- Q2 2022 revenue of $15.5
million, Adjusted EBITDA of $6.2
million and cash from operations of $3.5 million.
- Total Vascepa prescriptions grew 88% year-over-year,
reflecting sequential growth of total and new Vascepa®
prescriptions in Q2 2022 of 18% and 30%, respectively.
- 2,400 physicians have prescribed Vascepa, up 131%
year-over-year and 19% sequentially: 8,500 patients have taken
Vascepa, up 107% year-over-year and 19% sequentially.
TORONTO, Aug. 11,
2022 /CNW/ - HLS Therapeutics Inc. ("HLS" or the
"Company") (TSX: HLS), a pharmaceutical company focusing on central
nervous system ("CNS") and cardiovascular markets, announces its
financial results for the three- and six-month periods ended
June 30, 2022. All amounts are in
thousands of United States
("U.S.") dollars unless otherwise stated.
Q2 FISCAL 2022 HIGHLIGHTS
- Q2 2022 revenue was $15.5 million
compared to $14.9 million in Q2
2021.
- Canadian Product Sales were $9.5
million, up 7% from Q2 2021 (up 11% in Canadian Dollar
terms).
- Q2 2022 Adjusted EBITDA was $6.2
million compared to $6.6
million in Q2 2021.
- Q2 2022 net loss was ($9.1)
million, or ($0.28) per common
share, compared to net loss of ($2.2)
million, or ($0.07) per common
share, in Q2 2021.
- Q2 2022 cash generated from operations was $3.5 million compared to $1.7 million in Q2 2021.
- Cash and cash equivalents were $21.2
million at June 30, 2022
essentially unchanged versus December 31,
2021.
- Completed a Letter of Intent ("LOI") with the pan-Canadian
Pharmaceutical Alliance ("pCPA") for the terms and conditions under
which Vascepa will qualify for public market reimbursement in
Canada.
- Obtained public reimbursement for Vascepa in Quebec, New
Brunswick, Northwest
Territories and the Non-Insured Health Benefits (NIHB)
program for First Nations and Inuit peoples prior to the end of the
fiscal quarter.
- Share repurchases under the Company's Normal Course Issuer Bid
("NCIB") of $0.4 million.
SUBSEQUENT TO QUARTER-END
- Obtained public reimbursement for Vascepa in Ontario and Saskatchewan. Approximately 70% of publicly
covered lives in Canada are now
eligible for reimbursement for Vascepa.
- Quebec prescription growth for
Vascepa was 29% in the two-month period following the announcement
of public reimbursement compared to the prior two-month
period.
"In Q2 we delivered a solid quarter and signed an LOI with the
pCPA paving the way for public reimbursement of Vascepa, which we
believe will be the single greatest catalyst to realize the growth
potential of the product," said Gilbert
Godin, CEO of HLS. "Shortly thereafter, we signed product
listing agreements with Quebec and
several other provincial or territorial authorities, and subsequent
to quarter-end, we signed agreements with Ontario and Saskatchewan. As a result, with five months to
go in the second half of 2022 we have public reimbursement for
Vascepa for approximately 70% of Canadians on public plans, as well
as for more than 95% of Canadians on private plans who are
in-label."
"The onset of public reimbursement allows us to work closely
with our partner, Pfizer, to ramp our outreach efforts to the
physician community and drive prescription growth of Vascepa. In Q2
we reached new heights in physician interactions, and more than 75%
of those were in-person meetings compared to approximately 50% in
Q1 2022. The frequency of interaction with physicians is key for
driving adoption and in June, on the heels of signing the LOI with
the pCPA and after completing the first few public plan agreements,
we achieved record monthly call volumes. The combination of public
reimbursement along with the expansion of our sales effort will be
key factors in the growth of Vascepa prescription volumes in the
second half of the year and into 2023."
DIVIDEND
On August 10,
2022, the Company's Board of Directors declared a dividend
of C$0.05 per outstanding common
share to be paid on December 15,
2022, to shareholders of record as of October 31, 2022.
These dividends paid on the Company's common shares are
designated to be "eligible dividends" for purposes of section 89(1)
of the Income Tax Act (Canada).
Q2 & YEAR-TO-DATE FISCAL 2022 FINANCIAL REVIEW
The
Company's Management's Discussion and Analysis and Consolidated
Financial Statements for the three- and six-month periods ended
June 30, 2022 are available at the
Company's website and at its profile at SEDAR.
Revenue
The following table provides revenue
segmentation by revenue type for the three- and six-month periods
ended June 30, 2022:
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Product
sales
|
|
|
|
|
Canada
|
9,527
|
8,912
|
17,930
|
16,745
|
United
States
|
3,718
|
3,861
|
7,161
|
7,796
|
|
13,245
|
12,773
|
25,091
|
24,541
|
Royalty
revenue
|
2,287
|
2,172
|
4,997
|
4,718
|
|
15,532
|
14,945
|
30,088
|
29,259
|
Product Sales
Record Q2 2022 product sales in
Canada grew 11% in Canadian
currency (7% growth in reported US dollars), led by increased sales
of Vascepa, which grew 87% year-over-year.
Clozaril continues to be the leading treatment for
treatment-resistant schizophrenia and the number of patients in
Canada grew at a 2% annualized
run-rate in the quarter. Clozaril sales in Canada has started to return to more typical
levels as pandemic restrictions related to the Omicron virus were
being removed as we entered Q2 2022. In the US, Clozaril had a
decrease of $0.1 million in net sales
in Q2 2022 primarily reflecting modest volume erosion offset in
part by pricing changes.
Royalty revenues
Royalty revenues of $2.3 million in Q2 2022 increased from
$2.2 million in Q2 2021 reflecting
stability in the marketed products in the portfolio.
Operating Expenses
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Cost of product
sales
|
1,154
|
896
|
2,107
|
1,670
|
Selling and
marketing
|
4,542
|
3,731
|
8,371
|
6,899
|
Medical, regulatory and
patient support
|
1,347
|
1,501
|
2,623
|
2,834
|
General and
administrative
|
2,331
|
2,256
|
4,513
|
4,627
|
|
9,374
|
8,384
|
17,614
|
16,030
|
Operating expenses in Q2 2022 increased 12% from Q2 2021. Cost
of product sales increased due to the year-over-year growth in
Vascepa sales. Increased selling and marketing activities reflect
additional marketing support costs for Vascepa and initial
introductory spending related to MyCare, partially offset by modest
reductions in medical, regulatory and patient support activities.
The increase in the selling and marketing activities for Vascepa
includes the primary care salesforce expansion begun in Fall 2021
as well as a return to increased activities following removal of
public health restrictions in late Q1 2022. General and
administrative costs were essentially flat year-over-year in Q2
2022.
Adjusted EBITDA (1)
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Net loss for the
period
|
(9,143)
|
(2,197)
|
(12,759)
|
(6,950)
|
Stock-based
compensation
|
1,230
|
(409)
|
2,045
|
1,938
|
Amortization and
depreciation
|
8,489
|
7,480
|
16,876
|
14,847
|
Finance and related
costs, net
|
1,043
|
1,510
|
1,363
|
2,859
|
Transaction and other
costs
|
4,542
|
—
|
4,887
|
84
|
Income tax
expense
|
(3)
|
177
|
62
|
451
|
Adjusted
EBITDA
|
6,158
|
6,561
|
12,474
|
13,229
|
Adjusted EBITDA in Q2 2022 was 6% lower year-over-year due
primarily to the increased selling and marketing expense and
increased cost of product sales related to the growth in sales of
Vascepa.
(1) See
"Cautionary Note Regarding Non-IFRS Measures" section of this press
release.
|
Net Loss
Net loss for Q2 2022 was ($9.1 million), or ($0.28) per share, compared to a net loss of
($2.2 million), or ($0.07) per share, in Q2 2021. Net loss increased
as higher revenue was offset by an increase in cost of product
sales and sales and marketing related to Vascepa as well as
$4.5 million in transaction and other
costs.
Transaction and other costs largely consisted of a non-cash
$3.1 million impairment charge
related to PERSERIS and a $1.3
million charge related to the retirement of the Executive
Chair of the Company and the elimination of the Executive Chair
role.
Regarding the PERSERIS impairment charge, during the quarter,
negotiations with the pCPA concluded without an agreement with
respect to public reimbursement for the product. This was a
disappointing outcome given that the Canadian Drug and Health
Technology Agency (CADTH) had made a positive listing
recommendation on terms that the pCPA was unwilling to accept. Our
path forward for PERSERIS is to pursue public listing agreements
individually with select provinces that are interested in the
product.
Cash from Operations and Financial
Position
Cash generated from operations was $3.5 million in Q2 2022, compared to $1.7 million in Q2 2021. Cash and cash
equivalents was $21.2 million at
June 30, 2022 essentially unchanged
from $21.2 million at December 31, 2021. In the 2022 year-to-date
period, HLS has made dividend payments totaling $2.5 million, share buybacks under the NCIB
amounting to $0.4 million and
$6.0 million in repayments on the
senior secured term loan.
HLS has a strong financial position with $21.2 million of cash and cash equivalents, a
$35.0 million revolving facility that
was undrawn at June 30, 2022, and the
Company may also request to be provided with incremental loans, up
to a maximum amount of $70.0 million,
to support acquisitions and other growth opportunities.
Q2 FISCAL 2022 CONFERENCE CALL
HLS will hold a
conference call today at 8:30 am Eastern
Time to discuss its Q2 2022 financial results. The call will
be hosted by Mr. Gilbert Godin,
Chief Executive Officer and Mr. Tim
Hendrickson, Chief Financial Officer. To view the slides
that accompany management's discussion, please use the webcast
link.
CONFERENCE
ID:
|
28339844
|
DATE:
|
Thursday, August 11,
2022
|
TIME:
|
8:30 a.m. ET
|
DIAL-IN
NUMBER:
|
1-888-664-6392 or
416-764-8659
|
WEBCAST
LINK:
|
https://app.webinar.net/54EjJrRJvoV
|
TAPED
REPLAY:
|
1-888-390-0541 or
416-764-8677
|
REPLAY
CODE:
|
339844
|
The taped replay will be available for 14 days and the archived
webcast will be available for 365 days.
A link to the live audio webcast of the conference call will
also be available on the events page of the investors section of
HLS Therapeutics' website at www.hlstherapeutics.com. Please
connect at least 15 minutes prior to the conference call to ensure
adequate time for any software download that may be required to
hear the webcast.
ABOUT HLS THERAPEUTICS INC.
Formed in 2015, HLS is a
pharmaceutical company focused on the acquisition and
commercialization of late-stage development, commercial stage
promoted and established branded pharmaceutical products in the
North American markets. HLS's focus is on products targeting the
central nervous system and cardiovascular therapeutic areas. HLS's
management team is composed of seasoned pharmaceutical executives
with a strong track record of success in these therapeutic areas
and at managing products in each of these lifecycle stages. For
more information visit: www.hlstherapeutics.com
1CAUTIONARY NOTE REGARDING NON-IFRS
MEASURES
This press release refers to certain non-IFRS
measures. These measures are not recognized measures under IFRS, do
not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing further understanding of HLS's results of operations from
management's perspective. Accordingly, they should not be
considered in isolation nor as a substitute for analysis of HLS's
financial information reported under IFRS. HLS uses non-IFRS
measures to provide investors with supplemental measures of its
operating performance and thus highlight trends in its core
business that may not otherwise be apparent when relying solely on
IFRS financial measures. HLS also believes that securities
analysts, investors and other interested parties frequently use
non-IFRS measures in the evaluation of issuers. HLS's management
also uses non-IFRS measures in order to facilitate operating
performance comparisons from period to period, prepare annual
operating budgets and assess HLS's ability to meet its future debt
service, capital expenditure and working capital
requirements.
In particular, management uses Adjusted EBITDA as a
measure of HLS's performance. To reconcile net income (loss)
for the period with Adjusted EBITDA, each of (i) "stock-based
compensation", (ii) "amortization and depreciation", (iii)
"transaction costs and other charges", (iv) "finance and related
costs", and (v) "income tax expense (recovery)" appearing in the
Consolidated Statement of Net Income (Loss) are added to net income
(loss) for the period to determine Adjusted EBITDA. Adjusted EBITDA
does not have any standardized meaning prescribed by IFRS and is
not necessarily comparable to similar measures presented by other
companies. Adjusted EBITDA should not be considered in
isolation or as a substitute for net income (loss) prepared in
accordance with IFRS as issued by the IASB.
FORWARD LOOKING INFORMATION
This release includes
forward-looking statements regarding HLS and its business. Such
statements are based on the current expectations and views of
future events of HLS's management. In some cases the
forward-looking statements can be identified by words or phrases
such as "may", "will", "expect", "plan", "anticipate", "intend",
"potential", "estimate", "believe" or the negative of these terms,
or other similar expressions intended to identify forward-looking
statements, including, among others, statements with respect to
HLS's pursuit of additional product and pipeline opportunities in
certain therapeutic markets, statements regarding growth
opportunities, expectations regarding financial performance, and
the NCIB and ASPP. The forward-looking events and circumstances
discussed in this release may not occur and could differ materially
as a result of known and unknown risk factors and uncertainties
affecting HLS, including risks relating to the specialty
pharmaceutical industry, risks related to the regulatory approval
process, economic factors and many other factors beyond the control
of HLS. Forward-looking statements and information by their nature
are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause HLS's actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. A
discussion of the material risks and assumptions associated with
this release can be found in the Company's Annual Information Form
dated March 16, 2022, and
Management's Discussion and Analysis dated August 10, 2022, both of which have been filed on
SEDAR and can be accessed at www.sedar.com. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and HLS undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
As at
|
As at
|
|
|
June 30,
2022
|
December 31,
2021
|
|
|
|
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash and cash
equivalents
|
|
21,160
|
21,179
|
Accounts
receivable
|
|
10,710
|
11,511
|
Inventories
|
|
10,130
|
8,925
|
Income taxes
recoverable
|
|
272
|
—
|
Prepaid expenses and
other current assets
|
|
2,702
|
2,136
|
Total current
assets
|
|
44,974
|
43,751
|
Property, plant and
equipment
|
|
1,294
|
1,569
|
Intangible
assets
|
|
217,857
|
229,181
|
Deferred tax
asset
|
|
530
|
690
|
Other non-current
assets
|
|
1,973
|
714
|
Total assets
|
|
266,628
|
275,905
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
|
|
|
|
Accounts payable and
accrued liabilities
|
|
14,097
|
10,596
|
Provisions
|
|
2,759
|
3,472
|
Debt and other
liabilities
|
|
22,832
|
13,507
|
Income taxes
payable
|
|
—
|
97
|
Total current
liabilities
|
|
39,688
|
27,672
|
Debt and other
liabilities
|
|
81,619
|
86,844
|
Deferred tax
liability
|
|
922
|
653
|
Total
liabilities
|
|
122,229
|
115,169
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
|
266,007
|
265,917
|
Contributed
surplus
|
|
12,625
|
11,717
|
Accumulated other
comprehensive income
|
|
973
|
2,959
|
Deficit
|
|
(135,206)
|
(119,857)
|
Total shareholders'
equity
|
|
144,399
|
160,736
|
Total liabilities and
shareholders' equity
|
266,628
|
275,905
|
|
|
|
|
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF LOSS
|
Unaudited
|
[in thousands of U.S.
dollars, except per share amounts]
|
|
|
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
|
Revenue
|
|
15,532
|
14,945
|
30,088
|
29,259
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Cost of product
sales
|
|
1,154
|
896
|
2,107
|
1,670
|
Selling and
marketing
|
|
4,542
|
3,731
|
8,371
|
6,899
|
Medical, regulatory and
patient support
|
|
1,347
|
1,501
|
2,623
|
2,834
|
General and
administrative
|
|
2,331
|
2,256
|
4,513
|
4,627
|
Stock-based
compensation
|
|
1,230
|
(409)
|
2,045
|
1,938
|
Amortization and
depreciation
|
|
8,489
|
7,480
|
16,876
|
14,847
|
Finance and related
costs, net
|
|
1,043
|
1,510
|
1,363
|
2,859
|
Transaction and other
costs
|
|
4,542
|
—
|
4,887
|
84
|
Loss before income
taxes
|
|
(9,146)
|
(2,020)
|
(12,697)
|
(6,499)
|
Income tax expense
(recovery)
|
|
(3)
|
177
|
62
|
451
|
Net loss for the
period
|
|
(9,143)
|
(2,197)
|
(12,759)
|
(6,950)
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic and
diluted
|
|
$(0.28)
|
$(0.07)
|
$(0.39)
|
$(0.22)
|
|
|
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Net loss for the
period
|
(9,143)
|
(2,197)
|
(12,759)
|
(6,950)
|
|
|
|
|
|
Item that may be
reclassified subsequently to net loss
|
|
|
|
|
Unrealized
foreign currency translation adjustment
|
(4,424)
|
2,737
|
(1,986)
|
4,180
|
Comprehensive income
(loss) for the period
|
(13,567)
|
540
|
(14,745)
|
(2,770)
|
|
|
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Accumulated
other
comprehensive
income
|
|
Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
31, 2021
|
|
265,917
|
|
11,717
|
|
2,959
|
|
(119,857)
|
|
160,736
|
Stock options
exercised
|
|
236
|
|
(64)
|
|
—
|
|
—
|
|
172
|
Shares
repurchased
|
|
(146)
|
|
(191)
|
|
—
|
|
(41)
|
|
(378)
|
Share purchase
obligation
|
|
—
|
|
(272)
|
|
—
|
|
—
|
|
(272)
|
Stock option
expense
|
|
—
|
|
1,435
|
|
—
|
|
—
|
|
1,435
|
Net loss for the
period
|
|
—
|
|
—
|
|
—
|
|
(12,759)
|
|
(12,759)
|
Dividends
declared
|
|
—
|
|
—
|
|
—
|
|
(2,549)
|
|
(2,549)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
|
—
|
|
(1,986)
|
|
—
|
|
(1,986)
|
Balance, June 30,
2022
|
|
266,007
|
|
12,625
|
|
973
|
|
(135,206)
|
|
144,399
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
31, 2020
|
|
257,411
|
|
11,393
|
|
2,020
|
|
(101,575)
|
|
169,249
|
Warrants
exercised
|
|
2,963
|
|
(192)
|
|
—
|
|
—
|
|
2,771
|
Stock options
exercised
|
|
2,901
|
|
(770)
|
|
—
|
|
—
|
|
2,131
|
Stock option
expense
|
|
—
|
|
1,043
|
|
—
|
|
—
|
|
1,043
|
Net loss for the
period
|
|
—
|
|
—
|
|
—
|
|
(6,950)
|
|
(6,950)
|
Dividends
declared
|
|
—
|
|
—
|
|
—
|
|
(2,594)
|
|
(2,594)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
|
—
|
|
4,180
|
|
—
|
|
4,180
|
Balance, June 30,
2021
|
|
263,275
|
|
11,474
|
|
6,200
|
|
(111,119)
|
|
169,830
|
|
|
|
|
|
|
|
|
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net loss for the
period
|
(9,143)
|
(2,197)
|
(12,759)
|
(6,950)
|
Adjustments to
reconcile net loss to cash provided
by operating
activities
|
|
|
Stock-based
compensation
|
1,230
|
(409)
|
2,045
|
1,938
|
Amortization and
depreciation
|
8,489
|
7,480
|
16,876
|
14,847
|
Impairment
charge
|
3,051
|
—
|
3,051
|
—
|
Accreted
interest
|
205
|
182
|
412
|
368
|
Fair value adjustment
on financial assets and liabilities
|
(696)
|
(384)
|
(2,170)
|
(695)
|
Deferred income
taxes
|
20
|
59
|
429
|
265
|
Net change in non-cash
working capital balances related to operations
|
356
|
(3,016)
|
1,386
|
(873)
|
Cash provided by
operating activities
|
3,512
|
1,715
|
9,270
|
8,900
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Additions to property,
plant and equipment
|
(15)
|
(9)
|
(24)
|
(15)
|
Rights
acquisitions
|
—
|
(2,500)
|
—
|
(3,820)
|
Other additions to
intangible assets
|
(66)
|
(23)
|
(92)
|
(51)
|
Cash used in
investing activities
|
(81)
|
(2,532)
|
(116)
|
(3,886)
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Stock options
exercised
|
7
|
1,724
|
172
|
2,131
|
Warrants
exercised
|
—
|
915
|
—
|
920
|
Shares
repurchased
|
(357)
|
—
|
(378)
|
—
|
Dividends
paid
|
(1,267)
|
(1,310)
|
(2,549)
|
(2,577)
|
Repayment of senior
secured term loan
|
(3,000)
|
(2,250)
|
(6,000)
|
(4,500)
|
Lease
payments
|
(180)
|
(162)
|
(339)
|
(317)
|
Cash used in
financing activities
|
(4,797)
|
(1,083)
|
(9,094)
|
(4,343)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
(1,366)
|
(1,900)
|
60
|
671
|
Foreign currency
translation
|
(138)
|
44
|
(79)
|
64
|
Cash and cash
equivalents, beginning of period
|
22,664
|
23,203
|
21,179
|
20,612
|
Cash and cash
equivalents, end of period
|
21,160
|
21,347
|
21,160
|
21,347
|
|
|
|
|
SOURCE HLS Therapeutics Inc.