Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) Q4 2022 Earnings Call Transcript

Seamus Fernandez: Hello. Great. Thanks for taking the question. Just wanted to get a better sense of, obviously, congratulations on bringing forward an additional contract. It sounds like gross to net from the trajectory over the balance of this year is going to improve substantially quarter-to-quarter. Just wondering if there will also potentially from your perspective, be a bit of a release and prescribing capacity as physicians really write scripts for ZORYVE as the confidence improves, that with each script written, they’ve got kind of a two-third chance of having a fully reimbursed prescription. Just wanted to get a general sense of that. And then incremental to that, just would love to know how you’re thinking about the trajectory of the business, particularly with regard to seborrheic dermatitis and how the new foam formulation is likely to flat into those coverage opportunities? Thanks.

A €“ Scott Burrows: Sure, Seamus. I think both of those are for me, right? So I’ll start with the sort of confidence and kind of the two-third or 60% shot at which I like that thinking. So we would expect, as coverage improves to obviously be capitalizing on this through targeted messaging to the offices in which those patients — where those patients reside. We do know kind of geographically where these plans and PBMs impact. And so we’re able to target those offices and make sure that they’re aware of these updates. I think in the big picture, you’re absolutely right, which is as you’re writing — the more you write, the more you get kind of covered — the confidence sort of builds upon itself, and that’s the intent, when we talked about the idea of sort of the faster and better coverage leading to ultimate conversion is — one has to have that sort of underlying confidence with respect to if I’m going to do this, is it worth my time and is the patient going to end up on the therapy.

And so that is the sentiment, and we would expect that to improve I think I would say two-third is probably more of a tipping point than one-third with respect to having just one on board previously. And I would expect that should help in terms of really changing the habits that we see. And ultimately, when we do achieve our access goals of bringing on kind of all three major payers, the messaging will be just that, which is you’ll have confidence with this doctor in terms of writing and you’re very likely to get it if your patient is commercially insured. Not to mention the fact that for our uninsured patients, we do have a program as well. So we’re trying to really take that pressure off the decision-making in terms of thinking about that as a — almost a criteria for writing, it really should be kind of second nature just like it is a topical curve.

So that would be the desired state with respect to what we’re seeing. So I do believe that the confidence will start building and thus the pace

A €“ Frank Watanabe: Now I think — this is Frank. Just quickly, I think in addition to the two-third coverage, the other key piece to that is the lack of a prior authorization, right? Because if doctors are putting in prescriptions and they’re getting kicked back from the pharmacies for additional paperwork. that’s not as bad as a denial, but it certainly adds to the friction and having obtained coverage now for two of the three big PBMs without a prior authorization, I think, will be another important facet of prescriber confidence.