Assertio Holdings, Inc.

Hello everyone and welcome to the Assertio Holdings Q2 earnings call. My name is Emily and I'll be moderating the call today. At the end of the presentation, you'll have the opportunity to ask a question by pressing start followed by the number one on your telephone keypad. I'll now hand you over to our host, Matt Kreps from Darrow Associates Investor Relations for the company. Please go ahead.

Thank you, Emily. Good morning and thank you all for joining us to discuss Assertio's second quarter 2022 financials. The news release covering our earnings for this period is now available on the investor page of our website at investor.assertiotx.com. I would encourage you to review the release and the accompanying presentation as it is important today's discussion. With me today are Dan Pizer, President and CEO, Paul Schwichtenberg, Senior Vice President and CFO. Dan will open the remarks and provide an overview of the business, followed by Paul, who will review our financials. After that, we will open the call for your questions. During this call, management will make projections and other forward-looking statements regarding our future performance. Such forward-looking statements are not guaranteed of future performance and involve risks and uncertainties, including those noted in this morning's press release, as well as the serious bonds with the SEC. These and other risks are more fully described in the risk factor section and other sections of our annual report on Form 10-K. Our actual results may differ materially from those projected in the forward-looking statements. The SRDO specifically disclaims any intent or obligation to update these forward-looking statements, except as required by law. And with that, I will now turn the call over to Dan. Thank you.

Thank you, Matt, and welcome to everyone joining us this morning. I'm incredibly proud of our second quarter results, as we nearly over exceeded on every aspect of our plan for the quarter. Net product sales were $35.4 million in the quarter, just $115,000 shy of last quarter, despite the loss of exclusivity for ZipSor, thanks to outperformance in Induson, Sprix, and Cambia. Induson returned to volume growth in the quarter. Year over year, the suppository volumes were up almost 4% and increased 7% sequentially. In addition, the mix of heavily discounted product purchased under 340B was down in the second quarter relative to where it has been the previous six months we now have a firm grasp on the trends in this channel and are more comfortable forecasting the mix in addition we're going to be implementing some enhanced commercial and channel strategies specific to this channel in our third quarter that will positively benefit our fourth quarter and a future outlook for the brand and the company as a whole with respect to this issue sprix is also seeing strong A strong volume resurgence with 20% year-over-year and 13% sequential paid volume growth from what we believe is a rebound in elective procedures and the market's desire for non-opioid pain alternatives. Cambia showed volume growth sequentially, but the improvement year-over-year was operational driven as we focused on profitable volumes. As Paul will describe in a minute, this is helping us exceed our gross profit margin expectations this year. At the end of the quarter, we pulled the majority of promotion off of Cambia and shifted those resources and dollars towards Otrexa. Otrexa declined sequentially in the second quarter due to a decline of 14 days on hand in wholesaler inventories, which was due in part to supply disruptions that we experienced in the quarter and to a lesser extent continue to experience today. Our supplier, Antares, was acquired and has likely been distracted as these issues impacting supply are minor and fixable. We expect everything to be resolved for commercial supply by the end of August. However, supply of samples has been impacted to a greater extent and may last longer as we prioritize commercial supply. Samples are important for generating demand for this product and were also a big reason why we anticipated an increase in operating expenses after acquiring Motrexo. Now some of these expenses have been pushed into the second half and into 2023. Longer term, our enthusiasm for growing attracts up as building as we continue to see new opportunities for the product. Gross margins, operating expenses, and cash flows in the quarter all came in better than expected due to continued outstanding execution by the team. As stated in our release, we're increasing our guidance and narrowing the ranges for both full year net product sales and adjusted EBITDA. We expect net product sales to be 129 to 137 million and adjusted EBITDA to be 73 to 79 million. The drivers behind the outsized EBITDA improvements relative to revenues are both the actual results shown in the quarter as well as an outlook for better gross profit margins than we had initially assumed given all the improvements we've seen here today. As we look forward, we're seeing a lot of positive developments in our business. The commercial and channel strategies I mentioned with respect to Induson are expected to have a meaningful and durable positive impact on that brand and will carry over to other products in the company as well. We will see those benefits on both the top line and in margins. We also saw volume growth return to Indison here in the second quarter consistent with the historical low to mid single digit trend, indicating the decline we saw in the first quarter may have been transient and tied to the Omicron resurgence or labor shortages affecting procedure volumes. Longer term for Indison, the potential expansion into the moderate risk ERCP segment is a significant opportunity. Our research indicates this segment may be twice as large as the high-risk segment where the product is being used today. The work to get this added to the product label, which would permit promotion for this use, is accelerating as well. As you saw in this quarter, SPRX is beginning to accelerate, and I personally believe that there is a large need for products like SPRX. We've made minor improvements to its coverage and access, but have room for far more. Otrex Up has similar opportunities with coverage and access like SPRX does. In addition, Otrex Up will be the primary beneficiary of our digital commercial platform, which as of July has moved from multi-channel to true omni-channel, with all key digital channels activated and providing continuous feedback and learnings to measure performance. I mentioned we pulled promotion from Canby in anticipation of a loss of exclusivity in January of next year. Like we've seen with Zip Source LOE here in 2Q, the remainder of the portfolio can cover the shortfall. While Cambia is certainly larger than Zip Source contribution, we do think that the business we have today can still generate net product sales in excess of 120 million in 2023. Our goal, as it has been, is still to add to the portfolio through business development. The acquisition environment today is very favorable. We're seeing a number of quality assets and companies and are very lucky to have built in the capacity to be able to handle multiple work streams at the same time so we can evaluate more than one deal simultaneously. For example, as I speak, we have three active BD projects underway at various stages. Our big picture BD goals have been to find transactions that meet the following criteria. refinance our existing debt and fund the transaction, are accretive, have durable IP, create opportunities to grow, and fits with our platform. One of our shorter-term goals is also to grow our business in 2023. Some of the attractive assets we see now are smaller, and like we saw with Atrexa, on a standalone basis, won't likely help us achieve the diversification we needed to successfully execute a full refinancing, but can be financed with cash on hand or seller financing. So we may proceed with the smaller tuck-in while we continue to pursue some of the larger opportunities as well. Now I'll turn the call over to Paul, who will walk through our quarterly results and guidance in more detail. Paul?