Q1 2023 Eyenovia Inc Earnings Call

Greetings welcome to I don't know if you have first quarter 'twenty to 'twenty three earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is.

You recorded I will now turn the conference over to John Gandolfo, Chief Financial Officer. Thank you you may begin.

Thank you good afternoon, and welcome to I know be as first quarter of 2023 earnings conference call and audio webcast with me today are CEO , Michael Rowe and CLO Brent turn.

This afternoon, we issued a press release announcing financial results for the three months ended March 31 2023.

We encourage everyone to read today's press release as well as I know <unk> quarterly report on Form 10-Q for the quarter ended March 31, 2023, which will be filed with the SEC Tomorrow May 12, 2000, twenty's rates as well as our most recently filed 10-K.

The company's press release and annual report are also available on our website at Www Dot I know via Dot com.

In addition, this conference call is being webcast at the company's website and will be archived there for future reference.

Please note that on today's call we will.

I'll be discussing investigational product candidates, some of which have yet to receive FDA approval.

Please also note that certain information discussed on the call today is covered under the Safe Harbor provisions of the private Securities Litigation Reform Act, we caution listeners that during the call I know abuse management will be making forward looking statements actual results could differ materially from those stated or implied by these forward looking statements.

Due to risks and uncertainties associated with the company's business. These forward looking statements are subject to a number of risks which are described in more detail in our annual report on Form 10-K.

This conference call contains time sensitive information that is accurate only as of the date of this live broadcast May 11, 2023, I know via undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this conference call, except as may be Rick.

Quiet by applicable Securities law.

With that said I'd like to turn the call over to Michael Brown I know he is chief Executive Officer Michael.

Thank you John and welcome everyone to our first quarter 2023 financial results Conference call.

I will start with an update of our recent FDA approval of <unk> Combi.

That approval fits within our overall strategy and then provide established update for Microwatt.

Brian <unk>, our Chief operating officer will follow with an update on our manufacturing and commercial readiness progress.

We will then turn things over to John Gandolfo, Our CFO , who will review the financials as well as our partnerships with Bausch and Lomb and Arctic vision.

We will then open the call for your questions.

During the first quarter of this year and more recently, we have made significant progress on all of our goals.

Weighted by FDA approval of our first product mid comedy.

We also received very encouraging feedback from the FDA and believe that we have a clear path forward for our microwave presbyopia program.

In terms of manufacturing, we are ramping up our activities and we'll have our Reno facility online next quarter with after jet Gen. Two clinical batches being produced later this year.

Finally, our partnership with Formosa as well as others that we expect to come will pave the way for additional biomarker.

That leverage our after jet technology.

I'll begin by I'll begin the call by highlighting our most recent a cheap.

Just a few days ago, we received FDA approval up mid comedy our proprietary combination microdose formulation of Tropicamide casino effort for inducing might drive assist for diagnostic procedures, and then conditions, where short term pupil dilation is desire.

This is the first approved fixed dose combination of Tropicamide and seasonal effort in the U S. And importantly, this also the first approved product using our after jet dispensing device.

I cannot overstate the importance to our company of this approval. The after Jeff is foundational to our development pipeline as well as our partnered programs and this FDA approved that's a precedent for the future development of additional salvage therapies delivered by the after jet and other high value indications.

The Fda's approval of the Combi provides crucial external validation of our technology and its just the first of many ophthalmic indications that can utilize the opposite yet.

The approval also marks the formal transition from a development company to a commercial organization.

The management team is extremely grateful to all of our colleagues for their dedication in advancing this program through this important milestone.

Since Monday, we have received numerous inbound calls and emails from ophthalmology and optometry offices, asking when they can get a copy.

The reasons for wanting the product include the horizontal delivery lower drug volume exposure ease of use for both the doctors and technicians, one doctor said that she plans to modify your office flow. So that she could dilate patients right in the waiting room. Since you didn't have to happen tilt their heads back we of course this is Barry.

We plan to introduce Maccabi later this summer to several key ophthalmology and optometry offices as part of our targeted launch process as much as we would like to be out there tomorrow, we need some time to bring our internal manufacturing capabilities, which are more cost efficient online.

By early 2024, we expect to have our facilities in Redwood city unreasonable at full production capacity.

For now customers and all of you can find out more about the coffee and soon track our launch progress and ultimately here with doctors and patients are saying about the product.

By going to the web site <unk> Dot com.

I'll now turn to Michael on a proprietary topical on demand parking based therapeutic candidate that we are developing for the temporary improvement in near vision associated with presbyopia.

As Youll recall presbyopia is the age related hardening up the islands' paused.

Blurred vision. This is an addressable market representing over 18 million people in the United States alone between the ages of 40, and 55, well otherwise never work glasses and have the resources for a cash pay products.

Our proprietary market research suggest this could be a multibillion dollar annual market in the U S alone.

We recently received feedback from the FDA you, leaving a clear path forward for this program towards a new drug application or NDA.

Micro line, that's being designed for use with our smaller and more at bats. Gen. Two after jet device, which has been optimized for in home use the machinery to build and fill the gentoo cartridge is being installed and validated in our Redwood City facility and we anticipate running NDA registration batches in the first half of 'twenty 'twenty four.

After satisfying the contracted clinical needs of our partners.

The FDA requires 12 months of real time stability data on the final packaged product before filing the NDA. So we intend to file approximately 10 months after we run those batches.

During those 12 months, however, we will not be sitting and waiting.

We will be conducting other critical pre NDA activities, including support of human factors in clinical work to demonstrate the usability of the Gen. Two device in the target population as well as measuring patient preference for the after jet system.

This work will be used to support both the microlight NDA and upcoming commercialization of the product.

As an ophthalmic spray in the after jet device, we believe that micro lines as a number of unique features that may set us apart from presbyopia Eyedrop options. The features of our technology may make using the product easier easier, while lowering drug and preservative exposure and potentially improving tolerability the <unk>.

Practice the device itself has been pointed to as a highly desired feature and market research. We have conducted and micro line. They also fit together with a business model with many optometrists. Many doctors have a retail portion of their practice, where they sell eyeglasses or contact lenses and other products for presbyopic patients microbiome could felt.

Fit well into their paradigm as they may be able to include supporting items, such as unique device skins starter kits and so on as part of those offerings.

We recently conducted market research with 100, Optometrists, where micro line was compared with the five existing or potential presbyopia eye drops that maybe on the market in 2025.

What we found was that micro line was rated number one by the Doctor survey of in terms of maybe the optometrist and their patients overall needs.

Doctors estimated that microbiome could capture as much as one third of the presbyopia pharmaceutical market with the other five eye drops competing for the remaining two thirds of the market share.

Should micro line be approved we believe that the object yet with its design ease of use and lower truck volume distinguishes the product and ultimately patients other doctors will be choosing from a number of different eye drops or micro line, the one and only spray.

Turning to our partnering activities, we were very excited to announce in February a development collaboration agreement with Taiwan based Formosa Pharmaceuticals.

This agreement seeks to combine our after jet with proposals unique a P. M. T nanoparticle formulation platform for the potential development of new topical ophthalmic therapeutics that employ the optic device.

Foremost is proprietary innovative AT&T platform improves bio bioavailability and solubility and active pharmaceutical ingredient, allowing more homogenous formulations that may expand our universe with existing and future drugs that could benefit from deliberate using the after jet. We believe this agreement with promotional will open up.

And large market indications for potential expansion up our pipeline and they serve as a model for future partnerships. We're continuing to advance discussions with potential partners that may benefit from after jet within their own development programs, such as glaucoma and dry eye co development partnerships such as this addressing large felt mckinsey.

<unk> with unmet needs are a key part of our mid and long term growth strategy.

We are continuing to build a large body of data demonstrating the benefits adopted yet over conventional eyedrops in January we announced positive results from a research study conducted in collaboration with Dr. Headroom Hombre interim chairman of Ophthalmology at Tufts Medical Center.

This study evaluated the gene and protein expression of cytokines and Chemokines after treatment with Latanoprost glaucoma medication preserve with B, a K administered via after jet versus administered by a standardized drops in these early findings the optical technology appears superior to standardized drops and reducing the inflammatory.

Troy process. The after jet was found to achieve a therapeutic dose of latanoprost with significantly less exposure to those excess drugs, an artful preserved with ups that.

That can be achieved using conventional drops. These results were also presented at the association for research in vision and Ophthalmology annual meeting last month.

At this point I'd like to turn the call over to our Chief operating Officer, Brendan Curran for our manufacturing update Bren. Thank.

Thank you Michael with FDA approval of <unk> in hand, we've been working with our suppliers to finalize preparations for upcoming comedy commercial launch material order plans are being finalized and we're optimizing processes to align with requested by the FDA during the review period.

Redwood City facility, along with our contract manufacturers continue to support our clinical partners gosh moment of Arco Christian with clinical supply is being delivered regularly.

Digitally the Redwood City facility has made significant progress in qualifying our finish line to support the Gen. Two to sensor platforms. This progress is instilled confidence to initiate the design of a high capacity high capacity automated fill and finish line, which would support.

Our anticipated demand streams for the Gen. Two device. This state of the art system should be installed in the second half of 'twenty 'twenty four with additional qualifications occurring thereafter.

Additionally, our Reno facility continues to make significant progress in establishing peace and injector manufacturing.

Recall on our last earnings call. We noted the facility construction was ongoing these activities have now been completed in our Reno office staff has taken occupancy.

Production equipment is arriving and installation and qualification activities will follow thereafter.

Last quarter, we announced the addition of Enrico Primula as vice President of product.

And Rico Joseph for April and we are already leveraging his expertise and rapidly increasing our engineering capabilities through the identification of new hires engineering tools and increased efficiencies, which will be leveraged across our dispenser and an array of drug products I am genuinely excited about the significant amount of progress we have made over the last few more.

Our operations capabilities are increasing on a daily basis.

And the approval of the Combi has successfully demonstrated our dispenser platform is a viable technology solution to topical ophthalmic drug application.

I would like to turn the call over to our Chief Financial Officer, John <unk>.

To provide a financial update Jon.

Thanks, Brian .

First quarter of 2023, net loss was approximately $5 $7 million or 15 cents per share compared to a net loss of approximately $7.3 million or 24 cents per share for the first quarter of 2022.

Research and development expenses totaled approximately $2 $5 million for the first quarter of 2023. This compares to approximately $3 $7 million for the same period in 2022, a decrease of approximately 32%.

For the first quarter of 2023 general and administrative expenses were approximately $2 $9 million compared with approximately $3 $5 million for the first quarter of 2022, a decrease of approximately 15, 5%.

Total operating expenses for the first quarter of 2023 were approximately $5 $5 million compared to total operating expenses of $7 $2 million for the same period in 2022.

This represents a decrease of approximately 24%.

As of March 31, 2023.

<unk> cash balance was approximately $18 $5 million compared to $22 $9 million as of December 31st 2022.

In addition, the company has the ability to draw down an additional $5 million on its Avenue capital credit facility through July 31, 2023 based upon the recent approval of mid Combi.

Licensing programs are an important source of current and potential future revenues for the company and a major part of our strategy used to complete additional agreements as a source of non dilutive capital.

In addition to the cash balance I noted above we have a receivable from our licensed partners of approximately 975000 as of March 31 2023.

And they expect a reimbursed reimbursement payment of approximately $2 million marketing fishing for product development expenses in the second half of 2023.

Before we open the call to questions I will conclude with a brief update on our existing licensing programs with Bausch health for micro <unk> in the U S and Canada and Arctic vision for all three of our products in China, and South Korea, Mike.

<unk> is a proprietary atropine formulation with a reduction of Pee Dee pediatric myopia progression. It has been shown in clinical studies to slow myopia progression by 60% and more there are currently no FDA approved drug therapies for this indication.

Left untreated. This can result in retinal detachment myopic retinopathy ambition loss bifocal.

I focal glasses or contact lenses, but typically prescribed to myopic children.

Recall that as part of this agreement with passion.

Costs related to the ongoing phase III chaperone clinical trial would transfer to our partner and enrollment is progressing as planned.

Our agreement with the Arctic fishing coverage, greater China, and South Korea and covers Microplane Micra line as well as med coffee. So Arctic fishing is now licensing all three of our current programs in those territories.

<unk> for pediatric myopia in particular represents a significant opportunity in China.

The Ministry of Education estimates that nearly 53% of all Chinese children suffered from myopia in 2020.

Our agreement with the Arctic vision provides us sales royalties. In addition to development milestones, so if and when approved micro paying could be a significant source of non dilutive funding for our company over the long term.

To date, our license agreements have generated approximately $16 million in license fees and we have the potential to earn an additional $60 million and let that license and development milestones as well as reimbursable expenses over the next four years.

Upon commercialization if our products are approved I know via can earn significant sales royalties as well.

We're also continuing to assess potential pipeline expansion opportunities such as that for most agreement as we believe we can continue to leverage the <unk> technology to address unmet needs in additional large ophthalmic indications pipeline expansion with this significant consideration as we were building out new manufacturing facilities.

<unk>.

In conclusion, we continue to be pleased with our performance to date.

<unk> key highlights today, we received FDA approval of them had combi fixed dose combination of Tropicamide and phenylephrine for mydriasis and the first FDA approved product to utilize the opted yet.

We receive feedback from FDA on our phase III Micro line Presbyopic Presbyopia candidate that provides a clear and efficient path forward for the program that can potentially address a multi billion dollar annual market in the U S alone we.

We announced the co development agreement with Formosa Pharmaceuticals manufacturing facility in Redwood City, California is operational and our second facility in Reno, Nevada is on track to be operational in the third quarter.

We have continued to expand the body of research on the op did yet as shown by the results from our collaboration study with tops that highlighted the significant potential of opted yet to bypass common adverse effects associated with chronic ophthalmic therapy use.

And our licensing agreements with Arctic vision, and bashing Lam are progressing well and continue to offer the opportunity for meaningful development and regulatory milestones as well as line of sight to potential sales royalties, possibly within two years.

That concludes our prepared remarks, we would now like to open up the call up to questions operator.

Yeah, if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

Our first question is from Matt Kaplan with Ladenburg Thalmann. Please proceed.

Hi, good afternoon and.

Congratulations on the approval of the Tommy that's that's that was terrific news earlier this week.

Thanks, Matt.

Can you talk a little bit about the commercial rollout and you mentioned some of that in your in your prepared remarks, but how we should be thinking about that as as we move later this year into next year.

Yeah, I'll take that thank you math very much.

We're going to be rolling out later this summer, it's going to be a stage or targeted rollout. The reason for that is that I'm actually here in Reno in our Reno facility right now watching them installing lasers and ovens and other equipment and it is much more cost efficient for us to be producing more.

Of this on our own rather than using contract manufacturing. So we're going to have a targeted rollout to get the product out in some key offices.

Later this summer, but the real push for mid Kabi will come towards the end of this year going into next year. When we have our production facility here, a fully validated and running so I would look at it as for this year, it's more to get it into the hands of some very key doctors and get the men's building for it.

Collecting names on the Combi Dot Com for example, and then we'll be able to turn every.

Next year.

Great.

Can you talk a little bit about pricing and how that's going to work out.

Oh, Yeah. So price is 599 for five cartridges. So let's say roughly 120, a cartridge each cartridge will support about 75 patients. So on a per patient basis, that's about $1 60.

Right now if you look with doctors are spending on the three eye drops are spending about $1 20. So its a 40 cents increase but the customers have told us that when they compare that against the time savings the convenience.

And the overall better situation for their patients.

Don't see that as being any hurdle for them to adopt it.

Okay.

Great and then just shifting gears a little bit you mentioned that you received some positive feedback from the FDA on your Micron line.

Program.

Can you give us some more details on that seat back in and the path forward to the NDA registration.

Right. So our vision, one and vision two studies were conducted in the same dispenser that mid Combi was approved.

And it's a great dispenser, it's perfect for the clinic.

We want however for micro lying to be more consumer friendly and therefore, we want to transition to our gen. Two which is more slender and more portable which fits better with that product. So our question to the SBA was basically how do you get from Gen. One and two.

Given that they have very similar characteristics and how they deliver the medication.

FDA gave us that information it involves validated.

The device the same way, we did for mid Combi and the wonderful thing by having the Combi approval as we know exactly how to do that and in fact, we are doing that right now and the other thing they were looking for and when I mentioned human factors is they just wanted us to demonstrate that people could actually use the device, which we're also very confident about because they happen to use.

Yet so there's a little a formal study you have to do with that.

So none of that is going to delay us.

The really the big pole in the tent is making the registration batches and the only reason we can't make those sooner is because we have to make atropine batches for micra pine for our partners at Bausch and loan I know the Arctic vision, because they have ongoing clinical studies that we need to make sure that we can supply.

In time.

And can you just detail that the timeline to for those registration batches.

Yeah. So we plan to have those registration batches very early next year, and then 12 months real time stability as soon as we get the stability results, we drop it into the NDA and off it goes.

Okay. Okay.

Thanks for that and then.

And then a final question our questions can you give us kind of an update in terms of the progress that bausch and lomb and Arctic vision hasn't had been making on there.

<unk> specifically.

The the.

The micro payment program and.

And the chaperone phase III.

So bausch and Lomb has said publicly that they are intending to finish enrollment by the end of this year when they do it's three years to that the.

Because the endpoint.

Arctic vision is going to be starting there study with the generation two device as soon as we get that to them, which is later this year I don't believe their study is three years I think its shorter than Bausch is so both of these are probably going to finish up that roughly at the same time.

Okay.

Right.

Well congrats again on the approval.

Thank you Matt.

Our next question is from Matthew Cross sales with H C. Wainwright. Please proceed.

Great can you guys hear me okay.

Yes Matthew.

Awesome. Thanks, a lot for taking our questions guys in major congrats on the Mcafee approval obviously.

So I'm curious on the team's perspective on the seemingly negative sentiment from stock following the approval.

Do you think investors could have been missing or misinterpreting and about the prospects for <unk> or the opposite opportunity overall.

And then just separately I was curious if you could for if.

Sorry, if further financing because prospectively be necessary tied to the internal mccombie launch. Thanks again.

John do you want to start with that one as it is a bit of a head scratcher.

So from an overall financing it's a good question. So from an overall financing standpoint, we have multiple financing alternatives.

Including as I mentioned, the Avenue capital credit facility, where we could draw down $5 million immediately.

The reimbursement for clinical supplies from Bausch and Arctic vision.

As well as a partnership milestones or partnership or licensing opportunities and we're pretty much working on all of these assets.

As of now.

We also have traditional financing mechanisms in place in terms of the financing for them make coffee launch.

Will not be building up a sales force of that really is we don't expect that our operating cash burn for the med combi launch really to be much different than it was last quarter, where we had an operating cash burn of.

Roughly about $5 $5 million.

We factored that into all of our cash projections and we.

We are constantly evaluating what alternatives, we have in terms of financing going forward, but with our current cash resources as well as the funds that we know we could draw down.

Down.

We're pretty confident that we have sufficient cash through the second quarter into the third quarter of next year.

So I hope I hope that answers your question.

Yeah.

Uh huh.

Matthew I'd like to add because you know something else is.

I think there might be some people looking if you look at other companies or where the history of companies that they get the approval and they put together 100 person sales force and they start spending like crazy basically.

And I've observed that at other companies.

And I've seen that not work and our philosophy here is we're not going to overcommit ourselves, we can get to our goals being extremely efficient and as the product grows we can add resources and AD spend to go along with that to keep it almost like feeding the fire. So people may be concern.

And that with the approval that theres going to be this huge increase in commercial spend that's not going to be the case.

Yeah.

Understood very helpful guys.

Thank you Matthew.

Our next question is from Jason Mcdonald private Investor. Please proceed.

Just had a quick one kind of to your last point there Michael when you talk about a hybrid organization, having some products in house and some being outsourced of course does the team really view the outsourcing of of the technology is the bigger revenue generated an opportunity long term I mean, obviously you have to wait and see but I'm just curious.

Where your heads are at a if you think that's really the long term opportunity.

Thank you, Jason and thank you for being a shareholder and partner with us.

Let me give an example, if we talk about the opportunity in glaucoma. There are many different segments in the glaucoma market you could be a prostaglandin you could be a beta blocker you could be a rock inhibitor and so on so one way to look at this is that by partnering with different companies that have different.

Drugs in those segments, you can actually multiply the number of opportunities that we would have ourselves. If we wanted to go into the glaucoma market with a product.

We are looking at some of these areas is ways that we can magnify the impact that we can have and get the opt to get out there I mean, it's good for patients. It's good for doctors and it's good for you as a shareholder if we can get this use in more situations does that answer your question.

Yes, It makes total sense I appreciate it.

Yeah, if I could I kept saying well.

As we think about the structure.

I think that we think about it more as a partnership type of opportunity, where we could retain a really large portion of the economics as opposed to.

A straight out license type agreement, where youre, giving up pretty much all of the upside I think structurally.

An important distinction to make as well.

Absolutely and then just a follow up on to that point when you. When it comes to the expenses you know long term are you guys looking to keep this fairly small like you're saying Michael They go in not guns, a blazing be careful with how you are kind of proceeding with these products to kind of see what the uptake is and maybe why.

It works better than the other is that kind of the intent to stay agile in that sense.

That is exactly so we will look and see maybe two years from now we might have 24 salespeople as we get ready to launch micro line and when micro line takes off we can add more but we don't have to incur that expense today.

Fantastic Thanks for taking my question.

Thank you. Thank you.

As a reminder, the star one on your telephone keypad, if he would like to ask a question we will pause for a brief moment for any final questions.

Our next question is from Robert Me see with our and Associates. Please proceed.

Alright, Thank you for taking my call and congratulations.

They are in order.

My question goes back to the financing that was brought up by the <unk>.

Color.

Is it safe to say I know, we all disdain financing that its dilutive nature.

Is it safe to say you're not contemplating any.

Dilutive financing.

Secondary offering or anything in the near future, possibly not until maybe 2024.

Well I think it's safe to say that what we're doing is we're evaluating all of the opportunities that are out there.

You know, we certainly I will tell you that whenever we think about financing the company.

Our main focus is to do it in the least dilutive fashion possible.

So you know as I mentioned, we do have a cash available over the short term from Avenue capital facility as well as some other.

Receivables that will be coming in but.

We do a full in depth analysis. So I don't want to say, yes, I don't want to say no, but I will tell you that we do have a lot of optionality when it comes through our financing.

Okay, but as of right now you have made no decision to pursue any.

Secondary dilutive offerings.

Correct.

Well as of right now we're evaluating the financing opportunities that we have without partners and everything but theres been no absolute firm decision on a capital raise.

Okay.

Do you have.

Peter.

The dead horse, but.

If you do decide on that.

How far off into the future or do you think that.

B.

Oh, I I haven't really thought about that at this point in time.

I'll tell you that we evaluate our alternatives constantly.

So.

I don't want to commit that anything like that at this point in time.

Alright, just a concern a lot of investors here.

I think I see that as the only hurdle for stopping someone to invest in your companies.

It's a factor it is a factor they don't want to invest in your company and knowing that there's a secondary.

Waiting to come to.

The market within a few weeks or couple of months.

It's an overhang and if there was some assurance there was no overhang I'm sure.

Everybody, who would be a lot more bullish.

But I appreciate your answer and.

You have anything to add to that or no.

No I think that's it that where we're constantly evaluating all the viral alternatives.

Okay.

But just would be probably the last one you would want to use.

I gather from.

From whats been said so far.

Well, let me John if I can the incorrectly wrongly.

Our our strategy among other things is to develop partnerships as John had mentioned and those partnerships obviously would bring in.

Somebody associated with them.

So things like that that are non dilutive or absolutely our preference.

Looking Robert for what our preference is it would be too close a partnership or two and we're working very hard on those.

And then do the non dilutive and save diluted for the last option John would that be correct.

Yeah.

Look I think that.

I think youre trying to corner us into an answer and what I'm, telling you is that we look to at all times do things in their at least dilutive fashion possible.

Yeah I understand.

I'm glad that you've got canceled at the last you said until the first or second quarter of 'twenty four.

So.

Maybe there won't be a need to do this for a while.

Okay.

Thank you.

Thanks, all right Youre.

Youre welcome.

Our next question is from Glenn.

Yes, He went stock Doc partners. Please proceed.

Thank you very much and congrats on the development with Mcafee and all the other success Michael that you've enjoyed since he took over as CEO .

It's clear.

Financing to build out the company for all of the potential applications that you have in and that shouldn't be a surprise and it should be welcome. My question is given that you've got a study I believe through comps that showed the superiority.

I forget versus drops in glaucoma, which are widely prescribed medications make combi clearly seems that benefit both in term.

Yeah, there instead of having to be those separately and the ease of use and convenience.

Could you discuss perhaps.

The size.

The major opt them logical markets such as glaucoma.

Where there might be partnership opportunities because I think not only with people be interested but I would expect that the dollar size.

That would accrue to.

I know there could be significant to overcome some of the concerns expressed by the last caller. Thanks so much.

Thank you Lance so if we use glaucoma as an example, there are somewhere between three and $4 million.

Glaucoma patients are actually treated with topical medications.

In the United States. If you look at first line therapy. It makes up about half of that which I believe is about 1 billion and a half last time I checked any good first line branded medication and glaucoma should expect to make between 150 and 300.

$8.

Without.

Really going crazy historically, they made more than that.

For many of them were Janeiro side. So there are a number of partners out there who are looking at this opportunity and saying this is meaningful.

For us, especially if we can convey all of these benefits.

Two patients and we didn't even mention the potential benefits of the Gen. Two to the doctors, where you could track compliance or adherence because of the electronics that are embedded in the after jet Gen. Two.

So that's what we're looking at and that's why we're interested in and I think I got a good glaucoma medically than the opposite can break basically the whole package.

But people.

Or in this market.

Thanks.

Yeah.

Alright, great and expert yes. Our next question is from Alex Matthews with he's a private investor. Please proceed.

Yes.

Thanks for taking my question.

And congratulations on the great achievement.

I just wanted to find out about marketing the product.

No I talk to my ophthalmologist that hadn't heard of Santa Buckley.

Present.

So you know how do you plan to get the word out.

I'll now optometrists and ophthalmologists around the country.

Well, thank you, Alex and I'm glad your Doctor Didnt hear about it because it would mean my marketing person with.

Promotion ahead of what he should've been.

But now that we are approved the next step is we have to get materials approved through the FDA.

It takes a few weeks and then we will be reaching at various meetings through email through social media, so onto things like Linkedin or Instagram, we have a presence there.

We will be able to get the news out I think also when we start placing the product with some of these very highly visible offices. They all talk to each other all of the doctors they will all begin.

See it so the.

The fact that your Doctor doesn't know now that's good.

I would suspect that he or she will now.

Six months from now about the product.

Yeah, that's wonderful thank you.

Thank you.

We have reached the end of our question and answer session I would like to turn the conference back over to Michael for closing comments.

Thank you very much operator, and thank all of you for joining us today and that concludes today's call. We hope we haven't conveyed our excitement on our significant progress and outlook for the coming.

We have our first FDA approval in hand, and with the approval of bit Kabi. Our Microlending Presbyopia program is progressing and we look forward to updating you on the manufacturing progress as well as discussions with with potential future partners. So thank you again for joining us and we look forward to our second quarter update.

Later this year.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

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Okay.

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Yeah.

[music].

Yeah.

Yeah.

[music].

Okay.

Uh huh.

Uh huh.

[music].

Okay.

Hum.

[music].