Greetings and welcome to the PolyPid third quarter 2026 conference call. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Yehuda Liebler from ARCS Investor Relations. Mr. Liebler, you may begin.

Thank you, operator. Thank you all for joining PolyPid's third quarter 2026 earnings conference call. Earlier today, Polypid released its financial results for the three and nine months ended September 30th, 2026. A copy of the press release is available on the investor section of the company's website at www.polypid.com. Joining me on the call today are Dikla Czaczkes Akselbrad, Chief Executive Officer of Polypid, Ori Warshavsky, Chief Operating Officer US of Polypid, and Jonny Missulawin, Chief Financial Officer of Polypid. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal security rules. These include statements about the FDA's review of the DPLEX-100 MDA, including labeling discussions, the PDUFA gull date, and the FDA pre-approval inspection. They also cover the potential approval of DPLEX-100 and the anticipated timing of its US commercial launch by Azordi Pharmaceuticals, as well as potential reimbursement for DPLEX-100, including the anticipated timing of a CMS decision on a new technology add-on payment, or NTAP. We will also discuss the potential label expansion of the DPLEX-100 and planned communications with the FDA and the EMA's review of the MAA for the EPEX 100, including the anticipated timing of the decision and a potential US launch. In addition, we will refer to the company's plans for Europe, Canada and other territories, including potential partnerships and their timing. Finally, these statements include the company's policy 2030 vision and levers for growth, the development plans and anticipated timing for PD01B and PD03A, and the company's expectation that its cash resources will be sufficient to fund operations into 2028 and through several significant upcoming potential milestones. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including the risks described from time to time in the company's filings with the Securities and Exchange Commission. Accordingly, you should not place under-reliance on these statements. I encourage you to review the company's filings with the SEC, including its annual report on Form 20F, filed on February 25th, 2026. PolyBID disclaims any intention or obligation acceptance required by law to update or revise any forward-looking statements. This conference call contains time-sensitive information and speaks only as a live broadcast today, November 11th, 2026. With that, it's my pleasure to turn the call over to Dikla Czaczkes Akselbrad, Chief Executive Officer of PolyBID. Dikla?

Thank you, Yuda, and good morning, everyone. We are now just over two weeks from our PDUFA goal date of November 28th. and this is a defining moment for Prolipid. Let me start with the FDA review. Our NDA for DIPLEX-100 for the prevention of surgical site infection in patients undergoing colorectal surgery is under priority review. Since the NDA was accepted in July, we have continued to work closely with the agency. Labeling discussions are underway and all scheduled FDA interactions are on track and aligned with the PDUFA goal date. As is standard practice, we will not discuss the context of the label ahead of an approval decision. In parallel, PolyPID and Azurity are preparing for the US launch of DIPLEX-100 in early 2027, subject to FDA approval, and Ori will walk you through that work. The partnership has already delivered $30 million to PolyPID, An NTAP application for DPLEX-100 has also been submitted to CMC with a decision expected in August 2027. If granted, NTAP would provide additional reimbursement to hospital of up to 75% of the product cost above the standard DRG payment. Surgical site infections are not only a colorectal problem. and Label Expansion is a key growth driver for DIPLEX-100. Together with Azurity, our first step is broader abdominal surgery, including GI procedures and hysterectomies, approximately 4 million surgeries a year in the US according to IQVIA. Close to half of them are open procedures. We plan to initiate communications with the FDA on this work in the fourth quarter Beyond abdominal surgery, we see opportunities in soft tissue and bone surgery. Under our current agreement with Azurity, Azurity will fund the clinical development once we jointly prioritize indications. In Europe, we submitted our marketing authorization application to the EMAA on September 14, meeting the third quarter timeline we had communicated. Shortly after quarter-end, the EMAA validated the application and began its formal review, with a decision expected in the second half of 2027 and a potential EU launch in 2028. At the same time, we mutually agreed with Advanced Pharma to terminate our 2022 agreement for Europe and the exclusive European commercialization rights to DPLEX 100 have reverted back to us. We now fully control our European strategy and we are in active discussions with potential commercial partners. In Canada, part of the Azurity collaboration and new drug submission is planned for 2027. As our investor days two weeks ago, we laid out the vision for PolyPID 2030 and our three levers of growth. Maximizing D-Plex 100 through Azurety, including label expansion beyond colorectal surgery, taking DIPLEX-100 into new territories, starting with Europe, and expanding our kinetics pipeline, beginning with PD-01B for the treatment of moderate to severe diabetic foot infections, or DFI. DIPLEX-100 was always meant to be our first product, not our only one. To summarize the milestone ahead, our PDUFA goal date in two weeks' time on November 28 The start of FDA communications on broader abdominal surgery this quarter, the U.S. launch of DIPLEX-100 in early 2027 subject to approval, the end-up decision in August 2027, and in the second half of 2027, the EMA decision as well as the PD-01B pre-IND meeting and first in human study. With a committed U.S. partner preparing for launch, full commercialization rights for Europe, a growing pipeline, and a strong balance sheet, we believe PolyPID is well-positioned for this next stage. With that, I will turn the call over to Ori. Ori?

Thank you, Dikla. I will cover our launch preparation with Azure ET, new DIPLEX-100 data, and our pipeline. Azurety is an established specialty pharmaceutical company with more than 70 medicines across 11 therapeutic areas, and we believe it is the right partner for Diplex 100. It brings reach more than 10 hospital-administered products, more than 200 US commercial-facing colleagues, and the GPO contracting and institutional relationships that reach more than 1,700 leading US hospitals and academic centers. It also brings relevance. A hospital-prescribed antibiotic on the market that gives it credibility with infectious disease specialists and bowel preparation products used by the same colorectal surgeons DIPLEX-100 will initially serve. And it brings commitment to invest in and expand the product over time. Since we signed the agreement in July 2026, the work has moved from planning to execution. Azurety is building out its sales force, national accounts, market access, and medical affairs team, and our companies meet in joint forms across medical, regulatory, supply chain, and commercial functions. We see the commercial launch of Deeplex 100 as a process that will build over several months, starting in early 2027. Subject to approval, Azurity's medical teams will start working with target hospitals, engaging surgeons and infectious disease specialists who can bring DIPLEX-100 to the hospital's Pharmacy and Therapeutics Committee for review in addition to formulary. Each hospital reviews new products on their own schedule, so access will grow account by account over several months. After the quarter, we also presented DPLEX-100 microbiology data at the ID Week 2026 conference. In a late-breaking oral presentation by Dr. George Viola of MD Anderson Cancer Center, an exploratory pooled microbiology analysis of our clinical data covering 2,185 patients looked at infections that occurred despite prevention. The finding from the abstract added microbiologic context to the SHIELD2 results. Finally, we introduced PD-01B for the treatment of moderate to severe diabetic foot infections at our recent investor day. It is our first step in extending kinetics from preventing infections to treating them. Diabetic foot infections are among the most serious and costly complications of diabetes and current treatment relies on debridement and systemic antibiotics, which can struggle to reach adequate concentration in the infected tissue with poor blood supply. PD-01B is designed to be applied directly into the wound and to sustain hyperlocalized, high doxycycline levels in the infected tissue over weeks. It builds on the same active ingredient, manufacturing site, and established safety database of DIPLEX-100, and polypid holds worldwide commercial rights for it. We expect to hold a pre-IND meeting with the FDA and begin a first-in-human study in the second half of 2027. Our long-acting obesity program, PD03A, continues in early preclinical development. With that, I will turn the call over to Jonny to review our financial results. Jonny?

Thank you, Ori. I will now review our financial results for the third quarter ended September 30, 2026. Research and development expenses for the third quarter of 2026 were $6.5 million compared to $5.3 million in the third quarter of 2025. The increase was primarily due to ongoing NDA-related activities and continued commercial readiness preparation. General and administrative expenses were $1.5 million compared to $1.8 million in the prior year period. The decrease was primarily due to lower non-cash expenses related to performance-based options following the positive Phase III SHIELD II top-line results, which triggered the vesting of those options. Marketing and business development expenses were $0.4 million in line with the prior year period. Net loss for the third quarter of 2026 was $5.8 million and Yvonne Levin. For the first 9 months of 2026, net loss was $21.3 million or $0.94 per share. Compared to $25.7 million or $1.72 per share in the same period of 2025. Turning to the balance sheet, as of September 30, 2026, PolyPID had cash, cash equivalents and short-term deposits of $15.5 million, compared to $12.9 million at December 31, 2025. Our cash at September 30 does not yet include the $15 million milestone payment from Azurdi for the NDA acceptance, which is recorded as a receivable on the balance sheet and was received in early October. Our plans for PD01B over the next 18 months involve relatively modest spending and are reflected in this outlook. Based on our current plans and assumptions, we believe that our existing cash resources, together with the expected proceeds from our commercialization agreement with the as well as future potential proceeds will be sufficient to fund operations into 2028 and through several significant upcoming potential milestones. With that, we will now open the call for questions. Operator?

Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1, 1 again. We will take our first question. Your first question comes from Chase Knickerbocker from Craig Callum. Please go ahead. Your line is open.

Good morning. Thanks for taking the questions, and congrats on the progress. On the label, I respect that you're not going to talk about specifics. But can you just confirm for us that labeling discussions themselves have occurred with FDA? Thanks.

Hi, Chase. Good morning. So, yes, and we said that in the press release that we are at the stage of the label discussion with everything that is coming with it.

Got it. Thanks. And then just a second. As we think about, you know, physician feedback from what we've disclosed on PD-01B, anything else you've kind of gotten from the clinician community, you know, whether it's your outreach or, you know, their outreach as far as what kind of the product profile that they would look for here? I think particularly just around as we think about this product potentially fitting into kind of current standard of care and how these patients are treated, particularly around kind of bandage changes, etc. Thanks.

Feel free to add to that also based on the latest conference. A couple of things that we are hearing from colorectal surgeons in particular, and those are very detailed into the data that we show in our Phase III and what they really get from this data is obviously the 60% reduction of infection. That's obvious, that's the key secondary and this is easy for them to know that they have a certain percentage of surgical site infection in this patient. It is shown to be reduced by 60%. The other thing that they do, they look at, they also look at the, and those are of course open procedure The other thing that they mentioned to us, and this was coming almost from everyone that we spoke with, is the fact that the bottom line of our incident of surgical site infection with Biplex was lower than what they see in their minimally invasive business. And this is really encouraging. The other thing that is a focal point for all of the discussion is the understanding then when you look at the infection that are still there after the reduction that we've done and you compare the complexity of those patients and those infections between the two arms, you see the same level of reduction in complexity. So that implies that patients are not just having fewer events, but also that they have the same level of complexity, maybe even less complexity in the fewer infections that are there. So these are two major, I think, focal points. Ori, anything you want to add to it?

Sorry, I was on mute. I would just add that surgeons, before they go into these procedures, they assess the patient based on risk. And again, what DeepLex does is help reduce some of this risk and mitigate this risk. This is kind of how they triage the patient and this is how they prepare. And I think this is What they will gain most from or when they think of where to apply or where to use the product is really based on the risk assessment. We know from literature, we know from data that risk factors, smokers, diabetics, high BMI, older patients have higher risk for infection and this will be kind of the target for the product.

Got it. Maybe just last for me. Any kind of conversations as part of this review that kind of give you a sense for how FDA is thinking about kind of the bar for you on label expansion, particularly into broader abdominal surgeries? Thanks.

So we discussed this briefly on our R&D days about two weeks ago, but also in our prepared remarks today. This is ongoing, so the expansion from colorectal to abdominal, this is a work that is internally on the motion, and we said that we plan to initiate those discussions with the FDA this quarter. So you can imagine that the package to the FDA is up and ready. We will be submitting it this quarter. I think it's premature to discuss what the requirements will be before we actually hear from the FDA, but we think we have a very good case to expanding from colorectal and specifically from these broad phase three data to abdominal. But let's wait until we hear from the agency.

Thank you.

Thank you. We will take our next question. Your next question comes from Jason Butler from Citizens. Please go ahead. Your line is open.

Hi, thanks for taking the questions and congrats on the progress. Two questions, maybe a quick follow-up to the label expansion question. Given the funding commitment from Missouri, how quickly do you think you can start to look at surgeries beyond abdominal surgery? Is that something that could even happen in parallel or do you expect it to be a sequential process? And then second question, can you maybe just comment a little bit more about your expectations for the ramp in adoption throughout 2027? And to what extent is the or how important will the NTAP be to driving adoption? Thank you.

Sure. Hi. Good morning, Jason. So we are prepared and ready and labor expansion is very important. both for Azuriti and to us. This is one of our major level of growth. We've discussed this very detailed looking at polypid into 2030. We view this as the most, or maybe I shouldn't say the most, but one of the most rewarding expansion We could pursue around DPLEX-100. And this is the same way that Azuriti looks at it, and it was important for them to have the ability to expand to other surgery. This is why it is covered with our mutual agreement. To tell you whether things could be running in parallel or one after the other, it won't be smart to go into that when we have an FDA discussion or we are initiating a discussion very soon. I think this is something we'll need to comment once we hear the feedback, but presumably there are specific surgery or specific area that could be done in parallel. I'm not sure if this is the best way. Thank you very much. After having additional safety data, additional proof, this could be done. And we'll also need to see how this is adopted in the market to the sense that, you know, we'll hear from surgeons, we'll hear from a hospital where they want to see this next. So I think this is also something that is important. Ori, you want to touch the second question about the answer?

Yeah, I'll take it. So Jason, good morning. You had two questions on ramp up and end up. So first on the ramp up, the plan is really once the product is approved, early 2027 to start with launch activities. And launch activities mean that the MSLs are out there to the target hospital. Finding those champions, the surgeons that can bring the product to P&T. Then P&T needs to review, get additional input from their economic assessment, from the quality folks, from the infectious diseases specialists. And then after this review and update to the electronic system to be added to formulary. So it's a process that takes a little bit of time. and it's a process that is done really account by account. So some hospitals are reviewed. The P&T is convened every month and some every quarter. Some of the IDNs review hospital by hospital and some do one review for the entire network. So we will see over the next several months accounts coming in. in a sense in a stepwise approach. One quarter there'll be a set and then the next quarter will be either more or less depending on the cadence within the hospital. So without really giving, I know I'm not giving you a specific date, but it will be a process that will take several months until we start really seeing a traction. and it connects also to the NTAP. When we asked in market research, we asked pharmacists that lead P&T committees about the willingness to put a product on formulary and in stock, there was very high, close to 90% willingness to put the product on formulary and then we asked them, okay, how would the NTAP change your Your answer, and the answer was, okay, from 90%, this will go to 100%. They would want to see the data holds without NTAP, meaning the pharma economic data holds without NTAP, and then NTAP comes in as an addition just to make the decision easier to accept. and timing wise it will be so if the NTAP application was submitted, it will be approved in August and in effect next October. So really as PNPs complete their assessment and ready to put the product on the formulary and for surgeon to use it, NTAP will be there active and ready to go.

Great, thank you.

Thank you. We will take our next question. Your next question comes from Bublan Peshepen from Roth Capital. Please go ahead. Your line is open.

Good morning, Tim. Thanks for taking our questions. So obviously the PIDFA date is just three weeks away. So can you explicitly confirm whether the pre-approval manufacturing site inspections have been completed? And is there any unresolved issues? Thank you. That's the first. Hi. Good morning. Thank you for that. So I would say like that. Obviously, as a matter of practice, the FDA is part of the NDA review. It is a standard process that the FDA conduct a pre-approval inspection of our manufacturing facility. But I think that at the stage that we are, as a matter of practice, we should not comment on any specific labeling and timing status of pre-approval inspection. We said in the press release that everything has been either set to support the regulatory milestone or has already been done. PDUFA is in just about two weeks. I think we have to be patient. We are standing behind everything that we said, both in terms of the timing and the label discussions. that are underway. That by itself is a strong signal to where the review process is, but we will need to be patient a little bit more. That's super helpful. Thanks for that. And then in terms of Azurity, you know, trying to do all the prelaunch activities. So I'm just curious, you know, whether they are finding out hospitals where there's very low base level Baseline infection rates are offered with more intensive prevention protocols because in those cases, the economic case for duplex use could be a little bit more challenging. So I'm just curious if you can comment. Maybe you can explain that you are aware of the hospital economic evidence.

Sure.

I'll start and Ori, please add on. They are looking first on First, you need to remember that Azurity has a pipeline of products around mechanical bowel prep. So they are speaking with the colorectal surgeon now on a daily basis. And they have their KOLs and the surgeons that they are frequently in contact with. They also have our KOL that has been with us along the development and during the clinical studies. So they are the first candidate for approaching. And those are the ones that they are looking at to reach out to first. Ori, you want to add to that something?

Yes, I think so. That's the first step. The second step is, and this is really in line with how we saw the market, is really to go to the academic centers where guidance are written and what I heard when I spoke to some of the surgeons in the academic centers is really it's almost kind of a race to who has the best technology and so if you don't adopt a new technology and your peer across the street does and they now show better results. They have something that's more interesting, the patients coming in, they kind of compete on the same patient. So although in some of these academic centers, the infection rates are maybe lower than in some of, let's say, general hospitals or community hospitals, they do have interest to bringing The newest technology, the most effective one, and they're competing between themselves on what to use and how they're measured compared to other top hospitals. So that's kind of the next level of target hospitals that AZURDI is looking at.

All right. That's very helpful. Thanks for taking our questions.

Thank you. We will take our next question. Your next question comes from Jeevan Larsen from Oppenheimer. Please go ahead. Your line is open.

Hey, thanks. This is Jeevan on for less. Thanks for taking our questions. First one is, when should we expect pricing disclosure? You know, what net cost per procedure are you discussing with the hospitals and maybe how that compares with the expected savings from preventing infections? A follow-up is, does FDA approval alone trigger the Azerity milestone, or are there other label conditions attached to that? And when would the cash be received, and when would that revenue be recognized?

Hi, Les. Sorry, Joven, welcome. So in terms of the pricing, Azerity will share the pricing at the launch. This is obviously their decision. I can say that up until now, everything that they have learned is very much in line with what we have seen. We obviously shared with them our past market research, some of the highlights of those were disclosed by us in the past. But this will be their part to disclose or you want to add anything to that?

No, that's how it is. The pricing will be decided ultimately by us already.

And as for the second part around milestone around approval, so As everyone probably recall, we received already $30 million, and there are over $290 million in development, regulatory, and sales milestones. We did not disclose the breakdown of these over $290 million between the three. What we did say is that the development and regulatory milestones are all relatively in the short term. So other than that, I can't really add much to that.

Thank you.

Once again, if you wish to ask a question, please press star 1, 1 on your telephone. We will take our next question. Your question comes from Brandon Foulkes from HC Wainwright. Please go ahead, your line is open.

Hi, thanks for taking my question and congrats on the progress. Maybe just sort of one multi-part from me. How much health economic benefit data do you envision hospitals to require for uptake initially? I know you had generated some good health economic data in the past. So does that still hold for launch or do you anticipate having to generate new or updated data for the hospitals? And then along those lines, do you expect some of the hospitals to run their own experience trials before broad adoption? And how large of an investment into post-approval real-world data are you and Azure AT contemplating? Thank you.

Ori, you want to take this one?

Yes, I'll take it. Hey, Brandon. So the data that we have, we believe, is sufficient for launch. This is from our conversations. We've shown, just as Dikla mentioned earlier, we've shown a reduction in the severity of infection, a reduction in or a delay In the onset of breakthrough infection, which is very important to the hospital, because if the patient is discharged, then the whole economics change. We've shown a reduction in length of stay overall for the hospital, so I believe we have sufficient data to for what is needed to demonstrate the economic case in front of P&T. Now, we also had conversations with a number of hospitals regarding your question on, let's call it a pilot study. And the overall consensus is that if there will be a need for a pilot study, it will be a small A handful of patients, seven to ten patients, something on this level, really to check that the surgeons are comfortable with the product. It wouldn't be an efficacy study, but more really to understand the usability and how it works with the workflow of the operating room. So that is something that is expected, that is something that Azurity is looking for. And beyond that, the post-approval kind of real-world data, I think it's a bit early to discuss. And in any case, it will be part of the tactics of Azurity on how they drive demand in the market. but of course we will support them with our data as needed.

Great, thank you very much.

Thank you. This concludes today's question and answer session. I will now hand back for closing remarks.

Thank you all for joining us today and for your questions. With our PDUFA goal date fast approaching, AzureT preparing for launch, our MAA under review in Europe, and advancing PD01 development, we look forward to updating you on our progress in the weeks and months ahead. As always, we are grateful to our team, our partners, and our shareholders for their continued support. Operator, you may now close the call.

This concludes today's conference call. Thank you for participating. You may now disconnect.