Q2 2026 Omeros Corp Earnings Call

Speaker #1: Good afternoon, and welcome to today's earnings call for Omeros Corporation. At this time, all participants are in a listen-only mode. After the company's remarks, we will conduct a question-and-answer session.

Operator: Good afternoon, and welcome to today's earnings call for Omeros Corporation. At this time, all participants are in a listen-only mode. After the company's remarks, we will conduct a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. Please be advised that this call is being recorded at the company's request, and a replay will be available on the company's website. I will now turn the call over to Jennifer Williams, investor relations for Omeros. Please go ahead.

Operator: Good afternoon, and welcome to today's earnings call for Omeros Corporation. At this time, all participants are in a listen-only mode. After the company's remarks, we will conduct a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please be advised that this call is being recorded at the company's request, and a replay will be available on the company's website. I will now turn the call over to Jennifer Williams, investor relations for Omeros. Please go ahead.

Speaker #1: If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute.

Speaker #1: Please be advised that this call is being recorded at the company's request, and a replay will be available on the company's website. I'll now turn the call over to Jennifer Williams, Investor Relations for Omeros.

Speaker #1: Please go ahead.

Speaker #2: Thank you, and good afternoon, everyone. Before we begin, please note that today's discussion will include forward-looking statements. These statements reflect management's current expectations and beliefs as of today and are subject to risks and uncertainties that could cause actual results to differ materially.

Jennifer Cook Williams: Thank you, and good afternoon, everyone. Before we begin, please note that today's discussion will include forward-looking statements. These statements reflect management's current expectations and beliefs as of today and are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed discussion of these risks and uncertainties, please refer to the special note regarding forward-looking statements and the risk factors in our quarterly report on Form 10-Q, filed today with the SEC, as well as our most recent annual report on Form 10-K. Today's call also will include certain non-GAAP financial measures. A reconciliation of these measures to the corresponding GAAP measures is included in Omeros' earnings release issued earlier today, available on the investor relations page of our website and furnished with the Form 8-K we filed today with the SEC.

Jennifer Williams: Thank you, and good afternoon, everyone. Before we begin, please note that today's discussion will include forward-looking statements. These statements reflect management's current expectations and beliefs as of today and are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed discussion of these risks and uncertainties, please refer to the special note regarding forward-looking statements and the risk factors in our quarterly report on Form 10-Q, filed today with the SEC, as well as our most recent annual report on Form 10-K. Today's call also will include certain non-GAAP financial measures. A reconciliation of these measures to the corresponding GAAP measures is included in Omeros' earnings release issued earlier today, available on the investor relations page of our website and furnished with the Form 8-K we filed today with the SEC.

Speaker #2: For a detailed discussion of these risks and uncertainties, please refer to the special note regarding forward-looking statements and the risk factors in our quarterly report on Form 10-Q filed today with the SEC, as well as our most recent annual report on Form 10-K.

Speaker #2: Today's call also will include certain non-GAAP financial measures. A reconciliation of these measures to the corresponding GAAP measures is included in Omeros' earnings release issued earlier today, available on the Investor Relations page of our website and furnished with the Form 8-K we filed today with the SEC.

Speaker #2: With that, I'll turn the call over to Dr. Gregory Demopulos, Chairman and CEO of Omeros.

Jennifer Cook Williams: With that, I will turn the call over to Dr. Gregory Demopulos, Chairman and CEO of Omeros.

Jennifer Williams: With that, I will turn the call over to Dr. Gregory Demopulos, Chairman and CEO of Omeros.

Speaker #3: Thanks, Jennifer, and good afternoon, everyone. Joining me today are David Borges, our Chief Accounting Officer; Dr. Kathy Melphy, our Chief Regulatory Officer; Dr. Steve Whitaker, Vice President of Clinical; and Bill Woodman, our Chief Commercial Officer.

Gregory A. Demopulos: Thank you, Jennifer, and good afternoon, everyone. Joining me today are David Borges, our Chief Accounting Officer, Dr. Kathy Melfi, our Chief Regulatory Officer, Dr. Steve Whitaker, Vice President of Clinical, and Bill Woodman, our Chief Commercial Officer. Promoted from within the company, Bill was recently appointed as our Chief Commercial Officer, and let me tell you a bit more about him. Bill joined Omeros six years ago as our Vice President of Sales and Market Development, bringing more than 25 years of industry experience, including sales and marketing leadership roles at Amgen, Spectrum Pharmaceuticals, and Jazz Pharmaceuticals, where he led the global launch of defibrotide. At Omeros, Bill largely built our commercial team and was instrumental in designing and executing the YARTEMLEA launch. I have long believed that Bill's background, capabilities, and achievements are ideally suited to Omeros' current and future objectives.

Gregory Demopulos: Thank you, Jennifer, and good afternoon, everyone. Joining me today are David Borges, our Chief Accounting Officer, Dr. Cathy Melfi, our Chief Regulatory Officer, Dr. Steve Whitaker, Vice President of Clinical, and Bill Woodman, our Chief Commercial Officer. Promoted from within the company, Bill was recently appointed as our Chief Commercial Officer, and let me tell you a bit more about him. Bill joined Omeros six years ago as our Vice President of Sales and Market Development, bringing more than 25 years of industry experience, including sales and marketing leadership roles at Amgen, Spectrum Pharmaceuticals, and Jazz Pharmaceuticals, where he led the global launch of defibrotide. At Omeros, Bill largely built our commercial team and was instrumental in designing and executing the YARTEMLEA launch. I have long believed that Bill's background, capabilities, and achievements are ideally suited to Omeros' current and future objectives.

Speaker #3: Promoted from within the company Bill was recently appointed as our Chief Commercial Officer and let me tell you a bit more about him. Bill joined Omeros six years ago as our Vice President of Sales and Market Development, bringing more than 25 years of industry experience, including sales and marketing leadership roles at Amgen, Spectrum Pharmaceuticals, and Jazz Pharmaceuticals, where he led the global launch of defibrillator.

Speaker #3: At Omeros, Bill largely built our commercial team and was instrumental in designing and executing the Artemlia launch. I have long believed that Bill's background, capabilities, and achievements are ideally suited to Omeros' current and future objectives.

Speaker #3: Under his leadership, our commercial team is driving Artemlia toward becoming the standard of care for TATMA, and preparing for its expansion into a broad range of MAS-driven indications.

Gregory A. Demopulos: Under his leadership, our commercial team is driving YARTEMLEA toward becoming the standard of care for TA-TMA and preparing for its expansion into a broad range of MASP-2-driven indications. Beyond complement, Bill's track record of driving growth across oncology, rare disease, and specialty biopharma products will serve Omeros well. Before I turn to the financial details, let me highlight three points. First, YARTEMLEA generated $32.2 million in gross sales in its first full quarter on the market. Second, operations generated $4.1 million of positive cash flow during the quarter. Third, we meaningfully strengthened our capital structure through our share and note repurchases. I will now begin with an overview of our Q2 operations and financial results, followed by program updates. David will then review the financials in more detail, after which we will open the call for questions.

Gregory Demopulos: Under his leadership, our commercial team is driving YARTEMLEA toward becoming the standard of care for TA-TMA and preparing for its expansion into a broad range of MASP-2-driven indications. Beyond complement, Bill's track record of driving growth across oncology, rare disease, and specialty biopharma products will serve Omeros well. Before I turn to the financial details, let me highlight three points. First, YARTEMLEA generated $32.2 million in gross sales in its first full quarter on the market. Second, operations generated $4.1 million of positive cash flow during the quarter. Third, we meaningfully strengthened our capital structure through our share and note repurchases. I will now begin with an overview of our Q2 operations and financial results, followed by program updates. David will then review the financials in more detail, after which we will open the call for questions.

Speaker #3: Beyond complement, Bill's track record of driving growth across oncology, rare disease, and specialty biopharma products will serve Omeros well. Before I turn to the financial details, let me highlight three points.

Speaker #3: First, the Artemlia generated $32.2 million in gross sales in its first full quarter on the market. Second, operations generated $4.1 million of positive cash flow during the quarter.

Speaker #3: And third, we meaningfully strengthened our capital structure through our share and note repurchases. So, I'll now begin with an overview of our second quarter operations and financial results.

Speaker #3: Followed by program updates. David will then review the financials in more detail, after which we'll open the call for questions. As you know, the FDA approved Artemlia, our lead MASP-2 inhibitor, in December 2025 for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy.

Gregory A. Demopulos: As you know, the FDA approved YARTEMLEA, our lead MASP-2 inhibitor, in December 2025 for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy, or TA-TMA. YARTEMLEA is the first and only approved treatment for this often fatal complication of stem cell transplantation, and YARTEMLEA is also the first and only approved inhibitor of the lectin pathway of complement. We launched YARTEMLEA in mid-January, with initial distributor shipments beginning mid-month and first sales following shortly thereafter. The Q2 was our first full quarter of YARTEMLEA sales, and we are pleased to share the results today. As I mentioned, in the Q2, YARTEMLEA generated $32.2 million in gross sales and $28.5 million in net sales, reflecting strong physician adoption and market penetration and a gross to net adjustment of 11.5%. Compared with the Q1, gross sales increased 190% and net sales increased 188%.

Gregory Demopulos: As you know, the FDA approved YARTEMLEA, our lead MASP-2 inhibitor, in December 2025 for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy, or TA-TMA. YARTEMLEA is the first and only approved treatment for this often fatal complication of stem cell transplantation, and YARTEMLEA is also the first and only approved inhibitor of the lectin pathway of complement. We launched YARTEMLEA in mid-January, with initial distributor shipments beginning mid-month and first sales following shortly thereafter. The Q2 was our first full quarter of YARTEMLEA sales, and we are pleased to share the results today. As I mentioned, in the Q2, YARTEMLEA generated $32.2 million in gross sales and $28.5 million in net sales, reflecting strong physician adoption and market penetration and a gross to net adjustment of 11.5%. Compared with the Q1, gross sales increased 190% and net sales increased 188%.

Speaker #3: Or TATMA. The ARTEMIS-AL is the first and only approved treatment for this often fatal complication of stem cell transplantation, and ARTEMIS-AL is also the first and only approved inhibitor of the lectin pathway of complement.

Speaker #3: We launched Artemlia in mid-January, with initial distributor shipments beginning mid-month and first sales following shortly thereafter. The second quarter was our first full quarter of Artemlia sales, and we're pleased to share the results today.

Speaker #3: As I mentioned in the second quarter, the Artemelia generated $32.2 million in gross sales and $28.5 million in net sales, reflecting strong physician adoption and market penetration, and a gross-to-net adjustment of 11.5 percent.

Speaker #3: Compared with the first quarter, gross sales increased 190 percent and net sales increased 188 percent. We'll discuss the launch in more detail in just a bit.

Gregory A. Demopulos: We will discuss the launch in more detail in just a bit. Net income for the Q2 was $13.2 million, or $0.18 per share. As we have previously discussed, our reported results include non-cash mark-to-market adjustments related to the derivative embedded in our 2029 convertible notes. Excluding non-cash remeasurements of embedded derivatives and other financial instruments, Q2 non-GAAP adjusted net income was $1.8 million, or $0.02 net income per share. David will walk through the quarter-over-quarter comparisons and accounting detail shortly. We ended the quarter with $132 million in cash and investments. Importantly, company-wide operations provided net positive cash flow in the Q2 of $4.1 million. Our share repurchases and subsequent note repurchases further strengthened our capital structure.

Gregory Demopulos: We will discuss the launch in more detail in just a bit. Net income for the Q2 was $13.2 million, or $0.18 per share. As we have previously discussed, our reported results include non-cash mark-to-market adjustments related to the derivative embedded in our 2029 convertible notes. Excluding non-cash remeasurements of embedded derivatives and other financial instruments, Q2 non-GAAP adjusted net income was $1.8 million, or $0.02 net income per share. David will walk through the quarter-over-quarter comparisons and accounting detail shortly. We ended the quarter with $132 million in cash and investments. Importantly, company-wide operations provided net positive cash flow in the Q2 of $4.1 million. Our share repurchases and subsequent note repurchases further strengthened our capital structure.

Speaker #3: Net income for the second quarter was $13.2 million, or $0.18 per share. As we have previously discussed, our reported results include non-cash, mark-to-market adjustments related to the derivative embedded in our 2029 convertible notes.

Speaker #3: Excluding non-cash remeasurements of embedded derivatives and other financial instruments, second quarter non-GAAP adjusted net income was $1.8 million, or $0.02 net income per share.

Speaker #3: David will walk through the quarter-over-quarter comparisons and accounting detail shortly. We ended the quarter with $132 million in cash and investments.

Speaker #3: Importantly, company-wide, operations provided net positive cash flow in the second quarter of $4.1 million. Our share repurchases and subsequent note repurchases further strengthened our capital structure.

Speaker #3: During the six months ended June 30, we repurchased and retired approximately 843,000 shares of Omeros common stock, nearly 60 percent of those shares in the second quarter, at a volume-weighted average price of $11.70 per share.

Gregory A. Demopulos: During the six months ended 30 June, we repurchased and retired approximately 843,000 shares of Omeros common stock, nearly 60% of those shares in the Q2, at a volume-weighted average price of $11.70 per share. Then, in July, through two privately negotiated transactions, we repurchased $30.5 million aggregate principal amount of our 9.5% convertible notes due in 2029, reducing the outstanding principal by 43% to $40.3 million. The repurchases also reduced the number of shares issuable upon conversion from approximately 11.4 million to 6.5 million shares. We achieved this reduction at a weighted average cost of $12.21 per underlying conversion share and concurrently eliminated $8.6 million in future interest payments. Together, our open market share repurchases and our negotiated note repurchases have reduced our potential fully diluted share count by 5.8 million shares year to date. Turning back to YARTEMLEA, our launch remains focused on four priorities.

Gregory Demopulos: During the six months ended 30 June, we repurchased and retired approximately 843,000 shares of Omeros common stock, nearly 60% of those shares in the Q2, at a volume-weighted average price of $11.70 per share. Then, in July, through two privately negotiated transactions, we repurchased $30.5 million aggregate principal amount of our 9.5% convertible notes due in 2029, reducing the outstanding principal by 43% to $40.3 million. The repurchases also reduced the number of shares issuable upon conversion from approximately 11.4 million to 6.5 million shares. We achieved this reduction at a weighted average cost of $12.21 per underlying conversion share and concurrently eliminated $8.6 million in future interest payments. Together, our open market share repurchases and our negotiated note repurchases have reduced our potential fully diluted share count by 5.8 million shares year to date. Turning back to YARTEMLEA, our launch remains focused on four priorities.

Speaker #3: Then in July, through two privately negotiated transactions, we repurchased $30.5 million aggregate principal amount of our 9.5% convertible notes due in 2029.

Speaker #3: Reducing the outstanding principal by 43 percent to 40.3 million dollars. The repurchases also reduced the number of shares issuable upon conversion from approximately 11.4 million to 6.5 million shares.

Speaker #3: We achieved this reduction at a weighted average cost of $12.21 per underlying conversion share and concurrently eliminated $8.6 million in future interest payments.

Speaker #3: Together, our open market share repurchases and our negotiated note repurchases have reduced our potential fully diluted share count by 5.8 million shares year to date.

Speaker #3: Turning back to the Artemlia, our launch remains focused on four priorities. First, educating transplant teams to recognize and treat TA-TMA earlier. Second, securing institutional access through Pharmacy and Therapeutics, or P&T, committee approvals and streamlined ordering.

Gregory A. Demopulos: One, educating transplant teams to recognize and treat TA-TMA earlier. Two, securing institutional access through pharmacy and therapeutics, or P&T, committee approvals and streamlined ordering. Three, ensuring timely reimbursement. Four, demonstrating YARTEMLEA's economic value through health economics and outcomes research, or HEOR. Together, these priorities are intended to change how transplant centers approach TA-TMA. Historically, particularly at adult transplant centers, TA-TMA often has been treated as a diagnosis of exclusion and considered only after other potential causes are ruled out. We are working to shift that paradigm toward proactive screening, enabling clinicians to identify and treat more patients earlier and ultimately improve transplant outcomes. Execution remains strong. Our field sales organization is actively engaging all 175 US transplant centers. As of 30 June, 73 unique accounts had ordered YARTEMLEA, a 143% increase since 31 March.

Gregory Demopulos: One, educating transplant teams to recognize and treat TA-TMA earlier. Two, securing institutional access through pharmacy and therapeutics, or P&T, committee approvals and streamlined ordering. Three, ensuring timely reimbursement. Four, demonstrating YARTEMLEA's economic value through health economics and outcomes research, or HEOR. Together, these priorities are intended to change how transplant centers approach TA-TMA. Historically, particularly at adult transplant centers, TA-TMA often has been treated as a diagnosis of exclusion and considered only after other potential causes are ruled out. We are working to shift that paradigm toward proactive screening, enabling clinicians to identify and treat more patients earlier and ultimately improve transplant outcomes. Execution remains strong. Our field sales organization is actively engaging all 175 US transplant centers. As of 30 June, 73 unique accounts had ordered YARTEMLEA, a 143% increase since 31 March.

Speaker #3: Three, ensuring timely reimbursement. And four, demonstrating Artemlia's economic value through health economics and outcomes research, or HEOR. Together, these priorities are intended to change how transplant centers approach TATMA.

Speaker #3: Historically, particularly at adult transplant centers, TA-TMA often has been treated as a diagnosis of exclusion, and considered only after other potential causes are ruled out.

Speaker #3: We are working to shift that paradigm toward proactive screening, enabling clinicians to identify and treat more patients earlier and ultimately improve transplant outcomes. Execution remains strong.

Speaker #3: Our field sales organization is actively engaging all 175 U.S. transplant centers. As of June 30, 73 unique accounts had ordered the Artemlia—a 143% increase since March 31.

Speaker #3: As discussed on our first-quarter call, pediatric patients initially represented an outsized share of utilization. With rapid adoption at adult transplant centers, however, the mix has shifted significantly.

Gregory A. Demopulos: As discussed on our Q1 call, pediatric patients initially represented an outsized share of utilization. With rapid adoption at adult transplant centers, however, the mix has shifted significantly. In Q2, adult utilization grew at more than twice the rate of pediatric utilization, and adult patients represented approximately 75% of YARTEMLEA sales. This mix is closely approaching the historical 85%/15% split between adult and pediatric transplant procedures in the US. Formulary adoption also continues to progress rapidly. By quarter end, we understand that YARTEMLEA had received P&T committee approval at approximately 55% to 60% across the top 10, 20, 40, and 80 US transplant center cohorts that we track. Ordering frequency also increased meaningfully, indicating deeper utilization within centers. We also achieved key reimbursement milestones during the quarter.

Gregory Demopulos: As discussed on our Q1 call, pediatric patients initially represented an outsized share of utilization. With rapid adoption at adult transplant centers, however, the mix has shifted significantly. In Q2, adult utilization grew at more than twice the rate of pediatric utilization, and adult patients represented approximately 75% of YARTEMLEA sales. This mix is closely approaching the historical 85%/15% split between adult and pediatric transplant procedures in the US. Formulary adoption also continues to progress rapidly. By quarter end, we understand that YARTEMLEA had received P&T committee approval at approximately 55% to 60% across the top 10, 20, 40, and 80 US transplant center cohorts that we track. Ordering frequency also increased meaningfully, indicating deeper utilization within centers. We also achieved key reimbursement milestones during the quarter.

Speaker #3: In the second quarter, adult utilization grew at more than twice the rate of pediatric utilization, and adult patients represented approximately 75% of the Artemelia sales.

Speaker #3: This mix is closely approaching the historical 85 percent, 15 percent split between adult and pediatric transplant procedures in the US. Formulary adoption. Also, continues to progress rapidly.

Speaker #3: By quarter end, we understand that Artemlia had received P&T committee approval at approximately 55% to 60% across the top 10, 20, 40, and 80 US transplant center cohorts that we track.

Speaker #3: Ordering frequency also increased meaningfully, indicating deeper utilization within centers. We also achieved key reimbursement milestones during the quarter. The Centers for Medicare and Medicaid Services, or CMS, assigned Artemlia a permanent, product-specific Healthcare Common Procedure Coding System, or HCPCS, J-code effective July 1.

Gregory A. Demopulos: The Centers for Medicare & Medicaid Services, or CMS, assigned YARTEMLEA a permanent product-specific healthcare common procedure coding system, or HCPCS J-code, effective 1 July. The J-code establishes a clear and consistent outpatient reimbursement pathway, reduces administrative burden, and supports more predictable payment for providers. CMS also recommended a new technology add-on payment, or NTAP, for YARTEMLEA under the fiscal year 2027 proposed rule for the Inpatient Prospective Payment System, or IPPS, and has now granted the NTAP in the final IPPS rule. The NTAP provides up to $287,000 in additional Medicare reimbursement for inpatient treatment with YARTEMLEA. This is particularly important because Medicare beneficiaries represent approximately 30% of US allogeneic transplant recipients. The NTAP for YARTEMLEA is expected to become effective 1 October. Commercial payer experience also remains positive. Prior authorization requests are being approved consistently, and centers receiving appropriate payment reflect growing acceptance of YARTEMLEA among commercial insurers.

Gregory Demopulos: The Centers for Medicare & Medicaid Services, or CMS, assigned YARTEMLEA a permanent product-specific healthcare common procedure coding system, or HCPCS J-code, effective 1 July. The J-code establishes a clear and consistent outpatient reimbursement pathway, reduces administrative burden, and supports more predictable payment for providers. CMS also recommended a new technology add-on payment, or NTAP, for YARTEMLEA under the fiscal year 2027 proposed rule for the Inpatient Prospective Payment System, or IPPS, and has now granted the NTAP in the final IPPS rule. The NTAP provides up to $287,000 in additional Medicare reimbursement for inpatient treatment with YARTEMLEA. This is particularly important because Medicare beneficiaries represent approximately 30% of US allogeneic transplant recipients. The NTAP for YARTEMLEA is expected to become effective 1 October. Commercial payer experience also remains positive. Prior authorization requests are being approved consistently, and centers receiving appropriate payment reflect growing acceptance of YARTEMLEA among commercial insurers.

Speaker #3: The J code establishes a clear and consistent outpatient reimbursement pathway, reduces administrative burden, and supports more predictable payment for providers. CMS also recommended a new technology add-on payment, or NTAP, for the Artemlia under the fiscal year 2027 proposed rule for the Inpatient Prospective Payment System, or IPPS, and has now granted the NTAP in the final IPPS rule.

Speaker #3: The NTAP provides up to $287,000 in additional Medicare reimbursement for inpatient treatment with Artemlia. This is particularly important because Medicare beneficiaries represent approximately 30 percent of U.S. allogeneic transplant recipients.

Speaker #3: The NTAP for Artemlia is expected to become effective October 1. Sentiment also remains positive. Prior authorization requests are being approved consistently, and centers receiving appropriate payment reflect growing acceptance of Artemlia among commercial insurers.

Speaker #3: We are preparing our HEOR analyses for presentation at upcoming scientific meetings and for peer-reviewed publication. We expect these analyses to further demonstrate Artemlia's clinical and economic value and support continued adoption.

Gregory A. Demopulos: We are preparing our HEOR analyses for presentation at upcoming scientific meetings and for peer-reviewed publication. We expect these analyses to further demonstrate YARTEMLEA's clinical and economic value and support continued adoption. Overall, early commercial indicators, including strong transplant center engagement, continued formulary and ordering momentum, and payer alignment with the approved label, reinforce our expectation that YARTEMLEA can become the standard of care for TA-TMA. Looking ahead, we continue to pursue expansion opportunities for YARTEMLEA and our broader MASP-2 platform. In June, following an oral explanation before the European Medicines Agency's Committee for Medicinal Products for Human Use, or CHMP, the committee adopted a negative opinion on our marketing authorization application for YARTEMLEA in TA-TMA. We believe the clinical evidence supports approval and have requested re-examination.

Gregory Demopulos: We are preparing our HEOR analyses for presentation at upcoming scientific meetings and for peer-reviewed publication. We expect these analyses to further demonstrate YARTEMLEA's clinical and economic value and support continued adoption. Overall, early commercial indicators, including strong transplant center engagement, continued formulary and ordering momentum, and payer alignment with the approved label, reinforce our expectation that YARTEMLEA can become the standard of care for TA-TMA. Looking ahead, we continue to pursue expansion opportunities for YARTEMLEA and our broader MASP-2 platform. In June, following an oral explanation before the European Medicines Agency's Committee for Medicinal Products for Human Use, or CHMP, the committee adopted a negative opinion on our marketing authorization application for YARTEMLEA in TA-TMA. We believe the clinical evidence supports approval and have requested re-examination.

Speaker #3: Overall, early commercial indicators, including strong transplant center engagement, continued formulary and ordering momentum, and payer alignment with the approved label, reinforce our expectation that Artemlia can become the standard of care for TATMA.

Speaker #3: Looking ahead, we continue to pursue expansion opportunities for the Artemlia and our broader mass. To platform. In June following an oral explanation before the European Medicines Agency's committee for medicinal products for human use or CHMP, the committee adopted a negative opinion on our marketing authorization application for the Artemlia in TATMA.

Speaker #3: We believe the clinical evidence supports approval and have requested re-examination. The application is supported by our pivotal narsoplimab trial data in TMA survival analyses, comparing narsoplimab-treated patients with an external registry of patients who did not receive narsoplimab, and data from more than 220 adult and pediatric patients treated through our expanded access program.

Gregory A. Demopulos: The application is supported by our pivotal narsoplimab trial data in TA-TMA survival analyses comparing narsoplimab-treated patients with an external registry of patients who did not receive narsoplimab and data from more than 220 adult and pediatric patients treated through our expanded access program. This same body of evidence supported YARTEMLEA's FDA approval. As part of the re-examination, an Ad Hoc Expert Group, or AHEG, comprising independent external scientific and clinical experts in hematology, stem cell transplantation, and TA-TMA, will review the evidence and address questions central to CHMP's assessment. The AHEG will hear from Omeros and from transplant experts with direct experience using narsoplimab, and new rapporteurs will review the application. We remain focused on obtaining approval in Europe. Meanwhile, we continue to provide YARTEMLEA to European patients with TA-TMA through our expanded access program, prioritizing children. We also continue to assess opportunities to expand the YARTEMLEA label.

Gregory Demopulos: The application is supported by our pivotal narsoplimab trial data in TA-TMA survival analyses comparing narsoplimab-treated patients with an external registry of patients who did not receive narsoplimab and data from more than 220 adult and pediatric patients treated through our expanded access program. This same body of evidence supported YARTEMLEA's FDA approval. As part of the re-examination, an Ad Hoc Expert Group, or AHEG, comprising independent external scientific and clinical experts in hematology, stem cell transplantation, and TA-TMA, will review the evidence and address questions central to CHMP's assessment. The AHEG will hear from Omeros and from transplant experts with direct experience using narsoplimab, and new rapporteurs will review the application. We remain focused on obtaining approval in Europe. Meanwhile, we continue to provide YARTEMLEA to European patients with TA-TMA through our expanded access program, prioritizing children. We also continue to assess opportunities to expand the YARTEMLEA label.

Speaker #3: This same body of evidence supported the Artemlia's FDA approval. As part of the re-examination and ad hoc expert group or AHEG comprising independent external scientific and clinical experts in hematology, stem cell transplantation, and TATMA, will review the evidence and address questions central to CHMP's assessment.

Speaker #3: The AHEG will hear from Omeros and from transplant experts with direct experience using narsoplimab, and new rapporteurs will review the application. We remain focused on obtaining approval in Europe; meanwhile, we continue to provide narsoplimab to European patients with TA-TMA through our expanded access program.

Speaker #3: Prioritizing children. We also continue to assess opportunities to expand the Artimelia label. We are prioritizing indications with a strong biologic rationale for MASP-2 inhibition, particularly those involving endothelial injury, lectin pathway activation, and thrombo-inflammation.

Gregory A. Demopulos: We are prioritizing indications with a strong biologic rationale for MASP-2 inhibition, particularly those involving endothelial injury, lectin pathway activation, and thromboinflammation. These encompass an extensive list of indications, including chemotherapy-induced TMA, acute respiratory distress syndrome, or ARDS, and other transplant-related endothelial injury syndromes. We plan to evaluate new indications through preclinical research, investigator-initiated studies, and clinical trials, each as appropriate. By year-end, we expect enrollment to begin in two investigator-sponsored and Omeros-supported studies, one evaluating YARTEMLEA in hyperinflammatory ARDS, and the other assessing prophylactic YARTEMLEA in pediatric patients with predictably severe TA-TMA. Our MASP-2 platform extends beyond YARTEMLEA. We are advancing our phase II-ready long-acting MASP-2 antibody OMS1029 and an oral small molecule MASP-2 inhibitor program. Both are designed for chronic indications requiring long-term administration, including membranous nephropathy and neurodegenerative diseases such as Parkinson's and Alzheimer's.

Gregory Demopulos: We are prioritizing indications with a strong biologic rationale for MASP-2 inhibition, particularly those involving endothelial injury, lectin pathway activation, and thromboinflammation. These encompass an extensive list of indications, including chemotherapy-induced TMA, acute respiratory distress syndrome, or ARDS, and other transplant-related endothelial injury syndromes. We plan to evaluate new indications through preclinical research, investigator-initiated studies, and clinical trials, each as appropriate. By year-end, we expect enrollment to begin in two investigator-sponsored and Omeros-supported studies, one evaluating YARTEMLEA in hyperinflammatory ARDS, and the other assessing prophylactic YARTEMLEA in pediatric patients with predictably severe TA-TMA. Our MASP-2 platform extends beyond YARTEMLEA. We are advancing our phase II-ready long-acting MASP-2 antibody OMS1029 and an oral small molecule MASP-2 inhibitor program. Both are designed for chronic indications requiring long-term administration, including membranous nephropathy and neurodegenerative diseases such as Parkinson's and Alzheimer's.

Speaker #3: These encompass an extensive list of indications, including chemotherapy-induced TA-TMA, acute respiratory distress syndrome (ARDS), and other transplant-related endothelial injury syndromes. We plan to evaluate new indications through preclinical research, investigator-initiated studies, and clinical trials, each as appropriate.

Speaker #3: By year-end, we expect enrollment to begin in two investigator-sponsored and Omeros-supported studies: one evaluating Artemelia in hyperinflammatory ARDS, and the other assessing prophylactic Artemelia in pediatric patients with predictably severe TATMA.

Speaker #3: Our mass to platform extends beyond the Artemlia. We are advancing our phase two ready long acting mass to antibody OMS 1029 and an oral small molecule mass to inhibitor program.

Speaker #3: Both are designed for chronic indications requiring long-term administration including membranous nephropathy and neurodegenerative diseases such as Parkinson's and Alzheimer's. In phase one clinical trials, OMS 1029 demonstrated the clear ability to inhibit mass to over an extended duration with once quarterly subcutaneous or intravenous dosing.

Gregory A. Demopulos: In phase I clinical trials, OMS1029 demonstrated the clear ability to inhibit MASP-2 over an extended duration with once quarterly subcutaneous or intravenous dosing. Our small molecule MASP-2 inhibitor is targeting once-daily oral dosing. We are finalizing selection of the initial phase II indication for OMS1029. Clinical drug product and matching placebo have been manufactured and are available. For our MASP-2 small molecule program, we have one ongoing study to complete, after which we expect to select an orally delivered development candidate for that program. Our collaboration with Novo Nordisk also continues to progress smoothly. The Novo transaction provides up to $2.1 billion in upfront and milestone payments, plus royalties ranging from high single digits to the high teens. At closing in Q4 2025, we received $240 million in upfront cash, which funded the YARTEMLEA launch and other operations.

Gregory Demopulos: In phase I clinical trials, OMS1029 demonstrated the clear ability to inhibit MASP-2 over an extended duration with once quarterly subcutaneous or intravenous dosing. Our small molecule MASP-2 inhibitor is targeting once-daily oral dosing. We are finalizing selection of the initial phase II indication for OMS1029. Clinical drug product and matching placebo have been manufactured and are available. For our MASP-2 small molecule program, we have one ongoing study to complete, after which we expect to select an orally delivered development candidate for that program. Our collaboration with Novo Nordisk also continues to progress smoothly. The Novo transaction provides up to $2.1 billion in upfront and milestone payments, plus royalties ranging from high single digits to the high teens. At closing in Q4 2025, we received $240 million in upfront cash, which funded the YARTEMLEA launch and other operations.

Speaker #3: And our small molecule mass to inhibitor is targeting once daily oral dosing. We are finalizing selection of the initial phase two indication for OMS 1029, clinical drug product and matching placebo, have been manufactured and are available.

Speaker #3: For our mass to small molecule program, we have one ongoing study to complete after which we expect to select an orally delivered development candidate for that program.

Speaker #3: Our collaboration with Novo Nordisk also continues to progress smoothly. The Novo transaction provides up to $2.1 billion in upfront and milestone payments, plus royalties ranging from high single digits to the high teens.

Speaker #3: At closing in the fourth quarter of 2025, we received $240 million in upfront cash, which funded the Artemlia launch and other operations. We also are eligible to receive up to an additional $100 million in near-term milestone payments.

Gregory A. Demopulos: We also are eligible to receive up to an additional $100 million in near-term milestone payments. Our interactions with Novo remain collaborative and productive, and we continue to provide transition services at Novo's cost. Turning now to development programs beyond our complement inhibitor franchise, our PDE7 inhibitor program evaluating OMS527 for cocaine use disorder remains fully funded by a grant from the National Institute on Drug Abuse, or NIDA. Earlier this year, we met with FDA regarding the agency's request for additional non-clinical information before initiating the inpatient study. That non-clinical work has initiated, and we expect to start enrollment in the inpatient clinical trial by year-end. Based on its mechanism of action and our extensive preclinical data, we believe that OMS527 could be effective across a broad range of addiction and compulsive disorders.

Gregory Demopulos: We also are eligible to receive up to an additional $100 million in near-term milestone payments. Our interactions with Novo remain collaborative and productive, and we continue to provide transition services at Novo's cost. Turning now to development programs beyond our complement inhibitor franchise, our PDE7 inhibitor program evaluating OMS527 for cocaine use disorder remains fully funded by a grant from the National Institute on Drug Abuse, or NIDA. Earlier this year, we met with FDA regarding the agency's request for additional non-clinical information before initiating the inpatient study. That non-clinical work has initiated, and we expect to start enrollment in the inpatient clinical trial by year-end. Based on its mechanism of action and our extensive preclinical data, we believe that OMS527 could be effective across a broad range of addiction and compulsive disorders.

Speaker #3: Our interactions with Novo remain collaborative and productive, and we continue to provide transition services at Novo's cost. Turning now to development programs beyond our complement inhibitor franchise, our PDE7 inhibitor program evaluating OMS527 for cocaine use disorder remains fully funded by a grant from the National Institute on Drug Abuse, or NIDA.

Speaker #3: Earlier this year, we met with the FDA regarding the agency's request for additional non-clinical information before initiating the inpatient study. That non-clinical work has been initiated, and we expect to start enrollment in the inpatient clinical trial by year-end.

Speaker #3: Based on its mechanism of action and our extensive preclinical data, we believe that OMS527 could be effective across a broad range of addiction and compulsive disorders.

Speaker #3: Our targeted complement activating therapy, or TCAT, platform is a novel class of recombinant antibodies designed to target and directly kill pathogens, including bacteria, fungi, viruses, and parasites.

Gregory A. Demopulos: Our targeted complement activating therapy, or T-CAT platform, is a novel class of recombinant antibodies designed to target and directly kill pathogens, including bacteria, fungi, viruses, and parasites. Our initial focus is on infections caused by multi-drug resistant organisms among medicine's most critical unmet needs. Unlike antimicrobial agents on the market, T-CAT is designed to kill pathogens regardless of resistance profile and without promoting or enhancing resistance. The foundational manuscript describing our T-CAT technology was published in "Science Translational Medicine" in June of this year. The manuscript details the technology and demonstrates that T-CAT monoclonal antibodies safely and effectively treated infections in translationally relevant murine models of sepsis and pneumonia caused by multiple different drug-resistant bacterial species prioritized by the World Health Organization as posing the greatest threat to human health. The data underscore T-CAT's potential as a next-generation platform with broad applicability across microbial species, including multi-drug resistant pathogens.

Gregory Demopulos: Our targeted complement activating therapy, or T-CAT platform, is a novel class of recombinant antibodies designed to target and directly kill pathogens, including bacteria, fungi, viruses, and parasites. Our initial focus is on infections caused by multi-drug resistant organisms among medicine's most critical unmet needs. Unlike antimicrobial agents on the market, T-CAT is designed to kill pathogens regardless of resistance profile and without promoting or enhancing resistance. The foundational manuscript describing our T-CAT technology was published in "Science Translational Medicine" in June of this year. The manuscript details the technology and demonstrates that T-CAT monoclonal antibodies safely and effectively treated infections in translationally relevant murine models of sepsis and pneumonia caused by multiple different drug-resistant bacterial species prioritized by the World Health Organization as posing the greatest threat to human health. The data underscore T-CAT's potential as a next-generation platform with broad applicability across microbial species, including multi-drug resistant pathogens.

Speaker #3: Our initial focus is on infections caused by multi-drug-resistant organisms, among medicine's most critical unmet needs. Unlike antimicrobial agents on the market, TCAT is designed to kill pathogens regardless of resistance profile and without promoting or enhancing resistance.

Speaker #3: The foundational manuscript describing our TCAT technology was published in Science Translational Medicine in June of this year. The manuscript details the technology and demonstrates that TCAT monoclonal antibodies safely and effectively treated infections in translationally relevant murine models of sepsis and pneumonia caused by multiple different drug resistant bacterial species prioritized by the World Health Organization as posing the greatest threat to human health.

Speaker #3: The data underscore TCAT's potential as a next-generation platform with broad applicability across microbial species, including multi-drug-resistant pathogens. We look forward to advancing TCAT toward the clinic.

Gregory A. Demopulos: We look forward to advancing T-CAT toward the clinic. Finally, OncotoX-AML, or OMS-805, is the lead program in our oncology platform. It is an engineered biologic designed to treat acute myeloid leukemia, or AML, the most common and one of the deadliest acute leukemias in adults. Across tumor-bearing animal models and in vitro human AML cell line studies, OncotoX-AML has consistently demonstrated efficacy superior to current standards of care, even at very low doses. Importantly, this efficacy was independent of AML-related mutations, including TP53 and FLT3, which historically have been very difficult to treat. In a non-human primate study, a single course of OncotoX-AML produced the desired pharmacologic response, a marked selective reversible and dose-related reduction in myeloid progenitor cells by up to 99%. Treatment was well-tolerated with no safety signal of concern.

Gregory Demopulos: We look forward to advancing T-CAT toward the clinic. Finally, OncotoX-AML, or OMS-805, is the lead program in our oncology platform. It is an engineered biologic designed to treat acute myeloid leukemia, or AML, the most common and one of the deadliest acute leukemias in adults. Across tumor-bearing animal models and in vitro human AML cell line studies, OncotoX-AML has consistently demonstrated efficacy superior to current standards of care, even at very low doses. Importantly, this efficacy was independent of AML-related mutations, including TP53 and FLT3, which historically have been very difficult to treat. In a non-human primate study, a single course of OncotoX-AML produced the desired pharmacologic response, a marked selective reversible and dose-related reduction in myeloid progenitor cells by up to 99%. Treatment was well-tolerated with no safety signal of concern.

Speaker #3: Finally, oncotox AML or OMS 805 is the lead program in our oncology platform. It's an engineered biologic designed to treat acute myeloid leukemia or AML, the most common and one of the deadliest acute leukemias in adults.

Speaker #3: Across tumor-bearing animal models and in vitro human AML cell line studies, ONCOTox AML has consistently demonstrated efficacy superior to current standards of care.

Speaker #3: Even at very low doses. Importantly, this efficacy was independent of AML-related mutations including TP53 and FLT3, which historically have been very difficult to treat.

Speaker #3: In a non-human primate study, a single course of OncoTox AML produced the desired pharmacologic response—a marked, selective, reversible, and dose-related reduction in myeloid progenitor cells by up to 99%.

Speaker #3: Treatment was well tolerated with no safety signal of concern. We have entered into an agreement with a leading contract biologics manufacturer for process development and clinical supply of OMS805 drug substance.

Gregory A. Demopulos: We have entered into agreement with a leading contract biologics manufacturer for process development and clinical supply of OMS-805 drug substance. IND-enabling studies are underway. Given the novelty of the OncoTox program, its potential applicability across hematologic malignancies, and the breadth of our unpublished data and pending patent claims, we plan to limit further public disclosure until OMS-805 enters human studies and begins generating clinical data. Working with our advisory board of leading AML experts, we are preparing for a first-in-human trial targeted to begin in late 2027. That concludes our corporate and program update. I will now turn the call over to David for a more detailed review of our financial results. David?

Gregory Demopulos: We have entered into agreement with a leading contract biologics manufacturer for process development and clinical supply of OMS-805 drug substance. IND-enabling studies are underway. Given the novelty of the OncoTox program, its potential applicability across hematologic malignancies, and the breadth of our unpublished data and pending patent claims, we plan to limit further public disclosure until OMS-805 enters human studies and begins generating clinical data. Working with our advisory board of leading AML experts, we are preparing for a first-in-human trial targeted to begin in late 2027. That concludes our corporate and program update. I will now turn the call over to David for a more detailed review of our financial results. David?

Speaker #3: IND enabling studies are underway. Given the novelty of the oncotox program, its potential applicability across hematologic malignancies, and the breadth of our unpublished data and pending patent claims, we plan to limit further public disclosure until OMS 805 enters human studies and begins generating clinical data.

Speaker #3: Working with our advisory board of leading AML experts, we are preparing for a first-in-human trial targeted to begin in late 2027. That concludes our corporate and program update.

Speaker #3: I'll now turn the call over to David for a more detailed review of our financial results. David.

Speaker #1: Thanks, Greg.

David J. Borges: Thanks, Craig. Our Q2 results reflect continued focus on commercial execution of the YARTEMLEA launch and actions to strengthen our capital structure. Net income for Q2 2026 was $13.2 million, or $0.18 per share, compared with net income of $56.1 million, or $0.78 per share in Q1 2026. Q2 results included a $12.1 million non-cash mark-to-market gain on the embedded derivative associated with our 2029 convertible notes and a $700,000 remeasurement loss on our payment obligation for the 2029 note repurchases. By comparison, Q1 results included a $73.1 million non-cash mark-to-market gain on the embedded derivative associated with the 2029 convertible notes. To provide additional visibility into our operating performance, we also present non-GAAP adjusted results that exclude non-cash remeasurements of embedded derivatives and other financial instruments.

David Borges: Thanks, Craig. Our Q2 results reflect continued focus on commercial execution of the YARTEMLEA launch and actions to strengthen our capital structure. Net income for Q2 2026 was $13.2 million, or $0.18 per share, compared with net income of $56.1 million, or $0.78 per share in Q1 2026. Q2 results included a $12.1 million non-cash mark-to-market gain on the embedded derivative associated with our 2029 convertible notes and a $700,000 remeasurement loss on our payment obligation for the 2029 note repurchases. By comparison, Q1 results included a $73.1 million non-cash mark-to-market gain on the embedded derivative associated with the 2029 convertible notes. To provide additional visibility into our operating performance, we also present non-GAAP adjusted results that exclude non-cash remeasurements of embedded derivatives and other financial instruments.

Speaker #2: Our second quarter results reflect continued focus on commercial execution of the Artelia launch and actions to strengthen our capital structure. Net income for the second quarter of 2026 was 13.2 million or 18 cents per share compared with net income of 56.1 million or 78 cents per share in the first quarter of 2026.

Speaker #2: Second quarter results included a 12.1 million non-cash mark to market gain on the embedded derivative associated with our 2029 convertible notes and a 700,000 dollar remeasurement loss on our payment obligation for the 2029 note repurchases.

Speaker #2: By comparison, first quarter results included a $73.1 million non-cash mark-to-market gain on the embedded derivative associated with the 2029 convertible notes.

Speaker #2: To provide additional visibility into our operating performance, we also present non-gap adjusted results that exclude non-cash remeasurements of embedded derivatives and other financial instruments.

Speaker #2: Excluding these non-cash remeasurements, non-GAAP adjusted net income for the second quarter was $1.8 million, or $0.02 net income per share, compared with a non-GAAP adjusted net loss of $17.1 million, or $0.24 net loss per share, for the first quarter.

David J. Borges: Excluding these non-cash remeasurements, non-GAAP adjusted net income for the Q2 was $1.8 million, or $0.02 net income per share, compared with a non-GAAP adjusted net loss of $17.1 million, or $0.24 net loss per share for the Q1. As of 30 June 2026, we had $132 million in cash and investments, and company-wide net cash provided by operations in the Q2 was $4.1 million. During the Q2, we repurchased and retired approximately 489,000 shares of our common stock at an average price of $11.70 per share for a total of $5.7 million. Through 30 June 2026, we had repurchased and retired approximately 843,000 shares at the same average price for a total of $9.9 million. In June and July of 2026, we entered into agreements for two privately negotiated cash repurchases totaling $30.5 million aggregate principal amount of our 2029 convertible notes.

David Borges: Excluding these non-cash remeasurements, non-GAAP adjusted net income for the Q2 was $1.8 million, or $0.02 net income per share, compared with a non-GAAP adjusted net loss of $17.1 million, or $0.24 net loss per share for the Q1. As of 30 June 2026, we had $132 million in cash and investments, and company-wide net cash provided by operations in the Q2 was $4.1 million. During the Q2, we repurchased and retired approximately 489,000 shares of our common stock at an average price of $11.70 per share for a total of $5.7 million. Through 30 June 2026, we had repurchased and retired approximately 843,000 shares at the same average price for a total of $9.9 million. In June and July of 2026, we entered into agreements for two privately negotiated cash repurchases totaling $30.5 million aggregate principal amount of our 2029 convertible notes.

Speaker #2: As of June 30, 2026, we had 132 million dollars in cash and investments and company wide net cash provided by operations in the second quarter was 4.1 million dollars.

Speaker #2: During the second quarter, we repurchased and retired approximately 489,000 shares of our common stock at an average price of 11 dollars and 70 cents per share for a total of 5.7 million dollars.

Speaker #2: Through June 30, 2026, we had repurchased and retired approximately 843,000 shares at the same average price, for a total of $9.9 million. In June and July of '26, we entered into agreements for two privately negotiated cash repurchases totaling $30.5 million aggregate principal amount of our 2029 convertible notes.

Speaker #2: Both transactions closed in July reducing our outstanding debt which consists solely of the 29 notes by approximately 43% from 70.8 million to 40.3 million.

David J. Borges: Both transactions closed in July, reducing our outstanding debt, which consists solely of the 2029 notes, by approximately 43%, from $70.8 million to $40.3 million. The aggregate purchase price was $60.2 million, plus $200,000 of accrued and unpaid interest. These transactions reduced leverage, future cash interest expense, and potential dilution by opportunistically repurchasing and retiring a portion of the 2029 convertible notes. They also reduced the number of shares issuable on conversion from approximately 11.4 million to 6.5 million. As Greg noted, YARTEMLEA maintains strong commercial momentum in the Q2. Gross product revenues were $32.2 million, all from YARTEMLEA sales, compared with $11.1 million in the Q1, and net revenues were $28.5 million, compared with $9.9 million in the Q1. Gross and net adjustments were approximately 11.5%, compared with approximately 11% in the Q1 and remained within our expectations.

David Borges: Both transactions closed in July, reducing our outstanding debt, which consists solely of the 2029 notes, by approximately 43%, from $70.8 million to $40.3 million. The aggregate purchase price was $60.2 million, plus $200,000 of accrued and unpaid interest. These transactions reduced leverage, future cash interest expense, and potential dilution by opportunistically repurchasing and retiring a portion of the 2029 convertible notes. They also reduced the number of shares issuable on conversion from approximately 11.4 million to 6.5 million. As Greg noted, YARTEMLEA maintains strong commercial momentum in the Q2. Gross product revenues were $32.2 million, all from YARTEMLEA sales, compared with $11.1 million in the Q1, and net revenues were $28.5 million, compared with $9.9 million in the Q1. Gross and net adjustments were approximately 11.5%, compared with approximately 11% in the Q1 and remained within our expectations.

Speaker #2: The aggregate purchase price was $60.2 million, plus $200,000 of accrued and unpaid interest. These transactions reduced leverage, future cash interest expense, and potential dilution by opportunistically repurchasing and retiring a portion of the '29 convertible notes.

Speaker #2: They also reduced the number of shares issuable on conversion from approximately 11.4 million to 6.5 million. As Greg noted, the Artelia maintains strong commercial momentum in the second quarter.

Speaker #2: Gross product revenues were 32.2 million all from the Artelia sales compared with 11.1 million in the first quarter and net revenues were 28.5 million.

Speaker #2: Compared with 9.9 million in the first quarter. Gross to net adjustments were approximately 11.5% compared with approximately 11% in the first quarter and remained within our expectations.

Speaker #2: These adjustments consisted primarily of chargebacks and distribution fees. Cost and expenses from continuing operations before interest and other income were 28.5 million dollars and increase of 1.1 million from the first quarter.

David J. Borges: These adjustments consisted primarily of chargebacks and distribution fees. Costs and expenses from continuing operations before interest and other income were $28.5 million, an increase of $1.1 million from the Q1. Under the transition services agreement entered into in connection with the zaltenibart transaction, we continue to be reimbursed for costs incurred in providing transition services, including third-party expenses and internal personnel costs. We also recognized $3.3 million of reimbursement from Novo Nordisk for zaltenibart inventory transfer during the quarter, which we recorded in other income. Interest expense was $7.6 million. The primary components were the DRI royalty obligation and interest on the 2029 convertible notes.

David Borges: These adjustments consisted primarily of chargebacks and distribution fees. Costs and expenses from continuing operations before interest and other income were $28.5 million, an increase of $1.1 million from the Q1. Under the transition services agreement entered into in connection with the zaltenibart transaction, we continue to be reimbursed for costs incurred in providing transition services, including third-party expenses and internal personnel costs. We also recognized $3.3 million of reimbursement from Novo Nordisk for zaltenibart inventory transfer during the quarter, which we recorded in other income. Interest expense was $7.6 million. The primary components were the DRI royalty obligation and interest on the 2029 convertible notes.

Speaker #2: Under the transition services agreement entered into in connection with the Zoltán Abar transaction, we continue to be reimbursed for cost incurred in providing transition services including third party expenses and internal personnel cost.

Speaker #2: We also recognize 3.3 million dollars of reimbursement from Novo Nordisk for Zoltán Abar inventory transfer during the quarter which we recorded in other income.

Speaker #2: Interest expense was 7.6 million dollars the primary components were the DRI royalty obligation and interest on the 2029 convertible notes. Excluding the Amidria royalty obligations to DRI which is fully offset by amounts received from Rainer and therefore has no economic impact on Omeros, and non-cash amortization of debt issuance costs and discounts contractual cash interest expense was 1.7 million dollars down 100,000 dollars from the first quarter.

David J. Borges: Excluding the OMIDRIA royalty obligations to DRI, which is fully offset by amounts received from Rayner and therefore has no economic impact on Omeros, and non-cash amortization of debt issuance costs and discounts, contractual cash interest expense was $1.7 million, down $100,000 from the Q1. Interest and other income totaled $4.6 million in the Q2, compared with $1.5 million in the Q1. The increase was primarily attributable to the Novo Nordisk inventory reimbursement. As previously noted, we recorded a $12.1 million non-cash mark-to-market gain on the embedded derivative related to our 2029 convertible notes. The change was driven primarily by the decline in our stock price from $10.56 per share at 31 March to $9.51 per share at 30 June. Because the derivative's value is closely tied to our stock price, increases in our share price generally produce non-cash losses, while decreases generally produce non-cash gains.

David Borges: Excluding the OMIDRIA royalty obligations to DRI, which is fully offset by amounts received from Rayner and therefore has no economic impact on Omeros, and non-cash amortization of debt issuance costs and discounts, contractual cash interest expense was $1.7 million, down $100,000 from the Q1. Interest and other income totaled $4.6 million in the Q2, compared with $1.5 million in the Q1. The increase was primarily attributable to the Novo Nordisk inventory reimbursement. As previously noted, we recorded a $12.1 million non-cash mark-to-market gain on the embedded derivative related to our 2029 convertible notes. The change was driven primarily by the decline in our stock price from $10.56 per share at 31 March to $9.51 per share at 30 June. Because the derivative's value is closely tied to our stock price, increases in our share price generally produce non-cash losses, while decreases generally produce non-cash gains.

Speaker #2: Interest and other income totaled $4.6 million in the second quarter compared with $1.5 million in the first quarter. The increase was primarily attributable to the Novo Nordisk inventory reimbursements.

Speaker #2: As previously noted, we recorded a 12.1 million dollar non-cash mark to market gain on the embedded derivative related to our 29 convertible notes. The change was driven primarily by the decline in our stock price from 10 dollars and 56 cents per share at March 31st to 9 dollars and 51 cents per share at June 30th.

Speaker #2: Because the derivative's value is closely tied to our stock price, increases in our share price generally produce non-cash losses while decreases generally produce non-cash gains.

Speaker #2: This adjustment does not affect our operating performance or liquidity and is excluded from our non-gap adjusted results. Following the July note repurchases, future mark to market adjustments will reflect the reduced principal balance.

David J. Borges: This adjustment does not affect our operating performance or liquidity and is excluded from our non-GAAP adjusted results. Following the July note repurchases, future mark-to-market adjustments will reflect the reduced principal balance. In connection with the June agreement to repurchase the first tranche of our 2029 convertible notes, comprising $16 million principal amount, we recorded a $1.9 million loss. The loss reflects the difference between the fair value of the payment obligation, the carrying amount of the repurchased notes, net of unamortized discount and issuance costs, and the derecognition of the associated embedded derivative liability. Because the agreements for the second tranche, comprising 14.5 million principal amount, were entered into in July 2026, the related accounting will be reflected in our Q3 results. Income from discontinued operations in Q2 was $6.6 million, up $1.8 million from Q1, primarily due to a lower remeasurement adjustment.

David Borges: This adjustment does not affect our operating performance or liquidity and is excluded from our non-GAAP adjusted results. Following the July note repurchases, future mark-to-market adjustments will reflect the reduced principal balance. In connection with the June agreement to repurchase the first tranche of our 2029 convertible notes, comprising $16 million principal amount, we recorded a $1.9 million loss. The loss reflects the difference between the fair value of the payment obligation, the carrying amount of the repurchased notes, net of unamortized discount and issuance costs, and the derecognition of the associated embedded derivative liability. Because the agreements for the second tranche, comprising 14.5 million principal amount, were entered into in July 2026, the related accounting will be reflected in our Q3 results. Income from discontinued operations in Q2 was $6.6 million, up $1.8 million from Q1, primarily due to a lower remeasurement adjustment.

Speaker #2: In connection with the June agreement to repurchase the first tranche of our 2029 convertible notes comprising 16 million dollars principal amount, we recorded a 1.9 million dollar loss the loss reflects a difference between the fair value of the payment obligation the carrying amount of the repurchase notes net of unamortized discount and issuance cost and the de-recognition of the associated embedded derivative liability.

Speaker #2: Because the agreements for the second tranche comprising 14.5 million principal amount were entered into in July 2026, the related accounting will be reflected in our third quarter results.

Speaker #2: Income from discontinued operations in the second quarter was $6.6 million, up $1.8 million from the first quarter, primarily due to a lower remeasurement adjustment.

Speaker #2: Because US Amidria royalties passed directly to DRI, fluctuations in these payments do not affect our cash position. Now let me turn to our expectations for the third quarter of 2026.

David J. Borges: Because US OMIDRIA royalties pass directly to DRI, fluctuations in these payments do not affect our cash position. Now let me turn to our expectations for Q3 2026. We expect total operating expenses from continuing operations to be slightly higher than in Q2. Research and development expenses are expected to increase primarily due to increased spending on our OMS-805 OncotoX program. Sales and marketing expenses are also expected to increase, reflecting continued investment in YARTEMLEA commercial infrastructure, marketing, and launch activities. Although we are encouraged by YARTEMLEA's continued commercial momentum, we are not providing revenue guidance at this time. We believe it is prudent to gain additional experience with prescribing trends, patient demand, and market dynamics. We remain focused on expanding physician awareness and disease education and ensuring continued timely reimbursement.

David Borges: Because US OMIDRIA royalties pass directly to DRI, fluctuations in these payments do not affect our cash position. Now let me turn to our expectations for Q3 2026. We expect total operating expenses from continuing operations to be slightly higher than in Q2. Research and development expenses are expected to increase primarily due to increased spending on our OMS-805 OncotoX program. Sales and marketing expenses are also expected to increase, reflecting continued investment in YARTEMLEA commercial infrastructure, marketing, and launch activities. Although we are encouraged by YARTEMLEA's continued commercial momentum, we are not providing revenue guidance at this time. We believe it is prudent to gain additional experience with prescribing trends, patient demand, and market dynamics. We remain focused on expanding physician awareness and disease education and ensuring continued timely reimbursement.

Speaker #2: We expect total operating expenses from continuing operations to be slightly higher than in the second quarter research and development expenses are expected to increase primarily due to increased spending on our OMS 805 Oncotox program sales and marketing expenses are also expected to increase reflecting continued investment in the Artelia commercial infrastructure marketing and launch activities.

Speaker #2: Although we're encouraged by Artelia's continued commercial momentum, we're not providing revenue guidance at this time. We believe it is prudent to gain additional experience with prescribing trends, patient demand, and market dynamics.

Speaker #2: We remain focused on expanding physician awareness and disease education and ensuring continued timely reimbursement. Interest and other income are expected to be lower in the third quarter primarily because the Novo Nordisk inventory reimbursement recognized in the second quarter will not recur interest expense is expected to be approximately 6.5 million dollars reflecting the reduction in the outstanding debt following the repurchases this estimate excludes potential non-cash adjustments related to the Amidria royalty obligation income from discontinued operations is expected to be between 5 and 6 million dollars again excluding any remeasurement adjustments related to the Amidria contact contract royalty asset and finally as a reminder our reported results will continue to reflect mark to market adjustments on the embedded derivative relating to our remaining 29 convertible notes these adjustments are non-cash they can be volatile and are driven largely by stock price and other market inputs.

David J. Borges: Interest and other income are expected to be lower in Q3, primarily because the Novo Nordisk inventory reimbursement recognized in Q2 will not recur. Interest expense is expected to be approximately $6.5 million, reflecting the reduction in the outstanding debt following the repurchases. This estimate excludes potential non-cash adjustments related to the OMIDRIA royalty obligation. Income from discontinued operations is expected to be between $5 million and $6 million, again, excluding any remeasurement adjustments related to the OMIDRIA contract royalty asset. As a reminder, our reported results will continue to reflect mark-to-market adjustments on the embedded derivative relating to our remaining 2029 convertible notes. These adjustments are non-cash, they can be volatile, and are driven largely by stock price and other market inputs. We therefore present non-GAAP adjusted income and loss to provide additional visibility into underlying operating performance.

David Borges: Interest and other income are expected to be lower in Q3, primarily because the Novo Nordisk inventory reimbursement recognized in Q2 will not recur. Interest expense is expected to be approximately $6.5 million, reflecting the reduction in the outstanding debt following the repurchases. This estimate excludes potential non-cash adjustments related to the OMIDRIA royalty obligation. Income from discontinued operations is expected to be between $5 million and $6 million, again, excluding any remeasurement adjustments related to the OMIDRIA contract royalty asset. As a reminder, our reported results will continue to reflect mark-to-market adjustments on the embedded derivative relating to our remaining 2029 convertible notes. These adjustments are non-cash, they can be volatile, and are driven largely by stock price and other market inputs. We therefore present non-GAAP adjusted income and loss to provide additional visibility into underlying operating performance.

Speaker #2: We therefore present non-gap adjusted income and loss to provide additional visibility into underlying operating performance. And with that I'll turn the call back over to Greg.

David J. Borges: With that, I will turn the call back over to Greg. Greg?

David Borges: With that, I will turn the call back over to Greg. Greg?

Speaker #2: Greg.

Speaker #1: Thanks David. Operator, please open the call to questions.

Gregory A. Demopulos: Thanks, David. Operator, please open the call to questions.

Gregory Demopulos: Thanks, David. Operator, please open the call to questions.

Speaker #3: We will now begin the question and answer session. If you would like to ask a question please raise your hand now. The raise hand button can be found in the center of the toolbar at the bottom of your screen on Zoom desktop and on the left side of the toolbar on Zoom mobile.

Operator: We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. The Raise Hand button can be found in the center of the toolbar at the bottom of your screen on Zoom desktop, and on the left side of the toolbar on Zoom mobile. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brandon Folkes with H.C. Wainwright. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. The Raise Hand button can be found in the center of the toolbar at the bottom of your screen on Zoom desktop, and on the left side of the toolbar on Zoom mobile. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brandon Folkes with H.C. Wainwright. Your line is open. Please go ahead.

Speaker #3: If you have dialed into today's call please press star 9 to raise your hand and star 6 to unmute. Please stand by while we compile the Q&A roster.

Speaker #3: Your first question comes from the line of Brandon Foulkes with HC Wainwright. Your line is open. Please go ahead.

Speaker #4: Hi. Thanks for taking my questions and congrats on a very good quarter. Maybe just two from me you know I guess firstly with the AstraZeneca Altamira data released you know are you having any updated conversations around C5 use at all obviously it's off label right but you know I guess any color in terms of why transplant center would still use the C5 at all for these TATMA patients and then secondly obviously very big quarter here congrats on that you know meaningfully ahead of a lot of forecasts so I wanted to see if you could just try put this in perspective relative to your internal forecasts you know especially the company-wide cash flow forecast you put out earlier you know and then along those lines you know do month-to-month variability as you called out at your AGM.

Brandon Folkes: Hi. Thanks for taking my questions, and congrats on a very good quarter. Maybe just two from me. Firstly, with the AstraZeneca Omeros data release, are you having any updated conversations around C5 use at all? Obviously, it is off-label, right? I guess any color in terms of why a transplant center would still use the C5 at all for these TA-TMA patients. Secondly, obviously, very big quarter here. Congrats on that. Meaningfully ahead of a lot of forecasts. I wanted to see if you could just try put this in perspective relative to your internal forecasts, especially the company-wide cash flow forecast you put out earlier. Along those lines, do you still expect month-to-month variability as you called out at your AGM? Thank you.

Brandon Folkes: Hi. Thanks for taking my questions, and congrats on a very good quarter. Maybe just two from me. Firstly, with the AstraZeneca Omeros data release, are you having any updated conversations around C5 use at all? Obviously, it is off-label, right? I guess any color in terms of why a transplant center would still use the C5 at all for these TA-TMA patients. Secondly, obviously, very big quarter here. Congrats on that. Meaningfully ahead of a lot of forecasts. I wanted to see if you could just try put this in perspective relative to your internal forecasts, especially the company-wide cash flow forecast you put out earlier. Along those lines, do you still expect month-to-month variability as you called out at your AGM? Thank you.

Speaker #4: Thank you.

Speaker #1: Thanks, Brandon. With respect to the first question regarding C5 inhibition, as you noted, rabulizumab previously missed the endpoint in its open-label pediatric study and then recently reported that it as well had missed the endpoint in its controlled adult trial.

Gregory A. Demopulos: Thanks, Brandon. With respect to the first question regarding C5 inhibition, as you noted, ravulizumab previously missed the endpoint on its open label pediatric study, and recently reported that it as well had missed the endpoint on its controlled adult trial. As far as we all understand and you understand, they did not meet their endpoints across any of the ravulizumab TA-TMA trials. Your question as to whether there remains off-label, primarily eculizumab use, because the dosing, frankly, for ravulizumab is not really conducive to the acute indication of TA-TMA. Eculizumab is more frequently dosed, shorter half-life. There is some continued eculizumab off-label use. We don't really know how much. We don't frankly focus on how much. I'll ask Bill to speak to that and his thoughts around the competition there, which I'll preempt a bit by saying we don't really see it as competition for YARTEMLEA.

Gregory Demopulos: Thanks, Brandon. With respect to the first question regarding C5 inhibition, as you noted, ravulizumab previously missed the endpoint on its open label pediatric study, and recently reported that it as well had missed the endpoint on its controlled adult trial. As far as we all understand and you understand, they did not meet their endpoints across any of the ravulizumab TA-TMA trials. Your question as to whether there remains off-label, primarily eculizumab use, because the dosing, frankly, for ravulizumab is not really conducive to the acute indication of TA-TMA. Eculizumab is more frequently dosed, shorter half-life. There is some continued eculizumab off-label use. We don't really know how much. We don't frankly focus on how much. I'll ask Bill to speak to that and his thoughts around the competition there, which I'll preempt a bit by saying we don't really see it as competition for YARTEMLEA.

Speaker #1: So as far as we all understand and you understand they endpoints across any of the rabulizumab TATMA trials. Your question as to whether there remains off label primarily eculizumab use because the dosing frankly for rabulizumab is not really conducive to the acute indication of TATMA eculizumab is more frequently dosed shorter half-life there is some continued eculizumab off label use we don't really know how much we don't frankly focus on how much I'll ask Bill to speak to that and his thoughts around the competition there which I'll I'll preempt a bit by saying we don't really see it as competition for the Artelia.

Speaker #1: I think with respect to why there might be continued use for a while of eculizumab I think certainly it's hard to break old habits among physicians and that that is likely what we're seeing but when you look at the adoption of narsuplimab the breadth of the adoption the depth of the adoption I think that speaks volumes about how physicians see our drug.

Gregory A. Demopulos: I think with respect to why there might be continued use for a while of eculizumab, I think certainly it's hard to break old habits among physicians, and that is likely what we're seeing. When you look at the adoption of narsoplimab, the breadth of the adoption, the depth of the adoption, I think that speaks volumes about how physicians see our drug. I also think certainly the safety profile. I mean, let's put aside the efficacy, which we're very pleased with the efficacy that we're seeing with narsoplimab in the commercial setting. Let's look at the safety issues. I mean, narsoplimab is not associated with the same issues as C5 inhibition. It's just a biological fact. When you inhibit C5, you inhibit the lytic arm of the classical pathway that increases the risk of infection. Inhibition of MASP-2 with narsoplimab or YARTEMLEA is upstream.

Gregory Demopulos: I think with respect to why there might be continued use for a while of eculizumab, I think certainly it's hard to break old habits among physicians, and that is likely what we're seeing. When you look at the adoption of narsoplimab, the breadth of the adoption, the depth of the adoption, I think that speaks volumes about how physicians see our drug. I also think certainly the safety profile. I mean, let's put aside the efficacy, which we're very pleased with the efficacy that we're seeing with narsoplimab in the commercial setting. Let's look at the safety issues. I mean, narsoplimab is not associated with the same issues as C5 inhibition. It's just a biological fact. When you inhibit C5, you inhibit the lytic arm of the classical pathway that increases the risk of infection. Inhibition of MASP-2 with narsoplimab or YARTEMLEA is upstream.

Speaker #1: I also think certainly the safety profile I mean let's put aside the efficacy which we're very pleased with the efficacy that we're seeing with narsuplimab in the commercial setting.

Speaker #1: But let's look at the safety issues. I mean narsuplimab is not associated with the same issues as C5 inhibition. It's just it's a biological fact when you inhibit C5 you inhibit the lytic arm of the classical pathway that increases the risk of infection.

Speaker #1: Inhibition of narsup of MASP2 with narsuplimab or your Artelia is upstream so we're inhibiting the lectin pathway at really the near the top of the lectin pathway and by doing so we maintain that adaptive immune response.

Gregory A. Demopulos: We're inhibiting the lectin pathway at really near the top of the lectin pathway. By doing so, we maintain that adaptive immune response. So with respect to why folks would, physicians would continue for a while to use eculizumab, I think the best answer to that is one of habit and just perhaps not fully understanding the benefits yet that YARTEMLEA brings. I frankly expect that that will not be a long-lived challenge for us. Bill, let me ask you to comment on that.

Gregory Demopulos: We're inhibiting the lectin pathway at really near the top of the lectin pathway. By doing so, we maintain that adaptive immune response. So with respect to why folks would, physicians would continue for a while to use eculizumab, I think the best answer to that is one of habit and just perhaps not fully understanding the benefits yet that YARTEMLEA brings. I frankly expect that that will not be a long-lived challenge for us. Bill, let me ask you to comment on that.

Speaker #1: So with respect to why folks would physicians would continue for a while to use eculizumab I I think the best answer to that is one of of habit and just perhaps not fully understanding the benefits yet that your Artelia brings but I I frankly expect that that will not be a long-lived challenge for us.

Speaker #1: But Bill, let me ask you to comment on that.

Speaker #2: Sure. Thanks Greg. Yeah I totally agree. You know physicians are humans too and humans generally do not welcome change with open arms. Eculizumab was their only option for 10 or 12 or 15 years and in peds it was widely adopted.

Bill Woodman: Sure. Thanks, Greg. Yeah, I totally agree. Physicians are humans too, and humans generally do not welcome change with open arms. Eculizumab was their only option for 10 or 12 or 15 years. In peds, it was widely adopted. Adults, not so much. But in peds, even in peds, we're seeing adoption across centers, use in both first and second line. In adults, it's pretty much first line. We expect this to be a temporary hiccup to our goal of being really the best-in-class first-line therapy for TA-TMA in both adult and pediatric centers.

Bill Woodman: Sure. Thanks, Greg. Yeah, I totally agree. Physicians are humans too, and humans generally do not welcome change with open arms. Eculizumab was their only option for 10 or 12 or 15 years. In peds, it was widely adopted. Adults, not so much. But in peds, even in peds, we're seeing adoption across centers, use in both first and second line. In adults, it's pretty much first line. We expect this to be a temporary hiccup to our goal of being really the best-in-class first-line therapy for TA-TMA in both adult and pediatric centers.

Speaker #2: Adults not so much. But in peds even in peds we're seeing adoption across centers use in in both first and second line and adults it's pretty much first line.

Speaker #2: So we we expect this to be a a temporary hiccup to our goal of being really the the best in class first line therapy for TATMA in both adult and pediatric centers.

Speaker #1: Thank you, Bill. Brandon, your next question was how our internal forecasts, I believe, compare to what we've seen. We won't comment today on our internal or external forecasts; we won't guide. The other part of that question, I think, though, was around our cash flow forecast.

Gregory A. Demopulos: Thank you, Bill. Brandon, your next question was how our internal forecasts, I believe, compare to what we've seen. We won't comment today on our internal or external forecasts. We won't guide. The other part of that question, I think, though, was around our cash flow forecast. Certainly, we hold to our statement previously that by mid-2027 we expect to be cash flow positive company-wide. In fact, you saw the result we generated this quarter from operations, USD 4.1 million of net positive cash. I think we're quite comfortable holding to that prediction. David, any comments on that?

Gregory Demopulos: Thank you, Bill. Brandon, your next question was how our internal forecasts, I believe, compare to what we've seen. We won't comment today on our internal or external forecasts. We won't guide. The other part of that question, I think, though, was around our cash flow forecast. Certainly, we hold to our statement previously that by mid-2027 we expect to be cash flow positive company-wide. In fact, you saw the result we generated this quarter from operations, USD 4.1 million of net positive cash. I think we're quite comfortable holding to that prediction. David, any comments on that?

Speaker #1: Certainly we hold to our statement previously that by mid-2027 we expect to be cash flow positive company-wide. And in fact you you saw the result we generated this quarter from operations 4.1 million of of net positive cash.

Speaker #1: So I I think we're quite comfortable holding holding to that prediction. David any comments on that?

Speaker #4: No, I would say that states it really well, and I agree with what you just said, Greg.

David J. Borges: No, I would say that states it really well and agree with what you just said, Greg.

David Borges: No, I would say that states it really well and agree with what you just said, Greg.

Speaker #1: Thank you. Anything else, Brandon?

Gregory A. Demopulos: Thank you. Anything else, Brandon?

Gregory Demopulos: Thank you. Anything else, Brandon?

Speaker #4: Nope other than to say congrats on a really good quote and a good launch so far.

Brandon Folkes: No, other than to say congrats on a really good quarter and a good launch, that's all.

Brandon Folkes: No, other than to say congrats on a really good quarter and a good launch, that's all.

Speaker #1: Thank you. Thank you very much.

Gregory A. Demopulos: Thank you. Thank you very much.

Gregory Demopulos: Thank you. Thank you very much.

Speaker #3: Your next question comes from the line of Steve Brozak with WBB. Your line is open please go ahead.

Operator: Your next question comes from the line of Steve Brozak with WBB. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Steve Brozak with WBB. Your line is open. Please go ahead.

Speaker #5: Yes hey good afternoon Greg and obviously thank you for taking these questions and congrats on these on these numbers. I'm thrilled and I'm sure the patients being treated with your Artelia are also thrilled financial questions can you just iterate are any of these numbers from any kind of channel stocking or do they represent pure numbers for drug going out and I've got a follow-up after that please.

Steve Brozak: Yes. Hey, good afternoon, Greg, and obviously thank you for taking these questions and congrats on these numbers. I am thrilled, and I am sure the patients being treated with your YARTEMLEA are also thrilled. Financial questions. Can you just iterate, are any of these numbers from any kind of channel stocking or they represent pure numbers for drug going out? I have a follow-up after that, please.

Steve Brozak: Yes. Hey, good afternoon, Greg, and obviously thank you for taking these questions and congrats on these numbers. I am thrilled, and I am sure the patients being treated with your YARTEMLEA are also thrilled. Financial questions. Can you just iterate, are any of these numbers from any kind of channel stocking or they represent pure numbers for drug going out? I have a follow-up after that, please.

Speaker #1: Sure. Thanks Steve. In answer to that first question no categorically no this this drug is available to patients and from from the wholesaler or distributor to the medical centers within 24 hours.

Gregory A. Demopulos: Sure. Thanks, Steve. In answer to that first question, no. Categorically, no. This drug is available to patients from the wholesaler or distributor to the medical centers within 24 hours. There really is no incentive or rationale to stock or stuff the channel. Frankly, we have seen inventories at about one and a half weeks of supply, and that has been consistent since Q1, really. Since the very first quarter, it has been quite consistent at about one and a half weeks of supply held by the distributors. So, the answer to your question is really no. These are, as you put it, I will use your term, these are pure numbers.

Gregory Demopulos: Sure. Thanks, Steve. In answer to that first question, no. Categorically, no. This drug is available to patients from the wholesaler or distributor to the medical centers within 24 hours. There really is no incentive or rationale to stock or stuff the channel. Frankly, we have seen inventories at about one and a half weeks of supply, and that has been consistent since Q1, really. Since the very first quarter, it has been quite consistent at about one and a half weeks of supply held by the distributors. So, the answer to your question is really no. These are, as you put it, I will use your term, these are pure numbers.

Speaker #1: So there really is no incentive or rationale to stock or stuff the channel and frankly we have seen inventories at about one and a half weeks of supply and that has been consistent since Q1 really since the very first quarter it's been quite consistent at about one and a half weeks of supply held by the distributors.

Speaker #1: So the answer to your question is really no these are as you put it I'll use your term these are pure numbers.

Speaker #5: Okay, thank you. Last question, and I'll jump back in the queue. NTAPs—okay. I've been familiar with different NTAP programs, but your numbers are obviously much, much higher.

Steve Brozak: Okay. Thank you. Last question, and I will jump back in the queue. NTAPs, okay? I have been familiar with different NTAP programs, but your numbers are obviously much, much higher. In terms of reimbursement, can you tell us the NTAP process and how you are set up for that? Because that is something that not that many people are familiar with, and I will hop back in the queue. Thank you.

Steve Brozak: Okay. Thank you. Last question, and I will jump back in the queue. NTAPs, okay? I have been familiar with different NTAP programs, but your numbers are obviously much, much higher. In terms of reimbursement, can you tell us the NTAP process and how you are set up for that? Because that is something that not that many people are familiar with, and I will hop back in the queue. Thank you.

Speaker #5: Can you tell us in terms of reimbursement can you tell us the NTAPs process and how how you're set up for that because that that is something that not that many people are familiar with and I'll hop back in the queue.

Speaker #5: Thank you.

Speaker #1: Sure. NTAP is a CMS program that, frankly, subsidizes the cost of new drugs entering the market while that period of time occurs over which the DRGs are adjusted to account for those new drugs.

Gregory A. Demopulos: Sure. NTAP is a CMS program that frankly subsidizes the cost of new drugs entering the market while that period of time occurs over which the DRGs are adjusted to account for those new drugs. As you know, CMS has set an amount up to $287,000 for a course of treatment for YARTEMLEA. We are quite pleased with that. It is at that roughly 65% cap that CMS will allow. CMS, as you saw in their proposed IPPS rule, recommended the NTAP for YARTEMLEA, and subsequently in the final rule, confirmed it. I think they recognize the utility and the importance of the drug, and we are quite pleased that becomes effective or is scheduled to become effective on 1 October. Kathy, do you want to add anything else?

Gregory Demopulos: Sure. NTAP is a CMS program that frankly subsidizes the cost of new drugs entering the market while that period of time occurs over which the DRGs are adjusted to account for those new drugs. As you know, CMS has set an amount up to $287,000 for a course of treatment for YARTEMLEA. We are quite pleased with that. It is at that roughly 65% cap that CMS will allow. CMS, as you saw in their proposed IPPS rule, recommended the NTAP for YARTEMLEA, and subsequently in the final rule, confirmed it. I think they recognize the utility and the importance of the drug, and we are quite pleased that becomes effective or is scheduled to become effective on 1 October. Cathy, do you want to add anything else?

Speaker #1: So as as you know CMS has set an amount up to 287,000 for a course of treatment for your Artelia. We're quite pleased with that.

Speaker #1: It's at that roughly 65% cap that CMS will allow. CMS as you saw in their proposed IPPS rule recommended the NTAP for your and subsequently in the final rule confirmed it.

Speaker #1: So I think they recognize the utility and the importance of the drug and we're quite pleased that becomes effective or is scheduled to become effective on October 1.

Speaker #1: Kathy, do you want to add anything else?

Speaker #6: Yeah no I think Greg you explained it well. I mean it it as you know the reimbursement for these DRGs you know doesn't account for the new technology and so with the approval of your Artelia and its use in this condition CMS has to add this on and so again we submitted the application proposed the add-on payment and we're pleased with the result that we got in terms of what they'll be including for the use of your Artelia.

Catherine A. Melfi: Yeah. No, I think, Greg, you explained it well. As you know, the reimbursement for these DRGs does not account for the new technology. With the approval of YARTEMLEA and its use in this condition, CMS has to add this on. Again, we submitted the application, proposed the add-on payment, and we are pleased with the result that we got in terms of what they will be including for the use of YARTEMLEA.

Cathy Melfi: Yeah. No, I think, Greg, you explained it well. As you know, the reimbursement for these DRGs does not account for the new technology. With the approval of YARTEMLEA and its use in this condition, CMS has to add this on. Again, we submitted the application, proposed the add-on payment, and we are pleased with the result that we got in terms of what they will be including for the use of YARTEMLEA.

Speaker #1: Thank you. Steve did that answer?

Gregory A. Demopulos: Thank you. Steve, did that answer?

Gregory Demopulos: Thank you. Steve, did that answer?

Speaker #5: Perfectly on both counts. Thank you, and again, congrats on these strong, strong numbers.

Steve Brozak: Perfectly on both counts. Thank you, and again, congrats on these strong numbers.

Steve Brozak: Perfectly on both counts. Thank you, and again, congrats on these strong numbers.

Speaker #1: Yes, thank you. We're all pleased, and we look forward to the continued growth.

Gregory A. Demopulos: Yes. Thank you. We are all pleased, and we look forward to the continued growth.

Gregory Demopulos: Yes. Thank you. We are all pleased, and we look forward to the continued growth.

Speaker #3: Your next question comes from the line of Samuel Rodriguez Santiago with Cantor Fitzgerald. Your line is open; please go ahead.

Operator: Your next question comes from the line of Samuel Rodriguez Santiago with Cantor Fitzgerald. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Samuel Rodriguez Santiago with Cantor Fitzgerald. Your line is open. Please go ahead.

Speaker #7: Hey this is Samon for Olivia. A question since you mentioned the adults are making up 75% of the orders now have you seen a difference in the amount of vials used per patient?

Samuel Rodriguez Santiago: Hey, this is Sam on for Olivia. Quick question. Since you mentioned the adults are making up 75% of the orders now, have you seen a difference in the amount of vials used per patient?

Samuel Rodriguez Santiago: Hey, this is Sam on for Olivia. Quick question. Since you mentioned the adults are making up 75% of the orders now, have you seen a difference in the amount of vials used per patient?

Speaker #1: Hi Sam. To our collective knowledge, no, we don't really have great visibility into vial utilization at specific centers. As you understand, with all of the HIPAA and confidentiality issues around patient information, we just don't get that information.

Gregory A. Demopulos: Sam, to, I think our collective knowledge, no. We do not really have great visibility into vial utilization at specific centers, as you understand, with all of the HIPAA and confidentiality issues around patient information. We just do not get that information. But certainly, the ordering patterns are consistent across the pediatric and the adult centers. So I think my answer to that would be no, but let me ask Bill again, who may have information that I do not have.

Gregory Demopulos: Sam, to, I think our collective knowledge, no. We do not really have great visibility into vial utilization at specific centers, as you understand, with all of the HIPAA and confidentiality issues around patient information. We just do not get that information. But certainly, the ordering patterns are consistent across the pediatric and the adult centers. So I think my answer to that would be no, but let me ask Bill again, who may have information that I do not have.

Speaker #1: But certainly, the ordering patterns are consistent across the pediatric and the adult center. So I think my answer to that would be no, but let me ask Bill again, who may have information that I don't have.

Speaker #7: No, they're not significantly different between the two. You know, when you launch a new product into a deadly disease, you generally tend to get very severe patients at the beginning, so you may need to see a little bit more drug at the beginning.

Bill Woodman: No, they are not significantly different between the two. When you launch a new product into a deadly disease, you generally tend to get very severe patients at the beginning. So you may need to see a little bit more drug at the beginning, because they tend to require more medication. I do not think that is any different between peds and adults. Over time, we expect to treat a lot more patients with fewer vials as they start to get better at diagnosing it, treating it early, and getting better outcomes. That is really the way we expect it to go in the future.

Bill Woodman: No, they are not significantly different between the two. When you launch a new product into a deadly disease, you generally tend to get very severe patients at the beginning. So you may need to see a little bit more drug at the beginning, because they tend to require more medication. I do not think that is any different between peds and adults. Over time, we expect to treat a lot more patients with fewer vials as they start to get better at diagnosing it, treating it early, and getting better outcomes. That is really the way we expect it to go in the future.

Speaker #7: Because they tend to require more medication, and I don't think this is any different between peds and adults. Over time, we expect to treat a lot more patients with fewer vials as they start to get better at diagnosing it, treating it early, and getting better outcomes.

Speaker #7: So that's really kind of the way we expect it to to go. In the future.

Speaker #1: And and moving the treatment setting more toward the outpatient right Bill and less so in the inpatient so that the response remember in the absence of really an effective and safe drug the the focus on earlier and earlier treatment has not been there in fact the focus has been how how can we get these patients better without having to use some treatment for those patients.

Gregory A. Demopulos: Moving the treatment setting more toward the outpatient, right Bill? Less so in the inpatient so that the response. Remember, in the absence of really an effective and safe drug, the focus on earlier and earlier treatment has not been there. In fact, the focus has been how can we get these patients better without having to use some treatment for those patients? I think, as we spoke about during the prepared comments, we are seeing and we are certainly helping, I think, to implement a paradigm shift to earlier and earlier utilization for increasingly improved outcomes. The sooner you get to these patients, the harder you hit them with YARTEMLEA, I think the data clearly supports the better they will do.

Gregory Demopulos: Moving the treatment setting more toward the outpatient, right Bill? Less so in the inpatient so that the response. Remember, in the absence of really an effective and safe drug, the focus on earlier and earlier treatment has not been there. In fact, the focus has been how can we get these patients better without having to use some treatment for those patients? I think, as we spoke about during the prepared comments, we are seeing and we are certainly helping, I think, to implement a paradigm shift to earlier and earlier utilization for increasingly improved outcomes. The sooner you get to these patients, the harder you hit them with YARTEMLEA, I think the data clearly supports the better they will do.

Speaker #1: I think as we spoke about during the prepared comments we're seeing and we're certainly helping I think to implement a paradigm shift to earlier and earlier utilization for increasingly improved outcomes.

Speaker #1: The sooner you get to these patients the harder you hit them with your Artelia I think the data clearly support the better they will do.

Speaker #7: Awesome. Thank you, and congrats on the quarter.

Samuel Rodriguez Santiago: Awesome. Thank you, and congrats on the quarter.

Samuel Rodriguez Santiago: Awesome. Thank you, and congrats on the quarter.

Speaker #1: Thank you Sam.

Gregory A. Demopulos: Thank you, Sam.

Gregory Demopulos: Thank you, Sam.

Speaker #3: Your next question comes from the line of Serge Bellinger with Needham. Your line is open, please go ahead.

Operator: Your next question comes from the line of Serge Belanger with Needham. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Serge Belanger with Needham. Your line is open. Please go ahead.

Speaker #5: Hi. Good afternoon, and thanks for taking my questions. First one on your Artelia, Greg—can you just talk about maybe the number of patients that have so far been treated with the product, and I guess what kind of market share of the overall opportunity that would be based on those patients?

Serge Belanger: Hi, good afternoon, and thanks for taking my questions. First on YARTEMLEA. Greg, can you just talk about maybe the number of patients that have so far been treated with the product and, I guess what the market share of the overall opportunity would be based on those patients? Secondly, you talked about in your prepared comments that TA-TMA is mostly a diagnosis of exclusion. So with the shift paradigm that you're working on, what do you expect the market opportunity could be or what is the under-diagnosis and undertreated rate for the indication? Thank you.

Serge Belanger: Hi, good afternoon, and thanks for taking my questions. First on Yartemlea. Greg, can you just talk about maybe the number of patients that have so far been treated with the product and, I guess what the market share of the overall opportunity would be based on those patients? Secondly, you talked about in your prepared comments that TA-TMA is mostly a diagnosis of exclusion. So with the shift paradigm that you're working on, what do you expect the market opportunity could be or what is the under-diagnosis and undertreated rate for the indication? Thank you.

Speaker #5: And then secondly you you talked about in your prepared comments that TATMA is mostly a diagnosis of execution so with the the shift paradigm that you're you're you're working on what do you expect the market opportunity could be or or what do what is the under-diagnosis and under-treated rate for the indication?

Speaker #5: Thank you.

Speaker #1: Sure, Serge, thanks for the questions. First, we can't give you any really definitive numbers on patient use because we don't have patient numbers. We see vials.

Gregory A. Demopulos: Sure, Serge. Thanks for the questions. First, we can't give you any really definitive numbers on patient use because we don't have patient numbers. We see vials. We see vials that go into a center. We don't have any data beyond that, really, other than occasional anecdotal data that we may receive. But we have no way of determining how many patients are being treated with those vials, where in the treatment course those patients are, et cetera. So with respect to patient numbers, can't really provide that information. With respect to the prepared comment about diagnosis of exclusion, I think what clearly is meant there is prior to an approved product, prior to YARTEMLEA being available, the diagnosis of TA-TMA was quite challenging and really very diverse across centers. So different sets of criteria being used by different centers, by different physicians.

Gregory Demopulos: Sure, Serge. Thanks for the questions. First, we can't give you any really definitive numbers on patient use because we don't have patient numbers. We see vials. We see vials that go into a center. We don't have any data beyond that, really, other than occasional anecdotal data that we may receive. But we have no way of determining how many patients are being treated with those vials, where in the treatment course those patients are, et cetera. So with respect to patient numbers, can't really provide that information. With respect to the prepared comment about diagnosis of exclusion, I think what clearly is meant there is prior to an approved product, prior to YARTEMLEA being available, the diagnosis of TA-TMA was quite challenging and really very diverse across centers. So different sets of criteria being used by different centers, by different physicians.

Speaker #1: We see vials that go into a center. We don't have any data beyond that, really—other than occasional anecdotal data that we may receive. But we have no way of determining how many patients are being treated with those vials, where in the treatment course those patients are, etc.

Speaker #1: So, with respect to patient numbers, can't really provide that information. With respect to the prepared comment about diagnosis of exclusion, I think what clearly is meant there is prior to an approved product—prior to your Artelia being available.

Speaker #1: The diagnosis of TATMA was quite challenging and really very diverse across centers. So different sets of criteria being used by different centers by different physicians a lack of real standardization of the diagnostic criteria.

Gregory A. Demopulos: A lack of real standardization of the diagnostic criteria. So absent a really good treatment for TA-TMA, you can understand why physicians would look at a constellation of symptoms and say, "Let's rule out those things that we know we can treat, and if we can't treat those, then this is going to fall to what we'll call TA-TMA." We do believe that we are simply now scratching the surface. Again, I'll look to Bill to comment on that in just a moment, but I think our collective view on this is we're just scratching the surface. As there becomes further embedded an effective and a safe treatment for TA-TMA, the diagnosis of TA-TMA accordingly will increase. I think that the overall incidence numbers are going to continue to move north.

Gregory Demopulos: A lack of real standardization of the diagnostic criteria. So absent a really good treatment for TA-TMA, you can understand why physicians would look at a constellation of symptoms and say, "Let's rule out those things that we know we can treat, and if we can't treat those, then this is going to fall to what we'll call TA-TMA." We do believe that we are simply now scratching the surface. Again, I'll look to Bill to comment on that in just a moment, but I think our collective view on this is we're just scratching the surface. As there becomes further embedded an effective and a safe treatment for TA-TMA, the diagnosis of TA-TMA accordingly will increase. I think that the overall incidence numbers are going to continue to move north.

Speaker #1: So absent a really good treatment for TATMA, you can understand why physicians would look at a constellation of symptoms and say, "Let's rule out those things that we know we can treat, and if we can't treat those, then this is going to fall to what we'll call TATMA."

Speaker #1: We do believe that we are simply now scratching the surface again I'll look to Bill to comment on that in just a moment. But I think our collective view on this is we're just scratching the surface.

Speaker #1: And as there becomes further embedded an effective and safe treatment for TMA, the diagnosis of TMA accordingly will increase. And I think that the overall incidence numbers are going to continue to move north.

Speaker #1: I think the percentage of patients who ultimately end up being diagnosed with TA-TMA, as a percentage of stem cell transplantation, will also increase. We're already seeing it.

Gregory A. Demopulos: I think the percentage of patients who ultimately end up being diagnosed with TA-TMA as a percentage of stem cell transplantation will also increase. We are already seeing it. The latest MIDAS studies shows the incidence of TA-TMA at 56% of allogeneic transplants. I would think that there is a reasonable possibility that those percentages will increase. Again, when you have a treatment, there is a good reason to identify the disorder, and then the treatment becomes self-fulfilling for that set of diagnostic criteria. Again, let me turn this to Bill and see. Bill, what are your thoughts on this?

Gregory Demopulos: I think the percentage of patients who ultimately end up being diagnosed with TA-TMA as a percentage of stem cell transplantation will also increase. We are already seeing it. The latest MIDAS studies shows the incidence of TA-TMA at 56% of allogeneic transplants. I would think that there is a reasonable possibility that those percentages will increase. Again, when you have a treatment, there is a good reason to identify the disorder, and then the treatment becomes self-fulfilling for that set of diagnostic criteria. Again, let me turn this to Bill and see. Bill, what are your thoughts on this?

Speaker #1: The latest MITUS studies shows the incidence of TATMA at 56% of allogeneic transplants. And I would think that there's a a reasonable possibility that those percentages will increase.

Speaker #1: Again, when you have a treatment, there's a good reason to identify the disorder, and then the treatment becomes self-fulfilling for that set of diagnostic criteria.

Speaker #1: But again, let me turn this to Bill and see. Bill, what are your thoughts on this?

Speaker #7: Yeah. I mean I totally agree Greg. We're we're just scratching the surface. You know we're is is well as if we've done so far we expect to do better in the future.

Bill Woodman: Yeah, I totally agree, Greg. We are just scratching the surface. As well as we have done so far, we expect to do better in the future. Institutional organizations, large academic centers, it is very hard to get real change in an institutional center, not because they do not want to, just because they are a huge organization, and there are a lot of levers to push in order to really change the way they look at things. That could include not just P&T committees, but order sets and EMRs, the way that they diagnose TMA, it fundamentally has to change. We have made that change in some centers, but we have a lot more to go, and we think it will get better over time, pretty consistently over time.

Bill Woodman: Yeah, I totally agree, Greg. We are just scratching the surface. As well as we have done so far, we expect to do better in the future. Institutional organizations, large academic centers, it is very hard to get real change in an institutional center, not because they do not want to, just because they are a huge organization, and there are a lot of levers to push in order to really change the way they look at things. That could include not just P&T committees, but order sets and EMRs, the way that they diagnose TMA, it fundamentally has to change. We have made that change in some centers, but we have a lot more to go, and we think it will get better over time, pretty consistently over time.

Speaker #7: In institutional organizations—large academic centers—it's very hard to get real change in an institutional center. Not because they don't want to, just because they're a huge organization; there's a lot of levers to push in order to really change the way they look at things.

Speaker #7: That includes not just P&T committees but also order sets and EMRs—the way that they diagnose TMA fundamentally has to change. We’ve made that change in some centers, but we still have a lot more to go.

Speaker #7: And we think it'll get better over time you know pretty consistently over time.

Speaker #5: Great. Thank you.

Gregory A. Demopulos: Great. Thank you.

Serge Belanger: Great. Thank you.

Speaker #3: There are no further questions at this time. I will now turn the call back to Dr. Demopulos for closing remarks.

Operator: There are no further questions at this time. I will now turn the call back to Dr. Demopulos for closing remarks.

Operator: There are no further questions at this time. I will now turn the call back to Dr. Demopulos for closing remarks.

Speaker #1: Thank you, operator. And again, thank you all for joining us this afternoon. As we enter the second half of the year, your Artelia has demonstrated strong commercial momentum in its first full quarter on the market.

Gregory A. Demopulos: Thank you, operator. Again, thank you all for joining us this afternoon. As we enter the H2 of the year, YARTEMLEA has demonstrated strong commercial momentum in its first full quarter on the market. Reimbursement infrastructure continues to strengthen. Our operations generated positive cash flow in the quarter, and our recent note repurchases reduced debt and reduced potential dilution. We remain focused on execution, driving YARTEMLEA adoption in TA-TMA, advancing expansion opportunities across the MASP-2 franchise, and moving our other programs across our deep pipeline forward. We have a number of important opportunities and milestones ahead, and we look forward to updating you on our progress. Have a good evening. Thank you.

Gregory Demopulos: Thank you, operator. Again, thank you all for joining us this afternoon. As we enter the H2 of the year, YARTEMLEA has demonstrated strong commercial momentum in its first full quarter on the market. Reimbursement infrastructure continues to strengthen. Our operations generated positive cash flow in the quarter, and our recent note repurchases reduced debt and reduced potential dilution. We remain focused on execution, driving YARTEMLEA adoption in TA-TMA, advancing expansion opportunities across the MASP-2 franchise, and moving our other programs across our deep pipeline forward. We have a number of important opportunities and milestones ahead, and we look forward to updating you on our progress. Have a good evening. Thank you.

Speaker #1: Reimbursement infrastructure continues to strengthen. Our operations generated positive cash flow in the quarter and our recent note repurchases reduced debt. And reduced potential dilution.

Speaker #1: We remain focused on execution, driving your Artelia adoption in TATMA, and advancing expansion opportunities across the mass. We're also working to franchise and move our other programs across our deep pipeline.

Speaker #1: Forward. We have a number of important opportunities and milestones ahead, and we look forward to updating you on our progress. Have a good evening.

Speaker #1: Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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