Hello, everyone. Thank you for joining us, and welcome to the Uniphar Interim Results 2026 Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Allan Smylie, Head of Strategy and Investor Relations. Allan, please go ahead.
Good morning, everyone, and welcome to Uniphar plc's interim results presentation, which covers the period from January 1, 2026 to June 30, 2026. I'm Allan Smylie, and I look after investor relations at Uniphar plc. Presenting our results today is Ger Rabbette, our CEO, and Tim Dolphin, our CFO. We're also joined on the call today by Brian O'Shaughnessy, our Chief Commercial Officer, and Dermot Ryan, our Chief Operating Officer.
Before we begin, I would like to remind everyone that you can access the presentation either on our website, latest results and presentations, or via the link sent to you when you registered for the call. The results presentation will last approximately 20 minutes and will be followed by Q&A.
Please note the interim results presentation may contain certain forward-looking statements, beliefs, or opinions which are based on current expectations and projections about future events. Actual results may differ materially from those expressed or implied as such forward-looking statements. I'll now hand you over to our CEO, Ger Rabbette.
Thanks, Allan. Good morning. Thanks for joining us. We start on slide five, where we outline who Uniphar is. Uniphar is a diversified healthcare service business who partner with over 200 of the world's leading Pharma and MedTech manufacturers. We operate in Europe, U.S., APAC, and MENA, delivering to over 160 countries.
We have three divisions who all operate in different parts of the healthcare ecosystem, but essentially our job is to get products to patients. That may be as straightforward as supply chain or as complex as taking charge of the whole commercialization process for a product in the market. Our strategic focus is on specialty, and we've delivered an excellent six-year EPS CAGR of 16% since we IPO-ed back in 2019.
Our ambition is to deliver EUR 200 million in EBITDA by 2028, largely organic, and we are investing heavily now in our infrastructure across people, IT, and facilities in order to really scale our business for the longer term. On slide six, we outline the ecosystem that we operate in.
We sit in the middle between the manufacturer and the stakeholders, and we help both of them to overcome the problems of approval, access, payment, logistics, and commercialization in this new, more complicated healthcare environment. We've built a suite of capabilities and a global platform that allows us to support manufacturers to navigate the obstacles involved in getting their specialty products to market. On slide seven, we outline the group's financial highlights. As you can see, this strategy is delivering for us.
We've had a strong first half, delivering organic gross profit growth of 7%, return on capital employed of 15%, and earnings per share grew by 11%. At the same time, free cash flow conversion was negative, reflecting the unwind of prepayments that we had previously flagged, and our leverage landed at 2.4 x. In the half year, we generated an EBITDA of EUR 61 million, with robust organic gross profit growth of EUR 15 million, with each division delivering a strong performance.
If you look at slide eight, you can see our track record since IPO. Since then, we've more than doubled gross profit and EBITDA. We've seen consistent growth in our margins and earnings per share. Our earnings per share has grown from EUR 0.10 back in 2019 to be EUR 0.25 last year. We're on track for another strong year in 2026.
We've achieved these great results without compromising on the things that are important to us, like our impact on the planet and the communities that we serve. On slide nine, we outline where we focus across ESG, and we continue to maintain excellent scores from independent rating agencies. On slide 11, we give more detail on our three divisions. Uniphar Pharma, it's a global opportunity with high growth, and we see growing margins as our product mix develops.
Uniphar MedTech, European opportunity, high growth, high margin. We offer a full service distribution and commercialization solution for our partners with a clear focus on specialty. In Uniphar Supply Chain & Retail, we see this as a U.K. and Ireland opportunity. It's lower growth, lower margin. However, we see this as a cash generation foundation for our wider business.
Let's look at Uniphar Pharma on slide 12, where we overview the structural drivers shaping this opportunity. Healthcare-wide macro factors make a company like ours increasingly important to both makers and users of specialty healthcare products. Look at biotech. Most innovation in healthcare is in specialty products. 85% of the global development pipeline is in the hands of small and emerging biotech companies, with biotech now accounting for circa 60% of all drugs launched in the U.S. in recent years.
These emerging companies tend to have very limited infrastructure outside the U.S. Secondly, there is increase in supply chain complexity. The new specialty products are high growth, high margin. But rare disease products are not just harder to make, they're more complex to ship. They require cold chain and specialized prep, and they need to be administered in a hospital setting.
All of which makes it harder for these R&D-focused biotechs to unlock the commercial opportunities that they have created. Even big pharma in this space are making the decision to focus only on larger markets because of this complexity. What does this mean for clinicians and their patients outside of the larger markets? Well, Google means that there is an awareness worldwide that these treatments exist and that they work.
But access is a real challenge beyond the big markets. On slide 13, we summarize our platforms and our capabilities, and on slide 14, we outline the Pharma division's strong financial performance, with gross profit growing by 7% to EUR 69 million on a revenue base of EUR 370 million. Global sourcing has had another busy year, servicing a strong demand for all lines of medicines and medicine shortages from hospitals, which has been supplemented by our clinical trial supplies business.
We continue to invest heavily in our global ex-U.S. launch and commercialization platforms, which is affecting margins in the short term, but which will give us a much-enhanced end-to-end offering going forward. We have a strong pipeline of high-value opportunities in the ex-U.S. commercialization space, and we are excited about the impact that the successful delivery of even a small number of these deals could have on our margins within this division.
We remain confident that Pharma will grow double digits for the full year. Let us look at MedTech on slide 15. We outlined the structural drivers for this business. The European market is large but fragmented. The total European MedTech distribution market is worth over EUR 60 billion. It is growing at a CAGR of 3%-4%.
As we see it, there is a lot of change at the minute, where manufacturers are reevaluating their portfolios and looking at new routes to market. This ongoing change in the industry is beneficial to us as the market moves to a hybrid/indirect model. Slide 16 summarizes our platform, our capabilities, and the specialisms we are operating with MedTech.
If you look at slide 17, we outline MedTech's strong financial performance, with gross profits increasing to EUR 63 million or 9% growth, all of which is organic. EBITDA increased to EUR 24 million, and we saw growth across all specialties as we continued to deliver against strategy, go online with new and existing clients in new geographies.
We continue to see great opportunity to leverage our strong manufacturer relationships to enter into new geographies with existing partners, leveraging our existing platforms and sharing resources with our Pharma business as we do in Lelystad in the Netherlands. With 87% of the business recurring in nature, MedTech is now 27% of the group's gross profit. We are confident that this division will continue to grow high single digits.
On slide 18, we talk about Supply Chain & Retail. This division, as we have always said, is an integral part of Ireland's healthcare infrastructure, and we continue to grow share. We are vertically integrated, linking the manufacturer to the healthcare professional with a world-class service offering. The business has a strong competitive moat, huge barriers to entry, and we have clear blue water between ourselves and our competitors in terms of infrastructure and future readiness.
Working with both retail and hospital pharmacies, we are moving up the value chain to deliver a market-leading service offering. We also have the largest pharmacy network in the country, with 512 owned or franchised stores. On slide 19, we outline the division's financial performance. It delivered 10% growth in gross profit to EUR 105 million on a revenue base of EUR 1.1 billion.
Wholesale grew strongly across both Rx and services, helped by the addition of 30 new pharmacies into the network. Retail saw good growth in the core area of Rx and strong growth in services, but faced a soft need in the front of shop. EBITDA actually made at EUR 23 million, reflecting some additional costs in the period, which Tim will talk about later.
As we see it, Uniphar Supply Chain & Retail is entering a critical phase ahead of the go-live of our new DC center in February of next year. This is a strong cash generative business which provides infrastructure, resources, and skills to other parts of our business. On slide 21, we give an update on our investments.
As well as our flagship investment in Ireland, we have invested in our Uniphar Pharma and Uniphar MedTech platforms in the Netherlands, where we built a world-class distribution hub to help us really scale this business in Europe. At the same time, we have invested in a world-class facility in North Carolina to help us grow our Uniphar Pharma services specialty offering in the U.S. And we are on track to operationalize a similar facility in the U.K. this year. These facilities today are initially operating at around 30% capacity.
This is a real drag on our operational leverage in the short term, but it really future-proofs our earnings in the longer term. It gives us the headroom to continue to grow strongly well beyond our 2028 target of EUR 200 million EBITDA. On slide 22 and 23, we give some more detail on our flagship DC facility in Ireland. We call it Greenogue 2.
As we see it, this significant investment future-proofs our strong market position in Ireland. It transforms our cost base and allows us to deliver the pharmacy of the future. It is also key to the delivery and growth of our European Uniphar Pharma business. It is a very complicated, complex, and demanding project. We have over 40 of our best people on it. We have decided to extend the timeline to allow for additional testing, but mainly to minimize the execution risk of our very busy Q4 period.
We will now go live in February of 2027. As we see it, this is a generational investment in our infrastructure and IT, and we will reap the benefits of this significant investment for many years to come. I will hand over to Tim to talk you through our financials.
Thanks, Ger. I would now like to take you through the financial highlights for H1 2026. I am pleased to say that the group has delivered a strong performance during the period, with gross profit growth across all three divisions. At an overall group level, we generated gross profit of EUR 236.5 million, up 7.7% from H1 2025. The group delivered strong organic gross profit growth of 6.9%.
EBITDA has increased by 6.2% to EUR 61.1 million. Adjusted EPS is up from EUR 0.098 to EUR 0.109, representing an increase of 11.2%. This has resulted in a return on capital employed of 14.7%, within our medium-term guidance of 12%-15%. Leverage for the period was 2.4x, and this reflects the unwind of favorable movements in working capital that we communicated with the FY 2025 results.
Moving on to the next slide, have a look at divisional performance at a gross profit and EBITDA level. Uniphar Pharma delivered reported gross profit growth of 7%, all of which was organic. This was led by strong contribution from our pharma service pillars. The divisional gross profit margin was stable at 18.5%. We continue to focus on transitioning into more profitable, higher margin activities. EBITDA increased by 3.9% to EUR 14 million and a margin of 3.8%.
This margin reflects the continued investment in our European commercialization platform and other growth initiatives. Uniphar MedTech delivered a strong outcome in H1 2026. The division delivered reported gross profit growth of 9%, all of which was organic. This performance reflects the strength of our business, the deep expertise of our team, and the diversity across our service offerings. The gross profit margin was stable during the period at 41.2%.
EBITDA increased by 11.5% to EUR 34.1 million, and EBITDA margin increased to 15.9%. Uniphar Supply Chain & Retail performed ahead of its divisional guidance, with gross profit growth of 7.3%, 5.6% of which was organic. This division has strong recurring revenues plus a stable and robust gross profit profile. Its gross profit margin stayed stable over the year at 9.8%.
EBITDA increased by 2.4% in the year to EUR 22.9 million, and a margin of 2.1%, reflecting the investment in our services proposition, inflation, and statutory wage increases, including auto-enrolment. As you know, we are migrating from our existing distribution center and IT systems to a new state-of-the-art distribution center and cloud-based IT systems. As Ger indicated, we now expect this to go live in February 2027 and will require incremental CapEx of approximately EUR 20 million.
As we indicated previously, there will also be a significant level of once-off expenses relating to this move, which we will treat as exceptions. These will now be phased over 2026 and 2027, with the majority being next year. Moving on then to have a look at the balances and net debt.
At a high level, we finished the period with a net bank debt position of EUR 275.7 million, driven by an opening net debt position of EUR 171.1 million, strong EBITDA of EUR 61.1 million, a working capital outflow of EUR 86.5 million, reflecting the anticipated unwind of working capital benefits from Uniphar Pharma last year, CapEx, including strategic CapEx, of EUR 36.6 million, and other items of EUR 42.5 million, including tax, finance costs, and lease payments.
Our strategic CapEx reflects the significant multi-year investment we are making in our new distribution center, Greenogue 2, our new SAP platform, and the other projects that Ger mentioned earlier. Our reported free cash flow for the period was negative EUR 47 million, and I'll take you through the details of that on the next slide.
Here we outline our free cash flow generation and free cash flow conversion for the year. Our definition of free cash flow is EBITDA, less investment in working capital, less maintenance CapEx, less lease payments. For the first half of 2026, this translated into a free cash flow conversion of -77.1%, reflecting the expected unwind of prior year working capital timing benefits in the Pharma division.
Looking at free cash flow through a longer-term lens to remove these timing impacts, our free cash flow conversion in the last five years to June 2026 has averaged 65%, and we continue to expect free cash flow conversion of 60%-70% by 2028 at EUR 200 million EBITDA. Moving on now to slide 30 on capital allocation.
Capital allocation has and remains a key focus for the group as we adopt a disciplined and balanced investment approach to creating shareholder value. As we have always said, we will invest in organic and inorganic opportunities across each of our three divisions, which support our strategic objectives and deliver return on capital employed at or above our hurdle rate of 12%-15%. We maintain a prudent approach to leverage and aim to keep our net bank debt to EBITDA below 2.5 x over the medium term.
In addition to our progressive dividend policy, we will also look at share buybacks subject to market conditions. Moving on now to slide 31. As you know, the last couple of years have been focused on organic investment in our infrastructure, technology, and people, but M&A remains a key strategic enabler for the group.
We tend to work with people before we engage on any M&A discussions and now have a reputation for being a responsible owner in the market. We avoid competitive auction process, can buy off-market, and get good value. Our pipeline is mainly focused on Pharma. We are looking for acquisition across areas like market access, as well as commercialization platforms and specialist distributors. I now hand you back to Ger to finish off on our medium-term ambitions and investment case.
Thanks, Tim. If you move to slide 32, we outline our ambitious target to deliver EUR 200 million EBITDA by 2028 . We'll achieve this target through robust organic growth across all three divisions. We'll also complement this with some strategic M&A. However, there's no doubt that the revised go live in our DC facility to February of next year reduces our M&A window. But we still remain confident that EUR 200 million EBITDA is achievable by 2028 .
Finally, on slide 33, we outline our investment case. We're going to the next stage of our growth, armed with a much greater number of capabilities. We've demonstrated a strong track record on delivery. There is compelling market opportunities for ourselves, very favorable market backdrop, and plenty of scope for growth across each of our three divisions. Each division has an attractive competitive moat, and we have a concrete plan in place to grow and deliver on our ambitions. Thanks for listening. Now I'll hand back to the operator for Q&A.
We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Please limit yourself to one question and one follow-up question. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Colin Grant with Davy. Your line is now open. Please go ahead.
Great. Thanks very much. Good morning, everyone, and thanks for taking questions. I've got one on the Pharma division, and then there's a follow-up on the Pharma division. I might just give both of them together if I can. Just firstly, on Pharma, you're expecting to see a stronger rate of growth in H2 versus H1, and the prior year comparatives appear to be a bit easier for you in H2. Can you give any color on whether there are specific contracts or business areas that will also contribute to the expected acceleration in the rate of growth in H2?
Just as a follow-up on that, the strategic investments that you've made, you've outlined you've made these in new U.K. and European hubs in the Pharma division, and they're expected to become operational this year. Can you maybe give your latest plans on these hubs and the medium to long-term opportunities that you see coming from them? Thanks.
Thanks, Colin. Maybe Brian, you might take the first question, Dermot, the second one, please.
Hey, Colin. Brian here. I suppose just to deal with the privacy first. We do benefit from more favorable comparative second half, but we would not characterize the anticipated acceleration as being solely comp driven. What gives us confidence is the breadth of growth drivers across the Uniphar Pharma platform.
We continue to see strong momentum in the higher value activities we're offering, such as expanded access, specialty distribution, bespoke distribution, commercialization, as well as strong growth in our global sourcing platform. We're also seeing increasing traction from the investments we've made in building a more integrated global platform, and Dermot will touch on that in the next question. That helps us win larger, more strategic mandates. The key point is that the business today is materially different to the business a few years ago.
We've deliberately repositioned towards higher margin, more specialized services, and continue to see strong demand for our high-value, flexible model in Uniphar Pharma services, as well as strong demand in global sourcing.
Hi, Colin. Dermot here. We've always looked on these investments, similar to our North Carolina facility, as group investments. If you take our facilities in the U.K. and in Lelystad, we've two new Uniphar MedTech clients launching in Q4 there. The other key thing for us is it allows us to launch new service lines. If you take Lelystad, that facility will house our new EU pack and label facility.
That's something that our customers have been talking to us about for quite a while. It gives us that sort of global offering across the U.S. and EU in that space. And obviously, it also allows us, with the additional capacity and with the ultra-cold storage capability that we have, to launch specialty distribution into the EU market as well. So those investments are really about building the platform and building it once.
That's great. Thanks very much.
Your next question is from Charles Weston with RBC Capital Markets. Your line is now open. Please go ahead.
Hi, thanks for taking the question. First of all, just in terms of the new Ireland facility. Now that you're in testing mode, can you give us a sense of your confidence around the operational and productivity savings that you'll be able to drive from this facility? My second question follows up on the working capital timing. You've been benefiting from prepayments for quite a while, actually. Each one of them are somewhat one-off and timing benefits, and now it's unwound. Is there any chance that this winds back up again at some point over the next few months?
Tim, you might take those two questions, please.
Yeah. I'll take the second one first, Charles. Obviously, as you said, there was an unwind of s ome prepayment in the period. Our objective is every time we do a deal, to try and be as positive from a working capital perspective as we can. We try and make sure that it's favorable to us from a cash optimization perspective.
So when you look back, Charles, as I said in the call there, over the last five years, our free cash flow conversion has been over 60%, at 65%. As we look to the future, at EUR 200 million EBITDA, our free cash flow conversion is going to be between 60% and 70%. It's very hard to predict each deal, whether we're going to get prepayment soon again or not, or the economics of it. It's all down to a deal by deal perspective, if you understand me.
Then just moving on to your first question on the DC, on the DC facility and the level of confidence. We've a high level of confidence, Charles. The reason why we're delaying to Q1 next year is because of the Q4 activity that will be going on in the division. It's a really, really busy period. So from a confidence perspective, we have a high level of confidence.
We're doing end-to-end testing, checking absolutely everything. But as we said to you, should we have any issues, we still have our current facility. So we're actually going live in a situation where if anything pops up, we won't have any operational implications on it because we will still have our current facility to utilize.
And perhaps if I can just follow up on that. Now that you're in testing mode, has anything surprised you potentially to the upside or the downside in terms of the potential level of productivity savings that you're likely to be able to make?
No, there's nothing, Charles. This project has been four years in planning, four years in implementation. You can imagine we've tested, we've double-checked everything we can. So the tests we're currently doing are really good. So we're very positive. So we're absolutely on track. The challenge we have, from a go live, we were just getting too close to Q4. Q4 is a really, really busy period for us in Uniphar Supply Chain & Retail. So we deferred it to February. So we're really confident this will go, it'll be a seamless transition, and we crack on as the business case, I think, remains really strong, Charles.
Okay. Thank you very much.
Your next question is from Kane Slutzkin with Deutsche Bank. Your line is now open. Please go ahead.
Morning, guys. Just a quick follow-up on the Uniphar Pharma question. Just looking at margins, obviously it's 3.8%. You're obviously investing a bit you were saying. Just how should we be thinking about the margins there and the trajectory or magnitude of expansion over time? Then just on the balance sheet and M&A.
Given where leverage is today, and you did mention revised go live does maybe reduce the M&A window, but what is your financial capacity now to do some M&A, and is the pipeline weighted towards smaller capabilities, or could there be a more step change kind of acquisition in time? Thanks.
Brian, you might take the first part of that question, please.
Yeah. If you look at our strategy in the Pharma division, it has been intentional, I suppose, for a move to higher margin, more sustainable revenues. The platform we have built is moving away from just selling siloed services into being a more strategic partner, integrated services, which allows us be a strategic partner and actually move into taking margins on exclusive rights to products.
Everything we have been building over the last three years has been moving us towards higher margin, more sticky revenues. You are starting to see that come through, and we will continue to grow in that trajectory. Our global sourcing business continue to see strong growth and strong market position growth, which also then provides stronger margins than if you look back at our traditional services over four or five years ago. So positive trajectory on our margin growth.
From the M&A perspective, we still have a very strong pipeline, really good track record. I think basically if we look at it, we are determined to be an asset-light business post the current investment phase. Today we are invested very heavily in our people, in our technology and infrastructure. But post this, we will be asset light. Our M&A activity would be around Pharma and MedTech where we want to build out our platforms to rescale those businesses again. So we still remain very confident that we will drive strong organic growth and then supplemented by some strategic M&A.
All right. Thank you.
Your next question is from Christian Glennie with Stifel. Your line is now open. Please go ahead.
Hi. Morning, guys. Thanks for taking the question. The first one then, just around MedTech, obviously a strong first half performance. Just to understand more the sort of drivers for that performance. Were there any particular sort of one-off benefits, bearing in mind that typically in the last years, at least on a growth perspective, it has actually been weighted more towards the second half?
Just trying to understand if there is any particular benefits in the first half that major changes that dynamic going into the second half. And related to that, you are clearly winning from areas of focus on certain specialties. Does that mean maybe you are looking at other specialties, maybe organically or through M&A, that might be attractive as well to maintain that growth and margin? Thanks.
I think basically, MedTech, it continues to do what it has done for the last number of years. We are working with partners in different geographies and we see keep doing that. Expand into Europe with existing partners will deliver growth for a number of years yet to come. So we are really comfortable with the business. Great teams and great opportunity for ourselves. Brian, do you want to add to it?
Yeah. To add to the first part of that, Christian, around the H1 performance, and then the H2 rating. So the performance is broad-based, so it is not based on a single contract or a single event. Key drivers is continued to grow in our special therapies area, increasing penetration with existing manufacturer partners, and we are seeing the benefits that we made over the last number of years.
On the rating, the size of the business has benefited from a number of H2 factors, including product launches, supplier onboarding, new customer spending patterns, existing customer spending patterns, and all of those dynamics continue to be in place. So there is a healthy pipeline of opportunities. So we would expect to see that traditional H2 rating. On the second question around the specialist areas, and the likelihood of looking at other specialist areas. So you are absolutely right.
We are focused on our strategy, which has consistently been focused on orthopedics, surgical, connected care, diagnostic imaging, interventional ophthalmology. These are the higher growth segments within the medical device market, and the customers value technical expertise, regulatory capability, and local market access, where our field teams spend over half their time in theater.
These segments continue to be high growth, high barrier to entry, and where we will continue to focus. But always being open-minded for, I suppose, areas that would be tangential to those specialty areas, but without deviating from our strategy.
Thanks. If I can just ask a follow-up on the EBITDA acceleration, the sort of H2 weighting we have got, and obviously you articulated the drivers in Uniphar Pharma. What about the drivers in Uniphar Supply Chain & Retail division in terms of that accelerating EBITDA growth? Just to understand those a bit better. Thanks.
I think Uniphar Supply Chain & Retail is constrained today because our capacity, we are at pretty much max capacity, and we are heading into an exceptionally busy Q4. Our whole focus is to make sure we deliver a very high level of service to our customers as we have always done, and drive forward and get Greenogue 2 operational.
I think basically this time next year, we do plan to give further guidance on Uniphar Supply Chain & Retail going forward. Because I think it will outperform our current guidance. But I think it is too early to call that yet. We want to get through this, get it done, and then be able to give you guys better guidance this time next year. But we are really confident this business will continue to grow going forward, and we are in a really good place.
Okay. Thank you.
Your next question is from Sam England with Berenberg. Your line is now open. Please go ahead.
Hi, guys. Thanks for taking the questions. The first one is just on the Supply Chain & Retail business. You called out the supply chain that was impacted by capacity constraints. I suppose with the new facility coming online, could we actually see that business accelerate from here?
You've obviously been growing fairly consistently above the market, but could things pick up further as that facility is open? Then on the MedTech side, can you just give us a sense for how much of the growth in H1 was driven by new versus existing clients? More broadly, do you think you're seeing an increase in outsourcing by MedTech companies in Europe that's benefiting the MedTech business? Thanks.
Tim, did we do the first one? Or was-
Yeah. Sam, as we go live with G2, we're going to be doubling our capacity at Lelystad. There's a really strong business case behind it. It's predicated on operational efficiencies and growing the growth margin. That extra capacity will give us the opportunity to roll out our offering and our services to new customers and give a really strong platform for that division to drive on.
Brian?
Yeah. On the MedTech side, as we mentioned earlier on, core to the strategy is growing with our existing clients into new regions, which has been very successful to date. Digital growth requires early investment, and we are seeing the benefits of these investments coming through. We also target new customers. The performance reflects contributions from each of these.
Existing clients in established regions, we continue to grow strongly, but also existing clients into new markets where we have invested, and we are seeing the benefits of that growth coming through. Then also new clients that we have won and again, have invested in over the last number of years. We are seeing the benefits of that growth coming through. The strength of the performance demonstrates our ability to win new business. Equally important, though, is also to grow our share of the wallet in our existing markets.
On the increasing, I suppose, lean into outsourcing, we are seeing that a lot. It is not just about smaller MedTech who do not have infrastructure looking to leverage platforms such as Uniphar or large MedTech who are looking to outsource in the traditional outsource market. We are also seeing a focus for the larger MedTech clients in terms of what are the strategic priorities for them within their portfolio.
Then outsourcing, I suppose, what they see as their non-strategic parts of their portfolio into even large markets. You are also seeing large companies divest huge parts of their portfolios, again, which are non-strategic. We have seen that with Stryker and Philips. Then being picked up by private equity companies that do not have existing infrastructure.
All of those structural drivers play to the strength of the platform that we have built and just see it grows in the opportunities ahead of us, particularly in the U.K. and continental Europe, where we have barely scratched the surface of the opportunities relative to the size of those markets. Very, very positive outlook.
Great. Thanks.
Your next question is from Sebastien Jantet with Panmure Liberum. Your line is now open. Please go ahead.
Good morning, and thank you for taking my questions. Just both on Pharma, basically. I am just wondering if you could give us a little bit more color on whether you are beginning to see the impact of the MFN unwinding and some decision-making moving forward in terms of commercialization contracts. I guess linked into that as well, I have seen a few trials being paused in some gene therapy. I am just wondering if that has had any impact on your existing business or any of your discussions as well.
Thanks a lot. On the MFN, overall, the commercialization pipeline remains encouraging. We have strong engagement from emerging biotech companies seeking an alternative model to traditional licensing models. Our integrated proposition from access through to commercialization is resonating well, and key to that is our ability to leverage the infrastructure built through our global sourcing business. On MFN specifically, the situation continues to evolve.
What we are seeing is a greater focus from biotech companies on launch planning, geographic sequencing, broader market access strategies. In lots of respects, that actually plays to our favor. What we are offering here is a much more flexible model that allows control remain with our clients. If you license out your product, you are losing control over things like pricing strategy and sequencing, and they are now critical when you look at MFN.
Our model where we effectively act like the affiliate to our partners allows them remain in control of those critical decisions around sequencing and pricing to ensure that they are not going to have an impact on their core pricing market in the U.S.
We are also seeing it does not impact everybody, so we have adjusted our targeting segmentation for assets that will not have an impact for MFN, because MFN is really impacting portfolios where the government is the biggest payer in the U.S. of those portfolios, which tends to be the Medicaid, where there is an older generation being subsidized for their medication. There is still a huge opportunity for portfolios that will not have an impact for MFN. But overall, I think the core sentiment is it actually plays to the strength of the model that we are offering. I do not know if you want to take it .
Yeah, I think issues within trials are, it is part of the rough and tumble of drug development. We are not seeing any great impact in our own pipeline. We have good visibility into 2027, and it remains very strong. I think that is, you will always have issues within certain trials.
Fundamentally, that is part and course of the business we are in. We have to ensure that we keep a very broad pipeline at the top end of our pipeline and continue to be able to support our clients throughout these delays. But that is par for the course of this industry.
Great. Thanks, guys.
There are no further questions at this time. I will now turn the call back to Ger for closing remarks.
Listen, thanks for taking the time to join us this morning, guys, and we look forward to having another strong H2 for our shareholders, and we will chat again in the new year.
This concludes today's call. Thank you so much for attending. You may now disconnect. This event has now concluded. Thank you for joining Uniphar Interim Results 2026 Conference Call. The line will disconnect automatically.