Q3 2023 Tarsus Pharmaceuticals Inc Earnings Call

November 9, 2023

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Operator: Good afternoon, and welcome to the Tarsus Pharmaceuticals Q3 2023 Financial Results Conference Call. As a reminder, this call is being recorded. At this time, I would like to turn the call over to David Nakasone, Head of Investor Relations, to lead off the call. Please begin.

Speaker 1: Good afternoon and welcome to the Tarsis Pharmaceuticals third quarter 2023 Financial Results Conference call. As a reminder, this call has been recorded. At this time, I would like to turn the call over to David Nakasone, head of investor relations to lead off the call. Please begin.

Good afternoon.

Come to the <unk> Pharmaceuticals third quarter 2023 financial results Conference call.

As a reminder, this call is being recorded at this time I would like to turn the call over to David Nakasone.

Investor Relations to lead off the call. Please begin.

Yes.

David Nakasone: Thank you. Before we begin, I encourage everyone to go to the investor section of the Tarsus website to view the earnings release and related financial tables we will be discussing today. Joining me on the call this afternoon are Bobak Azamian, our Chief Executive Officer and Chairman, Aziz Mottiwala, our Chief Commercial Officer, and Jeff Farrow, our Chief Financial Officer and Chief Strategy Officer. I'd like to draw your attention to slide three, which contains our forward-looking statement. During this call, we will be making forward-looking statements that are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties, and our actual results may differ materially. I encourage you to consult the risk factors contained in our SEC filings for additional detail. With that, I will turn the call over to Bobby. Bobby?

Speaker 2: Thank you. Before we begin, I encourage everyone to go to the investor section of the Tarsus website to view the earnings release and related financial tables we will be discussing today.

Thank you before we begin I encourage everyone to go to the investors section of the <unk> website to view the earnings release and related financial tables, we will be discussing today.

Speaker 2: Joining me on the call this afternoon are Bobby Azamian, our Chief Executive Officer and Chairman. As Zizmonowala, our Chief Commercial Officer, and Jeff Ferro, our Chief Financial Officer, and Chief Strategy Officer.

Joining me on the call. This afternoon are Bobby as Damian <unk>, our Chief Executive Officer, and Chairman as these motor wallet, our Chief commercial officer, and Jeff <unk>, Our Chief Financial Officer, and Chief Strategy Officer.

Speaker 2: I'd like to draw your attention to slide three, which contains our four looking statement. During this call, we will be making four looking language statements that are based on our current expectations and beliefs.

I'd like to draw your attention to slide three which contains our forward looking.

Forward looking statements. During this call we will be making forward looking language statements that are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties and our actual results may differ materially I encourage you to consult the risk factors contained in our SEC filings for additional detail.

Speaker 2: These statements are subject to certain risks and uncertainties and our actual results may differ materially. I encourage you to consult the risk factors contained in our SEC filing for additional details.

Speaker 2: With that, I'll turn the call over to Bobby. Bobby?

With that I will turn the call over to Bobby Bobby.

Bobak Azamian: Thank you, Dave, and thank you all for joining us for our first ever earnings call and our first opportunity to speak with you since the highly anticipated launch of XDEMVY, the only FDA-approved treatment for Demodex blepharitis. We are off to a great start, and I am pleased to share our progress with you today. Demodex blepharitis is a pervasive and damaging eyelid disease that affects approximately 25 million Americans. Of these, more than 7 million are seeking treatment for a complementary eye condition. Double-clicking on that number, more than 1.5 million people have already been diagnosed with Demodex blepharitis and are highly motivated to find an effective treatment. As anticipated, this is the patient segment driving strong initial demand. As the XDEMVY launch progresses, we expect to expand further into that group of 7 million patients.

Speaker 3: Thank you, Dave. And thank you all for joining us for our first ever earning call. And our first opportunity to speak with you since the highly anticipated launch of XW, the only FDA approved treatment for debuting.

Thank you Dave and.

And thank you all for joining us for our first ever earnings call and our first opportunity to speak with you sort of the highly anticipated launch of <unk>.

The only FDA approved treatment for Debbie.

We are off to a great start and I am pleased to share our progress with you today.

Speaker 3: We are up to a great start. And I am pleased to share our progress with you.

Speaker 3: Dominic Buffrida to the pervasive and damaging eye disease that affects approximately 25 million

Yes, Friday to the pervasive and damaging either disease that affects approximately 25 million Americans.

Speaker 3: Of these, more than 7 million are seeking treatment for complementary I-

Of the more than $7 million are seeking treatment for complementary eye condition.

Speaker 3: Double-quaking on that number, more than 1.5 million people have already been diagnosed with devinix bufritis and are highly motivated to find a defect.

Double clicking on that number $101 5 million people who've already been diagnosed with dividends book writer.

And are highly motivated to find effective treatments.

Speaker 3: And then test the bed, this is the patient's segment driving strong initial demarcation.

As anticipated this patient segment driving strong initial demand.

Speaker 3: And as the X-7B launch progresses, we expect to expand further into that group of 7 million patients.

And as DSW launch progresses, we expect to expand further into that group of 7 million patients.

Bobak Azamian: XDEMVY was approved a month ahead of its scheduled PDUFA date, and as planned, we made sure it was available to patients within a month of approval. Today, I am proud to report that we are delivering on the expectations we set for ourselves and for the launch of XDEMVY. Specifically, in Q3, we generated $1.7 million in net sales, and we delivered XDEMVY to more than 1,700 patients eagerly awaiting a new solution for Demodex blepharitis. These results speak to the two key advantages that make XDEMVY launch unique. One, XDEMVY is the first and only FDA-approved medicine to treat Demodex blepharitis, which has enabled us to build an entirely new market focused on eyelid health. Two, XDEMVY offers a defined course of treatment that delivers strong and durable outcomes and provides value to payers, eye care providers, and patients.

Speaker 3: Exempting with approved a month ahead of its scheduled to do for date and as planned, we made sure it was available to patients within a month of approved.

<unk> was approved in months ahead of its scheduled <unk> date and as planned we made sure it was available to patients within a month of approval.

Speaker 3: Today, I'm proud to report that we are delivering on the expectations we set for ourselves and for the launch of it.

Today I am proud to report that we are delivering on the expectations, we set for ourselves and for the launch of SMB.

Speaker 3: Specifically, in the third quarter, we generated $1.7 million in that sale, and we delivered extended to more than 1,700 patients, eagerly awaiting a new solution for Dominic Blufferite.

Specifically.

In the third quarter, we generated $1 7 million and net sales.

And we delivered extending to more than 700 patients eagerly awaiting a new solution predominates blepharitis.

Speaker 3: These results speak to the two key advantages that make it extremely large unique.

These results speak to the two key advantages that may extend we launched unique.

Speaker 3: One, X-Demby is the first and only FDA approved medicine to treat Dominic's book, Rides, which has enabled us to build an entirely new market focused on Ireland.

One <unk> is the first and only FDA approved medicine to treat them in export prices, which has enabled us to build an entirely new market focus.

Sure.

Speaker 3: Two, extend the offers a defined course achievement that delivers strong and durable outcomes and provides value to payers, eye care providers and patients.

To the extent of the offers a defined course of treatment the delivered strong and durable outcomes that provides value to payers providers and patients.

Bobak Azamian: You will hear more about our progress on both fronts later in this call. For those of you who are not familiar with Demodex blepharitis, it's caused by an infestation of Demodex mites, the most common parasite found on humans. Patients with this disease need treatment. They can experience ocular redness, dryness, discomfort, missing or misdirected eyelashes, itching, and burning. Importantly, the cost, quality of life burden, and psychosocial effects are significant. Patient impact ranges from the inability to wear makeup to functional issues such as driving, difficulty driving at night. In the most advanced stages of disease, there may also be corneal involvement, which can negatively impact a patient's vision. Turning to the next slide, you'll see exactly what I mean. This is a photo gallery of patients who have been suffering for years with Demodex blepharitis and prior to their treatment with XDEMVY.

You will hear more about our progress on both fronts later in this call.

Speaker 3: You will hear more about progress from both fronts later in this.

Speaker 3: For those of you who are not familiar with Demon's book, Ryan.

For those of you who are not familiar with Devon input price.

Speaker 3: It's caused by an infestation of Dominic's life, the most common parasite trans-Iduma.

This is caused by an infestation of eminent.

Most common parasite.

Alright.

Speaker 3: Patients with a disease need treatment. They can experience ocular redness, dryness, discomfort, missing or misdirective eyelashes, itching and burning.

Patients with this disease need treatment.

They can experience ocular redness, dryness discomfort, missing or misdirected eyelashes itching and burning.

Speaker 3: Importantly, the cost, quality of life burden and psychosocial effects are significantly...

Importantly, the cost quality of Blackbird and psychosocial effects are significant.

Speaker 3: patient-efficient ranges from the inability to wear makeup to functional issues such as driving difficulty driving.

Patient impact ranges from the inability to where it makeup to functional issues such as driving difficulty driving.

Speaker 3: And in the most advanced stages of disease, there may also be corneal involvement, which can negatively impact the patient's vision.

And in the most advanced stages of disease. There may also be cardio equipment, which can negatively impact patient visit.

Speaker 3: Turning to the next slide, you'll see exactly what I mean. This is a photogallery of patients who have been suffering for years with them next book writers in prior to their treatment with the...

Turning to the next slide Youll see exactly what I read this.

This is a photo gallery of patients who have been suffering for years with them booked in.

And prior to their treatment with <unk> therapy.

Bobak Azamian: I'd like to draw your attention to one image in particular, the one in the upper right-hand corner. This is Lucas. He's a very active gentleman, retired chemical engineer. In addition to keeping up with his eight grandchildren, he is also a competitive fencer. I had the great chance to meet Lucas last week. He shared with me that his watery eyes, irritation, and blurred vision not only made it hard for him to participate in competitive fencing tournaments, but also made it hard to read the newspaper every day. As you can see in this photo, his eyelashes are crusted with collarettes, the telltale signs of Demodex blepharitis. Fast-forward five weeks, a little less than a full course of therapy with XDEMVY complete. A stark contrast. No collarettes, no redness. But what stands out most to me is the impact XDEMVY has had on his daily activities.

Speaker 3: I'd like to draw your attention to one image in particular, but one of the upper right hand corners.

I'd like to draw your attention to one image in particular, one of the upper right hand corner.

This is Lucas.

Speaker 3: He's a very active gentleman, retired chemical engineer.

He is a very active gentlemen retired chemical engineer.

Speaker 3: In addition to keeping up with his 8 grandchildren, he is also a competitive petter. I have the great chance to...

In addition to keeping up with its eight grandchildren. He is also competitive sensor.

I have the great chance to meet Lucas last week.

Speaker 3: He shared with me that his watery eyes, irritation and blurred vision, not only made it hard for him to participate in competitive fencing tournaments, but also made it hard to read the news.

He shared with me that his.

His watery eyes irritation and blurred vision.

Not only made it hard for them to participate in competitive first impairments, but also made it hard to read the newspaper every day.

As you can see in this photo is ILS or crusted with Colorado.

The science of Demodex Blepharitis.

That's four to five weeks, a little less than a full course of therapy with extend to be complete.

Start contract.

No color on that.

No residence.

But what stands out most to me is.

The impact <unk> has had in its daily activity.

Bobak Azamian: This is only one of the many similar stories we heard and similar photos we saw from eye care providers, or ECPs for short, during the recent American Academy of Optometry and American Academy of Ophthalmology conferences. When I say I'm confident about the blockbuster potential of XDEMVY, it's not just because of the $1.7 million in net product sales we reported for our first five weeks of launch, it's also because of the impact we are having on patients like Lucas. Again, we are off to a great start. The momentum we're already generating in these early days is proof of the value proposition of this category-creating product, our extensive disease educational efforts, and the seasoned leadership of our commercial organization, led by our Chief Commercial Officer, Aziz Mottiwala.

And this is only one of the many similar stories, we've heard and similar photos, we saw from eyecare providers or <unk> for short.

During the recent American Academy of Optometry, and American Academy of Ophthalmology conferences.

So when I say I'm confident about the blockbuster potential of activity not just because of the $1 7 million in net product sales, we reported for our first five weeks of launch.

Also because of the impact we're having on patients.

Again, we are off to a great start.

The momentum we're already generating in these early days is proof of the value proposition of this category creating product.

Our extensive disease educational efforts and the seasoned leadership of our commercial organization led by our Chief commercial officer as these Motorola.

Bobak Azamian: Finally, I know the XDEMVY launch is top of mind, but I wanna close by reminding everyone of the potential of our robust pipeline and the near-term data readouts that will be important for our long-term growth, all of which will be addressed by Jeff Farrow, our Chief Financial Officer and Chief Strategy Officer, later in the call. I will now turn the call over to Aziz for more detail on our launch progress.

Finally, I know the extent would be launched is top of mind.

But I want to close by reminding everyone of the potential of our robust pipeline in the near term data readouts that will be important for our long term growth all of which will be addressed by Jeff Farrow, Our chief Financial Officer, and Chief strategy Officer later in the call.

I will now turn the call over to <unk> for more detail on our launch partner.

Aziz Mottiwala: Thanks, Bobby. As the initial launch metrics demonstrate, the enthusiasm for XDEMVY is truly remarkable. I've worked in the eye care industry for more than 20 years, and I've never seen this kind of early response, which I believe speaks to our unique and differentiated approach. In July, we shared our strategic and deliberate launch plan, and we are executing successfully on this plan. We have a driven, best-in-class team comprised of eye care experts and product launch veterans that are exceeding expectations on a daily basis. So far, our near-term accomplishments are delivering a solid foundation for the long-term expectations we have set for ourselves and for XDEMVY.

Thanks, Bobby.

As the initial launch metrics demonstrate enthusiasm that is truly remarkable.

I've worked in the eye care industry for more than 20 years and I've never seen this kind of early response, which I believe speaks to our unique and differentiated approach.

In July we shared our strategic and deliberate launch plan.

And we are executing successfully on this plan we have a driven best in class team comprised of ICL experts and product launch background that are exceeding expectations on a daily basis.

So far our near term accomplishments are delivering a solid foundation for the long term expectations, we have set for ourselves and for exactly.

Aziz Mottiwala: That said, launching a first-in-class therapeutic is a marathon and not a sprint, and we are primed for a steady launch trajectory as we continue to build demand and secure high-value payer contracts. Category creation requires both substantial disease education and behavioral change. Diagnosing Demodex blepharitis is a simple task as it just requires patients to look down during every eye exam and looking for collarettes, the sure sign of disease. As simple as it sounds, not every eye doctor is doing it, at least not yet. We recognize that a shift in behavior like this will take time, which is why we initiated disease state education campaigns for every eye care provider as well as for patients well in advance of approval. We've now transitioned our efforts to Might Over Mites, a complementary branded campaign that highlights the benefits of XDEMVY.

That said launching a first in class therapeutic is a marathon and not a sprint.

And we have time for a steady launch trajectory as we continue to build demand and secure high value payer contracts.

Category creation requires both substantial disease education, and behavioral change diagnosing debit ex Black Friday is a simple path as it just requires patients to look down during every item and looking for color there sure sign of disease.

And it's as simple as it down not every eye doctors doing it at least not yet.

We recognize that a shift in behavior like this will take time, which is why we initiated disease State education campaign for every eye care provider as well as for patients well in advance of approval.

We have now transitioned our efforts that might have or months are complementary branded campaign that highlights the benefits of exactly.

Aziz Mottiwala: As a result, recent market research indicates that nearly 70% of ECPs say they recognize the importance of screening for collarettes in every eye exam, and more than 90% of ECPs indicate intent to prescribe XDEMVY. That is truly a remarkable number. What it says to me is that ECPs understand both the importance of treating this disease and the value that XDEMVY brings to their patients. This is further bolstered by the recent addition of XDEMVY to the American Academy of Ophthalmology's practice guidelines as the first and only FDA-approved treatment for Demodex blepharitis. We've also been highly successful in our differentiated approach to distribution, reimbursement, and patient access. Due to the unique high-value proposition of XDEMVY, we are already seeing initial non-contracted coverage that has resulted in better than expected gross net discounts of 73%. It's a very encouraging metric for us.

As a result recent market research indicates that nearly 70% of ECP say they recognize the importance of screening for Colorado, and every eye exam and more than 90% of ecp's indicate intent to prescribe extending.

That is truly a remarkable number.

And what it does to me is that ECP to understand both the importance of treating this disease and the value that <unk> brings to their patients.

This is further bolstered by the recent addition of extending to the American Academy of Ophthalmology practice guidelines as the <unk>.

First and only FDA approved treatment for Diamond X by Friday.

We've also been highly successful and our differentiated approach to distribution reimbursement and patient access.

It is a unique high value proposition of <unk>.

<unk> already seen initial non contracted coverage that has resulted in better than expected gross net discount 73%.

It is a very encouraging metric for us.

Aziz Mottiwala: I also want to caution that as more prescriptions start to come through their systems, payers may put more short-term, and onerous prior authorizations in place until we can work through our ongoing contract negotiations. That said, based on our ongoing discussions with all the top payers, we still expect broad commercial coverage to build throughout 2024 and Medicare coverage to come online in 2025. Before I turn the call over to Jeff, I want to acknowledge our sales force, which has done a remarkable job of generating the initial demand for XDEMVY. They have already called on 80% of our top four decile prescribers, who in the vast majority of cases have been called on multiple times. As a result of these efforts and launch to date, more than 2,000 ECPs have started patients on XDEMVY, and nearly half of those ECPs are repeat prescribers.

But I also want to caution that as more prescriptions start to come through their systems payers may put more short term and onerous prior authorizations in place until we can work through our ongoing contract negotiations.

That said based on our ongoing discussions with all the top Payors, we still expect broad commercial coverage to build throughout 2024, and Medicare coverage to come online in 2025.

Before I turn the call over to Jeff I want to acknowledge our sales force, which has done a remarkable job of generating the initial demand for sandy.

I've already called on 80% of our top four desktop prescribers during the vast majority of cases have been called on multiple times.

As a result of these efforts and launch to date more than 2000, Ecp's started patients on extending and nearly half of their dcp's are repeat prescribers.

Aziz Mottiwala: We're also seeing a positive trend in new ECPs writing every day. Now, when we look specifically at the Q3 results, we're pleased to report that approximately 1,700 bottles of XDEMVY were delivered to patients, and we recognize better than anticipated gross-to-net discounts of 73%. This encouraging Q1 after launch says to me that we have established a solid foundation for ongoing momentum that gives us great confidence in the potential of XDEMVY. I'll now turn the call over to Jeff Farrow for additional commentary on our financials and our pipeline. Jeff?

We're also seeing a positive trend in new Ecp's, writing everyday.

Now when we look specifically at the third quarter results.

We're pleased to report that approximately 7500 bottles of <unk> were delivered to patients.

And we recognized better than anticipated gross to net discounts of 73%.

This encouraging first quarter. After launch says to me that we have established a solid foundation for ongoing momentum that gives us great confidence in the potential of extending.

I'll now turn the call over to Jeff for all for additional commentary on our financials and our pipeline gap.

Jeff Farrow: Thanks, Aziz. I've been lucky enough to have been part of several companies who have brought innovative new solutions to patients in need. Based on that experience, I believe Tarsus is on the cusp of delivering blockbuster potential in an entirely new category of eye care. As Bobby noted, we had an exciting Q3 marked by $1.7 million in net product sales. We also completed an equity raise of nearly $100 million that will be used to support the ongoing launch of Xdemvy and other strategic priorities. As a reminder, we recognize revenue when we ship Xdemvy from our warehouse to the distributors, not just on bottles received by the patients. Looking forward, we are very encouraged by the meaningful numbers of bottles dispensed so far in the Q4.

Thanks disease.

<unk> been lucky enough to have been part of several companies who have brought innovative new solutions to patients in need.

And based on that experience I believe towards this is on the cusp of delivering blockbuster potential and an entirely new category of eye care.

As Bobby noted, we had an exciting third quarter marked by $1 7 million and net product sales.

We also completed an equity raise of nearly $100 million.

That will be used to support the ongoing launch of <unk> and other strategic priorities.

As a reminder, we recognize revenue when we ship X stemming from our warehouse to the distributors not just on bottles received by the patients.

Looking forward.

We are very encouraged by the meaningful numbers of bottles dispensed so far in the fourth quarter.

Jeff Farrow: As we are still in the early days of an uncharted new launch, I wanted to highlight the potential fluctuations in both demand and gross to net discounts we might see in the future due to prescribers being out of the office for the American Academy of Ophthalmology and Optometry conferences, multiple holidays in the Q4, and potential short-term and more challenging prior authorization changes that payers may implement while we work to finalize contracts. Turning now to our pipeline, I'm pleased to provide an update on the multiple near-term phase 2 data readouts we anticipate in the coming months. Beyond XDEMVY, we are continuing to advance three novel therapeutics that target the root cause of the disease. All three are based on lotilaner, the same active ingredient in XDEMVY, providing us with a pipeline and a product.

But as we are still in the early days of an uncharted new launch.

To highlight the potential fluctuations in both demand and gross to net discounts we might see in the future due to prescribers being out of the office for the American Academy of Ophthalmology and Optometry conferences.

Multiple holidays in the fourth quarter.

Potential short term and more challenging prior authorization changes that payers may implement while we work to finalize contracts.

Turning now to our pipeline.

I am pleased to provide an update on the multiple near term phase III data Readouts, we anticipate in the coming months.

Beyond <unk>, we are continuing to advance novel therapeutics that target the root cause of the disease.

All three are based on low to later.

Same active ingredient in <unk>, providing us with a pipeline in a product.

Jeff Farrow: We remain on track to report top-line data from our Meibomian Gland Disease study by year-end and top-line data from our rosacea study in Q1 2024. Due to additional time required to fully enroll our Lyme disease prevention study, we now expect to report top-line results in Q1 2024. Again, great progress here and the potential to continue building long-term value for the company and our shareholders. Finally, as you may have noted earlier today, we filed a shelf registration statement in the amount of $300 million. This is merely a good housekeeping measure for Tarsus, and we have no immediate plans for financing. I also want to take this opportunity to note that the potential $2.5 million milestone we have with LianBio is now likely to be recognized in H1 2024.

We remain on track to report topline data from our <unk> gland disease study by year end.

And topline data from a realization study in the first quarter of 2024.

Due to additional time required to fully enroll our Lyme disease Prevention study, we now expect to report top line results in the first quarter of 2024.

Again, great progress here and the potential to continue building long term value for the company and our shareholders.

Finally, as you May have noted earlier today, we filed a shelf registration statement in the amount of $300 million.

This is merely a good housekeeping measure for <unk> and we have no immediate plans for financing.

I also want to take this opportunity to note that the potential $2 $5 million milestone we have with <unk>.

Is now likely to be recognized in the first half of 2024.

Jeff Farrow: I will close by saying we remain well capitalized with approximately $247 million in cash at the end of Q3.

I will close by saying, we remain well capitalized with approximately $247 million in cash at the end of Q3.

Jeff Farrow: Based on our current plan, this provides sufficient capital to support the ongoing launch of XDEMVY and the advancement of our clinical pipeline programs. With that, I will turn the call back to Bobby.

Based on our current plan.

This provides sufficient capital to support the ongoing launch of <unk> and the advancement of our clinical pipeline programs.

And with that I will turn the call back to Bobby.

Bobak Azamian: Thank you, Jeff. As you heard today, this is an incredibly important and exciting time for our company. With the launch of XDEMVY, Tarsus is well on its way to becoming an eye care leader with the potential to deliver multiple therapies from our category-creating pipeline. Operator, please open the line for questions.

Thank you Jeff.

As you heard today. This is an incredibly important and exciting time for our company.

With the launch of <unk> is well on its way to becoming an eye care leader with the potential to deliver multiple therapies from our category creating pipeline.

Operator, please open the line for questions.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. One moment for our first question. Our first question comes from Jason Gerberry of Bank of America.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please.

Please standby, while we compile the Q&A roster.

One moment for our first question.

Our first question comes from Jason <unk> of Bank of America.

Jason Gerberry: Hey, guys. Thanks for taking my questions. A couple for me. You know, just, you know, your comments in the PR about 1,700 bottles, that pretty closely lines up with the IQVIA data. Just curious your thoughts on data reliability with IQVIA relative to Symphony, and if IQVIA is ultimately perhaps, like, the better data source for tracking here. You know, just your latest thoughts on the role, you know, between optometrists and ophthalmologists. You know, it looks like I think you guys kind of had communicated this would be like kind of a 50/50 split, but it looks like ODs are about 62% of scripts so far. Curious if based on early observations, maybe you know, how you're thinking about the optometrists playing maybe a bigger role here.

Hey, guys.

Thanks for taking my questions.

A couple for me.

Just.

Your comments on the PR about 1700 bottles that pretty closely aligns up with the IQ via data so.

I'm just curious your thoughts on on data reliability with IQ VA relative to Symphony and <unk>. It.

It is ultimately perhaps like the better data source for tracking here and then.

Just your latest thoughts on the role.

Between optometrists and ophthalmologists it looks like I think you guys kind of communicated this would be like kind of a 50 50 split but it looks like.

These are about 62% of scripts so far so curious if based on early observations, maybe how youre thinking about the optometrist thing maybe a bigger role here.

Aziz Mottiwala: Hey, Jason, it's Aziz. I'll be happy to answer those for you. When we think about the syndicated data like IQVIA or Symphony, I think a couple of things to keep in mind here. One is we have a very unique distribution network with 4 focused pharmacies. Secondly, it's very early in the launch. Those two things really yield that these audits are a little bit more directional at best in early days. I'd say in more recent weeks, where they're looking better is just the trend and trajectory. On a week-to-week basis, we see a lot of fluctuations in what they're reporting versus what we see here internally. We've been giving them a lot of the data feeds. We anticipate as the weeks go on that those data feeds will get more and more accurate.

Hey, Jason a disease I'll happy to answer those for you. So when we think about the syndicated data like our QBR Symphony I think a couple of things to keep in mind here.

One is we have a very unique distribution network with more focus pharmacies and secondly, it's very early in the launch.

Those two things really yield that these audits are a little bit more directional at best in early days.

I'd say in more recent weeks, where they're looking better is just the trend and trajectory.

On a week to week basis, we see a lot of fluctuations in what they are reporting versus what we see here internally we've.

We've been giving them a lot of the data feeds we anticipated the week. The one that does data feeds that we get more and more accurate, but I think for now I would tell you that really focusing on the trajectory and the trend versus the week to week numbers, because youre going to see some fluctuations in their projections. Our goal is to just focus on driving volumes and as the volumes increase that those will sort of align better over time.

Aziz Mottiwala: I think for now, I would tell you that really focusing on the trajectory and the trend versus the week-to-week numbers because you're gonna see some fluctuations in their projections. Our goal is to just focus on driving volumes, and as the volumes increase, that will sort of align better over time. To your second question around the split across specialties, we're seeing great feedback from both ophthalmology and optometry. We reported over 2,000 doctors to date have gotten patients on therapy, and that is coming from a mix of both, as you mentioned. I think near term, we are seeing a slight slant towards optometry, but I think over the long haul it'll start to even out. You'll see equal contribution from both ophthalmologists and optometry.

To your second question around the split across specialties, we're seeing great feedback from both ophthalmology and optometry.

We reported over 2000 doctors to date that patients on therapy and that is coming from a mix of both as you mentioned.

I think near term, we are seeing a slight slant towards optometry, but I think over the long haul it'll start to even out youll see equal contribution from both ophthalmology and optometry, maybe at most of it goes to 55 optometry, but we do anticipate that balancing out a little bit more over time.

Aziz Mottiwala: You know, maybe at most, it goes to 55 optometry, but we do anticipate that balancing out a little bit more over time.

Jason Gerberry: Okay. Thanks a lot.

Okay. Thanks.

Thanks, a lot.

Operator: Thank you. One moment for our next question. Our next question comes from Tim Lugo of William Blair.

Thank you one moment for our next question.

And our next question comes from Tim Tim Lugo of William Blair.

[Analyst] (William Blair): Hey, guys. This is Lachlan on for Tim. Thanks for taking the question. At AAO, we heard a lot of discussion, you know, not necessarily from doctors, but other companies in the field around your pricing. I was just wondering if you can discuss, you know, the initial feedback you've had, you know, you've been hearing there, particularly from payers. And then second, can you maybe just talk about how the education has been going around, you know, Demodex mites leading to blepharitis, and how that's been received with eye care professionals? And do you have any sense of kind of how many have incorporated, you know, looking for it into their existing practice?

Lachlan Hanbury-Brown: Hey, guys. This is Lachlan on for Tim. Thanks for taking the question. At AAO, we heard a lot of discussion, you know, not necessarily from doctors, but other companies in the field around your pricing. I was just wondering if you can discuss, you know, the initial feedback you've had, you know, you've been hearing there, particularly from payers. And then second, can you maybe just talk about how the education has been going around, you know, Demodex mites leading to blepharitis, and how that's been received with eye care professionals? And do you have any sense of kind of how many have incorporated, you know, looking for it into their existing practice?

Hey, guys. This is a welcome on for Tim Thanks for taking my question.

Hey.

Lot of discussion.

Certainly from doctors, but other companies in the field around your pricing. So I was just wondering if you could discuss the initial feedback you've had.

You have been hearing that particularly for payers and then second.

Can you maybe just talk about how the education has been going around debit ex modulate blepharitis and how thats being received.

<unk> do you have any sense of.

How many.

Having cooperated.

Looking for it.

In practice.

Aziz Mottiwala: Hey, thanks for the question. It's Aziz again. So on the first one around price, I think we were very thoughtful and purposeful when we thought about the pricing for XDEMVY, really reflecting the value proposition the product brings. It's one course of therapy for six weeks, gets great outcomes across multiple measures of disease, and it's the first and only approved product for the disease. All those things combined lead to a great value prop for physicians, patients, and payers. The feedback we've gotten has been very reasonable on that. I think that's reflected in some of the non-contracted coverage we're seeing here in early days, and that's reflected in the better-than-expected gross-to-net discount. Payers are covering this. We're having ongoing discussions with all the payers, and we're not seeing a lot of pushback there.

Yeah, Hey, thanks for the question of disease again.

So on the first one around price I think we were very thoughtful and purposeful when we thought about the pricing for extending.

Reflecting the value proposition of the product brings.

One course of therapy for six weeks, Jack great outcomes across multiple measures of disease and it's the first and only approved product or the disease. All of those things combined we feel great value prop for physicians patients and payers. So the feedback we've gotten has been very reasonable in that.

I think that's reflected in some of the non contracted coverage. We're seeing here in early days and that's reflected in the better than expected gross to net discount. So ayers of covering this we're having ongoing discussions with all the payers Ed we're not seeing a lot of pushback. There of course those are all negotiations and their active negotiations, but I think the payers do recognize the value prop.

Aziz Mottiwala: Of course, those are all negotiations, and they're active negotiations, but I think the payers do recognize the value proposition XDEMVY brings. They do acknowledge the unique aspects of the drug and the fact that it's the first and only. We feel really good about that and stay committed to the idea of building commercial coverage through 2024 and having Part D come in on 2025. When it comes to education, this has been a focus of ours even prior to the launch. We had multiple campaigns educating the physicians and patients on the disease. Our disease campaign was essentially having physicians screen for the disease by having patients look down. We're seeing that momentum continue to build now that the product is approved.

<unk> that'd be brings you acknowledge the unique aspect of the drug and the fact that the first and only so we feel really good about that and stay committed to the idea of building commercial coverage through 'twenty, four and having part D coming out in 'twenty five.

And then when it comes to education, which has been a focus of ours, even prior to the launch we had multiple campaigns.

<unk>, the physicians and patients on the disease or disease campaign was essentially yes, having physicians screen for the disease by having patients look down we're seeing that momentum continue to build now that the product is approved as we stated in our prepared comments, 70% of doctors, we surveyed say that it's important to look for Colorado.

Aziz Mottiwala: As we stated in our prepared comments, 70% of doctors we survey say that it's important to look for collarettes. Furthermore, we know that if they're looking for collarettes, they understand that collarettes are pathognomonic for Demodex blepharitis. They are making the link. I think in early days, it's still important to build that habit and make it a routine in every exam. That's our focus going forward, right? You can see the sales force and our Med Affairs team are continuing to educate on disease. The sales force is out there linking the disease to the benefits of the product, and that's gonna be a continued focus for us, right? We're building a new category. It will take some time, but we are seeing great momentum there.

And Furthermore, we know that if they're looking for colorectal they understand that Colorado pathognomonic for debit Xbox Alright. So they are making the link I think in early days, it's still important to build that habit and make it a routine and every exam.

And Thats, our focus going forward, you can see that salesforce and our Medicare team are continuing to educate on disease. The sales forces out there linking the disease to the benefits of the product and thats going to be a continued focus for US right. We're building a new category. It will take some time, but we are seeing great momentum there.

Bobak Azamian: I just wanna add to that, Aziz, this is Bobak Azamian. You know, I've been in the field, as has our executive team, roughly monthly and, you know, I've seen that education take place. I was once in a very urban environment and next in a more suburban environment. Just as Aziz said, you see some doctors that are immediately prescribing and doing multiples, and then you see some doctors that need a couple visits and, you know, start to understand the value proposition, start to look for patients, and then come online and start prescribing. You know, we're seeing that really week in, week out in terms of that education taking place.

Just wanted to add to that.

Bobby Vivian.

I've been in the field as has our executive team roughly monthly and.

I've seen that education take place.

I was once in a very urban environment.

In a more suburban environment and just as you said you see some doctors that are prescribing and doing multiples and then you see some doctors that need a couple of visits.

And start to understand the value proposition and start to look for patients and then come online and start prescribing. So we're seeing that really we can work out in terms of that education.

Operator: Thank you. One moment for our next question. Our next question comes from Eddie Hickman of Guggenheim Securities.

Thank you one moment for our next question.

And our next question comes from Eddie Hickman of Guggenheim Securities.

Eddie Hickman: Hi, good afternoon, and congrats on the launch so far. Thanks for taking my questions. Just two from me. Can you give any additional color on what went into that 73% gross net discount and how you think that will track over the next few quarters, given it's already better than where we thought it would start? How many of those 1,700 bottles were reimbursed, and how does the limiting sampling work for this product? And then if you can give us sort of any data benchmark on the upcoming MGD study and sort of what you're hoping to see to move forward in that program. Thanks, guys.

Hi, good afternoon, and congrats on strong on our launch so far thanks for taking my questions. Just two from me can.

Can you give any additional color on what went into that 73% gross to net discount on how you think that will track over the next few quarters, given it's already better than where we thought it would start how many of those 1700 bottles are reimbursed and how does the limiting sampling work for this project.

Product and then if you can give us sort of any data benchmark on the upcoming Mgd study and sort of what you are hoping to see to move forward in that program. Thanks guys.

Jeff Farrow: Sure. Hi, it's Jeff. I'll start with the gross to net question. We did do better than we anticipated. We ended up with an overall gross-to-net discount of about 73%. I think we were anticipating closer to 80%. The vast majority of that discounting was related to our bridging program. What the delta between our expectations and what we ultimately saw was, you know, a little more coverage than what we were expecting from the commercial side in particular. We do think over time, you know, that as we start to get payer coverage in 2024 with commercial, we'll see that gross to net improve. Ultimately in 2025, once Medicare comes on, we'll get to a steady state of about 50% gross to net discount.

Sure, Jeff I'll start with the gross to net question. So.

We did do better than we anticipated we ended up with the overall gross to net discount of about 73% I think we were anticipating closer to EEP.

The vast majority of that discounting was related to our bridging program, but what the delta between our expectations and what we ultimately saw what's a little more coverage.

And what we were expecting from the commercial side in particular, we do think over time that as we start to get payer coverage in 2024 with commercial we will see that gross to net improve and then ultimately in 2025 once Medicare comes on we'll get to a steady state of about 50% gross to net discount.

Jeff Farrow: I think the thing we're cautioning folks on, as I mentioned earlier, is in Q4, now that some of these payers are seeing more scripts come through, they're trying to manage their budgets, you know, if we are not currently contracted with them. We're anticipating somewhat of a flat, you know, gross-to-net discount from Q3 because of that. We're starting to see more onerous prior auth. That will be short-term, and we do expect to see that improve over time, starting in Q1 of 2024.

I think the thing were cautioning folks on as I mentioned earlier is in the fourth quarter now that some of these payors are seeing more scripts come through they are trying to manage their budgets.

We are not currently contracted with them. So we're anticipating somewhat of a flat gross to net discount from the third quarter because of that we're starting to see more of a nurse. Prior offs again that will be short term and we do expect to see that improve over time, starting in Q1 2024.

Bobak Azamian: The second question was about the upcoming MGD study. Jeff, do you wanna take that one as well?

And then the second question was about the upcoming Mgd study just from that ticked up sure.

Jeff Farrow: Sure. Yeah. On the MGD study, we anticipate releasing the data here in the next month and a half prior to year-end. It includes data from two doses, two dose types. One is BID, one is TID. We'll be able to release that top-line data sometime later this year.

On the <unk> study, we anticipate releasing the data here in the next month and a half prior to year end.

Includes data from two doses two.

Dose types. One is the one is tid and so we will be able to release that top line data sometime later this year.

Eddie Hickman: Thank you.

Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from Oren Livnat of H.C. Wainwright.

Thank you one moment for our next question.

And our next question comes from Orin live not of HC Wainwright.

Oren Livnat: Thanks. I have a couple questions. Just to revisit this issue of the evolving payer pushback, I guess, in the immediate term. First, can you just help us understand what kind of early experiences you're hearing about physicians having in terms of getting their patient access early on? And do they need to fill out letters of medical necessity now, or is it just going through a specialty pharmacy that's handling all that adjudication for them on the back end so that they don't experience any of that friction per se? Going forward, I guess, obviously, gross to nets are gonna potentially be volatile, but what about volumes?

Thanks, I have a couple of questions.

Just to revisit this issue of the evolving payer.

Pushback I guess in the immediate term first can you just help us understand what kind of early experiences youre hearing about physicians having.

Arms are getting better patient access early on.

Do they need to fill out letters of medical necessity now or is it just going through the specialty pharmacy thats handling all of that adjudication for them on the backend. So they don't experience any of that friction per se.

And going forward I guess, obviously gross necessary.

Potentially be volatile, but what about volumes do you suspect that if there is incremental pushback in reaction to your very strong volume out of the gates here.

Aziz Mottiwala: Do you suspect that if there's an incremental pushback in reaction to your very strong volume out of the gates here, that it could actually get harder in the near term for someone to get a patient on? And what do you have to do to make sure that that doesn't then potentially sour any doctors on the experience going forward? Thanks. Sure, Oren. Aziz. I think when you think about that access right now, as Jeff mentioned earlier, through the end of the year, right, we can expect that these folks, as they start to see volume, the payers will put some restrictions in place. We've seen this in pockets. I think that this is something that the doctors can navigate through.

Oren Livnat: Do you suspect that if there's an incremental pushback in reaction to your very strong volume out of the gates here, that it could actually get harder in the near term for someone to get a patient on? And what do you have to do to make sure that that doesn't then potentially sour any doctors on the experience going forward? Thanks.

It could actually get harder.

In the near term for summit to get a patient on <unk>.

And what do you have to do to make sure that that doesn't then potentially sour any doctors on the experience going forward. Thanks.

Aziz Mottiwala: Sure, Oren. Aziz. I think when you think about that access right now, as Jeff mentioned earlier, through the end of the year, right, we can expect that these folks, as they start to see volume, the payers will put some restrictions in place. We've seen this in pockets. I think that this is something that the doctors can navigate through.

Sure Orange disease. So I think when you think about that access right now as Jeff mentioned earlier.

Through the end of the year right. We can expect that these folks as they start to see volume that payers will put some restrictions in place we've seen this in pockets.

That this is something that the doctors can navigate through the doctors typically initiate the PAA, but through our service pharmacy network and you get some assistance in that process, but clearly the doctor have initiate that they have the patient records and varies by plan what the expectations are so in some cases are very simple.

Aziz Mottiwala: The doctors typically initiate the PA, but through our focused pharmacy network, they do get some assistance in that process. But clearly the doctor has to initiate that. They have the patient records. It varies by plan, what the expectations are. In some cases, a very simple PA. In other cases, we are seeing a little bit more onerous PAs. Mind you that all this coverage is not contracted right now. As contracts come online, we would push for a more straightforward PA to label, that aligned with a first and only type of product. We see that evolving over time. In terms of impact to volumes, I think what Jeff is saying is we're continuing to see steady uptake from the physicians. We're seeing that the doctors are getting access to the drug.

In other cases, we are seeing a little bit more owner SDA mind, you that all of this coverage is not contracted right now so as contracts come online we would push for a more straightforward label that aligned with our first and only type of products. So we see that evolving over time in terms of impact to volumes I think what Jeff is saying is we're continuing to see.

The steady uptake from the physicians, we're seeing that the doctors are getting access to the drug they are having great success with their drugs and we continue to see that build I think that you have to keep in mind that thats more of a headwind we don't see it as something that would keep the prescription flat, but it does sort of give us a little bit of a headwind as we are building that acceptance with physicians I think the doctors are sensitive to that.

Aziz Mottiwala: They're having great success with the drug, so we continue to see that build. I think that you have to just keep in mind that that's more of a headwind, and we don't see it as something that would keep the prescription flat, but it does sort of give us a little bit of a headwind as we are building that acceptance with physicians. I think the doctors are sensitive to that. They know and understand that new products take time to build coverage, and I think it speaks to the value proposition of XDEMVY that people are committed. They're seeing these patients, they don't have another option, so the doctors are putting the effort in and of course, our programs are there to help that process along.

They know and understand that new products take time to build coverage and I think it speaks to the value proposition of extent that people are committed theyre seeing these patients. They don't have another option. So the doctors are putting the effort in and of course, our programs are there to help that process. Along so we think we'll continue to build volume steadily, but certainly changes in policy or short term PAA adjustment.

Aziz Mottiwala: We think we'll continue to build volume steadily, but certainly, changes in policy or short-term PA adjustments can be a slight headwind as we're ending the year here.

It can be a slight headwind as we're ending the year here.

Oren Livnat: Just so I'm clear, where not covered or where pushback is, you know, insurmountable, is that bridging program still getting drug into patients' hands in any and all cases, essentially, such that, you know, we'll continue to see the demand reflected in the prescriptions going forward? It's just a question of the economics that you realize in gross-to-net.

And just unclear.

We're not covered or were pushed back is insurmountable as that bridging program still getting drug into patients' hands in any and all cases essentially is such that.

We will continue to see the demand reflected in the prescriptions going forward. It's just a question of.

The economics that you realized in gross to net debt.

Aziz Mottiwala: That's exactly right, Oren Livnat.

That's exactly right Ron.

Oren Livnat: Perfect. Thanks. I'll get back in the queue. I appreciate it.

Perfect. Thanks, I'll get back in the queue I appreciate it.

Operator: Thank you. One moment for our next question. Our next question comes from Balaji Prasad of Barclays.

Thank you one moment for our next question.

And our next question comes from Chris Thompson of Barclays.

[Analyst] (Barclays): Hi, everyone. This is Michaela on for Balaji. Thanks for taking our questions. Just thinking about your pipeline, at what point might you look to expand this further, and are there any areas in particular that would be of interest? Thanks so much.

Michaela Diverio: Hi, everyone. This is Michaela on for Balaji. Thanks for taking our questions. Just thinking about your pipeline, at what point might you look to expand this further, and are there any areas in particular that would be of interest? Thanks so much.

Hi, everyone. This is Nick Hiller on for <unk>. Thanks for taking our questions just thinking about your pipeline of what point might you look to expand this further and are there any areas in particular that would be of interest. Thanks. So much.

Bobak Azamian: Thank you, Michaela. We do look actively at the entire eye care landscape. As you can imagine, with a great early launch trajectory with a commercial platform, eventually we wanna add more products to our pipeline and to our commercial force. Right now we can only be so modest, but you know, with continued success, we would look to add further products. Stay tuned. Nothing to report today, but stay tuned.

Thank you mackellar.

Do look actively as the entire eyecare landscape as you can imagine with the great early launch trajectory with the commercial platform. Eventually we want to add more products to our pipeline and through our commercial force.

Right now we can only be so modest.

But.

With continued success, we would look to.

To add further products.

And so stay tuned nothing to report today.

Operator: Thank you. One moment for our next question. We have time for one more question. One moment. Our next question comes from Patrick Dolezal of LifeSci Capital.

Thank you one moment for our next question.

Okay.

And we have time for one more question one moment.

Our next question comes from Patrick <unk> of lifestyle capital.

[Analyst] (LifeSci Capital): Hi, this is Corey on for Patrick. Thanks for taking our questions. You know, in the call you mentioned that more than 2,000 ECPs have prescribed XDEMVY so far. It sounds like prescriber adoption has been quite broad as opposed to a really narrow focused group of prescribers leading most of the volume. Would love to hear more about your strategy and how you've been prioritizing ECP targeting. I guess also on that note, how are you thinking about marketing in both the near and long term? It seems like marketing has primarily been directed towards prescribers. Can you speak to the relevance of consumer-directed marketing in Demodex blepharitis and what might your strategy be in that regard?

Hi, This is Corey on for Patrick Thanks for taking our questions.

In the call you mentioned more than 2000 ecp's have prescribed extended so far.

So.

It sounds like prescriber adoption has been quite broad as opposed to a really narrow focused.

A group of prescribers, leading most of the volume we'd love to hear more about your strategy and how you've been prioritizing.

ECP targeting and I guess also on that note.

How are you thinking about marketing in both the near and long term. It seems like marketing has primarily been directed towards prescribers can you speak to the relevance of consumer directed marketing and Diamondback blepharitis.

What might your strategy in that regard.

Aziz Mottiwala: Corey, it's Aziz. Yeah, no, I think we've been really pleased with the physician acceptance and receptivity. We just came back from both the Academy of Ophthalmology and Academy of Optometry. Got a lot of firsthand feedback. We're real delighted with the uptake we're seeing among the physician community. We're seeing broad uptake to your point. That's been our strategy, right? We didn't wanna niche the product. We wanted to go to a broad audience of prescribers. That's why we built the sales force the way we did. We're targeting over 15,000 doctors in our efforts, so we're making great progress in penetrating that marketplace. How we prioritize that is, as I think we've shared before, we take a very data-driven and informed approach.

Hey, Cory disease, and yes, I think we've been really pleased with the physician acceptance and receptivity. We just came back from both the academy of Ophthalmology and Academy about promontory that a lot of firsthand feedback. So we're real delighted with the uptake we're seeing among the physician community was in brought updates to your point.

That's been our strategy right, we don't want to niche the product we wanted to go to a broad audience of prescribers. That's why we built the sales force the way we did.

We're targeting over 15000 doctors and our efforts so we're making great progress in penetrating that marketplace, how we prioritize that and I think we've shared before we take a very data driven and informed approach we think about where patient volumes are we look at claims data and we look at who has historically been early adopters of other products and that really helps us focus our efforts.

Aziz Mottiwala: We think about where patient volumes are, we look at claims data, and we look at who has historically been early adopters of other products, and that really helps focus our efforts. We also mentioned earlier that we've already talked to 80% of our top decile doctors, so we've been real thoughtful about where we're deploying the sales force time. I think that the physician receptivity and the number of doctors that have written and repeat written, which is really important, I think reflects that very thoughtful approach. I think in terms of the marketing efforts that you asked about, we've been real intentional here. I think early days, we really have focused on the physician education, building that understanding, that scientific platform, if you will. That'll continue to be the focus along with building coverage.

We also mentioned earlier that we've already talked to 80% of our top decile doctors. So we've been really thoughtful about where we are deploying with salesforce time, and I think that the physician receptivity and the number of doctors that have written and repeat written which is really important I think reflects that very thoughtful approach I.

I think in terms of the marketing efforts that you asked about we've been real intentional here I think early days, we really are focused on the physician education building that understanding that scientific platform. If you will.

And that will continue to be the focus along with building coverage and the way you can think about it is once we have great position penetration, which were already on a good start on and is more payer coverage comes in so that's probably going to signal a great time to think about activating the consumer more purposefully we do have some consumer education ongoing right now we've done some smaller campaigns, but in terms of broad based.

Aziz Mottiwala: The way you can think about it is, once we have great physician penetration, which we're already on a good start on, and as more payer coverage comes in, that's probably gonna signal a great time to think about activating the consumer more purposefully. We do have some consumer education ongoing right now. We've done some smaller campaigns, but in terms of broad-based DTC, which I think you're referring to, I think that comes online, when we've got even more adoption among the physician community and even enhanced coverage with our contracts coming online 2024 and early 2025.

DTC, which I think youre, referring to I think that comes online when we've got even more adoption among the physician community and even enhance coverage with our contracts coming online in 'twenty four and early 2005.

[Analyst] (LifeSci Capital): Excellent. Thanks for taking our questions and, congrats on the progress.

Excellent.

Thanks for taking our questions and congrats on the progress.

Operator: Thank you. One moment for our last question. This question is from François Brisebois of Oppenheimer.

Okay.

One moment for last question.

Next question is from Frank risks.

<unk> of Oppenheimer.

François Brisebois: Sorry. Thanks for taking the questions and congrats on the start here. I was wondering, we talked a little bit in previous questions about optometrists versus ophthalmologists, and I was wondering, can you just help us understand how the pitches are going and the reception is going between the two different types of docs? You know, if there's any sticky points or is it a very different pitch between both of them? You know, so any color on that would be helpful. Then you talked about entering the guidelines here. I was wondering how important that is for physicians to then prescribe. Thank you.

Alright, thanks for taking the questions and congrats on the start here.

Just I was just wondering we talked to you a little bit in previous questions without.

Tom Im curious versus ophthalmologists and I was wondering can.

Can you just help us understand how the pitch is going and the reception is going between the two different types of docs and if theres any sticking points are.

Very different pitch between both of them so any.

Color on that would be helpful. And then you talked about entering the guidelines here I was wondering how important that is for physicians to prescribe. Thank you.

Aziz Mottiwala: Yeah, Frank, thanks for the question. I think the pitch is very similar overall, right? Our sales messaging is very consistent. You can think about it in really three tranches. We focus on the disease state, building awareness, continuing to promote diagnosis by looking at lids. Secondly, we focus on the value proposition that XDEMVY brings, the unique effects that XDEMVY brings across collarettes, mites, and redness. And third, we focus on our pull-through with our pharmacy network, getting the prescription in and the process to get the prescription, which is of course really important in early days when we don't have contracts in place. That's pretty consistent. I think sometimes you do have nuances, obviously optometry versus, say, a very busy surgical practice. You do take a slightly different approach. But I think again, we're seeing great receptivity on both.

Yeah, great. Thanks for the question.

The picture is very similar overall radar ourselves messaging is very consistent you can think about it in really three tranches, we focus on the disease state building awareness continuing to promote diagnosis by looking at Lids segment, we focus on the value proposition that <unk> brings a unique effects that it can be brings across Colorado mites and readiness.

And third we focus on our pull through with our pharmacy network getting the prescription and the process to get the prescription which is of course really important in early days. When we don't have contracts in place. So that's pretty consistent I think sometimes you do have nuances, obviously optometry versus say a very busy surgical practice you do take a slightly different approach, but I think again, we're seeing.

Great receptivity on both.

Aziz Mottiwala: Again, primary optometry sees a lot of medical visits, so they're incorporating this in. We are hearing from ophthalmologists that they're certainly going to look for a clean, healthy lid before they do a cataract or LASIK surgery. Those things are starting to take hold. When you think about things like the guidelines, I think that validates the approach, which gives physicians a lot of confidence. I think more so being in those guidelines also helps our discussions with the payers, right? It really positions the product as a standard of care, if you will, in eye care, and I think that helps us in those payer negotiations that are ongoing as well. I think in terms of the day-to-day feedback, I've been out in the field, I'm hearing that personally.

<unk> primary optometry, Steve a lot of medical visits they are incorporating this and we are hearing from ophthalmologists that there are certainly going to look for a clean and healthy lid before they do a cataract or lasik surgery. So those things are starting to take hold.

And when you think about things like the guidelines I think that validates the approach, which gives the physicians a lot of confidence and I think more so being in those guidelines also helps our discussions with the payers right it really positions the product yet.

Standard of care, if you will in Ikea and I think that helps us and those are negotiations that are ongoing as well I think in terms of the the day to day feedback I've been out in the field I'm hearing that personally I know Bobby you mentioned you've been out in the field, maybe you have a couple of other insight software as well here.

Aziz Mottiwala: I know, Bobby, you mentioned you've been out in the field. Maybe you have a couple other insights to offer as well here.

Bobak Azamian: Yeah. I would just add, I mean, we came back from both major academies, optometry and ophthalmology, in the last several weeks. You know, the value proposition is very strong, whether it was at our booth or in advisory boards for commercial or medical affairs. There's tremendous interest. I think as you're seeing in the data, there is a little more demand from optometry out of the gate. They've been already looking at the list probably a little bit more than the ophthalmologist. We know how collaborative these doctors work together. When we talk about that hybrid approach, it's really because in a given clinic you'll see optometrists and ophthalmologists working together. That was very striking to me being out in the field.

Yes, I would just add I mean, we.

Came back from both major academies, optometry and ophthalmology in the last several weeks.

<unk> value proposition is very strong.

Whether it was at our booth.

Advisory boards for our commercial and medical Affairs.

There is tremendous interest and I think as youre seeing in the in the data there is.

A little more demand from our commentary out of the gate, but already looking at the list, probably a little bit more than the ophthalmologists, but we know how collaborative these doctors work.

Together, so so when we talk about that hybrid approach, it's really because in a given clinic, you'll see a comment just an ophthalmologist working together that was very striking to me being out in the field.

Bobak Azamian: There was one question about guidelines I think you had, Frank. Did you wanna cover that, Ajit?

And then there was one question about guidelines I think Frank did you want to cover that yeah. I think what we said on the guidelines was that I think thats important validation for the physician, but again I think really does validate for the payers as well. So we're delighted I think we anticipate any.

Aziz Mottiwala: Yeah, I think what we said on the guidelines was that, you know, I think that's important validation for the physician, but again, I think really does validate for the payers as well. We're delighted. I think we anticipate incorporating in other guidelines as well. The AAO practice patterns I think are really important. I mean, I think just for reference to add to that is those aren't updated very often, right? Those are updated every handful of years. To be included this year right after launch is a real testament to the medical efforts that we had, the scientific platform we've had out there, and I think is reflected in that.

Corporate and other guidelines as well.

Our practice patterns I think are really important I mean, I think just for reference to add to that those arent updated very often right. Those are updated every handful of years. So to be included this year right. After launch is a real testament to the medical efforts.

Efforts that we add the scientific platform, we've got out there and I think it is reflected in that.

François Brisebois: Thank you.

Thank you.

Bobak Azamian: Thank you, François.

Thank you Frank.

Operator: Thank you. This concludes the Q&A session. I would like to now turn it back to Bobak Azamian for closing remarks.

Thank you. This concludes the Q&A session I would like to now turn it back to Bob <unk> for closing remarks.

Bobak Azamian: Thank you all again for your time and interest. We really look forward to keeping you updated on our progress as we work diligently to deliver on the promise of XDEMVY. Hope everyone has a great day.

Thank you all again for your time and interest we really look forward to keeping you up there and our progress as we work diligently to deliver on the promise of <unk>.

Have a great day.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Good afternoon, and welcome to the Tarsus Pharmaceuticals Third Quarter 2023 Financial Results Conference Call. As a reminder, this call is being recorded. At this time, I would like to turn the call over to David Nakasone, Head of Investor Relations, to lead off the call. Please begin.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

This concludes today's conference call. Thank you for participating and you may now disconnect.

Operator: Good afternoon, and welcome to the Tarsus Pharmaceuticals Third Quarter 2023 Financial Results Conference Call.As a reminder, this call is being recorded. At this time, I would like to turn the call over to David Nakasone, Head of Investor Relations, to lead off the call. Please begin.

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Good afternoon, and welcome to the <unk> Pharmaceuticals third quarter 2023 financial results Conference call.

This call is being recorded at this time I would now like to turn the call over to David Nakasone head of Investor Relations to lead off the call. Please begin.

Thank you before we begin I encourage everyone to go to the investors section of the <unk> website to view the earnings release and related financial tables, we will be discussing today.

Joining me on the call. This afternoon are Bobbi <unk>, our Chief Executive Officer, and Chairman as these mobile wallet, our chief commercial officer, and Jeff <unk>, Our Chief Financial Officer, and Chief Strategy Officer.

I'd like to draw your attention to slide three which contains our forward looking.

Forward looking statements. During this call we will be making forward looking language statements that are based on our current expectations and beliefs.

These statements are subject to certain risks and uncertainties and our actual results may differ materially I encourage you to consult the risk factors contained in our SEC filings for additional detail.

With that I will turn the call over to Bobby Bobby.

Dave.

You all for joining us for our first ever earnings call and our first opportunity to speak reduces the highly anticipated launch of <unk>.

The only FDA approved treatment for dividend growth rate.

We are off to a great start and I am pleased to share our progress with you today.

Dominic will provide us with the pervasive and damaging either disease that affects approximately 25 million Americans.

These more than $7 million are seeking treatment were complementary eye condition.

Double clicking on that number more than $1 5 million people who've already been diagnosed with dividend, but for right now.

Highly motivated to find effective treatments.

As anticipated this.

Patient segment driving strong initial demand.

As the Adobe launch progresses, we expect to expand further into that group of 7 million patients.

<unk> was approved in months ahead of its scheduled <unk> date.

As planned we made sure it was available to patients within a month of approval.

Today I am proud to report that we are delivering on the expectations, we set for ourselves and for the launch of it.

Specifically is.

In the third quarter, we generated $1 7 million and net sales.

And we delivered extended more than 700 patients eagerly awaiting a new solution predominance book for items.

These results speak to the two key advantages that may extend we launched unique.

One <unk> is the first and only FDA approved medicine to treat the eminence book writers, which has enabled us to build an entirely new market focused on island.

To the extent the offers a defined course of treatment the delivered strong and durable outcomes and provides value to payers I care providers and patients.

Bobak Azamian: You will hear more about our progress on both fronts later in this call. For those of you who are not familiar with Demodex blepharitis, it's caused by an infestation of Demodex mites, the most common parasite found on humans. Patients with this disease need treatment. They can experience ocular redness, dryness, discomfort, missing or misdirected eyelashes, itching, and burning. Importantly, the cost, quality of life burden, and psychosocial effects are significant. Patient impact ranges from the inability to wear makeup to functional issues such as driving, difficulty driving at night. In the most advanced stages of disease, there may also be corneal involvement which can negatively impact a patient's vision. Turning to the next slide, you'll see exactly what I mean. This is a photo gallery of patients who have been suffering for years with Demodex blepharitis and prior to their treatment with Xdemvy.

You will hear more about our progress on both fronts later in this call.

For those of you who are not familiar with Devon equipped Brian.

This is caused by an infestation of debit next month most.

The most common parasite humans.

<unk> with this disease need treatment.

Can experience ocular redness, dryness discomfort, missing or misdirected eyelashes itching and burning.

Importantly, the cost quality of life burden psychosocial effects are significant.

Patient impact ranges from the inability to wear makeup to functional issues such as driving difficulty driving.

And in the most advanced stages of disease. There may also be cardio equipment, which can negatively impact patient visits.

Turning to the next slide Youll see exactly what I read.

This is a photo gallery in patients who have been suffering for years with Delek booked Brian.

Prior to their treatment with <unk>.

I'd like to draw your attention to one image in particular with one of the upper right hand corner.

This is Lucas.

He is a very active gentlemen retired chemical engineer.

In addition to keeping up with its eight grandchildren. He is also competitive sensor.

I had the great chance to meet Lucas last week.

He shared with me that is.

His watery eye irritation and blurred vision.

Not only made it hard for them to participate in competitive past retirements, but also made it hard to read the newspaper every day.

As you can see in this photo denial aster crusted with Colorado, the telescope of Dominic's Blepharitis.

Fast forward five weeks, a little less than a full course of therapy with extend to be complete.

Start contract.

No color Matt.

No residence.

But what stands out most to me is.

The impact <unk> had on his daily activities.

Bobak Azamian: This is only one of the many similar stories we heard and similar photos we saw from eye care providers, or ECPs for short, during the recent American Academy of Optometry and American Academy of Ophthalmology conferences. When I say I'm confident about the blockbuster potential of XDEMVY, it's not just because of the $1.7 million in net product sales we reported for our first five weeks of launch, it's also because of the impact we are having on patients like Lucas. Again, we are off to a great start. The momentum we're already generating in these early days is proof of the value proposition of this category-creating product, our extensive disease educational efforts, and the seasoned leadership of our commercial organization led by our Chief Commercial Officer, Aziz Mottiwala.

And this is only one of the many similar stories we heard.

Similar photos that we saw from eye care providers or <unk> for short.

During the recent American Academy of Optometry, and American Academy of Ophthalmology conferences.

So when I say I'm confident about the blockbuster potential of externally not just because of the $1 7 million in net product sales we reported for our first five weeks of launch. It's also because of the impact we're having on patient flight movements.

Again, we are off to a great start.

The momentum we're already generating in these early days is proof of the value proposition of this category creating product.

Our extensive disease educational efforts and the seasoned leadership of our commercial organization led by our Chief Commercial Officer Aziz Motorola.

Bobak Azamian: Finally, I know the XDEMVY launch is top of mind, but I want to close by reminding everyone of the potential of our robust pipeline and the near-term data readouts that will be important for our long-term growth, all of which will be addressed by Jeff Farrow, our Chief Financial Officer and Chief Strategy Officer, later in the call. I will now turn the call over to Aziz for more detail on our launch progress.

Finally, I know the extent would be launched is top of mind.

I will now turn the call over to <unk> for more detail on our launch partner.

Thanks, Bobby.

As the initial launch metrics demonstrate enthusiasm that is truly remarkable.

I've worked in the eye care industry for more than 20 years and I've never seen this kind of early response, which I believe speaks to our unique and differentiated approach.

In July we shared our strategic and deliberate launch plan.

And we are executing successfully on this plan we have a driven best in class team comprised of ICL experts and product launch background that are exceeding expectations on a daily basis.

So far our near term accomplishments are delivering a solid foundation for the long term expectations, we have set for ourselves and for exactly.

That said launching a first in class therapeutics is a marathon and not a sprint.

And we are planning for a steady launch trajectory as we continue to build demand and secure high value payer contracts.

Aziz Mottiwala: Category creation requires both substantial disease education and behavioral change. Diagnosing Demodex blepharitis is a simple task, as it just requires patients to look down during every eye exam and looking for collarettes, the sure sign of disease. As simple as it sounds, not every eye doctor is doing it, at least not yet. We recognize that a shift in behavior like this will take time, which is why we initiated disease state education campaigns for every eye care provider as well as for patients well in advance of approval. We've now transitioned our efforts to Might Over Mites, a complimentary branded campaign that highlights the benefits of XDEMVY. As a result, recent market research indicates that nearly 70% of ECPs say they recognize the importance of screening for collarettes in every eye exam, and more than 90% of ECPs indicate intent to prescribe XDEMVY.

And it's as simple as it down not every eye doctors doing it at least not yet.

We recognize that a shift in behavior like this will take time, which is why we initiated disease state education campaign for Agri eyecare provider as well as for patients well in advance of approval.

We have now transitioned our efforts that might have or months are complementary branded campaign that highlights the benefits of exactly.

As a result recent market research indicates that nearly 70% of ECP say they recognize the importance of screening for Colorado, and every IBM and more than 90% of ecp's indicate intent to prescribe extending.

Aziz Mottiwala: That is truly a remarkable number. What it says to me is that ECPs understand both the importance of treating this disease and the value that XDEMVY brings to their patients. This is further bolstered by the recent addition of XDEMVY to the American Academy of Ophthalmology's practice guidelines as the first and only FDA-approved treatment for Demodex blepharitis. We've also been highly successful in our differentiated approach to distribution, reimbursement, and patient access. Due to the unique high-value proposition of XDEMVY, we are already seeing initial non-contracted coverage that has resulted in better-than-expected gross net discounts of 73%. It's a very encouraging metric for us. I also want to caution that as more prescriptions start to come through their systems, payers may put more short-term and onerous prior authorizations in place until we can work through our ongoing contract negotiations.

That is truly a remarkable number.

And what it does to me is that ECP to understand both the importance of treating this disease and the value that <unk> brings to their patients.

This is further bolstered by the recent addition of extending to the American Academy of Ophthalmology practice guidelines as the first and only FDA approved treatment predominate spot Brian.

We've also been highly successful and our differentiated approach to distribution reimbursement and patient access.

This is a unique high value proposition of <unk> Debbie.

<unk> already seen initial non contracted coverage that has resulted in better than expected growth net debt of 73%.

It's a very encouraging metric for us.

But I also want to caution that as more prescriptions start to come through.

Systems payers may put more short term and onerous prior authorizations in place until we can work through our ongoing contract negotiations.

Aziz Mottiwala: That said, based on our ongoing discussions with all the top payers, we still expect broad commercial coverage to build throughout 2024, and Medicare coverage to come online in 2025. Before I turn the call over to Jeff, I want to acknowledge our sales force, which has done a remarkable job of generating the initial demand for XDEMVY. They have already called on 80% of our top four decile prescribers, who in the vast majority of cases have been called on multiple times. As a result of these efforts and launch to date, more than 2,000 ECPs have started patients on XDEMVY, and nearly half of those ECPs are repeat prescribers. We're also seeing a positive trend in new ECPs writing every day.

That said based on our ongoing discussions with all the top Payors, we still expect broad commercial coverage to build throughout 2024, and Medicare coverage to come online in 2025.

Before I turn the call over to Jeff I want to acknowledge our sales force, which has done a remarkable job of generating the initial demand for <unk>.

I've already called on 80% of our top four desktop prescribers during the vast majority of cases have been called on multiple times.

As a result of these efforts and launch to date more than 2000, Ecp's started patients on extending and nearly half of the DCP are repeat prescribers.

We're also seeing a positive trend in new Ecp's, writing every day.

Aziz Mottiwala: Now when we look specifically at the Q3 results, we're pleased to report that approximately 1,700 bottles of XDEMVY were delivered to patients, and we recognized better-than-anticipated gross net discounts of 73%. This encouraging first quarter after launch says to me that we have established a solid foundation for ongoing momentum that gives us great confidence in the potential of XDEMVY. I'll now turn the call over to Jeff Farrow for additional commentary on our financials and our pipeline. Jeff?

Now when we look specifically at the third quarter results.

We're pleased to report that approximately 7500 bottles of <unk> were delivered to patients.

And we recognized better than anticipated gross to net discounts or 73%.

This encouraging first quarter. After launch said to me that we have established a solid foundation for ongoing momentum that gives us great confidence in the potential of extending.

I'll now turn the call over to Jeff for all for additional commentary on our financials and our pipeline.

Jeff Farrow: Thanks, Aziz. I've been lucky enough to have been part of several companies who have brought innovative new solutions to patients in need.

Thanks disease.

<unk> been lucky enough to have been part of several companies who have brought innovative new solutions to patients in need.

Jeff Farrow: Based on that experience, I believe Tarsus is on the cusp of delivering blockbuster potential in an entirely new category of eye care. As Bobby noted, we had an exciting Q3 marked by $1.7 million in net product sales. We also completed an equity raise of nearly $100 million that will be used to support the ongoing launch of XDEMVY and other strategic priorities. As a reminder, we recognize revenue when we ship XDEMVY from our warehouse to the distributors, not just on bottles received by the patients. Looking forward, we are very encouraged by the meaningful numbers of bottles dispensed so far in the Q4.

And based on that experience I believe <unk> is on the cusp of delivering blockbuster potential and an entirely new category of omnicare.

As Bobby noted, we had an exciting third quarter marked by $1 7 million and net product sales.

We also completed an equity raise of nearly $100 million.

That will be used to support the ongoing launch of <unk> and other strategic priorities.

As a reminder, we recognize revenue when we ship X stemming from our warehouse to the distributors not just on bottles received by the patients.

Looking forward.

We are very encouraged by the meaningful numbers of bottles dispensed so far in the fourth quarter.

Jeff Farrow: As we are still in the early days of an uncharted new launch, I wanted to highlight the potential fluctuations in both demand and gross-to-net discounts we might see in the future due to prescribers being out of the office for the American Academy of Ophthalmology and Optometry conferences, multiple holidays in Q4, potential short-term and more challenging prior authorization changes that payers may implement while we work to finalize contracts. Turning now to our pipeline. I'm pleased to provide an update on the multiple near-term phase 2 data readouts we anticipate in the coming months. Beyond XDEMVY, we are continuing to advance three novel therapeutics that target the root cause of the disease. All three are based on lotilaner, the same active ingredient in XDEMVY, providing us with a pipeline and a product.

But as we are still in the early days of an uncharted new launch I wanted to highlight the potential fluctuations in both demand and gross to net discounts we might see in the future due to prescribers being out of the office for the American Academy of Ophthalmology and Optometry conferences.

Multiple holidays in the fourth quarter.

Potential short term and more challenging prior authorization changes that payers may implement while we work to finalize contracts.

Turning now to our pipeline.

I am pleased to provide an update on the multiple near term phase III data Readouts, we anticipate in the coming months.

Beyond <unk>, we are continuing to advance novel therapeutics that target the root cause of the disease.

All three are based on low to later.

Same active ingredient in <unk>, providing us with a pipeline in a product.

Jeff Farrow: We remain on track to report top line data from our Meibomian Gland Disease study by year-end and top line data from our rosacea study in Q1 2024. Due to additional time required to fully enroll our Lyme disease prevention study, we now expect to report top line results in Q1 2024. Again, great progress here and the potential to continue building long-term value for the company and our shareholders. Finally, as you may have noted earlier today, we filed a shelf registration statement in the amount of $300 million. This is merely a good housekeeping measure for Tarsus, and we have no immediate plans for financing.

We remain on track to report top line data from our <unk> gland disease study by year end.

And top line data from our realization study in the first quarter of 2024.

Due to additional time required to fully enroll our Lyme disease Prevention study, we now expect to report topline results in the first quarter of 2024.

Again, great progress here and the potential to continue building long term value for the company and our shareholders.

Finally, as you May have noted earlier today, we filed a shelf registration statement in the amount of $300 million.

This is merely a good housekeeping measure for tarses and we have no immediate plans for financing.

Jeff Farrow: I also want to take this opportunity to note that the potential $2.5 million milestone we have with LianBio is now likely to be recognized in H1 2024. I will close by saying we remain well capitalized with approximately $247 million in cash at the end of Q3. Based on our current plan, this provides sufficient capital to support the ongoing launch of Xdemvy and the advancement of our clinical pipeline programs. With that, I will turn the call back to Bobby.

I also want to take this opportunity to note that the potential to $5 million milestone we have with <unk>.

Is now likely to be recognized in the first half of 2024.

I will close by saying, we remain well capitalized with approximately $247 million in cash at the end of Q3.

Based on our current plan.

This provides sufficient capital to support the ongoing launch of <unk> and the advancement of our clinical pipeline programs.

And with that I will turn the call back to Bobby.

Thank you Jeff.

As you heard today. This is an incredibly important and exciting time for our company.

With the launch of <unk> is well on its way to becoming an eye care leader with the potential to deliver multiple therapies from our category creating pipeline.

Operator, please open the line for questions.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please.

Please standby, while we compile the Q&A roster.

One moment for our first question.

Our first question comes from Jason <unk> of Bank of America.

Jason Gerberry: Hey, guys. Thanks for taking my questions. A couple for me. You know, just, you know, your comments in the PR about 1,700 bottles, that pretty closely lines up with the IQVIA data. Just curious your thoughts on data reliability with IQVIA relative to Symphony, and if IQVIA is ultimately perhaps like the better data source for tracking here. You know, just your latest thoughts on the role, you know, between optometrists and ophthalmologists. You know, it looks like, I think you guys kind of had communicated this would be like kind of a 50/50 split, but it looks like ODs are about 62% of scripts so far. Curious if based on early observations, maybe, you know, how you're thinking about the optometrists playing maybe a bigger role here.

Hey, guys.

Thanks for taking my questions.

A couple for me.

Just.

Your comments on the PR about 1700 bottles that pretty closely lines up with the IQ via data so.

I'm just curious your thoughts on on data reliability with IQ VA relative to Symphony and if <unk> is ultimately, perhaps like the better data source for tracking here and then.

Just your latest thoughts on the role.

Between optometrists and ophthalmologists it looks like I think you guys kind of communicated this would be like kind of a 50 50 split but it looks like ods are about 62% of scripts. So far so curious if based on early observations, maybe how youre thinking about the optometrist thing maybe a bigger role here.

Aziz Mottiwala: Hey, Jason, it's Aziz. I'll be happy to answer those for you. When we think about the syndicated data like IQVIA or Symphony, I think a couple of things to keep in mind here. One is we have a very unique distribution network with 4 focused pharmacies, and secondly, it's very early in the launch. Those two things really yield that these audits are a little bit more directional at best in early days. I'd say in more recent weeks where they're looking better is just the trend and trajectory. On a week-to-week basis, we see a lot of fluctuations in what they're reporting versus what we see here internally. We've been giving them a lot of the data feeds. We anticipate as the weeks go on that those data feeds will get more and more accurate.

Hey, Jason a disease I'll happy to answer those for you. So when we think about the syndicated data like acuity are simply I think a couple of things to keep in mind here.

One is we have a very unique distribution network with four focus pharmacies and secondly, it's very early in the launch.

Those two things really yield that these audits are a little bit more directional at best in early days.

I'd say in more recent weeks, where they're looking better is just the trend and trajectory. So I don't know week to week basis, we see a lot of fluctuations in what they are reporting versus what we see here internally, we've been giving them a lot of the data feeds we anticipated the week. The one that does data feeds that we get more and more accurate, but I think for now I would tell you that really focusing on the trajectory and the.

Jeff Farrow: I think for now, I would tell you that really focusing on the trajectory and the trend versus the week-to-week numbers, because you're going to see some fluctuations in their projections. Our goal is to just focus on driving volumes, and as the volumes increase, those will sort of align better over time. To your second question around the split across specialties, we're seeing great feedback from both ophthalmology and optometry. We reported over 2,000 doctors to date have gotten patients on therapy, and that is coming from a mix of both, as you mentioned. I think near term, we are seeing a slight slant towards optometry, but I think over the long haul it'll start to even out. You'll see equal contribution from both ophthalmologists and optometry.

<unk> trend versus the week to week numbers, because youre going to see some fluctuations in their projections. Our goal is to just focus on driving volumes and as the volumes increase the total sort of aligned better over time.

To your second question around the split across specialties, and we're seeing great feedback from both ophthalmology and Optometry, we reported over 2000 doctors to date is that patients on therapy and that is coming from a mix of both as you mentioned I think near term we are seeing a slight slant towards optometry, but I think over the long haul.

Turning to even out and you'll see equal contribution from both ophthalmology and optometry maybe.

Aziz Mottiwala: You know, maybe at most, it goes to 55 optometry, but we do anticipate that balancing out a little bit more over time.

Maybe it matter if it goes to 55 optometry, but we do anticipate that balancing out a little bit more over time.

Jason Gerberry: Okay. Thanks a lot.

Okay.

Thanks, a lot.

Operator: Thank you. One moment for our next question. Our next question comes from Tim Lugo of William Blair.

Thank you one moment for our next question.

And our next question comes from Tim Tim Lugo of William Blair.

[Analyst] (William Blair): Hey, guys. This is Lachlan for Tim. Thanks for taking the question. At AAO, we heard a lot of discussion, you know, not necessarily from doctors, but other companies in the field around your pricing. I was just wondering if you can discuss, you know, the initial feedback you've had, you know, you've been hearing there, particularly from payers. And then second, can you maybe just talk about how the education has been going around, you know, Demodex mites leading to blepharitis and how that's been received with eye care professionals? And do you have any sense of kind of how many have incorporated, you know, looking for it into their existing practice?

Lachlan Hanbury-Brown: Hey, guys. This is Lachlan for Tim. Thanks for taking the question. At AAO, we heard a lot of discussion, you know, not necessarily from doctors, but other companies in the field around your pricing. I was just wondering if you can discuss, you know, the initial feedback you've had, you know, you've been hearing there, particularly from payers. And then second, can you maybe just talk about how the education has been going around, you know, Demodex mites leading to blepharitis and how that's been received with eye care professionals? And do you have any sense of kind of how many have incorporated, you know, looking for it into their existing practice?

Hey, guys. This is a welcome on for Tim Thanks for taking the question.

Yes.

A lot of discussion not necessarily from doctors, but other companies in the field around your pricing. So I was just wondering if you could discuss the initial feedback you've had.

You have been hearing that particularly from Payors and then second can you maybe just talk about how the.

Education has been going around debit X months lag to blepharitis and how thats being received with FICA professionals do you have any sense of kind of how many.

Having cooperated.

Looking for it.

Are you seeing practice.

Aziz Mottiwala: Yeah. Hey, thanks for the question. It's Aziz again. On the first one around price, I think we were very thoughtful and purposeful when we thought about the pricing for XDEMVY, really reflecting the value proposition the product brings. It's one course of therapy for six weeks, gets great outcomes across multiple measures of disease, and it's the first and only approved product for the disease. All those things combined lead to a great value prop for physicians, patients, and payers. The feedback we've gotten has been very reasonable on that. I think that's reflected in some of the non-contracted coverage we're seeing here in early days, and that's reflected in the better-than-expected gross-to-net discount. Payers are covering this. We're having ongoing discussions with all the payers, and we're not seeing a lot of pushback there.

Yeah, Hey, thanks for the question of disease again.

So on the first one around price I think we were very thoughtful and purposeful when we thought about the pricing for extending.

Really reflecting the value proposition of the product brings.

One course of therapy for six weeks, that's great outcomes across multiple measures of disease and it's the first and only approved product or the disease all of those things combined retail great value prop for physicians patients and payers. So the feedback we've gotten has been very reasonable in that I think thats reflected in some of the non contracted coverage. We're seeing here in early days.

And thats reflected in the better than expected gross to net discount so ayrshire covering this we're having ongoing discussions with all the payers add we're not seeing a lot of pushback. There of course those are all negotiations and their active negotiations, but I think the payers do recognize the value proposition at that'd be brings you acknowledge the unique aspect of the drug and the <unk>.

Aziz Mottiwala: Of course, those are all negotiations, and they're active negotiations, but I think the payers do recognize the value proposition that XDEMVY brings. They do acknowledge the unique aspect of the drug and the fact that it's the first and only. We feel really good about that and stay committed to the idea of building commercial coverage through 2024 and having Part D come in on 2025. When it comes to education, this has been a focus of ours even prior to the launch. We had multiple campaigns educating the physicians and patients on the disease. Our disease campaign was essentially having physicians screen for the disease by having patients look down. We're seeing that momentum continue to build now that the product is approved.

The first and only so we feel really good about that and stay committed to the idea of building commercial coverage through 'twenty, four and having part D comment on 25.

And then when it comes to education. This has been a focus of ours, even prior to the launch we had multiple campaigns educating the physicians and patients on the disease or disease campaign was essentially yes, having physicians screen for the disease by having patients book down we're seeing that momentum continue to build now that the product is approved as we speak.

In our prepared comments, 70% of doctors, we surveyed say that it's important to look for Colorado.

And Furthermore, we know that if they're looking for colorectal they understand the caller at their path in our monarch for debit Xbox Alright. So they are making the link I begin early days, it's still important to build that habit and make it a routine and every exam.

And Thats, our focus going forward you can see that salesforce in our Med affairs team are continuing to educate on disease. The sales forces out there linking the disease to the benefits of the product and thats going to be a continued focus for US right. We're building a new category. It will take some time, but we are seeing great momentum there.

Bobak Azamian: I just wanna add to that, Aziz. This is Bobak Azamian. You know, I've been in the field, as has our executive team, roughly monthly, and, you know, I've seen that education take place. I was once in a very urban environment and next in a more suburban environment. Just as Aziz said, you see some doctors that are immediately prescribing and doing multiples, and then you see some doctors that need a couple visits and, you know, start to understand the value proposition, start to look for patients, and then come online and start prescribing. You know, we're seeing that really, really week in, week out in terms of that education taking hold.

I just wanted to add to that is these Bobby Vivian.

I've been in the field as has our executive team roughly monthly and.

I've seen that education take place.

Once in a very urban environment in Mexico, and a more suburban environment and just as you said you see some doctors that are prescribing and doing multiples and then you see some doctors that need a couple of visits and start to understand the value proposition and start to look for patients and then come online and start prescribing. So we're.

That really really weak.

Can we count in terms of that education textbooks.

Operator: Thank you. One moment for our next question. Our next question comes from Eddie Hickman of Guggenheim Securities.

Thank you one moment for our next question.

And our next question comes from Eddie Hickman of Guggenheim Securities.

Eddie Hickman: Hi, good afternoon, and congrats on the launch so far. Thanks for taking my questions. Just two from me. Can you give any additional color on what went into that 73% gross to net discount and how you think that will track over the next few quarters, given it's already better than where we thought it would start? How many of those 1,700 bottles were reimbursed, and how does the limiting sampling work for this product? And then if you can give us sort of any data benchmark on the upcoming MGD study and sort of what you're hoping to see to move forward in that program. Thanks, guys.

Hi, good afternoon, and congrats on the launch so far thanks for taking my question just two from me.

Can you give any additional color on what went into that 73% gross to net discount and how you think that will track over the next few quarters, given it's already better than where we thought it would start how many of those 1700 bottles are reimbursed and how does the limiting sampling work for this project product and then if you can give us sort of any data benchmark on the upcoming mgd.

And sort of what you're hoping to see to move forward in that program. Thanks guys.

Aziz Mottiwala: Sure.

Jeff Farrow: Hi, it's Jeff. I'll start with the gross to net question. We did do better than we anticipated. We ended up with an overall gross to net discount of about 73%. I think we were anticipating closer to 80%. The vast majority of that discounting was related to our bridging program. What the delta between our expectations and what we ultimately saw was, you know, a little more coverage than what we were expecting from the commercial side in particular. We do think over time, you know, that as we start to get payer coverage in 2024 with commercial, we'll see that gross to net improve. Ultimately in 2025, once Medicare comes on, we'll get to a steady state of about 50% gross to net discount.

Sure Hi, its Jeff ill start with the gross to net question. So.

We did do better than we anticipated we ended up with the overall gross to net discount of about 73% I think we were anticipating closer to EEP.

The vast majority of that discounting was related to our bridging program, but what the delta between our expectations and what we ultimately saw whats little more covers.

Then what we were expecting from the commercial side in particular, we do think over time that as we start to get payer coverage in 2024 with commercial we will see that gross to net improve and then ultimately in 2025 once Medicare comes on we'll get to a steady state of about 50% gross to net discount.

Jeff Farrow: I think the thing we're cautioning folks on, as I mentioned earlier, is in Q4, now that some of these payers are seeing more scripts come through, they're trying to manage their budgets, you know, if we are not currently contracted with them. We're anticipating somewhat of a flat, you know, gross to net discount from Q3 because of that. We're starting to see more onerous prior auth. Again, that will be short term, and we do expect to see that improve over time, starting in Q1 of 2024.

I think the big were cautioning folks on as I mentioned earlier is in the fourth quarter now that some of these payors are seeing more scripts come through they are trying to manage their budgets.

Bobak Azamian: The second question was about the upcoming MGD study. Jeff, do you wanna take that one as well?

And then the second question was about the upcoming Mgd study judgment ticked up I'm sure yes.

Jeff Farrow: Sure, yeah. On the MGD study, we anticipate releasing the data here in the next month and a half, prior to year-end.

On the on the Mgd study, we anticipate releasing the data here in the next month and a half prior to year end.

Jeff Farrow: It includes data from 2 doses, 2 dose types. One is BID, one is TID. We'll be able to release that top line data sometime later this year.

It includes data from two doses.

Two dose types. One is <unk>, one is tid and so we will be able to release that top line data sometime later this year.

Eddie Hickman: Thank you.

Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from Oren Livnat of H.C. Wainwright.

Thank you one moment for our next question.

And our next question comes from Orin live not of HC Wainwright.

Oren Livnat: Thanks. I have a couple of questions. Just to revisit this issue of the evolving payer pushback, I guess, in the immediate term. First, can you just help us understand what kind of early experiences you're hearing about physicians having in terms of getting their patient access early on? Do they need to fill out letters of medical necessity now, or is it just going through a specialty pharmacy that's handling all that adjudication for them on the back end so that they don't experience any of that friction per se? Going forward, I guess, obviously, gross nets are gonna potentially be volatile, but what about volume?

Thanks, I had a couple of questions.

Revisit this issue of the evolving payer.

Pushback I guess in the immediate term first can you just help us understand what kind of early experiences youre hearing about physicians having.

In terms of getting better patient access early on.

And do they need to fill out letters of medical necessity now or is it just going through the specialty pharmacy, that's handling all that adjudication for them on the backend.

I don't experience any of that.

Friction per se and.

Going forward I guess, obviously gross to nets.

Potentially be volatile, but what about volumes do you suspect that if theres incremental pushback in reaction to your very strong volume out of the gates here that it could actually get harder.

Oren Livnat: Do you suspect that if there's an incremental pushback in reaction to your very strong volume out of the gates here, that it could actually get harder, in the near term for someone to get a patient on? What do you have to do to make sure that that doesn't then potentially sour any doctors on the experience going forward? Thanks.

In the near term for summit to get a patient on.

And when do you have to do to make sure that that doesn't then.

Potentially sour any doctors on the experience going forward. Thanks.

Aziz Mottiwala: Sure, Oren. It's Aziz. I think when you think about that access right now, as Jeff mentioned earlier, through the end of the year, right, we can expect that these folks, as they start to see volume, the payers will put some restrictions in place. We've seen this in pockets. I think that this is something that the doctors can navigate through. The doctors typically initiate the PA, but through our focused pharmacy network, they do get some assistance in that process. Clearly the doctor has to initiate that. They have the patient records. It varies by plan, what the expectations are. In some cases, a very simple PA. In other cases, we are seeing a little bit more onerous PAs. Mind you that all this coverage is not contracted right now.

Sure Orange disease. So I think when you think about that access right now as Jeff mentioned earlier.

The end of the year right. We can expect that these folks as they start to see volume the payers will put some restrictions in place we've seen this in pockets.

I think that this is something that the doctors can navigate through the doctors typically initiate the PAA, but through our focused pharmacy network did you get some assistance in that process, but clearly the doctor have initiate that they have the patient records and varies by plan what the expectations are so in some cases, a very simple and.

In other cases, we are seeing a little bit more on SBA.

And you that all of this coverage is not contracted right now so as contracts come online we would push for a more straightforward label that align with our first and only type of products. So we see that evolving over time in terms of impact to volumes I think what Jeff is saying is we're continuing to see steady uptake from the physicians, we're seeing that the doctors.

Aziz Mottiwala: As contracts come online, we would push for a more straightforward PA to label that aligns with a first and only type of product. We see that evolving over time. In terms of impact to volumes, I think what Jeff is saying is we're continuing to see steady uptake from the physicians. We're seeing that the doctors are getting access to the drug. They're having great success with the drug. So we continue to see that build. I think that you have to just keep in mind that that's more of a headwind. We don't see it as something that would keep the prescription flat, but it does sort of give us a little bit of a headwind as we're building that acceptance with physicians. I think the doctors are sensitive to that.

Access to the drug they are having great success with the drugs. We continue to see that build I think that you have to keep in mind that thats more of a headwind there we don't see it as something that would keep the prescription flat, but it does sort of give us a little bit of a headwind as we are building that acceptance with physicians I think the doctors are sensitive to that they know and understand that new products take time to build.

Aziz Mottiwala: They know and understand that new products take time to build coverage. I think it speaks to the value proposition of XDEMVY that people are committed. They're seeing these patients, they don't have another option. The doctors are putting the effort in and of course, our programs are there to help that process along. We think we'll continue to build volume steadily. Certainly, changes in policy or short-term PA adjustments can be a slight headwind as we're ending the year here.

Coverage and I think it speaks to the value proposition of extent be that people are committed theyre seeing these patients. They don't have another option. So the doctors are putting the effort in and of course, our programs are there to help that process. Along so we think we will continue to build volume steadily, but certainly changes in policy or short term adjustments can be a slight headwind as we're ending the year here.

And just unclear.

We're not covered or were pushed back is insurmountable as that bridging program still getting drug into patients' hands in any and all cases essentially such that.

We will continue to see the demand reflected in the prescriptions going forward. It's just a question of.

The economics that you realized in gross to net.

Aziz Mottiwala: That's exactly right, Oren.

That's exactly right Ron.

Oren Livnat: Perfect. Thanks. I'll get back in the queue. I appreciate it.

Perfect. Thanks, I'll get back in the queue I appreciate it.

Operator: Thank you. One moment for our next question. Our next question comes from Balaji Prasad of Barclays.

Thank you one moment for our next question.

And our next question comes from Chris Thompson of Barclays.

[Analyst] (Barclays): Hi, everyone. This is Michaela on for Balaji. Thanks for taking our questions. Just thinking about your pipeline, at what point might you look to expand this further? And are there any areas in particular that would be of interest? Thanks so much.

Michaela Diverio: Hi, everyone. This is Michaela on for Balaji. Thanks for taking our questions. Just thinking about your pipeline, at what point might you look to expand this further? And are there any areas in particular that would be of interest? Thanks so much.

Hi, everyone. This is macewen for velocity. Thanks for taking our questions just thinking about your pipeline of Bob Gwin might you look to expand this further and are there any areas in particular that would be of interest. Thanks. So much.

Bobak Azamian: Thank you, Michaela. We do look actively at the entire eye care landscape, as you can imagine, with a great early launch trajectory with a commercial platform. Eventually, we wanna add more products to our pipeline and to our commercial force. Right now, we can only be so modest. But you know, with continued success, we would look to add further products. Stay tuned. Nothing to report today, but stay tuned.

Thank you Mikael.

Do look actively at the entire eyecare landscape as you can imagine with the great early launch trajectory with the commercial platform. Eventually we want to add more products to our pipeline and through our commercial force.

Right now we can only be so modest.

But.

With continued success, we would look to.

To add further products and.

And so stay tuned nothing to report today.

Operator: Thank you. One moment for our next question. We have time for one more question. One moment. Our next question comes from Patrick Dolezal of LifeSci Capital.

Thank you one moment for our next question.

Okay.

And we have time for one more question one moment.

Our next question comes from Patrick <unk> of lifestyle capital.

[Analyst] (LifeSci Capital): Hi, this is Corey on for Patrick. Thanks for taking our questions. You know, in the call, you mentioned that more than 2,000 ECPs have prescribed XDEMVY so far. It sounds like prescriber adoption has been quite broad as opposed to a really narrow focused group of prescribers leading most of the volume. Would love to hear more about your strategy and how you've been prioritizing ECP targeting. I guess also on that note, how are you thinking about marketing in both the near and long term? It seems like marketing has primarily been directed towards prescribers. Can you speak to the relevance of consumer-directed marketing in Demodex blepharitis and what might your strategy be in that regard?

Okay.

Hi, This is Corey on for Patrick Thanks for taking our questions.

In the call you mentioned more than 2000 ecp's have prescribed extended so far.

It sounds like prescriber adoption has been quite broad as opposed to a really narrow focused.

Group of prescribers, leading most of the volume we'd love to hear more about your strategy and how you've been prioritizing.

ECP targeting and I guess also on that note.

What might your strategy in that regard.

Aziz Mottiwala: Corneal disease. Yeah, no, I think we've been really pleased with the physician acceptance and receptivity. We just came back from both the Academy of Ophthalmology and Academy of Optometry. Got a lot of firsthand feedback. We're real delighted with the uptake we're seeing among the physician community. We're seeing broad uptake to your point. That's been our strategy, right? We didn't want to niche the product. We wanted to go to a broad audience of prescribers. That's why we built the sales force the way we did. We're targeting over 15,000 doctors in our efforts. We're making great progress in penetrating that marketplace. How we prioritize that is, as I think we've shared before, we take a very data-driven and informed approach.

Sure.

Hey, Cory disease, and yes, no I think we've been really pleased with the physician acceptance and receptivity. We just came back from both the academy of Ophthalmology and Academy about commentary that a lot of firsthand feedback. So we're real delighted with the uptake we're seeing among the physician community was in brought updates to your point.

That's been our strategy right, we don't want to niche the product we wanted to go to a broad audience of prescribers. That's why we built the sales force the way we did.

We're targeting over 15000 doctors in our efforts so we're making great progress in penetrating that market place.

We prioritize that as I think we've shared before we take a very data driven and informed approach we think about where patient volumes are we look at claims data and we look at who has historically been early adopters of other products and that really helps us focus our efforts. We also mentioned earlier that we've already talked to 80% of our top decile doctors. So we've been really thoughtful about where we're deployment.

Aziz Mottiwala: We think about where patient volumes are, we look at claims data, and we look at who has historically been early adopters of other products, and that really helps focus our efforts. We also mentioned earlier that we've already talked to 80% of our top decile doctors, so we've been real thoughtful about where we're deploying the Salesforce time. I think that the physician receptivity and the number of doctors that have written and repeat written, which is really important, I think reflects that very thoughtful approach. I think in terms of the marketing efforts that you asked about, we've been real intentional here. I think early days, we really have focused on the physician education, building that understanding, that scientific platform, if you will. That will continue to be the focus along with building coverage.

Fourth time, and I think that the physician receptivity and the number of doctors that have written and repeat written which is really important I think reflects that very thoughtful approach.

In terms of the marketing efforts that you asked about we've been real intentional here I think early days, we really are focused on the physician education building that understanding that scientific platform. If you will.

Aziz Mottiwala: The way you can think about it is once we have great physician penetration, which we're already on a good start on, and as more payer coverage comes in, that's probably gonna signal a great time to think about activating the consumer more purposefully. We do have some consumer education ongoing right now. We've done some smaller campaigns, but in terms of broad-based DTC, which I think you're referring to, I think that comes online, when we've got even more adoption among the physician community and even enhanced coverage with our contracts coming online 2024 and early 2025.

[Analyst] (LifeSci Capital): Excellent. Thanks for taking our questions and congrats on the progress.

Excellent thanks for taking our questions and congrats on the progress.

Operator: Thank you. One moment for our last question. This question is from François Brisebois of Oppenheimer.

Okay.

One moment for last question.

Next question is from Frank Chris.

<unk> of Oppenheimer.

François Brisebois: Sorry. Thanks for taking the questions and congrats on the start here. I was just wondering, we talked a little bit in previous questions about optometrists versus ophthalmologists, and I was wondering, can you just help us understand how the pitches are going and the reception is going, between the two different types of docs? You know, if there's any sticky points or is it a very different pitch between both of them? You know, any color on that would be helpful. You talked about entering the guidelines here. I was wondering how important that is for physicians to then prescribe. Thank you.

Alright, thanks for taking the questions and congrats on the start here.

Just I was just wondering we talked a little bit in previous questions about.

Tom Im curious versus ophthalmologists and I was wondering can.

Can you just help us understand how the pitch is going and the reception is going.

Between the two different types of docs, and if theres any sticking points or is it very different pitch between both of them. So any any color on that would be helpful. And then you talked about entering the guidelines here I was wondering how important that is for physicians to prescribe. Thank you.

Aziz Mottiwala: Yeah. Frank, thanks for the question. I think the pitch is very similar overall, right? Our sales messaging is very consistent. You can think about it in really three tranches. We focus on the disease state, building awareness, continuing to promote diagnosis by looking at lids. Secondly, we focus on the value proposition that XDEMVY brings, the unique effects that XDEMVY brings across collarettes, mites, and redness. And third, we focus on our pull-through with our pharmacy network, getting the prescription in and the process to get the prescription, which is of course really important in early days when we don't have contracts in place. That's pretty consistent. I think sometimes you do have nuances, obviously, optometry versus, say, a very busy surgical practice. You do take a slightly different approach. But I think again, we're seeing great receptivity on both.

Yeah, great. Thanks for the question.

I think they did pitches very similar overall radar ourselves messaging is very consistent you can think about it in really three tranches, we focus on the disease state building awareness continuing to promote diagnosis by looking at Lids. Secondly, we focus on the value proposition that <unk> brings a unique at Baxter can be brings across Colorado mites and readiness.

Great receptivity on both.

Again primary optometry sees a lot of medical visits they are incorporating this and we are hearing from ophthalmologists that there are certainly going to look for a clean and healthy lid before they do cataract or lasik surgery. So those things are starting to take hold.

Our standard of care, if you will in Ikea and I think that helps us in our payer negotiations that are ongoing as well.

In terms of the the day to day feedback I've been out in the field I'm hearing that personally I know Bobby you mentioned you've been out in the field. Maybe you have a couple of other insights offers while here.

Aziz Mottiwala: I know, Bobby, you mentioned you've been out in the field. Maybe you have a couple other insights to offer as well here.

Bobak Azamian: Yeah. I would just add, I mean, we came back from both major academies, optometry and ophthalmology in the last several weeks. You know, the value proposition is very strong. Whether it was at our booths or in advisory boards for commercial or medical affairs, there's tremendous interest. I think as you're seeing in the data, there is a little more demand from optometry out of the gate. They've been already looking at the lids probably a little bit more than the ophthalmologist. We know how collaborative these doctors work together. When we talk about that hybrid approach, it's really because in a given clinic you'll see optometrists and ophthalmologists working together. That was very striking to me being out in the field.

Yes, I would just add I mean, we came back from both major academies optometry and ophthalmology in the last several weeks and.

The value proposition is very strong.

It was at our booth or an advisory boards for our commercial and medical affairs.

Tremendous interest and I think as Youre seeing in the in the data there is a.

Little more demand from our commentary out of the gate that we're already looking at the lids, probably a little bit more than the ophthalmologists, but we know how collaborative these factors work together. So so when we talk about that hybrid approach, it's really because in a given clinic you'll see.

Just an ophthalmologist working together that was very striking to me being out in the field.

Bobak Azamian: There was one question about guidelines I think you had, Frank. Did you wanna cover that, Adit?

So.

Bobak Azamian: There was one question about guidelines I think you had, Frank. Did you wanna cover that, Adit?

And then there was one question about guidelines I think you have Frank did you want to cover that yeah, I think what we saw.

Aziz Mottiwala: Yeah, I think what we said on the guidelines.

Bobak Azamian: Yeah.

Aziz Mottiwala: You know, I think that's important validation for the physician, but again, I think really does validate for the payers as well. We're delighted. I think we anticipate, you know, incorporating in other guidelines as well. The AAO practice patterns I think are really important. I mean, I think just for reference to add to that is those aren't updated very often, right? Those are updated every handful of years. To be included this year right after launch is a real testament to the medical efforts that we had, the scientific platform we've had out there, and I think is reflected in that.

Ted on the guidelines that I think thats important validation for the physician, but again I think really does validate for the payers as well. So we're delighted I think we anticipate <unk>.

Incorporating in other guidelines as well, but the practice patterns I think are really important I mean, I think just a reference to add to that is those aren't updated very often right. Those are updated every handful of years. So to be included this year right. After launch is a real testament to the medical efforts.

Efforts that we add the scientific platform, we've got out there and I think it is reflected in that.

François Brisebois: Thank you.

Thank you.

Bobak Azamian: Thank you, Frank.

Thank you Frank.

Operator: Thank you. This concludes the Q&A session. I would like to now turn it back to Bobby Azamian for closing remarks.

Thank you. This concludes the Q&A session I would like to now turn it back to Bob <unk> for closing remarks.

Thank you all again for your time and interest we really look forward to keeping updated on our progress as we work diligently to deliver on the promise of SWT.

Have a great day.

Operator: This concludes today's conference call. Thank you for participating and you may now disconnect.

This concludes today's conference call. Thank you for participating and you may now disconnect.

Q3 2023 Tarsus Pharmaceuticals Inc Earnings Call

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