Liquidia Corporation

Good morning and welcome to the Liquidia Corporation second quarter 2026 financial results and corporate update conference call. My name is Daniel and I will be your operator today. All participants are currently in listen only mode. Following the presentation, we will conduct a question and answer session. Instructions for joining the queue will be provided at that time. Please note that today's call is being recorded. I'll now turn the call over to Jason Adair, Liquidia's chief business officer.

Thank you and good morning, everyone. It's my pleasure to welcome you to our second quarter 2026 financial result and corporate update call. Joining me today are Dr. Roger Jeffs, Chief Executive Officer, Michael Kaseta, Chief Operating Officer and Chief Financial Officer, Dr. Rajeev Saggar, Chief Medical Officer, Scott Moomaw, Chief Commercial Officer, and Rusty Schundler, General Counsel. Before we begin, please note that today's discussion will include forward-looking statements, including statements regarding future results, product performance, and ongoing clinical or commercial activities. These statements are subject to risks and uncertainties that may cause actual results to differ materially. For further information, please refer to our filings with the SEC, which are available on our website. Please also note that our earnings release and our commentary include non-gap financial measures. Reconciliations of these non-gap financial measures to the most comparable gap measures can be found in our earnings press release. With that, I'll turn the call over to Roger.

Thanks, Jason, and good morning, everyone. We're delighted to share our business results and clinical progress with you today. One year ago, we launched Utrepia and believed the medical community would find value in our differentiated approach to inhaled tryprosinil. One year later, we have the answer. Physicians are prescribing it, patients are starting to switch to it, and referrals and starts continue to accrue at a robust and sustained pace. As you saw in our numbers this morning, as of July 31st, we have received approximately 5,900 unique patient prescriptions, started more than 5,000 patients on therapy, and had more than 1,100 physicians write for the product. 30% of those physicians have prescribed to five or more patients. What's especially notable is where that growth is coming from. The overall inhaled prostacyclin market grew again this quarter from 573 million in Q1 to 607 million in Q2, or approximately 6%. And Utrepri's growth alone was larger than the growth of the entire category. Even as we saw flat to declining use of oral, infused, and competing inhaled formulations. That tells us something important. Not only are the numbers of new starts for inhaled troposinil growing, Eutrepia is taking an ever-growing share of the total market for inhaled troposinil. On a net revenue basis, Eutrepia is approaching 30% of the entire inhaled market, a tremendous result just over a year into launch, especially as the market is growing in concert with Eutrepia's growth. This implies the majority of new patient starts are coming to Utrepia. What matters more than the numbers is the impact we're seeing in patient lives. I spent my career in this field and I've watched the delivery of prostacyclines move from complex IV and subcutaneous infusion to cumbersome nebulized therapy to intolerable oral formulations and now to inhaled dry powder delivery. Across that history, one simplistic but guiding principle has remained constant. Better tolerability enables higher dosing. higher dosing can drive a greater efficacy and greater efficacy can support durable clinical benefit. The linchpin in this therapeutic chain is solving first and foremost for tolerability as the ability to drive dose and improve symptoms while minimizing both off and on target adverse events is the holy grail. That's the lesson I've learned from my 30 plus years in the field and to me explains why eutropia has had such broad adoption and early commercial success to date as it offers all of these attributes. This critical link between tolerability, dose, and efficacy was beautifully demonstrated in our 24-week assent study in PHLD patients. Specifically, progressively higher median doses of eutropia at weeks eight, 16, and 24 was accompanied by progressive improvements in six-minute walk distance of 21.5, 31.5, and 41 meters, respectively, without worsening cough scores. The only caveat is that eutropia requires a four times daily dose regimen which is why we are going from strength to strength and aggressively building on these same principles with twice daily L606, which we believe has the potential to raise the tolerability bar even further. As we've previously shown in our 48 week open label study, L606 patients titrated across a broad range while incurring a low burden of adverse events. Most notably, the lowest incidence of cough we are aware of in any study of an inhaled prostatinal formulation. and we were able to observe enduring clinical benefit as peak six minute walk improvements were preserved at trough or said another way throughout the dosing interval. These results are especially impressive when you consider that patients enrolled reflected the prevalent population in the US and were on complementary background standard of care. We are not aware of any other product in clinical development that has matched the dose range, tolerability and durability that we have already seen with L606. We believe Eutrapia and L606 have significantly raised the bar that every current and future product in this space will be measured against. And it is with this confidence that we've stood up a thoughtful R&D plan to best elucidate the current and future uses of inhaled tryprosinol across a wide array of indications. In fact, between Eutrapia and L606, we now have 10 clinical studies either underway or planned to begin over the next 12 months. and as Mike will explain, we can confidently make these investments because of the cash flow that this business now generates. With that, I'll turn it over to Mike.