{ "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": 330, "pageCount": 366, "prevPage": 329, "nextPage": 331, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "Includes a Q&A transcript excerpt highlighting the 'buddy' system used to submit fake referrals.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-21918ac10c17/330", "deckHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17#slide-330", "components": [ { "bbox": { "h": 0.04, "w": 0.86, "x": 0.07, "y": 0.46 }, "kind": "callout", "text": "Reps allegedly colluding with doctors they're close to proliferate fake referral forms, per the alleged comp plan", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "760f4920-6092-4ea2-b962-ffcb1b3bdf71", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We presume this has the obvious and intended effect: reps proliferate bogus referral forms, particularly the top performers, according to ex-employees, with one stating a current territory manager \"just [told] me yesterday that...he still does it\": \"if you had a buddy, a doctor and say, hey listen, submit the form and then just ghost them...just submit the form and don't even worry about...the insurance information...I'll get paid for it...some representatives did that frequently.\"", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d1-73a9-abbe-476ce0daf435", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.19 }, "kind": "paragraph", "text": "As we shall detail, Harmony allegedly employs an unusual salesforce compensation plan as the key to its scheme – reps allegedly get paid for any patient referral forms faxed into the hub, even if they get rejected or the patient is never approved or goes on the drug. We presume this has the obvious and intended effect: reps proliferate bogus referral forms, particularly the top performers, according to ex-employees, with one stating a current territory manager \"just [told] me yesterday that...he still does it\": \"if you had a buddy, a doctor and say, hey listen, submit the form and then just ghost them...just submit the form and don't even worry about...the insurance information...I'll get paid for it...some representatives did that frequently.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bbcf3fbb-124c-4352-84f7-b8876a6bb979", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.86, "x": 0.07, "y": 0.51 }, "kind": "quote", "text": "A: \"There were also some reps that, since we were paid only, pretty much only on driving those referrals in, if you had a buddy, a doctor and say, hey listen, submit the form and then just ghost them. Don't even worry about it. Just submit the form and don't even worry about filling out the insurance information. I'll get paid for it and then tell them that the patient changed their mind, or you changed their mind, or you went in another direction, or whatever. I guess that there are some representatives that did that frequently. Really, that was my motivation to see those refill links because I wanted to know how this one representative in Columbus, Ohio—my goal was 20, and she was putting up 50, 60 a quarter, every quarter. I'm like, I wonder how many of those patients are really on drug, and how many were just \"fill out the form and don't worry about it.\" I know it goes on. I had a representative just yesterday tell me that, yeah, he still does it.\"\nQ: \"Still does what? That he's just submitting scripts he knows aren't going to get approved?\"\nA: \"Yeah. You have somebody who's a good friend of yours—because you're really asking a lot to do that. You're asking a doctor to pretty much go against a lot of what he was trained upon. That's not appropriate. So, he better be even more than a guy you have beers with. He better be your buddy. And you can ask him and say, hey, just submit it, and I get credit and then forget about it. I know it goes on, but I don't know what degree. I suspect that some of the very successful reps quarter over quarter over quarter with no downturn because it's cyclic, it is, it's a rare disease, and it becomes cyclical, you're not going to hit your number every single quarter. You're certainly not going to blow your number out every quarter, and there are a handful of representatives at Harmony that continually do quarter after quarter. I suspect that was part of their plan, part of the process, but I don't know that for a fact.\" – Ex-Harmony territory manager for an eastern state", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a01700f4-65b2-4bce-a5d2-ef92d18cc45d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"There were also some reps that, since we were paid only, pretty much only on driving those referrals in, if you had a buddy, a doctor and say, hey listen, submit the form and then just ghost them. Don't even worry about it. Just submit the form and don't even worry about filling out the insurance information. I'll get paid for it and then tell them that the patient changed their mind, or you changed their mind, or you went in another direction, or whatever. I guess that there are some representatives that did that frequently.\" — Ex-Harmony territory manager for an eastern state", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d1-73a9-abbe-49b5d91d7e86", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0d1cabc0-c838-43c0-b155-e63a50774f22", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "Ex-employees alleged collusion between territory managers and physicians to send in patient referral forms that were off-label or didn't meet reimbursement criteria.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7d2775a0-4f0e-4cdf-85e6-9e9c39507442", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }