Horizon Pharma, Inc. (HZNP) Q2 2012 Earnings Conference Call August 10, 2012, 08:00 a.m. ET Executives Robert De Vaere - EVP and CFO Tim Walbert - Chairman, President and CEO Todd Smith - EVP and CCO Analysts Annabel Samimy - Stifel Nicolaus Charles Duncan - JMP Securities Edward Nash - Cowen and Company Presentation Operator
I will now turn the call over to Tim.Tim Walbert Thanks Bob. Good morning everyone and thank you for joining the call to discuss our second quarter 2012 results. I will begin this quarter’s conference call by discussing our results and the progress of our ongoing commercial launch of DUEXIS in the United States. And also I will discuss the recent U.S. FDA approval of RAYOS, where we are extremely pleased with the broad indications we received and the inclusion of rheumatoid arthritis data in the approved product prescribing information. First, results we present today for DUEXIS show continued progress in prescription demand. We reported increase for DUEXIS of 91% gross revenues compared to the first quarter of 2012. We also reported an increase in total prescriptions for DUEXIS of 81% versus the first quarter of 2012. Bob will provide you more detail on DUEXIS revenue later on in this call. To further our focus to driving sales growth to DUEXIS in the U.S. we are now focused on finalizing the expansion of our initial 80 person sales force to 150 sales representatives. In addition, we recently announced the co-promotion agreement with Mallinckrodt which is a pharmaceutical business of Covidien. We believe Mallinckrodt expertise in the distribution of pain therapeutic along with their experienced sales force in the osteoarthritis and rheumatoid arthritis market is well suited to successfully help us market DUEXIS to their exclusive target. Our sales force expansion along with this co-promotion will enable us to significantly expand our reach and frequency against key high value prescribing physicians to treat patients with osteoarthritis and rheumatoid arthritis. We believe the combination of our additional Horizon sales representatives along with the substantial promotional efforts of Mallinckrodt will increase our [call on] position target to five-fold from 10,000 physicians to 50,000 physicians beginning in the fourth quarter. Todd Smith will comment further on this in his remarks.
At this point I’d like to turn the call over to Todd who will discuss our commercial highlights for this quarter.Todd Smith Thank you, Tim. Good morning everyone and thank you for joining us today. It's a pleasure to discuss with you our second quarter 2012 commercial performance. From Wolters Kluwer market data we know that there were approximately 97.7 million (inaudible) scripts written in 2011 with approximately 31 million of those scripts written for ibuprofen for more than 30%. Further this demand for ibuprofen other generic NSAID has created an increased risk in NSAID cause GI toxicity with over 85% patients not being protected, thereby creating a substantial opportunity for DUEXIS to address unmet medical need for osteoarthritis and rheumatoid arthritis patients. We also know that the NSAID market is a promotional and sample sensitive market and as Tim indicated earlier on the call, our strategy with the combined Horizon and Mallinckrodt sales force is to increase our called on target physicians from 10,000 to 50,000 high prescribing physicians. The Horizon and Mallinckrodt sales effort was designed to be complimentary with no overlap among the two sales teams. Our sales efforts that will target 25,000 high prescribers that will continue with the relationship they have already established with physician, while Mallinckrodt sales specialist will focus on an additional 25,000 high value prescribers. As a combined effort this breaks down to approximately 40,000 partner and care physician, 4,000 rheumatologists and 6,000 additional physicians such as orthopedic surgeons. Read the rest of this transcript for free on seekingalpha.com