H2 20/21

May 26, 2021

Good day, ladies and gentlemen, and welcome to the full year 2020 20 1 Results Conference Call of Ipsomed. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. I would like to introduce your host for today's conference, Mr. Thomas Katt, Head of Investor Relations. Sir, the floor is yours. Thank you, Melanie. It's a good day, ladies and gentlemen, and thank you for joining us for our full year 2021 Results Earnings Conference Call. Joining me today are Simon Michig, CEO and Nicolas Amzayer, CFO. Quarter. Our press release, report and presentation discussing our financial year 2020, 2021 performance are also available in the Media and Investors section of our website. With that, I will turn the call to Simon. Simon, please? Thank you, Thomas, and good morning, good afternoon, ladies and gentlemen, for this presentation of our Full year 2020 21 results. We will show you how robust Our business model is we are delivering product for chronically ill people independent from a pandemic. And it has shown in both our business areas that the demand is still here despite of the virus. So what we have done over the past 12 months is really executing on our YPS strategy, while at the same time keeping more patient on IPSOPAM. Now the growth, obviously, on IPSOPAM side Has been below our expectations simply because we have not been able to meet doctors and clinics during the pandemic time. On injection systems, we have had a very strong H1 with a slightly weaker H2. But with GSK and AstraZeneca, for instance, on asthma, Several PDH launches with Finnix, Alvogen, Mojida, ATP in Japan and Gideon Rigde, But also, Ullapen in Russia for Geralfarm, just to name a few, we have been able to deliver on our pipeline, leveraging our platforms. With 17.5 1,000 patients on ipso pump. We are below our original expectations. Obviously, we wanted to reach 20,000. But nevertheless, We have used the time to progress on our technical advancements and on our ipsoppant model, which With an EBIT on the same level as the year before, We are on the way to our midterm targets. Let me highlight a couple of elements on our strategy. And As you may have seen in the annual report, we are now no longer presenting YDC and YDS separately, but really reporting integrated on our 4 strategic initiatives, our 4 strategic pillars. And the first one, innovation and digital health, We're mainly focusing on the enhancement of its pump system integrating DexCom TGM sensors and making progress on our AAV program. At the same time, we have been able to close the deal with Schott and Lonza for the industrialization of the Ipsodose large volume injector. On the global scale, talking about affordability and access and expansion, We have been able to sign in November this very important deal for us with Eli Lilly. Eli Lilly is going to launch our pump in the U. S. Market in 2022, and we are going to show you today a bit more details. We have also been able to derisk the pump business by settling its inlet end of last year and by divesting the Ibsipot program, So being leaner and more focused for our core Inter Pump activities. In our 3rd strategic initiatives, The topic around responsibility and sustainability, we have been able to enhance massively on our path towards net carbon 0. We have been signing design based target initiatives, which gives us ambitious targets to take out carbon emission out of our products, Our programs and our installations in order to eventually deliver carbon net 0 towards pharma clients. We are going to show you how we do that. And on the platform level and on the operational excellence level, we have expanded the capacities We are implementing 2 new lines for auto injectors, but also implementing now the line for infusion sets for the Orbit infusion sets for IPSA pump. We are ready for the MDR change. As some of you may know, in Europe, today is quite an important day With MDR, the new medical device regulation, going into action and Switzerland not being part of the European Union needed to We have done that on a legal perspective. We are ready, and we have no interruptions COVID has been a special time for many of us. And COVID has, of course, an effect on most companies' strategies, on most companies' way they look at their business. When you look at Ibsenet and look at COVID, it's actually enforced on our main growth drivers. Self care, for instance, is a topic which is inherently clear, moving therapies from hospitals to home care. So self care is getting more and more important. Digitization, doctors want to stay into contact with their patients. So more and more digitization is being accepted by patients. More and more pharma companies are seeking digital solutions to integrate their products with big data. Affordability, we have also seen that chronic diseases All those such as this virus are obviously global topics. Chronic diseases as well, cancer, asthma, migraine, diabetes, just to name a few. And these are chronicled global issues. We are able to deliver products not only to the 1st world, but also to emerging markets, China and Southeast Asia. Supply chain. We have been able to show that our supply chain is very robust from generating The supply from Granulaid for our plastic molding until educating our patients, we have not had any interruption in our supply chain during that crisis. And partnering, we have been able to sign a deal with Dexcom to sign it immediately to sign several pharma deals without even seeing the people, which gives me confidence that we are robust in also such a special time to deliver on our promise. Let me use the time with Slide 6 here to get a bit into more detail on how we see our strategy And what our growth drivers are and what our purpose is. And I would like to start with our 4th pillar, technology platforms and operational excellence. Obviously, self care and home care is a global need, and the growth driver here is simply these chronic conditions and So this market will stay, and this market will grow. And this Med is delivering because we have these platforms in place. So we are extremely efficient to put new companies, new products, new indications online onto our products. And we continue to work on the new management. We continue to work on taking cost out to stay productive and to be able to deliver such products to earn patient in need. And how we do that? We are doing that in a responsible manner, in a sustainable responsible manner Also taking action on the climate challenge. Paris 2,050 is a duty for all of us, And also Ipsenet will do his part. So our vision is clearly to be carbon net 0 on Scope 3 by 2,000 For P and S Cohort 1 and 2, and I'm going to explain you that by 2,030, so 10 to 20 years before Paris is obliged to deliver. Access and expansion, our 3rd pillar. It is very important that we are not only addressing new drug innovators but also biosimilars. And this is sometimes in this discussion, why are you delivering products to Innovators and also to biosimilars, but it is our global duty to deliver to all of them and to really be a packager of modern drugs for both companies in the Western and in the emerging markets. So global access to therapy is a key purpose of Ixomay and we're going to deliver that also in the future. And then the 4th pillar, innovation and digital health. Obviously, the trend towards liquid drugs, and I've been talking to you about that before, is undocked. More and more drugs Are being delivered subcontaneously via injection, they can no longer be swallowed because the stomach would not allow to pass the molecule. So this trend is ongoing, and this trend, combined with digitization, is an important growth driver for better therapy outcome. Together with digitization, we are able to take action on the behavior to actually work on the behavior of patients. I'm going to show you that to enhance and to increase the therapy outcome, a key purpose for modern therapy and for modern medicine. And if you look into our Allo report, We are now following these SDGs. As you may know, there are 17 Sustainable Development Goals of the UN, and this summit is actively working on 13 of them. So we are looking into our 4 strategic areas of actions, and we're measuring in all details how we are doing, How we are enhancing the quality of life of people with chronic disease. At the moment, we are delivering products to 6,400,000 people with the goal to deliver products to 10,000,000 people by 2025, so a clear goal to enhance the quality of life. We're also looking at topics like gender equality, like taking care of our nature, and we are measuring that once we become better So because we profit Of this recurring business because the growth trends of liquid products, the growth drivers of self care and biosimilars are our reality. We believe in our business models. And we've been using the past 12 months to improve our competitive position, especially in the area of the pump where we need to come up to Insulet, to Tandem and to Medtronic by making our products even higher automated. And we are going to unlock the market potential and increase shareholder value. This is why we have not been restructuring. We have not cut jobs. We have not Being too scarce on spending, we have really invested. We have invested CHF 143,000,000 in R and D and capacity expansion. And we have employed 110 new people. So we believe in our strategy. We believe in our story, and that's why we are growing. We are growing and investing in growth. And this is what you see on Slide 9 here. We are investing not anymore so much in concrete and But much more in software and IT. And I've been telling you that already last year, but we are increasing the speed of putting more people into our company that are knowledgeable in the area of software, software architecture, cybersecurity and Cloud business. So turning a company from a pure medical device manufacturer into a company that delivers successful medicine, Deliver successful therapy, of course, requires new abilities, and this is what we have done over the past 12 months with an extreme speed, and we are going to continue that. So also next year, we are going to see a similar level of investments in the area of €130,000,000 we are calculating with a similar trend towards intangible assets, where we invest continuously in software and IT. This graph is showing you that we have added 100 and Additional people with 106 of them in Switzerland. And then, of course, on a sales level, It's resilience. I mean, 2.4% is not great. We have expected more. But obviously, we have not been able to put more patients on the product In Europe here, I mean, in Europe, most of the clinics have been closed to train people. This was the same situation For our other colleagues in the market like McLaren and Tandem, so it's been in a very similar situation. But it shows that the model is resilient and robust. I mean, every patient on Ixopan is still ordering InfusionETs, And people on our pens and organ checkers still require them. So we have not been declining. We have been stable. Delivery Systems Now has clearly overtaken YDC by showing a 10% top line growth. And let me now deepen a bit into delivery systems. We have shown a reliable performance on introduced products. Some of the new products that have just been launched, such as the asthma products, for instance, though had a slightly weaker H2, so because of offices being closed in many clinics, also our pharma Pharma clients have not been able to really push those products out into the market. That's why they've seen a bit less sales in H2 versus H1. The performance though on projects on new projects has been over our expectations. We have delivered Many, many products for the linix, and we have been especially able to acquire a record 36 new projects in delivery systems. This graph is showing you how we have been growing. So roughly 11% on injection systems and 7% on contract Manufacturing, so roughly 100,000,000 pens for and pen components for Zanofi, roughly a growth of 7% despite of negative FX effects, so pretty well done here. What we see here is that the second half 2021. Happy New Year has been slightly, slightly stronger than the year and the half year and the year before, 20 19, 2010, But obviously, not where we wanted it to be. What we see now already showing in the 1st month of the new business year that it's clearly accelerating. It's accelerating both on delivering of products into the market, so commercial products, but also on projects itself. So we see this growth with H1 that is clearly stronger than H1 2021 and a much stronger H2 2021, 2022 as we progress into the new business year. On Diabetes Care side, as I mentioned, IPSO pump shows a recurring business model. I mean, infusion sales have We changed every couple of days. So this has been this is the reason also why actually, The total set sold has been bigger than the year before, but we have been able to we have not been able to sell as many pumps. And We definitely needed to accelerate here also on a commercial level. So we have spent some 7 digit amount of money In the announcement and the commercialization of our Loo program here in Europe, they're really pushing the message out that Themed delivers not only a naked pump, a pure pump, but also a pump that talks to center, a pump that uses algorithms And that is bringing a close look to patients that want to use that. As you may have seen, we have also made an organizational So I'm exchanging here the responsible person for diabetes care. Everhart is going on early retirement by end of the year. And we're going to strengthen here the organization also from that perspective. Mylan flu program has been progressed. And obviously, we spent a lot of time with our friends from Indianapolis here with LIE to progress on the U. S. Market entry 2022. De risking infusion business was also A major topic on our end. I wanted to finish the Insulet topic, so get it done. So very happy year We have been able to settle this in less and resulting in a decent solution with 41.25 It's less than we have explained to the market 2 years before, but obviously, we have Yes, a bit high in order to settle on a high amount. So we are really confident. And I I think it's a good deal that we did here in the end with Insulet and solving that problem and really keep that now behind us. At the same time, we have invested Ibsopod program, if so, to Technet AG. It's a fully owned company by my father. It was a logical decision in order to take some financial burden Of Ipsimate, as you may know, Ipsapod program is a CHF 100,000,000 investment. And I just wanted to focus Our resources more on the short- and near term products and propositions and not in those long term proposition. So we have sold for €30,000,000 We've made €5,000,000 plus on our bottom line. We have an apprehension right, so we are able to sell it. If you don't want to sell it, if you leave it up to somebody else, if TechNet decided to sell it to somebody else, we have a 20% earnout here. And pretty good situation for us. We are still developing it, but the financials come from Tech Medali. So 5.3% decline, top line. As You may see here it's mainly because of less sold pumps, but also because we have sold less Penn Needles in the U. S. The Walmart relationship has been stopped. So we are seeking here new sources, new channels and working on that. We have also been reducing the shift From 7 to 5 days in order to take care of our gold mine here in the PennEast business. Let me now move over to the EBIT bridge, showing you explaining you how you can really Compare core and core EBIT. As you may have read in the annual report, we had a small restatement, a positive restatement €400,000 The German tax authority has been paying us €3,500,000 for past tax money that we have paid too much. So the actual EBIT 2019, 2020 CHF 9,700,000. Now we have to take nonrecurring elements, nonrecurring effects out if you want to compare The last year was the year 2021. And these are 2 elements. Number 1 is impairment on the FDA, the first try to bring ipilipan to the FDA. So So the EUR 3,000,000 we have to take out and also these onetime higher licensing fees that we were able to achieve, It was a onetime effect in the business year 2019 2020. So the real core EBIT, The jump off space that we have to look at is roughly CHF 8,000,000. Now what has happened in the past year, We have grown on a bottom line perspective with €9,000,000 on YDS. We did a pretty good job here. We have sold $1,000,000 more EBIT on Ipso pump infusion sets, But lost 3,000,000 because we sold less pennies and some less drips. We have done a bit better on Infotec, our metal business. And of course, now we have the full year in varying with our capacity expansion program, which leads to Slightly higher amortizations of €3,000,000 So this is the actual core EBIT, how I see it, How we delivered in M and A, when I talk to my team and I compare 2019 to 2020, then I compare the 8% to the 13%. That's The operational delivery, what we did. Now we have those onetime effects with Ixopad and Omnipod, which delivers us the real EBIT that we have been presenting to you, EUR 9,300,000. I hope this graph helps you to understand a bit how outlook. Outlook for the financial year 'twenty one, 'twenty two, We are very positive on injection systems, and we foresee again the growth of 20%. That's actually the midterm Growth path we see on a compound average, we see those 20% also over the next 3, 4 years, really, really enabling us to double the business Again, so we came from €100,000,000 to €200,000,000 within 3 years, and now we're going to bring it from €200,000,000 to 3.50 €400,000,000 in the next 3.5 years, but it is really this progression we are making here in the injection systems business, so the own manufactured products. We are also going to catch up in pump. I'm pretty convinced that in late summer, September latest, we are going To be pretty much back to normal here in Europe, I mean, it has a lot to do with vaccinations. We see those countries where vaccinations is advanced, we see a higher pickup again On new pumps, it's pretty much linked to that. We have other countries where vaccinations is still much, much lower, Like Germany, which is much behind, unfortunately, we see not yet the same uptake as we see in other countries. But during the year, We will definitely see here a certain pickup. So our guidance is on a top line level. It's a small double digit growth. And on a bottom level, it's doubling to tripling of the operating results. So coming from €9,300,000 in the area of €20,000,000 to €30,000,000 It's a bit of a big range, we know, but we have this uncertainty here and it's a pump. We have the uncertainty on potentially additional sales on project revenues on YDS that's why we feel comfortable today to give you that range. Our midterm plan to reach €100,000,000 is the same as it has been before. We're now 6 to 9 more months, obviously, because of the corona and It's the pump situation, but by 2023, 2024, we are going to reach the target. For our Annual General Meeting coming up on the 30th June, we are going to propose to the shareholders that we are able to increase the share capital at any time for the next 2 years by issuing a maximum of 1 Fully paid and adjusted shares. In order to give us freedom, freedom to act, freedom to accelerate on growth, we have a couple of Pretty large deals in our pipeline on the device side, especially on Nuropen, but also on Ipsumate, Which is need to put us in a situation to be able to order additional manufacturing And for that purpose, we need the flexibility. We also see a couple of opportunities out in a digital space. So we don't necessarily need to develop everything in house. There's a couple of ideas here, but no concrete option At the moment with a couple of ideas on how we can accelerate in our digitization plans here, especially looking at IPSOMET delivery systems. I'm very happy and proud to be able to propose Ms. Detu This is Ami Unaran as a new member of the Board of Directors to the Annual General Meeting. So as of July, Ambet Yul will join our Board. She brings a great background out of digitization. She is at the moment leading the strategy and digital team in Zurowse Group. That's one of the major pharmacy chains here in Europe. And with her background with Novartis and Fearing, she clearly With that, ladies and gentlemen, I would like to just take a few more minutes to dive a bit deeper into innovation and digital health, respectively into the 4 core pillars of our strategy and then starting this innovation and digital health. And I show you this graph again because it's still our plan how we enhance our Mana Ixapar proposition by going into loop. So we launched now Assist the Assist function that is bringing the CGM signal On to the iPhones and on to the Android phones. After summer and early winter, we are going to launch the dose function in order to be able to bring the remote bolus to patients using ipsopp up. Now what is different to what we have told you in November is that we are have decided To launch an interoperable loop solution. As you may know or still know, we have Sciences X continue not only to get the access to the SDKs of the development kits for the sensor data, But also to get access to the Type 0 algorithm from Virginia. Now this Type 0 algorithm is going into a clinical study at the Imperial College. It's called the BELIEVE study in late fall 'twenty one. And this is taking its time, and then it's taking, of Of course, the whole registration here with MDR in Europe. So that's because we do not want to wait 2 years until patients on Ixopump has access to a loop solution. We have signed a deal with a company which I would not like to name Yes, because of competition reasons. But a solution which is at the moment being integrated, A solution that has access to our pump, that will steer our pump and deliver not only low suspend functions, It doesn't really matter whether on the app is a MyLife app and MyLife logo or not. It's a loop solution. So patients can profit from this small and lightweight beautiful pump with a prefilled syringe, a very simple user interface And all those nice elements that Ixopump is delivering, plus the function to loop, and that's an interesting proposition. We are We are now also bringing on innovation side digitization into the world of YDS with the clear vision of digital health, the clear vision to enhance the therapy outcomes of patients with chronic diseases. And as shown in this graph here 2 years ago already, it's the same situation. Non adherence is a huge challenge for global health care systems Because the majority of patients with chronic diseases don't take care of themselves, and we have to motivate them to do We have to change their behavior, and this cannot be done if you don't see your doctor anymore. So digital solutions come into action. It is very different on why adherence is not good. Some patients live in a different environment. Some people have issues with ADT. Some people are just people and they forget, As yet to motivate them on doing a better therapy. So advancing smart services, what does it mean for Istomit? Of course, We are still delivering injection devices. That's our core. In our heart, we are still a plastic molding company. We are molding 10,000,000,000 plastic parts per year. We are assembling them devices with a high automation, large factories on a high productivity level. That's the core, and that will be the same. That's our platform strategy. On top of that now, we are delivering smart devices, add ons smart add ons that will read out that are reading out the devices And then the data into the cloud through different means via mobile phone or directly to the cloud, where the data is then aggregated, It's calculated and it's put up in a manner that our former clients can do something. We want to go on further. We want actually to take action on the therapy itself by bringing solutions into the hands of patients that are enhancing their therapy on a day to day basis. So a solution that is supporting the way patients are doing their therapy by monitoring the therapy, By asking about the pain levels, by asking about movement issues they have in the case of rheumatoid arthritis, By gathering data through the mobile phone behavior, these mobile phones measure a lot by implementing digital companions, digital avatars that or the behavior and take influence on the behavior of patients to do a better therapy and to coach, of course, patients along their home care with a clear goal to increase the quality of life and reducing risks for late complications, not only in diabetes. I mean, if you do a good therapy In oncology, you may live longer, so it is a big confirmation that you do it, and we want to support our patients here. By this, we avoid the burden of a certain burden on the health care system. And this is probably the main reason Why this will pay off for all of us, pharma companies in the end Are going to sell more drugs because patients will be longer on the therapy. So we see this as a service element with doing good by I think that the life of people with chronic disease, but at the same time, generating more revenues for our pharma clients. So there's a big win win here that Ixmed is playing, and we are the integrator. We are the company that has the data at hand. We are pushing them in the name of the patient obviously into the cloud and support the patient by helping them. Ladies and gentlemen, this is IqtaMed Digital Transformation. Digital transformation is not the WebEx, how we talk to each other. Digital transformation is the move from pure device delivery to delivery of successful therapy. And if we look in 5 years back, We will have seen progress on that path. Our second strategic pillar is access and expansion. Obviously, Lilly It's the core that we have delivered last year. This relationship is important for us. It's important because it's a port task in our U. S. Venture. And the relationship is crystal clear. It's great as a marketing authorization holder with the FDA, obviously, in a close collaboration With Lilly Airline team. Lilly has a global access, a global right to promote the product in the U. S. Exclusive. So Lee is going to market the product. Lee is going to train the patients. Lee is going We'll be the first one to pick up the phone when a patient calls, but it's meant it's always there with the team on the ground to support on second level and This is the same graph we have shown you on November 2020. It shows the first two product proposition with second half of twenty twenty two, The first product with the remote Bose function and then mid-twenty 3 mid to late-twenty 23, the AID enabled solution. Our two teams in Switzerland and in the U. S. Are working closely together to deliver this proposition into Lilly's portfolio of products in order to move therapy of diabetes forward in America. Now we see great opportunities in access and expansion also in delivery systems. And of course, the core of it is the platform element. We profit from the drivers and the fundamental drivers that I've been And this is why we have been able to close 36 additional projects. And if you maybe look back last year, we have been at 3rd year, the year before, Pfizer. So we accelerate by putting new drugs onto our main platforms, existing platforms and new platforms. And if you look into the 1st month already of this new business here, the momentum is still here. So we are growing and we don't see the end. More and more molecules are moving into devices. If you just look at oncology, there are over 1,000 PD PDX Clinical studies ongoing here on this planet. This is crazy. And all of them want to go home care. So we need to prepare ourselves for more and more deals to bring liquid drugs into the hands of patients at home. And this is why we are also working On the portfolio of our devices, this graph shows you nicely how we evolved from the 1 milliliter to 2.25 ml higher volume open injector. We are working on the higher with Because of the auto injector, it's a stronger and stronger spring system, we have very high viscous drugs that are like oil or honey. We need to have A strong support here to bring the drug into your body. We even think about larger volumes and we connect the device. And the latest evolution is the sustainability by delivering products without any carbon footprint, CO2 neutral devices into the hands of our pharma clients, into the hands of our patients. And I can tell you, this is a real competitive advantage we have out in the market. The 3rd strategic pillars, platforms and operational excellence, obviously, in the core, in the heart of Our platform and device strategy. It is what we've been working on for the past 10 years and it proved it works. We have been able to deliver on the promise to be fast and with much, much smaller risks. If a customer starts with us At the first red square here, they have the option to choose from a variety of products that are tested Into the clinic is no longer 4, 5 years, it's happening at 1 year. Then we go into clinic. Then after clinic, we go into the registration. Ipsimate is supporting its clients on this path towards market until commercial launch happens. So we have been able to reduce the time lines massively from the old This is the Ipsomed platform strategy, and this is the reason for Ipsomed's YBS success. We have changed the rule of the game by no longer selling projects, but by selling products. This is why we are growing on our platforms. We are investing in our platforms in all the injectors in disposable devices now into electronic and smart device and the latest adding to Ipsos. So the large volume injectors we are working on at the moment is 2 large clients, adding 2 more up in this year, bringing larger volumes of drugs up to 10 ml into the body of ELT, especially in the space of oncology, Then of course, Itzapunk. Itzapunk is a platform itself And the U. S. Version will be slightly different, but the core is identical. It's the same drive. It's the same electronics. It's just some software changes. It's a platform as well, so we leverage on it also in the case of Lilly. When you look at operations, we have used this year not only to enhance on the capacity expansion in Sverine, We've also used the year to make some changes in how we look at lean management, how we look at lean transformation. With the change in the management and production, we have now new responsibility here that takes a much, much closer look into the way we look at overall equipment effectiveness. So we are measuring areas that we are doing, and we have clear and vicious targets to get rid of the waste, get rid of the scraps to be More effective and more productive here, not only from a cost perspective, but of course, because of a cost perspective, but also because of a sustainability perspective. It's actually more effective and more resourceful. And then while we have delivered over the past 12 months, doubling the capacity For all the injectors, we are going to double again over the next 3 years by delivering more capacity here In the Switzerland, but also in fact ensuring filling this large building, we see a clear plan towards 'twenty four, 'twenty five to really fill This is a very large infrastructure and a clear way forward with planned With that, I'm then coming to the last topic, the last pillar, responsibility and engagement. Yes, done our homework here and been analyzing carbon footprint on the IPSMed Group level for 2019. It's very important, very interesting for us to see where this emission comes from. Interestingly, only 3% of the carbon emission comes from scope 12. So electricity, heating, transport, traveling. Not because of COVID. It's really a smaller part of the real carbon footprint. I mean, we have been changing a lot of the heating away from fossil fuels into reusing of the heat that we generated at the factories. We have done a lot of the homework. So the large chunk of the carbon footprint that we are delivering, that we are emitting comes from granulate and comes from new machinery, new buildings. So this is where we have to work on. We have to reduce or exchange or substitute material here in the future. It's very important now that we have a clear view on what we are doing. In 2019, there has been over 110,000 tons of CO2. So we have to take our share here and also be responsible. That's why we have been able to sign The SDTI, the Science Based Harvest Initiative, a very strong and strict set of rules on how you progress that you're really going to look at the challenge from a scientific perspective that you first reduce Substitute, substitute, substitute that you think in a circle of manner that you take material back, that you work with recycled material in packaging, Etcetera, etcetera. We are clear now. We have signed that over towards that initiative that by 2,030, we'll be carbon 0 in scope 1 and 2 at 2,040 also in scope 3. On the way, obviously, we are delivering products with a smaller footprint Such as the Ipsumate 0, we also are going to launch that Ulipan 0 at a later stage. It's clear that we have to take carbon emission out of product. So 10 to 20 years ahead of Paris 2,050 goal, that is our belief, that's our promise towards our clients. And Ixom H0, I'm very much convinced that this is going to change our industry. We are also going to announce in and near future, a partnership with companies along the whole value chain from glass manufacturers, from plunger manufacturers from fillers to deliver as an industry towards Big Pharma Biotech carbon net zero products into the hands of patients. And we're doing that by substituting and by offsetting. If you want to know more about our advancement and sustainability with our annual report. We are communicating as of today in an integrated manner Along those 4 strategic areas of actions are no longer clearly distinct between YIDF and YIDC, obviously, those are still our two segments With that, ladies and gentlemen, I would like to hand back to Thomas. He sits opposite of me here in Bruckdorf. Thomas, please. Simon, thank you very much for this very interesting explanations and Lot of information. I'm sure we have now a couple of questions. Anyway, so therefore, I kindly ask the operator to start the Q and A. Melanie, are you in the kind? Thank you, Thomas. So we have the first question from Chris Greitler. I will open the line. Thank you, operator. Good afternoon, Simon and Thomas. Thanks for the opportunity. I have actually three questions. Maybe start first on the pipeline in injection business. Actually, the 36, could you put that into context of the Total number of new projects you have and maybe also give an indication on how many of these 36 Of the total are actually kind of in the different phases of commercialization, either in generics or kind of Phase 3 or so. So to get a bit of sense, know where kind of the potential is in this development project pipeline. The first one. Sure. Thank you. Thank you, Chris. Good question. So in total, we have at the moment Roughly 100 projects in the company, so it's 36 new ones. If you look at those 36, It's a split of roughly fifty-fifty between new drugs and biosimilars. With more new drugs In the auto injectors and a bit more biosimilars in the space of Uno pens, so disposable pens. I think what is interesting to look at, if you look at those new deals that we have an increased level of large deals. So if you look back, we had an average of 1 to 2 deals, which are going to deliver 10 +1000000 peak sales. Out of the 2021, 36 projects that we have acquired, we have 7 that are delivering 10 plus 1,000,000 per year revenue. So the increase of size of deals has been interesting to look. If we talk about timing, obviously, It's for all of the projects pretty similar. They all move into customization program, then into clinic And then into registration phase, and this is a 4 to 5 year path. So those 36 ones are now moving into that They are all going to customization. Some of them have longer, some of them have shorter clinical trials, but they are all going to the spongles. So the project as expected with the product that we are going to see launching in 2021 2022 are projects that we have acquired 4 to 5 years ago. So this is how I would like to bring it into perspective. Does it help? Yes. No, very much. So essentially, kind of I guess, there were also a few dropouts, but kind of if I look at kind of relative to the total pipeline, it's basically pretty much a third That is new. And so basically, kind of it provides certain evidence to your growth Projections, I guess, no one can conclude here, yes. Yes, sorry to interrupt. I mean, it's very important to amend. This gives us also this clear visibility, and this is why we are convinced to double again in the next good 3 years because we understand our pipeline. And I mean, you are You're right. I mean, there are obviously there are dropouts, but this is in the area of 10% -ish 10%, 12%. So out of 100, 10% to 15% will not make it. But I mean, in this magnitude, it's pretty good calculated. Okay. And then basically, if I just now look at your 2022 fiscal 2022 guidance, basically you're saying that kind of Injection, your own kind of injection business should grow 20% or so, let's say, kind of something like 35,000,000, €40,000,000 incremental sales. So taking a 35%, 40% margin on it, It will be like EUR 15,000,000, EUR 20,000,000 in incremental operating profit, which is kind of Pretty much the low end of your guidance range that you provided. So does the guidance essentially not include any improvement on the Pump side. Is this kind of the right way to think of it or So it pretty much Going into this direction, I mean, we see an improvement on the pump size. I mean, obviously, by adding now more patients again, We'll definitely reduce from the 40 ish to 30 ish negative, but we still see a negative strong negative effect in this new year. If you look at the guidance, we guide 20% growth in Injection Systems. So the contract business, yes, you actually take out. If you look at the €211,000,000 That we delivered, you have to take €40,000,000 ish out of contract business. This is roughly staying flat, right? So we are at €170,000,000 If you grow with 20%, this is what you have To take into calculation, so but I mean, making your assumptions with €50,000,000 additional for bottom line is pretty good. I mean, this is basically how growth comes from. And as you know, I mean, we are delivering in a wide, yes. It is met bottom line over the coming 3 years, mainly out of delivery systems. And our goal is to reach the EUR 100,000,000 with YBS Easily and just making YDC profitable by 2023, 2024. That's our job. And then we reach the €100,000,000 that you are projecting. Yes. Okay. And then just one question. I noticed in the accounts, kind of the Capitalized R and D stayed high. And I also noticed that there was this patent investment. Could you maybe kind of now indicate for what that was? And then there was another investment. It Took my attention to this CQR investment. What was your assessment there? Kind of Why was it so small, relatively speaking? It sounds like it's a pretty interesting technology. I was just wondering what was the thought process behind that. Thank you. Yes. I can start with the first question Of the 100 I mean, the 140, obviously, is more than we have guided in a year ago. We have hoped to be in the range of 110, 120. But I mean, this is a patent opportunity. It's in the space of pumps, and I cannot go deeper. It basically pavements the way in certain critical areas of infusion business to be safe, especially in America. And it was a very important crucial investment for us To be safe and to have been to operate in many new areas of infusion business. So this is number 1. I mean, and if you talk about CapEx, 1.40 is obviously at the high end, and we still see 1.30 ish for the current business year, mainly focusing more and more on the software development. Now Secure is, I mean, we know the team for 12 years, And we never really believed in them until they have changed the product. I mean, they have changed From their own product into the product they've acquired from J and J, when they need to divest their assets. This secure patch is really a game changer for type 2 patients. I really much believe in the product. And From Nixnet perspective, it's the financial investments. I also did a private investment in them. So all in all, we are a bit higher than What we show in the books here on Ixamed's balance sheet, we believe in the story. And I just think it's interesting also for Ixamed to follow such a venture. It shows what is possible in America, how to access the market and by being a shareholder, also show small shareholders, it puts a topic On the agenda of the Board, just to look at the company, how they are doing, what they are doing, I'm very convinced that the Cure will do very good There are very special new proposition in between a pen and a pump. So it's really a 1.5 pen or a 0.75 pump. It's a Really interesting proposition that the world of diabetes has been waiting for. No, I would agree. Thanks for all your comments. Appreciate it. Thank you, Chris. Great. Thank you. So operator, next question please. Hello. Yes, dear Chelovka, you can speak. We will hear you. Okay. Sorry. Just one follow-up quickly. On the new projects you mentioned in injection systems, the 36, or maybe also in the next 1, 2, 3 years. Where do you see the most dynamic environment? I mean, I guess, It's oncology. And I guess the EUR 7,000,000 you mentioned before on Chris questions with EUR 10,000,000 plus potential per year. I guess that many of them are actually in oncology. Is that the right way of looking at it? When we look at the disease areas, actually, it's rheumatoid arthritis and psoriatic And many of those autoimmune diseases that come first. We see a magnitude of new products That make life easier for people with those autoimmune disease. And oncology is actually the second way. So first oncology launch Our first launch is we see not before 2024, 2025. So yes, you're right. In these 36, there are a couple of oncology indications involved, but we see indications all over the space. I mean, in diabetes, in growth, obviously, new growth hormones quicker, more long term growth hormones, but then especially in the area of autoimmune disease. So it's extremely spread. It's read about on a wide range. But the first wave now is actually array autoimmune diseases I mean, obviously, many Daniel, obviously, many oncology drugs are today available In IV solution in the hospital and this trend towards home care and self care is really accelerating that. And We are in discussions with all of the oncology players in the world that are working on reformulating the drug so that it Can be put into a large volume injector, Ixodose or into an auto injector in Ixodate. So it's a global trend that we see, and We are in all those discussions and negotiations or have especially also now closed deals that we have been reporting. Okay. Thanks. There are no more questions. I hand over to Thomas. Okay. So thank you. Thank you, Melanie. So thanks, ladies and gentlemen, for your interest In IpsoMed, I think it was an interesting year, 2020, 2021. Everybody has faced challenges, and it was a challenging situation. Of course, we are confident so far, and we are confident Our results, of course, we are affected. We have been affected each segment differently. Not at all. But most important, we look forward. We have our strategy, our business model has been proven. It is a privilege to supply people with chronic conditions. It's a recurring business. And Therefore, we really we uphold our midterm targets. And thanks for your interest. And if you have any Hello?