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DATE

Wednesday, Aug. 12, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Chief Financial Officer - Raffi Asadorian
  • Chief Executive Officer - Vincent Angotti
  • Chief Medical Officer - Shakil Aslam

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TAKEAWAYS

  • Cash and Investments -- $17.1 million as of June 30, 2026, compared to $20.4 million as of Dec. 31, 2025.
  • NEPHRO CRRT Enrollment -- 75% as of Aug. 12, 2026, with the trial on track for completion by the end of 2026.
  • 2027 U.S. Procedure Estimate -- 200,000 annual CRRT procedures, representing a 21% increase over the prior estimate of 165,000 due to updated market research.
  • Conditional Financing Tranches -- $16 million in additional capital from two remaining tranches, expected to close near the time of top-line data release.
  • Non-GAAP Operating Expenses -- $3.7 million for the second quarter of 2026, increasing from $3.5 million for the second quarter of 2025 due to higher clinical trial activity.
  • Net Loss -- $4.3 million for the second quarter of 2026, compared to $3.5 million for the second quarter of 2025.
  • Institutional Concentration -- 70 institutions, representing more than 50% of the total estimated U.S. CRRT procedure volume.
  • Japan Usage Rate -- 80% of CRRT cases, where nafamostat is the most common method of circuit anticoagulation according to a 2018 survey.
  • Citrate Availability -- 75% of U.S. institutions do not currently incorporate regional citrate into their CRRT protocols.
  • PMA Submission Timeline -- First half of 2027, following the expected reporting of top-line data in the fourth quarter of 2026.
  • Titration Efficacy -- 80% to 85% of study patients reached the therapeutic range at the protocol starting infusion rate.
  • Therapeutic Window Timing -- 100% of study patients were within the therapeutic range within 30 minutes of starting treatment in the clinical trial.
  • Primary Study Endpoint -- Mean post-filter activated clotting time over the first 24 hours of treatment in the NEPHRO study.
  • Patient Enrollment Target -- 70 adult patients undergoing renal replacement therapy who cannot tolerate heparin or are at risk for bleeding.
  • Study Site Activation -- 14 hospital intensive care units, with all targeted clinical sites now fully activated.
  • Data Readout Timeline -- 4 to 5 weeks following the completion of patient enrollment in the NEPHRO study.
  • Secondary Study Endpoints -- Filter lifespan, number of filter changes, and dialysis efficacy measured over a 72-hour period.
  • ICD-10 Procedural Code -- XY0YX37, issued for the extracorporeal introduction of nafamostat to facilitate medical billing.

SUMMARY

Management reported that the NEPHRO CRRT registrational study reached 75% enrollment while maintaining the targeted timeline for clinical data results. The company highlighted recent updates to international clinical guidelines that now include nafamostat as a recognized treatment option, which supports the potential for clinical adoption upon regulatory approval. Strategic focus has transitioned toward commercial launch planning in the United States, supported by updated market research indicating a higher volume of annual procedures than previously estimated. Financial planning includes utilizing existing cash reserves and potential conditional funding to sustain operations through the anticipated regulatory submission and approval process.

  • Angotti reported that the updated procedure estimate for 2027 was "driven by new data from this research," which identifies specific disease states like sepsis as major drivers of CRRT use.
  • CEO Angotti confirmed that CorMedix Inc. maintains a "right of first negotiation for 60 days post data readout" for the commercialization of nafamostat.
  • Chief Medical Officer Aslam stated that the 2026 KDIGO draft guidelines "now references nafamostat as an acceptable regional anticoagulant," marking its first inclusion in these recommendations.
  • Management stated that the commercial launch strategy will focus on account managers and peer-to-peer education rather than a traditional sales representative rollout.
  • Aslam noted that investigators reported patients in the blinded study remained in the therapeutic range for up to one week without the need for multiple titration adjustments.
  • The company plans to initiate strategic prelaunch activities and medical education programs in the first half of 2027 following the planned Premarket Approval submission.

INDUSTRY GLOSSARY

  • ACT: Activated Clotting Time, a blood test used to monitor the effectiveness of high-dose heparin or other anticoagulants.
  • CRRT: Continuous Renal Replacement Therapy, a type of dialysis treatment provided to critically ill patients with acute kidney injury.
  • Extracorporeal Circuit: The blood path outside the patient's body during medical procedures like dialysis.
  • ICD-10: International Classification of Diseases, 10th Revision, a system of codes used by healthcare providers to classify and code all diagnoses and procedures.
  • IDE: Investigational Device Exemption, an FDA allowance for an investigational device to be used in a clinical study.
  • KDIGO: Kidney Disease: Improving Global Outcomes, a global nonprofit organization that develops evidence-based clinical practice guidelines.
  • Nafamostat: A synthetic serine protease inhibitor used as an anticoagulant during continuous renal replacement therapy.
  • PMA: Premarket Approval, the FDA process of scientific and regulatory review to evaluate the safety and effectiveness of Class III medical devices.

Full Conference Call Transcript

Operator: Welcome to the Talphera Second Quarter 2026 Financial Results Conference Call. This call is being webcast live via the Events page of the Investors section of Talphera's website at www.talphera.com. You may listen to a replay of this webcast by going to the Investors section of Talphera's website. I would now like to turn the call over to Raffi Asadorian, Talphera's Chief Financial Officer.

Raffi Asadorian: Thank you for joining us on the call today. Today we announced our second quarter 2026 financial results and associated business updates in a press release. With me today are Vince Angotti, our Chief Executive Officer, and Dr. Shakil Aslam, Talphera's Chief Medical Officer. Before we begin, I want to remind listeners that during this call, we will likely make forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties regarding the operations and future results of Talphera. Please refer to our press release in addition to the company's periodic, current, and annual reports filed with the SEC for a discussion of the risks associated with such forward-looking statements.

These documents can also be found on our website within the Investors section. I'll now hand the call over to Vince.

Vincent Angotti: Thanks, Raffi. Good afternoon, and thank you to everyone joining our call today. We remain on track to complete enrollment in the NEPHRO CRRT study later this year. This registrational trial is designed to evaluate whether nafamostat is a safe and effective anticoagulant for use during continuous renal replacement therapy, or CRRT. The study is being conducted in hospital ICUs with nephrologists leading as principal investigators. With all of our final clinical sites now activated, we have reached 75% enrollment in the NEPHRO CRRT study. This progress allows us to increasingly turn our attention to the commercial aspects of nafamostat. We remain especially pleased with the high level of engagement from our principal investigators and study site personnel.

Today, we'll share some details on these areas, along with some initial insights from our updated market research on nafamostat and the CRRT space. On the commercial front, clinical guidelines are an important part of the treatment landscape and we're encouraged by recent developments. Specifically, the KDIGO 2026 Clinical Practice Guideline for Acute Kidney Injury and Acute Kidney Disease is currently pending final publication following the close of its public comment period in May. KDIGO, which stands for Kidney Disease: Improving Global Outcomes, is the global nonprofit organization that develops and implements evidence-based clinical practice guidelines in kidney disease. Of note, the guideline now references nafamostat as an acceptable regional anticoagulant.

The only available regional anticoagulant being used in the U.S. today is citrate, yet regional citrate is not FDA approved for CRRT, and it's also complex to use and has other limitations. As a result, most U.S. sites simply don't incorporate it into their CRRT protocols. This is the first time nafamostat has been recommended in the KDIGO guidelines, supported by historical studies and publications, a positive change from prior published recommendations. KDIGO guidelines are widely referenced by healthcare providers internationally. We believe this guideline will provide momentum for the commercialization of nafamostat if approved.

This new guidance should further highlight to healthcare professionals that nafamostat is already standard medical practice in Japan and South Korea, where it is the most widely used method of anticoagulation during CRRT. A 2018 national survey in Japan found that nafamostat was used in about 80% of cases, making it the most common method of circuit anticoagulation. In South Korea, nafamostat was approved for this use in 2005 and remains one of the most widely used anticoagulation methods today. In addition, our updated market research on the CRRT space points to a larger market opportunity for nafamostat than initially estimated.

This research puts the estimated annual CRRT procedures in 2027, the projected timing of a nafamostat launch, at approximately 200,000 in the United States. That's a 21% increase from a prior estimate of 165,000, driven by new data from this research. We also expect the number of CRRT procedures to continue growing annually. We believe nafamostat, if approved, can address an unmet need in the market given the disadvantages of systemic heparin and regional citrate. Addressing that unmet need provides nafamostat with an opportunity to gain a meaningful share of the CRRT anticoagulant market. These market insights are consistent with what we're hearing directly from principal investigators and other physicians about the currently available CRRT anticoagulants.

We'll share the complete findings later this year at another investor and analyst event as we get closer to completing enrollment. Now I'll turn the call over to Dr. Aslam, our Chief Medical Officer, for some comments on the study. Thank you. Shakil?

Shakil Aslam: Yes, thanks Vince, and good afternoon, everyone. I am very pleased with the progress we are seeing in the NEPHRO CRRT study as we move toward completing enrollment later this year. We have completed the realignment of sites to match our target profile. Now all sites have nephrologists as the principal investigators and are recruiting patients primarily from the medical ICUs. Finalizing our study sites coupled with protocol modifications granted by the FDA has us on track to complete enrollment later this year. As a reminder, NEPHRO CRRT is a placebo-controlled study in which administration, titration, and monitoring of anticoagulation are identical in both treatment arms.

With 75% of patients enrolled, our investigators have consistently reported that these procedures are straightforward to perform. Investigators continue to express their excitement over having nafamostat available for their use, if approved, and its inclusion in the public review draft of 2026 KDIGO guideline as a regional anticoagulant alternative to citrate. The International Expert Panel's inclusion of nafamostat reflects decades of clinical experience and accumulated published evidence on the safety and efficacy of nafamostat as a regional anticoagulant during CRRT, and we look forward to sharing the results with you. With that, I'll hand the call over to Raffi to update you on the financial results for the second quarter.

Raffi Asadorian: Thanks, Shakil. Our cash balance at June 30, 2026, was $17.1 million. We believe this cash, combined with future conditional financing tranches, will provide us sufficient capital through at least a potential Niyad PMA approval expected in 2027. Two conditional financing tranches remain, totaling approximately $16 million of additional capital. If the conditions are met, we expect these to close around the time we release our top-line data and announce the completion of the study. Our cash operating expenses, or combined R&D and SG&A expenses, for the second quarter of 2026 totaled $3.9 million compared to $3.7 million for the second quarter of 2025.

Excluding non-cash stock-based compensation expense, these amounts were $3.7 million for the second quarter of 2026 compared to $3.5 million for the second quarter of 2025. The $0.2 million increase in cash operating expenses in the second quarter of 2026 is primarily due to higher Niyad development expenses reflecting increased enrollment and certain SG&A expenses relating to initial market research activities. I'll now hand the call over to Vince.

Vincent Angotti: Thank you, Raffi. And thank you for joining our second quarter earnings call. With enrollment progressing well, we remain on track to complete enrollment in the NEPHRO registrational study later this year and to report top-line data soon thereafter. Our focus remains on bringing nafamostat to the market as a new regional anticoagulant for CRRT, if approved. I'd like to open the line up for any questions you might have. Operator?

Operator: [Operator Instructions] Your first question is from James Molloy from Alliance Global Partners.

Matthew Venezia: It's Matt on for Jim today. So as you guys are gearing up toward potential commercial launch here, when would we start to see maybe some strategic hires? And could you take us through a little bit of what the strategy might look like for a rollout, like centers of excellence that you guys may target, high enrolling sites that might want to come right on board, anything like that color would be helpful.

Vincent Angotti: Sure. Thanks, Matt. Appreciate it. I think a couple of things that are important. I want to reiterate the fact that we do have a strategic potential with CorMedix who has a right of first negotiation for 60 days post data readout. And as a reminder, the CEO of CorMedix, Joe Todisco, he is on our Board and obviously knows everything going on with the company. So that's one consideration. With that as a backdrop, we are preparing for launch on our own, as well as any other strategic considerations that might happen. And more specific to the launch, we'll likely start the hiring once the PMA is submitted. We plan that for early next year.

First quarter is our goal. And with that PMA submission, we would likely start to hire and launch our pre-launch planning and our medical education. So it won't be significant number of hires, just right now as a preliminary plan, just a couple of hires really about education on nafamostat's background, the KDIGO guidelines, et cetera. As a strategy for rollout in general, as you mentioned, if you recall, this market is highly concentrated. At least that's what the data suggests to date, and we'll be doing some additional targeting and segmentation work moving forward.

But those 200,000 procedures that we mentioned in today's call based off of the most recent data we have and will validate moving further, about 70 institutions in the country, as far as we can tell, represent over 50% of those procedures. So from a rollout standpoint, we believe it will be highly targeted and concentrated and likely, at least today, not your traditional sales representative rollout. It'd be more account managers and educators and trainers, and a lot of peer-to-peer education moving forward. So again, we believe it will be highly concentrated. I think a big focus for us will be on the pre-launch activities in medical education. And that will coincide once the PMA submitted next year.

Raffi Asadorian: And Matt, just to correct. Just to be clear on the PMA filing, not first quarter, first half is what it's supposed to be.

Vincent Angotti: First half, yes. Yes.

Operator: Your next question is from Ed Arce from WestPark Capital.

Antonio Arce: Congrats on the continued progress with the trial. A couple of questions for me. I just wanted to ask as we are approaching full enrollment here, I wanted to ask if you could run through again, just to be clear on the timeline from full enrollment to the data collection to the extent that there is much after that and then top-line readout and the interim between that and what's necessary to submit your PMA, as you mentioned, in the first half of next year. And then separately from the timeline, I also wanted to ask if you have heard anything of note, anything particularly interesting in terms of feedback from these nephrologist PIs?

You mentioned that the feeling has been that the procedure remains quite straightforward. That's one aspect of this that's been repeated, I think, before. But are there any other aspects of this as all the sites now are up and running? Thanks.

Vincent Angotti: Thanks, Ed, for the question. Raffi, I'll refer to you for the timelines, and then we'll move to Shakil for the nephrology feedback relative to our PIs.

Raffi Asadorian: Yes, so to get the data, it's going to be about 4 weeks after we complete enrollment. Around that time, 4 or 5 weeks, something like that to get to the top-line data. We're working to get that on the sooner end of that, but that's probably around the timing. And then to get to a PMA filing, we may be requesting an interim meeting just to make sure everything is clear and everything, but we're probably talking another couple months or so, probably another 3 months or so to get to that PMA filing, which will put us inside the -- should put us inside that first half of next year. Does that answer your question?

Antonio Arce: Yes. I guess related to that, obviously, there's the PMA approval that's expected sometime around the middle of the year. But is there any necessary activities between approval and full launch? Any color on the timeline there as well?

Vincent Angotti: Yes, I would suggest likely not, Ed. If you're asking between approval and launch, our goal would be to launch at approval. And part of that would be what I'll call market conditioning and sensitization to nafamostat and its availability and the medical education. I don't suggest there'd be much of a delay between approval and a launch, at least how we're planning it today. I think the second portion of your question was feedback from the nephrology PIs. Shakil, you want to comment on that?

And I think one other aspect outside of what we said today, Shakil, if you wouldn't mind mentioning how, at least based off of the early feedback as well, they're using other agents often second line. They might move nafamostat to first line when and if it's approved.

Shakil Aslam: Right. So Ed, just remember that this is a blinded study, so there is no feedback that really pertains to one treatment arm versus the other. But overall, there have not been any surprises in the study. And their experience is exactly as they were expecting. Their monitoring is extremely straightforward, simple, and very predictable. I think that's two important things in this patient population that your response should be consistent and predictable. And so far, that's the feedback we have gotten. We have had our first independent data safety monitoring meeting a couple of months ago, and they did not identify any risks to the patient or any new findings.

So they essentially continued -- recommended to continue the study without any changes. So that's also very reassuring that everything is going as planned. I can tell you that people who have used citrate or clinicians who were looking into using citrate, many of them have informed us, gee, I should just wait for this to become available. Why invest all these resources? Because this is just going to be so much simpler and easier to use without any citrate. Without any special training required, essentially the use is just very, very similar to heparin, except that it's just more predictable and more consistent in terms of the way the anticoagulation goes in these patients.

So I hope that answers your question. There have been no surprises and everybody remains -- I talk to PIs almost on a weekly basis, and they all remain very excited. And many of them have told me that they cannot wait to get their hands on it. So that's, I think, it's all very encouraging and quite as expected.

Antonio Arce: Yes, that's great. Thanks, Dr. Aslam. I appreciate that. If I may, I just want to ask one quick question about the investor event planned. Is there any further details at this point that you could share? Thanks.

Vincent Angotti: Raffi?

Raffi Asadorian: No, not yet. I mean, it's going to be focused on the market, the market opportunity, and our commercial approach to the market. And we'll be providing more details on all the updated market research that we've been going through. That's going to be a little closer to the time where we're imminently completed with the study.

Vincent Angotti: Just to give you a little more color, Ed, on Raffi's comment, so we completed this in-depth market research with a data analysis provider on market sizing, growth rates, and stratification within it, meaning what are some of the most prominent disease states that are obviously related to CRRT. An example would be sepsis and then some others. Beyond that, what I'll call secondary market research, we have just recently completed primary market research with over 30 physicians on both the quant and qual format.

It was fully chaperoned as opposed to more of a survey, really getting insightful readouts from them on their feeling about today's current products, the target product profile of a new entrant, for instance, nafamostat, how that might affect their use of products moving forward. Does it shift them from second-line therapies as rescue with current anticoagulants to potentially a proactive first-line therapy use with a new entrant like nafamostat based off that TPP, et cetera? We've also done some recent research with some nurses to add some more qualitative feedback on just the burden that they have in the ICU in the often 1-to-1 ratios of workload once a patient goes on CRRT, especially involved with citrate.

So we're looking to finish the synthesis of all that data, package it properly, and that'll allow us to think about the proper mechanisms for launch moving forward, all of which we'll communicate to you in that investor event.

Operator: Your next question is from Brandon Folkes from H.C. Wainwright.

Brandon Folkes: Congrats on all the progress. Two for me. I apologize if they've been answered, just hopping between a few calls here. But firstly, do you have any blinded insight into the titration that's happening in the NEPHRO clinical trial? Even if this is just through way of drug supply, and if so, is there anything you can say whether that is tracking in line with expectations? Secondly, maybe just on the, I guess, on the KDIGO guidelines. I'm assuming this is based on ex-U.S. usage and history. Is there anything in those draft guidance that is different to the way nafamostat would be used in the U.S.?

I guess, are they recommending it in any different way than you envision it being used in the U.S.? That's it for me. Thank you.

Vincent Angotti: Shakil, I think that's right down your alley. So any insights on particular titration or anything you can comment on, realizing it's a blinded study?

Shakil Aslam: Absolutely. So the titration has been, again, it's a blinded study, and with only limited information available. But overall, it's behaving actually quite well, exactly as we were expecting. So we had a maximum dose that we can give. There's a ceiling on that dose. So most of patients in this study never really get even anywhere close to that dose. So most are titrated below half of the dose of the maximally allowed dose. So that's very, very good news. So it's exactly in the window where we wanted it. So that's very important that we only use a minimum amount of agent to nafamostat, to get a therapeutic effect.

So from that point of view, it's quite aligned with it. And second thing that investigators point out is that there's hardly any need to make multiple adjustments. So when patients, they feel it gets titrated, they remain at the same level. For some of these patients, the study had gone up to 1 week, and they did not need to go back up and down to retitrate to stay in the therapeutic range. So I think that's a huge, huge advantage when you compare it to heparin, for example, where titration can be all over the place. And it's actually so frustrating that many physicians actually just do not even titrate with heparin when they use for CRRT.

Vincent Angotti: Can you also remind them on the titration, how quickly it occurs as it relates to the protocol in the study?

Shakil Aslam: So roughly about 80% of the patients, they are within therapeutic range at the starting dose, that infusion rate that we have in our protocol. So within half an hour, almost 100% of the patients are within therapeutic range.

Vincent Angotti: And that titration schedule, if they're not, happens in the first hour, correct?

Shakil Aslam: Right, right. So we titrate every 15 minutes and that's guided by bedside blood test of ACT. So every 15 minutes you can change the dose, go up or go down. As I said, 80% to 85% of the patients are already therapeutic at the starting dose and another 15% may need one up titration which is relatively small. As opposed to 50 milligrams which would be the highest dose, most patients are therapeutic around 20 to 25 milligram per hour.

Vincent Angotti: I just want to reiterate that this is a blinded study. So these are observations, but we'll see the final results when obviously it's unblinded. Shakil, can you comment on the second question Brandon had relative to the KDIGO guidelines and if those recommendations are of any treatment patterns or different use than how we're seeing it ex-U.S.?

Shakil Aslam: Right, so the guidelines, the way they are phrased right now is that this is an alternative to citrate, so if there is contraindication to use of citrate or if the citrate is not available, then this would be agents that could be used in that scenario. So in the U.S., citrate use is around 25% of the patients or clinicians use citrate or the hospitals use citrate. So approximately 75% of the institutions do not have citrate available. And even within institutions where citrate is available, there are complexity to its use. So it's contraindicated in patients with liver disease, for example, and some other metabolic issues that can result from its use.

And so there is a chunk of those patient institutions which do have access to citrate, they are not able to use citrate on every patient. Now, in Japan and South Korea, there's barely any use of citrate, so in those countries, this is the first-line agent. So the way it's worded for the rest of the world right now, the KDIGO guideline is that you should use citrate first, but if it's not available or contraindicated, then you go to nafamostat as a use.

But again, I think just because 75% of the U.S. facilities do not have access to citrate, I think there's a pretty big chunk of market which will be a candidate for nafamostat right out the gate. And within even the 25% segment that does use citrate, there's a lot of difficulty and a lot of labor-intense method that citrate uses, so there is a definitely a desire to move away from citrate if a better and easier-to-use agent becomes available.

Operator: Your next question is from Naz Rahman from Maxim Group.

Nazibur Rahman: Congrats on the progress. just a few. So, on the KDIGO guidelines, could you comment on basically how long it takes or what are the next steps for this to become, I guess, confirmed or permanently approved guidelines? And following that, how quickly does this guideline get adopted by American institutions? And also, how closely is it followed by American institutions? And I guess not just in terms of anticoagulants for CRRT, but just in general.

Vincent Angotti: We're going to move to Shakil again. So on confirmation, once the commentary is done, Shakil?

Shakil Aslam: Yes. So I unfortunately do not know the exact timeframe. They closed their public review comments in May of this year. So my guess would be somewhere between 3 to 6 months, they will have the final draft. More like 3 months, I would say. And in terms of its adoption within U.S. institutions, it's quite variable. So these guidelines are well known and they are recognized by most healthcare professionals. But there is institutional variability within the U.S. like any other place. Some clinicians follow them very closely. Others would have their own kind of versions of guidelines.

So from our point of view, what the inclusion of nafamostat does is, number one, it validates that this is actually an acceptable, safe, and efficacious alternative to other therapies and which has been used in other countries and they are recommending obviously wider use of nafamostat. And secondly, many institutions and clinicians when they want to develop their own protocols for anticoagulation CRRT in their own institutions, having an international body of experts, basically giving you rationale and recommendation, I think it really makes things much easier for them to adopt those recommendations at their own institutions.

So I think it just supports that, okay, well, this data has been reviewed by international group of panels and therefore, you can go to the pharmacy and other stakeholders in the hospital and tell them that this is what you are going to do. And so from that point of view, I think it's also positive news for us.

Operator: There are no further questions at this time. Please proceed with the closing remarks.

Vincent Angotti: Thank you, Operator. I just want to say thanks again to everyone on the call for your time with us today and your interest in Talphera. We're excited about the prospects moving forward and look forward to updating you on our progress. Operator, that concludes our call.

Operator: Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may now disconnect your lines.