Operator: We will take our next question from Ash Verma with UBS. Your line is open.
Ash Verma: Hi. Thanks for taking my question. I wanted to ask about IRA implementation. So what are you assuming with respect to how commercial channel may respond to Medicare negotiating the price down? And do you have conviction that your commercial pricing is insulated in a post-IRA implementation environment? Thanks.
Kevin Gorman: So I’ve said all along that IRA is going to be a moving target, but we’re going to carefully monitor what is happening, especially as this September starts with the first group of companies that are going to be listed for negotiation. I’d say for Neurocrine, while it impacts the entire industry, we get protected for quite a while here because of both of the provisions for small biotech companies. The first one, the specified small manufacturer phase-in for the new Part D program, that’s going to be a discount that is phased in for us over a 7-year period of time starting in 2025. That’s a real nice advantage for us actually because we’re going to be – if as written, we should be having lower payments to Medicare than what we currently shoulder in the current Part D.
We also expect to qualify for the small biotech exemption, and that delays the potential for negotiation or the impact of negotiation into 2029 and it’s phased in over 2029 to 2031. So while we’re going to be following this quite closely, and as I’ve said before, I’m certain there will be changes, just don’t – can’t predict exactly what the changes will be with IRA. We monitor it, and we take it into consideration as we move our business forward.
Operator: And we will take our next question from Yatin Suneja with Guggenheim. Your line is open.
Yatin Suneja: Thank you. Just a quick question on the revenue per script. Could you maybe just comment on how it trended from Q1 to Q2? How should we think about Q3, Q4 and maybe where you expect to end? And then in terms of the guidance, the Chorea is not included at what time point you might start incorporating that in the guidance? Thanks.
Matt Abernethy: Yes. On the guidance for HD front, yes, it’s not incorporated, but we don’t expect it to be too material this year. So I would expect it to be incorporated as we think about 2024. From a net revenue per script perspective, as is typical, we had a few percentage improvement from Q1 to Q2. And as you’ve seen historically, you see it fairly consistent from here. So nothing that I’d flag other than that we do expect net revenue per script to be around $5,600 this year, and access to remain very good. So I think is always consistent there. One other comment that we’ve not been asked about is our profit profile during the quarter. We had strong profit, but I do want to comment that we did have a nonrecurring, noncash stock-based compensation charge that impacted our GAAP earnings.
But from a non-GAAP perspective, we had very strong profit. And I figured when you continue to look into the financials, you can see that is showing up in the stock-based compensation. We didn’t increase GAAP operating expenses, but we actually did reduce our non-GAAP operating expenses. So profit profile for the company remains very strong, and we’re seeing nice operating leverage in our business. So I wanted to chime in there since I’ve not been asked the financial question and was feeling a bit left out. So thank you.
Operator: We will take our next question from Ami Fadia with Needham. Your line is open.
Unidentified Analyst: Hi, good morning. This is Eason on for Ami. Congrats on the quarter and thanks for taking our question. Last quarter, you mentioned kind of a big delta in telemedicine utilization between neurology and psychiatry. How do you kind of think about this utilization evolving over the next year or two and the impact this could have on the INGREZZA growth trend? Thank you.
