ALK-Abelló A/S (ALKB) Earnings Call Transcript

Hello, everyone, and welcome to today's presentation, where we will cover ALK's 2020 results, the outlook for '21 as well as updating you on our strategy. Please turn to Slide #2, where I'll introduce today's presenters and the agenda. My name is Per Plotnikof, I'm Head of Investor Relations. And with me today are CEO, Carsten Hellmann; and Group CFO, Søren Jelert. As you can see, we'll begin with Carsten giving you an overview of the progress we have made with the completion of our 3-year strategic transformation. Then Søren will go over last year's performance in detail, covering both quarter 4 and full year results, and he will then conclude the performance part of the presentation by sharing the outlook for '21. Carsten will then take over and give you an update on our strategic priorities, key initiatives and financial ambitions for the next phase of the ALK's development. And finally, we will end the presentation with the customary Q&A session. And with these opening remarks, I'll hand you over to Carsten and Slide 3, please. Carsten, please go ahead.

Thank you, Per, and thank you all for joining this call. As Per mentioned, 2020 was the final year of ALK's strategic transformation. Three years ago, we embarked on a fix-and-grow mission to create a stronger and more resilient ALK, a company capable of delivering double-digit growth. Our track record shows that throughout those 3 years, we have overperformed significantly relatively to the promises we did make. This Slide 3 gives a quick orientation of where we have come from and where we want to go on our journey towards becoming the go-to allergy company. As you can see, since 2018, we have delivered compound average growth in tablet sales of 37%, which has been the key driver of our overall sales growth. Cumulative earnings were DKK 800 million, ahead of plan. Meanwhile, we also cleaned up past issues, particularly in product supply, and have proven a strong commercial execution, hence, established a strong growth foundation. And all of this was achieved despite facing out many older SCIT and SLIT-drops products and despite facing an unprecedented global challenge in the form of COVID, without which growth would have been even stronger. We are now entering the next strategic phase, where for the next 3 years, we aim to sustain growth of 10% or more and increase profitability. We want to expand our global leadership in respiratory allergies and, in parallel, starting building businesses with a potential to accelerate growth 5 to 10 years from now. And this includes an entry into food allergy, which I'll talk about later. Looking further beyond, we're also committing to achieving an EBIT margin of 25% in 2025, 25 in 25, that's easy to remember. But before we look into the future, let me just take a moment to summarize the important work that has got us to the point where we are today. Please look at Slide 4. The past 3 years has been -- have seen multiple transformation initiatives across ALK, resulting in significant growth and highlights across our 4 areas of strategic focus. First, the ambition to succeed in North America. Since 2018, we have built a sales infrastructure for the tablets from scratch, established an initial prescriber base, launched ODACTRA and pre-COVID continued to grow our legacy business. Even so, financial disincentives still prevent many allergists from prescribing our tablets and COVID blocked further commercial progress in 2020. On the right side, tablet volumes continue to grow and they recovered quickly from the initial impact of COVID. Meanwhile, our digital consumer engagement strategy is showing promising results as we mobilize more consumers to consult doctors about their allergy via our digital platforms. On tablets, more generally, our portfolio now covers the 5 most common global respiratory allergies and have become the undisputed growth engine of ALK, delivering as previously mentioned 37% in compound -- on compound annual growth since 2018. We have a large-scale development program in place to expand the tablet further -- use further, although as you will see later, some of the timing has been revised slightly because of COVID. Under our next priority, the new klarify digital platforms that are now available in 6 markets, while the app has been downloaded close to 600,000 times. These platforms allowed us to engage with hundreds of thousands of people and to mobilize suitable candidates towards AIT treatment. We have also mapped out a path to the U.S. adrenaline market and forged multiple partnerships to enhance our current and future product range. Finally, our optimize and reallocate efforts have made a real difference to robustness and quality in production, helped by greatly -- helped greatly by portfolio pruning and our site specialization strategy. Meanwhile, we continue to operate documentation for core legacy products, identifying and making efficiency gains, and particularly in manufacturing. We also began a cultural transformation of ALK. And everyone at ALK is rightly proud of what have been achieved for the past 3 years, and our success now gives us a firm foundation for future growth. I would say more about that and how that looks like later. For now, let's turn to Slide 5. So Søren can walk us through the Q4 and 2020 full year results.

Thank you, Carsten. We ended 2020 with our best ever fourth quarter, delivering organic growth of 16%. Tablet sales growth was 55% in what is traditionally the peak season for the AIT treatment initiations, and this supports our thinking behind the 2021 growth outlook, which I shall share shortly. EBITDA was up 33% at DKK 64 million, while operating profits benefited from higher sales, savings and delayed R&D costs. Overall capacity costs were up 11% in local currencies, and R&D expenses increased by 21% in fourth quarter, although we had planned for more, but COVID continued to hinder recruitment of patients for clinical trials. COVID also continued to impact patients' ability and willingness to visit clinics, especially in North America and some European markets, but the overall impact was less than in previous quarters. Please now turn to Slide 6 for the brief sales and markets review. As you can see, the European business performed strongly throughout the year. Revenue increased by 17% in fourth quarter, contributing to the full year growth of 8%. Discontinuations reduced full year growth by 4 percentage points as we continued to phase out older SCIT and SLIT-drops products in favor of documented registered products. Towards the end of the year, we also saw some general inventory stocking by wholesalers ahead of 2021. Sales increased in most European markets, driven by the tablets, which was up 40%. Jext also contributed to our growth, with a 42% increase for the full year. Germany delivered strong double-digit growth, and ALK became the first company to exclusively market registered AIT products for the main allergens. This is important because recently, the federal recommendations was made that registered AIT products should be used for new initiations whenever available. Now this recommendation has to be recommended regionally before it takes effect. So it's too early to link it to any change in prescribing habits, but it should still add momentum to the ongoing market shift in favor of evidence-based medicines such as ALK's tablets. In Southern Europe, primarily Spain and Italy, COVID continue to constrain the market, while sales in France were flat. As growth in tablets -- in tablets, sales were offset by lower SLIT-drop sales. In North America, COVID continue to create challenges, especially in the U.S., where we estimate that the total value of missed sales due to COVID exceeded DKK 100 million. As just one example of how the market was affected, we estimate that around half of U.S. clinics were fully or partially closed in second quarter. As a result, sales across the region's portfolio were challenged, although we did see a pickup towards the end of the year, with encouraging tablet sales in fourth quarter. Full year revenue was down 10%, while the decline in fourth quarter was down to 2%, reflecting a rise in the underlying demand compared to second and third quarter. Sales in international markets were relatively resilient to COVID, except for minor fluctuations in China, and full year revenue was up 58%, following fourth quarter revenue growth of 46%. Revenue was boosted by choice conversion of patients to CEDARCURE from legacy products and planned advanced stocking ahead of 2021. Now let's take a closer look at the product categories on Slide 7. As I mentioned earlier, the tablet portfolio performed very strongly, with 55% growth in fourth quarter and full year growth of 42%, underlying the fact that tablets are the undisputed growth engine of ALK. Sales benefited from various factors, including resilience to the impact of COVID versus alternative treatment options; the ongoing market shift in favor of evidence-based medicines; the continued strong rollout of ITULAZAX in Europe, which also created a halo effect, especially for GRAZAX. Combined SCIT and SLIT-drops sales were down 7%, part of which this was due to product discontinuations. However, SCIT treatments were also disproportionately affected by COVID since patients were either unable or unwilling to visit clinics. This impact was reduced in fourth quarter, with SCIT and SLIT-drops sales was down just 2% for the quarter. Sales of other products declined 1% in fourth quarter and 4% for the full year, as COVID also impacted sales of life science products and PRE-PEN in the U.S. By contrast, Jext, in Europe, sales were up by 45% in fourth quarter and 42% for the full year. This brings us to Slide 8 and the full year P&L. I'll go through this slide briefly because we've already touched on the themes. Full year organic growth was 8% in local currencies. The gross margin was more or less flat at 58%, reflecting mix and changes, cost for quality upgrades and higher shipments to Torii had lower margins. EBITDA increased 64% to DKK 395 million corresponding to an EBITDA margin of 11%. Capacity costs were down 1% organically due to COVID. The pandemic delayed a number of clinical activities, which is estimated to DKK 100 million in deferred spend. It's also -- it also restricted sales and marketing activities and saw us switch many planned activities to virtual events. Operational leverage of the commercial platform was an important factor. Finally, free cash flow was plus DKK 56 million. This was better than expected due to higher earnings and deferment -- deferral of payments. All in all, a solid performance in a very challenging year. Now let's move to Slide 9 and the outlook for 2021. Building on a strong momentum of fourth quarter, we expect growth in all sales regions in 2021. Revenue is predicted to increase by 8% to 12% organically in local currencies with product discontinuations, reducing growth by approximately 1 percentage points, underlining the fact that 2020 was the year with the greatest sales impact from discontinuations. Our working assumption is that COVID will continue to somewhat impact clinic visits in first half of the year, especially in the first quarter. Quarterly fluctuations in both sales growth and earnings are therefore likely. We expect European sales to grow by around 10%, while sales in North America are projected to gradually recover from COVID and grow in double digits. Growth in international markets is estimated to temporarily slow to high single digits as growth in Japan becomes more incremental following last year's extraordinary conditions. We currently assume growth in global tablet sales will exceed 20%, while the non-tablet portfolio is projected to deliver single-digit growth. EBITDA will benefit from higher sales and better margins. The gross margin is projected to increase by 1 to 2 percentage points, but EBITDA will also be influenced by a significant increase in R&D expenses, reflecting the level of activities and the deferral of some clinical development activities into 2021 due to the COVID. As a result, R&D costs will increase by approximately DKK 150 million, while sales and marketing costs will gradually normalize as we resume many of the activities that became impossible in 2020 and because of the strong focus on digital engagement activities. EBITDA is, therefore, expected between DKK 325 million and DKK 425 million. We expect cash flow to be negative at minus DKK 200 million to DKK 300 million. We see changes in working capital, including one-off payments of accrued rebates and payments related to taxes for Danish employees. These payments amounts to a total of DKK 225 million and were originally scheduled for 2020. CapEx is projected at DKK 300 million, as we continue our program of site specialization and manufacturing efficiencies. All in all, a solid top line growth and earnings largely on par with last year, although earnings and free cash flow obviously will be impacted by cost and payments originally scheduled for 2020. I now hand you back to Carsten, who will talk you through our strategic priorities for the next few years, starting on Slide 10.

Thank you, Søren. With the transformation complete, we are entering the next phase of ALK's development. Top priorities for 2021 to '23 are sustained growth and increased profitability. And looking further beyond 2023, we go for 25% EBIT in 2025, what we call 25 in 25. As you can see from the slide, the strategic framework is unchanged, and strategy is still anchored in the 4 focus areas, which we established 3 years ago. We strongly believe that these 4 priorities are still the most critical to continue delivering future growth. And we're equally convinced that continuity allows us to easily build on the foundations we established and benefit from all the investments we have already made. But clearly, some things have changed. We made some slight adjustment to the pillars, and we have also included initiatives to accelerate ALK's development in 5 to 10 years from now. These long-term growth opportunities are very exciting and cover establishing our presence in food allergy, expanded position in anaphylaxis and progressing on our research into new innovative treatments for high-impact allergic conditions. It is also worth noting that they are underpinned by a renewed commitment to our people and planet. This will require us to lead the way, not just scientifically and commercially, but also the way we develop our people and organization and as well as our approach to sustainability. To support this work further, we conducted a materiality assessment in 2020 to identify areas with the highest impact on our business and stakeholders. A key output from this was our new access to medicine strategy. You can see more in the annual report and in our sustainability report available on our website. With these opening remarks, let's deep dive into North America on Slide 11. We remain committed to succeeding in North America. And in particular, in the U.S., despite the longstanding financial disincentives for prescribers, the allergists and the setback of COVID, both which have challenged our progress there. Even so, we still believe that there's much more to be done with the assets already at our disposal, and we work hard to grow our tablet sales. Our intent is to build broader scalable sales channels for the tablets that overcome the barriers we currently face with the financially disincentivized allergists. We see klarify, our digital platform, as a key tool here for mobilizing patients to seek treatment from doctors, who will prescribe ALK products. And by that, I mean the tablets. But we remain committed to customers of our legacy portfolio and aim to increase the value of these sales, too. In the short term, that means that sales growth in North America of 10% or more in '21. We'll also increase patient mobilization via tools like our new launched speak to a doctor tailor health option and digital allergist tests. We'll also seek further pediatric and adults indications for our tablets to expand their reach. Please go to Slide 12. The allergy tablets remain ALK's undisputed growth engine. We aim to sustain the commercial momentum of these core assets by expanding prescriber depth and breadth in existing and new markets via digital engagement and also through the completion of our large clinical development for pediatric indications and further registrations in new markets. We will measure our progress by targeting sales growth of 20% or more and maximizing the halo effect that we're seeing from the newly launched ITULAZAX. Finally, a quick update on our clinical trials. As you can see from the table on the right, the time table for some of these activities have been slightly updated due to the difficulties of recruiting clinical trial participants under COVID. Slide 13, please, and the next strategic pillar. Over recent years, we have developed a range of digital tools and platforms under the klarify brand to give consumers easier access to a definitive diagnosis and appropriate treatment. Over the next few years, we will leverage these assets to further engage with and mobilize hundreds of thousands of people with allergy to connect with health care professionals with a target of mobilizing 250,000 people in '21. New horizons is the new term that covers not just business development and partnership opportunities but also our own R&D work on innovative -- in innovations outside respiratory AIT. The headline activities here are the further expansion of our adrenaline franchise, including work to enter the U.S. We will also research new approaches to the treatment of severe allergic conditions and make an entry into food allergy, where we are preparing a peanut program for clinical development. So let me tell you a little bit more about food allergy on Slide 14. One piece of news are particularly excited to share is -- one piece of news that we are particularly excited to share is our work to develop and register immunotherapy treatment for food allergy. This is an area of very high unmet medical need, and we feel confident that the scientific knowledge we have accumulated through our work on respiratory allergies over the past 20 years forms a good foundation for developing safe and effective food allergy treatments. This part of work seen -- has seen more than 23,000 clinical trial participants and more than 20 Phase III trials. In short, we are confident that we are ready to take this next step, so we can become the leader in food allergies just as we are in respiratory allergies. Initially, we will be targeting treatments for peanut and then tree nut with an investigational sublingual therapy with the potential to become a mainstream treatment. The commercial potential here is significant. Food allergies are global problem affecting 2.5% of the population and can be life-threatening. Four allergens, peanut, tree nut, milk and egg, are responsible for most food allergies in preschool children, but we have prioritized peanut and tree nut because while many people can grow out of milk and egg allergies, peanut and tree nut allergies last a lifetime for many of us. With very limited treatment options currently available, we believe this move represents an important step toward fulfilling our promise of becoming the go-to allergy company and helping much more -- many more people and many more allergy offers beyond our current reach. With that, let's move to Slide 15 for the fourth area of focus. Here, ALK will continue its work to ensure regulatory compliance, supply chain robustness and improve quality and efficiency across operations. Major contributors to these priorities are the ongoing pruning of the portfolio and the work to upgrade processes and documentation for our legacy products. Both of these things improve standardization and efficiency in manufacturing and contribute towards our improved margins. You will see here that we have set a margin contribution target of 1 to 2 percentage points in 2021. And we will take further steps to operate facilities to support this work and to meet our further target of zero quality-related interruptions in supply in 2021, another measure of how far we come in cleaning up and addressing previous issues. We are also leveraging our sales and marketing platforms to drive economies of scale. For instance, through the continued rollout of sale initiatives, a one which we call RISE. That completes my review of the ongoing strategy. And I'll now hand over to Søren, who will tell you on how this all translates into our financial ambitions.

Thank you, Carsten. Please turn to Slide 16. Earlier, I mentioned that our overall ambitions are to sustain organic growth of 10% or more per year and to improve profitability so that we gradually ramp up the EBIT margin to around 25% in '25. Please bear in mind that we have changed our long-term financial metrics from an EBITDA to EBIT. So it's EBIT that's 25% in '25. The main assumptions behind this are that we expect to improve the gross margin through higher sales and greater supply chain efficiencies starting in 2021. Secondarily, R&D spend will be extraordinarily high in '21 and '22, primarily due to the ongoing pediatric trials. However, from '23 and onwards, the R&D spending to revenue will decrease when we complete large scale development work on the respiratory tablet portfolio, while costs for the work in food allergy and research into new innovations has still to be included. We expect to drive down sales and marketing costs relative to revenue as we further leverage the existing platform. And the final assumption, we see CapEx at around DKK 300 million annually as we invest in maintenance optimizations and strategic projects. These projections, as always, do not include any significant revenue from acquisitions, new partnerships or in-licensing agreements nor payments related to such activities. With this, I'll hand you back to Carsten and the closing remarks.

Thank you, Søren, and thank you to all for listening in. In essence, this updated strategy for 2021 to 2023 aims at expanding ALK's position as a global leader in respiratory allergy, but are also starting to build a significant presence outside the respiratory niche to an ALK that becomes relevant for many more people with allergies. The ultimate aim is to become the allergy company, a global allergy player that helps millions of people to take control of their conditions and their lives. A company capable of generating attractive shareholder returns and achieving specialty pharma margins, 25% in '25, with sustainable double-digit growth outlook beyond that date. I hope you find that prospect as exciting as we do. And I will now hand it back to Per, who will open things up for Q&A session. Thank you so much.

Thank you, Carsten, and thank you, Søren. And this concludes the main part of our presentation, and we will now open for the question-and-answer session. Operator, please go ahead.

[Operator Instructions] We have a question from the line of Thomas Bowers from Danske Bank.

Three questions for me here. So just to kick off in regards to Germany, can you maybe add a little bit of color on this fee structure change here in 2021 for the AIT products? So there seems to be some pressure from payers. So does this basically mean that we could see an end to main patient products in 1 or 2 years' time frame? And then do you have any impression on this year that you are seeing now, so how much could you potentially get from this EUR 100 million opportunity? Is most of this going to flow into the tablet business? And then on your 25% margin ambition. So previously, you had above 25% EBITDA. So I'm just wondering, would it be fair to say it reflects close to 30% EBITDA? Or is there any material change in your rate of depreciation? Or any general changes that, that would change the, you would say, 4% to 5% -- percentage point delta compared to EBIT? And also are you looking at a possible Phase III development in those -- I mean, going into food energies now, so I guess by '25, you could see potential Phase III trials, at least for the peanut allergy product. So is that all already included in your margin guidance that you may have some additional R&D costs for those projects? And then maybe a final question just on adrenaline. So Windgap seems to be active and alive. And then I understand that you still have a backup solution. Is that Jext that you're looking at? Or is that other solutions that you are looking maybe to in-license in order to support your 2024 filing target for the U.S. market?

Thank you, Thomas. This is Carsten. And I will start with -- I will take 3 of them, and then I'll hand over to Søren about EBITDA -- EBIT. So if you look at Germany, it's true that this is moving towards registered products. And the insurances are now, I think, is in 8 of the regions right now are sort of pushing forward to this one. We have about EUR 100 million up for grabs in the German market over time. Of course, remember, it's immune therapy. So it's something that is phasing out. And definitely, we're going for all of it. That's how we're getting it, but we have a very solid plan to try to maximize as much we can getting into this German market. It is happening as we speak. And we think it's a very positive contributor to our European growth. And it is pretty solid. If you think about to take the adrenaline first. Windgap is still alive, and we're still working on that one. What we're doing is, in parallel, we are also having an internal project to make sure that we will have a fully ready product to be filed in the U.S., no later than '24 -- 2024 in adrenaline. Whether that is going to be Windgap or ourselves, we don't know yet because it's, of course, with some development risk on both of them, but we will have a product. We are not standing in '22 and say, it didn't work out, it doesn't happen. Something will happen. So both are still kicking and alive, and we're working very hard on both of them and it's just to hedge our opportunities. We would like to deliver on that as well. When you look at the food, the cost for developing the peanut is included in our plan to be very bold and frank on that one. We will not come out certainly and say, "Ah, you remember, we told you 2 years ago that we have a lot of cost that would be, of course, you should have understood." No, we have that included in our plan. And that is, of course, primarily because we think we are stronger and more robust and also our metrics internally are looking better out of the transformation period than we hope for. So we have room for stuff like that, and this is how we'll use that room. So this is about delivering on everything else you knew off, and now we add this one within the frame as well. And with that, I will give just to Søren to talk about the EBITDA, EBIT.

Yes. Thank you, Thomas, for the question. And actually, thank you for bringing it out in the open that we have changed this from EBITDA to EBIT. And it is actually sure that we have now solidified the outlook with a 25% EBIT. So you could say, underlyingly, we would have been 30% EBITDA wise. So I think -- hopefully, that clarifies it. And I think part of that is, of course, also that we are on a -- finishing off our transition strategy now and have a better visibility for the years to come and especially also with the tablet outlook as we see and also the R&D costs that we consistently expect to -- that the ratio will go towards the 10% even so including the food program, as Carsten just talked to before. So it's -- it's us actually solidifying the 25% in '25, and it's EBIT. I hope that clarifies it -- your question.

Our next question comes from the line of Philippa Gardner from Jefferies.

I had a question on your guidance for the international markets when you talk about sort of incremental growth in Japan. I was just wondering, Torii has given guidance for sort of 20% -- more than 20% for the 2 products in terms of sales in Japan. So could you just try and help us understand why your guidance seems to be a little bit more conservative in that region, please?

Yes. Thank you for the for the question. It's very well spotted that Torii has been out stating it's 20% in-market growth in Japan, and that's very well aligned with what we say. And that is because remember that our sales in Japan is a constitution of what's sold in-market and then a delivery royalty. And as we also said, that's exactly why some of the high growth in international markets happened in 2020 as planned because we were ramping up for growth, so that was the stock and deliveries that we got benefited from. Now we move into 2021. Of course, now they have the stock at hand, and that's why our growth is coming down a little bit, but they can still maintain their high in-market double-digit sales growth. So it's extremely well aligned with what we anticipate, but it's just a balance of how we are including it in our revenue line. And then finally, of course, bear in mind that there has been, as we also have written about this transition from the legacy cedar into our cedar products. And of course, you cannot twice convert the market from the old to the new products. And that, of course, also positively roped us -- up on us in 2020. So that are the 2 explanations for the Japan development.

Our next question comes from the line of Michael Novod from Nordea Markets.

It's Michael from Nordea. First of all, congrats with the strategy on food allergies. It's very exciting. Maybe you could sort of elaborate a bit on how you're going to structure these trials. So I guess, the peanut one is, first of all, going to be the largest one. But what about -- when you go into other food allergies like tree nuts, is it going to be of equal size? And how many specific indications do you need to run? Or can you actually sort of combine sort of in the tree nuts on a larger Phase III program? And then secondly on the French market. You've been talking about this potential price reform for a while. And you still use it as a factor when giving your low end of the guidance. How realistic is this? And how will the exact impact be in your base case scenario, if it happens on the French business?

Yes. Thank you, Michael. I'll take the French. It is for real, but I think I have monthly meetings with the authorities and so does our team in France. So it's most likely not going to happen in the first half of this year as we see it right now. But it's still a risk because we are asked to lower the prices. However, we also have a situation where our competitors' allergens have a 60% higher price on exactly the same product in France. And of course, we argue that then they have to come down to our level, which is something that's creating a lot of complications. And that keeps biased some time. We have a good dialogue with them. We are very involved with both the authorities business in France, where we have now some new regulations in France that when you invest in R&D, when you invest in facilities and so forth, they leverage actually that into the price discussions. And that is what we have been dealing with the last couple of years. You can say we've been successfully managing at delaying the price cuts for good reasons, also for the French authorities. So it is a risk, but I think it's maybe half of what you saw when we had a full year effect back then. If you look at the clinical setup of the peanut, it is true that it's most likely that if you wanted to do something -- depending on how exactly looks like, there will be opportunity to run parallel tree nut and peanut, if you want to, but you can also maybe even do a parallel Phase II and Phase III, depending on where we stand at that point in time. This is something that we are working on right now and calculating. And of course, subsequent for that one, we will also look at eggs, and we will also look at other food allergies. But seeing what's happening with Aimmune right now, seeing what's happening with DBV, we are confident that coming out with a sublingual technology, predominantly tablets, and we have secured, that will be a game-changer, should we have that safety profile and efficacy profile we expect. So -- and it is there something our team here knows about that is setting up clinical trials, as I just alluded to in my presentation. And I think we are pretty well off there, Michael.

Can I just ask a follow-up to that, 2 follow-ups actually. So when you talk about sublingual, it can, of course, also be different than a tablet. So have you already decided that this is going to be a tablet? Or could we see a different sublingual administration than the current tablet forms of your current products? And then also another follow-up on the strategy. Is it going to be all organic? Or do you also look into the potential for adding technologies or even companies as part of your strategy?

When I say sublingual is because we have not all the stability data on our tablet yet. So we're just having that thought open should it turns out against our expectations that we cannot make a tablet. Then, of course, we shouldn't not do another sort of sublingual technology if that is what we need to do. We don't expect that, but that's why we're saying it that way. If you talk about M&A, the numbers you see in the presentation we just made, as you know, does not include that we do any of add-ons or M&A activities to secure that. However, of course, if something very interesting comes across, we will look at it, but then it would be business case by business case. We are looking at -- also we made a deal with X-Chem in the U.S., looking at small molecule technologies for allergy and asthma treatments and got exclusivity there. We're doing a lot of things along the way. But our bet right now as we can see that only 1% of people with respiratory allergies are being treated, with that massive potential we see just in our core business, with a very strong opportunity in food allergies coming after '25 and with what we have at hand by going more digital by expanding into more markets, by going into China and just continue to penetrate the U.S. market can create a profitability of 25% EBIT and more than 10% growth with upside on new technologies. That's what we call hands on the wheel where we drive our own future. Can we do anything to accelerate that? We will do that. But it's not a part of how we think we should be strong. I think we can be strong organically. And right now, and you know we've been talking about this before, we have been looking a lot. It doesn't -- we don't see many assets out there with the variation and then accrediting our journey out there that makes sense to us. But I mean, we have the capabilities. I personally have done a lot of bolt-ons and acquisitions in my career. It can be done, if it's out there, but it's not a part of the plan. We don't need that.