Harrow Inc (HROW) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to Harrow's Third Quarter 2023 Earnings Conference Call. My name is Betsy, and I will be your operator for today's call. (Operator Instructions) As a reminder, this conference is being recorded.

下午好，歡迎參加哈羅 2023 年第三季財報電話會議。我叫貝特西，我將擔任您今天通話的接線生。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Jamie Webb, Director of Communications and Investor Relations for Harrow.

我現在想將電話轉給哈羅公關和投資者關係總監傑米·韋伯 (Jamie Webb)。

Thank you, operator. Good afternoon, and welcome to Harrow's Third Quarter 2023 Earnings Conference Call.

謝謝你，接線生。下午好，歡迎參加哈羅 2023 年第三季財報電話會議。

Before we begin today, let me remind you that the company's remarks may include forward-looking statements within the meaning of federal securities laws. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond Harrow's control, including risks and uncertainties described from time to time in its SEC filings, such as the risks and uncertainties related to the company's ability to make commercially available its FDA-approved products and compounded formulations and technologies, and FDA approval of certain drug candidates in a timely manner or at all. For a list and description of these risks and uncertainties, please see the Risk Factors section of the company's most recent annual report on Form 10-K and the subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

在今天開始之前，讓我提醒您，該公司的言論可能包括聯邦證券法含義內的前瞻性陳述。前瞻性陳述受到許多風險和不確定性的影響，其中許多風險和不確定性超出了Harrow 的控制範圍，包括其向SEC 提交的文件中不時描述的風險和不確定性，例如與公司將其產品商業化的能力相關的風險和不確定性。 FDA 批准的產品和複合製劑和技術，以及 FDA 及時或根本批准某些候選藥物。有關這些風險和不確定性的清單和描述，請參閱公司向美國證券交易委員會提交的最新 10-K 表年度報告以及隨後的 10-Q 表季度報告的風險因素部分。

Harrow's results may differ materially from those projected. Harrow disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of today.

哈羅公學的結果可能與預測的結果有重大差異。哈羅公學不承擔任何更新或修改任何財務預測或前瞻性陳述的意圖或義務，無論是因為新資訊、未來事件或其他原因。本次電話會議包含時效性訊息，僅截至今日準確。

Additionally, Harrow will refer to non-GAAP financial metrics, specifically, adjusted EBITDA and/or adjusted earnings, as well as core results such as core gross margin, core net income and core diluted net income per share. A reconciliation of any non-GAAP measures with the most directly comparable GAAP measures is included in the company's earnings release and letter to stockholders, both of which are available on the website.

此外，哈羅還將參考非公認會計準則財務指標，特別是調整後的 EBITDA 和/或調整後的收益，以及核心業績，例如核心毛利率、核心淨利潤和核心稀釋每股淨利潤。任何非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節都包含在公司的收益報告和致股東的信中，兩者均可在網站上取得。

By now you should have received a copy of the earnings press release. If you have not received a copy, please go to the Investor Relations page of the company's website, www.harrow.com.

現在您應該已經收到了收益新聞稿的副本。如果您尚未收到副本，請造訪本公司網站 www.harrow.com 的投資者關係頁面。

Joining me on today's call are Harrow's Chief Executive Officer, Mark L. Baum; and Harrow's Chief Financial Officer, Andrew Boll.

參加今天電話會議的還有哈羅公學執行長馬克·L·鮑姆 (Mark L. Baum)；以及哈羅公學首席財務官安德魯·波爾。

With that, I'd like to turn the call over to Mark to go over some prepared remarks prior to the question-and-answer session. Mark?

說到這裡，我想把電話轉給馬克，讓他在問答環節之前回顧一些準備好的發言。標記？

Thanks, Jamie, and thanks to everyone for joining us on today's call.

謝謝傑米，也謝謝大家參加今天的電話會議。

Before I begin my prepared remarks, I want to take a minute to encourage you to review our third quarter 2023 earnings release, corporate presentation and letter to stockholders, all of which have been posted to the Investor Relations section of our website, www.harrow.com. Let's jump into it.

在我開始準備好的發言之前，我想花一點時間鼓勵您回顧一下我們的2023 年第三季度收益發布、公司演示和致股東的信，所有這些都已發佈在我們網站www.harrow 的投資者關係部分.com。讓我們開始吧。

As you may have seen, we produced record revenues and improved our adjusted gross margins meaningfully. However, this past quarter showed that our ability to create value far exceeds what we actually delivered. So let me be clear, we could have done better. As I have said before, though, we knew that our growth trajectory would not be a linear path upward. It never has been over the past 10 years. We knew that some programs would overperform and some would underperform. Today, we find ourselves a few months behind our internal development time lines for some of our programs.

正如您可能已經看到的，我們創造了創紀錄的收入，並顯著提高了調整後的毛利率。然而，上個季度表明我們創造價值的能力遠遠超過了我們實際交付的價值。所以讓我明確一點，我們本來可以做得更好。不過，正如我之前所說，我們知道我們的成長軌跡不會是直線上升的。過去10年從來沒有這樣過。我們知道有些程式會表現出色，有些則表現不佳。今天，我們發現有些專案的內部開發時間落後了幾個月。

As we continue, though, to correct course and move our business forward, the reality for Harrow's stockholders is simple. We are well funded. We don't need to access the public equity or debt markets. We're making money, we're paying our bills, we're servicing our creditors and we're on track to produce another record year of growth and profitability. That only isn't not bad, it's a place that most companies would like to be.

然而，隨著我們繼續糾正方向並推動我們的業務向前發展，哈羅股東面臨的現實很簡單。我們資金充足。我們不需要進入公共股權或債務市場。我們正在賺錢，我們正在支付帳單，我們正在為債權人提供服務，我們有望再創創紀錄的成長和獲利能力。這還不錯，這是大多數公司都想成為的地方。

I am proud of what we achieved this past quarter, including record revenues that represented a 50% year-over-year growth rate as well as a 600 basis point improvement in our core gross margins. That 50% revenue growth was fueled by our strategic decision to expand into branded pharmaceutical products, and it serves as a solid testimonial and validation of that decision. Without reservation, we could not have produced that level of year-over-year growth with compounded products alone.

我對我們上個季度所取得的成就感到自豪，包括創紀錄的收入，年成長率為 50%，以及我們的核心毛利率提高了 600 個基點。 50% 的收入成長得益於我們進軍品牌醫藥產品的策略決策，這是對該決策的有力證明和驗證。如果沒有保留，僅靠複合產品我們不可能實現如此水準的年成長。

I'm also pleased with our progress on our IHEEZO launch, which has been tracking ahead of our internal forecast since its May launch. A proof point is the graph we included in our third quarter letter to stockholders, which shows the significant ramp-up in customer unit demand for IHEEZO beginning in September and continuing to date. This ramp in customer demand resulted from boots on the ground learnings and strategic tweaks that yielded immediate positive results and a notable increase in IHEEZO units and revenues for September, surpassing our internal targets for 2023. We are now seeing sizable orders and reorders from high-volume users and many new accounts, both large and small, who are enjoying the many benefits of IHEEZO, and we remain bullish about what the balance of this year will bring as well as 2024 for IHEEZO.

我也對 IHEEZO 的推出進度感到滿意，自 5 月推出以來，該專案一直領先於我們的內部預測。我們在第三季致股東的信中包含的圖表就是一個證明點，該圖表顯示客戶單位對 IHEEZO 的需求從 9 月開始並持續至今顯著增加。客戶需求的成長源於實地學習和策略調整，這些學習和策略調整立即產生了積極成果，並且9 月份IHEEZO 單位和收入顯著增加，超過了我們2023 年的內部目標。我們現在看到來自高端的大量訂單和再訂單。大量用戶和許多大大小小的新帳戶正在享受 IHEEZO 的許多好處，我們仍然看好今年以及 2024 年將為 IHEEZO 帶來的好處。

On the other hand, there is no denying that to date, 2023 has presented new challenges. One example is lower-than-expected Q3 revenues from the Fab Five products and our compounded products. Even though we completed the transfer of 4 of the 5 Fab Five products that we acquired earlier this year, namely MAXIDEX, ILEVRO, NEVANAC and VIGAMOX, we were delayed in beginning marketing and sales detailing efforts. Those efforts though have begun, and we are seeing positive data from our awareness campaign, reminding prescribers of the availability of these products and the strong reimbursement support from third-party payers.

另一方面，不可否認的是，迄今為止，2023 年也帶來了新的挑戰。一個例子是五巨頭產品和我們的複合產品第三季的收入低於預期。儘管我們完成了今年稍早收購的 5 種 Fab Five 產品中的 4 種（即 MAXIDEX、ILEVRO、NEVANAC 和 VIGAMOX）的轉讓，但我們在開始行銷和銷售細節工作方面卻被推遲了。不過，這些努力已經開始，我們從我們的宣傳活動中看到了積極的數據，提醒處方者這些產品的可用性以及第三方付款人的強大報銷支持。

Once again, I touched on this in our letter to stockholders. We continue to believe in the high utility of these products and their importance to our branded portfolio for not only our customer base but also for Harrow's stockholders, because we believe they will provide a reliable stream of income for many years to come.

我在給股東的信中再次談到了這一點。我們仍然相信這些產品的高實用性及其對我們品牌組合的重要性，不僅對我們的客戶群而且對哈羅的股東也如此，因為我們相信它們將在未來許多年提供可靠的收入來源。

Another Q3 challenge was our compounding business, which underperformed as we invested in improving efficiencies and compliance related to manufacturing, quality systems, the makeup of our sales team and our analytical testing capabilities, as well as our customer care infrastructure. We have had to invest in efficiency and compliance in the past, and importantly, we have a 100% success record of making these investments and returning the business to historical growth levels, and I am 100% confident that this will happen again.

第三季的另一個挑戰是我們的複合業務，該業務表現不佳，因為我們投資於提高與製造、品質系統、銷售團隊的組成、分析測試能力以及客戶服務基礎設施相關的效率和合規性。過去我們必須在效率和合規性方面進行投資，重要的是，我們在進行這些投資並將業務恢復到歷史增長水平方面擁有100% 的成功記錄，我對這種情況再次發生有100% 的信心。

Investing in the required systems, processes and protocols to reliably serve a national market requires adherence to a standard and a level of complexity that we comply with, but which few competitors can achieve.

投資所需的系統、流程和協議以可靠地服務全國市場需要遵守我們遵守的標準和複雜程度，但很少有競爭對手能夠實現。

I'd also like to update you on the fifth product in the Fab Five, that's TRIESENCE, which I view as the diamond of this group. We had reported last quarter that demo batches had been completed and that we were awaiting results from the first of 3 process performance qualification batches, those are PPQ batches for short. While we were not naive about the fact that TRIESENCE is a tricky product to manufacture, which contributes to its out-of-stock status for most of the last 5 years, we were nevertheless disappointed that our first PPQ batch did not meet all specifications. But this is not the end of the story, and frankly, this was not entirely unexpected.

我還想向您介紹五強中的第五個產品的最新情況，即 TRIESENCE，我認為它是該組中的鑽石。我們上季度報告稱，演示批次已經完成，我們正在等待 3 個工藝性能鑑定批次中第一個批次（簡稱 PPQ 批次）的結果。雖然我們並不天真地認識到TRIESENCE 是一種製造起來很棘手的產品，這導致了它在過去5 年的大部分時間裡都處於缺貨狀態，但我們仍然對我們的第一批PPQ 不符合所有規格都感到失望。但這並不是故事的結局，坦白說，這並不完全出乎意料。

That said, we are working diligently with our contract manufacturer, and we are still committed to having TRIESENCE available next year. We are also making excellent progress on the transfer of the TRIESENCE NDA, or New Drug Applications, and we expect to have that completed soon, which will allow us to reasonably adjust the TRIESENCE pricing for the first time in more than 12 years, thus keeping it in stock and available for eye care professionals and their patients who are awaiting its return. Regarding TRIESENCE market availability, frankly, in our view, it is not a matter of if but when, and we think that win will be next year.

也就是說，我們正在與合約製造商努力合作，並且我們仍然致力於明年推出 TRIESENCE。我們在 TRIESENCE NDA（新藥申請）的轉讓方面也取得了良好進展，我們預計很快就會完成，這將使我們能夠在 12 年來首次合理調整 TRIESENCE 定價，從而保持該產品有庫存，可供眼科護理專業人員及其等待歸還的患者使用。關於 TRIESENCE 市場的可用性，坦白說，在我們看來，這不是是否的問題，而是何時的問題，我們認為勝利將是明年。

We continue to believe that Harrow's largest future annual market opportunity is VEVYE, the recently FDA-approved patented semi-fluorinated alkane or SFA that contains 0.1% cyclosporine. We're going to be launching it in a few weeks.

我們仍然相信，Harrow 未來最大的年度市場機會是 VEVYE，這是最近 FDA 批准的專利半氟化烷烴或 SFA，含有 0.1% 環孢菌素。我們將在幾週內推出它。

VEVYE is a water-free product. It's a topical medication, and once again, it's FDA approved to treat both the signs and symptoms of dry eye disease. We believe eye care professionals have long awaited a product like VEVYE, a dry eye disease product that can deliver effective, fast and sustained clinical results for patients without the negative adverse event profiles associated with many of the current pharmaceutical choices.

VEVYE 是無水產品。它是一種外用藥物，FDA 再次批准它用於治療乾眼症的徵兆和症狀。我們相信，眼保健專業人士長期以來一直期待像VEVYE 這樣的產品，這是一種乾眼症產品，可以為患者提供有效、快速和持續的臨床結果，而不會出現與許多當前藥物選擇相關的負面不良事件。

And preparing for the upcoming launch of VEVYE, it has become evident that most ophthalmologists and optometrists believes strongly in the clinical power of cyclosporin as a therapeutic agent. This should not be surprising, given the tens of millions of U.S. patients who have been prescribed cyclosporin during the past 20 years. However, VEVYE is different from the currently available cyclosporine-based products, not only because of the comfort and the many benefits of its patented delivery vehicle, only the second water-free product in the U.S. market, but also because it offers the highest available concentration of cyclosporin. This puts VEVYE in a class of its own, and I really can't wait to get VEVYE into the hands of the ophthalmic community and their patients, and that day is fast approaching.

為即將推出的 VEVYE 做準備，很明顯，大多數眼科醫生和驗光師都堅信環孢菌素作為治療劑的臨床功效。鑑於過去 20 年來有數千萬美國患者服用環孢菌素，這不足為奇。然而，VEVYE 與目前可用的基於環孢素的產品不同，不僅因為其專利輸送工具的舒適性和諸多優點，只是美國市場上第二個免水產品，還因為它提供了最高的可用率。環孢菌素的濃度。這使得 VEVYE 獨樹一幟，我真的迫不及待地想將 VEVYE 交到眼科界及其患者手中，而這一天很快就會到來。

Before opening the call for questions, I wanted to discuss our financial guidance and our expectations for the remainder of 2023 and 2024. Many of you know that we have never been big fans of giving public revenue or profitability guidance. But as our partners in this journey, we believe you need a reasonable level of visibility into what we expect to achieve next year, at least as a base case. Therefore, we're updating our guidance for the remainder of 2023 and giving you some direction for what we expect in 2024.

在開始提問之前，我想討論一下我們的財務指引以及我們對 2023 年剩餘時間和 2024 年的預期。你們很多人都知道，我們從來不熱衷於提供公共收入或盈利能力指引。但作為我們這趟旅程中的合作夥伴，我們相信您需要對我們明年預期實現的目標有一定程度的了解，至少作為基本案例。因此，我們正在更新 2023 年剩餘時間的指導，並為您提供 2024 年預期的一些指導。

Because the progress of our business is about 60 days behind, we're adjusting our 2023 revenue guidance to $129 million to $136 million. If we continue to be successful in the execution of a few open 2023 objectives, including IHEEZO sales growing outside the bounds we had anticipated at this stage of the launch as well as the timing of future milestones unfolding in our favor, we could land toward the higher end of the range. Regardless, our business remains solidly in a growth mode for the balance of our 5-year planning cycle, which includes not only the remainder of this year but 2024, and it will continue through 2027.

由於我們的業務進展大約落後 60 天，因此我們將 2023 年收入指引調整為 1.29 億美元至 1.36 億美元。如果我們繼續成功執行一些開放的 2023 年目標，包括 IHEEZO 銷售成長超出我們在發布現階段的預期，以及未來里程碑的時間表對我們有利，我們可以實現範圍的高端。無論如何，在我們 5 年規劃週期的剩餘時間內，我們的業務仍保持穩健的成長模式，其中不僅包括今年剩餘時間，還包括 2024 年，並將持續到 2027 年。

We are also adjusting our previously-issued 2023 adjusted EBITDA guidance to a range of $36 million to $41 million, primarily because of lower revenue estimates coupled with increased costs associated with recent acquisitions, needed investments in the preparation for the launch of VEVYE and onetime integration costs associated with the Santen acquisition.

我們也將先前發布的 2023 年調整後 EBITDA 指引調整為 3,600 萬美元至 4,100 萬美元，主要是因為收入預期較低，加上最近收購相關的成本增加、準備推出 VEVYE 所需的投資以及一次性整合與參天收購相關的成本。

As for 2024, excluding any contribution from TRIESENCE, we expect our 2024 revenues to be north of $180 million. The magnitude of revenue growth beyond the $180 million will depend on many factors, including when we restore TRIESENCE inventory, the acceleration of IHEEZO sales and how the VEVYE launch goes. Beginning in the first quarter of 2024, we expect moderate revenue growth from our recently-acquired FDA-approved products, including the Fab Five and the recovery of our compounding business to historical growth levels.

至於 2024 年，排除 TRIESENCE 的任何貢獻，我們預計 2024 年的收入將超過 1.8 億美元。超過 1.8 億美元的收入成長幅度將取決於許多因素，包括我們何時恢復 TRIESENCE 庫存、IHEEZO 銷售的加速以及 VEVYE 的發布進展如何。從 2024 年第一季開始，我們預計我們最近獲得的 FDA 批准的產品（包括五巨頭）的收入將出現適度增長，並且我們的複合業務將恢復到歷史增長水平。

From a cost structure perspective, we expect our operating cost to increase incrementally as we scale our business to grow revenues and invest in the VEVYE launch. We expect to continue investing in our commercial infrastructure while maintaining our leverage ratio. That's debt over adjusted EBITDA, and that should be below 5x.

從成本結構的角度來看，隨著我們擴大業務以增加收入並投資 VEVYE 的推出，我們預計營運成本將逐步增加。我們預計將繼續投資於我們的商業基礎設施，同時保持我們的槓桿率。這是債務超過調整後 EBITDA 的比率，應該低於 5 倍。

We expect to close 2024 with a strong balance sheet, with cash increasing significantly during the period. We remain confident in meeting our obligations to Harrow's creditors, and we do not expect to dilute our stockholders unless we find a transformative transaction. But candidly, given where our stock price is, we are less inclined to use equity as a currency.

我們預計到 2024 年末，資產負債表將保持強勁，現金在此期間大幅增加。我們仍然有信心履行對哈羅債權人的義務，除非我們找到變革性的交易，否則我們預計不會稀釋我們的股東權益。但坦白說，考慮到我們的股價，我們不太願意使用股權作為貨幣。

We are happy to answer your questions. I will pause to have our operator poll for questions. Operator?

我們很樂意回答您的問題。我將暫停讓我們的接線員詢問問題。操作員？

(Operator Instructions) The first question today comes from Brooks O'Neil with Lake Street Capital Markets.

（操作員說明）今天的第一個問題來自 Lake Street Capital Markets 的 Brooks O'Neil。

Mark, and thanks for all your comments. I have to confess, I have not completed a detailed reading of the stockholder letter so I might ask you about some things that are highlighted in the letter, and we'll just have to deal with that.

馬克，感謝您的所有評論。我必須承認，我還沒有詳細閱讀股東信，所以我可能會問你信中強調的一些事情，我們只能處理這個問題。

But I'd like to start by asking you about the IHEEZO launch. One of the things that seems important is that you have made some adjustments to your plan that have yielded some noticeable improvement in IHEEZO response in the marketplace, and I'm hoping maybe you could at least give us some qualitative color about some of the things that you've changed and what you saw as a result?

但我想先詢問您有關 IHEEZO 發布的情況。其中一件看起來很重要的事情是，您對您的計劃進行了一些調整，這些調整使IHEEZO 在市場上的反應產生了一些明顯的改善，我希望您至少可以給我們一些有關某些事情的定性色彩你已經改變了，結果你看到了什麼？

Thanks, Brooks. We did make some strategic amendments to the strategy, the launch strategy in late August, and things kind of were implemented by September. I can't go into the specific tactical details of our strategy really to our stockholders, but also to potential competitors. I think the important thing is, is that we did, in fact, see this major ramp when we made these changes, and that's important. I know I spoke to a lot of stockholders after the last earnings call, and they wanted to see some numbers that were accurate, and so we provided them. And all I can tell you is that we not only provided numbers that, I think, validate the success of the changes that we made, but importantly, we provided numbers that get us into the fourth quarter.

謝謝，布魯克斯。我們確實對戰略做了一些戰略性的修改，8月下旬發布了戰略，到9月就已經實施了。我無法真正向我們的股東以及潛在的競爭對手詳細介紹我們策略的具體戰術細節。我認為重要的是，事實上，當我們做出這些改變時，我們確實看到了這個主要的成長，這很重要。我知道在上次財報電話會議後我與許多股東進行了交談，他們希望看到一些準確的數據，因此我們提供了這些數據。我能告訴你的是，我們不僅提供了我認為驗證我們所做的變革是否成功的數字，而且重要的是，我們提供了讓我們進入第四季度的數字。

So we've seen a continuation of that ramp, and we don't expect that to yield. We think that will continue through the balance of this quarter, and we do expect meaningful growth in IHEEZO unit demand in 2024 and beyond.

因此，我們看到了這種成長的延續，但我們預期這種成長不會產生效果。我們認為這種情況將持續到本季剩餘時間，我們確實預計 2024 年及以後 IHEEZO 單位需求將出現有意義的成長。

Right. Let me switch gears and just ask you a little bit about the weakness in the compounding business and a little bit about the Fab Five. But I know historically, I have been following your company for 4, 5 years now, we've seen some variability in the compounding business, and it's always come back. Is there anything that you would describe as materially different this time or anything that gives you pause about believing that the compounding business remains durable and that the growth opportunity is still there?

正確的。讓我換個話題，問一下你們複合業務的弱點以及五巨頭的情況。但我知道，從歷史上看，我已經關注你們公司四、五年了，我們已經看到了複合業務的一些變化，而且它總是會回來。這次您是否認為有什麼重大不同，或者有什麼讓您猶豫不決地相信複合業務仍然持久並且增長機會仍然存在？

Sure. The compounding business discussion that I referred to in this stockholder letter and the issues that we were addressing are not dissimilar from other issues that we've addressed of a similar kind in the past. So we were able to overcome those challenges, we made those investments, and as an organization, we improved. Our compounding business is strategically important. It allows us to meet our mission to make products that are accessible and affordable. These are cash pay products, and by far, we're the national leader. There's not even a question. It also gives us credibility. We walk into our customers' offices and they give us hugs instead of weird looks because we're making their lives more difficult.

當然。我在這封股東信中提到的複合業務討論以及我們正在解決的問題與我們過去解決過的類似類型的其他問題沒有什麼不同。因此，我們能夠克服這些挑戰，我們進行了這些投資，並且作為一個組織，我們已經取得了進展。我們的複合業務具有重要的策略意義。它使我們能夠實現我們的使命，即生產價格實惠的產品。這些都是現金支付產品，到目前為止，我們是全國領先的。甚至沒有一個問題。這也給了我們可信度。我們走進客戶的辦公室，他們給了我們擁抱，而不是奇怪的眼神，因為我們讓他們的生活變得更加困難。

It is not an easy business, though. Regulations change, and they're generally getting stricter, and as a result of that, we have to be prepared to absorb those changes, and we do. We have the people, the processes and the resources to handle these things. It is, as I referred to in the stockholder letter, it's sort of a super power that we have that many smaller players do not have. But the reality is, is that as we move into branded products, we are going to strategically cannibalize compounding units, and that creates a challenge for the overall growth picture of that business. We want to take cash pay, non-FDA-approved units that we compound that we have to manufacture, and over time, we would like to exchange those units for our FDA-approved products that we don't have to manufacture that are reimbursable, and so that shift is taking place.

但這並不是一件容易的事。法規發生變化，而且通常變得更加嚴格，因此，我們必須準備好接受這些變化，而我們確實做到了。我們擁有處理這些事情的人員、流程和資源。正如我在股東信中提到的，這是我們擁有的超級力量，而許多較小的參與者沒有。但現實是，當我們進入品牌產品時，我們將策略性地蠶食複合部門，這對該業務的整體成長前景構成了挑戰。我們希望接受現金支付，我們必須生產未經 FDA 批准的產品，隨著時間的推移，我們希望將這些產品換成我們不必生產的 FDA 批准的產品，這些產品是可報銷的，因此這種轉變正在發生。

That said, we do have confidence that beginning in 2024, in the first quarter, we will resume our growth in the compounding business.

也就是說，我們確實有信心從 2024 年第一季開始，我們將恢復複合業務的成長。

That's good. Let me ask you 2 questions about the debt, and they're a little bit different. But first is, I guess, there's some concerns in the marketplace about B. Riley as the debt issuer. I don't know what the right term is, but any comments on your observations related to your relationship with B. Riley Financial as a lender to your business? And then with the shortfall here in the quarter and outlook for the year, can you just comment a little bit about your outlook for accounts receivable cash flow and cash as we get through the fourth quarter?

那挺好的。讓我問你兩個關於債務的問題，它們有點不同。但我認為，首先，市場對 B. Riley 作為債務發行人存在一些擔憂。我不知道正確的術語是什麼，但是您對您與 B. Riley Financial 作為您企業的貸款人的關係的觀察有什麼評論嗎？然後，考慮到本季的缺口和今年的展望，您能否評論一下第四季度的應收帳款現金流和現金前景？

So I'll take the first part of the question, and Andrew, if you'll take the second part, that would be great. But B. Riley, to be clear, is not a lender to the company. They've banked several transactions for us successfully, I might add. They've produced phenomenal results for us. And it's because of that, that I can say with confidence, we have plenty of cash. We have over $68 million in the bank, and as I said in the stockholder letter, we expect that cash pile to grow during 2024. So we're grateful for the work that B. Riley did for us, and they are not a direct lender to us at all. They simply bank the transaction.

所以我將回答問題的第一部分，安德魯，如果你回答第二部分，那就太好了。但要明確的是，B. Riley 並不是該公司的貸款人。我可以補充一下，他們已經成功地為我們存入了幾筆交易。他們為我們帶來了驚人的成果。正因為如此，我可以自信地說，我們有充足的現金。我們的銀行存款超過 6800 萬美元，正如我在股東信中所說，我們預計現金儲備將在 2024 年增長。因此，我們感謝 B. Riley 為我們所做的工作，他們不是直接的完全是我們的貸款人。他們只是將交易存入銀行。

Andrew, do you want to comment on the second part of the question?

安德魯，你想對問題的第二部分發表評論嗎？

Sure. Brooks. On the cash flow side, and more so just talking about AR in particular, because we introduced these branded products, we have a different type of AR and receivables cycle than we have seen on the compounding side. And we've also -- on the IHEEZO, in particular, for our customers buying IHEEZO, we've been able to extend them additional terms, and that just helps them with their revenue cycle and cash management cycle. For us, what that means is our collections on the branded side are a little bit lengthened out compared to other companies that we've historically seen.

當然。布魯克斯。在現金流方面，尤其是在 AR 方面，因為我們推出了這些品牌產品，所以我們擁有與複利方面不同類型的 AR 和應收帳款週期。我們也 - 特別是在 IHEEZO 上，對於購買 IHEEZO 的客戶，我們已經能夠延長他們的附加條款，這只會幫助他們改善收入週期和現金管理週期。對我們來說，這意味著我們的品牌系列比我們歷史上見過的其他公司要長一些。

But just kind of looking out at Q4 and the Asian report, in particular, I'm seeing $16 million -- over $16 million in AR on the branded side that we should be able to collect this quarter, and then that will be in addition to the AR and cash receipts we're receiving on the compounding business. And so I think we've gotten through this sort of initial term around the launch with IHEEZO and these branded products, and we should start seeing sort of the AR with the branded products turn a little bit more, more cash receipts coming in and less of a larger spread on AR compared to revenue going forward.

但只要看看第四季度和亞洲報告，我就看到 1600 萬美元——超過 1600 萬美元的 AR 品牌方面的收入，我們本季度應該能夠收集到，然後這將是額外的到我們在複利業務中收到的AR 和現金收入。因此，我認為我們已經度過了圍繞 IHEEZO 和這些品牌產品推出的初始階段，我們應該開始看到品牌產品的 AR 變得更多，更多的現金收入進來，更少與未來的收入相比， AR 的價差更大。

Great. That's very helpful. Let me just ask you 2 more. And I apologize for asking so many, but it's such an interesting time for you and for investors.

偉大的。這非常有幫助。讓我再問你兩個問題。我很抱歉問了這麼多，但這對你和投資者來說都是一個有趣的時刻。

My first question is, can you give us any estimate of the sort of the peak sales potential of VEVYE? I know it's a unique drug, I know it's got certain clinical characteristics better than the competition. So what do you see as the opportunity with VEVYE over time?

我的第一個問題是，您能給我們估計 VEVYE 的峰值銷售潛力嗎？我知道這是一種獨特的藥物，我知道它比競爭對手有更好的某些臨床特徵。那麼隨著時間的推移，您認為 VEVYE 的機會是什麼？

Sure. Look, we've said in the past that we believe that VEVYE should generate north of $100 million annually in revenues, and it should and could be much higher. It's not going to happen overnight. It's going to take a few years to play out, though.

當然。看，我們過去曾說過，我們相信 VEVYE 每年的收入應該超過 1 億美元，而且應該而且可能會更高。這不會在一夜之間發生。不過，這還需要幾年時間才能發揮。

The fact is that the cyclosporine category, if you look at the prescription counts for cyclosporine-based products, we have the opportunity, I believe, to dominate the cyclosporine category. But more than that, we have the opportunity to expand the overall market. When Restasis was the only product in the market and Xiidra came into the market, you had a new and, in some people's view, better product relative to Restasis. The overall market actually expanded.

事實是，在環孢素類別中，如果你看看基於環孢素的產品的處方數量，我相信我們有機會主導環孢素類別。但更重要的是，我們有機會擴大整體市場。當 Restasis 是市場上唯一的產品並且 Xiidra 進入市場時，您就擁有了一種新的產品，在某些人看來，相對於 Restasis 更好的產品。整體市場實際上擴大了。

And we believe that a product like VEVYE, the features that it offers, the fact that it works so fast and it provides sustained relief of both signs and symptoms now going out 56 weeks. I mean look at the data that I provided actually in our stockholder letter, it's extraordinary. So we think that VEVYE is going to expand the market, and as a result, this product should definitely be a 9-figure revenue product annually. And I believe that it could be much higher than that as we get further into the launch.

我們相信像 VEVYE 這樣的產品，它提供的功能，它起效如此之快，並且它可以持續緩解體徵和症狀，現在可以使用 56 週。我的意思是看看我在股東信中實際提供的數據，這非常出色。所以我們認為VEVYE要擴大市場，這樣一來，這個產品絕對應該是年收入9位數的產品。我相信，隨著我們進一步推出，它可能會比這個高得多。

Great. I'll ask you more about that offline. But let me just ask one last one, and I appreciate your patience with me.

偉大的。我會在線下向您詢問更多相關資訊。但讓我問最後一個問題，感謝您對我的耐心。

I have some sense that ILEVRO and NEVANAC had some improving sales in the past month or 2. Can you comment on what you're seeing from those 2 products specifically?

我感覺到 ILEVRO 和 NEVANAC 在過去一兩個月的銷售量有所改善。您能具體評論一下您從這兩種產品中看到的情況嗎？

Thank you, Brooks. Right. So we said in the stockholder letter that like a mission-critical victory for our company was the IHEEZO launch. We needed to provide our stockholders with evidence that we could execute on the IHEEZO launch. I hope, if you look at the line graph provided in the letter to stockholders, that you will agree that we have in fact changed and markedly improved the outlook for IHEEZO sales. And so that was a critical victory that we had to achieve, and I think that we are on our way and things are going in the right direction. As a result, we did decide to not deploy commercial assets right away for both ILEVRO and NEVANAC.

謝謝你，布魯克斯。正確的。因此，我們在股東信中表示，IHEEZO 的推出就像是我們公司的一項關鍵任務勝利。我們需要向股東提供證據，證明我們可以執行 IHEEZO 的發布。我希望，如果您查看致股東信中提供的折線圖，您會同意我們實際上已經改變並顯著改善了 IHEEZO 的銷售前景。因此，這是我們必須取得的關鍵勝利，我認為我們正在前進，事情正在朝著正確的方向發展。因此，我們決定不立即為 ILEVRO 和 NEWANAC 部署商業資產。

And so the question is, did we in fact, deploy those resources? And we did. About 6 weeks ago, 7 weeks ago, we began to do exactly what we said we would do. We provided information to prescribers, reminding them not only of the existence of the product but the incredible insurance coverage for these products. And in the letter to stockholders, once again, I actually provided one of our marketing pieces that we use on the market access side of things.

所以問題是，我們實際上部署了這些資源嗎？我們做到了。大約六週前、七週前，我們開始完全照著我們所說的去做。我們向處方醫生提供信息，不僅提醒他們該產品的存在，而且提醒他們這些產品的保險範圍令人難以置信。在給股東的信中，我實際上再次提供了我們在市場准入方面使用的行銷材料之一。

And the good news is that nearly -- immediately, once again, immediately as we began to execute on our strategy, we saw improvement in the prescription volumes as an overall share of the topical NSAID market or non-steroidal anti-inflammatory market in the U.S. And so if you look at the trailing 4-week data, I think we're up on both products in the mid- to high single digits over the last 4 weeks.

好消息是，當我們開始執行我們的策略時，我們幾乎立即、再一次、立即看到處方量在局部 NSAID 市場或非類固醇抗炎藥市場的整體份額方面有所改善。美國因此，如果您查看過去4 週的數據，我認為過去4 週我們這兩種產品的漲幅都處於中高個位數。

And look, it's early, but this is very positive. And so we may be a little bit late, but what we said that we were going to do seems to be working, and I do believe it will continue as we continue to execute the strategy.

看，現在還早，但這是非常積極的。因此，我們可能有點晚了，但我們所說的我們要做的事情似乎正在發揮作用，而且我相信，隨著我們繼續執行該策略，這種情況將會繼續下去。

The next question comes from Jeffrey Cohen with Ladenburg Thalmann.

下一個問題來自傑弗裡·科恩和拉登堡·塔爾曼。

So a few questions on our end. I guess, firstly, talk a little bit about -- without getting too much into the weeds pricing strategy on VEVYE. I did see in your shareholder letter calling out some of the holes that folks meant to identify in the value.

我們有幾個問題。我想，首先，談談——但不要過多討論 VEVYE 上的雜草定價策略。我確實在你們的股東信中看到了人們想要找出的價值中的一些漏洞。

Sure. We have not announced the pricing for VEVYE. What I can tell you is that it will be sort of competitively priced with the other water-free product in the market, which is MIEBO, and so we'll have more information about the WAC pricing for VEVYE here in the coming weeks as we approach the launch.

當然。我們尚未公佈 VEVYE 的定價。我可以告訴您的是，與市場上其他免水產品（MIEBO）相比，它的價格將具有競爭力，因此我們將在未來幾週內獲得有關 VEVYE 的 WAC 定價的更多信息，因為我們接近發射。

In terms of the product itself, it is an extraordinary product. Cyclosporin is known to work. We've got the highest concentration of cyclosporin. If you put our product in your eye, if you prescribed it, and you have put Restasis or other cyclosporin-based products in your eye, you will see that they -- our product feels completely different. VEVYE is very different from these other products, and the data is extraordinary. So we have 56-week data that I provided in our letter to stockholders. I would encourage anyone who understands anything about the dry eye disease market to look at that data. It is extraordinary.

就產品本身而言，它是一款非凡的產品。已知環孢菌素有效。我們有最高濃度的環孢菌素。如果您將我們的產品放入您的眼睛中，如果您開了處方，並且您已將Restasis 或其他基於環孢菌素的產品放入您的眼睛中，您會發現它們- 我們的產品感覺完全不同。 VEVYE 與其他這些產品有很大不同，數據也非同尋常。因此，我們有我在致股東的信中提供的 56 週數據。我鼓勵任何了解乾眼症市場的人查看這些數據。這是非凡的。

So we've got great clinical data, we're going to have a bang-up market access strategy and commercialization strategy that's going to begin in a couple of weeks, and we're going to generate our first revenues for VEVYE in the fourth quarter, so in a few weeks.

因此，我們已經獲得了很好的臨床數據，我們將在幾週內開始製定一項快速的市場准入策略和商業化策略，我們將在第四季度為 VEVYE 帶來第一筆收入季度，所以幾週後。

Okay. Got it. And then maybe, could you target into lessons learned on launches more recently? And perhaps some lessons learned on IHEEZO that may carry over to VEVYE, and then kind of carry that forward as well to the Fab Five? Sounded like a couple of months of marketing and delayed efforts there. Was that potential as a result of spend parameters from the past quarter? Or was it somewhat accidental in which how it came out?

好的。知道了。然後，也許您可以針對最近發布的產品吸取經驗教訓嗎？也許在 IHEEZO 上學到的一些經驗教訓可能會延續到 VEVYE 上，然後也會延續到五巨頭身上？聽起來像是幾個月的營銷和延遲的努力。這種潛力是上個季度支出參數的結果嗎？或者說它的產生有些偶然？

Yes. So first of all, IHEEZO is a buy-and-bill product. So the strategy, the market access strategy or the commercialization strategy with IHEEZO is very different than VEVYE, and frankly, they're both different from our approach to the Fab Five and the Santen products. So the strategy with the Fab Five and Santen was to incrementally grow those revenues and to produce streams of cash that would grow over many years. And so as I said to Brooks, it appears that our strategy of just simply doing a little bit of marketing and some sales detailing around those products is working for the Fab Five, and we think the same will be true for the Santen products.

是的。首先，IHEEZO 是一款購買後計費的產品。因此，IHEEZO 的策略、市場准入策略或商業化策略與 VEVYE 非常不同，坦白說，它們都與我們對 Fab Five 和 Santen 產品的方法不同。因此，五巨頭和參天製藥的策略是逐步增加這些收入，並產生持續多年成長的現金流。正如我對布魯克斯所說，我們的策略似乎只是圍繞這些產品進行一點行銷和一些銷售細節，這對五巨頭來說是有效的，我們認為參天產品也是如此。

But in terms of creating significant stockholder value over the long term, it's IHEEZO, it is VEVYE. And the 1 product that is similar to IHEEZO is TRIESENCE. So they're both buy-and-bill products, they're both J-coded products, and so the strategy there, although they are buy-and-bill products. IHEEZO is a new product and TRIESENCE is not, and so we probably will not need very -- many resources to get the word out about TRIESENCE. But they're all sort of different.

但就長期創造顯著股東價值而言，IHEEZO 是，VEVYE 是。與IHEEZO類似的1個產品是TRIESENCE。因此，它們都是購買後計費產品，它們都是 J 編碼產品，因此儘管它們是購買後計費產品，但那裡的策略也是如此。 IHEEZO 是一個新產品，而 TRIESENCE 不是，因此我們可能不需要太多資源來宣傳 TRIESENCE。但它們都有所不同。

Andrew, do you want to add to that?

安德魯，你想補充嗎？

No, Mark, I think you nailed it.

不，馬克，我想你已經成功了。

Got it. Okay. And then a couple more quick ones. You talked about 2024 for launching TRIESENCE after some of the (inaudible) work is done. Any narrowing of that to thinking about first half versus second half?

知道了。好的。然後還有幾個更快的。您談到了 2024 年在完成一些（聽不清楚）工作後啟動 TRIESENCE。有沒有縮小範圍考慮上半場和下半場？

What I can tell you is that our purchase price for TRIESENCE is $45 million, and it slides down over time as we do not have inventory. And the purchase price is only triggered, the payment is only triggered once we have inventory.

我可以告訴你的是，我們對 TRIESENCE 的購買價格為 4500 萬美元，隨著時間的推移，由於我們沒有庫存，價格會下降。並且只有當我們有庫存時才會觸發採購價格，付款才會觸發。

January 20, our purchase price goes from $45 million to $37 million. I can tell you that our partner is working diligently to ensure that the purchase price is $45 million and not $37 million, so they are actively working to create inventory for us, which is a very good thing. We would frankly love to pay $45 million because once we do, we'll have sufficient inventory, assuming we have the NDA to recover substantially all of our purchase price and perhaps even more, depending on how much inventory we have.

1 月 20 日，我們的收購價格從 4,500 萬美元升至 3,700 萬美元。我可以告訴你，我們的合作夥伴正在努力確保採購價格為4500萬美元，而不是3700萬美元，因此他們正在積極努力為我們創造庫存，這是一件非常好的事情。坦白說，我們願意支付 4500 萬美元，因為一旦我們這樣做，我們將擁有足夠的庫存，假設我們有 NDA 來收回幾乎所有的購買價格，甚至可能更多，具體取決於我們有多少庫存。

So we are really excited about having TRIESENCE sooner rather than later. We don't mind paying more for it because we are highly confident in the market research that we've done around that product. And the -- as I said, our expectation though is right now that we'll have it in 2024, and our partner would like for us to have it before January 20 of 2024. But what we've said publicly is that we expect to have inventory sometime during the year. I don't want to be more specific right now, but we're working diligently to make this happen.

因此，我們對於儘早擁有 TRIESENCE 感到非常興奮。我們不介意為此支付更多費用，因為我們對圍繞該產品所做的市場研究非常有信心。正如我所說，我們現在的期望是在 2024 年實現，我們的合作夥伴希望我們在 2024 年 1 月 20 日之前實現。但我們公開表示，我們期望在一年中的某個時候有庫存。我現在不想說得更具體，但我們正在努力實現這一目標。

Okay. Good. And one more brief one. You had mentioned some back-end systems. Are you currently using 1 ERP system? Or is that being consolidated as part of the back end? And what's going on as far as leveraging up the size of the business on the back end with regard to mostly billing?

好的。好的。還有一個簡短的。您提到了一些後端系統。您目前使用 1 個 ERP 系統嗎？或者它是否被整合為後端的一部分？就主要計費而言，在後端擴大業務規模方面發生了什麼？

On the compounding side or on the branded side, or both?

在複合方面或在品牌方面，或兩者兼具？

Across the board.

全面。

Yes. I don't know that we can discuss specific software platforms or ERPs. Andrew, do you want to tackle that one?

是的。我不知道我們可以討論具體的軟體平台或ERP。安德魯，你想解決這個問題嗎？

Jeff, we're on a single ERP. We are going through some updates from the CRM perspective and just implementing that additional pieces to the ERP, like within quality and supply chain, for example, and bringing that in on the compounding side and on the branded side. But for the most part, that infrastructure is in place, and we're just kind of scaling off of it.

Jeff，我們使用的是單一 ERP。我們正在從 CRM 的角度進行一些更新，並將這些附加部分實施到 ERP 中，例如在品質和供應鏈中，並將其引入複合方面和品牌方面。但在大多數情況下，基礎設施已經就位，我們只是在縮小規模。

I got it. Okay. So your comment was basically just scaling up as the size of the business (inaudible)?

我得到了它。好的。所以您的評論基本上只是隨著業務規模的擴大而擴大（聽不清楚）？

That's right.

這是正確的。

The next question comes from Mayank Mamtani with B. Riley.

下一個問題來自 Mayank Mamtani 和 B. Riley。

We'll try to keep it short. So 2 quick ones on IHEEZO. When you say your internal revenue targets for 3Q or 2023, could you just clarify that? And help me understand the components of your 4Q guide. It looks like the new range is $35 million to [$45 million,] and for 2024, it's about $180 million. What's tied to IHEEZO versus maybe some accretion that you might be expecting from the Santen transaction? If you could break down some of those elements? And then I have a quick follow-up on IHEEZO.

我們會盡量簡短。 IHEEZO 上有 2 個快速的。當您提到第三季或 2023 年的內部收入目標時，您能否澄清一下？並幫助我了解你們的 4Q 指南的組成部分。看起來新的範圍是 3500 萬美元到 [4500 萬美元]，到 2024 年，這個數字約為 1.8 億美元。與 IHEEZO 相關的是什麼以及您可能期望從參天交易中獲得的一些增值？如果你能分解其中一些元素嗎？然後我會在 IHEEZO 上進行快速跟進。

Andrew, do you want to cover Q3 confidence, 2023 and Q4 and also the projections in 2024? I think that was it.

Andrew，您想介紹一下第三季的信心、2023 年和第四季以及 2024 年的預測嗎？我想就是這樣。

Yes, I can try. Mayank, thanks for the question. Just in regards to the confidence, we put out the new range. It is fairly large. We realize that. And as Mark kind of mentioned in the letter, there's a couple of things that we're working on that if they go away, we're going up on the higher end of the range. They get pushed into Q1, we're going to have to capture it in 2024. But we feel pretty confident about the numbers. Anything can happen obviously. We're halfway through the quarter, but we feel good about the first half and feel good about the potential for the second half.

是的，我可以嘗試。瑪雅克，謝謝你的提問。只是為了信心，我們推出了新的系列。它相當大。我們意識到這一點。正如馬克在信中提到的那樣，我們正在研究一些事情，如果它們消失，我們就會走上更高端的道路。它們被推入第一季度，我們必須在 2024 年抓住它。但我們對這些數字非常有信心。顯然任何事情都可能發生。本季已經過半，但我們對上半場感覺良好，對下半場的潛力也感覺良好。

In regards to the sort of breakdown between -- or contribution between products in Santen and IHEEZO, we're expecting that Santen portfolio to continue to perform. I can kind of talk -- Mark talked about the strategic rationale for that transaction. It's not going to be a big, big driver of revenue in the future. It's going to be -- it's going to have an incremental impact on the financials this year and next year, but we think it's going to be positive and it's going to be accretive.

關於參天和 IHEEZO 產品之間的細分或貢獻，我們預計參天產品組合將繼續表現良好。我可以談談——馬克談到了該交易的戰略理由。它不會成為未來收入的一個巨大的推動因素。這將對今年和明年的財務狀況產生增量影響，但我們認為這將是正面的，而且會是增值的。

IHEEZO, as we kind of -- Mark talked about a lot on the call today and in the shareholder letter, that ramp we're seeing where we saw at the end of last quarter, we should see continue in Q4 and we expect it to continue to increase in 2024. And so contribution from IHEEZO as a major product should just continue next year as we grow revenues.

IHEEZO，正如我們所言，馬克在今天的電話會議和股東信中談到了很多，我們在上季度末看到了這種增長，我們應該會在第四季度看到這種增長，我們預計它會到2024 年，這一數字將繼續增加。因此，隨著我們收入的增長，明年IHEEZO 作為主要產品的貢獻應該會繼續下去。

Mark, do you want to comment a little bit more?

馬克，你想多評論一下嗎？

Yes. Look, the Santen basket we paid $8 million upfront is very low risk. It was really connected to rounding out our branded portfolio, allowing us to play a larger role in the prescriber's office, and it's going to produce a great ROI. We paid $8 million for it, but we also paid $8 million for VEVYE upfront. VEVYE, in terms of affecting the overall value of the company, is going to far exceed what we paid for Santen and what the -- what we expect from the Santen assets. So that should give you some scale.

是的。看，我們預付 800 萬美元的參天籃子風險非常低。它確實與完善我們的品牌產品組合有關，使我們能夠在處方醫生辦公室中發揮更大的作用，並且它將產生巨大的投資回報。我們為此支付了 800 萬美元，但我們也為 VEVYE 預付了 800 萬美元。就影響公司整體價值而言，VEVYE 將遠遠超出我們為參天製藥支付的費用以及我們對參天製藥資產的期望。所以這應該會給你一些規模。

We're going to invest significantly in VEVYE because the market opportunity is much, much larger for us. And I think that's a great place to invest resources.

我們將對 VEVYE 進行大量投資，因為市場機會對我們來說要大得多。我認為這是一個投資資源的好地方。

Maybe I can throw my 2 questions together. So number one on IHEEZO quickly. On the stockholder letter, you say somewhere that you're planning to meet with CMS to clarify a billing policy that has historically not allowed for a separate billing in a physician's office. So could you just clarify if that's related to cataract surgery offices, specifically? And also, anything specific to your recent effort with [Retina] offices that is where we are sharing? What sort of sales metrics you're tracking there that you are seeing now translate into unit demand and revenues?

也許我可以把我的兩個問題放在一起。因此很快就在 IHEEZO 上排名第一。在股東信中，您在某處提到您計劃與 CMS 會面，以澄清計費政策，該政策歷來不允許在醫生辦公室進行單獨計費。那麼您能否具體澄清一下這是否與白內障手術辦公室有關？另外，我們正在分享您最近在 [Retina] 辦公室所做的具體工作？您正在追蹤的哪種銷售指標現在轉化為單位需求和收入？

And then lastly, what you just said about VEVYE, the excitement there. Anything -- I know it's early with MIEBO launch with Bausch & Lomb, but they seem to be allocating a lot of resources there. So could you just share -- you have an opportunity to learn from what they are doing going second, and I believe you also showed some 12-month data there in your stockholder letter. Could you just put in context the clinical relevance of that chart that you have put in your stockholder letter for VEVYE?

最後，您剛才談到了 VEVYE，那裡令人興奮。任何事情——我知道博士倫推出 MIEBO 還為時過早，但他們似乎在那裡分配了大量資源。那麼您能否分享一下——您有機會從他們的第二步做法中學習，我相信您在股東信中也展示了一些 12 個月的數據。您能否將您在 VEVYE 股東信中放入的圖表的臨床相關性放在上下文中？

Okay. That's -- I think that's a 3 or a 4 parter, so I'm going to try and tackle it. Andrew, let me know where I fall short.

好的。那是——我認為這是一個 3 或 4 合作夥伴，所以我將嘗試解決這個問題。安德魯，讓我知道我的不足之處。

As far as CMS goes, let me be clear, our pass-through is 100% intact in the ASC and the hospital and outpatient department. We are, as I said in the stockholder letter, we are actively working to ensure that we can extend that pass through. That decision will not be up to us. It will be up to CMS. But there are other products in this category, in the ophthalmic pharma category, that are buy-and-bill that have been able to extend their pass-through.

就 CMS 而言，我要澄清的是，我們在 ASC 以及醫院和門診部的傳遞是 100% 完好無損的。正如我在股東信中所說，我們正在積極努力確保我們能夠延長這筆通行證。這個決定不取決於我們。這將取決於 CMS。但該類別中的眼科藥品類別中還有其他產品，這些產品是購買後計費的，能夠擴大其傳遞範圍。

The meeting that we have with CMS is coming up fairly soon, we expect. I can't really comment on the specifics of that meeting, but we do seek to just clarify the use of J2403 in the physician's office. That said, we are selling into that market and reimbursements are happening. And this, I think, will, depending on the outcome of the meeting, I think have a significant upward potential value impact on that asset, and that's why we're going to be meeting with CMS. So once again, we don't control that decision-making, but we're excited to meet with CMS in the fairly near term.

我們預計，我們與 CMS 的會議很快就會召開。我無法真正評論該會議的具體內容，但我們確實試圖澄清 J2403 在醫生辦公室的使用情況。也就是說，我們正在向該市場銷售產品，並且正在償還費用。我認為，根據會議的結果，我認為這將對資產產生重大的潛在價值上升影響，這就是我們將與 CMS 會面的原因。因此，我們無法控制決策，但我們很高興能在不久的將來與 CMS 會面。

In terms of VEVYE and what we can learn from the MIEBO, launch, obviously, MIEBO is the other SFA or semi-fluorinated alkane product, water-free product to hit the market. I think you may have even, I believe, put it in your eye, you've experienced it, it's a great product. And B&L, I think, has had a fairly successful launch. So we can learn a lot from that experience. We think that there will be many, many prescribers that will want to have cyclosporin on board for their patients. The other product has been sort of marketed for evaporative dry eye, whereas the concept is that VEVYE would be used for aqueous dry eye.

就VEVYE和MIEBO的推出而言，我們可以學到什麼，顯然，MIEBO是另一個上市的SFA或半氟化烷產品、無水產品。我想你甚至可能，我相信，把它放在你的眼睛裡，你已經體驗過它，這是一個很棒的產品。我認為 B&L 的推出相當成功。所以我們可以從這次經驗中學到很多。我們認為會有很多很多處方者希望為他們的病人使用環孢菌素。另一種產品已上市用於治療蒸發性乾眼症，而 VEVYE 的概念是用於治療水性乾眼症。

And I would submit to you that if you're a physician and you're seeing a patient and you have to make a prescribing decision, most physicians, if not all of them, do not know whether a patient is experiencing evaporative or aqueous dry eye. And so our hope is that all things being equal, they will choose to have a product on board that can perform as our product performs that also contain cyclosporin, the highest concentration in the market.

我想告訴你的是，如果你是一名醫生，你正在給病人看病，你必須做出處方決定，大多數醫生（如果不是全部）都不知道病人是否正在經歷蒸發或水性乾燥。眼睛。因此，我們希望在所有條件相同的情況下，他們會選擇船上的產品，其性能與我們的產品性能相同，並且還含有市場上濃度最高的環孢菌素。

In terms of the data set that we presented, if you look at the 12-month sign and symptom improvement data, you're talking about corneal staining data, improvement that is significant out of the gate. Certainly within 4 weeks, within 1 month, you get total corneal fluorescein staining. Data improving massively and tear production also improving significantly, as well as the symptoms for the patients in terms of their dryness scores.

就我們提供的數據集而言，如果您查看 12 個月的體徵和症狀改善數據，您談論的是角膜染色數據，這是一開始就顯著的改善。當然，4週內，1個月內，你會得到全角膜螢光素染色。數據大幅改善，淚液產生也顯著改善，患者的乾燥評分也明顯改善。

And so if you look overall at this data set and you're a prescriber, you can prescribe the highest concentration of cyclosporine and a product that not only works rapidly, but has an extraordinary adverse event profile. And importantly, will last a long time in terms of the ability to improve signs and symptoms over a 52-week period.

因此，如果您全面查看該資料集並且您是處方醫生，您可以開立最高濃度的環孢素和一種不僅起效迅速，而且具有非凡不良事件特徵的產品。重要的是，在 52 週內改善體徵和症狀的能力方面將持續很長時間。

So we think we're going to get quite a bit of those prescriptions certainly in the cyclosporin category. But our overall goal is, as I said earlier, to expand the market. And we think there are a lot of patients and a lot of prescribers that have wanted a product that can perform like VEVYE and they will soon have it.

因此，我們認為我們將獲得相當多的這些處方，當然屬於環孢菌素類別。但正如我之前所說，我們的總體目標是擴大市場。我們認為有很多患者和很多處方醫生都想要像 VEVYE 一樣發揮作用的產品，他們很快就會擁有它。

I will now turn the call back over to Mark Baum for closing remarks.

我現在將把電話轉回給馬克·鮑姆（Mark Ba​​um）進行總結發言。

Sure. Thank you, Betsy. I've never been more confident in our prospects. I think the value of our company is far greater today than it ever has been, and we remain on track with a well-structured disciplined plan that is going to lead to the accomplishment of our goals. Even though we may be a few months behind, the goals will be accomplished, we will get there. This is going to benefit not only our customers, the prescribers, but patients, our employees and our valued stockholders.

當然。謝謝你，貝特西。我對我們的前景從未如此有信心。我認為今天我們公司的價值比以往任何時候都大得多，我們仍然按照結構良好、紀律嚴明的計劃走在正軌上，這將導致我們目標的實現。儘管我們可能落後了幾個月，但目標將會實現，我們將會到達那裡。這不僅有利於我們的客戶、處方醫生，還有病人、我們的員工和我們尊貴的股東。

So thanks to everyone for attending today's call and your interest in Harrow. If you have any investor-related questions, please e-mail Jamie Webb at jwebb@harrowinc.com. This will conclude our call.

感謝大家參加今天的電話會議以及對哈羅公學的興趣。如果您有任何與投資者相關的問題，請發送電子郵件至 Jamie Webb：jwebb@harrowinc.com。我們的通話到此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。