Hi everyone, thanks for being here today. My name is Ranveer Gathwala. I'm a Vice President in the Healthcare Investment Banking Group at J.P. Morgan. We are very pleased to have 4D Molecular Therapeutics with us today. Today we're joined by Dr. David Kirn, Founder and CEO of 4D Molecular Therapeutics. Dr. Kirn will run through a presentation, and I'll moderate with some questions for Q&A afterwards. With that, I'll hand it over to Dr. Kirn to run through the presentation. Thank you.
All right, thank you and good morning. Thanks for having us present today, and thanks to all of you for being here bright and early. Again, I'm David Kirn, Co-Founder and CEO of 4D, and at 4D, we're developing a new backbone for retinal care and moving the field beyond the need for lifelong injections. I'll be sharing with you some of our recent accomplishments as well as the future potential of the company. This is our overview slide for the presentation. We'll be covering the vision for 4D as well as our pipeline. We'll then move into 4D-150, our lead product candidate for neovascular diseases of the retina. Give you an overview of that product as well as our 2025 accomplishments.
We'll then move on to the markets and talk about how big and growing those are, and help you understand why there's still significant unmet medical needs in those markets. We'll then move on and talk about phase 3 and commercialization, what our strategy is there to really de-risk the approval and the commercial potential of the product. We'll finish up with our catalyst for 2026. At 4D, we're redefining genetic medicines. We're developing, and we hope to commercialize durable and disease-targeted therapeutics for large market diseases. Our lead product, as we said, is 4D-150. This is our pipeline. We've got a pipeline of next-generation, locally delivered AAV genetic medicines, really focusing on 4D-150, moving that towards approval and global commercialization. Our retina franchise leverages R100.
This is a proprietary capsid or delivery vehicle vector that we invented using our platform of directed evolution, which allows us to have a simple, safe, routine intravitreal product for patients. So 4D-150 is currently being developed in wet AMD and DME. As you'll see today, we have two phase threes ongoing with excellent enrollment in wet AMD, and we expect to initiate a phase three in DME or diabetic macular edema in Q3 of this year. We're thrilled to have a partnership with Otsuka for Asia-Pacific rights. 4D retains all U.S., European, and rest of the world rights for the product. 4D-175 is our geographic atrophy product candidate. This is a product that has an open IND. It expresses complement factor H for the treatment of GA. We think this has a GA. This has great potential, and we are seeking partnerships to further the development of this asset.
We do have a lung franchise, 4D-710 for cystic fibrosis. This is in phase 2 and is fully funded by the Cystic Fibrosis Foundation. We also have 4D-725 for alpha-1 antitrypsin disease, and this is fully funded by a CIRM grant. So now let's focus on our lead asset, 4D-150. Our goal with this product is to transform the standard of care for large market retinal vascular diseases with a safe, in-office, and durable lifelong backbone therapy. 2025 was really a breakout year. Our team did a phenomenal job, and I'm really excited to outline the accomplishments here today. So first of all, we continue to report out very strong phase 1, 2, and phase 2b clinical trial results with 4D-150, showing excellent safety. The product's been well tolerated with no clinically significant inflammation at our phase 3 dose, now in over 80 patients reported.
Durability, which is a central feature to the promise of this product candidate, has been strong and consistent throughout one and a half to two years of follow-up in a diverse range of patient populations, so we've seen incredibly consistent results over time. Execution of phase 3 has been outstanding, and we've seen really excellent enrollment on 4FRONT-1 and 4FRONT-2 in wet AMD, and this has really accelerated over time as we've released additional data on the product. 2025 was also an important year for diabetic macular edema and that potential opportunity for us, where we got both FDA and EMA alignment on performing a single phase 3 study for approval. Now, this is really unheard of in retina to be able to get a major market approval with a single trial.
We think this reflects the fact that these regulatory agencies acknowledge the unmet need that continues for these patients and 4D-150's ability to meet that need. And we do now have RMAT designation for DME in addition to wet AMD. This is a breakthrough designation for biologics. We also hired, as you'll see today, an industry-leading retina team for both development and commercialization. And as I said, we closed a partnership with Otsuka in the Asia-Pacific region while retaining important U.S. and European and rest of the world rights. Financially, as you'll see today, we're in a strong financial position. We did close a $100 million raise in Q4. This gives us a runway out into the second half of 2028, which is more than 12 months beyond 4FRONT-1 phase three top-line data readout. So it was a great year for us, and our team did a phenomenal job.
Let's talk about the 4FRONT-1 phase 3 enrollment. This has been significantly exceeding initial expectations from the beginning and has really accelerated in the second half of the year after we released additional data on the product. As physicians become more aware of 4D and its safety and its durability potential, this has really ramped up enrollment dramatically. We're thrilled to announce today that we've actually passed 400 patients enrolled or randomized and/or approved to be randomized as of today. Phenomenal job to get 400 patients on in less than nine months' time. We do still continue to expect enrollment completion in Q1 with approximately 480 total patients. These are treatment-naive patients. This enrollment that's occurring is in frontline patients, which really tells you something about the safety profile and the acceptance by the physicians' community for this product opportunity.
Now, 4FRONT-2 is a global study. In this case, it's 60% treatment-naïve patients, approximately 40% who have received anywhere from one to four prior treatments, so still relatively recently diagnosed. This study is now open in the U.S., in multiple countries in Europe, Latin America, and in Asia-Pacific, including Japan. So we're thrilled with the momentum here, and we do expect completion of enrollment in the second half of this year. So I talked about a leadership team. None of this is possible without phenomenal people, and we're thrilled to have this team for development and commercialization of retina therapeutics. So I'll start with Julie Clark. Our CMO has been in the industry for more than 20 years. Dhaval Desai, our Chief Development Officer, also a 20-year veteran with tons of experience in retina.
And then Chris Sims, our Chief Commercial and Business Officer, 25-plus years in the industry. This team has worked together at multiple companies, including companies such as Novartis and Iveric. So they work very successfully together to develop and commercialize products. They've been involved with products such as Lucentis, Beovu, and Izervay most recently. So this team knows how to get products approved and commercialize them. We're also thrilled to announce that we have Glenn Sblendorio now on our board of directors. Glenn was the CEO of Iveric, helped to build that company and get the Izervay product approved and launched prior to acquisition by Astellas. So phenomenal team. We're really lucky to have them. Okay, now let's talk about the retinal vascular disease market. This is a huge and growing market, as you'll see, and there's still residual unmet needs that we hope to address.
So we believe 4D-150 can be highly disruptive in this rapidly growing market. It's $17 billion approximately annually for all anti-VEGF therapies and $14 billion specifically for wet AMD and DME, which are the current diseases that we're addressing. There's approximately nine million people in the U.S., Europe, and Japan with these diseases, so very high prevalence of nine million. And a new 600,000 or so patients are diagnosed every single year. So this is a large population that we're addressing, a large market. And these diseases continue to be top causes of permanent vision loss. So we think of this as being these are being treated diseases that have pretty good treatments, and we do, but the end result for most patients is still losing their vision and ultimately going blind. These populations are growing rapidly.
Not only is the population aging, but we also see an increasing incidence of diabetes. This is a large, growing market, and we believe we can be highly disruptive in this market with an effective therapy in 4D-150. Let's talk a little bit about the patient journey. Most of these patients with wet AMD are in their 70s or 80s. A big part of the way they still enjoy life, enjoy their families, their grandkids, their friends, is through their vision. It's central to who they are, how they encounter the world, and to their independence. When they start to lose vision with diseases like wet AMD, this has a huge impact on their life. It's terrifying for them, frankly. This leads to isolation, loss of autonomy, and need to rely on caregivers. It leads to a lot of uncertainty in their future, fear, and depression.
Fortunately, there are effective therapies for this disease with bolus anti-VEGF treatment. You see an example here of an injection into the eye, but the problem with this therapy, albeit it's biologically highly active, is that these patients are now locked into the need for lifelong injections, and these are repetitive, typically every month or two, where they and their caregiver need to go into the clinic, have all that anxiety, that buildup, get an injection in the eye, which can cause pain and blurry vision. And this is really burdensome to their lives and the lives of their caregivers, and imagine getting this diagnosis and knowing you need to do this for the rest of your life, going to the clinic every month or two for these injections, so good news is effective biological therapies, but there's still a huge unmet need.
Unfortunately, despite all this burden, as you'll see in a minute, patients still lose vision. This is an example at the top in red of the treatment regimen for on-label aflibercept, the market leader. You can see that patients, each of those needles is a day out of their life and all the anxiety leading up to it and for their caregivers. You look at that, we're talking about approximately 30 injections over five years. Now, that doesn't even take into account all the other clinic visits that they may need to have or all their other medical visits for other medical conditions. This is an incredible burden. Now, in theory, if patients were able to sustain this, you could see the vision improves in this graph and then would be maintained. Unfortunately, in real life, that's not what occurs.
This regimen is just too burdensome for patients to adhere to. So what happens? In the real world, this is data from the TRUST study, a very highly cited real-world study about Anti-VEGF treatments in these patients. Fully 40% of patients, even in countries where these therapies are readily available, 40% will go off therapy and discontinue it within a year. Think about that. You know you need these injections to maintain your vision, maintain your independence, be able to see your grandkids, and yet 40% discontinue. They just can't do it. So think about that. And all of these patients will then ultimately lose vision, and most will ultimately become blind. So that's a big problem. What about the other 60%? Well, in the real world, these patients continue to lose vision.
We believe that's associated with the fact that they don't stay on the on-label regimen, and they eventually get fewer and fewer injections over time. And this leads to relentless vision loss. So again, these patients are doing their best. Their caregivers are doing their best, but they're still constantly losing vision over time. So there still remains a huge unmet need despite our knowledge of this disease and effective therapies. So what if we had a continuous backbone therapy? And what we mean by that is a therapy where with a single dose into the eye, patients could have the potential for lifelong continuous anti-VEGF therapy without the need for these bolus injections.
What we believe that would look like, and there's actually real-world data to support this, is that vision would be maintained and their quality of life would be dramatically improved by not having to come into the clinic for these repeat bolus injections. So this would be a phenomenal, exciting outcome for patients. And as you'll see in a minute, we think 4D-150 has the potential to meet this potential. So what's the evidence that physicians still recognize that durability, more of a backbone therapy need, is still the number one need in the field? Well, every year, the American Society of Retina Specialists does a survey called the PAT Survey, very well-cited, very well-regarded. And every year, the number one need, the number one most important thing that physicians think about when they prescribe to a patient is sustained efficacy.
It's that durability, that need to give patients longer times of treatment between injections, and this has been consistent despite the approval of aflibercept and Vabysmo and other agents. So still a huge unmet need. Now, there have been improvements in durability. Moving from Lucentis to Eylea, in the real world, it's estimated this added about 14 days in between injections. So to us, 14 days sounds like almost nothing, but for patients, this was huge, and in fact, you can see the commercial launch of this, the first three years, over $3 billion of Eylea was sold because there was such a desperate need for this, despite it only being about a 30% reduction in treatment burden. Moving to Vabysmo, this has been over a $4 billion launch in the first three years for an additional 14-day increment, so think about that.
14-day increments are leading to blockbuster drug opportunities. That's how much patients need this and want this. And importantly, none of these agents has the potential for long-term injection-free durability of a year or two years or even lifelong. That's never in the cards. Okay. So what's the evidence that physicians. This is not us talking. This is physicians, independent physicians in the U.S. and Europe, approximately 1,000 are surveyed for this. When they are asked, "What excites you the most in the pipeline of novel retinal therapies?" The number one most exciting thing is gene therapy. Now, think about that. We think in other areas of medicine, people are worried about the toxicity of IV, AAV gene therapy. There's been commercialization issues and hemophilia. It's very different in the retina.
These physicians know that gene therapy has the potential to address the high unmet need, which is these burdensome bolus injections lifelong for patients and vision loss. Gene therapy is actually noted as the number one most exciting asset in about 50% of the cases. The next closest one is TKIs, which are about a third of that. Think of that. This is consistent with what we hear when we go to the clinics, and it's consistent with the enrollment rate we're seeing in treatment-naive patients on 4FRONT-1. Physicians and patients really want this. We would argue we're the only gene therapy that can be administered with a simple, safe intravitreal injection without significant toxicity in both wet AMD and DME.
So what would this look like on the market if we can continue these results in phase three and continue them in the real world? Well, quite simply, this would be paradigm shifting. You're going from thinking about increments of durability in terms of 14 days. Here, you're thinking about months, years, potentially lifelong. We also have shown treatment burden reductions of 80%-90%. And we also have shown patients have the potential to be injection-free for many years. We have patients out well beyond three years completely injection-free despite previously receiving approximately 10 injections a year. So this is paradigm shifting potential. So how do we do that? So we start with a proprietary capsid that we invented through directed evolution on the left. This allows us to do safe, low-dose intravitreal injection. And what we express is the market leader. This is not new biology.
This is not a new target. This is not a new molecule. This is aflibercept. This has been in over 60 million eyes safely and effectively. We're just delivering it in a better way, a continuous expression in the retina right where it's needed. We also add an additional molecule to knock out a fourth VEGF family member called VEGF-C. So this is the design. What have we seen in terms of safety? So this is over 70 patients with wet AMD. The dark green means there's no inflammation. So these patients are studied every month or while they're on study for many years, looking very, very carefully for inflammation. You can see no inflammation from six months on in any patient.
And even in the first six months when the capsid's there, we had less than 3% of patients had a single mild case of cells present, not clinically meaningful, and patients all got off their steroid eye drops. So we're really excited about this consistent safety, and we think this really is what's driving enrollment. DME, similar outcome. And people worry about DME because it's more inflammatory. So if you're going to see an inflammatory signal, you're probably going to see it in DME. And yet here, nine patients at the phase three dose, zero inflammation at any time point through 60 weeks. So really, this is game-changing safety potential and again, is driving the excitement. Now, what about efficacy? So we've studied 4D-150 in a broad range of different patient populations, both in wet AMD and DME.
In wet AMD, we actually started with the hardest-to-treat patients, which is typical in drug development. It is important for commercialization, but this is probably the population we'll start with before broadening out to all patients with wet AMD. And you can see here, these patients were getting about 10 injections prior to coming on study. So if you use patients as their own control, we would have expected over a two-year period, these patients to get about 20 injections. Think about that. 20 injections. Everyone being a day off with your caregiver, going in, having the anxiety, getting the injection. We reduced the need for treatment with 4D-150 by almost 80%. We took 80% of those injections and that discomfort, that anxiety out of the system. And importantly, what you can see here is at the bottom in blue, we break it down in six-month increments.
That effect is constant. 1.3 injections on average. 1.2 on average. 1.2 on average. So this is durable and consistent and predictable, which is what physicians and patients want. Importantly, on this study, we showed stable visual acuity, which was equivalent to aflibercept on label with extra supplementation. Retinal anatomy was stabilized. We didn't see these fluctuations that you typically see. Nice and stable retinal anatomy, which means we're protecting the retina and preserving vision. And importantly, in this population, no meaningful inflammation signal. So what happens when we move earlier line? These are not less severe patients. They're just patients who are more recently diagnosed, where their retina is more intact, perhaps more able to be transduced at a highly efficient level. What we see here at a year and a half is an over 90% reduction in treatment burden compared to on-label aflibercept.
So more than 90% reduction if we can get to these patients early. Importantly, visual acuity, stable and maintained. Retinal anatomy, no fluctuations and excellent safety. Now, what does it look like in this population when we break it down by individual patients? Fully 73% of these patients at one and a half years had no injections. So they went into this thinking, "I'm going to get about nine injections over that time frame." That's what they were told until they went on our study. 73% of those patients have not had a single additional injection. Think about that impact on their life, on their vision. Importantly, this is the population that most clearly mirrors our phase three population. So this is very comparable to our phase three population. We're seeing these kind of results. Okay. What about DME?
We have less data here, but at the high dose, a phase three dose here, we see about an 80% reduction. So it's consistency between different patient populations of 80%-90-plus% reduction in treatment burden. And at over a year's time, 44% of these patients with DME were completely injection-free. And again, we showed you excellent safety in these patients. So let's talk about our global phase three program. Again, we've designed this program for global approval and global commercialization. So let's start with wet AMD. We believe we've really de-risked this product with our clinical data. We've showed this continued strong, highly consistent data in phase one and phase two B populations. And we've seen it across a broad range of patients. So that's important. We're not going in blind to phase three.
And we've done extensive dose ranging in these studies, and we've always seen a consistent dose response. So we know we have the right dose. We're using a standard gold-plated phase 3 design. So these are straight down the middle, non-inferiority for BCVA study designs that have been used for Vabysmo approvals, aflibercept approvals. Regulatory agencies are very comfortable with these and familiar with these. So very standard for global approvals. We've optimized the phase 3 population. So we've looked at that data from the phase one to two B studies and said, "We can identify the patients who are most likely to have the most significant benefit on this study to give us the best possible chance for approval." So these are recently diagnosed naive patients, as you'll see on both studies. And then one study allows patients to have a few prior injections.
We've also required that patients on study have aflibercept response to make sure we have responsive patients. And we've excluded patients with severe outlier retinal fluid accumulation. So we think we've optimized the population for success. And importantly, we have global regulatory alignment with the U.S. FDA, where we have RMAT breakthrough designation, EMA, where we have PRIME designation, and in Japan with the PMDA. So let's talk about DME. Well, again, we think we're in a similar position here. Continued strong phase 1/2 results reported last year. Industry standard trial design here, BCVA non-inferiority. And we have global regulatory alignment with FDA and EMA on performing a single phase 3 study for approval. So again, it's very unusual. We're not aware of another instance where a company's been allowed to do that for a second indication with their lead product in this space.
We think, again, it's a recognition of the unmet need and the potential of 4D-150. Now let's talk about what this looks like as we move forward. Again, as we said before, if we achieve this target product profile in phase three in the real world, this is a paradigm shift. What would this look like commercially? Again, we're thrilled to have Chris Sims, who's on our team, who's been very successful in launching multiple major retina products, including Izervay, Eylea, and was involved in Lucentis as well. From a global scalability standpoint, we have best-in-class manufacturing. We've tech transferred to a commercial CDMO, very well-known and successful CDMO. We think we're in great shape from a manufacturing standpoint. We have a very favorable cost of goods margin. We're talking less than $1,000 potentially.
We think this gives us strong pricing flexibility. This is not an indication area where you need a huge sales force. This is something we believe we can truly build ourselves successfully. We're thinking, in Chris's experience, to address the 2,500 or so retina specialists who really matter in the U.S. This is a field rep force of 100 or less. This is something that a company of our size and profile could really achieve to address this market. Importantly, we have Otsuka in the Asia-Pacific to address that market. In terms of payers, we think we can really provide a unique value proposition here with the potential to dramatically reduce treatment burden, keep patients on therapy. Adherence will be by definition improved because the product's always there being made in the retina.
And we think that the vision protection piece of this will be very important to payers as well. What is a vision preservation worth? Maintaining independence, what's that worth? So we think it puts us in a very strong position. We do believe we can fit seamlessly into the buy-and-bill model, which is used in the U.S. So we think we'll be very successful fitting into that model. And as I said before, we have very flexible pricing. We're not thinking about pricing this like a rare disease gene therapy at $1 million. We can price this to be successful in a large market like wet AMD and DME. And again, our low cost of goods allows us to have a lot of flexibility in how we price. What about the practice? It's critical that the physicians want to use this. Well, this fits seamlessly into their clinic flow.
Same refrigeration and storage, same needle to inject, same injection procedure that they do thousands of times a day in the U.S. alone. So this fits seamlessly into that workflow, seamlessly into their storage capabilities. We think their practice economics can be enhanced. And I don't have a lot of time to get into that today, but think about being able to get that additional financing for several years of benefit upfront. Well, think about the net present value of money. That's phenomenal for physicians to be able to do that, bring that forward, and not have to worry about so many of their patients going off therapy and being lost to follow-up. Having fewer bolus injections also means more clinic capacity. Most of these clinics are at full capacity.
So if they can open up more capacity, they can treat patients with GA, with new agents there, and/or do other procedures. So this, we think overall, will be fantastic for retina physicians in their clinics. Okay. So we have a very catalyst-rich 2026 and first half of 2027. There's a lot going on. But in wet AMD, we expect to complete 4FRONT-1 enrollment in Q1, 4FRONT-2 enrollment in Q2. We'll have top-line data for 4FRONT-1 in the first half of 2027. Importantly, mid-year this year, we'll be releasing two-year data going from one and a half to two years in that PRISM phase 2b population, particularly that population that most closely reflects the phase 3 population. So again, further de-risking as we expect those results to be very consistent. DME will be finalizing the phase 3 design and initiating that study in Q3.
This is a second huge shot on goal for us. And we will be releasing additional SPECTRA phase I or II data in DME out at two years of follow-up in the second half of 2026. So there's a lot going on here, a lot of catalysts, and we're very excited for this year. Importantly, we're in a strong financial position. Our cash at the end of 2025 is about $514 million in cash and cash equivalents. And that runway, we believe with all of this activity, will last into the second half of 2028, more than one year beyond top-line phase three data. So we think we're well positioned to achieve these catalysts and beyond. Okay. So key takeaways, continue reporting strong phase one two data in wet AMD and DME, continued phase three execution and momentum there.
We expect to deliver that top-line wet AMD data in the first half of 2027 from 4FRONT-1. Thank you for your attention. I'd love to take some questions now. Thank you.
Thanks, Dave. Quick one from me. Safety is big in ophthalmology and looks to be a big strength of your program. Could you maybe touch on how you're seeing such great safety so far in your program versus past gene therapy approaches?
Yeah. Thanks for the question. I mean, the big hurdle with gene therapy initially was just getting it into the retina. It wasn't feasible with conventional vectors. And that's why these subretinal surgical approaches were developed, which are burdensome and really not commercializable at scale. So it's good for proof of concept. But to get a vector that we could use intravitreally and get through all the barriers in front of the retina to an AAV and give high-level transduction to the retina really required innovation. It required hard work, creativity, and innovation. And that's what our Directed Evolution platform provides, is we have a library of a billion vector sequences. And we identified the one out of a billion that was best at achieving what we're seeing in the clinic. So we fully predicted we'd see results like this.
Much lower doses, highly efficient expression, and lower doses means essentially much lower inflammation risk. And essentially, we are seeing no significant inflammation. So it's about innovation. It's about the vector itself. It's also about Aflibercept. This is not a novel TKI with lots of different mechanisms of action that are unknown. This is a molecule that's been in 60 million eyes safely and effectively. So that's what we're producing. So I think for all those reasons, it's been a safe and effective product.
Amazing. Thank you, and a bit earlier, you showed us a slide that showed a lot of the physicians from the survey were more excited about gene therapy versus your traditional TKI approach. If you could add some more colors to maybe how some of those conversations are going with physicians that you've spoken with or any additional color from that survey, that'd be.
Yeah. Well, I mean, the beauty of the survey, it's not us doing it. It's independence. It's a third-party validated survey. It's 1,000 retina physicians in the U.S. and the rest of the world. So it's really a gold standard. But it's consistent with what our team is hearing. We have a phenomenal external engagement team. We have a pre-commercial team. And they're hearing all the same things from physicians that, "Hey, if you can give me something that's safe, it's a routine intravitreal injection, and you can give lifelong, potentially lifelong durability of expression and benefit," they're going to flock to it. And so that's what we've seen. We think we're fundamentally in a different category. There are other bolus therapies in development, including TKIs and other.
We see those as kind of competing with each other in that space of incremental benefit, whereas something that gives kind of continuous production for years, if not lifelong, it's just fundamentally a different category, and we think in that category, we're alone in terms of having a safe, simple intravitreal product for wet AMD and DME.
Amazing. Thank you. What, if any, read-through from, I think the street's kind of looking at TKI phase 3 readouts from Ocular and EyePoint, are there any? Do you think there's any read-through from those upcoming readouts? What are your thoughts on those specifically?
Yeah. I think fundamentally for us, there's no read-through. I mean, it's a totally different treatment class, totally different study design in the case of SOL-1. But we wish them the best. We hope there are other options for patients. And again, we could see those competing with Vabysmo, for example. But again, our product is distinctly different. It's a different class. It's far longer durability and continuous expression. And again, we're talking about aflibercept, market leader. That's the molecule we're producing. And that really de-risks our program significantly and just puts it in a different category.
Amazing. And maybe further to that, you have a great lineup of data and upcoming catalysts for the year. What do you think good data would look like for the PRISM wet AMD study and maybe the DME study as well?
Yeah. We're excited about those catalysts, both in wet AMD and DME. We think it's going to be more of the same. It's going to be pretty boring, hopefully, and we believe it will be, of just continued safety, continued durability. Again, we've shown in these six-month increments that the benefit we're seeing is constant, stable. It's predictable. And we hope to just continue seeing more of the same with an additional six months of follow-up in wet AMD and an additional year of follow-up in DME.
Great. Maybe a final one, the Otsuka partnership that you talked about in the presentation. Maybe if you can give us some more color about that relative economics or what made you excited to go ahead and do that deal?
Yeah. Yeah. We're thrilled with the deal. We think it's highly validating. Look, Otsuka is a great company. Their diligence process was incredibly thorough from everything from regulatory to manufacturing, analytical development, quality control, clinical data. They saw it all, and so coming in with what we believe is one of the best Asia-Pacific-only deals that's ever been done in terms of the economics with such a high-quality company like that is phenomenal, so we're thrilled to be working with them. The economics were great. $85 million upfront and another $50 million of cost coverage we estimate over the next couple of years. That's $135 million, which then helps us to fund the DME program, which is a big value driver for us, so we think that that plus the financing really unlocked that potential, and we're thrilled to be working with them.
Amazing. Thanks so much, Dr. Kirn. Really appreciate your time with us today.
All right.
Have a great.