{ "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": 336, "pageCount": 366, "prevPage": 335, "nextPage": 337, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A transcript format to highlight the 'weird' nature of the compensation process at Harmony.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-21918ac10c17/336", "deckHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17#slide-336", "components": [ { "bbox": null, "kind": "callout", "text": "Territory managers emphasized how aberrant the comp plan is – \"different than any place that I’ve ever worked in my career...it’s kind of weird.\"", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d1-73a9-abbe-b85c039ac170", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.86, "x": 0.07, "y": 0.34 }, "kind": "paragraph", "text": "“Weird” comp plan based on faxes into the hub even if scrip never gets filled; reps indicate they have never seen that kind of comp plan before; rep gets paid “even if no chance in hell that hose are getting filled” or shipped to a patient", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0d7708a9-f9ec-4835-adae-e1b6e8b03944", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.48, "w": 0.86, "x": 0.07, "y": 0.41 }, "kind": "paragraph", "text": "A: “You don’t get credit for the refills. You don’t really see that number.”\nQ: “So, what did you make of that?”\nA: “That’s a little weird. The whole sales process there is a little weird because you get credit when the fax goes through the fax machine. Have you been told that before?\nQ: “No.”\nA: “So, you get credit—this is different than any place that I’ve ever worked in my career. And if you ask somebody at Harmony. it sounded like from talking with everybody that, again, it’s kind of weird. So, if you put a fax through the fax machine, and it goes over, and it goes to this hub, and there are three different hubs that they can go to. First of all, it goes to Harmony’s hub. Harmony takes that prescription, they’ll look at it, and they say okay, where do we go to get the script covered? Then Harmony would scrub that prescription, which came in via the fax, and they would take it and send it to whatever specialty pharmacy of those three that they thought had the best chance of covering that medication and to get it for that office and the patient. Once that prescription goes through the fax machine, the rep gets credit for the script. Normally the way that it works is the rep doesn’t get credit for the script until it ships out to the patient, meaning now that medication can be charged and the insurance company has to pay for the medication because it’s been shipped. So now, I’m giving credit to the rep because it’s been shipped. That isn’t how they do it. They give credit when it goes into that specialty hub. That was a little weird. And so, if you had an office that just faxed five in for you and none of those five got filled, that sales rep gets credit for it, even though none of those five got filled. There could have been no chance in hell that those are getting filled, but the rep just got credit for it just because it went through the fax machine, even though those never shipped. So, the whole process is weird.” – Ex-Harmony territory manager for a large Midwest state", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ca3954ef-db4e-4fa3-a84b-2394abcd23be", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"So, you get credit—this is different than any place that I’ve ever worked in my career. And if you ask somebody at Harmony. it sounded like from talking with everybody that, again, it’s kind of weird. So, if you put a fax through the fax machine, and it goes over, and it goes to this hub... Once that prescription goes through the fax machine, the rep gets credit for the script. Normally the way that it works is the rep doesn't get credit for the script until it ships out to the patient... That isn't how they do it. They give credit when it goes into that specialty hub. That was a little weird.\" — 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-bf6ed8b08177", "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": "e3ab3bc2-38a3-4289-8d6f-c2fc6ba61add", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "Territory managers emphasized how aberrant the comp plan is – “different than any place that I’ve ever worked in my career…it’s kind of weird.” One explained that the second a prescription goes across a fax machine at the hub, the rep gets credit for it: “so, if you had an office that just faxed five in for you and none of them got filled, that sales rep gets credit for it, even though none of those five got filled. There could have been no chance in hell that those are getting filled, but the rep just got credit for it just because it went through the fax machine, even though those never shipped. So, the whole process is weird.”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b28220b-a198-4b64-bb09-837481d879b2", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }