Cadence Pharmaceuticals, Inc. (CADX)

2012 Wedbush PACGROW Life Sciences Management Access Conference

August 14, 2012 1:20 PM EST


Scott Byrd – SVP and Chief Commercial Officer


Richard Lau

Hey guys, I guess we’ll get started here. I am Richard Lau with Wedbush. Introducing today Cadence Pharmaceuticals who launched their drug OFIRMEV about a year and a half ago and on the dollar basis, it’s actually one of the more successful hospital-based launches in recent memory. Here today presenting is Scott Byrd.

Scott Byrd

Good afternoon. I’ll just make one slight adjustment to the introduction. I would say, even on a dollar basis, this is one of the most successful recent hospital product launches and I actually support that with my slides, Richard and we can talk about it as we go. Before I get started certainly refer to our SEC documents for more information about forward -looking statements that I will be making in the course of the presentation.

It has been an exciting time for Cadence this last year and a half. We are hospital focused specialty pharmaceutical company. We have, as you heard, launched our first product OFIRMEV, which is IV acetaminophen. It is a differentiated analgesic. It is a new class in and out of itself for IV pain medications as a non-opioid and non-inside analgesic.

It is designed to be used as the foundation for a multi-modal approach to pain management in the hospital setting and we’ve had really, really nice uptake, not only on the hospital formulary adoption, but the physician feedback and the clinical experience has been really outstanding. We’ll share some of those details in a moment.

The very solid revenue growth from my introduction and we continue to see increasing adoption, not only to the basis of adding new customers quarter-on-quarter, but those customers ordering both more frequently and ordering in larger quantities, serving to accelerating our sales to the first half of this year.

We do have an experienced management team and an experienced commercial organization, particularly our field sales organization. We designed the organization around the hospital settings, which means we hire representatives in our commercial team with deep hospital experience which is required to manage the complexities of launching new hospital products and the decision making patterns within those. And we’ll talk a little bit about that adoption process as we go through the launch story for OFIRMEV. Just a little bit of background on OFIRMEV. It’s a proprietary IV acetaminophen formulation. It is the first and only IV formulation for acetaminophen despite the molecule that has been commercialized since the mid ‘50’s around the world. It was only recently that it was made available on IV formulation and brought to the US market in January of last year.

It is in fact the same formulation as has been used in Europe since 2002. That product was launched under the brand name Perfalgan and marketed by Bristol-Myers Squibb. We have quite a nice indication as broad and that it is indicated for the treatment of mild to moderate pain and moderate severe pain with adjunctive opioids that might seem a little bit like motherhood and apple pie to many folks, but to those of us who are responsible for promoting it, this is very, very important language that’s used – it’s used in other words or indicated for the use as a model therapy or a single agent for mild to moderate pain and used as the base line analgesic for moderate to severe pain adding a adjunctive opioids on as necessary to control pain.

It is also indicated for the treatment of fever and importantly indicated for not only adults but children aged two and older. Our message is just simple, significant pain relief, reduced opioid consumption and improved patient satisfaction. I think that one of the things that has been great about having the established history of acetaminophen over the last now 60 years is the safety profile for the molecules. It’s incredibly well established. It is the most highly used pain medication around the world. Therefore the experience space is quite deep for physicians and patients alike. They know what to expect from a safety profile. I think what they are learning now with the launch of OFIRMEV is that they can have new and higher expectations for an efficacy profile that heretofore they could not get with the oral and rectal formulations.

So we had approval on November 2010. Our initial focus was on gaining formulary access. Unlike in the retail setting, we have a formulary decision making process and the gate keepers that sit underneath the same roof as those that are actually responsible for administering the product and taking the product. And therefore the formulary process while always important for launching a new pharmaceutical, is absolutely essential for launching a product into the hospital space. In fact if representatives aren’t already selling other products into the hospital they more frequently than not are not allowed to leave the doors of the hospital until the products on formulary.

So our first focus was on driving formulary access. We’ve been quite successful in that regard. From there then it is about getting access for physicians to use the product after the formal formulary decision has been made, and then ultimately driving sales and pull-through. That’s done through a three-state launch and adoption process. I spoke of creating access. I think traditionally we think of creating access as that formulary decision that’s made and that is in fact the first step in the process. It’s the paper step. It is the most formal step and very, very important. However, there are a number of steps after that formal decision is made by the committee within the hospital that take the product from yes, it is now officially on the products, on the hospital’s formulary to it is available and ready to use for physicians.

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