Half Year 2026 Roche Holding AG Earnings Call

July 23, 2026

Speaker #1: Operator for today's call. Kindly note that the webinar is being recorded. I'd like to inform you that all participants are in listen-only mode during the call.

Speaker #1: After the presentation, there will be a question-and-answer session. You're invited to send in questions for this throughout the entire session using the Q&A functionality of Zoom.

Speaker #1: In addition to that, you may also raise your virtual hand to address your questions verbally. For participants joining via phone, to raise your hand, your star 9 on your phone's dial pad.

Speaker #1: When you then get selected to ask your questions, please follow the instructions from the phone and press star 6 for your unmuted self. One last remark: if you would like to follow the presented slides on your end as well, please feel free to go to roach.com/investors to download the presentation.

Speaker #1: At this time, it's my pleasure to introduce you to Thomas Schinecker, CEO of Roche Group. Mr. Schinecker will stage as yours.

Speaker #2: Thank you very much, and good morning, and good afternoon, everyone. I'm very much excited to share our half-year 2026 results with you. We again had a strong performance and we truly made significant portfolio progress in the second quarter.

Speaker #2: Now, let me take you through this slide. I think the headline says everything. Cooperating profit growth at plus 10% ahead of sales growth at plus 6%.

Speaker #2: Again, increasing our margin similar to what we have done over the last couple of years. Performance-driven really by both divisions, both pharma and diagnostics.

Speaker #2: Diagnostics without the China impact is growing 6%. And let me just also reframe the impact of the flu season. The flu season had about a 1% or more than 200 million impact on the group results.

Speaker #2: So without that, also we would be growing at 7%. I already mentioned the strong bottom line performance with cooperating profits plus 10%, cooperating margin plus 1.7 points.

Speaker #2: Core EPS plus 9%, very strong performance. We had significant milestones that we have achieved in Q2. We have five US FDA priority reviews in, for example, the for Tecentriq, but also in Gaziva.

Speaker #2: We have made a number of progress in terms of filing. For example, in end-spring thyroid eye disease, so overall extremely good regulatory progress. On the pharma readouts, we had two positive phase three results as well.

Speaker #2: Overall, the phase three success rate in this year is 80%. And with that significantly above the average of the industry. So I think here also we're making very good progress.

Speaker #2: On the business development side, I would highlight two that I'm going to also mention later. One is PathAI. The other one is New York Therapeutics.

Speaker #2: On the diagnostics launches, we've had also significant amount of launches that I'm also going to go through, and I know Matt's going to go through as well.

Speaker #2: We have significant new flow ahead, including phase three readouts for iTopi and Lunsumio and potentially a new NME, Cefixime. So in the pipeline right now, we have three new NMEs that we're going to launch, but with Cefixime could be a fourth one.

Speaker #2: And then some more phase two readouts. So overall, you know, quite a lot of new flow in the second half of '26. But even more, if you then look at '27, '28, '29, we have really huge amounts of new flow coming with really a lot of potentially very big medicines.

Speaker #2: And also a lot of de-risked assets. So we're really, really excited as we look into the next years when it comes to our pipeline.

Speaker #2: Again, let me just highlight the overall number, 6% pharma, 3% diagnostics. I already mentioned the impact of the flu season, and also the healthcare pricing reforms.

Speaker #2: So overall, very good track. Here you can see the sales growth over the last quarters. And we'll continue to see good uptake in also the rest of the year.

Speaker #2: And as we move into the end of the decade and into the next decade, as I've shown to you in previous presentations, we believe that we will continue to have a good momentum.

Speaker #2: And yeah, we feel comfortable with where we are at the moment. Really good growth across the different parts of our portfolio. We have a very diversified portfolio.

Speaker #2: We have in total 16 blockbusters. We're globally number one in diagnostics. We also have very strong market position in many of the areas like hemophilia, ophthalmology, neurology, oncology, et cetera.

Speaker #2: And here you see just some of the news. Babismo, where we continue to see good global growth at 6% and market share gains. There is, of course, the US market, which is only growing low single digit, but where we keep gaining market share.

Speaker #2: Also in the immunology portfolio with Xolia and Gaziva, we have really good progress. And just to point that out, we're still one A, of course, next year is new medicine coming into this portfolio.

Speaker #2: On oncology as well, Fesco conversion ongoing. The HER2 breast cancer franchise will peak in 2026 with a strong tail. Decentriq, we see accelerated growth driven by new indications.

Speaker #2: And Alessenza, we expect flat growth for the full year. Continuing with Polyvi, continued strong first line DLBCL uptake. Columbia driven by second line plus DLBCL.

Speaker #2: And Lunsumio by third line follicular lymphoma. And Levi very strong growth in the first half year double digit. And also in the neurology franchise, we're growing quite well.

Speaker #2: So let me talk a little bit about portfolio progress. And portfolio progress is a combination of our own R&D and also bringing in internal external assets like we've done in the second quarter.

Speaker #2: We've been quite disciplined. When it comes to BD activities, and at the same time, we've built an amazing pipeline in the late stage, but also early stage.

Speaker #2: So we have a very full pipeline. And you know, I think when you look at the deals that we have done, usually we were not the highest bidder when we won the deals.

Speaker #2: So I think this discipline is something that you can count on as we allocate our money that we do it in the right the right way.

Speaker #2: You can see a couple of acquisitions we've done. You see a number of those have already moved into phase three. The latest one is the BTK degrader.

Speaker #2: In hematology, but potentially also in immunology and neurology. Phenobrutinib is BTK inhibitor with a degrader. We see even more reduction of the protein and we believe that this could be a next generation molecule here.

Speaker #2: With a proven mechanism of action. So we feel this was a very good move for us, especially also because of our strength in hematological cancers.

Speaker #2: And also in immunology and neurology. And here usually you know, when I talk to the slide, you have some red boxes. We had no red box in the second quarter, which really also shows that we've had really good pipeline progress.

Speaker #2: And just to take you through here, Gerdestrant we have filing acceptance by the FDA. We have FDA priority review. We expect the launch towards the end of the year.

Speaker #2: NXT007 moved into phase three. This is the next generation of Hem Libra feedback has been very positive so far. It's about 30 times more potent.

Speaker #2: But also very safe. I already talked about the BTK degrader. Divarasep, I know Teresa will cover that. Very good data. Also Sevastamab has continued to progress well as well as the HER2.

Speaker #1: For it's about 30 times more potent, but also very safe. I already talked about the BTK degrader. The verosip, I know Teresa will cover that, very good data.

Speaker #2: Tyrosine kinase this is a brain penetrant molecule for HER2 positive breast cancer. Really also addressing one of the biggest unmet needs there is to tackle the brain metastases that are developed in HER2 positive breast cancer.

Speaker #1: Also, sevastamab has continued to progress well as well as the HER2 tyrosine kinase. This is a brain penetrant molecule for HER2 positive breast cancer, really also addressing one of the biggest unmet needs there is to tackle the brain metastases that are developed in HER2 positive breast cancer.

Speaker #2: So also very exciting. And on the obesity side, we've also had interesting data on petrolindate, specifically when it comes to tolerability. Placebo-like tolerability. And we know that on current medicines, most of the patients never go to the highest dose.

Speaker #1: So also very exciting. And on the obesity side, we've also had interesting data on petrolindate, specifically when it comes to tolerability. Placebo-like tolerability, and we know that on current medicines, most of the patients never go to the highest dose.

Speaker #2: They actually end their dose in the mid-range, where you would get to the same kind of weight loss of petrolindate. But we also know in Crescent's have a higher level of side effects.

Speaker #1: They actually end their dose in the mid-range, where you would get to the same kind of weight loss as Petrelindate, but we also know incretins have a higher level of side effects, and this is really a medicine that's extremely tolerable.

Speaker #2: And this is really a medicine that's extremely tolerable. Now, let me go to the diagnostic side and just show you some of the external activities that we've done over the last couple of years.

Speaker #2: And I would like to pick one from the last years. That one is Stratos. The sequencing by expansion technology, which we have acquired in 2020, which is really the basis for the Xelios sequencing.

Speaker #1: Now, let me go to the diagnostic side and just show you some of the external activities that we've done over the last couple of years.

Speaker #1: And I would like to pick one from the last years. That one is Stratos, the sequencing by expansion technology, which we have acquired in 2020, which is really the basis for the Xelios sequencing.

Speaker #2: And I've always promised that we will deliver. And we did deliver on the sequencing. With really a differentiated product. And now Matt will go through that.

Speaker #1: And I've always promised that we will deliver, and we did deliver. On the sequencing, we've really differentiated product, and now Matt will go through that.

Speaker #2: In addition, we've done two additional acquisitions in more of the oncology space. One is Saga Diagnostics for ultrasensitive minimal residual disease testing. You know the market cap of some of the companies out there that are working in the space.

Speaker #1: In addition, we've done two additional acquisitions in more of the oncology space. One is SAGA Diagnostics for ultrasensitive minimal residual disease testing. You know, the market cap of some of the companies out there that are working in the space, they're really interesting thing about this is not only the really ultra-high sensitivities, but you actually sequence the cancer and we have Xelios.

Speaker #2: They're really interesting thing about this is not only the really ultra high sensitivities, but you actually sequence the cancer. And we have Xelios. And then you monitor by specific primers and you do it on digital PCR, which is highly cost-effective and we have a digital PCR system.

Speaker #1: And then you monitor by specific primers and you do it on digital PCR, which is highly cost-effective and we have a digital PCR system.

Speaker #2: So we are extremely well positioned here to really scale this on a global level much better than some of the other players. On PathAI, this is really AI-driven diagnostics.

Speaker #1: So we are extremely well positioned here to really scale this on a global level much better than some of the other players. On PathAI, this is really AI-driven diagnostics.

Speaker #2: AI-powered diagnostics specifically in the pathology lab, reading the slides and really improving the diagnostics. And with that also improving the treatment and I know Matt will talk about that as well.

Speaker #1: AI-powered diagnostics, specifically in the pathology lab—reading the slides and really improving the diagnostics. And with that, also improving the treatment. And I know Matt will talk about that as well.

Speaker #2: So really excited about the progress. And this is just a beautiful slide. Three major launches. Each of them even for pharma terms would be a blockbuster.

Speaker #1: So, really excited about the progress. And this is just a beautiful slide—three major launches. Each of them, even for pharma terms, would be a blockbuster.

Speaker #2: Really differentiated when it comes to mass spec for sure and sequencing. And if you look at the industry, you know, at times maybe you have a company having one of such launches, but we have had three in such a close period of time.

Speaker #1: Really differentiated when it comes to mass spec for sure and sequencing. And if you look at the industry, you know, at times maybe you have a company having one of such launches, but we have had three in such a close period of time.

Speaker #2: It just shows you how productive our R&D is. As well as adding new assays. And I just picked two out of here. One is the Alexis Pitao 217 for Alzheimer's disease, where we have a significant head start versus our other major competitors.

Speaker #1: It just shows you how productive our R&D is, as well as adding new assays. I just picked two out of here. One is the Elecsys pTau217 for Alzheimer's disease, where we have a significant head start versus our other major competitors.

Speaker #2: Out there. So really excited. That especially in combination with Trontinumab and you have seen some data just lately that we presented in London on Trontinumab, which continues to impress.

Speaker #1: Out there. So, really excited, especially in combination with Trontinumab. You have seen some data just lately that we presented in London on Trontinumab, which continues to impress.

Speaker #2: And then Alexis interfering gamma release assay for tuberculosis. This is detecting latent tuberculosis about 25% of the patients or of people in the world actually have latent tuberculosis.

Speaker #1: And then Alexis interfering gamma release assay for tuberculosis. This is detecting latent tuberculosis, about 25% of the patients or of people in the world actually have latent tuberculosis.

Speaker #2: These are both really great opportunities in the scale of what you have in diagnostics when it comes volume for a test. Now let me finish with the outlook.

Speaker #1: These are both really great opportunities in the scale of what you have in diagnostics when it comes to potential sales volume for a test.

Speaker #2: Mid single digit sales growth currently growing 6%. CoreAPS growth high single digit CoreAPS growth growing 9%. Currently. And we further will increase dividends in Swiss Franks.

Speaker #1: Now let me finish with the outlook. Mid single digit sales growth, currently growing 6%. CoreAPS growth, high single digit CoreAPS growth, growing 9%. Currently.

Speaker #2: So I think we're very well on track. And with that, I hand over to my team. And I want to thank them for all the great work.

Speaker #1: And we will further increase dividends in Swiss francs. So I think we're very well on track. And with that, I hand over to my team, and I want to thank them for all the great work.

Speaker #2: Ellen, Teresa, and Matt. Thank you very much. So over to you, Ellen.

Speaker #3: Yeah, thanks Thomas. Yeah, I can just extend that and say thanks to if you like the whole Roche team. For the achievements that we have had with the fantastic pipeline progress and also the great financial results.

Speaker #1: Alan, Teresa, and Matt, thank you very much. So, over to you, Alan.

Speaker #2: Yes, thanks, Thomas. Yeah, I can just extend that and say thanks to, if you like, the whole ROCHE team. For the achievements that we have had with the fantastic pipeline progress and also the great financial results.

Speaker #3: So let's dig into that. And let's start with the overview. You see the 6% sales growth. 3% in DHAIA as Thomas has said. 6% excluding China.

Speaker #2: So let's dig into that. And let's start with the overview. You see the 6% sales growth. 3% in DHAIA as Thomas has said. 6% excluding China.

Speaker #3: Pharma with 6%. So really doing well. And look at the Swiss Franks, the minus 2% just for the sake of completeness. In US dollars, we would have grown 8%.

Speaker #2: Pharma with 6%, so really doing well. And look at the Swiss francs, the minus 2%—just for the sake of completeness. In US dollars, we would have grown 8%.

Speaker #3: Cooperating profit up 10% as Thomas has outlined as well. Very good cost containment. I will explain that. Cooperating profit to the cornered income. We keep the momentum.

Speaker #2: Cooperating profit is up 10%, as Thomas has outlined as well. Very good cost containment; I will explain that. Cooperating profit to the core net income—we keep the momentum.

Speaker #3: That means the financial result as well as taxes were not in the way. Nevertheless, I can say stabilizing the tax rate in the first half is a little bit of an outlier and I will come to that.

Speaker #2: That means the financial result, as well as taxes, were not in the way. Nevertheless, I can say stabilizing the tax rate in the first half is a little bit of an outlier, and I will come to that.

Speaker #3: And then cornered income to CoreEPS. Well, the momentum slows a little bit with the plus 9%. But these are just the outstanding results from Sugai as you know, we own 60%.

Speaker #2: And then core net income to CoreEPS, well, that's for momentum slows a little bit with the plus 9%, but these are just the outstanding results from Sugai as you know, we own 60%, so we have to take 40% from the performance away.

Speaker #3: So we have to take 40% from the performance away. So I think that brings the CoreEPS to the plus 9%. IFS net income, I will explain, plus 6% still here a couple of impairments in there.

Speaker #2: So I think that brings the Core EPS to plus 9%. IFRS net income, I will explain, is plus 6%. There are still a couple of impairments in there.

Speaker #3: And then the operating free cash flow. Plus 21%. Plus 2% in Swiss Franks. Let me outline this. So happy with that number. And then the free cash flow with plus 58% and plus 26% in Swiss Franks.

Speaker #2: And then the operating free cash flow: plus 21%, plus 2% in Swiss francs. Let me outline this. So happy with that number. And then the free cash flow with plus 58%, and plus 26% in Swiss francs.

Speaker #3: This is a timing effect as well. Here we had some tax payments or we didn't have the tax payments in the first half that we will have in the second half.

Speaker #2: This is a timing effect as well. Here, we had some tax payments, or rather, we didn't have the tax payments in the first half that we will have in the second half.

Speaker #3: Good with that. Let's go through the sales growth. And you see really on one hand, the 6% in CER, you see that the currency effect which is a minus 8 percentage points with Springs us to the minus 2% in Swiss Franks.

Speaker #2: Good, with that, let's go through the sales growth. And you see really on one hand, the 6% in CER. You see that the currency effect, which is minus 8 percentage points, brings us to minus 2% in Swiss francs.

Speaker #3: Let me talk about the plus 6% at CER. On one hand, you see pharma excluding LOE. You see the LOE with a minus 244 came in a little bit better than we all expected.

Speaker #2: Let me talk about the plus 6% at CER. On one hand, you see pharma excluding LOE, you see the LOE with a minus 244 came in a little bit better than we all expected.

Speaker #3: It's also a reason why we updated our outlook for the full year or our additional performance for information for the year. And said we expect to lose roughly 600 million due to loss of exclusivities.

Speaker #2: It's also a reason why we updated our outlook for the full year or our additional performance for information for the year. And said we expect to lose roughly 600 million due to loss of exclusivities.

Speaker #3: So a lower number than we had at the beginning of the year when you put the two together, you get to plus 6% in CER.

Speaker #3: Diagnostics plus 6% excluding China, minus 15% in China as well. And then you really put it together and you get to the plus 3% that were mentioned before.

Speaker #2: So, a lower number than we had at the beginning of the year. When you put the two together, you get to plus 6% in CER.

Speaker #2: Diagnostics plus 6% excluding China, minus 15% in China as well. And then you really put it together and you get to the plus 3% that were mentioned before.

Speaker #3: When we go through the P&L, sales is clear. Other revenue. Other revenue is increasing by 258 million. There are a couple of elements in it.

Speaker #2: When we go through the P&L, sales is clear. Other revenue—other revenue is increasing by $258 million. There are a couple of elements in it.

Speaker #3: When I start with pharma, I think on one hand there's a settlement on a royalty claim which is in here roughly 70 million. We have in here an expected milestone income from Sugai for Von Dio.

Speaker #2: When I start with Pharma, I think, on one hand, there's a settlement on a royalty claim, which is in here—roughly €70 million. We have in here an expected milestone income from SUGAi for Vondyo.

Speaker #3: That's one element here. And then we have a cross licensing settlement in pharma of 126 million. When you put everything together, you get roughly pretty well to the 258.

Speaker #2: That's one element here. And then we have a cross licensing settlement in pharma of 126 million. When you put everything together, you get roughly pretty well to the 258.

Speaker #3: When you look at the cost of sales, and the cost of sales both divisions have grown their cost by 5%, which is quite an achievement because overall volume has grown by 8%.

Speaker #2: When you look at the cost of sales, and the cost of sales both divisions have grown their costs by 5%, which is quite an achievement because overall volume has grown by 8%.

Speaker #3: Pharma by 9% volume growth and diagnosis by 5% volume growth. And when you look really at the two divisions, the cost of sales in pharma were driven by higher profit share expenses based on higher sales of solar and royalty expenses from the increased sales of our crevice and FRISTI.

Speaker #2: Pharma by 9% volume growth and diagnosis by 5% volume growth. And when you look really at the two divisions, the cost of sales in pharma were driven by higher profit share expenses based on higher sales of solar and royalty expenses from the increased sales of our crevice and FRISTI.

Speaker #3: In the cost of sales in diagnostics were driven by the increase installed instruments. The manufacturing rent up of the new launches. And then certainly the US tariffs of roughly 43 million.

Speaker #2: The cost of sales in Diagnostics was driven by the increase in stalled instruments, the manufacturing ramp-up of the new launches, and then certainly US tariffs of roughly $43 million.

Speaker #3: Look, when we look at R&D, R&D plus 1%, I think really here a lot of cost discipline. In the game here, but certainly I think also let's say quite some investment in key therapeutic areas like oncology, CVI, and neurology.

Speaker #2: Look, when we look at R&D, R&D plus 1%, I think really here a lot of cost discipline. In the game here, but certainly I think also let's say quite some investment in key therapeutic areas like oncology, CVI, and neurology.

Speaker #3: SG&A has increased by 3%. And let me on one hand say really in pharma, we had an increase in M&D. So we really put money behind our products in marketing and distribution.

Speaker #2: SG&A has increased by 3%. And let me, on one hand, say really in Pharma, we had an increase in M&D, so we really put money behind our products in marketing and distribution.

Speaker #3: Admin was really, really flagged as even a small saving here. So I think very disciplined approach here as well. And then other operating income and expenses.

Speaker #2: Admin was really, really flagged as even a small saving here. So I think a very disciplined approach here as well. And then other operating income and expenses.

Speaker #3: Here really a lower income from product disposals compared to last year. Let me make an additional comment about other revenue. I think really when you the moment, other revenue normally represents roughly 3% of our sales.

Speaker #2: Here really a lower income from product disposal compared to last year. Let me make an additional comment about other revenue. I think really when you look really a little bit at our history and where we stand at the moment, other revenue normally represents roughly 3% of our sales.

Speaker #3: I think certainly now with the Von Dio element coming in for the next couple of years, we expect that ratio to grow to 5% until the end of that decade.

Speaker #2: I think certainly now, with the Vondio element coming in for the next couple of years, we expect that ratio to grow to 5% until the end of the decade.

Speaker #3: Good. I think, I hope well explained how we get from 6% sales growth to 10% cooperating profit growth. So when you look at the margins itself, I think that looks fine.

Speaker #2: Good. I think, I hope well explained how we get from 6% sales growth to 10% cooperating profit margins itself, I think that looks fine.

Speaker #3: I think even in Swiss Franks, I think we're able to increase the margin. So as you can see, margin has increased by 1.7 percentage points in constant currencies.

Speaker #2: I think even in Swiss francs, I think we're able to increase the margin. So as you can see, margin has increased by 1.7 percentage points in constant currencies.

Speaker #3: And that was driven by strong performance in both divisions. Pharma increasing by 2 percentage points and DHAIA by 0.6 percentage points. Let me outline here that both divisions benefited from the further centralization of SG&A, especially on the legal side under corporate.

Speaker #2: And that was driven by strong performance in both divisions. Pharma increased by 2 percentage points, and DIA by 0.6 percentage points. Let me outline here that both divisions benefited from the further centralization of SG&A, especially on the legal side under Corporate.

Speaker #3: That represented a benefit for pharma of 105 million in the first half. Benefit. And diagnostics for 24 million. In CER, less cost compared to half year 2025.

Speaker #2: That represented a benefit for Pharma of €105 million in the first half—benefit—and Diagnostics of €24 million, in CER, less costs compared to half year 2025.

Speaker #3: What does that mean? I'm certainly well on the way out of the fact that we have said basically it's 300 million for the full year that we're going to shift.

Speaker #3: I'm not going away from that number. It could be a little bit lower, but we will see a little bit of a ramp up of that effect in the second half.

Speaker #2: What does that mean? I'm certainly well on the way out of the fact that we have said, basically, it's 300 million for the full year that we're going to shift.

Speaker #2: I'm not moving away from that number. It could be a little bit lower, but we will see a little bit of a ramp-up of that effect in the second half.

Speaker #3: Coined financial results. Coined financial results improvement of 42 million and surprisingly in Swiss Franks as well as in CER. So the numbers are equal.

Speaker #2: Coined financial results. Coined financial results improvement of 42 million and surprisingly in Swiss francs as well as in CER. So the numbers are equal.

Speaker #3: And you look at the equity securities, I think that's a nice improvement here. For the Roche venture fund. Net interest income, we had lower cash.

Speaker #2: And you look at the equity securities, I think that's a nice improvement here. For the Roche venture fund, net interest income, we had lower cash, so a little bit less compared to last year.

Speaker #3: So a little bit less compared to last year. Interest expenses certainly US dollar helps here with plus 43. And then in other we have the increase in losses from currency results.

Speaker #2: Interest expenses – certainly, the US dollar helps here with plus 43. And then in 'Other,' we have the increase in losses from currency results and other effects.

Speaker #3: And other effects. Core tax rate. Well, first of all, I think really it's 's great that it came in at 17.5%. You see just a very slight increase compared to half year 2025.

Speaker #2: Core tax rate. Well, first of all, I think really it's great that it came in at 17.5%. You see just a very slight increase compared to half year 2025.

Speaker #3: Let me say here it's a timing effect. The timing effect that we benefited from came up late. So very clearly there will be an increased tax rate in the second half.

Speaker #2: Let me say here, it's a timing effect. The timing effects that we benefited from came up late. So, very clearly, there will be an increased tax rate in the second half.

Speaker #3: And just to give you additional information here, I'm pretty convinced we will get to around 20%, perhaps a little bit lower for the full year, for the full year nevertheless.

Speaker #2: And just to give you additional information here, I'm pretty convinced we will get to around 20%, perhaps a little bit lower, for the full year—nevertheless, for the full year.

Speaker #3: Core EPS. When you look at the core EPS and at the bridge, and you see here the 9.3% which represents the rounded 9% for the core EPS growth we've talked about already.

Speaker #2: Core EPS. When you look at the core EPS and at the bridge, and you see here the 9.3% which represents the rounded 9% for the core EPS growth we've talked about already, you see operations is the major driver here.

Speaker #3: You see operations is the major driver here. Then the product disposals and disposal of subsidiaries as mentioned before. It decrease of 104 million. The financial income and expense really positive with 42 million.

Speaker #2: Then the product disposals and disposal of subsidiaries as mentioned before, it decreased of 104 million. The financial income and expense really positive with 42 million.

Speaker #3: Then the tax rate was, which was pretty much stable. And then all other effects once again Sugai with an effect of minus 1.6 percentage points.

Speaker #2: Then the tax rate was pretty much stable. And then all other effects, once again, Sugai, with an effect of minus 1.6 percentage points.

Speaker #3: So really the overperformance if you like from Sugai when you take it out and that's what we do in the core EPS where we take the 40% out that we don't own, then you get to this effect.

Speaker #2: So really the overperformance if you like from Sugai when you take it out and that's what we do in the core EPS where we take the 40% out that we don't own, then you get to this effect.

Speaker #3: Non-core. And the IFRS income. Yeah, you see really core operating profit up 10%, minus 1% in Swiss Franks. And then the IFRS income up by plus 6%, minus 6% in Swiss Franks.

Speaker #2: Non-core and the IFRS income. Yeah, you see really core operating profit up 10%, minus 1% in Swiss francs. And then the IFRS income up by plus 6%, minus 6% in Swiss francs.

Speaker #3: And what are the drivers? A little bit less restructuring charges compared to half year 2025. The major difference are the impairments here. Let me outline that we have an explanation for the impairments in note nine intangible assets in the interim consolidated financial statements on page 65 where we really go through it.

Speaker #2: And what are the drivers? A little bit less restructuring charges compared to half year 2025. The major difference are the impairments here. Let me outline that we have an explanation for the impairments in node nine intangible assets in the interim consolidated financial statements on page 65 where we really go through it.

Speaker #3: Good. When you look at the operating cash flow, I think really a great result here with plus 21%, plus 2% in Swiss Franks when you really take the whole range, yeah, of the bars that you have here on the slide.

Speaker #2: Good. When you look at operating cash flow, I think really a great result here with plus 21%, plus 2% in Swiss francs when you really take the whole range of the bars that you have here on the slide.

Speaker #3: You see really operating profit net of cash adjustment significant increase. Networking capitals is basically effect from payables on the pharma side. I think that will wash out.

Speaker #2: You see really operating profit net of cash adjustments significant increase. Networking capital is basically a fact from payables on the pharma side. I think that will wash out.

Speaker #3: So I think that looks promising. Investments in PP&E flat. Investments in intangible assets a little bit less compared to last year. You remember last year we had Zealand with 1.2 billion cash out.

Speaker #2: So, I think that looks promising. Investments in PP&E were flat. Investments in intangible assets were a little bit less compared to last year. You remember, last year we had Zealand with a CHF 1.2 billion cash out.

Speaker #3: And that leads us to the plus 21%. And then you see the currency effect kicking in, bringing us to the plus 2% in Swiss Franks.

Speaker #2: And that leads us to the plus 21%. Then you see the currency effect kicking in, bringing us to the plus 2% in Swiss francs.

Speaker #3: Good. When we look here at the margins, I think overall a great development. Both divisions contributed to what you see really on the left-hand side of that slide.

Speaker #2: Good. When we look here at the margins, I think overall a great development. Both divisions contributed to what you see really on the left-hand side of that slide.

Speaker #3: And the increase of 21%. So what does that mean for the group net debt development? First of all, you see really that net debt has increased from end of the year 2025 until end of June 2026.

Speaker #2: And the increase of 21%. So what does that mean for the group net debt development? First of all, you see really that net debt has increased from end of the year 2025 until end of June 2026.

Speaker #3: And the increase here is 5.9 billion. Having said this, when you look at gross debt, gross debt is stable. Just to mention this, gross debt is stable.

Speaker #2: And the increase here is $5.9 billion. Having said this, when you look at gross debt, gross debt is stable. Just to mention this, gross debt is stable.

Speaker #3: Year end it was 31.6 billion. This was not on the slide that number. And at half year it was 31.8 billion. So really stable gross debt, which means we have reduced our cash position.

Speaker #2: Year-end, it was $31.6 billion. This number was not on the slide. At half year, it was $31.8 billion. So, really stable gross debt, which means we have reduced our cash position.

Speaker #3: I will come to that on the next slide. When you look really what drove it, I think the operating free cash flow is clear.

Speaker #3: Then we have really taxes and the treasury is minus 2.1 billion. And then certainly the dividend kicks in as always. I think that's the driver.

Speaker #2: I will come to that on the next slide. When you look at what really drove it, I think the operating free cash flow is clear.

Speaker #2: Then we have, really, taxes and the treasury is minus $2.1 billion. And then, certainly, the dividend kicks in as always. I think that's the driver.

Speaker #3: Normally for the net debt increase in the first half that we were work against in the second half. Good balance sheet. I will keep that short.

Speaker #3: Two things to mention. As said, cash and market level securities, I said less cash available. We've paid the dividend. And then the other piece is really the equity.

Speaker #2: Normally for the net debt increase in the first half, that we will work against in the second half. Good balance sheet. I will keep that short.

Speaker #3: The equity goes down, which is a normal phenomenon for Roche because we deduct the dividend payment from the equity and then as the profits come in the second half, we hopefully we will not just hope, we will wash that out and equity will increase.

Speaker #2: Two things to mention. As said, cash and market-level securities—I said less cash available. We've paid the dividend. And then the other piece is really the equity.

Speaker #2: The equity goes down, which is a normal phenomenon for Roche, because we deduct the dividend payment from the equity. And then as the profits come in the second half, we—hopefully, we will—not just hope, we will wash that out and equity will increase.

Speaker #3: Good. Currency. Yeah, interesting. When you really look at half year itself, I've mentioned the currency effects. I think quite a bit. When you look at year to date September, keeping all the currency rates stable at the end of June, we get to minus 5 percentage points.

Speaker #2: Good. Currency. Yeah, interesting. When you really look at half year itself, I've mentioned the currency effects I think quite a bit. When you look at year to date September, keeping all the currency rates stable at the end of June, we get to minus 5 percentage points.

Speaker #3: And when you look at full year for sales cooperating profit and core EPS, we get to minus 4 percentage points, minus 6 percentage points, and minus 6 percentage points, which is exactly the same prediction that we had in Q1.

Speaker #2: And when you look at full year for sales, core operating profit, and core EPS, we get to minus 4 percentage points, minus 6 percentage points, and minus 6 percentage points.

Speaker #3: So the situation is stabilizing a little bit. Let's see what happens. But the volatility is still huge when it comes to currencies. Good. With that, let's go to my last slide, which is the guidance slide.

Speaker #2: Which is exactly the same prediction that we had in Q1. So the situation is stabilizing a little bit. Let's see what happens. But the volatility is still huge when it comes to currencies.

Speaker #3: As said before here, Thomas has made the confirmation already. But let me mention here the LOE impact of roughly 600 million now expected for 2026, which is a reduction to what we had at the beginning of the year 2026.

Speaker #2: Good. With that, let's go to my last slide, which is the guidance slide. As said before here, Thomas has made the confirmation already. But let me mention here the LOE impact of roughly 600 million now expected for 2026, which is a reduction to what we had at the beginning of the year 2026.

Speaker #3: Everything is else is confirmed as we had it at the beginning of the year. And with that, happy to hand over to Teresa.

Speaker #1: Great. Thank you, Alan. So let's jump straight into pharma. So pharma sales as Alan and Thomas both mentioned, grew by 6% at constant exchange rates, reaching 23.6 billion at half year.

Speaker #2: Everything else is confirmed as we had it at the beginning of the year. And with that, happy to hand over to Teresa.

Speaker #1: That's 8% in US dollars and minus 1% in Swiss Franks. All regions delivered growth with international and Japan growing at double digits. You'll notice that the EU also returned to growth after Q1 was impacted by a number of pricing and one-off effects for specific products.

Speaker #1: That's 8% in US dollars and minus 1% in Swiss francs. All regions delivered growth with international and Japan growing at double digits. You'll notice that the EU also returned to growth after Q1 was impacted by a number of pricing and one-off effects for specific products.

Speaker #1: As Alan mentioned, overall pharma volumes were up by 9%. I'm not going to belabor the P&L too much because Alan made most of the comments that I would have made, only to reiterate the core operating profit is up by 10% at constant exchange rates versus that 6% sales increase, with the cup margin of 53%.

Speaker #1: And just to underscore the extreme cost discipline particularly effective cost management in R&D lending to that. So now let's jump right into our individual brands.

Speaker #1: And just to underscore the extreme cost discipline, particularly effective cost management in R&D, lending to that. So now, let's jump right into our individual brands.

Speaker #1: So my usual comment on the graph, I'll absolute values in year over year growth rates here are presented at constant exchange rates. And the first half of the year our top brand, Zoller, Him Libra, Ocrevis, Fezgo, Vabizmo, and Everesti generated roughly 1.4 billion in new sales at constant exchange rates.

Speaker #1: So my usual comment on the graph, I'll note absolute values and year-over-year growth rates here are presented at constant exchange rates. In the first half of the year, our top brands—Zolgensma, Hemlibra, Ocrevus, Vyzulta, Vabysmo, and Evrysdi—generated roughly $1.4 billion in new sales at constant exchange rates.

Speaker #1: I'm going to share the details on all growth dynamics for our key brands on following slides. So let's jump right into oncology. Oncology sales increased by 1% to 7.4 billion Swiss francs.

Speaker #1: I'm going to share the details on all growth dynamics for our key brands on the following slides. So let's jump right into oncology. Oncology sales increased by 1% to 7.4 billion Swiss francs.

Speaker #1: Fezgo continues to deliver strong growth with a global conversion rate now at 54%. You may notice that this is 1% less than we had in Q1.

Speaker #1: And this is the dynamic that we normally see. We added two more countries into the global conversion metrics this quarter, we would expect that that will correct itself over time.

Speaker #1: Vezgo continues to deliver strong growth with a global conversion rate now at 54%. You may notice that this is 1% less than we had in Q1.

Speaker #1: And this is the dynamic that we normally see. We added two more countries into the global conversion metrics this quarter, we would expect that that will correct itself over time.

Speaker #1: As those countries now come fully online. And to reiterate, we are aiming for at least 60% conversion rate to Fezgo at peak. Moving to Cad Sila, we are in line with expectations and we continue to see competitive pressure in the US and the EU.

Speaker #1: As those countries now come fully online. And to reiterate, we are aiming for at least 60% conversion rate to Vezgo at peak. Moving to Cadphila, we are in line with expectations and we continue to see competitive pressure in the US and the EU.

Speaker #1: This is also a good time, I think, to reiterate our HER2 franchise outlook. We do expect the HER2 franchise to peak at around 9 billion and that's 9 billion at 2024 constant exchange rates, just as a reminder.

Speaker #1: In 2026, followed by a steady decline through the end of the decade with a solid tail of around 4 billion, primarily Fezgo, around a billion for Cad Sila, and a bit of Herceptin plus Perjeta.

Speaker #1: In 2026, followed by a steady decline through the end of the decade, with a solid tail of around $4 billion, primarily Vezgo, around $1 billion for Kadcyla, and a bit of Herceptin plus Perjeta.

Speaker #1: We do not foresee a biosimilar for the US for Perjeta before 2028. And then the EU before 2027. Let me also confirm again that we do not see foresee any cliff situation in the HER2 franchise.

Speaker #1: We do not foresee a biosimilar for the US for Perjeta before 2028, and for the EU before 2027. Let me also confirm again that we do not foresee any cliff situation in the HER2 franchise.

Speaker #1: The Itopi launch is ongoing with good momentum and we had an exciting Q2 news flow for Geradefstrant with the Padufa date for Lidera and Adjuvant positive HER2 negative breast cancer.

Speaker #1: The iTopi launch is ongoing with good momentum and we had an exciting Q2 news flow for Jared Defstrant with the PDUFA date for Lidera and Adjuvant positive HER2 negative breast cancer.

Speaker #1: Set for November 30th. To briefly remind everyone, for Avera, the Padufa had already been set for December 18th. Now let's shift gears into lung cancer, starting with Allocenza.

Speaker #1: Set for November 30th. To briefly remind everyone for Avera, the PDUFA had already been set for December 18th. Now let's shift gears into lung cancer, starting with Alicenza.

Speaker #1: As we signaled previously, competitive pressure continues to increase, especially in the EU and the US. And therefore we are, as Thomas mentioned, expecting flat growth through the end of the year.

Speaker #1: As we signaled previously, competitive pressure continues to increase, especially in the EU and the US. And therefore, we are cautious as we look at growth through the end of the year.

Speaker #1: Moving on to Tecentriq, the new indications are driving global growth, especially in Forte and small cell lung cancer. Building on this, we're adding further indications with the successful US approval for Invigor 011 in muscle invasive bladder and have filed atomic in DMMR colon cancer with US and EU regulators.

Speaker #1: I also want to confirm our full year outlook of low single digit growth for Tecentriq. Finally, we're very happy to report the positive outcome of the crescendo one trial of Dvarasib and second line plus KRAS G12C positive non-small cell.

Speaker #1: I also want to confirm our full-year outlook of low single-digit growth for Tecentriq. Finally, we're very happy to report the positive outcome of the CRESCENDO-1 trial of divarasib in second-line plus KRAS G12C-positive non-small cell lung cancer.

Speaker #1: And let's take a look at that in more detail on this slide. So to reiterate, we recently shared the good news of the positive phase three crescendo one trial of Dvarasib and second line plus KRAS G12C positive non-small cell lung cancer.

Speaker #1: And let's take a look at that in more detail on this slide. So, to reiterate, we recently shared the good news of the positive Phase III CRESCENDO-1 trial of Dvarasib in second-line plus KRAS G12C-positive non-small cell lung cancer.

Speaker #1: Importantly, this was a head-to-head study. Against the currently approved G12C inhibitors. And the results clearly show Dvarasib superiority in terms of PFS and OS improvements versus the approved G12C inhibitors.

Speaker #1: Let's also take note that that OS statistical significance was already reached at interim, which is very impressive. The Dvarasib safety profile remained consistent with previous data and was overall manageable.

Speaker #1: The data will be submitted to health authorities and will be presented in an upcoming Congress. So certainly strong results that reinforce our conviction that Dvarasib has best-in-class potential.

Speaker #1: The data will be submitted to health authorities and will be presented at an upcoming congress. These are certainly strong results that reinforce our conviction that Dvarasib has best-in-class potential.

Speaker #1: However, this wasn't the only good news for Dvarasib this quarter at ASCO. We shared the results from the phase two crescendo 170 study and first line non-small cell.

Speaker #1: Here are the combination of Dvarasib plus Pembro achieved strong efficacy results across the PD-L1 positive and negative cohorts. And this bodes well for the ongoing phase three crescendo two study in the same regimen and first line non-small cell.

Speaker #1: However, this wasn't the only good news for Dvarasib this quarter at ASCO. We shared the results from the Phase II CRESCENDO-170 study in first-line non-small cell.

Speaker #1: Here are the combination of Dvarasib plus Pembro achieved strong efficacy results across the PDL1 positive and negative cohorts. And this bodes well for the ongoing phase three crescendo two study in the same regimen and first line non-small cell.

Speaker #1: As you can see on the right side of the slide, we have a broad development program for RAS targeted molecules. This includes Dvarasib and first line second line and Adjuvant non-small cell.

Speaker #1: But also a G12D specific and several pan mutation assets. So we don't only have one single mechanism of action, but we're bringing in potentially best-in-class molecules in different mechanisms, allowing us to think about unique combinations addressing the efficacy concerns as well as tolerability in combinability.

Speaker #1: As you can see on the right side of the slide, we have a broad development program for RAS-targeted molecules. This includes Dvarasib in first-line, second-line, and adjuvant non-small cell.

Speaker #1: But also a G12D specific and several pan-mutation assets. So we don't only have one single mechanism of action, but we're bringing in potentially best-in-class molecules and different mechanisms, allowing us to think about unique combinations addressing the efficacy concerns as well as tolerability in combinability.

Speaker #1: We're extremely excited to see the progress that Dvarasib has already made and there is more to come. So next up, let's move into the hematology franchise.

Speaker #1: The hematology franchise delivered strong growth of 14% at constant exchange rates achieving 4.6 billion Swiss francs in sales. Our key growth driver for the franchise remains Hem Libra.

Speaker #1: The hematology franchise delivered strong growth of 14% at constant exchange rates, achieving CHF 4.6 billion in sales. Our key growth driver for the franchise remains Hemlibra.

Speaker #1: We are seeing impressive continued global growth driven by an increasing adoption in non-inhibitor patients and an increasing penetration amongst older adults. Based on the strong performance so far, we're updating our full year growth outlook to mid single digit from previously low single digit.

Speaker #1: We are seeing impressive continued global growth, driven by increasing adoption in non-inhibitor patients and greater penetration among older adults. Based on the strong performance so far, we're updating our full-year growth outlook to mid single digits, from previously low single digits.

Speaker #1: I should note that this is a conservative projection. Which takes into account increasing headwinds later this year due to upcoming competitor launches. In that context, let me also tease that we're looking forward to sharing more in the in-development Hem Libra auto-injector at Pharmaday in September.

Speaker #1: I should note that this is a conservative projection, which takes into account increasing headwinds later this year due to upcoming competitor launches. In that context, let me also tease that we're looking forward to sharing more on the in-development Hemlibra Autoinjector at Pharmaday in September.

Speaker #1: A little bit of an aside, we did a demo device at the recent ISTH conference in Paris and it was so popular that we literally had to position someone at the booth to prevent people from prying it off the wall.

Speaker #1: A little bit of an aside—we did a demo device at the recent ISTH conference in Paris, and it was so popular that we literally had to position someone at the booth to prevent people from prying it off the wall.

Speaker #1: Because people were so eager to get their hands on it. So we're clearly excited to be able to bring you more information on this program and ultimately to bring it to patients.

Speaker #1: So next up is malignant heme. Palavi keeps on achieving new milestones in first line DLBCL with globally expanding market shares and now over 120,000 patients treated globally.

Speaker #1: So next up is malignant heme. Polivy keeps on achieving new milestones in first-line DLBCL, with globally expanding market share and now over 120,000 patients treated globally.

Speaker #1: That's up from 95,000 patients at Q1 in this setting. For Lansumio, we achieved US filing for the positive Sunmo data of Lansumio plus Palavi and second line plus DLBCL.

Speaker #1: That's up from 95,000 patients at Q1 in this setting. For Lansumio, we achieved US filing for the positive Sunmo data of Lansumio plus Polyvi and second line plus DLBCL.

Speaker #1: And that Padufa date has been set for February 9th. Staying on the subject of second line DLBCL, I wanted to briefly highlight our conviction and the potential for both Lansumio and Columbia in the setting.

Speaker #1: And that PDUFA date has been set for February 9th. Staying on the subject of second line DLBCL, I wanted to briefly highlight our conviction and the potential for both Lansumio and Columbia in the setting.

Speaker #1: Lansumio Sunmo delivers a best-in-class safety profile with significantly less CRS, making it highly preferred by US clinical advisors for outpatient and community oncology settings due to its manageable profile.

Speaker #1: Lansumio Sunmo delivers a best-in-class safety profile, with significantly less CRS, making it highly preferred by US clinical advisors for outpatient and community oncology settings due to its manageable profile.

Speaker #1: Columbia Stargo is supported by proven survival data with mature long-term follow-up in many advisors regard it as curative. It enjoys a two-year plus first mover advantage, XUS, and post-reimbursement is the standard of care.

Speaker #1: Columbia Stargo is supported by proven survival data with mature long-term follow-up and many advisors regard it as curative. It enjoys a two-year plus first mover advantage, XUS, and post-reimbursement is the standard of care.

Speaker #1: So now let's take a look at Gaziva. As I mentioned in our last call, we do see increasing competitive pressure in CLL and follicular lymphoma impacting Gaziva's performance in hematological indications.

Speaker #1: This is essentially masking the ongoing Gaziva launch in immunology. However, we have the first early indicators of the launch in lupus nephritis showing a positive impact on overall Gaziva performance.

Speaker #1: And in fact, we see that Gaziva quarterly growth in countries like the US, Germany, and the UK where lupus nephritis is launched and reimbursed is ahead of the global average.

Speaker #1: And in fact, we see that Gazyva's quarterly growth in countries like the US, Germany, and the UK, where lupus nephritis is launched and reimbursed, is ahead of the global average.

Speaker #1: So more on Gaziva and immunology in the coming slides, but let me repeat, we will show a sales split by therapeutic area in the future as those data sources mature.

Speaker #1: Now let's take a look at the newest addition to our hematology pipeline. We recently announced and have now closed our partnership with Nurix Therapeutics to collaborate on the development of Bexa Verdudeg.

Speaker #1: So more on Gaziva and immunology in the coming slides, but let me repeat, we will show a sales split by therapeutic area in the future as those data sources mature.

Speaker #1: Bexa is a BTK degrader with the best-in-class potential in the BTK targeted therapy space. So including BTK inhibitors. As you know, BTK as a target has been validated for different hematological malignancies, but also in neurology and immunology.

Speaker #1: Bexadeg is a BTK degrader with the best-in-class potential in the BTK targeted therapy space. So including BTK inhibitors. As you know, BTK as a target has been validated for different hematological malignancies, but also in neurology and immunology.

Speaker #1: More on that later. Importantly, Bexa is a BTK degrader and via degradation, all functions of BTK are removed. This is unlike existing BTK inhibitors where some function may remain.

Speaker #1: More on that later. Importantly, bexadeg is a BTK degrader, and via degradation, all functions of BTK are removed. This is unlike existing BTK inhibitors, where some function may remain.

Speaker #1: Additionally, BTK degradation has been shown to overcome BTK inhibitor resistance mutations. Furthermore, Bexa has strong data showing it is highly selective and potent against BTK as well as has the ability to cross the blood-brain barrier.

Speaker #1: Additionally, BTK degradation has been shown to overcome BTK inhibitor resistance mutations. Furthermore, bexadeg has strong data showing it is highly selective and potent against BTK, as well as has the ability to cross the blood-brain barrier.

Speaker #1: Taken all together, we believe that Bexa has the potential to deliver best-in-class efficacy, safety, and tolerability. Our belief in the best-in-class profile is demonstrated by the recently initiated phase three and first line plus CLL, which is running head-to-head versus a Pertrabrutinib.

Speaker #1: Taken altogether, we believe that bexadeg has the potential to deliver best-in-class efficacy, safety, and tolerability. Our belief in the best-in-class profile is demonstrated by the recently initiated phase three and first line plus CLL, which is running head-to-head versus a protobrutinib.

Speaker #1: Speaking of the development program, we have a broad development program in malignant heme, where we're moving at pace together with Nurix. And let me highlight that this includes a basket combination trial where we will explore different combination options in CLL.

Speaker #1: Speaking of the development program, we have a broad development program in malignant heme, where we're moving at pace together with Nurix. Let me highlight that this includes a basket combination trial, where we will explore different combination options in CLL.

Speaker #1: Additionally, we're planning to investigate Bexa's potential in MS and CSU in upcoming phase two trials. In short, a very exciting molecule to be added to the portfolio and we're looking forward to updating you on the progress going forward.

Speaker #1: Additionally, we're planning to investigate bexadeg's potential in MS and CSU in upcoming phase two trials. In short, a very exciting molecule to be added to the portfolio and we're looking forward to updating you on the progress going forward.

Speaker #1: So now let's move to neurology. Our neurology franchise delivered 9% growth at constant exchange rates, reaching 5 billion Swiss francs in sales. Ocrevus global growth remains strong in the subcutaneous formulation known as de novo in the US is the key growth driver.

Speaker #1: So now let's move to neurology. Our neurology franchise delivered 9% growth at constant exchange rates, reaching 5 billion Swiss francs in sales. Ocrevus global growth remains strong, and the subcutaneous formulation known as de novo in the US is the key growth driver.

Speaker #1: We now have roughly 44,000 patients on subcut, which is a significant increase versus the roughly 24,000 patients we shared at Q1. And for the US, we're excited to see that de novo is now the fastest growing anti-CD20 MS brand, underscoring the strong differentiation of being the only anti-CD20 with every six months subcut dosing.

Speaker #1: Underscoring the strong differentiation of being the only anti-CD20 with every six month subcut dosing. Let me also quickly update the outlook. Beginning of the year, we had provided a 2026 growth outlook for the Ocrevus franchise in the high single digit to low double digit range.

Speaker #1: However, we're currently experiencing some competitive dynamics in the anti-CD20 space that are at the upper end of our previous assumptions. So therefore, we now expect to come in at the lower end of that high single digit to low double digit range for the full year growth outlook.

Speaker #1: Let me also quickly update the outlook. Beginning of the year, we had provided a 2026 growth outlook for the Ocrevus franchise in the high single digit to low double digit range.

Speaker #1: However, we're currently experiencing some competitive dynamics in the anti-CD20 space that are at the upper end of our previous assumptions. Therefore, we now expect to come in at the lower end of that high single-digit to low double-digit range for the full-year growth outlook.

Speaker #1: However, this does not change our peak sales assumptions and we continue to be very happy on how we track towards achieving that ambition. As a reminder, our peak sales expectations for the Ocrevus franchise are 9 billion by 2029.

Speaker #1: And this includes 2 billion in incremental sales from Ocrevus subcut. But there will be, of course, some switching from IV to subcut on top.

Speaker #1: And the spirit of teasing Pharmaday topics, we're pleased to see that the development of the on-body injector for the subcut formulation is on track and we're excited to share more on this subject at Pharmaday.

Speaker #1: And this includes 2 billion in incremental sales from Ocrevus subcut. But there will be, of course, some switching from IV to subcut on top.

Speaker #1: And the spirit of teasing pharmaday topics, we're pleased to see that the development of the on-body injector for the subcut formulation is on track and we're excited to share more on this subject at pharmaday.

Speaker #1: Briefly staying with our MS franchise, I'm sure you are eager to hear more on our phenobrutinib filing efforts. Let me just say that we expect to complete US filing in the coming weeks.

Speaker #1: And once we have filing acceptance later in Q3, we will confirm this milestone via a press release as always. And finally, we also shared positive updates on Trontiniumab and Alzheimer's disease at last week's AAIC in London as Thomas mentioned.

Speaker #1: This includes long-term data from the phase one two study, which continues to underline the strong potential for Tronty and the advantages of our brain shuttle technology.

Speaker #1: We're specifically this long-term data excuse me. Confirmed the impressive amyloid clearance speed and depth as well as a strong safety profile for Tronty. Furthermore, we shared the study design of Preventron, our phase three study of Trontiniumab in preclinical AD.

Speaker #1: This includes long-term data from the phase one two study, which continues to underline the strong potential for Tronty and the advantages of our brain shuttle technology.

Speaker #1: We're specifically this long-term data excuse me. Confirmed the impressive amyloid clearance speed and depth, as well as a strong safety profile for Tronty. Furthermore, we shared the study design of Preventron, our phase three study of Trontiniumab in preclinical AD.

Speaker #1: Preventron is enrolling cognitively unimpaired individual at high risk of progression to symptomatic AD and highlights our ambition to maximize the potential impact of Tronty in Alzheimer's.

Speaker #1: Preventron is enrolling cognitively unimpaired individuals at high risk of progression to symptomatic AD, and highlights our ambition to maximize the potential impact of Tronty in Alzheimer's.

Speaker #1: Next up is our immunology franchise. Immunology reached 3.3 billion Swiss francs, growing 8% at constant exchange rate. Swiss Zoller being our key growth driver.

Speaker #1: Next up is our Immunology franchise. Immunology reached 3.3 billion Swiss francs, growing 8% at constant exchange rates, with Swiss Zolair being our key growth driver.

Speaker #1: Staying with Zoller, we have reached yet another significant milestone in food allergy by now more than 130,000 patients have been treated with Zoller for food allergy since launch, a truly impressive number.

Speaker #1: Our 2026 outlook remains unchanged and we expect around 20% growth for Zoller. This includes the expected impact of a first biosimilar entering the market in the second half of the year, which is currently projected for September based on our latest knowledge.

Speaker #1: At Kemmer Sales, declined by 9% at half-year driven by biosimilar impact as expected. And Gaziva has had a lot of positive news flow this quarter, but we'll cover this in greater detail on the next slide.

Speaker #1: At Kemmer Sales declined by 9% at half year driven by biosimilar impact as expected. And Gaziva has had a lot of positive news flow this quarter, but we'll cover this in greater detail on the next slide.

Speaker #1: But before we get there, let me quickly just comment once again on the ongoing launches in lupus nephritis. So as I mentioned on the hematology slide, despite the increased pressure on Gaziva and hematology, we do see strong uptake of the newly launched lupus nephritis indication as I mentioned, we see Gaziva sales growing faster in those three markets where LN is already reimbursed.

Speaker #1: But before we get there, let me quickly just comment once again on the ongoing launches in lupus nephritis. So, as I mentioned on the hematology slide, despite the increased pressure on Gaziva and hematology, we do see strong uptake of the newly launched lupus nephritis indication. As I mentioned, we see Gaziva sales growing faster in those three markets where LN is already reimbursed.

Speaker #1: We see patient shares approaching 10% across those same markets. Underpinned by strong early adoption in the hospital setting, we see a real inflection in particular in the US.

Speaker #1: And in the coming quarters, we expect strong momentum to be driven by three New England Journal publications for SLE, lupus nephritis, and the INS phase three results.

Speaker #1: And in the coming quarters, we expect strong momentum to be driven by three New England Journal publications for SLE, lupus nephritis, and the INS phase three results, two FDA breakthrough therapy designations, and growing lupus nephritis access and inclusion in clinical society guidelines.

Speaker #1: Two FDA breakthrough therapy designations and growing lupus nephritis access and inclusion in clinical society guidelines. Taken together, we are confident in realizing the up to a 2 billion opportunity for Gaziva across all of its immunology, kidney indications.

Speaker #1: And finally, I'd like to mention the upcoming phase three interim readout for cefaxirisin and IgAN, which is expected for later in the year. So now let's take a look at Gaziva in more detail.

Speaker #1: Taken together, we are confident in realizing the up to a 2 billion opportunity for Gaziva across all of its immunology, kidney indications. And finally, I'd like to mention the upcoming phase three interim readout for cefaxerisin and IgAN, which is expected for later in the year.

Speaker #1: Starting with the phase three Majesty study and MN, we recently shared at ERA. Gaziva clearly demonstrated superiority over tacrolimus on complete response as you can see on the graph on the left.

Speaker #1: So now let's take a look at Gaziva in more detail. Starting with the phase three Majesty study and MN, we recently shared at ERA.

Speaker #1: Based on the strong results, we believe in Gaziva's potential to become the first approved treatment for MN and therefore the new standard of care.

Speaker #1: Gaziva clearly demonstrated superiority over tacrolimus on complete response as you can see on the graph on the left. Based on the strong results, we believe in Gaziva's potential to become the first approved treatment for MN and therefore the new standard of care.

Speaker #1: With that in mind, we're happy to report that we received US and EU we achieved US and EU filing in MN and moreover, the FDA granted breakthrough therapy designation and priority review in the syndication with a PDUFA of the 15th of November.

Speaker #1: With that in mind, we're happy to report that we received US and EU we achieved US and EU filing in MN and moreover, the FDA granted breakthrough therapy designation and priority review in this indication with a PDUFA of the 15th of November.

Speaker #1: As you can see, we have now successfully filed all immunology indications in the US and the EU and we are looking forward to regulatory decisions in the second half of this year starting with INS in September.

Speaker #1: The new indications were further fueled Gaziva's uptake in immunology. And we're extremely excited for the impact that it's going to have on patients. So up next, let's take a look at ophthalmology.

Speaker #1: Ophthalmology grew by 6% achieving 2.1 billion in sales but Bismo continues to expand its global market share and position itself as the preferred first line treatment.

Speaker #1: Ophthalmology grew by 6%, achieving $2.1 billion in sales, but Bismo continues to expand its global market share and position itself as the preferred first-line treatment.

Speaker #1: This can clearly be seen for instance by the fact that more than 60% of US patient starts are naive to treatment. I will spend a little bit more time discussing the Bismo's growth outlook on the next slide, but here I also wanted to highlight the positive phase three Poyang readout and the Bismo and myopic parietal neovascularization.

Speaker #1: This can clearly be seen for instance by the fact that more than 60% of US patient starts are naive to treatment. I will spend a little bit more time discussing Vabizmo's growth outlook on the next slide, but here I also wanted to highlight the positive phase three Poyang readout in Vabizmo and myopic choroidal neovascularization.

Speaker #1: This is the potential fourth indication for the Bismo and while a smaller opportunity is highly relevant for patients especially in Asia. We are looking forward to discussing next steps with health authorities and data will be shared in an upcoming medical conference.

Speaker #1: This is the potential fourth indication for Vabizmo and while a smaller opportunity is highly relevant for patients especially in Asia. We are looking forward to discussing next steps with health authorities and data will be shared in an upcoming medical conference.

Speaker #1: Moving on to NSPRing, our IL-6 where we are develop in development for TED, thyroid eye disease. We are excited to not only have achieved US filing but also to have been granted priority review.

Speaker #1: Moving on to NSPRing, our IL-6 where we are in development for TED, thyroid eye disease. We are excited to not only have achieved US filing but also to have been granted priority review.

Speaker #1: This underlines the significant remaining unmet need in TED and NSPRing's potential to provide a much-needed additional treatment option for these patients. We're looking forward to the FDA decision by October 15th.

Speaker #1: This underlines the significant remaining unmet need in TED and NSPRing's potential to provide a much needed additional treatment option for these patients. We're looking forward to the FDA decision by October 15th.

Speaker #1: This leaves us with one more potential new ophthalmology medicine that we plan to file later this year, the Mickey Bart and UME, and we will of course update you once those filings have been completed.

Speaker #1: Now, as promised, let's take a closer look at the Bismo growth. Let me start by confirming that we expect continued global market share gains and growth for the Bismo.

Speaker #1: Now, as promised, let's take a closer look at Vabysmo growth. Let me start by confirming that we expect continued global market share gains and growth for Vabysmo.

Speaker #1: Furthermore, and as briefly mentioned on the previous slide, we see that the Bismo has established itself as the preferred therapy for first line treatment of AMD and DME.

Speaker #1: And this is in large part due to the strong and consistent clinical as well as real world data. This data has shown time and time again that the Bismo delivers strong anatomic outcomes like drying paired with high durability across all of its improved indications.

Speaker #1: Furthermore, and as briefly mentioned on the previous slide, we see that Vabysmo has established itself as the preferred therapy for first-line treatment of AMD and DME.

Speaker #1: And this is in large part due to the strong and consistent clinical as well as real-world data. This data has shown time and time again that Vabysmo delivers strong anatomic outcomes, like drying, paired with high durability across all of its approved indications.

Speaker #1: And the survey data you see on the left supports how the Bismo's anatomic outcomes and durability are perceived. The survey comes from ASRS, that's the American Society of Retinal Specialists, and is in the 2026 edition of their preferences and trends survey amongst roughly 1,000 retinal specialists in the US and ex-US.

Speaker #1: And the survey data you see on the left supports how Vabizmo's anatomic outcomes and durability are perceived. The survey comes from ASRS, that's the American Society of Retinal Specialists, and is in the 2026 edition of their preferences and trends survey amongst roughly 1,000 retinal specialists in the US and ex-US.

Speaker #1: So this obviously gives us confidence in the global market share gains and growth, but there are some regional dynamics that need to be considered.

Speaker #1: In the US, we do believe the branded market has now stabilized, though at a lower level than before. We do see this as the new normal and don't expect a full rebound to previous levels, but do expect strong volume growth from here.

Speaker #1: So this obviously gives us confidence in the global market share gains and growth, but there are some regional dynamics that need to be considered.

Speaker #1: In the US, we do believe the branded market has now stabilized, though at a lower level than before. We see this as the new normal and don't expect a full rebound to previous levels, but we do expect strong volume growth from here.

Speaker #1: As the Bismo is perceived as the most efficacious drug, this will drive sales growth and the low single to mid single digit range in the US.

Speaker #1: In the EU, we continue to see strong share expansion across all key markets and the Bismo's strong volume growth is overcompensating for price effects in this region.

Speaker #1: As Vabizmo is perceived as the most efficacious drug, this will drive sales growth and the low single to mid single digit range in the US.

Speaker #1: And in the rest of the world, we see significant untapped potential and are encouraged by strong growth momentum across key markets. In summary, we are expecting low double digit growth globally for the Bismo, driven by ex-US with US growing and the low single to mid single digit range for the year.

Speaker #1: In the EU, we continue to see strong share expansion across all key markets and Vabizmo's strong volume growth is overcompensating for price effects in this region.

Speaker #1: And in the rest of the world, we see significant untapped potential and are encouraged by strong growth momentum across key markets. In summary, we are expecting low double digit growth globally for Vabizmo driven by ex-US with US growing and the low single to mid single digit range for the year.

Speaker #1: Let me also say that we continue that we continue to consider consensus peak sales expectations for the Bismo of around 6 billion as very reasonable and we're confident that we're on track to achieve this number.

Speaker #1: Let me also say that we continue that we continue to consider consensus peak sales expectations for Vabizmo of around 6 billion as very reasonable and we're confident that we're on track to achieve this number.

Speaker #1: So now let's move on to CVRM. The CVRM pipeline is making good progress and following ADA. We hosted an IR call to cover the latest pipeline developments.

Speaker #1: So now let's move on to CVRM. The CVRM pipeline is making good progress, and following ADA, we hosted an IR call to cover the latest pipeline developments.

Speaker #1: So let's just focus on what happened in Q2. On Petrolentide, we presented positive phase two Supreme One dated ADA and shared our phase three go decision.

Speaker #1: The data was well received with a lot of excitement about the placebo-like tolerability profile paired with double digit weight loss that Petrolentide demonstrated. We believe in the potential of Petrolentide as a monotherapy to provide meaningful weight loss at a level desired by many patients.

Speaker #1: So let's just focus on what happened in Q2. On Petrolentide, we presented positive phase two supreme one dated ADA and shared our phase three go decision.

Speaker #1: The data was well received, with a lot of excitement about the placebo-like tolerability profile paired with double-digit weight loss that Petrolentide demonstrated. We believe in the potential of Petrolentide as a monotherapy to provide meaningful weight loss at a level desired by many patients.

Speaker #1: Combined with the exceptional tolerability that doesn't interrupt the daily life of patients and promotes long-term adherence, a critical factor for sustained health outcomes and chronic weight management.

Speaker #1: We continue to think this is going to be a very important option for patients. And together with Zealand, we're looking forward to initiating the phase three in the second half of the year.

Speaker #1: On Enosepatide, which was formerly known as CT388, we presented positive phase two data at ADA. Which I will cover in more detail in the next slide.

Speaker #1: We continue to think this is going to be a very important option for patients. And, together with Zealand, we're looking forward to initiating the Phase 3 in the second half of the year.

Speaker #1: On NSEPETIDE, which was formerly known as CT388, we presented positive phase two data at ADA. Which I will cover in more detail in the next slide.

Speaker #1: The phase three trials Enos one and two for Enosepatide in an obesity are ongoing and we announced plans to initiate phase three trials in glycemic control as well as a CVOT.

Speaker #1: The phase three trials ENITH one and two for NSEPETIDE in an obesity are ongoing and we announced plans to initiate phase three trials in glycemic control as well as a CBOT.

Speaker #1: On CT868, we announced at ADA that we decided to discontinue the development of CT868 and type one diabetes. It's important to note that this decision was entirely unrelated to the safety or tolerability of CT868.

Speaker #1: We did have positive phase two results, but ultimately we believe we have better options in our portfolio to address the unmet needs for patients with type one diabetes.

Speaker #1: For example, based on the latest data, we believe that Enosepatide may have best in disease potential for glycemic control. We look forward to sharing the details of our plans and type one diabetes at a later stage.

Speaker #1: We did have positive phase two results, but ultimately we believe we have better options in our portfolio to address the unmet needs for patients with type one diabetes.

Speaker #1: For example, based on the latest data, we believe that NSEPEPTIDE may have best-in-disease potential for glycemic control. We look forward to sharing the details of our plans in type 1 diabetes at a later stage.

Speaker #1: There is a lot of no slow for the remaining of the year in particular phase two results for Enosepatide and type and obesity with type two.

Speaker #1: Phase two CT3, sorry, phase two CT996 results in obesity are oral therapy. The phase two Supreme Two results for Petrolentide and obesity with type two and finally the phase two Jiminda results for as movers are plus trazepatide in obesity.

Speaker #1: There is a lot of no slow for the remaining of the year in particular phase two results for NSEPETIDE in type in obesity with type two.

Speaker #1: Phase two CT3, sorry, phase two CT996 results in obesity are oral therapy. The phase two supreme two results for Petrolentide in obesity with type two and finally the phase two Jiminda results for as movers are plus trazepatide in obesity.

Speaker #1: We plan to provide updates for all of these at Pharma Day, upcoming conferences, or by top line releases when the data is available. And let me quickly finish this slide by commenting on further pipeline progress expected to happen in the second half.

Speaker #1: We plan to provide updates for all of these at Pharma Day, upcoming conferences, or by topline releases when the data is available. And let me quickly finish this slide by commenting on further pipeline progress expected to happen in the second half.

Speaker #1: The phase two studies synergy for Enosepatide plus Petrolentide and obesity is about to be initiated. This study is designed in a comprehensive way so that we can find the ideal combination of the two for the best efficacy and tolerability profile.

Speaker #1: The phase two studies synergy for NSEPETIDE plus Petrolentide in obesity is about to be initiated. This study is designed in a comprehensive way so that we can find the ideal combination of the two for the best efficacy and tolerability profile.

Speaker #1: And that is of course key to and that of course is key to select the best fixed dose combination for the potential phase three.

Speaker #1: The decision for phase three initiation for Petrolentide monotherapy and obesity has been formally taken in Q2 and that study is expected to start in the second half.

Speaker #1: And that is of course key to and that of course is key to select the best fixed dose combination for the potential phase three.

Speaker #1: And finally, the phase three initiation for CT996 remains scheduled for half two following the phase two readout, which is soon to come. Now, as I mentioned, let's take a closer look at the Enosepatide phase two data presented at ADA.

Speaker #1: The decision for phase three initiation for Petrolentide monotherapy in obesity has been formally taken in Q2 and that study is expected to start in the second half.

Speaker #1: And finally, the phase three initiation for CT996 remains scheduled for the second half, following the phase two readout, which is soon to come. Now, as I mentioned, let's take a closer look at the NSEPETIDE phase two data presented at ADA.

Speaker #1: I do believe it is worth in reinforcing some of the key insights from the phase two results that were shared at ADA and in particular highlight why we're so excited about Enosepatide, which we believe has a clearly best in class weight loss profile.

Speaker #1: I do believe it is worth reinforcing some of the key insights from the phase two results that were shared at ADA, and in particular, highlight why we're so excited about NSEPETIDE, which we believe has a clearly best-in-class weight loss profile.

Speaker #1: First, on the left side of the slide, you see the weight loss curves. So clearly the 24 milligram dose did not reach a weight loss plateau at 48 weeks.

Speaker #1: Therefore, we see the potential for additional weight loss with longer treatment. That's something we hoped to see in the phase three, which includes longer treatment durations.

Speaker #1: First, on the left side of the slide, you see the weight loss curves. So clearly the 24 milligram dose did not reach a weight loss plateau at 48 weeks.

Speaker #1: We have also shared it the ADA IR call that we will explore dose levels higher than 24 milligrams as we've not seen a tolerability ceiling at the highest dose tested.

Speaker #1: Therefore, we see the potential for additional weight loss with longer treatment. That's something we hoped to see in the phase 3, which includes longer treatment durations.

Speaker #1: We have also shared in the ADA IR call that we will explore dose levels higher than 24 milligrams, as we have not seen a tolerability ceiling at the highest dose tested.

Speaker #1: Secondly, the right hand of the graph shows what percentage of patients achieved what weight loss at a certain dose. What you can see here is that the highest 24 meg dose tested, 48% of patients achieved greater than a 20% weight loss.

Speaker #1: 38% of patients achieved greater than a 25% weight loss. And 26% of patients even achieved a greater than 30% weight loss. Based on these results, we believe that Enosepatide has clearly the potential to develop weight loss approaching the efficacy seen with triple G drugs in development.

Speaker #1: Thirty-eight percent of patients achieved greater than 25% weight loss, and 26% of patients even achieved greater than 30% weight loss. Based on these results, we believe that NSEPETIDE clearly has the potential to develop weight loss efficacy approaching that seen with triple G drugs in development.

Speaker #1: And with the tolerability profile, and line with that of the dual GLP-1 GIP agonists. So overall, we are very excited to further develop Enosepatide as a monotherapy, but let me also highlight that upcoming phase two combination trial of Enosepatide and Petrolentide.

Speaker #1: And with the tolerability profile in line with that of the dual GLP-1/GIP agonists. So overall, we are very excited to further develop NSEPETIDE as a monotherapy. But let me also highlight the upcoming Phase 2 combination trial of NSEPETIDE and Petrolentide.

Speaker #1: Combining these two molecules with their respective strong clinical profiles and the potential to address unmet needs for patients beyond just the scope of monotherapy.

Speaker #1: In particular, for patients needing greater weight loss and/or better glycemic control, with better tolerability. We have strong conviction in the combined potential of these already individually strong assets.

Speaker #1: Combining these two molecules with their respective strong clinical profiles and the potential to address unmet needs for patients beyond just the scope of monotherapy.

Speaker #1: Hence the name of the trial, Zynergy. We expect to initiate that trial in the second half of the year. And now onto my last slide for the day.

Speaker #1: So as usual, let me close with the 2026 pharma key news flow. All of the updates here I have already covered on previous slide, but there is one piece that I want to highlight.

Speaker #1: So far this year, we have achieved five FDA priority reviews so far, which is really impressive. And that of course helps the speeding up regulatory processes and bringing medicines faster to patients.

Speaker #1: Just to reiterate, these five priority reviews were granted for Giardestrin in the adjuvant early breast cancer. Ensbring and TED, Tecentriq, Atomic, and DMMR and MSH colon cancer, Gaziva in INS, and most recently Gaziva in MN.

Speaker #1: Just to reiterate, these five priority reviews were granted for Gerdestrin in the adjuvant early breast cancer, Ensbring in TED, Tecentriq atomic in DMMR and MSH colon cancer, Gazyva in INS, and most recently Gazyva in MN.

Speaker #1: So with that, I am happy to hand it over to Matt. Thanks a lot, Theresa. And congratulations for the strong half of the year.

Speaker #1: So with that, good morning, good afternoon, everyone. It's my pleasure to present the half year, 2026 diagnostics division results. So as you heard from Thomas and Alan, with sales of 6.7 billion Swiss francs, the diagnostics division grew sales at 3% or plus 228 million Swiss francs compared to last year at constant exchange rates.

Speaker #1: So with that, I am happy to hand it over to Matt. Thanks a lot, Theresa. And congratulations for the strong half of the year.

Speaker #1: So with that, good morning, good afternoon, everyone. It's my pleasure to present the half year 2026 diagnostics division results. So as you heard from Thomas and Alan, with sales of 6.7 billion Swiss francs, the diagnostics division grew sales at 3% or plus 228 million Swiss francs compared to last year at constant exchange rates.

Speaker #1: Now, this growth was achieved despite the ongoing impact of the healthcare pricing reform in China, which continued to impact sales in 2026, excluding the effect of the healthcare pricing reform in China sales would have grown at plus 6%.

Speaker #1: Now, this growth was achieved despite the ongoing impact of the healthcare pricing reform in China, which continued to impact sales in 2026. Excluding the effect of the healthcare price reform in China, ...

Speaker #1: Additionally, as you heard from Alan and Thomas, we had the impact of the weak respiratory season in the northern hemisphere, which impacted diagnostic sales by an additional 50 million.

Speaker #1: Sales would have grown at plus 6%. Additionally, as you heard from Alan and Thomas, we had the impact of the weak respiratory season in the northern hemisphere, which impacted diagnostic sales by an additional 50 million.

Speaker #1: So with area. So sales in our largest franchise, the Core Lab, increased at 4%. This has impacted by the previously mentioned policy impact in China, excluding this effect the Core Lab grew at 8%.

Speaker #1: So with that, let me go through the results by customer area. So sales in our largest franchise, the Core Lab, increased at 4%. This has impacted by the previously mentioned policy impact in China, excluding this effect the Core Lab grew at 8%.

Speaker #1: Sales in the molecular lab grew at plus 3% with and I would call it the strong performance of our transplant business, which grew 18%.

Speaker #1: However, again, this was offset by the previously mentioned mild respiratory season, which lowered the overall testing volumes. And sales in the near patient care business area or customer, excuse me, decreased at minus 5%.

Speaker #1: Sales in the molecular lab grew at plus 3%, with, I would call it, the strong performance of our transplant business, which grew 18%.

Speaker #1: This was driven by lower Cobas Li at sales, again due to the weak respiratory season, but offset partially by growth in our blood glucose monitoring business at plus 3% following competitive wins.

Speaker #1: This was driven by lower COBAS LIAD sales, again due to the weak respiratory season, but offset partially by growth in our blood glucose monitoring business at plus 3%, following competitive wins.

Speaker #1: Sales in our pathology lab grew strongly at plus 11%, mainly driven by advanced staining growth of plus 7. And companion diagnostics growth of plus 24.

Speaker #1: So now allow me to take you through the performance at a regional level. So we saw growth in North America at plus 8%. In EMEA, the business grew at plus 3%.

Speaker #1: So now, allow me to take you through the performance at a regional level. We saw growth in North America at plus 8%. In EMEA, the business grew at plus 3%.

Speaker #1: LatAm grew at plus 10%. Now in APAC, the business declined at minus 5. As previously mentioned, sales growth was impacted by the healthcare pricing reform in China and as a result of this, China sales declined at minus 15, excluding China, APAC sales grew at plus 6%.

Speaker #1: LATAM grew at plus 10%. Now in APAC, the business declined at minus 5. As previously mentioned, sales growth was impacted by the healthcare pricing reform in China and as a result of this, China sales declined at minus 15, excluding China, APAC sales grew at plus 6%.

Speaker #1: Now, as you heard in our full year and Q1 earnings calls, we expect a lessened impact of the China pricing reforms in 2026. And I would call out again that our ambition this year is to grow sales at mid single digits.

Speaker #1: Looking forward into 2027, our ambition will be to return to mid to high single digit sales growth. Now, I'd like to take you through our P&L line by line.

Speaker #1: And Alan went through the cost of sales in some detail. And as you mentioned, cost of sales increased 5% first driven by the impact of the pricing reform in China, the cost of manufacturing ramp up for our new launches, as well as the tariff impacts in the United States.

Speaker #1: And Alan went through the cost of sales in some detail. And as you mentioned, cost of sales increased 5%, driven by the impact of the pricing reform in China, the cost of manufacturing ramp-up for our new launches, as well as the tariff impacts in the United States.

Speaker #1: R&D increased at 3% as a result of the increased spend on our innovative systems, including our Xelios sequencing solution and our I601 mass spec.

Speaker #1: R&D increased by 3% as a result of the increased spend on our innovative systems, including our Xelios sequencing solution and our I601 mass spec.

Speaker #1: SG&A increased at 3% due to higher distribution costs associated with increased sales volume and also commercial investment into our new launches. As a result, core operating profit on sales of 6.7 billion Swiss francs was 1.2 billion Swiss francs, increasing at plus 6% at constant exchange.

Speaker #1: SG&A increased at 3% due to higher distribution costs associated with increased sales volume. And also commercial investment into our new launches. As a result, core operating profit on sales of 6.7 billion Swiss francs was 1.2 billion Swiss francs, increasing at plus 6% at constant exchange.

Speaker #1: As you heard earlier, this was also benefited by 126 million Swiss francs in extraordinary income from patent licensing. Now, I would like to reiterate our ambition from previous calls that while our consistent ambition for diagnostics is to grow profit faster than sales, our ambition for full year 2026 is to keep our margin broadly stable at constant exchange versus the 14.4% from full year 2025 as we absorb the impact of the healthcare pricing reform in China and the US tariffs.

Speaker #1: As you heard earlier, this was also benefited by CHF 126 million in extraordinary income from patent licensing. Now, I would like to reiterate our ambition from previous calls: while our consistent ambition for Diagnostics is to grow profit faster than sales, our ambition for full year 2026 is to keep our margin broadly stable at constant exchange versus the 14.4% from full year 2025, as we absorb the impact of the healthcare pricing reform in China and the US tariffs.

Speaker #1: I would also like to mention that in 2026, we again anticipate a negative impact from currency headwinds on our COP margin. Now, I would like to turn to some of the exciting developments in the diagnostics pipeline.

Speaker #1: I would also like to mention that in 2026, we again anticipate a negative impact or we, excuse me, we have a negative impact from currency headwinds on our cot margin.

Speaker #1: Specifically, I'd like to start with the launch of our Xelios one sequencing solution, which I'm delighted to report that we launched on June 29th.

Speaker #1: Now, I would like to turn to some of the exciting developments in the diagnostics pipeline. Specifically, I'd like to start with the launch of our Xelios one sequencing solution, which I'm delighted to report that we launched on June 29th.

Speaker #1: Thomas talked a little bit about our history of M&A. Specifically, the acquisition of Stratos and how it relates to our development here. I would also frame the discussion by saying that our next review the next generation sequencing market at around 7.3 billion USD.

Speaker #1: Thomas talked a little bit about our history of M&A. Specifically, the acquisition of Stratos and how it relates to our development here. I would also frame the discussion by saying that our next review, the next generation sequencing market at around 7.3 billion USD.

Speaker #1: This was assessed in 2025 and we expect to see it continue to grow, especially as new clinical applications become part of routine use. I would also like to briefly highlight the performance we achieved with our Xelios sequencing solution as you can see on the left-hand side of this page.

Speaker #1: And why we feel the solution is so highly differentiated. We have two run modes. Utilizing our SBX sequencing by expansion chemistry and our SBX duplex, as well as our SBX simplex workflow.

Speaker #1: As you can see on the left-hand side of this page, and why we feel the solution is so highly differentiated. We have two run modes utilizing our SBX sequencing by expansion chemistry: our SBX duplex, as well as our SBX simplex workflow.

Speaker #1: Now, this enables us to achieve flexibility, speed, and scalability that is unprecedented. And deliver what we feel is a very I'd say differentiated cost effectiveness.

Speaker #1: Now, this enables us to achieve flexibility, speed, and scalability that is unprecedented, and deliver what we feel is a very, I’d say, differentiated cost effectiveness.

Speaker #1: Now, as we previously demonstrated with the technology, we are able to achieve 1.8 terabases of SBX duplex output in four hours of sequencing time.

Speaker #1: And this is equivalent to around 16 whole human genomes. I would mention that this is also combined with a high level of accuracy with the Q score of 38, which translates to approximately 99.98% accuracy.

Speaker #1: Additionally, the simplex mode offers an ultra high throughput and also longer reads of up to 1,500 bases. Which can enable isoform detection and structural variance combined with our differentiated combined with our differentiated price position.

Speaker #1: And here I would call out that in one four-hour run, we're able to generate 40 billion reads with an average of 175 base pairs, which is an unprecedented amount of data output.

Speaker #1: And here I would call out that in one four-hour run, we're able to generate 40 billion reads. With an average of 175 base pairs, which is an unprecedented amount of data output.

Speaker #1: I would note that the interest from the market has been consistently high since we unveiled SBX at AGBT in 2025. And our Xelios one solution is positioned to set a new standard of care and next generation sequencing for a broad array of applications.

Speaker #1: So and Thomas mentioned this a bit earlier, how Xelios really fits in across our entire vision for oncology. Our strategy in oncology with diagnostics is to build an end-to-end portfolio that follows the entire patient journey via a combination of internal innovation and purposeful M&A, this is everything from early cancer detection precise diagnosis of cancer therapy selection as well as disease monitoring.

Speaker #1: So, and Thomas mentioned this a bit earlier—how Xelios really fits in oncology. Our strategy in oncology with diagnostics is to build an end-to-end portfolio that follows the entire patient journey via a combination of internal innovation and purposeful M&A. This is everything from early cancer detection, precise diagnosis of cancer, therapy selection, as well as disease monitoring.

Speaker #1: So here I'm delighted to discuss the definitive merger agreement we've signed with PathAI earlier this month, which completes our offering in primary and advanced staining for cancer diagnosis.

Speaker #1: PathAI is the leading provider of digital pathology image management systems, which enables pathologists to augment their existing IC or primary, which is H&E staining workflows with AI-powered digital algorithms and tools to automate slide analysis and provide deeper patient insight.

Speaker #1: PathAI is the leading provider of digital pathology image management systems, which enables pathologists to augment their existing IHC or primary, which is H&E staining workflows with AI-powered digital algorithms and tools to automate slide analysis and provide deeper patient insight.

Speaker #1: The combination of AI-powered digital pathology image management combined with clinical decision support algorithms will integrate seamlessly with our Ventana solutions and augment our PHC business to increase our leadership position in companion diagnostics.

Speaker #1: This solution is wholly complementary to our Ventana business. And by putting these two solutions together, we're going to be even more competitive in this key area of our business.

Speaker #1: In addition, for the pharma for the pharma side, this will enhance our pharma business with AI solutions that support our clinical trial work as well as enable the introduction of new biomarkers.

Speaker #1: In addition, for the pharma side, this will enhance our pharma business with AI solutions that support our clinical trial work, as well as enable the introduction of new biomarkers.

Speaker #1: So Theresa mentioned briefly AAIC and now I'd like to switch to our assay pipeline specifically the launch of our CMARC or excuse me, the CMARC we received for our Lexus P-TAU 217 test, which we received on May 12th.

Speaker #1: So Teresa mentioned briefly AAIC and now I'd like to switch to our assay pipeline specifically the launch of our CMARC or excuse me, the CMARC we received for our Lexus P-TAU 217 test, which we received on May 12th.

Speaker #1: So Alzheimer's disease is the leading cause of dementia worldwide. We anticipate that it will affect over 80 million people by 2030. However, diagnosis takes approximately three years after symptom onset.

Speaker #1: So, Alzheimer's disease is the leading cause of dementia worldwide. We anticipate that it will affect over 80 million people by 2030. However, diagnosis takes approximately three years after symptom onset.

Speaker #1: And routine diagnostic methods are either invasive or difficult to access. They involve imaging methodologies that are not readily available and lead to this significant backlog and patient diagnosis.

Speaker #1: And routine diagnostic methods are either invasive or difficult to access. They involve imaging methodologies that are not readily available and lead to the significant backlog and patient diagnosis.

Speaker #1: So with our Lexus 217 assay, we provide a rapid minimally invasive alternative via a simple routine blood draw. This test is the first blood-based biomarker intended to rule in or rule out Alzheimer's in primary and secondary care settings as a result of the study that we performed.

Speaker #1: So, with our LEXUS 217 assay, we provide a rapid, minimally invasive alternative via a simple routine blood draw. This test is the first blood-based biomarker intended to rule in or rule out Alzheimer's in primary and secondary care settings, as a result of the study that we performed.

Speaker #1: Our assay demonstrated high diagnostic accuracy across healthcare settings and clinical stages and additionally meets the CEOI recommendations for Alzheimer's disease diagnosis. By bringing this test into healthcare systems worldwide, particularly primary care, we will help physicians to identify Alzheimer's disease earlier, which will facilitate timely intervention and reduce and potentially reduce healthcare costs.

Speaker #1: So now I'd like to transition to Leighton tuberculosis. And continue with an update on our Lexus Igra TB test which received CMARC earlier this month.

Speaker #1: So now I'd like to transition to latent tuberculosis and continue with an update on our LEXUS IGRA TB test, which received CE mark earlier this month.

Speaker #1: And why this test is important is around the world approximately 25% of the world's population is estimated to be a carrier of tuberculosis infection.

Speaker #1: And as a consequence, this is one of the world's largest public health challenges. With the Lexus TB, we enable high throughput testing, automated result generation, and a three-tube workflow which is superior versus existing systems that are available while maintaining comparable levels of data performance in the clinical setting.

Speaker #1: And as a consequence, this is one of the world's largest public health challenges. With the Lexus TB, we enable high throughput testing automated result generation and a three-tube workflow which is superior versus existing systems that are available while maintaining comparable levels of data performance in the clinical setting.

Speaker #1: And in the near future, we plan to integrate our COBOS ultra solutions to automate the pre-analytical steps further improving laboratory efficiency for tuberculosis testing and it will also help facilitate our entry into the high throughput segments of the market such as the US.

Speaker #1: And in the near future, we plan to integrate our Cobas Ultra solutions to automate the pre-analytical steps further improving laboratory efficiency for tuberculosis testing and it will also help facilitate our entry into the high throughput segments of the market such as the US.

Speaker #1: This test has the potential to expand global access to latent tuberculosis infection testing and also help advanced progress towards the WHO elimination targets. And I would call out here that we have the broadest install base of immunoassay analyzers anywhere in the world and we will leverage our install base to grow and expand with this test.

Speaker #1: This test has the potential to expand global access to latent tuberculosis infection testing and also help advance progress towards the WHO elimination targets. I would call out here that we have the broadest installed base of immunoassay analyzers anywhere in the world, and we will leverage our installed base to grow and expand with this test.

Speaker #1: So to conclude, I would like to report the progress on our key launch list for the diagnostics division of the 11 launches shown here.

Speaker #1: So, to conclude, I would like to report the progress on our key launch list for the Diagnostics Division. Of the 11 launches shown here—

Speaker #1: We've achieved seven by half year 2026. We're making good progress on those that remain. And I look forward to updating you on this in future calls and with that, I would like to hand it over to Bruno Eschli.

Speaker #1: Thank you very much.

Speaker #2: Thanks, Matt. And let me quickly close here. With the next event, which is scheduled for our investor analyst community, we have Pharma Day coming up at the 28th of September, again as a live event in London.

Speaker #1: Thank you very much.

Speaker #2: Thanks, Matt. And let me quickly close here. With the next event, which is scheduled for investor analyst community, we have Pharma Day coming up at the 28th of September again as a live event in London.

Speaker #2: Similar setup as in previous years and a couple of highlights here to call out. In the morning session, we will again cover our pharma strategy and provide an update on our commercialization efforts.

Speaker #2: We will provide an update on the R&D excellence initiatives on the KPIs. We have shown in recent years and then also have a focus on our cost saving initiatives and reallocation on the investments.

Speaker #2: We will provide an update on the R&D excellence initiatives and the KPIs we have shown in recent years, and then also have a focus on our cost-saving initiatives and reallocation of the investments.

Speaker #2: And then I think a special highlight is we have Arby's Redchef joining on the implication of AI and early drug development. We'll take you through all the stages of early drug development and how AI there comes to life and where we stand.

Speaker #2: And then I think a special highlight is we have Arviv Redchef joining on the implication of AI and early drug development. We'll take you through all the stages of early drug development and how AI there comes to life and where we stand.

Speaker #2: And then in the afternoon sessions, a bit similar setup like last year, we will take you through the five therapeutic areas with the new area head being present and until the end of September, we also would expect a couple of additional data points to come in and as Theresa mentioned already, we have then the opportunity also to touch on some of the assets of the obesity franchise like 388 or 996 and provide updates on them.

Speaker #2: And then in the afternoon sessions, a bit a similar setup like last year, we will take you through the five therapeutic areas with the new area head being present and until the end of September, we also would expect a couple of additional data points to come in and as Teresa mentioned already, we have then the opportunity also to touch on some of the assets of the obesity franchise like 388 or 996 and provide updates on them.

Speaker #2: And with that, I think we are done with the presentation and we'll open the Q&A session. First questions would go to Graham Perry from City.

Speaker #2: Graham, please.

Speaker #2: And with that, I think we are done with the presentation and we'll open the Q&A session. First questions would go to Graham Perry from City.

Speaker #3: Great. Thanks for taking the questions. So there's a question on diveracity. You've obviously started now the crescendo two trial. Primary completion date on clinical trials.gov for that is October 2028.

Speaker #2: Graham, please.

Speaker #3: Great. Thanks for taking the questions. So there's a question on diverasid. You've obviously started now the crescendo two trial. Primary completion date on clinical trials.gov for that is October 2028.

Speaker #3: I was just wondering though, just given the very long PFS that you saw in the phase two of 19 months, whether you feel there could be separation that occurs in an earlier readout on that.

Speaker #3: I was just wondering, though—just given the very long PFS that you saw in the phase two of 19 months—whether you feel there could be separation that occurs in an earlier readout on that.

Speaker #3: And then secondly, you still have this as a one to two billion peak sales opportunity in your slides. Despite the strong phase two data and in phase one and hitting the primary endpoint in the second line as well.

Speaker #3: Is that now just achievable with the second line indication and when would you provide an update on whether you see that as going higher given the strong PFS and long PFS you're seeing in these studies?

Speaker #3: Is that now just achievable with the second-line indication, and when would you provide an update on whether you see that as going higher, given the strong PFS and long PFS you're seeing in these studies?

Speaker #3: Thank you.

Speaker #1: Great. Thanks, Graham. Well, I think Pharma Day is going to be for you. So we will be able to provide an update on the entire diveracity clinical trial program as well as the fact that we are currently now based on the strength of the crescendo one data, we are reevaluating what we believe peak sales might be so we're talking with thought leaders thinking about what our ultimate clinical trial program will look like and we'll be able to provide you an update at Pharma Day.

Speaker #3: Thank you.

Speaker #1: Great. Thanks, Graham. Well, I think Pharma Day is going to be for you. So we will be able to provide an update on the entire diverasid clinical trial program as well as the fact that we are currently now based on the strength of the crescendo one data.

Speaker #1: We are reevaluating what we believe peak sales might be so we're talking with thought leaders thinking about what our ultimate clinical trial program will look like and we'll be able to provide you an update at Pharma Day.

Speaker #1: Though for right now, we are confirming one to two billion, but stay tuned.

Speaker #3: Great. Thank you.

Speaker #1: Though for right now, we are confirming $1 to $2 billion, but stay tuned.

Speaker #2: Graham, did we answer all your questions?

Speaker #3: Just the potential for readouts in early readouts in 2028.

Speaker #3: Great. Thank you.

Speaker #1: So I mean, I think we've just initiated the trial, so we'll see how we go. And as always with an inventory, with an event-driven trial, the data will tell us.

Speaker #2: Graham, did we answer all your questions?

Speaker #3: Just the potential for readouts in early readouts in 2028.

Speaker #1: So I mean, I think we've just initiated the trial so we'll see how we go. And as always with an inventory, with an event-driven trial, the data will tell us.

Speaker #3: Great. Thank you.

Speaker #2: Okay. Then we move on. Next question go to Simon Baker from Redbone. Simon, please.

Speaker #3: Great. Thank you.

Speaker #4: Thanks. Thanks so much, Bruno. I've taken my questions. Two, if I may, firstly, I see Sumio, it's entered phase two for SLE. I just wonder if you could give us your thoughts on Lansumio in that setting.

Speaker #2: Okay. Then we move on. Next question go to Simon Baker from Redbone. Simon, please.

Speaker #4: Thanks. Thanks so much, Bruno. I've taken my questions. Two, if I may. Firstly, I see we'll insumio. It's entered phase two for SLE. I just wonder if you could give us your thoughts on Linsumio in that setting.

Speaker #4: And also the interplay with Gaziva in that space. And then secondly, on Verbizmo, Teresa, you gave us some color on the dynamics within that market.

Speaker #4: I just wonder specifically if you could give us an update on any activity you're seeing with respect to patient assistance foundations either by yourself or others and your expectations of that for the rest of the year.

Speaker #4: Thanks so much.

Speaker #1: Great. So in terms of Lansumio for SLE, so SLE is a very heterogeneous and complex disease. And while we saw great results with Gaziva, we do believe there's an opportunity for more benefit for patients.

Speaker #4: Thanks so much.

Speaker #1: Great. So, in terms of Lunsumio for SLE—SLE is a very heterogeneous and complex disease. And while we saw great results with Gazyva, we do believe there's an opportunity for more benefit for patients.

Speaker #1: And we think that based on Lansumio's mechanism of action and its safety profile, we think it could actually be a really great option for patients with SLE.

Speaker #1: And we think that based on Linsumio's mechanism of action and its safety profile, we think it could actually be a really great option for patients with SLE.

Speaker #1: It has very strong B cell depletion. As does Gaziva. So we are curious to see whether or not with a slightly different mechanism, we can actually achieve even greater results for these patients.

Speaker #1: It has very strong B cell depletion. As does Gaziva. So we are curious to see whether or not with a slightly different mechanism we can actually achieve even greater results for these patients.

Speaker #1: So stay tuned on Lansumio, but deeper and deeper B cell depletion is likely what these patients need. What these patients need. In terms of the copay assistance foundation, so again, I will just reiterate that these are charitable donations and there's certainly not meant to drive sales.

Speaker #1: So stay tuned on Linsumio but deeper and deeper B cell depletion is likely what these patients need. What these patients need. In terms of the copay assistance foundations, so again, I will just reiterate that these are charitable donations and there's certainly not meant to drive sales.

Speaker #1: But I think what we are seeing is that there has not been a recovery to the overall market. We are seeing sort of that two to three percent growth in the overall retinal market.

Speaker #1: We do expect that this is going to be the new normal and we don't expect a rebound to previous levels.

Speaker #4: Great. Thanks so much.

Speaker #1: We do expect that this is going to be the new normal, and we don't expect a rebound to previous levels.

Speaker #2: Okay. Then we go on. Next questions go to Sachin Jain from Bank of America. Sachin.

Speaker #4: Great. Thanks so much.

Speaker #3: Hi there. Thanks so much for my questions. I've got a few, if I may. So firstly, just another one on Lydera launch. I warned you, you talked optimistically about launch and discussion by risk group.

Speaker #2: Okay. Then we go on. Next questions go to Sachin Jain from Bank of America. Sachin.

Speaker #3: My question for this quarter is what visibility do you have on a bolus of patients that could be fast adopters? So specifically patients who over the course of the last three or four years have discontinued CDK 460 due to toxicity and are back on just an AI.

Speaker #3: Hi there. Thanks so much for taking my questions. I've got a few, if I may. So, firstly, just another one on the Lydera launch. At Q1, you talked optimistically about the launch and discussion by risk group.

Speaker #3: So any sense, firstly, how big that bolus is that could be rapid adopters and would usage in that switch group be consistent with an expected label?

Speaker #3: Second question is Ocrevus. You're probably out in competition. I'm guessing that's Brionvi. So when you can just give us a bit more color as to why that's impacting now given it's a launch from a while and why you think it's temporary.

Speaker #3: So, any sense, firstly, how big that bolus is that could be rapid adopters? And would usage in that switch group be consistent with an expected label?

Speaker #3: Second question is Ocrevus. You're calling out in competition. I'm guessing that's Brionvi. So when you could just give us a bit more color as to why that's impacting now given it's a launch for a while and why you think it's temporary.

Speaker #3: And then just one question for Alan. It's a thing it's the first time you've called out the expected growth and other revenues midterm, three to five percent.

Speaker #3: And then just one question for Alan. It's a thing it's the first time you've called out the expected growth and other revenues midterm three to five percent.

Speaker #3: That kind of implies two billion growing to about four billion. That's all EBIT. So is that a driver of margin expansion or is it funding investments within your commentary of margins being stable?

Speaker #3: I'm just going to dovetail that with Bruno also mentioning an entire cost focus session at the Pharma Day. Thank you.

Speaker #1: Okay. So let's start with your destroy. So I think it's so first of all, Sachin, I think you're spun onto something here, but let's start by sort of looking at what does the treatment of positive HER2 negative or early breast cancer really look like.

Speaker #3: I'm just going to dovetail that with Bruno also mentioning an entire cost focus session at the Pharma Day. Thank you.

Speaker #1: Okay. So let's start with your destrin. So I think it's so first of all, Sachin, I think you're spun onto something here but let's start by sort of looking at what does the treatment of positive HER2 negative or early breast cancer really look like.

Speaker #1: So there's sort of four risk groups of patients. There's the low risk patient group, which is between 55 and 60 percent of patients. There's the intermediate risk group, which is about 10 percent of patients.

Speaker #1: The medium risk group, which is between 15 and 20 percent of patients. And then the high risk group, which is 15 percent of patients.

Speaker #1: We would expect that one of the first places we would gain utilization is patients who just aren't on CDK 46 inhibitors right now. That's 90 percent plus of that intermediate group.

Speaker #1: The medium risk group, which is between 15 and 20 percent of patients. And then the high risk group, which is 15 percent of patients.

Speaker #1: We would expect that one of the first places we would gain utilization is patients who just aren't on CDK4/6 inhibitors right now. That's 90% plus of that intermediate group.

Speaker #1: It's 80 percent plus of the medium risk and 50 percent plus of the high risk. And so there's a tremendous opportunity within that group that has just never gone on a CDK 46.

Speaker #1: It's 80 percent plus of the medium risk and 50 percent plus of the high risk. And so there's a tremendous opportunity within that group that has just never gone on a CDK4/6.

Speaker #1: But you are right. There's about 50 percent of patients today who can't tolerate their CDK 46 treatment. I mean, it's part of the reason that we see such bad outcomes for people with this type of cancer is they just can't tolerate the treatment.

Speaker #1: And so for those people who either can't tolerate and maybe who have come off and are waiting, we would absolutely see this as a potential patient population and we wouldn't see this to it wouldn't be in conflict with any likely with any kind of label the switch question or the line of therapy that is not the switch question is not usually something that comes up in the label.

Speaker #1: We are generating, however, switch data. So for patients who are on CDK 46 today and want to switch, we will generate that data. And we are also generating data for that low risk population which is the majority of patients, that 55 to 60 percent.

Speaker #1: None of whom are currently on treatment. And then our own combination data is also forthcoming. So we do believe that when you look at the totality of the juridic data that we have in our hands already between Lydera and Avero, we've already got about 80 percent of the market covered.

Speaker #1: None of whom are currently on treatment. And then our own combination data is also forthcoming. So we do believe that when you look at the totality of the GeroDestrin data that we have in our hands already between Lydera and Avero, we've already got about 80 percent of the market covered.

Speaker #1: We're doing trials to cover the rest. And sort of really looking at what is the clinical data that we need to make sure that we have the ability to answer all of the physician's questions in terms of other ways that juridic might be utilized.

Speaker #1: We're doing trials to cover the rest. And sort of really looking at what is the clinical data that we need to make sure that we have the ability to answer all of the physicians' questions in terms of other ways that GeroDestrin might be utilized.

Speaker #1: But we do certainly think that there is quite a bit of opportunity for juridic. And in terms of competition with 3MV, I mean, it's just normally we don't comment on individual competitors.

Speaker #1: But we do certainly think that there is quite a bit of opportunity for GeroDestrin. And in terms of competition with Brionvi, I mean, it's just normally we don't comment on individual competitors.

Speaker #1: We generally we're just seeing a higher level of competition in the market. And we certainly believe that based on the clinical attributes of Ocrevus, we are very well positioned to compete.

Speaker #1: Ocrevus remains the leader in MS with de novo as the key growth driver. It is the fastest growth driver in MS. It's the first and only twice yearly MS therapy that's approved in RMS and PPMS.

Speaker #1: Ocrevus remains the leader in MS, with Zenovo as the key growth driver. It is the fastest growth driver in MS. It's the first and only twice-yearly MS therapy that's approved in RMS and PPMS.

Speaker #1: It has over a decade worth of experience. We see that 80 percent of first line RMS patients don't experience progression. 90 percent don't need walking implements.

Speaker #1: It has over a decade’s worth of experience. We see that 80% of first-line RMS patients don't experience progression, and 90% don't need walking implements.

Speaker #1: We're the only high efficacy therapy that has robust family planning data in hand. And frankly, that outstanding patient convenience with six months dosing available as a 10-minute subcut just twice a year.

Speaker #1: We're the only high-efficacy therapy that has robust family planning data in hand. And frankly, that outstanding patient convenience with six-month dosing available as a 10-minute subcut just twice a year.

Speaker #1: I mean, that's an incredible value proposition for patients. So I think in any given situation, you will see little bursts of competitive activity, but the end of the day, these aren't driven on clinical differentiation.

Speaker #1: I mean, that's an incredible value proposition for patients. So I think in any given situation, you will see little bursts of competitive activity but the end of the day, these aren't driven on clinical differentiation.

Speaker #1: Ocrevus remains the most differentiated the most differentiated product in MS. And we strongly believe in our ability to compete and win for patients who deserve to be on the best therapy.

Speaker #3: Yeah. Let me take the margin point, Sachin. I think you'll make a great point. I think very clear once we grow from 3 percent of sales to 5 percent of sales, that makes a difference until the end of the decade.

Speaker #3: There's no doubt about it. I think for the time being, nevertheless, yeah, I think we stick to the point to say either we stabilize the things come nicely together.

Speaker #3: There's no doubt about it. I think for the time being, nevertheless, yeah, I think we stick to the point to say either we stabilize the margin or we grow it.

Speaker #3: We'll see how that plays out. And yeah, I think that gives even more substance to our statement.

Speaker #3: I think now things come nicely together. We'll see how that plays out. And yeah, I think that gives even more substance to our statement.

Speaker #2: Sachin, did we answer your questions?

Speaker #3: Yeah. Perfect. Thank you so much.

Speaker #2: Then we move on. Next one in the row is Colin White from UBS. Colin, please.

Speaker #2: Sachin, did we answer your questions?

Speaker #3: Yeah. Perfect. Thank you so much.

Speaker #4: Hi. Colin White from UBS. Yeah, thanks for taking my questions. Just to go back to Verbaismo, you talked about being confident of a stabilization of the branded market.

Speaker #2: Then we move on. Next one in the row is Colin White from UBS. Colin, please.

Speaker #4: Hi. Colin White from UBS. Yeah, thanks for taking my questions. Just to go back to Verbaismo, you talked about being confident of a stabilization of the branded market.

Speaker #4: I was wondering if you could talk about the dynamics related to the reduced Verbaismo growth expectations between charitable funding assistance and the increased use of biosimilars.

Speaker #4: And if biosimilar market share has shift, what percentage of the market do you expect to be biosimilars going forward? And why do you have confidence that the branded market is now stabilizing?

Speaker #4: And then just a second question on first line DLBCL, if I may, there's a big competitor readout for Epikinly coming up in first line DLBCL.

Speaker #4: And then just a second question on first-line DLBCL, if I may. There's a big competitor readout for EpQinly coming up in first-line DLBCL. So if that study reads out positively, I just wondered what you're thinking about in terms of the impact that might have on Polyvi and how it fits in with your own first-line study for your anti-CD20.

Speaker #4: So if that study reads out positively, I just wondered what you're thinking about in terms of the impact that might have on Palivi and how it fits in with your own first line study for your anti-CD20.

Speaker #4: Thanks. That's my questions.

Speaker #2: Yeah.

Speaker #1: So, I mean, let's talk a little bit first about the biosimilar market in ophthalmology. I mean, it's just a little bit different than in other places.

Speaker #4: Thanks. That's my questions.

Speaker #2: Yeah.

Speaker #1: So, I mean, let's talk a little bit first about the biosimilar market in ophthalmology. I mean, it's just a little bit different than in other places.

Speaker #1: But where we are seeing biosimilar impact happen is impacting sort of directly the molecule that it's replacing. So a biosimilar to Lucentis took Lucentis chair.

Speaker #1: But where we are seeing biosimilar impact happen is impacting, sort of, directly the molecule that it's replacing. So, a biosimilar to Lucentis took Lucentis share.

Speaker #1: Biosimilars for other molecules are taking specifically that chair and really impacting that part of the market. You don't really we're not really necessarily seeing the bleed over that you might see in other places.

Speaker #1: We saw 8 percent growth with Verbaismo in sales. This half. But we saw 30 percent increase in volume globally. So we really do believe that Verbaismo has entrenched itself as the preferred therapy of choice.

Speaker #1: I think you can very clearly see that from the ASRS data. And that where physicians are making a determination for a new patient, the majority of the time that is coming Verbaismo's way.

Speaker #1: And again, we're not seeing new biosimilars entering the market impacting Verbaismo. We see them we're seeing them impact the originator product that they are the biosimilar of.

Speaker #1: And again, we're not seeing new biosimilars entering the market impacting Verbaismo. We're seeing them impact the originator product that they are the biosimilar of.

Speaker #1: The stabilization that comes from just sort of having watched the market over the last six months, talking with physicians and seeing how they are how are they running their practice and what they're how they're utilizing the resources available to them and their patients.

Speaker #1: The stabilization that comes from just sort of having watched the market over the last six months, talking with physicians, and seeing how they are how are they running their practice and what they're how they're utilizing the resources available to them and their patients.

Speaker #1: So we do think that 2 to 3 percent overall growth in retina will accommodate the biosimilar entry. It will accommodate other things. But clearly, Verbaismo is continuing to grow in the US and it is continuing to take a disproportionate share of that branded share growth.

Speaker #1: So we do think that 2% to 3% overall growth in retina will accommodate the biosimilar entry. It will accommodate other things. But clearly, Vabysmo is continuing to grow in the US, and it is continuing to take a disproportionate share of that branded share growth.

Speaker #1: With regards to the competitor entry, so they are about a year ahead with first line DLBCL, but we do see Polarix being just a much better tolerated regimen in first line.

Speaker #1: With regards to the competitor entry, so they are about a year ahead with first-line DLBCL but we do see Polarix being just a much better tolerated regimen in first line.

Speaker #1: So we wouldn't necessarily expect to see a terrible amount of impact there. Polarix has well established itself in first line DLBCL.

Speaker #1: So we wouldn't necessarily expect to see a terrible amount of impact there. Polarix has well established itself in first-line DLBCL. I meant Polarix, not Linsumio because that's really the first-line DLBCL.

Speaker #4: Thank you.

Speaker #1: I meant Polarix, not Linsumio because that's really the first line DLBCL.

Speaker #2: Colin, did this answer your questions? So we also have our own study coming up next year.

Speaker #1: Yeah.

Speaker #2: As you know, Skyco. Yeah. Okay. Then we move on. Next one in the row is Justin Smith from Bernstein.

Speaker #2: Colin, did this answer your questions? So we also have our own study coming up next year. As you know, Skyco. Yeah. Okay. Then we move on.

Speaker #4: Thanks. Yeah. Just a very quick one on 007. Sorry, this is a bit ignorant. Just any kind of qualitative conviction you can give us as to why 360 patients means you're well powered in that sort of head-to-head versus Hemleber in phase three?

Speaker #2: Next one in the row is Justin Smith from Bernstein.

Speaker #3: Thanks, yeah. Just a very quick one on 007. Sorry, this is a bit ignorant. Just any kind of qualitative conviction you can give us as to why 360 patients means you're well powered in that sort of head-to-head versus Hemlibra in phase three?

Speaker #1: Yeah. I mean, I think we've done the statistical analysis based on what we know about the performance of Hemleber and what we believe to be true about 007, given as Thomas mentioned, the incredibly high level of potency.

Speaker #1: Yeah. I mean, I think we've done the statistical analysis based on what we know about the performance of Hemlibra and what we believe to be true about 007 given as Thomas mentioned, the incredibly high level of potency.

Speaker #1: And we feel confident in the design.

Speaker #2: Yeah. Maybe what I can add here in terms of the timelines, I think for this study, which now has seen the first patient in, we would expect data I think at around year-end next year, beginning of the year after, so end 27, end 28, which I think also puts us in a very favorable situation here to bridge to the next generation.

Speaker #1: And we feel confident in the design.

Speaker #2: Yeah. Maybe what I can add here in terms of the timelines. I think for this study, which now has seen the first patient in, we would expect data, I think, at around year-end next year, beginning of the year after, so end 27, end 28, which I think also puts us in a very favorable situation here to bridge to the next generation.

Speaker #2: Any additional questions, Justin?

Speaker #4: All good. Thank you.

Speaker #2: Okay. Thanks, Justin. Yeah. And we move on. And next questions go to Sarita Kapila from Morgan Stanley.

Speaker #2: Any additional questions, Justin?

Speaker #3: All good. Thank you.

Speaker #2: Okay, thanks, Justin. Yeah. And we move on. The next questions go to Sarita Kapila from Morgan Stanley.

Speaker #5: Hi. Thanks for taking my questions. I'd ask her you talked about new indications, sorry, for Jurodestrin. So the Herodiera trial and the Novera trial.

Speaker #5: Could you quantify how large you think these opportunities are and whether these are upside to the Swiss franc 9 billion peak commentary? And how, if I can squeeze in, do you see positioning specifically for Herodiera of Jurodestrin in AHR positive HER2 breast following positive data for Pfizer's Ibrance in the Patina trial?

Speaker #5: Hi. Thanks for taking my questions. I'd ask her you talked about new indications, sorry, for Jurodestrin. So the Herodera trial and the Novera trial.

Speaker #5: Could you quantify how large you think these opportunities are and whether these are upside to the Swiss franc 9 billion peak commentary? And how, if I can squeeze in, do you see positioning specifically for Herodera of Jurodestrin in AHR positive HER2 breast following positive data for Pfizer's Ibrance in the patina trial?

Speaker #5: If I could just squeeze in a quick follow-up on Devarasib, if you're re-evaluating peak sales, this is a KRAS G12DC. How should we think about it versus emerging pan-RAS agents including pipeline programs within your own pipeline?

Speaker #5: If I could just squeeze in a quick follow-up on Devarisib. If you're reevaluating peak sales, this is a KRAS G12DC. How should we think about it versus emerging pan-RAS agents including pipeline or programs within your own pipeline?

Speaker #5: Thank you.

Speaker #1: Yeah. Absolutely. So when we think I'll start with the second question first, and then go up to Jurodestrin. So when you think about KRAS mutations, KRAS mutations are present in about 25 percent of patients with lung cancer.

Speaker #5: Thank you.

Speaker #1: Yeah, absolutely. So, I'll start with the second question first and then go up to Jurodestrin. When you think about KRAS mutations, KRAS mutations are present in about 25 percent of patients with lung cancer.

Speaker #1: G12C mutations are present they represent 40 percent of the KRAS mutations, which means you're at about 12, 13-ish percent of overall non-small cell patients have a KRAS G12C mutation.

Speaker #1: So the potency, the selectivity, the safety profile of Devarasib, we believe positions it very well in patients with those specific mutations. And I think we've seen that in the when 70 data we're seeing it in crescendo one and it's something that we expect will play out in other trials as well.

Speaker #1: So the potency, the selectivity, the safety profile of Devirasib, we believe positions it very well in patients with those specific mutations. And I think we've seen that in the when 70 data, we're seeing it in crescendo 1.

Speaker #1: So I think because of the very strong specificity for that mutation and the fact that mutation is so prevalent, I think if you had that mutation, you would be more apt to use a therapy that would target that mutation directly.

Speaker #1: And it's something that we expect will play out in other trials as well. So I think, because of the very strong specificity for that mutation and the fact that mutation is so prevalent, if you had that mutation, you would be more apt to use a therapy that would target that mutation directly.

Speaker #1: Certainly, there's going to be a place for pan-RAS inhibitors. We have several of them in our pipeline as well. And we look forward to developing them and seeing what their results are for patients.

Speaker #1: We have a very diverse pipeline here, which is great. When you talk about the opportunities within for Jurodestrin, as I mentioned previously, between Lidera and Devera, we already have 80 percent of the positive HER2 negative market covered.

Speaker #1: So the other trials that we have in place that are looking at the different aspects of first line, in different combinations, those really give us the opportunity to cover pretty much 100 percent of this patient population.

Speaker #1: So the peak sales that we've mentioned, they sort of encapsulate the fact that we do have a pretty broad program already in place for Jurodestrin, but certainly if some of these other programs came in, that could potentially be upside as well.

Speaker #1: And as I mentioned, we'll be able to give you a very good and thorough update of what our development plans look like for Jurodestrin at Pharmaday in just a couple of weeks.

Speaker #2: And I mean, the upsides on Devarasib is also in other cancer types, right, beyond the lung cancer? In fact, the RAS is one of the best known, the most known, and most mutated genes in cancer in different cancer types.

Speaker #2: And I mean, the upsides on Devirasib is also in other cancer types, right, beyond lung cancer? In fact, the RAS is one of the best known, the most known, and most mutated genes in cancer in different cancer types.

Speaker #1: Absolutely.

Speaker #2: Did we answer all your questions, Sarita, or your follow-on questions?

Speaker #5: Yes. Thank you.

Speaker #1: Absolutely.

Speaker #2: Okay. Then next questions go to Richard Foster from JP Morgan.

Speaker #2: Did we answer all your questions, Sarita, or your follow-on questions?

Speaker #5: Yes. Thank you.

Speaker #2: Okay. Then next questions go to Richard. Fossa from JPMorgan.

Speaker #6: Thanks very much, Bruno. A couple of questions, please. Just a follow-up on Ocrevus. Zenova Uptake seems very strong and very fast. So you mentioned again the 2 billion for Zenova.

Speaker #3: Thanks very much, Bruno. A couple of questions, please. Just a follow-up on Ocrevus. Zenova Uptake seems very strong and very fast. So you mentioned again the 2 billion for Zenova.

Speaker #6: But could this actually be larger and protect more of the franchise from biosimilars? So just thinking about that. Second question, a follow-up on for Bizmo.

Speaker #3: But could this actually be larger and protect more of the franchise from biosimilars? So, just thinking about that. Second question, a follow-up on Vabysmo.

Speaker #6: I don't think you mentioned pricing impacts. Just wondering about we've seen biosimilars to other agents affect pricing in the classes. Obviously, there's very low dose of Aspin here, but are you seeing anything in or very low price of Aspin, but are you seeing anything there in terms of pricing maybe in the XUS market?

Speaker #3: I don't think you mentioned pricing impacts. Just wondering about—we've seen biosimilars to other agents affect pricing in the classes. Obviously, there's a very low dose of AST in here, but are you seeing anything—or very low price of AST in—but are you seeing anything there in terms of pricing, maybe in the ex-US market?

Speaker #6: And then one final question, just on other revenues coming back to that. I think there are probably some milestones there in this quarter for some of the new agents.

Speaker #3: And then one final question, just on other revenues coming back to that. I think there are probably some milestones there in this quarter for some of the new agents.

Speaker #6: You've got quite a lot of new agents from other companies launching. Just should there be other milestones that we should think about in the next few years that could boost the trajectory from actually the royalties that you're getting in?

Speaker #3: You've got quite a lot of new agents from other companies launching. Just should there be other milestones that we should think about in the next few years that could boost the trajectory from actually the royalties that you're getting in?

Speaker #6: Just some thoughts there as well. Thanks very much.

Speaker #1: Yeah. Great. Thanks, Richard. So I promised you guys a hockey stick for Ocrevus Zenova, and we have delivered the hockey stick. We're well on our way.

Speaker #3: Just some thoughts there as well. Thanks very much.

Speaker #1: We do think that as people as I mentioned in many other calls previously, as practices and patients get experience with Zenova, it fits into the practice flow very, very well, and it's intensely convenient for patients.

Speaker #1: Yeah, great. Thanks, Richard. So, I promised you guys a hockey stick for Ocrevus Zenova, and we have delivered the hockey stick. We're well on our way.

Speaker #1: We do think that, as people—as I mentioned in many other calls previously—as practices and patients get experience with Zenova, it fits into the practice flow very, very well, and it's intensely convenient for patients.

Speaker #1: So is there additional conversion opportunity? Quite probably. I think at the moment, we still feel very confident in our additional 2 billion, understanding that there will be the sort of 2 billion that are just brand new patients.

Speaker #1: To Zenova, but we would expect that there will be switching as well. So ultimately, that entire pie could look bigger. And certainly, that would provide some additional protection to Ocrevus over time.

Speaker #1: To Zenova, but we would expect that there will be switching as well. So, ultimately, that entire pie could look bigger. And certainly, that would provide some additional protection to Ocrevus over time, as would the on-body injector, which we're excited to talk more about at Pharma Day.

Speaker #1: As with the on-body injector, which we're excited to talk more about at Pharmaday. In terms of a Bizmo, I mean, certainly, we've seen pricing impacts outside the US, but those have largely been related to volume because the Bizmo has been doing exceptionally well in generating patient share outside of Europe.

Speaker #1: In terms of Bizmo, I mean, certainly, we've seen pricing impacts outside the US, but those have largely been related to volume because Bizmo has been doing exceptionally well in generating patient share outside of Europe.

Speaker #1: Or inside of Europe. Alan?

Speaker #3: Yeah. I think really in general, no. That's the answer. I think that can always be stuffed, but that's why we have said we go from 3 percent to 5 percent.

Speaker #1: Or inside of Europe. Alan?

Speaker #2: Yeah. I think really, in general, no. That's the answer. I think there can always be stuff, but that's why we have said we go from 3 percent to 5 percent.

Speaker #3: And I would argue that includes everything.

Speaker #2: Yeah. And it's mostly royalty-driven, not milestone-driven.

Speaker #3: Absolutely. Yeah.

Speaker #2: Just to be very clear. But also, I mean, Richard, so you have to there are a couple of

Speaker #2: And I would argue that includes everything.

Speaker #3: Yeah, and it's mostly royalty-driven, not milestone-driven, just to be very clear. But also, I mean, Richard, there are a couple of milestones.

Speaker #3: Yeah. There are a couple, but the majority is royalty. Yeah. By far. But on the Ocrevus side also, you were talking about switching to Zenova.

Speaker #2: Yeah. There are a couple, but the majority is royalty.

Speaker #3: Also to make sure that we can protect that franchise into the next decade as well and beyond. Here, just want to say that we have a couple of other options in play as well within a but a number of things that we have in the pipeline where we believe that we can extend that as well.

Speaker #3: Yeah. By far. But on the Ocrevus side also, you were talking about switching to Zenova. Also to make sure that we can protect that franchise into the next decade as well and beyond.

Speaker #3: Here, I just want to say that we have a couple of other options in play as well, with a number of things that we have in the pipeline where we believe that we can extend that as well.

Speaker #1: Absolutely.

Speaker #2: Very good. Richard, any additional questions?

Speaker #6: No. Perfect, Bruno. Thank you very much.

Speaker #1: Thanks, Richard.

Speaker #1: Absolutely.

Speaker #2: Then next questions come from James Gordon from Barclays. James, please.

Speaker #2: Very good. Richard, any additional questions?

Speaker #3: No. Perfect, Bruno. Thank you very much.

Speaker #7: Hello. James Gordon from Barclays. Thanks for taking the questions. A couple, please. One was Jurodestrin and Adjuvant. And the launch expectations. So I'd ask, there was some mixed discussant feedback on Lidera.

Speaker #1: Thanks, Richard.

Speaker #2: The next questions come from James Gordon from Barclays. James, please.

Speaker #4: Hello. James Gordon from Barclays. Thanks for taking the questions. A couple, please. One was Jurodestrin and Adjuvant. And then I want to check expectations.

Speaker #7: And talk about need for longer-term PFS data in OS and more data versus CDKs. Did you think that view is typical? Could that blunt the initial uptake at all, or do you think that's atypical?

Speaker #4: So at ASCO, there was some mixed discussant feedback on Lidera, and talk about the need for longer-term PFS data and OS, and more data versus CDKs.

Speaker #7: And where are you on XUS regulatory? Might you need longer-term data there? And I think Bloomberg Consensus is about 300 million Swiss next year, which doesn't look a lot versus the size of the very big hormonal breast cancer market.

Speaker #4: Did you think that view is typical? Could that blunt the initial uptake at all? Or do you think that's atypical? And where are you on XUS regulatory?

Speaker #4: Might you need longer-term data there? And I think Bloomberg consensus is about CHF 200 million next year, which doesn't look like a lot versus the size of the very big hormonal breast cancer market.

Speaker #7: Are there any sort of roadblocks we should be aware of if we're modeling out the launch, or is that plausible? The second question would be if Fenibri is new regulatory.

Speaker #7: So latest confidence on US approvability. I know some investors still have quite a big safety and tolerability concerns. But I know you've had a bit more time to have some interactions with regulators.

Speaker #4: Are there any sort of roadblocks we should be aware of if we're modeling out the launch? Or is that plausible? The second question would be Fenebreeze and regulatory.

Speaker #4: So latest confidence on US approvability. I know some investors still have quite a big safety and tolerability concerns. But I know you've had a bit more time to have some interactions with regulators.

Speaker #7: Anything concerning there? And where are you XUS? Any interactions there? I saw Tolibri seems to have been EU approved despite its liver profile. But how are you thinking about timing for XUS?

Speaker #4: Anything concerning there? And where are you XUS? Any interactions there? I saw Tolibreeze seems to have been EU approved despite its liver profile. But how are you thinking about timing for XUS?

Speaker #7: And then finally, it was just obesity update. So we've got updates on your GLP-1 GIT and your Amilena ADA. I think you've got your antimyostatin, and your oral GLP-1 imminently, presumably at the Pharmaday or before.

Speaker #4: And then finally, was just a BCD update? So we've got updates on your GLP-1 kit and your Amilena ADA, but I think you've got your antimyostatin, and your oral GLP-1 imminently, presumably at the Pharmaday or before.

Speaker #7: So how are you thinking about differentiation? And of the four assets in obesity, which is the one that's most exciting because you're giving similar peak sales estimates to normal, but which is the one we should be most excited about?

Speaker #4: So how are you thinking about differentiation? And of the four assets in a BCD, which is the one that's most exciting because you've given similar peak sales estimates for Zenova?

Speaker #1: Oh, James, asking me to pick my favorite kid. That's harsh. Wow. Okay. There's a lot in there. So in terms of Jurodestrin and Adjuvant, I would say that we are spending a lot of time with KOLs.

Speaker #4: Which is the one we should be most excited about?

Speaker #1: And with potential treaters, sort of asking what their confidence is in the data. And I think what we are hearing is that people are excited about having an option, the profile of Jurodestrin is very attractive to people.

Speaker #1: And with potential treaters, sort of asking what their confidence is in the data. And I think what we are hearing is that people are excited about having an option; the profile of Jurodestrin is very attractive to people.

Speaker #1: We've mentioned this a number of times before, but with CDK4/6, it's 50% of patients can't stay on their therapies over time. And that necessarily means that that leads to worse outcomes when you can't take the medicine that's designed to help you.

Speaker #1: We've mentioned this a number of times before, but with CDK4/6, 50% of patients can't stay on their therapies over time. And that necessarily means that leads to worse outcomes when you can't take the medicine that's designed to help you.

Speaker #1: The Jurodestrin tolerability and safety profile, just looks much better. And so I think we are increasingly confident that physicians are excited about Jurodestrin and will find a place to use it in their practices fairly easily.

Speaker #1: The Jurodestrin tolerability and safety profile just looks much better. And so, I think we are increasingly confident that physicians are excited about Jurodestrin and will find a place to use it in their practices fairly easily.

Speaker #1: So my writing is not great here. So XUS, we are currently assembling the data package that we will leave will be the most robust data package to allow us to file in Europe and achieve a sustainable reimbursement value.

Speaker #1: And so that is coming and we would expect that we fully intend to file in Europe. And are just waiting for that data package to mature.

Speaker #1: In terms of the consensus numbers, so we don't generally comment on specifically on launch projections, but what I will say is that we should remember that this is a chronic therapy.

Speaker #1: And so that is coming, and we would expect that. We fully intend to file in Europe and are just waiting for that data package to mature.

Speaker #1: In terms of the consensus numbers, so we don't generally comment on specifically on launch projections, but what I will say is that we should remember that this is a chronic therapy.

Speaker #1: And so while we do expect a strong launch, clearly the big numbers will build over time as they do with any chronic therapy. We would expect patients will stay on Jurodestrin for five years plus given what we've seen in the market and what the tolerability profile is for Jurodestrin.

Speaker #1: In terms of Fenibrutinib regulatory, so as I mentioned, we're well on track to file first in the US. We'll use that US package then to springboard off of for other regulatory filings.

Speaker #1: In terms of Fenebreeze and regulatory, so as I mentioned, we're well on track to file first in the US. We'll use that US package then to springboard off of for other regulatory filings.

Speaker #1: We are collecting the additional data that we need for the EU. And again, we have every intention of filing and again, our focus has been on getting the US package ready and then we'll go from there.

Speaker #1: While I won't comment on the specifics of any regulatory interactions, we haven't seen anything that would indicate that a filing in the US is going to be at all problematic.

Speaker #1: And then in terms of picking my favorite child, that's really, really unfair. I think that what we saw in what we saw at ADA with just the really impressive weight loss data from Enosepatide and the very interesting and positive tolerability profile for Petrolintide.

Speaker #1: I mean, if you think of that bell curve that I showed you guys at Pharmaday, last year, for the patients who need deep weight loss, we have that.

Speaker #1: For the people who maybe need that 10 to 15 percent weight loss with a placebo-like tolerability, we have that. The fixed-dose combination could be a booster for both of those products.

Speaker #1: I mean, if you think of that bell curve that I showed you guys at PharmaDay last year, for the patients who need deep weight loss, we have that.

Speaker #1: For the people who maybe need that 10% to 15% weight loss with a placebo-like tolerability, we have that. The fixed-dose combination could be a booster for both of those products.

Speaker #1: I think what we are finding is that the nature of both of these medicines and different ways are making them differentiated and are giving them opportunities to really find a very unique space in obesity in ways that will ultimately really help patients with what they need.

Speaker #1: I think what we are finding is that the nature of both of these medicines, in different ways, is making them differentiated and is giving them opportunities to really find a very unique space in obesity, in ways that will ultimately really help patients with what they need.

Speaker #1: And I think that's actually super exciting as we head into our phase three programs. Clearly, we'll have the data on the antimyostatin and CT996 quickly.

Speaker #1: I mean, having an oral option is, of course, important. So we're excited to see 996. But I would have to say, I don't think I can pick a favorite because I think what I really love about the obesity portfolio that we've built is it's delivering on exactly what I talked to you all about last year at Pharmaday, the ability to build a broad adaptive portfolio that regardless of what a patient's obesity where they are in their obesity or health journey, we have a medicine that can help them.

Speaker #1: And could help them throughout their entire weight loss journey. And so I'm just really excited about what we've seen in the data as it's come to maturity.

Speaker #1: And could help them throughout their entire weight loss journey. So I'm just really excited about what we've seen in the data as it has come to maturity.

Speaker #1: And increasingly, getting excited about bringing the entire portfolio to patients.

Speaker #7: Let me add two points. One on Jurodestrin and one in Fenibrutinib, but also that increases my confidence level in those molecules. You already pointed out the safety profile of Jurodestrin specifically against CDKs.

Speaker #1: And increasingly, getting excited about bringing the entire portfolio to patients.

Speaker #4: Let me add two points. One on Jurodestrin and one in Fenebreeze and also that increases my confidence level in those molecules. You already pointed out the safety profile of Jurodestrin specifically against CDKs.

Speaker #7: I would like to point out not only the potency advantage it has versus another third, but also the label and safety aspect that it has, versus another third.

Speaker #4: I would like to point out not only the potency advantage it has versus another third, but also the label and safety aspect that it has, versus another third.

Speaker #7: So I think from a safety perspective, it is quite differentiated as well. And then on the Fenibrutinib, we mentioned that before that the FDA allowed open label extension for Fenibrutinib for initially PPMS patients.

Speaker #4: So I think from a safety perspective, it is quite differentiated as well. And then on the Fenebreeze and we mentioned that before that the FDA allowed open label extension for Fenebreeze and for initially PPMS patients.

Speaker #7: And so people that were on the Fenibrutinib are and continued, but people who were on the control arm were switched to Fenibrutinib. Now, the same happened for RMS.

Speaker #4: And so people that were on the Fenebreeze and continued, but people who were on the control arm were switched to Fenebreeze and now the same happened for RMS.

Speaker #7: So the RMS patients that were on Fenibrutinib continue in the open label extension as well as on the control arm, patients moved to Fenibrutinib.

Speaker #4: So the RMS patients that were on Fenebreeze and continue in the open label extension as well as on the control arm patients moved to Fenebreeze and.

Speaker #7: So I think these are good indicators, I would say. It gives us a certain level of confidence in that. But ultimately, we'll see.

Speaker #1: Yeah.

Speaker #4: So I think these are good indicators, I would say. It gives us a certain level of confidence in that. But ultimately, we'll see.

Speaker #3: Very good. Any additional questions, James?

Speaker #2: I'll leave it there. Thank you very much for the answers.

Speaker #3: Okay.

Speaker #1: Thanks, James.

Speaker #3: Yeah. And then we move on to the next, James. James, quickly from Goldman Sachs.

Speaker #3: Yeah.

Speaker #5: Very good. Any additional questions, James?

Speaker #6: I'll leave it there. Thank you very much for the answers.

Speaker #8: Great. Thanks for taking my question, Bruno. I have two as well. So again, both for Theresa. So the BTK degrader, from the data you've seen so far, where do you think the asset can be differentiated in counterindications?

Speaker #5: Okay.

Speaker #1: Thanks, James.

Speaker #5: Yep. And then we move on to the next, James. James, quickly from Goldman Sachs.

Speaker #7: Great. Thanks, for taking my question, Bruno. I have two as well. So again, both for Teresa. So the BTK degrader from the data you've seen so far, where do you think the asset can be differentiated in counterindications?

Speaker #8: Is it efficacy, safety, combinability, dosing? We're interested to hear that. And then also, as you move into immunology, where do you hope to be differentiated on the immunology side and how quickly do you think you can move there into MS and CSU depending on when you see the data?

Speaker #7: Is it efficacy, safety, combinability, dosing? We're interested to hear there. And then also, as you move into immunology, where do you hope to be differentiated on the immunology side and how quickly do you think you can move there into MS and CSU depending on when you see the data?

Speaker #8: And the secondly, Gazyva in immunology, I think I asked this last time as well, but when we hear you speak, Theresa, you sound very excited about the opportunity when you look at the four indications, two billion look like it looks like it might be on the low side.

Speaker #7: And the secondly, Gazyva in immunology, I think I asked this last time as well, but when we hear you speak, Teresa, you sound very excited about the opportunity when you look at the four indications, two billion look like it looks like it might be on the low side.

Speaker #8: So what is holding you back at that moment in terms of looking at peak sales here? Is there anything in the indication size? Is there anything in terms of segmentation that might be holding you back on the potential peak sales for Gazyva?

Speaker #7: So what is holding you back at the moment in terms of looking at peak sales here? Is there anything in the indication size? Is there anything in terms of segmentation that might be holding you back on the potential peak sales for Gazyva?

Speaker #8: Thank you.

Speaker #1: Great. Okay. A lot of immunology questions. I love it. Okay. So the BT so Backstag, all of those things, right? I think we're excited about the potential.

Speaker #7: Thank you.

Speaker #1: Great. Okay, a lot of immunology questions. I love it. Okay, so the BT, so Backstag, all of those things, right? I think we're excited about the potential.

Speaker #1: I think we're excited about the efficacy. I think we're excited about the safety, the tolerability, the combinability. I think we really believe that a BTK degrader could be a real game changer in some of these indications, particularly in oncology.

Speaker #1: And so I think we're very excited to get this into trials and to see where it can go. Now, that having been said, for all of those same reasons, having the degrader versus the inhibitor, we could see a really differentiated efficacy profile in immunology.

Speaker #1: Immunological diseases are notoriously difficult to tackle. I mean, as I mentioned previously, they're very heterogeneous. And so having a degrader versus an inhibitor, I think we could very well see that incremental efficacy which in immunological indications can really be quite meaningful.

Speaker #1: Immunological diseases are notoriously difficult to tackle. I mean, as I mentioned previously, they're very heterogeneous. And so, having a degrader versus an inhibitor, I think we could very well see that incremental efficacy, which in immunological indications can really be quite meaningful.

Speaker #1: So time will tell. It's a brand new asset to us. We'll give you a little bit more insight as to what our plans are at Pharmaday, but I think we're really excited to have this partnership with Nurix to be able to bring this molecule forward.

Speaker #1: So, time will tell. It's a brand new asset to us. We'll give you a little bit more insight as to what our plans are at Pharma Day, but I think we're really excited to have this partnership with Nurix to be able to bring this molecule forward.

Speaker #1: In terms of Gazyva, for immunology, a couple of those indications are quite small. So membranous and INS are quite small indications. Lupus nephritis while more sort of on the medium size.

Speaker #1: In terms of Gazyva for immunology, a couple of those indications are quite small. So, membranous and INS are quite small indications. Lupus nephritis, while more sort of on the medium size.

Speaker #1: Is also not huge. SLE is clearly a bigger opportunity, but there are some highly entrenched therapies there. So I think it's more just about sort of thinking about where we can actually make inroads.

Speaker #1: It's also not huge. SLE is clearly a bigger opportunity, but there are some highly entrenched therapies there. So I think it's more just about thinking about where we can actually make inroads.

Speaker #1: The pricing for Gazyva is also not in the same ballpark, let's say, as some of the other immunological drugs that are out there. So I think that also lends a little bit to what our peak sales estimates would be just because we're anchored to the oncology pricing.

Speaker #1: But Gazyva in immunology is going to make a big difference for patients, and I do think it's worth watching. And we do feel quite confident in that up to two billion peak sales.

Speaker #1: But Gazyva and immunology is going to make a big difference for patients. And I do think it's worth watching. And we do feel quite confident in that up to two billion peak sales.

Speaker #3: Any additional questions? James?

Speaker #8: That's it. Thank you, Bruno.

Speaker #3: Yeah. Okay. Then next questions go to Luisa Hector from Bloomberg. Luisa, please.

Speaker #5: Any additional questions? James?

Speaker #7: That's it. Thank you, Bruno.

Speaker #9: Thank you, Bruno. A couple please. So I just wanted to check, are you expecting and advisory committee meeting for Jurodestrant? And then you highlighted your excellent 80% phase three success rate year to date.

Speaker #5: Yep. Okay. Then next questions go to Luisa Hector from Bloomberg. Luisa, please.

Speaker #8: Thank you, Bruno. A couple, please. So I just wanted to check, are you expecting and advisory committee meeting for Jurodestrant? And then you highlighted your excellent 80% phase three success rate year to date.

Speaker #9: I just wondered if you can tie that into your latest thoughts on capital allocation? So where are you targeting now? Any future M&A business development?

Speaker #8: I just wondered if you can tie that into your latest thoughts on capital allocation? So where are you targeting now? Any future M&A business development?

Speaker #9: And also that kind of relative external versus internal R&D spend given the intensity of your phase three starts as well. How should we be thinking about those two items?

Speaker #8: And also that kind of relative external versus internal R&D spend given the intensity of your phase three starts as well. How should we be thinking about those two items?

Speaker #9: Thank you.

Speaker #1: Excellent. Well, I'll take the easy question first, and then pass off the capital allocation question. So no. Jurodestrant received, as you know, priority review.

Speaker #8: Thank you.

Speaker #1: Excellent. Well, I'll take the easy question first and then pass off the capital allocation question. So, no, Jurodestrant received, as you know, priority review.

Speaker #1: We've been in close conversations with the agency, and we haven't had any indications of an ad board at this time.

Speaker #7: Yeah. To the second question, so we feel very good where we are at in terms of our pipeline. We've increased the value of our pipeline by 93% versus end of 2022.

Speaker #1: We've been in close conversations with the agency and we haven't had any indications of an ad board at this time.

Speaker #4: Yeah. To the second question, we feel very good about where we are at in terms of our pipeline. We've increased the value of our pipeline by 93% versus the end of 2022.

Speaker #7: So we have now at an all-time high in terms of pipeline. We have 19 medicines that we could launch until the end of the decade.

Speaker #4: So we have now at an all-time high in terms of pipeline. We have 19 medicines that we could launch until the end of the decade.

Speaker #7: So very full late-stage pipeline. But we are really progressing well in our R&D excellence initiative across all different dimensions. If I just look at the output we have in research, it has significantly increased versus three years ago.

Speaker #4: So very late-stage pipeline. But we are really progressing well in our R&D excellence initiative across all different dimensions. If I just look at the output we have in research, it has significantly increased versus three years ago.

Speaker #7: If we and we also measure, for example, also speed of trial recruitment, speed of trial closure, the white spaces between the different phases of development, etc., etc.

Speaker #4: If we and we also measure, for example, also speed of trial recruitment, speed of trial closure, the white spaces between the different phases of development, etc., etc.

Speaker #7: And we see a significant progress here as well. Also in terms of relocation of our resources, within R&D, we've now relocated and brought out efficiencies in our organization.

Speaker #4: And we see a significant progress here as well. Also in terms of relocation of our resources within R&D, we've now relocated and brought out efficiencies in our organization of about 1.3 billion and we could allocate that to all these phase three trials into other parts of our pipeline.

Speaker #7: Of about 1.3 billion. And we could allocate that to all these phase three trials into other parts of our pipeline. I mean, I mentioned one example of that in the past.

Speaker #7: For example, we negotiated with contracts with CROs in the past. We were quite fragmented in that. We negotiated new contracts which gives us a couple of hundred million.

Speaker #4: I mean, I mentioned one example of that in the past. For example, we negotiated contracts with CROs in the past. We were quite fragmented in that.

Speaker #7: Another one that I already mentioned in the past was flat iron used to make losses of close to 250 million. We are now profitable with flat iron.

Speaker #4: We negotiated new contracts which gives us a couple of hundred million. Another one that I already mentioned in the past was flat iron used to make losses of close to 250 million.

Speaker #7: These are all things that we could reallocate in terms of money. So you can see that we are really going after inefficiencies in the organization and making sure that we put money behind the project.

Speaker #4: We are now profitable with Flatiron. These are all things that we could reallocate in terms of money. So you can see that we are really going after inefficiencies in the organization and making sure that we put money behind the project.

Speaker #7: Now, that doesn't mean that we don't we won't do any more BD or that we don't want to do BD. But we are very disciplined when it comes to BD.

Speaker #4: Now, that doesn't mean that we don't we won't do any more BD. Or that we don't want to do BD. But we are very disciplined when it comes to BD.

Speaker #7: We always make very detailed due diligence. We always have material transfer agreements, where we really test the molecules in our own hands. These are all things that I would say where I've seen other companies lose a bit of discipline in this space.

Speaker #4: We always conduct very detailed due diligence. We always have material transfer agreements, where we really test the molecules in our own hands. These are all things where I would say I've seen other companies lose a bit of discipline in this space.

Speaker #7: But we don't do that. And maybe it's also because we are not with the back against the wall. And we are not on the same level of pressure as maybe some others.

Speaker #4: But we don't do that. And maybe it's also because we are not with our backs against the wall, and we are not under the same level of pressure as maybe some others.

Speaker #7: So you will continue to see us doing deals but really deals that make sense and also make financial sense and where our team negotiates well.

Speaker #4: So you will continue to see us doing deals, but really deals that make sense and also make financial sense. And where our team negotiates well.

Speaker #7: I mentioned that in my presentation. Most of the time when we want to deals, we're not the highest bidder in terms of money, but we bring other things like expertise, to the table and we are trusted partner.

Speaker #4: I mentioned that in my presentation. Most of the time, when we want to do a deal, we're not the highest bidder in terms of money, but we bring other things like expertise to the table, and we are a trusted partner.

Speaker #7: And I think these are all elements that also are playing in our favor. So you will continue to see that kind of behavior from our side.

Speaker #3: Very good. Luisa, your questions answered?

Speaker #4: And I think these are all elements that also are playing in our favor. So you will continue to see that kind of behavior from our side.

Speaker #9: Perfect. Thank you.

Speaker #1: Thanks, Luisa.

Speaker #3: Then we have questions coming from Emmanuel Papadakis, Deutsche Bank.

Speaker #5: Very good. Luisa, are your questions answered?

Speaker #8: Perfect. Thank you.

Speaker #8: Thank you for taking the questions. I'll try to be brief. Maybe a follow-up on Jurodestrant pricing, given we're getting a little closer to commercialization.

Speaker #1: Thanks, Luisa.

Speaker #5: Then we have questions coming from Emanuel Papadakis, Deutsche Bank.

Speaker #8: Certs have launched above 300,000 dollars in metastatic. That seems a little prohibitive for broad adjuvant. Access. So we've seen examples in the past where you've been prepared to make concessions to ensure that.

Speaker #2: Thank you for taking the questions. I'll try to be brief. Maybe a follow-up on Jurodestrant pricing given we're getting a little closer to commercialization.

Speaker #2: Surge of launched above 300,000 dollars in metastatic. That seems a little prohibitive for broad adjuvant. Access. So we've seen examples in the past where you've been prepared to make concessions to ensure that.

Speaker #8: Could you just give us some latest thoughts on pricing direction? Should we see approval at the end of November? Then maybe a follow-up on Zimosimig, given the official start of the phase three, the head dead.

Speaker #2: Could you just give us some latest thoughts on pricing direction? Should we see approval at the end of November? Then maybe a follow-up on Zymosimig, given the official start of the Phase III, the head-to-head.

Speaker #8: It looks like Henry, but can be used discretion the physician in terms of frequency and if I recall, median ABRs were pretty close to zero.

Speaker #2: It looks like Henry, but it can be used at the discretion of the physician in terms of frequency. And if I recall, median ABRs were pretty close to zero.

Speaker #8: So you confident in showing superiority on the primary endpoint, or is this more about showing improvement on secondaries? And perhaps you could also just remind us your latest thoughts on the clinical significance of anti-drug antibodies we saw in phase two.

Speaker #2: So, are you confident in showing superiority on the primary endpoint, or is this more about showing improvement on the secondaries? And perhaps you could also just remind us of your latest thoughts.

Speaker #8: Thank you.

Speaker #1: Yeah. Great. So obviously, we won't comment on pricing prior to launch. We don't ever do that with any of our products. I will say that I think you can expect us to do what we have done in the past, which is to make a reasonable pricing decision based on the clinical benefit that our medicine provides.

Speaker #2: On the clinical significance of anti-drug antibodies, we saw in phase two. Thank you.

Speaker #1: Yes, great. So, obviously, we won't comment on pricing prior to launch. We don't ever do that with any of our products. I will say that I think you can expect us to do what we have done in the past, which is to make a reasonable pricing decision based on the clinical benefit that our medicine provides.

Speaker #1: In terms of Hemlibra, so we do have multiple dosing frequencies approved in the label. So Q4. So I mean, that the patients and physicians can choose what their dosing frequency is.

Speaker #1: In terms of Hemlibra, so we do have multiple dosing frequencies approved in the label. So Q2 and Q4. So I mean, that the patients and physicians can choose what their dosing frequency is.

Speaker #1: We haven't actually commented on the head-to-head versus whether the head-to-head with Hemlibra is either superiority or inferiority. At this point. But we do believe that there is an opportunity for that greater durability and convenience to be very meaningful to patients in the future.

Speaker #1: We haven't actually commented on the head-to-head—whether the head-to-head with Hemlibra is either superiority or inferiority—at this point. But we do believe that there is an opportunity for that greater durability and convenience to be very meaningful to patients in the future.

Speaker #1: Those certainly that can't be the only thing that we bring. In terms of ADAs in the phase one, two, the ADAs had no impact on the pharmacokinetic efficacy or safety and didn't have any cross-reactions.

Speaker #1: So at this point, we're not viewing them as clinically meaningful. But obviously, we do continue to monitor.

Speaker #1: So, at this point, we're not viewing them as clinically meaningful. But obviously, we do continue to monitor.

Speaker #3: Emmanuel, kind of.

Speaker #8: Thank you.

Speaker #3: All right. Good. And we move on. Next questions go to Peter Verdult from BNP.

Speaker #5: Emanuel, kind of.

Speaker #2: Thank you.

Speaker #5: All right. Good. And we move on. Next questions go to Peter Fadult from BNP.

Speaker #5: Yeah. Thanks, Bruno. Peter Verdult here, BNP Paribas. Just two for Theresa. Just back on Jurodestrant. Huge potential, but also Rosh's first major launch in a post-MFN world.

Speaker #6: Yeah. Thanks, Bruno. Peter Fadult here, BNP Paribas. Just two for Teresa. Just back on Jurodestrant. Huge potential, but also Roche's first major launch in a post-MFN world.

Speaker #5: Now, I heard for answer to the last question, so I'm not going to ask you for numbers. Theresa, but could you maybe just remind us what the ballpark USX, US net price difference is for your current on-market breast cancer franchise and how your US pricing strategy might evolve for Jurodestrant in this new environment that the industry is operating in?

Speaker #6: Now, I heard grants to the last question, so I'm not going to ask you for numbers, Teresa, but could you maybe just remind us what the ballpark US ex-US net price difference is for your current on-market breast cancer franchise?

Speaker #5: So that's question number one. Realize you're going to go into specifics, but just want to understand that a little bit better. And then secondly, on a BC, we share your enthusiasm on 868, but I'm just struggling to see how you're going to differentiate your oral GLP-1 offering given what's currently on the market.

Speaker #6: And how are your US pricing strategy might evolve for Jurodestrant in this new environment that the industry is operating in? So that's question number one.

Speaker #6: I realize you're going to go into specifics, but I just want to understand that a little bit better. And then secondly, on ABC, we share your enthusiasm on 868, but I'm just struggling to see how you're going to differentiate your oral GLP-1 offering given what's currently on the market.

Speaker #5: And on Petri, I'm just struggling to see how you're going to position that asset given data from other Amlin targeting compounds who also have good weight loss at lower doses with lower or with good tolerability.

Speaker #6: And on Petri, I'm just struggling to see how you're going to position that asset given data from other Amulin targeting compounds who also have good weight loss at lower doses with lower or with good tolerability.

Speaker #5: And I just want to understand, or do you have a better understanding as to why there was just no dose response seen in the phase two Petri dataset?

Speaker #5: Thank you.

Speaker #1: Yep. Great. So in terms of your adjustment, you're right. I won't give you specifics. I can tell you that in general, our USX US corridors are tighter than maybe some of our competitors have been over time.

Speaker #6: And I just want to understand, or do you have a better understanding as to why there was just no dose response seen in the phase two Petri dataset?

Speaker #6: Thank you.

Speaker #1: Yep. Great. So in terms of Jurodestrant, you're right. I won't give you specifics. I can tell you that in general, our USX, US corridors are tighter than maybe some of our competitors have been over time.

Speaker #1: We've always been quite disciplined about that. As always, when we price a new molecule, we look at three things. We look at what is the clinical value that our medicine brings, what is the ability of systems and patients to pay, and what is required in order to continue to return enough value to the company so that we can continue to deliver innovations for patients.

Speaker #1: And that is the pricing philosophy that we will continue to follow. So stay tuned. But just to reiterate, it is our intention to bring Jurodestrant to patients around the world, and we look forward to working with governments to make that happen.

Speaker #1: In terms of 996, I mean, the data will tell us. So I think we are we're excited to see the phase two data to share that.

Speaker #1: But we remain confident that given the design attributes of CT996, that we will have a competitive profile and that we'll be able to bring it to market as quickly as possible when you see the data when we are able to share the data when we have it in hand.

Speaker #1: But we remain confident that given the design attributes of CT996, that we will have a competitive profile. And that we'll be able to bring it to market as quickly as possible when you see the data when we are able to share the data when we have it in hand.

Speaker #1: We'll be able to have a more robust conversation about that. I mean, in terms of Petra Lentide, again, I just think in every conversation that I had at ADA with thought leaders, there was a real concern for the level of tolerability that patients were could really reasonably tolerate.

Speaker #1: We'll be able to have a more robust conversation about that. I mean, in terms of Petrolentide, again, I just think in every conversation that I had at ADA with thought leaders, there was a real concern for the level of tolerability that patients could really reasonably tolerate.

Speaker #1: Over time, 50% of patients don't complete therapy as you would want them to on standard treatments. They don't get to max doses. And so this has always been the promise of the Amlin class.

Speaker #1: Over time, 50% of patients don't complete therapy as you would want them to on standard treatments. They don't get to max doses, and so this has always been the promise of the Amulin class.

Speaker #1: And I think we see Petra Lentide delivering here a very reasonable profile and one that's exciting. And I think it was exciting at ADA for people to think about where this could be used, how it could be used, and the different patient populations we could potentially go into.

Speaker #1: And I think we see Petrolentide delivering here a very reasonable profile and one that's exciting. And I think it was exciting at ADA for people to think about where this could be used, how it could be used, and the different patient populations we could potentially go into.

Speaker #1: So I'm excited about Petri. I think that it actually has the potential to be a really meaningful option for patients. And I think I mentioned this already in my overall comments, but the 996 data that will be available later this year.

Speaker #1: So it won't be too much longer before we can have a more robust conversation about why we think 996 might be differentiated.

Speaker #3: I think also to add, I think on the missing dose response, which you were asking about, Petra Lentide, I think this phenomenon has been seen before.

Speaker #1: So, it won't be too much longer before we can have a more robust conversation about why we think 996 might be differentiated.

Speaker #5: I think also to add, I think on the missing dose response, which you were asking about Petrolentide, I think this phenomenon has been seen before.

Speaker #3: With other gut hormones. And I think we commented on it in the IR call. So there's probably a biology behind, which we don't fully understand.

Speaker #3: That's all we can say.

Speaker #5: With other gut hormones. And I think we commented on it in the IR call. So there's probably a biology behind which we don't fully understand.

Speaker #1: Yeah. At this juncture. Thanks, Bruno. Sorry, I forgot that point.

Speaker #3: Okay. And we move on. Next question go to Rajesh Kumar from HSBC.

Speaker #5: That's all we can say.

Speaker #1: Yeah. At this juncture.

Speaker #6: Thank you.

Speaker #1: Thank you, Bruno. Sorry. I forgot that point.

Speaker #5: Okay. Then we move on. Next question goes to Rajesh Kumar from HSBC.

Speaker #8: Hi. Good afternoon. Got two questions for Teresa, actually. I know it's very it's next to impossible to predict the future, but if you were to speculate the uptake curve for Jurodestrant, would that be a very fast uptake in your opinion, or would that be a more gradual one?

Speaker #2: Hi. Good afternoon. Got two questions for Teresa, actually. I know it's very it's next to impossible to predict the future, but if you were to speculate the uptake curve for Jurodestrant, would that be a very fast uptake in your opinion, or would that be a more gradual one?

Speaker #8: And would that differ between US and Europe? That's my first question. The second question is around obesity. I fully appreciate that your portfolio has something for everyone.

Speaker #2: And would that differ between US and Europe? That's my first question. The second question is around obesity. I fully appreciate that your portfolio has something for everyone.

Speaker #8: And that looks very interesting from a scientific perspective. As we are learning from the current generation of anti-obesity medications, these are subscription models direct-to-consumer seems to be a much bigger part of the equation.

Speaker #2: And that looks very interesting from a scientific perspective. As we are learning from the current generation of anti-obesity medications, these subscription models—direct to consumer—seem to be a much bigger part of the equation.

Speaker #8: So when you think about the commercialization strategy, are you thinking in terms of efficacy, in terms of product design, in terms of what works for reimbursement channels only, or are you thinking it from a consumer product design as well?

Speaker #2: So when you think about the commercialization strategy, are you thinking in terms of efficacy, in terms of product design, in terms of what works for reimbursement channels only, or are you thinking it from a consumer product design as well?

Speaker #8: Because in reality, at the moment, about half of the patients in the US seem to be paying out of pocket. And they probably don't want to understand all the scientific gobbledygook we love.

Speaker #2: Because in reality, at the moment, about half of the patients in the US seem to be paying out of pocket. And they probably don't want to understand all the scientific gobbledygook we love.

Speaker #8: They probably want to hear things through I want to pay this much. I want to lose this much weight, right? Tolerability is excellent, but what's your thought process on the commercialization strategy?

Speaker #2: They probably want to hear things like, 'I want to pay this much,' 'I want to lose this much weight,' right? Tolerability is excellent, but what's your thought process on the commercialization strategy and how that fits within Roche's organization?

Speaker #8: And how that fits within Roche's organization?

Speaker #1: Yeah. Great. Two good questions. So in terms of the uptake curve, I think I alluded to this. A little bit earlier, I mean, as with any chronic therapy, sales build over time, right?

Speaker #1: Yep, great. Two good questions. So, in terms of the uptake curve, I think I alluded to this a little bit earlier. I mean, as with any chronic therapy, sales build over time, right?

Speaker #1: So you people get on therapy, they stay on therapy, and then those curves build over time. So I think there are a number of patients who are out there who are ready for Jurodestrant and waiting for it.

Speaker #1: But those really big sales numbers will take some time to generate as we have to build up with adherence and compliance. We have to build sales up over time.

Speaker #1: So just to kind of give that a little bit of a framing. And to answer your question, yes, I think we, as we think about commercialization without going into specifics, we understand that there is a reimbursable market.

Speaker #1: So just to kind of give that a little bit of a framing. And to answer your question, yes, I think as we think about commercialization without going into specifics, we understand that there is a reimbursable market.

Speaker #1: I mean, that's certainly something that NS Epitide is probably very well-suited for. But we also understand that there is a large direct-to-consumer market, and we are absolutely thinking creatively about how we can reach patients wherever they are accessing their medicines and however they are thinking about managing their health.

Speaker #1: I mean, that's certainly something that NS Epitide is probably very well suited for. But we also understand that there is a large direct-to-consumer market, and we are absolutely thinking creatively about how we can reach patients wherever they are accessing their medicines and however they are thinking about managing their health.

Speaker #1: So just know that we are not approaching this in a traditional Roche way.

Speaker #8: Okay. So you think you're competitive advantage will not only come from what the product clinical profile is, but in terms of how you commercialize it as well.

Speaker #2: Okay. So you think you're competitive advantage will not only come from what the product clinical profile is, but in terms of how you commercialize it as well.

Speaker #1: I think in the obesity market, those things have to be two halves of a coin or two sides of a coin, right? You have to be able to have the clinical differentiation, and then you have to be able to show the value.

Speaker #1: I think in the obesity market, those things have to be two halves of a coin or two sides of a coin, right? You have to be able to have the clinical differentiation and then you have to be able to show the value.

Speaker #1: From a clinical perspective, but you also have to create a consumer experience that is that meets the customer where they're at.

Speaker #8: And what skill do you have in the organization to do that in terms of have you hired people around that, or is it an existing skill or muscle within the organization somewhere?

Speaker #1: From a clinical perspective, but you also have to create a consumer experience that meets the customer where they're at.

Speaker #2: And what skill do you have in the organization to do that, in terms of have you hired people around that, or is it an existing skill or muscle within the organization somewhere?

Speaker #1: Yep. So since we have entered into the cardiovascular franchise, we have hired several hundred people from the outside, specifically with the kinds of experiences that we have not had historically.

Speaker #1: Yep. So since we have entered into the cardiovascular franchise, we have hired several hundred people from the outside specifically with the kinds of experiences that we have not had historically.

Speaker #1: But we also have some great experience to lean on in the diagnostics organization in CVRM that is much more consumer-oriented. And we're certainly taking full advantage of everything that Matt has to offer.

Speaker #3: Yeah. Absolutely. I wanted to actually underline that point. I mean, in diagnostics, we are the leader in this space. And we have a lot of direct access to type 2 diabetics, type 1 diabetics, so a lot of people moving also onto our MySugar platform, etc.

Speaker #5: Brilliant. Absolutely. I wanted to actually underline that point. I mean, in Diagnostics, we are the leader in this space. And we have a lot of direct access to type 2 diabetics, type 1 diabetics, so a lot of people moving also onto our mySugr platform, etc.

Speaker #3: So we do have a lot of access and know-how in that space. And so I think we're actually quite well positioned. And the feedback that we are getting from KLs is that they actually are quite excited about having both pharma and diagnostics at the table.

Speaker #5: So we do have a lot of access and know-how in that space. And so I think we're actually quite well positioned. And the feedback that we're re getting from KLs is that they actually are quite excited about having both pharma and diagnostics at the table.

Speaker #1: Yep. Absolutely. It's a real differentiator, actually.

Speaker #3: Yeah.

Speaker #8: Thank you. Thank you very much.

Speaker #3: Very good. So and then we have the final questions here coming from Michael Leuchten from Jefferies, and then we will close the call. Michael, please.

Speaker #1: Yep. Absolutely. It's a real differentiator, actually.

Speaker #5: Yeah.

Speaker #2: Thank you. Thank you very much.

Speaker #5: Very good. So and then we have the final questions here coming from Michael Leuchten from Jefferies, and then we will close the call. Michael, please.

Speaker #3: Michael? Doesn't look like that he's in the call anymore. Then with that, I think we are ready to close the call. Over to you, Thomas.

Speaker #5: Michael? Doesn't look like that he's in the call anymore. Then with that, I think we are ready to close the call. Over to you, Thomas.

Speaker #5: Yeah. Thank you very much. And thank you for attending the call today, and thanks to the team. We have great momentum in terms of sales.

Speaker #5: We have even better momentum in terms of profitability. If you look at the last couple of years, we always delivered what we said. And what you can now see is a significant amount of pipeline progress.

Speaker #3: Yeah, thank you very much. And thank you for attending the call today, and thanks to the team. We have great momentum in terms of sales.

Speaker #3: We have even better momentum in terms of profitability. If you look at the last couple of years, we always delivered what we said. And what you can now see is a significant amount of pipeline progress.

Speaker #5: Pipeline progress that gives us visibility in terms of sales growth for the next years and into the next decade. But even more exciting is then the pipeline readouts between '27 and '29 that are going to set up really well for future growth in into the next decade and beyond.

Speaker #3: Pipeline progress gives us visibility in terms of sales growth for the next years and into the next decade. But even more exciting are the pipeline readouts between 2027 and 2029 that are going to set us up really well for future growth into the next decade and beyond.

Speaker #5: And we'll continue to build on our pipeline and also with internal activities and external activities. And one thing I can say, we will deliver.

Speaker #3: And we'll continue to build on our pipeline and also with internal activities and external activities. And one thing I can say, we will deliver.

Half Year 2026 Roche Holding AG Earnings Call

Request DemoDemo

Roche

Earnings