pivotal step on our journey to sustainable diversified growth was our acquisition of Merus, which enhanced our late-stage portfolio with petosemtamab. Petosemtamab -- with petosemtamab joining EPKINLY and Rina-S, we have a strong pipeline of late-stage assets that will provide us with multiple value-creating catalysts in 2026 and in the future. Now let's take a look at the strength of these 3 programs on the next slide. With the 5 combined breakthrough therapy designations, these 3 programs have multibillion-dollar potential, and they firmly underpin our long-term growth. EPKINLY is currently the only bispecific antibody with a dual indication across B-cell malignancies in the U.S., Europe and Japan. And following unprecedented data, EPKINLY plus R2 is well positioned to become a best-in-class option in second-line plus follicular lymphoma. Rina-S is a folate receptor alpha targeted ADC designed to broaden eligibility beyond high expressers. Based on current expression distributions, this could expand the addressable population by as much as 3x versus approved medicines that are restricted to high folate receptor alpha expression. And finally, petosemtamab, a potentially transformative EGFR LGR5 bispecific antibody with compelling data in both first-line and later-line recurrent and metastatic head and neck cancer. As a reminder, in the first-line setting, petosemtamab in combination with pembro achieved a 63% response rate, and that is more than 3x higher than the 19% that has been observed with the standard of care. 2026 will be a defining year for all 3 of these programs, as we will see on the next slide. We expect up to 6 potential -- potentially registrational data readouts that could set the stage for multiple important product launches and line extensions in 2027. In the second half of the year, we expect Phase II data for Rina-S in platinum-resistant ovarian cancer. We also anticipate that one or both Phase III trials for petosemtamab in first and second line or third line head and neck cancer will deliver top line data in the second half. And while we anticipate around 25,000 potential patients for later lines of therapy in first-line head and neck cancer, this increases to an additional 41,000 patients. For EPKINLY, we anticipate data from 2 Phase III trials in diffuse large B-cell lymphoma. The indication with the largest addressable patient population, around 70,000 people is, of course, frontline diffuse large B-cell lymphoma, and we are looking forward to data in this indication in combination with R-CHOP this year. We are also looking forward to data in the first half of the year in second-line plus diffuse large B-cell lymphoma in combination with lenalidomide. Now as you are aware, in January, we announced top line results from the Phase III EPCORE DLBCL-1 trial of EPKINLY monotherapy. The results showed an improvement in progression-free survival as well as improvements in complete response rates, duration of response and time to next treatment. And in fact, this is the first Phase III study to demonstrate an improvement in progression-free survival in patients with relapsed or refractory diffuse large B-cell lymphoma who are treated with the CD3/CD20 T-cell engaging bispecific monotherapy. Overall survival did not reach statistical significance and further analysis of the data is ongoing, including the potential impact of a variety of factors, including COVID-19 and the increasing availability of novel anti-lymphoma therapies. The full trial results will be submitted for presentation at a future medical meeting, and we will engage with global regulatory authorities on next steps. The monotherapy results do not change our expectations for our other Phase III trials. And we are very confident that these studies continue to have the potential to move EPKINLY earlier in the treatment paradigm and significantly increase its addressable population from approximately 27,000 patients today to almost 150,000 patients by early in the next decade. The data presented across EPKINLY, Rina-S and petosemtamab in 2025 strengthened our conviction in these programs. Now in 2026, it is the meaningful registrational readouts that will be the catalysts that allow us to potentially bring these antibodies to patients in 2027. I'm pleased to now hand you over to Brad for a review of the recent commercial performance for EPKINLY and TIVDAK. Brad Bailey: Thanks, Jan. 2025 marked another successful year for our commercialization team. We maintained leading positions for our proprietary brands globally, and we made important progress evolving into a wholly owned model, fueling our long-term growth engine. In the past year, we successfully executed 4 key launches across our portfolio, 2 of which were led entirely by Genmab, demonstrating the strength of the commercialization model we've built in the U.S., Japan and now in Europe. We expanded our footprint to 3 additional markets, opening business operations in Germany, the U.K. and France, and we delivered on our commitment to bringing our antibody-based medicines to patients in an area of high need. To this end, TIVDAK became the first ADC approved in recurrent or metastatic cervical cancer in the EU, U.K. and Japan, providing a much needed option for patients whose disease progresses after initial therapy and where outcomes have historically been poor. Additionally, when its approval in the U.S. -- with its approval in the U.S. in relapsed or refractory follicular lymphoma, EPKINLY became the first bispecific antibody approved in any form of non-Hodgkin's lymphoma in the second-line setting and the first bispecific combination therapy approved in the lymphoma space. These milestones represent progress for patients, and they set the foundation for our growth trajectory in gynecologic cancers, along with Rina-S in the future and further into B-cell malignancies. Through our efforts in 2025, sales of our proprietary medicines totaled $632 million. This is up 54% year-over-year and accounting for approximately 28% of our total revenue growth. We expect this growth trajectory to continue in 2026, grounded in the strong foundation we've built as we deliver our own medicines to an increasing number of patients around the world. Now let's take a closer look at EPKINLY. We closed out 2025 with solid performance, achieving $468 million in sales for the year, which represents a 67% year-over-year increase. This performance was driven by continued growth for the brand across geographies as the first and only bispecific with approved dual indication in diffuse large B-cell lymphoma and FL in Europe, Japan and the U.S. In fact, EPKINLY closed 2025 with regulatory approvals in more than 65 countries, nearly all of which feature the dual indication. We continue to be encouraged by EPKINLY's strong momentum and the positive feedback we hear from physicians across geographies regarding EPKINLY's differentiated clinical profile, powerful efficacy and proven safety and the value of having a single dual indication option across DLBCL and FL. In the U.S., this momentum translated to continued growth for EPKINLY across sites of care with an acceleration in new sites ordering, including in the community and the majority of health systems now ordering from multiple sites. As expected, following the launch of EPKINLY in second-line FL in November, we're seeing increased uptake suggesting that this approval will be a growth driver for the brand. In Japan, we continue to see EPKINLY's launch in third line plus FL build on the brand's success in large B-cell lymphoma. This is driven in large part by EPKINLY's dual indication differentiation and execution by our field teams to activate sites. Across all other markets, we continue to increase our presence through our partner, AbbVie, and its global footprint. We closed out the year with yet another quarter of solid sales for EPKINLY in these markets as we continue to see rapid uptake in countries gaining access and reimbursement. Looking ahead, 2026 will be a pivotal year for EPKINLY as we advance our position in early lines of therapy and anticipate key data readouts supporting EPKINLY's versatility and status as the core therapy in B-cell malignancies. Our focus is on delivering EPKINLY to as many patients as possible, particularly in early lines of therapy where we see the market opportunity and critically where we may have the opportunity to truly transform the trajectory of these diseases for patients. To that end, we're maximizing our first-mover advantage in second-line FL in the U.S., and we expect to build on this opportunity across markets with anticipated approvals in this setting in Europe and Japan later this year. With this traction in earlier lines of FL, we're looking towards key readouts in 2026 in first- and second-line DLBCL with fixed duration EPKINLY combination therapies to further strengthen EPKINLY's position in DLBCL. Together with a robust development program for EPKINLY and strong execution by our teams, we see a clear opportunity for EPKINLY to achieve blockbuster status over the next few years. Moving now to TIVDAK. TIVDAK continues to be recognized as the global standard of care in recurrent or metastatic cervical cancer. In 2025, TIVDAK generated $164 million in sales, representing a 26% year-over-year increase. TIVDAK continues to perform well across both new and established markets, highlighting the clear need for treatments that improve survival for women with advanced cervical cancer across geographies. In the U.S., notably, TIVDAK posted its fourth consecutive year-over-year growth, underscoring its continued market leadership. This strong stable performance continues to be driven by the depth and breadth of sites of care using TIVDAK. In Japan, TIVDAK demonstrated another strong quarter of continued performance, underscoring the traction it's gaining in the second-line setting and the high patient need in recurrent and metastatic cervical cancer in the country. This trend continued in Europe where the launch in Germany continues to be off to an encouraging start with strong consistent uptake and positive physician feedback. As the first medicine we've launched in Europe independently, our efforts in recent months have demonstrated our ability to strategically build infrastructure and scale in new markets. We received MHRA approval in December in the U.K. and are now working towards reimbursement to bring TIVDAK to more patients as soon as possible. As we look ahead to the new fiscal year, we have the foundation in place to continue this momentum and bring TIVDAK to additional markets. Infrastructure and operations are well underway in new markets with our teams executing in preparation for exciting launches on the horizon. We expect to see continued positive performance across markets as we strengthen and scale our presence and broaden our impact within the gynecologic cancer community. Wrapping up, 2025 was a critical year in our company's evolution. We built on our proven launch expertise and scientific strength and achieved key milestones to solidify our commercialization model and business operations that will unlock our ability to deliver on the significant growth opportunities ahead of us. Our proven ability to evolve our model in the U.S. and Japan, coupled with the early traction we are seeing in Europe, gives us the confidence that we have the pieces in place today to drive future growth and expansion. With this strong foundation, 2026 is shaping up to be another meaningful year for Genmab. We will grow the impact of our proprietary portfolio, expand our footprint and sharpen our capabilities as we look toward entering new and larger market opportunities and delivering on the blockbuster potential of EPKINLY, Rina-S and petosemtamab in the coming years. With that, I'll hand the call over to Anthony to discuss our financials. Anthony Pagano: Thanks, Brad. 2025 was a year of strong execution for Genmab with solid revenue growth, expanding profitability and disciplined investment. Looking ahead, our 2026 guidance reflects the same framework we outlined at Q3 and at the time of the Merus acquisition. And it also reflects our continued commitment to funding growth while maintaining substantial profitability. Now before diving into the numbers, please note that the results and guidance I will review exclude the impact of acquisition-related expenses, including amortization. A reconciliation to our reported results is included in the appendix. In 2025, total revenue increased 19% to $3.7 billion, reflecting strong execution across our royalty portfolio as well as continued progress for our commercialized medicines. We also continue to improve the quality of our revenue profile with a higher contribution from our own medicines, especially EPKINLY, further diversifying our revenue base. In addition, we strengthened our long-term growth potential with the addition of petosemtamab to our late-stage pipeline. Alongside the Merus acquisition, we made targeted strategic investments during the year with operating expenses up 13%. The investments we've made in building our commercialization capabilities are already delivering for us today. And importantly, they are positioning us to support expansion into earlier lines for EPKINLY and the potential launches of Rina-S and petosemtamab in 2027. And even with these investments, we expanded operating profit to $1.26 billion, reflecting strong execution and increasing operating leverage as the business scales. Overall, 2025 demonstrates the strength and quality of Genmab's underlying financial performance. Turning to our 2026 guidance. Our framework is straightforward. Revenue growth enables strategic investment, which supports long-term value creation. At the midpoint, we expect 14% total revenue growth, driven by continued momentum in EPKINLY and our royalty portfolio, further enhancing revenue quality. More specifically, we expect DARZALEX net sales in the range of $15.6 billion to $16.4 billion. As discussed previously, expectations for operating expenses were in a reasonable place. For 2026, the increase in operating expenses reflects planned investments to advance late-stage development for petosemtamab and Rina-S as well as launch readiness activities to support multiple potential product launches. Even with the strategic step-up, our guidance delivers on our commitment to maintain substantial profitability in 2026. With that, now I would like to provide some context for how revenue growth supports a deliberate increase in investments while delivering $1.15 billion of operating profit at the midpoint for 2026. And you can see this on the chart on the right. What really stands out is the strength of our underlying business, demonstrated by strong organic operating profit growth before our planned investments in petosemtamab. Here, we are choosing to reinvest part of the operating leverage now to strengthen future growth drivers while continuing to manage costs actively and maintain profitability discipline. This balance, reinvesting to support growth while driving substantial profitability is a core feature of our operating model. Taken together, our 2025 results and 2026 guidance demonstrate consistent delivery against our financial commitments. Our capital allocation framework remains fully aligned with our strategy to drive sustainable growth well into the 2030s. First, we will continue to invest to accelerate our late-stage pipeline and maximize the success of our commercialized medicines, including launch readiness. These investments are intended to generate meaningful revenue for us in the future. Second, we will continue the rapid integration of Merus to accelerate value capture while maintaining focus and prioritization. And third, we remain committed to deleveraging, targeting gross leverage below 3x by the end of 2027, maintaining balance sheet strength and flexibility. In summary, our performance in 2025 underscores our ability to deliver revenue growth, our ability to advance key pipeline assets and our ability to maintain strong profitability through disciplined execution. Looking ahead to 2026, we are building on this momentum through disciplined prioritization of our investments, continued operating discipline and expansion of market opportunities. This positions us for sustained growth and long-term value creation. And on that note, I'm going to hand you back over to Jan. Jan van de Winkel: Thank you, Anthony. Our confidence in our ability to execute on key data readouts in 2026 and subsequent high-impact launches in 2027 come from our track record. We have proven that we are excellent evaluators of innovation and that we deliver on our promises. We have also proven that we are disciplined in our execution against our capital allocation framework and in the prioritization of our investments, and we are committed to delivering profitable growth. Genmab is a scaled oncology biotech business with strong momentum, an increasingly diversified growth profile and multiple catalysts ahead. As we begin 2026, our focus remains on translating our antibody science and development expertise into meaningful breakthroughs for patients and long-term value for shareholders. That ends our formal presentation. Thank you for listening. Operator, please open the call for questions. Operator: [Operator Instructions]. And now we're going to take our first question, and it comes from the line of Jonathan Chang from Leerink. Jonathan Chang: Can you discuss what the next steps are for EPKINLY following the results of the EPCORE DLBCL-1 study? Can you still get the second line plus label with the EPCORE DLBCL-4 combination study? And what was the rationale, I guess, behind using the monotherapy DLBCL-1 study as the confirmatory study in the first place? Jan van de Winkel: Thanks, Jonathan, for the questions. I will hand it over to Tahi to explain in further detail what the next steps are for the regulatory part for [ 05 ] Tahi? Tahamtan Ahmadi: Yes. Thank you, Jan, and thank you, Jonathan, for the question. Yes, as we already indicated in the press release, I mean, the [ 05 ] study is positive by PFS as a single agent beating a chemo-immuno regimen on progression-free survival, but it missed the overall survival confounded by key aspects that are already discussed in the community. One is being COVID. The study was involved heavily during the Omicron wave. And the other one is the emergence of access to bispecifics, which we are an important part as well. So we will have this discussion with the agencies. They are prespecified analysis in the protocol that were already agreed prior to the readout on these 2 major biases. And so we'll have this conversation both with the FDA and of course, with the European health authorities and global health authorities on the data set. And we're also going to have this conversation with you guys once it is in the public domain. As it relates on the rationale for -- which was your third question on the rationale for why this is the confirmatory study, it's important to put yourself back into the situation where we were -- when this [ kidney ] program started. This was the first Phase III to be initiated. And hence, it was a confirmatory study because the requirement for an accelerated approval is that you have a confirmatory study initiated and really actually well on enrolled by the time you file for the accelerated approval, which is why this was initially -- it was for a long time, the only diffuse large B-cell study, the confirmatory study. Discussions are ongoing with the agencies about all the other Phase III studies that we have ongoing to specifically for which we both already guided that we will have a readout this year. There is absolutely from our end and no indication from any of the health authority interactions, any readout to the fail ability of the other study that is being conducted and that we already guided will read out in the first half of this year, which is the combination with [ EPCORE ] in second line, third line. This is a separate study that was set up separately. This was started and initiated after the Omicron wave. It is testing a combination regimen with lenalidomide with a fixed duration, as Brad was alluding to earlier. So it's a different study with different opportunities. And we will be looking forward to have this data in our hand and to also like communicate them to the community and then to engage with health authorities as appropriate. Jan van de Winkel: Thanks Tahi. Jonathan, I think that answered your question? Jonathan Chang: Understood. Thank you very much. Operator: The next question comes from the line of Asthika Goonewardene from Truist. Asthika Goonewardene: So you presented EPCORE outpatient data late last year. I just want to get an update from you on how this data has been adapted to change in the practice in the U.S. I guess given maybe you can give us an idea of what proportion of community clinics that are still sending patients to DLBCL patients to a large center to get that step-up dose monitoring. And then just maybe to tag on to Jonathan's question, could you put us at ease and just tell us what you think is the likelihood that you'll be able to convince the regulatory agencies to consider one of the many other EPCORE Phase III study readouts that are coming this year as the confirmatory study? Jan van de Winkel: Thanks, Asthika, for the questions. I will first hand it over to Tahi and then also Brad will definitely be able to comment on the community center use of EPCORE, I believe. But Tahi, why don't you start with the first question? Tahamtan Ahmadi: Yes. I mean thank you, Asthika, for this question. So I'm going to reiterate the green, but reaffirm what I said earlier. We have, at this point, 3 Phase IIIs in diffuse large B-cell, one that we already announced the results and then 2 that we already announced we're going to have the results this year, one in the first half at least, and the other one we have not committed to when. So we are extremely comfortable to a degree also by the precedent already set on the [ glofi ] program, but also generally speaking, that this is really not a concern on our end in terms of the confirmation trial. We have 2 major Phase IIIs that are reading out in addition to a study that was positive on PFS, but confounded on OS. So this is -- I can -- as much as I can say at this point, we are not concerned about this and don't see a reason to be concerned also if you look at the precedent that was set by [ Russia ]. On the outpatient, I'll leave it to Brad to talk about the pattern of prescription. But what I would say to the outpatient study is that, that was an important strategy for a variety of reasons. One is, of course, what Brad talk about practice patterns in the community, but it's also an incredibly important component for our overall regulatory strategy to modify the label and to have label language that then also facilitates administration of EPKINLY in the community. And Brad, you can take it from here. Brad Bailey: Yes. No, Tahi, just dovetailing off that, you're absolutely correct. And we do see this as certainly an enabler, if you will. And as we continue to evolve and receive physician feedback, specifically moving into even earlier -- more early lines of therapy, see this as a potential great opportunity for us. Operator: Now we're going to take our next question. And it comes from the line of Xian Deng from UBS. Xian Deng: So I have one on Rina-S, please. So given the pivotal Phase II that's due to come out this year, and given this is kind of pivotal Phase II and there -- it's not a formal Phase III. So just wondering what determines when you can decide you are going to have a readout? What is the definition of this? Because I guess here, you don't have to have the formal PFS here and it's an open-label trial. So that's the first question. And then sorry, the second one, sorry, just a very quick yes and no question, please. So for EPKINLY frontline DLBCL trial, just wondering, can you confirm whether you have passed the interim, please? Jan van de Winkel: Thanks, Xian, for the questions. The first one, I will ask Judith to address and then Tahi can give a very short answer on the second question. Judith, why don't you start on the Phase II data for Rina? Judith Klimovsky: Yes. Thank you for the question. So the study was designed or the pivotal arm with a potential outcome of being supportive of accelerated approval and accelerated approval is a path that the FDA has for drugs when the results support with the substantial benefit over current standard of care with endpoints that can predict substantial benefit. So the way the Phase II design is, is for ORR and duration of response, which is our validated endpoint to [ slate ] for clinical benefit. Now the accelerated approval is also dependent on having Phase IIIs with clinical endpoint. As you know, we have [ O2 ] study ongoing, which is a Phase III with PFS as a primary endpoint. Jan van de Winkel: Thank you, Judith. And then maybe Tahi, can you give some color on the frontline diffuse large B-cell lymphoma study? Tahamtan Ahmadi: Thank you for the question, and I appreciate the attempt of yes, no question. But we're just going to reiterate what we've been saying publicly since JPMorgan that we expect the readout for the study to happen in '26. Operator: Now we are going to take our next question and the question comes from the line of Rajan Sharma from Goldman Sachs. Rajan Sharma: So just same with EPKINLY. Could you just discuss your expectations into the EPCORE DLBCL-4 trial? What do you think is a clinically meaningful outcome here, especially relative to LUNSUMIO and POLIVY? Jan van de Winkel: Thanks, Rajan, for the question. Tahi, can you handle the -- address the DLBCL-4 question? Tahamtan Ahmadi: Well, I mean, the anticipation is that it will actually be a trial that will be registered, which is the first differentiation to the studies that you mentioned. That's, I think, the intent as a study that has a -- as I said, combination with lenalidomide that was enrolled exclusively after the Omicron wave, which was a significant confounder for a lot of the studies that were run with these bispecifics in the diffuse large B-cell space, not only the diffuse large B-cell, but relevant to this conversation. And we're really excited and looking forward to this data set, which will also have a larger portion of second-line patients. And so the expectation is that this is a trial that will be positive and then will lead to registration in second line and third line. Jan van de Winkel: Thanks, Tahi. Thanks for the question. Let's move on to the next one. Operator: And now we're going to take our next question from Judah Frommer from Morgan Stanley. Judah Frommer: Just curious on your thoughts on the pembro approval in PROC recently and kind of implications for Rina-S. And then maybe just more high level, we appreciate the guidance on DARZALEX. But I guess just kind of given positive data in combo with bispecific at ASH. Just curious if you have any kind of high-level thoughts on the DARZALEX trajectory over the coming years, maybe versus where your expectations were 6, 12 months ago for that drug? Jan van de Winkel: Thanks, Judah. Judith, can you start and then maybe Tahi can chip in. Judith Klimovsky: Yes. Thank you for the question. So we are aware of the data and the approval. I think it's a good potential option for patients. However, 2 things not to underestimate. First, that the approval is in PD-L1 positive CPS 1 above 1% and this encompass around 70% of the population; and b, the combination includes [ wekitaxel ], which is not minor for patients. So on the one hand, it is great that patients have another option. On the other hand, we believe that Rina can be more transformative and serve the full broad population. Jan van de Winkel: Thanks, I think that addresses your question, Judah. So let's move on to the next one. Operator: The next question comes from the line of James Gordon from Barclays. James Gordon: James Gordon from Barclays. Also a question on EPKINLY in first-line DLBCL. So my question was, what are you hoping to see when the trial reports in terms of the OS benefit? Would you hope to see a strong OS benefit even though it is a first-line trial and some other agents like POLIVY has struggled to do that? I know that related to lack of OS benefit. And then connected to it, just what is the efficacy bar? Are you just hoping to be start? Would you need to be materially better than POLIVY [indiscernible] given that Roche are doing a CD3 CD20 on top of POLIVY? And maybe also just thoughts on MONJUVI frontline trial as well in terms of whether that sets any sort of bar. Jan van de Winkel: Thank you, James, for the questions. This is definitely Tahi questions and very exciting questions. So let's see what Tahi answers. Tahamtan Ahmadi: All right. Let's try my best to answer your questions in sequence. I think the first part that I think we've been very clear for a while is that the primary endpoint is PFS. The expectation on our end, the anticipation and the excitement is that we believe that kidney in combination with [indiscernible] will be transformative. Of course, the data will have to show. We've been arguing for a while that the robust Phase II data sets have been quite informative in our development on the second-line follicular lymphoma, just to remind everybody again, the Phase III mimic almost to a point the efficacy that we had seen in the second-line data set in combination with R2 in second-line follicular lymphoma. And if you then go back and revisit the data that's in the public domain on R-CHOP combination with the kidney and IPI-325 and particularly pay attention to the CR, which is the most relevant data point. So there is a reason, and this is where the excitement and the enthusiasm and the expectation comes from our end to believe that the study will be quite positive. I'm not going to speculate on what positive really, really means, but certainly, on a compound by compound, we anticipate that it's going to exceed the current reported Phase III data sets that are positive. As it relates to OS, you're absolutely right. In diffuse large B-cell OS is an endpoint that lags to a degree also by a change on factors, but also because of the impact on PFS. So I think this is a discussion we can have once we have the data set and we can have a conversation on the scale of improvement in PFS and how that translates to us. Jan van de Winkel: Thanks, Tahi. I think we have to leave it with that, but that was a very good answer. Thanks, James, for the question. Let's move on to the next question. Operator: And the next question comes from the line of Zain Ebrahim from JPMorgan. Zain Ebrahim: A quick clarification question on EPKINLY, just in the first-line DLBCL trial in terms of the events tracking, how they are tracking relative to your expectations and given reiterate 2026 to [indiscernible] narrowing it down to the first -- and then my actual question was on the Merus acquisition. So following the acquisition completion, have you spoken to the FDA about the trial design for the ongoing Phase III trials? And based on those conversations, how confident you are that the response rate is sufficient as a regulatory endpoint? Jan van de Winkel: Thanks, Zain, for the question. So I'll ask Tahi to talk a bit about events tracking if we can, and then Judith can potentially address the peto question on trial design in head and neck cancer. Tahi, why don't you start? Tahamtan Ahmadi: On events tracking, I don't necessarily think this is what we do in calls like this that we give a commentary on events tracking. But we cannot comment. So this is not something that we can do right now. But we obviously do track. Jan van de Winkel: All right. Thanks. Then let's move on to Judith and then maybe some feedback on the design of the head and neck pivotal trials for peto. Judith Klimovsky: Yes. No, thank you for the question. As we all know, I mean, the 2 Phase III studies have dual endpoints, ORR and OS which I would say, as you know, the OrigAMI-5 recently published as well ORR and PFS. So it's quite a standard that in areas of unmet medical need, the FDA and even other health authorities can be prone to earlier endpoints that can be good surrogates or good associated with more overall survival. So we feel good with the dual endpoints that both studies have. And of course, as part of the integration, we are digging into the operational characteristics of the studies, but we are pleased with the design as is initially and yes, and with the dual endpoint. Jan van de Winkel: Thank Judith. Thanks Zain, for the questions. Let's move on to the next one. Operator: And the next question comes from the line from Suzanne van Voorthuizen from Van Lanschot Kempen. Suzanne van Voorthuizen: This is Suzanne from Kempen. I was wondering for peto, whether we should be expecting a Phase I/II data update in head and neck cancer during this year at a medical conference, considering especially the frontline data set further matured since ASCO last year, this could be very insightful for the market ahead of the Phase III readout. And if there is a data update, could you elaborate what you believe the expectations should be on duration metrics and survival, for example? Jan van de Winkel: Thanks, Suzanne, for the questions. I will ask Judith to comment on that. Suzanne, as you know, we hope to see one or both of the Phase III data this year, but you asked specifically about the Phase I/II data, Judith? Judith Klimovsky: Yes. No, thank you for the question. But I want to reinforce that the last readout for the peto-pembro combination was with around 15 months follow-up, which allowed to see 79% of patients at 12 months landmark overall survival. And so of course, there is sensoring, but the sensoring happened after the 12, 16 months, is what you expect from the control arm. So what I'm trying to say is that the last ASCO 2025 presentation from Merus is very informative in terms of the probability of success of the Phase III, and you can take advantage of that presentation already. Jan van de Winkel: Let's move on to the next one. Operator: And our next question comes from the line of Yaron Werber from TD Securities. Yaron Werber: So quick question, just as a natural follow-up. The OrigAMI-5 study, as you mentioned, uses KEYTRUDA and chemo as a combo, presumably in patients with more bulky aggressive disease in front line. Would you consider doing the same sort of trial design with peto? Jan van de Winkel: Judith, can you address that question from Yaron on OrigAMI-5? Judith Klimovsky: Yes. No, thank you for the question. So first, let me tell you that we are stand behind the original strategy, which is combining peto with pembro. And the reason is that the 65% ORR furthermore with 6 CRs is unprecedented even in the context of what we know for pembro chemo. So we are very pleased that [indiscernible] put in place a strategy that could offer a chemo-free option for patients. Having said that, given the data that you have seen and we have seen on peto, we believe that the CDP potentially could be expanded on many different directions. This could be one, but we are very -- we think that the chemo-free combination for patients that can offer almost double what the chemo can offer is a very good value proposition for patients. Jan van de Winkel: So more to come. Operator: And our next question comes from the line of Qize Ding from Rothschild & Co. Qize Ding: So I noticed that petosemtamab is at Phase II stage for combining pembrolizumab in first-line non-small cell lung cancer. Just wanted to clarify, is this a new trial that was started in Q4 2025? If so, could you please share your high-level thoughts and expectation behind this study? Jan van de Winkel: Thanks, Qize, for the question. Judith, can you comment on the lung cancer trial for peto? Judith Klimovsky: Yes, yes, I can. Thank you. So as we all know, EGFR is a good target for lung cancer. The study was planned as a signal seeking in the indications where cetuximab showed the maximum benefit and in combination with pembro, given that what we know, which is the synergy between peto and pembro. So it's a signal-seeking study, and we will update you when we have data. Jan van de Winkel: Thanks, Judith. Thanks Qize for the questions -- question. Let's move on to the next one. Operator: And the next question comes from the line of Matthew Phipps from William Blair. Matthew Phipps: Just to confirm, you listed an additional Phase III for peto in 2026. Is that the locally advanced trial that you've already talked about or something else? And do you anticipate providing any update from the colorectal cancer cohorts that we saw in the fall or maybe thoughts on the development plan there? Jan van de Winkel: Thank you, Matt, for the question. So Judith, maybe you can address both of them. Judith Klimovsky: Yes. Thank you for the question. So yes, the data that Merus presented in December on colorectal was very encouraging, albeit a limited number of patients as it was shown publicly, each one of the cohorts is to enroll 40, 40 and 60. So this data set is growing. And as the data is growing, we plan to inform the medical community. And we have not decided when, but the data set is growing. And in terms of future Phase IIIs, we already mentioned the locally advanced head and neck, and we are actively working on a comprehensive clinical development plan. Jan van de Winkel: Thanks Judith. Thanks Matt for the question. Operator: And now we're going to take our next question, and it comes from the line of Victor Floch from BNP Paribas. Victor Floch: So maybe a quick one on the pipeline and I mean, more specifically your early-stage pipeline, which has been significantly streamlined over the last 12 months. And to my knowledge, only contains now 2 clinical stage bispecifics. So I just wanted to hear your thoughts and maybe whether you can discuss your priorities moving forward in terms of platform technologies and therapeutic areas because I can't really see any ADCs. So maybe it's -- I mean, whether you can discuss like what are the technologies behind the 2 recent INDs you've done. But so moving forward, whether you can discuss whether you believe you have enough candidates in-house? Or should we expect also some early-stage M&A at some point? Jan van de Winkel: Victor, let me start off here and then Tahi, can definitely chip in. We have recently actually had 3 IND filings, one for a bispecific antibody, one for an ADC, making use of the linker and payload technology, which we acquired via ProfoundBio, and one which is a bispecific also including the HexaBody technology. So when you look at our whole pipeline overall, 45% is ADC right now, 50% is DuoBody-based or bispecific based and 5% HexaBody-based, Victor. But right now, we are integrating both the Merus pipeline and the Genmab pipeline and only prioritize the high-impact ones basically for further development. So we have a very, I think, diversified pipeline, all based on next-generation antibody technologies. But I will stop here and maybe Tahi can give you a bit more color on the organic pipeline, which is still a key priority for the company to actually fill the pipeline with candidates, which can then be promoted to mid- and late-stage programs in due time. Tahi? Tahamtan Ahmadi: Yes. I mean you kind of like framed this already, right. So as you said, we have 3 INDs that we filed towards the end of the year with -- that are expecting dosing this month. More to come on this end in this year as well. And our focuses are now particularly also after the integration of [indiscernible] And the capabilities that came to that integration continue to be in antibodies and then they fall into these categories of next-generation ADC platforms, which is an increased interest of our research in [indiscernible] and next-generation bispecific and trispecific platforms that is obviously a focus on our research capabilities in [ Utrecht ]. And that's what we're going to continue to do. There is, of course, a change now with a very heavily focused late-stage landscape within [indiscernible] with peto being positioned in head and neck and maybe we'll see in the future also opportunities in colorectal with Rina being positioned in the GynOc space in ovarian and endometrial, but also maybe possibly based on data, also opportunities in other folate receptor alpha tumors, there is very clearly also a change on how we think internally about where our focus should be, right? So it's not completely a disease area focus, but without a doubt, we're starting to get into a space where we're also starting to think about combinatorial strategies for our internal assets. But generally speaking, you should expect more to come from our internal capabilities. And that in and of itself does not preclude that we will not continue to look for external innovation because that's what we're going to do. Operator: Now we're going to take our next question. And the question comes from the line of Mattias Haggblom from Handelsbanken. Mattias Häggblom: I had one on peto, an asset which you now own. Help me think about what you need in terms of additional information from ongoing or future clinical trials to specify your current peak sales potential from multibillion dollar to an actual number like you have for EPKINLY and Rina-S. Jan van de Winkel: Thanks, Mattias, for the question. And I will hand it over with pleasure to Anthony Pagano to see what he's willing to say about the multibillion-dollar potential of these molecules. Anthony Pagano: Yes. Thanks, Mattias. So as you've heard from us since the time of the acquisition, we're highly encouraged by the data we've seen so far for petosemtamab, highly encouraged by the outside and recognition from the FDA in terms of the breakthrough therapy designations and really looking forward here to one or more data readouts, pivotal readouts during the course of 2026 and equally looking forward to potentially expanding into earlier lines in terms of starting a first Phase III in locally advanced head and neck cancer. So if we look at this overall, petosemtamab has the characteristics of potentially being best-in-class, first-in-class, and we're really focused on expanding and accelerating it to also make it broadest in class, starting, of course, in head and neck cancer. For now, we're going to remain with our guidance in terms of multibillion blockbuster potential. As we continue to review the opportunity, refine our CDP, see more data, we'll look for the right time to update that. So I'm not going to front run this, Mattias, in terms of guiding to when we're going to potentially update guidance. But the key takeaway here really is that we're very happy owners of petosemtamab, and we look forward to seeing the data later in 2026 and continue to expand and accelerate the CDP. Jan van de Winkel: Thanks, Anthony. We will leave it with this, Mattias, but thank you for the question. Operator: And now we'll take our next question, and it comes from the line of [ Sarah B ] from Guggenheim Partners. Unknown Analyst: This is [ Sarah ] on for Michael Schmidt from Guggenheim. I wanted to quickly circle back to Rina-S, if you could comment on the size of the opportunities for Rina-S, both in and outside of [indiscernible], including in the ongoing Phase II? And then separately, super quickly, if you could clarify the terms of the debt offering announced late last year. Jan van de Winkel: Thank you, [ Sarah ]. Anthony, can you address both questions, the size of the opportunity for Rina and also the debt offering terms? Anthony Pagano: Sure. Happy to do so. First of all, everything I've just said about petosemtamab, I would echo for Rina-S, very happy owners of Rina-S, and the team is really here looking for any and all opportunities to expand and accelerate the opportunity. Again, looking forward to the first potentially pivotal and registrational data here during the course of 2026, initially in the platinum-resistant ovarian cancer setting. Today, I can reiterate our overall guidance of $2 billion plus for Rina-S that's really underpinned by second line plus PROC, second line plus endometrial, second line plus PSOC and then also moving forward, the frontline endometrial opportunity. What's important to note for on those first 3 indications that I've mentioned, second-line PROC, second-line endometrial, second-line PSOC, we've already initiated Phase III trials. So very excited about the opportunity, very excited about what we're seeing in terms of the data so far, both in PROC and endometrial cancer. So that takeaway is we continue to reiterate our peak year sales guidance of $2 billion plus and a very significant amount of clinical development work is ongoing to underpin that investment -- that peak year sales guidance, excuse me. In terms of the overall debt offering. First of all, we're very pleased with the demand for the offering, both in quantum in terms of also the high-quality nature of the investors that ultimately subscribed to the deal. Again, it's $5.5 billion with roughly $2.5 billion of it being fixed. Another $3 billion is floating rate debt based upon a spread over 3-month [ SOFR ]. Now what we have done and for the $3 billion that is floating around $1.6 billion of that, we've hedged back to make it fixed. So net, $4.1 billion is now fixed as well as the remaining being floating. One thing I would leave you with is that we've committed and remain committed to getting below 3x gross leverage by the end of 2027. And one maybe other data point that kind of help you sort of think this through would be, if you look at the kind of weighted average based on current market conditions, the weighted average sort of effective interest rate of the debt is around 6.6%. So that's what can help for now. Jan van de Winkel: Thanks, Anthony. Thanks, [ Sarah ], for the questions. Let's see whether there's any further questions. Operator? Operator: Now we're going to take our last question for today. And it comes from the line of Benjamin Jackson from Jefferies. Benjamin Jackson: Brilliant. Conscious of time, so just one for me. I guess, longer term, are you able to comment on how you're thinking about the level of sales and marketing investments needed to be made ahead of any potential launches given that you're now starting to get into the later stages of a lot of this pivotal data. So how comfortable are you with how big and where the team is located today? And how much more scale needs to be achieved in terms of feet on the floor? Jan van de Winkel: Thanks, Ben, for the question. And I will ask Brad to give you -- give a short feedback here. Brad? Brad Bailey: Yes. Thank you for the question. And we continue to be disciplined on OpEx as guided. And certainly, we'll invest strategically to strengthen the development and commercialization to bring our medicines to as many patients as possible. We're strong with where we are today, both U.S. and Japan and early signs in Europe are encouraging and look forward to sharing more in the not-too-distant future. 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