• Revenue Growth: 17% increase, 19% at constant rate, reaching EUR6.150 billion.
• Net Sales: EUR5.6 billion, 15% growth, 17% at constant rate.
• Adjusted Gross Margin: Improved by 1.5 percentage points to 78.3%.
• Adjusted EBITDA: Increased by 9% to EUR1.476 billion, with a margin of 24%.
• Profit: EUR1.065 billion, compared to EUR343 million in 2023.
• Core EPS: EUR4.98 per share, a 19% increase from 2023.
• Key Growth Drivers: BIMZELX, FINTEPLA, RYSTIGGO, ZILBRYSQ, BRIVIACT, and EVENITY.
• BIMZELX Sales: Quadrupled to EUR607 million.
• FINTEPLA Growth: 50% year-over-year increase.
• BRIVIACT Sales: Grew by 19% to EUR686 million.
• CIMZIA Sales: Surpassed EUR2 billion for the third consecutive year.
• 2025 Revenue Guidance: Expected between EUR6.5 billion and EUR6.7 billion.
• 2025 EBITDA Margin Guidance: Expected to reach 30% of revenue.

• Warning! GuruFocus has detected 7 Warning Signs with UCBJF.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• UCB SA (UCBJF) reported a significant revenue growth of 17% in 2024, with a 19% increase at constant rates, showcasing a strong recovery from the previous year's decline.
• The company's five key growth drivers collectively generated over EUR 1.3 billion in revenue, tripling their performance compared to the previous year.
• UCB SA's R&D success rate stands at 29%, significantly higher than the industry average of 8%, indicating strong innovation capabilities.
• The company achieved a positive Phase 3 trial for dapirolizumab pegol in lupus, marking it as only the third positive Phase 3 trial for this challenging disease.
• UCB SA's adjusted gross margin improved by 1.5 percentage points, driven by an enhanced product mix with higher-margin growth drivers.

Negative Points

• Despite the revenue growth, UCB SA faced a 23% increase in operating expenses, primarily due to significant investments in marketing and sales for new product launches.
• The company experienced pricing pressure on CIMZIA, with expected high single-digit to low double-digit declines in the US due to increased competition and pricing dynamics.
• UCB SA's adjusted EBITDA margin decreased to 24% from 25.7% in the previous year, reflecting increased marketing and sales expenses.
• The termination of the minzasolmin development program led to accelerated recognition of revenues and termination expenses, impacting R&D expenses.
• The company's effective tax rate was unusually low at 8%, influenced by the divestment of its mature neurology and allergy portfolio in China, which may not be sustainable in the future.

Q & A Highlights

Q: Can you provide insights into your approach to rebates and pricing for BIMZELX, especially in relation to first-line use in psoriasis? A: Emmanuel Caeymaex, Chief Commercial Officer, explained that BIMZELX is not intended to be limited to third-line use. The focus is on expanding access responsibly, balancing premium pricing with broader usage. The aim is to make BIMZELX a core medicine in dermatology and rheumatology, with a mix of coverage strategies to build volume and negotiate future access.

Q: What gives you confidence in the IL-13, IL-17 bispecific for atopic dermatitis, and what are the next steps? A: Fiona du Monceau, Executive Vice President, Patient Evidence, highlighted the combination of IL-13 and IL-17 as a promising approach in immuno-inflammation. The results have validated their platform, and they are analyzing data to determine which patient populations will benefit most from this combination.

Q: Why is the fibromyalgia program with RYSTIGGO being terminated despite positive results? A: Fiona du Monceau explained that although the primary endpoints were met, the results did not meet predefined criteria for progression. UCB is focusing its R&D resources on areas with the greatest potential return, such as the ongoing launch study for RYSTIGGO in other indications.

Q: Can you discuss the current size and future potential of the US hidradenitis suppurativa (HS) market for BIMZELX? A: Emmanuel Caeymaex stated that the current US HS market is about 45,000 treated patients, with potential growth to 160,000 patients within a decade. BIMZELX is expected to play a significant role, with current access primarily for bio-experienced patients, and improvements anticipated over time.

Q: What are your thoughts on the emerging competition in HS, particularly from Incyte's JAK inhibitor and MoonLake's sonelokimab? A: Emmanuel Caeymaex noted that while oral therapies like Incyte's JAK inhibitor have advantages, deep and sustained efficacy is crucial in HS. BIMZELX's rapid relief of pain and healing are key differentiators. MoonLake's sonelokimab shares a similar mode of action, but BIMZELX's established efficacy sets a high bar.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.