Roivant Sciences(US:ROIV)2022-08-15 15:22Financial Data and Key Metrics Changes - The company reported a total adjusted net loss of $354 million for the quarter, with an adjusted net loss of $211 million [36] - Research and Development (R&D) expenses were $136 million, while adjusted R&D non-GAAP was $123 million [36] - Selling, General and Administrative (SG&A) expenses were $149 million, with adjusted non-GAAP SG&A at $88 million [36] - The company maintained a strong capital position with approximately $2 billion in cash and cash equivalents [8][36] Business Line Data and Key Metrics Changes - The commercial launch of VTAMA is ongoing, with early prescription volume reported as robust [10][12] - VTAMA has become the number one most prescribed branded topical for psoriasis within eight weeks of launch [12] - The company is tracking prescription volume as a key metric, with revenues expected to grow as contracts are established over the next 12 to 18 months [14][36] Market Data and Key Metrics Changes - The company is focused on capturing market share from corticosteroids, which are currently the standard of care for psoriasis [45] - The competitive landscape includes a new topical competitor, ZORYVE, but the company believes its product has meaningful differentiation [46] Company Strategy and Development Direction - The company is leveraging its proprietary QUAISAR platform to enhance its clinical pipeline [8] - The strategy includes focusing on diseases with high unmet needs, such as lupus and dermatomyositis, for its Brepocitinib program [26][72] - The company aims to position VTAMA as a mainstay of therapy rather than just a pre-biologics option [83] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early engagement with patients and physicians regarding VTAMA [44] - The company is preparing for a catalyst-rich period with multiple pivotal programs expected to yield data in the next 12 to 18 months [38][39] - Management acknowledged the challenges in establishing payer contracts but remains confident in the product's positioning [85] Other Important Information - The company plans to hold its Annual Investor Day on September 28, 2022, to provide further updates [35] - The company is actively monitoring the impact of recent drug pricing legislation on its programs [59] Q&A Session Summary Question: Can you discuss the expected ramp of VTAMA and competitive dynamics? - Management is pleased with early prescription data and believes it sets a strong foundation for growth, viewing the market as competitive against corticosteroids rather than other novel agents [44][45] Question: What are your thoughts on gross to net dynamics and cash burn? - Management expects gross to net yields to be low until commercial contracts are in place, with a focus on maintaining a two-year cash runway [48][51] Question: Can you provide more details on the VTAMA launch and prescriber behavior? - The company has seen a broad range of prescribers, including both mild and severe psoriasis patients, and is focused on high-prescribing doctors [57][58] Question: What is the physician feedback on VTAMA? - Feedback has been positive, with physicians excited about having a new effective topical agent, and patients reporting fast onset of efficacy [75][76] Question: How do you view the SLE market landscape for Brepocitinib? - Management sees a significant opportunity in the SLE market due to the high unmet need and believes the dual inhibition of TYK2 and JAK1 will provide a competitive advantage [70][72]