Harmony Biosciences(HRMY) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2021, the company reported net revenues of $91.2 million, representing a 62% increase compared to the same quarter in the prior year and a 13% increase from Q3 2021 [14][40] - Full-year 2021 net revenue was $305.4 million, reflecting a 91% increase from 2020 [14][40] - Operating income for Q4 2021 was $28.6 million, compared to $7.8 million in the prior year quarter, while full-year operating income was $87.5 million, an increase of over $70 million compared to 2020 [41][42] Business Line Data and Key Metrics Changes - The average number of patients on WAKIX increased to approximately 3,800, representing a 9% increase from the previous quarter [15] - The company continues to see strong underlying demand for WAKIX, with a significant portion of new prescriptions coming from both type 1 and type 2 narcolepsy patients [20][21] Market Data and Key Metrics Changes - Market access for WAKIX remains strong, with over 80% of U.S. covered lives having favorable published policy access [19] - The narcolepsy market is currently valued at over $2 billion, indicating a large and growing opportunity for WAKIX [8] Company Strategy and Development Direction - The company aims to evolve into a leading rare orphan neurology company with a robust multiproduct portfolio and significant long-term growth potential [7][13] - The three pillars of the growth strategy include optimizing WAKIX's commercial performance, expanding its clinical utility beyond narcolepsy, and acquiring new assets to broaden the portfolio [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in building upon the momentum from 2021 and making 2022 the best year yet, with expectations for continued growth in WAKIX sales [7][47] - The company is optimistic about the potential of WAKIX to become a $1 billion-plus franchise through narcolepsy and additional indications [12][45] Other Important Information - The company generated $44.6 million in cash during Q4 2021, closing with $234.3 million in cash and cash equivalents at year-end [44] - The company plans to make a final milestone payment of $40 million to its partner, Bioprojet, in Q1 2022 [44] Q&A Session Summary Question: How should the company think about Q1, given the deductible reset and general seasonality? - Management indicated that while they are not providing specific guidance, they anticipate continued growth based on historical performance [49][50] Question: What is the status of enrollment in the ongoing Phase 2 trials? - Management noted that enrollment has improved due to contingency plans and flexibility in trial designs, with a focus on maintaining momentum [61][64] Question: What portion of narcolepsy patients are currently treated by the additional healthcare providers being targeted? - Approximately 10% of the patient opportunity resides within the additional 1,000 healthcare professionals being targeted, with these physicians managing a small number of narcolepsy patients [108] Question: How does the current market backdrop impact business development conversations? - Management noted a renewed interest in neurology and a favorable market backdrop facilitating deal discussions [111]