Q1 2026 Pelthos Therapeutics Inc Earnings Call

May 14, 2026

Operator 2: Ladies and gentlemen, good morning, and welcome to the Pelthos Therapeutics 2026 Q1 Financial Results Conference Call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Moyer, from LifeSci Advisors. Please go ahead.

Operator: Ladies and gentlemen, good morning, and welcome to the Pelthos Therapeutics 2026 Q1 Financial Results Conference Call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Moyer, from LifeSci Advisors. Please go ahead.

Speaker #1: A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad.

Speaker #1: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Moyer from LifeSci Advisors. Please go ahead.

Speaker #2: Good morning, everyone, and welcome to the Peltos Therapeutics 2026 first quarter financial results conference call. Peltos issued a press release today announcing its financial results for the quarter-ended, March 31, 2026.

Mike Moyer: Good morning, everyone, welcome to the Pelthos Therapeutics 2026 Q1 financial results conference call. Pelthos issued a press release today announcing its financial results for the quarter ended 31 March 2026. A copy can be found in the investor relations tab on the corporate website, www.pelthos.com. Before we begin, I'd like to remind you that during today's call, statements about the company's future expectations, projections, plans, and prospects are forward-looking statements. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from our current expectations expressed or implied by the forward-looking statements. Any such forward-looking statements represent management's estimates as of the date of this conference call.

Speaker #2: A copy can be found in the investor relations tab on the corporate website, www.peltos.com. Before we begin, I'd like to remind you that during today's call, statements about the company's future expectations, projections, plans, and prospects are forward-looking statements.

Speaker #2: These forward-looking statements are based on management's current expectations; these statements are neither promises nor guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from our current expectations expressed or implied by the forward-looking statements.

Speaker #2: Any such forward-looking statements represent management's estimates as of the date of this conference call. While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change.

Mike Moyer: Any such forward-looking statements represent management's estimates as of the date of this conference call.

Mike Moyer: While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change. As a reminder, this conference call is being recorded and will remain available for 90 days. I'd now like to turn the floor over to Scott Plesha, Chief Executive Officer. Sir, you may begin.

Speaker #2: As a reminder, this conference call is being recorded and will remain available for 90 days. I'd now like to turn the floor over to Scott Plesha, Chief Executive Officer—Sir, you may begin.

Speaker #3: Thank you, Mike, and good morning, everyone. We're delighted to be with you today and to share with you our first quarter 2026 operating results and highlights.

Scott Plesha: Thank you, Mike. Good morning, everyone. We're delighted to be with you today and to share with you our Q1 2026 operating results and highlights. Joining me today are John Gay, our Chief Financial Officer, and Sy Rengero, our Chief Commercial Officer. The Q1 of 2026 was a successful one for Pelthos with strong execution and progress made in several key areas that I'll share at a high level with you. First, we experienced substantial revenue growth driven by increased prescriptions of our lead product, CC8464, during its Q3 since its launch. Next, we completed the expansion and optimization of our sales force from 50 sales representatives to 64. We believe that the expansion of our sales force and the contract we executed with a major pharmacy benefit manager in December 2025 have been important catalysts in demand for CC8464 since January.

Speaker #3: Joining me today are John Gay, our Chief Financial Officer; and Cyrene Garrow, our Chief Commercial Officer. The first quarter of 2026 was a successful one for Peltos, with strong execution and progress made in several key areas that I'll share at a high level with you.

Speaker #3: First, we experienced substantial revenue growth driven by increased prescriptions of our lead product, Zelsumi, during its third quarter since its launch. Next, we completed the expansion and optimization of our sales force from 50 sales representatives to 64.

Speaker #3: We believe that the expansion of our sales force and the contract we executed with a major pharmacy benefit manager in December 2025 have been important catalysts in demand for Zelsumi since January.

Speaker #3: Within this PBM, unit suspense has doubled and the number of prescribers has increased 121%. Finally, we continue to make progress in establishing the manufacturing of our two other highly complementary products, Zepi and Zeglise.

Scott Plesha: Within this PBM, unit dispense have doubled, and the number of prescribers has increased 121%. Finally, we continue to make progress in establishing the manufacturing of our two other highly complementary products, Zepi and Xeglyze. John and Sy will provide a more detailed look at the quarter's CC8464 launch metrics and reported financial results, but I'd like to share a brief overview of results of operations. Our top-line results were driven by a 25% increase in prescription units as reported by Symphony Health, which increased from 6,312 units in Q4 2025 to 7,884 units in Q1 2026.

Speaker #3: John and I will provide more detailed look at the quarter's Zelsumi launch metrics and reported financial results, but I'd like to share a brief overview of our results of operations.

Speaker #3: Our top-line results were driven by a 25% increase in prescription units as reported by Symphony Health, which increased from 6,312 units in the fourth quarter of 2025 to 7,884 units in the first quarter of 2026.

Speaker #3: This drove an increase in net product revenue from $9.1 million during the fourth quarter of 2025 to $10.7 million in the first quarter of 2026.

Scott Plesha: This drove an increase in net product revenue from $9.1 million during Q4 2025 to $10.7 million in Q1 2026. Importantly, we achieved this growth with only a minimal increase in wholesaler inventory while reducing the days on hand by more than 1 week from the end of Q4 2025 to the end of Q1 2026. As a reminder, CC8464 is a novel topical nitric oxide-releasing product indicated for the treatment of molluscum contagiosum, or MC, in patients 1 year of age and older for up to 12 weeks. CC8464 is an important advancement in the treatment of MC as it's the first and only FDA-approved therapy that can be applied by parents, patients, or caregivers in the home or on the go.

Speaker #3: Importantly, we achieved this growth with only a minimal increase in wholesaler inventory where our reducing the days on hand by more than one week from the end of Q4 2025 to the end of Q1 2026.

Speaker #3: As a reminder, Zelsumi is a novel topical nitric oxide releasing product indicated for the treatment of molluscum contagiosum, or MC, in patients one year of age and older for up to 12 weeks.

Speaker #3: Zelsumi is an important advancement in the treatment of MC as it's the first and only FDA-approved therapy that can be applied by parents, patients, or caregivers in the home or on the go.

Speaker #3: We believe the opportunity to treat MC at home, and without the need for an in-office procedure, has been and will continue to be a key driver of Zelsumi demand.

Scott Plesha: We believe the opportunity to treat MC at home and without the need for an in-office procedure has been and will continue to be a key driver of CC8464 demand. We are pleased with the growth delivered in Q1 and are confident we can build on our momentum as units dispensed during April 2026 increased to 3,776 from 3,309 units in March 2026, a 14.1% month-to-month increase. Regarding Zepi and Xeglyze. Zepi is a novel FDA-approved topical treatment for impetigo that addresses a critical unmet need in antibiotic-resistant skin infections caused by staph and strep infections, most commonly affecting children. Impetigo is the most common skin infection in children seen by pediatricians with approximately 3 million patients diagnosed with this bacterial infection each year.

Speaker #3: We are pleased with the growth delivered in Q1 and are confident we can build on our momentum as unit suspense during April 2026 increased to 3,776 from 3,309 units in March 2026, a 14.1% month-to-month increase.

Speaker #3: Regarding Zepi and Zeglise, Zepi is a novel FDA-approved topical treatment for impetigo that addresses a critical unmet need at antibiotic-resistant skin infections caused by staph and strep infections most commonly affecting children.

Speaker #3: Impetigo is the most common skin infection in children seen by pediatricians, with approximately 3 million patients diagnosed with this bacterial infection each year. We believe Zepi is a highly complementary product, as it mostly treats children that are managed by the same healthcare providers as Zelsumi.

Scott Plesha: We believe Zepi is a highly complementary product as it mostly treats children that are managed by the same healthcare providers as Xelsudmy. Importantly, this allows us to leverage our commercial infrastructure, including our expanded sales force. We continue to focus on establishing the manufacturing process and building launch inventory, expect to launch Zepi in early 2027. With respect to Xeglyze is a novel FDA-approved product that is highly complementary to Xelsudmy and Zepi and is expected to require minimal incremental overhead to commercialize. At the operational level, we are standing up manufacturing for Xeglyze and expect to bring it to market in mid-2027. Both Zepi and Xeglyze will have meaningful call overlap for existing sales force, providing the company with greater operational and financial leverage from our existing team and infrastructure.

Speaker #3: Importantly, this allows us to leverage our commercial infrastructure, including our expanded sales force, to continue to focus on establishing the manufacturing process and building launch inventory expected to launch Zepi in early 2027.

Speaker #3: With respect to Zeglise, Zeglise is a novel FDA-approved product that is highly complementary to Zelsumi and Zepi and is expected to require minimal incremental overhead to commercialize.

Speaker #3: At the operational level, we are standing up manufacturing for Zeglise and expect to bring it to market in mid-2027. Both Zepi and Zeglise will have meaningful call overlap for existing sales force, providing the company with greater operational and financial leverage from our existing team and infrastructure.

Speaker #3: Supporting our continued launch execution of Zelsumi and the launch preparation of Zepi and Zeglise we close a $50 million term debt loan in January 2026, of which we drew $30 million.

Scott Plesha: Supporting our continued launch execution of Xelsudmy and the launch preparation of Zepi and Xeglyze, we closed a $50 million term debt loan in January 2026, of which we drew $30 million. This additional capital strengthens our balance sheet and together with expected revenue growth, supports our current business plan. In summary, we are pleased with the strong response from healthcare professionals to Xelsudmy, as demonstrated by the more than 20,000 units dispensed since its launch in July 2025. We continue to plan for the upcoming launches of Zepi and Xeglyze, two complementary FDA-approved products. We'll continue to evaluate and optimize our commercial strategy to drive sustainable long-term shareholder value. I'll now turn it over to Cy to provide more specifics on the results of the Xelsudmy launch and key performance indicators. Cy?

Speaker #3: This additional capital strengthens our balance sheet and, together with the expected revenue growth, supports our current business plan. In summary, we are pleased with the strong response from healthcare professionals to Zelsumi, as demonstrated by the more than 20,000 units dispensed since its launch in July of 2025.

Speaker #3: We continue to plan for the upcoming launches of Zepi and Zeglise to complementary FDA-approved products. We'll continue to evaluate and optimize our commercial strategy to drive sustainable long-term shareholder value.

Speaker #3: I'll now turn it over to Cy to provide more specifics on the results of the Zelsumi launch and key performance. Cy?

Speaker #2: Thank you, Scott. Good morning, everyone. I'm pleased to provide an update on our Q1 2026 Zelsumi performance. Our progress to date continues to deliver better-than-expected results in just our third quarter since launch.

Sy Rengero: Thank you, Scott. Good morning, everyone. I'm pleased to provide an update on our Q1 2026 Xelsudmy performance. Our progress to date continues to deliver better than expected results in just our Q3 since launch. For Q1 2026, shipments and prescriptions were ahead of expectations. On the qualitative side, we continue to receive very positive feedback from HCPs, patients, and caregivers on the ease of use and efficacy of Xelsudmy. Getting into prescription details, the number of prescriptions rose a very strong 25% from 6,312 in Q4 2025 to 7,884 prescribed units in Q1 2026.

Sai Rangarao: Thank you, Scott. Good morning, everyone. I'm pleased to provide an update on our Q1 2026 Xelsudmy performance. Our progress to date continues to deliver better than expected results in just our Q3 since launch. For Q1 2026, shipments and prescriptions were ahead of expectations. On the qualitative side, we continue to receive very positive feedback from HCPs, patients, and caregivers on the ease of use and efficacy of Xelsudmy. Getting into prescription details, the number of prescriptions rose a very strong 25% from 6,312 in Q4 2025 to 7,884 prescribed units in Q1 2026.

Speaker #2: For Q1 2026, shipments and prescriptions were ahead of expectations. On the qualitative side, we continue to receive very positive feedback from HCPs, patients, and caregivers on the ease of use and efficacy of Zelsumi.

Speaker #2: Getting into prescription details, the number of prescriptions rose a very strong 25% from 6,312 in Q4 2025 to 7,884 prescribed units in Q1 2026.

Speaker #2: And the number of unique prescribers rose from 2,377 in the fourth quarter of 2025 to 3,228 by the end of the first quarter. With both sets of data reported in Symphony Metadata.

Sy Rengero: The number of unique prescribers rose from 2,377 in Q4 2025 to 3,228 by the end of Q1, with both sets of data reported in Symphony Health data. We are pleased with our sales force's ability to drive a significant increase in prescriptions in Q1, despite seasonal dynamics at the start of the year and severe weather conditions disrupting operations in January. Our belief remains strong that Zepi is revolutionizing the treatment of MC and is becoming the first line treatment of choice for many HCPs and patients. We affirm this confidence with the increased utilization of Zepi in April 2026. Prescribed units in April were 3,776 versus 3,309 in March.

Sai Rangarao: The number of unique prescribers rose from 2,377 in Q4 2025 to 3,228 by the end of Q1, with both sets of data reported in Symphony Health data. We are pleased with our sales force's ability to drive a significant increase in prescriptions in Q1, despite seasonal dynamics at the start of the year and severe weather conditions disrupting operations in January. Our belief remains strong that Zepi is revolutionizing the treatment of MC and is becoming the first line treatment of choice for many HCPs and patients. We affirm this confidence with the increased utilization of Zepi in April 2026. Prescribed units in April were 3,776 versus 3,309 in March.

Speaker #2: We are pleased with our sales force's ability to drive a significant increase in prescriptions in Q1. Despite seasonal dynamics at the start of the year, and severe weather conditions disrupting operations in January, our belief remains strong that Zelsumi's revolutionizing the treatment of MC and is becoming the first-line treatment of choice for many HCPs and patients.

Speaker #2: We affirm this confidence with the increased utilization of Zelsumi in April 2026. Prescribed units in April were 3,776 versus 3,309 in March. We continue to see weekly highs in our prescribed units with our latest data week ending May 1st, hitting an all-time high of 917 prescribed units.

Sy Rengero: We continue to see weekly highs in our prescribed units with our latest data week ending 1 May, hitting an all-time high of 917 prescribed units. Our coverage for Zelsoome remains strong in 2026. As of today, we have a 59% coverage rate for commercial insurance plans and an incredible 99% coverage rate for Medicaid. This is a testament to the fact that Zelsoome, as the first FDA-approved at home treatment for MC, is being adopted as a first-line treatment option and is being well received by HCPs and coverage providers. As previously announced, we executed a contract with a large PBM to remove friction and help gain access to Zelsoome for many patients. This effort has continued to help many patients gain rapid access to Zelsoome. For Medicaid coverage, a large number of states do not require a prior authorization.

Sai Rangarao: We continue to see weekly highs in our prescribed units with our latest data week ending 1 May, hitting an all-time high of 917 prescribed units. Our coverage for Zelsoome remains strong in 2026. As of today, we have a 59% coverage rate for commercial insurance plans and an incredible 99% coverage rate for Medicaid. This is a testament to the fact that Zelsoome, as the first FDA-approved at home treatment for MC, is being adopted as a first-line treatment option and is being well received by HCPs and coverage providers. As previously announced, we executed a contract with a large PBM to remove friction and help gain access to Zelsoome for many patients. This effort has continued to help many patients gain rapid access to Zelsoome. For Medicaid coverage, a large number of states do not require a prior authorization.

Speaker #2: Our coverage for Zelsumi remains strong in 2026. As of today, we have a 59% coverage rate for commercial insurance plans and an incredible 99% coverage rate for Medicaid.

Speaker #2: This is a testament to the fact that Zelsumi as the first FDA-approved at-home treatment for MC is being adopted as a first-line treatment option and is being well received by HCPs and coverage providers.

Speaker #2: As previously announced, we executed a contract with a large PBM to remove friction and help gain access to Zelsumi for many patients. This effort has continued to help many patients gain rapid access to Zelsumi.

Speaker #2: For Medicaid coverage, a large number of states do not require a prior authorization. For other states that require a PA, Medicaid only requires a prior authorization written to label.

Sy Rengero: For other states that require a PA, Medicaid only requires a prior authorization written to label, meaning that a patient over 1 year of age presenting with MC qualifies for coverage. We also continue to have very good Gross-to-Nets or GTNs. Our current GTNs largely revolve around distribution costs, Medicaid discounts, payer contracts, and our co-pay voucher program. It is our goal to pay down with the co-pay card program so that prescription costs are $0 or close to $0 for the patient in most instances. For Q1 2026, we had favorable GTNs of 29.1% in line with our expectations. Going forward, we are expecting our GTNs to move to the mid-30% range. Next, I would like to provide an update on our sales team.

Sai Rangarao: For other states that require a PA, Medicaid only requires a prior authorization written to label, meaning that a patient over 1 year of age presenting with MC qualifies for coverage. We also continue to have very good Gross-to-Nets or GTNs. Our current GTNs largely revolve around distribution costs, Medicaid discounts, payer contracts, and our co-pay voucher program. It is our goal to pay down with the co-pay card program so that prescription costs are $0 or close to $0 for the patient in most instances. For Q1 2026, we had favorable GTNs of 29.1% in line with our expectations. Going forward, we are expecting our GTNs to move to the mid-30% range. Next, I would like to provide an update on our sales team.

Speaker #2: Meaning that a patient over one year of age presenting with MC qualifies for coverage. We also continue to have very good gross-to-nets, or GTNs.

Speaker #2: Our current GTNs largely revolve around distribution costs, Medicaid discounts, payer contracts, and our copay voucher program. It is our goal to pay down with the copay card program so that prescription costs are $0 or close to $0 for the patient in most instances.

Speaker #2: For the first quarter of 2026, we had favorable GTNs of 29.1% in line with our expectations and going forward, we are expecting our GTNs to move to the mid-30% range.

Speaker #2: Next, I would like to provide an update on our sales team. As mentioned previously, we commenced the launch of Zelsumi in July 2025 with 50 territory managers.

Sy Rengero: As mentioned previously, we commenced the launch of Xelsudmy in July 2025 with 50 territory managers, placing them in locations based on the ICD-10 data of most prevalent MC cases. We announced an expansion of an additional 14 territory managers in Q4 2025 in metropolitan areas not previously supported by the original sales footprint. Q1 data suggests that this is a highly effective expansion, as prescriptions in many of those territories have jumped markedly to the point where in a very short time they have covered the costs of their sales efforts entirely. We continue to grow awareness and utilization for Xelsudmy as the first and only at-home prescription treatment option for MC through various channels and venues. Our Xelsudmy YouTube commercial continues to be very successful, with more than 6.7 million total views.

Sai Rangarao: As mentioned previously, we commenced the launch of Xelsudmy in July 2025 with 50 territory managers, placing them in locations based on the ICD-10 data of most prevalent MC cases. We announced an expansion of an additional 14 territory managers in Q4 2025 in metropolitan areas not previously supported by the original sales footprint. Q1 data suggests that this is a highly effective expansion, as prescriptions in many of those territories have jumped markedly to the point where in a very short time they have covered the costs of their sales efforts entirely. We continue to grow awareness and utilization for Xelsudmy as the first and only at-home prescription treatment option for MC through various channels and venues. Our Xelsudmy YouTube commercial continues to be very successful, with more than 6.7 million total views.

Speaker #2: Placing them in locations based on the ICD-10 data of most prevalent MC cases. We then announced an expansion of an additional 14 territory managers in Q4 2025 in metropolitan areas not previously supported by the original sales footprint.

Speaker #2: Q1 data suggests that this is a highly effective expansion as prescriptions in many of those territories have jumped markedly to the point where in a very short time, they have covered the costs of their sales efforts entirely.

Speaker #2: We continue to grow awareness and utilization for Zelsumi as the first and not only at-home prescription treatment option for MC through various channels and venues.

Speaker #2: Our Zelsumi YouTube commercial continues to be very successful, with more than 6.7 million total views. This unique and informative short-form video has prompted parents and caregivers, along with adult patients, to ask their HCPs about Zelsumi.

Sy Rengero: This unique and informative short-form video has prompted parents and caregivers, along with adult patients, to ask their HCPs about Xelsudmy. To further our digital outreach, we launched a new YouTube video in April featuring a real patient testimonial, including a young patient and a renowned pediatric dermatologist. This effort helps educate parents and caregivers on the benefits of treating MC with Xelsudmy. The video and others like it to follow also help HCPs understand the significant benefits Xelsudmy can provide for their patients very quickly. We will also continue to attend key conferences throughout 2026, educating HCPs on featured benefits of Xelsudmy for their patients. Our attendance and presentations at these meetings have garnered significant attention and generated vast HCP leads, resulting in significant prescriptions from many new prescribers. We continue to build off our great tactical platform, along with strong execution of our sales team to grow Xelsudmy.

Sai Rangarao: This unique and informative short-form video has prompted parents and caregivers, along with adult patients, to ask their HCPs about Xelsudmy. To further our digital outreach, we launched a new YouTube video in April featuring a real patient testimonial, including a young patient and a renowned pediatric dermatologist. This effort helps educate parents and caregivers on the benefits of treating MC with Xelsudmy. The video and others like it to follow also help HCPs understand the significant benefits Xelsudmy can provide for their patients very quickly. We will also continue to attend key conferences throughout 2026, educating HCPs on featured benefits of Xelsudmy for their patients. Our attendance and presentations at these meetings have garnered significant attention and generated vast HCP leads, resulting in significant prescriptions from many new prescribers.

Speaker #2: To further our digital outreach, we launched a new YouTube video in April featuring a real patient testimonial, including a young patient and a renowned pediatric dermatologist.

Speaker #2: This effort helps educate parents and caregivers on the benefits of treating MC with Zelsumi. The video, and others like it to follow, also help HCPs understand the significant benefits Zelsumi can provide for their patients very quickly.

Speaker #2: We will also continue to attend key conferences throughout 2026, educating HCPs on featured benefits of Zelsumi for their patients. Our attendance and presentations at these meetings have garnered significant attention and generated vast HCP leads, resulting in significant prescriptions from many new prescribers.

Speaker #2: We continue to build off our great tactical platform along with strong execution of our sales team to grow Zelsumi. I'm very pleased with our strong performance to date, alongside our highly passionate, dedicated, and hardworking commercial team.

Sai Rangarao: We continue to build off our great tactical platform, along with strong execution of our sales team to grow Xelsudmy.

Sy Rengero: I'm very pleased with our strong performance to date alongside our highly passionate, dedicated, and hardworking commercial team. With that, I now turn the call over to John to discuss our financials. John?

Sai Rangarao: I'm very pleased with our strong performance to date alongside our highly passionate, dedicated, and hardworking commercial team. With that, I now turn the call over to John to discuss our financials. John?

Speaker #2: And with that, I now turn the call over to John to discuss our financials. John?

Speaker #1: Thank you, Shai. Good morning, everyone. I am pleased to be with you on today's call, and thank you for joining us. As Scott and Shai have already touched on, we continue to see increasing demand for our flagship product, Zelsumi, as demonstrated by our growing pull-through and dispensed units to date.

John Gay: Thank you, Cy. Good morning, everyone. I am pleased to be with you on today's call, and thank you for joining us. As Scott and Cy have already touched on, we continue to see increasing demand for our flagship product, Xelsudmy, as demonstrated with our growing pull-through and dispensed units to date. Please note that my comments will focus on our Q1 2026 results as compared to the Q4 2025, as the Q1 2025 is not comparable due to the timing of our merger in July 2025. For the Q1 2026, we reported $10.7 million of net product revenue, representing a 17% increase from the Q4 2025.

Speaker #1: Please note that my comments will focus on our first quarter 2026 results, as compared to the fourth quarter of 2025, as the first quarter of 2025 is not comparable due to the timing of our merger in July of last year.

Speaker #1: For the first quarter of 2026, we reported $10.7 million of net product revenue, representing a 17% increase from the fourth quarter of 2025. With today's filings, including our quarterly report on Form 10Q, also filed this morning, we have now completed and reported on three full fiscal quarters of commercialization efforts for Zelsumi.

John Gay: With today's filings, including our quarterly report on Form 10-Q, also filed this morning, we have now completed and reported on three full fiscal quarters of commercialization efforts for Xelsudmy. While these quarters straddle two fiscal years, we have reported in aggregate $26.9 million of net product revenue for the three fiscal quarters since commercial launch of Xelsudmy in July 2025. This amount is comprised of our net product revenue from Q3 and Q4 of fiscal 2025 of $7.1 million and $9.1 million respectively, plus $10.7 million of net product revenue for Q1 2026. In both Q1 2026 and Q4 2025, cost of goods sold was $1.7 million.

Speaker #1: While these quarters straddle two fiscal years, we have reported in aggregate $26.9 million of net product revenue, with a three-fiscal-quarter period since the commercial launch of Zelsumi in July of 2025.

Speaker #1: This amount is comprised of our net product revenue from the third and fourth quarters of fiscal 2025 of $7.1 million and $9.1 million, respectively, plus $10.7 million of net product revenue for the first fiscal quarter of 2026.

Speaker #1: In both the first quarter of 2026 and fourth quarter of 2025, cost of goods sold was $1.7 million. During the fourth quarter of 2025, write-offs of inventory totaled $121,000, related to previously capitalized process validation expenses.

John Gay: During Q4 2025, write-offs of inventory totaled $121,000 related to previously capitalized process validation expenses. As discussed on prior calls, a component of our cost of goods sold includes fair value adjustments associated with the July 2025 merger. At the time of the merger, all finished goods and active pharmaceutical ingredient inventory on hand was fair valued as prescribed under US GAAP. We expect to run through the stepped-up fair value finished goods inventory by late summer of 2026 and approximately 12 to 15 months thereafter to consume the stepped-up fair value API inventory. Once we have sold all the inventory with a basis step-up, we expect to have a normalized per unit cost of goods sold of approximately a mid-single digit % of our current WAC price.

Speaker #1: As discussed on prior calls, a component of our cost of goods sold includes fair value adjustments, associated with the July 2025 merger. At the time of the merger, all finished goods and active pharmaceutical ingredient inventory on hand was fair valued, as prescribed under US GAAP.

Speaker #1: We expect to run through the stepped-up fair value finished goods inventory by late summer of 2026, and approximately $12 to $15 months thereafter to consume the stepped-up fair value API inventory.

Speaker #1: Once we have sold all the inventory with a basis step-up, we expect to have a normalized per unit cost of goods sold of approximately a mid-single-digit percentage of our current WACC price.

Speaker #1: For the first quarter of 2026, we reported $21.1 million of SGNA expenses, representing a 14% increase from the fourth quarter of 2025 at $18.5 million.

John Gay: For Q1 2026, we reported $21.1 million of SG&A expenses, representing a 14% increase from Q4 2025 at $18.5 million. We provide a detailed breakdown of the components of SG&A within the MD&A section of our quarterly report on Form 10-Q filed this morning.

Speaker #1: We provide a detailed breakdown of the components of SGNA within the MDNA section of our quarterly report on Form 10Q filed this morning, but in summary, the $2.6 million quarter-over-quarter change in SGNA was primarily related to an anticipated increase in total cash-based personnel cost of $1 million, which excludes stock-based compensation but includes the expended sales force, and expected increase in marketing and commercial spend supporting current and future net revenue growth of Zelsumi of $1.5 million, an increase in regulatory and manufacturing-related expenses of $1.2 million, an increase in royalties expense of $300,000, and non-cash depreciation expense of $200,000, and a reduction in corporate expenses of $1.6 million.

John Gay: In summary, the $2.6 million quarter-over-quarter change in SG&A was primarily related to an anticipated increase in total cash base personnel cost of $1 million, which excludes stock-based compensation but includes the expanded sales force, an expected increase in marketing and commercial spend supporting current and future net revenue growth of Xelsudmy of $1.5 million, an increase in regulatory and manufacturing-related expenses of $1.2 million, an increase in royalties expense of $300,000, and non-cash depreciation expense of $200,000, and a reduction in corporate expenses of $1.6 million.

Speaker #1: Total cash basis SGNA excluding royalties was approximately $16.9 million, for the first quarter of 2026, as compared to $14.7 million for the fourth quarter of 2025.

John Gay: Total cash basis SG&A, excluding royalties, was approximately $16.9 million for Q1 2026 as compared to $14.7 million for Q4 2025. We expect that quarterly cash basis SG&A, excluding royalties, will fluctuate in 2026 as we continue to invest in the expected growth of Xeglyze and as we prepare Zepi and Zeglers for commercialization. Interest expense for Q1 2026 was $2.4 million as compared to $1.3 million for Q4 2025. Interest expense is attributable to the company's existing convertible notes and its Horizon loan facility and the accounting treatment of certain royalty and purchase agreement obligations entered into by the company.

Speaker #1: We expect that quarterly cash basis SGNA excluding royalties will fluctuate in 2026, as we continue to invest in the expected growth of Zelsumi and as we prepare ZEPI and ZEGLAs for commercialization.

Speaker #1: Interest expense for the first quarter of 2026 was $2.4 million, as compared to $1.3 million for the fourth quarter of 2025. Interest expense is attributable to the company's existing convertible notes and its horizon loan facility, and the accounting treatment of certain royalty and purchase agreement obligations entered into by the company.

Speaker #1: Net loss for the first quarter of 2026 was $10.2 million, as compared to $21.7 million for the fourth quarter of 2025, whereas adjusted EBITDA for the first quarter of 2026 was a negative $8.0 million, as compared to a negative $7.6 million for the fourth quarter of 2025.

John Gay: Net loss for Q1 2026 was $10.2 million as compared to $21.7 million for Q4 2025. Adjusted EBITDA for Q1 2026 was -$8.0 million as compared to -$7.6 million for Q4 2025. Turning to our balance sheet. As of 31 March 2026, we had $32 million of cash and $11.7 million in accounts receivable. Our working capital at the end of Q1 2026 was $44.8 million as compared to $27.4 million at the end of Q4 2025.

Speaker #1: Now, turning to our balance sheet, as of March 31, 2026, we have $32 million of cash and $11.7 million in accounts receivable. Our working capital at the end of the first quarter of 2026 was $44.8 million, as compared to $27.4 million at the end of the fourth quarter of 2025.

Speaker #1: As Scott mentioned, during the first quarter, we entered into the Horizon loan facility which, after netting fees and expenses, added cash of $27.5 million to our balance sheet.

John Gay: As Scott mentioned, during the first quarter, we entered into the Horizon loan facility, which after netting fees and expenses, added cash of $27.5 million to our balance sheet. Based on current projections, including forecasted cash flows related to net product sales of Xeglyze and proceeds from the initial draw of the Horizon facility, we believe we have the capital and flexibility needed to advance and execute our business plans. In summary, our performance since the launch of Xeglyze in July of 2025 has exceeded our expectations. Furthermore, since launch, we have strengthened our balance sheet and believe we are well positioned to continue our commercial execution story, bringing a much-needed treatment to molluscum patients. With that, I will now turn it back over to Scott. Scott.

Speaker #1: Based on current projections including forecasted cash flows related to net product sales of Zelsumi and proceeds from the initial draw of the horizon facility, we believe we have the capital and flexibility needed to advance and execute our business plans.

Speaker #1: In summary, our performance since the launch of Zelsumi in July of 2025 has exceeded our expectations. Furthermore, since launch, we have strengthened our balance sheet and believe we are well positioned to continue our commercial execution story bringing a much-needed treatment to Moluscum patients.

Speaker #1: With that, I will now turn it back over to Scott. Scott.

Speaker #2: Thank you, John. In closing, I'd like to highlight a few key points. To begin, we are extremely pleased with the success of the Zelsumi launch and our financial results to date.

Scott Plesha: Thank you, John. In closing, I'd like to highlight a few key points. To begin, we are extremely pleased with the success of the Xeljanz launch and our financial results to date. As we remain relatively early in our launch, we have not yet provided discrete revenue and earnings guidance. However, we remain extremely confident about our revenue growth trajectory and believe that our current cash balance provides the runway to execute our business plan. I wanna thank you for joining us today to learn more about the Pelthos story, and will now turn the call over to the operator for any questions.

Speaker #2: As we remain relatively early in our launch, we have not yet provided a discrete revenue and earnings guidance. However, we remain extremely confident about our revenue growth trajectory and believe that our current cash balance provides a runway to execute our business plan.

Speaker #2: I want to thank you for joining us today to learn more about the Pelto story and will now turn the call over to the operator for any questions.

Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you'd like to ask a question, please press star and one on your telephone keypad.

Operator 2: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you'd like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we request you to limit to 1 question and 1 follow-up question per participant. One moment, please, while we poll for questions. We take the first question from the line of Olivia Brayer Saunders from Cantor Fitzgerald. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you'd like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we request you to limit to 1 question and 1 follow-up question per participant. One moment, please, while we poll for questions. We take the first question from the line of Olivia Brayer Saunders from Cantor Fitzgerald. Please go ahead.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star and two if you'd like to remove your question from the queue.

Speaker #3: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we request you to limit to one question and one follow-up question per participant.

Speaker #3: One moment, please, while we poll for questions. We take the first question from the line of Olivia Brayer from Cantor Fitzgerald. Please go ahead.

Olivia Brayer Saunders: Hi, good morning. Nice quarter and thank you for the question. What are you guys seeing at this point in terms of repeat prescribers? I know it's early, but can you quantify how many repeat prescribers you have at this point? Are you starting to see a bigger proportion of physicians that are actually increasing their written scripts of Xeglyze? Then on Gross-to-Net, when do you guys expect to actually hit that mid 30% range? Is that something that could happen by the end of this year? Is there a stepwise function or should we think about the step up over time over the course of the year any differently? Thank you so much, guys.

Olivia Brayer: Hi, good morning. Nice quarter and thank you for the question. What are you guys seeing at this point in terms of repeat prescribers? I know it's early, but can you quantify how many repeat prescribers you have at this point? Are you starting to see a bigger proportion of physicians that are actually increasing their written scripts of Xeglyze? Then on Gross-to-Net, when do you guys expect to actually hit that mid 30% range? Is that something that could happen by the end of this year? Is there a stepwise function or should we think about the step up over time over the course of the year any differently? Thank you so much, guys.

Speaker #4: Hi, good morning. Nice quarter and thank you for the question. What are you guys seeing at this point in terms of repeat prescribers? I know it's early, but can you quantify how many repeat prescribers you have at this point?

Speaker #4: And are you starting to see a bigger proportion of physicians that are actually increasing their written scripts of Zelsumi? And then on gross to net, when do you guys expect to actually hit that mid-30% range?

Speaker #4: Is that something that could happen by the end of this year? And is there a stepwise function, or should we think about the step up over time over the course of the year or any differently?

Speaker #4: Thank you so much, guys.

Speaker #2: Thanks for the questions, Olivia. This is Scott. So first off, regarding repeat prescribers, we've been varying courage with two important metrics. One is new prescribers.

Scott Plesha: Thanks, thanks for the questions, Olivia. This is Scott. First off, regarding repeat prescribers, we've been very encouraged with two important metrics. One is new prescribers. In any given week, really in the last month or two, we are seeing anywhere from 170 to 200 first-time prescribers. Really the highest levels we've seen since launch as far as adding new prescribers. Importantly, the repeat prescribers has been trending right along with our script trends. The most recent data week, for example, we had over 500 repeat prescribers, exactly 500 repeat prescribers, the highest level it's ever been. We're encouraged by not only new prescribers coming on, but those that are writing scripts over time and adopting the drug.

Speaker #2: At any given week, really, in the last month or two, we are seeing anywhere from 170 to 200 first-time prescribers. Really, the highest levels we've seen since launch, as far as adding new prescribers.

Speaker #2: But importantly, the repeat prescribers have been trending right along with our script trends. And the most recent data week, for example, we had over 500 repeat prescribers exactly 500 repeat prescribers, the highest level it's ever been.

Speaker #2: So we're encouraged by not only new prescribers coming on, but those that are writing scripts over time and adopting the drug. I'll let Cy go into a little bit more depth around that.

Scott Plesha: I'll let Frank K. Lee go into a little bit more depth around that.

Speaker #5: Yeah, thank you, Scott. Good morning, Olivia. Thanks for the question. So in addition to what Scott had mentioned, we see a tremendous amount of trial utilization currently based on our really high NRX numbers.

Sy Rengero: Yeah. Thank you, Scott. Good morning, Olivia. Thanks for the question. In addition to what Scott had mentioned, we see a tremendous amount of trial utilization currently based on our really high NRX numbers. A large proportion, as Scott mentioned, week over week, still continuously start to, again, repeat prescribe because they see the value it's been providing for their patients qualitatively. As we've mentioned on previous calls, we're starting to hear more of the product utilization and the efficacy a bit faster than what's in the packaged insert, which is really what's contributing to a lot more utilization amongst those prescribers. It is a key focus area for us commercially as well. I believe our strategy and our approach tactically is what's resulting in some of those efforts.

Sai Rangarao: Yeah. Thank you, Scott. Good morning, Olivia. Thanks for the question. In addition to what Scott had mentioned, we see a tremendous amount of trial utilization currently based on our really high NRX numbers. A large proportion, as Scott mentioned, week over week, still continuously start to, again, repeat prescribe because they see the value it's been providing for their patients qualitatively. As we've mentioned on previous calls, we're starting to hear more of the product utilization and the efficacy a bit faster than what's in the packaged insert, which is really what's contributing to a lot more utilization amongst those prescribers. It is a key focus area for us commercially as well. I believe our strategy and our approach tactically is what's resulting in some of those efforts.

Speaker #5: But a large proportion as Scott mentioned, week over week, still continuously start to, again, repeat prescribe, because they see the value it's been providing for their patients' qualitatively.

Speaker #5: And as we've mentioned on previous calls, we're starting to hear more of the product utilization and the efficacy a bit faster than what's in the packaged inserts, which is really what's contributing to a lot more utilization amongst those prescribers.

Speaker #5: It is a key focus area for us commercially as well. So I believe our strategy and our approach tactically is what's resulting in some of those efforts.

Speaker #2: Yeah, the last thing I'll add to that is we track our prescribers—the number of units they prescribed over time, obviously—and we have different bands that we look at.

Scott Plesha: The last thing I'll add to that is we track our prescribers, the number of units they prescribed over time, obviously, and we have different bands that we look at. If you were to compare Q4, Q1 to Q4, really in every band, we've seen a nice jump up in each different range, including those that have written over 100 units since we've launched. On the GTN side, you know, we're really encouraged by the ability to keep our GTNs below 30 so far, you know, as this quarter being at 29.1%. We do see that possibly going up in the future. We're evaluating whether we do a contract with another payer that has been, you know, more difficult than the others.

Speaker #2: And if you were to compare Q4, Q1 to Q4, really in every band, we've seen a nice jump up in each different range, including those that have written over 100 units since we've launched.

Speaker #2: Then on the GTN side, we're really encouraged by the ability to keep our GTNs below 30 so far, with this quarter being at 29.1%.

Speaker #2: We do see that possibly going up in the future. We're evaluating whether we do a contract with another payer that has been more difficult than the others.

Speaker #2: So it's always been our strategy to get into market and decide where we need to contract, where we don't. So I think that mid-30s gives us some headroom to do that if we want to do that contract.

Scott Plesha: It's always been our strategy to get into market and decide where we need to contract, where we don't. I think that mid-thirties gives us some headroom to do that if we want to do that contract. We don't know the timing. Again, a lot has to be decided there and worked through. You know, obviously right now at 29.1, it's very favorable to us.

Speaker #2: So, we don't know the timing, and again, a lot has to be decided there and worked through. But, right, obviously, right now at 29.1, it's very favorable to us.

Speaker #4: Okay, very helpful. Thank you, guys.

Olivia Brayer Saunders: Okay. Very helpful.

Olivia Brayer: Okay. Very helpful.

Scott Plesha: Thanks, Libby.

Olivia Brayer Saunders: Thank you, guys.

Olivia Brayer: Thank you, guys.

Speaker #3: Thank you. We take the next question from the line of David Amsalem from Piper Sandler. Please go ahead.

Operator 2: Thank you. We take the next question from the line of David Amsellem from Piper Sandler. Please go ahead.

Operator: Thank you. We take the next question from the line of David Amsellem from Piper Sandler. Please go ahead.

David Amsellem: Thanks. Just regarding the gross to net, I know it's going up, but thinking longer term, particularly as you consider other contracts, do you have a good read on what steady state will be? Is the mid to high 30s a good way of thinking about it? Secondly, how are you thinking about further sales force expansion down the road, particularly with Zepi and Xeglyze? Lastly, just latest thoughts on your willingness or appetite for adding another product to the bag, maybe not in the near term, just given the upcoming launches, but longer term as you think about further growth of the business. Thank you.

Speaker #6: Thanks. So just regarding the gross to net, I know it's going up, but thinking longer term, particularly as you consider other contracts, do you have a good read on what steady state will be?

Speaker #6: Is that mid to high 30s a good way of thinking about it? Secondly, how are you thinking about further Salesforce expansion down the road, particularly with Zeppy and Zeglyze?

Speaker #6: And then lastly, just latest thoughts on your willingness, your appetite for adding another product to the bag, maybe not in the near term, just given the upcoming launches, but longer term, as you think about further growth of the business.

Speaker #6: Thank you.

Scott Plesha: Yeah. Thanks, David. Appreciate the questions. I'll handle the GTN and then also adding the bag, and I'll let Cy address the expansion or potential expansion. On the GTNs, we feel very confident that the mid-thirties is a good number going forward, based on kind of what we see in front of us. Again, the ability maybe to do one more contract. We don't know and don't believe we'll have to do much beyond that. We're seeing very favorable approval rates. We feel like patients have very good affordable access. In fact, we've seen even, you know, the time to process PAs has gone down dramatically over the last, you know, few months here. That's all a positive.

Speaker #2: Yeah, thanks, David. Appreciate the questions. I'll handle the GTN and then adding to the and also adding the bag, and I'll let Cy address the expansion.

Speaker #2: A potential expansion. On the GTNs, we feel very confident to the mid-30s. Is a good number going forward. Based on kind of what we see in front of us, and again, the ability maybe to do one more contract, we don't know and don't believe we'll have to do much beyond that.

Speaker #2: We're seeing very favorable approval rates. We feel like patients have very good, affordable access. And in fact, we've seen even the time to process PAs has gone down dramatically over the last few months here.

Speaker #2: So that's all a positive. As far as adding the bag, obviously we've been very opportunistic in adding highly complementary products to Zelsumi. We'll continue to evaluate opportunities that present themselves to us.

Scott Plesha: As far as adding the bag, obviously, we've been very optimistic in adding highly complementary products to Xelsudmy. You know, we'll continue to evaluate opportunities that present themselves to us. You know, we're really trying to, you know, build a premier company here. They'd have to make sense. They'd have to fit. We don't wanna go off strategy and run off into a different specialty. We'll be very disciplined if we were to do that. For now, we need to get Xelsudmy launched, continuing down the path it's on with the same momentum. Need to get that right first and foremost, then layer in Zepi and Xeglyze. That's our focus now, trying to build the best company every morning when we wake up.

Speaker #2: We're really trying to build a premier company here. They'd have to make sense. They'd have to fit. We don't want to we don't want to go off strategy and run off into a different specialty.

Speaker #2: So, we'll be very disciplined if we were to do that. But for now, we need to get Zelsumi launched, continuing down the path it's on with the same momentum.

Speaker #2: We need to get that right first and foremost. And then layer in Zeppy and Zeglyze. So that's our focus now, trying to build the best company every morning when we wake up.

Speaker #2: And if something presents, we would definitely look at it. And I'll let Cy talk about Salesforce sizing.

Scott Plesha: If something presents, we would definitely look at it. I'll let Cy talk about sales force sizing.

Speaker #5: Yeah, thanks, Scott. And good morning, David. Just on the view of our expansion to date, our expansion that we announced basically earlier in the year and really deployed earlier in the year has been quite successful for us to date.

Sy Rengero: Yeah. Thanks, Scott Plesha, and good morning, David Amsellem. Just on the view of our expansion to date, our expansion that we announced, basically earlier in the year and really deployed earlier in the year has been quite successful for us to date. We're seeing increased scripts week over week from that cohort. In terms of Zepi and Xeglyze, our intent is for all of the field force, all 64 territory managers, to carry all three products. The way in which we've been operating is really ultimately earning the right to expand. Looking at our progress to date, looking at the weekly data and how that will roll up monthly, quarterly, and then decide upon some key areas.

Sai Rangarao: Yeah. Thanks, Scott Plesha, and good morning, David Amsellem. Just on the view of our expansion to date, our expansion that we announced, basically earlier in the year and really deployed earlier in the year has been quite successful for us to date. We're seeing increased scripts week over week from that cohort. In terms of Zepi and Xeglyze, our intent is for all of the field force, all 64 territory managers, to carry all three products. The way in which we've been operating is really ultimately earning the right to expand. Looking at our progress to date, looking at the weekly data and how that will roll up monthly, quarterly, and then decide upon some key areas.

Speaker #5: We're seeing increased scripts week over week from that cohort. In terms of Zeppy and Zeglyze, our intent is for all of the field force—all 64 territory managers—to carry all three products.

Speaker #5: And the way in which we've been operating is really ultimately earning the right to expand. So looking at our progress to date, looking at the weekly data and how that will roll up monthly, quarterly, and then decide upon some key areas.

Speaker #5: So we will actually, in fact, be adding three new additional territories here by June, and that's going to be specific areas like Albany, Pittsburgh, and Shreveport, Louisiana.

Sy Rengero: We will actually, in fact, be adding 3 new additional territories here by June, and that's gonna be specific areas like Albany, Pittsburgh, and Shreveport, Louisiana. Again, that was very tactically analyzed and really an opportunity for us to ensure that we can maximize the footprint. As of this point, no imminent expansion as we would call it, but looking at it tactically and really focused in a highly targeted and measured way.

Sai Rangarao: We will actually, in fact, be adding 3 new additional territories here by June, and that's gonna be specific areas like Albany, Pittsburgh, and Shreveport, Louisiana. Again, that was very tactically analyzed and really an opportunity for us to ensure that we can maximize the footprint. As of this point, no imminent expansion as we would call it, but looking at it tactically and really focused in a highly targeted and measured way.

Speaker #5: And again, that was very tactically analyzed and really an opportunity for us to ensure that we can maximize the footprint. So as of this point, no imminent expansion as we would call it, but looking at it tactically and really focused in a highly targeted and measured way.

Speaker #2: Yeah, the last thing I'll add, David, is that Zeppy and Zeglyze one of the reasons we really like those acquisitions is that it does not require us to expand our Salesforce around those products.

Scott Plesha: Yeah. The last thing I'll add, David, is that Zepi and Xeglyze, one of the reasons we really like those acquisitions is that does not require us to expand our sales force around those products. They're in the right offices calling on the right healthcare providers. It just allows us to leverage the team going forward. It's really about bringing other revenue into their bag, each and every day. Great fit for us.

Speaker #2: They're in the right offices calling on the right healthcare providers. It just allows us to leverage the team going forward. So it's really about bringing other revenue into their bag each and every day.

Speaker #2: So great fit for us.

Speaker #6: All right, thank you.

David Amsellem: All right, thank you.

Speaker #2: Thanks, David.

Scott Plesha: Thanks, David.

Speaker #3: Thank you. We take the next question from the line of Brandon Foulkes from HC Wainwright. Please go ahead.

Operator 2: Thank you. We take the next question from the line of Brandon Folkes from H.C. Wainwright. Please go ahead.

Operator: Thank you. We take the next question from the line of Brandon Folkes from H.C. Wainwright. Please go ahead.

Speaker #7: Hi, thanks for taking my questions and congratulates the quarter. Sorry if I missed this, but can you just remind us full updated on the split of business between Derms and pediatricians?

Brandon Folkes: Hi. Thanks for taking my questions, and congratulations on the quarter. Sorry if I missed this, but, you know, can you just remind us or update us on the split of business between derms and pediatricians? You know, obviously, you've had great success by far in Xelsudmy. Any color on how you think about the commercial infrastructure post the addition of the new reps and future investment from here, you know, especially with the two additional products potentially coming to market? Thank you.

Speaker #7: Obviously, you've had great success both on those two of me. Any color on how you think about the commercial infrastructure post the addition of the new reps and future investment from here?

Speaker #7: Especially with the two additional products potentially coming to market. Thank you.

Speaker #2: Yeah, so Brandon, I'll let Cy talk about the Derm Pete split and maybe then talk a little bit about infrastructure and spend around that the other launches going forward.

Scott Plesha: Yeah. Brandon, I'll let Cy talk about the derm ped split and maybe Talk a little bit about infrastructure and spend around that go, the other launches going forward.

Speaker #5: Yeah, sure. Good morning, Brandon. Thanks for the question. So the current distribution that we see definitely anchors more towards dermatology as we've mentioned previously being a cutaneous infectious disease product.

Sy Rengero: Yeah, sure. Good morning, good morning, Brandon. Thanks for the question. The current distribution that we see definitely anchors more towards dermatology. As we've mentioned previously, being a cutaneous infectious disease product, dermatology is usually where products like these and adjacent products typically get utilized the most and frequently. However, we have seen an increased utilization point amongst pediatricians, and that's a mix between standard pediatrics and the NPs and PAs that also support them. We see about 25% to 27% utilization in the pediatrics category. Again, anchoring a bit more towards dermatology and the overall, you know, kind of utilization points as they see it.

Sai Rangarao: Yeah, sure. Good morning, good morning, Brandon. Thanks for the question. The current distribution that we see definitely anchors more towards dermatology. As we've mentioned previously, being a cutaneous infectious disease product, dermatology is usually where products like these and adjacent products typically get utilized the most and frequently. However, we have seen an increased utilization point amongst pediatricians, and that's a mix between standard pediatrics and the NPs and PAs that also support them. We see about 25% to 27% utilization in the pediatrics category. Again, anchoring a bit more towards dermatology and the overall, you know, kind of utilization points as they see it.

Speaker #5: Dermatology is usually where products like these and adjacent products typically get utilized the most and frequently. However, we have seen an increased utilization point amongst pediatricians.

Speaker #5: And that's a mix between standard pediatrics and the NPs and PAs that also support them. So we see about 25 to 27 percent utilization in the pediatrics category.

Speaker #5: So again, anchoring a bit more towards dermatology and the overall kind of utilization points as they see it. In terms of the second part of the question around investment around commercial infrastructure, so aside from what we've already mentioned with the field force, we're really anchoring towards some really cost-effective, but highly impactful non-personal promotional efforts as I already mentioned in our prepared remarks.

Sy Rengero: In terms of the second part of the question around investment around commercial infrastructure, aside from what we've already mentioned with the field force, we're really anchoring towards some really cost-effective but highly impactful non-personal promotional efforts. As I already mentioned in our prepared remarks, we have some really high success utilizing platforms like YouTube, but we do also invest in other third-party platforms for where HCPs go to actually get their information. It comes across in a very objective manner about the clinical profile of the product. Ultimately, should they choose to utilize Xeljanz for appropriate patients, there's support mechanisms embedded within there for them to seamlessly prescribe.

Sai Rangarao: In terms of the second part of the question around investment around commercial infrastructure, aside from what we've already mentioned with the field force, we're really anchoring towards some really cost-effective but highly impactful non-personal promotional efforts. As I already mentioned in our prepared remarks, we have some really high success utilizing platforms like YouTube, but we do also invest in other third-party platforms for where HCPs go to actually get their information. It comes across in a very objective manner about the clinical profile of the product. Ultimately, should they choose to utilize Xeljanz for appropriate patients, there's support mechanisms embedded within there for them to seamlessly prescribe.

Speaker #5: We have some really high success utilizing platforms like YouTube, but we do also invest in other third-party platforms for where HCPs go to actually get their information and it comes across in a very objective manner about the clinical profile, the product, and then ultimately should they choose to utilize Zelsumi for appropriate patients, there is support mechanisms embedded within their for them to seamlessly prescribe.

Speaker #5: So we will continue to invest in those particular arenas because one, it's supportive of the HCP population, but also supportive of the patients, the caregivers, the parents that are seeking treatment.

Sy Rengero: We will continue to invest in those particular arenas because one, it's supportive of the HCP population, but also supportive of the patients, the caregivers, the parents that are seeking treatment. We will continue to monitor those to make sure again, that they're providing the intended results.

Sai Rangarao: We will continue to invest in those particular arenas because one, it's supportive of the HCP population, but also supportive of the patients, the caregivers, the parents that are seeking treatment. We will continue to monitor those to make sure again, that they're providing the intended results.

Speaker #5: And we will continue to monitor those to make sure, again, that they're providing the intended results.

Speaker #2: Yeah, what's nice about the little bit of time here with the Zeppy and Zeglyze launches, Brandon, is that we can also do more work with the different thought leaders, where also our Medical Affairs team has done a really nice job now of building up some interest in publications around these different products and their indications.

Scott Plesha: Yeah. What's nice about the in a little bit of time here with the Zepi and Xeglyze launches, Brandon, is that we can also, you know, do more work with the different thought leaders. We're also, our medical affairs team has done a really nice job now of building up some interest in publications around these different products and their indications. They'll actually be different posters and abstracts and publications that, you know, will be out in the public domain as we go to market too. Those are some things we're looking to put in place. Again, all, as Sai mentioned, all very cost-effective and, you know, most of our resources are going to Xeglyze.

Speaker #2: So they'll actually be different posters and abstracts and publications that will be out in the public domain as we go to market too. So those are some things we're looking to put in place.

Speaker #2: But again, I'll let Cy mention all very cost-effective and most of our resources are going to Zelsumi.

Speaker #3: Great, thank you very much. And congrats on a really good quarter.

Brandon Folkes: Great. Thank you very much, and congrats on a really good quarter.

Speaker #2: Thanks, Brandon.

Scott Plesha: Thanks, Brandon.

Speaker #3: Thank you. We take the next question from the line of Jeff Jones from Oppenheimer and Company. Please go ahead.

Operator 2: Thank you. We take the next question from the line of Jeff Jones from Oppenheimer & Company. Please go ahead.

Operator: Thank you. We take the next question from the line of Jeff Jones from Oppenheimer & Company. Please go ahead.

Speaker #4: Good morning, guys, and congrats on the really nice us. As we look ahead, 2026 and '27, where are you focusing in terms of growth?

Jeff Jones: Good morning, guys, and congrats on the really nice quarter. I guess two from us. As we look ahead 2026 and 2027, where are you focusing in terms of growth? Is it more new accounts or is it driving greater use within existing accounts? Which do you see contributing to the greatest extent in your forward revenue growth? Then drilling down on the pediatricians versus dermatologists, do you see this mix changing with more dermatologists or rather more pediatricians out there in the market and seeing these patients sooner? Can you comment on maybe the, where you're seeing the greatest traction within those accounts and maybe the pushback you see respectively?

Speaker #4: Is it more new accounts or is it driving greater use within existing accounts? And which do you see contributing to the greatest extent in your forward revenue growth?

Speaker #4: And then drilling down on the pediatricians versus dermatologists, do you see this mix changing with more dermatologists or rather more pediatricians out there in the market?

Speaker #4: And seeing these patients sooner? And what's the can you comment on maybe where you're seeing the greatest traction within those accounts and maybe the pushback you see with respect?

Speaker #2: So Jeff, I'll let Cy jump in on these questions and handle the new and repeat where we're focused as far as new prescribed depth or breadth, I guess, is the way to look at it, right?

Scott Plesha: Jeff, I'll let Sai jump in on these questions and handle the new and repeat what, you know, where we're focused as far as new prescribe depth or breadth, I guess, is the way to look at it, right?

Sy Rengero: Sure. Yeah. Thanks, Jeff. Good morning, Jeff. Thanks for the questions. Again, depth and breadth are really important metrics and really important areas that we focus on. We still very much are in launch mode. Obviously, we just completed only our Q3 in the launch, and we're deep into our Q4, really making sure that we're growing, you know, month-over-month. Depth and breadth are equally important today. As we mentioned earlier on this call, we are seeing a good amount of repeat prescribing, and that's where within that cohort, if you can get them to continuously prescribe, that really, again, helps the growth curve. We really do need to be adding on a tremendous amount of new prescribers, which we are doing at a high clip.

Sai Rangarao: Sure. Yeah. Thanks, Jeff. Good morning, Jeff. Thanks for the questions. Again, depth and breadth are really important metrics and really important areas that we focus on. We still very much are in launch mode. Obviously, we just completed only our Q3 in the launch, and we're deep into our Q4, really making sure that we're growing, you know, month-over-month. Depth and breadth are equally important today. As we mentioned earlier on this call, we are seeing a good amount of repeat prescribing, and that's where within that cohort, if you can get them to continuously prescribe, that really, again, helps the growth curve. We really do need to be adding on a tremendous amount of new prescribers, which we are doing at a high clip.

Speaker #5: Thanks, Scott. And good morning, Jeff. Thanks for the questions. So again, depth and breadth are really important metrics and really important areas that we focus on.

Speaker #5: We still very much are in launch mode. Obviously, we just completed only our third quarter in the launch and we're deep into our fourth quarter.

Speaker #5: Really making sure that we're growing month over month. So depth and breadth are equally important today. As we mentioned earlier on this call, we are seeing a good amount of repeat prescribing and that's where within that cohort, if you can get them to continuously prescribe, that really, again, helps the growth curve.

Speaker #5: But we really do need to be adding on a tremendous amount of new prescribers, which we are doing at a high clip. So I would say both areas are equally important and we're really focused on them.

Sy Rengero: I would say both, you know, areas are equally important and we're really focused on them. I would say, you know, week over week, we're seeing that the numbers are increasing across the board. From a derm, ped split and in terms of utilization, as I mentioned, definitely a higher extent of dermatologist utilization as expected. The growth in peds, I think is above our expectations at this point, the fact that they are looking for an at home, first line treatment option, which we are positioned very well within those particular accounts. Really I would say, we expect, you know, both categories, if you will, of derms and peds at large, and the NPs and PAs that support them to grow with volume.

Sai Rangarao: I would say both, you know, areas are equally important and we're really focused on them. I would say, you know, week over week, we're seeing that the numbers are increasing across the board. From a derm, ped split and in terms of utilization, as I mentioned, definitely a higher extent of dermatologist utilization as expected. The growth in peds, I think is above our expectations at this point, the fact that they are looking for an at home, first line treatment option, which we are positioned very well within those particular accounts. Really I would say, we expect, you know, both categories, if you will, of derms and peds at large, and the NPs and PAs that support them to grow with volume.

Speaker #5: And I would say week over week we're seeing that the numbers are increasing across the board. From a derm Pete split and in terms of utilization, as I mentioned, definitely a higher extent of dermatologists utilization as expected.

Speaker #5: But the growth in peds, I think, is above our expectations at this point. And the fact that there are looking for an at-home first-line treatment option, which we are physicianed very well within those particular accounts.

Speaker #5: And so really, I would say we expect both categories, if you will, of derms and peds at large and the NPs and PAs that support them to grow with volume.

Speaker #5: So, as we grow quarter over quarter here, we should see both cohorts start to grow, and we should intend to see the pediatric side of things grow markedly with that as well.

Sy Rengero: As we grow, quarter over quarter here, we should see both cohorts, you know, start to grow and we should intend to see the pediatric side of things grow markedly with that as well. As per your last question around any pushback, to date, we have not received any clinical pushback. The profile, as we are out there promoting and educating through our venues commercially and within our medical affairs team, the clinical profile has been received very, very well, and the real world utilization has also been received incredibly well.

Sai Rangarao: As we grow, quarter over quarter here, we should see both cohorts, you know, start to grow and we should intend to see the pediatric side of things grow markedly with that as well. As per your last question around any pushback, to date, we have not received any clinical pushback. The profile, as we are out there promoting and educating through our venues commercially and within our medical affairs team, the clinical profile has been received very, very well, and the real world utilization has also been received incredibly well.

Speaker #5: And as per your last question around any pushback, to date we have not received any clinical pushback. The profile as we are out there promoting and educating through our venue's commercially and within our medical affairs team, the clinical profile has been received very, very well in the real-world utilization.

Speaker #5: Has also been received incredibly well. So the only types of pushbacks that we would typically hear and see are going to be access-related, by which we have a tremendous amount of resources that help with the PA medical necessity process, a robust copay card program, and really to intend that we're able to deal with any kind of friction or challenges and really that's why we brought on that additional payer earlier on or late last year into this year.

Sy Rengero: The only types of pushbacks that we would typically hear and see are going to be access related by which we have a tremendous amount of resources that help with the PA medical necessity process, a robust, co-pay card program, and really to intend that we're able to deal with any kind of friction or challenges. That's why we brought on that additional payer earlier on or late last year into this year. Those are the measures that we really have in place with our stellar commercial team to date. Great. Really appreciate it, guys. Thanks.

Sai Rangarao: The only types of pushbacks that we would typically hear and see are going to be access related by which we have a tremendous amount of resources that help with the PA medical necessity process, a robust, co-pay card program, and really to intend that we're able to deal with any kind of friction or challenges. That's why we brought on that additional payer earlier on or late last year into this year. Those are the measures that we really have in place with our stellar commercial team to date. Great. Really appreciate it, guys. Thanks.

Speaker #5: So those are the measures that we really have in place with our seller commercial team to date.

Speaker #4: Great. Really appreciate it, guys. Thanks.

Speaker #2: Thanks, Jeff.

Scott Plesha: Thanks, John.

Speaker #3: Thank you. We take the next question from the line of Thomas Flatten from Lakestreet Capital Markets. Please go ahead.

Operator 2: Thank you. We take the next question from the line of Thomas Flaten from Lake Street Capital Markets. Please go ahead.

Operator: Thank you. We take the next question from the line of Thomas Flaten from Lake Street Capital Markets. Please go ahead.

Speaker #5: Hey, good morning, guys. Thanks for taking the questions. Cy, just perhaps an obvious question, but I want to ask it. With the, I think, anchoring is the word you used in the derms versus peds, does that align with how you're targeting is designed as well, or is that just more happenstance where derms have been the quicker adopters and peds are coming on board later?

Thomas Flaten: Hey, good morning, guys. Thanks for taking the questions. Cy, just, perhaps an obvious question, but I wanna ask it. With the I think anchoring is the word you used in the derms versus pedes, does that align with how your targeting is designed as well, or is that just more happenstance where derms have been the quicker adopters and pedes are coming on board later?

Speaker #5: Yeah, thanks for the question, Thomas. So I would say there's an equal amount of focus on both categories from a targeting standpoint and what we do both personally and non-personally.

Sy Rengero: Yeah. Thanks for the question, Thomas. I would say there's an equal amount of focus on both categories from a targeting standpoint in what we do both personally and non-personally. I think because the dermatology community is historically the specialty that's been, let's say, referred to for the disease state, they are the obvious initial treaters. The ramp that we've seen from launch to date, again, ahead of our expectations in pediatric utilization, primarily because of our promotional and educational efforts to the category, have then garnered the increase that we see here at this point. That's, again, an increase that's occurring month over month within the pediatric category.

Sai Rangarao: Yeah. Thanks for the question, Thomas. I would say there's an equal amount of focus on both categories from a targeting standpoint in what we do both personally and non-personally. I think because the dermatology community is historically the specialty that's been, let's say, referred to for the disease state, they are the obvious initial treaters. The ramp that we've seen from launch to date, again, ahead of our expectations in pediatric utilization, primarily because of our promotional and educational efforts to the category, have then garnered the increase that we see here at this point. That's, again, an increase that's occurring month over month within the pediatric category.

Speaker #5: I think because the dermatology community is historically the specialty that's been, let's say, referred to for the disease state, they are the obvious initial treaters.

Speaker #5: But the ramp that we've seen from launch to date, again, ahead of our expectations and pediatric utilization primarily because of our promotional and educational efforts to the category, have then garnered the increase that we see here at this point.

Speaker #5: And that's, again, an increase that's occurring month over month within the pediatric category. So I think, again, our efforts are aligned equally and I think we'll provide the end results as we go forward.

Sy Rengero: I think, again, our efforts are aligned equally, and I think we'll provide the end results as we go forward, and quite frankly, will help the future product portfolio in that same manner.

Sai Rangarao: I think, again, our efforts are aligned equally, and I think we'll provide the end results as we go forward, and quite frankly, will help the future product portfolio in that same manner.

Speaker #5: And, quite frankly, we'll help the future product portfolio in that same manner.

Speaker #2: Yeah, the last thing on that, Thomas—can I just add on that, Thomas? This is Scott really quick. I think you also have to look at historically what those two different specialties have done when they've seen molluscum, and the derms, based on claims data, over 50% of the time—50 to 60% of the time—they're actually treating prior to us launching.

Scott Plesha: Yeah.

Sy Rengero: And-

Sai Rangarao: And-

Scott Plesha: Thomas, Can I just add on it, Thomas? This is Scott Plesha, really quick. I think you also have to look at historically what those two different specialties have done when they've seen molluscum. The derms, based on claims data, over 50% of the time, 50% to 60% of the time, they actually were treating prior to us launching. What I mean by that, they were doing a destructive modality typically. In the pede space, it was probably only 10% to 15% of the time did they actually do a destructive modality and treat, and they typically would take a more wait and see approach.

Speaker #2: So, what I mean by that is, they were doing a destructive modality typically, and then in the peds space, it was probably only 10 to 15% of the time that they actually did a destructive modality and treat.

Speaker #2: And they typically would take a more wait-and-see approach, and I think that's why you'll actually see about half the patients that get to a derm are referred by a ped, because they don't treat; the disease progresses and it ends up in the derm practice.

Scott Plesha: I think that's why you actually see about half the patients that get to a derm are referred by a pede because they don't treat, the disease progresses, and it ends up in the derm practice. We believe that, you know, with a at-home choice that's very importantly safe and efficacious, that, you know, we can change that paradigm and they'll start adopting the drug if they actually have something. 'Cause the parents are taking kids in wanting to be treated. When they say, Wait and see, that doesn't go over very well with the parents, and they're looking for options. I think, you know, being the first FDA-approved at-home therapy is, you know, kind of game changing for the pediatric practice. I think it's just gonna take some time there.

Speaker #2: So we believe that with an at-home choice that's very importantly safe and efficacious, that we can change that paradigm and they can they'll start adopting the drug because they actually have something because the parents are taking kids in wanting to be treated.

Speaker #2: And when they say wait and see, that doesn't go over very well with the parents and they're looking for options. So I think being the first FDA-approved at-home therapy is kind of game-changing for the pediatric practice.

Speaker #2: And I think it's just going to take some time there.

Speaker #3: Well, yeah, it's interesting. And you kind of alluded to it, Scott. Where I was going with this was, I was curious—what we've heard from derms is they'd rather not see the MC patients at all.

Thomas Flaten: Well, yeah, it's interesting, and you kind of alluded to it, Scott. Where I was going with this was I was curious. You know, what we've heard from derms is they'd rather not see the MC patients at all. They'd rather, you know, be doing something that's far more profitable. I'm curious if there would be a long-term opportunity for you guys to help the derms leverage their referral networks to keep the MC patients out of their practice and allow the pedes to treat them primarily.

Speaker #3: They'd rather be doing something that's far more profitable. And I'm curious if there would be a long-term opportunity for you guys to help the derms leverage the referral networks to keep the MC patients out of their practice and allow the peds to treat them primarily.

Speaker #5: Yeah, it's a great point, Thomas. This is Cy. And I was actually going to mention that, but didn't want to elongate the commentary. But we are already beginning to do that more so.

Sy Rengero: Yeah. It's a great point, Thomas. This is Cy. I was actually gonna mention that, but didn't wanna elongate the commentary. We are already beginning to do that more so, where we have our dermatologists really being, as the word we've been using this morning, the anchor to really making sure they convey the messaging to those pediatricians out there who are indeed first line, as you mentioned. That is something we are doing today, and I believe that is actually helping the increased cohort of utilization. I think over time, as mentioned, with volume, we'll start to see the specialty increase more so within general pedes and, again, the supportive staff that they do have, treating the disease, again, because they see it at first line.

Sai Rangarao: Yeah. It's a great point, Thomas. This is Cy. I was actually gonna mention that, but didn't wanna elongate the commentary. We are already beginning to do that more so, where we have our dermatologists really being, as the word we've been using this morning, the anchor to really making sure they convey the messaging to those pediatricians out there who are indeed first line, as you mentioned. That is something we are doing today, and I believe that is actually helping the increased cohort of utilization. I think over time, as mentioned, with volume, we'll start to see the specialty increase more so within general pedes and, again, the supportive staff that they do have, treating the disease, again, because they see it at first line.

Speaker #5: Where we have our dermatologists really being as the work we've been using this morning, the anchor to really making sure they convey the messaging to those pediatricians out there who are indeed first line, as you mentioned.

Speaker #5: So that is something we are doing today. And I believe that is actually helping the increased cohort of utilization. I think over time, as mentioned, with volume, we'll start to see the specialty increase more so within general peds.

Speaker #5: And again, the supportive staff that they do have treating the disease—again, because they see it first line—and we, being a first and only at-home treatment option, truly will be a great benefit to them, along with the strong clinical profile.

Sy Rengero: We being a first and only at-home treatment option truly will be a great benefit to them along with the strong clinical profile.

Sai Rangarao: We being a first and only at-home treatment option truly will be a great benefit to them along with the strong clinical profile.

Speaker #3: Excellent. Thanks, gentlemen.

Thomas Flaten: Excellent. Thanks, gentlemen.

Speaker #5: Thank you.

Sy Rengero: Thank you.

Sai Rangarao: Thank you.

Speaker #2: Thanks, Thomas.

Scott Plesha: Thanks, Thomas.

Speaker #3: Thank you. We take the next question from the line of Jonathan Askoff from Roth MKM. Please go ahead.

Operator 2: Thank you. We take the next question from the line of Jonathan Aschoff from Roth MKM. Please go ahead.

Operator: Thank you. We take the next question from the line of Jonathan Aschoff from Roth MKM. Please go ahead.

Speaker #4: Thanks, guys. Congrats on the quarter. I was just curious, what is the average number of prescriptions it takes to either cure a patient or at least for them to stop ordering it?

Jonathan Aschoff: Thanks, guys. Congrats on the quarter. I was just curious, what is the average number of prescriptions it takes, you know, to either cure a patient or at least for them to stop ordering it? I just really can't tell that difference. Given all the trials that this product's been in the hands of a Novan, are you aware of any off-label use?

Speaker #4: I guess you really can't tell that difference. And given all the trials that this product's been in the hands of a Novan, are you aware of any off-label use?

Speaker #2: Okay, Jonathan. So I'll take the first question. So what we're seeing in the data as far as units so every patient's different. So we really can't say there's an average number to complete clearance, which is kind of the gold standard here, the ultimate goal.

Scott Plesha: Okay, Jonathan. I'll take the first question. What we're seeing in the data as far as units. Every patient's different, we really can't say there's an average number to complete clearance, which is kind of the, you know, the gold standard here, you know, the ultimate goal. What we do know is if you can get at least a 50% clearance, that it's clinically meaningful. That's what we hear over and over again from our KOLs. What we do see in our data is probably about 1.2 to 1.3 units per patient. And, you know, if they were using it, you know, per the directions, using a dosing card and use that exact amount every time, that would last 30 days.

Speaker #2: What we do know is if you can get at least a 50% clearance that is clinically meaningful, that's what we hear over and over again from our KOLs.

Speaker #2: What we do see in our data is probably about one 1.2 to 1.3 units per patient. And if the directions using a dosing card and use that exact amount every time, that would last 30 days.

Speaker #2: We do know, obviously, in the real world, people miss doses. We saw it in our studies even. In our studies, it didn't impact efficacy.

Scott Plesha: We do know, obviously in the real world, people miss doses. We saw it in our studies even. In our studies, it didn't impact efficacy. You know, there may be that. They may not be using as much as the dosing card, you know, indicates to use. We do think it's getting extended for those 2 reasons also. You know, somebody that only uses 1 tube may be stretching it to 1 and a half to 2 months' worth of therapy for all we know. But we can say that it is about 1.3 units per patient. And then I'll let Cy jump in and provide additional details here?

Speaker #2: There may be that. There may not be using as much as the dosing card indicates to use. So we do think it's getting extended for those two reasons also.

Speaker #2: So somebody that only uses one tube may be stretching it to one and a half, two months' worth of therapy for all we know.

Speaker #2: So but we can say that it is about 1.3 units per patient. And then I'll let Cy jump in and provide additional details here.

Speaker #5: Yeah, just to add on to the commentary, I think qualitatively, we keep hearing that the product is working a lot faster than what's suggested within our package insert, which is a great situation to be a part of because the efficacy and coupled with the safety mechanisms when utilized correctly, we're hearing a lot of really great stories and patient testimonials through the patients themselves and the HCPs that are supporting them.

Sy Rengero: Just to add on to the commentary, I think qualitatively we keep hearing that the product is working a lot faster than what's suggested within our package insert, which is a great situation to be a part of because the efficacy and coupled with the safety mechanisms when, you know, utilized correctly, we're hearing a lot of really great stories and patient testimonials through the patients themselves and the HCPs that are supporting them about the faster results of the product. Qualitatively, that is definitely contributing to where, if we think about it from a refill standpoint, we're seeing, you know, increased NRXs, less refills predominantly because of the clinical profile that's working a lot faster for those patients.

Sai Rangarao: Just to add on to the commentary, I think qualitatively we keep hearing that the product is working a lot faster than what's suggested within our package insert, which is a great situation to be a part of because the efficacy and coupled with the safety mechanisms when, you know, utilized correctly, we're hearing a lot of really great stories and patient testimonials through the patients themselves and the HCPs that are supporting them about the faster results of the product. Qualitatively, that is definitely contributing to where, if we think about it from a refill standpoint, we're seeing, you know, increased NRXs, less refills predominantly because of the clinical profile that's working a lot faster for those patients.

Speaker #5: About the faster results of the product—so, qualitatively, that is definitely contributing to where, if we think about it from a refill standpoint, we're seeing increased NRXs, less refills, predominantly because of the clinical profile that's working a lot faster for those patients.

Speaker #2: Yeah, regarding off-label, obviously, we don't track that—first off, to be clear. The reps obviously are trying to be highly compliant. And we do have an avenue or an outlet for questions that are off-label to go through Medical Affairs and handle appropriately.

Scott Plesha: Regarding off-label, obviously we're, we don't track that first off to, you know, to be clear. The reps obviously are trained to be highly compliant, and we do have an avenue or an outlet for questions that are off-label to go through medical affairs and handled appropriately. I'd say that the areas we see the most questions around are the use in common warts, as well as genital warts. Those are probably the two most-

Speaker #2: I'd say that the areas we see the most questions around are the use in common warts, as well as genital warts. Those are probably too much.

Jonathan Aschoff: No actual You know, I mean, the reps have ears, so no actual prescriptions there that you're actually aware of.

Speaker #4: But no actual I mean, the reps have ears. So no actual prescriptions there that you're actually aware of.

Speaker #5: Yeah, this is Cy. I can address that. So there is no situation compliantly and legally where we have our reps entertaining any of those conversations or responding to them.

Sy Rengero: Yeah. This is Frank K. Lee. I can address that. There is no situation compliantly and legally where we have our reps entertaining any of those conversations or responding to them. Regardless of what they might hear qualitatively out there, all those questions and commentary, to Scott's point, are directed through a very specific and compliant channel, which is our medical inquiry request form, which then is handled directly from our medical affairs team. There is nothing that is shared directly from them to anyone as they are trained compliantly.

Sai Rangarao: Yeah. This is Frank K. Lee. I can address that. There is no situation compliantly and legally where we have our reps entertaining any of those conversations or responding to them. Regardless of what they might hear qualitatively out there, all those questions and commentary, to Scott's point, are directed through a very specific and compliant channel, which is our medical inquiry request form, which then is handled directly from our medical affairs team. There is nothing that is shared directly from them to anyone as they are trained compliantly.

Speaker #5: So regardless of what they might hear qualitatively out there, all those questions and commentary to Scott's point are directed through a very specific and compliant channel, which is our medical inquiry request form, which then is handled directly from a medical affairs team.

Speaker #5: So, there is nothing that is shared directly from them to anyone, as they're trained compliantly.

Jonathan Aschoff: Okay. Thank you for that. Lastly, you know, given this ease of administration compared to some other approaches, that are a lot more hands-on, do you foresee that maybe disrupting the seasonality of treatment, making people, you know, more willing to treat in those colder months where it's just not that much of a decision to make to get treatment 'cause it, you know, it's a lot easier, simpler for the patient?

Speaker #4: Okay, thank you for that. Lastly, given this ease of administration, compared to some other approaches, that are a lot more hands-on, do you foresee that maybe disrupting the seasonality of treatment, making people more willing to treat in those colder months where it's just not that much of a decision to make to get treatment just because it's a lot easier, simpler for the patient?

Speaker #2: Well, first off, there are a lot of patients not seeking treatment. And I think just having an at-home option that doesn't require a procedure will definitely drive patients in over time.

Scott Plesha: Well, first off, there are a lot of patients not seeking treatment. I think just having an at-home option that doesn't require a procedure will definitely drive patients in over time. There's still work to be done there. We've seen, you know, our YouTube commercial, we've seen 6.5 million views there. People are definitely going and trying to learn. Really, Jonathan, I think the seasonality also is tied a little bit to just offices being open or not. Being an acute medication for the most part, where we're really driven by new prescriptions, if an office is shut down or closed, or just reduced staffing for, you know, 2, 3 days, you know, in December, November, that can have an impact on those months.

Speaker #2: They're still work to be done there. And we've seen our YouTube commercial. We've seen 6 and a half million going and trying to learn.

Speaker #2: Really Jonathan, I think the seasonality also is tied a little bit to just offices being open or not. So being in an acute medication for the most part where we're really driven by new prescriptions, if an office is shut down or closed or just reduced staffing for two, three days, in December, November, that can have an impact on those months.

Speaker #2: You can lose 10 to 15 percent of the business or the opportunity to treat patients, so I think that's probably a bigger part of it than, and then obviously weather.

Scott Plesha: You can lose 10%, 15% of the business, or the opportunity to treat patients. I think that's probably a bigger part of it than, you know. Then obviously weather. We saw a big weather impact in the Northeast, and even parts of the Midwest this year. It's that, and then if you think about it, you're covered up more too. You know, so it probably isn't as visible. People aren't asking about it, so kids aren't, you know, feeling like people are saying, You know, what's on your skin? What is that? They start feeling anxious. Parent takes them in because, you know, they're upset. You're covered up, and it's less likely to be visible to others.

Speaker #2: If we saw a big weather impact in the Northeast and even parts of the Midwest this year, so, so it's that. And then if you think about it, you're covered up more too.

Speaker #2: So it probably isn't as visible. People aren't asking about it. So kids aren't feeling like people are saying, "Hey, what's that on your what's on your skin?

Speaker #2: What is that?" They start feeling anxious. Parent takes them in because they're upset. And so you're covered up and it's less likely to be visible to others.

Jonathan Aschoff: Got you. Thank you very much, guys.

Speaker #4: Gotcha. Thank you very much, guys.

Jonathan Aschoff: Got you. Thank you very much, guys.

Speaker #2: Yep. Thank you, Jonathan.

Scott Plesha: Yep. Thank you, Jonathan.

Speaker #6: Thank you. We take the next question from the line of James Malloy from Alliance Global Partners. Please go ahead.

Operator 2: Thank you. Let me take the next question from the line of James Molloy from Alliance Global Partners. Please go ahead.

Operator: Thank you. Let me take the next question from the line of James Molloy from Alliance Global Partners. Please go ahead.

Speaker #7: Hi, guys. Thanks for taking our questions. Matt on for Jim today. And congrats on the quarter. Just one or two for us. Do you have any color on the percentage of scripts written by telehealth providers?

[Analyst] (Alliance Global Partners): Hi, guys. Thanks for taking our questions. Matt on for Jim today, and congrats on the quarter. Just one, well, two for us. Do you have any color on the percentage of scripts written by telehealth providers and/or fulfilled by Amazon Pharmacy or similar services kind of directly to the patients? Any color would be great there. Thank you.

Matt Venezia: Hi, guys. Thanks for taking our questions. Matt on for Jim today, and congrats on the quarter. Just one, well, two for us. Do you have any color on the percentage of scripts written by telehealth providers and/or fulfilled by Amazon Pharmacy or similar services kind of directly to the patients? Any color would be great there. Thank you.

Speaker #7: And/or fulfilled by Amazon Pharmacy or similar services kind of directly to the patients? Any color would be great there. Thank you.

Speaker #5: Yeah, good morning, Matt. This is Cy. Thanks for the question. From a distribution standpoint on mail order, we see that probably closer to the 10% range of all of our prescriptions that are distributed via traditional retail channels.

Sy Rengero: Hey, good morning, Matt. This is Frank K. Lee. Thanks for the question. From a distribution standpoint on mail order, we see that, probably closer to the 10% range of all of our prescriptions that are distributed via traditional retail channels or pharmacy channels. Again, Amazon is mixed in within that traditional mail order channel, just around 10%. From the breakdown of telehealth versus in-office, it is actually not a metric that we can break down objectively because even offices that see patients live also have a component of their office that's telehealth, though, so it's not really marked as that in our data. They might mark that as their data within their respective practice. We don't really have an objective measure that I can share with you.

Sai Rangarao: Hey, good morning, Matt. This is Frank K. Lee. Thanks for the question. From a distribution standpoint on mail order, we see that, probably closer to the 10% range of all of our prescriptions that are distributed via traditional retail channels or pharmacy channels. Again, Amazon is mixed in within that traditional mail order channel, just around 10%. From the breakdown of telehealth versus in-office, it is actually not a metric that we can break down objectively because even offices that see patients live also have a component of their office that's telehealth, though, so it's not really marked as that in our data. They might mark that as their data within their respective practice. We don't really have an objective measure that I can share with you.

Speaker #5: Or pharmacy channels. So again, Amazon is mixed in within that traditional mail order channel just around 10%. From the breakdown of telehealth versus in-office, it is actually not a metric that we can break down objectively because even offices that see patients live also have a component of their office that's telehealth.

Speaker #5: So it's not really marked as that in our data. They might mark that as their data within their respective practice. So we don't really have an objective measure that I can share with you.

Speaker #5: However, I do hear qualitatively it's used in the telehealth channels just as equally as it is in-office from a prescription mechanism. So good question.

Sy Rengero: However, I do hear qualitatively it's used in the telehealth channels just as equally as it is in-office from a prescription mechanism. Good question. I think from a qualitative view, we definitely see that it is being utilized via that channel.

Sai Rangarao: However, I do hear qualitatively it's used in the telehealth channels just as equally as it is in-office from a prescription mechanism. Good question. I think from a qualitative view, we definitely see that it is being utilized via that channel.

Speaker #5: I think from a qualitative view, we definitely see that it is being utilized via that channel.

Speaker #7: Great. Thank you, guys. And again, congrats on the cue.

[Analyst] (Alliance Global Partners): Great. Thank you, guys. Again, congrats on the Q.

Matt Venezia: Great. Thank you, guys. Again, congrats on the Q.

Speaker #5: Thanks, Matt.

Sy Rengero: Thanks, Matt.

Sai Rangarao: Thanks, Matt.

Speaker #2: Thanks, Matt.

Scott Plesha: Thanks, Matt.

Speaker #6: Thank you. Ladies and gentlemen, are there any further questions? I will now turn the call back to Scott Pleasure, Pelthos CEO, for closing remarks.

Operator 2: Thank you. Ladies and gentlemen, as there are no further questions, I will now turn the call back to Scott Plesha, Pelthos CEO, for closing remarks.

Operator: Thank you. Ladies and gentlemen, as there are no further questions, I will now turn the call back to Scott Plesha, Pelthos CEO, for closing remarks.

Speaker #2: Thank you, operator. I want to thank everyone for joining today's call. I'd also like to thank the employees of Peltor for their continued focus execution, hard work, and dedication supporting patients, caregivers, and healthcare providers.

Scott Plesha: Thank you, operator. I want to thank everyone for joining today's call. I'd also like to thank the employees of Pelthos for their continued focus, execution, hard work, and dedication in supporting patients, caregivers, and healthcare providers. Thank you again for joining our call, and we look forward to updating you on our progress in the future. Have a great day.

Speaker #2: Thank you again for joining our call. And we look forward to updating you on our progress in the future. Have a great day.

Operator 2: Thank you. Ladies and gentlemen, the conference of Pelthos Therapeutics has now concluded. Thank you for your participation. You may now disconnect your lines.

Operator: Thank you. Ladies and gentlemen, the conference of Pelthos Therapeutics has now concluded. Thank you for your participation. You may now disconnect your lines.