Q1 2025 Pharming Group NV Earnings Call
Stephen Toor: Joseph Pantginis, Alistair Campbell, Zhen Liu, Richard Peters
Sijmen Wakkerman, Anurag Relan, Stephen Toor, Sijmen Vries
Stephen Toor: Hello and welcome to the Farming First Quarter 2025 Results Conference call and webcast.
At this time, all participants are in a listen only mode. [inaudible]
Stephen Toor: After the speakers presentation, there will be a question and answer session. To ask a telephone question, please press star-1-1 on your keypad to join the queue. To withdraw your question, press star-1-1 again.
Stephen Toor: Please be advised that today's conference is being recorded. I would now like to hand over to the priest Shureki, who CEO , please go ahead.
Fabrice Chiracchi: Thank you, hello everyone, and welcome to this Q1 2025 call. So I'm Fabrice Joachie and the CEO of Farming.
Speaker Change: And I will be joined on this call today by Steven Toor, our Chief Commercial Officer.
Fabrice Chiracchi: Anurag Relan, Our Chief Medical Officer, and Yurun Wakkerman, Our Chief Financial Officer.
Next slide.
Fabrice Chiracchi: In this goal, we'll be making forward-looking statements that are based upon our current insights and plans.
Fabrice Chiracchi: As you very well know, this may differ from future results.
Sijmen Wakkerman, Anurag Relan, Stephen Toor, Sijmen Vries
Next time.
Fabrice Chiracchi: First of all, let me say that I had a great first three months at Farming. The passion and the commitment of all employees to serving a rare visit patient is really palpable throughout the company, whether you are at the production facilities at the headquarter or with the field.
Fabrice Chiracchi: And this mindset of going this extra mile is clearly part of the DNA of the company and not just a few words on a culture slide as I've seen it actually too often.
Next slide.
Fabrice Chiracchi: So everyone is clearly determined to realize the vision that we've set for the company.
Which is? [inaudible]
Fabrice Chiracchi: To make Farming a leading global rare business company with a diverse spot for you and present in last market.
Fabrice Chiracchi: That leverages, a proven and efficient clinical development, supply chain, and commercial
Next slide.
Thank you very much.
and Sijmen Relan. Thank you. Thank you.
Fabrice Chiracchi: Our results in the first quarter of 2025 are a good illustration of the solid growth foundation that we have built to realize this vision.
Fabrice Chiracchi: We've had a strong start of the year with our total revenues increasing by 42% in the first quarter and a significant improvement of our bottom line, which supported an upgrade of our full-year guidance.
Fabrice Chiracchi: So going into a little more detail, Ruchen asked Group 49% to $68.6 million.
Fabrice Chiracchi: Driven by a continued increase of new patient enrollment and the sustained expansion of our
Fabrice Chiracchi: as well as a lower inventory stocking versus the previous quarter.
Thank you.
Fabrice Chiracchi: Rukunet as a unique profile on the on demand H.A.E. market, which makes it an extremely valuable treatment for moderate to serious patients who experience more frequent and stronger attacks.
Fabrice Chiracchi: In this differentiation, really explain the sum of momentum and gross prospect that we have for reconnecting the long term.
Thank you.
Welcome to Join Shop!
Ruben, you increased by 9%, driven by Robbist, New Patient and Robbman.
Fabrice Chiracchi: Offset by the impact of stocking in the last quarter of 2024, and higher, but expected, Joseph Peters, Gross tonight Adjustment, this is a year ago.
Fabrice Chiracchi: The efforts to identify new patients after the initial bolus of launch
Fabrice Chiracchi: is really starting to pay off with six new patients in the US this quarter, the largest quarterly increase since due to 2024.
We expect to see a sustainable acceleration of the number of new patients on joint jobs, starting in the second half of the year.
Three Clea Gross Catalysts to come.
First, the reclassification of VUS patients in the U.S.
Second, the Pediatric Label Expansion.
Fabrice Chiracchi: And third, the launch in key markets outside the US, which started actually with the UK just a month ago.
Thank you.
Fabrice Chiracchi: In the first quarter of 2025, our operating loss narrowed very significantly year over year, and we even generated a profit for the third quarter in a row if we exclude the non-recaring abliva acquisition related expenses.
So given our strong growth outlook, [inaudible]
Fabrice Chiracchi: I believe that our ability to be disciplined financially will be as important as generating strong top-line growth to unlock silicon value creation in the near and long term.
Fabrice Chiracchi: And at the first step, we've made a decision to cut GNX fences by 15% or 10 million dollars on an annual basis to optimize capital allocation to grow our business.
Next slide.
Our pipeline continues to progress well during this quarter.
Fabrice Chiracchi: Both the Genetic PID and Seabed Phase II studies are now initiated and enrolled in patient.
Fabrice Chiracchi: These two indications in patients with immune dysregulation, who may benefit from a modulation of their PICS-3 delta signal in pathway, have the potential to prepare, join Jato, whole new level, given the much higher patient prevalence.
Speaker Change: The clinical development team also were very hard to resume the enrollment of the Phase 2 Registration of Trials for KL-123 in MCD, just a few weeks after the completion of the Abelie Bay Acquisition.
and Anurag Relan.
Speaker Change: Before I let Anurag tell you more about this $2 billion plus pipeline opportunities, let me first end over to Steve Toor, our Chief Commissioner Officer, will give you a more granular perspective on the strong dynamics of Reconess and Joint Jail.
Speaker Change: Steve? Thank you for bringing us good morning everybody. If you could go to the next two slides.
Did we get a performance?
Speaker Change: So, as Pagry said, we've delivered a very strong performance in Q1, Rucheness is up 49% versus prior year. This reflects the strong trend that started in early 2023 as we
Speaker Change: Since then, our sales teams have added new prescribers and new patients on a quarterly basis which is translated to consistent quarter-on-quarter growth of Rukinae Sales.
Speaker Change: In addition to the underlying strength of the business, we also saw significantly less imagery build up.
Speaker Change: As Vries mentioned, especially farmers in Q4, so let them retreat to wash out in Q1
Sales therefore largely reflect the demand created within the quarter
Speaker Change: I'm also pleased to share that our market access team also improved the number and speed of prior authorization and patient prior authorizations in Q1, enabling our patients to reorder a reconnect earlier than previous years.
Speaker Change: So, these two factors combined also strengthen the Rickon S Performance in Q1.
Speaker Change: The key, though, to the past and future performance is, of course, Ruchenes. It always starts with a good product. So next slide, please.
Speaker Change: And in Rukines, we have an excellent product, serving all patient types, those being Type 1, Type 2 and the normal C1 patient population.
Speaker Change: All three groups, as it relates to Rook and I, have one thing in common. They all suffer from moderate to severe debilitating HA attacks and they have them frequently.
Speaker Change: They've also typically failed other targeted acute therapies such as a catapult, or are having to re-dose to resolve their H.A. attack.
Speaker Change: The Ruchenst delivers attack resolution for 97% of patients in a single dose is therefore a major factor in patients continuing to choose it to treat their acute attacks.
Speaker Change: Now, some of you know I've been with the company for almost nine years.
Speaker Change: So I've witnessed first hand the continued growth and also the enduring strength of the Rookless business.
Speaker Change: So I can testify that as well as being a very good product, it's also the result of very deliberate positioning and discipline messaging to the needs of the more severely effective patients.
Speaker Change: Primarily by our sales team, also supported that by the services we provide to ensure patients get covered, they get trained and are able to benefit from Rukines' confidence to infuse themselves over the long term.
Speaker Change: Now on this slide, you can see an actual patient, and in the photographs you can see the patient at the start of an attack, and then I recover it as it resolves at the 4-hour mark of the 24-hour mark.
Speaker Change: So for patients like this, as I said, suffering with a severe cause of disease,
Attack you frequently and happen to redo some other therapies.
Speaker Change: Knowing that 97% of patients will get their attack stops in a single dose, and almost all of them will be attacked for at least three days is critical to their decision to use Rookiness.
So, Rukinesseficacy is Reliability [inaudible]
Allows our patients to better chronic control their lives.
Speaker Change: So, the severe course of disease our patients have, and our team's execution of excellence is why Rukines will continue to have a strong position in the US to keep market and remain an important product for us for many years to come.
Next slide please [inaudible]
Sensationing now to Joe Inja,
Speaker Change: As for Bresset, we increased sales by 9% to 10.5 million in Q1. And importantly, we saw an acceleration in Q1 adding six more patients, ending the quarter with 102 patients on paid therapy in the U.S., where we've now identified over 240.
Speaker Change: Additionally, we have 187 patients on treatment globally, and we've now identified close to 900 patients worldwide.
Speaker Change: And as you've seen subsequent slides, your anger is still in the very early stages of this life cycle.
Speaker Change: With many well identified opportunities to accelerate growth in the near term, including the VUS programme Royal, the Pediatric Label Extension and the Lawtooth Joinger in key markets outside of
Speaker Change: which actually started just this call last quarter in the UK at a launch meeting in London which I had to privilege to attend.
Speaker Change: I can share that physicians and patients there are just as excited as those in the U.S. by the prospect of now accessing Jeroen to rapidious and the potential it has to transform patients' lives with APDS, just as it has in the U.S.
Speaker Change: As with Rukanis, though, it always starts with a good product. And in Joe Enger, we have the only product indicated to treat APDS, serious, debilitating an optimal fatal disease. Next slide, please.
and Anurag Relan.
Anurag Relan: I think that, as you all know, APDS is a primary marine deficiency caused by pathogenic variants in either of the two genes that encodes a PI-3K delta enzyme.
Speaker Change: The result is the immune system doesn't develop properly, having more immature cells and less functional cells.
Speaker Change: This leads to the symptoms APDS patients suffer with, which are often serious, have a negative effect on health, quality of life, and the patient's ability to live what we might consider a normal life.
Speaker Change: Fortunately, APDS can and often does also lead to early mortality. [inaudible]
Speaker Change: So, until the development and launch of challenger, APDS patients had no targeted or indicating medications to treat the underlying cause of their disease, their disease.
Sijmen Wakkerman, Anurag Relan, Stephen Toor, Sijmen Vries
thereby restoring balance to the immune system.
Speaker Change: I mean, doing so, Jeroen Ja has that potential to transform patients' lives. Next slide, please.
So, let's look briefly at a typical pace.
Speaker Change: with APDS on Joinger, in this case it's a 24-year-old male that we followed up over six years.
Speaker Change: On the left hand side you can clearly see the severity of the symptoms.
Speaker Change: The dispatient endured and the burden and impact had a prolonged period of this 24-year-old man's life.
Speaker Change: After starting Jeroen Ja, our patient was able to stop infusions of you in Godloon, had no hospitalizations, his blood platelets increased, and critically the organ damage in this instance the lungs hasn't worsened.
Speaker Change: The clinical impact means this young man has been able to walk and drive without difficulty, graduate high school and university and has now secured a full-time job.
Speaker Change: Results like this is what I meant when I stated on the previous slide, Jeroen just potential to transform the lines of APDS patients.
Speaker Change: It's also why, myself personally, my team and in fact, all of Farming's employees are excited for our global launches for APDS and what the molecule would deliver for patients and Farming over the long term.
Next slide please
and Anurag Relan.
Speaker Change: Finally, I want to review those near-term opportunities I mentioned for Jelangium both APDS and the longer-term build.
Speaker Change: Right now, our teams have in their hands the patients we've already found and those are remaining patients that bridge the gap from what we had today to the full prevalent populations in major markets around the world.
Speaker Change: We can also look forward to some milestones, an important additional opportunity to expand that addressable patient population.
Speaker Change: And if you look at the second block on this slide, the first is our totally geographic expansion program to key markets, as I mentioned, this has already begun with the UK launch.
Speaker Change: And the teams are preparing for further launches on approval in Germany, France, Italy, Spain, Japan, Canada, Australia, which means Jeroen, you will soon be available in most of the top ten farmer markets around the world.
Anurag Relan: The second is the output from the VUS Resolution Program, which Anurag will discuss later.
Anurag Relan: That would deliver another bonus of APDS patients available for treatment this year and be old.
Speaker Change: And the third will be the pediatric indication launch in the US, which is expected in 2026. We currently have over 60 pediatric patients in our US patient pipeline, and that is growing, and they will be transitioning to Juwenja as soon as that indication is improved.
Those are all significant near-term opportunities.
Speaker Change: In addition to that, though, as you see in the final two blocks of this slide, Lennie owns the Frape P.D.S., there's only Paul with that story.
Speaker Change: Transitions Lennia Resub from a small, ultra-ray disease molecule to one with blockbuster cells potential.
Speaker Change: thereby creating a linear super franchise, delivering significantly greater value for all stakeholders in the coming years.
Speaker Change: So, we are now teams that are a lot to be excited about. With all that said, I'll hand over now to our Chief Medical Officer Anurag Relan, whose teams are critical to driving these programmes forward to provide us with an R&D update.
Thank you. Bye.
Thanks, Steve.
Stephen Toor: Let's turn now to those growth drivers you were talking about, including beginning with those near term opportunities that we can see on the next slide.
Stephen Toor: So, as you heard from Steve, Julemja can have a real impact on patient's lives, but one of the problems in diagnosing AKDS happens when the result of the genetic test shows what's called a variant of uncertain significance or a VUS.
Stephen Toor: In fact, we found more than 1,300 patients in the US alone who have received such a result. This happens because the variant is new and there isn't enough information about that variant to know if that variant is actually awesome.
and Anurag Relan.
Stephen Toor: Variants in screen, those variants for PI-3K hyperactivity.
Stephen Toor: The results which we will publish soon will show that many of these variants actually do lead to hyperactivity of the pathway and can eventually cause these variants to be reclassified as causing APDS.
Stephen Toor: We expect that together all of this will lead to the identification of many new APDS patients later this year as we heard from Steve.
Stephen Toor: On the next slide, we can see some of the other opportunities that we have in terms of bringing Leniola to more APDS patients in several key markets across the world and to expand the addressable population.
Stephen Toor: To support geographic expansion, we have a number of regulatory applications underway in several key markets across the world on the left.
Stephen Toor: With the EMA European Medical Agency, we have a single outstanding CMC request and we remain on track to respond to this in January , 2026, which could then allow for approval soon afterwards.
Stephen Toor: We heard from Steve, we already have MHRA approval and we launched the drug there. We also have approval in Australia and an application under review in Canada.
In Japan, we expect to file Miss this year.
Stephen Toor: And then I think one of the other important things you heard from Steven is the pediatric need in APDS. This is a genetic disease that where symptoms begin early in childhood and given the progressive nature.
Bikmin is critical
Stephen Toor: To address this, we have a program with two studies that have actually completed enrollment now, and we intend based on the results of the first study to be able to file with FDA in the third quarter of this year with an expected six months review of this advocacy supplement.
Stephen Toor: Once we have the data from the second study, we'll follow a similar path to be able to bring Jelangia to even younger patients.
Stephen Toor: And then in the next couple of slides, I'll be talking about the two phase two studies we have other way to expand the use potentially of lenial simp even further to additional primary immun deficiencies.
Stephen Toor: And you see that here now on this slide where we're looking at using gleniosis for primary immune deficiencies with immune dysregulation.
Stephen Toor: Do you advance to the next slide? There we go. This group of patients of primary immune deficiencies with immune dysregulation is a group that's similar to APDS with their clinical features, the unmet need, and early mortality. It's also a group that's significantly larger than APDS.
But the rationale for setting the Lemios appear is very clear.
Stephen Toor: The PI-3K pathway in lymphocytes plays a clear role in the dysregulation seen in these patients, which drives...
Stephen Toor: The liver proliferation and the autoimmunity. It's actually the same approach that we have that we've seen be successful in treating ATBS patients, or modulating that enzyme to address the immune dysregulation.
Stephen Toor: We also have a positive experience and a handful of patients who have been treated with L.A. Olssef now for more than six months as part of a compassionate use request that we receive from physicians across the world.
Stephen Toor: So now we have two phase two dose-rime range binding studies underway, one in a genetically defined group of primary immune deficiencies, and the other in what's called CDIP or common variable immune deficiency.
Stephen Toor: Both with these hallmarks of immune dysregulation, and we expect the first results from these studies to be available in mid-20026.
Thank you.
Sijmen Revan, Anurag Relan, Stephen Toor, Sijmen Vries
which is KL-133 for primary mitochondrial disease.
Stephen Toor: This is the disease of impaired energy production due to mitochondrial DNA mutations which cause fatigue and muscle weakness in these patients, which you can see described in the quote from the patient on the right.
This is being developed now for primary mitochondrial diseases.
Stephen Toor: with these, which is a group of rare disorders where these patients have these mitochondrial DNA mutations.
Stephen Toor: There's a large number of these patients already diagnosed in the U.S. and large urine centers, countries, and they're usually treated at centers of excellence and part of a large advocacy group.
Stephen Toor: K-1 triple-3 addresses the underlying problem by normalizing the NAD plus to NADH ratio, which is abnormal in these patients.
Stephen Toor: and we have a registration enabling study underway with endpoints that have been supported by regulators including FDA.
and Sijmen Vries.
Stephen Toor: And now on the last slide, here, you can see our expanded pipeline.
Stephen Toor: which will provide significant growth prospects beyond Ruchenst and HAE and Joenja in APDS.
Stephen Toor: Across this portfolio, we can use our rare disease expertise and development infrastructure to bring products to patients where there's significant unmet need.
Stephen Toor: I'll turn it over to Jeroen now to review the financial performance.
Jeroen: Thank you very much Anurag and good afternoon, good morning everybody. As you've seen in the previous part of the presentation and in the next slide please.
Jeroen: Q1 was a very strong quarter for Farming. The revenues grew by 42% driven by Rukinesse Growth of 49% and Jowenja by 9% versus Q1 last year.
Jeroen: And the key growth drivers were additional demands for both Rukunest and Joenja from increased numbers of patients and the sustained expansion of our prescriber base.
and Anurag Relan. Thank you. Thank you.
Jeroen: The Gross Prophet is up 50%, which is the result of the additional revenues and a gross margin improvement of 4% to 89%.
Jeroen: Operating expenses increased because of the non-recurring abliva acquisition related expenses of $7.8 million.
Jeroen: Excluding those one-off costs, OPEX would be $70.4 million, which is well below the queue for 2024 OPEX level and in line with our guidance.
Jeroen: Again, adjusting for the oblivion, non-recurring cars, the operating profits was $0.8 million.
Jeroen: The net laws was 14.9 million, and that increased laws was primary due to the non-recurring abliver acquisition related expenses, much, most of which were non-text deductible.
Jeroen: And then that results were also infected by foreign exchange exposure and increased text cost.
Jeroen: The cash and marketable securities decreased since the end of the 2024 by 60.5 million to 108.9 million, and that was primarily driven by the purchase of the Abliva shares, totally in 66.1 million dollars.
Jeroen: We had a positive operating cash flow in the quarter for the third quarter in a row, even with the non-recurring of lever cost included.
and Sijmen Vries.
and Sijmen Relan. For more information, visit www.FEMA.gov.
Jeroen: On the next slide, we see the financial impact of the Abeliva acquisition. So we completed the acquisition of Abeliva via a public cash offer to the shareholders to acquire all outstanding shares for approximately $66.1 million in March 2025.
You see the immediate financial consequences on this slide.
Jeroen: As mentioned before, the non-recurring acquisition related expenses were $7.8 million and that is the bridge between the gap operating loss and the adjusted non-GAAP operating profit on this overview.
and Anurag Relan. Thank you.
Jeroen: The acquisition was accounted for as a business combination with substantially all of the value of the acquisition concentrated in one single asset, KL-1-3-3.
Jeroen: The acquisition price is allocated on our balance sheets to the fair value of the acquired identifiable assets and liabilities and the access is recorded as goodwill and you see the numbers on the slide.
Jeroen Wakkerman, Anurag Relan, Stephen Toor, Sijmen Vries
Jeroen: Up from a prior grad guidance between 315 and 335 million.
Jeroen: And this new guidance implies a growth between 9 and 14 percent.
Jeroen: We expect operating expenses to be flat versus last year prior to the impact of oblivion, and we expect $30 million in oblivion related to operating expenses, and that includes research and development costs and non-recurring transaction and integration expenses.
Jeroen: Available cash and future cash flows is expected to cover at the current pipeline investments and pre-launch cost and that hasn't changed since the last guidance.
and Sijmen Vries. Thank you.
Fabrice Chiracchi: With that I would like to hand back to Fabrice to close the presentation.
Fabrice Chiracchi: Thank you, Yerun. So, as you've heard, I mean, we are off to a strong start of the year, which is fueled by the continued strong growth of Recona, and an acceleration of new patients on, on joint job, the largest increase in the Q224.
As a consequence, we are raising our foodier guidance.
Fabrice Chiracchi: And we are also selling the foundation for strong financial discipline, with as a first step, the decision to decrease annual GNS spend by 10 million dollars on an optimized capital allocation and drive sustainable growth.
Fabrice Chiracchi: We also continue to invest in our pipeline with the objectives to generate two blockbuster assets.
Joseph Pantginis, Alistair Campbell,
Fabrice Chiracchi: To potential new indications for PIDs with immune dysregulation are, unfortunately, to significantly expand during just addressable patient population beyond APDF.
Fabrice Chiracchi: and KL123 and mitochondrial diseases, the other asset with a billion dollar plus revenue potential.
Fabrice Chiracchi: So as you can see we are building a sturdy platform for sustainable growth and valuation with a series of genius catalysts in the short and near-term.
Fabrice Chiracchi: I personally believe that today more than ever our goal to develop a leading rare disease company is really in rage.
Fabrice Chiracchi: Let me finish this call by thanking, sincerely, Yurun Wakkerman, our chief finance officer for his contribution to the growth of Tharming of the past four years.
With this, I'll open the line for questions.
and Sijmen Vries. Thank you. Thank you.
Speaker Change: Thank you. As a reminder to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced.
Speaker Change: And that first question comes from the line of Jeff James from Oppenheimer. Your line is open, please go ahead.
Geoff Jones: Good afternoon, gentlemen. Thank you for taking the question and congrats on a great quarter. Jeroen, one quick clarification for you on the financials.
Geoff Jones: Should we be then thinking about the 10 million adjusting in to say R&D, or how should we think about that?
Yeah.
Geoff Jones: So, yes, so as I said, actually, this is really an adjustment that we're making on G&A, so General Administrative Expenses, to really optimize the capital location to drive the growth of our business further.
Geoff Jones: So clearly the goal is not to touch R&D, not to touch our commercial expenses, which clearly are the engines of the short and long term growth.
Speaker Change: I'd appreciate that. And then, you know, one thing that is obviously a topic of a lot of discussion right now is the potential for tariffs with the US.
Speaker Change: So obviously, I mean, we don't have the details, you know, on the size and on the scope of those potential import tariffs. So it's very difficult to...
Speaker Change: To comment without this specific. What I can say is that we've been working to evaluate a range of scenarios, to see really how we can mitigate the risk.
and the impact of potential tarot.
Speaker Change: This could include, I mean, adjustment in our supply chain, in our manufacturing, adjustment in our custom price. I think it's too soon actually to go into more details, but our goal is to be proactive so we have a set of options.
If this actually becomes a reality.
I appreciate that. I'll jump back into the queue.
Thank you.
Add Next Question
comes from the line of...
Speaker Change: Joe Pantginis, from H.C. Wayne White, please go ahead, your line is open. [inaudible]
Speaker Change: Hey guys, good morning and good afternoon. Very nice to see the continued growth in the assets and looking forward to the expansion of the pipeline. So, two-part question, if you don't mind. So first...
Speaker Change: I wanted to get a sense and this is one of the obvious questions.
with regard to product growth.
Speaker Change: You know, potential impact on tariffs right now and on your supply chain. And as part of that, you saw a nice Rukinette's growth in the first quarter, just curious how...
Speaker Change: First Quarter, Insurance and Medicare Resets might have impacted that. And then the second question is maybe for Stephen, you know...
As you're looking to continue to drive new doctor
Speaker Change: You know, signing on for Rookanest. What are some of the key education or, you know, they need to wait to see more factors before they actually sign on for Rookanest. Thanks guys.
and Anurag Relan.
Speaker Change: Steve, would you like to comment, actually, on the Medicare reset and the growth? Absolutely, thank you, Vries. Morning, Joe. Thank you for the two questions. So just don't Medicare. Clearly, as you're aware, the...
Speaker Change: I would say that it certainly didn't hurt us, but it wasn't a major factor in our growth growth. The growth as I said just came from the underlying strength of the brand, but it wasn't the trend, but also the focus that we have on those severely affected patients.
Speaker Change: So you add some impact, but it wasn't major for us and certainly not for reconnist.
Speaker Change: In terms of what new doctors like to see, I would say in those, these are centers of excellence or those locations where positions have a bigger patient base.
Speaker Change: Then, we're already very well positioned for patients that are attacking frequently and, you know, for whom other medications just aren't working or they happen to re-dose a lot.
Speaker Change: Which I think is one of the factors where, you know, aside from the execution stuff I mentioned, you see that consistent growth, you know, pre-pandemic and then you see it return again when the office is reopened and we're able to get back out there and and remind physicians of exactly where we can assist within the market.
Speaker Change: So I think does that does that answer the question for you Joe?
It certainly does, Steve.
Thank you.
Thank you. We will take our next question.
and Sijmen Vries. Thank you.
Speaker Change: And next question comes to the line of Alistair Campbell from RBC, please go ahead your line is open.
Alistair Campbell: Thanks very much, everyone. Thanks for taking my questions today. Just a couple, please. First of all, on du end, so a few things happening in Q1, but maybe if we could just help me understand
and Sijmen Vries.
Speaker Change: Thank you, Alistair, for this question. So, let's first you run and answer the tax question, and then these can provide actually a color on just questions on Jo and Jo.
Speaker Change: Yeah, thanks Alistair for the question. In terms of the text line in Q1, it was really affected by three key things.
Speaker Change: Then we had some share-based payment costs that are also non-deductible, so that increases obviously the effective tax rate, and we had a release of a different tax assets from the past.
Speaker Change: Those topics are all one-offs apart from share-based compensation that will increase a little bit, but most of it is one-off. So the high-tech cost that we had in Q1 is a one-off and we don't expect that to continue in the remainder of the year.
Thank you
Speaker Change: of our pricing action to flow through to the netline this year.
Speaker Change: and in terms of approval evolution, I think as you've seen both within the U.S. but also globally in key in Arches, we continue to build a funnel.
Speaker Change: Now, and we've seen an acceleration as both the recent I mentioned earlier in the call and patients coming on to pay therapy in Q1 which was really nice to see.
Speaker Change: And that really reflects everything that we put in place in the support services, in the reverse and service, etc. So, convert patients as quickly as possible.
Speaker Change: The good news is that the vast majority of patients are being converted relatively quickly once they're enrolled and with very little market access barriers being put in place.
As a setting previous course, it's not linear.
You know, your patients, these are very complicated patients with all kinds of co-orbidities.
Speaker Change: You know, we also, as I mentioned, have a lot of pediatric patients who simply don't qualify right now. So it's not linear, there has been consistency though and as Q1 was great to see and you know, we expect to see you know, more and more patients converting through the year. [inaudible]
Speaker Change: And they're very confident. Does that help Alistair? Yeah, it certainly does. Maybe, Stephen, I quickly come back. He's talking about 75, 76, flow through to that this year. I mean, how are that broadly compared to what you saw in 24?
Speaker Change: I saw him grow to this and that's quite complicated and they are affected by different things. I think it's probably slightly better in the book of business lens itself this year in terms of utilization of government versus commercial patience. So I think you know without having the direct comparison from it's probably slightly better than last year. I think it's probably better than last year in terms of utilization of government versus commercial patience.
Okay, great, thank you.
Speaker Change: Thank you. As a reminder, if you'd like to ask a question, please press star one and one on your telephone and wait for your name to be announced.
Thank you. Bye-bye.
Speaker Change: And next question comes with a line of Simon Scholes from First Berlin. Please go ahead.
Sijmen Scholz: Yes, good afternoon. Thank you for taking my question. I've just got one.
Sijmen Scholz: I've been given that red news are going to be presumably going to be continuing to grow quite strongly.
Speaker Change: Reducing GNA cost by 10 million is not going to be that easy, I was just wondering what elements of GNA you expect to be able to reduce which elements you are targeting in particular.
Speaker Change: Thank you Simon for your question. I mean at this stage I cannot comment actually on the detail of the plan and as soon as I can I'll share more.
Speaker Change: It is indeed actually an ambitious plan. I believe it is something that we hope to do. I mean, our ability, as I said, to manage, to ensure that we get the
Speaker Change: The best return on every euro, every dollar we invest is absolutely essential to unlock a patent-value creation.
We have a great growth outlook, and it's...
Speaker Change: He's both about top line and bottom line if we want to optimize the value creation. So, we're doing to take the size, we're finalizing to take the size and when I can share more, I'll share more. But this is a target that we've set $10 million on an annual basis.
Okay, thanks very much.
It's great.
and Sijmen Wakkerman, Anurag Relan, Stephen Toor, Sijmen Vries
Unless there are any further questions? [inaudible]
and Sijmen Vries. Thank you.
Speaker Change: I'd like to hand back to the speakers now, thank you.
and Sijmen Vries. Thank you. Thank you.
Speaker Change: Listen, with this, I think we're going to close our call. Thank you so much for your interest in the company. Thank you for your questions. We look forward to. Thank you.
Speaker Change: updating you on our plan and probably I'll see many of you in person through a one-on-one meeting or at the investor conference in the coming month. Thank you very much.
Speaker Change: Thank you, that does conclude today's conference. Thank you for participating. You may now disconnect, because please stand by.
Joseph Pantginis, Alistair Campbell
Thank you for watching!
Joseph Pantginis, Alistair Campbell, Zhen Liu
Thank you, it was fun!
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