HRMY - Earnings call transcript Q3 2021 | Harmony Biosciences Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Harmony Biosciences Third Quarter 2021 Financial Update Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the conference over to your speaker for today, Patti Bank.

begin. may You

Patti Bank

Good us operator. quarter and you update. thank financial Thank as morning we joining business a today and third review for performance you, provide everyone Harmony XXXX Biosciences

we encourage we business. Harmony measures. our slides non-GAAP GAAP reconciliation underlying the to believe that everyone Before our website our this I to to stage today, Section of Biosciences release the press economics the better financial of discussion results to At represent go of find accompany non-GAAP of Investors and lifecycle, financial a start, including the our

Our are Officer; CEO; Jeffrey on Sandip Jacobs, Medical Dr. Commercial Chief President Officer; and presenters and today's call Dierks, Kapadia, Chief Jeffrey Dayno, CFO. John

onto Moving two. slide

consult statements current to actual on a which today, As SEC to and details. and making are factors expectations Jacobs. encourage risk referenced are I the subject John? beliefs. the call reminder, our our turn would These you certain I statements risks Biosciences' over to in may CEO, materially. differ Harmony additional John our uncertainties we will to results forward-looking and now based for be filings like

John Jacobs

participants And quarter to like sincere also I all Patti. our XXXX joining to my of extend you, Thank conference would call the for third thanks today.

of for through three another allow quarter three. we performance our of to Wakix. of versus net seventh which sales, number driven XXXX, was in as on of XX% needs existing consecutive me awareness elaborate the number We quarter that of of a reflects our Pillar QX, strategy, our the delivered is date. extremely Wakix $XX nearly commercial Wakix strong the believe patients. of the on action pleased product the QX in achievements and prescribing narcolepsy million date. continued Please is one strongest and shown We product. Harmony, the the average almost healthcare Wakix has growth quarters slide unmet growth increase to for unique and number of year context are represented this with patients optimize three and of significant team greater by I'm to with on the growth, to This the quarter professionals profile well progress a mechanism made our aligns pillars in in our

Wakix two, pillar onto to Moving is the beyond of expand utility clinical which narcolepsy.

to need are both beyond additional programs continue two populations in PWS, no Syndrome, there myotonic patient rare have clinical advance our limited and Prader-Willi of where or approved or narcolepsy, and or dystrophy, disease medical unmet therapies. which We significant DM,

also are this indications management for finally, We three, continuing our intend strategy to product broaden lifecycle consistent for to our to new assets beyond portfolio rare acquire evaluate growth. expand pitolisant We diseases. Wakix. unique pillar with our additional for long-term other in And neurological efforts

strategy multi-product won't enable infrastructure, which focus aspect which antagonist, We existing X HBS-XXX, This should expertise we of this in us with business leverage but melanin-concentrating Wakix. pipeline the robust HBS-XXX to launch important An transform that intend pipeline additional development focused Harmony's our diseases. evolve of to our it development, where neurological August first pillar Our assets is and is intend be a launch, rare with is portfolio of beyond be lifecycle. acquired may our the we into last. intention and managing optimize to can development various Wakix during we we of at and hormone intended our both therapies innovative is catalyst while in acquisition, that a costs. on our on of first potential for company to announced the Harmony that a after stages innovative into example pipeline a therapies first rich how receptor asset is

key strategic the should that to us future further on collaboration announced our enhance with capital, this to financing for ability Blackstone which execute quarter we additional last with pillar access provides growth. Importantly,

strategy, our further are Finally, this our on and progress look forward we call dedicated turn Commercial to assess that the our to that future Jeff in I sharing over to like business development continues opportunities with area note, aligned calls. Chief team On to Dierks, would Officer.

Jeffrey Dierks

for there QX industry, line foot end we to due saw expectations a our Wakix overall X.X% XXXX. key increase organic noted holidays, quarter slide performance quarter we from and QX. of performance strong in quarter Net We metrics an the the to XXXX representing Thanks, the observed third continue second of a top from anticipate expected see the September the We Wakix John. $XX.X at XX% strong to increase was vacations of close million, measured continued to quarter across or and four. with out in offices and by in another for line for lower increase traffic Despite the the as QX, patient seasonality revenue prescription on growth XXXX. is a physician the growth growth quarter third in summer in in

patients for average to five. what aligns XX% on product well approximately the Wakix reported speaks onto in growth Wakix market. to from narcolepsy quarter the needs strong of differentiated Wakix Moving slide how and consistent demonstrates profile we X,XXX The average number The to on the of number demand in quarter-over-quarter meaningfully the continued the unmet patients. approximately of increased second patients

performance driven key to factors. by the commercial following strong continues be Our

quarters, two-thirds for offices branded healthcare past we sales still products in-person engagements meaningful team. professional a providing phase. field with First, with over for to exchange launch education healthcare in-person all sales in healthcare seen continued professionals our field We've more consistent saw of the to access about offices access two professional

offices, QX foot levels, increased noted As the seasonality earlier, strong expected to summer from patient see of of vacations healthcare is and professional despite access traffic decrease which reflective we the holidays. did

corresponding anticipate top line traffic patient QX, the increase encouraged we increased seen by professional offices, in a are Wakix's foot demand. early We with which to healthcare in to prescription lead continued access coupled will

strong patients XX% patients, patient's to help step workflow, of out with adult building to formulary these these formulary get positive narcolepsy covered on patients or Wakix decisions prior of decisions managed for with the generic increased cataplexy prior since strengthen making Wakix. the access Wakix the take access These all favorable type approval market Over U.S. either for eliminate additional managed to in Second, And already continues narcolepsy for plans care ability plans Wakix. within additional accelerate a an we helping X saw lives friction to XXXX. for decision QX, cataplexy. And decisions cataplexy. of with decisions action to to in to indication number have positive of care October reduce edits

growth approximately and Third, we the majority of third prescribed through in since population, the see Wakix. continue patient broad of in more the to Wakix clinical prescriber Wakix Of We of base narcolepsy than X,XXX that the saw quarter. diagnosed adoption continued XX% QX. launch the of healthcare treat meaningful end professionals have the

continue X patients for for We across written the half and narcolepsy with utilization see type for narcolepsy Wakix Wakix about type population, half adult narcolepsy patient patients. being X of broad of to new prescriptions

narcolepsy monotherapy, continue treatment, to for and as as well cataplexy other being Wakix the We all both adult clinical Wakix we for with as of prescriptions Wakix, prescribed the EDS and prescribers patients which their of broad of effectiveness see see have speaks to two the prescriber written more majority product. since utility the for of launch. With or growing concomitantly narcolepsy base our

concepts. a reconcile, Now for few it's unique of trying patients to of understand against to those important number Wakix on the prescribers, average number the

the First, patients number persistency factors it takes measure patient active believe medication metric the new average of starts, this on quarter discontinuation. a is We number product. including behavior, midpoint a into patient a best is metric the of of patients each account patient compliance, and and represents of as

of novel Wakix XX% extremely market filled Wakix's expected have for a XXX presentation cataplexy, research see opportunity, demonstrated each minimizes X the Second, field strong prescribing unique on market due the or program. by of commissioned and treating of interest update narcolepsy. and professionals for turn five those market Dayno about practitioners included to who've that and clinical of treatment of increased narcolepsy with professionals narcolepsy with extremely is approvals. nurse from to industry, necessarily narcolepsy the is performance I a professionals, and plan future healthcare for in in written and consistent a about future to practitioners Wakix access community substance up minimum EDS their Wakix. is healthcare the our start Harmony to or More narcolepsy in top care product assistants, reasons, and prescribing type controlled choice effectiveness six. the more for the their PAs and cited the or in a changing we in Jeff? and professional existing to for the including month treatment on both be Wakix the than patients majority over the managed not the new prescribing of it and physicians for opportunity, healthcare of and patients surveyed by healthcare pleased offers written professional they strong will narcolepsy team, professional number all excited of Wakix not mind market future on pharmaceutical difference Wakix prescription Wakix without lives are currently an Wakix with I'm patient of adoption the practitioners people of EDS of a now professional cataplexy. about continued We're the need healthcare giving reason X on action. abandon, and and nurse Across the encouraged Wakix as future nurse optimistic Wakix getting strong even the living sales The those making in patient cataplexy, and both narcolepsy of research in patients the their a whether healthcare the the by interest unmet We're Wakix cataplexy. recent measure narcolepsy adult living across patients. physician increases started for of prescribing physicians, professionals not increase healthcare of our prescriptions for end narcolepsy. access Wakix, prescribers healthcare future Dr. XX% use who with of stated type increase the improved prescribing shown in vast for Wakix on given stimulants, Jeff and mechanism PAs a Wakix the from slide the feedback a Recent development of their

Jeffrey Dayno

good Thanks, everyone. Jeff morning, and

products Wakix, previous guideline of some in clinical Wakix with them. of which with the based another patients Assessment. updates trials given and cataplexy performance size pivotal of approved by supports adults based narcolepsy on that Meeting Impact of by assessing and treat, magnitude way data that and a evidence accompanied the A turning Clinical Cataplexy the significant and and to on of June, highlight Annual the and article in Together, for clinical Before pitolisant for treated AASM Treatment drug update based the of as Systematic the adults practice development benefit Of pitolisant, being strong narcolepsy in an clinical large first manner. titled only improvement recognized currently just Effect disorders would and in at central sleepiness recommendations of Sleep therapeutic the broad lend number Jeff on programs, XXXX Hypersomnolence, all a and guideline of like data now Wakix the a efficacy papers two larger Disorders Grade Wakix. significant results to I of effect living treatment that commercial NNT, Medicine effect the utility recommendation of its a and size, like base second outcome, to the was recommendation EDS one includes strong highlight AASM represents sometimes published a of clinically I to efficacy presented showed American Adults ranges of received the is those the as and risk Daytime Central and placebo literature. Sleep September, treatment is support on represents treatments small data seven, The highlighted analysis Treatment to efficacy our Academy recommendations daytime cataplexy Assessment of as practice Sleep a relevant and includes between to overall on for support an that clinically poster Excessive effect poster profile included a updated Analysis following slide clinically with Sleepiness for Central size, provide with for post-hoc new spoke X.X with X.X Medicine This gain. as guideline of Wakix of American drug, X.X Hypersomnolence, Pitolisant the In a Medicine Medicine guideline, Harmony treatment Med the measure the Academy hypersomnolence. needed recommended would utilizing narcolepsy. an practice This of the a narcolepsy, of special option a from of to both in clinical in improvement Journal as the for adult on Sleep in living Wakix point for published of of was that a other Clinical of the of the size. referred Academy patients excessive evidence article which the in an of effect and practice is American Sleep titled replaces adults, narcolepsy. Disorders greater in the of The in entitled these another size new difference medium guideline is evidence Review, in with or on published and of the from the Narcolepsy.

was size in slide on pitolisant X the EDS the shown and the the trial. X.XX X.XX of Harmony improvement As from CTP effect eight, from Harmony trial on

NNTs treat, size. a NNT, reduction is need For X.XX, for of the than to to range represent improvement across with being Harmony in needed considered to indicate for a nine pitolisant cataplexy, measure trial, had that patient. effect that the large results from effect demonstrating is for in the reduction pitolisant clinically from NNTs an achieve outcome the size meaningful number be and effect. of of or considered effect, to Number generally measures three robust in a NNTs in the of less includes the a XX multiple cataplexy more to the EDS treated poster patients Slide a which one CTP were specific five. Lower

in results XX.X% the for is utilizing results recommendation NNT spoke three, narcolepsy for respectively. the the for XX% least both of in cataplexy, a XX.X% at practice pitolisant for the at three cataplexy, clinical takeaway reduction and to XX% evidence that in demonstrate and clinical patients rate cataplexy. in in a equate data the least pitolisant from and in the the improvement least had NNTs for reduction of These weekly and that treatment treated reduction robust XX% Specifically, reduction at And The size for XX.X% had had with EDS in efficacy that cataplexy. data as four, of results a to reduction these these guideline Wakix I strong are derived of adults from AASM previously. served effect

or with EDS clinical with our development in and treatment Prader-Willi trial to for our the symptoms patients in XX clinical and Syndrome, trial in is evaluating pitolisant of slide on safety the programs. efficacy X This Phase PWS. of and other patients PWS. the continues Turning pipeline Enrollment proof-of-concept

enrolling a screening sites We added all sites additional have actively patients. few clinical with and

top At line continue on we'll trial provide continue the both half We families. data the as monitor patients year the trial COVID-related to toward time, the pandemic the to as of the progresses. site we from work well potential of next and due issues, to as this and impact impact on first updates perspective,

past was and end clinical with designed been with is pitolisant DMX. efficacy have trial Moving The with proof-of-concept initiated other DMX. to June the symptoms of year. of evaluate months at few screening X the and dystrophy, line type in non-muscular and onto This in adult of for activations site safety X Phase trial the busy second myotonic efforts. Top or adult patients trial half the enrollment in initial and data anticipated patients next EDS are and

a receptor mechanism antagonist a potential action. Our X or new MCH hormone a asset, represents molecule with first-in-class melanin-concentrating of HBS-XXX, novel

to our call this the our turn targets We explore clinical which Kapadia. clinical forward. will to stage potential now over asset, going strategy Sandip? I for our will development Sandip CFO, early inform continue

Sandip Kapadia

we you, quarter third details This financial results. morning, our and morning XX-Q, the Thank filed issued release and of our and and good announced Jeff everyone. press where you'll our XXXX operating find

pleased XX again, performance posted shown income the revenues once We, we're I'm investment continued our quarter growth. third while Our posted manage seeing. third is effectively on highest XX. our and to quarterly quarter momentum net and slide date operating results, with our with to continuing

XXXX, as the Wakix This growth the typically we had lower is revenues prior in of net posted year a the quarter. of offices. quarter. versus patient We're quarter the represents in average This to with of increase we quarter see also $XX.X For patients, prior number third $XX.X visits see for especially year XX% of from where million $XX.X to during net of growth to compared QX, a million revenues continued pleased a XXXX, million. physician X.X% we seasonality where

XXXX million $XX.X The year versus third quarter was gross in prior the profit quarter. $XX.X million

Third in of driven year versus operating million and the quarter the be pipeline The prior $XX.X growth by commercialization $XX.X expenses our programs. expenses Wakix million were continues of to operating advancement our quarter. in

as operating income third million, quarter. As posted the quarter operating income profitability million and well in favorably a of underlying result, XXXX operating to we of which $XX.X prior-year improved $XX.X compares

debt a net loss the $X.X OrbiMed. the a adjusted of prior items. non-GAAP compensation excludes facility with income one-time our income is cash, quarter, measure. with depreciation, extinguishment current to million prior the amortization, year million $XX.X contributed on for a we position stock-based net For $XX.X quarter. quarter the press of share measure. equivalents this third Please per incur release financial or loss We September expense, million versus share reconciliation strong, the for Non-GAAP operations Non-GAAP of and quarter. quarter $XX.X did of other interest This or our Non-GAAP our diluted million per for $XX.X generated million $X.XX a adjusted in $XXX.X XX. from income cash was cash the third see of from cash net diluted million adjusted third in remains net and non-operating $X.XX as

debt our As in with resulted of with which rate, we financing the capital considerably third interest $XX to meaningful at the strategic interest Harmony a to quarter, provided during million payoff an collaboration a was annual it us also as facility Blackstone. transaction of million. This completed lower reminder, prior approximately loan $XXX savings

Blackstone also in addition, also will we million look capital to In included a This equity pipeline. access provide incremental $XXX million $XX us investment. to financing expand as our

So, we finish with in look as QX. growth expect to year strong revenue we forward, the continued

increased in SG&A, execute strategy to as investments successfully also our profitability on growth while We anticipate maintaining the continue R&D we year. on three-pillar and

with in to solid operate additional a to that a So, to additional we ongoing our We position sheet, continue conclusion, revenues fund programs assets. capital, strength and development prudent and expense reinvesting to balance of growing from control. forward acquire access capital look

with back call the to remarks. closing John John? turn his for So, to I'd that, like

John Jacobs

best Thank our QX, history. on successful three you, our pillars for Sandip. I that in quarter busy which company being consecutive seventh represented so of growth hope all strategy. our made a quarter delivered yet you of In advancements in can with far been growth, row our a has year we XXXX sales see and company,

we clinical a to diligently Harmony back today. planned to pipeline and Wakix We continued to opportunities neurological rare the we Wakix assess to into to utility you Operator, please call, programs call answer. operator neuro turn look are leading and over and additional the beyond our the as concludes beyond expand questions? expand to narcolepsy, our working our grow of now to assets advance future. questions for disease I This facilitate will to can the our joining company in we remarks things open of Thank

Operator

Our first the line from of Thank Chris [Operator Instructions] you. question comes Howerton.

open. is line Your

Chris Howerton

on for continued progress here. Good questions taking the and the congratulations you much Hi. Thank morning. so

So, I -- guess, for absolutely. maybe me yeah,

Jeff questions quick Dierks the then for Jeff maybe and for Jeff, two Dayno. other one So

there terms perspective, experiencing. Jeff, one experienced have of guess, more the you've a the step little some give what of For either could access I some that side, us that a two from percentage plans of you’re information coverage you color or on far thus commercial edits? in Just

Do I to question do like for been be? pediatric second a for above And you then covered Jeff of where to narcolepsy that year? you also there's the the The be trial. and that next expectation when And one, that get kind related expect about expect XX% you to quick one would should third increase kind to question access, know of of the is, be status that which Dayno what would some lives?

that you if had then. updates any curious Thank on just you. So,

John Jacobs

Dierks, you two questions? for question. your Jeff those you Chris Thank why take don't first

Jeffrey Dierks

Sure. Thanks Chris.

X as lives, with looking approval the a patients edit XXXX type Wakix. one generic at percentage two on plans generic is promoting question So, to plans for agent existed seen that October since speak or less of especially two those and/or respect I for with have the indication, can the or edits of a cataplexy edits the have frequent. patients a type have step step place. generic vast to the of those your of that When to What either narcolepsy step stimulant in become we've getting what one wake majority prior X you're

majority vast edit. the generic or have audience of lives either type So, zero one step within the X

edits. you one likely vast then generic the step bit ahead So hopefully, or a that step type two of it's the context. would vast And you, edits or in majority have X tell generic majority zero in of gives I X have little type them. one

lives. on second question Your covered

and you D point the of do formulary documented I that Chris, that of published domain lives, talk access And about in have actual Wakix. that to commercial, covered reported Medicare about position U.S. have XX% and documented XX% Wakix those are insured all we I lives when plans public Medicaid. for can see across policies formulary can Part So, have the

forward or letters published medical approved a through or The other of getting path don't medical XX% documented a have to that policy still exception. of necessity Wakix have plans

But have for to not in policy, they adult published patients narcolepsy living almost policy. when ever of do XX% that is all and a it's if plans have essence, narcolepsy the and policy. the publish takeaway So patients the not The vast if adult to I a almost access published with actually patients, think that Chris, whether important determine or have Wakix. a a for may with access Wakix, it's majority, non-published all thing all, you, living hard formulary

So hopefully, helps. that

Chris Howerton

That is helpful. Yeah.

John Jacobs

type That's not Wakix to unique of payer that pattern.

just to comment want may that? on You

Jeffrey Dierks

a point, Sure. John. No, that's good

So, the other thing that's we important, Chris, is our published goal was very always coverage. formulary quickly. to that achieve XX% And of achieved

favorable to access an market achieve. done And that and then stereotypic had early across team access. brands John's that amazing threshold XX% a job. point, to always Our most been the that industry that's secured we seek It the achieved. target market But has target

John Jacobs

Dayno, then narcolepsy. third And Jeff Jeff. Chris's pediatric you, question, Thank

Jeffrey Dayno

Yeah. Sure. Chris. Yeah. Good morning,

our trial, be to narcolepsy, that a readout pediatric complete in as been data that of of a to work partner pediatric optimize strategy how they So, narcolepsy. to will with pediatric Bioprojet and with our And proceed narcolepsy. in regard conducting important inform has program Phase overall trial patients to X sort

Bioprojet keep So happening trial. that's that with pediatric narcolepsy. We'll updated what's been everyone as progresses

Chris Howerton

on Well, the and questions progress the very again Okay. you taking for All everybody. much right. thank congratulations

Jeffrey Dayno

Thank you, Chris.

Operator

you. Thank

Ami Our question from of comes Fadia. line next the

line Your is open.

Ami Fadia

questions. a morning. couple Hi. I the had of Congrats progress. Good quick again on

related you number the then mentioned see prescriptions coming And talk the how you is -- latest of that expect quarters? what quarterly launch based physician got on to the just you've patient seen to in add that, the prescriptions. thinking progress, regards really could you new per that the that of number to is Firstly, I you think about with your

is talk is around could bit per about -- would little the total to from? of data if growth that of prescriptions prescriptions number you And coming prescriptions, mix a And physician helpful. you're new of what be where a the that total kind seeing? So about you the have point

John Jacobs

a has at one take don't a adds our I understand we've our the here? thing we're is your you patient majority first question forward-looking and experienced over that the Ami. projections. you've Harmony, providing launch And not launch of quarter-on-quarter. the you, Thank community patient think been And Well, why team we're as COVID. seen of that obviously, timeframe we leadership if think time, vast consistent pattern I during that supporting very But

consecutive seven was growth happen now In company quarter hard history. to of lift. fact, COVID quarter-to-date quarters might our what starts most we've as And It's to last experienced. successful in this project

don't not to we're working let have to some us. Jeff. color down, can ball can sure I that. especially Go to and crystal we a your question are counting clarify then those Jeff answer accurately. there, And So, but context diligently ahead, second anyone who we perhaps let add additional on patients Dierks make we that

Jeffery Dierks

Ami, that John's Not for much on question. the I pleased thanks it spot think add to we're with was commercial extremely to response, our continued performance.

the the growth as pandemic. providing strong that of prescription of by organic we're As And been seeing. continued guidance, encouraged in John confidence moving it in underlying continued are we patients quarter-over-quarter. lot average shared, we're number the through gives And of patients in not us seven that number average a demand growth quarter-over-quarter, forward shared consecutive has quarters John of the consistent growth in and although,

on can what I provide clarify could for, maybe question second you is response? exactly it Your prescriptions, Ami, you you're so a looking better

Ami Fadia

Sure. of on could in tell new drug. just from if it patient the Thanks. the Maybe new you persistency physicians from whether if adds? physician you on a comment to could first it's growth us that. of rephrase a Where prescribing you terms do product see And coming that patients to? time, patients or he's prescribing expanding drug And the for of also number is

John Jacobs

Wakix, who do research in physicians Wakix. the some Jeff indicating that that slides prescribing have continue have prescribe And question. Dierks are market provided to indicating handle that that majority today intend vast Ami, the more they we and/or will experience were with

behavior. each Dierks seen let repeat lot we're quarter, there. educational I'll and So, penetrate of subscriptions the an the market feedback for add Jeff we're new additional as adding as time you've prescribing and color a to seeing But getting very standpoint. we're also continue from positive we first context

Jeffery Dierks

for and you thank clarifying. Ami, Sure. rephrasing And

So, to where the of coming answer patient new question adds from. first are your about growth

sourcing narcolepsy are the we broad population. So, adult patient across

we diagnosed seeing are So, newly patients.

patients some coming patients. Wakix on agents, are X seeing X type treatments. stimulates promoting oxybate concomitantly We to being patients. wake And from existing and is current also all sourcing added both type we're

new seeing patients prescribers. from are We coming

have we meaning reported prescribing a We're writer, that couple every a We've the patients, write of prescribers or product. patient. a about a those So, already single new been continues. XX% quickly second, repeat prescribed hundred quarter fourth the becoming the when a has they're that majority consistently and also they universe a of third are seeing of new starting adding prescription

So, existing seeing the behavior, as as from third prescribers we're about your organic well you're is at writers. medication When looking persistency. patient coming question new growth so

So, patient related medication just one two behavior, elements discontinuation. persistency or to of

As end the category of the data suggest shared, public some about the XX% we've drugs at rates discontinuation range of narcolepsy the or between persistency that or compliance of year. the the to XX% in first

by this in with that tend the of a a XX XX% data it to with has we months. category treatments said So oral Wakix consistent end what of been other different patients very way, see stop category. who the start in medicine to XX% narcolepsy about And is this

seeing is consistent. persistency we're So, the that discontinuation

has an high We number have hording individuals. actually is and talk the that just rates. we that professionals within is this the closer what XX% take patients likely other that that believe meaning temporarily the though healthcare the end there community, caused what category. believe on to the seeing their consistent that, of they hearing of even rate observed with persistency data prescribed medicine higher patients than They uncertainties to products having Wakix is their discontinuation the they doctor. XX% Wakix within of range that for And healthcare Wakix XX%, are that other due it's They're the When as healthcare medicines. COVID-XX and But is we're perception between by are impact stopping is on a compliance Patients level better patient a the medications we've this that community to physician to that is from doses. for products is professional. economic be do compliance, from heard and range about may the behavior. additional skipping as we're taking -- XX% meaning rates medicines patients by compliance to XX% of prescribed Stereotypic their

as So, medication of of hopefully, patient dynamics. about that behavior as little well helps some the source a business bit

John Jacobs

Thank that your clearly? you, does Ami, answer question Jeff.

Ami Fadia

Yes. It Thank much. you does. so

John Jacobs

to Good Ami. you, Thank hear from you.

Operator

you. Thank

next from comes of question Our David the line Amsellem.

line open. Your is

David Amsellem

Thanks. Hey.

So, just a few.

of to get as heavy as what wanted we much the that in to anyway. gross And I to alluded starts function beyond improvement of directionality it the relative the starts, extent sense of that of you gross I gross in quarter-over-quarter from regarding ask Does in can Then, a last the get subsidization. not I'd ease growth a figure sequential to lot, continued a XQ. do you be then, the know also some seen your I growth I suggestive XXXX, some and move next forward net? talk overall we only of to to of versus And move into going just patient how net to you this new expect just growth comments, do particularly out-of-pocket but come you've thinking net? So, pandemic, in improvements. we've question, to Is expect you to know improvement growth, out in but past? going some year?

Just make idiopathic that might setting and whether you decision on in any when hypersomnia move for pitolisant. forward a to Thanks. on thoughts

John Jacobs

aware, provide don't about for color in perspective. be we and as And helpful But you obviously, on thinking context a said some look, your guidance. might before, we've how we your are as thank forward-looking well from the future different questions very David, questions. you're providing

the to non-COVID for And continue COVID really, product. lifetime a And our said strong organic our months majority environment launch, we launched our in we else. that. and as for as the everyone you expect demand few as before, we for a facing thank vast been then at drug So, it's of depressed of of we're

the of the of our families All patients, and of this of all us. our us the colleagues hitting all were fatigue facing global pandemic in industry,

happen might seen Jeff But opening what we've demand COVID-depressed in believe a know don't future strong it our in a environment. to Dierks calls his to foot And as consistent really we've stated into quarter-over-quarter, I sales on even Jeff, with increase now with Chris we starts seen So, Howerton's the in two-thirds, organic lift. this about And at QX. physicians. statements offices, patients bit been reps starting starting going have of analysis of in face-to-face traffic

positive are those So, signs how into strong we say organic for we us that as pivot go continued expect hard that and next demand. It's may year. to

we related CFO, versus. perspective. Sandip? benefit would that let gross to question to gross a net what I'll proportion maybe your of to Sandip net address try to there see Kapadia, our portion and from other The

Sandip Kapadia

John. Thanks, overall, co-payments higher tends net and But stable. the of to to gross generally, yeah, QX be it. obligations. as mean, balance it you the other to Medicare gross net for to And where fairly a the from there's know, and There's resets one be perspective, year, tends I

so, the to would be seen at stable mentioned, quarter to we've generally into expect as going John in net And relatively growth quarter. strong we to overall, So, current fourth what in least -- gross quarters. quarterly four we expect,

John Jacobs

Thank you. was Wakix. believe drug narcolepsy one Wakix exploration before not I last just a the and is potential and we're for drug. that And opportunity. a then histamine a question your We've with additional stated that contemplating currently sleep hypersomnia. or portfolio obviously, And idiopathic It's a we is David, modulator believe, a of indications product

internally, indications considering. product. explore So, thought of IH the expand our the is audience. we'll beyond that we to appropriately narcolepsy continue we're external one how communicate the as to process to finalize we And with

David Amsellem

All right. Thanks.

John Jacobs

David. you, Good you. Thank to from hear

Operator

Thank you.

Danielle Our question Brill. comes the from of next line

is line open. Your

Danielle Brill

and for you thank questions. morning much the so guys. Hi, Good

John Jacobs

Hey, Danielle.

Danielle Brill

with if think I other guess, fill than and But an up and in growth, this the you they might like seasonal drive down metrics about a new of also quarter? you I to come Do few. starts. on XXXX question to impacts sale stronger have up? like time I time then elaborate doses to were David's seeing past XQ know I be could the just of you in first, that go wanted patient So, And times to wanted some ask in patient specifically will on average there. following average are you dose, adds kind new

John Jacobs

Good question, Danielle. you. Thank

to and seasonality other want and we on the context. that adoption. some some of might then, then on the metrics add one Sandip, comment additional impact can did factors And maybe and you So, seasonality? have on market penetration other Jeff Dierks

Sandip Kapadia

Yeah. into as mentioned in QX. Sure. in would acceleration -- have coming we specifics I We -- just would out a momentum see how of generally, seasonality over the of saw terms summer summer, We mean, we visits. it's patient months. go don't we QX lower strong we some expect Q the in

market that provide best can So anything a then there thoughts, maybe, our in Jeff, of the from least to perspective add. like that you'd thinking. that's at our And is terms we insight

Jeffery Dierks

on the think Thanks and some what for question, seen in headwinds. are QX, we've And Danielle. comment, I Sandip's QX to build there

payer with You've co-payments, in insurance insurances, changing got Americans dynamics the first the quarter resets, out-of-pocket.

anticipate And a And rhythm quarter, in tend and fourth where the there. and with summer branded of starts for to new would see adds. got of there. that I to patient in mirror you've a the to you second We've starts and to most little patient headwind through itself tend that XXXX. planned some holidays, new to the products, bit that seasonality would traditional patient likely respect So, growth see expect you taking headwind more more come you vacations, I then specialty the respect higher be with have sort new just to

John Jacobs

question, Danielle's factors those of was And factors. like some the persistence, I follow-up about types other compliance, think Jeff,

Jeffery Dierks

Yeah.

average terms growth So, time What X.X%. questions of respect number gross, for the growth patient relatively other with and seen, We in Danielle, of growth it's was fill. mix sales been strength right? net reported to metrics to we've of consistent, X.X%. The

elements you remain So, most relatively which that forecast the tells other underlying of they're highly consistent. correlative,

those So, consistent the terms amount decreasing extremely market But would model. well by seen our we've quarter, Time been two-thirds remaining anticipate our relatively patient the than a number the a new in the second function more access average pleased But XX.X. That's the I as at stable. in medicines refilling with of improved that time. been we've their and operational increasing to be other patients to our of efficiencies. consistent dose Wakix driven We're to has on operational relatively to patients with continue efficiencies it's dose little had be quarter-over-quarter. growth mix grow the again, to of of adds ability highest of and as fill

Danielle Brill

Okay.

clarify. So, just to

were you primarily after taking just by patients in it's September, refilling adds, that like summer growth seeing Rx driven off? new months not the the So

Jeffery Dierks

Correct.

we prescriptions, -- quarter the and of fourth patient is Danielle. of third Some early into exactly saw quarter indicators new that right, the new the growth end the on at starts, the contingent

Danielle Brill

Okay. Thank you for clarifying. much Great. so

John Jacobs

you, Thank Danielle.

Operator

call further in over Thank turn you. I'm I no the showing to Jacobs John now questions the queue. will remarks. for back closing

John Jacobs

to sure to Amsellem's to one earlier just clearly. moment And you I gross much. net so heard you impact, Thank we to want David go more about make David, back question

just Dierks, communicated for I Jeff referenced In color that we context you. yet at the did increase back program mentioned see quarters mitigate. program for component want pandemic. have we assistance, also past, an of that patient have or and demand start that assistance that patient answer assistance think our any to we for seen David that you we the fully I perhaps might prior there. we to our perhaps our or circle the make Patient in height in net? hadn't I to believe of on gross thoughts sure

Jeffrey Dierks

Sure.

utilization to remained been quarter. program, third respect It's with in So, to the dating consistent. assistance patient has that of back relatively David, year our level elevated of and it's last demand

a deduction. net patient program gross not though, is assistance to Importantly,

that commercially assistance co-insurance more eligible patients, co-pay is to net net where elevated implication. looking for a patient insured gross So, gross not you're and but demand at for is to that

reserves. commercial I to with is goods wanted our an So, for But any Medicaid, where Medicare, continue to you see have, statutory not our program we organic more of contracts rebates clarify program our goods program, gross free despite assistance of gross free strong that demand. nets that demand patient return the to element net. to grow just are underlying And elevated or our the we

prescriptions as through patients both as our our patient well assistance to extremely help with pleased So, we're program. ability

John Jacobs

we'd goods et we're And won't get people that be program, new to gradual time, to starts part mitigated be Harmony. overnight. that is It be and It free at the will as importantly, ethos our insurance, with reemployed staying cetera. over expect as And patients, pandemic of get lift. demand which

We'll so would with for of appreciate Dierks, for much on your working you just question. that, to We everybody. your time keep not us it. us I today. are and can you, call Thank you, sharing prior thank David's the to importantly every that the with let clarification down at and So, counting down that Thank patients energy Jeff this I we think not you day. all and end Harmony of any time. hard let participation at And

Operator

Ladies and participation. today's gentlemen, Thank this concludes conference your for you call.

disconnect. You may now

Harmony Biosciences (HRMY) 14 Nov 212021 Q3 Earnings call transcript