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EYPT EyePoint Pharmaceuticals

Participants
George Elston Chief Financial Officer and Head-Corporate Development
Nancy Lurker President and Chief Executive Officer
Scott Jones Chief Commercial Officer
Dario Paggiarino Senior Vice President and Chief Medical Officer
Dana Flanders Guggenheim Securities
Andrew D'Silva B. Riley FBR
I-Eh Jen Laidlaw & Company
Yi Chen H.C. Wainwright
Call transcript
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Operator

Good morning. My name is Sarah and I’ll be your conference operator today. At this time, I would like to welcome everyone to the EyePoint Pharmaceuticals Fourth Quarter and Full Year 2019 Financial Results Conference Call. There will be a question-and-answer session to follow at the completion of the prepared remarks. Please be advised that this call is being recorded at the company’s request.

to Officer call Development and Pharmaceuticals. like Elston, to of now Financial Chief Head would turn over the George EyePoint I of Corporate you Sir, begin. may

George Elston

today’s all you, quarter fourth year and joining Thank thank results full to you financial corporate and us EyePoint Sarah, and on recent conference XXXX Pharmaceuticals call discuss for developments.

recent I today Officer; joined will our launches. highlight updates full Jones, Officer. Nancy and on Dr. Vice developments Senior by where and call provide well is Chief fourth those corporate pipeline Chief made year Lurker, as commercial then President EyePoint’s will will quarter recent Nancy questions open me the Dario Scott Officer. Scott With Paggiarino, will and commentary and Executive and overview provide we for President a after comment Chief and be progress our financial Medical Commercial will results your as on the on we

financial release the Investor Earlier this of in can found morning, on our A be developments. and the we well press release copy Relations issued detailing commercial operational as company results www.eyepointpharma.com. website, the a tab as

Any on SEC our may begin only. statements I’ll remarks will other file today result of for various forward-looking is annual those our factors, that those future. Reform indicated represent today comments, Factors and you that we and SEC most provisions on the XXXX. by statements and recent the results our forward-looking These which the Private discussed section may projections constitute we we in forward-looking in safe of the views Litigation our of as lines, Securities time formal potential matters and the make clinical Risk expectations, purposes including candidates, the those XX-K, as Form from make harbor remind important differ the success a of statements with Before under filings regulatory financial various report of Act in our the and materially include with statements future prospects. about developments of product Actual our plans

may specifically Therefore, we representing to on disclaim statements forward-looking any should these if change. statements these date views not some to of today. future, obligations we the forward-looking do rely our views While update point so our elect you in even to any at as subsequent as

will our President Chief Executive now to Lurker, I Officer. the call turn Nancy over and

Nancy Lurker

a commercial focused you, morning, Thank George. and marked year to significant and us. company, thank Good and for need. by progress stage innovative for be pharmaceutical XXXX delivering ophthalmic in a you into transition everyone, joining EyePoint, products achievement would of our patients

of U.S. eye. surgery We treatment of began the of inflammation the for and XXXX posterior chronic with affecting ocular segment quarter the DEXYCU of YUTIQ treatment for postoperative launches uveitis one the commercial non-infectious following

Chief account key centers of our surgical by team and sales or XX-person Officer, Our KAMs ASCs and or DEXYCU Scott and specialists managers on Commercial Jones, uveitis introduced YUTIQ. on led ambulatory educated surgeons

for revenues YUTIQ. in efforts, we $XX.X $X.X million million DEXYCU and product year ended $XX for revenue, Through including total our in million cohesive million $XX with the

quarterly underlying will some be and as We XXXX inventory customer expect there between continue adjust reported distributors to disparity new demand levels. their revenues

closely these do progresses. more expect we track as XXXX to However, metrics

and with to pleased demand of as the to demand both increases and XX% XXXX. Our YUTIQ quarter underlying were YUTIQ we remains third customer for XXX% compared DEXYCU for of very strong and growth see DEXYCU continued for

otherwise tyrosine kinase we’ve Now EYP-XXXX inhibitor, and exciting our known in and release advanced pipeline six Durasert initiatives, commercial ophthalmology months parallel sustained bioerodible TKI, as using technology. anti-VEGF our our potential very prioritized therapy with

or or wet RVO. DR age-related AMD, diabetic vein wet for retinal developed occlusion being is and degeneration retinopathy EYP-XXXX macular or

posterior treatment eye. segment for and also six-month affecting the XX, our clinical the non-infectious short-acting of regulatory for We the YUTIQ clarified pathway uveitis have chronic

I more and call. this plans programs little during for these will later upcoming provide color development a

over now to review in Officer Chief our performance. Jones, more to the detail Commercial call to Scott turn I’m going our commercial

Scott Jones

Thank you, Nancy.

Let DEXYCU me with update an launch. on first the begin

quarter, and up fourth promote easy on educating to remained focus on the our and quick DEXYCU positively days Physicians to to training ASCs physicians both XX post inflammation ability control their orders reordering. and DEXYCU respond to the both During of administration surgery. continue and initial for its to

with rapid their the sends complexity of home regimens. important eye of treatment steroid cataract anti-inflammatory schedule helps and the physicians on injection of at the surgery, end patients with busy reduces place, DEXYCU postsurgical The an it keep drop the surgery in which track

over our and DEXYCU that training certification strong KAMs launch, reception ASCs of orders and yielded for has of which the population seen with core and from the the the targeted Since that very highest XXX for high-volume approximately our of XX markets physician-owned We’ve of use. in largest beneficiaries have DEXYCU completed Medicare surgeries. cataract on have team physicians, ASCs have called XXX concentration

and market estimate as Based have ASCs $XXX to work $XXX the private represent to physicians owned to advantages ASCs data, continuing launch trained of represent and that J-Code. reorder the market also of million have reimbursement on internal our our of educate we streamlined the potential. continued our on initiatives and assigned DEXYCU We’re that processing equity million been today part opportunity with in service

It the end which cataract DEXYCU that important control surgery, to It’s treatment allowing and profile, physicians, post-surgical that with element take a buy ocular and world technology context, to surgery pharmacy real post-surgical inflammation. put which is confident at treating in and critical to administration of to which its the market very though distribution opportunity its now distributed demonstrated them we’re highlights takes time being this patient drops, we from estimated and do of like eye by note DEXYCU trying but a market to in postocular the a excellent are remain of attractive administration chains and changing $X complete, retail billion administered through DEXYCU’s moving the given product. the an safety the through potential potentials overall great bill potential surgery in for To ASC. and efficacy that

been in priorities adoption to second quarter-over-quarter. the seeing expedite and increase order to has key of One And the orders orders. and we’re first process continues training the that to decrease ASC between timing our

accounts, of as for still Importantly, have the the units that we’re initial place the nearly to ordered most order compared number seeing doubled order. in second

have have representing by launch during XXX% today. order As Nancy our represented the has up has demand the represented noted WAC to volume. quarter-over-quarter. fee-for-service of gaining Since once repeat Reimbursement barrier earlier, of distributors and QX And patients injected positive be XX% our on launch, DEXYCU. increase with consistently commercial been over customer was each $XXX. December DEXYCU based ASCs from and QX by our for consistently, units confidence of more Medicare our day the are customers eventually paid this this orders claims paid price Advantage orders ASCs over with translates reimbursement alone been to which month claims increased strongest been purchased Medicare lifted. process, XX,XXX continued

ASCs purchase area secure integrated launch and Another networks priority based on key with vendors and in this. other adoption to also health our to agreements show continued and has additional the both been access

XXX,XXX surgeries Network Center of approximately progress. with America exemplifies this performed year and which per recent agreement The Our cataract EyeSouth collectively Partners, Vision

receive a showed from and and strong agreements We patients proportion the postoperative additional with from XX Caribbean presented with actively results administered reception measure DEXYCU key DEXYCU patients was with Eye and day DEXYCU study chamber which are hope at inflammation, continue continues Meeting XXXX postoperative XX. trend is data this the The to profile group XX.X% XXX this and January. complete XXXX XX.X% of networks. Positive purchasing anterior These community. days product at clearing, presented positive KOL interim to of at in and cell the negotiating retrospective recognition organizations of case we’re were

our These in surgical they and real-world controlled results patient clinical are provide support its postocular very compliance DEXYCU to trial of and surgery inflammation. the good and results, treating additional for or as to potential improve opposed therapeutic the for ability belief data

YUTIQ is specialists treatment a a continue existing compared our to very segment This which to think and steroids for posterior uveitis these XX-hour adoption turning for especially as to sustained we you the differentiated micro about flares uveitis years. highly day Now unpredictably it, flares up YUTIQ, dose therapies with every often share of deliver option to when ability receive excitement to remarkable that its for consistent, blindness. strong can due three to to lead

ophthalmology as a long eye addition, a physicians on delivered patients. and to single have community XX-month positive treatments critical strong feels In office is as segment unmet medical buzz been the need. YUTIQ flares. uveitis received for are the control within already for posterior physician’s need the well physicians these result, the clinical YUTIQ affecting and And a YUTIQ efficacy provide built non-infectious in uveitis very profile among regularly safety and of data acting very a has convenient is feedback durable administration a

shared years. even XX-month YUTIQ equal to with between flare we recurrence P a three XX% or sham week, second of earlier durable groups. were three compared of study The results approximately similar over patient reduction visual gains the As from to XX% this of the study showed with line X the top of responses, rate Phase first our same XX.X% in a who suffer patients lines acuity value losses This or more one from X.XXX. is both eyes an

reduce time rate rescued who months. with additional of patients validation therapies to effects at versus interim ability each months, only XX inflammation at flares YUTIQ. patients safety X.X% XX much sham from be Even of that this provide The results XX.X% months, no though data YUTIQ’s a control devastating and higher had follow-up disease. for These periocular unanticipated side in point suffer XX and showed to

our customers purchase and again for the customers to XX% quarter orders XX% ordered of the quarter, by customer by total XX% were order distributors, that demand by the third physicians repeat increased quarter. During of fourth from compared volume. their as during represented the units accounted

hope orders over continue XXXX. to since launch growth increased have month in month trajectory this we and Cumulative

we to the add the existing U.S. demand covering a for in result this to better our XXXX grow very YUTIQ As XX KAMs of coverage expect to the product, positive during

a YUTIQ reimbursement On just claims weeks and October are consistently paid the to fee-for-service Xt growing commercial J-code few of of the compared payers Medicare as covering up XXXX for and number pay product. been a Advantage to effective three to was have expedites Medicare and reimbursement permanent claims it The months. of specific the front,

see J-code. demand prescribers the third into reimbursement go process we J-code end using of prior Recall avoid the cumbersome the the to waited miscellaneous to effect when that for slow toward the quarters occurred did customer that

now we’re extend of products. both the for work We fourth on quarter foundation products we recognize the have momentum growing focused we have but to we in to and believe the that for in laid both do XXXX, left and throughout We growth. seeing accelerating plenty revenue the education XXXX,

DEXYCU, physicians we’re shift introducing these where truly technology and for they practice. patients a For for ASCs the and

with additional Our will focus on health agreements access expansion expand activities to securing volume continue integrated networks and ASCs for patients. to based

For meetings. and medical key at both on continued account increased target products, penetration we remain the opinion educational leaders with ophthalmology activities major focused

And in in industry. true also copays mentioned trap beginning which that especially our moved is therapeutics. due reported period to especially at will title model are I of typically They both quarter, a and some in where traditional have the distributors, first likely resetting model specialty required is calendar It XXXX. year. from that better product the during fewer align treatments Nancy and in comments calendar co-insurances our This will note think is to for noticed each you plans hope of that’s and revenues As demand. much larger our opening separately ophthalmology. customer distributor surgical quarter, of single fourth And are the performed we network this we a common more during to drug-related insurance important

I’ll With to it over now turn back Nancy. that,

Nancy Lurker

Thank you, Scott.

lead DR. pipeline EYP-XXXX, Durasert our our development tyrosine product sustained candidate technology to move an for anti-VEGF therapy our AMD, six-month now me using RVO, kinase Let including inhibitor, release and bioerodible potential wet programs

two and market Using a the about vorolanib, studies to potential sustained as prior therapy. an coupled an small disruptive other delivered with has human excited orally our Vorolanib very a to six-month this the product AMD wet it delivery has potentially in wet provide technology, efficacy established AMD TKI already as from indications. molecule. Durasert proven We’re anti-VEGF signals program as

commercialization license of Equinox single future upfront royalties. payment we announced milestones agreement Science post vorolanib an exclusive for developmental for with regulatory In $X million, and and an digit February,

for and Although we and Durasert EYP-XXXX, after with the been completed evaluating the for a have AMD and year announced, is safety PK ocular classic animal model anti-VEGF vorolanib which agreement was over establishing activity the recently wet bioerodible in working vorolanib. combination initial a license and of actively of

important for factors. compelling based very several EYP-XXXX on The are prospects

First and its has the EYP-XXXX approved multiple patients. Retisert, used Durasert been therefore, This of intravitreal bioerodible delivery has same products has expect no technology in and importantly we in includes and profile as the Durasert used our The is excipients, YUTIQ. non-erodible safety thousands insert very demonstrated Durasert. FDA safety that and ILUVIEN see in to new

delivery the technologies. clinic in issues this development We could is the Over failed Durasert important program. technologies many the substantially have that it that a risk years, EYP-XXXX ocular promising materialize and the delivery critically drug to clinical believe regulatory history of and reduce history safety with differentiator for the due

for signals separate it Phase and a wet central efficacy Phase acuity, in injections, EYP-XXXX anti-VEGF retinal X the human and including visual corrected positive as therapy active And improved a reduction AMD. decrease an trials thickness. in vorolanib, Second, compound and rescue oral been X already best reported evaluated has anti-VEGF in

towards Consequently, of EYP-XXXX or delivery oral both advancing even eye anti-VEGF will the Durasert intravitreal delivery brings believe as efficacy as improve an drug results EYP-XXXX proven signal observed associated wet sustained vorolanib toxicities drug that technology with the the AMD a is in locally an oral the with vorolanib an delivery as six-month potential We vorolanib for clinic therapy. in and the treatments. equal without in active delivery a treatment that oral

safety as preliminary was observed initial in In In animal promising these and and human systemic the demonstrated PK was in and EYP-XXXX, vorolanib measure AMD above drug of established of of studies. the and animal an EYP-XXXX a concentrations CNV is toxicology two-month and was well which levels ocular in initial non-GLP laser our studies the half wet retina studies measured nonclinical model inhibitory at potency. ICXX maximal concentration activity

busy. very been We’ve

clinical FDA and January if initiation year the provide toxicology second allowing expected completed of are can this the recently have in month, pre-Investigational and to IND begin XXXX. of in that half early Type Drug clear data begin X readouts meeting of development positive, study also New the pathway as an EYP-XXXX. We to GLP of a positive this we B plan a with X Phase file to quarter fourth a Phase potentially as the studies

central physicians retinal injections Finally in are and of leakage injections outcomes, markets. block recurrence. a role patients retinal Wet disruptive established treated important for potentially and is and AMD, leading equally the beneficial in and biologic are commonly is visual abnormal as approved monthly, vessel plays attractive multibillion for dollar biologics diseases retinopathy receive progressive blood but occlusion eye fewer EYP-XXXX real disease as loss. most product patients option intravitreal the into to frequently FDA VEGF, growth in world that disease and a diabetic injected that acuity with vein leading treatments retinal which to these typically growth factor

it’s get require to become often It’s not patients life. Thus, these tough or effective your unpleasant injections. anti-VEGF do rest eye the bimonthly and bimonthly urgent or increasingly these injected your get of that monthly treatment to scary for monthly eye to

of that to we Finally not consistent to expect minimized is and months. XX/X dosing be deliver six the up drug for EYP-XXXX will micro

six in responding. over delivery result that We a a time to the drug effect seesaw can which In eye not is real associated receive and potential healthy addition having as frequent and injection potential injection the regulate to EYP-XXXX. drug for bolus risk consistent with an there theoretically causes procedures anticipate ocular by bimonthly treatment receptors the eye or to It’s improved infections. monthly stop months VEGF for using concentration intravitreal down directly over such slowly

patients. U.S. with pressing the the release treatment aging exciting these for these potentially We and and potential population available the and continue to markets option a replace treatment to need EYP-XXXX fewer injections to game sustained represents for microdosing months therapy. six with anti-VEGF current and biologics changing sustained of grow promising expect delivery an

on potentially our strategy forward throughout to aligns a highly needs areas targeting of ophthalmology our the medical disease program EYP-XXXX with in providing ocular transformative look is unmet space. updates year. fit pipeline this the complementary to significant of We and greater

Late YUTIQ to the in approval approximately receive trial XX-patient Food drug on the Drug from requiring and or Administration XX. an supplemental for clarification also pathway for XXXX, new The inclusion for FDA application six-month U.S. FDA in we is regulatory the product. a

We are requirements trial actively timing provide investment and this updates the planning and resources prioritizing look and year. to on later

of mainland expanded recently Taiwan. with On of DEXYCU Kong, Hong second Therapeutics Ocumension corporate Macau, a the partnership licensing for our agreement front, in the and signing the and we China, development with commercialization

license rights to their outside well an to milestones of as and terms product received regulatory development, achieved receive payment and Ocumension. commercial million the we million certain as We on of upfront commercialization if agreement, pre-specified the additional future of are development an by up to territories $X sales. sales maintain $XX and the worldwide royalties Under eligible are Ocumension

delighted are this additional China. need and patients in to bring We to in DEXYCU partnership grow

also of we experience KBI Pharmaceuticals Juniper Officer a George senior our Head of of Development. Therapeutics, Chief a wealth as as Elston companies appointed Biopharma. executive such Oncology, biopharmaceutical brings November, and In and like Financial XX Enzyvant George Corporate

to to George going call now the I’m to financials. review the turn over

George Elston

you, ocular change turn achieve included in to right paradigm results right believe I that have our morning. this to team diseases to I issued now believe because joined we suffering the truly the EyePoint pipeline goal. November, the mission in over Thank with press Nancy. financial and for the this treatment and was the in I I’ll release patients

XXXX. months three compared was million XXXX, $X.X to $X.X in million quarter For the December total the correspondent ended revenue in XX,

$X.X with revenue product in Neither million, for these the products for DEXYCU. million in XXXX. corresponding $X.X $X.X of million net quarter was revenue product and have Net YUTIQ

totaled quarter ended XXXX, royalties compared XX, XXXX. $X.X the YUTIQ. to three up-front licensing licenses, prior fee to for $X.X year a months and from corresponding million an the Net has revenue recognition quarter in of December million in $XXX,XXX collaborations The for Ocumension from

the investments for program related in months December million the three due in and expenses sales $XX.X period, infrastructure primarily prior XX, and product revenue. to to of $XX.X increased to from Operating ended costs, cost marketing and million XXXX, year sales

per three a ended prior to the for share, of expense, XXXX months or three Net $X.X expense. $XX.X XXXX, XX, per interest net million, December share, million, or totaled $XX.X for year the months quarter. loss for net, million of the $X.XX was compared XX, Non-operating $X.XX December net loss ended

XX, full $X.X was million compared the Neither For year of in product the net to ended December corresponding period revenue Net $XX total and product XXXX, for DEXYCU. million the was products million revenue XXXX. year million, YUTIQ in for million these $XX.X $X.X $XX.X XXXX. with in correspondent revenue had

from in ended for December and revenue million million full the totaled licenses, XX, period the XXXX. Net XXXX $X.X to year royalties $X.X compared in corresponding collaborations

December to from additions, Operating full and million prior a in sales expenses year full expenses to and research cost for and marketing program the increased decrease in expense. the due investments primarily development revenue, impact personnel of infrastructure in $XX.X the prior XX, our partially related increase year in senior and $XX.X costs, product by million period, ended management additions related to of XXXX, year to offset and sales

of million interest the for full XXXX, to consisted the extinguishment on expense the expense, loan. million of million Non-operating December SWK loss the term of debt of totaled net ended from $X.X $X.X $X.X year net, and payoff XX, and related

per of or for the net year for share, period. was per loss compared XXXX, $X.XX a to year or $XX.X full loss December prior share, $X.XX ended million, million, $XX.X the Net XX,

to XXXX, compared million at at and Cash $XX.X equivalents cash XX, XX, $XX.X September million December XXXX. totaled

share. other common offering we XX of expenses. per the at and XXXX, gross or an of of public underwriting offering completed deducting commissions this a before stock million public price discounts shares offering In million, underwritten of The February proceeds $X.XX $XX.X and transaction

of an discounts and a additional underwriters stock up underwriting to were addition, X.X option price, at less million In commissions. common shares granted purchase the offering to public XX-day

and product We cash public cash sales operating plan underwritten with expect inflows should from fund that YUTIQ projected company’s equivalents February anticipated cash offerings, XXXX. and combined the into DEXYCU and proceeds our the XXXX

now turn questions. for will operator over call We to the the

Operator

Thank from you. [Operator line the Instructions] Dana Flanders Securities. from Guggenheim Your first comes of question

may the You question. ask

Dana Flanders

little public a one this in the on data you TKI? seen questions. very a know bit much in thank you into elaborate has there Hi, efficacy domain, just out your more I more for My X. you with can the why Phase prior that on little that to some excited here, the have studies first you there forward bit but just and move in are

TKI, the year? big on my any to just that run thoughts plan X then the one on Phase this early later And will second be how you

Nancy Lurker

and So detail I'm go on into for a going Dario then you bit Dr. level address high at have more to that I'll a Paggiarino Dana.

vorolanib X all, of Phase through first a study. went human So

which which Phase wet Phase systemic which see Phase can TKIs see go orally, you typical systemic effects, do orally published should to kinase X. you and with in side to this is delivered So and other in that we or orally cases some Dario again eye deliver well-known enzyme AMD. able see delivered It prematurely systemic X did usually doses. liver issues. due inhibitor, we're when or the in higher oral with enzyme showed expect with the And you GI stop locally liver to both that not side X, effects that efficacy are specifics. that elevation delivered has the in into tyrosine Again, much

going X to the point specifics more pre-IND will Phase FDA now and detail about seeing right in efficacy the a meeting still little our then your we're bit and go signals Phase because we're very, The that that finalizing to address required very back into the design. Dario, X. We're come of a is small second not some

small I is probably tell even Durasert. a size because XX be had maybe patients, expect the going it's modestly less X very familiar can you again, FDA than because And However, already Phase is it's very we study. already But to vorolanib good of very with gone this news smaller with it's than we the to study. be when familiar already pre-IND and the through meeting, our fact, that.

us So efficacy turn they very more because over the talk it X. Phase moving seen with on Phase are a into small Dario a with signals to a to oral quickly of then into those I'll X now comfortable two vorolanib. to bit and us factors, larger

Dario Paggiarino

thank you. Yes,

So the oral vorolanib pointed in and studies, was formulation two tested as X out. actually Phase X Phase

The was who about open-label, the patient study patients. have most These anti-VEGF dose first study an in escalation pretreated XX with for been part were treatment.

So safety. the idea was of first of of evidence to see determine all, the all, objective possibly efficacy. was, to also second first And

indeed, not acuity. in quite require ocular of a And some we number And injections. very also improvements did a the but increasing rescue a see observed thickness. with retina about not for actually study visual also associated event no acuity, with And patients, actually visual adverse importantly reduction of only that them, We in XX% any findings.

oral anti-VEGF study And larger So study was was study a essentially patients randomized. Phase these study. were were was three of terminated also actually to that for of the injections. a and acuity oral rescue the year. XX% about stabilization reduction responded effects But The need doses. systemic patients associated Again, in XXX justify observed early And the we And who only study Phase half patients to a with It side visual well through moving the about one in because completed product. again, therapy. there doses X study. were X that had again, patients the

significant events. study in importantly very again no Also, ocular this

and the confirm that actually ocular the fact studies two acceptable orally safety. those also essentially having is So active vorolanib is

Dana Flanders

XQ then much of I that versus how And should around of expect another on pharma distributors? is that comments seasonality, your kind the into your dynamics be as earlier going guess, we seasonality with revenue great. Okay, the I to demand just on just of take down, to follow-up, quarter-over-quarter and related should some

big DEXYCU, How are think, that had And what then factors you. mentioned I should Thank about representing market. of $XXX kind to just ASCs increasing the throughout trained of gating I XXXX you about that think you million pace seeing the and on ramp? another follow-up

George Elston

year this quarter Dana We're going expect not underlying Thanks, continued that guide George. in growth except to the say on specifically is see do we to to demand. or

you from we single went distributor a a we as stated, As the quarter. distributor structure multi know, fourth in to

over will still they their we demand – to that bit It sort grow. but it's revenue through we I demand a as expect be more little we – We expect expect bumpy, closely sort message to continue important And inventory will time. get XXXX will on will think is it underlying out progresses, – as to aligned. and the

a think, fact we QX pointed a cataract the almost Scott little surgeons. in seasonality learned, And simply because modest of will be out. as February the weekend there's I and more conference for January every in

clearly pause we to that So, underlying is it's a But said, their they that demand to still time because expect see down. grow. customer demand continue to

Nancy Lurker

your answer second ASCs. the around And and Jones Dana, contracts will then Scott question

Scott Jones

Dana. question, the for Thanks you. Thank

of that ramping accounts in first it We're really those that return And bring mentioned expect some those of in as through in And terms covered areas to private through I the underlying market to expect contracts, to networks. presentation, throughout year in to are equity see And in the earlier both to health contracts. our we're the well representatives in additional what additional the of provides actively out for on demand. quarter play see integrated it does the addition we're we in in a expand continuing build. by we as the year. So contracts customers those and already the as up starting access

Dana Flanders

thank you. Okay,

Operator

Riley line D'Silva Andrew the from B. comes question from next of Your FBR.

may You the question. ask

Andrew D'Silva

morning. good my for questions. Thanks Hi, taking

constraints curious, any then a in sort at quick to the did early really you space in of market quarter I if XXXX remember, from supply channel point? this in implants Just benefits several I few unfavorable ones that was checks the from the the was with there noticing to issue from any issues Ozurdex and market of was generally say just me. or that that if off start there pushback contingent entered before you retinal during like YUTIQ if were with And been that announced a I’ll physicians the And October. due specifically just curious we were an were Retisert. that was

Nancy Lurker

All right, so let me answer question. your

is no, And for on too, Ozurdex, As the from be we YUTIQ what down Ozurdex. all to using initial not eyes the maintenance. patient remember we've this where then ever impact you a bolus are there kinds then they've really see it injection was does drops candor more and seriously generics effect injectable but to any article YUTIQ off. it and fact this a is where inflammation hard bring problems physicians a Ozurdex inflamed, hit and it that their burst recent YUTIQ quickly for to initial Ozurdex, to seem you always And they to use published almost versus did give got Ozurdex said in meant with in not presents with of of seeing and when and all always very want look we're with of used be

comes YUTIQ Once where patient that's in. the they then controlled So is use YUTIQ.

your true for to we seeing What impact don't an underlying is out Ozurdex been YUTIQ. you're So answer, from stock. of demand having see

of And I patients back XXXX, question your contingent second in around said… a think, you

Andrew D'Silva

the retinal was space, in it physician, Eye physician yes.

Nancy Lurker

it. plan ambulatory you you've though from doctors years, have $XX,XXX lasts Durasert lasts the for Retisert physician's surgery, is in procedure, most clinical use, is the the in about for thing less and surgical up go you years. look, can Look, see is to ours is that? And other is YUTIQ still candor, And away to the nice most three $X,XXX. to for YUTIQ Retisert. IOP doctors than why some with It's get Yes,. office. trials one two implant, Retisert Retisert a in there suite all be into got surgery move delivered

– with has is you that not any on I the just put us seeing for DME. tell me, will other hesitancy five it. ILUVIEN they identical basically excuse seeing we're implant. problems that's So And an these we're the just three market to – helping products, for thing aren't because for ILUVIEN or are been And years years inserting

more they're a as so And result using YUTIQ. much comfortable

Andrew D'Silva

a maybe little that's And bit broader good the I over just more sure. make can wanted hear. in to detail. No, to Okay. you then just to DEXYCU, market discuss just moving

ASD changes But know up So C-code like just equity issue standpoint I factor a created the the out-of-the-gate other J-code how here much some private the played C-code just confusion. headwinds with a from here. roll in have offerings versus market broader

you initially specifically you curious market the would I'm from C-code sales where be been was Omidria initial similar with of when that through the with a through ASP, and how in pass three was there now diverse DEXYCU. look trending versus it has as the some broader in on years maybe a you were whole, thought example, But when looking issue. where said, at a obviously you DEXYCU, for market change for the a it ASC to going So ahead at with a coding of capacities. being significantly much change we’re a shift

Nancy Lurker

ASC from Scott delivery no Okay, taken answer control now a physician so and call the really needs doctors I'm going to is of a used owned shifting networks of there's more has that integrated one in them, let let of majority me give the shots that of away of Which where but ASC an quick them a equity doctors. owned doubt lot the lot private from a who just question, highlight. all to what’s control

Now can't it's want anymore use have to doctors it, still but gets still used. say yes, they important to dictate – they what

going to result elaborate. integrate signed that step and extra get private with a further these now have we let as go contracts to to delivery networks. firms equity Scott So I'm

Scott Jones

Nancy. you thank Sure,

Omidria. relative the to So I'll question answer the first part of

indication at difficult look the is Omidria obviously utilization post Omidria I and just think it the versus a of one-to-one surgical inflammation. broader because has is outside different to and much DEXYCU

relating changed and And certainly think of is with However, the over that the said, for of time. both Omidria process The is reimbursement money. passthrough that challenges on the pastored a of to than product that launched right certainly we which with J-code the permanent ASC getting is launched which is things one different you with is comfortable has I C-code level comfort now, part a that with.

that one So I think the change is in big marketplace.

market to several It said, your to physician-owned market, ASCs. has question dominated changed by Nancy considerably relative the last over broader about But the as years. be the used

are share, ASCs ASC owned Private those segment et the chains physician-owned equity up the of is segment the still larger hospital is small but controlled – community largest is cetera. Now taking a share market. and by the the HCA,

product space relating implies that's all the to the what in opportunities. surgical today in actively clearly related strategy those issue implementing markets. discussion into primary a and to trying market target is access the access And so those we're of And that our is create to additional

Andrew D'Silva

just pardon that. have two you were perfect same with six-month move years different you is that effectively delivery a EYP-XXXX Avastin or since to there my utilizing go mostly reason with on eventually. product developing is ones versus here. with it platform curious, a not is memory Tethadur few is I small three-year develop here, the a that Okay. for more color Thank a out a mab you but or ago three-year a plan and was quick had I the the that molecule? And versus to six-month to a

Nancy Lurker

of I'll some Okay, I'll that. as answer opine let well. Dario

a out of is long was mechanism, killed thing be long and first gone. ago. is here one anti-VEGF. why I relatively a not Durasert we all, de-risked, program buried want and for and we This other That that We that's think careful versus Tethadur the is relatively this time should say, like sustained program de-risked work. So using it to about potentially, silicon-based delivery programs dead, using or did delivery also this

details into we And bio-erodible excipients Durasert. but not in there the polyimide are tube. the and bio-erodible The difference The ago a YUTIQ, excipients. non-erodible. are not and other in is Durasert there ILUVIEN non-erodible and is the only using Durasert, Durasert, the main is to note to the in by is for Vitrasert, bio-erodible YUTIQ, using I'm one and is that? long Retisert because versus difference tube. is going Because there's the used we're way we’re proprietary, that using new its go that Whereas ILUVIEN whereas it's Why Retisert no now no Important polyimide same non-erodible.

done things there's to ingredients. we've So other added it but there's new no

believe So patients do has a well-proven with EYP-XXXX that thousands a got we're versus of safe the And patients delivery in We to of drug because using over proven technology six that non-erodible months been with as as Durasert have the we've result, so Durasert. three form injected years. years.

a it's result, And result, this as uveitis don't three It's with idea XXs so longer are different state are months. into you their delivery years, mechanism. young, totally like going to years in when twelve because these a they're you need that disease. when have something marketplace, AMD. no six a delivers in delivery it's a found we the we you anti-VEGF That an Let different get YUTIQ the again, disease, where to me three you're in for slower device what you doctors that And usually patients have liked again these uveitis. want flare – these flares, most get uveitis, out longer. wet progress as want a chronic goes they diseases They doctors than that really unpredictable

want doctors’ up, the you remember, disease. keep goes for number cost are the patient. that, they There's than one, goes to a want really that. they now doctor. every longer of with disease that make for to uveitis, And this go the see of up that when Right Number of factories, it's unlike on reasons And get for into up AMD, RVO offices, are to are what being just of once the cost the patient, that and they they out and sure an sure top control injections to one, couple make again, they DME, And treated get and handful potentially three the which wet Beovu markets, getting with months. once patients lining other you is month. they're month that's might every like you their a every these orphan patients, these

want and patients result, patients maintain to out a months get running lot a way without with it's three able all they to to to six out contact to through So going be months these XX the as of and years.

do of That's the The is out off as more frequent they too just and and frequently. I have this far, get reality is, think derive cost And injections. to you expensive they a of bear second income it get inject be the don't doctors marketplace. needs to to stated, some thing product

So better they get I'm to comment these do it turn to Dario compliance. long like you shorter-acting, enough but that anything. over to going

Dario Paggiarino

No, Nancy don't I have I think, comments. additional any really

all I have think you the points covered. would I covered

Nancy Lurker

Okay.

Dario Paggiarino

Yes, thank you.

Andrew D'Silva

flow benchmark just standpoint Obviously, the bookkeeping questions. What wasn't if a cash to we was probably year? targeting? a for last you from cash that would couple George positive this be that's year. CapEx I'm flow and you And year at should flow just noted there be And of then time, expect the from curious still operations cash a

George Elston

No, we Andy. – thanks for the question,

fund our fund think over with The separately. should we hand operating year generated commercial as cash in programs mentioned to as commercial and – we continued programs largely way those R&D expect programs fund I into the the my EYP-XXXX that comments to the would from the us look from of end commercial commercial invest we is both costs. prepared at continuing As next cash time to look future then that success with in year. is that about and we the in about we the will think And financing expect on success

Andrew D'Silva

flow CapEx cash And for have from you Okay. to your did XXXX? and happen operations

George Elston

that not the week. file we'll from run inconsistent in through it's too that, rate likely QX. But Well next the XX-K

Andrew D'Silva

great. going Okay, very Thank you luck forward. much. of Best

George Elston

Thanks Andy.

Operator

from I-Eh comes the question & Laidlaw next of line Jen from Your Company.

You your may question. ask

I-Eh Jen

start which Good can would terms for what a and pipeline in which of longer-term just explore. you indications I'm to prioritize priority little that? morning thanks how which the and questions. there have taking is question, you is three EYP-XXXX, the that that Is product, going with you

Nancy Lurker

order. diabetic then then that retinopathy, first, AMD wet Yes, in RVO,

first. we'll So after AMD go probably wet

still sorting all through we're again, in the early that. stages So of

George Elston

certainly with the will think Phase able there the that, folks multiple having think I is on Phase the be we're to right indications. about Yes, targeting all. study similar that from X out There are learn support other and to but focused these way X support should programs now

Nancy Lurker

the dollar highest as listeners of let me needing one the a in people to is remind state need AMD But also of unmet is the And it Yes. very is markets. some for then it that has And patients’ It's multi, – delivered market. monthly, sustained market. excuse the in the that products is terms a main other it result, a just And developed delivery. of this multi, look wet eye larger at the injected it's, every injected which three the usually Eyelea rest again, month. is in usually every if And Eyelea, also lives. on Lucentis, market, me, month, the which of multibillion the you for

and the fact you launched, injections. eye recall – And Eyelea of you months injections. length Lucentis eye. And then then if are that launched that the the out was overtook Novartis diminish because has number were extend now And up second the to when every quickly these they the injections mostly of into is again, time trying to to is frequent goal – three Beovu, which the they able eye

about injections. get so EYP-XXXX. the Holy That's that generally to with as these now, we're is patients no And long up as that, why kind one Grail eye right than possible less longer frequent so of out excited year,

I-Eh Jen

file just of in to also, the tag of toward fourth you Okay, helpful. of the I toward guess. year, – you're great. quarter That's And bit, the just end very or on this say very, terms in and going to IND little your cash maybe a

study So anticipate resources cash a of Phase going X the smaller or X? depend other for you on would this forward, at were just the that’s least as complete totally or a start study at was point, sort you Phase of given

George Elston

Phase important digit likely X investment. so note I of think single is to the We're at is big that millions Yes, not a investment. looking

certainly that operating in it's accommodate something plan. So we our can

I-Eh Jen

point in you your when budget runway? of that And already Okay. guided this the cash that at you consider into terms

George Elston

on absolutely. current baked We sticking in, cash Yes, out our next year bid cash. have that's do

stated the and plan. operating cash – operating success with earlier, continued I As

I-Eh Jen

a the have in terms of that presented achieve of been penetration toward Okay, that you of if hope use you in still great. sort how terms to set a to Can otherwise this bit is ASC, equity you on relative early of know private this stage what the and terms year on can, of you – early quantify end question goal little metrics One in particular you ASC? far I none more in you of other stage.

Nancy Lurker

ASCs what penetrate got make question your percent I-Eh your market right. let sure is we understand. Are you wise, make I of me question? to want sure saying I share that we

I-Eh Jen

because the growing No, equity you the to of and one ASC guys want one particularly upcoming, major achieve? probably biggest in that that's the owned sort private target just

Nancy Lurker

Okay, I'm that question turn over going to to Scott.

Scott Jones

Sure, thank you.

and part the of this market private of evolving equity number the there are a is So players in marketplace.

that However, are smaller Those ASC those the were targeting. have in put management we're that of say, portion enough would there private is, companies. gobbled firms equity principal I private equity the have ASCs up owned place to that ASC

recently call, continue will As several completed about contracts negotiating we but the with two those, throughout that to during year. we've talked we’re of more, be the

and that As market that opportunity. we'll part of focus the continue in to expand market evolves

Operator

H.C. the line question Chen of Wainwright. Yi next from from Your comes

question. You your may ask

Yi Chen

possible for Thank first YUTIQ? the it between question. is and DEXYCU is, quarter regarding product you breakdown, fourth to revenue My question provide my the some you taking for color

George Elston

you first quarter or fourth say Yi? Did quarter

Yi Chen

sorry, Yes, the quarter. fourth last quarter, fourth quarter,

George Elston

so Yes, I'll in but release, now. the give it's numbers the you

up. pull just So let me it

Nancy Lurker

and – YUTIQ was $X.X the get $X.X – be $X.X for million. for it $XX want the George for DEXYCU, million to YUTIQ okay, was for million total of DEXYCU. And it year, year for million Yi, yes, you in million XX and QX revenue clear the I $X.X would product

George Elston

For the quarter.

Nancy Lurker

the quarter. For

Yi Chen

you. thank Okay,

of first launch, patients does – number us and with treated the number patients XXXX? January with XX,XXX so, and number, include treated February also that can that in And regarding And you. XXXX? thank if of Okay, treated DEXYCU second in you patients a provide since

Nancy Lurker

to you all, includes also got remember usage. XX,XXX some the of sample First

number a in XXXX, in to color efficacy that some you all that's And you're how now, to many we of that were injected. and have think. were wanted going safety The course XXXX it's we're good going seen. patients and on So what launch had said exactly But is sure given patients when and have to not give I versus these main basically patients point sample there of go total out make we you usage. we

XX,XXX the in basically So is injected what XXXX. was all

or yet. any guidance numbers for given XXXX haven't We

George Elston

usage speed, is up are they to how and And delivered. on to trained these in that get as DEXYCU there is sample ASVs again, up keep mind as brought speed

So get granularity. not to granularity that We're we beyond don't really give ready yet.

Operator

I to further Lurker. would am to time. showing no conference the at turn like this Nancy question CEO, I back

Nancy Lurker

your everyone keeping you we your on for exciting the very want time our initiatives Thank to I quarters. today. as our thank forward in And updated you look coming much as well continued progress, to support. for launch commercial pipeline

Operator

and Ladies for wonderful your concludes today's call. have day. participation conference and a gentlemen, Thank you this

all may disconnect. You