Oliver Butt's questions to Adicet Bio (ACET) leadership • Q1 2019
Question
Oliver Butt of JPMorgan asked for an update on the VA appeal process timeline, the potential revenue opportunity from new ANDA approvals, whether current high inventory levels represent a 'new normal', and for details on the unwinding of accrued expenses for price concessions.
Answer
President and CEO Bill Kennally stated that the government has appealed a favorable VA ruling and the process is ongoing, but the company is actively working to regain business. He characterized the new product launches as 'singles' in terms of revenue potential. CFO Becky Roof clarified that the inventory build at Rising is a permanent increase for safety stock, while the Performance Chemicals build is temporary. Both executives explained that the timing of rebate unwinds is complex and depends on when wholesalers sell the inventory, not when the company ships it.