Roivant Sciences Ltd.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Roy Vant Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. I would now like to hand the conference over to your speaker today, Paul Davis, Head of Communications. You may begin.

Thank you, and good morning. Thanks for joining today's call to discuss Roy Vant's third quarter results and business updates. I'm Paul Davis, the head of communications at RoiVant. On the call today, we have Matt Klein, our chief executive officer, Richard Bullock, our chief financial officer, Frank Torti, our VAMP chair, Eric Banker, president and chief operating officer, and finally, Mayuk Sakape, president and chief investment officer. For those dialing in via phone, you can find the slides being presented today. as well as the press release announcing these updates on our IR website at www.investor.royvant.com. We'll also be providing the current slide numbers as we present to help you follow along. I would like to remind you that we will be making certain forward-looking statements during today's presentation that reflect our current views and expectations, including those related to our financial performance and the potential attributes of our product candidates. We strongly encourage you to review the information that we have filed with the SEC, including the earnings release and Form 10-Q filed this morning for more information regarding these forward-looking statements and related risks and uncertainties. We'll begin with Matt Vine, who will review key business updates across Roy Benton Advance and provide a financial update. We'll end the call with a Q&A session. Without further ado, I'll turn it over to Matt.

Thank you, Paul. Good morning, everybody, and thank you for joining our third quarter earnings call. It's been an eventful quarter for us with... with a number of key updates, including Immunovant, putting Botoclumab back into the clinic in my CA Gravis, including a favorable appeals court decision on Genovant in December, including the introduction of a new program at a new event at Hemovant in myelodysplastic syndrome. So I'm excited to share those and other updates over the course of today's presentation. I'll begin on slide four just by giving an overview of some of the key features of our business as well as some of the key updates, and then I'll go through a number of them in more detail. I want to start by saying that both the prior quarter and the coming year are incredibly exciting for Roivant as a company, with a number of important projects coming to fruition over the coming months and year. The first of those is our near-term commercial launch of Depenirof, a potential blockbuster in psoriasis, a topical treatment of psoriasis with an expected PDUFA date in the second quarter of 2022 and a launch thereafter. We'll talk more about that in a moment. That's backed by a number of updates in our broad clinical stage pipeline. We will have at least eight pivotal or proof-of-concept trials running by the end of this year, and that includes progress at our newest VANT, HEMA-VANT, with RVT-2001, recently added to our pipeline of potential first-in-class oral SF3B1 modulator for transfusion-dependent anemia in patients with low-risk MDSK. low-risk MDS. That includes updates at Immunovant and Botoclumab, as I mentioned, and that includes other updates at a number of other programs, including our sickle cell disease program, as well as Milumab, our anti-GMCSF antibody with improved IMD and sarcoidosis. We'll be talking today a little bit more about strategy in our discovery platform, where we've made some significant progress in crystallizing our plans and in adding capabilities that we think will give us differentiated strength at designing new small molecules. as well as a number of other areas of asymmetric potential upside, including at GenEvent, with both their intellectual property and scientific capabilities delivering novel and important lipid nanoparticles for nucleic acid delivery, as well as continuing updates in our early-stage clinical pipeline. And all of that backed by a strong capital position with $2.2 billion in cash as of December 31st, plus a significant amount, about $870 million in public equity stakes and some private holdings, including a data path. So I'm going to start today's presentation by giving everyone an update on Topinaroff at Dermavant, which is a program that we're obviously very excited about, starting on page six. So as a reminder, Topinaroff is a topical agent for the treatment of psoriasis. It's a therapeutic aryl hydrocarbon modulator. It's the only drug of that mechanism that we're aware of. And we have our data on psoriasis and have an ongoing study in atopic dermatitis with data expected in the first half of 2023. And I want to remind people as it comes to spin her off of some of the attributes that make us excited about the program, including a remarkable treatment effect with significant efficacy, efficacy that we think is as good or better than anything that has been observed in a topical before. with up to 40% of patients over the course of our clinical program completely clearing their psoriasis with significant durability. So our drug continues to perform better in our long-term extension study the longer the patients stay on it, including beyond 12 weeks, with what we believe to be a completely unique to topicals remittive benefit, where I mentioned 40% of the patients who go on drug completely clear their psoriasis in our study. They stay clear of drug off therapy or mostly clear. for about four months on median, which is something that's attractive to payers, obviously, attractive to patients, and attractive to physicians. And all that is coupled with a very favorable safety and tolerability profile with no treatment-related serious adverse events in any of our pivotal studies, late-stage studies, and with significant tolerability, so with no questions of tolerability for long-duration therapy or therapy across all different locations on the skin. So a profile that we think compares favorably certainly to the standard of care of topical corticosteroids without any of the, at least in our study, without any limitations on duration that you see with topical corticosteroids without any limitations on where you can use it on your body as observed with some of the potent topical corticosteroids. On page seven, I want to remind people of one piece of relatively recently disclosed data that we think is exciting about the drug. which is data we've shown previously, but to highlight the rapid onset of action is one of the things that we think will be important to this as we launch to Pinteroff later this year. With our drug having achieved statistically significant improvement in PASI from baseline as early as week two in our study, in fact, a 20% reduction in disease activity in week two relative to vehicles. So we think there's a significant benefit here early on in treatment, and we think that will matter to patients. In fact, on Slate 8, and this is a new piece of information that we've put out this quarter relatively recently, Dermavant, as part of our long-term extension study, included patient satisfaction data. And you can see on this chart, both on the left-hand side, patient satisfaction vis-a-vis other topical treatments. And on the right-hand side, you can see patient satisfaction versus systemic drugs. And so one of the things that's interesting is 80-plus percent of patients strongly agreed or agreed that Depenirof was more effective than other topical drugs they'd used in the past and preferred Depenirof to other topical drugs they've used in the past. And given the attributes that I described on the earlier slide here, both from a treatment effect perspective and a safety and tolerability perspective, we would have expected that. One of the things that's remarkable is over two-thirds of patients, 67.8% of patients, also preferred Depenirof to systemic drugs they'd used in the past. which given the high level of efficacy associated with systemic therapy and the fact that often severe patients are on systemic therapy, it was exciting to us to see just how many patients preferred tip printer off to systemic drugs. So these are the kinds of data that matter to prescribers and the kind of data that matter to patients, obviously. We think that dermatologists are looking at this and are getting excited for our potential launch later this year. You know, on slide nine, a little bit about that launch. So we are fully preparing for a launch in the second quarter, including getting ready to deploy a specialty sales force capable of calling on dermatologists to write more than 80% of all commercial prescriptions in the psoriasis market. To do that, we're going to hire 75 to 100 reps, which will allow us to reach the 6,000 highest value dermatology healthcare providers. And we think... That'll be supported by a key commercial leadership team, many of the members of which have already been hired, and we're conducting a number of more of those hires over the course of the coming quarter. So really excited about the execution at Dermavant from a very high quality team that we're pleased to support. On page 10, just a reminder of some of the recent progress at Dermavant, including that our NDA submission remains on track with no expectation of advisory committee for PDUFA in the second quarter, including manufacturing commercial production readiness on track to ensure a high-quality and predictable supply of drug. And as I mentioned, the commercial organization is being built out as we speak. We did in the quarter have data from our Soaring 1 and Soaring 2 trials published in the New England Journal of Medicine. So that was an exciting sort of scientific closure to those trials. And then we continue to have strong enrollment in our Adoring 1 and Adoring 2 Phase 3 trials evaluating Spinarof and atopic dermatitis. And we continue to expect top-line data from that program in the first half of 2023. So look forward to providing more updates on PNROF and atopic dermatitis over the course of this year. And we think that'll be an important part of the story for us as well. So with that, I'm going to move on from to PNROF to some other parts of our business. And on slide 12, just as a reminder, we have a broad clinical development stage pipeline. So this is our clinical and close to the clinic development stage pipeline with many programs. PNROF that we talked about, that we'll talk about a little bit later, and a number of other programs. Too many to talk about on a call like this one, but we look forward to sharing updates on many of these programs over the course of calls like this one and at conference presentations over the course of this year. You know, on page 13, just to highlight, 2022 is actually a really important year for us from a clinical development execution perspective. And even just among things we've already talked about, three pivotal study initiations expected for Botoclumab and Immunovant this year We remain on track to initiate a Phase II trial with mimilimab for sarcoidosis. That's our anti-GMC-SF antibody. And during this past quarter, the IMD for that program in sarcoidosis has been approved. We remain on track to initiate a multiple-sending dose trial for our program at Lysovant with the IMD accepted in January of 2022. And we'll talk a little bit more about this program on this call. We're looking forward to conducting a robust open-label expansion of the ongoing Phase I-II trial in Arviti 2001 at our newly formed Hemovant. in lower risk MDS. So many important clinical programs ongoing this year with an expectation of near-term data supporting what we think is going to be a unique and interesting pipeline. I'm going to start first on the development side by talking about Hemavant, which is the newest Vant in the Vant family. It was just built around a program that we unlicensed just late last year. And so I'll start on page 15. So the program here is called RVT2001. It is a potential first-in-class small molecule SF3B1 modulator for the treatment of transfusion-dependent anemia in patients with lower-risk MDS. So SF3B1, if you're not familiar with it, is a target in the spliceosome. And this program came from AZI, where AZI had been focused on developing it for higher-risk progressive MDS patients as well as patients with AML and CMML. And it wasn't totally clear from their data whether it was exactly an appropriate therapy for that population. But as we looked at the data, and we're going to share some of it on today's call, We got excited about RVT2001 for a different patient population, namely the population of transfusion-dependent anemia, or the treatment of transfusion-dependent anemia in lower-risk myelodysplastic syndrome. And this is a market, as you may know, that has been recently validated by Luspatracept, a BMS drug that launched last year and is now annualizing at over $500 million a year, five quarters into launch, and BMS is forecasting that to be an over $4 billion peak sales drug, much of which coming from this lower-risk MDS population. And our interest in that population is driven, as I said, by some encouraging proof-of-concept data in the 80-plus patient Phase I-II study that's been conducted in our drug, and we'll talk some more about that data. And we have a multi-pronged development strategy to optimize the drug's impact on that patient population, which we'll get into. So on page 16... A is a little bit of a reminder of what this patient population looks like, and B is a little bit of a discussion about how we expect our drug to play. So we're focused here, as I said, on the group of lower-risk MDS patients. So there are about 17,000 new MDS cases each year and about 115,000 MDS patients total, and low-risk patients are both a significant fraction, about two-thirds of new patients, as well as an even higher fraction of the prevalent population. So And these are quite sick patients. Low-risk MDS is a chronic condition with therapy focused on management of symptoms. And first-line therapy is mostly erythropoiesis-stimulating agents, ESAs, but they're not very effective. And so there are a number of drugs approved for later-line therapy, just a couple, with Patercept and lenalidomide, each approved for subsets of patients. Luspatercept is approved currently in second-line therapy, although BMS has said they're continuing to develop it in earlier-line therapy. Lenalidomide, which has significant toxicities, is really only approved for a mutant subset, the 5q-minus subset of MDS patients. And both of those drugs also leave room for improvement. Luspatercept is effective in less than 50% of patients. And so, you know, RVT-2001 is a potential oral therapy, first of all, which is different from luspatercept. In a genetically validated target that's mutated, in up to 80% of certain subsets of the MDS patient population, which is thought to be an important target in driving MDS. Mutations in SF3B1 are thought to be important. Our initial plan is to target second-line, principally in SF3B1-mutated patients, with the potential to expand across other spliceosome mutations, as well as to expand to patient populations who are refractory to the spatter shaft, where, as I said, there's still a significant potential lead end to go earlier in therapy over time. So I want to talk on page 17 a little bit about our early clinical data and why we're excited about the program. And I'll highlight, this is a relatively high-risk program, in part because a lot of this data comes from relatively smaller ends and from cross-trial comparisons, but we think it paints an interesting picture. So in the existing phase 1-2 study that I referred to with 84 patients across MDS, AML, and CMML, only a relatively small subset of those patients, because it wasn't ASI's main treatment interest, were in our patient population of interest. Only 19 of the patients had lower-risk transfusion-dependent MDS. And in that patient population, we saw a red blood cell transfusion independence rate of a little over 30%. Now, that in and of itself is not necessarily a particularly compelling result, only in the sense that the FATRCEP, for example, has responder rates in the 40s. But what was interesting upon further investigation is the subset of patients that we were focused on is... It turned out to have been a highly sort of pre-treated patient population with 15 of the 19 patients having been pre-treated either with lenalidomide or with prior HMA therapy. And what's interesting about that is both luspatercept and lenalidomide in prior trials have struggled significantly in those pre-treated patient populations. So luspatercept, for example, had only achieved a 13% red blood cell transmutation independence rate among lenalidomide pre-treated patients in luspatercept's phase 2 trial. And, in fact, that result was so challenging that this Paracept's Phase III study actually excluded lenalidomide pretreated patients. And lenalidomide in an investigator-sponsored trial saw 12% was called an HIE. That's a different endpoint. It's sort of a transfusion reduction endpoint in HMA pretreated patients. So that alone, and first of all, is interesting, right? We saw a significantly higher response rate. In fact, over double the response rate of transfusion independence relative to this Paracept or lenalidomide in a similarly pretreated population. Now, further and on top of that, one of the things that's been interesting to us as we've studied the field is that both luspatercept and lenalidomide saw significant improvements as they moved to earlier line and less pretreated patients. So luspatercept, for example, in that same study where they had had only a 13% transfusion independence rate, saw 44% red blood cell transfusion independence for patients without lenalidomide pretreatment. And as I mentioned, that led them to actually exclude lenalidomide pretreated patients from their phase two. And in that same study that I mentioned for lenalidomide on HMA pretreated patients, 38% response rate or 38% on this HIE for patients who have not been HMA pretreated versus 12% post HMAs. So again, significant improvement as those drugs move from earlier line setting. And so not only does our data suggest that we may have a significantly different effectors, differently greater effects in heavily protruded patients, but there's a chance if we see a similar improvement as we move to earlier line patients, that we could have an overall best in category therapy for these transfusion-dependent MDS patients. So that data got us excited. Obviously, this is a relatively risky program for the reasons I mentioned, but if we're successful, we think we've got a couple of different paths to an important program. So On page 18, in terms of what we're doing from here, so we're taking the existing ongoing phase 1-2 trial and we're expanding it by 50 to 60 patients. We expect to be able to do that over the course of the next year with data coming in 2023. We are going to focus on lower-risk MDS patients with SF3B1 mutations. That's about 30% of MDS patients overall and a significantly higher portion of MDS patients in some of the more important subsets for this purpose. And we're going to specifically look for certain biomarkers, including a biomarker called Aberrant TMM14C transcripts, where in a small subset of our patients, five out of seven responded, so a very high response rate. And those Aberrant TMM14C transcripts are associated with certain SF3B1 mutations in a way that gives us some biological understanding of why that might be. So we see a couple of different paths to patient impact here. Obviously, there's the possibility for a biomarker-driven sort of very specific, precision approach to treating certain patients. There's the possibility for a therapy that can deliver for pre-treated patients greater efficacy than the other existing therapies on the market. And there's a possibility, if we see a continued improvement as we move to earlier line patients, that we could have an overall best-in-category treatment effect in a market that's important and in a patient population that continues to have significant unmet need. And that couples with certain other attributes, including a relatively benign tolerability profile as well as oral dosing, which is something that the other therapies don't currently have. And one other note, which is that this drug, because ASI was testing it for higher-risk MDS patients, was dosed in a more acute setting. We've improved our dosing to a more chronic dosing paradigm, which we also think will help us deliver an appropriate amount of drug to these patients. The last thing I'll say on this is, although this is a relatively higher-risk study than Relatively minimal data decay has been observed in past MDS trials from phase two to phase three. And so our hope is that after we get data next year, we can be reasonably confident if that data are compelling that we have a therapy that matters. And so that's a little bit about our program in MDS. The last thing I'll say about this is I think it's a pretty good example of how we think about dealmaking and programs at Roivant. So this was about an $8 million upfront cash and $7 million upfront equity payment for this therapy. which is, you know, we think attractive commercial terms. And overall, for around $50 million, we will get the answer to the question in this Phase 1-2 study, which should set us up for interesting therapy if the data are compelling, and otherwise it will have been a relatively modest investment relative to where our overall portfolio is. So an exciting program, something we're glad to have added to the pipeline, and something we're excited to share more about through this year, and especially next year as we get data in 2023. Okay. Next up, I'll just briefly review progress at Immunivant. So Immunivant has shared all of this at the end of last year and the beginning of this year, and so I won't go into great detail here, but we are very excited for the fact that the Pocomab now has a clear path back into the clinic, and I've seen the Gravis and other indications. That's why I just wanted to remind people a little bit about that situation, starting on page 20, which page 20 really is just a reminder that anti-SCR and antibodies have potential in a very large population of patients, There are over a million U.S. patients and over a million European patients, over a million and a half European patients with autoantibody-mediated autoimmune disease just in this list of indications alone, and there are others. We've announced three indications, Mycenae, Gravis, Weha, and Ted at a mood event, and we said we expect to announce two more through the middle of this year, so we'll talk a little bit more about that later. But a patient population we're excited about, and we think the FCRN class is going to matter a lot with a potential for sort of double-digit billion dollars in overall market size. So on slide 21, as a reminder, we announced at the beginning of this year a little bit more information about our plan for the phase three trial design in myasthenia gravis. And I want to highlight, and this is a little bit of a schematic on this slide, but just the way that autoimmune diseases are treated generally is often through a combination of induction and maintenance therapy with a possibility for rest immunologists are used to treating diseases flexibly. They're used to using higher doses of therapy to get patients controlled. They're used to being able to maintain patients chronically on drugs, and they're used to being able to up-titrate or down-titrate, depending on severity of symptoms and reflare. And betocumab, the immunomant, is really the only anti-FCR antibody that is really being tested in that kind of treatment paradigm that matches the way myasthenia gravis patients experience their disease and the way that immunologists are used to treating them. So, Our trial has an induction phase where we test higher doses, including a 680 milligram dose for 12 weeks, a maintenance phase where we test lower doses, going down to including a 340 milligram every other week dose, and then a long-term extension where we're able to optimize control of the patients, including both up and down titration as needed for each individual patient. And we think this will allow us to achieve a few things. It will allow us to achieve fast treatment of disease symptoms. It will allow us to maintain on an individualized basis that treatment, including managing the side effects such as cholesterol in a comfortable way for patients while their disease is controlled. And we think it will allow patients to titrate as they have disease flare-ups in order to manage their experience of symptoms. You know, on slide 22, we show a little bit about how that stacks up versus some of our competitors, if for Tijamod and Nipicalimab. And in short, we believe we are the only program that is designed to match the design sort of matched that treatment paradigm in the sort of optimal way. And so, you know, F-cartiginomide, for example, was approved in more of a cyclical paradigm with four weeks of treatment on and then, you know, additional cycles after pause based on loss of response. And remember, the approved F-cartiginomide is an IV-administered therapy, although there's also a bridge to a halosome formulation. You know, nipicalumab has a loading dose, so a little bit of induction therapy, but only one single loading dose before going to a lower dose treatment paradigm. So, not necessarily designed to maximize early treatment effect. And nipicalumab in the long-term extension study only allows for down titration, while we allow for both down titration and rescue therapy. And nipicalumab, again, today is an IV therapy, although they've discussed a bridge to subcutaneous. And as a reminder, botoclumab addresses all three of these things. We have continuous dosing with induction and maintenance. We have down titration and rescue therapy allowed. And as you may know, botoclumab was developed from the beginning as a routine simple subcutaneous administered injection, which we think will make this easiest for patients and physicians to manage. On page 23, just as a reminder, the market for the Toclumab is certainly not limited to myasthenia gravis, and we're excited to initiate pivotal trials in three indications total, including myasthenia gravis, and we're going to announce those two additional indications before August of this year, and so we're excited to share those indications as well as additional plans for those trials, and we'll be back in touch to do so in the near future. So those are some updates on our development stage pipeline. There's obviously a number of other programs that we haven't had time to talk about today and we will in the future. But I want to move now to our discovery organization, where we've been doing a fair amount of work over the past months to really crystallize our strategy and to focus on what we think are unique and differentiating capabilities. So I'm not going to talk much about specific programs or targets today, but I want to give you a sense for how we're thinking about the composition of this program in general. And really what I'll say is we've built Roivant Discovery with the idea that through our computational platform, we can target the 80% of targets that have been very difficult to drug historically using a variety of different techniques that are all bolstered by our computational capability. And the areas on which we're focused, the first of which we've talked about a bit is hetero bifunctionals, mostly targeted protein degraders, which is an area that we think our computational platform and wet lab capabilities really set us apart from the field. We're focused on covalency, which is an important emerging area, obviously a focus for a number of biotech companies, where we think a combination of proteomics and computational tools will give us a unique ability to identify opportunities to drug historically difficult to drug proteins. And then finally, we have an area that we call deficiency to best in class, which is, you know, we think the atom by atom understanding that we have of different proteins really gives us the ability to look at existing small molecules and whether they're development candidates or even, in some cases, approved therapy, that have established potential, either biologically or commercially, but have well-understood limitations, like an affinity or binding limitation or an off-target tox effect, and to be able to understand the geometries of those proteins and those affinity relationships and to optimize to resolve some of those deficiencies. So I'm going to talk about each of these briefly in turn, starting on page 26 in federal bifunctionals. So we've talked about this a little bit before. And this is an area that we're excited to be participating, the area especially of targeted protein degradation. And in short, we think this is going to be a sort of killer app for computational tools in drug discovery. We've combined a really best-in-class wet lab chemistry team that has deep experience in discovery of new degraders with a computational platform that gives us, we believe, the most accurate prediction of ternary complex formation, the most accurate prediction of ubiquitination of any that we're aware of and in a way that lets us really get to the heart of the degrader discovery problem to understand how both the affinity of a small molecule ligand of a warhead as well as the linker geometry and the E3 ligase ligand can come together to achieve an optimal ternary complex and to achieve ubiquitination at the highest possible rate. We think this will let us design degraders against targets that other people have struggled where we can really optimize for ternary complex formation and You know, we feel like we're at a relatively unique corner of the degrader space in the sense that we have wet lab chemistry expertise and tools specific to hetero-bifunctional, specific to degraders, that goes beyond what we believe is any of the other computational companies. And on the other side, we have expertise in modeling degraders and computational tools for modeling ternary complexes that we think go beyond the computational tools by a significant margin of any of our peers on the degrader side, and so we feel like we are at a unique corner having both the best computational capabilities of any degrader company and the best wet lab chemistry degrader capabilities of any computational company, and we feel like that sets us up for a differentiated opportunity. The first of Royman's degrader programs will enter the clinic, we believe, this year, and there's a number of others behind it, and we're excited to share preclinical data over the course of the year on a number of programs as we move forward. On page 27, I'll move to the next pillar here, which is on covalency. So, again, this is an area that's got increasing interest in biotech lately, and we've built a team here of chemoproteomics experts as well as computational experts that we think are going to set us aside here as well. So, you know, what we've begun by doing here, and this is a combination of chemoproteomics and computational tools, is by mapping what we call the reactome. which is to understand the residues on the surface of a protein and how different amino acids map to that residue so that we can start to understand using a combination of chemoproteomic approaches and a deep computational understanding for the area around various covalent binding opportunities, whether it is possible to drug some otherwise difficult-to-find drugs. So we use sort of chemoproteomics-based hit finding to screen proteins in their biological states and to find opportunities for binding. And then because our computational tools give us a very accurate understanding of protein geometry, including around the covalent binding sites, we can figure out how to design selective drugs against those chemoproteomics-based hits. So we think this is going to matter for a variety of protein categories that have been difficult to drug, including things like transcription factors. And again, we're excited to share some more information about programs coming out of this capability in the near future. And then finally, on slide 28, I talked a little bit about this in the intro here, but the other sort of pillar we've added here, but something we're excited about in part because we think it's going to give us the ability to move very quickly, is to work on programs where there is starting chemical matter, where there's an understanding of affinity, an understanding of a relationship between a small molecule and a protein, but where there's some well-understood deficiency there, where there's an off-target tox effect that is understood and so we know where the off-target tox binding is taking place or when there's a selectivity issue. Maybe there's multiple isoforms at a target and it's really important to hit certain isoforms but not others or certain mutant variants but not others. And what we feel like our computational tools are allowing us to do is to start from that starting chemical matter to really understand the limitations of that affinity or property relationship to the protein and to be able to work backwards and redesign or re-engineer those small molecules. to improve that sufficiency and ultimately to result in a best-in-class therapeutic. And among the things that are exciting about this, in addition to being able to deliver meaningful patient impact, is being able to do it fast, to be able to go from start to a drug in the clinic quickly, because we're starting from a well-understood problem and iterating rapidly from a computational perspective in a way that we think is going to matter. So on slide 29, to wrap up the discussion on the discovery side, really we feel like our discovery strengths lie at the intersection between The computational platform that we spent a fair amount of time talking about, our molecular dynamics toolkit, our machine learning capabilities, our large GPU-based supercomputer with force field engine that allows us to simulate all kinds of things including complex structures with a high level of precision. There are relatively few other companies in the world that can do that kind of thing. With unique experimental wet lab capabilities that have been hand-chosen to pair with our computational tools, so chemoproteomics and biophysics and wet lab chemistry with greater expertise with specific with specific tools and capabilities designed to pair with the modeling that we're doing. And then all of that sits together with Roivind's clinical expertise and with our history of clinical development. And we haven't talked about it today, but remember that the VANT model has resulted in eight positive phase three trials of nine that we've run with now four FDA-approved medicines currently at Semita Vant at a partner. And so a long history of clinical development, including creative clinical development, and And all of the programs coming out of our discovery engine across the pillars I just described get the benefit of moving through that Boivin ecosystem, and we believe that will allow us to rapidly and successfully develop exciting drug candidates coming out of Boivin Discovery. So I wanted to share that update. It's a little bit more precision than we've given in the past on what our discovery organization looks like and how we've divided it up from a capabilities and tools perspective. So I'm going to move on from here and talk about a couple of other items, including one source of some asymmetric potential upside that people have been paying attention to. So on slide 31, just as a reminder, I'm going to talk a little bit about Genovant. So Genovant is a leading company in the field of nucleic acid delivery, focused in particular, not exclusively, but largely on the design of novel lipid nanoparticles. There's deep history at Genovant in the area of lipid nanoparticles, dating back really to almost the very beginning of LMPs, certainly in their use in biotech. And as you may know, you know, what's exciting about LMPs is they are a tool for getting fragile nucleic acids into the body and into target cells. Otherwise, nucleic acids degrade quickly and don't get to the sort of part of the cell where it's needed in order for them to have the therapeutic effect. And LMPs allow nucleic acids like RNAi, like mRNA, to get into cells so they can deliver a therapeutic benefit. LNPs have emerged as the primary means for delivering mRNA therapy. So, almost all of the mRNA therapies in development are delivered via LNPs. And it's worth noting that LNPs are also occasionally used in the delivery of RNAi, for example, based therapy. And, in fact, Genevance LNP therapy is used in the delivery of LNIs on PATRO under LNP license from Arbutus. So on slide 32, just to quickly note, we've had continued progress at GenEvent this quarter, including a recently announced collaboration with 270Bio, providing access to our LNP technology to help gene editing therapies for hemophilia A. So gene editing is another area where LNP has been highly relevant, and we're excited to use our technology and collaboration to make some progress in that important field. And then on the intellectual property side, as many of you may know, in December, the Federal Circuit Court of Appeals rejected Moderna's appeal of a PTAB decision. So, Moderna had attempted to invalidate a number of our important LNP patents dating back to 2018, and in early December, the Federal Appeals Board affirmed the validity of our patents in a way that was important to us and obviously something we were pleased to see. So, we expect to provide further updates on Genevant in the near future and look forward to doing so. So, I'm going to wrap up the presentation portion of today on slide 34. just by highlighting some of our key financial items from the quarter. So for the three months ended December 31st, 2021, we had R&D expense of $153 million with adjusted R&D expense of $119 million. We had G&A expense of $116 million with adjusted non-GAAP G&A expense of $61 million for a total net loss of $306 million or an adjusted non-GAAP net loss of $157 million for the quarter. We ended the quarter with cash and cash equivalents of approximately $2.2 billion. And limited debt, our balance sheet debt is about $204 million with a principal credit facility making up $32 million of that, and the remainder being the fair value of milestone payments related to Pinteroff. And we have about 690 million common shares issued and outstanding as of February 9th. So on slide 35, as I wrap up my presentation, thank you again for listening. Just want to highlight that 2022 is an incredibly exciting year for us again. with the FDA approval decision for Pinteroff expected in the second quarter, with top-line data coming in the first half of next year, with Botoclonab getting into multiple new programs in the clinic, with data expected, and we'll share it as we have it, on additional patients in our single-cell gene therapy diagram. We didn't spend any time today talking about it, but we continue to enroll patients in our Phase I-II trial on single-cell disease and look forward to sharing more updates on that program over the course of this year. I also look forward to discussing the initiation of our phase two trial on sarcoidosis at Kind of Ant. We're going to continue to expand and enroll patients into our phase one, two trial on lower stem BS that we talked about earlier and a number of other updates coming from around the pipeline, including multiple programs generating data in our preclinical discovery pipeline that we look forward to describing further. So I want to thank you again for listening. I obviously covered a fair amount of ground and looking forward to continuing to provide these updates. And at this point, I'll wrap up and go back to the operator for Q&A.