BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) Q2 2023 Earnings Call Transcript

Jon Stonehouse: And three months, six months, 10 patients to 15 patients roughly.

Helen Thackray: Yeah. It’s pretty small and it’s four to 12 weeks to have a first outcome.

Charlie Gayer: And then on the sizing of the sales, what I’ve said before is that our teams right in the midpoint between 30 people and 50 people and isn’t the exact number, but at the beginning of the year, we did add a few sales territories. The biggest thing that we did is double the number of our regions. So it gave our regional managers, regional directors more time to spend with the teams and with key customers. When we build our sales force, the number one thing we look at is the market potential in terms of. HAE prescribers out there. And so we build it on a workload basis for each sales rep. So they can be efficient, but we also do look at what best we can tell what the competition’s doing. And we think that our team decides very comfortably to them.

Jon Stonehouse: And Charlie, it’s not just the rep, right? What we hear from docs is that they see somebody from BioCryst, every week and so you might want to just talk about the whole team that.

Charlie Gayer: So simultaneously, what we do is, we have, we have a market access team out in the field. So, we’ve built up that team. We’ve expanded our patient services team so that they work closely with patients, but also with the practices. And then, of course, on our medical side, we’ve got a very excellent medical team out there, working to educate physicians. So, we look at the whole package and as we do our research, we get feedback that they’re seeing BioCryst people the most frequently.

Stacy Ku: Very helpful. Thank you.

Operator: Our next question comes from Brian Abrahams with RBC Please go ahead.

Unidentified Analyst: Hi, everyone. This is Nevin [ph] on for Brian. Congrats again on a good quarter. So I have a couple questions about the efforts that you guys are taking to confer free drug patients to pay drug. Can you talk about some of the efforts there in regards to patient education and the simplification of some of the paperwork that’s mentioned on previous calls? And then also, if you could speak to some of the gross to net trends in the quarter and some of the recovery into future quarters as well.

Charlie Gayer: Sure. Yeah. On the conversion from free drug to pay drug, the place where we’ve made the most progress is within the commercially insured market, which is the largest portion of our business, a little over 60% and the number one thing, as you’re alluding to is making sure that we are working with customers to get all the complete paperwork. So what that means is for a new prescription coming in, that the start form is complete. We’ve got the lab test. We’ve got the clinical background and justification. If we get that all complete upfront, the insurer is much more likely to approve the claim. Likewise, anyone who has been on free drug going back and doing a really comprehensive appeal, letter of medical necessity, putting in the whole patient and family history is critical to the insures changing their mind and as our team is more and more focused on this and helping educate healthcare providers in particular, we’re seeing more and more success in getting people moved over to paid product.

On the gross to net, gross to net that’s a part of what happens in the first quarter where revenue goes down a bit. One of those factors is that we take it in on our commercial side with our co-payment assistance program. The biggest hit happens in Q1 where many patients get up to the point of their out-of-pocket maximums are exhausted and then that normalizes in Q2 and for the rest of the year. So gross to net was as bad as it’s ever going to be in Q1 and then it normalizes for the rest of the quarters.

Jon Stonehouse: Yeah, and what we said in Q1 is it was up the higher end of that 15% to 20% range and we had expected that in Q2 would come into the lower end of that range and then maintain that thread the year and that’s exactly what we saw happen.