Roivant Sciences(ROIV) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported $5 million in net product revenue for the quarter ending September 30, 2022, with a 12% net yield, indicating strong prescriber enthusiasm for the drug [10][17]. - Adjusted R&D expense was$ 123 million, and adjusted G&A was $102 million, with the majority of G&A related to the commercial launch of VTAMA [46]. - The company ended the quarter with$ 1.6 billion in cash, or $1.9 billion after a follow-on offering, indicating a strong financial position [46]. Business Line Data and Key Metrics Changes - The launch of VTAMA has been successful, with over 50,000 prescriptions written and a broad prescriber base of over 6,400 unique prescribers [15][18]. - The company signed its first major PBM/payer contract effective October 1, which is expected to enhance access to patients [11][12]. - The company aims to replace topical steroids as the mainstay of therapy for psoriasis, with a target market of over 90,000 topical prescriptions in psoriasis alone [18][19]. Market Data and Key Metrics Changes - The PBM contract covers about 30% of commercial lives, providing a template for downstream customers [51]. - The company expects to see improvements in gross-to-net (GTN) yield starting in the current quarter, following the effective date of the PBM contract [70]. - The company is actively pursuing health plan coverage in addition to PBM coverage, with constructive discussions ongoing [63]. Company Strategy and Development Direction - The company is focused on expanding the VTAMA franchise, with Phase 3 data in atopic dermatitis expected in the first half of next year [41]. - The company plans to leverage its anti-FcRn franchise, with IMVT-1402 expected to enter pivotal studies shortly after initial Phase 1 data [83]. - The company is looking for high-quality programs for in-licensing opportunities, focusing on later-stage assets that can enhance its portfolio [73]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a commercially attractive P&L and expects to provide steady-state GTN guidance after signing additional contracts [17][40]. - The company anticipates 2023 to be a significant year with multiple catalysts, including data from various studies and continued growth in VTAMA sales [47]. - Management noted that the recent workforce reduction is not expected to impact major programs or key projects [67]. Other Important Information - The company reported favorable safety data from a pediatric study of VTAMA, which is expected to support its commercial strategy [22][24]. - The company is optimistic about its pipeline, with several ongoing pivotal studies and a focus on broad disease biology [26][35]. - The company is also involved in ongoing litigation related to Genevant's IP, with updates expected as the case progresses [39]. Q&A Session Summary Question: Coverage details regarding the PBM contract - Management indicated that the PBM covers about 30% of commercial lives and that downstream contracting will take approximately three to six months to fully implement [51][54]. Question: Process from prescription to fulfillment for VTAMA - The patient experience remains straightforward, with a$ 0 copay for covered patients under the new PBM contract, enhancing access to the drug [60][62]. Question: Expectations for SLE Phase 2 trial data - Management has set a high bar for success in the SLE trial, focusing on meaningful improvements in key secondary endpoints [66]. Question: Impact of workforce reduction on programs - Management stated that the workforce reduction is not expected to have a meaningful impact on major programs or key projects [67][68]. Question: Competitive dynamics and launch strategy for VTAMA - Management noted that there has been minimal pushback from physicians, and the drug has been well received, indicating a positive launch environment [77]. Question: Pricing strategy for anti-FcRn products - Management is focused on competitive pricing for both first and second-generation anti-FcRn products, aiming for a competitive advantage [88].