Dr. Terri Young: Sure. Thanks for the question, Ed. A few things that I mentioned in my prepared remarks, I would just remind everybody of the fact that we were able to launch our branded campaign, the full launch campaign on the back of a prereview that we did a preclearance with the FDA. This is very typical for launch. We were able to do that, I think, quite quickly out of the gate€”and, so launching that just this€”or sorry, last month now in October, training the representatives very quickly in getting that scaled, including a full digital campaign. And that digital presence and Nestle has a full capability around this, right, because they’re not only in pharma. They’re used to reaching consumers effectively and engaging them and HCPs as well.
We leverage that capability. So that campaign is very strong, and we’re scaling it fully. And that’s important because of the utilization that we’re seeing outside of the field representatives call list. So we want to continue to engage those physicians effectively. We are also scaling our patient campaign, and you’ll see a new patient campaign roll out imminently. Eric mentioned the IRA. So those are near-term efforts that the team is taking to really scale the outreach and engagement that we have with our key customers. The IRA, Eric mentioned, that’s a more medium-term opportunity. We expect to see the use of our income qualified free drug program drop as those IRA provisions come online in 2025 and more paid patients coming through and more demand coming through from the Medicare Part D segment.
Operator: Our next question comes from John Newman with Canaccord Genuity.
Eric Shaff: Why don’t we move forward, and we can come back to John later in the queue.
Operator: The next question comes from Tessa Romero with JPMorgan.
Tessa Romero: Can you clarify for us, for the 3 largest PBMs, what progress you’ve made? And are you able to give us a sense of cadence of the expected decisions here based on their cycles? And more broadly, where would you say payer coverage is tracking compared to your target?
Eric Shaff: Tess, good morning, and thank you for the question. Let me ask Terri to comment.
Dr. Terri Young: Sure. Tess, I’ll just reiterate once more that we’re very focused on the end outcome for patients, and we’re very, very pleased with the patient actions we’re seeing and the approval rates through patients’ insurers today and overall patient access. With respect to coverage, as I outlined, we’re seeing a mix of very little or no utilization management across health plans and PBMs to some utilization management. And you asked about expectations. This is very much as we expected. We did an enormous amount of payer engagement prior to the launch. So we’re feeling very good about the coverage that we’re getting. As you might imagine, Nestle is still in active discussions with many of these plans, including the PBMs, and we wouldn’t want to share additional details today that would disrupt those efforts in any way. But I’ll tell you, we may consider providing more granularity in the future once we have further progress on this front.
Operator: Our next question comes from Jeff Jones with Oppenheimer.
Jeff Jones: Can you give any additional granularity on how we should think about the savings breakdown that you described for 2024 in respect of R&D versus G&A spend? And then the second question is there any guidance on how we can think about a breakeven point in terms of net sales for the profit share calculation. And then of course, as you mentioned, that’s changing dynamically as your inventory calculations and accounting is changing now?
Eric Shaff: Yes, Jeff, and thank you for the question. Let me start, and then I’m going to ask David to comment further. But as it relates to the breakdown of the savings, I would say that with a 40% cut, it’s a pretty deep cut and just about all groups within the enterprise were impacted were affected and contributed to that cut. I would say it was not an across-the-board cut. We did take a disproportionate focus on, in particular areas of G&A, in areas of R&D with the idea of preserving and protecting our ability to not just support VOWST, but continue to support a growing top line. We have been incredibly pleased with what we’ve seen so far in terms of the track. And as we mentioned in our prepared remarks, actually even exceeded our expectations in terms of the launch.
