H2 19/20

May 27, 2020

Ladies and gentlemen, welcome to the business year 2019 20 earnings conference call of Epsilonet. 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. Jonas Kupp, Head of Investor Relations. Sir, the floor is yours. Thank you, Graciela. Good day, ladies and gentlemen, and thank you for joining us our annual figures 2019, 20 earnings conference call. Joining me today are Simon Michuit, CEO and Nicholas Samzaya, CFO. Our press release, report, and presentation discussing our financial year 2019, 20 results are also available in the Media Investors section of our website. With that, I will turn the call to Simon. Please. Thank you, Thomas. For introduction. Thank you everybody for checking in today, for our annual figures, 1920. The COVID 19 crisis shows how important it is to, have a robust business model and how important it is to have a long term strategy. Estimate is focusing on expansion innovation, operational excellence and sustainability, as you know, so we expand and we deepen our territories to build on new customers on the pharma side. On innovation, we continue continually invest in digitization, of operational excellence. We look at our costs, and we invest in lean lean management and lean processes. And you now we commit to a CO2 neutral business by endofthedecade. Let us move to the highlights of, the business year 2019 20. I just want to go into 2 elements here and then deepen during our presentation in the other element. I think most important to mention is, and this is the success of 2019, 2020 and also over the coming years, is the enormous positive effect of our open check and 10 business delivery systems. We have had market approvals and deliveries of 14 new products in last business year, 10 in the first half and 4 in the second half. And second to mention on the diabetes care side is the partnership with Dexcom, which will close a gap that we have had and which has showed effect on the amount of patients we were able to put on the pump. So luckily now we have done that and we can do the implementation work to have the product launched by endoftheyear. Let us go to the key figures and have a look on where we are. Top line, we have been growing at 12%. We've had an impressive growth on injection systems of +36 percent So we are above a compound average growth rate of 25 percent, which we have explained you 2 years ago, fully on track with our deliveries segment, you will see more details later. On pump side, we are below our expectations. We have communicated that already a couple of weeks ago. With 15,000 customers now. Today, we are definitely below, and we will show you why and also show you what we have done to accelerate that over the coming months and quarters. In the end, it ends up with the EBIT of 9,000,000, which you have announced already 2 months ago. So COVID nineteen, just give me a couple of, bullets here to explain you what it means for us, what it means for internet. And I think most importantly is that we do have a very robust business model. We deliver products to chronically aid people. So it's prescription based business. It's no self paced stuff. So it's really product that we that are paid by the by by by the authorities by payers. It makes us robust from that perspective. And if you look at our our process internally, we have a high digital level. We have few papers. So I think one of the most best elements that we have seen was that we were able to bring 1000 people into remote work within days There's also high automation and a high vertical situation, so little dependency of supply chain, which was also the reason why our production, our supply chain, and the supply of customers has been and is is is is still good and in time all the time. And over the time, we have only had 3 confirmed COVID 19 cases, so very healthy situation. We're very glad for that. So overall, robust business model not really critical to the disease here and, safe for long term. Let us now focus on the figures and I'm going to start with, the summary of the revenues. We see here this 110,000,000 gross over the past 24 months from 280 to 390,000,000, roughly over 2 years. We have had this enormous growth of really new business. Yes. We no longer dispute Omnipod. That should be clear now for everybody. So we are focusing on our own product and we see this, a very nice development. And if you now, think the line ahead, it will not take long until we are back on where we have been. With the trading business with the Omnipart, but independent on our own developed and manufactured products. If you look at the two segments, it's striking that delivery systems already now, passes the figures here, the the the the revenue figures that we have to be seen from a diabetes care with 192,000,000. It is now the strongest revenue driver in, in Ipsenet. IPS delivery systems shows a growth of 45% over 2 years. We have had this 36 percent growth in last year only in the injection system into an environment. We've been a bit weaker on contract manufacturing. This is the low margin Sanofi business with Jio and Blanton's pants, which is 6.5 percent negative, but that's mainly due to currency effects. So from a volume perspective, we are safe for a year, and then going to 120,000,000 units in the next year. So good good situation on delivery system side. Also, From a project revenue perspective, we see still a very high income from a project, revenues, and this will also day in the future, it's an important piece of the revenue out of the delivery system segment. And diabetes care has been growing at 14.4 percent on pumps. That's below our expectations. We wanted to go originally for 20,101,000 patients Now we are at 15 ish. It's definitely not what we wanted, and I will explain you why. On penny to side, you are a bit weaker in America. On DIA Experts side, which is our trading business in Germany, which makes roughly $100,000,000 revenue, is a 12.2% growth. That's definitely a trend towards, more online deliveries towards more online ordering. And it's all our good position. We are market leader in the day expert in the in the in the, mail order environment internally. Overall here, of course, the strong Swiss franc has been influencing it, the business with 9,000,000 on top line. Just one word to IsoTech, our other segment, we have had, a very tough, Q3 and Q4. We have had the measures in place, and we have been been able to put people on a short time work. It means that, the government is paying here in Switzerland, 80 percent of the salaries, while they are not, delivering costs to the company. At the end of the day, now we are back on track still despite of COVID, we have enough orders for the next 3 months. But it's a business which is definitely not core to us, which we have to analyze what we're going to do with it in the future. But for now, I think we are well set up, to, deliver again a positive figure. If you go to, bottom line, it is, of course, striking that we no longer have the Omnipod a one time payment element here from last time from last year, but we are almost on the same level from 11.4to9.3. That's mainly due to the cost now from the starting factory in Turine. That's because of Northern Up Sales in Canada and France on Ipso pump, That's because we had this impairment on the FDA file for the first trial on ipizza pump, and that's because of the negative currency effect. And on page 13, we actually provided you a a step, a a graph which shows, how this is developing. We wanted to do an organic EBIT of in the core business of 21,000,000, and we have this currency effect, of roughly 6,000,000. We have the one time element of the impairment of the FDA filing. We are now doing, a a new attempt, in May, next year, which, which made it necessary that we basically delete this this piece and make this amortization here. And then the 3,000,000, if the tech element, which is, I mean, very sad, which leads then to the 9,000,000. Interestingly, on net profit, we are 2,500,000 above EBIT and, that's mainly due to the Swiss tax reform. You may have read that, Swiss people have voted positively on the on the tax reform earlier this year. And this means that we now are no longer allowed to have tax optimized holdings in Switzerland. This is a OECD rule that is now applied in Switzerland. So we have to sell all our IP, our patents, and brands from a from a, the tax holding into the, for 242,000,000, and this then in the end has a positive tax effect or 5,000,000, which then in the end, let's do a tax income of 4,000,000 Swiss francs. So it's a one time effect, but I mean, quite interestingly, overall, we are very happy that the tech tax reform, comes into place. It brings us on a low tax level of below 12% here in Switzerland. So a very attractive place. I think the 50 people understood that investing money in companies, that, that are too innovation, that do, r and d and development. Is a positive. So, such companies can use these innovation costs and reduce the tax level We say, on the same level with our with our dividend policy, with 35% which leads to $2,500,000 or $0.20 per share. In order to reach our midterm targets, we have decided to look into our various areas, which are not core to us. We are turning every stone. We want to look at profitability at the bottom line and really focus on elements which are important to us. There are a couple of businesses which are not core, so we want to look at them. We want to analyze them and decide on how we proceed strategically. First decision is on our attempt to go to America with Ito Pump. We have explained you for over 1 year now that you are analyzing the situation. We have looked at founding, opening, and own enterprise their own Salesforce of a couple of hundred people. We have explained to you that you look at partnerships by acquiring a mail order company And now we have decided to go for a third way, which is a distribution partnership way, a white label approach where IpsosMed is shipping, IPS, and infusion sets from Europe to America and a strong partner is going to distribute the product. We have not signed a deal yet, but we are in negotiations we are quite far proceeded. We cannot name it the company, but it is a strong player in the field of diabetes, very well networked very interested in the product proposition, very well set up to, to this business and much better than us. And I think the most important element here is that we are derisking our bottom line. I mean, by opening a new office by starting as an small player, it's against Metronic against Tandem, It is definitely a difficult challenge, difficult task. For having a big company with a good and strong name, it's a total different proposition, and we can protect our bottom line. So what are the effects of COVID nineteen for the future. On delivery system side, it's really minimal. We have been able to deliver products from day one of COVID crisis, and we still do. We have a couple of delayed, clinical study trials but this will not be felt in our, revenue over the coming years. It will be washed out by other businesses coming. On diabetes care, though, it is, and it's also what others have reported. It's a difficult and challenging situation because some companies can no longer see patients. Yes. We have remote training tools in place. We have demo and training apps in place, and they work, but it is a different thing, and we cannot put as much patients on the pump as we wanted. So we lose at least 1 quarter now. And, yes, we have a we have a certain wave. To some extent, it actually helps us here because from them has delayed their launch in Europe, which now means that patients have have time to make the decision And as they know now that Ipswitch has, has a closed loop elements as well in the near future, it puts us in a different position. So I believe in the end, it has a positive effect with crisis for us because we don't lose patients to to fund them. But we lose, one quartrant. This is why when we look at the Outlook, this is why, we want to give A guidance as following for the financial year 2021, we expect a growth in turnover and an increase in profitability, It is difficult for us to say where we are landing because of the amount of patients we can put on the pump over the coming years over the coming months. It is really depending on a potential second wave, a second lockdown here, and then we can still not see patients. In Switzerland Germany for now, we can start again. But in Eastern Europe, for instance, it's not sure yet. When our sales reps can see patients and doctors again. From today's perspective, we still consider a medium term EBIT target of SEK 100,000,000 at to the achievable. We have a very clear view on delivery systems, but now already at the at the level where we are going to reach the 100,000,000,000 all in that segment, So our goal must be to make diabetes care profitable, and that's only due to the Epsa pump. Epsa pump makes over 40,000,000 negative this year. So we have to bring it positive. It will take another 3 year for sure, but it's not the question of if it's a question of when, And that's why we are now focusing and we are closing the gap, and I want to show you that a couple slides later. If we spend a couple of minutes on COVID 19, I think it's it's quite important to understand what it means for our industry, what it means for the environment. And if you look at some of the global megatrends such as cocooning, home care, digitization, or affordability, Ipsmed is very well set up. I mean, self care is clear. You don't want to see the doctor. You don't want to go to the hospital. It's clear that these things have to happen at home. And this is what we do. You are a self care company that takes care of chronically ill people at home. Second point digitization, that's why we're investing heavily. We are now already 100 people in our software and hardware team, and we are growing heavily. We have just decided to open up, an office, a software development center in Barcelona with 40 people to even strengthen this organization. So digitization health care is a trend, and we hear it from all big pharma that they want to make their devices smart. To have the data from the planner, from the open chapter into the cloud, and this is where we are working on with a large team and a great effort. And then affordability, I mean, the economists just mentioned the 90% as a size. Yeah. I think that's that's quite a good a good comment here. I mean, the it's clear people will look at the money and the pressure will also come, to the health care industry. And that's why it important that we continue to focus on cost, cost, cost, cost, that you think twice what we spent, that you look at our lean processes and that we try to work on affordable medical devices, and that's what we are doing already for for for many years. I think that's that's a, a critical element also from our pump business perspective. I mean, if an incident takes 160,000 patients to become profitable. If a time frame takes 150, I don't know how many thousand patients to get profitable. It will it will take us just 50,000 patients, our breakeven is around 50,000 patients, this is definitely all though because look at the cost, and the design product from the very beginning with a cost element in mind, and that's, definitely a strategy which is going to pay out now. Ypsumet is well positioned. Our business is sustainable. We have very, very long term contracts, both in B2B and in diabetes care, in B2B, of course, these pharma contracts, it's it's combination products, it's married. So we have these long contracts together, with, our big pharma partners 5 to 10 years. And then on the pump side, once you have a pump, you order your sets for 4 consecutive years. So This is a very sustainable calculatable business. At the solid equity base, we need some money from banks at the moment because we have built some factories and we are growing this equipment but they have a solid equity base with an equity, ratio above well above 50%. Let us move to, business segments now and, look at the two pieces in a bit more detail. As you know, we are active in B2C, diabetes care, and B2B delivery systems. Diabetes care is 10 needles block liquid monitoring systems, infusion pumps, pump infusion sets, and of course, the whole digital things with the apps and clouds, and delivery systems is panned, old injectors, patch injectors and smart services, products we sell to pharma companies in a OEM matter. Let us start today with delivery systems. In delivery systems, next to this global megatrend, of self medication of home care. There's 2 other important things to understand. And this is new drugs and biosimilars. And I mentioned that before, but it's so obvious now a large amount of new drugs in the development in the pipeline of big pharma biotech has to be injected. You have to print them parenterally into your body. So it's no longer pills. It's no longer IV. It's no longer hospital visits. It's parenteral. Subcontainers injections at home. And this is a megatrend, which we feel, which we see in the pipelines of big pharma biotech, and where we are, we are, where we are, the main profit and company in the medical device space. And then biosimilars, I think Corona and COVID actually is, even supporting that. We have a nationalism in some countries. Companies want to become less dependent from international supplies. They build up their own farm environments. Let's say Bangladesh, Indonesia, large countries, countries that have our own pharma industries that are now governed backed that are developing their own England. One of the pens that we actually launched, a couple of months ago was to the Sanet SoundTech company in, in Indonesia, which have owned biosimilars factory now, which are independent from Novo Nordisk, or El Ali or or Sanofi. And so for us, basically, it is growing the cake. We have more and more customers that demand products in the biosimilar space. Just to remind you, while we are so well set up in delivery systems, that's the platform strategy that we are, executing for almost 10 years now. I think the main piece that we have to understand again and again, this is the derisking, the de risking for our partners, de risking in terms of time and money, and also IT risks. So we go and start with a executed robust product platform. It is tested. It is I device checked, and it's even industrialized. So if a big pharma biotech is now coming to us and needs an auto injector, it's a matter of months, and we can de deliver a solution, and they can then start their process with studies, etcetera, etcetera. So this has put us in an excellent position. And as you see on the next slide, we are actually growing this family of device we are investing more money, especially on the open injector and patch injector site and in the smart environment. So the ends are mainly for hormones. So for variable dosed drugs, and the open check is on the right side are mainly for monoclonal antibodies more complex drugs that are, injected, weekly, every 2 weeks or even monthly fixed dose. So that's the main differences. Pens with cartridge, open injector with syringes. And if you see what we have achieved last business year, it's 40 new pens and open injectors. 10 in the first half year, 4 in the 2nd last year, second half year. And it's not only insulin. It's only diabetes. It's asthma. It's osteoporosis and it's migraine. Migraine, very important. Our relationship is Teva. Teva is a very important player in the field, and they have I've been very successfully launching Atobee. Atobee is a migraine product for, heavy migraines. As you may know, one out of seven people living on the planet has some kind of migraine, and this is for heavy migraine attacks. You take the drug, twice a week and you, get, get get get much fewer, of these, migraine attacks. So a big, big game changer for people with migraine and a great relationship here with Teva that you're able to start and we have interesting drugs coming apart from, from Copaxone that you have launched already. And also on the SmartPen side, I mean, we are now having the first UnoPen and IPSMA customers that are asking for smart pilots. So we are putting these tunnels, these add ons on the pen, and they are connected directly with our cloud system. So we collect the data, the data of the device. We are able to manage the device. We know exactly what the status of the device is. And if the device fails, we can act and we can give the information to the pharma companies. They are our various models. Some pharma companies only want to have management as a service features for the device, someone to have a data cockpit, and this is growing more and more. As I said in the beginning, now, especially with this COVID crisis, every big pharma biotech wants to make their devices smart. They must understand what happens a patient's home, we cannot be blind. If you want to make adherence benefits, if you want to have a better therapy, we must have data in the hand of Farmer Company and in the end, of course, of payers. That's for now, delivery systems, very pleased of how it went. Let's move us to diabetes care. Diabetes care. Just want to remind again and again, where we are at. You are mainly focusing at type 1 patients. You must be clear. We are type 1 patients are the ones that really require a more complex therapy. We have some of type tools which are quite close to a type 1 diabetic But, the main the main, the main target is type 1, diabetics, where we have roughly 15,000,000 people in the world and roughly 10% are now on a pump. It's always important to mention, and it's also important to understand in the context of our success and our situation where we are at and why we have not been more successful. So I think it is important to to understand. Our pump is small. It's lightweight. It's easy to use. It's half the size and the weight of a tandem or a or or or or a metronic pump up. It is not the intelligent enough yet. I think that's something which has kept doctors away. In Germany, for instance, we see I would say 50% of doctors that said, let's wait until you have a connection with the sensor. So this Dexcom partnership was missing. We love your pump, but It cannot talk to a center. So this is something definitely you have to change, and I will show you in a minute how we are going to do that. On a sale side, we have to look at Canada and France, and we are less the other countries have been quite okay. But Canada and France, in Canada, we have been very unlucky in British Columbia, has not, opened yet us to sell pumps. And then when we were very, very close to signing, COVID started corona crisis. Started that now they're basically sleeping, and we have to wait until, we can open, but we are quite, quite, hopeful that we can start turning British Columbia, in, in, in, in, later this year. In France, we see a total different effect in France, have been extremely successful with putting patients at an Omnipop a couple of years ago, and now we have been successful with putting patients on it or pump And then we have seen Abbott with Libra launching their, FGM system, and all this together has led to an explosion of the cost in the French diabetes care budget, which has led to a pushback. This pushback was in a manner that depressed up there, so the mail order companies has been, have been reluctant of putting more patients on the pump for a moment. This will, of course, relax again. But for, the last half business year and I, we still see it for, for, for part of this business year. It will be definitely less patients on the product. So overall, we have lost momentum because of the, missing growth in Canada because of the missing growth in France. And because the doctors in Germany in large countries like England and Germany have been a bit reluctant because of the missing center, you have still been been growing and if you compare that to the Omnipod launch we had, 8 years ago, it's still a good a good result, but it's definitely below our reputation. So we have to do our homework here. We have to get to 50,000 patients in order to be profitable and to show you in a minute how we're going to do that. So One element, of course, and I mentioned it in the beginning, it's how we are going to act in America. We have been communicating very clearly If you want to be successful, we have to launch a flexible model, a flexible system in terms of FDA approval. And the most flexible and newest model is the ace approval pathway, which is no longer looking at the system, but we're just looking at single components. So we are preparing that file. Also, together with our partner, that, we look to, launch the product for in America. So our potential partner, we have not signed the relationship the RN that is in in heavy discussion, but has some needs, some special needs, which will, have to be implemented in this project. So this project is basically a customization project until end of the year, end of year 2020. Then it's a design freeze. Then we do human psychotherapy with a filing in May, June ish 21. After that, we file it will take usually 100 30 days, but as you know, the authority can take some more time. So we would guide something like q 1, q 2, 22 for a launch in America. We are very excited on the next steps here, and Deku will communicate more when we are ready to to dedicate more. We believe that half year figure time latest we can announce how we are doing it in more detail. With that, let us move to our DexCom Partnership. It is it took more time than we expected. I think we have been discussing for over 1 year here. And, now we are clear. We have signed 2 license agreements. We have been communicating that one agreement is on the center licensing and 1 is on the on the algorithm licensing. So we are not selling the sensor. We are not selling directly the the algorithm, but we are basically connecting the 2 things. We're connecting the sensor with our My Life app. So we have launched this loop program in three steps, myelos assist, myelos stoves, and myelos fluke. I'm going to explain you now how we are doing that. First of all, timeline. Later 2020, someone in our, hopefully before Christmas, we can launch, to, existing patients, an update of the My Life app. So you don't need a new pump because we are if an app centric company, you just get an update of the Myra app in the App Store, Android, or iOS, and you have all these new features directly in your pump. So what you're actually doing is you are then able to update to to to to, start, a center, a g 6 technical center, out of the MyLab app. You get all the all the data from CGM in the MyLab cloud on the phone. You have your bolus device on the phone. And you can give Stebollos manually on the pump. Now a couple of months later in the q 1, 20 1, we're going to introduce My Life Toast feature But if those feature is nothing else, then giving the dose, the bolus remotely from the iPhone or from the smartphone so you don't need to touch your pump. Which is a huge, a huge element. I mean, taking out the pump and all the time on the table at a restaurant or out of your, of your shirt It's very cumbersome. You will be able, as a my life, my my life does, my life, it's a pump, customer. You will be able to give your both directly from your mobile phone, and then send it to my light blue. I'm going to explain in a minute what that is. So Dexcom G Six First Step integration 2020 later with some, the features I just mentioned to you, send my life goals, my life goals with the bolder suggestion that, I also explained and 22 then the loop function. Loop function based is the known features that are now provided already by electronic and and, and Tantan. And this is these are elements like the lows of spend function so that, as a child, you can you can, go low and the pump stops pumping insulin. That's a feature, especially for this small segment of small children, but it's an important feature for this for this small segment. They have also hybrid group group, hybrid closed loop functions, a feature that is basically supporting, the basel rate. If you forget your bolus, it's definitely important if you think in the end today, we have roughly 50% of the time of a adult the medic patient is in the correct range. And with these features, you get to 70 or even more percent. So it is important elements And today, you still are a bit of way of, a perfect looping system. There still has to be much, much more work on the on on the algorithms. On the sensors, on the sensors' accuracy, but the pathway is clear. And more and more patients try to use these features You know that Medtronic pumps are still beeping too much. That's why I mean, they have issues in American also in Europe to get patients on the product, but it it it will become better. It's a matter of time, couple of years to go. So it's logic that pumps must become smarter. To be highly automated, and Ipsenet has signed a deal with Dexcom to have access to type 0 algorithms, which will be implemented on the app, which will steer in a safe mode that pumped with an introduction of my life group my life group in 22. So in the end, we see our new Connected My Life Limited Care System Portfolio. It shows apart from the pump app the 2 BGM models also the Dexcom Center. This is what we are going to have here now on our portfolio, fully connected out of one hand here, a system under the My Life brand. It's a Met Group. Some elements here, just to give you an update also on an investment perspective. We have invested less on infrastructure and fixed assets $106,000,000 in 18, 19, 78,000,000 last year. Of course, Shwery, now the big driver has now been built. Denaggerated, you see, 45,000,000 R and T. We also plan to be around 45,000,000 in the new business year in R and T. We have, grown the team on software and hardware again, and we'll still, do that also in the next year. So that's positive investments. And what is important to me is actually the expenses in marketing and sales and the administration, which despite of 40 plus more million revenue, we have the same amount of money spent in this environment. So it shows we really look at the cost We think twice will be spent. We don't build up too many people in the field of administration. So I'm a a a positive a positive element here. We're also creating jobs, 110 new jobs over the past 12 months, majority of them in Switzerland, 106 new positions, we have around the same budget for the business year 2021, around 120, 110, 120 new new new positions to be filled. In the coming, in the coming 12 months. Important to us and more and more so here in Europe, especially is is the topic around, sustainability. And this the the it is it is it is clear to us that we have to become CO 2 neutral. We have to, play our role in this space. We want to do that by reducing CO2 footprint. You want to do it by substituting some of the material. We want to do a circulation, some recycling programs, and we want to work on compensation. Maybe we can switch to the next page here, we see, some of the details of them we explained already. It's around reduction. It's around sub institution and circulation. We do that together with partners. We try to bring products back, especially packaging, but it's clear. We are not going to be 0 on on on carbon on CO 2 because you still have plastics. You're a plastic molding company. And despite of moving slowly, slowly to biopolymers, they are also, a footprinted. So we need to, we need also to do compensation programs. We look at various solutions here. Trading with certificates and also building our own certificate system, as we mentioned before, is our reforestation program, in Eastern Africa. We are now already the largest reforestation program in Eastern Africa, which is a a thing which makes us proud, which is good for the culture in the company, and which will in the end also delivered own certificates, which will make us CO2 neutral and which will be a driver. We plan to announce our IPSomate 0, the carbon neutral Ipsomate this November at the PDA conference in Las Vegas if it can take place. Otherwise, we'll do it virtually. It is, a product which we can give to the farmer companies on a CO2 CO2 neutrality. We will be responsible responsible to deliver that. With that, I come to the end. And I would like to announce that, the board is proposing, by Akraman, to become a member of the board at the general assembly of the 1st July. Shilbert is, an expert in the medical device space. He's unknown. He has, spent almost his whole life in the industry after spending some time in the financial industry. He is now chairman of Straumann Group in dental business. He is a board of direct member of V Four company and I look forward to work with him. Is a great resource. And with that, we are, growing and building up our, board successfully. With that, ladies and gentlemen, I am a thank you, for your interest. I can repeat. We have, a year with a very, very strong growth in delivery systems. This growth is continuing. It will be slightly lower than busier, but we have still this growth path ahead of us. We see a challenging year we had in diabetes care, especially on the pump site. This is going to change now with more technology with a clear path forward in America on the sales side and with the integration. And with that, we look positive into the future. We are lucky that we work for products, for people with chronic disease. So we are not dependent on corona crisis and shocks we are not in a position where we have to let people go. We can grow. With that, thank you very much. And we are ready for questions. Thomas, over to you. Thanks, Simon. So operator, please open the lines for questions. Certainly. Thank you, Thomas. Okay. We have a first question coming from the UK. Oh, hi there. It's Carlos Moreno from Premier Martin. Can you hear me? Yeah. I can't help you very well. I'm brilliant. Can you tell us anything more about your the distribution partner that you're, talking to for a UPTO pump in the US. You said it's, gonna be a white label deal rather than like a, you know, combined equity or something. I I suppose my problem with that is, and almost from your own experience is that the never seem to be very stable those deals, in my my experience. They tend to maybe work for a few years and you fall out of each another, you, you know, you get to situate me, or you think they're not trying hard enough. What confidence can you give us that when you announce who you're talking to, that we're gonna go, yeah, you know, that's that's a really sensible person. They they never seem to be very evenly balanced you know, those types of deals tend to be I've been telling you a little bit more. I'd I'd love to hear a little bit more who you're talking to, who you're working with. Thank you. Thank you for the question. Obviously, we cannot, give you the name yet, but it is a one I'm a 4 or 5 players that he could think of, a player that is in the space for many years. The player that commits to diabetes and diabetes care for many, many years and an organization that is in place and, a, a, a strongly established, a Worldwide as a as a distribution relationship, you're absolutely right. I mean, it's met has been burned twice. We have had, on the other side, been a distributor for such products, we have, been, a distributing the, a freestyle Libra. It's, you know, the freestyle. I'm a BTM system many years ago. We have been distributing the Omniproda, you know, so I fully agree on that, but I think now it's in a different way around. We are the one that supplies and, you have a high confidence. It's a it's a partner that knows very well what they're doing. They, went through a very thoughtful strategy process they understand they need a pump in order to complete their portfolio. And, it is a partner that understands that thinks long term. You know, it's it's contract discussions which go over more than 2, 3 years. They want to have a relationship of 7 more years So it's a strong relationship that we are building here, but you're right. I mean, at the end of the day, the you you you you can never predict the future. What is important to us, we are shipping pumps to America. And, as soon as a patient is on a pump, he is on a pump. And if if many years down the road, this partner wants to, quit and they no longer be active, these pumpers will still be around, and then we'll find another partner. I mean, this this, thousands of patients is an asset, and it it will stay an asset. And some of the others will buy it. We'll take it, or we will do it ourselves. So I think it's not such a risky proposition here. There are actually no further questions. Let me just repeat how to do so. Thank you. Okay, Thomas. There are no further requests. Back to you. Thank you very much for your support. And, ladies and gentlemen, thank you very much for your attendance and, interest in Ipsenet. And we look forward to stay in contact and, stay healthy. Operator, please close all the lines. Thank you, Thomas. Ladies and gentlemen, this concludes our call today. Thank you for joining us and have a good rest of the day. Bye. The conference recording has been stopped.