Incyte's Management Present At Barclays Capital 2012 Global Healthcare Conference (Transcript)

Incyte Corporation ( INCY)

Barclays Capital 2012 Global Healthcare Conference Transcript

March 13, 2012 2:00 PM ET

Executives

Pat Andrews – Chief Commercial Officer

David Hastings – Chief Financial Officer

Analysts

Ying Huang – Barclays Capital

Presentation

Ying Huang – Barclays Capital

Okay. Good afternoon. My name is Ying Huang and I’m the U.S. Biotech Analyst at Barclays. Thank you for joining us. And we’ll kick off with Incyte Pharmaceuticals. So it’s my pleasure to introduce the Pat Andrews, the Chief Commercial Officer from Incyte, as well as David Hastings, Chief Financial Officer of Incyte. And we have decided to use the so called fire side chat format. So it’s going to be Q&A webcast.

So let me start the question with you, Pat. Can you provide an update on the insurance coverage for Jakafi to date?

Pat Andrews

Sure. So, after launch for about 90 to 180 days, insurance claims are usually processed as exceptions and that’s the period of time that we’re still in. They’re just starting to make formulary decision. So you can’t always read into what’s happening during the exception phase, as what will happen once the decisions have been made about formulary, but I will make a couple of observations on the timeframe.

First, scripts have been going through. They’ve been going through either very rapidly because there’s been no restrictions on the product from that payer or they’ve had some prior off which require us getting some additional information from the payer and then resubmitting that and getting the prior off approved. And then, shortly, thereafter the drug will be dispensed. So that’s really the way it’s been going. It’s been very clean, just with mixed timing depending on the patient’s insurance coverage and financial position.

We anticipate that once the formulary decisions have been made that it will be -- for Medicare the drug will be covered under the Standard Benefit Design and for commercial, the drug will be covered it just depends on what tier it’s on and what level of restrictions it has, but we are optimistic that the coverage will be pretty good and if the first 90 days is reflective of the later stage, then like 80% or so of commercial scripts will be $100 co-pay or less.

Ying Huang – Barclays Capital

And then you touched upon prior off. So based on data you have seen so far, what is the percentage of patients that would have to go through the prior off process?

Pat Andrews

So in the last few months, it’s been about half, a half.

Ying Huang – Barclays Capital

And then, can you tell us a bit about your Patient Assistance Program here and also what is the percentage of Jakafi patients that are using your program?

Pat Andrews

Sure. So the Patient Assistance Program, we believe is very robust. We benchmarked it against other programs from other companies and chose criteria that we thought made it likely that if you would prescribed the drug, you would be able to get the drug either through free drug or co-pay assistance from Incyte.

And, of course, we’re only allowed to help commercial patients, Medicare patients, industry is not allowed to help directly, they have to be sent -- they have to find other means of which the most common is a foundation or multiple foundations, which are set up specifically to help Medicare patients make it through, the donut hole or other financial barriers that they may have to treatment. And those are independent organizations from us, so while we have contributed funds to them, I’m not conversant really with how that is going except my understanding is it is going well.

On the commercial side, we projected that there will be a wide range of use of our Patient Assistance Program. It might average about $2,000 per commercial patient but in many cases it would be very light, $25, $50 additional support.

In other cases, it might be a couple thousand dollars support and it really all depends whether that patient was covered under a flat fee or co-insurance. And that is what we’ve seen, and I would say usage so far has been maybe slightly lighter than anticipated, but I don’t really read anything into that right at the moment.

Ying Huang – Barclays Capital

Okay. What is the split between academic versus community settings for the Jakafi scripts that’s been written so far?

Pat Andrews

So we expect longer term that about 75% to 80% of the script will come from community hematologists, oncologists and the rest will come from academic. And we’re running slightly below that at the moment but not inconsistent with that.

And the reason, I believe we’re running below is, because we’re more likely to have academic institutions participate in our Phase III program, so they would have already been familiar with the drug. And while the majority of all patients who are in the community, the small number of academic size which do specialize in myelofibrosis and myeloproliferative neoplasms, do have more patients per doc. So they may have put on multiple patients right at the beginning because they were very comfortable with it.

While in the community, we have to work to get that physician comfortable with the drug and the patient, and the treatment paradigm, and side effects, and how you manage them, and seeing the response and getting excited by the response the patient has on the drug. So it’s just a slightly longer process and most community oncs who have prescribed Jakafi for a patient have prescribed it only for one patient at this time.

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