Galderma Group AG (GALD) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to Galderma's conference call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Emil Ivanov, Head of Strategy, Investor Relations and ESG, to introduce the call. Emil, please go ahead.

Thank you, operator. Warm welcome to Galderma's Full Year 2025 Financial Results Webcast. The press release, along with Galderma's 2025 annual report were published today at 7:00 a.m. Central European Standard Time and can be consulted on our corporate website at any time. Today's presentation slides as well as a recording of this webcast will be made available on our website after the call. Please be advised that today's presentation contains forward-looking statements, which should be treated with the appropriate level of caution as detailed on this slide. Let me now introduce today's full year financial results webcast. Dr. Flemming Ornskov, the CEO of Galderma; and Thomas Dittrich, CFO, will provide a performance update and discuss the financial results for the full year, followed by the outlook for both '26 and the midterm. After the presentation, both Flemming and Thomas will be available to answer questions from the financial analysts before Flemming provides his final remarks to close the webcast. With this, I'd like to invite Flemming to start the -- with Galderma's highlights for 2025. Flemming, over to you.

Thank you, Emil. Good morning, good afternoon, and welcome to Galderma's Full Year 2025 Financial Results webcast. It's an honor to be here today and to confirm yet another record performance for the company. 2025 was a year of opportunities, and thanks to our team's hard work, we made important progress towards our ambition of becoming the undisputed dermatology powerhouse. We now have a robust foundation to continue driving very attractive top and bottom line growth in 2026. Our journey as a dermatology category leader did not start in 2025, but 6 years ago with a transformation guided by our growth-focused integrated dermatology strategy. In 2020, we started our first year as a stand-alone company owned by private equity. It was during that time that we set a strong foundation for the business. We refocused our execution centered around dermatologists, and we fixed commercial fundamentals. We strengthened the portfolio and built a leading pipeline across our product categories. We established our integrated dermatology platform, including optimizing our distribution channels and vendors. And in a tightly managed environment, we also learned that we had to be focused to succeed. This is now embedded in our culture, especially in our commercial execution. It is one of Galderma's strength to be able to focus on a select number of key priorities and deliver on them consistently. In 2024, we reset our capital structure as a newly listed company on the SIX Swiss Exchange. Over the following 2 years, we emerged as the dermatology category leader. With our focused commercial execution, we reignited broad-based growth across our 3 product categories, outperforming each market, respectively. We expanded the portfolio and fueled our growth momentum with differentiated innovation, including 2 launches with blockbuster potential. Lastly, we strengthened our scale commercially by further penetrating key growth markets and operationally by expanding our in-house manufacturing. Capacity has been significantly increased at our manufacturing sites. This includes completing the build-out of our biologics sites in Uppsala, alongside our announcement to further invest in the U.S. through contract manufacturing partners. For 2026 and the years ahead, we're set to advance on our growth journey. With our transformation now largely complete, we also entered the phase with a diversified long-term shareholder base. As part of this, we welcome L'Oreal's increased ownership now at 20% following the successful close of the previously announced transaction. In this phase, our priorities are clear: execute as leaders in each of our product categories, continue to invest in sustainable growth by rolling out differentiated innovation, progressing our pipeline and exploring inorganic opportunities, further scale our footprint and penetration of attractive markets, maximizing opportunities in the U.S. and in international markets. It's an exciting time at Galderma. I'm grateful to enter this next stage of growth with our talented teams around the world without whom none of this would have been possible. Looking closely at 2025, there were many highlights beyond our record performance. Let me share a few across the 3 pillars of our integrated dermatology strategy. Starting with our broad and innovative portfolio, we had launches across nearly all of our key brands, including some exciting differentiated products as well as expansion of our geographic reach. We also progressed and invested in our broad innovation pipeline. This includes attractive early-stage assets with promising commercial potential. In injectable aesthetics, this included key submissions and approvals from the broadest clinical trial pipeline in the industry. In dermatological skin care, product introductions with breakthrough benefits in both our flagship brands and in therapeutic dermatology, new approvals as well as the initiation of 2 clinical trials to explore new potential indications for nemolizumab. Next, looking at our global scale, all of our top 10 markets grew in 2025 with 8 delivering double-digit growth. We continue to expand our commercial operations to enhance our reach across all channels. We now have a sales force of over 2,500 globally as we continue to invest in many of our top markets. In dermatological skin care, our digital playbook continues to deliver with e-commerce being our fastest-growing channel with over 25% year-on-year net sales growth. Our digital-first execution with Cetaphil also continues to reach billions of consumers globally. We'll discuss several examples of that later in the presentation. Last, but of course, not least, looking at our market-leading education and services. Our increased engagement reached over 290,000 health care professionals in 2025 through education, training and medical awareness activities. This included a prominent presence at key medical congresses and numerous proprietary educational events, including over 10,000 events with GAIN, our Galderma Aesthetic Injector Network. ASPIRE, our aesthetic loyalty program, expanded into Brazil, one of our top aesthetics markets. In the U.S., its membership grew double digit in the year with now over 4.8 million consumers. Together, these examples demonstrate our leadership in dermatology and the strategic drivers behind our market share gains across all product categories. Moving to our financial highlights. Capitalizing on a year of opportunities, Galderma continued on its strong growth trajectory on both net sales and profitability. Galderma delivered record net sales, surpassing USD 5 billion in a year for the first time. Net sales year-on-year growth was 17.7% at constant currency with broad-based growth across geographies and product categories. Galderma delivered core EBITDA of USD 1.2 billion with a margin of 23.3%. This represents a year-on-year margin expansion at constant currency, which exceeded initial expectations in a year of major launches and reinvestments in our growth. Core EPS grew to USD 3.69, up 76.7% year-on-year, driven by strong core EBITDA growth, reduced financing and tax expenses as well as share repurchases. We expect another year of strong opportunities in 2026 with very attractive double-digit growth and significant expansion of profitability. We are guiding to net sales growth of 17% to 20% at constant currency. With our proven integrated dermatology strategy, growth will continue to be driven by a continued focus on execution, innovation with the ramp-up of key launches and further geographic penetration. We're guiding to a core EBITDA margin of approximately 26% at constant currency. This represents a significant margin expansion in another year of launches and growth investments. Overall, we're confident in Galderma's trajectory and our ability to outpace the market despite intensifying competition and a volatile external environment. As a result, we are specifying our midterm guidance within and above the previously stated ranges. More on that later. Now let's turn to our performance update, including key highlights by product category. For the full year, Galderma delivered USD 5.2 billion. Net sales year-on-year growth for the full year was 17.7% at constant currency. Growth was widespread with double-digit growth in both geographies. We also outpaced the market in each of our categories where products we have. In the fourth quarter, net sales growth accelerated to 25.2% year-on-year at constant currency, with growth accelerating across all product categories. Net sales growth overall was predominantly volume-driven with a favorable product mix offsetting pricing effects from the competitive environment. In injectable aesthetics, we remain on our strong growth trajectory, consistently outpacing the market across geographies and across subcategories. Net sales growth continued to be driven by focused execution, new product launches and further geographic penetration. Net sales for the full year were USD 2.572 billion, up 11.5% year-on-year at constant currency. For neuromodulators, net sales were USD 1.471 billion, up 14.3% year-on-year at constant currency. Both geographies delivered double-digit net sales growth and continued to gain market share. Dysport continued to outperform globally with strong growth in key markets. Relfydess enjoyed a strong year of launches, setting a high growth base for 2026, and our strong fourth quarter performance in neuromodulators, notably in key international markets more than offset the phasing benefits experienced in the third quarter. For fillers and biostimulators, net sales were USD 1.101 billion, up 8% year-on-year at constant currency. Both geographies continued to gain market share. Fillers continue to be impacted by market softness and pricing pressure globally. This was a result of lower consumer demand and aggressive promotional activity from competitors, especially in the mid space. We continue to focus on our more differentiated offering with net sales growth, especially driven by the uptake of new launches, led by Restylane SHAYPE in Brazil and by our medication-driven weight loss activation. In biostimulators, Sculptra accelerated its double-digit growth, remaining our fastest-growing injectable aesthetics brand. Net sales growth was particularly high in key international markets, especially in China, where we had an exceptionally strong first year of launch. We're excited for the future of neuromodulators as we reflect on our first full year with Relfydess, widely recognized for its superior profile, it is shaping the future of neuromodulation. It is gaining share by helping us further penetrate existing accounts and also win new accounts where we can also leverage Galderma's full portfolio. It has also strengthened our confidence in our neuromodulator portfolio strategy with Dysport continuing to grow in markets where Relfydess was launched. Recent in-market surveys and our advisory Board confirm that Relfydess is perceived by both health care professionals and patients as benefiting from high satisfaction overall, rapid onset, long duration of action and ease of use. This is reflected in the very positive uptake in markets so far. While, of course, the ramp-up will be progressive, which is typically in this space, the trajectory is strong. Relfydess has already surpassed [indiscernible] in terms of sales, which was launched 3 years earlier. While there's always a lag in injectable aesthetics data, the third quarter of the year suggests that Relfydess is already at least a top 5 brand in neuromodulator sales across European markets where launched. Looking at the third quarter data for the first 2 markets where we launched, which was Spain and Germany, we held double-digit market share and we were already ranked third after Dysport and Botox. Meanwhile, we're also progressing with our global expansion plans. Relfydess is now approved in 23 international markets. This includes recent approvals in additional markets. We expect multiple more approvals to follow in '26. We have launches underway this month in multiple countries, including New Zealand. We were also in the progress of launching in the United Arab Emirates. But given the situation, our focus has now shifted to the safety and the well-being of our colleagues and customers. On February 2, we also announced that the U.S. FDA accepted our resubmission for Relfydess' BLA. With Relfydess, we're excited to be pioneering the next generation of neuromodulation and strengthening our leadership in injectable aesthetics. In fillers and biostimulators, we are also making progress in preparing the next phase of growth. we continue to invest in our fillers portfolio, which is already the broadest on the market with innovative launches and demand generation activities. In the U.S., we received the approval of the chin indication for Restylane Lyft. This strengthens one of our top-selling Restylane products. In Japan, we saw the approval of Restylane Defyne and Refyne, a first step in expanding our currently limited portfolio in a major aesthetics market. We also unveiled our new Restylane campaign, which aims to support health care professionals in advocating for the segment with patients, reinforcing fillers as an integral part of their aesthetic journey, Wake Up to Restylane reframes Restylane from a clinical procedure into an always-on natural beauty regimen backed by science. In biostimulators, we continue to strengthen our leading position and expansion in regenerative aesthetics. The launch of Sculptra in China was very strong in '25. Sculptra is rapidly gaining market share and expanding its reach with over 30,000 health care professionals already trained. In addition, a new chapter opened for the brand as we expanded our Sculptra label in Europe to include 4 new body indications. While perhaps a more niche segment than the face, the volumes injected to treat body indications are often significant. We're also shaping the aesthetic journey for patients undergoing medication-driven weight loss with leading education and training around our proven portfolio. Not only did we run and publish the first-of-its-kind clinical trial with Restylane and Sculptra, we published the first international consensus guideline for GLP-1 patients. In the U.S., we saw results from our focused direct-to-consumer campaign to generate new demand for health care professionals. It has had promising initial uptake, leading to a high conversion of new patients starting on our portfolio. We also announced a new focus for '26 onwards around the aesthetic needs of perimenopausal patients. This is a historically underserved population with high unmet needs, and it's growing quickly, expected to impact 1.2 billion women by 2030. There is an opportunity to serve these women with fillers and biostimulators, the most frequently considered treatment to address aesthetic concerns related to menopause. Galderma is very well positioned to capture this opportunity. Moving forward, menopausal status is being incorporated into all of our clinical trials. As you can see, there are a lot of drivers underpinning our recent net sales acceleration in fillers and biostimulators giving us confidence for the future. Moving to dermatological skin care. Both Cetaphil and Alastin continued on their strong growth trajectories, outpacing their respective segments globally. Net sales for the full year were USD 1.449 billion, up 9.3% year-on-year at constant currency. Growth was very strong in international markets with Cetaphil gaining share and delivering exceptional performance in Asia. China and India continued to deliver outstanding net sales growth with particularly strong net sales from year-end activations. In international markets, Alastin continue to ramp up. In the U.S., growth was driven by Alastin, growing double digits. Cetaphil in a year of constrained consumer demand had a strong fourth quarter from the uptake of recent launches and year-end activation. Dermatological skincare net sales growth continues to be driven by holistic execution and targeted innovation while leveraging synergies from Galderma's full portfolio. E-commerce remains the fastest-growing channel, where we see strong results from Cetaphil's digital-first approach. Cetaphil is indeed gaining growth momentum. We saw strong results from our digital-first global activations to support engagement and growth. Earlier in 2025, we launched Cetaphil, now one of the world's largest skin care advocacy networks. After 6 months, it had over 2,100 content creators engaged and over 110 million organic video views. We are proud of the community, which has an engagement rate that is nearly 2x higher than the skin care category average. We also launched DermONTour, a global tour offering free dermatology consultations. The immersive science-driven pop-up experience has been hosted already by 4 U.S. cities with a social media reach of over 100 million views. I would be remiss to not mention China, which had another outstanding performance in the fourth quarter of last year. This included another record-breaking Double 11 season, selling 600,000 units in only 20 seconds, yes, 20 seconds in collaboration with the #1 Chinese live streamer. For the full year, Cetaphil outperformed the skin care market online during the period compared to skin care sales from the top e-commerce platforms and top dermatological skin care brands. It also included a record campaign centered around the [indiscernible] movie with over USD 50 million in sales in just 1 week. This strong fourth quarter net sales momentum sets the stage for 2026. I'm happy to share that our China team is already off to a great start with good traction behind recent Chinese New Year activities. In dermatological skin care, we have many expansion opportunities ahead. With Cetaphil, we've successfully launched differentiated innovation. This includes a number of new products launched first in the U.S. with the opportunity to now expand in international markets. In '25, this included the international rollout of Cetaphil's Bright Healthy Radiance and Gentle Exfoliating lines. Looking ahead, we're excited about rolling out Cetaphil's skin activator hydrating and firming line and the nourishing oil to foam cleanser. Both deliver breakthrough benefits and created entirely new categories with strong results in the U.S. so far. Looking at the skin activator specifically, it is the #2 new product innovation in the U.S. hand and body lotion segment across dermatological skin care brands following its launch in September 2025. Alastin has expansion opportunities globally with its continued rollout in international markets and further penetration in the U.S. where it is performing very strongly. In 2025, Alastin went up 1 position in the U.S. and is now ranked #4 in sales among physician dispensed health skin care brands. It continues to be the fastest-growing of the top 5 physician-dispensed skin care brands in the U.S. and the only one growing double digits in sales last year. With its physician-first approach, Alastin is strengthening its leading position as the preferred peri-procedure skin care brand. The launch performance has also been very strong for Alastin's Restorative Skin Complex featuring our next-generation TriHex Technology. This formula is proven to support the skin's own regenerative abilities, which pairs very well with our injectable aesthetics portfolio. Here again, there are many reasons to be excited for accelerated momentum in dermatological skin care. Moving to therapeutic dermatology. Growth was very strong, driven by an outstanding launch trajectory from Nemluvio in prurigo nodularis and atopic dermatitis. This growth more than offset the anticipated decline in the category's mature portfolio, especially in the U.S. Net sales for therapeutic dermatology were USD 1.185 billion, up 50.2% year-on-year at constant currency. For the year, Nemluvio contributed USD 452 million in net sales. The vast majority of the Nemluvio sales were recorded in the U.S., which we'll discuss further shortly. Overall, for the full year, Nemluvio sales were split almost evenly between prurigo nodularis and atopic dermatitis with the share of the latter increasing quickly. While international sales are only a small portion of total Nemluvio sales, the launch trajectory has been even stronger there. In Germany, the first international markets where we launched, we've gained even greater market share in total prescriptions than in the U.S. Meanwhile, the launch in other markets looks very promising. This includes the U.K., where our teams have done an excellent job securing access to formularies and are significantly outperforming sales forecast. In the U.S., which is our largest opportunity for Nemluvio, the launch trajectory has been outstanding. Its significant market share gains are underpinned by its differentiated profile as well as by our team's effort to expand the sales force, deliver market-leading education, and enhance market access. In the U.S., Nemluvio's market share in paid new patient starts, also known as NBRx' was trending at about 35% in prurigo nodularis and about 8% in atopic dermatitis from the end of December '25 to the end of January of this year. Across both indications, the majority of U.S. patients initiated treatment continue to be new to biologics, yes, new to biologics. Galderma has broad access in commercial plans for Nemluvio in the U.S. as a first-line biologic treatment, which has been further increased by approximately 85% currently. We also secured our first major access win in Medicare as of January 2026. One of the 4 major Medicare payers have now granted Nemluvio first-line formulary access, and we're engaging with the others to broaden coverage. As mentioned, the real-world experience for Nemluvio has been greater than initially expected. While itch relief remains the main reason to prescribe Nemluvio, physician experience with the product also provides conviction on skin clearing. On this slide, you can see the results of our latest survey with health care professionals in the U.S. on the brand attributes for moderate to severe atopic dermatitis. The attributes are ordered by importance and rated by prescribers with the results split in 2 on the slide. On the left are prescribers with low or limited experience with Nemluvio and on the right are adopters with greater experience with Nemluvio. The most important first attribute are itch-related. And Nemluvio in dark purple, is perceived ahead of the leading brand among all prescribers. This is perhaps not surprising given Nemluvio's strong clinical differentiation and recognition as the therapy of choice for itch. In the remaining 2 attributes, Nemluvio adoptors perceive its superior benefits. The difference is particularly important when looking at skin clearance, where Nemluvio moves from being perceived significantly worse than the leading brand to being perceived as better than the competitor based on real-world experience. We're confident in Nemluvio and the meaningful impact it can have on patients' lives. It drives our teams to improve our reach and gain buy-in from more and more prescribers. This is what also drives our conviction in the raised peak sales potential of the treatment, which we will discuss later in the presentation. Looking at our geographies. Net sales for both international markets and the U.S. grew double digits in the year. Growth was broad-based with all of our top 10 markets growing. International, our larger reporting geography, sustained its strong net sales growth momentum in highly attractive, largely underpenetrated market. Overall, in international markets, injectable aesthetics delivered double-digit net sales growth and outpaced the market in both neuromodulators and fillers and biosimulators. Despite a soft filler market, each brand delivered growth with market share gains in most key markets. Dermatological skincare also delivered double-digit net sales growth with particularly outstanding growth in India and China. Therapeutic dermatology net sales growth was mainly driven by Nemluvio with strong launch trajectories in its first European markets, while the mature portfolio delivered modest growth. The U.S. delivered net sales growth in each product category and was especially strong for neuromodulators and therapeutic dermatology, thanks for Nemluvio. Injectable aesthetics outgrew a soft market and gained share in both neuromodulators and fillers and biostimulators. Fillers continue to be impacted by market softness, while neuromodulators and biosttimulators net sales grew double digits. Dermatological skincare growth was mainly driven by Alastin growing double digits, while Cetaphil had a strong fourth quarter from the ramp-up of recent launches and year-end activations. Therapeutic dermatology had outstanding growth driven by Nemluvio's strong trajectory, which more than offset the anticipated decline in the mature portfolio. As part of our growth journey, we continue to advance our ESG agenda as an integral part of our strategy. In 2025, we revisited our focus areas following a detailed double materiality assessment, the results of which we have shared in our 2025 annual report. We continue to make progress across all the highlighted areas on this page with particular focus on sustainable products and production and medical education and training, which are closely linked to our strategy. In addition to driving our ESG agenda, we challenged ourselves to enhance our disclosure and have, for the first time, obtained limited assurance on 9 nonfinancial indicators. Finally, I'm pleased to share that our ESG agenda has gained external recognition through improvements in key ESG ratings, including an AA rating from MSCI in 2025. With these business highlights complete, I would now like to hand over to Thomas to provide more details on Galderma's financials.

Thank you, Flemming. It is my pleasure to comment on Galderma's full year financial results. Here is the financial scorecard for the full year 2025. It shows Galderma delivered record performance across the board. Flemming just presented the top line growth. So let's now look at the rest of the scorecard in some more detail on the next slide. Core EBITDA grew to USD 1.211 billion, up 18.9% year-on-year at constant currency. Core EBITDA grew ahead of net sales, exceeding initial expectations in a year of major launches and reinvestments to drive growth. The reported core EBITDA margin was 23.3%, representing a margin expansion of 24 basis points at constant currency compared to 2024. This was possible due to ongoing operating leverage as well as a reduced adverse P&L impact from nemolizumab as a result of its greater sales. Improvements in operating expenses also offset the impact of pricing effects and unfavorable product mix on gross margin. Core net income grew even more meaningfully to USD 871 million, up 75.4% year-on-year. This was driven by strong core EBITDA growth as well as reduced financing and tax expenses, which I'll cover later on. This translates to core EPS of USD 3.69, up 76.7%, benefiting from the drivers I just mentioned for core net income and on top, the share repurchases we executed in 2025. Here, on the next slide, you see that Galderma's integrated dermatology platform provides operating leverage for the group. This is showcased in the year-on-year improvement in underlying profitability, defined as our core EBITDA margin, excluding the core EBITDA impact from nemolizumab. For 2025, it grew to 28.7% despite a year of significant launches and reinvestments into growth drivers in a competitive environment. Recall, we started showing this evolution a few years ago, given the important investments in nemolizumab prior to having any sales. Please note that we no longer plan to disclose this view going forward now that Nemluvio has been in the market for over a year and given that we expect Nemluvio to break even on a contribution basis later this year. We'll get into this topic a little bit more in a minute. Here, the strong cash generation in the year supported our deleveraging trajectory as well as shareholder value creation in the form of a dividend and share repurchases. Let's look at the key movements between our cash position beginning of January to end of December '25. On cash generated from operations, Galderma drove very strong cash generation for the year, driven by significant core EBITDA growth and favorable net working capital movements. Net working capital positions improved significantly behind effective net working capital management, structural improvements driven by shifts in market and product mix as well as phasing benefits. Looking ahead, while expecting the structural net working capital improvements to stick, we expect other parts to normalize, reflecting our fast growth trajectory. All of this is reflected in our additional modeling metrics, which you'll find in the appendix of our press release and appendix of this presentation. On interest and taxes, interest payments were lower in 2025 than the previous year, reflecting the benefits from our deleveraging and refinancing activities. Our tax expenses were also lower, predominantly as a result of a onetime noncash benefit from recognizing deferred tax assets on past tax losses in Switzerland. On CapEx and milestones, the movements reflected what was shared in our financial results for the first half of 2025. Core CapEx improved, benefiting from phasing of project spend with some now falling into outer years as well as continued focus on spend efficiencies and site operating performance. CapEx as a percentage of sales also benefited from the high net sales growth. Meanwhile, the last expected milestone payment for nemolizumab was paid for a total of $23 million. Finally, on financing cash flow and foreign exchange, our strong cash generation enabled us to repay USD 240 million of debt early to repurchase shares for a total of USD 363 million and to make a dividend payment of $41 million. Reflecting all the activities we just discussed and our ambitious deleveraging trajectory, I am pleased to report that net leverage came down to 1.5 turns at the end of December. This was driven by very strong cash generation in 2025, as you can see from this slide, while also delivering significant shareholder returns over the period. Let me also highlight the substantial progress we achieved in refinancing our IPO-related term loan for a total of USD 1.26 billion in 2025. To do so, we issued several bonds benefiting from 2 investment-grade credit ratings, BBB positive by S&P, and BBB stable by Fitch. In February 2026, we also successfully refinanced our revolving credit facility at more advantageous terms and increased its size to USD 1 billion. Moving on to capital allocation. Our capital allocation priorities remain focused with priority on organic growth. As we strengthen our financial profile, we also increased our strategic optionality. If we look at our key achievements for 2025, first and foremost, we maintained Galderma on a strong sales growth trajectory despite an uncertain environment with appropriate investments and focused execution to outpace the market. In terms of business development and licensing, we completed our final milestone payment for nemolizumab. Given our rapid deleveraging trajectory, we reached our midterm target for net leverage to be below 2 turns early. Going forward, we will focus on maintaining our solid investment-grade rating. And in terms of shareholder returns, in addition to the share repurchases already mentioned, we are proposing a dividend of CHF 0.35 per share, an increase of more than 230% versus the dividend per share paid out last year. Subject to approval at the upcoming Annual General Meeting, the dividend payout represents approximately 16% of the reported net income for 2025. We have just received the confirmation from the Swiss Federal tax authority on the tax treatment of the proposed dividend payment. I am pleased to confirm that the proposed dividend payment in 2026, which is paid out from reserves from capital contributions will be 100% exempt from Swiss withholding tax. 2025 was a year of outstanding performance with many achievements that all our Galderma colleagues and teams can be proud of. Now as we look ahead, I would like to invite Flemming to share our attractive outlook for 2026 and the midterm.

Building on a strong year, 2026 is another year of opportunities for us to drive growth. We remain focused with 5 clear priorities. First, we're now in our second year of ramping up significant launches. This includes Nemluvio and Relfydess, our 2 biologics with blockbuster potential as well as Sculptra in China and Restylane SHAYPE globally. We have additional Restylane launches planned, including our recently approved next-generation syringe and as usual, ongoing innovation in dermatological skin care with particularly exciting opportunities internationally. Second, global market share gains remain a major opportunity. We have multiple opportunities internationally, building on our strong momentum in underpenetrated and fast-growing market. And in the U.S., we're doubling down on growth-focused execution. Third, we continue to strengthen our financial profile. For 2026, the focus is on maintaining an investment-grade balance sheet, completing our refinancing journey and continuing to deliver robust cash generation. Fourth, we're increasing our focus on long-term growth. With more strategic optionality, we can invest in further developing our pipeline. Internally, we continue to invest in new indications and SKUs. We also have the option to explore external opportunities where we see a strong strategic fit. Fifth, we continue a dynamic approach to commercial investments to drive results. This makes our model resilient and the ability to leverage our broad portfolio and geographic reach in order to navigate market volatility and capture opportunities. Building on this strong foundation, I look forward to leading the company through this next phase of growth. Based on our strong momentum and confidence behind very visible growth drivers, we're guiding to net sales growth of 17% to 20% at constant currency and a core EBITDA margin of approximately 26% at constant currency for the full year. We're confident in our ability to deliver despite existing uncertainties. Beyond a volatile market and geopolitical environment, we see continued business pressures across our portfolio, especially in injectable aesthetics. And in the U.S., we expect competitor launches and continued pricing pressures. We're also awaiting decisions on regulatory approvals from the U.S. FDA. In that context, there's even greater value to the resilience and the flexibility provided by our dynamic approach to commercial investments. Let me hand over to Thomas again to provide some additional commentary on expectations for the year ahead.

Thanks, Flemming. Let's now look at sales by product category. We expect each product category to outgrow their respective markets. Injectable aesthetics is expected to grow approximately 12% to 13% year-on-year at constant currency. This includes strong growth for neuromodulators on a high comparable base with the annualization of many 2025 well fitted launches. Fillers and biostimulators are expected to grow low double digits based on continued strong momentum. The injectable aesthetics product category is expected to follow its typical quarterly seasonality, including softer growth in the first quarter due to multiple launches in the same period a year ago and then strongest growth in the fourth quarter. Dermatological skincare is expected to carry the strong year-end growth momentum forward, nearly maintaining the fourth quarter 2025 growth rate at constant currency for the full year 2026. Growth for the product category is expected to be higher in the first half of the year compared to the second half due to a high comparable base from outstanding performance in the second half of 2025. Therapeutic dermatology growth is expected to continue to be driven by Nemluvio. Nemluvio's launch trajectory in the first quarter is expected to reflect typical U.S. pharma seasonality, including January insurance renewals, plus the effect of expanded access within government channels and of recent winter weather in parts of the U.S. As a result, we expect Nemluvio sales in the first quarter of this year to be slightly below the sales level from the fourth quarter of 2025. Importantly, we expect these effects to be transitional and not be reflective of underlying demand for the year. Nemluvio remains on a strong growth trajectory and is expected to continue its rapid ramp-up towards blockbuster sales run rate in the third quarter of 2026. In other words, approaching approximately USD 250 million in net sales in the third quarter. The mature therapeutic dermatology portfolio is expected to slightly improve compared to the previous year, but is not expected to contribute to growth in the midterm. Growth of the mature portfolio in 2026 is expected to be positive in the first half compared to a particularly low base last year. In the second half, we expect to see an impact from a generic entry in select international markets. As for core EBITDA, it will be driven by Nemluvio's contribution and continued operating leverage while allocating appropriate levels of investment into growth drivers in a competitive environment. Core EBITDA margin expansion against the full year 2025 base is expected to be greater in the second half of the year following typical seasonality patterns and the growing contributions from the strong Nemluvio trajectory, which, as mentioned before, is expected to breakeven on a contribution basis in 2026. With guidance at constant currency, it is important to note that based on foreign exchange rates as of the end of February '26, the U.S. dollar depreciation is expected to have a positive impact on reported net sales and a negative impact on reported core EBITDA margin. This is due to our headquarter costs being denominated mainly in Swiss francs. A table with Galderma's exposure to key foreign exchange currency pairs is available in the appendix of the press release and in the appendix of this presentation. In regard to tariffs, our exposure remains manageable with our guidance assuming a 15% U.S. tariff on the import value of Restylane and Sculptra. Before I hand over to Flemming again, please note that we have also provided additional modeling metrics in the appendix. Flemming?

Thank you, Thomas. So we are raising our expectations for Nemluvio following a stronger-than-anticipated first year on the market. We are now confident in greater potential for the product, especially with the high demand and positive real-world experience we discussed earlier. We are raising our peak sales expectations in prurigo nodularis and atopic dermatitis from about USD 2 billion to about USD 4 billion. We expect Nemluvio to break even in 2026, 1 year ahead of initial expectation. And as mentioned, we now expect to approach a quarterly blockbuster sales run rate in the third quarter of this year. Based on greater expectations for Nemluvio and confidence in our broad-based growth trajectory, we're specifying our 2023 to '27 midterm guidance. Our expectations are all within or above the previously stated ranges. On the top line, we expect to continue to outperform the markets we compete in. We expect a net sales CAGR for '23 to '27 at constant currency as follows: For the group, 15% to 17% above previous expectation, especially driven by the expected upside for Nemluvio. For injectable aesthetics, 10% to 12%. This includes continued strong neuromodulator momentum and normalization of the fillers and biostimulators growth rate in '27 after many impactful launches in '25 and '26 in our top 3 markets. For dermatological skin care, 8.5% to 10.5% with continued above-market growth momentum for Cetaphil and for Alastin. For therapeutic dermatology, above 30%. This includes Nemluvio's strong trajectory, as we just discussed. Recall that we do not expect the mature therapeutic dermatology portfolio to contribute to growth over the midterm. In terms of bottom line, we expect a margin expansion of 450 to 550 basis points at constant currency for '27 compared to a margin of 23.1% in '26. The raised margin expansion guidance reflects Nemluvio's margin drop-through as well as our continued reinvestment in growth. In order to continue to outperform the market in each product category, it is key that we maintain appropriate investment levels. Please note that our midterm guidance is subject to the same tariff assumptions and foreign exchange impact, as mentioned by Thomas. We will be hosting a Capital Markets Day in the second half of the year, where we will extend our midterm guidance horizon. It also provides time for our incoming Chief Financial Officer, Luigi La Corte to join our team. As communicated previously, Luigi will join on April 1 and will take over as CFO effective May 1. Thomas will remain with the company through Q2 '26 to ensure a seamless transition before pursuing another senior executive opportunity outside the company. We're happy to have Luigi with us soon with his deep financial leadership experience across the health care and consumer industry. Driven by the ambition to be the undisputed dermatology powerhouse, we have an exciting trajectory ahead. With that, I pass over to Emil.

Thank you, Flemming and Thomas. This concludes the introductory remarks of Galderma's financial results webcast. Before final remarks, of course, I would like to hand back to Sandra, our operator today, to open the call for analyst questions. [Operator Instructions] With this, Sandra, can you please open the line?

[Operator Instructions] We will now take the first question from the line of Ben Jackson from Jefferies.

Thank you for the granularity on all of the outlook both in '26 and 2027. It's much appreciated. I guess you made an interesting comment on the ex-U.S. Nemluvio side, talking about the initial traction you've seen there. So perhaps could you remind us what is the upcoming launch and reimbursement cadence going forward for new countries? And when should we expect the relative contribution to begin increasing from that ex U.S. segment for the drug?

Yes. So I would say I'm really proud of what the team has achieved just by any experience I've had with launching multiple blockbusters and biologics, the fact that we are well underway in Germany, which has even a stronger market share performance than the U.S. We are doing extremely well in the U.K., got access much earlier at a better terms than we expected. We have multiple countries, including now Spain coming online. We had Canada coming online. We have the Nordics, we have South Korea, and we have Italy. So yes, we have a whole host of countries. I would also say what -- it has been a bit hard, of course, with negotiating access, but the team has done really well. And we would not launch in any country we just discussed, for instance, Spain without feeling that it's financially is attractive for us. And yes, it will take some time just given the phenomenal performance in the U.S. before you will see, I think, meaningful contribution. But as all of these countries accumulate, as their performance is really strong, as we learn from some of the best launches we've had, I think you will see continued very strong performance. And in countries where we didn't expect such a strong performance, we've really seen very strong performance. I think Germany will probably be something to raise that as really outstanding, but most of the European countries where we launched have done really well.

We will now take the next question from the line of Victor Floch from BNP Paribas.

Victor Floch from BNP Paribas. Maybe one on GLP-1 because the feedback we've been getting from the U.S. is that GLP-1s are already seen as a material tailwind to dermatologist practices in the U.S. And I believe last time you've updated us on GLP-1, you've made it clear that it was still relatively immaterial at the group level. So can you comment on whether you've seen any notable changes since then and whether you expect this tailwind to more meaningfully crystallize in the U.S. this year?

Yes. We basically took a little bit of gaining the evidence first. So we did a scientific publication. We then did multiple proprietary symposium. We presented the data at major symposium. We did a consensus paper. And so we've done -- it doesn't help that the patient shows up if the physician is not prepared. So we spent an enormous amount of time and energy as you can see with all our educational events on making sure that the physicians knew which protocol to follow, what was the evidence, what did the publication show. So we probably spent a year or so on that around the world, starting off in the Middle East, where the idea actually more or less originated from to, now a big focus on the U.S. But we also realized to the point you raised, that without some consumer incentives or consumer awareness, you would not be successful. So we launched in the latter part of this year, we launched a campaign in the U.S., which was a consumer-directed campaign which was basically going out and highlighting with Lyft and Sculpt is the name what we could do. And we saw really attractive uptake. So we'll continue that campaign. So a little bit early to give quantitative, but I would say education first, training, science and then now rolling out the consumer, I think, has been a smart strategy. But the proof will be in the pudding. But what we hear from our doctors is more and more patients are coming in and many are still not getting the appropriate treatment. We think what we have shown with Sculptra and with the fillers, we have a very appropriate science-based treatment.

We will now take the next question from the line of hyam Kotadia from Goldman Sachs.

Just a quick one on the 2026 top line guidance. So you provided a range of 17% to 20%. And on the release, I can say that it says the guidance reflects existing uncertainties. Does this relate to the U.S. approval of Relfydess? And is there any other uncertainties within there? Because I'm just trying to gauge exactly what's factored in here and influencing where in the range you may fall. And I guess, if there is potential scope for upside should these uncertainties move in a favorable direction.

Yes. I think it's appropriate to have a broader range because we both externally have more changes that I think anyone has seen in a long period of time. The Middle East is one. I think there is tariffs is another economic situation in the U.S. So there's multiple things that can affect us one way or the other. We also see, of course, we have significant opportunities. So I'm not just focusing on the risk. But in terms of the internal risks or opportunities, yes, Relfydess, whether it gets approved or not in the U.S. is, of course, a factor. Will it change our guidance? No. Are there other factors that could change it? No. If Nemluvio continues on a very good trajectory, the guidance gives us a broad range for what would be the end results for Nemluvio. So I think we've given both you and us an appropriate ambitions, but also realistic target from what we can see of today.

We will now take the next question from the line of Thibault Boutherin from Morgan Stanley.

My question is on further Medicare access for Nemluvio. So you secured one payer. Do you have some visibility on where you could unlock the rest? Could we see this year? And what's included in your -- the comments you made for the Nemluvio trajectory in 2026?

Yes. As you know, we have phenomenal commercial access that was secured over a very short period of time, 83% or so. The number is, of course, dramatically lower. It is double digit, but it's significantly lower when you have one out of, what is it, 5 major plans in the U.S. for Medicare and Medicaid. And anything in life, it's a negotiation. We've just started it off. And I'm optimistic based on what I can see in the pipeline that we should be able to close more. But one, I don't want to put the team under undue pressure so that they would do deals that doesn't really long term make sense. But I'm optimistic. The other thing that is very important is our ability to get exemptions has been really strong. So that means that the doctors really want the product for their patients. So you know there's the opportunity when you're not covered to ask for medical exception. And all of these exemptions, we have a very high success rate. You don't get that unless the physician really feels this is a product that is worthwhile and that they want to take the time. So of course, this we can bridge for a period of time, even a long time. We did it for quite some time in '25. But I think going forward, of course, we will be focused on closing more deals. But I want to do it on the right terms for us, of course, also the right terms for the payers. But it comes when it comes, and we will clearly update you. But given our track record with the commercial plans, I think you can stay rather optimistic.

And I would just add to what Flemming said, it point to two things, within the government side, our success rate of getting prior authorizations approved, that's the key one for that part. But then big picture for AD, that market is mainly a commercial market and not a government reimbursement market. And AD is as a market opportunity 10x bigger than PN. So also keep that in mind. And just keep that in mind and with those things, we have factored that appropriately into our guidance ranges, and we are very robust there.

We will now take the next question from the line of Joffrey Bellicha Meller from Bank of America Securities.

I would like to talk a little bit about the Chinese market in injectable aesthetics. Are you already seeing the benefits from Sculptra's launch on the wider injectable aesthetics portfolio? Or is this an opportunity for incremental growth in 2026? Or is it coming beyond 2026?

Yes. I think it's important to realize just we haven't been a long time in China. I think we had one filler when I started in 2019, and that was not very successful. It was initially successful and then it was neglected. So that we now have a good chunk of our portfolio, and we want to put the rest of our portfolio there is huge progress. I think that China is extremely successful by any stretch. But they have a very interesting way of being successful, not by corporate mandate or by mandate by me, but by their ingenuity. So in Cetaphil, they focus on one or a few SKUs. The focus on the digital channel, as you saw, the recent Double 11 and all that phenomenal success, very focused strategy going to channels where we can be successful. We also have done a lot of the same as we launched the aesthetics portfolio. And we knew that Sculptra, even though there were 4 other products or so in the market, would provide a great opportunity for us. So I think it's 30,000 people that have been trained on it right now. We had a phenomenal launch meeting. Order rates are really impressive. So yes, this will, of course, drive not only our reach and also spill over to our rest of our portfolio because if you sell Sculptra, you get access. And if they're interested in Sculptra, they may take a look at our other parts of the portfolio. So your answer is yes, but I can't give you a number at this stage. But I'm absolutely sure that Sculptra will show up. You already see it in the growth rate as this continues because it's a huge market opportunity. And I think we will capture not only with Sculptra, but also with the rest of our aesthetics portfolio just outside.

We will now take the next question from the line of Harry Sephton from UBS.

Just could you touch on the cadence of some of the new SKU launches you have for the Restylane portfolios through this year? And also what you're expecting in terms of potentially expanding that Sculptra body outside of Europe and into other markets?

Thank you very much for the question. So again, here, if we talk outside the U.S., for instance, Restylane SHAYPE, we started off in Canada, now Brazil, and we will roll that out in a number of other markets. So we try to focus on a few and maximize what we do with them. In a number of opportunities, we also realized there was a significant need for a new syringe. So we recently got a new syringe approved, which will also facilitate and drive more customers to our portfolio because it's really attractive economically and develop with physicians themselves. And then in the U.S., of course, we got one approved end of last year. We have a number with the FDA. It's fair to say the FDA, you may have a few rounds. We've had that with multiple before you get them approved, but I'm sure that we have the opportunity whether it's SHAYPE or skin booster that either this year or next year, we should have an opportunity to get them approved. But the bar is high, particularly in the U.S., but the fact that we continue to deliver innovation to them and many of our products before they saw the light of the market had a round or two with the FDA. So we'll see, but we're very confident.

We will now take the next question from the line of Sophia Graeff Buhl Nielsen from JPMorgan.

You mentioned that Galderma continues to make market share gains in the U.S. and international in neuromodulators. Maybe could you expand on the market dynamics you're seeing for neuromodulators in both of these regions and what you've assumed in your midterm guide?

Yes. I think that this is a very dynamic market. I think that the opportunity we have is, of course, we have significantly expanded our reach and the frequency we have. I think if you look in many countries outside the U.S., we are now #1. If you look at the fact that where we have launched Relfydess, we mentioned that here, we've actually also seen the rest of the portfolio grow. We're the only one with a really strong portfolio. And what is also very important, in my opinion, is that in the U.S., yes, we've had a little bit AbbVie, maybe a bit distracted and which has given us a great opportunity to continue to gain share. But we still have a big share gap in the U.S. to Botox. So there's a lot of opportunity there, which is like we really would like at some point to get Relfydess approved because that would help us. But what are the lessons learned we have? One, that having a portfolio is really beneficial, bringing innovation, true innovation like we've seen with Relfydess in terms of onset convenience, duration, that is really helpful. And I also want to say we've had a continued strong year with our partner, Ipsen. We've had basically very few or no stock-outs. I know there's a lot of noise in the marketplace about Ipsen. I think it's very important. We have an excellent collaboration with Ipsen. I know there was a readout of another arbitration recently. It's also important. I've seen a lot of the press around that, that pertains to an agreement that was made in 2014, which was basically related to early-stage research and development. So the fact that you can say Ipsen, one, it allows them to develop the product in additional phases, Phase II and Phase III, but the exclusive distributor rights for us for neuromodulators for aesthetic indication doesn't change. It stays totally unchanged by this. So when it comes to commercialization, Ipsen would not be able to infringe those exclusive rights either themselves or through a partner. So I think it's important just to keep things in perspective. But let me just take a stage here. Ipsen is a great partner. We have, I think, done extremely well that we've had some clarification issues with 2 arbitrations, I think, shouldn't cloud for the fact. And yes, we'll see what the data for the land are. We clearly will raise our hand if they're attractive, we think we will be the best partner, but time will tell.

We will now take the next question from the line of Natalia Webster from RBC.

It's on the Nemluvio P&L impact. You mentioned that you're expecting it to break even in 2026. Are you able to provide a bit more details on the timing here, whether you still expect a negative impact in H1? And then any color on how you expect this to contribute to margin into 2027 and the ongoing investments needed here...

Even if you press Thomas hard, I don't think he's going to give you a date would be my sense...

Let's take that question. Natalia, your -- thank you for your question. But I think Flemming gave you kind of the frame, and that's, of course, the correct one. I mean, let's step back. We were guiding to Nemluvio potentially breaking even sometime in 2027. Now we're updating that and say it will happen this year. So really good news on the back of the stronger real-world evidence that doctors and patients experience the product is selling really well, and that, of course, drives margin drop-through. Some of that, we need to reinvest to drive growth because that growth doesn't come automatically. I think we highlighted that also. So we are already saying that we expect the brand to reach blockbuster -- quarterly blockbuster sales run rate, call it, $250 million a quarter and approach that level in Q3. Now any specificity on contribution margin or contribution that would be false precision because we have to drive the reinvestments, and I mean competition doesn't tell us early what they are planning to do or not to do. So please let me -- I don't want to be coy about it, but I just want to be realistic that this would be a false precision we would be giving you. But the big picture answer is one year early. And yes, to your '27 and beyond question, when you break even one year early roughly, then your margin drop-through goes only up, up and up for the group level, and that's the good news I want to leave you with.

We will now take the next question from the line of Gian-Marco Werro from ZKB.

One question also on your Nemluvio guidance, peak sales over USD 4 billion. To reconcile this new midterm guidance, could you share with us at least some key assumptions? Just as an example, what could be in your base assumption, the share of PN and AD or for example, also in PN, what could be the penetration in Medicare? And what is the potential sales also of other applications besides PN and AD?

Yes, that sounds like excellent modeling questions, and I can assure you we've done those modelings internal, but we have no plans to publish that externally. So the the guidance is what we think we can appropriately do in PN and in AD and how many markets we will get into. Of course, it would assume that we continue, even though as Thomas mentioned, Medicare and Medicaid is more for PN, we, of course, would assume that we get better penetrated than we are now. Also remember, this is the first year when we can go there. So we're not going to give guidance. I think we've given more than enough guidance about what the peak sales can be. And we have also given the guidance what sales were -- or you can see what sales were in '25. And I think it should be easy to calculate what it would be assumed range in '26. Thomas, anything you want to add?

Yes, Gian-Marco, just to be sure because I'm not sure -- your voice came through a little bit crackly, I just want to be sure we got this right or you got that right that the guidance we're giving here, the guidance upgrade is for AD and PN globally. So there's no additional indications in there. I wasn't sure whether you had inferred that, that was included. So I just want to make sure the guidance upgrade is apples-to-apples. It was AD, PN before, it's AD, PN now, above 2 becomes above 4. So that's the first one. And then what Flemming said is absolutely right. But if you step back, we're already competing for #2 in NBRx' in a hugely competitive market in AD. So we're -- yes, so that's -- you see we are already on a very strong position. And then also the slide that Flemming shared on the real-world evidence versus what we thought everybody else thought looking at our clinical trials, that's the main driver behind it. And then the rest, yes, we should not get really into. But thank you so much for your question and your interest in Nemluvio.

We will now take the next question from the line of Victor Floch from BNP Paribas.

I was just wondering whether you can -- I mean, like discuss a little bit the dynamics between Dysport and Relfydess because I think in your PR this morning, you said that they were both growing in markets where Relfydess has been launched. So I mean, I was just wondering whether you can explain whether we should assume that Relfydess is actually like opening a new segment in the market. And this is mainly down to its liquid formulation, which is particularly resonating in certain segments or rather driven by its long-acting profile driving potentially new patients to the toxin business? And final question whether you can say whether it further increased your enthusiasm for the potential U.S. launch this year.

Yes. I think what we have learned, we mentioned also in the presentation that we've done a lot of market research and survey. It is not one feature that people are particularly liking about Relfydess. It's convenience, onset, duration and multiple other attributes. I think what you are seeing is basically that as we are penetrating and becoming #1 in the more and more markets in neuromodulators that it's a differentiated market where there are different patients and doctors that prefer different modalities. And I think to be already #3 in some countries, 2 countries where we have launched or being #4, I think, across Europe, I think that is a high benchmark. But also keep in mind, that it is not like in many other products that you may compare us to in other categories, AD and others. This is a product plus a service category. So the fact that doctors are starting to use a product is not just because it's available. They will require training, familiarity, multiple instructions. That's why you saw the 290-some thousand physicians we've trained. So it's very important. A product by itself in whatever great the product is, particularly neuromodulator does not sell itself. You need the whole surround some and you need the whole infrastructure. And the fact that we continue to gain share, the fact that we can have a differentiated portfolio speaks also to the fact that we position these products really well. We don't ask doctors to switch. We say there's a new product. We go mainly to some accounts we were not in before so that we grow the overall pie and not just take share away from ourselves. So I think that's behind the question.

Last question is by James Gordon from Barclays, who sent it offline. Can you please comment on the health of the consumer? There was conflicting commentary received from peers with some concern on a slowdown, particularly in the U.S., but Galderma's performance seemed to accelerate in Q4.

Yes. I mean if the question is not their physical health, but what their outlook is, then I would say it's a very broad question. Situation is, of course, the consumers that we are looking at, whether they are in our consumer business or in our aesthetics business, we see they still want the same thing, and they're still willing to pay for the same thing. If you come with science-backed true innovation and you are in the places where I want to shop, whether it's increasing the Amazon or whatever it is on the platforms in China and you bring me something new, ideally also like some of the influencer events we mentioned in China with good attractive discounts and opportunities, then you -- they will buy. But it really means to talk about consumer in general, they make choices. So even if they have less available disposable income, they will make choices. And what we see in dermatology and dermatological skin care, if we focus on the right segments, if we focus on true innovation, if we realize that consumers are increasingly going to e-commerce and moving online, we still do fine. And then we have another trick up our sleeves. I know many of you are super focused on the U.S., and I'm sure a lot of it was by our peers where what they think about the U.S. But the U.S. is much smaller for us than international. We have much more growth in China, India, increasingly in Europe. So that's the advantage of a model. And remember, in the U.S., we are repositioning Cetaphil to be, I would say, more offer end, whereas in many parts of the world, both price-wise and others, it's already seen as a dramatic premium product like in China. But it takes -- given decades of a different promotion in the U.S., it's going to take us some time. Another great example is you couldn't call Alastin cheap. I also don't think it's luxury expensive, but it has a good price point. But we have rebranded the product. We have made it more luxurious. We have upgraded it. We have changed it. We have upgraded some of the ingredients, and we have phenomenal growth. Why are we having that? Because the doctors and the patients like the look and the feel, the constant innovation, the new indication that they compared with their aesthetic procedures where we already are in with the aesthetics. So surround sound and the long-winded answer to your question is the health, meaning the outlook for the consumers is good. But to generalize and say whether it's -- we don't have so many products, we have to worry about that. We worry about two products. And for those two, we see pretty robust outlook.

Perfect. Thank you, Flemming. This was our last question in the queue. Thank you so much to our covering analysts for the good questions. Now before we wrap up the call, just to hand over to xeo for his final remarks. Flemming, over -- yes.

So first of all, thank you for your time and all of the excellent questions. So I think driven by Galderma's proven and growth-focused integrated dermatology strategy, we talked a lot about that in the questions. We accelerated our performance in '25. Net sales growth was widespread across both geographies and product categories with each category outpacing their respective markets. Once again, we delivered record net sales exceeding USD 5 billion for the first time with strong growth mainly driven by volume. And core EBITDA grew ahead of net sales, and we delivered margin expansion at constant currency in a year where we also had major launches and reinvestment into growth. Core EPS growth, as you saw, was very strong and remained a high cash-generative company, which enabled us to significantly reduce our net leverage and obtain 2 investment-grade credit rating. So looking to '26, we expect another year of significant opportunities for Galderma driven significant net sales growth and core EBITDA margin expansion. So in light of our greater expectations for Nemluvio with peak sales rates and continued confidence in our growth rate, we specified also our midterm guidance ranges. So with this exciting growth trajectory ahead, I look forward, like I'm sure you do, to 2026 and the years to follow. So now with these closing remarks, I would really like to thank you for joining the call today.

This concludes today's conference call. Thank you for participating. You may now disconnect.