Q1 2026 Liquidia Corp Earnings Call

May 11, 2026

Speaker #1: Good morning and welcome to Liquidia Corp Q4, 2026 financial results and corporate update conference call. My name is Jonathan, and I will be your operator today.

Operator: Good morning, and welcome to the Liquidia Corporation Q1 2026 financial results and corporate update conference call. My name is Jonathan and I will be your operator today. All participants are currently in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions for joining the queue will be provided at that time. Please note that today's call is being recorded. Now I'd like to turn the call over to Jason Adair, Liquidia's Chief Business Officer. You may proceed.

Speaker #1: All participants are currently in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions for joining the queue will be provided at that time.

Speaker #1: Please note that today's call is being recorded. And now, I'd like to turn the call over to Jason Adair, Liquidia's Chief Business Officer. You may proceed.

Speaker #2: Thank you, and good morning, everyone. It's my pleasure to welcome you to our first quarter 2026 financial results and corporate update call. Joining me today are Dr. Roger Jeffs, Chief Executive Officer; Michael Kaseta, Chief Operating Officer and Chief Financial Officer; Dr. Rajeev Sagar, Chief Medical Officer; Scott Moonlaw, Chief Commercial Officer; and Rusty Shandler, our General Counsel.

Jason Adair: Thank you, and good morning, everyone. It's my pleasure to welcome you to our Q1 2026 financial results and Corporate Update Call. Joining me today are Dr. Roger Jeffs, Chief Executive Officer; Michael Kaseta, Chief Operating Officer and Chief Financial Officer; Dr. Rajeev Saggar, Chief Medical Officer; Scott Moomaw, Chief Commercial Officer; and Rusty Schundler, our General Counsel. Before we begin, please note that today's discussion will include forward-looking statements, including statements regarding future results, product performance, and ongoing clinical or commercial activities. These statements are subject to risks and uncertainties that may cause actual results to differ materially. For further information, please refer to our filings with the SEC, which are available on our website. Please also note that our earnings release and our commentary include non-GAAP financial measures.

Speaker #2: Before we begin, please note that today's discussion will include forward-looking statements, including statements regarding future results, product performance, and ongoing clinical or commercial activities.

Speaker #2: These statements are subject to risks and uncertainty that may cause actual results to differ materially. For further information, please refer to our filings with the SEC, which are available on our website.

Jason Adair: For further information, please refer to our filings with the SEC, which are available on our website. Please also note that our earnings release and our commentary include non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings press release. With that, I'll turn the call over to Roger.

Speaker #2: Please also note that our earnings release and our commentary include non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings press release.

Jason Adair: Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings press release. With that, I'll turn the call over to Roger.

Speaker #2: With that, I'll turn the call over to Roger.

Speaker #3: Thanks, Jason, and good morning, everyone. We're delighted to share our business results with you today. We'll keep our prepared remarks somewhat brief this morning as we'd like to allow as much time for questions as we can.

Roger Jeffs: Thanks, Jason, and good morning, everyone. We're delighted to share our business results with you today. We'll keep our prepared remarks somewhat brief this morning, as we'd like to allow as much time for questions as we can. Having said that, I'd like to share some bigger picture thoughts regarding the state of the business and allow the Q&A to serve as the time to delve into the specifics. 3 full quarters into the commercial launch of YUTREPIA, I would summarize the state of our business with three main points. The first is that in the third full quarter on the market, YUTREPIA is now leading the growth of the inhaled prostacyclin category. YUTREPIA is well on its way to becoming the anchored inhaled therapy for patients with PAH and PH-ILD.

Speaker #3: Having said that, I'd like to share some bigger-picture thoughts regarding the state of the business and allow the Q&A to serve as a time to delve into the specifics.

Speaker #3: Three full quarters into the commercial launch of Uterpia, I would summarize the state of our business with three main points. The first is that in the third full quarter on the market, Uterpia is now leading the growth of the inhaled prostocycling category.

Speaker #3: Uterpia is well on its way to becoming the anchored inhaled therapy for patients with PAH and PH-ILD. As of April 30th, we have received approximately 4,500 unique patient prescriptions and started approximately 3,750 patients on therapy since launch.

Roger Jeffs: As of April 30, we have received approximately 4,500 unique patient prescriptions and started approximately 3,750 patients on therapy since launch. Approximately 980 physicians have prescribed YUTREPIA since launch. This breadth of prescriptions is also complemented by increasing depth of prescriptions. For example, just since the end of February, the number of physicians who have prescribed YUTREPIA to 5 or more patients has grown 25% to approximately 270 physicians. What this clearly demonstrates is that physicians who try YUTREPIA are coming back to it for more and more of their patients. That is the pattern you see when a therapy is becoming foundational to a treatment paradigm, not when it is being trialed as an alternative, and strongly suggests that YUTREPIA is already establishing itself as the best-in-class and first-in-choice inhaled therapy.

Speaker #3: And approximately 980 physicians have prescribed Uterpia since launch. This breadth of prescriptions is also complemented by increasing depth of prescriptions. For example, just since the end of February, the number of physicians who have prescribed Uterpia to five or more patients has grown 25% to approximately 270 physicians.

Speaker #3: What this clearly demonstrates is that physicians who try Uterpia are coming back to it for more and more of their see when a therapy is becoming foundational to a treatment paradigm, not when it is being trialed as an alternative, and strongly suggests that Uterpia is already establishing itself as the best-in-class and first-in-choice inhaled therapy.

Speaker #3: This increasing breadth and depth of prescriptions is driven by a product profile that is setting a new bar for others to match. One where targeted pulmonary delivery minimizes off-target effects with a formulation technology that preferentially lessens upper airway intolerance while enhancing local effects on the alveolar, capillary membrane.

Roger Jeffs: This increasing breadth and depth of prescriptions is driven by a product profile that is setting a new bar for others to match. One where targeted pulmonary delivery minimizes off-target effects with a formulation technology that preferentially lessens upper airway intolerance while enhancing local effects on the alveolar-capillary membrane. This allows for higher dose attainment and most importantly, better and more durable patient outcomes. The second main point is that we are purposefully and diligently broadening the opportunity in front of us by launching additional studies. We have started recruiting into cohort B of the ASCENT study to transition inadequate responders from TYVASO DPI to YUTREPIA in order to provide empiric evidence that higher doses of YUTREPIA are uniquely well-tolerated and advantage versus competitive alternatives.

Speaker #3: This allows for higher dose attainment, and, most importantly, better and more durable patient outcomes. The second main point is that we are purposefully and diligently broadening the opportunity in front of us by launching additional studies.

Speaker #3: We have started recruiting into cohort B of the ASCENT study to transition inadequate responders from Tivazo DPI to Uterpia in order to provide empiric evidence that higher doses of Uterpia are uniquely well tolerated and advantage versus competitive alternatives.

Speaker #3: Additionally, we are actively screening patients in our pivotal phase three respire study of L606, the most tolerable inhaled troposinol study to date as evidenced by our 48-week data from the open-label US study in TIH and PHILD patients.

Roger Jeffs: Additionally, we are actively screening patients in our pivotal phase III INSPIRE study of L606, the most tolerable inhaled treprostinil study to date, as evidenced by our 48-week data from the open label US study in PAH and PH-ILD patients. In addition, we are also advancing clinical programs to expand the role of inhaled prostacyclin into other serious pulmonary and vascular diseases such as IPF, PPF, PH-COPD, and scleroderma-associated Raynaud's phenomenon. For all of these opportunities, mechanistic validation largely exists, yet unmet need and high opportunity value remain. We believe the differentiated tolerability and dosing profiles of both YUTREPIA and L606 is foundational to that opportunity, as it may support improved patient retention while also enabling higher therapeutic exposures over time.

Speaker #3: In addition, we are also advancing clinical programs to expand the role of inhaled prostacyclin into other serious pulmonary and vascular diseases such as IPF, PPF, PH-COPD, and scleroderma-associated Raynaud's phenomenon.

Speaker #3: For all of these opportunities, mechanistic validation largely exists, yet unmet need and high opportunity value remain. We believe the differentiated tolerability and dosing profiles of both Uterpia and L606 are foundational to that opportunity.

Speaker #3: As it may support improved patient retention while also enabling higher therapeutic exposures over time. The through line of our clinical investment is that we have extraordinary and real potential to expand the franchise value of our portfolio by multiples in the years to come.

Roger Jeffs: The through line of our clinical investment is that we have extraordinary and real potential to expand the franchise value of our portfolio by multiples in the years to come with therapies that reimagine what a best-in-class profile must be. The third main point is that we have established a profitable, self-funded business in a remarkably short period of time. We have now delivered our third consecutive quarter of profitability with top line growing, bottom line growing, and cash growing, which Mike will expand on shortly. What that gives us is the freedom to reinvest our own profits into the next phase of the company's growth. We are building new manufacturing capacity. We are advancing both YUTREPIA and L606 in a related array of clinical studies. We are doing it all of it from operating cash flow rather than via the capital markets.

Speaker #3: With therapies that reimagine what a best-in-class profile must be. The third main point is that we have established a profitable self-funded business in a remarkably short period of time.

Speaker #3: We have now delivered our third consecutive quarter of profitability with top-line growing, bottom-line growing, and cash growing which might well expand on shortly. What that gives us is the freedom to reinvest our own profits into the next phase of the company's growth.

Speaker #3: We are building new manufacturing capacity. We're advancing both Uterpia and L606 in a related array of clinical studies and we are doing all of it from operating cash flow rather than via the capital markets.

Speaker #3: This is rare in our business, especially at this early stage of our commercial lifecycle. To put it all in context, we could not be happier with where the business is today and we are even more excited about where it is going.

Roger Jeffs: This is rare in our business, especially at this early stage of our commercial life cycle. To put it all in context, we could not be happier with where the business is today, and we are even more excited about where it is going. YUTREPIA has already exceeded a half billion dollars in annualized net revenue run rate in less than one full year on the market. Our clinical programs are fully funded by operating cash flow. We have a clear line of sight to at least $1 billion in net revenue in 2027, with multiple growth opportunities to sustain further growth well into the future. What gives us confidence in achieving our ambitions is that the engine that gets us there is already up and running flawlessly. With that, I'll turn it over to Mike to walk you through the financials.

Speaker #3: Uterpia has already exceeded a half billion dollars in annualized net revenue run rate in less than one full year on the market. Our clinical programs are fully funded by operating cash flow and we have a clear line of sight to at least a billion dollars in net revenue in 2027.

Roger Jeffs: Our clinical programs are fully funded by operating cash flow. We have a clear line of sight to at least $1 billion in net revenue in 2027, with multiple growth opportunities to sustain further growth well into the future. What gives us confidence in achieving our ambitions is that the engine that gets us there is already up and running flawlessly. With that, I'll turn it over to Mike to walk you through the financials.

Speaker #3: With multiple growth opportunities to sustain further growth well into the future, what gives us confidence in achieving our ambitions is that the engine that gets us there is already up and running flawlessly.

Speaker #3: With that, I'll turn it over to Mike to walk you through the financials.

Speaker #4: Thank you, Roger, and good morning, everyone. As Roger has indicated, the first quarter is a continuation of the story that we discussed in March.

Michael Kaseta: Thank you, Roger. Good morning, everyone. As Roger has indicated, the Q1 is a continuation of the story that we discussed in March, sustained patient growth and disciplined execution. Net product sales of YUTREPIA were $129.9 million in Q1 2026, up from $90.1 million in Q4 2025, representing 44% sequential growth in net product sales. The Q1 also marked our third consecutive quarter of increasing profitability, and the growth from quarter to quarter is striking. Net income was approximately $52.9 million, up from $14.6 million in Q4 2025. Non-GAAP adjusted EBITDA was approximately $71.2 million, up from $27.3 million. We almost tripled our EBITDA profitability from Q4 to Q1.

Speaker #4: Sustained patient growth and disciplined execution. Net product sales of Uterpia were 129.9 million dollars in the first quarter of 2026, up from 90.1 million dollars in the fourth quarter of 2025, representing 44% sequential growth in net product sales.

Speaker #4: The first quarter also marked our third consecutive quarter of increasing profitability and the growth from quarter to quarter is striking. Net income was approximately 52.9 million dollars, up from 14.6 million dollars in the fourth quarter of 2025.

Speaker #4: Non-GAAP adjusted EBITDA was approximately $71.2 million, up from $27.3 million. We almost tripled our EBITDA profitability from Q4 to Q1. We've achieved this increase in profitability while continuing to invest more heavily into the commercial organization through our Salesforce expansion and expanding our manufacturing capacity and footprint in North Carolina and in our clinical development programs.

Michael Kaseta: We've achieved this increase in profitability while continuing to invest more heavily into the commercial organization through our sales force expansion and expanding our manufacturing capacity and footprint in North Carolina and in our clinical development programs. We ended the quarter with approximately $222.8 million in cash and cash equivalents, an increase of $32.1 million from year-end. In addition to growing the top line, we continue to grow the balance sheet that funds our priorities and are confident in our ability to remain profitable in the future. Roger, back to you.

Speaker #4: We ended the quarter with approximately 222.8 million dollars in cash and cash equivalents, an increase of 32.1 million dollars from year-end. So in addition to growing the top line, we continue to grow the balance sheet that funds our priorities and are confident in our ability to remain profitable in the future.

Speaker #4: Roger, back to you.

Speaker #3: Thanks, Mike. As we close out our third quarter on the market, what stands out to me is how much we have built in such a short period of time.

Roger Jeffs: Thanks, Mike. As we close out our Q3 on the market, what stands out to me is how much we have built in such a short period of time. A product that is leading the growth of the inhaled prostacyclin category in PAH and PH-ILD. A pipeline with multiple paths to extend the franchise well beyond where it stands today, and a self-funded business with the freedom to invest in its own future. We have never been more confident in where this company is headed based on the robust momentum we continue to see in this business. With that, operator, please open the line for questions.

Speaker #3: A product that is leading the growth of the inhaled prostacyclin category in PIH and PH-ILD. A pipeline with multiple paths to extend the franchise well beyond where it stands today.

Speaker #3: And a self-funded business with the freedom to invest in its own future. We have never been more confident in where this company is headed based on the robust momentum we continue to see in this business.

Speaker #3: With that, Operator, please open the line for questions.

Speaker #4: Certainly. Ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again.

Operator: Certainly. Ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. If your question has been answered and you would like to remove yourself from the queue, simply press star one one again. Our first question comes from the line of Amy Li from Jefferies. Your question, please.

Speaker #4: Our first question comes from the line of Amy Lee from Jefferies. Your question, please.

Speaker #5: Excellent. Congrats on the amazing progress and thanks so much for taking our question. Based on our math, it looks like you're seeing a slight acceleration of unique scripts in patient ads as well as an improvement in script to start in March and April.

Amy Li: Excellent. Congrats on the amazing progress, thanks so much for taking our question. Based on our math, it looks like we're seeing a slight acceleration of unique scripts and patient adds, as well as an improvement in script to start in March and April. Can you give us a sense of what current growth is being driven by in terms of PAH versus PH-ILD, new patients or switches, academic or community, and any other relevant metrics? Just a quick follow-up. Do you see any read-across from the Hikma versus Amarin Supreme Court case to the 327 litigation? Thanks so much.

Speaker #5: Can you give us a sense of what current growth is being driven by in terms of PIH versus PHILD, new patients, or switches academic or community, and any other relevant metrics?

Speaker #5: And then just a quick follow-up, do you see any read-across from the HCMA versus Ameren Supreme Court case to the '327 litigation? Thanks so much.

Speaker #3: Good morning, Amy. Thanks for the question. So, there has been a slight acceleration in referrals and patient starts, but I'd say largely things are sustained and consistent.

Roger Jeffs: Good morning, Amy Li. Thanks for the question. There has been a slight acceleration in referrals and patient starts. I'd say largely things are sustained and consistent. You know, we don't want to forecast accelerating growth here. I think if we sustain the growth that we've seen since the beginning of launch, and you just take that as your average, I think everything we predicted around 2027 being a $1 billion in net revenues still holds true for us. I think where we're seeing robust growth is, as we sort of highlighted in the script, in the depth of prescriptions. We are gaining more prescribers, and we're just getting them to trial the drug.

Roger Jeffs: Good morning, Amy. Thanks for the question. There has been a slight acceleration in referrals and patient starts. I'd say largely things are sustained and consistent. You know, we don't want to forecast accelerating growth here. I think if we sustain the growth that we've seen since the beginning of launch, and you just take that as your average, I think everything we predicted around 2027 being a $1 billion in net revenues still holds true for us. I think where we're seeing robust growth is, as we sort of highlighted in the script, in the depth of prescriptions. We are gaining more prescribers, and we're just getting them to trial the drug.

Speaker #3: We don't want to forecast accelerating growth here. I think if we sustain the growth that we've seen since the beginning of launch, and you just take that as your average, I think everything we've predicted around 2027 being a $1 billion in net revenues still holds true for us.

Speaker #3: I think where we're seeing robust growth is as we sort of highlighted in the script is that is in the depths of prescriptions. So what we are gaining more prescribers and we're just getting them to trial the drug and certainly as they get to two, three, four, and five starts, then you start to see sort of this almost trigger change where they just begin using Uterpia preferentially.

Roger Jeffs: Certainly, you know, as they get to 2, 3, 4 and 5 starts, then you start to see sort of this almost trigger change where they just begin using YUTREPIA preferentially. I think, you know, the product profile is speaking for itself. It is redefining kind of what is required for a prostacyclin therapy. You, you need one that's direct to the site of injury, so to the lung. It has to minimize lung intolerance as well as off-target effects, which, you know, the PRINT formulation certainly does. Then because tolerability and dosing are inextricably linked, it allows for higher dosing, which allows for better outcomes.

Roger Jeffs: Certainly, you know, as they get to two, three, four and five starts, then you start to see sort of this almost trigger change where they just begin using YUTREPIA preferentially. I think, you know, the product profile is speaking for itself. It is redefining kind of what is required for a prostacyclin therapy. You, you need one that's direct to the site of injury, so to the lung. It has to minimize lung intolerance as well as off-target effects, which, you know, the PRINT formulation certainly does. Then because tolerability and dosing are inextricably linked, it allows for higher dosing, which allows for better outcomes.

Speaker #3: And I think the product profile is speaking for itself. It is redefining kind of what is required for a prostocycling therapy; you need one that's direct to the site of injury.

Speaker #3: So, it has to be to the lung; it has to minimize lung intolerance as well as off-target effects, which the PRINT formulation certainly does.

Speaker #3: And then, because tolerability and dosing are inextricably linked, it allows for higher dosing, which allows for better outcomes. So, when you have that type of product profile and sites have their own 'critical mass of trialing the drug,' it quickly then becomes a preferred therapy at centers.

Roger Jeffs: When you have that type of product profile and sites have their own quote-unquote "critical mass" of trialing the drug, it quickly then becomes the preferred therapy, you know, at centers. That's what we're seeing. We're certainly driving all of the growth in the space currently. If you sort of aggregate our revenue and our competitor revenue over the quarter, the market grew about 5%, and we were responsible for all of that growth, which we're quite pleased about, and I think it speaks for itself about what the leading therapy is. We still see equal scripting between PAH and PH-ILD. The pull-through still remains around 85%, which is extraordinarily good. The naive and transitions are again about 75 to 25 as it has been before.

Speaker #3: And that's what we're seeing. We're certainly driving all of the growth in the space currently. If you sort of aggregate our revenue and our competitor revenue over the quarter, the market grew about 5% and we were responsible for all of that growth, which we're quite pleased about.

Speaker #3: And I think it speaks for itself about what the leading therapy is. We still see equal scripting between PIH and PHILD. The pull-through still remains around 85%, which is extraordinarily good.

Roger Jeffs: We still see equal scripting between PAH and PH-ILD. The pull-through still remains around 85%, which is extraordinarily good. The naive and transitions are again about 75 to 25 as it has been before. It's a bit more of the little engine that could doing all that it has from day one and sustaining that trajectory. Rusty, maybe you could talk to sort of thinking around Hikma and if there's any read-through from that case.

Speaker #3: And the naïve and transitions are, again, about 75-25 as it has been before. So it's a bit more of the little engine that could, doing all that it has from day one and sustaining that trajectory.

Roger Jeffs: It's a bit more of the little engine that could doing all that it has from day one and sustaining that trajectory. Rusty, maybe you could talk to sort of thinking around Hikma and if there's any read-through from that case.

Speaker #3: And then resting maybe you could talk to sort of thinking around HCMA and if there's any read-through from that case.

Speaker #4: Sure. Thanks, Roger, and thanks for the question, Amy. So I think if you look at the HCMA case and look at the briefing and the oral argument, that case really is a case about what's necessary to show induced infringement.

Rusty Schundler: Sure. Thanks, Roger, and thanks for the question, Amy. You know, I think if you look at the Hikma case and look at the briefing and the oral argument, that case really is a case about what's necessary to show induced infringement. You know, obviously that's, you know, what's at issue in our case with at least four of the six claims where the parties are contesting, you know, whether it was United Therapeutics' patents. I think also if you look at some of the conduct that's at issue in the Hikma case, I think there are some clear parallels to the conduct that United Therapeutics has cited in our case. You know, I think there are certainly some similarities.

Speaker #4: Obviously, that's what's at issue in our case with at least four of the six claims. Where the parties are contesting whether it was an induced united therapeutics patents.

Speaker #4: I think also if you look at some of the conduct, that's at issue in the HCMA case. I think there are some clear parallels to the conduct that United Therapeutics has cited in our case.

Speaker #4: So I think there are certainly some similarities. Now, whether how HCMA is going to be decided, whether it's going to affect Judge Andrew's decision, whether it affects the timing of Judge Andrew's decision, I think that would be speculation on speculation and not an area we're going to get into.

Rusty Schundler: Now, you know, whether how Hikma's gonna be decided, whether it's gonna affect Judge Andrews' decision, whether it affects the timing of Judge Andrews' decision, you know, I think that would be speculation on speculation and not an area we're gonna get into. I think, you know, at least based on what we know today, certainly there are some parallels between the cases. It's really hard to comment beyond that.

Speaker #4: But I think at least based on what we know today, certainly there are some parallels between the cases. But it's really hard to comment beyond that.

Speaker #3: Yeah. And I think I would add, look, we remain very confident in the arguments that we made in the case. And our bullish on the outcome of the opinion when it's rendered.

Roger Jeffs: Yeah. I think I would add, you know, look, we remain very confident in the arguments that we made in the case and are bullish on the outcome of the opinion when it's rendered. I think if there's any read-through from Hikma, we also feel that potentially would go in our favor as well. Operator, next question, please.

Speaker #3: And I think if there's any read-through from HCMA, we also feel that potentially would go in our favor as well. Operator, next question, please.

Speaker #4: Certainly. And our next question comes from the line of Brian Deshner from Raymond James. Your question, please.

Operator: Certainly. Our next question comes from the line of Ryan Deschner from Raymond James. Your question please.

Speaker #6: Thanks for the question, and congrats on another really strong quarter. By my math, the Uterpia launch has now eclipsed the early launch trajectory for your competitor.

Ryan Deschner: Thanks for the question, congrats on another really strong quarter. By my math, the YUTREPIA launch has now eclipsed the early launch trajectory for your competitor. In terms of net sales, what does the current split between prescribers in major centers and smaller community prescribers look like, and how has this evolved thus far from the launch? I have a follow-up. Thanks.

Speaker #6: In terms of net sales, what does the current split between prescribers at major centers and smaller community prescribers look like? And how has this evolved thus far for the launch?

Speaker #6: And then have a follow-up. Thanks.

Speaker #3: Yeah. We're fortunate to have Scott Mooma, our chief commercial officer, on. So Scott, if you wouldn't mind responding to that question.

Roger Jeffs: Yeah. We're fortunate to have Scott Moomaw, our Chief Commercial Officer, on. Scott, if you wouldn't mind responding to that question.

Roger Jeffs: Yeah. We're fortunate to have Scott, our Chief Commercial Officer, on. Scott, if you wouldn't mind responding to that question.

Speaker #7: Yeah. Thanks. So as you would expect and as we mentioned on earlier calls, the centers were jumping in early. As they had those patients there, prevalent and ready to go.

Scott Moomaw: Yeah, thanks. As you would expect, and as we mentioned on earlier calls, the centers were jumping in early, as they had those patients there prevalent and ready to go. They continue to be a mainstay. Although I will say we have centers that are coming on even still now, whether they would be late adopters or they're starting to see those patients back after 6 months, and starting to see the results of YUTREPIA. Having said that, we are having more success in the community, whether that be physicians who have used a PH drug before, or even some physicians who have who are ILD prescribers with the antifibrotics, but who are ready to try prostacyclin.

Speaker #7: And they continue to be a mainstay. Although I will say we have centers that are coming on even still now, whether they would be late adopters or they're starting to see those patients back after six months.

Speaker #7: And starting to see the results of Uterpia. Having said that, we are having more success in the community, whether that be physicians who have used a PH drug before.

Scott Moomaw: Having said that, we are having more success in the community, whether that be physicians who have used a PH drug before, or even some physicians who have who are ILD prescribers with the antifibrotics, but who are ready to try prostacyclin. The balance is definitely, you know, changing a bit more towards what we call the community, but the centers are, you know, still the largest cohort and, of course, they actually are still growing as well.

Speaker #7: Or even some physicians who have who are ILD prescribers. With the antifibrotics, but who are ready to try a prostocycline. So the balance is definitely changing a bit more towards what we call the community.

Scott Moomaw: The balance is definitely, you know, changing a bit more towards what we call the community, but the centers are, you know, still the largest cohort and, of course, they actually are still growing as well.

Speaker #7: But the centers are still the largest cohort, and of course, they actually are still growing as well.

Speaker #3: Great, thanks, Scott. Just maybe add—again, it's a bit anecdotal—but one of the favorite feedback stories that we continue to get is, again, the competitor product had been on the market for years ahead of us.

Roger Jeffs: Great. Thanks, Scott. I would just maybe add, again, it's a bit anecdotal, but one of the favorite feedback stories that we continue to get is, you know, again, the competitor product had been on the market for years ahead of us and had counter-detailed us quite strongly. When we went to centers, people would, you know, some of the physicians would say, you know, they felt that these drugs were sort of, were more alike than not. When we go back to them and they begin the prescribing YUTREPIA, they come back with their own anecdote around that they're seeing a night and day difference, particularly around the cough and the ability to titrate and drive outcomes.

Speaker #3: And it counter detailed us quite strongly. So when we went to centers, people would some of the physicians would say they felt that these drugs were sort of were more alike than not.

Speaker #3: But then, when we go back to them and they begin to prescribe Yutrepia, they come back with their own anecdote around that—they're seeing a night-and-day difference, particularly around the cough and the ability to hydrate and drive outcomes.

Roger Jeffs: When we go back to them and they begin the prescribing YUTREPIA, they come back with their own anecdote around that they're seeing a night and day difference, particularly around the cough and the ability to titrate and drive outcomes. You know, it's those types of stories that resonate with me, and I think, you know, again, it's very hard to beat a better product profile, and I think that's what YUTREPIA affords. Operator, next question, please.

Speaker #3: So it's those types of stories that resonate with me. And I think, again, it's very hard to beat a better product profile. And I think that's what Uterpia ports.

Roger Jeffs: You know, it's those types of stories that resonate with me, and I think, you know, again, it's very hard to beat a better product profile, and I think that's what YUTREPIA affords. Operator, next question, please.

Speaker #3: Operator, next question, please.

Speaker #4: Certainly. And our next question comes from the line of Serge Bellinger from Needham. Your question, please.

Operator: Certainly. Our next question comes from the line of Serge Belanger from Needham. Your question please.

Speaker #8: Hi. Good morning. Thanks for taking my questions. Roger, we're coming up on the one-year anniversary of FDA approval of Uterpia. So you've been on the market for close to a year now.

Serge Belanger: Hi, good morning. Thanks for taking my questions. Roger, we're coming up on the 1-year anniversary of FDA approval of YUTREPIA. You've been on the market for close to a year now. How large do you think the PH-ILD opportunity currently stands at, and how large do you think it could be? One question for Mike. I notice you're now an income taxpayer to company. Just curious if this is a one-off or you expect to continue being paying income taxes going forward, and at what rate? Thanks.

Speaker #8: How large do you think the PhD ILD opportunity currently stands at? And how large do you think it could be? And then one question for Mike I noticed you're now in income taxpayer.

Speaker #8: The company I'm just curious if this is a one-off or you expect to continue being paying income taxes going forward and at what rate?

Speaker #8: Thanks.

Speaker #3: Thanks, Serge. So I'll take the first question around PHID. So if you aggregate just the inhaled trypazidol market today in real dollars, it's about 2 billion.

Roger Jeffs: Thanks, Serge. I'll take that, the first question around PH-ILD. If you aggregate just the inhaled treprostinil market today in real dollars, it's about $2 billion. That seems to be split somewhat evenly between PH and PH-ILD, at least for us. Clearly the PH-ILD market is massively under-penetrated. I think, you know, we're driving awareness. I think our competitor's driving awareness. I think there's going to be a rising tide phenomenon for that. Our belief is that's well in excess of $2 to 3 billion on its own in PH-ILD. Don't forget with the oral prostacyclins, if you assign $1 billion in today revenue value, the oral market there is $2 billion. There's another $3 billion.

Speaker #3: And that seems to be split somewhat evenly between PH and PHID, at least for us. So clearly, the PHID market is massively underpenetrated. I think we're driving awareness.

Speaker #3: I think our competitor is driving awareness. So I think there's going to be a rising tide phenomenon for that. Our belief is that's well in excess of 2 to 3 billion dollars on its own in PHID.

Speaker #3: And then don't forget, with the oral prostacyclines, if you assign $1 billion in today's revenue value, the oral market there is $2 billion in value.

Speaker #3: So there's another $3 billion. So just across PH and PHID, there's a potential, again, with clear line of sight, without a lot of exaggeration or hyperbole, to $6 billion in revenue.

Roger Jeffs: Just across PH and PH-ILD, there's a potential, you know, again, with clear line of sight, without a lot of exaggeration or hyperbole, to, you know, $6 billion in revenue. A lot more runway here for us to continue to grow this franchise significantly. Certainly as we begin to develop L606, which we're actively recruiting, we've had patients in screening already, that, you know, that's the next-gen molecule that can further open up access to the, to these markets. Again, very pleased with where we are today, but excited about where we're gonna go tomorrow as well. Maybe, Mike, I'll turn it over to you. The tax question.

Speaker #3: So a lot more runway here for us to continue to grow this franchise significantly. And certainly, as we begin to develop L606, which we're actively recruiting, we've had patients in screening already.

Speaker #3: That's the next-gen molecule that can further open up access to these markets. So again, very pleased with where we are today. But excited about where we're going to go tomorrow as well.

Speaker #3: And maybe, Mike, I'll turn it over to you, the tax question.

Speaker #4: Yeah. Thanks, Roger. And thanks for the question, Serge. As you saw, we did record income tax expense in Q1. As Roger has said in the prepared remarks, we're growing profitability.

Michael Kaseta: Yeah. Thanks, Roger Jeffs, and thanks for the question, Serge Belanger. You know, as you saw, we did record income tax expense in Q1. As Roger Jeffs has said in the prepared remarks, we're growing profitability. We're growing at a quick pace. We would expect to continue to, you know, show income tax expense as we move forward. As you know, as we've been saying since launch and we'll continue to say, our goal is to obviously grow sales, but also grow profitability and reinvest some of that profitability into the business. The expectation is that we will have increasing net income and adjusted EBITDA as we move forward and, you know, correspondingly we'll have additional income tax expense.

Michael Kaseta: Yeah. Thanks, Roger, and thanks for the question, Serge Belanger. You know, as you saw, we did record income tax expense in Q1. As Roger has said in the prepared remarks, we're growing profitability. We're growing at a quick pace. We would expect to continue to, you know, show income tax expense as we move forward. As you know, as we've been saying since launch and we'll continue to say, our goal is to obviously grow sales, but also grow profitability and reinvest some of that profitability into the business. The expectation is that we will have increasing net income and adjusted EBITDA as we move forward and, you know, correspondingly we'll have additional income tax expense.

Speaker #4: We're growing at a quick pace. We would expect to continue to show income tax expense as we move forward, as we've been saying since launch.

Speaker #4: And we'll continue to say our goal is to obviously grow sales, but also grow profitability and reinvest some of that profitability into the business.

Speaker #4: So the expectation is that we will have increasing net income and adjusted EBIT as we move forward. And correspondingly, we'll have additional income tax expense.

Speaker #8: Thank you. And our next question comes from the line of Julian Harrison from BTIG. Your question, please.

Operator: Thank you. Our next question comes to the line of Julian Harrison from BTIG. Your question please.

Speaker #3: Hi. Let me add my congratulations and all the recent progress. And thank you for taking the questions. Two for me. First, are you seeing any emerging trends among patients switching to Uterpia from other therapies?

Julian Harrison: Hi, let me add my congratulations on all the recent progress, and thanks for taking the questions. Two from me. First, are you seeing any emerging trends among patients switching to YUTREPIA from other therapies? Has there been acceleration on that front at all, and what is the most common product you're seeing switching from at this point? Second, thinking a little bit more about your $1 billion revenue by 2027 guidance that you announced earlier this year, is there a chance you could achieve that on a run rate basis before 2027? Any thoughts there? Thanks.

Speaker #3: Has there been acceleration on that front at all? And what is the most common product you're seeing switching from at this point? And then second, thinking a little bit more about your $1 billion revenue by 2027 guidance you announced earlier this year, is there a chance you could achieve that on a run-rate basis before 2027?

Speaker #3: Any thoughts there? Thanks.

Speaker #5: So in terms of trends in switching, maybe I'll ask Rajiv to talk about that from his observations when he's been out in the field talking to docs.

Roger Jeffs: In terms of trends in switching, maybe I'll ask Rajeev to talk about that from his observations when he's been out in the field talking to docs. Rajeev, if you could speak to the studies that we're doing to direct patients from other prostacyclins to YUTREPIA as well. Mike, if you'll not answer the question on run rate, but take your best answer for Julian that you can when you get there. Rajeev?

Speaker #5: And then also maybe Rajiv, if you could speak to the studies that we're doing to direct patients from other prostocyclines to Uterpia as well.

Speaker #5: And then Mike, if you'll not answer the question on run rate, to your best answer for Julian that you can, when you get there.

Speaker #5: So Rajiv?

Speaker #6: Yeah. Thanks, Roger. Thanks, Julian, for the question. So I think what is clear is that, as to this before, I think the community and the centers alike—I think we're experiencing an inhaled renaissance.

Rajeev Saggar: Yeah, thanks Roger. Thanks Julian for the question. I think what is clear is that, you know, and I've said this before, I think the community and the centers alike, I think we're experiencing an inhaled renaissance, and I think this is clearly being led by YUTREPIA's product profile. I think that Roger continues to highlight in this call, and that's really that the tolerability of our PRINT formulation has led to the ability to dose to dose higher. We showed in our ASCENT cohort, especially in PH-ILD, that as we go up every higher every 8 weeks, that has resulted in notable changes in exercise capacity for these patients to distances and changes that we've not seen in the past.

Speaker #6: And I think this is clearly being led by Uterpia's product profile. I think that Roger continues to highlight in this call. And that's really that the tolerability of our print formulation has led to the ability to dose higher.

Speaker #6: And we showed in our Ascent cohort, especially in PHID, that as we go up every higher every eight weeks, that has resulted in notable changes in exercise capacity for these patients to distances.

Speaker #6: And changes that we have not seen in the past. And where this has gone is that practitioners, in our opinion, when we speak to them, have realized that especially with this vast armamentarium that's now available in both Group 1 and now also in Group 3, that we're moving more towards making the patient not only clearly wanting to feel better, walk further, live longer, but we need to do that in a way that is extremely tolerable.

Rajeev Saggar: Where this has gone, is that practitioners, in our opinion when we speak to them, has realized that especially with this vast armamentarium that's now available, in both Group 1 and now also in Group 3, that we're moving more towards making the patient not only clearly wanting to feel better, walk further, live longer, but we need to do that in a way that is extremely tolerable. The construct of using pumps and even oral prostacyclins, especially given their significant GI intolerability, has allowed the market to take a look at YUTREPIA in a different perspective. In particular, what we're realizing is that the oral prostacyclin market has in those practitioners, we've seen a large switchover to YUTREPIA.

Speaker #6: The construct of using pumps and even oral prostocyclens, especially given their significant GI intolerability, has allowed the market to take a look at Uterpia in a different perspective.

Speaker #6: In particular, what we're realizing is that the oral prostocycling market has and those practitioners, we've seen a large switchover to Uterpia. And although the pharmacokinetics are different, I think, again, the fact that we can dose Uterpia 1.5 to threefold what is traditionally been used with inhaled trypozinol has really opened their eyes to this fact.

Rajeev Saggar: Although the pharmacokinetics are different, I think again, the fact that we can dose YUTREPIA, you know, 1.5 to 3-fold what has traditionally been used with inhaled treprostinil, has really opened their eyes to this fact. The argument can be made, well, it's 4 times a day, and that's correct. The advantage of inhaled is that it's directly being administered to the lungs. We can significantly negate many of the off-target systemic side effects that are notable with oral prostacyclins, regardless of the dosing frequency of that prostacyclin.

Rajeev Saggar: Although the pharmacokinetics are different, I think again, the fact that we can dose YUTREPIA, you know, 1.5 to 3-fold what has traditionally been used with inhaled treprostinil, has really opened their eyes to this fact. The argument can be made, well, it's 4x a day, and that's correct. The advantage of inhaled is that it's directly being administered to the lungs. We can significantly negate many of the off-target systemic side effects that are notable with oral prostacyclins, regardless of the dosing frequency of that prostacyclin.

Speaker #6: And the argument can be made, well, it's four times a day. And that's correct. But the advantage of inhaled is that it's directly being administered to the lungs.

Speaker #6: We can negate all or significantly negate many of the off-target systemic side effects that are notable with oral prostacyclins, regardless of the dosing frequency of that prostacyclin.

Speaker #6: And finally, with the use of Cetanosin coming abroad, I think we're seeing a huge number of practitioners starting to say, "Why are we putting patients on parenteral therapy and a pump, which obviously had its advantages historically, but now we can wean that pump down, transition that also to Yutrepia?" And I think we'll see some abstracts being presented at ATS highlighting the utility of Yutrepia in combinatory treatment with Cetanosin.

Rajeev Saggar: Finally, with the use of sotatercept coming abroad, I think we're seeing a huge number of practitioners starting to say, Why are we putting patients on parenteral therapy and a pump? Which obviously had its advantages historically, but now we can wean that pump down, transition that also to YUTREPIA. I think we'll see some abstracts being presented at ATS highlighting the utility of YUTREPIA in combinatory treprostinil with sotatercept. I think, you know, from a company's perspective, you know, we realize this is where we need to continue to create the data and show physicians how to also do it from a trial perspective.

Speaker #6: And I think from a company's perspective, we realize this is where we need to continue to create the data and show physicians how to also do it from a trial perspective.

Rajeev Saggar: We've now started recruiting into ASCENT cohort B, which is patients that are inadequately responsive to either Tyvaso nebulizer or TYVASO DPI and transitioning that to YUTREPIA. We're also planning in the very near future to initiate transitioning from oral selexipag to open label YUTREPIA. I think that one, of course, we initiated doing that because of again, what is happening in the community. Finally, just to re-highlight, we need to provide, you know, how to actually transition from parenteral therapy on patients on sotatercept and how to transition off the pump directly to YUTREPIA. That study we hope to be initiating sometime in 2026, 2027.

Speaker #6: We've now started recruiting into Ascent cohort B, which is patients that are inadequately responsive to either tireso nebulizer or tireso DPI and transitioning that to Uterpia.

Speaker #6: We're also planning in the very near future to initiate transitioning from oral Celexapeg to open-label Uterpia. I think that one, of course, we initiated doing that because of, again, what is happening in the community.

Speaker #6: And finally, just to re-highlight, we need to provide how to actually transition from parenteral therapy on patients on cetanosin and how to transition off the pump directly to Uterpia.

Speaker #6: And that study, we hope to be initiating sometime in 2026, 2027. So hopefully, that provides a detailed response to your question, Julian.

Rajeev Saggar: Hopefully that provides a detailed response to your question, Julian.

Speaker #3: And Mike, if you'll talk about that run rate.

Roger Jeffs: Mike, if you'll talk about the run rate.

Speaker #4: Yeah. So just to take a step back, and thanks for the question, Julian. Just looking back from Q3 to Q4 and Q4 to Q1, we showed from a revenue share in inhaled prostocyclens we've gone from Q3 of a 10% market share to Q4 at about a little over 16%.

Michael Kaseta: Yeah. Just to take a step back, and thanks for the question, Julian. You know, just looking back from Q3 to Q4 and Q4 to Q1, you know, we showed from a revenue share in inhaled prostacyclins, we've gone from Q3 of a 10% market share to Q4 at about a little over 16%. In Q1 of 2026, we've grown that to almost 23%. All while the market grew in Q4 and Q1 each by 5%. This is in spite of the supposed, you know, terrible weather in the winter months here in Q4 and Q1. I think what we've shown is nothing short of amazing in terms of that growth. We see continued growth as we move forward. As Roger talked about, the opportunities in both PAH and PH-ILD, we think are massive.

Speaker #4: And in Q1 of '26, we've grown that to almost 23%. All while the market grew in Q4 and Q1, each by 5%. And this is in spite of the supposed terrible weather in the winter months here in Q4 and Q1.

Speaker #4: So, I think what we've shown is nothing short of amazing in terms of that growth. We see continued growth as we move forward, as Roger talked about, the opportunities in both PAH and PH-ILD.

Speaker #4: We think are massive. We have a tremendous amount of momentum. We have a best-in-class product. We have a best-in-class commercial organization and medical affairs organization.

Michael Kaseta: We have a tremendous amount of momentum. We have a best-in-class product. We have a best-in-class commercial organization and medical affairs organization, we have nothing but confidence as we move forward here. You know, we're not gonna talk about run rate as we get towards the back end of the year. You know, Roger's talked about at least $1 billion in 2027. We feel that we have a tremendous amount of momentum that we will continue to build on as we move through the rest of 2026.

Speaker #4: And we have nothing but confidence as we move forward here. We're not going to talk about run rate as we get towards the back end of the year.

Speaker #4: Roger's talked about at least a billion dollars in 2027. But we feel that we have a tremendous amount of momentum that we will continue to build on as we move through the rest of 2026.

Speaker #1: Thank you. And our next question comes from the line of Ben Burnett from Wells Fargo. Your question, please.

Operator: Thank you. Our next question comes from the line of Benjamin Burnett from Wells Fargo. Your question please.

Speaker #5: Hey, good morning. I wanted to actually ask about L606 and sort of expectations for the phase three. Based off the phase two or the open label, I think patients were able to get up to kind of 229 micrograms.

Benjamin Burnett: Hey, good morning. I wanted to actually ask about L606 and sort of expectations for the, for the phase III. Based off the phase II or the, or the open label, I think patients were able to get up to kind of 229 micrograms. I guess that's the median. What are your expectations for kind of the dose that's achievable in phase III?

Speaker #5: I guess that's a median. But what are your expectations for the kind of dose that's achievable in phase three?

Speaker #3: Yeah. Good morning, Ben. So thanks for the question. Again, over to Rajeev for that.

Roger Jeffs: Yeah. Good morning, Ben. Thanks for the question. Again, over to Rajeev for that.

Speaker #6: Yeah, Ben. Thanks for the question. I think just to re-acclimate to the audience, L606 is our trypozinol inhalation suspension that is delivered twice a day.

Rajeev Saggar: Yeah, Ben. Thanks for the question. I think just to acclimate to the audience, you know, L606 is our treprostinil inhalation suspension that is delivered twice a day. I think one of the things YUTREPIA cannot solve is the four times a day, and L606, we are confident is gonna be able to achieve a result that will be robust. We are obviously studying this in the setting of PH-ILD. We anticipate, you know, the first patient to imminently come through in a short time period.

Speaker #6: And I think one of the things Uterpia cannot solve is the four times a day and L606. We are confident it's going to be able to achieve a result that will be robust.

Speaker #6: We're obviously studying this in the setting of PHID. And we anticipate the first patient to imminently come through in a short time period. In the open-label study, I think what we highlighted was really our construct that if you can deliver this twice a day, you can also sustain pharmacokinetics of trypozinol, not only during the day, but an equivalent amount at nighttime.

Rajeev Saggar: In the open label study, I think what we highlighted was really our construct that if you can deliver this twice a day, you can also sustain pharmacokinetics of treprostinil, not only during the day, but an equivalent amount at nighttime. That when you do a six-minute walk test, we anticipate that we will not see a notable difference between trough and peak. I think that's very important because when the patient wakes up, they should feel as good as they did as the day before when they're walking around. In terms of dosing, I think what we have learned with YUTREPIA is that we need to continue to provide customization to dosing to the patients.

Speaker #6: So that when you do a six-minute walk test, we anticipate that we will not see a notable difference between trough and peak. And I think that is very important because when the patient wakes up, they should feel as they're walking around.

Speaker #6: In terms of dosing, I think what we have learned with Uterpia is that we need to continue to provide customization to dosing to the patients.

Rajeev Saggar: To do that, we should be able to dose to maximum effect in those that can tolerate and clinically need it. There'll also be patients that also need maybe less amounts, based on their own clinical response. I think the jury is still out. I think what is clear is that the way that we've created our dose levels do allow for significant dose titratability to levels that we also have been achieved in our with YUTREPIA if we sort of were to use comparable dose level effects.

Speaker #6: And to do that, we should be able to dose to maximum effect and to the dose that can be tolerated and clinically needed. And there will also be patients that may need less amounts based on their own clinical response.

Speaker #6: So I think the jury's still out. I think what is clear is that the way that we've created our dose levels do allow for significant dose titratability to levels that we also have been achieved in our with Uterpia.

Speaker #6: If we sort of are to use comparable dose level effects.

Speaker #3: Great. Thank you, Rajeev.

Roger Jeffs: Great. Thank you, Rajeev.

Speaker #1: Thank you. And our next question comes from the line of Jason Gerberry from Bank of America. Your question, please.

Operator: Thank you. Our next question comes from the line of Jason Gerberry from Bank of America. Your question please.

Melanie: Hi, this is Melanie on for Jason. Thanks for taking our question. Going back to the PH-ILD market opportunity, assuming no change to the market indication statement, can you talk about the challenges and opportunities with opening up that market opportunity? I know you talked about market penetration already, but how penetrated is that market currently with inhaled treprostinil, and is the hurdle market education and through diagnosis? Thanks.

[Analyst] (Bank of America): Hi, this is Melanie on for Jason. Thanks for taking our question. Going back to the PH-ILD market opportunity, assuming no change to the market indication statement, can you talk about the challenges and opportunities with opening up that market opportunity? I know you talked about market penetration already, but how penetrated is that market currently with inhaled treprostinil, and is the hurdle market education and through diagnosis? Thanks.

Speaker #7: Hi. This is Melanie on for Jason. Thanks for taking your question. Going back to the PHID market opportunity, assuming no change to the market indication statement, can you talk about the challenges and opportunities with opening up that market opportunity?

Speaker #7: I know you talked about market penetration already, but how penetrated is that market currently with inhaled trypozinol? And is there a hurdle market? Is the hurdle market education and improved diagnosis?

Speaker #7: Thanks.

Speaker #3: Great. So, Scott, maybe you could take the answer on what our expectations are in PHID and where we are today.

Roger Jeffs: Great. Scott, maybe you could take the answer on kind of what our expectations are in PH-ILD and where we are today.

Speaker #7: Yeah, yeah, sure. Thanks. So, I think we've said that we started with PHID being a smaller percentage of the patients, as they are just a little bit of a slower burn in that market.

Scott Moomaw: Yeah. Yeah, sure. Thanks. I think we've said that we started with PH-ILD being a smaller percentage of the patients as we, you know, they are just a little bit of a slower burn in that market. We're now to the point where it's pretty balanced in terms of 50/50. You can see already that PH-ILD has increased. I think, you know, with that said, the market is still 60,000 patients, and there is a lot of headroom here for this to continue to grow. I think, as Roger alluded to earlier, two companies in this space, educating, working on awareness, diagnosis and treatment is going to rise the tides for sure.

Speaker #7: But we're now to the point where it's pretty balanced in terms of 50/50. So you can see already that PHID has increased. I think with that said, the market is still 60,000 patients.

Speaker #7: And there is a lot of headroom here for this to continue to grow. I think as Roger alluded to earlier, two companies in this space, educating, working on awareness, diagnosis, and treatment is going to rise the tides for sure.

Scott Moomaw: One of the reasons we're doing the sales force expansion here over the next couple of months is because we want to penetrate further out into the community market, where these are physicians, community pulmonologists who prescribe, who see ILD patients, but they don't spend a lot of time thinking about it, if any time, thinking about whether those patients have PH. You know, they'll give them antibiotics, and then they'll, you know, they'll do the best that they can. Having said that, I think that there's an opportunity to get out there to talk to these physicians because many of these patients are out there in the community, and they haven't made it to a center yet. You go to that doctor, you make them aware, you get them thinking about PH-ILD.

Speaker #7: One of the reasons we're doing the Salesforce expansion here over the next couple of months is because we want to penetrate further out into the community market where these are physicians, community pulmonologists who prescribe who see ILD patients but they don't spend a lot of time thinking about if any time thinking about whether those patients have PH.

Speaker #7: They'll give them antifibrotics, and then they'll do the best that they can. But having said that, I think that there's an opportunity to get out there to talk to these physicians because many of those patients are out there in the community, and they haven't made it to a center yet.

Speaker #7: So you go to that doctor, you make them aware, you get them thinking about PHID, you explain to them what a terrible disease this is and what the mortality looks like for it.

Scott Moomaw: You explain to them what a, what a terrible disease this is and what the mortality looks like for it, then ask them to look for it. Either treat it or diagnose it, I should say, diagnose it, then either treat it or send it into a center. I think that's where the opportunity lies, is those patients that are out there are kind of in the jungle. That's why, as I mentioned earlier, we're expanding the sales force. We think there's a great deal of opportunity

Speaker #7: And then ask them to look for it. And if they're either treat it or diagnosis, I should say, diagnose it, and then either treat it or send it into a center.

Speaker #7: But I think that's where the opportunity lies as those patients that are out there kind of in the jungle and that's why, as I mentioned earlier, we're expanding the Salesforce.

Speaker #7: So, we think there's a great deal of opportunity left there.

Speaker #3: Yeah, another thing I would add—there's recent registry-type data that's coming out that's showing that 50 to 75 percent of these patients actually have a PH component to their ILD.

Roger Jeffs: Another thing I would add, there's recent registry type data that's coming out that's showing that 50% to 75% of these patients actually have a PH component to their ILD. You know, really, as Scott said, it's driving awareness and getting them to refer to a cath lab to do a definitive right heart catheterization so that they can then have the authorization to get scripted for a drug that can help them. You know, a lot of it is driving the disease awareness, driving the PH incidence within that, the ILD population. There's sort of an expectation that it's actually there rather than not there. Finally, either they're gonna learn to treat or they're gonna learn to refer and what the best referral network is for them.

Speaker #3: So really, as Scott said, it's driving awareness and getting them to refer to a cath lab to do a definitive right heart cath so that they can then have the authorization to get scripted for a drug that can help them. So a lot of it is driving the disease awareness, driving the PH incidence within the ILD population.

Speaker #3: So there's sort of an expectation that it's actually there rather than not there. And then finally, either they're going to learn to treat or they're going to learn to refer, and what the best referral network is for them.

Speaker #3: So that's what we're doing, and that's, as Scott said, one of the reasons we scaled the Salesforce significantly.

Roger Jeffs: That's what we're doing, and that's, as Scott said, one of the reasons we scaled the sales force significantly.

Speaker #1: Thank you. And our next question comes from the line of Gaurav Mani from Life Sci Capital. Your question, please.

Operator: Thank you. Our next question comes from the line of Gaurav Maini from LifeSci Capital. Your question please.

Speaker #5: Yeah. Good morning. Philip Eckert jumping in for Gaurav today. Thanks for taking the question. I guess any more color you can give on the potential expansion opportunity for Uterpia in PH/COPD.

Phillip Eckert: Yeah. Good morning. Phillip Eckert jumping in for Gaurav today. Thanks for taking the question. I guess any more color you can give on the potential expansion opportunity for YUTREPIA in PH-COPD? Of course, this is a pretty wide open indication, but any color here on how the team is thinking about this will be helpful.

Speaker #5: Of course, this is a pretty wide open indication, but any color here on how the team is thinking about this will be helpful.

Speaker #3: Yeah. I'll start. So we think there's a clear opportunity here and I think part of what will drive the value of sort of capturing that opportunity is doing a study that is enriched, if you will, for success.

Roger Jeffs: Yeah. I'll start. We think there's a clear opportunity here, and I think part of what will drive the value of sort of capturing that opportunity is doing a study that is enriched, if you will, for success. We're at ATS, for example, we're gonna have steering committee meetings with the luminaries in the space to talk about kind of if we're going to study this disease, what is the best sample of patients to study. I think if we get that right, we all know that treprostinil will improve the PH component of disease, and that obviously would benefit the outcome of patients with PH-COPD. I think that's where we're gonna focus our time and attention on, is making sure we get the inclusion/exclusion criteria right.

Speaker #3: So we're at ATS, for example, we're going to have steering committee meetings with the luminaries in the space to talk about kind of if we're going to study this disease, what is the best sample of patients to study?

Speaker #3: And I think if we get that right, we all know that trypozinol will improve the PH component of disease and that obviously would benefit the outcome of patients with PH/COPD.

Speaker #3: So I think that's where we're going to focus our time and attention on is making sure we get the inclusion/exclusion criteria right. We then will drive a do a protocol that's with all our experience that we think will be enriched for success, and then we'll take it to goal.

Roger Jeffs: We, you know, we'll drive a protocol that's with all our experience that we think will be enriched for success, we'll take it to goal. That's kind of where we are with that program. It won't get going until 2027 at best. I think, you know, more to come on that, appreciate the question. It's a massive opportunity, you know, in excess of $4 billion or more on its own.

Speaker #3: So that's kind of where we are with that program. So it won't get going until 27 at best. So I think more to come on that, but appreciate the question.

Speaker #3: It's a massive opportunity in excess of $4 billion or more on its own.

Speaker #1: Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Dr. Jeff Roger Jeffs for any further remarks.

Operator: Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Dr. Roger Jeffs for any further remarks.

Speaker #3: Yeah. Thank you, operator. And thank you, everybody, for joining us. I think just leave you with what we're really excited about where the business is headed.

Roger Jeffs: Thank you, operator, and thank you everybody for joining us. I think, you know, I just leave you with what we're really excited about, where the business is headed. I think we're gonna focus on four key areas. One is the continued success in the launch of YUTREPIA and its growth. Doing market support studies to cement our position for YUTREPIA as the anchored, anchoring prostacyclin in the market, both for transitions and from inhaled and oral. Looking at synergies with sotatercept. We're also gonna focus on L606 advancement and get that to goal as soon as we can. As we just answered a question around evolving broader indications such as IPF, PPF, PH-COPD, and Raynaud's so that we can expand this business by multiples and not percents. Again, thank you everyone for your time and attention today.

Roger Jeffs: Yeah. Thank you, operator, and thank you everybody for joining us. I think, you know, I just leave you with what we're really excited about, where the business is headed. I think we're gonna focus on four key areas. One is the continued success in the launch of YUTREPIA and its growth. Doing market support studies to cement our position for YUTREPIA as the anchored, anchoring prostacyclin in the market, both for transitions and from inhaled and oral. Looking at synergies with sotatercept.

Speaker #3: I think we're going to focus on four key areas. One is the continued success and the launch of Utrepia and its growth, doing market support studies to cement our position for Utrepia as the anchored, anchoring prostacyclin in the market both for transitions and from inhaled and oral, looking at synergies with Certatacept.

Speaker #3: We're also going to focus on L606 advancement and get that to goal as soon as we can. And then as we just answered a question around evolving broader indications such as IPF, PPF, PH/COPD, and Raynaud's.

Roger Jeffs: We're also gonna focus on L606 advancement and get that to goal as soon as we can. As we just answered a question around evolving broader indications such as IPF, PPF, PH-COPD, and Raynaud's so that we can expand this business by multiples and not percents. Again, thank you everyone for your time and attention today. We look forward to speaking to you at conferences in the coming future.

Speaker #3: So that we can expand this business by multiples and not percents. So again, thank you, everyone, for your time and attention today. We look forward to speaking to you at conferences in the coming future.

Roger Jeffs: We look forward to speaking to you at conferences in the coming future.

Operator: Thank you ladies and gentlemen for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.