Aydin Huseynov: Okay, makes sense. And in your view, Michael, so what is the percentage of severe patients and as patients who are not treated with off-label biologics? So I’m trying to understand that patient segment.
Michael Myers: I think I missed part of that. Could you ask — are you saying the percentage that are…
Aydin Huseynov: Yes, I’m trying to understand — so the open label is essentially for patients who are being treated with off-label biologics. And I’m trying to understand what percentage of overall severe NS patients, Netherton patients are these — what is the portion of these patients who are treated with off-label and what is the portion who are not being treated with off-label biologics?
Michael Myers: Yes. So it’s a really good question. So first of all, I think if we look at the big picture, Aydin, there is no approved treatment for this disease. So patients and physicians are really willing to try anything off-label. So there’s a lot of different treatments being pursued with varying degrees of success. What we’re seeing with regards to biologics is that it’s probably somewhere in the region of 15% to 20% at this point. Bear in mind, these biologics are not reimbursed for this indication. And annual cost is around $60,000 out of pocket to the patient. So that’s a heavy lift — heavy financial burden for anyone. And plus not everybody sees the benefits. So I think 15% to 20% is a reasonable working estimate. It could vary a little bit around that.
Aydin Huseynov: Understood. I’ve got a couple of financial MBD question. So you mentioned that you are actively exploring multiple attractive M&A opportunities. You got — you mentioned that you have a strong balance sheet. So what kind of deals are you looking for? Are you looking for dermatology assets, preclinical, clinical, 505(b)2 assets? I’m trying to get a sense of that. And how do you think that does this compare to your flagship Netherton Syndrome program. Just trying to understand how you’re going to manage growth if you are to acquire new assets?
Michael Myers: Yes. So great question. So first of all, our interest is solely focused in the rare and orphan disease space. We are, however, looking beyond rare skin diseases because we believe that in this space, you can successfully migrate across different indications without putting really undue burden on both your R&D activities and then ultimately, your commercial infrastructure. So we’re not looking for anything that’s preclinical or early-stage clinical. We have those types of assets in our portfolio ourselves. So we want assets that have been derisked where there is strong clinical data and a clear path to regulatory approval. And we want assets that we can have global rights to. Because, as we’ve said, between our own planned commercial infrastructure and the partnerships that we have put in place, we can effectively achieve global launches of any product.
So there’s a lot of opportunities out there. We see a lot of companies with what I would call misaligned portfolios where they have an orphan disease stuck in among a bunch of generic products or something like that. So we’re very actively looking for products. We can’t tell you the timing or even if we get a deal done, but it is something that’s a very, very high priority for us, and we will certainly keep everybody posted on our progress.
Aydin Huseynov: Got it. Understood. And the last one I have regarding your expenses in 2022. So looking at R&D, it’s $2.7 million, SG&A $6.6 million. Essentially, SG&A expenses are significantly higher, more than twice higher than R&D expenses, which is sort of unusual for clinical stage companies. So could you breakdown for us the S&A expenses just for us to better understand how this is going to be shaped going forward?
