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

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

Thank you, Jennifer, and good afternoon, everyone. Joining me today are David Borges, our Chief Accounting Officer, Dr. Cathy Melfi, our Chief Regulatory Officer, Dr. Steve Whitaker, Vice President of Clinical, and Bill Woodman, our Chief Commercial Officer. Promoted from within the company, Bill was recently appointed as our chief commercial officer, and let me tell you a bit more about him. Bill joined Omeros six years ago as our vice president of sales and market development, bringing more than 25 years of industry experience, including sales and marketing leadership roles at Amgen, Spectrum Pharmaceuticals, and Jazz Pharmaceuticals, where he led the global launch of Defibrotide. At Omeros, Bill largely built our commercial team and was instrumental in designing and executing the Artemlio launch. I have long believed that Bill's background, capabilities, and achievements are ideally suited to Omeros' current and future objectives. Under his leadership, our commercial team is driving Yard Temalia toward becoming the standard of care for TATMA and preparing for its expansion into a broad range of MASK II-driven indications. Beyond Compliment, Bill's track record of driving growth across oncology, rare disease, and specialty biopharma products will serve O'Meara's well. Before I turn to the financial details, let me highlight three points. Yartemli had generated $32.2 million in gross sales in its first full quarter on the market. Second, operations generated $4.1 million of positive cash flow during the quarter. And third, we meaningfully strengthened our capital structure through our share and note repurchases. So I'll now begin with an overview of our second quarter operations and financial results followed by program updates. David will then review the financials in more detail after which we'll open the call for questions. As you know, the FDA approved Yartemlia, our lead MASP2 inhibitor, in December 2025 for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy, or TATMA. Yartemlia is the first and only approved treatment for this often fatal complication of stem cell transplantation. and Yartemlia is also the first and only approved inhibitor of the lectin pathway of complement. We launched Yartemlia in mid January with initial distributor shipments beginning mid month and first sales following shortly thereafter. The second quarter was our first full quarter of the Artemlia sales, and we're pleased to share the results today. As I mentioned in the second quarter, Yartemlia generated $32.2 million in gross sales and $28.5 million in net sales, reflecting strong physician adoption and market penetration and a gross to net adjustment of 11.5%. Compared with the first quarter, gross sales increased 190% and net sales increased 188%. We'll discuss the launch in more detail in just a bit. Net income for the second quarter was $13.2 million, or 18 cents per share. As we have previously discussed, our reported results include non-cash mark-to-market adjustments related to the derivative embedded in our 2029 convertible notes, excluding non-cash remeasurements of embedded derivatives and other financial instruments. Second quarter non-GAAP adjusted net income was $1.8 million or two cents net income per share. David will walk through the quarter over quarter comparisons and accounting details shortly. We ended the quarter with $132 million in cash and investments. Importantly, company-wide, operations provided net positive cash flow in the second quarter of $4.1 million. Our share repurchases and subsequent note repurchases further strengthened our capital structure. During the six months ended June 30, We repurchased and retired approximately 843,000 shares of Omeros Common Stock, nearly 60% of those shares in the second quarter, at a volume-weighted average price of $11.70 per share. Then in July, through two privately negotiated transactions, we repurchased $30.5 million aggregate principal amount of our 9.5% convertible notes due in 2029, reducing the outstanding principal by 43% to $40.3 million. The repurchases also reduced the number of shares issuable upon conversion from approximately 11.4 million to 6.5 million shares. We achieved this reduction at a weighted average cost of $12.21 per underlying conversion share and concurrently eliminated $8.6 million in future interest payments. Together, our open market share repurchases and our negotiated note repurchases have reduced our potential fully diluted share count by 5.8 million shares year to date. Turning back to Yartemliya, our launch remains focused on four priorities. One, Educating transplant teams to recognize and treat TATMA earlier. Two, securing institutional access through pharmacy and therapeutics or P&T committee approvals and streamlined ordering. three, ensuring timely reimbursement, and four, demonstrating Yartemliya's economic value through health economics and outcomes research, or HEOR. Together, these priorities are intended to change how transplant centers approach TATMA. Historically, Particularly at adult transplant centers, TATMA often has been treated as a diagnosis of exclusion and considered only after other potential causes are ruled out. We are working to shift that paradigm toward proactive screening, enabling clinicians to identify and treat more patients earlier and ultimately improve transplant outcomes. Execution remains strong. Our field sales organization is actively engaging all 175 U.S. transplant centers. As of June 30, 73 unique accounts had ordered Yartemlia, a 143% increase since March 31. As discussed on our first quarter call, pediatric patients initially represented an outsized share of utilization. With rapid adoption at adult transplant centers, however, the mix has shifted significantly. In the second quarter, adult utilization grew at more than twice the rate of pediatric utilization, and adult patients represented approximately 75% of Yartemli assails. This mix is closely approaching the historical 85%-15% split between adult and pediatric transplant procedures in the U.S. Formulary adoption also continues to progress rapidly. By quarter end, we understand that Yartemliya had received P&T committee approval at approximately 55 to 60% across the top 10, 20, 40, and 80 U.S. transplant center cohorts that we track. Ordering frequency also increased meaningfully, indicating deeper utilization within centers. We also achieved key reimbursement milestones during the quarter. The Centers for Medicare and Medicaid Services, or CMS, assigned Yartemliyev a Permanent Product-Specific Healthcare Common Procedure Coding System, or HCPCS, JCODE, Effective July 1. The J-code establishes a clear and consistent outpatient reimbursement pathway, reduces administrative burden, and supports more predictable payment for providers. CMS also recommended a new technology add-on payment or NTAP for Yartemliya under the fiscal year 2027 proposed rule for the inpatient prospective payment system or IPPS and has now granted the NTAP in the final IPPS rule. The NTAP provides up to $287,000 in additional Medicare reimbursement for inpatient treatment with Yartemlia. This is particularly important because Medicare beneficiaries represent approximately 30% of US allogeneic transplant recipients. The NTAP for Yartemliya is expected to become effective October 1. Commercial payer experience also remains positive. Prior authorization requests are being approved consistently and centers receiving appropriate payment reflect growing acceptance of Yartemliya among commercial insurers. We are preparing our HEOR analyses for presentation at upcoming scientific meetings and for peer-reviewed publication. We expect these analyses to further demonstrate Yartemlio's clinical and economic value and support continued adoption. Overall, early commercial indicators including strong transplant center engagement continued formulary and ordering momentum and payer alignment with the approved label reinforce our expectation that Yartemlia can become the standard of care for TATMA. Looking ahead, we continue to pursue expansion opportunities for Yartemlia and our broader MASP2 platform. In June, following an oral explanation before the European Medicines Agency's Committee for Medicinal Products for Human Use, or CHMP, the committee adopted a negative opinion on our marketing authorization application for Yartemlia in TATMA. We believe the clinical evidence supports approval and have requested reexamination. The application is supported by our pivotal narsoplimab trial data in TATMA, survival analyses comparing narsoplimab treated patients with an external registry of patients who did not receive narsoplimab and data from more than 220 adult and pediatric patients treated through our expanded access program. This same body of evidence supported Yartemliya's FDA approval. As part of the reexamination, an ad hoc expert group, or AHEG, comprising independent external scientific and clinical experts in hematology, stem cell transplantation, and TATMA, will review the evidence and address questions central to CHMP's assessment. The AHEG will hear from OMEROS and from transplant experts with direct experience using narsoplumab and new rapporteurs will review the application. We remain focused on obtaining approval in Europe. Meanwhile, we continue to provide Yartemlia to European patients with TATMA through our expanded access program, prioritizing children. We also continue to assess opportunities to expand the Yartemlia label. We are prioritizing indications with a strong biologic rationale for MASP2 inhibition, particularly those involving endothelial injury, lectin pathway activation, and thromboinflammation. These encompass an extensive list of indications, including chemotherapy-induced TMA, acute respiratory distress syndrome or ARDS and other transplant related endothelial injury syndromes. We plan to evaluate new indications through preclinical research, investigator initiated studies and clinical trials each as appropriate. By year end, we expect enrollment to begin in two investigator-sponsored and OMERO-supported studies, one evaluating Yartemlia in hyperinflammatory ARDS and the other assessing prophylactic Yartemlia in pediatric patients with predictably severe TATMA. Our MASP2 platform extends beyond Yartemlia. We are advancing our phase two ready long-acting MASP2 antibody OMS1029 and an oral small molecule MASP2 inhibitor program. Both are designed for chronic indications requiring long-term administration, including membranous nephropathy and neurodegenerative diseases such as Parkinson's and Alzheimer's. In phase one clinical trials, OMS 1029 demonstrated the clear ability to inhibit MASP2 over an extended duration with once quarterly subcutaneous or intravenous dosing. And our small molecule MASP2 inhibitor is targeting once daily oral dosing. We are finalizing selection of the initial Phase II indication for OMS 1029. Clinical drug product and matching placebo have been manufactured and are available. For our MASK II small molecule program, we have one ongoing study to complete, after which we expect to select an orally delivered development candidate for that program. Our collaboration with Novo Nordisk also continues to progress smoothly. The Novo transaction provides up to $2.1 billion in upfront and milestone payments, plus royalties ranging from high single digits to the high teens. At closing in the fourth quarter of 2025, we received $240 million in upfront cash, which funded the Artemlia launch and other operations. We also are eligible to receive up to an additional $100 million in near-term milestone payments. Our interactions with Novo remain collaborative and productive, and we continue to provide transition services at Novo's cost. Turning now to development programs beyond our complement inhibitor franchise, our PD7 inhibitor program evaluating OMS527 for cocaine use disorder remains fully funded by a grant from the National Institute on Drug Abuse or NIDA. Earlier this year, we met with FDA regarding the agency's request for additional non-clinical information before initiating the inpatient study. That non-clinical work has initiated and we expect to start enrollment in the inpatient clinical trial by year end. Based on its mechanism of action and our extensive preclinical data, we believe that OMS 527 could be effective across a broad range of addiction and compulsive disorders. Our targeted complement activating therapy or TCAT platform is a novel class of recombinant antibodies designed to target and directly kill pathogens, including bacteria, fungi, viruses, and parasites. Our initial focus is on infections caused by multi-drug resistant organisms, among medicine's most critical unmet needs. Unlike antimicrobial agents on the market, TCAT is designed to kill pathogens regardless of resistance profile and without promoting or enhancing resistance. The foundational manuscript describing our TCAD technology was published in Science Translational Medicine in June of this year. The manuscript details the technology and demonstrates that TCAT monoclonal antibodies safely and effectively treated infections in translationally relevant murine models of sepsis and pneumonia caused by multiple different drug-resistant bacterial species prioritized by the World Health Organization as posing the greatest threat to human health. The data underscored TCAT's potential as a next generation platform with broad applicability across microbial species, including multi-drug resistant pathogens. And we look forward to advancing TCAT toward the clinic. Finally, Oncotox AML or OMS805 is the lead program in our oncology platform. It's an engineered biologic designed to treat acute myeloid leukemia or AML, the most common and one of the deadliest acute leukemias in adults. Across tumor-bearing animal models and in vitro human AML cell line studies, Oncotox AML has consistently demonstrated efficacy superior to current standards of care, even at very low doses. Importantly, this efficacy was independent of AML related mutations, including TP53 and FLT3, which historically have been very difficult to treat. In a non-human primate study, a single course of Oncotox AML produced the desired pharmacologic response, a marked selective reversible and dose-related reduction in myeloid progenitor cells by up to 99%. Treatment was well tolerated with no safety signal of concern. We have entered into agreement with a leading contract biologics manufacturer for process development and clinical supply of OMS805 drug substance. IND enabling studies are underway. Given the novelty of the Oncotox program, its potential applicability across hematologic malignancies, and the breadth of our unpublished data and pending patent claims, we plan to limit further public disclosure until OMS 805 enters human studies and begins generating clinical data. Working with our advisory board of leading AML experts, we are preparing for a first in human trial targeted to begin in late 2027. So that concludes our corporate and program update. I'll now turn the call over to David for a more detailed review of our financial results. David.

Thanks, Craig. Our second quarter results reflect continued focus on commercial execution of the Artemia launch and actions to strengthen our capital structure. Net income for the second quarter of 2026 was 13.2 million or 18 cents per share compared with net income of 56.1 million or 78 cents per share in the first quarter of 2026. Second quarter results included a $12.1 million non-cash mark-to-market gain on the embedded derivative associated with our 2029 convertible notes and a $700,000 remeasurement loss on our payment obligation for the 2029 note repurchases. By comparison, first quarter results included a $73.1 million non-cash mark-to-market gain on the embedded derivative associated with the 2029 convertible notes. To provide additional visibility into our operating performance, we also present non-gap adjusted results that exclude non-cash remeasurements of embedded derivatives and other financial instruments. Excluding these non-cash remeasurements, non-GAAP adjusted net income for the second quarter was $1.8 million or $0.02 net income per share compared with a non-GAAP adjusted net loss of $17.1 million or $0.24 net loss per share for the first quarter. As of June 30, 2026, we had $132 million in cash and investments and company-wide net cash provided by operations in the second quarter was $4.1 million. During the second quarter, we repurchased and retired approximately 489,000 shares of our common stock at an average price of $11.70 per share for a total of $5.7 million. Through June 30, 2026, we had repurchased and retired approximately 843,000 shares at the same average price for a total of $9.9 million. In June and July of 26, we entered into agreements for two privately negotiated cash repurchases totaling $30.5 million aggregate principal amount of our 2029 convertible notes. Both transactions closed in July, reducing our outstanding debt, which consists solely of the 29 notes, by approximately 43%, from $70.8 million to $40.3 million. the aggregate purchase price was $60.2 million plus 200,000 of accrued and unpaid interest. These transactions reduced leverage, future cash interest expense and potential dilution by opportunistically repurchasing and retiring a portion of the 29 convertible notes. They also reduced the number of shares issueable on conversion from approximately 11.4 million to 6.5 million. As Greg noted, Yartemlia maintained strong commercial momentum in the second quarter, gross product revenues for 32.2 million, all from Yartemlia sales, compared with 11.1 million in the first quarter, and net revenues for 28.5 million, compared with 9.9 million in the first quarter. Gross to net adjustments were approximately 11.5% compared with approximately 11% in the first quarter and remained within our expectations. These adjustments consisted primarily of chargebacks and distribution fees. Costs and expenses from continuing operations before interest and other income were $28.5 million, an increase of 1.1 million from the first quarter. Under the transition services agreement entered into in connection with the Zaldanabar transaction, we continue to be reimbursed for costs incurred in providing transition services, including third-party expenses and internal personnel costs. We also recognize $3.3 million of reimbursement from Novo Nordisk for Zaldanabar inventory transfer during the quarter, which we recorded in other income reports. Interest expense was $7.6 million. The primary components were the DRI royalty obligation and interest on the 2029 convertible notes. Excluding the Amidria royalty obligations to DRI, which is fully offset by amounts received from Rainer and therefore has no economic impact on Ameros, and non-cash amortization of debt issuance costs and discounts, contractual cash interest expense was $1.7 million, down $100,000 from the first quarter. Interest and other income totaled $4.6 million in the second quarter compared with $1.5 million in the first quarter. The increase was primarily attributable to the Novo Nordisk inventory reimbursement. As previously noted, we recorded a $12.1 million non-cash mark-to-market gain on the embedded derivative related to our 29 convertible notes. The change was driven primarily by the decline in our stock price from $10.56 per share at March 31st to $9.51 per share at June 30th. Because the derivatives value is closely tied to our stock price, increases in our share price generally produce non-cash losses, while decreases generally produce non-cash gains. This adjustment does not affect our operating performance or liquidity and is excluded from our non-GAAP adjusted results. Following the July note repurchases, future mark-to-market adjustments will reflect the reduced principal balance. In connection with the June agreement to repurchase the first tranche of our 2029 convertible notes, comprising $16 million principal amount, We recorded a $1.9 million loss. The loss reflects the difference between the fair value of the payment obligation, the carrying amount of the repurchase notes, net of unadvertised discount and issuance cost, and the de-recognition of the associated embedded derivative liability. Because the agreements for the second tranche comprising 14.5 million principal amount were entered into in July, 2026, Thank you for joining us. We expect total operating expenses from continuing operations to be slightly higher than in the second quarter. Research and development expenses are expected to increase primarily due to increased spending on our OMS 805 Oncotox program. Sales and marketing expenses are also expected to increase reflecting continued investment in your commercial infrastructure, marketing, and launch activities. Although we're encouraged by Artemlia's continued commercial momentum, we're not providing revenue guidance at this time. We believe it is prudent to gain additional experience with prescribing trends, patient demand, and market dynamics. We remain focused on expanding physician awareness and disease education and ensuring continued timely reimbursement. Interest and other income are expected to be lower in the third quarter, primarily because the Novo Nordisk inventory reimbursement recognized in the second quarter will not recur. Interest expense is expected to be approximately $6.5 million, reflecting the reduction in the outstanding debt following the repurchases. This estimate excludes potential non-cast adjustments related to the Midria royalty obligation. Income from discontinued operations is expected to be between $5 and $6 million, again, excluding any remeasurement adjustments related to the immediate contract royalty asset. And finally, as a reminder, our reported results will continue to reflect mark-to-market adjustments on the embedded derivative relating to our remaining 29 convertible notes. These adjustments are non-cash. They can be volatile and are driven largely by stock price and other market inputs. We therefore present non-GAAP adjusted income and loss to provide additional visibility into underlying operating performance. And with that, I'll turn the call back over to Greg. Greg.

Thanks, David. Operator, please open the call to questions.

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

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

Thanks, Brendan. With respect to the first question regarding C5 inhibition, as you noted, Ravulizumab previously missed the endpoint on its open-label pediatric study and then recently reported that it as well had missed the endpoint on its controlled adult trial. So as far as we all understand, and you understand, they did not meet their endpoints across any of the rabulizumab TATMA trials. Your question as to whether there remains off-label primarily eculizumab use because the dosing frankly for rabulizumab is not really conducive to the acute Indication of TATMA, eculizumab is more frequently dosed, shorter half-life. There is some continued eculizumab off-label use. We don't really know how much. We don't frankly focus on how much. I'll ask Bill to speak to that and his thoughts around the competition there, which I'll preempt a bit by saying we don't really see it as competition for Yartemlia. I think with respect to why there might be continued use for a while of eculizumab I think certainly it's hard to break old habits among physicians and that that is likely what we're seeing but when you look at the adoption of narsoplumab the breadth of the adoption the depth I think that speaks volumes about how physicians see our drug. I also think certainly the safety profile. I mean, let's put aside the efficacy, which we're very pleased with the efficacy that we're seeing with narsoplamab in the commercial setting. But let's look at the safety issues. I mean, narsoplamab is not associated with the same issues as C5 inhibition. It's just, it's a biological fact. When you inhibit C5, you inhibit the lytic arm of the classical pathway that increases the risk of infection. Inhibition of MASP2 with narsoplumab or Yartemlia is upstream. So we're inhibiting the lectin pathway Thank you very much. I frankly expect that that will not be a long-lived challenge for us. But Bill, let me ask you to comment on that.

Sure. Thanks, Greg. Yeah, I totally agree. You know, physicians are humans too, and humans generally do not welcome change with open arms. was their only option for 10 or 12 or 15 years and in peds it was widely adopted adults not so much but in peds even in peds we're seeing adoption Thank you, Bill.

Brandon, your next question was how our internal forecasts, I believe, compare to what we've seen. We won't comment today on our internal or external forecasts. We won't guide the other part of that question. I think, though, it was around our cash flow forecasts. Certainly, we hold to our... Thank you very much. positive cash. So I think we're quite comfortable holding to that prediction. David, any comments on that? I would say that states it really well and agree with what you just said, Greg. Thank you. Anything else, Brandon?

No, other than to say congrats on a really good course and a good launch. Thank you. Thank you very much.

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

Yes. Hey, good afternoon, Greg. And obviously, thank you for taking these questions and congrats on these numbers. I'm thrilled. And I'm sure the patients being treated with your family are also thrilled. Financial questions. Can you... just iterate, are any of these numbers from any kind of channel stocking or do they represent pure numbers for drug going out? And I've got to follow up after that, please.

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

Okay, thank you. Last question, and I'll jump back in the queue. NTAPs, okay? I've been familiar with different NTAPs programs, but your numbers are obviously much, much higher. Can you tell us, in terms of reimbursement, can you tell us the NTAPs process and how you're set up for that? Because that is something that not that many people are familiar with, and I'll hop back in the queue. Thank you.

Sure. NTAP is a CMS program that frankly subsidizes the cost of new drugs entering the market while that period of time occurs over which the DRGs are adjusted to account for those new drugs. So as you know, CMS has set an amount up to $287,000 for a course of treatment for Yartemlia. We're quite pleased with that. It's at that roughly 65% cap that CMS will allow. CMS, as you saw in there, proposed IPPS rule recommended the NTAP 4-yard temlia and subsequently in the final rule confirmed it. So I think they recognize the utility and the importance of the drug and we're quite pleased that becomes effective or is scheduled to become effective on October 1. Kathy, do you want to add anything else?

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

Thank you.

Steve, did that answer? Perfectly on both counts. Thank you and again, congrats on these strong, strong numbers.

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

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

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

Sam, to I think our collective knowledge, no. We don't really have great visibility into vial utilization at specific centers, as you understand with all of the HIPAA and confidentiality issues around patient information. We just don't get that information. But certainly the ordering patterns are important. Thank you for joining us.

between Peds and Adults. Over time, we expect to treat a lot more patients with fewer vials as they start to get better at diagnosing it, treating it early and getting better outcomes. So that's really kind of the way we expect it to go in the future.

And moving the treatment setting more toward the outpatient, right, Bill, and less so in the inpatient so that the response... Remember, in the absence of really... and effective and safe drug. The focus on earlier and earlier treatment has not been there. In fact, the focus has been how can we get these patients better without having to use some treatment for those patients? I think as we spoke about during the prepared comments, we're seeing and we're certainly helping, I think, to implement Thank you, Sam.

your next question comes from the line of Serge Bellinger with Needham your line is open please go ahead

Hi, good afternoon and thanks for taking my questions. First on your TEMLIA, Greg, can you just talk about maybe the number of patients that have so far been treated with the product and I guess what the kind of the market share of the overall opportunity would be based on those patients? And then secondly, you talked about in your prepared comments that TATMA is mostly a diagnosis of execution. So with the shift paradigm that you're working on, what do you expect the market opportunity could be or what is the underdiagnosis and undertreated rate for the indication? Thank you.

Sure, Serge. Thanks for the questions. First, we can't give you any really concrete Thank you very much. How many patients are being treated with those vials, where in the treatment course those patients are, etc. So with respect to patient numbers, can't really provide that information. With respect to the prepared comment about diagnosis of exclusion, I think what clearly is meant there is prior to an approved product, prior to Yartemlia, being available. The diagnosis of TATMA was quite challenging and really very diverse across centers. So different sets of criteria being used by different centers, by different physicians, a lack of real standardization of the diagnostic criteria. So absent a a really good treatment for TATMA, you can understand why physicians would look at a constellation of symptoms and say, let's rule out those things that we know we can treat. And if we can't treat those, then this is going to fall to what we'll call TATMA. We do believe that we are simply now scratching the surface. Again, I'll look to Bill to comment on that in just a moment. But I think our collective view on this is we're just scratching the surface. And as there becomes further embedded an effective and a safe treatment for TATMA, the diagnosis of TATMA accordingly will increase. and I think that the overall incidence numbers are going to continue to move north. I think the percentage of patients who ultimately end up being diagnosed with TATMA as a percentage of stem cell transplantation will also increase. We're already seeing it. The latest MIDAS studies shows the incidence of TATMA at 56% of allogeneic transplants. And I would think that there's a reasonable possibility that those percentages will increase. Again, when you have a treatment, there's a good reason to identify the disorder and then the treatment becomes becomes self-fulfilling for that set of diagnostic criteria. But again, let me turn this to Bill and see. Bill, what are your thoughts on this?

Yeah, I mean, I totally agree, Greg. We're just scratching the surface. As well as we've done so far, we expect to do better in the future. Institutional organizations, large academic centers, it's very that could include not just P&T committees, but order sets and EMRs, the way that they diagnose TMA. It fundamentally has to change. And we've made that change in some centers, but we have a lot more to go and we think it'll get better over time, you know, pretty consistently over time.

Great. Thank you.

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

Thank you, operator. And again, thank you all for joining us this afternoon. As we enter the second half of the year, Yartemlia has demonstrated strong commercial momentum in its first full quarter on the market. Reimbursement infrastructure continues to strengthen. Our operations generated positive cash flow in the quarter, and our recent note repurchases reduced debt and reduced potential dilution. We remain focused on execution, driving Yartemliya adoption in TATMA, advancing expansion opportunities across the MASP2 franchise, and moving our other programs across our deep pipeline forward. We have a number of important opportunities and milestones ahead, and we look forward to updating you on our progress.

have a good evening thank you this concludes today's call thank you for attending you may now disconnect