• Q4 Revenue: DKK1.5 billion, up 11%.
• Full Year Revenue: Up 15%, exceeding DKK5.5 billion.
• European Tablet Sales Growth: Increased by 32% in Q4 and 31% for the full year.
• Operating Margin: Q4 ended at 14%, full year EBIT margin increased from 14% to 20%.
• Full Year Earnings Growth: Improved by 65% in local currencies.
• Gross Margin: 64.2%, an improvement of more than 1 percentage point.
• Free Cash Flow: Negative DKK204 million due to DKK1 billion upfront payment for Neffy license.
• Capacity Costs: Increased by 4% to DKK2.5 billion.
• North America Tablet Sales Growth: Up 15%.
• Global Tablet Revenue Growth: Up 24%.
• SCIT and SLIT Drops Revenue Growth: Up 6% globally.
• Other Products Revenue Growth: Increased by 7% globally.
• 2025 Revenue Growth Projection: Expected to increase by 9% to 13%.
• 2025 EBIT Margin Projection: Expected to increase by 5 percentage points to around 25%.

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Release Date: February 19, 2025

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

Positive Points

• Revenue grew by 11% in Q4, with Europe showing strong performance and double-digit sales growth across all product lines.
• European tablet sales increased by 32%, solidifying market momentum.
• 2024 was a record year for Alk-Abello AS (AKBLF), with revenue up 15% and earnings improving by 65% in local currencies.
• The company successfully executed its LG plus strategy, expanding into new therapy areas and unlocking potential in existing markets.
• ALK's gross margin improved to 64.2%, driven by volume growth, sales mix changes, improved pricing, and production efficiencies.

Negative Points

• North America and international markets did not contribute to top-line growth in Q4.
• Revenue growth was lower than in Q2 and Q3 due to anticipated factors.
• Q4 operating margin was impacted by one-off costs, ending at 14%.
• Free cash flow was negative at DKK204 million due to an upfront payment related to the Neffy license deal.
• Revenue in North America remained unchanged, with some product sales declining.

Q & A Highlights

Q: Can you explain the factors behind the tablet growth in Europe during Q4, and what impact did France have on this growth? A: The tablet growth in Q4 was significantly higher at 32% in Europe, driven by a strong underlying volume increase. There was a small stocking effect, particularly in Germany, contributing approximately DKK 20 million to the growth. Regarding France, the growth was partly due to clinics expanding their capacity, allowing more patients to be treated. We expect France to continue growing, although the material impact on 2025 growth is still under discussion. As for Neffy, it's too early to comment on pricing, but we aim for a price higher than current auto-injectors.

Q: What are your expectations for Neffy's contribution in the second half of the year, and have you received any initial feedback from physicians? A: Neffy's contribution is expected to be modest, as reflected in our 9% to 13% growth guidance, which includes Neffy and pediatric launches. Initial feedback from patient organizations, physicians, and key opinion leaders has been positive, indicating a clear demand for the product. However, the real test will be translating this enthusiasm into prescriptions, which will depend on the final pricing.

Q: Could you elaborate on the initiation season's impact on growth and the expected contribution from pediatric launches in 2025? A: The initiation season is expected to show more than 10% growth, consistent with our guidance. We are still gathering data, and January is crucial for new patient numbers. The pediatric launches are expected to have a modest impact on 2025 sales, contributing less than 1% to growth. We are satisfied with the initial feedback from doctors and patients in the five European markets where the launches have occurred.

Q: How are you building new sales channels in the US among pediatricians, and what is your focus regarding external innovation opportunities? A: In the US, we are preparing for the launch of the house dust mite tablet in the first half of 2025. This involves expanding into new channels and focusing on education and training, as the US market differs from Europe. Regarding innovation, we aim to expand our portfolio through both internal projects and external opportunities. The Neffy acquisition is an example of this strategy, and we continue to explore opportunities in food allergies and other therapy areas.

Q: Are there any plans to adjust your long-term financial targets based on new developments like Neffy? A: Our long-term financial targets remain at over 10% top-line growth and a 25% EBIT margin by 2025. These targets are based on organic growth, with potential upsides from initiatives like Neffy and pediatric launches. We aim to balance top-line and bottom-line growth while investing in commercial opportunities, pipeline development, and infrastructure to support future growth.

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