Earnings Call: Q3 2025

Nov 5, 2025

Morning, everyone, and welcome to the earnings call for the third quarter of Blau Farmacêutica. We're live at the Blau Studios in São Paulo with Marcelo Hahn, our CEO and founder, Douglas Rodrigues, our CFO and investor relations, and myself, Matheus Fugiça, our investor relations. Our call is going to take place in Portuguese with simultaneous translation into English, and it'll be available as quick as possible on the company's IR website. At the end of the presentation, we're going to have Q&A with a priority for sell-side analysts. Analysts who want to ask questions must select the click-raise hand function on the Zoom platform at the bottom part of the screen. Other investors can send their questions through the chat. Now, moving on to slide three, the highlights in the quarter were for the conclusion of the Bergamo turnaround, which, two years after the acquisition, has already been at the same level of gross margin as the other Blau factories and was the main driver for the company's eighth consecutive increase in gross margin. Our revenue was at BRL 475 million, the same level as last year. A highlight is the aesthetics BU and 11% growth in launches. In the hospital segment, we continue to have limited production capacity in some. Business. Classes of medication and drugs, and we had a drop in the public channel due to the natural volatility of the channel. If we analyze the last 12 months, our public revenue has still been growing, though, by 4%. In our gross margin, we reached a level of 41%, mainly through Bergamo, as we've already mentioned. Besides this, we had a mix of sales and a dollar exchange rate that were favorable for our margins. We performed an inventory provision at Jamares, adding up to BRL 8 million due to the plasma collection costs being a little higher than our perspective for sales of this plasma in the future. We had a counted provision in the cumulative details. If we disconsider this, the gross margin would have reached 42%. Now, the recurring EBITDA margin reached 24% in the third quarter, a drop of 80 basis points in regards to the third quarter of 2024, but would have reached 26% if we were to exclude this provision, which would be a peak of 90 basis points in the same period. With the gross margin gains, that would more than offset the increase in expenses. Our accounting net income reached BRL 106 million, a growth of 52% in regards to last year, levered by the accounting of the interest and currency variation in the development of Protea. We were still not impacted by the Jamares provision. The recurring profit was at BRL 72 million, excluding this effect of Protea, and a growth of 5% and 15% versus the previous quarter. Now I'll pass the word on to Marcelo to talk about the latest advances we've had. Thank you, Matheus. Good morning, everyone. I want to quickly highlight the quarter. Our efficiency gains during the year, even with all of the challenges that were presented over time. What's most important, there were, beyond the results, all the advances Blau has been achieving that will allow for results in 2026 and transformational growth when we look at the mid to long term in the company. Now, with the expansions and improvements in production processes, we can see that these factors are going to increase our volume of units produced by approximately 70%. I also want to highlight that we've completed the validation and qualification of two new production lines at Blau São Paulo. Now we're waiting for the MV's inspection to get approvals, and we should start having this contribute to results from the first quarter of 2026 already. Two other production lines will be delivered during the first half of 2026, and they should contribute to revenue in the second half of 2026. In addition to these expansions, we're improving our operations with increments of new shifts, trying to have uninterrupted production and the implementation of a new packaging area in Pernambuco that should be delivered by the first quarter of 2027. Next slide. Some photos of the new lines that have already been completed. The new line of poles that have already developed a more modern concept with more productivity than other production lines at Blau São Paulo, very similar to the P210 at the Cotia plant, which was the most recent expansion the company had before these new lines. The new line of antibiotics also has the same concept and should address the production capacity for one of the main categories that we have pending sales to for the company. In aesthetics, we recently launched the Fillage line, with hyaluronic acid in three different presentations that reinforce our portfolio of Blau aesthetics, which already has the botulinum and the botulinum toxin. We also had the approval from ANVISA for aesthetic use cannulas, and this should be launched by the first half of 2026. On the next slide, we have the receipt of EUR 52 million from the investments of Protea. We've already accounted for interest and exchange rate variation in the third quarter of 2025, and cash will be recognized in the fourth quarter of 2025. This amount is going to be used especially for transformational investments that are already underway, such as the monoclonal antibodies and an increase in production capacity, among others. Another important source of financing for our growth comes from incentivized funding at a cost below CDI, such as Finame used for the acquisition of machinery and equipment. We're also looking for our projects to have incentivized financing lines to promote research, development, and innovation projects. On slide eight, we talk about monoclonal antibodies, and we're really proud to announce that we have already completed the full development of AMDB12 from the development of the API production bioprocesses all the way to the finished drugs at Blau's facilities with all of the validations required by the health authorities. The company was concerned with developing a very robust comparability journey. Currently, the drug is in stability, and preclinical trials will be completed this month. We should begin the clinical studies on humans in the first half of 2026. AMDB13 and AMDB15 are in the process of developing bioprocesses at Blau's facilities, and they are going to go through the same development processes as AMDB12. We intend to complete these processes by the second half of 2026 and AMDB15 by the first half of 2027. AMDB14 will have a clone development phase and should follow the same process, as this patent will end by 2029. We are also conducting the clinical trials of alpha-epoetin, fulgurcin, and pegfulgurcin. Now, thank you, Marcelo. Now, as we see a gradual increase on slide nine with share in the launches in the revenue, as well as investments in research, development, and innovation, especially due to advances in monoclonal antibodies that Marcelo just mentioned, we expect to have an acceleration in the launch of revenue. In the launches revenue in line with the acceleration of the market size and the TAM of the drugs that are going to be launched. Just with the products that have already been submitted for approval by ANVISA, we should see an acceleration of about 60% compared to the previous cycle. It is worth mentioning that this number was BRL 3 billion two quarters ago, and it rose to BRL 3.1 billion in the previous quarter. Now it is at BRL 3.2 billion. The trend is that this number should continue to grow. Moving on to the net income. Net revenue, sorry, we reached BRL 475 million in the third quarter of 2025 in line with the value presented last year. In the last 12 months, you can see that the growth was 5% in our net revenue. If we look at the hospital segment, we can highlight that there was about 11% growth in launches. However, the capacity limitations in some production lines, as well as credit restrictions for customers due to a persistent scenario of high interest rates and a drop in the public channel, impacted the performance in this quarter. The highlight for this quarter was the aesthetics business unit, driven by the change of customers in the distribution of the botulinum toxin. In the pharma business unit in retail. There was an important recovery in the quarter because we must remember that in the last quarter, the pharma business unit was the one that was dropping the most, and this quarter was already stabilizing its performance. Our perspective is that in the next quarters, it'll get back to growing. Finally, in plasma, there was no revenue in the quarter, as well as there was also no revenue last year. Now I'll pass it on to Douglas. Thank you, Matheus. Good morning, everyone. I think here the main highlight once again is our gross profit. For the eighth quarter in sequence, there's been the evolution. The company has been exchanging the mix, and this is very important, very relevant, especially considering the sustainability of these results in the future. Of course, there's some complexity, but the company's been performing an excellent result. It's not easy to do what we're doing, but even in a scenario with capacity restrictions and no growth in revenue, we've addressed the increase in the gross margin. If you look at the margin, excluding the effect of the provision of the Jamares plasma operation, at a level of 42%. That's the margin we were searching for in the last quarters, but a more favorable mix has already helped us reach this in this quarter. Another point that's also an important highlight, and I want to congratulate all of our teams, is the conclusion of the turnaround at Bergamo. Up until one quarter before, we were already selling the market that we would finish until the end of this year. Now it's the third quarter, and we've already demonstrated the strength of the company, the resilience of our business, and especially how the company, especially in the industrial firm, to optimize the operation and optimization of the capacity, has been able to optimize this, right? We're going to definitely unleash more productive capacity. The trend is that we'll lever and gain more operational margin. This moment is really all about focusing on using the best mix, favoring our current profitability, and not losing our view for the future this quarter. We could have momentary frustration, but that's because, of course, we could have potential to deliver more results if it wasn't for our productive capacity issue. Looking at this, you can see this future perspective really brings in more sustainability. We're shifting the company's mix in a sustainable manner, and we're delivering robust results. In regards to the impact here, I think Matheus mentioned this a bit. Basically, we're talking about provisions to recognize the negative margins. If you look at the structuring here, it's maybe greater than what we could have today as practice prices. Of course, we continue to negotiate and search for new customers, but as we have new customers and new pricing, we'll understand what really would be the impact in results. So far, it's a provision for negative margins. Moving on to the next slide, when we consider the EBITDA and we see the main highlight is the gross margin, and we have an elevation of about three percentage points, basically. Of course, this is amortized by the increase in SG&A and R&D expenses. In the accumulated results, you have a growth. And the RDI, of course, to handle this new cycle of development. When it comes to SG&A, the company has been structured and prepared for this new cycle. Esse ciclo ainda está travado. Cycle is still locked at this moment, but as it's unlocked, we'll bring in this dilution. Naturally, the company has a new structure to be able to handle all of the transformational projects we've already been handling, especially in this quarter. If you consider, a lot of investors even asked us about this, the elevation of initiative expenses, et cetera, but this is due to an adjustment in provisions. If you dilute this over the next quarters, you can normalize this. Here, you also have another effect. If you look at the accounting results, there's a tax provision where we're classifying this as non-recurrent and adjusting the PLEX effect of the Jamares provision. You're delivering an. EBITDA margin of about 25.8%, which is an evolution. At 11% of the levels before. Also about what the company expects as margins for the company. We also looked at the divestment of Protea, the EUR 52 million, and that's in our balance sheet. If we adjust this and even the Jamares provision, we can see that the net income still has an evolution and growth of 5% in regards to the other period. That's a margin. If you just consider the provision at PLEX, it's the best margin in the company, and basically 17% net income. That demonstrates not only the operational gains, even with these impacts, but the tax efficiency as well. I think the company today has this capacity to look at tax planning even before Pernambuco, and that's going to be levered even more because we're investing in R&D. We have laid the bank benefits. We have the approval of the interest on capital and equity, and all of the results that we're going to lever at Bergamo. We have the benefit of using a tax loss base with a deferred income tax that's already in the balance sheet. That is especially for the cash effects, and that's an extremely important topic, of course. Now, here's the biggest challenge the company had, and we want to balance out the working capital issues, especially when we consider the working capital and the stock levels, et cetera. Considering the mix of products, this is a challenging equation, but the company today has a plan to get back to inventory levels. The success was always to foresee possible movements, especially items with greater volume. That also considers the stock composition. If the company is launching new productive lines and will launch them soon, we are going to build this inventory. That is basically the composition of the increase in the inventory that you are considering in this quarter. This deadline is kept. That is pretty much constant. That is a recurring level. Sometimes you improve this, but I think the main point is the inventory. Aqui de mobilizado. This is mainly due to the evolution of the project to unleash productive capacity. There was an R&D CapEx considering the consumption of the inventory in these products. It is important to highlight also that the company, especially considering monoclonal antibodies, and it is natural that you would have more investments in R&D. That is why there is also a specific increase in the quarter. As these projects advance, you have more relevant R&D. Also, the share in new products has been growing as well. This is the dynamic, and this is what Blau has been working on. This is how we can search for better results quarter over quarter. When we look at the company's cash position, you can see that this is the position in the quarter, and it still does not do dinheiro da. It is the effect of the Protea cash. Caixa líquido. Essa é a elevação que a company will be cash free. A alavancagem baixa, mas é basicamente, se você olhar, é. This is a low leverage, but it is basically, if you consider this. Apesar de it is basically the working capital. If we consider the cash generation of the company, despite relevant levels of investments, which are really well behaved, cash generation handles the CapEx. I think one of the main points here is how to unleash this inventory and generate more cash. Anyways, the company still has low leverage with the Protea cash. It's going to para fazer os seus movimentos estratégicos e seguir. Become net cash and very well positioned in the market to be able to handle strategic movements and follow this plan, right? Now I'll pass the word on to Marcelo for his final comments, and then we'll get back to Q&A. Thank you very much. Thanks, Douglas. The final message is that Blau is investing to capture market opportunities and the drop in patents. Providing more details, in the next three years, we should be growing our volume of production by about 70%, and the launches should grow by at least 60%. This is going to allow us to grow at levels above market that are projected at a growth of about 10% a year. Besides this, we'll continue to have optimizations and expansion in Latin America. This growth should dilute expenses in a relevant manner because most of the expenses are already incorporated in our current results in the company. This new cycle should be marked by the expansion of the capacity in Pernambuco and the gain of relevance in the monoclonal antibodies and the results of Blau investments that should be crucial for the acceleration of our expansion internationally. With these investments and the benefits of the SUDENE. We should recover the historical margins of the company in a sustainable manner, right, in a more relevant way that will allow for the compensation of investors. Now I'll pass the floor to Matheus. Thank you, Marcelo. Now we're going to start our Q&A session. Sales side analysts that have a question can click on raise hand at the Zoom icon, and other investors can send their questions through the chat. The first question we have is from Lucas Nagano at Morgan Stanley. Lucas, I believe your audio is already released. Thank you. Good morning, Marcelo and Douglas. Thanks. We have two questions here. The first one is about capacidade para o ano que vem. Capacity expansion for next year. We have some components here, and so there should not be big changes in the fourth quarter. E como isso deveria se traduzir em crescimento. How this should represent the profile of growth next year, if they're already starting quickly or strong in the first quarter, if it's going to be more gradual. I think it would really help us understand the view of the market growing 10% a year in the next cycle, and we would like to understand what this acceleration process would be. The second question. Let's move on to the next question first. We have Lucas Amancio, sorry, Felipe Amancio from Itaú BBA. Opa, bom dia, pessoal. Good morning, guys. A primeira delas é sobre a receita do hospitalar. First is about the hospital revenue, as we saw a slowdown, mainly due to public, and I wanted to understand. Sorry, Felipe. We had a technical issue here with the audio here. We didn't have the return, and Lucas was in the middle of his question. I'll go back to Lucas, and then we'll come in with you. I'm so sorry about that. We had a slight technical issue. Sorry about this. To everyone that was accompanying us, we'll go back, and Lucas will complete his question. Show ao vivo, acontece essas coisas. It's a live show. You always have these kind of events, let's say, right? Let's try to go back. Sorry about that. A gente está escutando agora, eu acho. Oi, estão me ouvindo? A água. Desculpa, Lucas, você acabou falando, a gente não escutou. Se você puder repetir a pergunta, por favor. Então, a gente tem duas perguntas. A primeira é sobre crescimento de receita, né? Pelo que a gente entendeu, o quarto tri, ele deveria ser perfil parecido com o terceiro tri em termos de crescimento. E também. What should be. Para os trios de 2026? If we consider these, we want to understand how this process would be. Understanding. The comment on. The market growing. And how this acceleration should be. Que deveriam destravar mais vendas. Lines should scale up more sales and all of that. So this is the first question. The second is about the stock. Isso deveria acompanhar também. As vendas, né? Então, o quarto tri. Is if this should also. Com acúmulo mais forte. If this would be. More accumulated or not. Obrigado. And could you get back to that? Vamos falar sobre a receita. Eu só gostaria de lembrar a todos que a receita da companhia. And so I want to remind you all that the company's revenue, historically, the comparison in the third quarter. Was the best quarter in the history of the company. We're repeating the best quarter in the company, and we're not satisfied with our results. We have conditions to deliver more, and basically we're going through this market and product shift in the mix. We're changing with products that had immunoglobulin for products, and I have to produce a lot more. In exchange, that would consider that we have better margins, and that makes it very clear that production brings the results we're expecting. O resultado da companhia, porque a gente. We expect to grow the results of the company because we're going to have the release of the productive lines. We're waiting on this and recognizing that they exist, that they're there, they're qualified and validated in the best practices for production. With this, we'll eliminate this bottleneck that we have of some products. Where we have the demand, the sale, but we're not able to deliver. I think that's the first point for growth in the next year. E se preparou para essa. When we consider the stocks, we are prepared for this production. To understand, the production of these four lines. We are considering a stock that's above normal levels in the company. We're expecting to reduce this stock in the beginning. We should consider the production of this in the next month. With this, we'll start reducing this stock. Besides all of this. We would be prepared for the Alpha-epoetin, and then we would stock up as well because I think the biggest differential with Blau is the capacity to have a quick delivery, and we need to have all of these inputs in-house so that we can perform this quick delivery. I think that's pretty much what demonstrates the moment we're experiencing at the stock. It's a one-off moment. It's not recurring. It won't be recurring, and we understand all of this. Just as the revenue, right? We understand that we have the capacity to deliver more revenue and growth. We, on the other hand, are also taking care of the company's margins. We could be selling more finished, ready products with more added value and better margins, but that would impact the results and the margins of the company. We would also prefer to wait a bit and hold on the revenue of these products to keep the margins of the company at the levels we are at. Just to add on to this, the fourth quarter, with occasional opportunities that could be a highlight, but then that kind of unleashes the revenue and the inventory. Over 2026, as the new lines come into operation, they will scale up, right? You also have the launches from next year. We start accelerating the size of the market that is going to be launched. Of course, this should be reflected in an improvement in the revenues of the launches, right? Thanks for the question. Let's head to the next one. Now, Felipe from Itaú. Felipe Amancio from Itaú BBA. Felipe, your audio is released. Okay, great. We have two products here. Also, the hospital revenue, we saw a slowdown in the revenue in this segment. You talked about this a lot. I want to understand what are the main reasons that could be leading to this slowdown in the market, right? Just to understand if there's a trend in the sector even, maybe impacting the growth, and understand if besides the supply demand of the company, there's some other point you would like to highlight in regards to demand. Capital allocation is another point. We want to explore a bit of the plans for the cash and the investments in Cotia. You even talked about this to be able to support the current investments in the company. I want to understand if maybe you see space for an increase of distribution to shareholders. Thanks, guys. Starting off with the market here, we do not see. For example, in the market we operate in. The patient or chronic patient needs this drug, right? There is a reorganization among public buyers to postpone. To be able to. Então, eu acho que é essa situação, mas. This is pretty much the situation. We also see the growth of the consumption, right? The amount of patients also continues to grow and chronic diseases also. Especially Alpha-epoetin, which are products for chronic renal patients, right? This is a one-off moment to postpone and understand this. E o que tem nos dificultado. What's really made us difficulty is to understand the capacity, right? The productive capacity. Tem mais é que a gente não está os. The products we have capacity with to grow. We're going to be able to unleash this with the new productive lines, right? Yes, we have. As Douglas mentioned, we have been studying exactly what we're going to distribute, and we're considering the analysis to understand the best opportunities when it comes to JCP payments. I think Douglas can even talk about this. He has better details, right? That is the idea. This cash reinforces our cash position, and we're assessing the opportunities to be able to search for a better balance between compensating shareholders and preserving cash for the company. We are keeping up with these studies, and we're looking at how the closing of the year should take place. Probably up until the month of November, we should get back with a better definition. The idea is to reinforce our cash and strategic investments. All right, thank you so much for the question. Our next question is from Eduardo Resende, UBS. Eduardo, your audio is released. You can open up your mic. Great. Good morning, everyone. Marcelo, Douglas, and Matheus. We have two questions here on my side. The first one is to get a bit of your view on the plasma business in the U.S. and what the dynamics are like to search for new contracts. If you guys have already prepared anything you want to share with the market in this sense. Secondly, what are the short-term margins of the company looking at 2026, right? We have had really successful integration with Bergamo, and I wanted to understand what you guys see as other levers for margin expansion now in the short term. That is it. Thanks. We have different avenues. Eu acho que é o lançamento dos produtos novos, né, que trazem melhores margens. We can consider the best margins, production of these new lines, and just to understand, we've already hired people that are going to work on this, and these people are already contributing to Blau. They're in the qualification processes, validations, etc., but they're already employees, right? From the moment when these people contribute to bring in company revenue, we're going to be working on this dilution. Just to help you understand. On the other hand, we also have other opportunities for avenues of growth. We didn't consider this year, but there's also the possibility of growth through M&A with stronger cash position. We would also be able to consider possibilities in this sense. There are many different means for growth and ways to bring opportunities to the company when it comes to margins. The margins, a bit about this. Of course, Bergamo is very relevant if you consider the effect at the moment of the integration. It threw the margins downwards. This is transformational, of course. When you consider the short and midterm, basically, the evolution of the margin is going to really come through the utilization of better productive capacity. As you unleash capacity, you also grow the revenue. Now, there is a lot of this evolution, right? This is probably going to be to the short term. When you look at the long term, you already have transformational projects, which is where you have monoclonal antibodies, and you really get in the Pernambuco plant. You will have a new cycle and a new margin level, right? Up until then, we want to search for the best productive capacity, right? I think then you also have the plasma market issue in the U.S. and the dynamic there. I think that was the first question, right? Yeah, okay. We are prospecting new opportunities to sell the product. We've already been in touch with different manufacturers for plasma. I don't want to provide information on who these players are yet. We have more than one party interested, and three companies actually are interested in this plasma. We're going through an audit process from one of the manufacturers next week, actually. We went through a process also of changes in these plasma collection centers. Up until then, we were working on the entire process manually. This week, we started with an automated process with the FGA requisition. Now I can say that we have compliance. E a gente entende. We're complying 100% with the FGA requirements. We understand that it's a matter of time until we bring in this news, right? We also have an expectation with the plasma that's stocked up not only now, but also in the future. As soon as we have any revenue coming, our IR team can also provide more information to you. Thank you very much for the question. Our next question is from Maria Eduarda Hesende from BTG Pactual. Thanks, guys, for taking my question. Marcelo, Douglas, and Matheus, I just wanted to ask you about this question regarding plasma, especially in the provision of 8 million in this quarter. I wanted to understand a bit more about this decision and how this discussion took place with the auditor. With the acknowledgment of this adjustment in the quarter, and if this should be reflecting on a one-off. Revision of the prices, if there's a structural change in the plasma market and the new negotiations you discussed. If it is structural, what exactly changed in this scenario, right? If it's the global supply demand. For currency, etc. Finally, if we should expect new provisions up ahead, or if this adjustment now, BRL 8 million, should already reflect this current stock of plasma. I think that's it on my side. Great. Let's. Basically, what we have today is we have the expectation of the price for commercialization. Even considering the fact that we've already been quite a while without commercializing, then you're elevating the level of cost. Of course, clearly, when you look at the cost of the inventory, it is higher than prices. Any price we discuss. About the range of prices, if I do the last of the current, if it's an average price, what we would do. In any case, we have this weighted average that demonstrates the cost of the inventory because that's greater, right? Occasionally, if we recognize $1.5 million in this quarter, that's going to really depend on the evolution with the costs and the price we're going to commercialize. Remember that we were gaining a lot of efficiency. It really depends on this dynamic, right? Maybe we'll have more adjustments, but that's really going to depend on the dynamic. This is a normal process to recognize the negative margin to be able to keep up with the accounting rules, including. Okay. All right. Okay. Thank you for the question. Our next question is from Rafael Elardi from Bradesco BBI. Rafael, bom dia a todos. Obrigado por pegar aqui as nossas perguntas. Também vão ser duas. Thanks for taking our questions. We'll have two on our side. Also, the expansion of capacity up ahead in line with the APMO schedule, right? Basically, these four new lines would be sufficient to support the company's growth according to the schedule of AP1000. If there should be another incremental capacity until you reach the point where APMU would sustain this growth overall. Se faz sentido algum M&A. If it would make sense to have a possible M&A, maybe, of course, always double-clicking on this, with lower leverage, with this Protea cash as well. I want to understand this dynamic a little more. Finally, looking into the short term, BRL 200 million de lançamentos nesse ano. hundred million launches this year. You have the target of seven hundred. How are you imagining the short term until the end of the year? Just to understand these two matters here. Thanks, guys. Starting off with this point on the launches, Rafael, we highlight what was published on the slide side. We have about BRL 700 million for this year. We have an acceleration for another BRL 1 billion next year. These follow on track, right? Besides this, we are addressing the growth for the next years. We also consider the construction project in Pernambuco. In this period, we are working on some occasional improvements. We are improving processes. We have been working on these lines in an uninterrupted manner, 24/7, and we are changing our work methods, right? We do not have any. Bottlenecks in production for the next two to three years until we begin our operation in Pernambuco. The idea is to have this bridge, right? Even after they have the Pernambuco project, it is phased out, right? About the M&A, I do not imagine at this moment that there is going to be an M&A. Considering productive capacity, right? We even understand that what we are currently searching for when it comes to innovation and the 4.0 industry, 5.0 industry, especially in Pernambuco with robotics. We do not see any other players in the market in the hospital segment with these robust investments in this area or plants available at this point. Their audio is cut off. Just a minute. The guys in the room had a technical issue, and they have no audio, so we are waiting for them to recover that so we can resume translation. Okay. Senhoras e senhores, aguardem um instante enquanto reconectamos o palestrante. Ladies and gentlemen, give us one moment while we wait to reconnect our speaker. Olá, pessoal! Bom dia. Desculpa, a gente acabou tendo problema. Bastantes problemas. Até que dessa vez não foi pequeno. Oh, guys, we had a problem here. We do not know what was the reason for this issue. We are coming back here just with audio, and you will see just the Q&A projected. We were answering Rafael Elardi's question. Na sala. And Rafael, are you still here in the room? Yes, I am. Okay, guys, thank you. Tá, então, Marcelo, você estava respondendo sobre a questão de... Marcelo, you were answering. The M&A issue that we are not searching for. A companhia não deslumbra. In Brazil, para o aumento de capacidade. The company is not expecting to perform any acquisition. Que a gente trabalha hoje, que são os produtos. The products we work with are hospital projects, and we understand that we have a manufacturing unit that already has automation. As we think about this in the future with robotics, we're not expecting to increase our capacity with M&A, right? Ou outras unidades de negócio, outras linhas de produto. We expect to have other business units or product lines that can complement our current product line and business, but not thinking about productive capacity. All right, perfect. A gente está no chat, que é o Renan Prata do Citi. We have another analyst. Deixa eu confirmar se ele manteve. É mais uma vez, né? Agora já voltou a imagem também. A gente pede desculpas novamente. A gente teve problema técnico. We had a technical issue, and there was a drop in audio and image, but we're coming back. We'll answer the questions that are on the chat. We have other questions on chat as well. Se compromete a responder. We're sorry about that. We're committed to answer all of the questions from investors here. Faz a pergunta, por favor. Yes, you can hop in with your question. Okay. Just a quicker question here. We have two, actually. The first one is you talked about the taxes and the effective rate, ICMS investments, et cetera. I want to understand what the dynamic is up ahead and the nature of this subvention. Prática e mais. Considering the, with the omission of JCP, right? If we consider this as a more recurring practice. The other point is there's actually a mix of the follow-up and the stock and capacity. I want to understand if this expansion of productive capacity expected to begin in 2026 should. Also come along with the increase in stock, right? I'd imagine that there would have to be some acquisition for the support of this new expansion, right? Let's talk about the stock, and we'll maybe hear the previous comment. I was talking about how today the o valor está acima do. Current level of days of stock is not normal. It's above normal. We've already performed this acquisition of the inputs for the new productive lines, and we're already working on this inventory in-house. Just as we've already hired our employees working on these productive lines, when it comes to training, qualification, validation. We understand that when we actually begin producing for commercialization purposes, then these stock levels will drop. That's what our expectation is. We don't have this increase of the stock in the future. Now, about the effective rate, basically what we have is we have JCP, the interest on equity and capital. You have R&D, you have the late, the bane where you have this exchange as you invest. The subvention is basically because we're already operating with our unit in Pernambuco. You imagine the ICMS benefit in the state allows you to have up to two years before the installation in the industrial unit where you can subcontract your unit outside of the state of Pernambuco to perform the industrialization process. You then perform the exit there, and you can capture the benefits of the ICMS with the subvention and the results. That's a benefit we're already capturing now. When we look up ahead, once we already have the packaging product line, then we'll capture the benefit of SUDENE, which has a greater potential to reduce the effective rate, right? Up until then, I think those are the main factors that will contribute to the reduction and maintenance of the effective rate. Okay, that's clear, guys. Thank you so much. Now we're going to head to our questions on the chat. The first question is from Andrés Santana, shareholder here. That's an individual. It's a question that analysts already submitted about the taxation issue, right? We've actually already covered this topic here during the previous questions. Anyways, thank you for the question, André. Our next question is from Ricardo Sobrino. He's from 41 Investimentos. Parabéns pelos avanços na rentabilidade. He wants to know more details on factors that are blocking growth. We talked about this already, but we can cover this more, right? Capacity, credit restrictions, if there's any other. I think the main point is capacity. Of course, we have been very careful with credit to not have NPL on our balance sheet. Of course, we have a big opportunity for growth, and these investments in these four productive lines that were made, we will be increasing our supply of products. With this, we'll also increase our revenue, not only here in Brazil, but also in other geographies, right? Because as the company has been evolving in sales out of Brazil as well. We have Mauricio Almeida. He's also an individual investor. Thank you, Mauricio, for investing in our business. He wants to know if there's any program to visit the company's headquarters. Yes, here in the pharmaceutical industry, everything's very regulated. There are safety issues. Sometimes we prioritize professional investor visits. Of course, we can always plan on having a visit organized along with other investors coming in and maybe consider your presence as well. It is going to be a pleasure to welcome you guys. Thank you so much for this question, Mauricio. Henna Audici from the Investment Club Infinity said, good morning. With the rough year results and resources, does the company expect to pay off this? We do not want to anticipate this. I think that is not the intention. We have our gross debt flow that has really been maturing in the next three years. This is a relevant cycle when it comes to investments. I think, as he highlighted, search for incentivized lines that can bring in the benefits of reductions in financial costs. Eventually, we could even think about another operation that could provide us with a little more oxygen in the next years. We do not want to anticipate the maturities. There was never this discussion, right? That is a great question. We have no intention to anticipate it. Thank you very much, Hena. We have another question from Nicholas from Quantitas. He says we reached their gross margin of 42%, excluding the provision with Jamares. He wants to know if this is sustainable looking up ahead. I believe so. Especially with the monoclonal bodies, where we are 100% verticalized and producing in-house, the company margins will go up a lot more. We talk about margins, for example. When you consider the markup of the company today, it is a really low value. We had a quarter that we're not satisfied with. Even so, when you. It's equivalent to be the best historical margins, and we still see the company's markup not develop, right? We also understand that there's a lack of investor investment education and a closer relationship with investors to explain more about the monoclonal antibodies and verticalization and our own production in-house and producing all of the ingredients that go into my drug in-house, which gives me, for example, the margins of the producer and for the finished products. That's going to definitely contribute and leverage more because those are the most relevant products with more added value, more volume in the company. We do hope to bring in greater results. Trazendo resultados melhores. We've been having. Apesar do resultado do trimestre em termos de receita. If you consider despite this being stable. We had significant other advances that are going to allow us to have really good performance from 2026 onward. Beyond thinking about financial numbers in the quarter, we are demonstrating everything we had in recent advances, new production lines, launches, advances in monoclonal antibodies. Opportunities even with the gross margins, et cetera. Most of the expenses are already in-house. With revenue getting back to growth, you can dilute those. You have an opportunity also in the tax front. That is not something that should be excluded, right? With SUDENE, you have about 65% reduction in the taxes to be recovered. This is very significant, and it is going to contribute to the margins as well. We are starting off with this journey, and it is a pharmaceutical industry that has high complexity of drugs in our development cycles and regulatory journey. Clinical journey is a lot greater than other, simpler products like OTC and nutrients and nutrition, et cetera. We have cycles that are five, seven, ten years, and that demands and requires time. We are sure this will bring surprising results in the future. Thank you very much, Nicholas, for your question. Anything else? I think we covered everything. Just final comments here. We are not satisfied with our results because we saw our cycle grow a lot due to our preparation for activities in the new factories. We will be delivering a better cycle in the next months. We understand that there is a lack of growth in our results. We are going to bring this growth with the release of these productive lines through Anchisa. Everything is well addressed and covered here. We are really keeping an eye open when it comes to this. I know a lot of employees are watching the earnings call. I want to thank you all for your performance and excellent results. Of course, we want more always. We are experiencing a challenging moment, economically, financially, and politically, and a lot of volatility as well. Despite all of this, we have a solid, sustainable company that is cash positive and really performing great investments. Results will come over time. It is just a matter of time. I want to thank you all for having believed in our business and for being here today. Thank you very much. Thanks, guys. Bye. With this, we are officially closing our earnings call for the third quarter. If you have any other questions, you can contact our IR department. Thank you. Bye-bye, guys.