Krystal Biotech, Inc. (NASDAQ:KRYS) Q3 2023 Earnings Call Transcript

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Gavin Clark-Gartner: Okay, that makes sense. And you noted 45% of the PFS are coming through for commercial patients. Are you able to disclose the commercial versus Medicaid split of patients that are on paid drug?

Krish Krishnan: That are on paid drug, I would say the percentage of commercial versus Medicaid if our estimate right now is 51% commercial or 35% Medicaid.

Gavin Clark-Gartner: Okay. Oh, go ahead.

Krish Krishnan: Yeah, and as we go into — starting October we expect a lot of the mandatory states to start covering and so we expect the Medicaid number to go up a bit.

Gavin Clark-Gartner: Yeah, that makes sense. Just a last quick clarification on LLE patients. Have all of these patients converted over to drug, just confirming this was captured in the PFS number and how much of this came through in the second quarter versus the third quarter?

Krish Krishnan: Yes, it all converted. I would say 60% in the second, 40% in the third.

Gavin Clark-Gartner: Got it, that’s very helpful. Thanks so much, and congrats again.

Krish Krishnan: Are there any other further questions?

Operator: My apologies, Robert, your line is now open with a follow-up question from Guggenheim Partners.

Robert Finke: Thank you and Krish, thanks for taking our follow up. On the comment you made about expecting it to be the same or better now that reimbursement is largely in place, does that pertain to patient start forms or conversion to reimbursement on therapy? Thank you.

Krish Krishnan: I may have said they are common in both contexts. Definitely conversion with Access. I mean, that’s a given, that’s obvious. Like if we’re not getting dinged and we’re getting reimbursed when we file, if that process is smooth definitely the conversion should be faster and better. The comment I made on start farms was the base continues to be good at the moment. And I left it open to figure out what happens over the holidays, which we have no visibility into at the moment.

Robert Finke: Appreciate it. Once again, thank you.

Operator: Thank you. We now have another follow-up question from the line of Ritu Baral with Cowen. Your line is now open.

Ritu Baral: Hi guys, thanks for taking the follow-up. Krish just going back to the rejected start forms. Can you mention like what are the most frequent reasons for that, that you’re encountering, is it formal genotyping of these patients, is it insurance coverage, is it like purely administrative paperwork sort of stuff, what is that reason? And then I have another quick follow up.

Krish Krishnan: Mostly genotyping.

Ritu Baral: Got it. And then are you seeing any early trends intend to implement by and bill from any of these centers and are you seeing like clinics at Centers of Excellence sort of adding either clinic days or availability for appointments, such that patients can come in more easily?

Krish Krishnan: Thank you. Buy and bill has been minimum. I’m searching to remember if there’s one, actually it’s probably zero. What happens at the Center of Excellence, like there is — everybody, the KOLs at Centers of Excellence, the payers, everybody would like the patient to be dosed at home. And so the only thing guiding in the case of a Center of Excellence is the first visit. I mean first visit on VYJUVEK, I mean. So they wait for a patient to come visit them, examine the patient before putting them on VYJUVEK. But once they decide to put him on VYJUVEK the actual process is not by buy and bill but sent back to the patient’s home for home dosing.

Ritu Baral: Got it. Thank you.

Operator: Thank you. That will conclude today’s conference call. Thank you for your patience and your participation. You may now disconnect your lines.

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