Q4 2024 Genmab AS Earnings Call
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Okay.
Speaker Change: Hello, and welcome to the Genmab full year 'twenty 'twenty full financial results Conference call. As a reminder, this conference call is being recorded.
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Speaker Change: I would now like to hand, the conference over to the first speaker today Yamanaka.
Speaker Change: Please go ahead.
Speaker Change: Hello, and welcome to General <unk> Conference call to discuss our financial results for the period ending December 31st 2024.
Speaker Change: With me today to present. This was also saw CFO Anthony Pagano.
Speaker Change: Chief Commercial officer, Brad Bailey.
Speaker Change: For the Q&A, we'll be joined by our Chief Medical Officer, Diamante, and our Chief Development Officer Klimaszewski.
Speaker Change: And somebody says we will be making forward looking statements. So please keep that in mind as we go through this call.
Speaker Change: During today's presentation, we will reference products being developed under our some of our strategic collaborations and this slide acknowledges those relationships.
Speaker Change: 'twenty 'twenty four was marked by significant milestones towards our mission to deliver innovative medicines to patients we made strategic investments to both accelerates the development of late stage programs with them.
Speaker Change: Potential to generate meaningful revenue by the end of the decades.
Speaker Change: And to maximizing the success of our commercialized medicines.
Speaker Change: We delivered on our capital allocation priorities in 2024 and as Anthony will describe later, we will do so again in 2025.
Speaker Change: Overall, our financial performance in 2024 was exceptionally strong.
Speaker Change: And we have further solidified our funded our foundation for sustainable future success.
Speaker Change: Take a look at this in more detail.
Speaker Change: Since the 24 hours a year of strong execution and disciplined investments driving 30, 31% total revenue growth fueled by the success of our eighth commercialized medicines, including <unk> and <unk>.
Speaker Change: Our investments are fully aligned with our strategic priorities supporting key late stage pipeline programs and commercial expansion, allowing us to grow operating profit by an impressive 26% demonstrating the strength of our business.
Speaker Change: Despite significant investments, including the $1 $8 billion acquisition of <unk> bio as a $500 million of share buyback. We ended the year with nearly $3 billion in cash reinforcing our financial strength.
Speaker Change: This exceptionally strong financial position gives us the flexibility to continue investing in innovation, the literally while delivering long term value to shareholders.
Speaker Change: Taken together, our financial results for 2024, exemplify our ability to deliver strong revenue growth while simultaneously advancing high potential programs now, let's take a look.
Speaker Change: Let's take let's look forward to starting their pipelines.
Speaker Change: We currently have 12 products or product candidates and 30 clinical trials.
Speaker Change: <unk> Oh recruiting.
Speaker Change: This includes seven phase III trials between are keenly right now us and our custodial them up.
Speaker Change: And based on the strong emerging data, we expect more to come.
Speaker Change: Because these three programs are poised to drive significant revenue growth for <unk> by the end of this decade.
Speaker Change: Yes.
Speaker Change: Advertising investments for 2025, and purposely purposely reallocated, our R&D dollars to these programs.
Speaker Change: Now, let's take a deeper look at why we are confident in their significant potential.
Speaker Change: Starting with the Kennedy.
Speaker Change: <unk>, we continue to advance and ambitious clinical development program for accurate them up across B cell malignancies, including frontline studies in diffuse large b cell lymphoma, and Follicular lymphoma.
Speaker Change: Our five ongoing phase III studies have been fully recruited well ahead of schedule.
Speaker Change: And in addition to confirmatory data based on accelerated enrollments. We now anticipate three potentially significant pivotal readouts by the end of 2036 second line plus Follicular lymphoma, frontline diffuse large b cell lymphoma and in second line plus the few slides b cell lymphoma for transplant.
Speaker Change: Any eligible patients.
Speaker Change: If successful this could lead to significant market expansion, especially as frontline diffuse large b cell lymphoma represents the single largest indication.
Speaker Change: As you can see.
Speaker Change: See this on the next slides.
Speaker Change: Very summarized the significant market opportunity for <unk>.
Speaker Change: We have successfully obtained multiple.
Speaker Change: Latoya approval saw kenley, making this therapy accessible to a broader patient population and thanks to our exceptionally strong performance in key markets like the U S and Japan, we are confident in our ability to expand that can lease rates even further.
Speaker Change: In fact, our commitment to advancing our <unk> across multiple indications in b cell cancers, and underscore its potential as a best in class treatments that have peak sales opportunity exceeding $3 billion.
Speaker Change: Let's now turn to Ryan R. S.
Speaker Change: As we have shared previously we have now initiated the first phase III trial for Orion as in second line plus platinum resistant ovarian cancer.
Speaker Change: This trial is designed to address all commerce, regardless of folate receptor alpha expression, expanding as potential potential reach to a broader patient population.
Speaker Change: <unk>, 2% meaningful follow up data from the expansion cohorts with park early in the first half of 2025.
Speaker Change: Additionally, we are actively generating combination data to inform next steps in platinum sensitive ovarian cancer.
Speaker Change: Beyond the settlement in ovarian cancer. We are also planning to present data in endometrial cancer in the first half of this year.
Speaker Change: And based on the strong signals, we're seeing we plan to start a phase III study in second line plus endometrial cancer by the end of the year.
Speaker Change: All of this adds up.
Speaker Change: To a significant market opportunity for <unk>, which you can see on the next slide.
Speaker Change: Right now as this difference differentiated profile has the potential to address a broader patient population that is served by current standards of care, including low to medium folate receptor alpha expression targeting about 85% of the platinum resistant.
Speaker Change: Ovarian patient population.
Speaker Change: We are exceptionally well positioned to maximize the potential of Ryan as given our proven clinical development capabilities track record of acceleration and our experience in the <unk> space with <unk>.
Speaker Change: Based on the exceptionally strong execution of the team post acquisition, we remain on track to bring arena as to patients by 2027.
Speaker Change: With its best in class profile expected to achieve peak sales exceeding $2 billion.
Speaker Change: And the two phase III, we plan to have underway by ESN, we are well on track to put to putting in place the building blocks to achieve these targets.
Speaker Change: Finally, let's take a look at the market opportunity for <unk>.
Speaker Change: In 2024 came up took full control of the ACA Salema program, providing us with a remarkable opportunity to fully own and advance this promising assets.
Speaker Change: Non driver mutated second line non small cell lung cancer continued to be an area of significant needs.
Speaker Change: Given the worsening of performance status status as patients progress through lines of therapy physicians are interested in more tolerable chemo free regimens.
Speaker Change: Yet many novel treatments failing in phase III trials Docetaxel continues to be the current standard of care.
Speaker Change: By identifying potential synergies of Io therapies have the potential to unlock clinical benefits that are not possible with monotherapy alone.
Speaker Change: So there is meaningful opportunity for novel treatments like Arcosolium up in the second line plus setting to provide not just improved response rates, but durability of response.
Speaker Change: And we are progressing a strategic development program to explore are consuming much full potential across solid tumors.
Speaker Change: So in summary in 2025, we will be in execution mode. You will continue to deliver on our financial commitments through focused investments in our high priority late stage and commercial programs.
Speaker Change: Because of this the investment in these areas today, that's all position us well at the end of the decades.
Speaker Change: I'll now hand over the presentation to branch, who will provide you with a review of the recent performance for <unk> and <unk>, both of which have seen growth in 2024 branch the floor is yours.
Branch: Thank you Jan.
Branch: Over the course of 2024, our commercialization teams executed effectively to bring <unk> to an increasing number of patients around the world. Overall <unk> ended the year in a strong position demonstrating the strength of our commercialization strategy and the performance of our field teams.
Branch: We also achieved critical milestones, including two new regulatory approvals in the U S and continued our work to rapidly progress our development program to fuel our future growth.
Branch: Through these efforts our commercialized medicines contributed 29% of our revenue growth for the year.
Branch: Moving to highlights from our commercialized portfolio, we achieved meaningful milestones with both medicines that contributed to the overall growth.
Branch: Over the past three months, Tim Dec and Dep Kenley have collectively received three new or updated and CCN guidelines designations.
Branch: First in December <unk> monotherapy was upgraded from category to category one designation for the treatment of recurrent or metastatic cervical cancer further validating its clinical benefit for these patients.
Branch: Tim Dec and combination with timber lithium App was also added as a category to be designation for patients with PD lone positive disease.
Branch: And earlier this month.
Branch: Kimberly in combination with Gem ox received a category <unk> designation for the treatment of diffuse large b cell lymphoma in the relapsed refractory setting.
Branch: This is especially notable as we look to bring the potential web gently into earlier lines of therapy in the future.
Branch: Lastly, rep Kimberly at Ash, we presented a three year long term data from our core NHL, one study, which evaluated <unk> in patients with third line or later relapsed or refractory <unk>.
Branch: These data showed that over half of patients who achieved a complete response in the trial maintained their response for more than three years with no new safety signals identified.
Branch: These results represent the longest duration of CR as reported by our bi specific in this setting further reinforcing <unk> clinically differentiated profile and potential to deliver deep durable responses.
Branch: Now, let's turn to performance beginning with <unk>.
Branch: <unk> continued to perform exceptionally well since its initial launch in 2023.
Branch: It closed 2024, and a position of strength achieving $78 million in sales in the quarter and $281 million in sales for the year.
Branch: This growth was driven primarily by sales in the United States and Japan.
Branch: In the U S. Clearly remains the first and only by specific approved with a dual indication in third line, plus <unk> and Follicular lymphoma.
Branch: Throughout 2024, we continued to see sustained uptake across sites of care driven by targeted field execution and the successful <unk> launch in June.
Branch: Since the <unk> launch, we have observed accelerated growth and positive physician feedback highlights the value of about tilly's dual indication, it's uniquely differentiated clinical profile and seamless administration.
Branch: Moving forward, we will continue to focus on accelerating adoption across broad sites of care.
Branch: In Japan.
Branch: <unk> is the only approved CD three CD 20 by specific in third line, plus relapsed or refractory large b cell lymphoma, and we continue to see strong stable performance largely driven by field execution and account activation.
Branch: We are well positioned to build on this leadership position in Japan with the anticipated approval for third line, plus relapsed or refractory Follicular lymphoma in early 2025.
Branch: With this indication, particularly will become the first and only by specific approved in Japan, with a dual indication and L. Bcl Mcl FL.
Branch: And the rest of the World, we're seeing increased utilization of <unk> through our partner Abbvie and achieved approvals in more than 50 countries worldwide by the end of 2024, we look forward to this trajectory continuing in 2025 and beyond.
Branch: Looking ahead, our teams remain focused on driving adoption in priority markets, while accelerating our robust development program to establish <unk> as the core therapy, and B cell lymphomas, including in earlier lines of therapy.
Branch: As we continue to target areas of high unmet need our commercialization teams remain focused on creating optimal customer experiences through the disciplined execution of our targeted go to market strategy that has consistently driven our success to date.
Branch: Turning now to Tim deck.
Tim Dec: As the only ADC with a proven survival benefit and advanced cervical cancer <unk> has continued to achieve solid growth since its launch in 2021 and is regarded by physicians as the global standard of care and the clear answer in second line, plus recurrent or metastatic cervical cancer.
Tim Dec: Just that produced $131 million in sales during the year, including $38 million in the fourth quarter, driven by depth and breadth of ordering accounts with.
Tim Dec: With strong utilization rates in this setting we anticipate modest growth in the U S. In 2025.
Tim Dec: Looking ahead, we see opportunities to expand the potential of Tim Dec and advanced cervical cancer to new markets, where patients' needs remain high.
Tim Dec: We expect approval in Japan early this year, where <unk> will lead full commercialization responsibilities and in Europe. Later this year following a positive <unk> opinion issued in January.
Tim Dec: Importantly.
Tim Dec: The anticipated launch in Europe provides a catalyst to enter the next phase of our commercialization strategy as we expand our work to new markets.
As of January one Genmab and Pfizer have agreed to transition to full commercialization responsibilities for <unk> in second line, plus recurrent or metastatic cervical cancer two genmab for all countries outside the U S and China, where Pfizer will continue to partner with Genmab and XI lab, respectively.
Tim Dec: We're pleased with the terms of this updated agreement as it optimally positions us to expand our commercialization capabilities first to Europe in a strategic and financially disciplined manner. Just as we have successfully done in the U S and Japan to date.
We're confident that with disapproval.
Tim Dec: We can optimize the launch opportunity for Tim Dec and also build a strong foundation for the potential launches arena as an <unk> in the future.
Tim Dec: We are extremely pleased by the performance of our commercialized brands in 2020 for validating our strategic approach and investments to date.
Tim Dec: As we look towards 2025 and beyond our focus remains on building upon the strong foundation, we've established in the U S and Japan to capture more value from our commercialized medicines, increasing utilization of <unk> across regions and strategically enter new markets to prepare for the launches of our wholly owned medicines to reach even more patients in the future.
Tim Dec: With that I'll hand, the call to Anthony to provide more perspective on our financials.
Anthony Pagano: Thanks, Brad.
Speaker Change: We continue to strengthen our foundation throughout the year.
Speaker Change: We delivered on our goal of multiple successful regulatory approvals and launches for <unk> and.
Speaker Change: And we're pleased with how these launches are progressing.
Speaker Change: We've also significantly enhanced our long term growth potential with the addition of <unk> to our late stage pipeline as part of the acquisition.
Speaker Change: Our profound bio.
Speaker Change: And as we'll see our financials remain exceptionally strong.
Speaker Change: We achieved 31% total revenue growth.
And importantly, we grew our recurring revenues by 35%.
Speaker Change: This was driven by strong royalties from <unk> and <unk> and from product sales from <unk> and <unk>.
Speaker Change: This growth reflects sustained recurring revenue expansion and robust execution across markets.
Speaker Change: We can see that the investments we've made in building out our commercialization teams and capabilities are paying off.
Speaker Change: And this sets us up well as we prepare for potential expansion into earlier lines for at Kibali and the potential launch of <unk> in 2027.
Speaker Change: Stepping back and looking at our revenues what really stands out for me is the improving quality of our revenue profile.
Speaker Change: In 2020 for recurring revenues rose to represent 91% of total revenue and thats compared to 88% in 2023.
Speaker Change: Finally, looking at <unk> specifically.
Speaker Change: Overall net sales grew by almost 20%.
Speaker Change: Net sales of nearly 11 $7 billion for the year.
Speaker Change: Which translates to almost 14 billion kroner and royalty revenue.
Speaker Change: This growth was driven by continued share gains and strong performance in the frontline setting.
Speaker Change: Turning to our investments, where we continue to take a disciplined approach.
Total operating expenses in 2024 was $13 8 billion kroner.
Speaker Change: As you can see the majority of the investment over 70% was driven by R&D, reflecting our focus on late stage priority programs at Kinley Reno as an ACA soon the map.
Speaker Change: Our investment in SG&A was focus to put us in a strong position for key market launches in the U S and Japan.
Speaker Change: So if we step back and think about our investment levels for 2024.
Speaker Change: Over delivered on our financial commitments made at the time of the profound bio acquisition.
Speaker Change: This was achieved through the balance of disciplined investing in line with our capital allocation framework and a continued and increased focus on productivity and prioritization efforts.
Speaker Change: And in a minute you're going to see how this has been effectively carried through to 2025.
Speaker Change: Pulling this altogether, our operating profit for 2024 grew 26%.
Speaker Change: So we delivered exceptionally strong profitability, while investing to advance those programs with the highest potential for long term growth.
Speaker Change: Then moving on to tax.
Speaker Change: As you can see in the appendix of this presentation, we have a tax expense of around $1 3 billion, which equates to an effective tax rate of 14, 4%.
Speaker Change: The decrease compared to last year's rate of 22, 8% was primarily due to our ability to recognize the first deferred tax assets.
Speaker Change: Not previously recognized.
Speaker Change: Moving forward, we anticipate that our effective tax rate should be closer to the Danish statutory rate of 22%.
Speaker Change: Taken together, our net profit amounted to nearly seven 8 billion kroner.
Speaker Change: So as you can see continued strong underlying financial performance.
Speaker Change: With that let's move to our 2025 financial guidance.
Speaker Change: To start the guidance, we're providing today is in dollars.
Speaker Change: Because as of January one our functional currency changed from kroner to dollars due to the growing number and significance of our U S dollar denominated transactions.
Speaker Change: For comparison, we've converted our 2024 results from kroner to dollars using an exchange rate of 689, representing the average rate during the year.
Speaker Change: With that background now, let's take a look at our 2025 guidance.
Speaker Change: We expect our revenue to be in the range of around three three to $3 7 billion delivering robust growth of 12% at the midpoint.
Speaker Change: And this is despite our nonrecurring revenue decreasing by more than $100 million.
Speaker Change: So it is a recurring revenues from royalty medicines and revenues from Ed Kelly and Tim Dec, that's driving our anticipated growth in 2025.
Speaker Change: For operating expenses as I highlighted for you at Q3 last year expectations, we're in a reasonable place.
Speaker Change: For 2025, we expect to be in a range of around $2, one to $2 $2 billion. So as you can see we not only delivered.
Speaker Change: Over delivered on the commitment we made at Q3.
Speaker Change: This reflects our disciplined approach to investments as well as rigorous portfolio prioritization.
Speaker Change: Putting all this together we're planning for operating profit in a range between $895 million to nearly one $4 billion with.
Speaker Change: With the midpoint of guidance amounting to more than $1 1 billion of operating profit in year over year growth of 16%.
Speaker Change: Now, let's take a look at the components of our guidance.
Building on the exceptional growth in 2024, we expect recurring revenues to grow 18% in 2025, driven by <unk> and is increasingly includes contributions from <unk> and Tim Dec.
Speaker Change: Taken together these two products contribute 34% of our total projected revenue growth.
Speaker Change: This really highlights the continually improving quality of our revenue profile.
Speaker Change: <unk>, our recurring revenue represented 95% of our total projected revenue in 2025.
Speaker Change: Looking beyond 2025 for <unk>, we anticipate three potentially significant pivotal readouts by the end of 2026, including frontline and second line <unk> and second line FL.
Speaker Change: That could support regulatory filings and subsequently additional meaningful revenue growth.
Speaker Change: Finally, coming back to <unk>, we anticipate that <unk> sales will continue to ramp up and be in the range of $12 six to $13 4 billion.
Speaker Change: Turning now to Opex.
Speaker Change: We purposely reallocated our R&D investments in 2025 and are focused on advancing our high impact late stage programs at Kenley renal and ACA assume the map.
Speaker Change: So here, we are prioritizing late stage assets with strong commercial potential while also applying a balanced approach to our investments in our early pipeline.
Speaker Change: As a result, our investment in these late stage programs increases from 45% of total R&D spending in 2024 to more than 55% or 55% in 2025.
Speaker Change: Our sales and marketing investments are focused on launch readiness and key markets, most notably for renal S. With a disciplined approach that balances growth and efficiency. These.
Speaker Change: These investments are aligned to drive both immediate launches and long term revenue.
Speaker Change: For G&A I am pleased to note that spend is broadly flat between 2024 and 2025.
Speaker Change: And here our G&A capabilities are increasingly at scale. So we expect minimal growth.
Speaker Change: If you add it all together you can see the power of our growing recurring revenues and underlying profitability.
Speaker Change: In 2025 will make significant investments in late stage R&D and launch preparations at the same time, we plan to deliver 16% operating profit growth at the midpoint.
Speaker Change: This reflects our ability to scale efficiently and control costs supporting both near term launches and long term value creation.
Speaker Change: So when you look at our 2025 guidance as well as our 2024 results you can see that we continued to deliver on our financial commitments.
Speaker Change: Having covered our results for 2024 and our guidance for 2025, let me outline our capital allocation strategy aimed at fueling revenue growth by the end of the decade and enhancing shareholder value.
Speaker Change: First we will continue to invest in accelerating the development of our high impact late stage programs at keenly Rina <expletive> and ACA sooner map with investment in two phase III clinical trials.
Speaker Change: We will also continue to maximize the success of our commercialized medicines.
Speaker Change: Because of our investment in these programs now that will potentially generate meaningful revenue for us by the end of the decade.
Speaker Change: Second we will continue to seek out business development and M&A opportunities that fit within our core focus areas.
Speaker Change: As you know we executed on our acquisition of profound bio last year.
Speaker Change: Here I'd like to highlight how quickly and successfully we were able to integrate profound bio and so our business as evidenced by our ability to progress arena so significantly.
Speaker Change: We not only brought forward the start of the first phase III trial for U S. But today, we announced a second phase III trial and additional indications.
Speaker Change: Now, having built out our development and commercialization capabilities, we are well positioned to continue to consider both mid to late stage development and commercial stage product opportunities.
Speaker Change: And finally today, we're announcing our plan to repurchase an additional approximate one 9 million shares which is equivalent to around $370 million at our current stock price.
Speaker Change: This underscores our confidence in <unk> future and our commitment to delivering value to our shareholders. Both in the short and long term.
Speaker Change: In summary, our performance in 2024 underscores our ability to deliver exceptional revenue growth advanced key pipeline assets and maintain strong profitability through disciplined execution.
Jan: Looking ahead to 2025, we are building on this momentum by further prioritizing our investments and expanding market opportunities positioning us for sustained growth and long term value creation for our shareholders and on that note I'm going to hand, you back over to Jan.
Jan: Thank you Anthony let's move to no move onto our final slides.
Speaker Change: Now with the strong foundation supporting US we are looking ahead to two and energizing 2025, starting with <unk> 38, we submitted the data packets to J&J and we anticipate a decision from them no later than the first quarter of this year.
Speaker Change: At that time, we will press release the decision and includes top line clinical data with.
Speaker Change: Countless of J&J decision, she unlock strategic priorities in 2025 and beyond remain unchanged.
Speaker Change: Looking beyond these events. This year, we are anticipating additional regulatory decision for both <unk> and <unk>.
Speaker Change: Including the potential approval of <unk> in Europe. Following a positive opinion from the <unk> in January.
Speaker Change: For both our <unk> and kind of as we anticipate presenting additional supporting supportive clinical data and both have the potential to move into broader indications that new clinical trials.
Speaker Change: And we will continue to actively look for opportunities to grow our pipeline, both organically and inorganically positioning us for sustained growth and long term value creation for our shareholders. In summary in 2024, we further solidified our already very strong foundation and the level the levels on our commitment.
Speaker Change: Yes.
Speaker Change: And then 10 to 25, it will continue a laser sharp focus on and investment in our late stage product pipeline and commercial execution.
Speaker Change: That ends our formal presentation operator, please open the call for questions.
Speaker Change: Thank you participants as a reminder, if you wish to ask a question. Please press star one on your telephone keypad and Lakeland name to be announced can we do have a question. Please press star one again.
Speaker Change: Sure everyone has the opportunity to ask a question today. Please limit yourself to one question. Please.
Speaker Change: Please stand by we'll composite can narrow studies will take a few moments.
Speaker Change: And now we're going to take our first question.
Speaker Change: And it comes from the line of Jonathan Chang from Leerink.
Speaker Change: Your line is open please ask your question.
Speaker Change: Hi, guys. Thanks for taking my questions.
Speaker Change: Can you discuss your reasons for confidence in the endometrial cancer opportunity for arena.
Speaker Change: And for committing to a phase III second line plus endometrial cancer study by year end. Thank you.
Speaker Change: Thanks, Jonathan for the question.
Speaker Change: Ty dive into this Tycho you.
Speaker Change: Talk about the endometrial cancer data and the commitment to go into phase III.
Speaker Change: Sure Jonathan Thank you for the question.
Speaker Change: I think you know you heard from John earlier that we will present data in endometriosis, we have data.
Speaker Change: From submitted and that will be.
Speaker Change: Publicly available and then at the end of this first half that data and online.
Speaker Change: Highly competitive it is.
Speaker Change: The <unk>.
Speaker Change: Most for bus efficacy signal that that.
Speaker Change: Currently being generated in that new population that you describe patients with endometrial cancer, who had chemotherapy and checkpoint inhibition and so we are very excited about that data. We think it's going to be robustly. This will be very well appreciate it bye bye.
Speaker Change: By investigators and investors when it is public and Thats driving our excitement to move forward aggressively with the phase III.
Speaker Change: Thanks, Ty Thanks, Jonathan for a very good question, let's move on to the next.
Next analyst.
Speaker Change: Thank you.
Speaker Change: And the next question comes from the line of Michael Schmidt from Guggenheim Partners. Your line is open. Please ask your question.
Paul: Hi, This is Paul on for Michael Thanks for taking our question.
Paul: <unk> in the <unk> landscape there is a competing <unk> bispecific that could potentially have combo data approved this year for the transplant ineligible second line plus setting what do you have to show it to be competitive here for <unk> monotherapy and can you provide any updates on the status of your efforts there with gem ox.
Paul: And as a follow up how it physicians currently thinking about the potential to sequence multiple $3 25 specifics for <unk>. Thank you.
Speaker Change: Thanks, very much Paul for the question I'll, let <unk>.
Paul: Address dose for appropriate uptime.
Paul: Yes. Thank you again for the question so.
Paul: Second line.
Paul: First part of course, we just.
Paul: A couple of days ago.
Paul: Got the good news that the <unk> has included our data with <unk> and <unk> in second line patients who are ineligible for transplant with the type to a recommendation so.
Paul: Very exciting and then there is of course, the phase III ongoing in combination with Lenalidomide. So from lines we have.
Paul: Affleck capture both opportunities the de bulking.
Paul: With chemotherapy fall in conjunction with the <unk> 'twenty by specific Jim Mark strategy as well.
Paul: More outpatient oriented.
Paul: Hey, all medication pluses subcutaneous administration enhancing T cell function.
Paul: And these two things are going to play out.
Paul: I think as we.
Paul: I have said many many times the opportunity in the relapsed refractory setting for the <unk>.
Paul: Is.
Paul: Really in expanding access.
Paul: To this novel mechanism.
Paul: And we think that from the whole target product profile for <unk>.
Paul: Subcutaneous administration of the fact that it is the only one that is approved in both indications it is extremely well positioned.
Paul: To enter the commodity space and provides access to patients in those settings.
Speaker Change: Thanks, Thanks, Ty, let's give the floor back to the operator.
Paul: Thank you and how long would take our next question and it comes from the line of.
Speaker Change: The good Nevada from twist. Your line is open please ask your question.
Speaker Change: Hi, guys, just a very quick follow up on <unk>.
Paul: $281 million.
Paul: Full year launch is very commendable, so wanted to step into the market dynamics in the second half.
I wanted to see if there's something funky about Q4, given that was kind of flat.
Paul: Flat on Q3, if there's something unusual going quite too.
Paul: And then if I can ask.
Paul: ACA suddenly map I'd like that Youre, putting peak sales number here, but a key pipeline assets over the 136000.
Paul: <unk> treatable patient, Pakistan $1 billion in peak sales teams.
Compared to the others that you've provided can you tell us a little bit about what goes into estimation is that something to do with the longer treatment.
Paul: About six weeks three weeks. So it is something else that youre anticipating with Amazon.
Paul: Thanks, Oscar for the questions I'll ask Brad to comment on the on the first two and then maybe <unk> can step in also on the on the estimates for ACA Salim up Brad why don't you start with Echo.
Brad Bailey: Thank you very much for the question.
Brad Bailey: We remain very confident actually in the core markets with U S and Japan with African lease performance with with the growth that we're seeing there we did have a onetime accounting adjustment for sales in Europe.
Brad Bailey: Specifically that impacted the Q4 numbers specifically.
Brad Bailey: Typically otherwise can feel very confident with our with our growth trajectory at this point.
Brad Bailey: Then maybe the market size for a consortium up as we estimated at around 1 billion. So a 136000 patients do you want to add anything to that sub brands.
Brad Bailey: Yes.
Brad Bailey: Certainly a competitive space that we see.
Brad Bailey: Particularly in this post Io setting a significant opportunity as you showed on your slide earlier, and but nothing really further to comment on that from a size perspective at this point.
Alright, thanks, Thanks, Brett a unit any color from the clinical sites on ACA selling up and the estimated markets.
Brad Bailey: The only thing to add is as to how we present that PDL. One positive. So this came into account on the assay at the end of the market opportunity.
Brad Bailey: Thanks, Thanks, you Thats hope Thats clear Ustica, let's give the floor back to the operator.
Speaker Change: Thank you.
Speaker Change: And now we're going to take a next question and it comes to the line of Ethan.
Speaker Change: HSBC. Your line is open please ask your question.
Speaker Change: Thanks for taking my question.
Follow up on <unk>.
Speaker Change: Five the phase III data what are we expecting to see in the data in the presentation and then it was sort of roughly the timing.
Speaker Change: That presentation, and then secondly on Kennedy second line.
Speaker Change: Transplant in eligible so you've launched a DLP sale for trial last year and could you maybe talk a little bit about the proposition for that setting.
Speaker Change: Against the DLP sale one thanks.
Speaker Change: Thanks for both questions.
Speaker Change: Deciding to talk a bit more about the ACA selling of data, which we're very excited about 2% this year and a bit more on timing had anti can address the <unk> question in the second line plus.
Speaker Change: <unk> bcl setting after that units.
Speaker Change: Yes, Hello. Thank you for the question is as you know we presented.
Speaker Change: The first couple of somehow.
Speaker Change: Somehow that had survived.
Speaker Change: As we show very interesting durability.
Speaker Change: The curve, whether or not we have enough maturity.
Speaker Change: With more maturity.
Speaker Change: We expect to say the same thing take them out and this is literally will put is that later this year.
Speaker Change: So basically do whatever EVP of that time to event endpoints mainly oil.
Speaker Change: Thanks, Thanks for that.
Speaker Change: Tying maybe a comment on the second one plus question for Agco, yes.
Yes. Thank you and then maybe I'll use as an opportunity to more broadly lay out on the few such visa strategy. This if I may say of kidney. So initial launches in all as a single agent in third line plus.
Speaker Change: Going really well then.
Speaker Change: Then the next extension of data was in combination getting.
Speaker Change: And then a handsome providing confidence though.
Speaker Change: Physicians and patients that this is a safe and efficient way of administering this new mechanism.
Speaker Change: The gem ox data now recognized with a classification by the NCC and meaning.
Speaker Change: This is something that.
Speaker Change: And the adjustment with the MCC and.
Speaker Change: Providing benefits to patients and then we have this phase III that is ongoing with Lenalidomide. These are complementary in our minds and give a.
Speaker Change: Yes.
Speaker Change: Opportunity of choices for investigators to treat.
Speaker Change: Their patients respected hopefully with needs.
Speaker Change: Somebody who needs some more de bulking or maybe somebody else a little bit more frail.
Speaker Change: Really the main focus is actually frontline.
Speaker Change: I think we spoke about this until you also puts us on the slides. The study is fully codes and submit that readout in 2076 into a lot of the data that we're generating now isn't the substation in anticipation of that dataset.
Speaker Change: And to really supplement a very robust.
Speaker Change: Complementary dataset in frontline such that when this indication hopefully is going to be the positive we'll have again, a very complementary data sets will provide.
Speaker Change: Physicians with all opportunities to treat their patients that's essentially broadly the strategy and this is why also in second line behalf, a chemo and in non chemo combination strategies that makes sense.
Speaker Change: Thanks, <unk> I think it's very clear, let's move onto the next question.
Speaker Change: Thank you and now we'll go and take our next question comes from Sean Zhang from UBS. Your line is open. Please ask your question.
Sean Zhang: Hey, Thank you very much for taking my question just one <unk>. Please.
Sean Zhang: Wondering you mentioned the frontline <unk> trial could be could have readout by the end of 2026, just wondering if you haven't read out by end of 2026 do you think you will have two year or three year follow up at that time and that time that pull up conference do you think that's actually enough to.
Sean Zhang: Now FDA to keep a decision without being artful longer follow up considering the previous.
Sean Zhang: Precedent. Thank you very much.
Sean Zhang: Thanks for the question very exciting one so I'll, let I'll, let Tyler address that.
Tyler: Yeah sure I mean, so first things first so the study was fully accrued.
Sean Zhang: Some of last year.
Tyler: And so then there is an event driven endpoint PFS that is an accepted endpoint.
Tyler: And the population in this study is.
Tyler: Two ipi, Ohio, but Theres also a subsequent analysis for three ipi and higher.
Tyler: These events play out and we anticipate they play out in 2026 that would mean that the study with meats.
Physical defined primary endpoint.
Tyler: What you're referring to is the.
Tyler: The challenge that the FDA had with a lack of overall survival benefit.
Tyler: Initially as it relates to the <unk> study.
Tyler: And so obviously it will be whatever the data will be but.
Tyler: Based on the phase II data set that we have generated.
Speaker Change: Im pretty robust phase II dataset.
Tyler: We are quite optimistic actually.
Tyler: The signal in the experimental arm will be.
Tyler: Significantly stronger than the one I was seeing them flourish.
Tyler: And so we don't anticipate that that's going to be an issue for us.
Guy: Thanks Guy.
Guy: Move on to the next question. Thank you <unk>.
Guy: Thank you.
Speaker Change: And the next question comes from the line of Yaron lap that from TD Securities. Your line is open. Please ask your question.
Guy: Great. Thank you so much so maybe just.
Speaker Change: David just a follow up.
Speaker Change: Should we assume that the second line Follicular in second line <unk> that data by year end 2006 was that file a bowl.
Speaker Change: <unk> positive as well so you can fall both for first and second line or do you need more data from second line and then just secondly on <unk>.
Speaker Change: It sounds like from now on you're going to be the lead commercialization Party and you will book sales in the U S Europe and Japan.
Speaker Change: How do we how do we model that look how do we is there a royalty I assume back to Pfizer and congrats on getting that thank you.
Speaker Change: Thanks, Sharon for the question. So Ty you can address the question on the very exciting developments with aggregate them up and then perhaps why don't you explain the exact.
Speaker Change: Contractor on <unk> commercialization to DRAM after after a tight time line.
Speaker Change: Just two.
Speaker Change: Clarify Jan also set at the beginning in his prepared remarks.
Speaker Change: There are three of the pie for ongoing phase III that are fully accrued and.
Speaker Change: Weighting than we thought based on events, let's say in third line if you <unk>.
Speaker Change: In second line Follicular lymphoma, which is in combination with our.
Speaker Change: Square.
Speaker Change: <unk> in frontline <unk>, and we were talking about the frontline diffuse large b cell study that finishes the call last year.
Speaker Change: And where we anticipate.
Speaker Change: By events.
Speaker Change: Then it was initially prognosticated and Thats also true.
Speaker Change: For the second line Follicular lymphoma.
Speaker Change: Phase III, which also.
Speaker Change: <unk> significantly faster than they should projected and thus because this is event driven studies, we anticipate a readout.
Speaker Change: Earlier than initially projected.
Speaker Change: Thanks, Thanks, Ty and maybe move onto Brad for the exact commercial.
Formulation of the contract for <unk>.
Speaker Change: Brad.
Brad Bailey: Yes. Thank you and again, we are excited about the opportunity as it provides us the opportunity to.
Speaker Change: The expand our commercialization footprint.
Speaker Change: <unk>.
Speaker Change: In terms of the agreement as mentioned earlier remain.
Speaker Change: U S and China are as is where Pfizer is actually still lead party and both of those areas. As we are still co promoting here in the U S.
Speaker Change: Europe and.
Speaker Change: Rest of world, including Japan, we will be the lead party at that point and there will be a low double digit royalties involved as per the contract that we have already set up but it's just as a reminder, U S and China remains the same.
Brad Bailey: Thanks, Thanks, Brad very clear.
Speaker Change: Thanks, Sharon for the question, let's move onto the next question.
Speaker Change: Thank you Dan and now we're going to take our next question. It comes from the line of Matthew Phipps from William Blair. Your line is open. Please ask your question.
Matthew Phipps: Hello, Thanks for taking my questions.
Speaker Change: Are you guys able to disclose if youre going to use a folate receptor alpha expression cutoff for the endometrial cancer Phase III and then I'll, let Kelly.
Speaker Change: I don't know maybe half a year of launch or a little more on that in Follicular lymphoma. At this point do you see any broader utilization and follicular given no need for hospitalization. Just wondering if that is helping get into community settings, and if you think that will be a continuing trend. Thank you.
Speaker Change: Thanks, Matt for the questions that I think that you can address both both the folate receptor Alpha question for endometrial and then also the Opco question Alright.
Speaker Change: First things first so.
Speaker Change: This question has come up a couple of times trying to be very.
Speaker Change: Clear.
Speaker Change: Folate receptor alpha is a validated target and ovarian.
Speaker Change: <unk>.
Speaker Change: In park essentially all patients have some degree of 40% for alpha expression.
Speaker Change:
Speaker Change: Second.
Speaker Change: And this is partially related to the antibody that is the component of BNS and the internalization rates and partially related to the linker and the stability that comes through the hydrophilic linker.
Speaker Change: Profile of Bina as is that has generated and we have to stay that'll be to the degree.
Speaker Change: Also in the asphalt presentation already this closer but theres, obviously more data that we have internally that we're not able to disclose it has generated.
Speaker Change: Data across the entire spectrum.
Speaker Change: All fully receptor alpha expression, including patients who are <unk>.
Speaker Change: Technicality of TSA calls negative.
Speaker Change: And I spoke to that before.
Speaker Change: This is to the degree you also a function of the sensitivity so to be clear.
Speaker Change: Our strategy in the phase II and our strategy in the phase III.
Speaker Change: To not select for it.
Speaker Change: Others.
Speaker Change: <unk> expression now, we do stratify into phase III.
Speaker Change: By the various cutoffs, which is 125% and 75 and Thats just good practice.
Speaker Change: And can you say.
Speaker Change: On <unk> can you the question was.
Speaker Change: What are the lack of hospitalization is going to help us expand.
Speaker Change: Into areas outside of D. A.
Speaker Change: The larger academic institutions.
Speaker Change: And I think that is.
Speaker Change: Certainly a general part of our strategy with the kidney.
Speaker Change: And that's.
Speaker Change: My understanding also playing out already that.
Speaker Change: Utilization of it can be in Follicular lymphoma is helping us to get access into <unk>.
Speaker Change: Institutions.
Speaker Change: Actually we're not.
Speaker Change: Open to to.
Speaker Change: Using <unk> <unk>, such visa setting and that's also how the community is getting more comfortable.
Speaker Change: And that leads also to the discussion on.
Speaker Change: Our active efforts to remove hospitalization from the few such visa label, but I would actually ask spreads so maybe.
Speaker Change: From his point of view to this.
Brian: Brian do you want to.
Speaker Change: Yes.
Speaker Change: Yes, Thanks, Tom.
Speaker Change: With what you said I think its just another.
Speaker Change: Validation of physicians reported really strong response to our favorable clinical profile that dual indication as well as the positive label without hospitalization, that's required or not required NFL. So we do feel confident that this FL approval has and will continue to help us deliver innovative bi specifics across multiple histology.
Speaker Change: Across broad.
Speaker Change: And diverse sites of care as well so what's just reinforcing that from from the physician standpoint.
Brad Bailey: Thanks, Thanks, Brad.
To top it off.
Speaker Change: As a reminder, there is no requirements for any hospitalization and any of the ongoing phase III trials. So I think.
Brad Bailey: I think thats sure to clarify that.
Speaker Change: Let's move to the next question.
Speaker Change: Thank you.
Speaker Change: The next question comes from the line of Keith <unk> from Redburn Atlantic. Your line is open. Please ask your question.
Speaker Change: Hi, just one quick question on the renal as because you just mentioned about your clinical department plant in ovarian cancer.
Speaker Change: Mitra cancer Im just wonder what's your.
Speaker Change: Connecticut upon implant for other solid tumor indications such as lung and breast. Thank you.
Speaker Change: Very good question Peter.
Speaker Change: Ty comment on that study our excitement of Austria, most yes.
Speaker Change: So.
Speaker Change: There is indeed as you were alluding to for the sub Saharan <unk> expression in non small lung cancer, particularly in patients with egfr mutation, but not only restricted to that.
Speaker Change: And in triple negative breast and renal.
Speaker Change: We already spoke about that there will be activities.
Speaker Change: Activities in that range, we already have a cohort in non small cell lung cancer with patients who have egfr mutations in second line open and enrolling patients in that cohort.
Speaker Change: So hopefully we will get validation of what they all belief which is that this.
Speaker Change: This asset will also have efficacy in these two indications and then we're going to inform you about next steps quite timely.
Speaker Change: Thanks, Ty Thanks, Keith for the question, let's move onto the next question.
Speaker Change: Thank you and now ill Goldman to take over next question and it comes from the line of Justin Smith from Bernstein. Your line is open. Please ask your question.
Justin Smith: Yes, thanks, very much I've got two first one just on <unk>, if you want it to possibly share any thoughts about the potential impact from the potential re launch plan yet this year and then the second one just on the buyback and sorry, if I'm thinking about things the wrong way, but just trying to understand why you've announced that now and not waiting too.
Justin Smith: After the hexcel body decision from J&J I'm just is it a case of it.
Justin Smith: Just on interesting assets out there or just any thoughts on why the buyback timing now thank you.
Speaker Change: Thanks, Justin for the question. So I think the direct question is definitely more of a question for J&J because they are developing marbella and ill ask <unk> to give his perspective cause he is an expert in the multiple myeloma, maybe you can say some general things there on the.
Justin Smith: The landscape.
Anthony Pagano: And then Anthony can absolutely.
Anthony Pagano: Give you more rationale and thinking behind the buyback.
Anthony Pagano: Just announced today adjust them time, maybe some further color on branded App in the landscape in multiple myeloma.
Anthony Pagano: Yeah.
Speaker Change: I would hesitate to comment on another.
Anthony Pagano: The companys asset so broadly speaking.
Anthony Pagano: Always good for patients that they are.
That there are a lot of opportunities and I think we should leave it at that.
Anthony Pagano: Right I agree with that.
Speaker Change: So ask J&J ASC is the feedback Justin and then Anthony maybe a more rationale on the buyback right now.
Speaker Change: Yes, happy happy to give you a little bit more context here.
Speaker Change: Look.
Speaker Change: Our capital allocation priorities are super clear and are aligned with fueling revenue growth and enhancing shareholder value. Our first priority as I highlighted is really accelerating the development of our late stage pipeline and maximizing the success of our commercialized medicines as I highlighted <unk>.
Speaker Change: Priority is pursuing focused BD and M&A and after we evaluate these opportunities from these first two priorities we can consider.
Speaker Change: Our third priority, which your question is about which is return of capital as a reminder, here in 2024, we executed an approximate $500 million buyback.
Speaker Change: One 8 million shares and for 2025, having carefully considered this.
Speaker Change: Looking at all factors.
Speaker Change: We announced today, our plans to buy back an additional $1 9 million shares and we really think this.
Speaker Change: Strikes the right balance of fueling revenue growth and enhancing.
Speaker Change: Shareholder value. So I think this is the appropriate time to really outlined for all of our stakeholders our shareholders our capital allocation framework and priorities and I think we stepped through that.
Speaker Change: And a fair amount of detail and very clearly.
Speaker Change: Outlined these priorities and also demonstrated how we have executed against that framework.
Speaker Change: In 2024, and how we're set up very well to continue to execute against that in 2025.
Anthony Pagano: Thanks, Anthony I think is crystal clear thanks, Justin for the question So let's move on to the next.
Next analyst.
Speaker Change: Thank you and the question comes from the line of Telecom PURA <unk> hit from Morgan Stanley. Your line is open. Please ask your question.
Speaker Change: Great. Thanks for taking our questions we had one on <unk>.
Speaker Change: <unk> as a follow up to the last question and then one on guidance.
Speaker Change: So on BD I mean, giving you noted 2025.
Speaker Change: I have your execution year for the pipeline I just wanted to see how strong of a priority external BD and M&A could be for the year.
Speaker Change: If you decided to go that route what does the profile of the assets you would find most interesting and attractive to kind of bring into the <unk>.
Speaker Change: Pipeline, where it stands now and then secondly on guidance I was just wondering if you could provide a bit more color about what the drivers are for the bookends for the revenue gross profit and Opex guidance that you outlined for the year. Thank you.
Speaker Change: Thanks Vikram for your questions, let me address the PD, one and then Anthony can do the guidance question. So the BD is very very important for us because we want to organically and inorganically strengthen the pipeline accelerated what we will do is focus on antibody based medicine, because that is a field of expertise.
We did it very well last year with perform Bayou.
Speaker Change: Tell you that we did this.
Speaker Change: Not that this acquisition in record time and actually run into.
Speaker Change: The Chief Medical officer of a very large pharma and the head of oncology or a very large biotech. We all know who sets are basically congratulations on the performed by Dr. Levy you snap to the way in front of our face because we are simply much quicker than other companies and what we're looking for FICO Ms antibody based medicines with a truly differentiated because.
Speaker Change: <unk> expertise in this field for over 25 years now.
Speaker Change: Zoom into the right opportunities and that should be phase III programs, a phase III ready programs ideally for them up and that is to complement our own pipeline. We also filling our own pipeline, we are bringing more and more new molecules in the pipeline or sell from our own platforms. You have several platforms now ADC plot.
Speaker Change: Forms fits our.
Speaker Change: Responsible for over 50% of our pipeline right now than we have.
Speaker Change: Sorry, it's 40% of our pipeline and the 50% is about bi specifics at this moment unless this extra body. So we have a molecule from owned by own pipeline, but we also look very actively at <unk>.
Speaker Change: Companies, having interesting assets that we can then accelerate like we did for Ryan or SSB describe today, Nicole I mean in the year of the acquisitions already announced in two phase III potentially orders to come in other tumors I think is really.
Speaker Change: Blogging is fitting very well with our expertise.
Speaker Change: Develop of our differentiated antibody medicines.
Speaker Change: I believe it adapts becomes so we'll have to see where effectively we can execute that we are looking at multiple opportunities SD speak. So we are very busy with that.
Anthony Pagano: Now move to Anthony to give a bit more color on the guidance.
Anthony Pagano: Yeah, Vikram I think the starting point I would really just highlight for you to really kind of frame this out.
Anthony Pagano: Hopefully this is super clear for both 2024 and 2025 if.
Anthony Pagano: So from my perspective, we've absolutely delivered on our financial commitments, we zoom in on 2025, and just look at the really the quality of the guidance we put forward.
Anthony Pagano: Total revenue growth in all my comments will be at the midpoint of our revenue growth at 12%.
Anthony Pagano: <unk> revenue growth of 18%, we had $100 million plus nonrecurring.
Anthony Pagano: Revenue headwind looking at the improving quality of our revenue profile recurring revenues now at 95%.
Anthony Pagano: If we look at then the performance of that Kimberly in terms that we can really see the investments. We've made really focused investments. We've made over the last couple of years and building out our commercial commercialization capability is really paying off you can look at the net product sales collaboration revenue.
Anthony Pagano: Line, where we see growth for that line really driven by again, <unk> and <unk>, primarily up Kimberly to be clear projected growth of around 39% nearly 40%.
Anthony Pagano: At the midpoint. So it gives you a sense of the quality of the revenue profile of course, a big driver of our revenue continues to be <unk>.
Anthony Pagano: And here, we provided a range of $12 six to $13 four.
Anthony Pagano: <unk> 13 billion at the midpoint. So I would say this is probably the primary driver here of the revenue.
Anthony Pagano: Guidance range.
Anthony Pagano: In terms of our investments again, we really delivered on our commitments here really purposely reallocating our investments to the <unk>.
Anthony Pagano: Late stage pipeline and really investing in a smart way in sales and marketing to really deliver on today's launches, but to continue to build that foundation and platform for upcoming future launches again delivering on our commitments in terms of the opex range of around $2. One to $2 2 billion. Now this is really driven by the three investment priorities and where the diesel.
Anthony Pagano: Exactly we'll land and lot of that's due to the expansion and acceleration of core clinical development with five phase III trials ongoing in the expansion of <unk> in our key markets that we have with the start of phase III in second line, plus endometrial cancer as well as the overall trajectory of the phase III trial in <unk>.
Anthony Pagano: And of course, we have the ongoing work with Gen $10 46, or <unk> assume the map with the phase III phase II start in another indication and also progressing the phase III vikram. So it's really going to be these three programs I would say that are largely driving the variability of opex, but again, if we sort of if I finish my comments, where I started really we continue to deliver on.
Our financial commitments very strong recurring revenue growth and seeing that come through to the bottom line in terms of the 16% operating profit growth at the midpoint, we're projecting or more than $1 1 billion.
Anthony Pagano: Thanks, that's very helpful. Thank you.
Anthony Pagano: Alright, thanks for the questions, let's move on to the next one.
Anthony Pagano: And now we're going to take one last question for today.
Speaker Change: And it comes from the line of Richard Shannon from Goldman Sachs. Your line is open. Please ask your question Hi.
Thanks for taking my question.
Speaker Change: I was just wondering if we could get an update on Gen. 10, 42, I know the slide said that there is going to be a decision in 2025, but it's obviously been a decision thats been pending for some time. So just interested in understanding what you're still trying to establish here and.
Speaker Change: And if we could just get a little bit more clarity on the timing is that likely to be first half or second half of the year and just one for Anthony on clarification on the guidance is there anything assumed in guidance for 10 42 development and then a very quick one too.
Speaker Change: Wrap up you've previously talked about potential developments in immunology and inflammation for disease, either through your own internal pipeline.
Speaker Change: External sources could you just kind of talk to your latest thoughts there and an appetite from an internal and external perspective. Thank you.
Thanks for the questions. So I will ask unit to comment on the timing for 10 42 and Anthony for the what is in the plans for 10 42 and developments, let me start with the Ini question, but we already set right. Jon is that that can be we believe is an excellent candidates.
Speaker Change: The settlement also in select Ini indications that we are in discussions now with etsy to exit.
Speaker Change: Plan and discuss next steps for Kelly, we think is an excellent molecule, which will likely work really really well and the <unk>.
Speaker Change: Area, but we also have collaborations with organics, which is preclinical and a number of internal 100% owned program for Jan Marc. So we continue to be very focused on creating next generation differentiated antibody.
Speaker Change: Antibody based medicine.
Speaker Change: Candidates for Ini, and we will update you once we are closer to reconnect with our most advanced candidate is currently then let's move on to two units to speak a bit about timing for 10 42 units.
Speaker Change: Yeah. Thank you yeah. Thank you for the question. So as we put in the slide by 2025, and I cannot be more precise at this point because as you know to whatever you think is key for a year and we need the Oss does that ability in first line and then undergo their prioritization within the hour.
Speaker Change: Our own pipeline.
Speaker Change: In the head and neck externally is moving well and we will come with all these data sets.
Speaker Change: More likely by the second half of the year.
Anthony Robinson: Thanks to the units and then Anthony Robinson, the purchase of the guidance for 2025 for 10 42.
Speaker Change: Yes, John.
Speaker Change: Thanks, and good to hear from you I think as we sort of think about 142 as the of course, the ongoing work that Judah just alluded to and I would say the future work. It was really just not really material one way or the other this year, that's primarily based and is a function of timing.
Speaker Change: Then finally to top it off and I can tell you that not only <unk>, but.
Speaker Change: But also a part of biotech is very excited about what we have seen up to now with 10 42, we need more data already alluded to that we also think there is a great potential for combining 10 42 with different adcs in all of our concepts with both companies are working on so we're I think exciting times, we will need a bit more data.
Speaker Change: To get more.
Speaker Change: Better feeling for durability, but.
Speaker Change: A high level of excitement.
Speaker Change: Alright, operator. This was the last question. So thank you all for calling in today to discuss <unk> financial results for 2024. If you have additional questions. Please reach out to our Investor Relations team. They are ready to answer your questions and then hope that you all stay safe keep optimistic answer.
Speaker Change: We very much look forward to speaking with you all again soon.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect have a nice day.
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Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
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Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Okay.
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Okay.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change:
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].