Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) Q2 2023 Earnings Call Transcript

Dr. Jeffrey Dayno: Yeah. Thank you, Kumar. So, Poonam, I think really good progress, really good momentum and we’re excited for the catalyst coming later this year on our development programs.

Unidentified Analyst: Thank you so much.

Operator: Thank you. We’ll take our next question from Francois Brisebois with Oppenheimer.

Francois Brisebois: Hi. Thanks for taking the question. Just a few here. So in terms of the exit number. Is this something that we should — in terms of a metric we should start expecting every quarter or is just the thing that we’ve seen in the past few quarters.

Dr. Jeffrey Dayno: Yeah. Thanks, Franc. Good morning. Jeff Dierks comments on the exit number?

Jeffrey Dierks: Yeah. Franc, good morning. So we provided exit number at the end of the first quarter, just given some of the payer seasonality and the headwinds. And I think just given the dynamics of the second quarter and really being able to quantify and be able to share with you the momentum coming out of Q2 into Q3 and the strength of our business we provided it. As you know, I believe that average number of patients is the most meaningful metric that we can provide, because it encapsulates all of the patient medication behavior into one number, it’s new patients, it’s refills that includes compliance persistency and discontinuation rates and it most closely aligns to net revenue on a quarterly basis. So I think from an exit number of patient perspective, it provides additional context in some quarters, but I think the number that really is most meaningful with average number of patients Franc and as we shared in our prepared remarks, we saw a sequential growth of approximately 350 patients from what we reported in the first quarter, where we have approximately 5,450 patients on the product.

And again really tremendous results for year four of rare orphan launch and we’re really excited about the momentum that we’re seeing coming into Q3 and we’re anticipating strong sequential growth through the remainder of the year and they on. And we have a lot of conviction that WAKIX is going to represent a potential $1 billion-plus opportunity in adult narcolepsy alone.

Francois Brisebois: Great. And then if I could just follow up with, so as you mentioned, there has been a new oxybate that’s been launched on the market and it seems to have no impact on WAKIX so far, but can you just talk about the reimbursement, are — is reimbursement going well if someone is on both an oxybate and WAKIX? And can you just talk about maybe the evolution, are you seeing more patients that are on both or is it still a pretty small percentage? Thank you.

Jeffrey Dierks: Sure.

Dr. Jeffrey Dayno: Go ahead, Jeff.

Jeffrey Dierks: So from a managed care perspective franc. We continue to be extremely pleased with the favorable market access coverage for WAKIX. We haven’t seen any changes to our formulary position with the introduction of a generic oxybate earlier this year or with the launch of the once nightly oxybate at the end of June. As a matter of fact, we’ve actually seen some increases and improvement in some of the Type 1 plans within managed care and we have no knowledge of any plans that require WAKIX to be step through an oxybate, and more importantly, there are no plans where there an NDC block or exclusionary decision made for WAKIX. So 100% of appropriate adult narcolepsy patients have access to WAKIX either through a positive formulary that’s published or through some type of medical necessity or exceptions policy.