So we are really excited about having TRIESENCE sooner rather than later. We don’t mind paying more for it because we are highly confident in the market research that we’ve done around that product. As I said, our expectation though is right now that we’ll have it in 2024, and our partner would like for us to have it before January 20 of 2024. But what we’ve said publicly is that we expect to have inventory sometime during the year. I don’t want to be more specific right now, but we’re working diligently to make this happen.
Jeffrey Cohen: Okay. Good. And one more brief one. You had mentioned some back-end systems. Are you currently using one ERP system, or is that being consolidated as part of the back end? And what’s going on as far as leveraging up the size of the business on the back end with regard to mostly billing?
Mark Baum: On the compounding side or on the branded side, or both?
Jeffrey Cohen: Across the board.
Mark Baum: Yes. I don’t know that we can discuss specific software platforms or ERPs. Andrew, do you want to tackle that one?
Andrew Boll: Jeff, we’re on a single ERP. We are going through some updates from the CRM perspective and just implementing that additional pieces to the ERP, like within quality and supply chain, for example, and bringing that in on the company side and on the brand side. But for the most part, that infrastructure is in place, and we’re just kind of tailing off of it.
Jeffrey Cohen: I got it. Okay. So your comment was basically just scaling up as the size of the business runs?
Andrew Boll: That’s right.
Jeffrey Cohen: Perfect. That does it for us. Thanks for taking the questions.
Operator: The next question comes from Mayank Mamtani with B. Riley. Please go ahead.
Mayank Mamtani: We’ll try to keep it short. So two quick ones on IHEEZO. When you say your internal revenue targets for 3Q or 2023, could you just clarify that? And help me understand the components of your 4Q guide. It looks like the new range is $35 million to $44 million, and for 2024, it’s about $180 million. What’s tied to IHEEZO versus maybe some accretion that you might be expecting from the Santen transaction, if you could break down some of those elements? And then I have a quick follow-up on IHEEZO.
Mark Baum: Andrew, do you want to cover Q3 confidence, 2023 and Q4 and also the projections in 2024? I think that was it.
Andrew Boll: Yes, I can try. Hey, Mayank. Thanks for the question. Just in regards to the confidence, we put out the new range. It is fairly large. We realize that. And as Mark kind of mentioned in the letter, there’s a couple of things that we’re working on that if they go away, we’re going up on the higher end of the range. If they get pushed into Q1, we’re going to have to capture it in 2024. But we feel pretty confident about the numbers. Anything can happen obviously. We’re halfway through the quarter, but we feel good about the first half and feel good about the potential for the second half. In regards to the sort of breakdown between your contribution between products from Santen and IHEEZO, we’re expecting that Santen portfolio to continue to perform.
I can kind of talk, Mark talk about the strategic rationale for that transaction. It’s not going to be a big, big driver of revenue in the future. It’s going to have an incremental impact on the financials this year and next year, but we think it’s going to be positive and it’s going to be accretive. IHEEZO, as Mark talked about a lot on the call today and in the shareholder letter, that ramp we’re seeing where we saw at the end of last quarter, we should see continue in Q4 and we expect it to continue to increase in 2024. And so contribution from IHEEZO as a major product should just continue next year as we grow revenues. Mark, do you want to comment a little bit more?
Mark Baum: Yes. Look, the Santen basket we paid $8 million upfront is very low risk. It was really connected to rounding out our branded portfolio, allowing us to play a larger role in the prescriber’s office, and it’s going to produce a great ROI. We paid $8 million for it, but we also paid $8 million for VEVYE upfront. VEVYE, in terms of affecting the overall value of the company is going to far exceed what we paid for Santen and what we expect from the Santen assets. So that should give you some scale. We’re going to invest significantly in VEVYE because the market opportunity is much, much larger for us. And I think that’s a great place to invest resources.
Mayank Mamtani: Maybe I can throw my two questions together. So number one on IHEEZO quickly. On the stockholder letter, you say somewhere that you’re planning to meet with CMS to clarify a billing policy that has historically not allowed for a separate billing in a physician’s office. So could you just clarify if that’s related to cataract surgery offices, specifically? And also, anything specific to your recent effort with [indiscernible] offices that is where we are sharing? What sort of sales metrics you’re tracking there that you are seeing now translate into unit demand and revenues? And then, lastly, what you just said about VEVYE, the excitement there. I know it’s early with Miebo launch with Bausch + Lomb but they seem to be allocating a lot of resources there.
So could you just share? You have an opportunity to learn from what they are doing going second. And I believe you also showed some 12-month data there in your stockholder letter. Could you just put in context the clinical relevance of that chart that you have put in your stockholder letter for VEVYE? And then, thanks for taking my questions.
Mark Baum: Okay. I think that’s a 3 or a 4 parter, so I’m going to try and tackle it. Andrew, let me know where I fall short. As far as CMS goes, let me be clear, our pass through is 100% intact in the ASC and the hospital and outpatient department. We are, as I said in the stockholder letter, we are actively working to ensure that we can extend that pass through. That decision will not be up to us. It will be up to CMS. But there are other products in this category, in the ophthalmic pharma category, that are buy and bill that have been able to extend their pass through. The meeting that we have with CMS is coming up fairly soon, we expect. I can’t really comment on the specifics of that meeting, but we do seek to just clarify the use of J2403 in the physician’s office.
That said, we are selling into that market and reimbursements are happening. And this, I think will depending on the outcome of the meeting, I think have a significant upward potential value impact on that asset and that’s why we’re going to be meeting with CMS. So once again, we don’t control that decision-making, but we’re excited to meet with CMS in the fairly near term. In terms of VEVYE and what we can learn from the Miebo launch, obviously, Miebo is the other SFA or semi-fluorinated alkane product, water-free product to hit the market. I think you may have even, I believe, put it in your eye, you’ve experienced it, it’s a great product. And B&L, I think, has had a fairly successful launch. So we can learn a lot from that experience. We think that there will be many, many prescribers that will want to have cyclosporin on board for their patients.
