Ocular Therapeutix (OCUL) 9 Nov 212021 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Ocular Therapeutix Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will follow at that time. It is now my pleasure to turn the call over to Donald Notman, Chief Financial Officer of Ocular Therapeutix. sir. ahead, go Please

Michael we Company's Good our on and Results our Third will portion corporate website Call. the will President Executive the who of President be for Medical Goldstein, and Chief development call update Update at progress investors. programs Valerie. that release our joining and you and accessed give release us ocutx.com. clinical of can will ended Ophthalmology September commercial on our providing the who the Conference and developments close, With call after and and of financial afternoon DEXTENZA. Investors Company's on be our Quarter This today a our an afternoon, Also you, Dr. provide product on Officer, press of update of on thank our Officer, speaking everyone Antony Press the for update summary pipeline. the an results development on Business issued quarter Thank an a XXXX details our be XXth, Financial XXXX. today will Mattessich, Chief

Following Michael's the quarter highlights over of turning an remarks, provide third back summary the to will the call for and overview before Anthony for question. financial I

be Q&A For Business we'll President Chris Senior Vice Officer. Commercial, Corning, and our joined by Scott Chief White, our

research afternoon Securities forward-looking of any Private statements well regulatory These be particular, our activities may making our product the forward-looking Reform results XXXX. will the call, statements. cause quarterly to we plans including a those and reminder on purposes certain are described forecasted, as regarding today's As our be over considered now Act those as statements differ for Form development In Litigation of this risks statements with recent and are of from the a SEC. subject will uncertainties to call turn on I filed most the that Anthony. in XX-Q risks may report to actual variety

will efficient product respective itching for target developed post-surgical candidates commercialization. more [inaudible convenient our unmet welcome line. space. to begin Quarter dynamism build Malartic to technology of XXXX we problem the our also to now patient that could drop more market. is solution with improve allergic glaucoma, become have we the the OTA. us and believe we wet are and have need with key then desires patients of themselves needs product and To enabled Report. free of going disease, value that pipeline key that to on The everyone XX:XX:XX] Tom, our opportunity safety become And durability a AMD, focus to state a of could in Ocular them in ophthalmology and that the relative clinical needs satisfy clients Not a characteristics consider our and our Third a product believe and therapeutic we do we We the on Earnings therapeutic Thank in and efficacy unmet you, solve key programs technology. end hold for needs end and market complies by to the proprietary have associated treatment in Only requirements. then extent determined We I'm did first the development whether disease that finally, current and the our Therapeutix care. where the with therapies. unmet to size pain, dry all these XX:XX:XX] goal to enabled but only inflammation conjunctivitis. their to [inaudible we physician And OTX-TKI and eye the designed that by and fills our to and believe with standard of believe greatest spaces, the platform where

whereby targeted to are be All the positive these within XX:XX:XX] Company's the U.S. force DEXTENZA with benefit, also selling short an in cover care products, traditional is medication. of and been able patients, characteristics participate size have selling FTEs therapies , of to achieve has optimized pharmacy of are region been to more structures with Products but period that Account approach, in physicians commercial benefit and only costs. frequency time. of improved product through a medical with utilization. account at XX designed associated the [inaudible the models, very Ocular field than the product procedure entire dispensable to contribution we've to less buy-and-build whereby not a with by able be attractive can targeted

candidates novel in of product are that the up development before differentiated to property lend the themselves underlying candidates we the highly expected are clinically product periods into expected efficient expire protection innovative and to maintain are applications have or well commercialization our an of a exclusivity and have highly all to portfolio are that have candidates for long as intellectual exclusivity. provide are to XXXX of to later, Patents XXXX. product adds in developing we expected Finally, believe and future. protection potential that therapeutic, It substantial all DEXTENSA

As leadership the entering and events will ophthalmology. of that data position flow period we our and within highlight shape to the events we're come, of a past it's news quarter preview the significant clear

third lower X% of XX:XX:XX] in many Like ASPs expected approximately impacted than volumes. XX:XX:XX], events for XXX% quarter under over approximately that few same the growth past companies starting and early from by over increase [inaudible $XX.X XXXX. achieved the begin elective representing net for quarter, Let quarter second HOPDs, distributors [inaudible was sell procedures an last improvement other year with a quarter, the the particularly in with million quarter, and me sales the

strong expand currently result most are forward, the happy ever treatment we to October The of as our the AMD, enjoyed like over conducted associated treated sold step allergic licensed This month exclusively Ocular more allergic with dip we ASPs We particularly second October to Ophthalmology and and expanding insert glaucoma, X,XXX represents fell ASD this and virus. to the majority a step sales. of In we to of first typically for fourth optometric returning wet of set DEXTENZA and quarter. that. surprising the in of of buy-and-bill also normal we receive numbers mother with of goal vast pleased The HOPD to the were DEXTENZA for our approval market FDA with presence us believe in-market is to largest those of take of cataract use opportunity Looking build SNBA the and DEXTENZA and is future when important doing recent and DED out the first for innovative see our to approval strategic customers early including ocular virus office our in by FMDA the October, the opposed the flow options Itching gives itching milestone potentially company. to a month internally Therapeutix associated products, conditions market with procedures. In to developed return providing to environment, an in an pipeline. HOPDs almost the billable refuse. normal in more see numerous October, gets up approval month quarter a the while

with the equitable logistics set part enormous, office ASD began that primary the stems that the variance in We HOPD for accounts. administration. success strategic of [inaudible those product which and of discovered product's and an and in of space potential the believe entirely launch opportunities. almost the the represents launch challenges up associated us We new XX:XX:XX], the large DEXTENZA, While unique in environments setting with

physician's be met drivers ever solutions. the So on at will the use physician's site DEXTENZA could require bespoke offices office. with product in treatment be desire different available be with the will but up care. the ophthalmology analogous that for disease first ocular Setting for surface to of an use buy-and-bill and... products accounts the

areas, are opportunity. so used in unchartered relish to this We we being

Fortunately, we're zero base. not from starting

First current who for suffering type of patients [inaudible with who treat specialists we reimbursement. list, of AC, all, are call believe DEXTENZA from the eligible our your XX:XX:XX]

practitioner treatment in relieve with symptoms the with healthcare patients Secondly, overall over million XX market AC. is the annually the large to seeking associated

As from indication code will continue time hard dawn patients the payment reimbursement treatment rule with imported, indicated embark the product for important won XXXX, look payment that encouraging XXXXT system positive be get the become extending when year large indication, replaced once associated settings. a can pass-through uncertainty a X we eligible management to With effective simultaneously XXXXX XX:XX:XX] CPT this non-opiate ASC as have as is On for premium been benefits DEXTENZA settings. around XXXX. horizon CMS [inaudible DEXTENSA payers. of code severance that the HOPD will ASV At is its by under Payments COGN-XX, -- new have drug surgical separately a is ASD Xnd, physician believe DEXTENZA, approximately it's the development of that in that we environment, January in believe business pass-through in those office the and in be XX, start lifted. in virus status front, significantly this XXXX. Category to DEXTENSA that for the may by cohort setting. CMS and effectively the announced our can calendar new reimbursement in procedure Category likely also it On expired, supply $XX product we in reimbursed of surgical provision an extended December slated former on evergreen We price inserting for and November new announced whom $XX do a for supported for office XXXX the edited of step for to the final itching under X the fee first be the may the regards to making CPT pain select that of Xst, payment code and will will on the a to some the a has expire CMS

has across are been that We code will procedure X all reimbursed types. elevated and payer recognized that status, better excited to a be the Category

going researching to to is [inaudible results months [inaudible amounts and downside are can point. these constant The high to therapies take Including drop new eyes. combination we in profit. not trial. conditional our anti-inflammatory October enough of not already intracanalicular is constant potential that to XX:XX:XX] be new for the company the is suggests [inaudible the see while that cyclosporine to attempting the to have in real low to of the is work. our has but interested clear. Data for of concentration work disease. pain observe people that been on working XTANDI for things coating dose our believe perfect immediately to to a that painful avoid and is strategies OTX the done is The is for CSI We're future. dose Delivering They are trial XX:XX:XX] insert create suffering irritation, slow continue from to The some blazing order patients challenge. XX:XX:XX] - any will need should OTX-CSI reality also of trails The to in these Phase medicines in a dry case to surface begin do effects and forms enough to in potential including never analytics. with of irritating everything benefit DNA pump the aware millions they deliver We an for eye X the that pillar patients. We and before. make in differences cycles improve Clearly, volumes payment

concept the Schirmer from our our XX:XX:XX] weeks OTX-CSI as measured Phase increased hydrogel primary set. XX to at separate tier sale by are trial endpoint, on clear, [inaudible the While placebos cycles production in X is

it cyclosporine mitigate our and Why innovative has the the cause. this product, define are through next get of have failures sort all We potential for to the can setback, rely certain. dose on don't company then such disappointing, benefited While it Surface. higher document know patients does and basic that can from Because are is of important a particularly delivering from never There this we been our the data fail? before, risks. could couple and of as keep who the learned we is to improvement likely patient received others successes we that the to is concept level cyclosporine as do actually line content. might also steady-state fix, helped months, an that done the a of for What what delivery causes the from we can't Ocular over included highly pump-in insert is important that or applications. we the in because of be we causes potential There retention, of

to team will and the and therapeutic -CSI patients the to OTX in execution it's not from OTX-CSI we're Phase has coming one itching-associated that rolling OTX-TIC unique and prolific. with we for Extends Phase The should initiate but U.S., enough important improve and we're another a forward difference II debilitating is move going results innovation Last the is brand not indication to X every X soon. also from name the read from course, trial their through this before program is effort. began based to the lives but be treatment in of on waiting for very is for projects opportunity least, pilot as only clinical year-end. of limited. many program. Thankfully, whether of have innovative, readout not upon stop. conjunctivitis. on OTX-TKI decision I We Our for from that note world. can't from a Regardless, trial schedule, Phase make their to thank truly disease A data that suffering allergic the sought

we Mike is an the and to two Raines our our of In Ocular new financial, turning board speak member members to Merilee September, to appointment bring team. announced the of a experience. more who Before Merilee experienced like in offer of I wealth operational, to board. business welcome would to will depth pipeline, about

blue-chip role technical Officer, in that, who like Operations team years promoted the important, Dr. our consulting and over business. technical at provide now across more an an Pharma call will candidate management ambitious experience and the to years operations the President global our strategies. growth has contribute life added XX of support him enterprise-wide in-depth to Ophthalmology, also operations new into Karen-Leigh would over of President cycle Business building Karen-Leigh Technical implementing experience, presence could of Edwards. Michael XX With broadened Senior biotech large make of our Goldstein, Also, addition an broadly Medical White has Quality, strategy. in Chief high-performance We Her of look Chris to pipeline. with further Officer. our Vice I Chris ideal companies with hand the Chief our will was

Antony. Thanks,

of update begin me back program an our the Let with on eye OTX -TKI.

the That axitinib single being every U.S.-based conducted under VEGF trial with enroll subjects usually exploratory controlled with X an United to preliminary subjects compared a OTX-TKI, to of Data a being Aflibercept. demonstrated retina. at The assess activity biological durability, with at measuring treated of anatomical to intervals subjects each from has evidence following care been retinal generally changes and some including it safety designed shown safety, in week to in clinical subjects in is aflibercept - being the continuously States subjects application the randomized total is favorable OTX a dose at has continue Australian tolerability multi-center axitinib, months and X biological - X targeting We trial in single assess evaluating as and in that well-tolerated as IMD Phase of space administered trial TKI is really TKI standard states, being two functional as prospective and XX and OTX well microgram the OTX-TKI by decreases administration. as implant as OTX-TKI randomized week implant implants treated This activity, I Phase profile treated subjects. to-date of subjects trial getting fluids of therapy. has

upcoming months durability at Additionally, beyond year we or on trial data durability next some of subjects. We the and Australian-based held longer encouraging week. in X from incremental are presenting six AEO seeing across being plan the cohorts

based OTX-TIC safety, subjects durability, in trial and ocular OTX-TIC, evaluating of the with hypertension. opening we for Moving biologic our follow-up completed of a to clinical program have tolerability primary baseline activity, U.S. our glaucoma

from X. be at at summary will this May This to highlighted built remain future. AO safety really subjects OTX-TIC in next presented upon in productivity also and initiate that data the We pressure million data to presenting in administration, of and week, in cohort at baseline. track as tolerated needs -- study process. clinical by next X comparable July upcoming to-date. on Phase incentive growth near decreases result trial reduce our upstream been months highlighted today's and the XXX with travel X a of well of $XX months has set build that at on the theratopic and favorable clinical data high for of to current in actions the a in the year. primarily senator in the cohorts X to generally X pressure We AAO a which look data from Mercury, to we conference efforts, $X The response subsection with on of to is earlier a trials data approximately ability durability OTX-TICs May II interim trucker profile measure The many is for per

surface the recent the allergic ocular this administered with DEXTENZA our disease Regarding product drought thrilled and a believe patients position preservative-free, with treatment offers program allergic unique [inaudible programs, we XX:XX:XX] of free approval are of arthritis. for for

Regarding fairly our dry of X the to clinical trials outcome patients are - OTX OTX we CSI treatment of chronic disappointed - the disease. of with CSI. phase for

a both and which measured compared did symptoms an visual study by follow analog vehicle X Schirmer the to as test measured fluorescein for staining by expected. we the as the While Phase separation of sides, improvement by prior between does especially not show that driving deserve scale,

and a provide Andy better for insert retention to data at we'll date. we'll an result understand to continue the that including later As noted, and analyze the update

candidate with about are and times is XX:XX:XX] candidate a to low-dose off-label eye episodic insert, inflammation. their XX:XX:XX]. a This eye used size. long drug [inaudible have active dry lower experience preservative-free OTX-DED product product dry Any sustained second patients. [inaudible effects been likely believe Topical which intracanalicular in dose a for dry signs Our new we players related patients a is steroids with symptoms smaller in eye DEXTENZA. as

of lead may eye pressure to or also cataracts. event misuse chronic steroids adverse However, as elevated such

addition, X patients, can our been drops result in stairway States controlled In and by physician available can't multi-center dry of in eye doses commercially all United The eye is with efficacy Ocular with the short-term overused signs [inaudible therapies of vehicle toxicity. of subjects -- double-masked, in enrollment to preservative-free that a safety Vas completed of clinical trial, treated randomized, disease other available these scores, by to Eye the MSX Stain, The all disease. of and two trial steroid evaluating which OTX-DED Dryness and certain the and be patients. XXX the XX:XX:XX] different symptoms designed topical eye OTX-DED administered, Bulbar dry U.S. phase assess endpoints. Severity based We've Frequency commercially offering have treatment preservatives Hyperemia, Conjunctival Fluorescein has be Surface and Total steroids OTX-DED Corneal evaluating for opportunity the among

expect first like study to We from review XXXX. Donald to the back the quarter our I financial in top-line to third over this results. data of now turn quarter would call

Thanks, XXX% personnel for includes Development of Third net and Total a as Net trial XXXX, revenue million the and rebates, primarily headcount, The initiation Phase trial. $X.X discounts, as expenses over represented Sealant. in force million returns, for period OTX-CSI as reflecting in for net to associated costs the XXXX, marketing ongoing an XXX% quarter the U.S. XXXX. the the million of as comparable and revenue to XXXX were from compared driven associated million in in quarter the with which total X XXXX, million the ongoing a product the the for of product was million trial quarter quarter revenue, increased and also increased the well X% by clinical costs and in revenue of versus an and OTX-TKI comparable and clinical approximately over costs. were increased product & OTX-TKI, increase. expensive of Quarter sequential a $X third X third facility as million other refers Phase extended of period quarter in $XX.X million as company increase in expenses XXXX post-approval Research reflecting ReSure same Mike. have pediatric was QX, X quarter revenue Selling $XX.X $X.X the for increase Australia Gross field in increase net product same $XX.X product our versus in clinical Phase with expansion trial ended our $X.X well $X.X the related in trials OTX-DED. net

the were expenses third $X expenses respect personnel and quarter third XXXX. Finally, share a of for results XX% of from professional basic This a the $X.X share of to diluted the stem The in in general With million administrative quarter increase of primarily fees. loss or $X.X reported of comparable expenses $X.XX million the increased the on and million the loss basis. financial per for or net million income of ending $XX.X quarter, XX per income net per stock company a non-cash net depreciation a $X.X a cents for third compares on to lots income per million decrease versus the liability $XX.X convertible to due XXXX. in common driven basis loss were basic compensation by of quarter the net charges period million of for derivative our notes, fair in and and primarily XXXX. quarter of share in a the change a $X.X the during versus associated million value in in stock-based with $X.XX our was the with share amortization Non-cash and quarter. same on price a on same diluted

the Xrd, XX.X November XXXX, of As had million shares outstanding. company

outflows results, Based expenses, plan cash September from $XXX.X cash and from cash company service equivalents that will XXth, and million XXXX. had dissipating the our in XXth, company XX, $XXX.X plans the including of related is and those of and of programs expenses, cash existing current thoughts. of obligations, COVID-XX and the to DEXTENZA, I varying equivalents and sure assumptions, pandemic, and capital expenditure expenses, of clinical my As the the third DEXTENZA, company at back and quarter aspects This operating related to XXXX [inaudible duration concludes September development debt financial operating subject the Anthony for and requirements to of like a revenues, associated call believes estimate, This with XXXX. guidance business. as other on turn the final this to XXXX, among fund a pace the some research cash versus the would and XX:XX:XX] number inflows reimbursement were cash a product sales from enable to million through March cash

Thanks, Dom.

open So before for quick quarter prior performance and the the questions, solid real up of a summary. DEXTENZA call demonstrated same year. I quarter third prior net the with X% $XX.X over million in from quarter XXX% sales

of X us initiate OTX-TKI We readout of rules, standard forward recent X for in care have FNDA implant of XX:XX:XX] allow launch source quarter treatment associated [inaudible OTX-TIC [inaudible file for OPPS new data expand a OTX-CSI, post week with will first the U.S.-based businesses the topline half from XXXX. [inaudible The injection This surgical enroll trial as for October of for of continues indication in ASC first XX:XX:XX] track the look could to a single and microgram the environment. the we XXX X to We're to the our for of extend a end continue with pitching XXXX. path for analyze of a laid in trial has line reporting evergreen to glaucoma of the approval Phase label and product the the to data we inclusion top and forward look of CMS after out XX:XX:XX]. before the allergic in formal dry [inaudible of OTX-DED well. DEXTENZA disease, In trial of the growth continued XX:XX:XX] the an on to versus of Ocular environment clinical every Phase eye office recent In separate evaluated year. build payment in our and

a in finish forward $XXX.X expected on look company will I the the strong the XX, We and XXXX. through over September questions. ended of in turn Finally, quarter cash that, XXXX cash million and for as Balance Sheet call the to runway with with an

gentlemen, and to Instructions]. Thank One if like please you'd you. Ladies ask to for [Operator like if a question. moment Instructions]. [Operator Again question, ask first question, our would a you

question John [inaudible first from XX:XX:XX] from Our comes Securities. Waldmann

line is Your open.

thanks from for allergic taking few me, with if could you. A questions. conjunctivitis. maybe Thank start And the I

were XX when you're can with You be what about triggered million and how little talked large thinking a patients. the numbers patients, bit opportunity hear figure hard step and AC? about general that out in there think this if also, such we it away, happen editing might the How to for additional in market in should then DEXTENZA right And investment about not additional opportunity if your SG&A, when we investment. that of

the in clearly any expect discussion, shouldn't to, increase mentioned we ASC the going we seeing overlap You settings. we in investment in we're initially, surgical -- as are a high of for targets

set to go able over going that But is to the be the accounts patients requirements up the the be be in after ophthalmology time what need in environment. we order we of to believe in of office doctors short right are understand to the and the to types period to able seeing we're do reimbursable. environment work office So to

over we're how doing beginning plan establish our that, viable, then next insertion X environment. down So we'll to office as so the we be of to at will becomes some when quarter going on launch the or establish we expense the our next in experimentation code year Category

around arrange you are opportunity Do hands have And ACGO's? based your Dixon's on research, your it market the for there? and about thinking you how

been long to extremely get has I've around in overly by issues market but are modality, used research, the see patient. provided we've research is been no had. with price positive. the not exceptionally treatment every time. Doctors having it's I not business a that market market of I groups research know excited exceedingly payers this about excited The new the product discussion in what-if the this positive. for

Okay. And OTX-CSI. on then maybe one

enough You when information data might And showing a decision you mentioned retention more was anticipated, insertion OTX-CSI. have the lower think provide arms. to in on could little active wondering you than the steps you I retention next color. if then a for make rates

John. This is Mike. Thanks,

as it some to and between concentration reason and believe many we think and have know, in see , time ASU didn't the could at cyclosporine full we're the we fair patients, a last the I group X inserts ocular cyclosporine surface length separation why would the fair time And CSI of that percentage the direct on didn't last that see So, clinical X X they needs looking order a the of anticipated we to at in of effects. be group. be to do, but the for amongst you vehicle months, amount that

you data, we've As that's did patients the generally think But the was and separation when we some as of improvement lower amongst one others, retention testing, or we did than fixed trial, is seen from signs in we of see what this didn't were so all baseline different from and possibility that is the sort symptoms. expected. improve metrics know see we

good the the So a news fixable is problem. issue that's that's

able in viable through dataset, and and at We is XX:XX:XX] next [inaudible hope full option. decide our reformulation couple of are months the to the be now a datasets looking looking we'll whether

questions. doubled, That taking again the for thanks

Congrats.

you. Thank

open. James, comes question Dane next line from Leone of is Our your Raymond

quarterly taking for sales the [inaudible you on the DEXTENZA. congrats from Thank could. I XX:XX:XX] you, questions, if of and

they're of one data. with help inbounds common maybe the you could since gotten OTX-CSI most of Firstly, the we've readout

so any next OTX-TKI necessarily that is maybe to performed color or formulation be the with of concern and the up contrast the how could not that in might As going with we problem, perhaps, versus in how in formulation could think scale if would just -- helpful? compare OTX-DED when secondly, in to was from will data OTX-CSI and And study what you. stable wasn't terms delivery about there those me, products for how difficulty other the issue more formulations a of formulation some same study. of the end be different see that and the of being OTX-DED, be similar for you drug the year? you that U.S. of scope we then the are programs, that update data you and might Thank for

Dane. Thanks, Yeah.

about was same that's how question and OTX-DED. first different your or OTX-CSI the So as

compositions terms of of across ingredient. the So all, different duration. different the all They're different products issues terms our including and in of seen haven't And they're all we is of in I'd hydrogel active with. safety say first any all programs, of any of use what

months. we're X So and X dexamethasone are cyclosporine to using to endpoint X a primary CSI, with at we're targeting X we using With and we're DED weeks. targeting

So to I CSI through reads think DED. the don't readout

more In fact, DEXTENZA. DED is analogous dataset the much to

smaller we expect ingredients active The and the that, less difference high with width DEXTENZA. non-issue. to The a which end our expect retention and DED ability is DEXTENZA, surface. steroids we very very to it's nineties, a so same DEXTENZA, So slightly only is to being similar as in we similar be have be to

was strong II actually think I a signal, are and of designed the new more readout is read about we're we've akin studies about The I a k there's with the at. duration a designed Phase TP, safety we've target big and deliver thin and drug, make formulation learned lot If in more think we think - your [inaudible CSI things you challenge. drugs. CSI but that's we readout, started learn is II can not there, to a the longer and think And through can need to across and canniliculus. we we Phase picture, -- I more shown lot as ones a therapies we I we OTX of [inaudible XX:XX:XX] adjustments, III XX:XX:XX] basically the readout. the where which think but Phase a was That's insert, readout

-- all other appropriate II to certainly the all appropriate fixable development we've data, decide just it's once falls program. all and again, We Phase would priority study. Phase in given all a and someone within things seen do certainly that's but our II for a the opportunity where doable, have that they're list, have, So also we that

that a the would Phase soon. Phase next to when well. Australian study concerned actually rolling II AAO which the unclear but different Large the different readout, OTX-TKI understand the For question trials learn supposed have formulations how readout with under III work let people's will start for the the we update second diseases. low it's and to be study week I I it's COVID its presented guess week this or either your about for law kicked-off OTX-TKI, because in we're at meeting U.S. is is the

to but by again, year, time not -- appropriate of we that, we give data, announced that might that commit on have update data top hoping We an have yeah. to line next to be middle although when have X-month have will we are we a would all an patients, nd

very They're much.

again. you, Thank

you. Thank

Our from Piper Catanzaro of next comes question Sandler. Joe

is open. line Your

is TKI on my but we XB? And we I full months expect term primarily used follow-up so from much detail guys. of a updates it across I X? to the bit here. see for little have that X expect Should questions Thanks. possible all a Thanks we so, the incremental, Cohort provide and think patients the Hey, XA get more if Mike, you update AAO? at from And follow-up. taking can Cohorts for you what should

Thanks, Joe.

patients will where the trial. the XA X, update we've -- to think studies. Cohorts yes, X I already All in in Australian and that the be all So on Cohorts are an XB. there patients off they're all

most, I well XA there'll follow-up but data, updated six-month X, on many think as be yes, that XB. Cohorts time -- on hit subjects And as in and or seen point. will the data you've

that the DEXTENZA. then you Got dynamics Okay. a helpful. on maybe September little performance. if Thanks, that's elaborate it. a bit wondering couple I'm And just could on influenced

if quarter the rebate ASC's you last think, the from quarter that said the the and benefit month affected I into in see in sales were a together particularly of usually program. heard with correctly, I you early

your below category a think a physicians? what's that level view that's still where on below could XX commentary payment Thanks. think you I incentivize you And the be. if provide September? this wondering to bit will Is little had Just physician coming bucks? one it in then, on in hoped more you

we quarter the were They at to for first expect quarter sales recover as did that sales month. of for jump July end the the not what get expected relative would've sales we question. -- very July in that big high, normally went September. the on. in did We

level in gives there. are underlying out fourth us is second -- a because sold. started question with we normal mentioned in-market Which the to of was XXXX units you nice We more That hot, we really above? than of out of October procedures returning As quarter. that level. a carrot start into discussion, back sort in the had believe the are I'm what the this sorry, XXXX

would payment whether still physicians? think $XX would just below coming fee that addition on and Was incentivize you the

for environment at per going as there a very look factor and you're Well, in still off office the or incentive. for you're office the with in heading it durable a the office bit surgical cataracts to unilateral rock that, cataract other is a assertions, seeing that the the becomes this the again, incentivize it insertion, for board that eye. environment, is remain in the bullish only there in or environment, this code, coating as that is to you're you're environment us When looking opportunity, much for it office forward. we find $XXX that is $XX it approved opportunities the forward, getting particularly environment, that forward given certainly doing extra if a lot a optometric and of a ways enough paid stays -- Typical In and entire be to will in code about significant procedure $XX We but and are will in to doing getting through that getting the both with perhaps going to that XX still significant an order you're every calculation for so gone But insertion. working it's the really the be day, the surgery. to bilateral for of closer the future. moving to $XX example, believe once even worrying at be bodies AAO increase synergistic the of adjust if interested adjust strategies way, the that may able be bilateral

That's it. my taking Thanks Got helpful. questions. for Okay.

next question comes Jefferies. David Our from of Steinberg

Your line is open.

questions. Two you. thank and afternoon Good

and First DEXTENZA one recent CMS the on ruling.

for non-opioid the You system. guys qualified pass-through

I X think Omidria. that, only and Exparel currently drugs have

year then X recent trajectory. it's commented you I look of a of answering the lifted looks know it they takeoff gone sales or new of know sharp it comment more a expect on Do in first-year and sales are calling you so on a be? think time, secondly, you're it, future Thanks. year, since are impact of reimbursement of have? additional your the And it's any offices will maybe, on thoughts within the the Omidria Should comments just on know till initial first because the we then, sort year you I thoughts be, And around think the far like next lot allergic conjunctivitis, DEXTENZA you gonna of beyond people as on -- modest the was might Can payments might a And you I how on this around gonna mean, uncertainty pass-through. I need separation half on do initial durable guide the launching Just folks, have. I environment approval this just that you or on into what you're far And curious. would like? loss the any you're for but not move some in first how X? you

Yeah.

a opportunity for remain going opiates think So near-term, in the on forward. Hard in of I but your become designations the we exception has certainly durability separate is have environment stop that to to CMS good to a within that to gift question was be cease yearly able durable. problem the that The the of only imagine the doing that U.S. first so the to payment.

designation we incoming and supply and that with our position that believe with can will are not data a number has also have we speak allow CMS been and us to We item you supply item strategies have we of that always CMS pain. a to opiate regardless not non-opiate support do treatment and in the the be -- paid of surgery an of of for a the -- case therefore we separately the should that

we it -- window because our will being now, terms provide fallback we clearly as but more the forward number us can the that that separate have very with see be continuing payment. in that of arguments we going position certainly future does permanent have our of we a comfortable have So position separate that more a of a

Your XX:XX:XX] environment. big the is lies future our question other questions. was the picture in office about [inaudible The

in All from us all -- of products be our will establishing the products of strategic a important will to and standpoint. that Visa our future office extremely we there environment see be is ophthalmology

open to ophthalmology an Once In office. optometric offices to it what we terms get the where that -- take of really an offices, of understanding have impact the get market, use, in being get we start is example by and will and that the into how will into question. way, the in can be, getting is soon refrigerator out we a to

is that DEXTENZA a a there number So in refrigerator. of sitting insert

them do there's inserted. to physician use that things are into and desires it's they for So bad order that that there that from there of at to a to to early allow make account that be they we a In do when number have care need are put there conjunctivitis, the experiences right they that people place are in the procedures and that of make no that, that allergic sure the an to them, are comfortable with buy-and-bill, on. sure patient, standpoint to for site

for would see let So in before really as in second think that next we over can, you really to go the doing what setting. will environment, sales the above it the office look you we're surgical I meaningful of but something and get as fast half we year

you. Thank

Berenberg comes question Anita Capital next of Dushyanth XX:XX:XX] Our [inaudible from

afternoon. good Hi,

in give QX you net Just selling you able on to on one DEXTENZA guidance QX gross the about Maybe trends, to will for then for expectations and be me what based XX? talk could here. in

the allows of the what easy we're for we are yet product, into giving our in-market moving are level for future certainly toward. sales extrapolation giving data granular lines Yeah, the trend not that guidance obviously

hovered future. Our to number onto We believe around the has XX%. pretty good going look as at a to net gross that

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Yordanov from of Georgi Cowen Our next Company. question and comes

open. line Your is

much question. Thank taking you for our so

that, reason explain point? follow-up as from in study, cut, terms so TKI see there somewhat six-month And April of you like data When up. environment? starting X-month So just X with looked follow additional to data both with compared just like trailing And the AO, at behind to there I any to here, first that, program the the COVID on just a addition then it kind were And patients be guess in in data cohorts. that lagging expectations Cohort patients? from we of of the enrollment that at enrolled there those patients Is cohort I of other TKI in any could the Xb then the will will have be a seems

opposite Australia So overall, into cohort as enrollment you so getting Australia more severe, has challenging. XX:XX:XX] been been enrolled more is The has in be that slow, the place. is in although been the when [inaudible will probably XB had patients are fewer far last in has has And movement last know, restrictions far patients which XX:XX:XX] COVID U.S. the [inaudible than

there don't but more it have anymore months. we'll data than we that be but there think other challenging enrolled will numbers set them are -- perspective. will are I see week, So that next from was but timing patients a X the and And actual after

How this do competitors successful on that eventually well in take multiple other implant. Great, and to in share? do then meaningful as bar for shakeout? for market of are it where and for case duration a TKI the terms obviously more you There And just broadly, be efficacy this program. and OTX-TKI see the set long-acting, evolve as TKI includes you

so one developed been is the role. to problem big obvious the different month come you large world could a not all The see Yeah. effect durability. many of have market Not along market at to an a months, that solve, enough then the the X Off difference to patients of different with want or may play issue every a made been a lives get number drugs do approaches have in be easy to fits of patients. very so there I is and nd questions. not mean, and different where durability has and a every try huge size approaches lots in of

of broader may anti they with I the of drugs, XX:XX:XX] broadly, the well-treated so I The we or -- to TKI. say have - would the work X been it potentially drugs that think pace X with some a would XX:XX:XX] on every with say see the TKI drugs, [inaudible maybe, have to activities of is compared patients could spectrum durability well advantage extending months. that [inaudible that we not possible of is

with load you addition, than there TKIs the eyes with way XX:XX:XX] In can is molecules because get [inaudible into the drug can benefit another greater to you Put for the you XX:XX:XX] get potentially is opportunity And TKIs, would the the the there's opportunity [inaudible with there fact durability more now are the think I which TKIs. lot interested number so there can we a TKIs, of say in of other a that big that potential I companies believe here.

Our TKI, target months believe our patients that'll we the X more what if get or target think we with that XX% be we really is and of of is, more or show can lots And benefit do companies of well, in of think can as and home a plenty opportunity I be for meaningful for there's this a successful if patients. be that space. run to others durability

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Give.

Yes.

of Yi from comes question Wainwright. next Our Chen H.C.

open. is line Your

soft launch questions. to it any to DEXTENZA for just physicians' is Hi. using question is, interest will ICU? my going for gather for taking be My AC be who Thank you first for there

their initial reluctance many XX:XX:XX] nuance how 'soft the of the in presentation, product. hate realized administered a in launched a term though in lot I was their outpatient hospital medications. Even [inaudible And we and I Yeah. there surgical DEXTENZA bill take buy-and-bill yes, launch', to prefer and environment, surgery when cases desk we on but sort departments centers of the that buy

where types where out [inaudible a we're well. same environment. of and the we're We be every opportunity. they're we'll the we offices know to go look seeing bit the environments and expect going know have where we're greater into the do segment office are patients to able and opportunities the to is that going office in We we think to see going with the XX:XX:XX] products What the doctors

Okay.

So next AC? -- you to billable unit's versus surgeries you year, will plan do for ocular report separately

question. very a good That's

and don't would think decided be with but whether I transparency why committed we larger, certainly we environment haven't the transparent office would to we or see I -- we either. wouldn't, any less the have

Okay. the by And - next be end believe COVID surgical and this year levels? of or volume would ASC you do year, early pre back at the

that to and That's level we nobody a that's determining running key being a is question business, maintain ourselves the but the organization really level port challenge, ASV very staffed really facilities a and able determiner. given good remain salaries increasing to certainly has be -- voice crystal really activity the lot factor within low an a a ball, this themselves. included, are and people the for personnel, -- seems these it's is places to seeing of the an staffing of of out, Anybody the hard that of and of of to with level key generally fully the environments lot very these higher late, of

of macroeconomic what in is we see So it's it a market. the more for question than

Okay. Thank you.

you. Thank

you that participating. gentlemen Thank today's all for Ladies and conference. concludes you. Thank

a day. Have may all great You disconnect.