Anthony

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 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 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, 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.