Release Date: March 06, 2025

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

Positive Points

• Cosmo Pharmaceuticals NV (CMOPF) reported record revenues and operating profit for 2024, marking a transformational year.
• The company maintains a strong cash position with zero debt, providing financial stability and flexibility.
• Cosmo Pharmaceuticals NV (CMOPF) secured two FDA approvals in 2024, reinforcing its competence in navigating regulatory pathways.
• The company has a robust pipeline with significant growth potential, including a major upcoming catalyst in the male hair loss market.
• Cosmo Pharmaceuticals NV (CMOPF) is expanding its AI-driven endoscopy platform, GI Genius, into new areas, enhancing its market position.

Negative Points

• The company changed its accounting policy regarding internal development costs, impacting operating expenses.
• Despite strong financial results, the share price declined by 11% following the announcement, indicating potential investor concerns.
• Cosmo Pharmaceuticals NV (CMOPF) provided a lower revenue guidance for 2025 compared to previous expectations, focusing on strategic value.
• The company faces potential challenges in securing partnerships for its phase 3 trial assets, impacting future commercialization strategies.
• There are uncertainties regarding the impact of potential tariffs from the US administration on the company's operations.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Signs with CMOPF.

Q: As you approach your one-year anniversary at Cosmo, what areas have you identified for improvement, and how are you progressing on these? Additionally, could you provide updates on the phase 3 readout for male pattern baldness and potential partnership timelines? A: The business model of Cosmo has been successful for over 15 years, and with new leadership, we expect faster execution and revenue generation. Regarding male androgenetic alopecia, it's a significant market opportunity with no other drugs in phase one or two. We aim to maximize the asset's value for shareholders by waiting for the right partnership timing, especially in the US market.

Q: How does Cosmo plan to apply AI to the commercialization of Brizola, and what specific AI applications might be relevant? A: AI is being integrated across the company, including for Brizola, to enhance compliance, engagement, and patient feedback. AI can add significant value to our assets, making them more attractive to potential partners or for our own market strategies.

Q: Could you provide insights into the new markets for GI Genius and the financial structure of the collaboration? Also, any updates on the strategy for Winlevi rebates? A: GI Genius technology is applicable beyond endoscopy, with a vast market potential in various medical procedures. The collaboration with Medtronic is expansive, and we are optimistic about its growth. For Winlevi, we are seeing a 34% revenue increase year-over-year, reflecting strategic marketing and patient selection improvements.

Q: What are your expectations for Winlevi in the European Union and other markets? A: We are collaborating with partners like Glenmark and are ready for market launch upon approval. The US market remains significant, but Europe presents a substantial opportunity with multiple markets and a large population.

Q: How do you view the potential impact of US tariffs on your business? A: We are confident in our unique technologies and the added value they bring to the market, so we do not anticipate being impacted by US tariffs.

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