Anthony

Anthony asked how retina specialists could potentially use Functional OCT (OCTF) in their practices, how this technology might increase the size of the GA market, and for an approximate timeline for when appreciable real-world OCTF data would be available for analysis.

Answer

Co-founder, CEO, and President Dr. Cedric Francois explained that OCTF, developed with the University of Bonn, translates OCT images into functional retinal sensitivity maps, highlighting the impressive loss of sensitivity in GA. He stated that this year's focus is on raising awareness of GA's impact, with a mission to make the tool available in retina practices for physician-patient interactions to track Syfovre's benefits. Chief Medical Officer Dr. Caroline Baumal added that physicians are excited to link structure to function, expecting OCTF to aid earlier GA diagnosis, support the patient journey, enhance disease understanding, and ultimately support Syfovre adoption and patient adherence.

Anthony (Goldman Sachs) questioned the elevated outflows from the International Value strategy, despite a broader industry rotation towards value, asking about the drivers of this recent weakness and any shifts in client demand.

Answer

Jason Gottlieb (CEO) clarified that the outflows were primarily due to the strategy's exceptional absolute returns, leading to institutional rebalancing and profit-taking, particularly given strong global markets outside the U.S. He stated that management sees no underlying issues or concerns with the strategy's performance or client trends.

Anthony (Goldman Sachs) questioned the elevated outflows in the International Value Strategy, despite an industry rotation towards value, asking about the drivers of this recent weakness and changes in client demand.

Answer

CEO Jason A. Gottlieb clarified that the outflows were primarily due to institutional rebalancing following exceptional absolute returns, rather than underlying issues or concerns. He anticipated some rebalance flow might continue into Q1 2026 given strong global markets outside the U.S.

Anthony asked about the expectations for the MiSight and myopia management portfolio for fiscal 2026.

Answer

President and CEO Al White projected at least 20%-25% growth for MiSight in fiscal 2026, factoring in conservatism due to the Stellest launch in the US, which could impact short-term revenues. He expressed optimism for long-term growth, citing the MiSight launch in Japan in Q2 and the MyDay MiSight launch in Europe and Asia as significant drivers.

Anthony asked about AllianceBernstein's margin and expense growth trajectory for the next couple of years, specifically the pace of margin expansion and non-compensation expense growth, given the company is tracking ahead of its target for the current year. He also inquired about the capital allocation strategy, including the light buyback this quarter and any potential inorganic opportunities.

Answer

Tom Simeone, CFO, referenced the 2023 Investor Day target of 30-35% operating margin, noting the achievement of the 33% target for 2025, driven by the BRS divestiture and relocation strategy. He indicated no other large expense reduction initiatives but a continuous focus on small wins. Regarding buybacks, Tom clarified that the light buyback was not related to Equitable, but rather timing, with approximately $30-35 million remaining to fund the deferred compensation plan this year.

Anthony inquired about AllianceBernstein's capital allocation strategy, particularly regarding the light buyback activity this quarter and potential inorganic opportunities.

Answer

Tom Simeone (CFO) clarified that the light buyback was not related to the Equitable conversion but rather timing for funding the deferred compensation plan, with approximately $30-35 million remaining for the year.

Anthony, on behalf of Ryan Deschner, asked if the company had observed any trends in the RIVER study data related to patient baseline characteristics, such as background therapies or initial disease etiology.

Answer

Chief Development Officer Dr. James Cassella stated that while the team is analyzing all the data, he did not have a definitive answer on such trends at this time. Executive Jennifer Good added that the drug demonstrated a strong effect across the board, making it difficult to identify specific subgroups where it worked differently.

An analyst from Raymond James asked which specific biomarkers the company plans to report from the ENLIGHT trial for its WVE-007 obesity candidate.

Answer

President and CEO Dr. Paul Bolno stated that the disclosed biomarkers for the upcoming readout will include changes in body weight and levels of Activin E (the protein product of the INHBE gene). He explained that tracking Activin E will serve as a key measure of target engagement and will also help inform the durability of the drug's effect over time. He mentioned that other exploratory biomarkers are also being assessed in the study.