LENZ - LENZ Therapeutics, Inc.

Operator: Good afternoon, ladies and gentlemen, and welcome to the LENZ Therapeutics, Inc. First Quarter 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Following prepared remarks from management, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this call is being recorded. I would now like to turn the call over to Daniel Chevallard, Chief Financial Officer. Please go ahead.
Daniel Chevallard: Good afternoon, and thank you for joining us today. We are joined by Evert Schimmelpennink, our President and Chief Executive Officer; Shawn Olsson, our Chief Commercial Officer; and Marc Odrich, our Chief Medical Officer. Before we begin, I would like to remind you that this call will contain forward-looking statements regarding LENZ Therapeutics, Inc.’s future expectations, plans, prospects, corporate strategy, regulatory and commercial plans and expectations, cash runway projections, and performance. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors and risks, including those discussed in our filings with the SEC, which can also be found on our website. In addition, any forward-looking statements represent only our views as of the date of this webcast and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update such statements. The company encourages you to consult the risks contained in our SEC filings for additional detail, including in our first quarter 2026 Form 10-Q, which is being filed today. With that, I will now turn the call over to Evert.
Evert Schimmelpennink: Good afternoon, everyone. In Q1, our performance was consistent with the expectations we outlined on our last call. We delivered approximately 25,000 paid and billed prescriptions, bringing total monthly units sold since launch to roughly 46,000, and generated $1.9 million in net revenue, including $1.7 million in product sales. New patient adoption has continued to grow, but not yet at the pace we are aiming for, and I want to address that directly. We have done the work on the standard dynamics, identified what needs to change, and we are executing on those changes now. We are continuing to build confidence given the strong fundamentals underlying the top-line number and the strength in the category we are building. Our product clearly works in the real world, which is reinforced by consistent feedback from both doctors and patients, underscoring that real-world efficacy is living up to expectations. We have built a growing base of prescribing physicians with over 10,000 unique prescribers through the first quarter, and new prescribers are writing for the first time every day. We are seeing a very clear productivity signal emerge within our prescriber base. At approximately the same stage of launch, around 46,000 filled scripts, this is generating roughly 70% more scripts per prescriber than Vuity, a pattern that holds across all our prescribing cohorts. In other words, we are reaching the same level of script volume with fewer writers because physicians who adopt are prescribing more consistently. Early adoption builds more gradually, but as prescribing embeds, it drives consistent uptake. In addition, we continue to see promising patient adoption and persistence. Once patients move from sampling to purchasing the product, many stay on therapy, which we have seen reflected in early refill data and in purchasing patterns. Over two-thirds of our e-pharmacy volume is now coming from three-month prescriptions, a meaningful increase in e-pharmacy consumer purchasing behavior from Q4 to Q1. This is what we want to see from a sampling-led launch: patients try the product first, convert after experiencing the benefit, and then continue use. Taken together, this gives us confidence that we are building the category on a durable foundation, and we view these metrics as important early indicators that will scale over time. At the same time, as we noted on our last call, building a new category will take time, particularly as prescribing habits and patient behavior evolve. Through Q1, the pace of new patient starts and routine ECP prescribing was more gradual than we expected. We are laser-focused on improving that over the coming months, and we will hold ourselves accountable to demonstrating this in upcoming quarters. With several months of launch experience, we believe we have identified the key barriers to adoption. Over recent months, we have focused on these areas in depth, including through extensive work with advisory boards and direct engagement with both physicians and patients to better understand how to improve both the prescribing process and the patient experience. There are two primary areas where we see clear opportunities to drive adoption. First, on the physician side, awareness is extremely high among ECPs, and the product is recognized as best in class. However, it is not yet being brought up proactively enough in the patient conversation. This requires an important behavioral shift as physicians learn to incorporate a new type of treatment into a routine exam flow that has not historically included a novel pharmaceutical option for presbyopia. Second, on the consumer side, the path from awareness to prescription and ultimately to purchase is naturally a multistep one. Surveys and direct feedback have highlighted where the patient’s journey can be further improved to support conversion. Based on these insights, we are sharpening execution and have already taken targeted actions to accelerate adoption. On the physician side, we are refining how best to introduce the product in the exam room, to make it simpler and more natural to bring into the conversation. One example is a renewed focus on contact lens patients. This provides a clear and immediate value to the practice by helping patients stay in their lenses longer. It serves as a practical entry point that corresponds to a significant part of the patient and revenue base. By highlighting ECP success stories to illustrate how this has been integrated into practice for these patients, we help physicians better understand and use the product more consistently to drive real value and, from there, expand usage more broadly across the presbyopia population. These refinements are informed by direct work with advisory boards and testing panels, where we have incorporated real-world feedback on what works and how to improve both the ECP conversation and patient experience. On the patient side, we are evolving how patients get started on therapy. We have introduced tools, including a simple QR-based “getting started” video that clearly explains how to use the product and what to expect, helping patients complete the initial trial and transition more confidently to ongoing use. Additional materials to support this effort are finalized and will be rolled out shortly. In addition, where permitted, we are enabling physicians to sell the product directly to patients in their practices. This can simplify access and reduce friction in the conversion process. Early feedback on this approach has been encouraging, while we remain mindful that it is not available in all markets. Taken together, these actions are designed to increase both how often the product is introduced in the exam room and the conversion from trial to ongoing use. In parallel, as we scale the product, we are continuing to improve the overall user experience. We are transitioning to an FDA-approved large-scale manufacturing process that will further improve our direct-to-customer experience. This also allows for a tighter formulation specification and an enhanced vial format, which we expect will further improve both ease of use and comfort on instillation. These are natural advancements as we move from initial launch to broader scale and are part of our ongoing focus on optimizing the vision experience. Our attention is now on execution against the key drivers I highlighted today. We expect that these actions will drive meaningful and measurable progress in ECP and consumer adoption as we advance through the year. We have a product that clearly works in a large and underpenetrated market, and we continue to see strong validation from both patients and physicians on the value it brings. At the same time, we are building a new category, and both prescribing habits and patient behavior will need to evolve. Importantly, we have a solid, actionable understanding of how we can influence that evolution to accelerate adoption. We have already begun to act on these insights and initiatives. As these actions continue to roll out across the field and the patient journey, we are focused on demonstrating meaningful and sustained script growth over the coming months and quarters. Lastly, in parallel, we are seeing strong momentum outside the U.S., with recent European and U.K. submissions, as well as meaningful inbound partnering interest from key markets, including Europe and Latin America. Combined with our existing partnerships across China, Southeast Asia, Canada, and the Middle East, we believe we are building a strong foundation for global expansion. With that, I will hand it over to Shawn, who will go into more detail on how we are executing against these priorities.
Shawn Olsson: Thank you, and good afternoon, everyone. As Evert outlined, we are in the early stages of building a new category, and our focus is on translating strong product performance and early adoption signals into consistent and scalable growth. From a commercial perspective, we are encouraged by what we are seeing in the field. Eye care professionals prescribing the product are seeing it work in their practices, and that confidence is translating into repeat prescribing behavior. We are seeing a growing number of physicians not only prescribe but write multiple prescriptions. Approximately 60% of prescribing ECPs have now written multiple times, which we view as a strong signal of confidence and early habit formation. ECP awareness and interest is high, understanding of the product is strong, and consumer interest and awareness are growing. Our focus now is translating that interest into consistent prescribing behavior and consumer adoption, and doing so in a way that shows tangible progress in new script growth in this early phase of launch. We continue to see strong engagement and adoption among physicians. Just a few months into launch, aided awareness is in the high 90s, and unaided awareness is over 80%, which tells us the brand is already well known in the eye care community for the treatment of presbyopia. Physicians clearly understand the product. They consistently describe it as differentiated, pupil selective, and sparing of the ciliary body, while delivering a 10-hour duration. That level of clarity is important because it helps address the major barrier of being compared to previous products in this category. Our focus now is translating that understanding into consistent behavior. This is about helping physicians bring the product into the patient conversation more naturally and more frequently, integrating it into their standard eye exam flow. In prescribing behavior, as Evert mentioned, at a comparable stage of launch the product is generating significantly higher scripts per prescriber than what was observed with Vuity, and we see that pattern consistently across the prescriber base. Once physicians begin to prescribe and integrate into their workflows, they tend to prescribe more frequently compared to what we saw with Vuity at a similar stage. This is not limited to a small group of high-volume writers; we are seeing it more broadly across the base. This ties directly to how we designed the launch. With sampling, patients experience the product first, and physicians utilize these experiences to build understanding and confidence. That creates a more natural fit in the practice, where prescriptions are written with greater confidence and consistency. We see this as an early indicator of how adoption can continue to build over time. One of the areas with the strongest early traction is contact lens patients. The contact lens population peaks in the 30–39 age range, and up to 71% of patients drop out of contact lenses after age 50, often reluctantly, with presbyopia being a key driver. This is not just a clinical issue but a core contributor to practice revenue. Physicians tell us this provides a very practical solution: a way to keep patients in contact lenses and improve their experience at the same time. It is a clear example of where ECPs see benefits for their patients and their practices through regular adoption and prescription as a patient satisfaction and retention strategy. Importantly, this is not just anecdotal. Our most recent consumer survey showed that approximately 50% of users reported contact lenses as their primary form of distance vision correction, reinforcing that this is a meaningful and scalable opportunity to drive adoption. Turning to our consumer strategy, we are encouraged by the early momentum we are seeing, and we also see key opportunities to improve conversion and scale adoption. Patients are interested, and we are seeing strong engagement across our channels. Our focus now is improving how patients move from awareness to prescription and ultimately to purchase. The journey in a new prescription category is naturally more complex: a patient sees an ad, learns about the product, schedules an appointment, receives a sample, and then decides whether to move forward. Each step creates an opportunity to either progress or drop off, and our focus is on making that process simpler, clearer, and more intuitive. Our direct-to-consumer campaign is driving strong engagement, with significant increases in website traffic and early indications that patients are entering the funnel. When patients convert, they are engaging in a more committed way. In our e-pharmacy channel, which represents more than half of our prescriptions, over two-thirds of volume is now coming through three-month prescriptions, a strong signal of intent and early persistence. We are actively refining our approach to improve conversion. On the messaging side, we have shifted to a direct problem–solution value proposition centered around “tired of reading glasses,” which connects with the everyday experience of presbyopia and positions the product as a simple alternative. We are improving how patients get started, including stronger expectation setting around how the product works, clear dosing instructions, and what to expect in the first few days. We have prepared simple onboarding tools, such as QR-based resources that guide patients through the initial experience and help them transition from trial to ongoing usage. We continue to expand and refine our media approach, testing additional channels such as linear television in select markets, while actively optimizing our creative and media mix based on real-time performance data to ensure we are driving the most effective engagement. We are also seeing increased interest from physicians in directly selling to patients from their practices where permitted. This approach is being implemented in select markets and structured in a way that maintains our expected economics while giving practices additional flexibility to serve their patients. We believe this can provide significant convenience, enabling patients to leave the ECP visit with product in hand, reducing the hurdle of pharmacy abandonment. Finally, these efforts are supported by the expansion of our field organization, which will be fully deployed by the end of this quarter. This increases the reach of our sales team to approximately 15,000 targeted eye care professionals, allowing us to respond to inbound demand from physicians outside our initial target group and to build higher-frequency territories. Taken together, our actions are focused on increasing the number of patients who move from initial interest to trial and from trial to ongoing usage. Overall, we are encouraged by what we are seeing in the early stages of the launch. We have strong physician engagement, clear patient interest, and a growing set of levers to drive adoption. Our focus now is on translating these actions into meaningful and sustained NRx growth over the coming months and quarters. We believe we have the right elements in place, and our priority is executing against them with discipline to build momentum from here. With that, I will turn the call over to Daniel to walk through our financial results.
Daniel Chevallard: Thanks, Shawn. As both Evert and Shawn have stated, we are encouraged by the product’s performance in the hands of patients and ECPs as we build the presbyopia market. The early signs of broad ECP uptake are there, as evidenced by over 10,000 prescribers in the first two quarters of launch, a figure higher than any recent launch in ophthalmology at this stage. Consumers are also emerging with positive real-world experiences every day as awareness deepens and our early launch efforts take hold. Our first quarter results were highlighted by approximately 25,000 paid and billed prescriptions, a 19% increase compared to Q4, resulting in approximately $1.7 million in net product revenues. Our units continued to be driven by both new patient prescriptions and, increasingly, by monthly refill units, including single monthly packs and three-month orders available through our e-pharmacy. While it is early to be declarative about projecting annual refill rates, we are encouraged by the initial trends. In Q1, consistent with last quarter, we noted blended gross-to-net discounts across distribution channels of less than 10%, resulting in approximately $67 in net revenue per monthly pack. Additional blended costs of the respective distribution channels of approximately $7 per unit were incurred and flow into operating expenses within SG&A, resulting in a net cash per unit of $60 per pack. That is unchanged from last quarter and in line with our longstanding expectations. Additionally, we recognized license revenue in Q1 of $250,000 from the distribution agreement signed in January with Fanatics, our ex-U.S. distribution partner in the Middle East region. As discussed on our Q4 call, there is significant effort underway with our existing ex-U.S. commercial partnerships as we advance towards multiple additional regulatory approvals, and we remain focused on the continued expansion of our global network of commercial alliances. Turning now to operating expenses, our cost of sales in the first quarter totaled $1.1 million and was comprised primarily of two nonrecurring events resulting in charges unrelated to product sales. The first was a period cost stemming from an out-of-specification temperature excursion of inventory while in transit from our manufacturer. We expect recovery from this product loss from our insurance provider in the second quarter. In addition, we incurred a one-time charge for packaging supplies associated with the FDA-approved manufacturing process improvement and transition previously mentioned. Direct product cost of sales related to our Q1 product sales were immaterial, and we anticipate this to trend to approximately a 90% direct product gross margin over time. Total SG&A expenses increased to $45 million in Q1 2026, or approximately $40.7 million net of noncash stock-based compensation. This was a 13% quarter-over-quarter increase from Q4 and was driven by our planned DTC launch investment. Consistent with last quarter, approximately 80% of our SG&A was driven by sales and marketing, with the remainder representing general and administrative expenses. Of note, we anticipate that our Q1 2026 SG&A and resulting cash burn are higher than our go-forward quarterly run rate over the balance of 2026. Total research and development expenses were $0 in Q1, consistent with last quarter. Finally, our net loss per share, both basic and diluted, was $1.32 on a net loss of $41.5 million. We ended Q1 2026 with approximately $258.4 million in cash, cash equivalents, and marketable securities, and our Q1 2026 net cash burn of approximately $34 million was consistent with Q4 and in line with our budget. As discussed on our recent year-end call, our current sales force expansion is in our 2026 operating plan, and we will continue to target an allocation of approximately 80% of our SG&A to sales and marketing. In summary, we entered 2026 at an important point in the launch, with a clear operational plan, a strong cash position, and conviction that the actions underway will translate into meaningful growth. With that, I will turn the call back over to Evert.
Evert Schimmelpennink: Thank you, Daniel. To conclude, I am incredibly proud of the LENZ Therapeutics, Inc. team and the progress we have made over the first two quarters of our launch. We are seeing what we hoped to see: a product that truly works, encouraging early signs of patient persistence, and a growing base of prescribing physicians. At the same time, we are under no illusions about where we need to go. Building a completely new category takes time, and effecting changes in prescribing habits and patient behavior is crucial. We have progressed from diagnosing the early adoption dynamics to actively addressing them, and we are committed to demonstrating clear and measurable progress over the coming quarters. Our focus now is on accelerating new patient adoption through disciplined execution in the field and continued investment behind the category. We believe we are in the early stages of building what can become a significant and durable market, and we will continue to execute our priorities, translating this into meaningful and sustained script growth. We will now open the call for questions.
Operator: To withdraw your question, press 1 again. Our first question comes from the line of Stacy Ku with TD Cowen. Please go ahead.
Stacy Ku: Hey, thanks for taking our questions, and we appreciate the detailed launch discussion. A few follow-ups. First, it is still early days with linear TV and the first steps of the sales force expansion. Can you provide additional detail on encouraging signs beyond the current prescription trajectory? Are you able to identify a specific type of practice that is prescribing multiple times? Second, on the three-month metric from the e-pharmacy, it is interesting. For the next earnings call, will we be getting specifics on refill dynamics? Third, on sampling and competitive dynamics with new entrants like Uvezi and Qlosi, what type of counter-detailing are you seeing, and do you expect sampling from both? Lastly, on safety, can you contextualize what we are seeing in the FAERS database now that the product has been on the market for over six months? What are your views on the safety profile, and maybe, Shawn, share perspectives from patients and prescribers?
Evert Schimmelpennink: Thanks, Stacy. Great set of questions. I will address the refill question first, then hand it to Shawn for DTC, practice types, and competitive sampling, and Marc for safety. On refills, we have been clear from the beginning that we will start to share cohort-based refill data in the second half of this year. The rationale is to allow initial launch cohorts to mature so that we can provide more meaningful statistics. For example, a three-pack purchase logically pushes the next reorder out at least three months. We want to observe consistent patterns across cohorts before providing specifics, so expect more detail in H2 2026. Shawn?
Shawn Olsson: Thanks, Stacy. On encouraging signs beyond the headline script trajectory, the early indicators from DTC are strong. Engagement with ads is high—we track click-through rates and cost per thousand impressions—and website traffic is up significantly, with peaks up to 10x our historical baseline. Ad recall lifts on platforms like YouTube and Pinterest are better than benchmarks, and we see more patients entering the funnel. This category is naturally slower to convert due to the steps to reach a prescription, so DTC typically takes a few quarters to mature, but we are actively optimizing media mix and creative and have sharpened messaging to a direct problem–solution of “tired of reading glasses—here is a solution.” On practice types, we are seeing broad adoption, but contact lens–heavy practices are notable early adopters given the clear value proposition for patient retention. Regarding the competitive environment, we view the market as able to support multiple entrants, and broader discussion of presbyopia drops benefits the category. Our sampling strategy remains core: trials are easy, and head-to-head in real-world experience, efficacy and 10-hour duration across a broad patient population are key differentiators. Yes, competitors are sampling; we are not changing our sampling commitment because sampling effectively drives conversion and persistence.
Marc Odrich: Thanks, Stacy. On safety, six months in, we have shipped approximately 46,000 boxes, which is roughly 1.2 million doses, in addition to widespread sampling. What we are seeing in the real world is fully consistent with the label. Nonserious AEs are mostly transient and align with the clinical program. On the retinal side, it is important to anchor to background incidence rates—approximately 27 per 100,000 in the general population, with risk increasing with age and myopia. Considering the exposure to date, we have seen zero retinal detachments and only two retinal tears, both in patients with preexisting retinal risk factors. Our retina experts assessed both cases as likely noncausal. Given background rates and our exposure, you would expect more events than this; we do not see a mechanistic signal. For context, at a comparable exposure level, Vuity reported about 34 retinal events, including 22 detachments. Mechanistically, our product is the only pupil-selective miotic and does not significantly engage the ciliary body, the pathway most associated with retinal traction risk in this class. Across thousands of medical discussions, ECPs recognize this difference and consistently associate a lower perceived retinal risk profile with our product versus other miotics. As exposure grows, what matters is that retina-related AE rates remain at or below background and that no mechanistic signal emerges. To date, that is exactly what we are seeing, and we will remain transparent as real-world experience builds.
Shawn Olsson: To add perspectives from the field, doctors clearly understand the pupil-selective MOA—this is explicit in the PI—and they consistently report a benefit to distance vision, which aligns with sparing the ciliary muscle. For consumers, our focus is expectation setting around transient instillation effects like mild blur or redness and ensuring proper dosing and use. Our “getting started” videos and QR resources, along with office training, are designed to set those expectations and improve the early experience.
Operator: Your next question comes from the line of Yigal Nochomovitz with Citi. Please go ahead.
Yigal Nochomovitz: Thanks for all the detail. You mentioned prescribers are not proactively talking enough about the product in initial patient conversations. Can you expand on that? Beyond contact lens wearers, are there other natural hooks in a patient profile to introduce the concept in an initial conversation? And earlier, before launch, you talked about average utilization around five months per year, varying by user type. Is that still a valid assumption, or does it need to be adjusted?
Shawn Olsson: Thanks, Yigal. In a typical 20-minute eye exam, physicians follow a well-established cadence, and unless a patient raises the topic, it can be challenging to introduce a new pharmaceutical step. We are making it easier and quicker to bring up the product by sharpening messages and shifting expectation setting and “how to” into short QR-linked videos, reducing chair time. While the product has broad applicability, contact lens wearers are an especially natural fit given the clear patient and practice value. Beyond that, we are seeing traction with active-lifestyle patients, post-LASIK presbyopes in readers, and “new-to-ECP” presbyopes motivated by the promise of a simple drop. The strategy is to build muscle memory starting with contact lens use cases and then broaden from there.
Evert Schimmelpennink: On average utilization, our prior commentary around approximately five months per year on average, with heavier and lighter user cohorts, remains our working assumption. We will refine that with cohort-based data as we progress through H2 2026, consistent with our earlier note about allowing cohorts to mature.
Operator: Your next question comes from the line of Biren Amin with Piper Sandler. Please go ahead.
Biren Amin: Hi, thanks for taking my questions. First, on selling directly to physician offices in select markets, how might this impact your margin? Is there an economic incentive to physicians, and how does the math work for both parties? Which target markets are you reaching, and how many are in your top 1,000 ECP prescribers? And a follow-up: earlier you identified emerging presbyopes as early adopters and wanted to expand beyond this group. Can you talk about efforts over the last six weeks to expand beyond emerging presbyopes?
Shawn Olsson: Thanks, Biren. About half of U.S. states allow optometrists to sell prescription drugs from their practices. Where permitted, we offer doctors the opportunity to purchase directly from LENZ Therapeutics, Inc. We ship to the practice, and from there they prescribe and dispense. From our perspective, net economics are comparable to the e-pharmacy or retail channels—effectively a high-quality direct transaction that avoids certain wholesaler or third-party distribution costs. We target states where this is allowed—approximately 25 of 50—and engagement is strongest where physician demand and patient convenience benefits are highest, including among many of our top prescribers.
Daniel Chevallard: From a modeling standpoint, you can assume roughly similar net cash per monthly unit to the company—around $60 per pack—regardless of whether it flows through e-pharmacy, retail, or direct-to-practice, with minor differences due to avoided channel costs. It is not a material change in net economics to LENZ Therapeutics, Inc.
Evert Schimmelpennink: On broadening beyond emerging presbyopes, we observed early in launch that some ECPs defaulted to narrower patient types, a carryover from prior products with limited efficacy. We have sharpened messaging to reinforce that the product worked across moderate and advanced presbyopia in our clinical program. That includes updated field materials emphasizing broad inclusion criteria and performance, as well as peer-to-peer statements from ECPs sharing success in non-early presbyopes.
Shawn Olsson: Tactically, we deployed a dedicated field piece highlighting clinical inclusion and outcomes across presbyopia severity, updated targeted ECP emails and social posts, and expanded peer-to-peer content to normalize use beyond early presbyopes. This is helping shift prescribing from a niche subsegment to the broader presbyopia population.
Operator: Your next question comes from the line of Analyst with Leerink Partners. Please go ahead.
Analyst: Hi, this is Alyssa on for Marc. Thanks for all the detail. A couple of questions. Could you give more color on the ECP direct sales initiative? Will that be timed shipments, or at-will ordering as inventory depletes? And can you discuss the network TV DTC advertising and what markets you are piloting?
Shawn Olsson: Thanks. On ECP direct sales, we execute a contract outlining the model and rules. Ordering is at will, with a minimum of one case per order. We invoice the practice, collect payment, and then ship directly to the office. From there, they prescribe and sell to patients. It is designed to be simple and operationally clean. On network TV, we have recently started linear TV in select U.S. markets to assess signal and optimize. We are only a few weeks in, so it is too early to provide detailed readouts, but we will monitor and iterate as we do with our digital mix.
Operator: Your next question comes from the line of Lachlan Hanbury-Brown with William Blair. Please go ahead.
Lachlan Hanbury-Brown: Thanks for the questions. On direct-to-ECP sales, should we infer that you are seeing some abandonment between writing the script and patients filling it, and that this will reduce that issue? Or is this more about practice incentive and keeping it top of mind? And second, you mentioned a change to “tired of reading glasses” in the DTC campaign—how much has the content changed with this more problem–solution approach?
Shawn Olsson: Thanks, Lachlan. The direct-to-ECP initiative stems primarily from ECP demand and patient convenience. It is about reducing friction—letting patients leave the visit with product in hand—and about giving practices flexibility, rather than being a response to a specific abandonment spike. On DTC content, the core creative remains strong—SJB continues to test well—so we did not make wholesale changes. The main shift is crisper alignment of the value proposition right up front: a more explicit problem–solution framing that resonates with readers, contact lens wearers, and post-LASIK presbyopes who are frustrated with reading glasses.
Lachlan Hanbury-Brown: On the direct-to-ECP contracts, do you have guardrails on what practices can charge patients?
Shawn Olsson: We set the price at which we sell to the doctor, and practices set their final price. The guardrails come from transparent reference pricing in the market: for example, e-pharmacy at $79 with widely visible GoodRx pricing and our retail structures. Those natural pricing pressures effectively guide practice pricing to remain aligned.
Operator: Our final question comes from the line of Matthew Caufield with H.C. Wainwright. Please go ahead.
Matthew Caufield: Thank you. Regarding refills, any further color on switching from one-month to three-month dynamics, and will we have greater clarity in the second half of 2026? Additionally, with R&D dropping to zero for the quarter, is that expected to remain for the foreseeable future, with OpEx essentially concentrating on SG&A for the launch?
Evert Schimmelpennink: On refills, we do see patients start with a one-pack and then, if they like the product, move to three-packs and continue from there. In e-pharmacy, which represents the majority of our volume, approximately two-thirds of prescriptions are now three-month supplies. As noted, we plan to provide more detailed refill statistics as cohorts mature in H2 2026.
Daniel Chevallard: On R&D, yes, you should expect R&D to remain substantially zero for the foreseeable future. We signaled a shift in capital allocation as the CLARITY studies completed and we moved to commercial execution—you saw effectively zero R&D in Q4 and again in Q1—and we expect that to continue, with OpEx concentrated in SG&A to support the launch.
Operator: That concludes our Q&A session. As I am showing no further questions in queue, thank you for your participation. We will now conclude today’s conference call. You may now disconnect.