{ "docId": "019dd923-622c-750b-8b9a-21918ac10c17", "docSlug": "f3db2294dcf9", "documentTitle": "Harmony Biosciences (HRMY)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2023-03-28 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 28, "pageCount": 366, "prevPage": 27, "nextPage": 29, "slideType": "villain_critique", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses direct quotes from medical professionals to undermine the competitive advantage of the subject drug (Wakix).", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-21918ac10c17/28", "deckHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17#slide-28", "components": [ { "bbox": null, "kind": "callout", "text": "Unfortunately for Harmony, every single physician we interviewed indicated there is no value proposition to Wakix being non-controlled", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d0-7099-9cca-de5c74d8986d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.38, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The DEA classifies drugs from schedule 1 to 5: doctors prescribing have to register with the DEA, and they can only prescribe for 1-6 months at a time, depending on its scheduling. Modafinil is schedule 4, which means a physician can write a 6 month supply – making Wakix's value proposition dubious – and even amphetamine-based stimulants can be prescribed for a 90-days. Unfortunately for Harmony, every single physician we interviewed indicated there is no value proposition to Wakix being non-controlled: 1) prescribers are already registered to write controlled substances; 2) they still have to write periodic refills for Wakix patients as it's a third or fourth line drug, almost never used as a monotherapy, and other drugs in the cocktail are controlled. And of course, as it's only a Hail Mary add-on to scheduled drugs, it's not displacing and reducing the use of any controlled substance. We preview color from a later section:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4affd3f-323e-40c5-af94-bc0d783bbd74", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.86, "x": 0.07, "y": 0.47 }, "kind": "quote", "text": "\"Absolutely no benefit from it\"; \"it doesn't matter\"\n\"I don't think there's any big deal because, for me, I've still got to prescribe medicine, so I see absolutely no benefit from it... you have to prescribe something anyway; it's just a couple of clicks. So, I don't know what the big deal is...so, Wakix is less scheduled, but it doesn't matter.\" – Neurologist, sleep specialist, and professor at leading West Coast institution", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20cf9080-2e17-4611-bea5-75ee1a0b8ebc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.86, "x": 0.07, "y": 0.62 }, "kind": "quote", "text": "\"I don't see\" any value from it\n\"I prescribe a lot of scheduled—like whether it's Adderall or modafinil or like all of these. It's a little bit of a hassle because you do have to plug in an extra code when you write these controlled substances, but at the same time, as a doctor, you want to give a medication that works because then, I mean, first of all, it's about the patient. You want to improve their health. You want to improve their condition. And second of all, if you're a doctor prescribing medications that don't even work, I mean, what type of value is there? What kind of value is there? I don't see it.\" – Sleep physician in great Los Angeles area", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "45219621-9a79-40f0-880c-c3092e0ecf64", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.86, "x": 0.07, "y": 0.79 }, "kind": "quote", "text": "\"It's not that big a deal\"; scheduled substances can still be prescribed for up to 6 months at a time\n\"Schedule 3 and Schedule 4 can both be written with refills going as much as 6 months. My Xywav prescriptions, I have to refill twice a year, the same thing with modafinil. So, it's not nearly as onerous as Adderall, where you have to write a new script every month...Schedule 2s are more annoying. Three and 4 are the same, honestly. It's not that big a deal... most patients I treat with narcolepsy are going to be a 2 or 3-agent regimen, and those are going to involve things that are at least Schedule 4.\" – Physician and medical advisor to Harmony", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e9c29a22-a98a-4eef-9956-bfa419ce21ac", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I don't think there's any big deal because, for me, I've still got to prescribe medicine, so I see absolutely no benefit from it... you have to prescribe something anyway; it's just a couple of clicks. So, I don't know what the big deal is...so, Wakix is less scheduled, but it doesn't matter.” — Neurologist, sleep specialist, and professor at leading West Coast institution", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d0-7099-9cca-e26d5f8bdbf9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.96 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "84a74f21-d4d2-452d-9547-f180680b632a", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 30, "from": 11, "beatId": "d0905c6f-1d0c-46ed-96fd-5548f20fae57", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Monster", "beatSlug": null, "evidence": "The document presents the 'monster' of the company's troubled drug and financial reporting", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 30, "from": 20, "name": "Aha Moment", "slug": "03-aha-moment", "bestFor": "Data-heavy sections, research findings, analytical arguments", "matchId": "b545ff30-50fa-4d68-abe5-bb3c4c439c61", "evidence": "The document presents a series of testimonials and data that build a case against the company", "position": 0, "objective": "To reveal the truth about the company's troubled drug and financial reporting", "structure": "The Problem/Question -> What the Data Shows -> The Insight", "confidence": 0.8, "description": "Establish a tension, present data, then deliver the insight that changes everything" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }