Conference Transcript - RZLT 2026-06-04

Maury Raycroft, Analyst — Jefferies

Hi, everyone. My name is Maury Raycroft, and I'm one of the biotech analysts at Jefferies. I'd like to welcome Nevin Charles-Alam, the founder and CEO of Resolute. It's a late-stage ultra-rare disease company focused on treating refractory hypoglycemia caused by congenital or any acquired form of hyperinsulinism. Thanks so much for joining us today, Nevin. We're going to do a fireside chat format. So maybe starting off, you guys had a press release, multiple titles at the upcoming endo meeting next week, June 13th through 16th, which largely build on the prior Sunrise data alongside additional analyses and real-world THI data sets. What specific new insight should investors expect that could further clarify the efficacy profile across THI and tumor HI?

Nevan Charles Elam, CEO

Well, first, Maury, thanks for having me, as usual. It's always good to be here and have a bit of a chat about the status of our company. And you're right, this week we did make an announcement regarding interim data for our tumor HI study. And that announcement, we think, was impactful insofar as the data we released demonstrates substantial activity of our drug, or SOTOTUG in this patient population, where we're enrolling 16 patients, and we're halfway enrolled. And what we've seen is that we have one patient that's newly enrolled, but six out of eight have met the criteria for the primary endpoint, which is fantastic. And it largely mirrors what we've seen in the expanded access program as well over the last few years. So I think that provides a lot of reassurance to investors and others in terms of the activity of the drug, as well as the potential efficacy that we would expect overall. A lot of the information we'll be showing at INDO is further analysis across both tumor HI as well as congenital HI, and some of the other details that we've shared at other presentations and in other formats as well. So again, I think it's the body of evidence that we're all looking at in terms of understanding the activity of the drug and expectations for what this drug can mean across the different

Maury Raycroft, Analyst — Jefferies

patient populations. Yeah, I think that's a great overview. And for your ongoing phase three study here, the Uplift study in tumor hyperinsulinism, you've got top line data from approximately 16 patients expected second half of this year. You just had the interim data update on Tuesday. Can you walk through the key takeaways and the totality of the interim and expanded access program data and how that de-risks the pivotal readout?

Nevan Charles Elam, CEO

Dr. Well, we think it definitely de-risks the program in case there was any question about, again, the efficacy of ERSO in the patient population. What we need to demonstrate out of the 16 is at least 50 percent of the 16 can achieve a 50 percent reduction in glucose infusion. And clearly, we're tracking very far in advance of that even in the first half of the patients enrolled. So from an expectation perspective, I think it emboldens us to finalize the study to complete enrollment here in the second half of the year, and hopefully to have a good top line announcement in terms of the results and the impact to hit the actual endpoint in the substantial number of patients.

Maury Raycroft, Analyst — Jefferies

Yeah. Yeah, it makes sense. And just kind of digging into the data a little bit. So the initial EAP data set showed about 85% achieving greater than 50% reduction in GIR by eight weeks, and that was in six of seven evaluable patients. So you're tracking much better than the Pivotal's 56% stat-sig bar. How are you setting expectations for the study

Nevan Charles Elam, CEO

completion? Yeah, I mean, we are definitely tracking very well, I think, as we've seen in the EAP setting. And even in the first eight patients here, this is a very serious disease. And it's unfortunate, even in our current first eight, we had one patient with draw study consent, late stage colon cancer, and to actually elect to receive hospice care. And that patient died a week later. And that just underscores the severity and what we've seen in the EAP as well, including in that data set you're referring to that we've shared. So I think overall, again, we're going to look to enroll the full 16, even if from a stat-sig perspective we get to the 9 or 10 patients sooner. We will still look to enroll the full 16 and then look to engage with the agency and look to advance the program onto the next stage.

Maury Raycroft, Analyst — Jefferies

Got it. Makes sense. And for the top-line data, second half of this year from the study, What should we expect beyond the primary endpoint? Are you planning to incorporate functional clinical outcomes, including hospital discharge rates?

Nevan Charles Elam, CEO

We will. So it'll be time to discontinuation of glucose infusion. We'll look at the hospital time to discharge from the hospital for sure. We'll be part of it. And we'll look at quality of life as well and how the patients are doing. And all of that will be reported in summary format.

Maury Raycroft, Analyst — Jefferies

Got it. Okay. And one doctor highlighted quality of life improvements and reduction in hospitalization is critical for payer reimbursement. What are you using to assess quality of life and what

Nevan Charles Elam, CEO

are you seeing here? Well, I think, you know, quality of life, we're seeing, this is very, in a very impactful drug at a very pivotal time in the patient's journey of their overall cancer and their treatment so this is about as dramatic as it gets as we see and what we hear from patients insofar as if often if these patients are hospitalized on the glucose infusion there really is not much else that can be done particularly in a malignant setting as they cannot receive their radioactive label therapies and often it results into discharge to hospice and And this makes the difference. So the quality of life outcomes are very, very real, very direct. And we don't believe from a payer perspective that, based on all the work that we have done, that there's a ton that needs to be demonstrated because the evidence is clear. We're focused on refractory hypoglycemia. So these are the very severe patients that have failed all other therapies that we can, medical management, as well as surgery, debulking. all that's been done, and yet they remain severely hypoglycemic. So we think from a medical necessity perspective, we don't expect much pushback at all from payers.

Maury Raycroft, Analyst — Jefferies

Yeah. Okay. Makes sense. And I wonder if you can comment on the tumor HI pivotal enrollment trajectory, the screen failure rate, and when you expect to complete enrollment, and how does your EAP and clinical experience inform the ability to identify patients and ultimately the market opportunity?

Nevan Charles Elam, CEO

So I think there are two different things. It's the market opportunity as well as the clinical study that we're conducting because we are conducting the study largely in the hospital environment with the sickest possible patients. These patients are not in a queue waiting for you, as there often is the case in clinical studies. These patients appear, and they may appear at any site across the country, and one never knows. So that's been our experience in the EAP, And we've treated in the EAP over a dozen patients across the country, and there's no specificity of where those patients will appear because, of course, cancer is not regional. It affects folks all over. And that's what we're seeing in our enrollment for the first eight, and we would expect that for the second eight as well here in the Uplift study. So our expectation, based on what we've seen in enrollment, is that we remain confident that we'll be able to complete the study this year.

Maury Raycroft, Analyst — Jefferies

Got it. Okay. and can you briefly walk through pricing in some scenarios and higher projecting this market

Nevan Charles Elam, CEO

opportunity from a pricing perspective you know our therapy again across hyperinsulinism so as a ultra rare disease will be based on weight-based dosing and for whether it's a child in the congenital setting or in acquired forms in the adult setting and so from the pricing perspective given that it is weight-based dosing, we think that we'll be able to command a fairly robust price for tumor patients and for the need that's being unmet. And the opportunity set is pretty rich in terms of the overall market opportunity. Again, when we think about it as an ultra-rare indication, there's two buckets, one being insulinoma patients. And of the, you know, 15,000 or so that are diagnosed every year. 3,000 have malignancies than are and can be a challenge to manage and of that subset good 1200 are potentially addressable patients and we're focused at the national cancer centers at least at the initial launch and so when we do the sub-segmentation conservatively we look at about 750 patients on the insulinoma side and of those 750 you know again this is late stage disease and And so we factor in a conservative thought of about two years of potential duration of And that puts us at about 1,500 patients. And then on the other side are the non-iolate cell tumors. And that is a much larger pool, a whole variety of different tumors that it's not insulin that's implicated by IGF-2, generally speaking, in solid mass tumors like hepatosol or carcinoma. and of the world and universe of these tumors, there are about 6,000 that are very serious and 40% of those are malignant and refractory that often are a challenge to be managed. And of that subset, about 1,500 of those patients we would anticipate as the initial target at National Cancer Institute, so about the same number from an insulinoma perspective and we assume about a one-year treatment duration. So altogether, it's about 3,000 patients, just as our initial push into this market. And again, at a very significant price point per patient per year.

Maury Raycroft, Analyst — Jefferies

Right. And that's an incidence population, 3,000. And how do you think about that price point? I guess, is there, what's the latest you're saying on that?

Nevan Charles Elam, CEO

I think what we're seeing is if we bracket at the pediatric level, anywhere from a four to six hundred thousand dollar per patient per range in rare disease what we've seen in the pediatric and then based on the weight based dosing you're well into the high hundreds of thousands of dollars if not into the seven figures for the cancer patients yeah yeah makes sense maybe

Maury Raycroft, Analyst — Jefferies

just going back to the patient identification so you mentioned the the National Cancer Centers I guess once you have therapy available for for these centers they'll they'll know how to reach out to you or is that kind of the throwaway to think

Nevan Charles Elam, CEO

about it or yeah i think it's a good way to think about there's a lot of education and a lot of awareness and in market shaping in terms of the severity of hypoglycemia and the unmet need and so we're doing a lot of that work right now across the country and there's a lot of interest we're seeing on the medical from the medical oncologists as well as the adult endos in terms of how to treat and think about serious and refractory hypoglycemia yeah okay and

Maury Raycroft, Analyst — Jefferies

your phase 3 CHI study missed on the primary endpoint and you stated publicly that both you and the FDA believe that the primary endpoint is a confounder based on upon the potential for functional unblinding and now it seems unusual that FDA has not asked you to do another study instead wants to independently review the full phase 3 data in the open label extension data To start off, did you submit the CHI dataset to the FDA for their review?

Nevan Charles Elam, CEO

That's imminent. So we'll be very soon actually submitting that dataset, and I think, just backing up, I think it's very encouraging what we've seen from the FDA, and I know this has appeared in the press as well, the way they are responding to what happened with functional unblinding, which we definitely believe occurred in the Sunrise study, and their recognition of the primary endpoint being a confounder, and their willingness and interest in looking at things like what's happening in the open label extension, as well as the data that we've also partially shared publicly, which is the CGM data, and looking at the difference in the treatment arms and in the placebo group, where we believe it's very demonstrable that there is a clinically meaningful benefit in a high unmet need which would support advancement of the program without the need to do necessarily another study and so given the the agency's engagement and willingness to make the extra effort with us to we will submit the data and give them a chance to take a look at the data sets and apply their own sensitivity analysis and their own scrutiny from from a statistics perspective and hopefully agree with us And, in fact, that there is, we can actually point to CGM in particular and look to then advance the program.

Maury Raycroft, Analyst — Jefferies

And so when do you expect to submit that to FDA?

Nevan Charles Elam, CEO

We'll submit it this month. It'll be submitted this month. And then, you know, based on the guidance from the agency, they will take the time over the summer, you know, approximately 60 days or so. They may have questions about the data, but we'll work with them. And then from there, we would expect later in the fall to have an answer for all of us in terms of what the next steps for the program may be.

Maury Raycroft, Analyst — Jefferies

So it should be some sort of an update. Your guidance is second half of this year, but you think by fall time, that's kind of...

Nevan Charles Elam, CEO

Yeah, it should be. It should be in the fall time.

Maury Raycroft, Analyst — Jefferies

And do you anticipate another breakthrough therapy designation meeting with FDA, or will the agency provide written feedback on the path forward following the internal review?

Nevan Charles Elam, CEO

Well, that's another interesting aspect of our engagement with the agency is, you know, we really are, we'll file the data under the IND, and it's not, a meeting is not required. We always could request a meeting with our breakthrough therapy designation, but the agency has expressed a willingness and an interest in actually just working with us. If they have questions, they can respond to us, and then ultimately we would expect a letter or a conclusion in terms of what the next steps for the program would be.

Maury Raycroft, Analyst — Jefferies

And is it largely the same FDA team that handled the prior CHI and tumor HI interactions?

Nevan Charles Elam, CEO

It is. It's very much the same team. And I think one of the things that will be interesting for all of us is we will have the tumor HI study that will be complete in the second half of the year. And we'll also have then a path forward for what the congenital program will look like. And I think as those two intersect at that time point, I think it opens up for a very, hopefully productive and a solid path forward in terms of looking at the next step particularly as we think about a BLA. Now there's no assurance of course that we are going to be green-lighted to file a BLA for congenital or that the tumor study will be complete and successful as we would expect it to be but should that actually be the case I think that really then unlocks a lot of potential value for what Resolute is and our path forward and what investors and others can expect. Most importantly, patients, families, and the treatment providers in terms of getting this therapy finally into the hands of patients. Yeah. Yeah. Interesting. And for

Maury Raycroft, Analyst — Jefferies

getting a BLA submitted, so if you get the green light for CHI, how quickly do you think you can

Nevan Charles Elam, CEO

get that put together? We will, you know, either for CHI alone or for tumor alone or for both, we'll be prepared in the first half of next year to file a BLA. Got it. So as a team internally, we are working on all of our readiness to ensure that we're prepared to be able to file that DLA.

Maury Raycroft, Analyst — Jefferies

Okay and just clarifying for the the open label extension or for the the CHI data that you're submitting to FDA will that include the open label extension data set

Nevan Charles Elam, CEO

in there? We have shared with the agency how the children are progressing the open label the vast majority of children remain in open label extension and we will update them and provide some color when we submit the data set of on CGM however we're not going to have a separate cut specifically on open label extension as a data set itself but more just in terms of looking at the reduction in background therapies that we've noticed looking at the number of children that are now on monotherapy in the open label extension so all of that and some more granularity we'll share in summary format with the agency in addition to the data sets so how much additional follow-up will be in there or is that yeah it'll be there will be follow-up but it will not be a complete data set on OLE because we have not just structured it that fashion got it okay can you just walk through potential

Maury Raycroft, Analyst — Jefferies

scenarios for the regulatory update if FDA requires an additional small study such as neonate study what could that look like and has this come up at all

Nevan Charles Elam, CEO

with the agency well I think it's another interesting thing about our engagement with the agency you know very often I think we all from our different experiences if you have a lack of stat seg on your primary endpoint you're often faced with the prospect of having to do another study there's been no discussion with the agency of doing any other study discussions all been abound around actually investigating the data and understanding whether the data is meaningful in cgm notwithstanding the myths in terms of stat seg So I think that's probably the most interesting part about this, is that there is not a specific study or an idea of a study at this stage. Now, to your question, there are a variety of outcomes that can happen. Today, I think largely the way we are valued and thought of is based on the tumor program. And so I think the announcement we made this week has given a lot of confidence to investors, given that we're tracking very much like the EAP. and what we can expect most likely from a top-line announcement around the tumor study. Again, but this is the second half of the year. The agency could take a look at our data, and they could do a variety of things. The first thing they could do for congenital is to say, we don't see it. We don't see that there's a signal here, and we're going to ask you to do another randomized control trial. and that's something that we will not do because that would be chasing our tail in a fashion given what we've seen with functional and blinding that just doesn't make sense yeah we think that's very unlikely that the agency would ask us to do that but that's one possibility and the other possibility to your point Maury is they could ask us to do a small neonate study perhaps and where neonates are on a glucose infusion and very much like the cancer patients that are on glucose infusion we've had patients that are in the pediatric population that are on glucose infusion and we've had them come off including in the sunrise study so we've actually already done that um and the question is would the agency ask us to do that confirmatory after filing or would it be a precursor to file and that would be the only question so that's all really great upside we believe that's staring at us with the exception of doing an rct which again i think is unlikely all of that will be a positive announcement potentially um and then it you know i think it would be remiss not to mention the tumor side of the equation given that that readout will happen and then a sequencing of bla filings so we're going to work with the agency on the path forward and how do we actually take both hopefully programs forward into a bla yeah and could it

Maury Raycroft, Analyst — Jefferies

potentially be a single bla or that we're going to we're going to investigate all options of course

Nevan Charles Elam, CEO

we'd like the broadest label possible and we think it it makes sense given the underlying disease but we'll be you know going into I think an open discussion and again a lot of upside discussion

Maury Raycroft, Analyst — Jefferies

with the agency yeah yeah it makes sense and just to clarify for the tumor setting you said that you enrolled one more patient and or has that patient been treated or we have so we have eight

Nevan Charles Elam, CEO

patients and one patient is newly enrolled. We don't have data on that patient. Six, we do have data and that's what we've released. And then of course the seventh patient unfortunately passed

Maury Raycroft, Analyst — Jefferies

away. Yeah. Okay. Okay. Makes sense. And for the open level extension data set, can you just talk about the clinical benefit that you're seeing with placebo crossover patients and treatment armed patients with more than 50 staying on long-term?

Nevan Charles Elam, CEO

Yeah, I mean, I think as I noted, that what we're really seeing is a reduction in other medical therapies. So that's been very noteworthy, as well as a significant number of the children that are on monotherapy across both, you know, now that all children are actually in the open-label extension. So I think that's very encouraging in terms of the clinical benefit that's occurring, and that these patients and families are actually benefiting from the drug. And so I think it's actually powerful in terms of seeing that, particularly monotherapy. There's no other explanation when this is glucose whether a drug is active and working if, in fact, the child is only taking our drug.

Maury Raycroft, Analyst — Jefferies

Yeah. Yeah, it makes sense. And you plan to establish pediatric orphan pricing with the CHI-BLA, which would also anchor pricing for the tumor hyperinsulinemia opportunity. Does the pivotal miss, does that change your original pricing assumptions, or are those intact still?

Nevan Charles Elam, CEO

They remain intact in the first half of this year. We've done some additional work just to even shore that up further. So our pricing assumptions are very much, we believe, in line with what you see industry-wide. And it really, whether we launch tumor first or congenital first, the pricing will remain the same.

Maury Raycroft, Analyst — Jefferies

Got it. Okay. Okay, and for the patients, so you've noted a significant share of the ERC patients have reduced or discontinued background standard of care, suggesting meaningful insulin receptor engagement. How do you plan to demonstrate total clinical value to payers, particularly glycemic control, hypoglycemia reduction, and standard of care displacement to support the premium pricing?

Nevan Charles Elam, CEO

Well, I think, you know, first and foremost, in this patient population, we're talking about refractory hypoglycemia meaning these children have already failed medical management whether it's somatostan analogs diazoxide our target patient population they're in need and they're in need of an additional therapy and the answer can't be pancreatectomy because removing a child's pancreas is not a therapy and even I think the surgeons that do those procedures would agree so you know this is a this is a massive unmet need so I think the demonstration of that for pairs is very clear now to support that of course we will have our data coming out of everything from our phase two study phase three study and in terms of the benefit and reduction hypoglycemia that we see on the therapy but again we're treating refractory patients are you having conversations with pairs currently we've done our research absolutely yeah got it okay and once

Maury Raycroft, Analyst — Jefferies

CHI KOL noted that about 40% of diazoxide responsive patients still experience one to two level three events per year which he characterized is unacceptable even with a phase three primary endpoint miss what are your expectations for uptake in the dies oxide responsive population if you can

Nevan Charles Elam, CEO

get to market so we do exclude you know about 40% of the 3,000 individuals with with general hyperinsulinism because they are on dies oxide or somewhat responsive but i think it's fair to say that there will be over time most likely an increase in use in the therapy diazoxide is not idea not the ideal drug for this patient population given the side effects uh everything from pulmonary hypertension um and risks associated with that to just the overall administration of of diazoxide and what it may mean in terms of hypertrichosis and other things. So we will, I think, see some additional upside on that. But again, today it's not baked

Maury Raycroft, Analyst — Jefferies

into our market forecast. Yeah. Okay. Makes sense. And you've commented on patient advocacy in the past. Maybe talk a little bit more about that and how your conversations have been with FDA and

Nevan Charles Elam, CEO

beyond. The patient advocacy group, Congenital Hyperinsulinism International, they've been fantastic they've been a partner with us as we look to advance our therapy and hopefully have it available to patients and their families they're very much a part of us with our FDA engagement and their voice has been heard I believe very clearly by the agency and the division in particular and so we'll continue to support them and vice versa because it's time it's been decades that we have been treating this disease and doing the best we can with medical management and unfortunately having options like pancreatectomy, but it's time that we get a robust durable therapy into the hands of patients and their families. Got it. Makes sense. And for more

Maury Raycroft, Analyst — Jefferies

than a year, you've publicly made a point that you believe that URSO is a universal treatment for all forms of HI. Presumably that could include some other indications as well. How are you thinking

Nevan Charles Elam, CEO

about that uh commercially the antibody is designed exactly that it's agnostic to the cause whether it's a congenital cause what the specific genetics are again agnostic because it works downstream um and or the acquired forms and the acquired forms whether it's a tumor so as we've talked about whether it's an insulin insulonoma or a non-islet cell tumor um it it's agnostic because it's looking at the insulin receptor and the overstimulation and the excessive glucose uptake. So in the surgical setting, that is another acquired form. And so we would fully expect to be able to treat patients that are refractory to existing therapies or even potentially, hopefully, new therapies. So as an ultra-rare disease company, very specifically focused on hyperinsulinism, we hope that there are new therapies. We're cheering on all of those who may be looking at different modes and ways of treating patients with hypoglycemia, and we really are the, and we think of ourselves as the therapy of choice when it's truly needed, and our therapy is expensive, so hopefully there are other options that we can continue to advance to treat the broader population, but if there are GI-related surgeries that are causing severe refractory hypoglycemia that can't otherwise be managed, then we absolutely will be a therapy that should be made available to those patients as well.

Maury Raycroft, Analyst — Jefferies

Would that be, would you have to get added to some sort of guidelines, or would you have to run a study there?

Nevan Charles Elam, CEO

Or something less than a study. We will explore that and see. I think first things first, we'll see how that market evolves and develops. I think importantly, our therapy will be there, and we'll be prepared to address it.

Maury Raycroft, Analyst — Jefferies

Got it. Makes sense. And with potentially two positive announcements across both indications this fall, what's next for the company? And specifically, we look to grow the company by in-licensing a new compound.

Nevan Charles Elam, CEO

Yeah, I mean, we have a lot in front of us. We had a lot in front of us last year, and that continues. And you're right. Planning for success, we would love to see both tumor HI as well as congenital HI on the path for BLA next year. That would be wonderful, I think, for the community and for all of us. And with that, we would expect development of our company, our growth and ability with currency to be able to look to bring on other potential opportunities in the ultra rare disease space. And we'll be thoughtful about doing that, both in terms of time, when we do that, and what type of opportunity to advance. um so we absolutely will and i think every small company should as you grow because that's how you evolve and grow in terms of into a from a small company to a mid-sized company and beyond so we will definitely be on the look today is not the day for that um we have much to do over the next six months and a year um but absolutely we'll be we'll be looking at that as we grow got it so

Maury Raycroft, Analyst — Jefferies

So maybe just to close up, you've got the two big events later this year. How should investors think about these catalysts and any nuances around timing that you want to point out there?

Nevan Charles Elam, CEO

Yeah, I think this year is another big year for us, as last year was, with the tumor HI readout in the second half of the year. Given what we've seen in the first half of that study, hopefully the study finishes just like that. And that sets us up very clearly, we believe, for filing a BLA for tumor HI indication in 2027. And then on congenital, getting an answer to the question of how do we take the next step in that program. And hopefully that is also going to be a path to filing a BLA for congenital. And that would be huge. So I think even in the next six months, there will be some significant advancements for us as a company and further clarity for all of us. Got it. Thanks so much for joining us today, Evan. Thank you. Thank you.