Greetings and welcome to the Alchemy's 4th Quarter 2025 Financial Results Conference Call. My name is Melissa and I will be your operator for today's call. All participant lines will be placed on mute to prevent background noise. If you should require operator assistance during the call, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the call over to Sandra Coombs, Senior Vice President of Invest Relations and Corporate Affairs. Sandy, please go ahead.

Welcome to the Alchemist PLC conference call to discuss our financial results and business update for the quarter and year-ended December 31, 2025. With me today are Richard Popps, our CEO, Joshua Reed, our Chief Financial Officer, Todd Nichols, our Chief Commercial Officer, and Blair Jackson, our Chief Operating Officer, who will join us for the Q&A. A slide presentation along with our press release, related financial tables, and reconciliations of the GAAP to non-GAAP financial measures that we'll discuss today are available on the Investor section of Alkermes.com. We believe the non-GAAP financial results, in conjunction with the GAAP results, are useful in understanding the ongoing economics of our business. Our discussions during this conference call will include forward-looking statements. Actual results could differ materially from these forward-looking statements. Please see slide two of the accompanying presentation, our press release issued this morning, and our most recent annual and quarterly reports filed with the SEC for important risk factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise the information provided on this call or in the accompanying presentation as a result of new information or future results or developments. After our prepared remarks, we'll open the call for Q&A, and now I'll turn the call over to Richard for some opening remarks.

Thank you, Sandy, and good morning, everyone. Well, we clearly had a strong and eventful 2025. As we enter 2026, there are three elements of the business to understand and to value, and the first is the commercial business. In 2026, we expected to generate revenues of more than $1.7 billion and adjusted EBITDA of more than $370 million. And we're continuing to build this business with the recently completed acquisition of Avidel. Adding Avidel represents an important milestone and strategic step in the company's transformation. The acquisition adds an important new revenue stream and growth opportunity to our portfolio of commercial products. Strategically, it accelerates our entry into the commercial sleep medicine market and provides a highly functional commercial platform for the potential launch of elixirextin. Which brings me to the second element of our business, elixirextin, our most advanced erextin candidate. We plan to enter Phase III in narcolepsy this quarter, following the completion of a rigorous Phase II program and with recently granted FDA breakthrough therapy designation. We had our end of Phase II meeting with FDA last week, which solidified our registration plan and reaffirmed for us the benefit of consistent interactions with the reviewing division. We believe elixorextin has blockbuster potential and could advance the standard of care in central disorders of hypersomnolim. We're ready for Phase III. We're excited to get going. And third is the opportunity that extends beyond elixorextin in central disorders of hypersomnolim. Erexin-2 receptor agonist candidates represent an entirely unique potential vertical of growth and expansion in multiple disease areas beyond sleep medicine. We identified this early on and were leaders in advancing the frontiers of this pharmacology. Following a review of the financials and the commercial performance and outlook, I'll provide an update on where we are today and our plans to advance these development programs in 2026. So with that, I'll turn it over to Joshua to review our financial performance and expectations. Thank you, Richard.

Alchemize's economic engine is underpinned by a diverse portfolio of commercial products. These revenue streams provide the resources to advance our exciting pipeline of development programs while generating strong cash flow. In 2025, we generated total revenues of nearly $1.5 billion, driven primarily by our proprietary product portfolio, which grew 9% year-over-year, and generated approximately $1.2 billion in net sales. For the year, we recorded Vivitrol net sales of $467.9 million, Aristata net sales of $370 million, and Labalzi net sales of $346.7 million. For the year, we recorded manufacturing and royalty revenues of $291.3 million, dollars, including revenues of $130.5 million from Vumerity and $109.6 million from the long-acting Envega products. Turning to expenses, costs of goods sold were $196.5 million, which compared favorably to $245.3 million for the prior year, primarily reflecting efficiencies following the sale of our Athlon-based manufacturing business last year. R&D expenses were $324 million, compared to $245.3 million in the prior year, reflecting investments in the vibrant Phase II studies of elixirexin across narcolepsy and idiopathic hypersomnia, and first-in-human studies and development efforts for our next erexin-2 receptor agonist candidates, AX4510 and AX7290. SG&A expenses were $701.5 million, compared to $645.2 million in 2024, reflecting the expansion of our psychiatry field organization last year and promotional activities related to lobology, as well as certain legal and transaction-related expenses incurred in 2025. The investments we have made in the expansion of our psychiatry sales force have generated a strong return, and we expect to continue to build on that momentum going forward. Our performance generated strong profitability, resulting in GAAP net income of $241.7 million, EBITDA of $285.6 million, and adjusted EBITDA of $394 million for the year. Turning to our balance sheet, we entered the year in a strong position with $1.3 billion in cash and total investments. In order to fund the acquisition of Avidel, which closed in February 2026, we used approximately $775 million of cash from our balance sheet and entered into term loans totaling $1.525 billion due in 2031. We expect to pay down this debt quickly with cash flows from the business. In 2026, we plan to continue to manage the business with disciplined operational execution to deliver strong profitability and cash flow, while continuing to invest in the opportunities we believe will drive long-term shareholder value. With the Avidel acquisition now closed, our commercial platform is meaningfully strengthened, and we are allocating capital to the highest potential growth drivers across the business, including the advancement of our Erexen portfolio. Our 2026 financial expectations were outlined in the press release issued this morning and reflect the combined organization, including 10.5 months of contributions from Avidal and certain transaction expenses and related accounting adjustments that were outlined in the press release that we issued earlier this month upon closing of the acquisition. Starting with the top one, we expect total revenues for 2026 to be in the range of $1.73 to $1.84 billion, driven primarily by net sales from our proprietary products in the range of $1.52 to $1.6 billion. Todd will provide more specific details on each of our proprietary products, including expected loom rise revenues for the remainder of the year. For manufacturing and royalty revenues, we anticipate 2026 revenues in the range of $210 to $240 million. This outlook reflects the scheduled expiration of certain Zeppelion royalties, which phase out on a country-by-country basis during the second half of the year. For Vumerity, we completed our manufacturing obligations in 2025, and going forward, Vumerity revenues will be solely driven by the royalty on worldwide net sales without any associated costs. Turning to expenses. Cost of goods sold are expected to be in a range of $365 to $385 million, reflecting the impact of purchase price accounting related to Loomrise Inventory. In connection with the closing of the acquisition, Loomrise Inventory held by Avidel was marked to fair market value, resulting in an increase of approximately $180 million over its cost. Approximately $150 million of this amount will be expensed as the inventory is sold in 2026. R&D expenses are expected to be in a range of $445 to $485 million. The increased investment reflects activities of the combined organization and development across the Erexin portfolio. Later this quarter, we plan to initiate the Phase III Brilliance Program for elixerexin in narcolepsy. We expect to complete the recently expanded Phase II study in IH in the fourth quarter. In addition, we will continue to advance our ongoing Phase I work for AX 7290 and AX 4510, with Phase II programs expected to begin in the second half. In terms of the Avidel R&D portfolio, we plan to complete the Phase III program in IH in the first half, and to continue to advance the aloxabate in the early clinic. SG&A expenses are expected to be in the range of $890 to $930 million. This reflects consistent investments in our proprietary commercial portfolio, plus $50 million of transaction costs related to the acquisition of Avidel, which closed earlier in the first quarter, and the incorporation of Avidel's commercial infrastructure supporting Loom Rise for the remainder of the year. In connection with the acquisition, we will also begin to record amortization of intangible assets. In 2026, we expect this will be in a range of $95 to $105 million. Net interest expense for the year is expected to be in a range of $75 to $85 million, and we expect a net tax benefit of approximately $20 million. While GAAP results will be confounded by the accounting for the Avidal acquisition, we We expect to maintain a strong cash flow positive profile in 2026. We expect a gap net loss in the range of $115 to $135 million, reflecting accounting related to the transaction, contrasted by positive EBITDA in the range of $60 to $90 million, and adjusted EBITDA in the range of $370 to $410 million. As a reminder, adjusted EBITDA excludes share-based compensation and transaction-related expenses of $50 million, as well as the non-cash inventory step-up charge of $150 million that I previously mentioned. Adjusted EBITDA is useful in that it is more reflective of cash flow to the business. As we look ahead to support your modeling, I'll provide some additional context on our expectations for the first quarter of the year. In the first quarter of 2026, we expect net sales from our proprietary commercial product portfolio to be in the range of $310 to $330 million. This reflects our expectation of less pronounced inventory fluctuations during the first quarter, typical patient co-pay and deductible reset dynamics, and historical demand patterns, as well as six weeks of contributions from LUMRISE. Royalty and manufacturing revenues will reflect the annual reset of the royalty tiers on the remaining long-acting and vega products and typical Q1 end-market demand patterns. We expect these factors will drive a sequential decrease compared to Q4 2025 to a range of $40 to $45 million. On the expense side, we expect cost of goods sold in the first quarter of 2026 to increase by approximately $20 million sequentially from the fourth quarter, primarily driven by the inventory fair value step-up related to Loom Rise. For the first quarter of 2026, we expect R&D expenses to increase sequentially from Q4 to a range of $110 to $125 million, primarily driven by activities related to the initiation of the Elixiraxin Phase III program in narcolepsy and the integration of Avidel's ongoing R&D activities related to lume rise and valo-oxadate. We expect SG&A expenses in the first quarter to be in the range of $230 to $250 million, reflecting one-time transaction-related costs of approximately $40 million, the incorporation of lume rise commercial activities in the latter half of the quarter, and consistent investment in promotional activities for Lebalvi, Aristata, and Vivitrol. Taken all together, we expect Q1-adjusted EBITDA in the range of $30 to $50 million. As we close out 2025, we do so from a position of financial strength. Our commercial portfolio delivered another year of solid performance, providing a profitable foundation that enables continued investment in our strategic priorities. With the Avidel transaction now closed, we enter 2026 with expanded commercial capabilities and a broader platform from which to grow. Across the organization, we remain focused on operational discipline, efficient capital allocation, and investing in the opportunities we believe will drive long-term value, including the advancement of our Erexen portfolio and the integration of LoomRise into our commercial We are well positioned for the year and committed to delivering shareholder growth. With that, I'll now hand the call to Todd for a review of the commercial portfolio.

Thank you, Joshua. And good morning, everyone. 2025 was another strong year of discipline execution against our commercial strategy. I am pleased that we delivered at the high end of the increased guidance ranges we provided in October for our proprietary products, driven by strong performance across all three brands. For the full year, proprietary product sales totaled $1.18 billion. The commercial investments we made throughout 2025 have already generated strong returns and strengthened our foundation for growth as we enter 2026. Joshua has taken you through the top line of results, so for my remarks, I will focus on the underlying demand trends as well as our strategic priorities and expectations for 2026, starting with Vivitrol. In 2025, Vivitrol net sales were $467.9 million, reflecting 2% growth year-over-year. Vivitrol performance continued to be driven by growth in the alcohol-dependence market, and our ability to capitalize on highly localized market dynamics in certain states and payer systems. As a reminder, Vivitrol results in 2025 included approximately $27 million of gross-to-net favorability that we do not expect to reoccur. As we look ahead to 2026, we expect Vivitrol net sales in the range of $460 to $480 million. We continue to expect Vivitrol to contribute meaningfully to our revenue and profitability profile over the coming years. Turning to our psychiatry franchise, the expansion of our psychiatry sales force in early 2025 was a key strategic initiative designed to enhance our competitive share of voice, and it has been highly successful. With our expanded footprint in place, we significantly increased call frequency to high-priority prescriber targets across both Livaldi and Aristata throughout the year. This improved reach and frequency, combined with strong execution of field, contributed to broader engagement and increased breadth of prescribers for both brands. For the Aristata product family, in 2025, net sales were $370 million, reflecting 7% growth year-over-year. Similar to Vivitrol, during the year, Aristata results included approximately $14 million of growth-to-net favorability, which we do not expect to recur in 2026. Throughout the year, leading indicators of underlying demand remain solid. We continue to see expanding prescriber breadth, healthy persistency, and strong new-to-brand prescriptions, reflecting effective execution by the field team. For the full year 2026, we expect Aristota net sales in the range of $365 to $385 million. In 2025, net sales of Lee Bobby grew 24% year-over-year to $346.7 million. Underlying TRX growth was 24% year-over-year, driven by sustained momentum in new patient starts and continued expansion in prescriber breadth. Throughout the year, improvements in payer access supported broader utilization and reinforced the durability of demand. Gross-to-net adjustments were approximately 29% in 2025. Looking ahead for 2026, we expect evolving net sales in the range of $380 to $400 million, reflecting expectations of strong continued growth and demand and gross to net adjustments widening into the mid-30s starting in Q1 of this year, reflecting a strategic expansion of payer access to support broader adoption. As we look ahead to 2026, we are excited to build on the strong foundation. This year also marks our entry into the commercial sleep medicine market, accelerated by the recently closed acquisition of Avidel, which brings a number of valuable new assets into our business, including Avidel's commercial product, LoomRise, and the organization supporting the brand. First, for a few thoughts on LoomRise. Launched in 2023, LoomRise is a once-at-bedtime sodium oxavate for the treatment of narcolepsy. The features of this product are differentiated and address a significant unmet need in the treatment landscape for narcolepsy. Intended to consolidate the fragmented sleep, sodium oxibates are an important option in the treatment paradigm for narcolepsy, and LUMRISE is the only once-at-bedtime option available, avoiding the need for patients to wake up in the middle of the night for a second dose. The Avidel team has done exceptional work launching this product and we intend to build on this momentum. In 2025, LUMRISE generated approximately $279 million in net sales, with approximately 3,500 patients on LUMRISE therapy as of the end of 2025, a roughly 40% increase in number of patients from the fourth quarter of 2024. With an estimated 50,000 OXABATE-eligible patients with narcolepsy, we believe there is a significant opportunity to continue to expand the number of patients on LUMRISE. We are delighted to welcome the talented commercial team joining us from Avidel, and their integration to our organization is already underway. Their expertise and deep relationships in sleep medicine will be critical to our success with LUMRISE and provide an opportunity for Alkermes to establish a strong presence in this community as we prepare for the potential future launch of Erexin-2 receptor agonists, including our own Elexorexin, which we believe will be transformative in how narcolepsy is managed. We expect strong continued growth uptake of LoomRise as we integrate this commercial team and capabilities. We expect LoomRise total revenue in the range of $350 to $370 million for the full year. For the first six weeks of the year, the Avodale team was off to a strong start and generated revenue of approximately $33 million. Following the recent completion of the acquisition, we expect that in 2026, Alkermes will generate an additional $315 to $335 million in LoomRise net sales for the remainder of the year. We are truly excited about the opportunity for LoomRise, which we believe will continue to play an important role in the treatment paradigm. With the momentum across our existing brands and the addition of LoomRise, we enter 2026 with meaningful opportunities to drive growth and broaden the impact of our commercial business. With that, I'll pass the call back to Rich.

Good. Thank you, Todd. So as you've heard, the financial foundation of the business is strong with a resilient commercial portfolio with important growth potential. 2026 will be a year of execution across the Elixir-Rexton development program. As I mentioned in my opening comment, last week we completed an important milestone in the development program with our end of phase two meeting with FDA. This meeting followed the completion of a Phase II program developed in consultation with the agency. The interaction was detailed and constructive and helped confirm key design elements of the pivotal program. With breakthrough therapy designation and clarity regarding the necessary elements of our registrational program, we're in a strong position to initiate the Phase III later this So here's what it's going to look like. The Global Brilliance Phase III program in narcolepsy will consist of three 12-week, randomized parallel design placebo-controlled studies, two in narcolepsy type 1 and one in narcolepsy type 2. In NT1, each study will include three arms and will enroll approximately 150 patients. The primary endpoint will be change in mean sleep latency on the maintenance of wakefulness test, or MWT, with weekly cataplexy rates and the upward sleepiness scale, or ESS, as key secondary endpoints. The Brilliance NT2 study will be a forearm study, and it's planned to enroll approximately 180 patients, again, with MWT as a primary endpoint and ESS a key secondary. Each program will have as an anchor a one-stately dose that has demonstrated robust efficacy in Phase 2. We expect that the option for one-stately dosing will continue to be a differentiating feature of elixiraxin. We'll also include split dosing regimens designed to drive wakefulness later into the evening hour. Along with the once daily option, split dosing may add another strong element to the product profile. Our first clinical trial from the split dose regimens will be from the ongoing Vibrance III Phase II study in idiopathic hypersomnia. This study is expected to be completed in the fourth quarter. So, for Elixir-Rextin, we have a clear path forward. We're capitalizing on our momentum for Phase II, and we're excited to get started with the Phase III program later this quarter. We also expect to have data from the Revitalize Phase III study of Lumerize in patients with idiopathic hypersomnies in the second quarter. This 14-week randomized withdrawal study enrolled approximately 150 patients. If positive, we expect these data would serve as the basis for an SNDA submission with a potential launch in early 2028 if approved. Now, turning to our other Erexin II receptor agonist development programs, ALK7290 and ALK4510. Targeting the Erexin pathway with well-tolerated small-molecule drugs is a rich area for pharmaceutical development. ALK7290 and ALK4510 are both currently in Phase I studies and healthy volunteers. We expect to advance these candidates into patients this year. We plan to develop ALK7290 for ADHD, moving quickly to generate proof-of-concept data in patients this year. ADHD is characterized by persistent difficulty in maintaining attention and concentration, and it's frequently accompanied by impulsive behavior. Despite the availability of stimulant and non-stimulant treatment options, there's a significant unmet need in this space, and an erection agonist targeting the wakefulness and attention circuitry could be a major advance. With approximately 15.5 million adults and 6.5 million children in the U.S. with a current ADHD diagnosis, this represents a significant potential opportunity. AUC 7290 has demonstrated improved measures of attention and task engagement and decreased behavioral impulsivity in validated preclinical models. We've already shared these compelling data with you. Our single and multiple ascending dose cohorts and healthy volunteers are underway. As we progress through the multiple ascending dose cohorts, we plan to initiate a multi-dose Phase I-B study evaluating safety, tolerability, and efficacy in adult patients with ADHD. We expect data from this translational study in the second half of the year. In parallel, we're planning for success and expect to initiate a Phase II study in the second half of the year. We plan to develop AX4510 for fatigue associated with neurodegenerative disorders, starting with fatigue associated with multiple sclerosis and Parkinson's disease. Fatigue is one of the most common and burdensome symptoms affecting these patients. Patient populations here are significant, with approximately 1 million patients in the U.S. with MS and another million with Parkinson's. Aux4510 went into its healthy volunteer Phase I study last year and has completed several single and multiple ascending dose cohorts. We're planning to initiate a multi-dose Phase IIa study this year evaluating safety, tolerability, and efficacy, and fatigue associated with MS and Parkinson's. We see this as the beginning of a much more extensive of fatigue in the future. We've built a strong foundation for growth and for value creation, both in the near term and for the future. With Alexorexin moving to Phase III, AX7290 and 4510 moving to Phase II, LumeRise in Phase III for IH, and Valoxabate, a sodium-free once-nightly Oxabate candidate early in the clinic, this company has an unusual combination of assets, a profitable neuroscience business, a late-stage potential blockbuster product and development, and leadership in one of the most exciting new areas of neuroscience. So lastly, this morning we announced that I will at long last pass the CEO torch to Blair Jackson, who's our current chief operating officer and my valued colleague for many years. We'll make the transition official this summer and I will continue as chairman. The timing is good. The company is in the strongest position it has ever been in my 35 years, for reasons that we've summarized today. Now is not the time for reflection. We've got too much important work to do over the next few months. But I will say what many of you know, which is that I'm extremely proud of this company, its people, and all that we've accomplished. Thousands of patients have benefited from our medicine, developed in a culture defined by scientific curiosity, integrity, and deep commitment to patients and families. I have great confidence that we'll continue to build on the momentum we have right now. Alchemist is on a whole new growth path. It took us some time to get here, but we did, and the road ahead looks extraordinarily promising. So with that, I'll turn the call over to Sandy for the Q&A.

Okay, thank you, Richard. We'll now open the call for Q&A, please.

Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. Your confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants been choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible this morning, we ask that you each keep to one question. Thank you. Our first question comes from the line of Joseph Spohm with TD Cowan. Please proceed with your question.

Hi there. Good morning. Thank you for taking my question, and always great to work together, Rich, so best of luck to both of you on this next step. Maybe when thinking about the phase three trial design and start going into the split dosing for some of these candidates, how should we think about the AE profile associated with that? Obviously hoping to boost some efficacy. Is that also going to reduce AEs because you're splitting up the dose, or would you potentially also drive up AEs? How are you thinking about that?

Morning, George, Rich. First of all, I think the most important at the highest level is that the data so far for these Erectin-2 receptor agonists in treatment narcolepsy, they're generally quite well-tolerated and very safe. So the baseline AE profile is quite favorable. The way we model the split doses is in order to drive those later hours of wakefulness for those patients who want an extended duration of wakefulness with a very similar AE profile. So I think that's the virtue of running such a big phase two study where we can model the exposure wakefulness profile that we can select that split dose in order to maximize the later durations while minimizing side effects.

Thank you. Our next question comes from the line of Lena Timashev with RBC Capital Markets. Please proceed with your question.

Hey, guys. Thanks for taking my question, and congrats, Richard, on a great career. I guess I wanted to ask on, now that the Avidel deal is closed, whether you can speak a little more about the potential synergies across the sales force between the psychiatry sales force and the potential fleet sales force. There's overlap in prescribers that can help fully both businesses and just generally how the onboarding of the Lumerize team is interesting.

Yeah, absolutely. We are really excited about the integration of the Avidel commercial team. As I said in my prepared remarks, that team has done just an exceptional job, and they're off to a fast start this year. The beauty of this strategic integration is it's our first step in the sleep medicine market. Right now, we don't see a lot of overlap between our current psychiatry sales force and the sleep medicine sales force. And so there's a beauty in that, that we can keep our psychiatry team excessively focused right now on driving LaBalve and Aristata. And so we think there will be some synergies eventually when we get to the place where we're prepared to launch Elixir Rexton. And at that time we'll be building out that sales force to maximize the opportunity for both Loom Rides and Elixir Rexton.

Thank you. Our next question comes from the line of June Lee with Truist Securities. Please proceed with your question.

Thanks for the updates and for taking your questions. I think I understand the medical rationale for narcolepsy patients taking both occipates and orexin agonists, but what sorts of evidence would you need to generate to convince the payers to reimburse for both premium price drugs, especially since the patients from both fibrins 1 and 2 seem to be doing well just on orexin agonists in the long-term extension after being washed out of occipates? Just trying to understand why orexin agonists wouldn't cannibalize the occipate market. Thank you.

Yeah, it's a really good question. This is Rich. I think that the way we think about it is that the erection agonists are working on the wakefulness side of the equation, and that may indeed be sufficient for many, many As you know, most patients aren't on Oxabates right now, but the ones who are on Oxabates are on them because of what they do on the other half of the day, which is the fragmented sleep piece of it. So we think there will be a cohort of patients for whom both sides of the equation are going to be important, their daytime wakefulness as well as consolidating the fragment of sleep at night. It remains to be seen at the full range of doses what the complete effect is of an erexin 2 receptor agonist on reconsolidating nighttime sleep. But we know from talking to patients over the last few years, there's a dedicated cadre of patients for whom the nighttime benefits of OxyBase will continue to be valuable and We'll be the only company so far that has agents in both camps. So we'll be motivated to actually generate some data for payers explaining for that rarefied cohort of patients why both medicines might be the most effective way of treating their disease.

Thank you.

Thank you. Our next question comes from the line of Luke Herman with Baird. Please proceed with your question.

Hi, team. I just wanted to extend my congratulations to both Richard and Blair, and thanks for taking the question. So, thinking about the LUMRIS Phase III and IH, can you help us understand your internal bar for ESS that would give you confidence ahead of a potential launch and maybe the degree of importance of key secondaries in the eyes of prescribers?

This is Rich. I think that the IH study mirrors very much what was done for the previous Oxabate program that was approved by the FDA. So when we acquired Avidel, we picked up this program essentially at the end of its development phase. And as we did the diligence on it, what we found is that the randomized withdrawal study mimics exactly what was happening with the I-Wave. So our expectation is that when we see the data in Q2, it will see a very similar profile for the once-nightly medicine. With respect to key secondaries, I don't think I have the answer to that question right now, because I just don't have that protocol committed to memory yet. But we can get back to you on that.

Yeah, I'll just add to that. Yeah, so the primary is ESS, as Rich said, with a randomized withdrawal study. So our expectation is that it would mirror what we've seen in the market already with ZIWAVE. Key secondaries are PGIC and IHSS, and our expectations, that would be similar to what we've seen for the current product in the market. I'll just reinforce that it's really a significant opportunity here. As you kind of heard us in the past, the eligible population is about 40,000, our estimate, in the U.S., and it's a very low penetration right now. With only one approved product, it's penetrated about 10% in the marketplace. So this is something that we are looking forward to.

Thank you. Our next question comes online of Rudy Lee with Wolf Research. Please proceed with your question.

Thanks for taking my question. Congratulations, Brian, for the new role. I have a question regarding the upcoming Phase III. So apparently we're on track to start the trial for NT1 and NT2. I'm just curious, have you discussed key factor for a Phase III trial in IH with FDA yet? Can you potentially start the trial earlier with the reading to wait for the Vibrant III Good morning.

Yeah, I think for IH, we'll do exactly what we did for narcolepsy, which is get the Phase two data from the Vibrant study, have a formal end of phase two meeting with FDA, and map out and agree on the phase three program. So, we'll wait for those data to come later this year before we initiate that meeting with FDA.

Just a quick follow-up, like, what's your current understanding on the dynamic here, like NT1 versus NT2 and NIH?

The dynamic from a market perspective or from a regulatory perspective? Yeah. I think, as Todd just said, the IH opportunity is a really interesting one, because if you simply look at claims data, you would say that there's about 40,000 patients who are being treated for idiopathic hypersomnia today. But we think that that pretty significantly underestimates the actual clinical need for a medicine that would deal with hypersomalance that is not diagnosed as narcolepsy. So while we have a better sense of the narcolepsy numbers, i.e., about 200,000 patients in the U.S. prevalence, about 100,000 being diagnosed, about 80,000 being treated. We have a much more vague understanding of how big the IH market may be. So as we've talked about before, the narcolepsy market by itself represents a very significant commercial opportunity given the unmet needs in that space. And IH, you know, I think that that's the next step in the evolution of the Alexa-Rexin story. So we'll wait for the Phase 2 data, conduct the Phase 3, and then hopefully launch into that as well.

Yeah. Super helpful. Thanks.

Thank you. Our next question comes from the line of Ami Fadia with Needham & Company. Please proceed with your question.

Hi. Thanks for taking my question. With LUMRISE now in your portfolio, what are your plans to study elixir-extin along with and Oxabate together to explore the synergistic effect of a patient being treated with both outside of, you know, the information that we already have based on anecdotal evidence.

Good morning, Ami. Yeah, and I just was saying in the previous question, I think that there's a potential benefit for certain patients of dealing with excessive daytime sleepiness with a wakefulness-promoting agent like elixir-rextrin, as well as consolidating fragmented nighttime sleep with an oxabate. That will not be the modal treatment, i.e., I think most patients will not opt for that polypharmacy, but for those patients that derive benefit from both sides of the equation, I think it could be a very, very powerful treatment approach. I can tell you, even during the dependency of the Phase II studies, we were hearing from investigators an interest in testing both agents together in certain patients, and we'll be the only company that have agents in both camps. And so from our perspective, we see it less as a registrational pathway as more of an evidence-building pathway for the purpose of reimbursement. So I think you can expect to see more from us on that front in the weeks ahead.

Thank you.

Thank you. Our next question comes from the line of David Amselm with Piper Sandler. Please proceed with your question.

Hi, good morning. This is Alice on for David. Thanks for taking our question. So now that you have LoomRise under your control, how are you thinking about the field force for the product, also bearing in mind that there will be another market entrant by year end? And if an expansion is on the table, are you thinking about it more from a breadth or a depth perspective? Thank you.

Yeah, absolutely. So right now we feel like the sales force is right-sized to really maximize the opportunity. I think context is important here. We've done a lot of work in this area. You know, our estimate is there's about 50,000 Oxabate eligible patients in the marketplace right now, and there's a dynamic segment of about 9,000 patients that are cycling. And so that's really the target for Loomerize. That's what the sales force has really lined up against is really there's Oxabate prescribers to maximize that dynamic segment. We're seeing very encouraging trends, obviously. The team made some investments late last year with expanding the sales force slightly. Also some commercial investments within our patient services area and we're seeing benefits from that. So right now we believe that we are right-sized. As Rich said, you know, we think this is a durable market. and so that patients will continue on Oxabates. We'll have to see how the year plays out with competitive entrants, but we clearly see this as a uniquely positioned product, and we think we're right-sized at this point.

Thank you. Our next question comes from the line of Jason Gerberi with Bank of America. Please proceed with your question.

Hey, guys. Thanks for taking my questions. My question is just how to think about kind kind of SG&A, underlying SG&A spend beyond 2026. And if you can outline in the 2026 guide for the full year, sort of what's the embedded one-time transaction costs? Because as I look ahead beyond 2026, I assume that there's redundant G&A spend between Avidel and Alkermes, and then with the Vivitrol LOE in 2027, I imagine there's opportunity to actually harvest that brand for profit, unless the decision internally is to just reallocate that spend towards other brands with longer tails. So kind of curious if you can just outline some of those puts and takes in the SG&A kind of beyond 2026.

Yeah, let me talk about SG&A. With respect to 2026, what you have impacting SG&A are a couple things. You've got about $50 million in one-time transaction costs that are impacting that So clearly, those won't carry over into future periods. What you also have in 2026 compared to 2025, obviously, is taking on the commercial investments associated with Loom Rise and, you know, typical increases that you might see in labor and You know, frankly, if you exclude the impact of the transaction costs and the acquisition of Avidel, essentially on our base business, our base company, SG&A is black. And so, you know, thinking about future periods, so 2020 and beyond, certainly we'll look to control spending and be disciplined on that front. And we will look to determine whether or not we've got some synergies and opportunities to reallocate some of those costs of our business as it evolves to increasing investment if necessary for elixirexin and for our sleep medicine.

Thank you. Our next question comes in line of Ash Verma with UBS. Please proceed with your question.

Hi, thanks for taking my question, and congrats to both Richard and Blair. So just on LoomRise, there's a bit of a focus on the impact from the first generation full genetic market formation, some of the initial list prices coming in much above where the expectation was. And I know Jazz also talked about this last night, impact to Xyvave in the second half. How are you thinking about that for LoomRise, which is one slightly, do you think that similar dynamic, what would apply to, like, an indirect tycine pressure anxiety would also replicate on LUMRIZE, or does it have some sort of an advantage that the competitor might not have? Thanks.

Yeah, Ash, I'll take that. We clearly think there's an advantage for LUMRIZE positioning. Again, it's the only once-nightly oxabate, which is significant value to patients in HCP. So the positioning is clear. So strategically we do believe there's a significant advantage. In terms of just the dynamics of the market right now, I think just for context, you know, with generic, multi-source generics coming to the market, that's very specific to Zyram, very specific there. That is not specific to Lumerize. These products are not interchangeable. So our view right now and what we see in the marketplace with our discussions with pairs is payer access is strong. Over 90% of commercial payers or commercial patients have access to LUMRI. So we're not seeing any material changes at this point. Obviously, we're going to have to see how this plays out. Likely, if there's any impact, it would probably be the second half of the year or a little bit later. And so we're going to watch that very closely. What we do know, what we hear from, you know, from our sleep specialists is that they're committed to making sure that patients get access to Loom Rise. Their, you know, sleep centers have the capabilities to support navigating market access hurdles, and they're committed to doing that. So, again, we don't see any material changes at the beginning of the year. We'll see how it plays out for the second half of the year.

Thank you. Our next question comes in the line of Mark Goodman with Leering Partners. Please proceed with your question.

Hey, good morning. Can you talk about Valoloxabate that you inherited in the acquisition, just the development plan and how excited you are about this product?

You view it as a replacement strategy for Loom Rise eventually, and just give us a sense of when you're thinking, you know, what do you have to do to get it to market and how fast can you get it to market?

Claire, do you want to comment on that one?

Yeah, hi, Marcus Blair. It's a good question. So actually, valoxabate is a really interesting asset that came over as part of the Avidel transaction. It has an opportunity to play in really the low to no sodium space. And I think what we're looking to do there is try to move the program forward as quickly as possible, trying to really look through the PK profile of that and leverage some of our formulation capabilities to advance that rapidly through the clinic. So it's too early to say whether this would be a future replacement to LUMRIZE or an addition into the portfolio. We'll just see how the data pays out over the next year or so.

I mean, do you think you're going to have to do a full development plan, or is this bridging study you can do to get it to market?

That totally depends on the data that we get early. If we're able to match bioequivalents and things like that, then there's a much rapid path forward. If we need to do some additional studies, we'll do that. But this is an area we know really well, as you know, we're a formulation expert and we've navigated these paths before. So we're early stages here, but it's now in our hands and we're moving forward aggressively. Thanks.

Thank you. Our next question comes from the line of Akash Tuarez with Jefferies. Please proceed with your question.

Hi, this is Anna Stajan for Akash. Just a couple of questions about your ADHD study. are you able to share any more details about that, and are you considering potentially enriching the population for any specific ADHD phenotype?

Yes, Rich. No, we're not going to enrich for any particular phenotype or chronotype. What we're going to do is what we're excited about for ADHD is very similar in many ways to what we did in arcolepsy in that we think in a reasonably short period of time in a reasonably small cohort of patients, we should be able to discern dose response and efficacy signal. So we're going to move quickly into that translational study.

Thank you. Our next question comes from the line of Ben Burnett with Wells Fargo. Please proceed with your question.

Hey, thank you. I wanted to ask about the split dosing program and split dosing the LRXN program. Just color on the protocol, like when is the second dose taken? And I guess is it, given that this is a split dose, is it possible you could get away from having any sort of food restrictions?

So this is Rich. I think that we won't give a whole lot of specificity on the split dose strategy other than, say, what its objective is, which is to drive additional wakefulness in the later hours of the day for patients who might want to extend that wakefulness duration. What we're finding is that people are experiencing a quality of wakefulness that they've not had before, and they're very interested in certain situations of having that persist deeper into the hours of the evening. So because of the modeling we've been able to do through our Phase II program, we have a really good sense of how to administer two different doses administered in time to both extend that wakefulness and also minimize associated side effects. So that's proprietary information. And so we're going to keep that under wraps as long as we can. And I think that that's going to, at the end of the day, if we can have sort of an anchor once daily dose available to all patients, as well as this option for split doses, I think that will differentiate the product significantly commercially.

Thank you. Our next question comes from the line of Umar Rafat with Ibercore ISI. Please proceed with your question.

Hi, guys. Thanks for taking my question. First, congratulations, Blair, on the expanded role. But my question, Richard, for you is, I've been tracking this from the days of 8700 and 3831, and I feel like pipeline finally is in a spot that it's never been in Alchemy's history, so I'm just curious about the timing of your decision to give up the CEO role while saying chairman. And secondly, on your phase three design strategy that you laid out, could you remind us if it includes split dosing both an NT1 and an NT2? Thank you very much.

Morning, Umar. My theory all along has been the time to pass the baton, and recognize I've been doing this forever, is when the company is just in a demonstrably strong position. The past few years, we've had to basically change the business model from a royalty-based company based on formulation technology into a proprietary products company. And the last step in that transformation was getting our hands on what could be a potential blockbuster drug, and it's sequelae. And that's where we are right now. So, you know, Blair's been my partner through this for a long time. He's actually been at the helm for much of the transformation within the company. And so it's a very logical time to do this. And, you know, I'll say as the chairman, I'm extremely proud of where we are, and I think we're on this really exciting new trajectory, which I'm going to be part of. But on the phase three, we are going to include split doses in the NT1. And the history of that is through the NT1 study, notwithstanding the fact that we had this really beautiful efficacy once daily that we presented at World Sleep, along the way we heard from clinicians, we have patients who want to extend this duration into the evening. So originally, our thought was that we would do this as a life cycle management post-first approval, you know, adding what we were calling at the time a top-up dose. But when we saw the NT2 data, where it was so clear that for most patients or many patients, they would benefit from a second dose to lift those later time points, we decided to incorporate it into the registrational program. And I think that turned out to be a real blessing for the overall program, because I think the The competitive dynamic is going to swing significantly in our favor if we're successful with both the once daily and the split dose regimens.

Thank you, Richard.

Thank you. Our next question comes from the line of David Huyne with Deutsche Bank. Please proceed with your question.

Hi there. Thanks for taking my questions, and congrats to both you, Richard, and Blair. So with Takeda potentially having a Fidupa date for ovoparexin in Q3 and then potentially being on the market by the end of the year, What learnings do you think you could take away from their commercial launch, if any, and would their pricing inform how you think about the value proposition of Elixir Exxon? Thanks so much.

Hey, David, I'll start, and then I'll have to turn over to Todd. But from my perspective, I think the most interesting unknown is going to be pricing, because I think that's going to set the tone for the market's receptivity to the value that's being created with these NT1 drugs. So note that they're going to come to market in NT1. And in NT1, this is a true orphan indication where we have a disease-modifying therapy conferring benefits from a wakefulness perspective that have not been seen before in this patient population. So I think that they're entering the market with a premium product with this degree of medical benefit to patients is a great thing for us because I think that we come second for successful with a much more broad product offering. But, Todd, your perspective.

Absolutely, yeah. I would say, you know, there's the basic things that will be interesting, which is just the positioning of a product like this. Whether it's really a position for market expansion or for switch, that's clearly something that we'll be watching. But I think Rich really put on the really key thing that we're going to be watching, which is really the pricing dynamic in the market. And that's going to be very interesting for us. It'll be something for us to pay close attention to, and it will absolutely fold into what our pricing strategy, market access strategy looks like.

Thank you. Our next question comes from the line of Douglas Soh with H.C. Please proceed with your question.

Hi, good morning. Thank you very much, and Richard, congrats on, you know, your accomplishments at the We'll miss you. Just a question on 7290 and ADHD. If I remember from the presentations that you gave at the Erexen Day in 2024, you showed preclinical data showing a profile that looked better than the non-stimulant ADHD drugs on the market right now. I guess I'm curious, is that the benchmark, or do you have a sense how ultimately this might compare to the stimulants on the market, which has continued to have very significant disruption on the market and real challenges for availability? So I think that there would be sort of demand for better non-stimulants.

Yeah, good morning. I think what struck us about that preclinical program was that I think our going-in hypothesis was that the erexin pathway might be a really nice complement to the non-stimulant drugs. And then in those model systems, the erexin system by itself has monotherapy. It looks incredibly important. There's been some recent publications about the actual effects of stimulants on ADHD, what the mechanistic basis of that is. And if you map that on to what's happened with the erexin pathway, The erection pathway, just anatomically and neurobiologically, it's affecting many of these domains that are relevant to the idea of attention and focus and vigilance and things like that. So I don't think we necessarily have an a priori sense of how to compare it to a stimulant or compare it to a non-stimulant. What we think is that the phenomenon that we'll see in the clinic could be very specific to that of an erection-to-receptor agonist in this disease setting. So we'll be keeping our eyes wide open for the clinical signs that emerge from the study, but we go in with some very strong preclinical expectations that will have a benefit. Blair, I don't know if you have any additional thoughts on it.

No, I guess just to add, I think as you look at the preclinical data, one of the things we saw in this five-choice serial reaction test, which is a highly translatable model to the clinic, is that we saw about equivalent efficacy across sort of the stimulants versus the orexin. And so we think, as to Rich's point, I think we're very confident about seeing a signal in the next study, and we'll define that further as we get through the Phase II program.

And if I can, just a quick follow-up. Do you think that you might have sort of a different effect on different domains of ADHD than stimulants, as well as sort of the currently marketed non-stimulants? Thank you.

You know, I think it's too early to tell. I think right now our best data is that early test that I mentioned earlier, and we actually had efficacy across all the domains in ADHD both on concentration and impulsivity. So you know, we're going to be testing all of those as part of this program.

Okay, great. Thank you very much.

Thank you. Our next question comes from the line of Yugi Ear with Mizuho Security. Please proceed with your question.

Thanks, guys. Congrats, Rich, to your accomplishment. And, Pilar, congrats on your next role. So maybe just help us understand, given that there's potential generic entry for virtual in 2027, how you're thinking about the dynamic, and do you think, as far as you know, whether there's – whether TEVA has capability to manufacture generics at all at this point.

Yeah, absolutely. So, you know, our plan right now is to continue the growth and expansion of the Vitrol, similar to what we did in 25 and in 26. So we see, again, strong demand for 26. We're preparing for multiple different scenarios that could occur in 2027. You know, all the research that we've done continues to validate that this is a difficult product to commercialize, but it's really difficult to manufacture. So we know that, you know, as the company that's had this for so many years. And so we'll have to see if there's a capability to do that, what the supply and the market looks like. We're prepared for that. And if we do get competition in 2027, what that looks like, we'll be prepared to compete. but we'll also be prepared to execute a range of scenarios which could include pulsing our spend differently.

Thank you. Our final question this morning comes from the line of Paul with Stiefel. Please proceed with your question.

Hey, this is Julian on for Paul, and let me offer my congratulations on behalf of Paul and the rest of the team at Stiefel to you, Rich and Blair. Just a couple really quick ones. When can we expect more detailed data on NT2? I'm not sure if you've disclosed that. Is the open-label extension still ongoing and when can we expect to get that data? And then for when you're talking about the Brilliance Program, Rich, I think you mentioned that the primary endpoint in the MT2 Phase 3 study is going to be MWT. I know it was a dual primary for the Phase 2. So, just curious, you know, thinking behind that or, you know, if it was always the plan to go ahead with MWT.

You're welcome. We've submitted the NT2 results for a series of presentations at SLEEP in Baltimore in June, so we should hear fairly soon. I expect those to be accepted, so you'll see more of the complete data. You've seen a lot of it, but I think what I'm really interested, and we've been talking internally about it, is trying to even bring some more color to the quality and efficacy that you see in the NT2 population, because I think looking at average MWT or average ESS doesn't really tell the whole story of the clinical benefit and the benefit of Erexin-2 receptor agonists in that more heterogeneous patient population. I think that in the Phase III NT1, NT2 studies, we're referring to more of the traditional hierarchy. Now that we have the data from Phase II and we can model what we're comfortable with, And I'm looking around the table to make sure I'm not speaking on this. We'll have just a primary analysis on MWT with key secondary, including ESF.

Thank you. Ladies and gentlemen, this concludes our question and answer session. I'll turn the floor back to Sandy for final comments before we close out.

Thank you, everyone, for joining us on the call this morning and for the questions. Please don't hesitate to reach out to us at the company. If you have any follow-up questions, we can be helpful with.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.