Tim Power: Thanks Adam. Can we go to the next question, please?
Operator: Sure, and that comes from Evan Seigerman with BMO Capital.
Evan Seigerman: Hi guys, thank you for taking my question. This one’s on Mirati. Krazati and the general KRAS G12C class has recently really fallen below expectations. Could you just walk me through your thinking of the opportunity for Krazati? What’s the key value driver here in the acquisition, and what could you do differently versus Mirati to accelerate growth of this asset?
Adam Lenkowsky: Yes, thanks Evan for the question. We’re very confident in Krazati’s significant commercial opportunity as we believe this is a best-in-class KRAS G12C. The real opportunity for Krazati is in the first line setting, in lung cancer, and so we have–you know, Mirati has started their Phase III study in combination with PD1. We’ll also see data around the triplet, so PD1-chemo-KRAS. I think that’s another significant advantage of Krazati, where it can combine with multiple agents, including PD1. We’ll obviously need data to understand the potential of that opportunity, but Evan, we think this could bring significantly greater upside to this opportunity. Then also, we’re very excited about the other assets that Mirati has – PRMT5, KRAS G12D, and the SOS1 inhibitor which we think also are showing very promising early efficacy.
Taken together, we do believe that this is a really exciting deal for the company and will be a strong catalyst of growth in the back end of this decade.
Tim Power: Thanks Adam. Keith, can we go to the next question, please?
Operator: Certainly, and that comes from Carter Gould with Barclays.
Carter Gould: Hi, good morning guy. On Abecma, can you help frame–you mentioned some of the headwinds, and some of those are obviously transient in nature. How should we think about how long it might take to get back to the run rate you were seeing in the first half of ’23, and I guess along those lines as well, given some of the commentary on the guidance, just your confidence in an on-time approval of KarMMA-3? Thank you.
Sarnit Hirawat: This is Sarnit. Let me just start off with the KarMMA-3 part first. As you know, we have a PDUFA date in December, and that’s all pretty much we can comment on as we continue to work with the regulatory agencies to bring it forward.
Adam Lenkowsky: Yes Carter, I’ll just expand on that just a little bit. We mentioned two things in last quarter’s earnings, remember – number one, the S12 maintenance that occurred in June would dampen Q3 sales, and we’re seeing that happen; however, we are also seeing a continued impact from additional BCMA targeted agents, so we knew this was going to be a highly competitive market, putting pressure on growth, and I talked about what we’re doing to really stabilize that business and return it to growth. Clearly, a KarMMA-3 approval would move Abecma into earlier lines of treatment and be a catalyst to return Abecma to growth by opening up a significant larger patient pool; but as Sarnit said, obviously we have to wait to see that approval come.
Tim Power: Thanks Adam. Can we go to the next question, please?
Operator: Certainly, and that comes from Andrew Baum with Citi.
Andrew Baum: Thank you. A question for Adam – many of your predecessors have been scarred trying to get off the bridge onto reimbursed plans. Are you still confident that you’re going to be able to, by the end of this year, get 60% of your CVS insured patients off the bridge onto reimbursed status?
Adam Lenkowsky: Yes Andrew, thanks for the question. Conversion is going as we expected. We are focused on pulling through the early access win for Sotyktu at CVS and shifting those patients to commercial product from bridge. As I said last time on the call, it takes about two to three months for patients to move from bridge to commercial, and we have started to see that conversion happening towards the end of Q3. We believe the majority of CVS patients will be coming out of the hub by Q4 and start to see some benefit towards the tail end of Q4 and into Q1. We’re also seeing new patients on CVS move very quickly into commercial product, so that’s also helping to accelerate performance. I talked earlier that coupled with broader formulary access in January of 2024, we’re confident that will be a strong accelerator of growth for Sotyktu in 2024 and beyond.
Tim Power: Thank you Adam. Keith, could we go to our next question, please?
Operator: Yes, and once again, please press star and then one if you would like to ask a question. The next question comes from Tim Anderson with Wolfe Research
Tim Anderson: Thank you. You gave product-specific peak sales targets out to 2030 – I think you did that for almost 10 products. Are any of those trending ahead of what those prior targets were – we’ve heard several things it sounds like where it might be trending below that, and are we going to get updated 2030 targets on that same list of products at some point? Thank you.
Chris Boerner: Tim, let me start and I’ll ask Adam to comment on how we’re seeing performance trends overall. But what I would say is, look – I would go back to how I characterized the new product portfolio at the beginning. We’ve launched nine new products over the last two and a half years, and it’s a portfolio of products, and we are seeing some products perform at or better than expected. I think when you factor in some of the early manufacturing constraints that we had, I look at a product like Breyanzi, the best-in-class profile of that product has considerable opportunity to meet or exceed expectations. Look, I think we knew the competitive dynamics around Abecma coming into this launch. I fully expect that the team is going to get that product back on track as it relates to competition from other BCMA targeted agents, but in the long run, that product will continue to be a competitive product for us.
