Axsome Therapeutics, Inc. (NASDAQ:AXSM) Q2 2023 Earnings Call Transcript

Page 4 of 10

Lori Englebert: Yes. Thanks, Jason. So I’ll answer that question kind of the reverse. So our DCC platform was and part of our DCC platform is how our field of size as well as structured. It was intentionally structured so that we could maintain a share of voice reach through omni-channel measures as well as face-to-face and/or round remote engagement with HCPs by reps at the same rate, as sales forces 2 times our size. So that’s why we – the DCC platform is so instrumental in how we reach HCP. In terms of the expansion of targets, we originally were calling on about 26,000 HCP prescribers, and we are now taking that up to 44,000 prescribers. And I want to make – the reason that magnitude is so important going up to 44,000 is they cover 90% of the branded therapies.

But not only do they cover 90% of prescribing of antidepressant, they cover almost 90% of new branded therapies. So, they are the ones that are writing. These are the HCPs, the 44,000 are the HCPs that are writing and finding new patients to put branded therapies on – this is a very large expansion of the target list. So it will be current targets and then in addition to going up to 44,000.

Jason Gerberry: If I can just ask a follow-up. So under the order, I guess, approach with fewer reps suite just those added 20,000 providers, you would have just not caught on those physicians or just sort of try to utilize digital means to get to those providers?

Lori Englebert: That’s right. It doesn’t mean that we’re being touched or engaged with. They were just been touched or engaged with through digital or media efforts or non-personal promotion efforts. Now, we are having reps individually calling them to detail the product.

Jason Gerberry: Got it. Got it. Thank you.

Operator: Thank you. Next question today is coming from David Amsellem from Piper Sandler. Your line is now live.

David Amsellem: Hi. Thanks. So just a couple. So first, on Sunosi, so you have a P4 filing, no surprise there. But I guess the question here is, with all the label expansion opportunities that you’re pursuing, how are you thinking about exclusivity runway for the product? I know there’s a lot of patents in the orange book, but what have you been assuming, I guess, internally on what kind of exclusivity runway you think you’ll have for the underlying molecule. So that’s number one. And then just going back to the sales force as you’re thinking about solriamfetol and ADHD in particular, what’s the extent to which you’re going to need further headcount, say, in the ped and adolescent psychiatry setting in the pediatrician setting? And I guess the broader question is, how do you think about leveraging the headcount you’re going to have in place with respect to solriamfetol? Thanks.

Mark Jacobson: So a lot of questions there. With regards to the label expansion and how we think about the exclusivity runway, so even with the current issue patents, we have on exclusivity running out to at least – 2040. And then in addition to that – we also have recently issued – recently allowed claims, which go out to December 2022, and those cover all of the new indications.

Nick Pizzie: That’d be December 2042 [ph].

Mark Jacobson: I’m sorry, December 2042, so that’s even longer exclusivity runway, and so that covers all of the additional indications. And then with regards to the additional headcount, one of the things that we like, and I’ll turn it over to Lori to maybe provide a little bit more color. But one of the things that we do like is the overlap. And in the operational leverage with regards to our current neuropsychiatry sales force. ADHD is treated primarily by psychiatrist so that fits in very nicely with our current sales force and sales force expansion.

Page 4 of 10