Q3 2025 Fagron NV Earnings Call

Ignacio Artola: Welcome to Fagron's Third Quarter 2025 Trading Statement webcast. I'm joined today by our CEO, Rafael Padilla, and our CFO, Karim de Jong. We will open the floor for questions at the end of the session. With that, I will hand over to Rafael.

It went to five trading statement webcast I'm joined today by our CEO about a year and our CFO cutting the young.

We will open the floor for questions at the end of the session and with that I will hand over to Rafael.

Rafael Padilla: Thank you, Ignacio, and good morning all. We're pleased to report a solid quarter where we achieved normalized organic growth of 8.5% and 5.7% organic growth at constant rates when including the phase-out of GLP-1s. This quarter, our Wichita facility underwent a routine inspection by the FDA, wherein the agency verified the corrective and preventive actions we set in place and received no repeat observations, which validates our remediation actions. Additionally, the FDA also validated the previously announced capacity expansion that is expected to generate $25 million in revenue. We also continue to execute on our M&A strategy as we announce the acquisition of UCP in the US, while at the same time we have received competition clearance for Purifarma and Injeplast in Brazil. In 2024, we have already welcomed eight companies, showing our M&A discipline and serial acquirer profile.

Thank you Ignacio and good morning, we're pleased to report a solid quarter, where we achieved normalized organic growth of eight 5% and a five 7% organic growth at CER, when including the phase out of GOP ones.

This quarter, our Wichita facility underwent a routine inspection by the FDA. We are in the agency verified the corrective and preventive actions, we set in place and received no repeat observations, which validates our remediation actions.

Additionally, the FDA also validated the previously announced capacity expansion that is expected to generate $25 million in revenue.

We also continued to execute on our M&A strategy as we announce the acquisition of UCP in the U S. While at the same time, we have received competition clearance for <unk> pharma and <unk> in Brazil.

In 2025, we have already welcomed eight companies showing our M&A discipline serial acquirer profile and to finalize we confirm our full year guidance of $932 150 million revenue and a slight increase in profitability year on year.

Rafael Padilla: To finalize, we confirm our full-year guidance of $930 to $950 million revenue and a slight increase in profitability year on year. Let us now look at the regional dynamics. In EMEA, revenue growth was driven by all segments and contributions from our recent acquisitions. B&E saw an impressive quarter as we reaped the benefits of our refined commercial strategy, improved operational excellence, and diversified footprint. In compounding services, we benefited from robust demand combined with new customer wins. In Latin America, growth remains solid with all segments contributing positively. Brands' impressive growth trend remains, reflecting the successful execution of our commercial strategy coupled with our innovation power. Essentials continues to benefit from our market leadership position and an improvement in underlying demand. Turning to North America, B&E's organic revenue growth was driven by improvements in operational excellence and new product launches benefiting on the B2A opportunity.

Let us now look at the regional dynamics in EMEA revenue growth was driven by all segments and contributions from our recent acquisitions Muni saw an impressive quarter as we reap the benefits of our refined commercial strategy improved operational excellence and diversified footprint and compounding services.

We benefited from robust demand combined with new customer wins in Latin America growth remained solid with all segments contributing positively.

<unk> impressive growth trend remains reflecting successful execution of our commercial strategy, coupled with our innovation power Sn.

Essentials continues to benefit from our market leadership position and an improvement in underlying demand.

Turning to North America be any organic revenue growth was driven by improvements in operational excellence and new product launches benefiting on the <unk> opportunity compounding services demand remained strong in both health and wellness and hospital outsourcing. This was offset by the absence of <unk> sales and <unk>.

Rafael Padilla: Compounding services demand remains strong in both health and wellness and hospital outsourcing. This was offset by the absence of GLP-1 sales and the impact from lower output at the Wichita facility during validation of additional capacity that will generate revenues of $25 million. Finally, the Anaseos facility investment in Las Vegas, as well as the integration of Carefirst Specialty Pharmacy's umbrella core, remains on track. In Tampa, we await California license to be able to complete the transition to the new facility. Let's now say a few words about quality. This quarter, our Wichita facility underwent an FDA routine inspection, concluding in no repeat observations, which validates our remediation actions. This year's inspection also validated the previously announced capacity expansion that will generate an additional $25 million revenue. During the routine inspection, the FDA also issued a Form 483 with six observations.

From lower output at the Wichita facility during validation of additional capacity that will generate revenues of $25 million.

Finally, <unk> facility investment in Las Vegas, as well as the integration of <unk> and <unk> remains on track and in Tampa, where weight, California license to be able to complete the transition to the new facility.

Let's now say a few words about quality.

This quarter, our Wichita facility underwent an FDA routine inspection, concluding no repeat observations, which validates our remediation actions. This year's inspection also validated the previously announced capacity expansion that will generate an additional $25 million revenue.

During the routine inspection the FDA also issued a form 43 with six observations. Additionally, our <unk> facility in Las Vegas was also inspected by the FDA, resulting in a form 43 with four observations.

Rafael Padilla: Additionally, our Anaseos facility in Las Vegas was also inspected by the FDA, resulting in a Form 483 with four observations. As we repeat quarter on quarter, quality remains a key differentiator in our industry. With over 35 facilities to audit globally, we are constantly inspected by regulatory bodies across the world to uphold the highest quality standards. Moving on our growth strategy, we're happy to announce one more addition to the group, UCP in California, totalizing eight so far this year. With this acquisition, we're setting up a nationwide platform to better position ourselves to capture the rapidly growing health and wellness market. UCP enhances Anaseos' portfolio and footprint and has a strategic relevance as California is a market with hard-to-obtain licenses. We also received exciting news regarding Purifarma and Injeplast. The Brazilian competition authority, CADE, has granted clearance for these acquisitions.

We're a bit quarter on quarter quality remains a key differentiator in our industry with over 35 facilities to audit globally, we're constantly inspected by regulatory bodies across the world to uphold the highest quality standards.

Moving on our growth strategy, we're happy to announce one more addition to the group UCP in California Totalizing eight so far this year with this acquisition, we're setting up a nationwide platform to better position ourselves to capture the rapidly growing health and wellness market UCP and how.

<unk> and <unk> portfolio and footprint and has a strategic relevance is California is a market with hard to obtain licenses.

We also received exciting news regarding 40 pharma in India, plus the resilient competition authority cabinet has granted clearance for these acquisitions. This represents an important step forward in executing our disciplined M&A strategy and will enhance our boat portfolio and local capabilities in Brazil.

Rafael Padilla: This represents an important step forward in executing our disciplined M&A strategy and will enhance our product portfolio and local capabilities in Brazil. The acquisitions are subject to closing conditions and completion of certain local corporate and contractual formalities. The important bit is that with regulatory clearance, we have certainty of closing both deals. Again, so far this year, we have made eight acquisitions following a serial disciplined acquired M&A approach focused on market consolidation, enhancing our product capabilities, and geographical expansion around the globe. This showcases our strong momentum. Moving to our full-year guidance, we're confirming our revenue guidance to a range of €930 million to €950 million, while confirming a slight improvement in profitability year on year. CapEx will remain around 3.5% of revenues, excluding one-off projects already announced.

The acquisitions are subject to closing conditions and completion of certain local corporate and contractile formalities. The important bit is that with regulatory clearance. We have certainty of closing both deals again. So far this year, we have made eight acquisitions following a serial.

<unk> acquire M&A approach focus on market consolidation and enhancing our product capabilities and geographical expansion around the globe. This showcases our strong momentum.

Moving to our full year guidance, we are confirming our revenue guidance to a range of 903 to 150 million euros, while confirming a slight improvement in profitability year on year Capex will remain around three 5% of revenues, excluding one off projects already.

Rafael Padilla: To conclude, Fagron is the only global vertically integrated niche defensive high-cash generating company operating in the pharmaceutical compounding fragmented market. Our resilient business model is fortified by a diverse geographical footprint. These factors, coupled with demographic trends and our emphasis on personalization, are the basis of our success. Our quality focus, together with our ongoing operational excellence initiatives, will optimize our business through global synergies. While a disciplined serial acquired M&A strategy remains a key part of our growth, sustainability is a paramount priority and a strategic cornerstone for us. As together, we create the future of personalizing medicine. Let's open the floor now for questions. Thank you.

Yes.

To conclude.

<unk> is the only global vertically integrated niche defensive high cash generating company operating in the pharmaceutical compounding fragmented market. Our resilient business model is fortified by a diverse geographical footprint. These factors coupled with demographic trends.

And our emphasis on personalization are the basis of our success our quality folks together with our ongoing operational excellence initiatives, we will optimize our business through global synergies wireless discipline serial acquire M&A strategy remains a key part of our growth sustainability is apartment priority and a strategic.

As a cornerstone for us as together, we create the future of Personalizing medicine, let's open the floor now for questions. Thank you.

Operator: Thank you. Our first question comes from Stein de Meester from ING. Please go ahead.

Thank you I will our first question comes from Stein the Mesa from IMT. Please go ahead.

[Analyst 1]: Yes, good morning. Thanks for taking my questions. Two questions, if I may. First one is on the U.S. compounding business. It seems that the broader market in North America is too focused on GLP-1s, even though the FDA has removed semaglutide from the list and shorted list. Even a listed company like Hindenburg seems to continue to offer GLP-1-like formulations. The question here is, how do you explain the situation? How long do you believe it can last, as it does seem to impact your business adverse? Second question on Purifarma. In the press release of earlier this week, you mentioned that the scale of the Brazilian operation is expected to generate procurement benefits not only across Latin America, but also in the entire global footprint.

Yes. Good morning, Thanks for taking my questions two questions if I may.

First one is on the U S compounding business it seems that the broader market in North America too focused on GSE loans, even though the FDA for us some incremental from a rough on the shortage list even a listed company like Kingdom. Her seems to continue to offer a <unk> formulation.

A question here is how do you explain the situation how long do you believe that's been lost as industrial to impact your business at first year with <unk>.

Second question on Premier Farnell in the press release of earlier. This week, you mentioned that the scale of the Brazilian operation is expected to generate procurement benefits not only across Latin America, but also in the entire global footprint can you maybe elaborate on this in the light of the FDA approval for so Paulo facility, which apparently opens up an export into North America.

[Analyst 1]: Can you maybe elaborate on this in the light of the FDA opportunity for your Anaseos facility, which apparently opens up an export route into North America? It could be helpful to get an idea to what extent this can benefit your group operations. Thank you very much.

That could be helpful to get an IV to what.

This can benefit your brokerage operations. Thank you very much.

Rafael Padilla: Thanks a lot, Stein. Good morning and great questions. On the first one, on GLP-1, of course, we can't comment on our own activities. As you know very well, on May 22, the GLP-1s or semaglutide was out of the shortage list, so we stopped compounding. In the current framework, what we see is that on the 503A with a clinical difference statement, so it's in each script, a statement on each script. A script could be compounded. Of course, as you can understand, this is not so much convenient for doctors to fill in a form. This is our current view on it. When it was commented on the impact, when we see at the underlying trend of the health and wellness market in this case, that's special for us, Anaseos. We see that even without the GLP-1s, we have set a nice quarter year to date as well.

Thanks, a lot and good morning, and great questions on the first one on <unk>. One of course, we can comment on on our own activities and as you know very well on may 22nd the GOP Wadsworth Center growth. It was out of the shortage list. So we stopped compounding in the current framework, what we see is that on the <unk>.

With a clinical differences statements. So it's in each script a statement on each script a script could be could be component of course as you can understand this is not so much convenient for doctors to fill in a form. So this our current view on it and when a when it was commented on them.

Impact when we see at the underlying trends of the health and wellness market. In this case, so thats special for us and we see that even without the GOP ones. We have set a nice a nice quarter year to date as well and also as we move to the new Tampa facility will have an operating on two so we expect the California license for the Tampa facility to have a complete.

Rafael Padilla: Also, as we move to the new Tampa facility, we have been operating on two. We expect the California license for the Tampa facility to have a completion of the move. On the second one, on Purifarma, indeed, Purifarma, as we have commented previously, has a strong portfolio in essentials, so 300 items with huge volume. If you remember, Stein, we explained that the Purifarma facility, it's 500 meters, so 10 minutes walking out from ours in Anápolis. That's close to Brasília in the center of the country. That was part of our plan that we explained some months ago, nine months ago. We explained that we're going to integrate Purifarma activities into Fagron Services Brazil activities. Remember that the Fagron Services factory was built in 2022 with the idea, with the vision at that time, to have a huge facility to cover the whole Brazilian market.

<unk>.

Yeah.

Then on the second one pharma indeed for a pharma as we have commented previously as a strong portfolio in essential sold 300 items with huge volumes. If you remember span we explained at the Pew pharma facility.

500 meters of 10 minutes woken up from ours in Annapolis, that's close to Brasilia in the center of the country.

And of course, that's a that was part of our plan that we explain some.

Some months ago nine months ago, we explained that we're going to integrate pre farm activities into <unk> services, Brazil activities remember that the final services factory was built in 2022 with the idea with the division at that time to have a huge facility to cover the whole Brazilian market.

Rafael Padilla: Therefore, we're going to absorb without any single problem all those volumes. As you said, we're going to leverage volumes of those essentials throughout our global network. As you know, we have now a robust procurement network. They explained that very well during our capital markets day. We'll see impact on the savings. We have a 3% target till 2027, as we explained during April 10. Next to that, this will give, of course, units to have a better cost price in the units we make. We are going to have better cost pricing also for the goods that go into the US. Thanks a lot, Stein.

And therefore, we're going to absorb without any single program. All those volumes of course as you said, we're going to leverage volumes of those essentials throughout our global network. So as you know we have now a robust procurement network vet explained it very well during our capital markets day, So we will see impact on the.

Savings were up 3% target until 2027 as we explained during our April 10th and next to that this will give of course units.

Two.

I have a better course.

Price in the units we make so we are going to have better cost pricing for the goods that go into the U S. Thanks a lot.

[Analyst 1]: Okay, thank you.

Okay. Thank you.

Yes.

Operator: Our next question comes from Franca Klase from Degroof Petercam. Please go ahead.

Our next question comes from Phil.

<unk> from the house to come. Please go ahead.

[Analyst 1]: Yes, good morning, Franca Klase from De Groof Petercam. Good morning. Two questions. First of all, on EMEA, there was quite a strong growth acceleration in the quarter. Could you elaborate what drove that acceleration? Is this growth rate, new growth rate, sustainable going forward? That is the first question. The second question on Wichita. You had a lower output due to productivity improvement program, or at least the capacity expansion. Could you indicate how much revenue impact that had in Q3? Will it be gone in Q4? When will the $25 million revenue capacity kick in? Will it already be as of Q4? Some explanation on that, please. Thank you.

Yes, good morning composite Godfrey Tim Good morning, two questions first of all on EMEA.

It was quite a strong growth acceleration.

In the quarter could you elaborate what drove the acceleration and also is this growth rate new girlfriend sustainable going forward. So that's the first question.

And the second question on the Wichita, you had a lower output due to productivity.

Improvement.

Program or at least the capacity expansion.

Could you indicate how much Rev.

Revenues in fact that had in Q3 and will it be gone in Q4 and one will.

Will the $25 million revenue capacity kick in well that's already being as of Q4.

Some explanation on that please thank you.

Rafael Padilla: Thanks a lot, Frank. Good morning. On EMEA, indeed, we have seen a strong quarter. As we commented previously, we see a pickup in the underlying market demand. There are clear tailwinds as aging population, prevention, and lifestyle. We see that kicking in also in the European landscape, which benefits us a lot. This together, when you remember, Frank, we explained some years ago that we had a clear strategy for Europe with two pillars. One was the diversification of the Benelux. We were heavy lifted at that time in the Benelux. Now, of course, Netherlands and Belgium is important, which they perform very good. We have also started activities in other countries, so this helps. The second pillar is, of course, our operational excellence programs with our Polish facility. Of course, availability goes up. They explained during our capital markets day, our product availability at 95%.

Thanks, a lot Frank good morning on on EMEA and deep we have seen a strong.

<unk> as we as we commented previously we see in a pickup in the underlying.

Market demand there are clear they're wins this aging population prevention on lifestyle, we see that kicking in also in the European landscape, which benefits us a lot and these together when you remember frankly explain some years ago that we have a clear strategy for Europe with two pillars, one was the diversification.

The Benelux, we were heavy lifted at the time in the Benelux now of course, Netherlands, and Belgium is important which they perform.

Very good we have also started activities in other countries or these hubs and the second pillar is of course, our operational excellence programs with our Polish facility of course availability goes up AR VR explained during our capital markets day, our public availability at 95% in Europe. We're already at 93. So this has been a major step.

Rafael Padilla: In Europe, we're already at 93%. This has been a major step, and this helps on the development.

And this helps on the development.

Karin de Jong: Yeah, good morning, Frank. I'm to come back on your question on the growth rate of EMEA. Indeed, they had a very strong quarter with 7.8% growth. We don't expect that level in the fourth quarter. However, we are very positive about that EMEA region. For the full year, we expect a low single-digit to mid-single-digit % of top-line growth. That is also in line with our midterm targets. On the second question on the Wichita facility, at FSS, we had a growth in the third quarter of 6%, which was indeed driven by a temporary lower production output due to the validation of the new production room. The impact is difficult to quantify as we have some spillover in the fourth quarter and some loss. We have relatively good visibility on the fourth quarter, and we expect a good quarter. Year to date, we're at 15.9%.

Yes, good morning, Frank and then to come back on your question on the growth rate of EMEA ASO. Indeed, they had a very strong quarter with seven 8% growth.

We don't expect that level in the fourth quarter. However, we are very positive about that EMEA region for the full year, we expect the low single digits to mid single digit percentage of top line growth and that is also in line with our midterm targets.

And on the second question.

The Wichita facility and as I was asked we had a growth in the third quarter of 6% and which was indeed driven by a temporary lower production output due to the validation of the new production room and the impact is difficult to quantify as we have some spill over in the fourth quarter and some loss.

And we have relatively good visibility on the for the fourth quarter and we expect a good quarter. So year to date, we're at 15, 9%.

Karin de Jong: For the year, we expect North America to have a high single-digit to low double-digit % of growth. Market drivers are strong, and we are well positioned. We are very positive about the midterm perspectives of this overall market.

And for the year, we expect North America to have a high single digit to low double digit percentage of growth market drivers are strong and we are well positioned. So we are very positive about the midterm perspective of this overall market.

[Analyst 1]: Okay, the $25 million revenue capacity, when will that be operational?

Okay, and then the 25 million revenue capacity when will that be yeah.

Operational yeah. So decided is operational so we can use that site for our production. So we can benefit from that capacity expansion.

Karin de Jong: Yeah, the site is operational, so we can use that site for our production. We can benefit from that capacity expansion. Currently, we're already benefiting from that.

Currently we're already benefiting from that.

Rafael Padilla: Yes, adding here, Frank.

Yes, and I didn't hear Frank that's clear. Thank you, yes, and I think just quickly I didn't hear Frank on the capacity expansion that kind of explains very well. This helps us to bridge for the next year and remember that in 2007. The <unk> project that was explained also doing assembly is coming online. So this new capacity that you were referring will help us for 2026.

[Analyst 1]: Okay, that's clear. Thank you.

Rafael Padilla: Yes, I think quickly adding here, Frank, on this capacity expansion that Karin explained very well, this helps us to bridge for the next year. Remember that in 2027, the E2 project that was explained also during our CMD is coming online. This new capacity that you were referring to will help us for 2026.

[Analyst 1]: Clear. Thank you.

Clear. Thank you. Thank you.

Rafael Padilla: Thank you.

Operator: Thank you very much. Our next question comes from Michael Haider from Baden-Berg. Please go ahead.

Thank you very much. Our next question comes from Michael Haidar from Bam there.

Please go ahead.

[Analyst 3]: Yes, hi and good morning. I have only a few more general questions left because on the quarter, your answers have already been given. Could you maybe elaborate a bit on your acquisitions going forward? I mean, do you have more in the pipeline for 2025 or certainly probably 2026? Maybe can you remind me of the additional CapEx because you said your target is 3.5% of revenues excluding additional CapEx. What is the target for 2025 and 2026? The last question is on your net debt/EBITDA ratio. What do you expect here for 2025 and in the midterm?

Yes, hi, and good morning.

I have only a few more general questions left because on the quarter.

That's already been given but could you maybe elaborate a bit.

On.

Your acquisitions going forward I mean, do you have more in the pipeline for 'twenty five or certainly probably.

26.

And then maybe can you reminds me of the additional capex, because we set a target for enough set of revenues.

Excluding additional capex. So what is the target for 'twenty five 'twenty six.

And then last question is on your net debt to EBITDA ratio.

What do you expect here for 2025 and in the midterm.

Operator: Yeah, good point.

Yeah.

[Analyst 3]: Thanks for the moment.

Operator: Yeah.

[Analyst 3]: Good morning.

Yeah, Good morning, Michael and maybe starting with your M&A question. So we have a disciplined approach to M&A and and we have a full pipeline of targets, which means that we are targeting all regions. We executed well this year, we saw a tick.

Operator: Michael, maybe starting with your M&A question. We have a disciplined approach to M&A, and we have a full pipeline of targets, which means that we have targets in all regions. We executed well this year. We've done eight, as you've read in the press release. We're well on track, but we see more opportunities in the different regions. That is EMEA as well as North America, but also Latin America. We're also looking at APEC, as we announced during our capital markets day. We are very positive about our M&A momentum currently, but of course, with a disciplined approach. On timing on deals, that's very difficult to estimate. We do midsize deals, usually family-owned companies. From that perspective, it's difficult to give any guidance on our M&A, but we are progressing well, and we anticipate doing more deals this year and next year.

You've read in the press release.

We are well on track, but we see opportunities more opportunities in the different region. So that is a EMEA as well as in North America, but also in Latin America. We're also looking at APAC as we announced during our capital markets day. So we are positive about.

Our M&A momentum currently but of course, we did this disciplined approach on timing on deals that's very difficult to estimate we do use usually family owned companies. So from that perspective, it's difficult to give any guidance on.

On our M&A, but we are progressing well and we anticipate doing more deals this year and next year.

Operator: Maybe on your second question on CapEx. Indeed, maintenance CapEx is 3.5% of sales. That's our estimation. Also for the midterm, if we look at expansion CapEx, so related to our new project, we announced a couple. I think the big one is the expansion we have in Wichita. That is a big one that we announced, and that's $39 million, which will be in the next coming year. Part of this this year, most of that will be spent next year, and we go live in 2027. Then we have an expansion in Las Vegas, which we also announced, which is $29 million, which will mostly be next year when we spend that money. For the EMEA region, we also announced an expansion for a sterile facility in the Netherlands, which is €15 million. Those are on top of the 3.5%.

So maybe on your second question on Capex. So indeed maintenance Capex is three 5% of sales that's our estimation.

So for the mid term if we look at expansion Capex related to our new projects, we announced a couple I think the big one is the expansion we have in Wichita.

And so that is a big one that we announced and that's 35, a 39 million sorry.

Which will be in the next coming year. So part of this this year most of that will be spent next year and we go live in 2027, and then we have an expansion in Vegas, which we also announced.

<unk>, which is $29 million, which will mostly be a next year when we spend that money and then for the EMEA region. We also announced an expansion for sterile facility in the Netherlands, which is $15 million a year or so dose are on top of the three 5%.

Operator: On our net debt, maybe the last question on our net debt every day. At the end of last year, we were at 1.4 times. We have strong cash generation, as you know. It depends a bit on the timing of certain payments and also the closing of the acquisition we have announced. We expect to move a bit more towards the two, but it stays well below our boundaries and our internal threshold of 2.8 times. We have sufficient room to do additional acquisitions this year, but also the coming years. Thank you very much for your questions, Michael.

On a net debt last may.

The last question and learn adapt and the DSO. We are at the end of last year, We went up one four times.

We have strong cash generation as you know depends a bit on the timing of certain payments and also the closing of the acquisition. We have announced so we expect to move a bit more towards the two but it's stays well be beach below our boundaries and our internal threshold of two eight times. So we have.

Sufficient room to do additional acquisitions.

This year, but also to coming years.

Thank you very much for your questions Michael many thanks.

[Analyst 3]: Many thanks. Thanks.

Okay.

Operator: Our next question comes from Osama Tariq from ABN AMRO, ODDO BHF. Please go ahead.

Our next question comes from some of that is from avian umbro, although the H F. Please go ahead.

[Analyst 2]: Hi, good morning team. Thank you for the opportunity. I just had one question because others were already answered. Could you just comment on the market share per region, specifically in North America? Has there been any market share loss because of production halt or anything like that? Thank you.

Hi, Good morning team. Thank you for the opportunity I just had one question because others were already answered.

Could you just comment on the market share per region.

Especially in North America so.

Has there been any market share loss because of a production halt or or anything like that.

Thank you.

Rafael Padilla: Yes, thank you, Osama, and good morning. On the market share in the US, if you remember, we have three segments in the US. That's the brands and essentials, around 30%. We are now number two behind Medisca, which is a market leader there. Think about 15% to 18% of the total market on B&E, it comes to us. When we go to the compounding services, we have two verticals. We have the health and wellness. That's Anaseos with the Tampa facility, the new one, of course. We have Vegas 503B that we're expanding. We have Carefirst in the Northeast, and now we have UCP. As we were explaining, we have a nationwide platform. For this segment, it is a rapidly growing segment. Here we're also number two behind Belmar. It's a great company. We could say it's around 10% to 12% of the market.

Thank you summer and good morning on the market share in the U S. If you remember we have three segments in the U S. That's Brendan essentials around 3%. We are now number two behind the mid <unk>, which is a market leader there think about 15, 18%.

The total market <unk>. It's comes to US then we'll go to the compounding services will have two verticals of the health and wellness, that's <unk> with the Tampa facility. The new one scores we have begun some type of <unk> that were expanding we have her first in the in the northeast and that will have to UCP. So as we were explaining rafa.

The platform now for this segment is a rapidly growing segment and here. We're also number two behind the Belmar.

It's a great company and we could say is around the 10% to 12% of the market and then go into the hospital outsourcing Thats FSS, where we have the Wichita of course, the garnering one and anyone that we're building across the street, that's Youtube and they will have of course, a Boston and here, we are as well number two behind the Cuba.

Rafael Padilla: Going to the hospital outsourcing, that's FSS, where we have Wichita, of course, the current one, and the new one that we're building across the street, that's E2. We have, of course, Boston. Here we are as well number two behind QuVa. Here, revenues would account as well for 15% of the total market. When you refer to Q3, the slowdown in the production was due to, as Karin de Jong explained very well, validation of the new capacity that we have added, that was wall to wall. We have not lost any single market share. The opposite, as you have seen, we have been growing also during the quarter, 6%. That's a combination, of course, of current customers and new customers. We onboard new customers year on year. We also have completed nice deals with some GPOs as well. You can see them back at our LinkedIn accounts.

Here revenues would account as well for 15% of the total market and when you refer to the Q3 the slowdown in the prediction that was due to a scan explained that very well validation of the new capacity that we have added that was what will we have not lost any single market share. The opposite as you have seen we have been growing also during the.

Quarter, 6% and that's a combination of course of current customers and new customers, we onboard new customers year on year. We also have a co.

Believe it nice deals with some <unk> as well and you can see them back in the at our Linkedin accounts and of course, we need to understand that when we have these capacity added wall to wall. There is no production on hold notable slowdown because you do it in phases you need to validate this.

Rafael Padilla: We need to understand that when we have this capacity added wall to wall, there is no production on hold, not at all. It isn't a slowdown because you do it in phases. You need to validate this new production area. This means that there is output, however, at a lower pace. Again, I repeat myself, we have had a nice growth of 6%, totalizing a 15.9% year to date. The beauty is that, of course, FSS, the hospital outsourcing, we have contracts. We have visibility and Q4 will be strong and we'll have, again, a record year. Thanks a lot, Osama, for your question. If you want us to comment on the market share on the other two regions, Latin America and EMEA, also super happy to do so.

New production area, so meaning that there is output however, at a lower base and again I repeat myself will have had a nice growth of 6% totalizing $15 nine year to date and the beauty is that of course emphasis the wholesale at sourcing we have contracts. So we have visibility in Q4 will be strong and we.

We'll have again a record year, so things a lot some of for your question and if you want us to comment on the market share on the two regions Latam and EMEA also super happy to do so.

[Analyst 2]: No, thank you. I think that will be sufficient. It was more with regards to North America. Thank you.

No. Thank you I think that will be sufficient there was more with regards to North America. Thank you things allowed to summer.

Rafael Padilla: Thanks a lot, Osama.

Operator: It appears that was our last question. I will now hand the word back over to Ignacio Artola for any closing remarks.

It appears that was our last question.

I will now have to work back over to Ignacio for any closing remarks.

Ignacio Artola: Thank you very much for your participation today. I will remain at your disposal should you have any further questions. Thank you very much and goodbye.

Well. Thank you very much for your participation today I.

I will remain at your disposal should you have any further questions.

Thank you very much and goodbye.

Yes.

Yes.

Yeah.