Operator: Okay. Was there a follow-up to your question?
Tazeen Ahmad: I think both were answered. Thanks.
Operator: Thank you. The next question comes from Serge Belanger with Needham & Company. Please go ahead.
Serge Belanger: Good morning. Thanks for taking my questions. Nice ORLADEYO quarter. I guess for Charlie, you mentioned two strong quarters of patient growth, exceeding the first two quarters of the launch. Can you give us just a little more color on that and maybe how it compares on a year-over-year basis? And then with the success of the reauthorization process, it sounds like we’re not going to see the usual seasonality trends, but curious how you think about your long-term target of 85% paid scripts? Is that still the target? And does that move up the timeline to hit that target? Thanks.
Charlie Gayer: Thanks, Serge. So just to clarify one thing. The last two quarters were the best two quarters since the first two quarters of launch. So the first two quarters were just slightly better. But I think what it shows is that there was no just — there’s no bolus of patients early that we got and then demand falls. Demand is actually building over time as customers gain more confidence, like I was saying in one of my previous responses. And then the 30% growth in revenue year-over-year, I think, kind of speaks for itself at this point in launch, to be growing that strongly is impressive. As far as the Q2 seasonality, as Anthony was saying, we would not expect as big a jump this year. We’re guiding to $97 million in Q2.
And we would expect that kind of, that same trend, I think, in the future, where we’re going to get more revenue in the first quarter just through more effective reauthorization processes. And then as far as the growth to 85%, that underlying improvement in the rate of paid. As I commented before, it’s going to take us some years to get there. All of these improvements that we’re making with adding to the team, getting better and better each year going through this process tells me we’re going to get there. And the bigger jump, the bigger opportunity would be next year with the IRA rolling in and hopefully, that helps us get more Medicare patients to paid therapy as the maximum out-of-pocket goes to $2,000. But the overall growth to 85% is going to be a multiyear process.
Serge Belanger: Thank you.
Operator: The next question comes from Brian Abrahams with RBC Capital Markets. Please go ahead.
Unidentified Analyst: Hi everyone. This is Nevin on for Brian. Congrats on a good quarter. I just had a couple of questions on SG&A and some of your strategic initiatives to maybe accelerate some of that. Can you speak to some of those, whether you have any sales acceleration initiatives planned to drive any increased uptake either in the US or ex-US as well with some of the expansions in some of the geographies ex-US? And then are you — in fourth quarter, you had guided towards increase in SG&A of about $20 million. Is that still the case for 2024? And could we expect the patient services team to be in place throughout the year? Or would this be something that you would add to the team seasonally as well near the end of the year, maybe add to the team to help with the [real] (ph) at the beginning?
Jon Stonehouse: Charlie, maybe just talk just talk in general about where you’re at with the build of your team and then Anthony can talk directly on some of these things.
Charlie Gayer: Sure. And I’ll also talk about some of those — the specific initiatives that Nevin asked about. So the investments we made last year were to, like I said, just to improve the efficiency and effectiveness. We would — we’re always looking to make improvements at the margin. If we see an opportunity, we’ll add a little bit. We don’t expect any major adds to our team at this point. It will just be kind of marginal additions, particularly as our patient base grows. Our patient services team will grow slightly as the patient base grows. But that’s not a seasonal growth. That’s kind of long-term investment in the team. And then we’re always looking to strengthen the brand with additional data and additional initiatives. So we’ll continue to look for those opportunities, like the real-world evidence that I described in my prepared remarks.
Anthony Doyle: In terms of where we are versus what we had talked about previously, I’d expect about a 20% increase in SG&A year-over-year. But again, most of that is broken down into kind of the full year impact for the increases that Charlie’s team did where you had partial impact last year. And then for the ex-US side, yeah, there’ll be [smaller] (ph) increases. But I would think about it far more in terms of how the team is focusing on the idea of margin accretion. So the investments that we are making, the investments that we continue to make, are going to be significantly less than the revenues that are generated as we get towards peak. And so I’m really excited to start to see that margin accretion and its role in getting us to and through profitability.
Unidentified Analyst: Got it. Thank you. Just wanted to clarify, you mentioned 20% increase year-over-year in SG&A?
Anthony Doyle: Sorry. Sorry, $20 million.
Unidentified Analyst: Okay. Thank you.
Operator: The next question comes from Liisa Bayko with Evercore ISI. Please go ahead.
Liisa Bayko: Hi, congrats on a good quarter. Just a couple of points of clarification. For your outside like OUS revenue, and you said it was about 10%, does that include the Japanese royalty or no?
Anthony Doyle: Yeah, it does include the Japanese royalty.
Liisa Bayko: Okay. And then what were gross to net in the quarter? And maybe you can comment on how they’ll evolve over the course of this year?
Anthony Doyle: Yeah. So gross to net on the reimbursed side here in the US closer to 20%. So again, historically guiding to 15% to 20%. That includes the reauthorization impact, the co-pay assistance impacts, the reset of that and then moving towards the latter part of the year, it will normalize closer into that 15% range, but it will average us out for the year in the 15% to 20%.
Liisa Bayko: Okay. And then Other revenue, does that — how much of that is Japanese revenue and how much of that is c or other stuff? Could you clarify?
Jon Stonehouse: Yeah, revenue is all RAPIVAB.
Anthony Doyle: Yeah. So $88.9 million of it is ORLADEYO and then $3.9 million is RAPIVAB. If you’re asking for a specific split of product versus other revenue, we don’t generally give that. But listen, RAPIVAB revenue for the most part is inconsequential, especially as ORLADEYO revenue’s getting to the point where it’s almost $100 million a quarter.
Liisa Bayko: Okay. But that doesn’t include Japanese revenue in that line, yes.
Charlie Gayer: The $88.9 million does include Japanese.
