Q1 2025 Lenz Therapeutics Inc Earnings Call
Speaker Change: Good afternoon, ladies and gentlemen, and welcome to the Lenz Therapeutics' first quarter 2025 Financial Results Conference call. At this time, all participants are in a listen-only mode.
Speaker Change: Following prepared remarks from management, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, this call is being recorded. At this time, I would like to turn the call over to Dan Chevallard. Chief Financial Officer, please go ahead.
Speaker Change: Thank you. Good afternoon and thank you for joining us today. My name is Dan Chevallard, Chief Financial Officer of Lenz Therapeutics.
Speaker Change: We are joined today by Abe Schimmelpennink, our President and Chief Executive Officer, and Shawn Olsson, our Chief Commercial Officer, as well as Dr. Marc Odrich, Chief Medical Officer, who will join us for the question and answer session.
Speaker Change: Before we begin, I would like to remind you that this call will contain four looking statements regarding Lenz's future expectations, plans, prospects, corporate strategy, regulatory and commercial plans and expectations, cash runway projections and performance.
Speaker Change: Actual results may differ materially from those indicated by these forward looking statements as a result of very important factors and risks, including those discussed in our filings with the Security Exchange Commission, which can also be found on our website.
Speaker Change: In addition, any four-looking statements represent only our views as of the date of this broadcast and should not be relied upon as representing our views as of any subsequent date. We specifically display many obligations to update such statements.
Speaker Change: The company encourages you to consult the risk factors contained in our SEC filings for additional detail, including in our first quarter 2025 form 10Q, which was filed today.
Abe Schimmelpennink: With that, I will now turn the call over to Abe.
Abe Schimmelpennink: Thank you Dan, and good afternoon everyone. The first quarter of 2025 has been a focused and highly productive theatre for Lenz.
Abe Schimmelpennink: But up to do for target action date for RMZ100, now just three months away, we are entering into what we believe will be a finding chapter in our company's growth.
Abe Schimmelpennink: Back in January , I said that 2025 had the potential to be a transformational year, and that each passing milestone has proven to be the case.
Abe Schimmelpennink: In private quarters, we emphasize that commitments to discipline execution as we are advancing and Z1 on little launch, and are the leading potential as a category to fight in treatment
Abe Schimmelpennink: That focus hasn't waded, and we've been doing all of this while maintaining a strong financial
Abe Schimmelpennink: Affirmation in recent weeks has been further strengthened to a block trade as a result of an imbalance from a high-quality investor, Yigal, to initiate a meaningful starting position
Abe Schimmelpennink: Her interest was, among others, triggered by our commercial day, which would host it in April at the Nesdaq Market Site.
Abe Schimmelpennink: Our objective was to provide a clear and comprehensive look at our commercial readiness and share our excitement for the upcoming potential launch, MZ100.
Abe Schimmelpennink: It was a tough standing event with many investors and self-appellate joining in person, hundreds more joining life online, and many others who have watched the replay since.
Abe Schimmelpennink: The feedback is then extremely positive. We believe we accomplished what we set out to do. Demonstrate the strength of our commercial strategy and still confidence in our ability to execute.
Abe Schimmelpennink: There are four key takeaways from the events I'd like to briefly touch on here.
First, the perspective shared by I Get Professionals.
Abe Schimmelpennink: We heard from a number of respected co-hels who all expressed genuine enthusiasm about the current potential of ANZ100, particularly on Howard Goodman's patient care.
Abe Schimmelpennink: As a reminder, while there are approximately 28 million Americans with Presbyopia, few and a half of them are believed to see an IK doctor.
Abe Schimmelpennink: That presents a substantial opportunity, and ECPs are very interested in how our direct to consumer marketing will help drive awareness and engagement among this large population.
Abe Schimmelpennink: Second, we outlined the progress we had made in preparing for launch.
Abe Schimmelpennink: As you know, a commercial strategy is structured around three pillars, enabling doctors to recommend us, empowering patients to a crisis by name, and assuring the streams that are to access.
Abe Schimmelpennink: On the first floor though are unbremmed that I am selected and being continues to generate strong engagement.
Abe Schimmelpennink: 150 kawals are part of the effort, helping their fans to take a fresh look at a no-gen offer to fire options in the Presley OVR treatments.
Abe Schimmelpennink: The campaign has reached over 12,000 ECPs and has delivered more than 2 million impressions online.
Abe Schimmelpennink: Furthermore, our all optometrists and results team has been actively engaging with ECPs with thousands of meaningful interactions to date.
Abe Schimmelpennink: They're playing a key role in educating the community about the cyclist mechanism of action and the importance of people selectivity.
Abe Schimmelpennink: And a parallel ourselves force build out this progressing as planned and Shawn will speak to that shortly.
Abe Schimmelpennink: The second pillar, Dylan Grant-Berrano's and Longfacians, post-approval and launch, is driven by Claire and Tiger Australian. I share that the commercial day, our goal is to establish a true category of one.
Abe Schimmelpennink: Dr. Pfein, Akishimus Argus, we know how and where to reach them, and we are building a campaign that will incorporate the right mix of influencer and ambassador engagement to drive visibility and recognition.
Abe Schimmelpennink: And third, we believe the foundation for strong access strategy.
Abe Schimmelpennink: that includes an extensive sampling approach and broad distribution to both traditional regional pharmacies and existing e-pharmacy channels, ensuring convenience and accessibility
Abe Schimmelpennink: We also provide an update on our interactions with the FDA.
Abe Schimmelpennink: Given the current regulatory environment, we felt it was important to reiterate that we are continuing to see a high level of engagement from the agency.
Abe Schimmelpennink: In fact, our late cycle view meeting has been moved forward to the late of this month.
Abe Schimmelpennink: We remain on track for our August 8th to do for days.
Abe Schimmelpennink: Finally, I want to briefly speak to the topic of tariffs, which for all these reasons continues to come up in conversations.
Abe Schimmelpennink: As we shared at the commercial day, we were in a strong and well-defined position [inaudible]
Abe Schimmelpennink: On November 7th of last year, U.S. Customs and Border Protection issued a definite of this ruling establishing from the United States as the country of origin for L&G 100.
Abe Schimmelpennink: So, by the effect of our intellectual property, the Thomas Seil in the U.S., we are proud to say that Alan Z100 is designated in the USA.
Abe Schimmelpennink: Across the organization from medical and regulatory to manufacturing operations, quality finance, HR and commercial, every team is operating with urgency and alignment as we approach our target action day in August .
Abe Schimmelpennink: It's a truly cross-functional effort and an incredibly proud of what we have accomplished so far.
Abe Schimmelpennink: With that, I'll send a call over to Shawn at Chief Commercial Officer, who will share more on the progress we are making in our pre-commercial planning. Shawn?
Shawn Olsson: Thank you, Ace. Good afternoon, everyone. As we've discussed on previous calls, it's a commercial potential for an effective Presbyopia Treatment, represents one of the largest I-Care Market Opportunity in the United States.
Shawn Olsson: Presbyopia, Impact, and Estimated 128 million people in the U.S. Population nearly four times larger than those impacted by dry eye and nearly six times larger than those impacted by the Demon X-Glephoritis.
Shawn Olsson: For further context, Presbyopia impacts more than the combined U.S. population suffering from dry eye, demodexpliferitis, shouted myopia, macular g-generation, diabetic retinopathy and glaucoma.
Shawn Olsson: The first eyedrop treatment for Presbyopia was approved in 2021 and confirmed that there's a strong consumer desire for an eyedrop treatment.
Shawn Olsson: as evidenced by initial paid new scripts about 6,000 per week.
Shawn Olsson: Long-term usage beyond the trial period of this product did not materialize as pilot carving even at the high concentration of 1.25% can have to deliver the consumer and required performance.
Shawn Olsson: Extensive, independent consumer market research suggests this category is wide open for an eyedrop solution that can deliver what consumers desire. But once a day eyedrop that provides a seamless near vision for the full work day for the majority of predisposites.
Shawn Olsson: Unlocking this market requires an ideal Presbyopia eyedrop and we're excited for the prospect of a cycling-based LNC-100.
Shawn Olsson: We believe the commercial potential of LNZ100 was validated in our phase three clarity study with 90% of participants noticing the improvement in your vision and 75% of participants indicating they would continue to use LNZ100 after the study.
Shawn Olsson: Of which, 81% plan to use the product 4-7 days per week.
Shawn Olsson: Together with our broad inclusion criteria, we believe this positions LMD 100 well for the estimated 3 billion plus market, creating a potential category of one.
Shawn Olsson: We continue to advance our commercial readiness as we progress towards August 8th to do today, and I'd like to take just a moment to provide an update on the three pillars of our commercial strategy.
The first pullover commercial strategy is doctors to recommend us.
Shawn Olsson: As they've mentioned, are all optometrists MSL team is already engaging with ECTs on medical education and fielding questions on the phase three day of.
Shawn Olsson: In addition, our unbranded campaign continues to drive awareness of an ideal price-biochial solution with over 2 million digital impressions.
Speaker Change: Following potential NDA approval, our Salesforce will immediately begin branded calls on approximately 15,000 ECTs, and please report that we have made substantial progress on the Salesforce over the past quarter.
Speaker Change: As a reminder, we have already successfully hired our full sales leadership team, including both of our regional directors in 2024.
Speaker Change: In Q1, we expand the team further with additional 10 district managers.
Speaker Change: Collectively, this core leadership group brings nearly 150 years of ITAR experience and more than 300 years of total sales experience.
Speaker Change: In March, we launched job postings for all 88 sales territories nationwide. The interest to join Lenz's sales force has been tremendous with over 7,500 applications for the 88 positions.
Speaker Change: The quality applicants have been very high and are excited to share that we've begun extending offers to our field-based sales representative.
Speaker Change: As of today, we've extended and received accepted offers for over 40% of our field sales team.
Speaker Change: In addition, 97% of these new team members have prior eye care or farm experience and on average have over 10 years of sales experience.
Speaker Change: The smarts, a major milestone on commercialization readiness and great progress towards our target to have a full field team in place by July 1st.
We're excited to progress our first pillar. Doctors recommend us.
Speaker Change: And as a reminder, our primary market research surveyed 426 eye care professionals, and it yielded an impressive 82% and 83% of the ECP's already being likely to provide prescribed and sample LNZ 100 if FDA approved respectively based on that phase 3 data.
Speaker Change: Our second pillar of our commercial strategy is consumers to request us by name.
Speaker Change: We've taken a consumer first approach, leaning heavily into lifestyle creative that reflects the aspirations and daily experiences of our future consumers.
Speaker Change: The brand-lead built is empowering, desirable, and has tested exceptionally well in Marker Research.
Speaker Change: We heard from phase three users of LNZ100, which highlighted the personal experience with the drop and the word of mouth potential.
Speaker Change: We share our plan for advertising, including influencers and celebrities to drive awareness.
Speaker Change: We've even facilitated a live discussion with Tiffany Beeson, who many of you may know from Saved by the Bell, 90210 and White Coward.
Speaker Change: As a Presbyel herself, she shared her frustrations with Presbyopia and desire for a better solution.
Speaker Change: All of this to help frame how we plan to ensure consumers will request us finding.
Speaker Change: Our Brain Creative is now fully locked, and the majority of our launch promotional materials are ready, Hending Final Product Insert Language.
Speaker Change: Once approved, we'll begin activating our eye care professional-facing materials to ensure providers are confident and well equipped [inaudible]
Speaker Change: Following that and once the ECP education is firmly in place we'll launch into our direct consumer campaign with high impact advertising influencers and celebrities that we believe will powerfully introduce our brand of the market.
Speaker Change: For more information from the commercial day, a replay of the event is available on our Investor Relations page under the IR calendar on our website.
Speaker Change: The third divino, killer, seamless journey to use, will ensure ease of sample and product access for patients.
Speaker Change: This requires enabling the patient to experience the products and move from trial to usage as quickly as possible.
Speaker Change: To support this, our team has built out consumer sampling capabilities and commercial access across multiple channels including the traditional retail pharmacy as well as the pharmacy home delivery.
Speaker Change: In our clinical trials, 95% patients noticed at least two lines of improvement on our one day one.
Speaker Change: This immediate response and well effect is incredibly important to product sampling.
Speaker Change: Our sample vendor has been contracted and after approval samples will be rough delivered to eye care professionals allowing consumers to try the products.
Speaker Change: Our team has developed a five-day sample path, similar to sample sizes for conduct lenses, which following the initial trial can act like a bridge until practice picked up at the pharmacy or delivered to the consumer's home.
Speaker Change: We will continue to drive these three colors as we continue to progress towards our fidufe names. Doctors recommend us, consumers who request us by name, and the seamless journey to use.
Speaker Change: I'd now like to hand the call over to Dan Chevallard, our CFO to highlight our financial results.
Dan Chevallard: Thank you, Shawn. As is mentioned in the first quarter of 2025, they've had a very productive and focused time for the company, but they'll produce a target action date for LMZ 100 just over 90 days from now.
Dan Chevallard: We ended Q1 2025 in a position of financial strength and funded for success with approximately 194.1 million cash, cash equivalence, and marketable securities.
Dan Chevallard: As you may have seen, now having passed the anniversary date of our merger in March 2024, and the corresponding rule 145 shell limitations imposed upon us by the SEC.
Dan Chevallard: We became shelf knowledgeable and filed our first S3 shelf registration statement in early April .
Dan Chevallard: Subsequent to quarter end, we received a meaningful end on inquiry from a high quality investor on our ATM, which ultimately resulted in a single block trade of 600,000 shares and net proceeds of $16.3 million. Further strengthening our financial position.
Dan Chevallard: As such, we have Upper Lee Resort revised our projected cash at Feduka from over 170 million, which we disclose at our commercial day.
Dan Chevallard: and now over 105 million. And again, reiterated our cash on hand is anticipated to fund the company's cash runway, the post-lunch, audited offer and cash flow.
Let's now turn to our first quarter results.
Dan Chevallard: As I noted on our most recent year-end call, we expected measured increases at our operating expenses as we exited 2024 between year-end and the time of our fiducity, which was exactly what we saw in the first quarter.
Dan Chevallard: Our total Q1 2025 operating expenses increased to $16.9 million, and 11% increased over Q4, but well within our operating plan.
Dan Chevallard: From a cash perspective, we had a total net cash burn of 15 million to 125, which included approximately $3 million in one time.
Dan Chevallard: Annual Cash Costs, and is really reflective of closer to $12 million in operating cash burn.
Dan Chevallard: Compared to our Q4 2024 Net Operating Casper for approximately $8.19 $9.
Dan Chevallard: Total SGNA expenses increased to 11.39 per Q1 2025 compared to 5.6 million in the same period in 2024 driven primarily by increasing commercial headcount and other pre-launch commercial planning activities.
sequentially
Dan Chevallard: SG-8 increased quarter over quarter by approximately 19% from 9.4 million in the fourth quarter.
Dan Chevallard: Jordan, primarily by increases in personnel related expenses to a growth due to a growth in
Dan Chevallard: Great Commercial Marketing, Advertising Sales Infrastructure, in all continuing the pattern of a ramped commercial spend as we approach our potential August 2025 approval for LMZ100.
Dan Chevallard: As I have highlighted on previous calls and what will be a consistent objective, we will continue to be measured in our spend on the GNA side of the organization as we aim to remain a lean and efficient GNA team.
Dan Chevallard: Total Research and Development expenses decreased to 5.8 million Q1 2025 compared to 10.5 million in the same period in 2024.
Dan Chevallard: The majority of our research and development expenses in Q1 are dedicated to our manufacturing operations efforts as we build pre-approval, crucial product and sample inventory just
Dan Chevallard: which will continue through the approval of L&D 100 and which time much of our manufacturing costs will be prospectively reflected in cost of sales.
Dan Chevallard: Finally, our net loss for share, both basic and diluted, was 53 cents per share in the first quarter of 2025 on a net loss of $14.6 million compared to a net loss for share of $3.53 per share in first quarter of 2024 on a net loss of $16.6 million.
Dan Chevallard: Q1 2025 net loss per share was calculated on approximately 27 and a half million weighted average common shares outstanding compared to Q1 of last year, which was the quarter which we completed on the birth merger.
Dan Chevallard: and Netloss was calculated on approximately 4.7 million weighted average college shares
Dan Chevallard: In total, we ended Q1 2025 with approximately 27.5 million shares of common stock outstand.
Dan Chevallard: In summary, we feel very good about where we stand financially, as we approach the exciting period ahead, and are pleased with the strength of our balance sheet and discipline operating plan, as we approach our August 8th either of the day.
Abe Schimmelpennink: With that, I'll turn the call back over to Abe, the final month.
Abe Schimmelpennink: Thank them. As you can see, we're up to a great start in 2025.
Speaker Change: I believe we have tremendous momentum as we are now about three months from our Purdue
Speaker Change: We've never been more confident in our abilities to deliver one daily, well-tolerated, and rapidly acting treatments to earn them 28 million individuals living with best we hope you have in the United States.
Hello, before the exciting months ahead.
Speaker Change: With that, I'd like to open up the call for questions.
Speaker Change: At this time, if you would like to ask a question, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. To repeat, to ask a question, please press star one.
Speaker Change: Your first question comes from the line of Stacy Ku from TV Cohen. Please go ahead.
Stacy Kuh: Hi, thanks so much for taking our questions and congrats on the progress.
Stacy Kuh: So, we have a few. First, as we think about the LNZ-100 initial launch, we do think it makes a lot of sense to maximize the prescriber and patient relationship with high volume dimpling.
Speaker Change: So just curious, you have the infrastructure in place to get samples to all interested offices as quickly as possible post-launch
Speaker Change: He discussed in more details plans immediately after approval. That's the first question. And then the second is somewhat related.
Speaker Change: Um, maybe talk about the type of preparation the team is doing to drive continued use in briefills of Elans D100 after that initial sample. How are you thinking about the level of thickness of Elans D100 as it relates to setting expectations for the patient experience?
Speaker Change: and then last, if we could, as you approach the approval timing, what kind of metrics will you disclose to kind of show patient demand to the street? Thank you so much.
Great. Thanks, Stacy. This is Shawn.
Speaker Change: So for your first questions, you're asking about where we are readiness and ability to sample right out the gate for LNZ100. I think I got that right. So we see sampling as a critical component to our commercial strategy. So we've been out in front of this for a long time. So we actually contracted our sampling distributor back in 2024.
Speaker Change: You know, and what we're doing in terms of progress, you know, obviously internally we're writing all of our policies for how the reps deliver the samples.
Speaker Change: And then also, no we're already coordinating between our sample distributor as well as our CRM system and actually smoke testing those systems to make sure it will be seamless upon those samples being available.
Speaker Change: So, once samples are available, we'll immediately begin shipping those samples to the reps, we'll receive those samples and be out distributing them to their 15,000 ECP targets.
Speaker Change: And really, our plan is to have the majority of our samples rep delivered. And we see that is very important. Well, we see that that opens the door to go and talk to the eye care professionals. And that allows us to have that conversation about LNC 100 with the eye care professional every time we show up.
Speaker Change: Under second question in terms of preparations for the field, so we have a lot of work going on already to ensure that we're ready to go. So as you can imagine with over 40% of the Salesforce already accepting offers.
Speaker Change: Now, once the sales team comes on, they have about a three week training cycle, where we take them through all those modules, all of them, except for the one on the product, are all ready to go and through the medical, legal and regulatory review process. So he could get training them day one.
Speaker Change: and in terms of preparations to make sure that, you know, appropriates information is passed along to the eye care professional and we prepared our Q and A documents as well as you know key messages to have that conversation with the doctors. Thank you very much.
Speaker Change: Got it. And then the last comment on what type of metrics you might disclose.
Speaker Change: Yeah, so in terms of the metrics, so what we see there is, you know, this product will be distributed both through the retail pharmacy as well as the e-pharmacy. So I think where most people will be looking for a cross in terms of metrics early on, I'd rather be going to the Acquia data, looking at new script rates, as well as that refill rate, I think early on the focus of Q4 is going to be samples.
Speaker Change: Once we move into Q1, I think that focus is really going to be what are those new scripts per week?
Speaker Change: And then moving into Q2, it's going to be a lot about how are those refills coming through. You know, given the e-farmacy, obviously that's often not picked up in IQVIA. No, we'll make sure that we can provide some guidance on how that's going so the appropriate nail is to be made.
That's really bad.
Speaker Change: Cardiars, that's simple, we'll be confronting it with H. Gricks.
Shawn Olsson: At that moment, the patient needed to choose to fill up the short mentions, for the e-pharmacy, this is the, you know, we're all getting very accustomed to now, the doctors are supposed to effectively pull up on your phone.
Shawn Olsson: And that probably will then be delivered to your doorstep or if you want to grab a more traditional route, you can pick the actual product up at the retail financing. And then the second part of that question was what we think about stickiness.
Shawn Olsson: Hard to say, the moment I think this was different to our products, I'm sure I'm highlighted that.
Shawn Olsson: That's sample use and we know that 95% of patients hit at least two lines of near-vision improvements to expect that people see the improvements on sample.
Shawn Olsson: If they are converting to a script, they should be moderated to continue to use that, to what it expects, rather than be high stickiness, once people are converted into a script.
Wonderful, incredibly simple. Thank you.
Bhavan Patel: Your next question comes from the line of Bhagavan Patel with Bank of America. Please go ahead.
Bhavan Patel: Hey guys, this is Bhavan, on for Jason Gerberi. First question is related to the five-day sample pack. I know that's a key part of the strategy. How will sample distribution be managed and tracked to ensure that they reach high potential prescribers and patients? And what's the expected conversion rate from sample to paid prescription?
Bhavan Patel: And then on the manufacturing supply chain with the start of manufacturing in February of 2025, can you help us understand what's the current inventory level and what's the target inventory for launch and then one follow up if I may.
Thank you. Thank you.
Bhavan Patel: Absolutely, I'm showing you on a second sample pack. Yep, great. Right here for Yigal Nochomov, so the five day sample pack, when we think about how that will be managed and tracked.
Speaker Change: So what will happen is obviously our sample fender will hold all of the actual bulk.
Speaker Change: Samples in their location, and then how that we match every month, that product will be shipped to each rep, right? So every month will be a shipment that goes to the rep. They'll hold their products in their storage locker. Thank you very much.
Speaker Change: And then that shipment will be dependent on the number of targets and then the expected amount of samples they'll be dropping off so that will be replenished every single month.
Speaker Change: Once that rep goes to the actual doctor's office, to the I care professional, every time samples are dropped off, we will make sure that they're signed for and fully accounted for to make sure that to clear transfer ownership to the I care professional.
Speaker Change: And every subsequent visit, they'll be checking in on how many samples were written or how the samples were left and how they script for written to make sure maintains the right ratio. So
Speaker Change: In terms of the expected conversion from samples to full-time users, I think it's a little bit too early to tell on that, but when we have more insight, we'll share more on that.
Speaker Change: Thank you, Shawn. Just to add to that, before I go to the S.V. I'm sorry, a question. We're on a map on the 15,000 doctors and 88 reps, Dr. B.M. She kept two about a three-week call cycles, every three weeks the rapists in that office. On top of that, there's a mechanism for doctors if they're on other samples in that period to request more.
Speaker Change: So I'm the I'm the inventory you are right that we start a production of are to be commercial products in Q1. I don't think we're going to be sharing at this moment what are inventory letters are other than you know work confidence that we can supply what we believe will constitute a successful launch.
Speaker Change: Great. And then just for my follow-up, maybe if you can elaborate on the mechanics of the e-farmacy partnership and how that will strengthen the patient journey from prescription to refill, including data capture on script conversion and adherence. Thank you.
Speaker Change: Yeah, absolutely. We've really seen over the past few years for the growth of people that prefer their medicines to be delivered to their house, just like their Amazon packages.
Speaker Change: So there's really been this growth in the use of e-varmacies, but what's great about that is it really creates a closed system which is helpful. So our partner that we're going to be using for our e-varmacy is already active in the high care professional space.
Speaker Change: What that means and why that's important means when we go to you know when a doctor goes to enter the strips into their EMR system.
Speaker Change: Now, that E-Farmacy should already be loaded up within that computer.
Speaker Change: So should we see him, let's defend it on the e-pharmacy? [inaudible]
Speaker Change: Once the E-Farmacy actually receives the script, they then take over the ownership and relationship
So the e-farmacy shoots the text through the patient's phone.
Right, at that point, it's just a link to click in.
Speaker Change: and from that link they put in a credit card information and shipping information.
And that product starts shipping to their door.
Speaker Change: Throughout that process also, what's great about it is the opportunity for auto refill, which means in terms of stickiness, right? That product showing up every single month to the door.
Speaker Change: And then one other question was that you asked earlier that I think I missed a spot on. You want to make sure the samples go to those high volume prescribers?
Speaker Change: Because our samples are rep-delivered, no, they're targeting those eye care professionals that we've identified as high death dial users.
Speaker Change: of the beauty products. So, you know, our reps are going to those practices, which have already shown a high volume of beauty use, early on. Therefore, that way the samples are going to the
Thank you guys.
Speaker Change: Your next question comes from the line of Yigal Nochomovitz with City. Please go ahead.
Yeah, hi, thank you very much.
Speaker Change: Regarding the marketing plans, can you talk about when you're going to turn on the influencers and not who you're going to get, but when that might happen and on what platforms.
And then, as far as the commercial model...
Speaker Change: in terms of how you're thinking about the launch. Obviously, duty got to 6,000 scripts per week, I believe, and then it peaked out.
I'm just wondering, if you get to that point...
Speaker Change: Would that be break even for you, or would you need to be higher or lower, and how quickly do you think you could get to that 6000 script high watermark that the beauty got to and then presumably exceed that thank you.
[inaudible]
Speaker Change: Hi, Yigal, this is Shawn again. Thanks for that. I'll take the first question on the marketing plans and when to turn on the influencers. So, when we think of, you know, when we go to market, you know. [inaudible]
Speaker Change: Immediately upon August 8th, the duvet date has approved, the field will go out and start training ECPs.
Speaker Change: Our main goal ahead of the influencer campaign is to make sure the ECTs are aware.
Speaker Change: of the products and comfortable with it, right? So that's what we want to make sure is in place before we turn on the influencer of campaign. That's important because what we heard about beauty is if you turn on the influencers too quick, the doctors are caught off guard. [inaudible]
Speaker Change: So I think it's safe to assume Q4 is really a focus on the eye care professionals.
Speaker Change: was also great about our products as a cash pay product, so we're not beholden so when we have coverage by the PVNs to turn on DTC so we can turn on faster than other products that are covered by insurance.
Speaker Change: So when we start turning on influencer campaigns and really promoting VTC, so that's going to happen in early 2026 I would expect. I think by that time we'll had enough time to meet with the doctors a few times each. Make sure they're comfortable with the products for turning on DTC.
Speaker Change: In terms of channels, you know, we worked a lot by identifying the early adopters and where they spend their time. What we are finding, you know, these people over 45, but they're spending the majority time on Facebook. Thank you, Marc.
Instagram, YouTube, and Pinterest.
and Instagram. Got it, got it.
Speaker Change: Thanks, Shawn. I'll take your question on the modeling, Yigal, and thanks for filing it. You'll appreciate that at this state in the company and for your launch. We're not getting revenue or volume.
Speaker Change: What we have shared is that ultimately we can see there's been a $2 million plus market and as we've shared previously as based upon 8 million ultimate users in the rest alone.
He's in the part of five days, three fills, a year.
Ed, what would be the early pricing?
Speaker Change: So with that in mind, and the fact that we're going to be a casual positive, I think many of the models including you also, you know, could be getting an a sense of when that could happen. But again, we're not going to do what we have in our plans.
Okay, got it. Thank you.
Speaker Change: Your next question comes from the line of Lachlan Hanbury Brown with William Blair. Please go ahead.
Speaker Change: Hey guys, thanks for taking the questions. So Shawn and Shawn, the BTC marketing, I mean you've obviously have pretty comprehensive, unbranded campaign prior to approval. So I was curious how you think about the transition from that to branded campaigns and DTC.
Speaker Change: Yeah, it does that. If DST starts in early 2026, does the Umbranum campaign continue until then? Or does it sort of survive it to something else on approval or availability?
and then second...
Speaker Change: You sort of touched on this a little earlier, but would the sales horse expect it to all be hired by July 11? And, presumably, at least some of them will have been through that three weeks training? Thank you.
Speaker Change: Thanks, Lachlan. Great questions. Yeah, happy to cover those topics. So, first thing, when did the unbranded stop? So, right now that unbranded campaign, obviously it's, you know, a disease state awareness and looking for, you know, what's the ideal solution, look like in Pride of the Obia. Our plan is to continue to run that up until potential approval. All right.
Speaker Change: and then we would suddenly set that campaign. So it's really what we can have out there so we can get the excitement going for future solutions in Presbyopia. Once we can transition to speaking about the brand, we want to meet the transition to that and make that the focus of all messaging. Thank you very much.
Speaker Change: So, what that transition will look like to DTC marketing? So, right now in the unbranded campaign, a lot of that focus on where do doctors spend their time, as well as the conventions that are going to in their publications?
When we move over to DTC for the Drugs Consumer,
Speaker Change: We'll actually first start with Directive Practitioner. So we'll actually bring on branded messaging to the doctors. So we'll just transfer everything we're doing on the unbranded side, flip it over to brand and materials directly at the doctors to really drive their awareness.
Speaker Change: and make sure they're comfortable with the product. And then they have to be transitioned to then DTC after that in early 2026.
Speaker Change: The whole game resets in terms of how we target them. Because now that we're targeting a consumer, we're moving off to the platforms where doctors are focused for information back to that Pinterest, YouTube, Facebook, Instagram.
Speaker Change: And to do that, you know, we've brought on the right type of media by agencies that have those relationships to make sure that we have a hard getting impactful messaging on those platforms. So that's how we're really going to transition to DTC. [inaudible]
Speaker Change: Now, the salesports, as we shared, over 40% of them have already accepted offers. Some of them will be on before July 1st.
Speaker Change: All right, you spoke about the three weeks of training. So what can happen after they're training before approval?
Speaker Change: So that's again where the unbranded campaign comes in, you know, the unbranded campaign is, you know, fair game for sales force to talk about, so they can actually start their call cycles.
Speaker Change: So they can start to meet the eye care professionals, confirm roundings, confirm to emails, get to know the doctor, just the discussion will be limited to the I am selected campaign, and then upon approval they can then immediately switch to the branded calls.
Speaker Change: That's how to think of that transition from hiring until product development or product approved.
Okay, thanks. That's useful.
Speaker Change: Your next question comes from the line of Gary Nachman with Raymond James, please go ahead.
Dennis Resnick: Hey guys, this is Denis Reznik, on for Gary Nachman. Thanks for taking our questions, and that's on all the progress.
Dennis Resnick: First, you provide an update on the work you're doing surrounding the additional patent protection for L&D 100. I believe you previously mentioned you had 10 currently under review, just any additional color on what types of patents they are and your conference in the overall IT estate. And then can you talk a little bit more about the process that went into selecting the e-farmacy you're working with? What specifically sets this e-farmacy apart from others and just elaborate a little bit more there. And I got one follow up. [inaudible]
Absolutely, great questions.
Dennis Resnick: The school graphically in two buckets, one around the use of a psychic in to treat President Hill here, the very strong patents around that, and a suite of our product for the nation's patents.
and very strong patents at God's 23-9.
Dennis Resnick: And the patents that are currently on the review, and I'm talking to you, I saw it here for the moment.
Dennis Resnick: That will extend that to at least 24 or further patents in those two categories as well as use patents in different use cases that we have seen in our product.
Dennis Resnick: That's going to be again a very broad, very strong, fantastic.
Dennis Resnick: Just to complete that on the protection side for the products.
Dennis Resnick: The head of that says, because this is a new account of the entity for the US, at least five years, of data accessibility, of our approval, that's what we expect to get.
Dennis Resnick: And on the back-end, because it's a self-made product, you'll never see your traditional genetic switch for a product like this, because there's no insurance involved, so there's no insurance pushing the pharmacists to switch a brand over to generic.
Dennis Resnick: Let me feel on the back end, but now we're talking 24 and 4 and beyond, we'll provide a very strong and long lasting life cycle for us.
Dennis Resnick: And it's just Shawn for the second question on the process to select me pharmacy. So we spent a lot of time making sure we chose the right partner for E pharmacy.
Dennis Resnick: One of the most important criteria is we want to make sure we select an e-farmacy that already existed within the iCare Professional EMR ecosystem.
Dennis Resnick: You know what we did have wanted to select a pharmacy that's not already established in the I care offices.
Dennis Resnick: because honestly that takes work to set up all their EMR systems. So that was a key criteria. Another key criteria was actually the interface for the consumer. With us being consumer products, we wanted something that was sleek, easy to use, and a partner that had good follow-up to ensure compliance.
Dennis Resnick: So other factors that were behind those two, a speed of delivery, ability to handle high volume of actual scripts.
Dennis Resnick: and other partners, making sure that they work with other reputable partners as well. I'm not
Dennis Resnick: What was not in the selection process that's different than many other companies is their ability for prior offerization or insurance claim adjunication. That was not something that we put into the factors of we're involved in E pharmacy given the fact that this is a cash pay product.
That's super helpful [inaudible]
Dennis Resnick: Yes, so Denis, this is Dan Chevallard. I'll start the first part of that question and I'll pass it to Shawn to conclude it. So, the topic of recession is one that we certainly looked at. And as you think about relative risks for a product with our profile, we evaluate it.
Shawn Olsson: Medical Aesthetics Field, beauty category, medical procedures like basic dermatology and others, and I think.
Speaker Change: Reference, time points where you could look back to you to say, well gosh, how did those profiles or how did those categories behave? You don't have to go too far back to see how did these categories behave in the COVID era and then prior to that and that in the global financial crisis area era 2007 through 2011.
Speaker Change: Key takeaways, I think we would be naive to say that we're not immune, but historical precedent and that really suggests that the medical aesthetics category.
Speaker Change: And we'll use the neurotoxins and fillers as maybe the closest proxy to what we do.
Speaker Change: Potentially being impacted, but I think for a product like ours that impacts quality of life that has such a large addressable market and you could even kind of put it into a category like these medical aesthetics on the standpoint of consumerism and you could almost put this into a category like this.
Speaker Change: A Beauty-like view of this being becoming something that is viewed as an essential
Speaker Change: Just to quantify that, you could look at the categories that we're highlighting as it closes proxies and you get at the high end single digit negative impacts from a growth perspective at the peak of recession years, but all balance coming through an extremely strong way.
Speaker Change: Benantig on to that in terms of the targets and given what was just shared by Dan, though in terms of the first session was to happen, you know, our 88 rep field force, we believe is right size, you know, and it's really focused on 85% of all of beauty strips, so I wouldn't see that changing and given that middle potential impact that Dan just highlighted. Thank you very much.
Speaker Change: You know, we're already also focused, and you look at those 88 Raps North Territories, we're really focused in calling in those major metropolitan markets, you know, where you're focused on that higher exit consumer as well that has, you know, a little bit more resolve in those situations, so I don't see that all point changing. [inaudible]
Super helpful. Thanks, guys.
Matthew Caulfield: Your next question comes from the line of Matthew Caufield from H. C. Wainwright, please go ahead.
Thank you.
Hi guys, thanks for taking a question.
Speaker Change: So we were curious with the recent developments in the space regarding others, NDA submission and a product launch. Do you foresee specific scenarios where a prescriber could ultimately suggest an alternative approved eyedrop first prior to utilizing L&D 100 pending approval? Thanks a lot.
Shawn Olsson: Quick question, Matt, Shawn, I might start acting a little bit on that.
Shawn Olsson: I think ultimately, with these products, it's all around, doesn't work, yes or no. Do you achieve as a goal? At least the very significant on-the-fend.
Shawn Olsson: We've seen that with with beauty that was not the case, which was a high dose by the top and that clearly did not deliver that expectation on that expectation there for after our initial good launch, people didn't refill because it didn't work.
Shawn Olsson: It's a nut product that you can get people to say and use it for three months and maybe you know it's an effect. It's on the very first day, you either like it or you don't like it. And the liking it, it sort of comes down to a buzzer work.
Shawn Olsson: So it's hard to believe how honest currently on the market can achieve that, we'll see.
Shawn Olsson: We're very much focused on what we can deliver and that's where we know, can't if you just look at a clinical data, but especially also at the patient feedback and we share some of that at the commercial day. Thank you very much.
Shawn Olsson: How they're talking about the birds and how they've experienced that, you know, very first drop that went into their lives.
Shawn Olsson: And because of that, what you see us do is it's very heavy sampling, which is different than what I was doing. So...
Shawn Olsson: I'll even look at that, you know, it's hard to see that you'll be stuck in with one bike and that, and if you will graduate to something else, you know, sampling it on the key, and people pick the ones that they will like.
Speaker Change: Yeah, I'm just going to add on to that minorly. So again, I've been out there at the conferences. I've spoken to die care professionals. I've seen the data of the products you're talking about and I continue to see this as a category of one.
Speaker Change: Excellent, very helpful, and definitely looking forward to the Padufa. Thanks guys, congrats.
Thanks for that.
Speaker Change: That concludes our question and answer session, as I am showing no further questions.
Speaker Change: Thank you for your participation, and we will now conclude today's conference call. You may now disconnect.