Incyte Corporation (NASDAQ:INCY) Q4 2022 Earnings Call Transcript

Christiana Stamoulis : So free drug is not included in the calculation of revenues and it’s not a part of the gross to net. So you need to look at paid demand and apply the net price, which would be the 2,000 — around 2,000 gross price times the 1 minus 57% gross net discount.

Eva Privitera : Okay. And are you still comfortable with the 40% to 50% long-term guidance range? It sounds like in the near term it will be closer to 50%. Can you possibly narrow that guidance now?

Christiana Stamoulis : Yes. So we’ll continue to work on bringing down the co-pay, which over time, would continue to improve gross to net. Obviously, getting further improvements now is more difficult. That’s why we are saying for 2023, a 50% average gross to net is a good assumption for the year.

Eva Privitera : And another question on ALK. So ALK2 has the potential applications into other anemias outside of myelofibrosis. Are you interested in some of these applications? And what do you need to see from the MF program in order to open up some of these other studies perhaps?

Steven Stein : Thank you. It’s a good question. Mechanistically, as I was saying in my earlier remarks, it works through hepcidin inhibition, that is the main mediator, if you will, of anemia, of inflammation and chronic inflammation, which occurs in many chronic conditions. So there’s potential across the board in some of those conditions including chronic renal failure. So we’re starting some early work in some of these settings to see if there’s potential there. We are encouraged by recent regulatory movement in the U.S. from the FDA in improving products to treat anemia in areas like chronic renal failure, which has been difficult in the past. So that may make us look a little further. But for all those indications and the look there, it’s still very early days.

Operator: The next question is coming from Evan Seigerman from BMO Capital Markets.

Evan Seigerman : Thanks so much for taking my question and congrats on the progress. It’s clear that there are really no supply issues for Opzelura, but maybe talk to me about kind of what the sales team is focusing on this year to accelerate growth even further? I mean, you had a good 2022. You are getting gross to net more normalized. What is your commercial organization focused on to get sales to the next level and ensure that you have the highest number of paid scripts over the year?

Barry Flannelly : Sure, Evan. So the sales team is actively engaged with their dermatologists on a regular basis. Fortunately, we have very good access as compared to some other therapeutic areas, perhaps. They’re focused both on AD and vitiligo. It’s exciting that vitiligo launched just a short period of time ago. So that’s very exciting because it’s the only drug used that’s available for repigmentation in these patients, but there’s so many millions of patients that actually could be — could benefit from Opzelura for atopic dermatitis. So they’re really focused on both. So their drive is to focus on itch and inflammation in AD and obviously, on sticking with Opzelura to treat their vitiligo. So they’re concentrating on educating healthcare professionals, for example, in vitiligo that what they should see over a period of time, over eight weeks, 12 weeks, 24 weeks and so forth, so that they reinforce the compliance and the need to use the drug for a while before they see a real big impact on repigmentation.