Michael Weiss: Yes. I’ll take a first crack. And Sean, jump in. But yes, I mean, I think we’re well on track to – we said approximately $250 million in OpEx. It gives us a little wiggle room there. But if you look at even the first quarter, we had $58 million and change, and we had $8 million and change, which was the onetime to Precision. So the base OpEx is still only around $50 million for the quarter. So you multiply that times four, you’re still well under the $250. That gives us room to grow, and we are growing. Like I said in my prepared remarks, we’re strategically adding to our team, and we’re continuing to spend money on patient awareness programs. But I think, from where we sit today, we’re in pretty good shape. Sean, any more details there?
Sean Power: No. I think you’ve covered it pretty well, Mike.
Roger Song: Great. Thank you.
Operator: Our next question comes from the line of Matt Kaplan with Ladenburg Thalmann. Please proceed with your question.
Matthew Kaplan: Hey, good morning, guys. Congrats on the quarter. So maybe for Adam. In terms of new patient starts, can you give us a little bit more detail in terms of where they’re coming from in terms of naive, switch and the background that you’re getting these new patients from?
Adam Waldman: Yes. Thanks, Matt. Good morning. So I would say we have not given out specific percentages of the patient and how it exactly breaks out. What we said is the biggest group is patients switching from non-CD20s, but we also have good representation from treatment-naive patients as well as patients that are switching from CD20s, like OCREVUS or KESIMPTA. So we’re getting – encouragingly, we think we’re getting a nice diverse group of patients and, importantly, staying consistent quarter-to-quarter. There’s no – there wasn’t any sort of big boluses of a certain patient group that sort of diffused over time. So we’re seeing consistently representation from all three of those groups.
Matthew Kaplan: Okay. That’s helpful. Thanks. And then, I guess, in terms of the subcutaneous opportunity for the Briumvi formulation. I guess, recently on the Roche call, they said they see the subcutaneous opportunity as more than $2 billion. I guess, question is with your potential differentiated profile, what’s your assessment of the subcu opportunity?
Michael Weiss: Yes. I’ll speak broadly, and I’ll let Adam chime in. I mean, look, the folks at Novartis have done a really nice job of carving out a subcu market. They’ve created it. And I think, as Roche probably mentioned, Novartis is probably over $2 billion and growing today. So there’s a nice market there. And yes, I mean, our goal is to come into that market with a very competitive profile product. As we’ve said previously, we understand the parameters. We’ve got, on the one hand, a relatively elegant auto-injector once a month, and we’ve got a relatively bulky product every six months. Somewhere in the middle, we think it is an optimal product design, and we’re going to try to get there. So I think from just where we sit today, we’re seeing opportunity, and we’re going to take our best crack at it. Adam?
Adam Waldman: Nothing else to really add there, Mike.
Michael Weiss: All right. Sorry about that.
Matthew Kaplan: All right. Thanks for taking the question guys.
Michael Weiss: Thank you.
Operator: Our next question comes from the line of Mayank Mamtani with B. Riley Securities. Please proceed with your question.
Mayank Mamtani: Good morning, team. Congrats on a strong quarter. And thanks for taking our questions. Sorry, Adam, if I missed this. Did you say the revenue split up between new patient starts and maintenance patients? And I was also curious to hear from you how you think that stacking up effect in second half, how we should expect that revenue split to be. And if you can also comment on some other metrics you’ve provided before, free drug percentage, gross to net. Anything on that would be helpful as we think about the full year modeling. And then I have a couple of follow-ups?
Adam Waldman: Yes. We didn’t share – you didn’t miss it. We didn’t share any specifics on new versus continuing patients from a revenue perspective. We do continue to feel that this is a market where duration is a big driver of revenue, and there will be a pancaking effect that will – as time goes on, patients will – this is a very sticky – the duration is really good. Patients are on drug an average of five years. So you will see that pancaking effect over time. So that’s the best that I have for that question. I think your other question was free drug. As I said before, we did expect free drug rates to come down. We are seeing free drug rates come down. I think in the first quarter, we’re about 12% is our – right now, I think it was about 12%.
From earlier in 2023, we’re about 20%. So 12% in the quarter. And then from a gross to net standpoint, I think what we said previously is our gross to net is approximately 75%, will go up and down from quarter-to-quarter. But 75% is probably a good number to use for the remainder of 2024.
Mayank Mamtani: Thank you. That’s helpful. And then in your updated guidance for full-year, I was just curious to learn how are you thinking about that year-end exit market share. Again, like I don’t know if you think of the market as total NRx percentage, which, Mike, I think you provided. You’re tracking at that 10%. But obviously curious to hear how you think about that market share in terms of either total RMS patients or within the anti-CD20 drug class patient. Could you just give us some color on how – what that $280 million midpoint assumes in terms of market share?
Adam Waldman: Yes. Mayank, I’m probably not going to get into any specifics. I mean, our goal here is to increase the depth of the use and the breadth of the use and continue to add new prescribers. We see continued opportunity for growth. We feel very confident in the trajectory. We feel very confident in the demand trends that we’re seeing. And we’re going to continue to focus on growing the usage of Briumvi across the market, and we’re doing a great job of it. And based on our guidance here, we feel – obviously, we feel very confident and continued growth going forward.
Mayank Mamtani: Okay. Go ahead.
Michael Weiss: Yes. I’m just going to chime in on the first question you asked about the revenue split, new versus old. I know we’re not providing actual numbers, but I think it’s worth just to mention that in the early years, we’re going to be driven by the new starts. In the later years, we will be driven by the ongoing or stacking patients. So if you look at probably our competitive IV CD20s has been on the market for a long time, the vast majority of their sales are going to be based on continuing patients, not on new patients in any particular quarter, where as I’d say, we’re probably the opposite still, right? We’re still reliant on our new starts. But over time, the continuing patients sort of take the commanding role in how the revenue stack up.
