Thomas Triomphe: Thank you very much, Pete. Great question. Yes, absolutely, we are very happy about the launch of — extremely excited by the reception of the product by the whole community, be it the providers, the payers, the public or private stakeholders have all played their part to make sure that there could be an accelerated uptake of the product. . What does it mean concretely? It means that it’s the unprecedented level of demand for any pediatric launch over the past 20 years. So what does that mean? That means that all infant protection strategy works, and that’s what people want, which is not the same, but some of the product can provide. It also means that it fits exactly what we have said in terms of the ability to be at the right path to make sure that it’s accessible for everybody.
Now we are working for 2023 with the different stakeholders to make sure that the Beyfortus doses that are provided to the market are used and that the maximum — is protected. And as you pointed out, this unprecedented level of demand has created a challenge to be able to cope with the supply, which is manufactured by partner AstraZeneca for the — so right now, we’re working with CDC and with the different countries like France and Spain to make sure that all the doses get allocated and used as fast as possible. And of course, we’re working with our partner, Astrazeneca to make sure that we can extend the industrial network, identify further solutions to meet this exceptional demand, not just now but for the future. .
Paul Hudson: Yes, I mean, incredible launch, and we’ve prepared well, developed the market prepared well appetite is phenomenal. And we’ll keep bringing more doses online. That’s the plan. Okay. Next question. .
Eva Schaefer-Jansen: Next question from David Risinger from Leerink.
David Risinger: I have two questions, please, one on revenue and one on biopharma margins. So first, could you please frame late-decade revenue growth prospects from the 2025 base? Should we be anticipating low single-digit revenue growth or mid-single-digit revenue growth? And then second, excluding consumer, in light of the Company’s biopharma operating margin as it stands today and also 2025 prospects, has management and the Board reconsidered operating its biopharma business in such a wide range of therapeutic areas, products, pipeline candidates and geographies and concentrating in more profitable biopharma franchises like biopharma peers. .
Paul Hudson: Okay. I mean in terms of revenue growth, I can hear your excitement, but there’s nothing for us to share on that at all, certainly not at this stage. And then discussions around if I’ve interpreted this correctly, around just focusing further by geography and TA looks …
Jean-Baptiste de Chatillon: I think being a …
David Risinger: Yes, to step back, sorry, to clarify. The Company’s biopharma operating margin is at the bottom end of peers globally. And so it seems like that’s a business mix issue. And the Company has a very wide range of activities in various therapeutic areas, various drugs, a wide range of pipeline candidates, a wide range of geographies. I’m just wondering if greater concentration would enhance shareholder value in the biopharma business. .
Paul Hudson: David, thank you for the clarification. Then just a quick comment on this. We are focusing to be a pure-play biopharma. The first thing we did, as you’ll appreciate, is we doubled down on the R&D in the areas where we’re already deployed. So the marginal cost to launch incremental vaccines incremental beyond damnetelimab incremental biologics. Of course, Dupi has kept separate. We have a moment to be able to have a low marginal cost to launch these assets over the future. That is how we intend to play. And so we’ve made sure in R&D that we’re laddering up behind infrastructure that we already have or can develop efficiently. In the business itself, and I think Olivier touched a little bit on this. He’s got the launches and the core assets.
And then if you like, the legacy portfolio, because we have a wide portfolio, if you like, given the history of the Company between divestments and moving to digital and putting on carryover, we’re making sure that we’re actually focusing our efforts on where the growth opportunities are. So we may look wide, but in terms of if you follow the dollar against where the opportunities are, it’s a much narrower less. I understand it’s hard for you to see from where you are. I think it’s one of the incredible things that the Gen Med team have done a more than — or close to 9,000 people have left Gen Med over the past two or three years as we’ve got in pursuit of making sure that we are laser guided on the group opportunities. So that’s a continuous process.
We like that because that closes the operating margin gap over time and gets us to a good place. We’ll see how much progress we make.
Eva Schaefer-Jansen: Yes. Next question is from [indiscernible] from Exane BNP. Okay. .
Paul Hudson: We’ll ask Gary.
Eva Schaefer-Jansen: Let’s go to the next for now. Next question is from Florent Cespedes from Societe Generale .
Florent Cespedes: First question on 2025 onwards. How confident are you to resume sustainable growth beyond 2025. In other words, any risk to see another massive increase of the R&D budget? And also, could you give us a little bit some color on the operating profit margin profile. We understand that you no longer anticipate the target of 32% in 2025. But do you envisage you see some margin improvement in 2025 versus 2024 or even versus 2023? And my second question for Julie. Could you please remind us where do you stand regarding the [indiscernible] to OTC switch, the two projects [indiscernible], if you will be ready to, let’s say, file next year or in 2025? Where are the clinical trials ongoing, please? .
Paul Hudson: JB, a question about ’25 and then also onwards. Do you think will improve our operating issues? I think that was the question in 2025 and beyond. .
Jean-Baptiste de Chatillon: I think you have seen in our deck on our presentation that we have released three buckets, and it’s a second major step in the simplification and restructuring of the Company to make it leaner. We are things where we were late on developing like core process modeling through hubs. We have set up a specific position in our ExCom to develop this at speed, and that will bring a new wave of efficiency. We have also decided to significantly restructure our commercial operations in country to avoid duplication and be much more efficient. So those steps are very meaningful for — and they will, of course, participate not just on improving short-term profitability, but they will stay with us for the long term to be a more efficient Company. .
Paul Hudson: Julie, on switches. .
Julie Van Ongevalle: So thank you, Florent, for your question. On the switches, first, maybe on Cialis, I mean, the update remains consistent with what I shared previously. The necessary studies are underway, and we plan to discuss them with the FDA when they are complete and the data has been analyzed. For Tamiflu, we had several engagements with the FDA where they provided import feedback on the required studies and the overall program, and we’re working collaboratively to incorporate that feedback and determine any impact. But so far, I cannot give you any specific update, but it continues. It remains a priority. .
Paul Hudson: Yes. I think that there’s still a great path forward for perhaps Cialis, we’re a bit more — can be more transparent about because we can see it clearly after the latest conversations and the market opportunity for both is significant. So as and when we get the updates for share, but I think also they’re very important value credit moments in the future of CHC. So I think perhaps that’s why you asked it, but that’s still very real. .
Eva Schaefer-Jansen: Next question is from Simon Baker from Redburn.
Simon Baker: Two, if I may, would revisit some earlier topics. On the issue of 2024 and the reduced expectations versus what we were looking for, you said that R&D was the major element. But I wonder if you could quantify or give us some idea of the split between the three areas of developing the pipeline commercialization and the Gen Med pricing headwinds. And within that R&D piece, are we really looking purely at increased spend on — or are you convinced that you have the right research infrastructure for continued innovation within R&D? And then secondly, on consumer, going back to Florent’s question. And in the past, some people have speculated that the timing of those RX-OTC switches would impact the timing of the consumer spend.
