Avadel Pharmaceuticals plc (NASDAQ:AVDL) Q3 2023 Earnings Call Transcript

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But what we know historically is even though the prevalence shows about a 30% NT1 70% in Q2. For oxybate, it actually historically has been the exact opposite use of 70% MT102. So I think maybe in the future, we can provide some insight into some of those trends as more usage with LUMRYZ increases.

Operator: Our next question comes from Chase Knickerbocker with CH.

Chase Knickerbocker: Just first — I wanted to ask another question. Sorry to belabor the point here on pull-through from RYZUP. Maybe just asking a different way, if you look specifically, at the patients within the 400 that were on RYZUP that exited Q2 not on therapy. What was the conversion percentage specifically with those patients within Q3?

Richard Kim: Yes. Chase, the majority of those patients who were enrollments at the end of our Q2 or going to Q3s did convert on to product. Now we haven’t given specifics on the exact percentage because some of it is dynamic. I’ll give you one example. We have patients who enrolled in June who just got reimbursed and shipped product in October. So when we think about those 2 sort of buckets of covered lives versus not, the covered lives going through will be quicker than those who aren’t. Our digital philosophy is if a physician prescribes LUMRYZ going to go to the end of the earth to get them on that. If we see a fair path forward. And like I said, we have examples of June enrollments taking unfortunately foresee several months, but actually getting them in process. as well. So I think it’s still dynamic. So the majority did, and we just receive with more time that, that number should be increasing from that cohort and every cohort as well.

Chase Knickerbocker: Is there an amount of time where they’re on within RYZUP that you do start to see some drop outs? Is there like is it 3 months? Is it 4 months? And then just another quickly. Any feedback from the field as far as anecdotal kind of experiences with how the titrating has gone for new patients, and whether or not there’s a difference for whether or not a patient has been experienced with the first-gen sodium oxybate for years versus they’ve been on it for 6 months? Any sort of color there would be helpful.

Richard Kim: Yes. Starting with the titration for the new patients. I would sort of say from the physician that tends to be a bit of a mix. Sometimes you have slow titrators who want to sort of take their time to sort of get up to that. And I think on the other side, you have people who get there a little bit more quickly. And I think that predominantly position depending on sort of their approach. So it’s been a bit of a mixed bag. Sorry, Chase, what was your first question again?

Chase Knickerbocker: On just for those patients that you do see dropout of RYZUP, even if it is a small number, they’re like in a number of months that they — you start to see some fallouts or has there not really been a clear trend there.

Richard Kim: Yes. No, no. I mean, we’re sort of getting to that time where some is for new enrollment, they may tend to drop out a bit. Some of that may be after exhaustion of going through the medical necessity pathway or from the patient. So we will start to see some of those patients start to drop of here as more combos gone by. From past launches, what may happen is they may revisit the conversation again in their next visit with their sleep specialist again. But definitely, after some period of time, the success rate, after sort of 4 or 5 months, definitely starts to go down.

Gregory Divis: Yes. I would just add that to your question around the 400 cohort, we’re very pleased with the percent that has converted. We described it as the majority. But I think across all cohorts, there’s an opportunity to continue to get better. And when someone decides to — predominantly when someone decides to exit RYZUP, it really is 1 of 2 reasons. It’s just the payer denial that we haven’t been able to get over or that patient has gone through the process and then at the end decided they’re not going to go on therapy, right? Which happens. It happens for all therapies. So — but again, that’s a relatively small percentage as we’ve described. And we’re pleased with people sticking with it and the conversion rates we’ve seen early on. And knowing that those opportunities will only get better and they’re already coming from a really good places.

Operator: Thank you. This concludes our question-and-answer session. I would now like to turn it back to Greg Divis, for closing comments.

Gregory Divis: Thank you, and thanks, everyone, for your time and for joining us today on our third quarter 2023 call. We wish you a great rest of the day and look forward to follow up. Take care.

Operator: This does conclude the program. You may now disconnect.

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