Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: We noticed that the commercial margin for LINZESS is slightly up quarter-over-quarter. Could we see this continue to expand going forward and help offset some of the pricing headwinds? Also, what are your thoughts on the impact to LINZESS from Part D redesign in 2025? A: Sravan Emany, CFO, stated that while there will be pricing headwinds in 2025, specific guidance will be provided early next year. The current commercial margins are a good predictor for the year, and efforts will continue to manage expenses to maximize profits.
Q: Is there potential for renegotiating contracts with payers to improve net economics for LINZESS as it nears the end of its commercial life? A: Thomas McCourt, CEO, mentioned that they are critically evaluating investments in promotion and contracting to increase margins and profitability. They are considering various strategies, including copay assistance, to maximize profits and cash flow.
Q: How do you view the drivers of demand growth for LINZESS as it approaches loss of exclusivity (LOE)? A: Thomas McCourt, CEO, highlighted that the focus is on growing the market and capturing share. Increased awareness and expanded indications, such as pediatric use, have driven demand. Future strategies include efficient demand generation and exploring over-the-counter (OTC) opportunities.
Q: What are the commercial readiness activities for apraglutide during the regulatory review period? A: Thomas McCourt, CEO, explained that they are preparing the market through disease awareness programs and developing core capabilities like a patient service hub. These efforts aim to facilitate patient access and adherence, enhancing the drug's value.
Q: Can you explain the dynamics behind the $30 million charge reversal in the first quarter and its impact on guidance? A: Sravan Emany, CFO, clarified that the adjustments are due to timing differences in recording gross-to-net adjustments with AbbVie. These differences will even out over the full year and do not impact the guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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