Brickell Biotech, Inc.

Inc. Quarter 1, 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Garth Russell, LifeSky Advisor. Thank you, and over to you.

Thank you, and good afternoon, everyone. Joining me on today's call are BRICL's Chief Executive Officer, Rob Brown, President and Chief Operating Officer, Andy Scholar, Chief Financial Officer, Bert Marcio, and Chief Medical Officer, Dr. Monica Lucchi. Before we begin, I would like to remind everyone that this conference call and webcast will contain forward-looking statements about the company. These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ. Please note that these forward looking statements reflect our opinions only as of the date of this call. We will not undertake any obligation to revise or publicly release the results of any revisions to these forward looking statements in light of new information or future events. Factors that could cause actual results or outcomes that differ materially from those expressed or implied by such forward looking statements are discussed in greater detail in our most recent filings on Form 10-K and our other periodic reports on Forms 10-Q and 8-K filed with the SEC. It is now my pleasure to turn the call over to the company's Chief Executive Officer, Rob Brown. Rob, the floor is yours.

Thanks, Garth. Good afternoon, everyone, and thank you for joining our call today. This is an exciting time for us as a company as we recently completed a transaction that reflects our new business strategy and commitment to develop our pipeline of novel autoimmune and inflammatory therapy candidates. Just last week, we announced the sale of Sophronium bromide, or SB for short, to Botanics Pharmaceuticals. Under the terms of the deal, Botanics acquired all assets primarily related to SB, which Brickell had developed successfully through Phase III pivotal studies as a topical therapy for the treatment of primary axillary hyperhidrosis. In exchange, we received an upfront payment of $3 million at closing and anticipate receiving up to an additional $6 million in potential near-term regulatory milestone payments over the next 18 months from Botanics. The company is also eligible to receive success-based regulatory and sales milestone payments of up to $168 million, as well as tiered earn-out payments on net sales ranging from high single digits to mid-teen digits. This transaction with Botanics allows us to immediately unlock value of SB while eliminating the significant investment required for Brickell to move SB gel through the FDA review and commercialization. We plan to directly invest the proceeds and potential future economics from this deal to continue advancing our pipeline and novel potential first-in-class therapy. This includes a first-in-human phase 1 study that is set to start imminently for our lead DERK1A inhibitor, BBI02, the development of our lead sting inhibitor, BBI10, and the advancement of our next-generation kinase inhibitors through early preclinical stage studies in 2022. We believe our team's clinical and regulatory experience and track record of operational execution is as shown by our ability to develop SB from an early preclinical stage through phase three and up to NDA submission, is what positions Brickell to lead the successful development of these promising new programs. Now I'd like to pass it over to Monica to provide an update on our ongoing pipeline activities.