CUVL

• Financial Discipline & Balance Sheet: Achieved 10th consecutive year of profitability with a debt-free balance sheet. Cash reserves increased by AUD 28 million to AUD 252 million, bolstered by term deposits yielding 6.23%. The company maintains a 'financial moat' to protect against market volatility and avoid shareholder dilution.
• Strategic Relocation: Announced intention to list on NASDAQ and delist from ASX, moving headquarters to the U.S. by January 1, 2027. This shift aligns with the company's foreign investor base (70%) and focuses on the largest future market (North America).
• R&D and Infrastructure: Invested approximately AUD 45 million in underlying R&D (excluding CBM), representing 20% of revenue. Key initiatives include expanding the Singaporean RD&I facility (doubling footprint) and developing a controlled-release injectable peptide platform.
• Pipeline Progress: The vitiligo program is the primary catalyst, with top-line results for CUV105 expected in Q4. The NEURACTHEL (ACTH) program is preparing for EMA filing in H2 calendar year, followed by FDA submission.
• Market Dynamics: Management views competition in EPP as temporary and manageable, noting that the market has sustained multiple players without significant revenue erosion. They emphasize that their mechanism (mimicking physiological processes) differs from immune-suppressing JAK inhibitors used by competitors.

• Revenue: No specific numerical guidance provided; however, management expressed confidence in sustaining >AUD 100 million revenue levels given the growth in Europe and stable U.S. performance.
• Margins: Guiding towards maintaining gross margins around 83% and net margins around 36% to preserve cash reserves.
• Expenses: Underlying expenditure run-rate remains consistent with prior years (~AUD 45 million excluding CBM). One-off costs related to NASDAQ uplift were noted but are not recurring.
• Tax Payments: Smoothed tax payments will result in higher cash reserve growth in the first half of FY2027 compared to previous years.

The company operates primarily through a single product segment, SCENESSE. Total revenue exceeded AUD 100 million for the second consecutive year, driven by global treatment volumes which increased by 6% year-on-year. European treatment volumes grew by 13%, boosting regional revenue by 9%. U.S. sales experienced moderation due to competitors offering free products via clinical trials, though patient retention remained strong. The gross profit margin was 83%, and the net profit margin stood at 36%.

• Competitive Pressure: Competitors entering the EPP market with free products via clinical trials caused temporary U.S. sales moderation, though patients largely returned to SCENESSE.
• Regulatory Uncertainty: Success of the vitiligo program depends on positive CUV105 results and successful FDA interactions, particularly regarding the drug-device combination of afamelanotide and narrowband UVB.
• FX Translation Risk: Strengthening of the Australian dollar created an AUD 4 million unrealized translation loss on USD-denominated term deposits, impacting reported P&L despite no economic loss.
• Operational Execution: Risks associated with scaling manufacturing in Singapore and successfully launching new indications (vitiligo, ACTH) in diverse regulatory environments.

Q: David Stanton asked for the timeline of the CUV107 trial readout and how pricing would differ between vitiligo and EPP if approved. / A: Emilie Rodenburger stated CUV107 recruitment starts Nov 2026, with readout expected in 2029. Philippe Wolgen explained that while EPP requires lifelong bimonthly injections, vitiligo involves a one-off course plus maintenance, resulting in similar annual value per patient, thus minimizing price erosion risks.

Q: Melissa Benson asked about FDA interaction plans post-CUV105 and the status of the NEURACTHEL filing strategy. / A: Emilie noted they will meet the FDA after CUV105 top-line results to address remaining questions, as the FDA still requires education on the safety of adjunct UVB therapy. Philippe confirmed NEURACTHEL will file first in Europe via mutual recognition, with the FDA application following based on European outcomes.

Q: Madeleine Williams asked about EPP growth expectations amidst competition and the long-term growth profile leading up to vitiligo commercialization. / A: Philippe emphasized that the EPP market is growing, with space for multiple players, and competitor activity actually helps raise disease awareness. He projected single-digit growth for EPP, while viewing vitiligo as a potential blockbuster akin to oncology therapies, potentially involving combination treatments.

Q: Sarah Mann asked about the ideal initial applications and development steps for the controlled-release injectable liquid peptide platform. / A: Philippe described the platform as the most exciting long-term opportunity, leveraging decade-long peptide expertise. While he declined to name specific target peptides to protect IP, he indicated the business could be larger than current operations, justifying significant investment in scaled manufacturing facilities in Singapore.

Q: Mark Pachacz asked about the duration of effect for vitiligo treatments and the competitive landscape for NEURACTHEL. / A: Emilie highlighted that sustained repigmentation after stopping treatment is a key differentiator observed in CUV105, suggesting afamelanotide offers lasting benefits unlike some competitors. Philippe noted there are ~4 competitors in the ACTH market, with revenues dependent on regulatory turnaround times in Europe.