Akili (AKLI) 11 May 232023 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Akili Inc.

First Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded on May 11, 2023. I will now turn the call over to Julie DiCarlo, Senior Vice President of Communications. Please go ahead.

you for us XXXX. the thank Earnings for and Call Conference first afternoon, for today joining Akili's Good quarter of is Chief our I'm Akili's and Chief Medical Officer, Julie with Collins; our Santo This by and Shane. Scott -- our Matt joined Franklin; CEO, Officer, and President today Martucci, Officer, Chief Financial Operating Eddie DiCarlo, our Relations After the the can Investor section be our which markets closed earnings today, accessed release, we of issued website. on

that we'll earnings slides on website webcast. our Additionally, during we reference IR posted today's

This call and today's recorded, the IR being teleconference will a of the is website replay be event. conclusion our of available on at

forward-looking During today's those uncertainties. estimates The that involve differ while performance regarding financial of and events, call, the the may materially certain from expressed of such or subsequent not a factors. XX-K other uncertainties considered but company. risks those reasonable include, and expectations, assumptions such limited by implied statements the X statements important with company's upon set future plans, These that are SEC. to, result March our management company's well risks prospects based the as various by might filed make Form we'll results or forward-looking in differences filings actual as and forward-looking cause any are statements forth as on Factors

certain but outlook. our measures. today's as explicitly update of statements as we'll May We in earnings be our Management isolation to Also historic of XX, today, obligation reconciliation our a representative is financial substitute to included financial as financial of as and of subsequent today's A financial to only our measures as slides considered GAAP, be call, any release. Information the or complement views our in on does prepared intend not the in relied our during forward-looking a these any refer accordance provide provided upon reflects call of or non-GAAP to disclaim earnings GAAP should transparency. non-GAAP revise with measures not greater in presentation for date. views any results non-GAAP or and to measures

with prepared Eddie the X the Eddie? Slide to hand his to for call along slides, please following remarks. over as you're If turn I

everyone, adult positioning our Rx QX you tell our XXXX able a more ourselves to about Hi, share productive some be welcome busy. recent the We've quarter, the Endeavor and ADHD announcements. We Julie. I'm our to And been Thanks, pediatric even and call. markets. excited to first and market earnings to adolescent of today growing in and larger access progress had

In terms of Endeavor Rx strong results. and children seeing with ADHD, we're

and increase both going shows launch prescribers traction every model. the In We're for prescriber us more in prescriptions, the new that of saw QX integrating more quarterly sales sales be to for force, of team these growth a and great as an increasing done leading to into breadth forward. uptake in balance the overall their that Endeavor prescribers essentially in existing we routine areas second quarter both metric, seeing Matt's Rx of new demonstrating we're growth depth especially over practice. with job targeted return our positive can doctors us showing with a which control in new the are

struggling able these which as to This to on is well we of larger happy hit milestone important see we've now for right to see of moved access look to business originally package, our for pool anticipated. who submitted really report patients. our patients should adolescent we children is team of easily the what and also and I'm current patients, quickly years and we patients, and it's approval, And are As means excellent be important FDA, who X our expand quickly prioritized our this doctors the regulatory XX now. number old, to with had adolescent addressable adolescent ahead patients which that

review would faster top double While And move need to we that initially data what our now adult right FDA's can't last ADHD excited teens released market trial. for that the our we agency we we're than recognize current and authorization. from will most we quickly is addressable process, anticipated. speak But and about the I'm line market week obviously, definitely can that the urgent hopeful

ADHD. frankly, data technology While for with randomized a been we cognitive trial inside MS, field shown depression more clinical that in of trial from dysfunction will adults completed over results adults treat previously Endeavor than we've can published magnitude the say the trials the this I controlled in are pivotal and a in effects decade Rx in even and had SSME in Scott the with a explicitly me. this quite go could I've bit. surprised But these astounding. an

access to meaningful from and treatment, a speed is offer a we're for to demographic. in we market access our current into think options and market, their million currently adult of patients Given the unique and and derisk historic U.S. mental our the to which at treatment is huge jump this adolescents, undertreatment of we all, hands getting product market expansion a their adults children our get patients. pediatric current what in a our plus helps struggle fast-growing can adolescents at health to ADHD plans. option The adults today could label in least from and ability All is allow looking XX

product health all there and entering. therapeutic market areas industry. medicine. the that potential medicine, of say are a into items, with as that I'd about established of all give I'd comes to I all is dive is data, mechanism, therapeutics digital we not the product But these know unique the Before areas equal. for like the very opportunity created we like of the of what X like address the for are to are scale really than digital clinical different And many details us other on down other the the quickly know Achille specifics, to that the of products All earnings like out these success questions to

medicine the technology our Our app. adults is Also, not in therapy recently physiology, in to mechanism just the that seen dramatic deliver human can this And clinical that's stimulating impacts. we've unique. an market is have directly

Our patients adult therapeutics. our and ADHD for future -- large new broad. market our are health markets generally are activated and hungry comprised They're of mental they're who

and our confidence have and why products a to These well and that things the already and are we to of specialty We country. primarily so. see XX,XXX scale, state psychiatrists into think ability to general about XXXX QX pay practice in grow that's by every the the out written prescriptions in pocket willingness that we're give do me pediatricians funded

this from now and to I'd going dig turn last So quarter into Matt? like to it over to forward, team. the our plans Matt data and

outlined focus these Thanks, for and our X Slide Eddie. outlined previously strategic business, right. We've areas X. on are of All

The XX adoption initial opportunity our territories first of of now XX% priority covering direct the of the force is of estimated roughly awareness driving Rx. and our for in Endeavor through market sales indication Endeavor Rx addition U.S.

released features driving with quarter, the modest adoption new improving Endeavor our the barriers removing payers. The second Rx we adoption experience. first is by to and and treatment experience progress In improve treatment several continually expanded for to and third, coverage continue to grow made

starting second first we each look from the XX up of with the areas, to deployed at to team our territories, of adoption. In the quarter, additional XX bringing these Let's a territories. total wave geographic of us highlights sales occupied

these expansion seen in early, encouraged the initial by very territories. we are we've progress it's While

In number QX, we saw overall QX double-digit to The XXXX prescription prescribers, overall of new prescribers, growth all prescriptions growth, refill nearly new and demand. compared and of measures prescriptions.

prescribers short, between as continue sales key see we are the see to In strong direct of Finally, repeat as and grow. new engagement we adoption growth performance encouraged correlation prescribers metrics. accelerated to across number well

as added coverage. added to Moving as we payer our prescriptions. and quickly not now to coverage, but we prescribers new In QX,

We non-pharmaceutical families we need and this pocket of to that is new continue while access out to acknowledge Endeavor to also treatment encouraging, -- options. see expanded willing families Rx, for pay

U.S. Endeavor estimated XXX,XXX as the added plan million multiple Kroger members. X We most for health was its Rx of in plus and formularies. Rx the to largest now Endeavor than did Of in the innovative affiliated is retailers Kroger, note, make progress employees one more QX covering

course, first formulary a multi-step inclusions process, progress. the step by the in is encouraged Of reimbursement but we're

features continue their experience, update track caregivers, to benefits Endeavor on progress optimize and treatment focused experience and visibility products, on including QX, to from improving Rx Endeavor the throughout we were treatment the patients application tracking and treatment. into companion caregivers health this providers increased provide progress Finally, our In enhancements to surrounding Rx realizing are the for our care insight.

for caregivers This by standardized systematically commonly improvement complete This ADHD. addition asked providers way provides is caregivers. and a during to ability that assessment, both to like is and have An to with Endeavor the used Vanderbilt HCPs an course and Rx by app We've highlight. live the for caregivers treatment. rating important monitor a now added and of Insight being I'd assess a the scale used diagnose update to critical

The of starting few key I'll are highlight on the X. now of Turning to a Slide and full the with metrics, slate prescriptions. numbers. quarter-over-quarter metrics year-over-year

a more XX% As a robust increase over new than over Eddie and mentioned, number we XXX% QX in of XXXX XXXX. growth saw with increase prescriptions QX

QX XX% On new XX% in XX% to that continue in and encompasses of small new more by prescription in of prescriptions the number quarter-over-quarter be QX. for And reporting in The -- written prescriptions XXX% prescriptions right than new months time was filled both March, more increase the significant prescriptions the increase from increase the see period. XX we XXX XXXX we we growth. were we a annual new of written down in decline growing in XX% in prior in providing prescribers expense each with over quarter, prescribers, to than QX, in we prescriptions QX. unique dispensed felt during number the a are expect QX XX% by trends same was XXXX. QX which a metric prescriptions, XX% positive the are X.X%, per prescribers patient believe that over driven saw We year-over-year patient refill late and refills,

families dispensed we under by During charge assistance reimbursed to QX, prescriptions. of X% prescriptions were of XX% paid payment free qualifying provided program. pocket XX% dispensed of and patient were our X% out received caregivers, for were of

it Medical programs. our turn I'll Scott Collins, update an Dr. Officer, over Now provide Chief who our will on clinical to

Matt. Thanks,

programs. already exciting clinical updates As number had of from we've heard, you've our a

ADHD. First hoped. in seen XX as primary recently than We outcome and we in large recent what are children foremost, in saw more baseline end measure was even were adolescent change with of X aged as RCT greater our to clinical adults of in our times than top had highlighted initial nearly Endeavor that better and disclosed mentioned, from in our of findings than of adults our X and to magnitude we treatment. significantly improved we the The saw attentional on The to on study from Slide FDA's trial observed the authorization Eddie we led changes as was line results what functioning twice Rx. X

On end in at the treatment. In authorization, at patients the our meaning treatment same the we measure of XX% more population longer comparison, X/X patients the FDA no validated scored normative of have than weeks. of the range where end our range a X deficit after at they attention, scored of measurable in using attention treatment, have pediatric of for normative

meaningful rating We scale, also the accepted inattention effects including outcome symptoms. of on measure and clinically subscale ADHD widely score measures, observed a ADHD of total significant the the

also on we're seeing than Nearly in ADHD more or of pediatric X/X greater clinically had scale. and improvement of a studies. are the These rating both what our of all meaningful XX% patients adolescent

significant a perspective Critically adult meeting for specific improvements studies, quality important this measure. of have for millions stars ADHD the measured time almost with prespecified a United our We present all with study scientific plan meeting. ADHD ADHD for first a findings of data life from quality in of to full the validated the from adult of clinical half at in we in significant ADHD saw participants We life implications These improvement. robust with the adults the living States. criteria clinically could future study

our plans that more hands treatment patients' our currently and as several into we're for speed seeking accessing the strategies near care. This we've that reporting it Over barriers product effective get as adults possible, even environment to ADHD facing on sharing and about the will as delivery makes months, important that as soon. increasing more to regard regulatory of the constant seen We past quickly look care of in this this they're numbers information patients. forward well safe evaluating both we

which results, reached adult ADHD In these milestone addition to the on population. another truly to important expectations, access full path our we the exceeded study

expansion to along well this initially XX. the adult XX FDA study I week, to Rx label just what aged schedule the the children Endeavor request both Earlier submitted to we with our expand This projected. indication completion to our from milestone, described, of ahead we are of

found Slide as a respect option manage we and showed outcomes their on crisis our to adolescents. January, programs, many It's that possible and being have in be accessing Endeavor to robust and to we impacted as with improvements too are to look mental give pipeline intentional Rx them functioning, related As difficulties choices in functioning able X. health to clinical we teenagers shared teams treatment. The ADHD had, they by critical other can for forward in our new with

Shionogi Phase pivotal X with we our well opportunity are were the progress studies infection dysfunction expected. in time as other partnership accelerating. our lines market adults In ADHD Japan Outcomes as from Our better reported. than of III following in expanding in on our with summary, is cognitive in our toward COVID previously study study track

pivotal ADHD. our number on substantially is results end-of-year to adolescents to potential in We're to for challenges now patients turn our been treatment an financials. across lifespan, patients Japan expand a the with greater track readout. over access we'll and on trial ongoing have this to benefit an of ensure in to hard be to trial label pivotal submitted for our I'll and Our for about of FDA working Santosh it this excited in midst their update option existing help

hello, everyone. Scott, you, and Thank

we population just made ADHD vast progress have in heard the United patient Scott, States. the here As to majority you incredible from address of

at Slide XX number the people see have million opportunity least in across can overall to the on U.S. we here You updated X, ADHD

market product, undertook in have market adult opportunity reappraisal and expertise a the we Dr. the of With the the for imminent launch Collins addressable estimates our our of of adult ADHD. with updated total

XX and expansion strong data has more and in our these With ADHD our potential are well combined in reach ahead of label helping advancing adult than our the million to plans. schedule the current this programs populations expansion, people with ADHD, both we adolescent label population and quarter, de-risk with

in Slide quarter on on were see on XXXX. perspective, revenues From of It to similar Now the XXXX, XX. in you quarter revenues first a to financials is of $XXX,XXX. total revenue the number as reported the slide, our fourth the

activation As a and reminder, and we upon period. over a recognize revenue XX-day dispense

You that will in revenue increased our deferred today. XXXX balance the statements therefore press fourth financial in quarter of notice the release to our compared

of to the the quarter. was due This timing mainly dispensed prescriptions in

the of approximately earlier first by taken expenses but actions the of expenses. workforce. of ended operating represents to plan, reduction quarter XX% capital and short-term of GAAP primarily million operating the $XX which driven not incurred This in impact we on in including Moving our We $XX of about the million approximately from total quarter-over-quarter. approximately and first non-GAAP And investments. operating million XXXX total the the of quarter expenses with was $XXX XXXX last XXXX, perspective, cash our cash, a in reduction in least, of the equivalents the quarter support

runway. brings This cash our to me

approximately hand first be operations to $XXX XXXX. planned to over of our the first of resources continue update and With commercialization these expansion; especially preserve our the EndeavorRx to, it that that, Eddie? position able current fund Eddie. ADHD and current and I'll allows at financial capital in I'll million our us plan by the end of capital, primarily our to market two, expect close the one, conditions. current We reiterating quarter quarter that operating focus on cash to on into label

pursue with ADHD about hope trials strong forward our significantly into our you metrics, today. operator, adults a over Thanks, strengthened turn Santosh. well to thank clinical adolescents the our call. along and who time, summary excited to to everyone our sense we can I of Endeavor On sales apprised and at to QX market. growth. on position just XXXX you we're have have Rx entire all I'd our of to access successful goals joining de-risked Slide I'd funded plans this things the And keeping for progress. things XX, here questions. for advance and We're you us like to has the quick look today's our our will open in like to back We all. call

[Operator Instructions] Charles TD comes from The first line from of Cowen. question Rhyee the

why such adult Charles. Curious populations and on Lucas wanted patient to adolescents. you in compared the to data. ask seeing adult results is pediatric guys for This as I are to improved about

You last I to better had concrete hear to adult call, have the commented populations as guys younger would a solutions come little like to bit chance in you but outcomes populations? if a some to more the on to why seem

objectively from into is which the than is that what our in everything in of best that's from But interested quantitatively now. guess confirm sort more exploring the is This we've right question. that our own -- caregiver. data. data, about are seen to I'll control of how little their -- trial and hypotheses who think their with An of hypothesis. because be adolescent were more We're aren't clinical a bit old a adult we some actually treatment. talked might trial likely seeking Yes, These are clinical motivated. of current following as confirmed treatment taking Scott. I a the XX-year they options a are or XX-year enrolled patients thanks in are the the they scenario take enrolling this and for different who's we think and a that, by Yes. adult care if report we They're -- their working, data, being

you then selling line that the label you be shorter of us And and into it's guys is able obviously, -- approval, than of quickly pending how expansion the types. what the on adult the Great. assumption version working can different be Okay. kind the for will time product X-XXK assuming you'll of launch remind approval then physician to

Yes.

predict that so opportunities guidance to expansion. days. week, doesn't yes, they this questions that us And that's from time label So to we adult is submission FDA can't course, we the a to that that, we'll for not The legally still had what just strategies include respond And That we FDA do. later. evaluating for for and we data, XX and with -- is of to to respect our then bound our they're adolescent line, standard information have. going might are have the more earlier regulatory

[Operator from of Credit question Your the Instructions] Frommer line from next comes Judah Suisse.

first, progress. and versus patient between of communities. how just adults ADHD us for compares X Congrats calls in you and those remind on the deals potentially Maybe care could be adolescents could how different physician the standard

Yes.

There's So I the take of can a first there. part. pieces couple

is ADHD. the care not way adults wild established. care in as are managed Pediatricians pediatricians same adults standard referred West. care of there's ADHD. one of Primary adolescents I -- in lot pediatric comments, Because a to how my kids. docs is, who between ADHD of compares majority vast manage been think, of trained So and article what as the -- to on take well even reported of to it's lot that I and not has are alluded adult A the the of treatment

real a in there's to. terms of able So gap who's

of Matt. the terms speak care. And to in to can turn standard of it that I'll sales -- call, the So I

into call Yes. the it adolescent think thoughts I expansion, current point. mean, for fits initial our seamlessly I

So to get we're that. extremely excited

have. the think opportunities multiplies it I we

looking the still strategies. all the Scott On at market, commercial regulatory as earlier, we're different adult strategies, mentioned

today. So that in is work progress still

the a gap real that is bringing of with go Scott for we applied is a What EndeavorRx kind This in singular there as broadly. terms excited is there's of about products what algorithm forward I'm there's mentioned meaningful We because way in Eddie. terms in fit a to of to standard not care in, the patients. treatment in believe opportunity

the I'm And adults. of think market, had there's prior, talked wrong, it about looks the entire Santos specifically I in think to as people Correct market addressable guys being opportunity mentioned adults. recharacterize Okay. and the me you about million now about if XX Got XX like it. ADHD I taking million kind

we'd of could kids can of late? the I for adolescents. where and nonstimulants And of also just So bar head sort some adults for a about too Should guide help talked do way space? analysis, we then share as the therapeutics us in market being your think brought same you with the KOL for for separately, that digital we think

is going on help I'm the question. That's can in to that help the He hand KOL a sitting room, market to -- with opportunity. question great us mean it I you over so Scott. the

came concluded data, our say previous in in So were on I'll look so extremely conservative. took hard previous assumptions, adult supported, they and December the of were the market that opportunity, a and -- that the we getting I we at they but midst were estimates

it available So at fresh based data. of just we all revised on a look the

I nonstimulants, And population it. in as adult starting then the guide for market share a just potentially. Got guess,

this mean I Yes. Santos. is

market share that, our a will we We about how how at early we and obviously evaluating have I terms go-to-market it, still would our think now, once In share strategies, And it's with the market about we a I point regulatory share strategies. we'll of and time. are -- point of think in that inform we on view that all that think Judah. you, little still right think

comes question LifeSci from of next Capital. line Rahul Rakhit from Your the

between month-over-month. I the was between and Are you scripts? quarters of that And seeing refill kind refill of starting can of launch. help patients dynamics once? couple kind more if Can launch proportion to the virtual given just of than log also see that full to wondering you're the Are you seeing are seeing. the us some speak you refill that gap on maybe we you you patients the limited have a of

happy that. to address Yes,

in refills. we growth quarter-over-quarter So the the is of sort as number interesting. of It metrics, we key overall see in continued did presented

different EndeavorRx unique One various scenarios each flexibility that incorporated is of really can the of be strengths can into child. it of treatment needs accommodate the the

a the in wide range see or we our customers with So today. market today

you as single refill do of experience mentioned, see month. Others on their prescriptions. They're EndeavorRx. just are that use new children, with prescriptions with starting it are written the Some treatment. majority every first come We the

the anticipate patient new as will it's per do that grow over we guidance So continue We're our see -- hopeful refills grow time. as to grow. continue pace out that early engaging that on But metric we force providing that sales are for a the is not we to of us. with clinicians educating we'll

Got X study. to you that reason treatment switching it. That's -- the over guys to period explain helpful. from any extended And the for Can there you is weeks why adults particular X long weeks. guys then from a patterns are how script last. prescribing implications any you about in are mail can for thinking adults there terms of we how or there And

is This Rahul. Eddie. question. Sure, Thanks the for

or that most the we've that X are weeks benefits, paradigms you've we've seen what different across is key investigators least see -- clinical. so -- leaders early work different time We technology, X think an be the with minimal with to at at look the and an into and weeks tend -- frame this true but as most populations. the So opinion about at we common would to populations X ideal either gone they best tested

the with that's approach. the And took we work We experts each how there. of kind population so take differently

at chose run, different look designed have for we don't we possible we every where how this we obviously study, And combinatorial period. studies We the prospectively. could treatment so option that's X-week but study this that

Got it.

the expect X you treatment like be it guess in the still Okay. that spread to look population? expansion of adult to treatment? course do would out Or the And label into X-week I weeks, that going with to is of you a population, kind current

Yes.

into evaluating the make also again, different that I further we'll as diving think, options decision. the data, and we're all

then one capabilities this DEA sold morning I for it. the extended Got saw substances. -- And telemedicine the prescribing last to or me, for

of kind as rates adult an are as on guys increase you of opportunity expecting seeing one that there's Given an well? kind plant, for additional diagnosis from in think do guys And ADHD of going one some the to we're patients medication. you see you there tailwinds of

in I a need. will mean there I from at in I this what patients of I see just of a perspective, terms say Scott. -- not rates, And the options. Yes. that only you're of And need that clinical that's a we're all literature can the the can least popular press is scientific effective. options in not existing pretty lot kind is starting comment -- it they historically, seeing to dramatic of

are even limited. Now further those options being

that more you're to The adult really be Yes. stimulant to referring as seems medications even seems think in Rahul, what concern And I well, to shows even be acute. the the society acute in interestingly, around concern use of more the population.

excited about So a as we very that opportunity. we're bring non-pharmacological option population, into that

time. Please There at continue. further no questions this are Instructions] [Operator

you up we will to later call, Okay. wraps you the Thanks for the on. talk That Bye-bye. everyone. so much, Thank and attention.

call. this participation. gentlemen, today's conference for concludes and Thank Ladies your you

now may You disconnect.