Almirall SA

MAD:ALM

Earnings Call Transcript 2023-Q1

[Pablo Divasson, Director of IR and Corporate Communications]

Good morning to everyone on the call. Thank you for joining us to review Almirall's Q1 2023 results and business update. As per usual, you can find the slides to this call on the Investors page of our website at almirall.com. Please move to Slide 2. I would like to remind you that information presented in this call contains forward-looking statements, which involve both known and unknown risk, uncertainties and other factors that make actual results to materially differ. With that, please advance to Slide 3.

Presenting today, we have Carlos Gallardo, Chairman and Chief Executive Officer; Mike McClellan, Chief Financial Officer; and Karl Ziegelbauer, Chief Scientific Office. Carlos will start with the highlights, biologic growth drivers and key products; Karl will provide you with details on the progress of the pipeline before passing to Mike to review the financials. Carlos will then make the closing comments before opening up for a Q&A session.

I would like now to pass it over to Carlos Gallardo, our Chairman and CEO, to discuss the quarterly highlights. Please move to Slide #5.

[Carlos Gallardo, Chairman & CEO]

Thank you, Pablo, and good morning, everyone. I am pleased to say that Almirall is off to a good start from both financial and pipeline perspectives. The strong business momentum from our growth drivers continues whilst we continue to prepare for lebrikizumab's launch. Based on the good business performance in quarter 1, we are reiterating our full year 2023 guidance. The performance of the business was driven primarily by our European dermatology business underpinned by our recently launched products that I will discuss later in the presentation. Let me highlight the performance of some of those. We continue to see strong performance from Ilumetri across geographies with continued good uptake in Germany and solid contribution from recent country launches. Since the launch of Wynzora and Klisyri in Europe, we continued increasing market share in key countries particularly in Spain and Germany for both products while making excellent progress with the rollout in other European geographies.

We also continue to work on the pipeline with positive clinical updates on lebrikizumab. Our ADvantage Phase IIIb market access study headline results are available and show positive results. Karl will shed more light on this later in the presentation. We continue to work with our partner Eli Lilly towards a targeted late 2023 European approval and launch soon thereafter. Klisyri large field study has shown that the administration of Klisyri in a surface of up to 100 square centimeters has been well tolerated. Finally, in the early stage pipeline, the Phase I study of our anti-IL-1-RAP is ongoing and we expect to launch Phase I for IL-2-mu-Fc during the year. Now let's move to Slide 7 for a deeper dive on lebri. In terms of key events, let me quickly revisit the timeline of the milestones leading us to the expected approval later this year. During this first quarter of the year, the ADvocate and ADhere studies were finally published in scientific journals.

Another important milestone ahead of the launch has been completed recently as we obtained positive headline results for the ADvantage Phase IIIb study. We are positive on the good clinical development of lebrikizumab and confident in the expected approval of the product towards the end of the year as we intensify the efforts to be prepared for a successful commercial launch. Let's move to the next slide to discuss the ADvantage in more detail. The ADvantage study headline data is already available achieving positive results. Safety was consistent with the known profile of lebrikizumab. As a reminder, the ADvantage study is a randomized, double-blind, placebo-controlled Phase III clinical trial to assess the efficacy and safety of lebrikizumab in combination with topical corticosteroids in adult and adolescent patients with moderate to severe atopic dermatitis who are not adequately controlled with cyclosporine A or for whom cyclosporine A is medically not advisable.

Let's move to the next slide to discuss Ilumetri a little bit in further detail. On the left side, you can see the market dynamics of the anti-IL-23 class in Germany where the class continues to lead new patient market share. There's a small decline in February possibly impacted in part by some biosimilar center in the market. But the IL-23 trend remains robust with around 40% market share of new patients within biologics. As you can see on the right side chart, Ilumetri continued to demonstrate strong performance during the quarter with net sales of EUR38 million in this first quarter 2023. Contribution of our European countries compared to Germany continues to grow and now stands at around 50%, a trend we expect to continue. Overall, we are pleased with Ilumetri's continued growth and we expect the good level of performance to carry on for the rest of the year.

Now let's move to next slide to complete the update on other key products. Let's start with Seysara. We have seen continued volume growth throughout quarter 1, which helped drive sales growth of 12% versus the same quarter last year. We have achieved a 5.8% market share in the antibiotic market and continue to focus our efforts on driving demand and improving the gross to net through better payer coverage and increasing access to more commercial lives. Also in the U.S., Klisyri has received a strong recommendation in the AAD guidelines. By comparison to the same quarter last year, sales grew by around 57%. This is a very good result for a new product particularly when launched in the market with numerous generic alternatives. Around 5,700 health care professionals have prescribed now Klisyri since its launch and we continue to receive very good feedback with good patient engagement.

We continue to differentiate Klisyri from what is already available in the market based on efficacy, tolerability and convenience. Additionally, we are working on the large field label expansion over the midterm. Preliminary data reveals that the product is well tolerated. We hope to launch a large field label next year in 2024 in the U.S. and in 2026 in Europe. With both products, Klisyri and Seysara, there has been good improvement in quarter 1 in TRx volume growth and market share. We think these are very good products with growth potential that would help our platform in the U.S. Moving on to Wynzora for patients with moderate to severe psoriasis, which we launched in May 2022. We are pleased with the progress having achieved sales of over EUR3.5 million this quarter with growing market shares in Spain and Germany.

With that, I will pass to Karl to cover in detail our pipeline section.

[Karl Ziegelbauer, Chief Scientific Officer]

Thank you, Carlos. This slide shows you the progress of our pipeline. We continue to advance our promising late stage pipeline while building an exciting early pipeline. For lebrikizumab, we have filed a marketing authorization application for atopic dermatitis with EMA and we expect approval in Q4 2023. The ADvantage Phase IIIb study met the primary endpoint at the Week 16 analysis. For Klisyri, we have completed the clinical study addressing the expansion to large field in the U.S. This Phase III multicenter, open label, single-arm study evaluated the safety and tolerability of tirbanibulin ointment 1% applied to a field of approximately 100 square centimeter on the face or scalp in about 100 adult patients with actinic keratosis. The administration of Klisyri was well tolerated. Based on those data, we plan a submission to FDA in Q3 2023 and would expect a potential approval of the label extension in 2024. As mentioned previously, a potential launch in the EU is targeted for 2026.

For Seysara in China, the Phase III clinical study met the primary and key secondary endpoints and we plan to file with the Chinese National Medical Product Administration in Q3 2023. For efinaconazole, we are on the regulatory review and target an approval at the end of 2023. The Phase I for our anti-IL-1RAP monoclonal antibody is ongoing and we aim to start Phase I for our IL-2-mu-Fc fusion protein that we develop in collaboration with Simcere later this year. As you can see, we are making very good progress with both our early and late stage pipeline and we are on track to strengthen our leadership position in medical dermatology. Now let's move to Slide 14. Let me now explain the next steps for lebrikizumab in more detail. As mentioned, we submitted a marketing authorization application to EMEA in October 2022. This application is currently under review and we expect approval in Q4 2023.

In terms of clinical updates, the ADvantage Phase IIIb study met the primary endpoint at Week 16 after the induction phase. The study will continue up to Week 52. We plan to report the detailed data at 1 of the relevant scientific meetings later this year. As already mentioned, the ADvantage trial is a randomized, double-blind, placebo-controlled Phase lll clinical trial to assess the efficacy and safety of lebrikizumab in combination with topical corticosteroids in adult and adolescent patients with moderate to severe atopic dermatitis that are not adequately controlled with cyclosporine A or for whom cyclosporine A is not medically advisable. In addition, a pediatric study was initiated by our partner Eli Lily in October 2022. We are also in advanced planning stage of an extension study to explore long-term benefits of lebrikizumab for up to 5 years and expect recruitment to be initiated in Q2 2023. We believe that atopic dermatitis is a chronic disease that requires long-term treatment.

We think that lebrikizumab with the potential as shown in our ADvocate studies to control the disease effectively with every 4 weeks dosing in the maintenance phase is suitable to achieve this. Furthermore, we are working with our partner Eli Lilly on additional clinical studies to maximize the value of lebrikizumab. In summary, we continue to be very excited about the progress we're making with lebrikizumab and the totality of the data and the profile that is emerging. Lebrikizumab shows a consistent profile across the clinical development program with more than 2,000 patients. The safety profile is mild and consistent with prior lebrikizumab studies in atopic dermatitis. Atopic dermatitis is an IL-13 dominant disease and we believe lebrikizumab is the best antibody targeting IL-13. Finally, for the maintenance of patients that responded at Week 16, every 4 weeks dosing show strong results that are like every 2 weeks dosing. Those data demonstrate the potential benefit that lebrikizumab would bring to both HCP and patients.

With that, I hand over to Mike.

[Mike McClellan, CFO]

Thanks, Karl. Now on to Slide 16. We're off to a good start for the year. As Carlos mentioned, Q1 2023 showed solid performance with net sales growth of 6% giving us the confidence to reiterate our 2023 guidance. We've seen strong sales growth in Europe from the dermatology portfolio, which helped drive the overall net sales and core EBITDA increase. We achieved total EBITDA of EUR51.8 million in Q1 2023, down from Q1 2022 mainly due to the lower contribution of other income due to last year's AstraZenica/Covis milestone. As most of the revenue related to the Covis agreement was recognized in 2022, we should expect a lower contribution in 2023 and going forward. In Q1 2023 our gross margin came in at 65.4%, which we have highlighted in previous quarters was impacted by higher energy cost and inflation, which affected some of our material purchases. This is in line with what we anticipated.

SG&A for Q1 2023 was EUR106.7 million as we continue to invest heavily in our newly launched products as well as some premarketing ramp-up for lebrikizumab, which will accelerate during the year. R&D investments increased to 10.3% of net sales in Q1 2023 compared to 9.6% that we had in Q1 2022 as the first quarter is typically a lower R&D investment quarter. We expect the levels to normalize for the full year in the range of 12% over sales. We finished Q1 2023 at 1.1x net debt to EBITDA, an increase compared to Q4 2022 mainly explained by the high amount of investments we had in the first quarter including the Efficib/Tesavel extension deal, the Physiorelax acquisition, Ilumetri and Klisyri milestones and an upfront payment to Isolex. We move to Slide 17 as you can see the dynamics of net sales here. The European dermatology business had a very strong performance with an 11.4% increase year-on-year.

We also had a strong Q1 performance from our General Medicine and OTC businesses in EU driven by good seasonality, which more than offset the expected decline in Efficib/Tesavel following the patent expiration and price decrease experienced in Q4 2022. Our U.S. business recorded a slight decrease in Q1 2023 and I will provide further details on the next slide. Rest of the World Dermatology sales showed good year-on-year performance while General Medicine has seen a small decline year-on-year driven by Imunorix in LATAM, which had a high demand during the pandemic and winter months in 2022. Overall, it's important to reiterate that our portfolio has limited patent expiry risk going forward in the midterm especially now that Efficib/Tesavel patent is expired and we are managing the pricing impact.

Let's take a closer look at the dermatology business on the next slide. On Slide 18, as you can see, we had a strong performance in Europe driven by the growth of Ilumetri. Other EU products are also benefiting from the initial launches of Klisyri and Wynzora in key markets as highlighted by Carlos. Focusing on our U.S. business, we see growth in the TRx and market share of both Klisyri and Seysara, which are being translated into higher revenue although we still need to improve the conversion to net revenue as we work to create a strong customer base for the brand. As you can see, the legacy business in the U.S. remains under pressure from the ongoing generic erosion related to Aczone and Tazorac. In the rest of world, there's some growth, including the introduction of Finjuve in South Korea with a partner.

Moving on to the full financial statements now on Slide 19. We have seen the net revenue development in the previous slide so let's focus on the rest of the P&L. Gross margin was in line with expectations at 65.4% given the ongoing pressure of energy costs and material inflation previously highlighted. Other income was lower than Q1 2022 due to the milestone income recognized last year, as mentioned previously, that did not repeat. R&D expenses are up double digits from 2022 and reached 10.3% of net sales, a figure we expect to accelerate during the year to a full year level of around 12% of sales. SG&A investments grew in the low double digits compared to Q1 2022, but this will also accelerate during the year as we prepare for the expected launch of lebrikizumab. Financial expenses have been impacted by a lower share price connected to the equity swap on the balance sheet, but the underlying financial expenses year-on-year are quite similar.

I'd like to remind you that our effective tax rate is affected by the inability to deduct U.S. tax losses against the profitable European business. We expect this to continue going forward. We do not have any unusual items in the quarter and therefore, the normalized net income is the same as the net income. Please move to the next slide to look at the balance sheet in more detail. On Slide 20, I'll just highlight a few key important factors. First, some financial assets have been reclassified to accounts receivable following the agreement with Covis to advance certain milestone payments related to the China respiratory business. And second, we finished Q1 2023 with a leverage of 1.1x net debt to EBITDA. As I said before, this is due to a high amount of investment we had in the first quarter, but we are comfortable with our debt ratio.

Let's look at the cash flow statement on the next slide. On Slide 21, you can see we delivered operating cash flows of EUR1.2 million in Q1 2023, a level similar to last year as operating cash flow is typically low in the first quarter due to the timing effects of accounts receivable and accounts payable. In the investing activities, we made key activities in Q1 2023 such as the Efficib/Tesavel extension deal, the Physiorelax acquisition, Ilumetri and Klisyri milestones and an upfront payment to Isolex. The divestments line here refers to the milestones and royalty collections from AstraZeneca and Covis. These have been classified as investing activities due to the reduced focus in our operations and are lower than 2022 based on the schedule agree. We do expect the overall cash flow to improve in the next 3 quarters very similar to the pattern we saw in the previous year.

Let me now pass it back to Carlos for his closing remarks.

[Carlos Gallardo, Chairman & CEO]

Thank you, Mike. So overall, as you've seen, we are very pleased to have delivered a very good operational performance in this first quarter. We also continue with all the preparations for a potential lebrikizumab launch, first approval later this year and launch thereafter. Also we are very pleased on how things are going in terms of our launches in all countries in Europe. So let's say that operationally, we are ramping up well. We are confident that we can deliver and that we are delivering in Europe and that we will do a good job with lebrikizumab. The progress in the pipeline also is very positive, we are hitting all our expected milestones. So good news there. And to close here, of course we continue to explore potentially inorganic growth. We have a healthy balance sheet. We are looking for the small opportunities bolt-on that might reinforce the business from an inorganic way, but at the same time do not distract us from our goal of delivering durable biologics. So overall, very pleased with how things are going.

Thank you very much. We conclude this presentation. Pablo, I hand back to you for instructions on the Q&A.

[Pablo Divasson, Director of IR and Corporate Communications]

Thank you very much, Carlos. Roberto, to you to start the Q&A, please.

[Operator]

[Operator Instructions] The first question from Jo Walton from Credit Suisse.

[Jo Walton, Credit Suisse]

A few questions, please. Firstly, on Ilumetri, you pointed to a biosimilar launch impacting in February. I wonder if you could tell us a little bit more about that, whether that's something that is permanently going to reduce your price in some way? On Klisyri, can we just confirm that if you are going to be able to file in the third quarter, it should be a 6-month review so we should see in probably mid of 2024 your ability to launch Klisyri large field in the U.S. And just to confirm that effectively with the positive tolerability, there's nothing else you need to do in the U.S. We understand there's more that you need to do in Europe. On Seysara, you're going to be able to file in 3Q, have you made any more decision on how you will commercialize that? You're going to file before you have a partner or could we see a partner being brought in quite quickly? And on lebrikizumab, you talk about recruiting a long-term extension study. Will that have an active comparator in that and is there anything you can tell us? You say that you are discussing with Lilly more studies that you might do. Can you give us some idea of what those might be? And my final lebri question is just to confirm that you haven't had any significant clock stoppage within the EMEA and that we should be able to see a full approval in the fourth quarter. So could you give us perhaps your best guess of which months we'll see the CHMP decision on it?

[Carlos Gallardo, Chairman & CEO]

Thank you very much for the questions, Jo. I think that most of the questions are for either Mike or Karl. So I think the first one was the...

[Mike McClellan, CFO]

Yes, I can take the first one on Ilumetri. What we were referring to is on the Slide #9, you can see in the month of February there's a slight tick up for the anti-IL-17 class in Germany. It's mainly coming from the older classes and that was because of a biosimilar launch of 1 of the IL-17 class products. It really hasn't affected the momentum of Ilumetri, it's just something that we wanted to point out on that slide. For Klisyri, I'll pass that over to Karl.

[Karl Ziegelbauer, Chief Scientific Officer]

Thanks for your question, Jo. I mean in Klisyri, we have the situation that in the U.S. we had an agreement with FDA for the expansion to large field to have a clinical program containing a PK study that we already completed earlier and an open label, safety and tolerability study where we just reported a positive outcome. Based on that, we plan a submission for Q3 this year and then expect an approval in 2024 maybe around midyear or so, but we'll have to see what the exact timelines will look like.

[Mike McClellan, CFO]

And in terms of Seysara China, we're actively looking at potential partnerships. It's a little too early to say if we will announce and sign something before the filing or not, but we are definitely in active discussions to find the right partner in China.

[Karl Ziegelbauer, Chief Scientific Officer]

For lebrikizumab, I think your first question was around this long-term extension. I mean this long-term extension is basically a study where we will try to the extent possible to move patients from our Phase III studies into extension study because they have been already treated with lebrikizumab for up to a year. With that design, there is maybe not so much to think about an active comparator for this type of study. Now for additional studies, we're looking very broadly based on excellent properties of lebrikizumab and the data we have seen so far, what other studies that would potentially make sense. We have already covered a broad spectrum of different patient populations.

Now for example with the ones we reported today, the ones that are not adequately controlled by cyclosporine A. As you may know, Eli Lilly is doing a dedicated study in patients of [indiscernible] and patients that have been pre-exposed to the extent. Those are I think important studies and important patient population. A pediatric study is also ongoing. And in addition to that, we are exploring various other options, but today it's a bit premature to comment on the detail. And then your final question on lebrikizumab in terms of the regulatory process, I think what we can say today that the regulatory process is on track and we expect an approval in Q4 this year. In terms of an exact month, that I think is a bit premature to comment on.

[Operator]

The next question is from Alistair Campbell from RBC.

[Alistair Campbell, RBC]

Just two, please. First of all, a question for Mike, just on the tax rate. Obviously your guidance elements are all pretax. So I'm just wondering if you can give me some kind of sense of how you think the net tax rate would look for the full year. Obviously it looked very high in Q1. And then quick question for Karl on just the general acts of the market. Just some thoughts on the competitive landscape. I think since the last time we spoke, we've seen for instance data from Roivant on the tapinarof cream. So just your sense of how some of those other competitive dynamics are reading out and what you think about that relative to the lebrikizumab, please.

[Mike McClellan, CFO]

So I'll take the first question on tax rate. When we gave the guidance, we did indicate that the tax rate was going to be elevated because of the situation in the U.S. and I would expect the tax rate to remain elevated around the level that we saw in the first quarter. Too early to tell. It really depends on exactly how the income falls between the different buckets, the U.S. and the EU. But I think the first quarter is already a good indication of a relative rate.

[Karl Ziegelbauer, Chief Scientific Officer]

I think on the competitive landscape on AD, perhaps a couple of thoughts. First of all on the jak inhibitors, we are now seeing that the European evaluation of the safety is being completed basically indicating that there are concerns about the broad utility of jaks and actually the BRAC has recommended if alternatives are available in certain patient populations to use those and the interesting piece is it's for all jaks in all indications. This is for patients that are older than 65 or have certain risk factors for example in cardiovascular or also at risk of thrombosis, things like that. So that certainly will in a way limit jak inhibitors. We have to see to what extent. Now in terms of other biologics, we see the anti-IL-31, but those are mainly targeting the itch but not the eczema and we believe to effectively treat AD, both aspects need to be covered like we're seeing with lebrikizumab.

And then maybe a comment on the anti OX40s. Here we have 2 advanced compounds, 1 targeting of OX40 from Sanofi, this is perhaps a little weaker in terms of early data as compared to dupilumab. And the other is from Amgen targeting the OX40. They are now advancing into Phase III, including in every 8 week schedule. At the end, we have to see how the data will look like. There has been [Technical Difficulty] to the immune system. But in essence, I think it's too early today to comment. Overall, we still think that we are very well positioned with lebrikizumab and with the profile that we're seeing and we believe we will be very competitive in that space.

[Operator]

The next question from Francisco Ruiz from BNB Paribas.

[Francisco Ruiz, BNB Paribas]

I have 3 questions for me. One is a follow-up on the tax rate. Taking into account the tax rate on the P&L, we will see a similar cash tax in the cash flow statement on this. The second one is if you could give us more detail on the milestones this quarter and if you could anticipate what is the milestone that we could expect lebri approval at the end of the year? And last question is on SGA. We have seen that the cost has been performing better than sales, but you commented that you expect an acceleration during the year due to the launches of the new products. So could you quantify what could we see the SG&A at the end of the year?

[Mike McClellan, CFO]

Yes. So on the tax rate, I mean the cash tax will probably be very similar to the last year. It really depends on whether or not we get a Q4 refund from the Spanish authority. Sometimes it’s Q4, sometimes they push that payment into January. So that will have a little bit of effect on the cash tax, but we’re expecting it to be very similar to last year. In terms of the milestones, I mentioned the key buckets. So we had an extension payment for the Efficib/Tesavel, we purchased the Physiorelax asset and then we had some milestone payments related to Klisyri as well a payment on Ilumetri for participating in the psoriatic arthritis trial that Sun is doing to try to get an approval there.

So for the full year, I would expect this to be roughly in the EUR80 million to EUR100 million range in terms of investments absent any new bolt-on acquisitions or major licensing we do. If we do anything that’s not been contemplated right now, that could go a little bit higher. But we’ll manage that and we’ll try to manage the communication. The lebri milestone is expected to be around EUR20 million at the end of the year for the approval in the EU. In terms of SG&A, when we gave the guidance we talked about mid-single digits. We expect that still to be for the full year. If you look in the Q1, it was only about a 2% increase so that will accelerate. Partially as we start to get ready for the lebrikizumab, we will be putting more resources particularly into Europe in the second half of this year. So that’s where you’ll start to see the acceleration.

[Operator]

The next question from Guilherme Sampaio from CaixaBank.

[Guilherme Sampaio, CaixaBank]

So 3 questions if I may. The first one, net sales growth was slightly above the guidance for this year in Q1. If you could provide some color on the percentages for the remainder of the year. Second, there was some quarter-on-quarter slowdown in Klisyri. There was not a lot of seasonality in [summer], just whether you could provide some color on what are the drivers of the slowdown? And third, if you could provide some color on the ADvantage efficacy data?

[Mike McClellan, CFO]

Sorry, the third question. ADvantage, okay. So let me take the first 2 and I guess Karl, you can take the third one. So we had a good quarter, we were slightly above. We saw some good seasonality particularly in Spain. We had about EUR3 million year-on-year gain in the cough and cold. We also saw a good seasonality from the allergy products. We still feel confident with our low to mid single-digit sales growth for the year. Let's see how the remaining quarters will play out, but I think we're in good shape so far. Klisyri did go down a little bit quarter-on-quarter, but Q4 is typically a higher quarter for the treatment of actinic keratosis, particularly in the U.S. You come off the summer sun and a lot of people go in to get treatment in the fall and winter. So that's just a little bit of a seasonality, it's not a huge amount. So that we would expect to see that pattern going forward as well. And then, Karl, if you want to take ADvantage.

[Karl Ziegelbauer, Chief Scientific Officer]

Thanks for the question. The Advantage trial, as mentioned, is a trial to explore efficacy and safety of lebrikizumab in what you can call a hard to treat patient population. These are patients that have been treated with cyclosporine A already and still need further treatment or for whom cyclosporine A is medically not advisable. This trial has a size of about 300 patients of adults and adolescents. It also includes patients that have been pre-exposed to DUPIXENT. So we learn more about this population as well. Been exposed to DUPIXENT, in addition having failed on cyclosporine or for which medically this is not advisable. The primary endpoint was after the induction phase at Week 16 and it’s patients achieving an easy 75. This primary endpoint was met in this and detailed data, as mentioned, will be then presented at 1 of the scientific meetings later this year.

[Operator]

The next question from Jo Walton from Credit Suisse.

[Jo Walton, Credit Suisse]

Just a follow-up. You mentioned in the ADvantage study that some patients have had a pre-exposure to DUPIXENT. Can you give us an idea of how big that group is and whether you'll be able to call that that out with specific detail and publish that before you get the chance to launch the drug so that you can use that with your marketing?

[Karl Ziegelbauer, Chief Scientific Officer]

Well, yes, happy to talk about that. I mean that was a smaller portion as if the patients need to meet both criteria and are more I think difficult to get. We are in the process of analyzing all the detailed data that we received. We are reporting today just the top line and, as mentioned, we will publish those results in a scientific congress later this year.

[Operator]

There are no further questions at the moment. I will hand back the conference over to Mr. Pablo for closing remarks.

[Pablo Divasson, Director of IR and Corporate Communications]

Thank you very much, Roberto. We are now going to close our Q&A session. And with this, we will conclude our conference today. We want to thank you for your participation. You may now disconnect.