Neurocrine Biosciences, Inc. (NASDAQ:NBIX) Q4 2022 Earnings Call Transcript

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Kevin Gorman: Hi. What we look at is both leading and lagging indicators. And in our expansion of 2022, we hired experienced salespeople in neuroscience, both in psychiatry and in neurology. And so they come in with a lot of experience and relationships. What they don’t have is a direct experience in the TD market. And so that takes a little bit of time to learn. This kind of sales job I think is different than maybe selling an antidepressant or an antipsychotic, for example, in the sense that there’s a lot of disease education that occurs really across all these care settings. And we help our customers recognize TD, we educate them on the diagnostic criteria, we use a lot of videos to help them recognize different presentations of TD across different patient types.

And not only do they have to help our customers with the diagnostic process but certainly to appreciate the differences between treatment options and why INGREZZA is the most preferred treatment. Ultimately, we also have a fair bit of lift in terms of reimbursement support on the back end since this is a specialty product. And so what we’ve seen in the past when we’ve expanded our team is that it took a few quarters for the new salespeople to get up to the same level of proficiency as the legacy team, and we saw that this time around as well. Certainly, we believe that the expansion of our field organization contributed to the strong growth that we saw in 2022. However, we do believe that there’s still upside from that expansion that we’re going to see going forward.

Unidentified Analyst: Thank you.

Operator: We’ll take our next question from Marc Goodman with SVB Securities. Please go ahead.

Marc Goodman: Good morning. Eiry, can you talk about the epilepsy data that’s coming in the second half of the year and how you look at this product as a potential differentiator in the epilepsy market? And then, Matt, can you maybe help us just a little with expenses, just maybe anything unusual how they’ll be spread throughout the year and just update us on tax rate and how you’re thinking about that this year and the next couple of years? Thanks.

Eiry Roberts: Okay. Thanks, Marc. So the epilepsy study that we have ongoing right now in Phase 2 for our molecule 352, which is a selective Nav1.6 channel antagonist, it’s a focal onset seizure study. Focal onset seizures are the most common seizures seen across the kind of different types of epilepsy. This is an adjunctive trial in that patients are already being treated with somewhere between one and four antiepileptic agents, but still have a baseline seizure frequency that shows a lack of control from their current treatment. The endpoint for the study is the 100 patients. The endpoint is a change from baseline in the seizure frequency measured over kind of a month’s baseline period and then compared to the last month of treatment and the overall treatment period is up to 13 weeks.

In terms of the differentiation, if we think about the 352 as a selective Nav1.6 antagonist, the majority of currently available antiepileptic therapies have broad pharmacology associated with somewhat unfavorable benefit risk profile. And so the — our intent here is to understand whether antagonizing what is probably the most important of the sodium channels in epilepsy and doing that alone gives us the efficacy at a lower and appropriate dose without some of the tolerability and side effects that are seen with currently available treatments. Obviously, this is a Phase 2 study. We’re on track to read out the data in the second half of this year. And based on what we see there, we’ll be considering next steps if we’re successful.

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