Blau Farmacêutica S.A. ($BLAU3)

Good morning, everyone. Welcome to the earnings call for Blau Farmacêutica's 2025 and Fourth Quarter Earnings. We're live at Blau Studios in Sao Paulo with Marcelo Hahn, CEO and Founder; Douglas Rodrigues, CFO and Investor Relations Director; and me, Matheus Fujisawa, Investor Relations. Our call is being held in Portuguese with simultaneous translation into English, and it will be available in a timely manner on the company's IR website. At the end of the presentation, we'll have the Q&A section as well with a priority for sell-side analysts. Analysts who want to ask questions should click their raise-hand on Zoom located at the bottom part of the screen. Other investors may also send their questions through chat. Now I'll pass the floor to Marcelo so we can begin the presentation on Slide 3.

Thank you, Matheus. Good morning, everyone. 2025 was a really important strategic decision year for Blau, where we decided to strengthen the company's capital structure through divesting from Prothya to strengthen investments in biotechnology and increase our production capacity. As a result, Blau had a higher cash position than its debt, solidifying its financial position to handle the transformational investments that are underway. The patent decline cycle in our segment is unprecedented, and we're poised to capture the opportunity of the decade by investing in monoclonal antibodies. The achievement of ANVISA's certificate for best practices, which is the first of a biosimilar monoclonal antibody, Pembrolizumab, the drug with the highest revenue in the world was the crowning achievement of a year where we had significant progress in the mAbs project as well as the development of new products, which is an important expansion of our production capacity as well to be able to unleash growth, resulting in a year where we had the largest amount of organic investments in the company's history, about BRL 420 million. In our opinion, the potential return on these organic investments is even more attractive than the acquisitions that were available in the market in 2025. Now looking at shareholders, we announced an all-time high amount of profit distribution in 2025, reaching BRL 582 million with BRL 400 million in stock bonuses and BRL 182 million in dividends and interest on equity. The company's financial health allows it to compensate investors even in an intensive investment cycle and even in a challenging political and economic scenario. When we analyze numbers in 2025, revenue reached BRL 1.7 billion, impacted by the backlog of some bids during the year. The change to a more diversified revenue mix of drugs allowed us to have improvements in our results. Our operational margins in 2025 grew compared to 2025, 260 bps in our gross margin and 50 bps in the EBITDA margin. The net income reached BRL 297 million, a peak of 39% year-over-year. Now moving on to the next slide. We're really focused on investments with potential to transform the company without losing attention to short-term challenges. 2025 had several challenges, and the company once again demonstrated resilience, overcoming adversities and really carrying out initiatives to have a better 2026. We had an impact on our revenue in the fourth quarter due to a change in the mix and the lack of production capacity with a drop in 2 of our main products, which had a higher ticket than average. When we look at the scenario, Blau tried to compensate this with an increase in volume in other products and the private market, which ended up being positive for margins. This increase in volume took our factories close to their limit, and it was necessary to accelerate the capacity expansion works. We have 2 new lines that were completed and 2 are still in progress besides investments in another packaging line and an increase in production ships. The postponement of the federal bidding process also impacted the 2025 results, especially in the fourth quarter. This situation was temporary because at the beginning of 2026, we won the bid for Epoetin alfa and other products with a better price and volume in the previous bid, which should be an important contribution to our results in 2026, which are already guaranteed. Our launch pipeline had been a bit delayed due to the ANVISA's extensive analysis queue. But we've listed the products that are considered priority at the moment, while ANVISA has been working on initiatives to reduce the analysis queue. We expect to see a better scenario in '26, which has a very attractive launching potential. We had no plasma revenue in 2025, and we continue to actively pursue new opportunities with long-term supply contracts. We're also looking at other strategic alternatives for Hemarus. Finally, we've delivered growth in North America, but less to it's potential, mainly due to the limitation of our productive capacity, which has already partially been addressed and part is now being addressed, which will unleash even more growth. I'm going to pass the floor back to Matheus to continue the presentation. Thank you very much.

Thank you, Marcelo, on Slide 5. We can see the first highlight in 2025's launches, which had greater disclosure on behalf of the company using major events in the sector to promote these new drugs. The most recent is NOXX Multidose, which is the first sodium enoxaparin in a multi-dose format developed and manufactured in Brazil, and it was officially presented at HEMO 2025, one of the largest conferences in this segment in the country. It's an incremental innovation that should increase our differentiation and improve Blau's competitive positioning with this product, supported by studies that prove that multi-doses bring greater flexibility and precision upon prescription and dispensing of this drug, avoiding adverse effects such as bleeding and thrombosis and can generate savings for the health system without, of course, compromising safety or therapeutic efficacy. While on the Fillage, hyaluronic acid line of fillers launched at MAAC 2025, one of the largest conferences for injectables in Latin America with a focus on facial harmonization. This line joins botulinum toxins to strengthen Blau's aesthetics business unit and new launches should take place in 2026. Besides this, we also launched Imatinib Muzlet in 2025 in a more traditional format for launching and promoting company. On the right side, you can see that the launch revenue has been growing year after year, reaching BRL 127 million or 7.5% of total revenue in 2025, which is an 18% growth year-over-year. This growth could have been even more intense, but ANVISA's extensive queue for analysis and other limitations in our production capacity prevented us from having even better performance. The good news is that investments have been made, which include a dedicated line for launches, and it seems that ANVISA has adopted measures to reduce the analysis queue. So we're really confident that we'll have an acceleration of the launches in our next years. And we have products, as you can see on the right side on the bottom, which represent BRL 2.7 billion in market value that are already in ANVISA's queue, almost double of what we've launched in the last 3 years. And here, we're considering only the drugs that have already been submitted to ANVISA formally. Naturally, we're going to continue to submit new products and this number tends to grow even more. When we move on to the next slide, we can expand a little bit more of the company's view of the growth potential, which includes products that have not yet been submitted to the agencies, such as the monoclonal antibodies, for example, and thus, we can have a much better idea of the company's potential for growth. Today, in the hospital segment, we have an addressable market of approximately BRL 7 billion, and our expectation is that this value will more than double in the next 3 years. So when we look at a broader period, we can easily triple this addressable market. And why do we focus this analysis on the hospital market? Well, basically, because as you can see on the slide, this highly competitive positioning that Blau has in the segment with 34% market share on average in the top 15 and 23% in the overall average of the hospital portfolio. And this is all supported by local production on a large scale and low costs, including biological drugs, which is an important differential in the company, providing a complete basket of medication for hospitals with national reach of over 9,000 health institutions in Brazil. So then finally, besides our core business, we still have additional growth potential in the aesthetics and retail segments. Now moving on to Slide 7. In our net revenue, you can see we reached BRL 1.7 billion in 2025, a drop of 3% compared to '24. And the main impact is this mix change as well as the delay in bidding -- in bids in the last quarter, which Marcelo had already explained. So when we look at this per segment, the hospital segment follows a consolidated trend well because of its major relevance, but the retail and aesthetics segment grew about 5% in the year. In aesthetics, we also had significant changes in the supply and distribution of Botulinum toxins, which ended up generating a little bit of volatility between quarters. But still, when we look at the full year, we had growth. In retail, there was also a bit of volatility in performance, but this is mainly due to the comparison basis, which was normalized during the year. And then we ended the fourth quarter with growth in this segment. So in the quarter, when we look at the fourth quarter specifically, naturally, this delay in the federal bid -- sorry, the revenue had a significant impact with 15% drop in revenue. But besides this, in the fourth quarter, we didn't have plasma revenue. In the fourth quarter of '24, we had a spot sale of BRL 13 million, which ended up creating this mismatch. And on the next slide, we are showing why we're more optimistic in the next years with the company's revenue. Starting off with the investments we had made that are going to potentialize the company's growth. And we also imagine this is going to help reduce the volatility of our results when we look up ahead. We also had strong investments in capacity expansion over the past years, which is also going to address production bottlenecks. And besides this, we have strong investments in new molecules, which we believe could accelerate the launch pipeline and even diversify our portfolio more. And in the public channel, which is a challenge for us this year, should get back to growing. We overcame the federal bid for alfa Epoetin and the prices were better, volumes were as well in the last bid. And we also won other bids in the public sector for other products. And with this, we're also -- with a more positive perspective. And we should also have less volatility in the public sector when we look at 2026. Finally, we've also been investing in international expansion with a presence in many Latin American countries, and our main ambition is global expansion. Partnerships can also have an important contribution, especially if you look at the advances of the monoclonal antibody project. Finally, we had this mix effect, which got in the way a little bit and affected our growth in '25. But when we look at the next years, this should benefit because we're investing in products with higher differentiation, a higher ticket and especially, of course, the monoclonal antibody. So we should have a positive mix effect. Now I'll pass the floor back to Douglas to continue his part of the presentation.

Thank you, Matheus. Good morning, everyone. So the release material is really well covered with the performance and earnings. And now the idea, of course, is to, on the next slides, give you a little more color. Marcelo and Matheus highlighted the main achievements of the company in [ 2025]. It's really clear how Blau's business is resilient and the options in our strategic plan are really important factors. Of course, every quarter matters, of course. But the photograph of '25 when you sum this up with all of the deliverables and all of the achievements, especially the strategic ones, bring a very positive effect, especially now for the next cycle when we begin 2026. And now, of course, if you look at the cycle with the monoclonal antibody. So now when you look at this specifically in the gross profit, you can see the advances of 260 bps in the year-over-year comparison. You can see the turnaround optimization of Bergamo operation which basically did not contribute to our results. The shift in mix in the company brings a very positive effect in the margins and a challenge as well too, but when you look at sustainability and quality, it is beneficial. So now, of course, we have to follow this, unleashing productive capacity and looking at the perspectives, right, even with the growth of revenue affected and the changes in the non-plasma revenue, we still have evolution in our margin. And we have a potential to continue this evolution process because of new lines, gains in efficiency, greater dilution of fixed costs. And this is even considering the monoclonal antibody cycle. And after the math, we'll be talking about a mix that is transformational within the company's portfolio. So once again, it's worth mentioning the strategic positioning of the company, and we're really focused on our strategic plan with the decisions and execution, considering the conviction we've had on the returns on our investments. Then on the next slide, the evolution of our EBITDA. We're talking about 50 bps in the year-over-year comparison. This comes from the gross margins and the issue of the non-dilution in our revenues, especially considering the non-growth of revenue, which affects this. But when you look up ahead, of course, just as expected, the evolution with the gross margins, we should advance in our EBITDA margins and especially because we don't expect the growth in the G&A. We start off with the growth in the revenue, going back to this model of diluting G&A. And I want to remind you that the business model in the company doesn't have the same scale. So moving on to the next slide, net income, which is an important evolution in the year-over-year comparison, growth of almost 40%, and this comes from operational results and contribution that affects us a bit, which is the rate of income tax. So when you look at this in the year-over-year comparison, you have a reduction in the effective rate of 3 points. And basically, what you see there is more like the deferred income tax, right? So basically, if you look at the variations in the EBITDA here, the financial revenue, as you can see, the positioning of the free cash flow. So these are subject to variations and volatility, and that's mostly considering the balance sheet, but when you look at interest specifically, the company sets up with the net cash position. But the trend is we should probably have some advances in the company's leverage. But it's a scenario where the company really has a strong cash position. When you look at tax planning, this is going to continue, and it's an important lever in the net margin generation, especially considering investments. And if you look at how we're going to increase the pace of R&D and the company has been presenting interest on equity. And so -- and that, of course, doesn't count on the benefits in Pernambuco where we're advancing as well. So if the highlight of the gross margin came from Bergamo and the use of this production, it's always worth mentioning that it's in this specific Bergamo situation, we have this factor of the tax losses, right? So tax planning is still an important lever. And so working capital, this is a challenge. And so as well as cash consumption, we're looking at the cycle of payments and receipts, which are basically at the same level. And we search for some efficiency, especially the cycle of receipts, composition. And so we're still at a high interest scenario and should bring in a significant reduction. And so this has been a focus and one of the biggest challenges in the cycle of payments and receipts. And of course, I want to remind you about the distribution chain and the company has been promoting different initiatives to even bring the channel closer considering preparation of the biosimilars. And so now about stocks. Yes, this is the biggest corporate target. Of course, we have an evolution of 246 days. And so when you look at the cash cycle, that's what impacts year-over-year. What the company is doing is working capital by the end of '25, the trend looking up ahead would be that we would start reducing this with the goal of searching for this up to maybe 30 days. And so that would lead us to that healthy level of 180 days of stock. So this is our target. This is our challenge, and that's what the company is going to search for. And so the CapEx, as highlighted, it's an all-time high level and the company has the capacity considering the leverage and repositioning of the cash and investments of Prothya, but it's a real high level. This pace of growth is the trend. And that's where we start taking on the first steps. And so this is really important to search for this new cycle of growth and returns of the company, which is going to be accelerated by the monoclonal antibodies. And this is really connected to the different works we've been doing related to investments in monoclonal antibodies and biologicals and also recent expansion in the plant and also the R&D center, which is going to have a new headquarter. So that's going to be completely connected to our strategy for R&D and innovation in the company to support the new cycle. And moving on to the next slide, I think the most important, as we've already highlighted, is the free cash flow position. And when we look at '26 with the volatility and macroeconomic interest, et cetera, nothing will be more important than starting this year in a net cash position, considering the divestments at Prothya, which demonstrates that, not only the strategic plan of how the company decided to invest and return, but also consider important discipline when it comes to capital allocation. So the company had an example and the company really knows how to make these movements and preserve the capital structure. So this positions us in a privileged position. And so we can start to see a cycle. Then moving on, if we're seeing this new cycle of investments considering clinical trial investments and increases capacity, et cetera, that is connected to this. Of course, we're going to search for the extension of this debt, so we can have more oxygen, let's say, and have lower financial costs than what we currently have in our previous operations. So of course, if you look at clinical trials and research and development and all of this, what would be more adherent to support this investment would be incentivized lines. So this is another target for the company to really search for these initiatives, longer credit facilities and the same applies to Pernambuco. If you're talking about a phase and a construction process that's going to be built in phases and in mid- to long term, this is natural. That you would adapt these incentivized lines to support this growth and investment. And if you start with the free cash flow position, and we follow this evolution here in earnings, operational results generated to handle this new cycle. But of course, it's natural that considering the advances in our pace of investments for this year, the company should end up increasing leverage a bit in this cycle from '26, '27 and nothing that will reach 1x EBITDA in the peak. But when you look at '28 and you go back and finish this cycle, it's more intense and you start launching monoclonal antibodies and you can maybe reverse the cycle and have positive cash generation. So of course, we've been keeping our eyes open as we search for all of the other possibilities to recover cash and through partnerships, licensing and any other methods and projects. So this is the message here, how we're going to search for ways to strengthen the company's capital structure and really handle investments. And so I'm going to pass the floor to Marcelo as he wraps up the presentation before the Q&A.

Thank you, Douglas. And so we are going through one of the biggest cycles considering Blau, right, which focuses on biosimilars. When you analyze the 20 monoclonal antibodies, the biggest revenue in the world, which add up to over BRL 150 billion, we would imagine that BRL 100 million are still having this capital -- this sales structure, which should drop drastically, giving room to biosimilars that could have a golden decade. So we're going to consider the biosimilars of the molecule with the biggest revenue in the world. Biosimilars have some characteristics that are very positive for all stakeholders. These are drugs with the safety and efficacy that promote the increased access of innovative therapies to the population. The market is very attractive, has been leading growth in the sector and the perspective is that they will remain with changes in regulation, favoring the speed of launches, especially with Blau that has been performing the full production of these drugs in Brazil. We have major opportunities and advances in National Technology. Blau is prepared to capture this opportunity. We have knowledge, technology, infrastructure, property and team and investment capacity that are required for the full production of monoclonal antibodies. We're developing 4 mABs and we're the first company with the certificate of best practices. And so the other 3 molecules are under secret. Let's say, we're so anxious to share news as we advance with the projects. Thank you very much. Now we're going to start our Q&A session, Matheus.

[Operator Instructions] We'll start off with Mauricio Cepeda at Morgan Stanley.

Okay. Well, Marcelo, Douglas, I have 2 questions. One is if you could give us a little more details on the productive transition that we've had over 2026? And how much can we consider the volumes and the productive limitations because I understand that you guys are getting so many approvals of the productive lines, but also the registrations of the products to be manufactured, right? So if you could give us an idea of how this will be distributed in 2026. And so we can look at the growth a little better this year? And then the second question is some, let's say, mobile parts of these earnings that due to the level of disclosure, we can't separate. But I think this separation is split between public and private. If you could talk about how hospital behaved, specifically in the private aspect this year, considering that the public generated a lot of variations.

About phasing out, we had 2 lines that were approved by ANVISA with just local ANVISA and Ministry of Health. And that authorizes us to begin the production, right? But we also have another process, which is the approval of the possibility of being able to produce that drug at that plant. And this is a process that we call PGMP, which is the transfer of manufacturing area from one area to another. We have some PGMPs that are already approved, others that are underway. We can't provide precision on the exact dates of each line, but we need to get approval to communicate on this, but we've approved a product line of antibiotics with penicillin, and we already had ZTO approved. So now we have PGMP approved as well, and we're in this process to submit these batches of validation and so that they can be authorized for the commercialization of this product. So we hope to get these results as soon as possible. We had hope and still have hope to be able to within this month, achieve this for this area. It's a very important area for the company, an area we had -- where we had a lot of back orders. And another area is injectables as well, where it's a little bit delayed in PGMP, a little bit more challenges here, but we plan to already get the approvals in the second quarter to commercialize these products. The third line, which is for drugs. This is a line that plans to be ready within the next few days, and we plan to have a ZTO now in the second quarter of 2026. And then the fourth line, we plan to complete this by June '26, and we will be able to get the ZTO in the third quarter of 2026. So we hope to have up until the last quarter this year, the 4 lines manufacturing and bringing in revenue. So this could change a little bit. It doesn't depend on the company, but it does depend on ANVISA authorizations, which sometimes may require some other questioning or -- and that could postpone the process, right? So on the sales of the private market, we've been expanding the sales more and more. And we changed this product mix, really basing our sales with Immuno and Alfa that are very significant. Immuno doesn't represent one digit. And so in the company's revenue doesn't represent much, but we're very happy to sell in the private market, but we've basically lost our competitiveness and we had some new players after the pandemic with the reduction of prices and the market became very competitive. And so the rest of the products, this has made the company have better opportunities in bringing better results because the margins of these other products are pretty low, and we end up not producing products locally. So we need to rely on third parties and the margins are a lot lower from local production where we have better margins, and we've been expanding our capacity to be able to deliver more. And we ended the year even with the fourth quarter not being a year that is where we have recurrence with the lack of revenue due to contracts with the government. We also had this issue with the lack of productive capacity with this new mix of products we're delivering. So we finished the year with weaker revenue, but with back orders that we end up delivering now in 2026. So I answered your questions here.

Our next question is Gustavo Tiseo from Bank of America.

We have 2 points here. One is a follow-up on the last one. If I could explore a little bit of these 4 lines. We still don't have any with some type of sale happening or incremental revenue. We should probably consider something -- and I wanted to explore a bit of the recovery in the alfa Epoetin. The bid came out at the beginning of the year. Should we expect a strong recovery in the first quarter? Or is there some sort of delay that we will only see in the second quarter, right? Just so we can try to understand the dynamic of the first quarter on the revenue results.

Well, first of all, thank you, Gustavo, and your question is really good. We didn't have revenue from these 4 new lines, although 2 were ready, we didn't get revenue, and we intended to get some revenue in the first quarter. We already produce these products there, but we need to get the authorizations to sell. And so we have a real short journey to still get some revenue in the first quarter. We're searching for this, and we have this internal compromise here and commitment to bring in the revenue, but it's challenging. And I'm a lot more comfortable in saying that for the second quarter, for sure, both lines that are ready will bring revenue into the company. About the contract with alfa Epoetin, we've already begun the deliveries in the -- and so we've already considered since the Ministry of Health ended up postponing this with the bid and all of this process and we had this situation with products in-house, and we were prepared to service this and that contributed to an increase in the days of stock in the company. We've already placed this product in the first quarter. And this year, we have a year that's a little bit different than others with the phasing out of deliveries in the full year. And so we're not going to have a distortion of revenue from sales. And so we were able to have better planning, and we were able to phase this out during the whole year. So we won't have major distortions, right? They're going to be very small. Maybe volume will be a little bit higher -- but lower, but -- and we're going to be able to phase out these deliveries. So we won't have this problem with like one quarter having more or less revenue. It's less volatile and a lot better for them and for us and for the market and everyone else. So let's see if we can keep this synergy with them. not sure how the next government will be because I think it's going to be a lot smoother for everyone. And the capacity expansion is going to be gradual. And of course, it's going to be a total contribution for '27 because you add this on throughout the quarters of the year. I hope to have answered your question.

The next question is from Leandro Bastos from Citi.

Well, 2 questions here. And so the expansion of capacity, and this should help us as well in what we should expect for CapEx this year and as you reach this heavier cycle. And so I think it would be good to hear from you to get some more color on the capital structure leverage and how the company should navigate through this new cycle. I think that's the first question. The second one is more related to Hemarus. And just to understand how the operation is and get an update and how this is -- how we're looking at this from a strategic perspective, right, considering the company's new reality. So these are the 2 points.

Thank you, Leandro. Do you want to start with Hemarus? Do you want me to start? And so you can answer the first one on CapEx. And then I'll talk about Hemarus later on.

So yes, when we look at CapEx, if you look at '25, what we should expect with '25 and the add-ons in '26, you're basically talking about the increase in clinical trials. Especially, Pembrolizumab that's going to affect this final phase of the launch in '28. And basically, you start -- you have the conclusion of the construction work with the expansion we were discussing, and you also start getting some new movements in the Bernambuco project. So this pace of growth, '25 versus '24, it would be natural to expect '26 versus '25, where we could consider maybe BRL 600 million, or something like this. But this is -- of course, this is expected. However, when you look at the evolution of the cash generation and operational results of the company, we understand there's space to advance in '26. But naturally, we would expect some leverage at 0.3, 0.2 or even 0.4 depending on the scenario and this range in the end of '26. And of course, this cycle could continue in '27. You can move on to 07, 08, 06, but never reaching one time EBITDA. And of course, once again, the company intends to reprioritize and understand the macro performance and redirect this. And I think this is very clear because we are convinced about the returns on investments, and we also have a lot of discipline. And the main priority is the monoclonal antibodies, and we'll see this as we advance in cash generation.

So we've been searching for this and considering this long-term contract, thinking about a bigger volume so that we can increment the operation there. And the company is currently operating. We have the FDA license. We've been collecting plasma, but at a speed that is smaller. And so we've been bringing down the centers at a lower time frame daily to be able to service less people and collect less plasma until we are able to get this contract signed, right? So the perspectives are good, but negotiations are taking longer than what we expected. And so we have big companies which service the whole world, and we're searching for this long-term contract. So we had already been visited and certified by some of these companies, and now we're at a more commercial discussion, and we understand we'll be able to perform this operation, right, because everyone needs plasma in the long term and in -- and with the sale of our stake in the company with the Prothya we don't see much sense in the long-term operation. So as soon as we close off this negotiation, we intend to search for opportunities of divestments. This is a mid- to long-term issue, and we're going to be communicating this to the market at every moment.

And if I could follow up, I understand this year, you have another CapEx scenario similar to what you had last year, BRL 600 million. But for '27, this -- should it be similar, BRL 600 million or so? Or do you have another leap?

This is due to Pernambuco. And considering the conclusion of the clinical trials at the same level. But what we could add on '27 versus '26 would be the increment in Pernambuco. This is the scenario.

The next question is Eduardo Resende from UBS.

I have a question exploring the margin aspect, looking at '26 and thinking about integration between Bergamo being complete and the company accelerating revenue. What's the expectation on margins? And do you have any level of aspirational margins for the short to long term, considering pre-monoclonal antibodies? And what are the possible levers? And just a follow-up on Douglas' comment from the beginning of the presentation. And the G&A should not grow now in 2026. We should look at G&A in the fourth quarter as a basis for 2026. Should we look at it like this?

Well, on the margins, we normally don't provide guidance. But of course, we expect the same movement. You have this situation of following these new lines and we go back to growing revenue. There's a dilution in costs -- fixed cost that's very significant, and you kind of incur part of these costs, as Marcelo mentioned, the phasing out or delivery with better utilization of productive capacity. So all of this efficiency, we're going to be searching for even the new mix of sales in the company, and we see space to follow this evolution, of course, in the midterm before talking about the monoclonal antibodies and make more beeps, let's say, with the same evolution in the last years. But of course, when you look at expenses, especially for G&A, and you consider the revenue levels we had in the last quarter, there's no dilution. When you look at this nominally, this should be the main focus with going back to growing revenue. But it's important to say that the company is organizing some strategic movements and even getting support from consulting firms because it's normal and natural that considering the company's current moment or the growth we had in the last few years, need to reorganize processes, look at each area and process, invest in more technology, which is why we consider it's not natural, we wouldn't expect a growth in G&A. So we're searching for better efficiency in the use of the structure than necessarily scaling it up on the same process. So just by the growth in the revenue. And so this is mainly coming in for '27. And so we just set up our data lake in the company. We use artificial intelligence and we search for improvements. We always assess where we have better financial results and where we're focusing, and we consider this is going to bring in some operational results and improvements. And we have a lot of opportunities to bring in, and we're sharing this with our business.

Our next question is from Vinicius Figueiredo at Itaú.

I just wanted to understand a little bit about this. You guys talked about this a lot during your call and the answers from the questions of our colleagues. But if you talk about the revenue and launches, when you look at this fourth quarter, specifically, this was an important highlight. And so if you guys could give us a little more color on which launches these were when you look at the fourth quarter that contributed to this growth with this update in the pipeline? And also, if you could when you look at -- I understand this moved a little more sideways, but we wanted to understand what we could utilize in our model for 2026 as well.

Well, I'm going to start here. I think Marcelo and Douglas could add on. When you look at the revenue of the launches, specifically in 2025, we can see a more effective contribution of the launches we performed in the previous years. So when we look at this, they contributed significantly to greater magnitude of this revenue of the launches in 2025. Considering this ANVISA queue, we ended up launching a little less than what we would like. And most of these launches ended up being left at the end of the year. So they didn't contribute much to the performance in the year as a whole. This performance, which was the highlight of the quarter, could have been even better. We had the issue with the queue at ANVISA and productive capacity as well, which gets in the way of the mature products. And for the launches, we are now a lot more confident. The ANVISA queue eventually, we're going to get the launches somewhere around for 3 years almost and -- or even more than 3 years. And so our productive capacity is already being reached. The pipeline has also been there besides what was already submitted to ANVISA and you have all of the perspective we shared during the presentation as well. So now about the aesthetic and retail segment. In retail, when we look at the year as a whole, it was stable. But you have a lot of volatility between quarters due to the low comparison basis. We look at this in the second quarter, there's a drop in revenue. Third quarter, we stabilized Fourth quarter, we have growth again. But the trend up ahead is that we can keep this trajectory for growth since the comparison basis is normalized. In aesthetics, specifically, we still had growth in the year despite all of the volatility. Remember, in the first quarter, we sold the registry of the toxins and we had a revenue really high because customers had to buy all the rest of the contract in the third quarter. And in the fourth quarter, you start with a new customer. but not at the same level of the third quarter where they bought basically 2 quarters in 1. And the other products are going to join into the pipeline. I'm going to start off with some questions here on the chat. We have a question from [ Alexandri ] he is saying, what are the strategies and actual possibilities that Blau has in achieving these incentivized funding to support the CapEx? I think they're very realistic, yes.

If you look at the project the company has, it's really adherent to these kind of agendas yet to submit this wait for assessment, but a company that's investing especially in bringing products that are going to expand access, have verticalized production, investing a lot in R&D and innovation. So it seems to have a lot of adherence to this. We know about the bureaucratic process and how long this takes, but we understand that we have big chances or real chances of bringing this in.

And here, we also get a question from Kyle [indiscernible]. Thank you for this, but I believe this was already answered considering the issue with the delays in the bid. And then you have a second part of the question, right? So what are the prospectives for the sale of Immunoglobulin for 2026? Well, they're great. We've been selling a lot. And so we start a year selling to the private market and way above expectations, way above our business plan. And so we're super excited. And so we focused on this private market, and we've been able to sell volumes that we had been selling before back then, and we can service the private market now. So we're really excited, and we have excellent perspectives for 2026. So with the supplies from our suppliers and also sales. So now with the issue of the dollar contributing a bit, considering that it's an important product, well, we have a factor that's very important, which is a product that comes from South Korea, the trading currency is dollar, and we have a competitive advantage with our competitors, which are European companies that bring us in euros, right? So we can see this issue and that favored competitiveness of Blau in the private market. Well, now with the lines starting to contribute more effectively from the second quarter with the new lines, that wouldn't be a reason to have a weak first quarter, right? Because we've seen the bid, good performance as well with Immunoglobulin in the first quarter, we have a comparison base that's more accessible. So considering the sale of this registration. So even with all of this issue with the new lines, this shouldn't impact the second quarter, right -- the first quarter, right? But from the second quarter onwards, of course, we're going to need this contribution with the new lines. But we've been seeing other levers in the performance of the first quarter, specifically. And thinking about the basis for the first quarter, it's never very strong, and it's a seasonal effect, right? So the participation in our business in retail is smaller and most of the distributors are more focused on products and drugs that are going to have price adjustments and the price adjustments are very low and one of the lowest in the price adjustments. So this cost as well has contributed to them not being focused on the purchase of drugs for retailers. So this has favored us as well and our business as they've been really focusing on our products. Well, on the chat here, we also have a question from Antonio [indiscernible]. He wanted to know about the free flow issue.

Well, thank you and great question. We've done everything we could to try to improve volumes daily in the free float. And we've -- actually, last year, we had a bonus of 30%, where we imagined the value of the shares would go up. Since the market is very immediate, we saw there was a rush to have these shares written off and bring them into cash, right? But we saw things could have been different if the market hadn't -- had kept the shares, right? But of course, compared to other market peers and this situation kind of brings a lack of interest in the sale of shares. So we have -- the idea of having some follow-on. And we understand all of the situation and in the country. And with the situation, this geopolitical situation worldwide and if we can bring all these opportunities that we're sharing in-house and bring in the revenue of these new lines and revenue for launches, we're going to get back to having growth. The market will get to know our -- will recognize this, our shares will gain value, and we understand that at this moment, we'll be able to consider a follow-on, right? So actually, it would maybe be too premature to talk about this today. We have to have our deliverables, and we hope these shares gain better value, and then we will be able to think about a follow-on, right? This is the idea the company has. Yes, that's it. Thank you, Antonio. Well, just to add on one point here, we have a waiver until December, and we hope and believe that we'll be able to renew this waiver as other companies have as well. So it's an atypical moment. And today, we consider 2 companies that are planning an IPO maybe. So let's see this IPO rally. Let's see if stock values go up in Brazil, and that favors us with the possibility of having a follow-on maybe. And this year, despite a market scenario that's maybe a little better, we also see Blau's earnings better. So both of these factors converge, everything becomes more feasible.

And the next question here on the chat, which is from Daniel [ Vilozo, GTX ]. He wanted to talk about an update in the schedule of AP [ Neo ] and Pernambuco. We -- the last schedule we had published had a little more than BRL 100 million. And he also wants to talk about the projection.

We already have a GMP. We have the beginning of the study now, and we'll have the payments beginning now, and we should complete this by the middle of next year, and then we'll have this ongoing substitution alongside ANVISA. This is what is -- so -- but maybe not values that are as relevant as this one, right, BRL 250 million, which is a fortune. So for Pernambuco here, we start off with the ground work and the factory there is really big, and this amount is basically to be able to work on the foundations and the streets and the infrastructure required in the surrounding area, rainwater collection systems we plan to do all of this work during this year. So we'll start the actual construction of the building next year.

Okay. And then one last question here from Wesley [ Araujo ] Thank you for your question. And thank you, Daniel, with the previous question. And here he's talking about the schedule for the lines we've already answered with the sell side and he says that -- he also talks about the percentage expected for capacity. We disclosed the volume expectation and that this would be at least 70% after we perform all of the expansions eventually with some bigger efforts, this could even be more than this, but we'll be really considering the use of artificial intelligence and who knows even increasing the amount of shifts, and we're working on improvements as well in our processes that are small and that don't require major investments, but that will contribute to better results in the production. So we see all the bottlenecks, and we're revisiting them using consultants to help us with this. And with this, better operational gains and lower costs. And so this is the last question here, and we're going to wrap up here. I don't know if you have any final remarks.

Despite a fourth quarter that was challenging, we had a big struggle with the Ministry of Health. And we had the possibility of bringing in higher revenue. We won the bid with a higher amount. And today, we have, within our business, a major capacity to meet the Ministry's needs. Very few companies have the possibility of delivering such a big volume in such a short period of time. So Blau is really qualified as a big supplier, right? We didn't have this recognition. However, we should have alongside the Ministry of Health to be able to keep up with these investments and bring new technologies, production of monoclonal antibodies. But we understand that in 2026, we'll be able to bring better results. And so we've already done the deliveries of alfa Epoetin and Immunoglobulin and these were 2 products that really got in the way of the revenue last year and the mix of products we continue to deliver. We have this increase in productive capacity for 2026. And I understand that the company in 2026, despite the challenges politically and economically, has been really well prepared financially with cash available and investments available, but we're also prepared as a structure and business to perform the deliverables and bring -- and follow our business plan as well with good results and bringing better perspectives for growth for investors. So I want to thank everyone and wish you all a wonderful day. And let's move on. Let's go Blauers.