{ "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": 334, "pageCount": 366, "prevPage": 333, "nextPage": 335, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses direct quotes from former territory managers to establish the 'unusual' nature of the compensation plan.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-21918ac10c17/334", "deckHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17#slide-334", "components": [ { "bbox": null, "kind": "callout", "text": "Common sense indicates that the only purpose of such a plan is to incentivize sales reps to proliferate inappropriate patient referral forms.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d1-73a9-abbe-5b536c306053", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "The key enabler of the alleged off-label scheme is a highly unusual comp plan that allegedly compensates territory managers exclusively or almost exclusively only on the number of patient referral forms faxed into Harmony’s hub - irrespective of whether they are on-label or comply with insurance requirements. In other words, reps are allegedly compensated even for enrollment forms where the patient is never approved or goes on the drug. Instead of writing a prescription on a pad, doctors or their staff fax a referral form to initiate the process of getting a patient onto Wakix. Every single former territory manager we interviewed conveyed that the plan was extremely unusual and that they have never seen anything similar. Common sense indicates that the only purpose of such a plan is to incentivize sales reps to proliferate inappropriate patient referral forms: “I’ve never seen a company in my life do that. Never. I’ve been in pharmaceuticals for 10 years...weird, right?...you look at that – this is really weird, really odd.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61ef77c7-adc8-49a2-a86b-3bd54af76474", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.86, "x": 0.07, "y": 0.75 }, "kind": "quote", "text": "Paid on patient referrals/scripts\nQ: “What did Harmony do in terms of your compensation? Were you compensated based on the number of cataplexy diagnoses you got?”\nA: “No, you're just compensated based on your scripts.” – Ex-Harmony territory manager for a large region in the southeast across two states", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "25ac00fb-3c6a-45a5-9569-b0161b2f5f67", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.45 }, "kind": "quote", "text": "Comp plan based on faxed referrals was highly unusual and “really weird, really odd”\n“You would have reps that you would hear - like some of the people that are maybe the top five people in the company - and you would hear stories as a rep, and they're just going to that office, they just sent a bunch of stuff through—I don't even care. Put it through the fax machine, and as soon as you hit send, I get credit for it. I've never seen a company in my life do that. Never. I've been in pharmaceuticals for 10 years, and I've been in other sales before that. I've never seen people just get credit as soon as it goes through the fax machine. Because normally, a company does not want to pay you until they get paid. Weird, right? You look at that—this is really weird, really odd.” – Ex-Harmony territory manager for a large Midwest state", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2e9bbaf5-ce1b-41c1-a22e-73ff1c6645bb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I’ve never seen a company in my life do that. Never. I’ve been in pharmaceuticals for 10 years...weird, right?...you look at that and – this is really weird, really odd.” — Ex-Harmony territory manager for a large Midwest state", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d1-73a9-abbe-5c83ba50a2aa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "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": "bf92b2dd-ff67-481a-a159-327ed3afb64d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "62180fb2-54ef-4d62-9a4a-bfd6daab0352", "evidence": "Uses expert testimony to contradict standard industry compensation practices.", "confidence": 0.8 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }