Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) Q1 2023 Earnings Call Transcript

Jennifer Chien: And there was another question just regarding discontinuations. We continue to be quite pleased. As I outlined in the past, there was a lot of effort, cross functional team effort really focused to make sure that the patients were able to go and tolerate the titration phase. So, you know, through that process and education, we still remain very, very happy just in terms of the level of maintenance of patients through that phase with the number of discounts relating to nausea or vomiting being extremely low. We do have some discontinuation for various different reasons, including a very low number relating to hyper pigmentation. But there’s other reasons that a patient may continue that are also opportunities for follow-up.

And I think one of the pieces that continues to be one factor that increases the compliance of this therapy is a hyperphasia because people feel the impact. They also feel the impact of stopping therapy. And once again, we also hear one patient stop therapy that the hyperphasia comes back and there may be interest to come back on to therapy. So, very happy overall just in terms of the low discount rate.

Derek Archila: Got it. And maybe just one follow-up here on the prelim data that you’re going to put out for DAYBREAK. I guess will you be, kind of doing it in-depth, kind of presentation on framing those opportunities. And I don’t know if you’ve kind of guided to what those opportunities look like from a commercial perspective? Are they more like a POMC or more like a Bardet-Biedl or something different? Thanks.

David Meeker: Thanks, Derek. We haven’t guided and not prepared to guide today. I think what I have said and reiterate is, I expect to report out on 5-ish plus or minus genes where we have enough data. The DAYBREAK trial is designed as an exploratory trial. It’s done exactly what we wanted it to do and allows us to sort in relatively large number of genes that we knew had some link to the pathway with the goal of trying to understand which were the ones that had the strongest link versus the others. I will say that some of those which we discontinued earlier on were extremely rare and we just weren’t able to enroll. So, back to your question about the POMC smaller opportunity kind of thing, but others have a much higher frequency and more on the order of SH2B1, SRC1 that we’re pursuing in our M&A trial again. So, more to come on that, but the expectation we should have said is it will be around 5 plus or minus genes, but we have enough meaningful data to report out.

Derek Archila: Got it. Thanks so much.

David Meeker: Thanks. Next question.

Operator: Thank you. Alright. One moment while we compile the Q&A roster. Our next question comes from the line of Corinne Jenkins from Goldman Sachs. Your line is now open.

Corinne Jenkins: Yes, hi, good morning, everyone. Maybe a couple from us. So, of the roughly 140 patients that don’t currently have reimbursed product and including the 40 in particular that had a prescription as of year-end 2022. What portion do you expect to ultimately get on reimbursed drug versus what portion do you think may just remain on free drug from here?

Jennifer Chien: So, within the 140 that you mentioned, that includes patients that are still within the pending category that we’re still working through and through two reimbursement, as well as patients that we have put onto our free drug program. I will say that, you know, in terms of our free drug program, we have outlined in the past that, you know, for reimbursement, Medicare patients have not been patient population that we’ve been able to gain reimbursement for at this particular time. So, that’s approximately less than 10% of scripts to date. The commercial coverage has always been very strong. The caveat here is, as with other rare diseases, there are a very small commercial, you know, self-insured plans where, you know, cost of the therapy, like IMCIVREE can be challenging.