to invest in capabilities that enable us to identify, educate and engage the right physician at the right time using physician-level claims data. We continue to make education on the six-year long-term survival data central to every customer interaction. Recent advisory boards confirm that this data is very motivating and can drive meaningful physician behavior change. Additionally, An innovative pilot program with leading HCP AI platform is now live, further enabling timely physician education. Looking ahead, we expect average quarterly growth in the 10% to 15% range, supported by broader adoption across segments. Importantly, our experience shows that once a physician gains experience with Loctorsi, utilization deepens over time, thus reinforcing the durability of a growth opportunity. In summary, we exited the quarter with renewed momentum and strong execution. We remain confident that Loctorzi is well positioned to achieve a $15 million quarter in 2026, a $30 million quarter in 2027, and a peak market share quarter by 2028, consistent with our prior projections. With that, I'll now turn the call to Bryan McMichael, our Chief Financial Officer.

Thanks, Sameer. Q2 2026 marked the one-year anniversary of the divestiture of the Udenica franchise, which allowed us to decrease our secured and convertible debt by over 90%, as well as reduce our overarching cost structure and core cash burn rate as we refocus the business. The benefits have been positive and significant. R&D from continuing operations for Q2 2026 was $21.4 million, down from $26.3 million in the second quarter of the prior year. The decrease was primarily due to savings from reduced headcount and lower clinical trial and R&D manufacturing costs. SG&A expense from continued operations was $21.0 million in the second quarter, down from $26.0 million in Q2 2025. The decrease was primarily due to savings from lower headcount and reduced operating costs following the exit from the biosimilar business. Q2 extends our streak to six quarters in a row with decreasing SG&A expense from continuing operations, going back to Q4 2024. For the full year of 2026, we expect combined OpEx to be between $170 and $175 million. Furthermore, during Q2, we significantly reduced our liabilities from legacy We expect the remaining obligations to be substantially settled by the end of the year and thus cease to burn cash. Specifically, accrued rebates and reserves, which primarily comprise balances related to divested products, decreased from $28.8 million at the end of Q1 to $14.9 million at the end of Q2. Importantly, this reduction came mostly from changes in estimates due to uncertainties being resolved favorably and not from the use of cash. Additionally, TSA payables and accrued liabilities decreased from $61.6 million at the end of the prior quarter to $22.7 million at the end of Q2. As covered by Sameer, Loctorsi net revenues continue to increase in line with expectations. For the full year 2026, we expect Loctorsi revenue to be between $57 and $62 million. Turning to the balance sheet. The total of cash, cash equivalents, and investments at the end of the second quarter was $105.3 million, down from $167 million at Q1. As I mentioned earlier, about $39 million of this decrease was due to TSA obligations, and we expect that this use of cash will be substantially diminished as we head into 2027. We reiterate that we believe we are sufficiently funded through key data readouts in 2026 and 2027. Q2 was the first in a series of four consecutive quarter milestone earn-out periods from the Udenica divestiture. Based on buyer-reported results, the $37.5 million milestones were not achieved in Q2, but they remain eligible for achievement heading into Q3. Achievement remains subject to finalization of the buyer's results, including any permitted adjustments under the asset purchase agreement. With that, I will hand it back over to Denny.

Thank you, Bryan, and thank you all for joining us on our Q2 2026 call. As you have heard, we are in an exciting time of maturing data across the pipeline programs with good financial results across sales, costs, and cash. At the one-year mark post of exit years, we are building clear organizational momentum. I am particularly looking forward to the second half of this year and the projected public disclosure of sufficiently mature data sets in October. We remain encouraged about the pipeline and the potential to advance Tegmo Ketog and Castozo Ketog to overcome immune resistance for cancer patients. Heidi, we are now ready for the questions.

Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star 1, 1 on your telephone and wait for your name to be announced. We politely ask you to limit yourself to one question and one follow-up To withdraw your question, please press star 1, 1 again. We will take our first question. And the question comes from the line of Paul Zheng from Guggenheim. Please go ahead. Your line is open.

Thanks for taking the question. For Pertagmo, I thought your comments on the early data from the head and neck cohort and TIRI score were really interesting. Do you see any potential to prospectively enroll patients based on HPV status as the study progresses? And have you also looked into oropharyngeal versus non-oropharyngeal as a possible stratification factor?

Okay, great. Well, Paul, thanks for the question. I'll let Dr. Dias answer that.

Thanks, Paul, for the question. So, yeah, I think the plan right now, Paul, is to continue accrual and to continue follow up, most importantly, obviously, to the head and neck cohort. We are still waiting for biomarker data samples to come in. So I think that will really inform how we proceed. And I think we'll be ready in October, as I mentioned, to to really communicate that data more formally. Your point about oropharyngeal carcinoma is well taken. Obviously, you know, that's where a lot of the HPV-positive disease is. So, that'll be part of how we look at the data and we communicate it in the October timeframe. What's your follow-up, Paul?

Yeah. So, second question is on Casdozo. Just, you know, for the Phase II You've mentioned the data might evolve with subsequent updates after the one coming up in the second half. Do you have any visibility into when you might be able to pull the trigger on a phase three? Is it enough to see some mature response rates, or are you going to wait for overall survival on that study down the line? Thank you.

Yeah, thanks again, Paul. So I think overall survival certainly will take some time to develop, so I don't envisage having to necessarily wait for an overall survival endpoint in order to proceed. You know, I think, again, we'll do some updates later this year. We do anticipate with the data maturing as it is, we'll have something to say towards the end of this year, and then it's going to be subsequent follow-up in terms of the numbers of scans and, again, the durability question. But, no, I don't envision that we'll need to wait for formal overall survival analysis.

Very helpful. Thank you very much.

Thank you. We will take our next question. And the question comes from Brian Chang from J.P. Morgan. Please go ahead. Your line is open.

Hey, guys. Good afternoon. Thanks for taking our questions this afternoon. Maybe just to start off on Loctorsi, you know, you guys have got a 10 to 15 percent quarterly growth here. I'm curious if you can give us a better sense of what is driving the improvement in duration therapy here. Are you seeing a greater shift from patients that are coming from first-line usage, particularly after your six-year Jupiter O2 data read? And then I have a quick follow-up. Thank you.

Okay, Sameer, you want to answer that for Bryan?

Sure, yeah, thank you, Bryan. So, Bryan, I think what's driving our growth in this quarter is the same thing that's been driving in previous quarters. There's way too many patients who are receiving chemotherapy alone and off-label IOs, and we're in the process of converting those physicians to start using the proven alternative, the proven preferred treatment of Loftorzy. So, as we did in previous quarters, we got more physicians using Loftorzy for the first time, and we had more physicians using Loftorzy for a subsequent time. Secondly, regarding duration of treatment, we're seeing a gradual increase in duration of treatment, and that will continue, I believe, to be gradual because of our dual indication, where we also have the second and third line indication, which has pretty low duration of treatment. So we have headroom both on new patient starts as well as duration, which we will continue to accomplish in the coming quarters. Bryan, did you have a follow-up?

Yeah, and maybe just one quick one to touch on TACMO heading into the head and neck data read later this year. I'm curious if you can talk through, as we think about the data read, how do we get a better understanding of TACMO contribution on top of TOI, right? Are there any specific metrics or any biomarkers that you think investors really need to lean on, and whether, you know, at the data read, whether you will be able to establish that association of these changes you see in those biomarkers to the durability response clearly. Thank you.

Great question. Dr. Lavallee?

Yeah, and obviously incredibly topical given the recent discussion at the advisory committee. This is a PD-1 refractory population. So these patients are progressing. The patients enrolled have progressed on prior PD-1 therapy. And we're looking closely at the time between progression and enrolling on our study. So immediate progression and then enrolling would be they're not responding. So the addition of tori plus tagmo has rescued that resistance. Having it associated with a metric that has within it the target CCR8 positive Tregs is also reassuring. And of course, we have different biomarkers that we're looking at as we always do in terms of showing the immune activation specifically of TAGMO versus toriolone. So that will be a robust conversation with the FDA, but we have A lot of plans to look at the contribution of effect robustly and early to save on patient numbers having to contribute to that.

Thank you. Thank you, Bryan.

Thank you. We will take our next question. And the question comes from Jay Olson from Oppenheimer. Please go ahead. Your line is open.

Oh, hey, guys. Congrats on all the progress and thanks for taking the question. Since Lactorsy continues to deliver strong growth, you had the highest number of new patient starts since launch and improving treatment duration. Can you just comment on how you expect various Lactorsy growth drivers to evolve over the long term, including continued penetration within NPC, longer duration of therapy, or combination opportunities for Lactorsy across other tumor types? And then I had a follow-on if I could, please.

Yes, please. Thank you, Jay, for the question. I think I'll start with what we don't anticipate in the foreseeable future. We're not pursuing a combination in NPC at this point, but we have plenty of opportunities within the NPC current indication that we have. As I mentioned earlier, we're still seeing a pretty high level of chemotherapy use in the community setting, and we're just going, you know, practice by practice, physician by physician, talking about our fixture data, and that is having a significant impact. As I mentioned in my prepared remarks, we did multiple ad boards, and we talked to physicians who had never seen this data. And upon seeing this data, they were completely overwhelmed by the strength of this data. So really educating on this data and getting the non-users on board is a critical priority right now. The second priority, as I mentioned earlier, was duration of therapy is also important. because there's two drivers in duration therapy. One is getting more early-aligned patients on therapy, and we also see for first-time users some inappropriate dosing and discontinuations. So our focus is on educating those physicians to kind of put a stop on that. So those would be my priority drivers to follow up with.

Sameer, can you comment a little further on what we're seeing with respect to the breadth and the depth of adoption?

Yeah, so breadth of adoption is really important because we're seeing almost our market share is growing and we're seeing more than half of our addressable physicians have not used Loctrozy and it's purely because of an awareness issue. They don't see that many NPC patients and when they do see an NPC patient, Loctrozy is not top of mind. So we're growing our breadth every quarter. We're getting a pretty high number of new accounts and new physicians using Loctorgy. So that breadth is a really important component. The second one is depth, right? Because every time we get a physician converted to Loctorgy, we want to make sure that they continue to use Loctorgy for every single subsequent patient. And we're making good progress there. We see a pretty good depth and repeat use of Loctorgy in the current new physicians who are using Loctorgy.

Great, thank you. And if I could sneak in a follow-up question on TAGMO. Based on the data you've seen so far, as we look ahead to your October data disclosure, what would you like investors to focus on, especially any metrics besides ORR that you think should be important to watch out for?

Ray, Rosh. Yeah, thanks, Jay. Great question. So I think, you know, we've always talked about the need to look at the totality of evidence, and that's what we will be focusing in on. So as we approach the October disclosure, what we'll be looking at, obviously, as you mentioned, in addition to the overall response rate is also very importantly the clinical benefit rate. So that is the response rate, the stable disease, the durability of that stable disease and response as well. And I think those will be very important measures in addition to, of course, the safety and tolerability. You know, we already spoke about the the EGFRs and some of the toxicities there. So I think this will be another important factor and then we'll be looking at those same metrics within the different biomarker analyses as well.

Super helpful. Thank you very much.

Thank you.

Thank you. We will take our next question. Your next question comes from the line of Colleen Cussey from Baird. Please go ahead. Your line is open.

Hey guys, it's Nick on for Colleen. Thanks for taking the question. Just had one on the CASDOZO program. So just with upcoming triplet data in HCC, just wanted you to talk about the metrics you expect to show there. And then just specifically, what results do you think you would need to show to come away with more confidence on the triplet in this indication? And particularly, is there anything else we should be paying attention to as OR will likely not be as high as it will be with more mature data? Thanks.

Yeah, thanks for the question. So, you know, again, as I mentioned earlier, we'll be looking at the totality of data, right? So, yes, response rate. We'll be looking at the durability, the CBR, et cetera, et cetera, everything that I mentioned previously. In addition, we're also looking at the ctDNA2 guide, how we think about, you know, the potential for response durability and survival. and then we'll also look at baseline IL-27 levels as well to see whether we, you know, how those may correlate with what we are seeing. You know, we pointed this out previously and one thing to bear in mind is that this data in HCC in particular does take some time to mature. If we look at the previous study, there was some time to get a baseline and then increase in response rate, a baseline, and then a deepening of the response. So that's kind of our expectation here as well, but we'll be looking at all of those different metrics that I initially alluded to.

Great, thank you.

Thank you.

Thank you. Once again, if you wish to ask a question, please press star 1, 1 on your telephone. We will take our next question, and the question comes from Douglas L. from HC Wainwright. Please go ahead. Your line is open.

Hi, good afternoon. Thanks for taking the questions. Sameer, you made a comment about needing to correct dosing with some clinicians, and I was just curious if you could provide more detail in terms of what you're seeing or what is happening there.

Yeah, I mean, I'll just touch upon it. This is some early analysis that we've done this quarter where we found some opportunities. We have two indications. Our frontline indication is acute three-weekly dosing, and our lateline indication is acute two-weekly dosing. So we have a suspicion that some physicians might not be dosing for the indication, and doing acute three-week dosing where it deserves to be acute two-week dosing. So that's an opportunity for us to address. Additionally, also our indication is to treat to progression and not for six cycles. So that's another area that we might have an opportunity to correct and drive appropriate dosing of the drug. Again, I would stress that that's a secondary opportunity. Our biggest opportunity is to get the people who are not using Locterazine to get using Locterazine. But we will also be driving, you know, appropriate dosing with our existing provisions.

And Sameer, I mean, I understood that it's not the sort of primary initiative. I am curious, though, you know, how material or if you can give us some sense of the scale of the problem that you're sort of maybe, you know, how much sort of revenue is being left on the table because of some of these dynamics?

I'll just say that we have significant opportunity on the duration upside. I can't put a number right now because this is all based on claims data and we're just really digging a little deeper into it. So give us a little bit of time to dig a little further. But what I will say is we did see some signals of opportunity there.

And Sameer, if I can just one follow up on that. I mean, have you engaged with clinicians and had the opportunity to sort of just interrogate them in terms of what might be happening. Is it purely just a misunderstanding of the dosing? Or do they have sort of some different perspective in how they want to use the drug?

I think it's purely a misunderstanding of the dosing. Because remember, as I mentioned earlier, they're not using, they're not treating NPC more than maybe once a year. And when they see it, unless we are in the office before they initiate the therapy and educate them exactly how to do it, there's an opportunity for misdosing, right? So it's primarily an educational issue that we are trying to address.

Okay, great. Thank you so much.

Thank you. There seems to be no further questions. I would like to hand back for closing remarks.

Thank you, Heidi. Thank you all for joining us on our Q2 2026 call. We're happy to give you our current updates on our clinical development program and our good progress with respect to the sales. I want to thank Sameer for the 15% increase. Just want to remind you, there'll be a number of investment conferences that we will attend in New York and in Byron's in September. And we look forward to updating you on our clinical progress very excitingly in October. Thank you.

Goodbye. This concludes today's conference call. Thank you for participating. You may now disconnect.