Speaker #1: Results presentation. My name is Matti Heinonen, I'm the CEO of the company, and today I will go through the results and updates with our CFO, Njaal Kind, our Chief Scientific Officer, and interim R&D lead, Aleksandra Havelka.
Speaker #1: And our Chief Growth Officer, and Head of Business Development, Markus Jaquemar. We have good news today: we have also a lot of content, so let's get into the presentation.
Speaker #1: Here you see the important required disclaimers, and I start, again, by talking through the Q3 and year-to-date highlights, before giving this time quite short company updates, or presentation, because we have, like said, a lot to share with you later.
Speaker #1: So Q3 performance is best described by record sales, and significantly more new development projects initiated. Q3 sales were highest ever quarterly sales at 51.1 million NOK, which is 22% growth, or 30% revenue currency-neutral organic growth.
Speaker #1: Our sales to the US, the strategic focus area, were 13.3 million, up from 10.8 last year, same quarter. But not only did we have very good top-line performance, we also had very good profitability, with EBITDA at 13.6 million, up from 8.4 in Q3 last year, and gross margin at 61%.
Speaker #1: Some additional highlights: I and we were really pleased to see that both Europe and the US delivered significant growth, 24 and 23 percent respectively, and the Buurman collaboration FCAL and FPELA also grew really well, and FCAL Turbo sales were up 23% in Q3.
Speaker #1: Also, Sistafin C had a strong quarter with growth of 19%. Today we will spend also more time to talk about our R&D strategy, and the pipeline updates, and I'm really pleased to inform you that we have really demonstratable progress in executing the new R&D strategy, with 7 assays and 1 technology development project active.
Speaker #1: Year-to-date, again, we have very good performance, and we are on track to deliver another very successful year for Gentian Diagnostics. Sales are after 9 months almost at 145 million NOK, which is 11%, up from last year, or 17% currency-neutral organic growth.
Speaker #1: Sales to the US are at 32.3 million NOK, and that is represents a really great growth of 49% year over year. EBITDA is at 26.7 million, and gross margin at 56%.
Speaker #1: Njaal will go more into the financials after my starting part. Then, if we talk about the products, again, FCAL and FPELA, so the Buurman franchise, is the key growth factor, or growth driver, for Europe.
Speaker #1: Europe is up 15% year-to-date, and also although despite the flat year-over-year growth for Sistafin C, the other most important product for us, we have a strong order book for Q4, and we expect the product to be back on track and reaching the expected year-over-year growth.
Speaker #1: So with these highlights, and like said, we come back to all these in more detail soon. Just a couple of words about Gentian Diagnostics.
Speaker #1: Many of you know us well, but there may be some people in the audience who are not that familiar with Gentian, so we are a listed medtech company targeting a sizable segment of the diagnostic market, which has 5 to 10% annual growth.
Speaker #1: We offer appealing value proposition to our customers, we operate through lean business model, and we have focused growth strategy. We have strong focus on in-house capabilities, especially R&D and operations, and like you can see from the graphs on the left and right-hand side, we are and have been delivering already for years very nice profitable growth.
Speaker #1: And again, as always, very important: our success is rooted on high-quality standards, IVDR and ISO certified, and focus on ESG. The long-term growth drivers for Gentian and value creation is based on these: we have 5 established products, and all of them have a lot of growth potential and untapped sales potential, and the first thing is to maximize the sales of existing products.
Speaker #1: Secondly, we are still working to prove the clinical relevance of our inflammatory diagnostic test for gall protectin, called GGAL, and then in addition, we want to bring on average 1 new diagnostic marker or test for per year, but bring a steady stream of new tests to the market.
Speaker #1: And sign on average 1 contract per year with our global partners, or new partners. We are aiming to stabilize the gross margin in the 55 to 60% range.
Speaker #1: Now we are at 56 year-to-date, as you just saw, and the aspiration for long-term EBITDA margin is 40%. And how we will reach these is to live through our new vision, which is that we will be the innovation partner for global IVD companies.
Speaker #1: With this one, I conclude my opening and highlights, and I hand over now to Njaal, our CFO, who will talk about the regional performance and key financials, and I come back later for the R&D part.
Speaker #1: Njaal.
Speaker #2: All right, thank you, Matti. Good morning. I will run through the numbers with you. So today we announced revenues of 51.1 million NOK for the third quarter, which is a new record.
Speaker #2: And we have on the geographical side, we see that sales to Europe reached 33 million, which is up 24% in the third quarter. And year-to-date growth of 15%.
Speaker #2: Looking at these product categories, we see that Sistafin C had a good quarter, with 19% growth in the quarter. Year-to-date, it is flat, that is largely due to Asia, where we see that in China we have some lower sales than we had last year, while in the US we see good growth.
Speaker #2: And there you can see also in the US, growth goes from 10.8 million to 13.3 million. In the third quarter, and year-to-date, we are up almost 50% on the sales in the US.
Speaker #2: So US overall good performance. As Matti mentioned, the FCAL, which we sell in partnership with Buurman, has had a strong performance, both in the quarter and year-to-date.
Speaker #2: e. Almost 22% or 23% in the third quarter, and 22% growth year-to-date. So that is good. When it comes back to Sistafin C, I'm shifting a little bit back and forth here, I see.
Speaker #2: We expect growth in the fourth quarter, so that overall for the year as a whole, we expect growth for Sistafin C. Markus, we'll give you even more details on the product level when he comes after me here.
Speaker #2: Running through on the cost side, quite stable cost, as you can see. No major shifts on the fixed cost, which is SG&A. On R&D, we see an uptick, and that is due to higher activity.
Speaker #2: However, if we look at the year-to-date OPEX, and we adjust for the fact that last year we capitalized 5.5 million in R&D expenses on the balance sheet, if we adjust for that, in fact, the underlying OPEX, or the expenses, are up by only 4.5% year-to-date.
Speaker #2: Which is acceptable, taking into account the growth in revenues. Going forward, we will see a higher activity level for R&D, which we will talk about later today.
Speaker #2: And that will, of course, have an effect on the cost. Gross margin, very strong gross margin this quarter, 61%. And year-to-date, gross margin of fixed 56%.
Speaker #2: When it comes to the quarter isolated, we have had very good production, in the quarter, and that flows directly into the gross margin, obviously.
Speaker #2: And of course, with a favorable geographical sales mix, also help. Here, China is a low-margin market than the US. As we have stated before, our ambition is to be in the 55 to 60% range when it comes to gross margin.
Speaker #2: And you see that year-to-date, we are there. We don't control the currencies, as you know, we are not hedged. So a strengthening NOK is not to our advantage, and that is something which gives us a little bit of headwind, as done that so far this year, and seems to continue.
Speaker #2: EBITDA, 13.6 million, obviously with low cost increase and a good gross margin. That comes I would here highlight that last year we had capitalization of development expenses of 5.5 million, which we are not having this year.
Speaker #2: So if we were to adjust for that, this would in fact be a record quarter on the EBITDA as well. The margin, quite strong, 26.6% in the third quarter.
Speaker #2: And 18.4% year-to-date. So we are quite satisfied with the development on the EBITDA. Few words on the balance sheet. We have accrued or accumulated 12.7 million in free cash flow in the quarter, that has not been any major working capital movements.
Speaker #2: So the cash is at 91.4 million, that is an increase from 86.6 in the same quarter last year. Also to mention here is that we paid a dividend in the second quarter of 9.3 million, so that was returned back to the shareholders.
Speaker #2: When it comes to the capex, 2.2 million, that is in this quarter equipment capex, as we are not capitalizing any amounts on development projects.
Speaker #2: So this is equipment that will help us grow and increase productivity going forward. I will be back with the Q&A so please use the questions box if you have any questions.
Speaker #2: And I will now leave the floor to Markus that will provide us with a more detailed product update. Markus?
Speaker #1: Thank you so much, Njaal. And good morning from my side as well. Happy to provide some additional flavor to our product performance. Over the last nine months or the last quarter.
Speaker #1: And let's start with our Gentian branded signature product, Sistafin C. And as mentioned before, we had a very, very strong Q3. What you see here on the slide is actually our quarterly performance, over the last few years.
Speaker #1: And this year we had a weak Q1, but we have actually delivered two record quarters for Sistafin C in a row in Q2 and Q3.
Speaker #1: And as already mentioned, we have a strong order book, which means we believe the fourth quarter also will deliver strong results. Now, what's the reason and what's behind the growth that we have?
Speaker #1: First of all, our investment in the US is paying off. And we have seen the strong results in the US, as Njaal has mentioned before.
Speaker #1: We see very strong increase of demand by our largest partner in the US as well. The third reason is a continued increase of awareness for using Sistafin C, testing chronic kidney disease patients.
Speaker #1: And the fourth reason is that some time ago, a year ago, there was a new global guideline implemented, KDGO, and that also favored the adoption of Sistafin C testing.
Speaker #1: And we strongly believe that this is actually going to continue. And we should see strong performance by our Sistafin C product going forward. Our second product performing really well, actually, FK Turbo, with our commercial partner Buhlmann.
Speaker #1: You've seen tremendous growth, outstanding growth, not only in Q3 but also over the last nine months. At very high levels quarterly, as you can see on the slide here.
Speaker #1: The growth itself is driven certainly by two reasons. First of all, acquisition of new accounts, but at the same time, existing accounts actually increase the number of tests that they're performing.
Speaker #1: And that's obviously a strong addition. And contributing to the strong performance that we have, through the commercial efforts, of Buhlmann and this is actually happening in all the regions across the globe.
Speaker #1: So very strong performance. And positive for our numbers in Q3. The third category, the other products, which includes pancreatic LSDs, which is actually also a product commercialized by our partner Buhlmann.
Speaker #1: Our veterinary product, K9 CRP. And our GCal product, Serum Plasma Calprotectin. When we look at Q3, we've seen not a strong growth, but within the group, we've actually seen very good growth from pancreatic LSDs.
Speaker #1: But also from CCRP, while GCal had somewhat lower sales in Q3. What is notable and important to mention is that FPLA is a little bit kind of the little sister product of Calprotectin.
Speaker #1: And what Buhlmann is seeing is that existing Calprotectin customers are actually increasing the usage of pancreatic LSDs, which actually can be tested out of the same tube.
Speaker #1: In fact, one of the benefits of our and Buhlmann's solution for stool testing is the fact that it is a very high level of automation, which is very appreciated by the customers within the market.
Speaker #1: Finally, our third-party products, those are the products which are commercialized in the Nordics. Outside of the Gentian portfolio. And in fact, the third quarter with 5.8 million NOK was the highest summer performance, if you want, ever, for those products.
Speaker #1: Typically, the summer months are a little bit weaker. Due to timing and obviously testing requirements, during that period. But Q3 2026 was actually very strong, with 5.8 million.
Speaker #1: And so we continued the solid demand for all the products that are part of the portfolio. And executed and delivered by our Nordics team.
Speaker #1: With that, I'll turn it over to back to Matti. For the next topic.
Speaker #2: Thank you, Njaal and Markus. So those were the numbers and results. So as you see, very strong product and regional performance. And now we move to the R&D and product development pipeline update.
Speaker #2: Before I hand over to Aleksandra, I talk about once more about our new R&D strategy, which is there to accelerate new product launches and to support our long-term value creation.
Speaker #2: Our R&D strategy nowadays builds on three pillars. And it is accelerated or they are accelerated product launches, expansion in point-of-care assay market, and investment in something we call high sensitivity technology.
Speaker #2: To be successful, to compensate the pipeline and also we can be honest that we are not very happy with the recent number of launches, which are not many.
Speaker #2: And to really deliver the sustained growth and also the expectation from the market, we need much more product launches. And to do that, we need a broader product pipeline.
Speaker #2: And the broader pipeline will be and is, as you can see, a combination of in-house innovation and partner-driven development projects. In addition, in our new strategy, we are also officially or formally focusing on veterinary diagnostics.
Speaker #2: As a new growth driver. Another new adjacent growth driver is the point-of-care assay market. So there are companies and platforms that use the same turbidometric PETIA technology, and we do traditionally for high throughput core labs.
Speaker #2: But it seems that our tests can be used almost directly or with very little adaptations also in these point-of-care instruments. So this is something in our strategy that we see as an additional growth driver.
Speaker #2: But I want to emphasize that we are not pivoting our strategic focus away from the core lab where we are strongest. And then the third and longer-term growth driver is our investment in high sensitivity technology.
Speaker #2: The key limitation of traditional PETIA assays is the sensitivity and that means that there's a limited number of new product ideas available. Through our initial exploratory work, we have been already seeing up to 100 times improvement in assay sensitivity.
Speaker #2: Which can potentially bring approximately 100 new biomarkers within the reach. And this would be really a game changer for Gentian and for the turbidometric market.
Speaker #2: Then a couple of words about the more dynamic approach to pipeline. That comes with a couple of, if not downsides, but at least things I want to mention.
Speaker #2: First of all, this is something I told and spoke in the Q2 report. And I will probably mention this also in the future. That we are not expecting and one should not expect all development projects that we present to progress to commercial launches.
Speaker #2: And this is the consequence of us running multiple many more projects in parallel than we used to. And we use so-called prototype-driven model, where we are checking early the technical feasibility commercial potential and partner commitment for each product idea.
Speaker #2: And without those, all boxes ticked, we will not move that project all the way to registration. What will be the success rate? That we don't know.
Speaker #2: We are early in this model. And time will tell how many we can take all the way to the end. But as you saw, we have eight projects active running at the moment.
Speaker #2: So even if some of those are successful within a couple of years, that will be a clear step change to product launches by Gentian compared to the past.
Speaker #2: Second thing is something that I know you investors, the market are really hungry, is details and concrete examples of the pipeline. And believe me, we would love to tell you all the details we know.
Speaker #2: But there are a couple of things we need to consider. And I hope you have patience wait for them. One is that too early disclosure may be restricted because it may be competitive and sensitive information that we or and or our partners do not want to share too early.
Speaker #2: Second is that, as you know, we have typically at least one, sometimes three partners in these discussions and developments. So the confidentiality obligations under the partner agreements may further limit our external communication.
Speaker #2: So I promise we will always share with you what is available. And that we can share. But I am really asking also for your patience that we can't always share the names of the companies or the biomarkers that we are working with.
Speaker #2: And that happens for good reasons. With this one, I hand over to Aleksandra. That will take you through the pipeline update. Aleksandra.
Speaker #1: Sure, thank you, Matti. Good morning, everyone. My name is Aleksandra Havelka. I'm Chief Scientific Officer in Gentian. Since June this year, I'm serving as interim head of R&D, so today I have the pleasure to report on an update related to our product pipeline and tell you about the progress we made in the third quarter.
Speaker #1: As Matti mentioned, partner-driven development is very important part of our strategy. We have previously reported about IVD partner. And the collaboration in development of an assay that will fill a gap in this partner's portfolio.
Speaker #1: This project is progressing from an early development phase to a more advanced development. And is remains on track for a planned launch in Q4 2027.
Speaker #1: We have also previously reported a collaboration with Assange reagents. The aim with this collaboration in to transfer several assays to turbidimetric platforms to PETIA technology and made these assays available on high throughput clinical chemistry analyzers.
Speaker #1: This projects are also progressing very well. And we will I will come back to this a little bit later. In the field of veterinary diagnostics, we have been approached by a key player in that field with a proposal for development of two assays in veterinary diagnostics.
Speaker #1: We have submitted a proposal for the paid development. And in third quarter, we have received quite positive feedback. So now we are waiting for financial and contractual arrangements to be finalized.
Speaker #1: In addition, we are also as Matti mentioned, working on a completely new technology. We call it high sensitivity technology. And we have a collaboration with a partner in the field of point of care who is interested to develop this technology together with us.
Speaker #1: And apply it to existing instrument platform. Our partner has started to work on the development of early instrument prototype. And we are together exploring this opportunity and are very, very excited because this is a step towards a development of new technology but also to a field of point of care diagnostics where we have not been active before.
Speaker #1: In addition to partner-driven development initiatives, we are also working on several projects that have been identified and initialized internally at Gentian. These projects are focusing on both improvement of our existing assays, but also on development of new PETIA opportunities.
Speaker #1: So product optimization we have existing assay. There we will improve the robustness of the assay and at the same time decrease the manufacturing cost with aim to improve margins.
Speaker #1: For this assay. Talking about new PETIA opportunities, we have we are working on a development of two new biomarkers. One of them will address liver disease.
Speaker #1: And this will be first in the market PETIA assay to assess liver disease and this assay will address growing clinical need which is driven by increased prevalence of this disease or in general of liver diseases.
Speaker #1: The other project focus is on a biomarker also with growing market demand. And this project will be a good fit and good expansion and complement of our existing product portfolio.
Speaker #1: In the next slide, you see the you have an overview over the assays and projects that we have been discussing. You also see the phase of the development.
Speaker #1: Exploration as proof of concept are early phases in the development of a product. And optimization verification and validation are more advanced stages of the project development or assay development.
Speaker #1: As you can see, our most advanced development is the assay mentioned in collaboration with IVD partner. Here we are entering a verification phase. The progress is moving with a very good the project is moving with good results.
Speaker #1: And we are committed to commercialization and launch within 12 to 18 months. We have two projects that are in optimization phase also quite late phase of the assay development.
Speaker #1: Assange collaboration where we aim to develop several assays and one existing product optimization which I mentioned before. And in a very early phase in the exploratory phase, we have four assays.
Speaker #1: Two assays for human diagnostics and two veterinary assays. And of course, a new technology high sensitivity technology and the step towards a new point of care diagnostic platform development.
Speaker #1: I would also like to mention that the timelines that I presented here are based on our current estimations they might be changed due to priorities partner involvement technical feasibilities regulatory impact and yeah as I said other priorities that may come in between these projects.
Speaker #1: So talking about spendings we have a slightly higher spending in third quarter compared to third quarter last year. 8.4 million. Knock in 2026 compared to 7.4 million knock in third quarter 25.
Speaker #1: This is of course explained by a higher activities and work on several projects in parallel. We are going further of course committed to discipline in prioritization, discipline in spending, in resource allocation, in efficient execution.
Speaker #1: And also we believe on a return of more than 20% of capital employed for new projects. Thank you. This was all from me.
Speaker #2: Thank you Alexandra. So just before we go to the Q&A, I want to summarize what we presented and you heard. So we have had a very good quarter three.
Speaker #2: This year record high sales with good EBITDA and gross margin development. And also year to date numbers are absolutely on track based on our expectations.
Speaker #2: To deliver another very successful year financially for Gentian Diagnostics. And in addition, as you saw, we have this more dynamic and broader pipeline approach which is a combination of in-house innovation and partner led or driven or partner collaboration projects.
Speaker #2: And as you saw from that illustration that Alexandra presented, and with a disclaimer like she said again these are current estimations and things can happen but in any case you can see that five or maybe six because the veterinary development is two projects in it.
Speaker #2: Can potentially be ready for regulatory approval within two years from now. Again things may happen like said but even if we get some of those through that would be a significant change to the historical launch success of Gentian Diagnostics and that is an absolute requirement for our future growth and a key goal for me and the whole organization.
Speaker #2: So with these good news we are ready to end the year and quarter four strongly.
Speaker #3: We expect to have a good year again. Let's see when we again talk next year. And of course, we are organizing ourselves, resourcing, and being flexible with the R&D projects and moving them on, on our own and with our partners as fast as we can.
Speaker #3: And then of course we are also getting ready with our Board of Directors to 2027. With this, I conclude the Q3 2026 presentation. Thank you, Njaal, Markus, Aleksandra.
Speaker #3: for your presentations and preparation work, and everybody else also here. And now it's time for questions and answers. And I see in fact we have a good number of questions there.
Speaker #3: So Njaal will come here to moderate the show and then we will step in.
Speaker #4: Yes, thank you, Matti. So for the Q&A, as you know, we are still live, so if you have any questions, please use the questions box.
Speaker #4: We do already have a few questions in, so let's go with them. I've taken some notes here. Yeah, first I think there are questions for me here on the raw material cost.
Speaker #4: You pointed out that the raw material cost has been flat, although the revenues have increased significantly. And the question is if we can quantify how much of that, let's say, yield which is specific to the good production that we have had this quarter.
Speaker #4: And I think what we can attribute to production yields is about $2 million NOC for the quarter, meaning that if we had had what we would consider as a normal quarter, we would have had approximately $2 million higher raw material cost.
Speaker #4: Then on top of that comes, of course, the geographic mix effect, which will explain the rest. Another, let's say, financial question here relates to the trade receivables.
Speaker #4: So yes, they are up compared to a year ago. We have about $32 million of receivables on the books. It was $18 million a year ago.
Speaker #4: And the question is, Do we expect this to come down as we said in July? Yes, we do expect it in absolute numbers to come down.
Speaker #4: But I think what is important to emphasize here is that our receivables are driven by a few quite large accounts, and it becomes a little bit technical.
Speaker #4: It depends a lot on when these large accounts order within the quarter. So if they order late in the quarter, we are not able to collect on that receivable, let's say, within the same quarter.
Speaker #4: So then the receivables tend to have a— be high in the balance by the end of the quarter. Another factor is that our sales are up by €10 million compared to last quarter, or the same quarter last year.
Speaker #4: So we do expect sort of that there is an underlying increase in the trade receivables. But the absolute level of €32 million is on the high side.
Speaker #4: What we have said, just to bring in all the elements here, is that we expect the working capital to be at around 30% of annualized sales.
Speaker #4: And if we look at that now, we are at, let's say, in the high 30s. So hopefully we will be able to manage the net working capital down to 30% over the next quarter or over the next 6 months.
Speaker #4: So that's on the raw material cost and receivables. Let's move to some of the sales questions and commercial questions. Yes, and you will just have to drag in the other people as you feel fit, Matti.
Speaker #4: So there is a question here which sort of highlights the fact that 74, almost 75% of our sales comes from cystatin C and FKAR.
Speaker #4: And the question is, when do we see a product coming into the portfolio or one of the other products in the portfolio that can contribute with more than 10% of the sales?
Speaker #3: So obviously the concentrated sales is something we want to change, and that's of course also the reason for the broad pipeline bringing more products in.
Speaker #3: I think one thing is that fortunately it's not only the other products that are growing, it's Nefpal and cystatin C are driving very strong growth, so it's difficult to catch up.
Speaker #3: them. So the other products, CCRP, Nefpela especially, they are the, the second-tier products sales-wise, which are both growing very well above sometimes. Nefpela is having this year very strong growth.
Speaker #3: CCRP had excellent year last year. So they are catching up, but also because of the 2 biggest products are growing really fast, the percentage number is, is not changing so quickly.
Speaker #3: But absolutely, we want to grow each and every of our products. Chigali is still, like we say, in market development, and we are generating new data, but the commercial performance is not yet there as we would like to.
Speaker #3: And then we do expect the new launches to start delivering from hopefully 2028.
Speaker #4: onwards. Great, thank you. Next question relates to the high sensitivity initiative that we have going, and the question is sort of broadly, what is the status on the commercial terms, the commercial agreement with a potential partner here?
Speaker #4: And more specifically, do we expect sort of a milestone payment on that initiative in 2026?
Speaker #3: So the latter part I can take that we don't expect this year milestone payments from that. We do have milestone payments already from that the most advanced development project, and then we hope also to start getting payments from the 2 veterinary development projects next year.
Speaker #3: Then I have to start by reminding that when overall these development projects and negotiations take time because typically we, we don't only negotiate something short-term.
Speaker #3: It is important for the partner or customer and us to have clarity longer term. So we are sometimes discussing the next 10, 20 years commercial terms.
Speaker #3: Price volumes, exclusivities, supply IP-related stuff, all that. So those are very large comprehensive documents and discussions, and sometimes Right, so tough ones. So it takes time.
Speaker #3: And then in addition, when we talk about new technology and instrument development, that is even slower than assay development. So at the moment, this partner company is— it has started and are putting resources this year and, and a bunch of these next year.
Speaker #3: to start doing the hardware work with, with their existing analyzer. So implementing our technology in it, and once they have their first results that they can repeat those improvements that we see in our prototype.
Speaker #1: I believe then we are in a phase that, that we can move on to commercial terms. Another thing I want to say here, although we are obviously
Um, I believe, then we are in a phase that that we can move on, um, to commercial terms. Another thing I want to say here, um, although we are obviously, um,
Talking about Milestone payments. Um the the ultimate business model with high sensitivity technology is again the um, assay development. So longer term, we want to be the high sensitivity, assay developer and manufacturer for our partners. And that's the business model, long term.
All right, thank you. Uh, let's uh, jump to um, these Veterinary say uh, development projects.
um it was described as uh project which we would land in the in the near future in in in July, uh,
and the question is,
What remains before, we have something definitive here? Um, and uh, of course, are we still at the point in time where where we can risk losing this opportunity? Uh, so that's part 1 of of the question. And then there is another question is we can add on here when do we, um, expect revenues and and the Very margins from these Veterinary products.
so,
yes, there until
a final contract is signed. There's always a risk. Uh, we have received
First verbal. And, and, and after that, um, at least 2, uh, written, confirmations that, um, that we are the, the prime partner, they want to collaborate with, um, and we know that the partner has started to do their in-house work with some
Some reagents materials that they will provide to us, uh, but still, we are again in this phase of um, of the exchanging information and getting ready to finalize the terms. So again, that just takes time although that was in July. Um,
These these projects sometimes take and discussions easily half a year. Um, but we hope to conclude that quickly and obviously, uh, when we think about 2027 resourcing and planning, we also are in a hurry to to secure pressue resources for that project. I see another question there, um about the the 7 ETA projects. And and somebody assuming that uh we calculate
Or many of those to be assigned. Actually, in my calculation, Assange is 1.
Project, uh, uh, but when I come to that 7, uh, this um, Veterinary development is to. So, of course, we could have also calculated the exact number of of of that collaboration. But we did not. Uh, so so it is we have more projects running than um most of them being with massage.
Okay, thank you. We can continue with with the S and and here's also. What are the, what is the status of? Let's say the more commercial, uh, efforts on Commercial terms. And also, what is our expected timeline to First revenue on on that project? Oh yeah, the first Revenue, by the way, for the next products. Um I think we're talking about 2028
Date 7, 1028. Probably looking at Marcus if the development kicks off uh for 1 as we hope next year but still that that is to be confirmed. Um as far as um
We actually know Marcus and I visited the, the company couple of weeks ago. And again, um, we are discussing both the very extensive framework, uh, contracts and then commercial terms and and then there is, there is likely, um, also a a potential, uh, Global partner or customer for the products, uh, who is also involved in this discussions. So, this is a
Supreme party discussion Where We Are.
Luckily kind of in the middle and and that you can just take time to to gather all the information and negotiate and and get understanding about expected volumes and and pricing and all that. So we are working on that and and putting resources behind it and we will update you uh, when we are done. And hopefully then um,
Not not given, but we hope that we can all always give more information. Once a contract is signed. Okay good. Uh
Development project where we see the greatest Revenue potential. Uh, probably over some time since we are are, uh, expecting to launch from this pipeline over over several years.
But we have decided that, and I, I think it's quite understandable that before we can talk about the biomarker or biomarkers, um, us giving any numbers would be fluffy and, and, and difficult to substantiate. If we can't talk about exactly that market the competition, the growth. So, um, so we are not at the moment giving, um, per project. Um, estimations, of course, we have our estimations and that is the key factor in our decision making and, and prioritization
um,
we did use for our longer term plan, like a weighted.
Sales averages and but again, um, as we don't know, exactly which 1 of these projects eventually will realize and and and come commercial success.
Um, it's difficult to pick 1 or 2 of those, instead of others, because we may guess wrong. So we used some averages. Um, so I don't know. You know, anything you want to elaborate about the expected contribution going forward? No, I think, I think it's a, it's a quite, uh, let's say a larger range. And, and these projects, they have a very different risk profile as well. So, we also take that into into consideration. I think there's another question coming in there. It's, uh, question if we have any minimum thresholds on the projects that we put into the pipeline, um, again, uh, this is a sort of a complex answer to that is first of all, we look at the return on the investment. We have a threshold of at least 20% return on uh investment uh on on any project. But um let's say
we can accept lower Revenue projects when the the risk is low when we have a partner agreement, or as we are looking for, in some projects that we have, uh, Milestone payments. Uh, for instance that can basically give us a payback on immediate payback on the development while of the projects. Uh, we need to see much higher Revenue potential because it comes with um, Market risk.
And also in in some cases higher development risk. So we are basically uh evaluating all the projects, not that a towards a minimum other than return on investment. Um uh and and and we are looking sort of does it fit and we have more a prioritization of our pipeline. Uh so there are projects that we have considered
Uh, but we don't have capacity to, uh, bring them into the pipeline now. Uh, and those are of course those uh, projects where we are have the lowest return, and or highest risk. Yeah. But that was exactly what I was. I was also about to to use as an example that we've already since um well during last 6 months the priority of certain projects have changed um after some key meetings earlier this summer um a project was
Highly prioritized, and like, you know, said we have already also, um, executed the, the Strategic thinking, what not to do. And and we have part, um, to projects, um, to to the either lack of, uh, customer commitment or or other uncertainties in the, in the future success, but they are not killed. Uh, we can take them back immediately. If and when, uh, we can take all those boxes that we have, um, set to ourselves to move on
1. I thank you. Uh, that was the question that we have, uh, received today. Lots of good questions. Uh, thank you for that.
You may want to wrap it up? Uh, me, I think I did already. So, um, thank you everybody for joining and spending time with us. Uh, thank you for your activity in submitting questions and, um, I wish you all, um, nice fall and early winter time and and we come back um, in early 2027, reporting the full year and quarter 4. Thank you so much. Thank you.
