Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) Q4 2022 Earnings Call Transcript

Thomas Riga: Yes, thanks for the questions Ren. I think the first one; I would not equate a doubling of accounts to a doubling of sales because, as you know, Ren an account is not an account. Some of them just in the example, the top three networks within community oncology represent 22% of the sale. So I think the reason we wanted to share that particular metric, it’s one we really value and look at internally, because to be successful, for the long-term goals, you have to increase the breadth of utilization, both intra customer and intra segment and across segments for that matter. So we’re seeing those metrics go in the direction that we that we want to go. So to your question, do we expect growth? Absolutely, with those kinds of breath increases. But I don’t think you should be making revenue assessments based on those numbers.

Reni Bennett Benjamin: Okay. And I guess, just as we’re thinking about the various constituents, right, it’s in community 340B and an unfree 340B, by the end of the year, how are you kind of viewing what the penetration might be into the each of those segments?

Thomas Riga: I think we’re, we’re planning to be systematic. I think, as we’ve been, we’ve been very consistent with our research leading up to the launch. And it’s playing out largely as expected, that our strategy was to really start with community oncology given the speed of decision making and receptivity to the value proposition. I think I’m encouraged as Erin had mentioned in her prepared remarks. Our first hospital IBN is coming online here in the first quarter. So we are engaging all three of those segments. I think the challenge or the reality of launching a product is there’s timing of decisions within each of these segments, there’s decisions to either engage or not engage. So what we’ve tried to do is set up our strategy to enable ourselves to one, see if there’s an opportunity to gain initial interest in a really core segment of the community.

And while we work through the PNT process, the decision making process within each of the other hospitals segments, and you’re starting to see some of that come to fruition. As it relates to the end of the year, I would expect us to be infused through all three segments of the business. But I think the lead driver that’s going to — that’s going to be the place of greatest success early indicators are that’s going to be in the community followed by 340B. And then I think on the trail end would be the non-340B hospitals.

Reni Bennett Benjamin: Got it. And then just I guess one final one from us. Is there anything, I don’t think stockpiling takes place in this particular segment, with G-CSF but maybe I’m wrong. But is there anything that took place in the fourth quarter that that might be might have impacted the revenues obviously, in a positive way that we might not see in subsequent quarters. Just trying to get if there was anything that that if we should be thinking about the trajectory as up from the fourth quarter as opposed to any sort of seasonality or any sort of one time things that have occurred in that the first quarter of launch?

Thomas Riga: No, I think there’s dynamics that I point out to you to Ren in that number. So there’s always some initial stockpile, there’s not stockpiling of there’s initial purchases that happen at the wholesale level, when a product becomes available. To your point it’s not in the wholesalers interest or the customer’s interest to stockpile product. So we don’t see any abnormal purchasing patterns through that there’s tight governor’s at the wholesale level and the customer level for that. But there’s purchasing patterns in any buy and bill oncology product by just the pure met — the pure mechanisms by which things happen. So let me explain. ASP comes out the second week of the third month of the quarter. I think that a lot of decisions get made in that timing.