Financial Data and Key Metrics Changes - The company ended Q3 2025 with $270.2 million in cash and investments, with no debt on the balance sheet [23] - The net loss for Q3 was $35.5 million, or $1.87 basic and diluted net loss per share [25] - The company expects to end the year with approximately $240 million in cash and investments, an increase from prior guidance of $100-$185 million [24] Business Line Data and Key Metrics Changes - Non-cash royalty revenue for Q3 was $11.5 million, with an expectation of approximately $40 million for the full year [24] - R&D expenses for Q3 were $27.3 million, with full-year expectations ranging between $125-$130 million [24] - G&A expenses for Q3 were $16.1 million, with full-year expectations between $70-$75 million [24] Market Data and Key Metrics Changes - In the U.S., over 15 million people suffer from moderate to severe atopic dermatitis, with fewer than 10% receiving biologic treatments [9] - Nearly 7 million people in the U.S. have or will develop alopecia areata, with over 1 million having severe to very severe disease [10] Company Strategy and Development Direction - The company is focused on advancing its lead program, REZPEG, into phase 3 development, targeting atopic dermatitis and alopecia areata [4][11] - REZPEG aims to provide a novel treatment option for patients with chronic dermatological diseases, differentiating itself from existing therapies [11][19] - The company plans to hold an end-of-phase 2 meeting with the FDA to review phase 3 plans for REZPEG in atopic dermatitis [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of REZPEG to address unmet needs in atopic dermatitis and alopecia areata, especially given the limitations of current treatments [10][19] - The recognition of REZPEG in the context of recent scientific discoveries highlights its potential therapeutic impact [5] - Management emphasized the importance of addressing comorbid conditions, such as asthma, in patients with atopic dermatitis [16] Other Important Information - The company plans to present top-line results from the phase 2b resolved AA study in December 2025 [11] - The company has extended its cash runway guidance into the second quarter of 2027 [24] Q&A Session Summary Question: Upcoming ACAAI data presentation - The company is presenting results from a pre-planned exploratory analysis on asthma control in patients with atopic dermatitis, highlighting the potential impact on treatment decisions [28][30] Question: Interest in REZPEG's remissive effect - Management noted significant interest in REZPEG's potential remissive effect in atopic dermatitis, differentiating it from other treatments [35][36] Question: Phase 3 program for alopecia areata - The company plans to start the phase 3 study for alopecia areata next year, depending on December data outcomes [43][44] Question: Benchmarking against other therapies - Management discussed the competitive landscape, noting that REZPEG's safety profile could provide a significant advantage over JAK inhibitors [66][68] Question: Manufacturing capabilities - The company is confident in its manufacturing capabilities and is exploring options for securing national priority vouchers [74][75] Question: Placebo effect minimization strategies - The company plans to implement strategies to minimize placebo effects in the phase 3 study, similar to those used in the phase 2b study [76][77]