Medivation Earnings Call Nuggets: Gross to Net Conversion and the Pre-Chemo Market

Medivation, Inc. (NASDAQ:MDVN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Gross to Net Conversion

Y. Katherine Xu – William Blair & Company: I am just wondering in terms of the gross to net conversion, besides the rebates and discount, did you factor into, I’d say, the foundation money that you donated to and then could you comment on any donut hole or patients assistance problems or lung problems that you encountered? Recently, we saw at J&J, Zytiga sales coming down for the first quarter since launch, and then do you think you were encountered similar problems some time down the road?

C. Patrick Machado, J.D. – Chief Business Officer and CFO: Katherine, this is Pat, I’ll take the first part on the gross to net and I’ll Cheryl to speak to the donut hole. As I mentioned in the prepared comments, the largest components of the gross to net deduction of the various discounts that we’re required to offer at the government payors. Some of the patient assistance is included in gross to net other of that is included as an operating expense, so it’s a little bit different. Cheryl can speak to the donut hole?

Cheryl L. Cohen – Chief Commercial Officer: We’re not going to be giving guidance on the first quarter currently today, but I can’t comment that it is coming with specialty products infusion and oral to have a transition in the first quarter in a January, February timeframe. So, patients conducted those donut holes. We’re absolutely committed to ensuring that patients have access despite these challenges and we have contributed to the foundations and we have other programs in place such as co-pay for the commercial patients.