Dennis Lanfear: Ash, thanks for the questions. Let me take the last one first. We were able to reduce the footprint on the lease. Primarily, that came up because we were in a period where there was a renewal period. So we had — we were opportunistic and being able to do some consolidation. We have team members that work from home and then go back and forth. So we’ve done some sequencing with people in and out of the office. We’re able to consolidate some space. And as I indicated in my remarks before, we’re always looking for opportunities to reduce our expenses, and this is one where we could do so. With respect to the milestone and its timing from Junshi, I’ll let McDavid Stilwell comment on that.
McDavid Stilwell: Yes. Thanks, Ash. So it’s a $25 million milestone payment, and it will be paid in March 2024.
Operator: Our next question comes from the line of Balaji Prasad with Barclays.
Unidentified Analyst: Good afternoon. This is [indiscernible] on for Balaji. Our question is about partnership opportunity for Toripalimab. You mentioned that you received a lot of partnership interest from outside partners. Could you add some color on what therapeutic areas or what type of agents that will be prioritized for future combo trials? And what type of collaboration and economy will you adopt for those partnership agreements for combo trials in order to achieve lower R&D cost next year?
Dennis Lanfear: Thank you. Great question. I’ll let Rosh Dias, our Chief Medical Officer, address that. Rosh?
Rosh Dias: Thanks very much for the question. So I think as we look at the partnership space, I think the first thing I’ll say is that the wealth of data and the robustness of the data for LOQTORZI across different tumor types and indications really sets us up well for partnerships together with its pretty unique mechanism of action as well. I think for LOQTORZI, the partnership opportunities and incomings that we’re receiving are essentially and mainly in terms of novel combinations and the kind of avenue that we’re taking with that will be more in terms of drug supply agreements and supplying drug for partnership studies. We also, of course, have our novel assets that came in with the Surface acquisition of casdozo and CHS-114.
And I think one of the important points I’d like to stress there is we do have global rights. So we’ll be looking for potential opportunities for these two novel assets to maybe ex U.S. find partnership opportunities for potential revenue there.
Operator: Our last question comes from the line of Douglas Tsao with H.C. Wainwright.
Douglas Tsao: I just wanted to just touch on UDENYCA a little. And I’m just curious from your perspective on the broader environment within the pegfilgrastim category as a whole, where we’ve seen you really have successful maintaining share or gaining some share whilst maintaining your ASP and others have continued to see the ASP fall. So what do you think has been the sort of the driver of your success and your perspectives on what the next step is for this market?
Dennis Lanfear: I’ll let Paul dive in a bit for you, Doug. But I think that we bring at the core competency on the commercial team, a very deep and nuanced understanding of the Medicare Part B space. As you know, our policy for a long time has been the good guardians of ASP and not to rely simply on discounting to drive sales. The other issue, I think, here is that we have deployed very successfully a strategy to maintain price and share for the long term as a basis upon which to launch our presentation. And we are now successfully deploying that strategy. Our average selling price is well above the other competitors in the class, significantly above the [ leader ], for example. But I think that we are very confident in terms of our ability to understand price and really to execute our value proposition strategy without simply resorting to price in the market. I don’t know if Paul has some additional comments.
Paul Reider: No, I think that’s exactly right, Denny. Doug, if you look at what the competitor strategies have been and we’ve always viewed UDENYCA as a franchise. And so we applied the strategies that we needed to do in order to maximize the long-term revenue, but also profitability of the brand. What we’ve seen with other competitors, biosimilars in particular, it just had a prefilled syringe, is to just use deep discounting for short-term market share gains. And you’ve seen examples of what happens to that strategy. So we really have just taken a long-term view. We’ve been disciplined with it. We’re bringing the new presentations to market, and we’re going to position UDENYCA as the person-only franchise with representation offerings because these patients still need a pegfilgrastim support.
And whether they’re getting it in the office, whether they’re getting it at home, we’re going to have a solution for the patient and the provider to meet those needs. So it really comes down that. And we’re delighted that our strategy is paying off, and that you’re seeing it now in consecutive quarters.
Dennis Lanfear: The other point that I would make, Doug, is we’ve successfully deployed our Medicare Part B competency from oncology to ophthalmology, where we also were in a position where we launched behind a very, very large competitor by a few months. And then we’re very successful in the first year of the market. I think we’re in excess of 25% market share now with CIMERLI in the ophthalmology market. And as you may recall, we are in excess of 20% in the first year of UDENYCA, having launched behind a very large competitor at that point also. I think this proficiency has been demonstrated twice.
Operator: Thank you. I would now like to turn the conference back over to Denny Lanfear for closing remarks.
Dennis Lanfear: Thank you all for joining us today on our Q3 2023 update, and we’ll see you at upcoming conferences, including the Truist conference and the UBS conference this week. Thank you, operator.
Operator: Thank you. This concludes today’s conference call. Thank you for your participation. You may now disconnect.
