So from an R&D perspective, as we noted in the comments, we are focused on continuing to support the Cohort 2 part of the Phase I study from 155 to a readout, which we expect in the third quarter. We saw some incredibly interesting data from the first cohort. If we’re able to replicate what we saw in the first cohort and the second cohort and together between the 2, we think that’s interesting for that indication, but also to open up other areas within, for instance, AMR. That said, we are incredibly focused in R&D on that. So we are pausing our activities elsewhere. We do think there’s an opportunity to reengage. But for the time being, our focus is really on VOWST, maybe I can hand it over to David.
David Arkowitz: Yes. Thanks, Jeff. Thanks, Eric. Yes, Jeff, let me give a little bit more granularity. So the reduction in force is generating at about $75 million to $85 million in 2024, cash saving, it’s generating about $35 million of it. So that’s about 40% of that total range. Another 40% is coming€”roughly is coming from R&D expenses and then the remaining 20% coming from G&A expenses and other activities. As it relates to€”I can also add€”just provide a little bit more color on your breakeven question. If we just look at the Q3 results, as we talked about, VOWST collaboration had a total loss of $12.9 million, and that was on a base of $7.6 million in sales. So COGS and sales and marketing expenses for the quarter were about $21 million.
So that’s just 1 quarter, our first full quarter. So I would caution folks in extrapolating that extensively, but it just gives you some additional insights on the level of support required to drive sales early in the launch.
Operator: Our next question comes from Keay Nakae with Chardan.
Keay Nakae: Two questions. First, in terms of the reimbursement discussions, is there specific areas where you hope to see some€”the next tranche of wins? And then the second question with respect to the next tranche from the debt facility beyond the sales metric, any other conditions that are notable that you need to qualify under in order to get that tranche?
Eric Shaff: Yes, good morning, and thanks for the question. On the reimbursement piece, I think Terri hit that beforehand, but maybe a quick response from Terri, and then I’ll ask David to comment on the debt tranche.
Dr. Terri Young: So I guess one thing to add is our focus, as a reminder, has really been on the commercial plans in the commercial business because of the Part D mandated contracting cycle and the contracting window they’re having passed for ‘24. So we’re very focused on commercial and those particular plans, it’s not like there’s a bolus of them come online at any given time. They come online month-by-month by month. So we expect to continue progress across the commercial space as we move through Q4 in the first half of next year with a steady pace.
Eric Shaff: David, on the debt question?
David Arkowitz: Yes, there’s really no other meaningful applicable conditions. There is a requirement of low single-digit quarter-over-quarter sales growth, which we’re in, obviously, ramp mode here as it relates to the vast launch. So we do not view that as particularly notable.
Operator: Our next question comes from Chris Shibutani with Goldman Sachs.
Stephen Sloan: This is Stephen on for Chris. We had a couple of questions. First on the VOWST launch. Can you comment on the utilization trends, particularly thinking about the split of patients between the inpatient versus outpatient setting? And then if there is a differential response from payers approving reimbursement in those 2 settings. And then on the restructuring, there’s€”I’m hearing some cognitive dissidence given that you’re framing the VOWST launch is very successful, but on other hand there’s restructuring. So is this more coming from the pipeline just not generating more near-term commercial opportunities? Some color around that would be helpful.
