UCB SA (UCBJF) Q2 2025 Earnings Call Transcript

UCB SA reported a robust first half of 2025, with net sales surging 26% to EUR 3.32 billion and adjusted EBITDA increasing 58% to EUR 1.033 billion, primarily driven by the exceptional performance of its growth drivers. BIMZELX sales quadrupled to nearly EUR 800 million, benefiting from broad market access and significant uptake in Hidradenitis Suppurativa (HS) and rheumatology, achieving high market shares in the U.S. The company also highlighted strong contributions from FINTEPLA, RYSTIGGO, and ZILBRYSQ, alongside pipeline advancements including new indications for BIMZELX and progress in assets like Galvokimig. Consequently, UCB upgraded its full-year 2025 guidance, now projecting at least EUR 7 billion in revenue, an EBITDA margin of at least 30%, and core EPS of at least EUR 7.25, reflecting confidence in continued momentum despite anticipated currency headwinds and ongoing U.S. tariff uncertainties.

Analysis

UCB SA delivered an exceptionally strong first half for 2025, characterized by unprecedented growth and significant upward revisions to full-year guidance. Net sales surged 26% to €3.32 billion, while adjusted EBITDA climbed 58% to €1.033 billion, expanding the EBITDA margin by nearly 700 basis points to 29.6%. The primary catalyst was the remarkable performance of BIMZELX, with sales quadrupling to €800 million. This was driven by a highly successful U.S. launch, where rapid conversion to paid scripts was achieved through broad formulary access covering over 70% of commercial lives. The drug's expansion into new indications, particularly Hidradenitis Suppurativa (HS), has been a key outperformer, accounting for 21% of its sales and rapidly capturing market share, with a dynamic patient share of 26% after just four months in the U.S. biologic market. Beyond BIMZELX, the rare neurology portfolio including RYSTIGGO, ZILBRYSQ, and FINTEPLA contributed robust growth, while the mature drug CIMZIA demonstrated resilience with 7% volume growth, partly due to buying patterns not expected to repeat in the second half. Reflecting this momentum, UCB raised its full-year 2025 revenue guidance to at least €7 billion and its adjusted EBITDA margin to at least 30%. While the outlook is strong, the company noted potential headwinds from currency depreciation in H2, ongoing U.S. pricing pressure, and uncertainty surrounding potential U.S. tariffs, for which it has built up inventory to mitigate any 2025 impact.

Key Decisions for Investors

• Investors should re-evaluate BIMZELX peak sales models upwards, as the rapid uptake and market share gains in the high-potential Hidradenitis Suppurativa market suggest current consensus may be conservative.
• Monitor operating leverage and margin evolution closely in the second half, as the company plans to increase marketing and R&D spending to support its launches, which could temper the impressive margin expansion seen in H1.
• Keep a close watch on pipeline catalysts, particularly the full data for galvokimig in atopic dermatitis expected in September, as positive results could solidify the next wave of growth for the immunology franchise.
• Factor in external risks such as the noted currency headwinds for the second half and the unresolved U.S. tariff situation, which, while mitigated for 2025, could pose a headwind to profitability in 2026 and beyond.