Tabula Rasa HealthCare, Inc.

Thank you for standing by. Welcome to the Q1 2021 Tabula Rasa Healthcare, Inc. Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Kevin Dill, Corporate Counsel. Please go ahead.

Thank you and good morning. I'm Kevin Dill, Corporate Counsel for Tabula Rasa Healthcare. The company intends to avail itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain statements made during this call will be forward-looking statements within the meaning of that law. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause Tabula Rasa Healthcare's actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include the developing nature of the market for technology-enabled healthcare products and services, and potential changes to laws and regulations that may impact our clients. For additional information on the risks facing tabula rasa health care, please refer to our filings with the SEC, including the risk factors section of our 10-K filed on February 26, 2021. A recording of this call is accessible through a link on the investor relations page of our website, and it will be available for 90 days. Now I'll turn the call over to Dr. Calvin Knowlton, CEO, Chairman, and Founder of Tabula Rasa Healthcare.

Thank you, Kevin. Greetings, investors and analysts. Thanks for joining our earnings call for the first quarter of 2021. After my opening remarks, you will hear updates from Dr. Ursula Knowlton covering important PACE industry developments, Dr. Kevin Bosen on sales, and Mr. Brian Adams, who will cover our financial results. Also with us today and available to take questions is our newest leadership addition, Dr. Celinda Tadlock, who is our Chief Client Officer and EVP of Pharmacy Benefits Solutions. As a reminder, this conference call and webcast is accompanied by a PowerPoint presentation available at the IR section of our website, And I would encourage you to download the slides to follow along with our prepared remarks. Let me begin by thanking our team members for an incredible first quarter of recovery as we emerge from the COVID-19 pandemic. Thank you, team. In this section, I want to underscore the fact that we are passionately pioneering a new digital frontier, the safe use of medication with MedWise. We are taking the drug disposition sciences from academic research to real world application for people with chronic conditions who take multiple medications. Today I will cover three points. First, our quality outcomes persist. We continue to publish in peer reviewed journals evidence that interventions driven by MedWise and the derivative MedWise risk score reduce healthcare costs. We have constantly demonstrated in PACE, in enhanced medication therapy management, and in an array of payer groups that using MedWise dramatically reduces adverse drug events, which manifests materially as life-enhancing decrease in falls ER visits, hospitalizations, rehospitalizations, and now reduced risk of premature death. The latest research regarding the value of MedWise was published three weeks ago in the Journal of Patient Safety. Researchers at DARTnet, a non-for-profit research institute at the University of Colorado, demonstrated that a higher MedWise risk score was independently associated with an increased risk of death, further underscoring the value of MedWise to improve the safe use of medication. The study concluded that interventions for patients with a high MedWise risk score can lessen the risk of premature death. On average, certified MedWise advisor pharmacists reduce the MedWise risk score by five to seven units. which translates to improve patient safety and reduce premature mortality. Please read the article in the Journal of Patient Safety for specific information. You will find the study along with our other published research at our website, www.trhc.com. Click on R&D Pillar and then on the lower left, Publications and Reports. Second, while our quality outcomes continue, We now have a tailwind catalyzing precision pharmacotherapy. Though TRHC has been using pharmacogenomic insights for a decade now, it has not been considered customary in medical practice. That mindset may be quickly changing, however, thanks in part to the $834 million judicial judgment in Hawaii brought against Bristol-Myers and Sanofi. The court essentially emphasized that ignoring patient-specific pharmacogenomic data, especially when an FDA black box warning is disregarded, can evoke serious liability. We have seen a huge uptick in inquiries about our PGx-based services and have plans to offer them more broadly. MedWise is the only system available that simultaneously analyzes drug gene pairing as well as competitive inhibition. Competitive inhibition occurs when a person is taking a combination of medications that happen to go through the same metabolic pathway. The affected drugs metabolically collide, causing higher or lower blood levels than expected, which leads to adverse drug events. Many of our peer-reviewed papers attest to MedWise's impact reducing and or eliminating competitive inhibition thus enhancing healthcare quality and reducing total medical costs. These papers also can be found on our TRHC website under R&D and then Publications. You know, ameliorating competitive inhibition is our most common pharmacotherapy intervention in MedWise. Almost 50% of our interventions have to do with ameliorating competitive inhibition. The third point I'd like to make, in addition to our tome of quality outcomes and broadening our pharmacogenomic precision focus, is that we are enhancing our efforts of stimulating pertinent regulatory advances. We are working diligently to ensure that the new administration has a solid understanding regarding TRHC's medication risk reduction focus and solid outcomes. There are exciting developments related to our federal and state endeavors. In addition to the pending state Medicaid medication risk reduction legislation, we met with CMS Center for Medicare and Medicaid Innovation last week to show them the clinical and financial impact we have made in the enhanced medication therapy management program, specifically with those members assigned to us who had MedWise risk scores greater than 14. Our statistically significant outcomes reduced all the economic, clinical, and humanistic metrics mentioned above, including lessening premature death. This was in the 40,000 member subset. As I said, they had a risk score greater than 14. In other words, while we have been provided full information monthly from CMMI on about 305,000 total members, that is part A, B, and D data, We only intervened on the 40,000 members with MedWise risk scores greater than 14. For those whom we intervened upon, the clinical and economic results were material. We have engaged a notable DC firm that's a consulting firm for CMS and CMMI to assure that the leaders of the regulatory agencies understand our novel results. We also have three papers in peer review right now which document our clinical and ROI success in EMTM. In addition to the possible expansion and adoption of our EMTM model, we have positioned our safe use of opioids initiative in the forefront of the regulators. There continues to be a significant opportunity to improve the opioid epidemic with MedWise initiatives such as ours that prospectively predict what multi-drug combinations interfere with metabolic disposition, in particular triggering unintended overdosing, which all can be mitigated by altering current time of the day administrations. This is, again, the pharmacogenetic science of competitive innovation, which is an innovation and application that only TRHC has mastered. Furthermore, we recently published two papers using MedWise simulation, demonstrating that the repurposed drugs used in the COVID raised the MedWise risk score significantly when added to real-world current medication regimens. In the two studies that it was combining them, there were 540,000 patients that were reviewed and simulated. We are now formulating, approaching both pharma companies and the FDA with the unique opportunity to use TRHC's real-world MedWise simulation model, both in clinical trials and in regulatory review. In summary, we are seeing tremendous positive synergy for the broad application of MedWise for three reasons. The economic, clinical, and humanistic outcomes resulting from our novel application of drug disposition science are becoming public knowledge, and the rationale of reducing premature death is compelling. Number two, precision pharmacotherapy, whereby TRHC is the only comprehensive pharmacogenomic drug gene pair and competitive inhibition knowledgeable provider, is heightened by judicial judgments. And number three, regulatory tailwinds are gaining traction on the federal and state levels recognizing that an optimized and safe medication regimen is actually an ethical right for every person, as well as being clinically and economically beneficial to society. I want to make one last point for you to remember for you and your family. Adverse drug events are an unnatural disaster. Adverse drug events are caused by humans who lack the tools to make better decisions. MedWise can remedy this ubiquitous trial-and-error-based medication problem. TRHC is the first company focused solely on the personal and precision application of medicinal science. And by doing so, TRHC is making a huge impact, reducing morbidity, mortality, medical expenditures, and premature deaths. In addition, all of our outcomes are documented in peer-reviewed publications. I will now turn it over to Ursula. Ursula?