Q4 2025 Keenova Therapeutics PLC Earnings Call

March 31, 2026

Operator: Good day, and thank you for standing by. Welcome to Keenova's Q4 2025 Earnings Announcement Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Gerard Muschner. Sir, please go ahead.

Operator: Good day, and thank you for standing by. Welcome to Keenova's Q4 2025 Earnings Announcement Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Gerard Meuchner. Sir, please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one (＊11) on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your speaker today, Gerard Muchner. Sir, please go ahead. Thank you, Operator, and welcome, everyone.

Gerard Meuchner: Thank you, operator, and welcome everyone. Before we begin, let me remind you that we will make forward-looking statements on this call, and actual results may differ materially from those expressed or implied in these statements. These statements are made as of today, 31 March 2026, and we undertake no obligation to update them except as required by law. Please refer to our SEC filings for a detailed discussion of the risks and uncertainties affecting our business.

Speaker #1: Before we begin, let me remind you that we will make forward-looking statements on this call, and actual results may differ materially from those expressed or implied in these statements.

Speaker #1: These statements are made as of today, March 31, 2026, and we undertake no obligation to update them except as required by law. Please refer to our SEC filings for a detailed discussion of the risks and uncertainties affecting our business.

Speaker #1: We will also reference certain non-GAAP financial measures on this call. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and in the investor presentation available on the investor relations section of our website at keenova.com.

Gerard Meuchner: We will also reference certain non-GAAP financial measures on this call. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and in the investor presentation available on the investor relations section of our website at keenova.com. We use our website as a channel to distribute important and time-critical company information, and you should look to the investor relations page of the website for this information.

Gerard Meuchner: We will also reference certain non-GAAP financial measures on this call. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and in the investor presentation available on the Investor Relations section of our website at keenova.com. We use our website as a channel to distribute important and time-critical company information, and you should look to the Investor Relations page of the website for this information.

Speaker #1: We use our website as a channel to distribute important and time-critical company information. You should look to the investor relations page of the website for this information.

Speaker #1: Additionally, as we disclosed in a Form 8-K earlier this morning, because the company requires additional time to complete our 2025 Form 10-K as a result of the complexity of the accounting related to the business combination and the spinoff, we will file for an automatic 15-day extension.

Gerard Meuchner: Additionally, as we disclosed in a Form 8-K earlier this morning, because the company requires additional time to complete our 2025 Form 10-K as a result of the complexity of the accounting related to the business combination and the spin-off, we will file for an automatic 15-day extension. As such, we intend to file the Form 10-K by April 15. Please see our Form 8-K for further details. As noted in our earnings release on July 31, 2025, the company completed its merger with Endo, and on November 10, 2025, it completed the separation of Par Health. The unaudited 2025 financial results presented on today's call and in our presentation reflect Keenova's continuing operations. Such financial results are subject to completion of the company's financial closing procedures. Actual results may differ materially from these unaudited financial results.

Speaker #1: As such, we intend to file the Form 10-K by April 15. Please see our Form 8-K for further details. As noted in our earnings release on July 31, 2025, the company completed its merger with Endo, and on November 10, 2025, it completed the separation of Par Health.

Speaker #1: The unaudited 2025 financial results presented on today's call and in our presentation reflect Canova's continuing operations. Such financial results are subject to completion of the company's financial closing procedures.

Speaker #1: Actual results may differ materially from these unaudited financial results. 2024 results presented today were prepared on a pro forma basis, as if the merger and separation had each occurred at the beginning of the respective periods presented.

Gerard Meuchner: 2024 results presented today were prepared on a pro forma basis as if the merger and separation had each occurred at the beginning of the respective periods presented. Pro forma combined results for 2024 also exclude the results of the company's former Therakos business, which was sold in 2024. Pro forma combined results for 2024 and 2025 also exclude Endo's International Pharmaceuticals business, which was sold in 2025. Joining me on today's call are Sigurdur Olafsson, our President and Chief Executive Officer, and Christiana Stamoulis, our President and Chief Financial Officer. I'll now turn the call over to Siggi.

Speaker #1: Pro forma combined results for 2024 also exclude the results of the company's former Theracos business, which was sold in 2024, and pro forma combined results for 2025—excuse me—for 2024 and 2025 also exclude Endo's international pharmaceuticals business, which was sold in 2025.

Speaker #1: Joining me on today's call are Sigurdur Olafsson, our president and chief executive officer, and Kristiana Stamulis, our president and chief financial officer. I'll now turn the call over to Sigurdur.

Speaker #2: Thanks, Gerard, and good morning, everyone. 2025 was a defining year for Canova, and I'm incredibly proud of what the team has accomplished. We completed the merger of Mallinckrodt and Endo in July, successfully separated Par Health in November, and launched Canova as a branded therapeutics company focused on an area of high unmet need.

Sigurdur Olafsson: Thanks, Gerard, and good morning, everyone. 2025 was a defining year for Keenova, and I'm incredibly proud of what the team has accomplished. We completed the merger of Mallinckrodt and Endo in July, successfully separated Par Health in November, and launched Keenova as a branded therapeutics company focused on area of high unmet need. Looking ahead, we are preparing to pursue a listing of Keenova's ordinary shares on the New York Stock Exchange in the second half of 2026, subject to board approval and other customary conditions. Throughout this period of transformation, our teams have maintained strong execution, and our results reflect that focus. We delivered Q4 performance ahead of our expectations, closing the year with a double-digit top-line growth and meaningful adjusted EBITDA expansion in the quarter.

Siggi Olafsson: Thanks, Gerard, and good morning, everyone. 2025 was a defining year for Keenova, and I'm incredibly proud of what the team has accomplished. We completed the merger of Mallinckrodt and Endo in July, successfully separated Par Health in November, and launched Keenova as a branded therapeutics company focused on area of high unmet need. Looking ahead, we are preparing to pursue a listing of Keenova's ordinary shares on the New York Stock Exchange in the H2 of 2026, subject to board approval and other customary conditions. Throughout this period of transformation, our teams have maintained strong execution, and our results reflect that focus. We delivered Q4 performance ahead of our expectations, closing the year with a double-digit top-line growth and meaningful adjusted EBITDA expansion in the quarter.

Speaker #2: Looking ahead, we are preparing to pursue a listing of Canova's ordinary shares on the New York Stock Exchange in the second half of 2026, subject to board approval and other customary conditions.

Speaker #2: Throughout this period of transformation, our teams have maintained strong execution, and our results reflect that focus. We delivered fourth-quarter performance ahead of our expectations, closing the year with double-digit top-line growth and meaningful adjusted EBITDA expansion in the quarter.

Speaker #2: For the full year, we generated $1.93 billion of net sales and $609 million in adjusted EBITDA, reflecting continued momentum across our core franchises, partly offset by the impact of merger-related compensation costs.

Sigurdur Olafsson: For the full year, we generated $1.93 billion of net sales and $609 million in adjusted EBITDA, reflecting a continued momentum across our core franchises, partly offset by the impact of merger-related compensation costs. We also realized $13 million in pre-tax synergies in Q4 of 2025 and remain on track to achieve $150 million of annual pre-tax run rate synergies by the third anniversary of the merger. Acthar Gel was once again a standout, delivering its second consecutive year of double-digit growth with 39% full-year net sales growth. Xiaflex grew mid-single digits for both quarters and full year, and INOmax demonstrated resilience globally despite US competitive pressures. Consistent with our focus on investing in organic growth, we are pleased to report clinical trial progress for Xiaflex in additional indications.

Siggi Olafsson: For the full year, we generated $1.93 billion of net sales and $609 million in adjusted EBITDA, reflecting a continued momentum across our core franchises, partly offset by the impact of merger-related compensation costs. We also realized $13 million in pre-tax synergies in Q4 of 2025 and remain on track to achieve $150 million of annual pre-tax run rate synergies by the third anniversary of the merger. Acthar Gel was once again a standout, delivering its second consecutive year of double-digit growth with 39% full-year net sales growth. Xiaflex grew mid-single digits for both quarters and full year, and INOmax demonstrated resilience globally despite US competitive pressures. Consistent with our focus on investing in organic growth, we are pleased to report clinical trial progress for Xiaflex in additional indications.

Speaker #2: We also realized $13 million in pre-tax entities in the fourth quarter of 2025 and remain on track to achieve $150 million of annual pre-tax run rate entities by the third anniversary of the merger.

Speaker #2: Acta Diel was once again a standout. Delivering its second consecutive year of double-digit growth with 39% full-year net sales growth, Syflex grew mid-single digit for both quarters and full year, and Inomax demonstrated resilience globally despite US competitive pressures.

Speaker #2: Consistent with our focus on investing in organic growth, we are pleased to report clinical trial progress for Syflex in additional indications. Without context, let me turn to our portfolio performance.

Sigurdur Olafsson: With that context, let me turn to our portfolio performance. Turning to slide six, since we officially launched Keenova only a few months ago, I'll spend a moment talking about who we are. Underpinned by our rare disease capabilities, Keenova develops, manufactures, and commercialize a portfolio of branded pharmaceutical products addressing specialty therapeutics areas of significant unmet need. This includes rheumatology, ophthalmology, nephrology, neurology, pulmonology, orthopedics, urology, and neonatal respiratory critical care.

Siggi Olafsson: With that context, let me turn to our portfolio performance. Turning to slide six, since we officially launched Keenova only a few months ago, I'll spend a moment talking about who we are. Underpinned by our rare disease capabilities, Keenova develops, manufactures, and commercialize a portfolio of branded pharmaceutical products addressing specialty therapeutics areas of significant unmet need. This includes rheumatology, ophthalmology, nephrology, neurology, pulmonology, orthopedics, urology, and neonatal respiratory critical care.

Speaker #2: Turning to slide six, since we officially launched Canova only a few months ago, I'll spend a moment talking about who we are. Underpinned by our rare disease capabilities, Canova develops, manufactures, and commercializes a portfolio of branded pharmaceutical products addressing specialty therapeutic areas of significant unmet need.

Speaker #2: These include rheumatology, ophthalmology, nephrology, neurology, pulmonology, orthopedics, urology, and neonatal respiratory critical care. The name Canova reflects two complementary attributes of our company: a keen focus on helping patients receive the care they deserve, and the innovation required to develop our therapeutics.

Sigurdur Olafsson: The name Keenova reflects two complementary attributes of our company: a keen focus on helping patients receive the care they deserve and the innovation required to develop our therapeutics. Our tagline, "Keen to solve, keen to serve," underscores our commitment to solving the challenges our patients face and serving them with integrity. Our diversified portfolio is anchored by two core brands, Acthar Gel and Xiaflex, which were the key drivers behind our growth in 2025.

Siggi Olafsson: The name Keenova reflects two complementary attributes of our company: a keen focus on helping patients receive the care they deserve and the innovation required to develop our therapeutics. Our tagline, "Keen to solve, keen to serve," underscores our commitment to solving the challenges our patients face and serving them with integrity. Our diversified portfolio is anchored by two core brands, Acthar Gel and Xiaflex, which were the key drivers behind our growth in 2025.

Speaker #2: Our tagline, "Keen to Solve, Keen to Serve," underscores our commitment to solving the challenges our patients face and serving them with integrity. Our diversified portfolio is anchored by two core brands.

Speaker #2: Acta Diel and Syflex, which were the key drivers behind our growth in 2025. We are excited to be moving forward as a new company with a new identity, and the strong foundation we have in place—positioned us well for 2026 and beyond.

Sigurdur Olafsson: We are excited to be moving forward as a new company with a new identity and a strong foundation we have in place, position us well for 2026 and beyond. Let's zero in on our pipeline for Xiaflex on slide 7, where we continue to execute against our product development roadmap to expand the addressable market of the franchise and reinforce its long-term growth profile. We were very pleased to report in today's press release that our proof of concept study evaluating Xiaflex for hammertoe met its primary safety endpoint and secondary exploratory efficacy endpoints with top-line data demonstrating a favorable. This achievement enables us to progress the program into phase 3 study, which we expect to start in Q4 2026.

Siggi Olafsson: We are excited to be moving forward as a new company with a new identity and a strong foundation we have in place, position us well for 2026 and beyond. Let's zero in on our pipeline for Xiaflex on slide 7, where we continue to execute against our product development roadmap to expand the addressable market of the franchise and reinforce its long-term growth profile. We were very pleased to report in today's press release that our proof of concept study evaluating Xiaflex for hammertoe met its primary safety endpoint and secondary exploratory efficacy endpoints with top-line data demonstrating a favorable. This achievement enables us to progress the program into phase 3 study, which we expect to start in Q4 2026.

Speaker #2: Let's zero in on our pipelines for Syflex on slide seven, where we continue to execute against our product development roadmap to expand the addressable market of the franchise and reinforce its long-term growth profile.

Speaker #2: We were very pleased to report in today's press release that our proof-of-concept study evaluating Syflex for Hamato met its primary safety endpoint and secondary exploratory efficacy endpoints.

Speaker #2: With top-line data demonstrating a favorable—this achievement enables us to progress with programming to a Phase 3 study, which we expect to start in the fourth quarter of 2026.

Speaker #2: This is a great example of our growth strategy in action. And we see a meaningful opportunity to provide critical treatment for patients diagnosed with this condition, which is one of the most common deformities of the forefoot, according to the National Library of Medicine.

Sigurdur Olafsson: This is a great example of our growth strategy in action, and we see a meaningful opportunity to provide critical treatment for patients diagnosed with this condition, which is one of the most common deformities of the forefoot, according to the National Library of Medicine. We also advanced our clinical program for Xiaflex in plantar fibromatosis. Patient enrollment for the phase 3 study was completed on 5 March. Top-line results from the study are expected in Q3 2026, and we are targeting a regulatory submission in Q4 2026. Separately on the pipeline, we were pleased to receive approval in Japan for both medical device and drug application for INOmax EVOLVE this year. Turning to slide 8, before Christiana discusses our financial results in detail, I'd like to touch on our balance sheet and capital allocation priorities.

Siggi Olafsson: This is a great example of our growth strategy in action, and we see a meaningful opportunity to provide critical treatment for patients diagnosed with this condition, which is one of the most common deformities of the forefoot, according to the National Library of Medicine. We also advanced our clinical program for Xiaflex in plantar fibromatosis. Patient enrollment for the phase 3 study was completed on 5 March. Top-line results from the study are expected in Q3 2026, and we are targeting a regulatory submission in Q4 2026. Separately on the pipeline, we were pleased to receive approval in Japan for both medical device and drug application for INOmax EVOLVE this year. Turning to slide 8, before Christiana discusses our financial results in detail, I'd like to touch on our balance sheet and capital allocation priorities.

Speaker #2: We also advanced our clinical program for Syflex in plantar fibromatosis. Patients enrolled for the phase 3 study were completed on March 5th. Top-line results from the study are expected in the third quarter of 2026, and we are targeting a regulatory submission in the fourth quarter of 2026.

Speaker #2: Separately, on the pipeline, we were pleased to receive approval in Japan for both the medical device and drug application for INOMAX Evolve this year. Turning to slide eight, before Christiana discusses our financial results in detail, I'd like to touch on our balance sheet and capital allocation priorities.

Speaker #2: We exited 2025 with a strong and flexible balance sheet that supports continued investment in driving sustainable growth. At year-end, we had approximately $813 million of cash and cash equivalents and $2.481 billion of total debt outstanding.

Sigurdur Olafsson: We exited 2025 with a strong and flexible balance sheet that supports the continued investment in driving sustainable growth. At year-end, we had approximately $813 million of cash and cash equivalents and $2.481 billion of total debt outstanding, representing a net debt to covenant adjusted EBITDA ratio of approximately 1.98x. As we look toward 2026, our capital allocation priorities are clear. We will invest in organic growth to support commercial execution for Acthar Gel and Xiaflex, and fund targeted R&D to enhance the durability of our portfolio. We will also evaluate value-enhancing portfolio opportunities, exploring bolt-on acquisition that leverage our existing capabilities to add to growth as well as opportunistic divestitures, including a potential sale of our Percocet business.

Siggi Olafsson: We exited 2025 with a strong and flexible balance sheet that supports the continued investment in driving sustainable growth. At year-end, we had approximately $813 million of cash and cash equivalents and $2.481 billion of total debt outstanding, representing a net debt to covenant adjusted EBITDA ratio of approximately 1.98x. As we look toward 2026, our capital allocation priorities are clear. We will invest in organic growth to support commercial execution for Acthar Gel and Xiaflex, and fund targeted R&D to enhance the durability of our portfolio. We will also evaluate value-enhancing portfolio opportunities, exploring bolt-on acquisition that leverage our existing capabilities to add to growth as well as opportunistic divestitures, including a potential sale of our Percocet business.

Speaker #2: Representing a net debt-to-covenant adjusted EBITDA ratio of approximately 1.98 times. As we look toward 2026, our capital allocation priorities are clear. We will invest in organic growth to support commercial execution for Acta Diel and Syflex, and fund targeted R&D to enhance the durability of our portfolio.

Speaker #2: We will also evaluate value-enhancing portfolio opportunities. We are exploring the Bolton acquisition, which leverages our existing capabilities to add to growth, as well as opportunistic divestitures, including a potential sale of our Percocet business.

Speaker #2: We believe the combination of established commercial franchises and targeted pipeline expansion provides a clear path of sustainable revenue growth and market and margin expansion over time.

Sigurdur Olafsson: We believe the combination of established commercial franchises and targeted pipeline expansion provides a clear path of sustainable revenue growth and market and margin expansion over time. All of our capital deployment decision will be made in accordance with a rigorous return framework, prioritizing opportunities that enhance cash flow generation, support durable growth, and create the long-term shareholder value. Thanks to the focus and hard work of our teams, our recent results demonstrate the momentum we are building across the business as we move into 2026. With that, I'll turn the call over to Christiana.

Siggi Olafsson: We believe the combination of established commercial franchises and targeted pipeline expansion provides a clear path of sustainable revenue growth and market and margin expansion over time. All of our capital deployment decision will be made in accordance with a rigorous return framework, prioritizing opportunities that enhance cash flow generation, support durable growth, and create the long-term shareholder value. Thanks to the focus and hard work of our teams, our recent results demonstrate the momentum we are building across the business as we move into 2026. With that, I'll turn the call over to Christiana.

Speaker #2: And all of our capital deployment decisions will be made in accordance with the rigorous return framework, prioritizing opportunities that enhance cash flow generation, support durable growth, and create long-term shareholder value.

Speaker #2: Thanks to the focus on hard work of our teams, our recent results demonstrate the momentum we are building across the business as we move into 2026.

Speaker #2: With that, I'll turn the call over to Christiana.

Speaker #1: Thank you, Sigurdur, and good morning, everyone. Before reviewing our results, I wanted to reiterate that the 2025 financial results presented on this call and in our presentation reflect Canova's continuing operations and the 2024 results were prepared on a pro forma combined historical basis to facilitate a consistent year-over-year comparison.

Christiana Stamoulis: Thank you, Siggi, and good morning, everyone. Before reviewing our results, I wanted to reiterate that the 2025 financial results presented on this call and in our presentation reflect Keenova's continuing operations. The 2024 results were prepared on a pro forma combined historical basis to facilitate a consistent year-over-year comparison. Moving to our Q4 2025 financial results on slide nine. Net sales were $542 million in Q4, including approximately $10 million in license revenue for a New Baker sales milestone. This reflects an increase of 17% compared to the prior year period, driven by momentum in Acthar Gel and growth in Xiaflex. Adjusted EBITDA was $215 million, primarily driven by the growth in Acthar Gel and Xiaflex net sales, and the realization of initial synergies in Q4.

Speaker #1: Moving to our fourth quarter 2025 financial results on slide nine, net sales were $542 million in the fourth quarter, including approximately $10 million in license revenue for Renubeka sales milestone.

Speaker #1: This reflects an increase of 17% compared to the prior year period, driven by momentum in Akta Gel, and growth in Syflex. Adjusted EBITDA was 215 million dollars, primarily driven by the growth in Akta Gel and Syflex net sales, and the realization of initial synergies in Q4.

Speaker #1: Now turning to our full-year results on slide 10, net sales for 2025 were $1.93 billion, an increase of 11% compared to 2024, driven by the growth in Akta and Syflex.

Christiana Stamoulis: Now turning to our full year results on slide 10. Net sales for 2025 were $1.93 billion, an increase of 11% compared to 2024, driven by the growth in Acthar Gel and Xiaflex. Adjusted EBITDA was $609 million. Excluding transaction-related compensation expenses of approximately $123 million, and including the annualized impact of costs transferred to Par Health and synergies realized in Q4, adjusted EBITDA from continuing operations was $732 million, representing a 17% increase compared to 2024, primarily driven by the strength of our core franchises and the impact of realized synergies. Let's now take a look at the key drivers of our performance, starting with Acthar Gel.

Speaker #1: Adjusted EBITDA was $609 million. Excluding transaction-related compensation expenses of approximately $123 million, and including the annualized impact of costs transferred to Park Health and synergies realized in Q4, adjusted EBITDA from continuing operations was $732 million, representing a 17% increase compared to 2024, primarily driven by the strength of our core franchises and the impact of realized synergies.

Speaker #1: Let's now take a look at the key drivers of our performance, starting with Akta Gel. Net sales for Akta Gel in the fourth quarter of 2025 were $206 million, representing an increase of 48% compared to net sales of $139 million in the fourth quarter of 2024.

Christiana Stamoulis: Net sales for Acthar Gel in Q4 2025 were $206 million, representing an increase of 48% compared to net sales of $139 million in Q4 2024. Full year net sales for 2025 were $677 million, representing an increase of 39% compared to net sales of $486 million in 2024. This marks the 8th consecutive quarter of growth for Acthar Gel and the second straight year of double-digit growth. We are seeing robust patient demand for Acthar Gel and continued momentum in uptake of our innovative SelfJect device as a result of our commercial investments and strong execution, which have driven greater category awareness and expansion. In addition, Acthar Gel growth in 2025 reflected a significant benefit from improved patient access.

Speaker #1: Full-year net sales for 2025 were $677 million, representing an increase of 39% compared to net sales of $486 million in 2024. This marks the eighth consecutive quarter of growth for Akta Gel, and the second straight year of double-digit growth.

Speaker #1: We are seeing robust patient demand for Akta Gel and continued momentum in uptake of our innovative self-jack device, as a result of our commercial investments and strong execution, which have driven greater category awareness and expansion.

Speaker #1: In addition, Akta Gel growth in 2025 reflected a significant benefit from improved patient access. While we expect improved access to continue supporting patient demand in 2026, its contribution to Akta Gel's growth rate is expected to moderate.

Christiana Stamoulis: While we expect improved access to continue supporting patient demand in 2026, its contribution to Acthar Gel's growth rate is expected to moderate. Turning to Xiaflex. Net sales for Xiaflex in Q4 2025 were $157 million, an increase of 6% compared to net sales of $148 million in Q4 2024 when the product was owned by Endo. Full-year net sales for 2025 were $546 million, an increase of 6% compared to net sales of $516 million in 2024. Growth was driven by increased pricing and demand stemming from Peyronie's disease. Turning now to an update on our merger-related synergies.

Speaker #1: Turning to Syflex, net sales for Syflex in the fourth quarter of 2025 were $157 million, an increase of 6% compared to net sales of $148 million in the fourth quarter of 2024, when the product was owned by Endo.

Speaker #1: Full-year net sales for 2025 were $546 million, an increase of 6% compared to net sales of $516 million in 2024. Growth was driven by increased pricing and demand stemming from Peronase disease.

Speaker #1: Turning now to an update on our merger-related synergies: As Sigurdur mentioned, we realized $13 million in pre-tax synergies in the fourth quarter of 2025, and we remain on track to deliver the full synergy plan.

Christiana Stamoulis: As Siggi mentioned, we realized $13 million in pre-tax synergies in Q4 of 2025, and we remain on track to deliver the full synergy plan. For the full year 2026, we expect to realize approximately $100 million in pre-tax synergies, and by the end of July 2028, three years post-merger, we expect to achieve $150 million in annual pre-tax run rate synergies. Lastly, let's turn to guidance. For the full year of 2026, we expect net sales for Acthar Gel to grow in the mid-teens. Net sales for Xiaflex to grow in the mid to high single digits. Total net sales of $1.94 to 2 billion and Adjusted EBITDA of $730 to 760 million, which includes the anticipated 2026 merger synergies.

Speaker #1: For the full year 2026, we expect to realize approximately $100 million in pre-tax synergies, and by the end of July 2028, three years post-merger, we expect to achieve $150 million in annual pre-tax run rate synergies.

Speaker #1: Lastly, let's turn to guidance. For the full year of 2026, we expect net sales for Akta Gel to grow in the mid-teens. Net sales for Syflex to grow in the mid to high single digits.

Speaker #1: Total net sales of 1.94 to 2 billion dollars, and adjusted EBITDA of 730 to 760 million dollars, which includes the anticipated 2026 merger synergies.

Speaker #1: We expect that Akta Gel patient demand will again be driven by self-jacked uptake and category awareness expansion, and we expect Syflex demand to be driven by heightened patient awareness.

Christiana Stamoulis: We expect that Acthar Gel patient demand will again be driven by subject update and category awareness expansion, and we expect Xiaflex demand to be driven by heightened patient awareness. Finally, as a result of typical Q1 dynamics and the adverse weather we experienced earlier in the quarter, we expect net sales for Acthar Gel and Xiaflex in Q1 2026 to be the lowest relative to the prior and subsequent quarters. I'll now hand the call back to Siggi for closing remarks.

Speaker #1: Finally, as a result of typical first quarter dynamics and the adverse weather we experienced earlier in the quarter, we expect net sales for Akta Gel and Syflex in the first quarter of 2026 to be the lowest relative to the prior and subsequent quarters.

Speaker #1: I'll now handle the call back to Sigurdur for closing remarks.

Speaker #2: Thank you, Christiana. Our teammates in 2025 give me deep confidence in Keenova's bright future. As we conclude today's call, I want to express my gratitude to our team and their commitment to serving our patient needs.

Sigurdur Olafsson: Thank you, Christiana. Our achievements in 2025 give me deep confidence in Keenova's bright future. As we conclude today's call, I want to express my gratitude to our team and their commitment to serving our patient needs. Their efforts are making our mission a reality, and we see great opportunities ahead for Keenova in 2026. We will now open the call for Q&A.

Siggi Olafsson: Thank you, Christiana. Our achievements in 2025 give me deep confidence in Keenova's bright future. As we conclude today's call, I want to express my gratitude to our team and their commitment to serving our patient needs. Their efforts are making our mission a reality, and we see great opportunities ahead for Keenova in 2026. We will now open the call for Q&A.

Speaker #2: Their efforts are making our mission a reality. And we see a great opportunity ahead for Canova in 2026. We will now open the call for Q&A.

Speaker #3: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. It looks like our first question is gonna come from the line of Matthew Russell with Hudson Bay. Your line is open. Please go ahead.

Speaker #3: One moment while we compile our Q&A roster. And it looks like our first question is going to come from the line of Matthew Russell with Hudson Bay.

Speaker #3: Your line is open. Please go ahead.

Matthew Russell: Hey, Siggi and Christiana. I just had a question about the EBITDA guidance. I think on slide 10, the pro forma EBITDA was $732 million. If we're bridging from $13 million of synergies to $100 million realized in 2026, and if Acthar revenue is growing by $100 million and Xiaflex by $40 million, doesn't that imply something like $900 million of EBITDA? What's the delta there?

Speaker #4: Hey, Sigurdur and Christiana. I just had a question about the EBITDA guidance. I think on slide 10, the pro forma EBITDA was 732 million.

Speaker #4: And if we're bridging from $13 million of synergies to $100 million realized, then $26 million, and if Akta revenue is growing by $100 million and Syflex by $40 million, doesn't that imply something like $900 million of EBITDA?

Speaker #4: What's the delta there?

Speaker #5: So, hi, this is Christiana. Thank you for your question. The number that we are seeing for 2025 reflects annualized synergies from the costs that were transferred to per head.

Christiana Stamoulis: Hi, this is Christiana. Thank you for your question. The number that you are seeing for 2025 reflects annualized synergies from the costs that were transferred to Par Health. In addition to the $13 million actual synergies, you see also the impact of full annualized synergies in the 2025 number. That's why when you compare 2026 to 2025, you see less of growth because 2025 has been pro forma for the annualized synergies.

Speaker #5: And so in addition to the 13 million actual synergies you see also the impact of full annualized synergies in the 2025 number. And that's why when we compare 26 to 25, you see less of growth because 25 has been pro forma for the annualized synergies.

Speaker #4: So 25 has 100 million, does 25 have 100 million add-back for synergies?

Matthew Russell: Has $100 million. Does 25 have $100 million add back for synergies?

Christiana Stamoulis: The 25 total has $68 million in synergies.

Speaker #5: 25 total has $68 million in synergies.

Speaker #4: Okay.

Matthew Russell: Okay.

Speaker #5: On an annualized basis.

Christiana Stamoulis: On an annualized basis.

Speaker #4: Okay. And is there anything offsetting that, so you'll still see an uplift from synergies year over year? I guess, instead of— you'll have $68 million going to $100 million.

Matthew Russell: Okay. You'll still see an uplift from synergies year-over-year, I guess, instead of you have 68 going to 100. What about those deltas on revenue on your big two line items? Are they not flowing through to the bottom line?

Speaker #4: What about those deltas on revenue on your big two line items? Are they not flowing through to the bottom line?

Christiana Stamoulis: They do. The impact that you see from the growth in revenues is partially offset by increased investment in supporting the growth of Acthar, and also preparing for potential additional indications for Xiaflex. This is what you see as an increase in cost offsetting the benefit of the incremental synergies.

Speaker #5: They do. So the impact that you see from the growth in revenues is partially offset by increased investment in supporting the growth of Akta.

Speaker #5: And also preparing for potential additional indications for Syflex. And so this is what you see—an increasing cost offsetting the benefit of the incremental synergies.

Speaker #4: Okay. Thank you.

Matthew Russell: Okay. Thank you.

Speaker #2: Thanks, John.

Sigurdur Olafsson: Thanks, Matt.

Siggi Olafsson: Thanks, Matt.

Speaker #3: Thank you. And I would now like to hand the conference back over to Gerard Muchner for closing remarks.

Operator: Thank you. I would now like to hand the conference back over to Gerard Muschner for closing remarks.

Speaker #6: Thank you, operator. And thanks, Sigurdur and Christiana. And thank you all for joining us today. We look forward to engaging with you in the days and weeks ahead.

Gerard Meuchner: Thank you, operator. Thanks, Siggi and Christiana, and thank you all for joining us today, as we look forward to engaging with you in the days and weeks ahead. If you have any questions, the best way to contact us will be via email, and we will work to get back to you as soon as possible. Thank you.

Speaker #6: If you have any questions, the best way to contact us would be via email, and we will work to get back to you as soon as possible.

Speaker #6: Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

Q4 2025 Keenova Therapeutics PLC Earnings Call

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