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

And I think when you’re dealing with contracted oncology; you inevitably see that the third month of the quarter will be larger than the previous two. And that’s a function of the mechanism of how rebates are paid and time cost of money. So I think this business, whether it be ROLVEDON, or any growth factor, you would typically expect to see the third month of a quarter be higher than the first two. And I think that will that will shrink over time. But I think the reality of the third month being the biggest will be across growth factor products, especially those that are contracted with a rebate component.

Reni Bennett Benjamin: Got it. Thanks for taking the questions.

Operator: One moment for our next question. And our next question will come from at Prakhar Agarwal of Cantor Fitzgerald. Your line is open.

Prakhar Agarwal: Hi, good morning team and congrats on the quarter. And thanks for taking my question. So first question, following up on the access question, I think the three bear agreements in place. So what percentage of covered lives do these represent right now? And where do you expect to be by the end of the year? And I had a quick follow up.

Thomas Riga: Yes, so let me let me try and, Erin if there’s something you want to add. So I think the way we think about the payer coverage is in the geographies where the receptivity is high, and there is a there is a want and a desire from the cost of the end user to increase the eligible population within their book that has a predominant payer, that is a driver for us to look to make those payer agreements. So it’s very much a provider centric strategy that enables us to engage the third party payer based on customer receptivity to the product. So in those agreements that Erin had mentioned, that we signed for payer agreements, it actually followed that exact pattern. So customers who engaged with the product who have started using the product and aspire to use it in a deeper concentration of their business, but it may have had a hurdle with one of their predominant payers.

That’s our signal to engage those contract negotiations with, with those payers. So as it relates to where we’ll end up with total covered lives at the end of the year, I think that’s largely going to be dependent on strategy. So as we continue to deepen our position within our customers, we will be critically evaluating the eligible population that have restrictions within that business, and then look to make payer agreements that are beneficial for the customer offs as well as the stakeholders, in this case, the payer. Erin, anything else?

Erin Miller: No, I just say that the focus that we have is predictability and stability within this market. So with payers that are willing to engage, have that discussion and understand that focus, we are absolutely willing to engage.

Prakhar Agarwal: Understood. And second question, what has been the receptivity in the hospital segment 340B and non-340B based on your initial discussions? Is it mostly a timing issue on the uptake with decision from PNT committees or any other barriers that you need to work through? And has there been any difference between 340B versus non-340B? Appreciate the questions. Thank you.