Baudax Bio, Inc.

Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. Thank you. Good morning and welcome to the BAUDAX BioSecond Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, this conference is being recorded at the company's request. I would now like to turn the call over to Claudia Steislinger, Investor Relations. You may begin.

Good morning, and thank you for joining us on today's conference call to discuss BOTAX BIO's second quarter 2021 financial results. This is Claudia Steislinger, and I am joined today by Jerry Henwood, President and Chief Executive Officer, and Rick Kasdan, Chief Financial Officer. On today's call, Jerry will provide some introductory remarks, provide a business update, and discuss the continued progress around the commercialization of Angesso. Following Jerry's prepared remarks, Rick will discuss the financial highlights from the quarter. Earlier this morning, we issued a press release detailing our financial results for the second quarter of 2021. The press release along with the slide presentation that we will reference for today's call is available on the events page of the news and investor section of our website at bodexbio.com. Please note, the slides for today's presentation are viewer controlled. Before we begin our formal comments, I'll remind you the various remarks we make today constitute forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. including statements related to our financial outlook. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations and forecasts and can be identified by words such as anticipate, believe, could, estimate, target, expect, intend, may, plan, predict, project, will, and other words of similar meaning. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements. The ongoing economic and social consequences of the COVID-19 pandemic, including any adverse impact on the commercial launch of Angesto or disruption in supply chain, our ability to maintain regulatory approval for Angesto, our ability to successfully commercialize Angesto, The acceptance of NGESO by the medical community, including physicians, patients, healthcare providers, and hospital formularies. Our ability in that of our third-party manufacturers to successfully scale up our commercial manufacturing process for NGESO. Our ability to produce commercial supply in quantities and quality sufficient to satisfy market demand for NGESO. and our ability to raise future financing for continued product development and INGESO commercialization. Our ability to pay our debt and satisfy conditions necessary to access future tranches of debt. Our ability to comply with the financial and other covenants under our credit facility. Our ability to manage costs and execute on operational and budget plans. The accuracy of our estimates of the potential market for INGESO. Our ability to achieve financial goals. in our ability to obtain, maintain, and successfully enforce adequate patent and other intellectual property protection. This list of important factors is not all-inclusive. Any such forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties. These risks are described in the risk factors and the management discussion and analysis section of BadaxBio's annual report on Form 10-K. for the fiscal year ended December 31, 2020, and any quarterly reports on Form 10-Q, which are on file with the Securities and Exchange Commission and available on the SEC's website. Any information we provide on this conference call is provided only as of the day of this call, August 5, 2021, and we undertake no obligation to update any forward-looking statements we may make on this call on account of new information, future events, or otherwise. I would now like to turn the call over to Jerry Henwood. Jerry?

Thank you, Claudia, and good morning, everyone. Thanks to all those who have joined this call. I'm especially happy to be speaking with you this morning to give you what we see as very good news of the further commercial progress of ANGESA, and I will be referring to the slide deck that is posted on our website and is also being 8K'd. I'm on slide three of that deck, which is the slide following the forward-looking statement. So, happily, we have the opportunity to observe that in the second quarter, just the second quarter, we had virtually the same numbers that we did for all of last year. And that is not, you know, the be-all and end-all, but it is certainly a very positive step forward, we believe, and, you know, shows really good progress and further uptake of the product. If we go to slide four, here we're looking at what was the change that we saw in the second quarter for units sold to all customers. So this includes ambulatory surgical centers, hospitals, and other centers. So that was a 30% growth over the first quarter, again, showing a nice trend that we saw. hope to continue to see grow and deepen, delta variants notwithstanding. If we look at slide five, here we're focused on the increases in files that have been sold to end user hospitals and to ASCs combined. So the second quarter number showing a 46% increase for that population for the second quarter versus the first quarter of this year. And, you know, again, very happy to see that, as we'll go through in a minute, this is impacting hospitals as well as ASC usage. So we'll move on to slide six. Here on the left-hand side, we're tracking existing hospitals, hospitals that have been on formulary, from the beginning of the year and what happened to them in Q1 versus Q2. So 55% growth in units going to those. And again, just a reminder, many of you know, but our finding and that of others is that hospitals don't stock these products. They're typically buying once or more times a day. Similarly for ambulatory surgical centers. And what we're seeing is that, you know, that usage is real time and has gone through in that second quarter. If we look at ambulatory surgical centers, these are new ambulatory surgical center customers. And what we've seen there is growth in the units that they're using from the beginning of the year in Q1 through Q2, 150% growth. On slide seven, if we look at what is sort of our equivalent of same-store sales, account usage that is increasing per account from Q1 to Q2, you see that we've got a 40% increase. So multiple measures, looking at the same thing and seeing that this does not appear to be highly selective. This appears to be a more generalized. Those folks that have got us on formulary that have been using us are increasing their usage of the product. If we look at slide eight, just a reminder to you, what are the sales techniques and tools that we've been using? As we had described in our last quarterly call, we are using telesales to extend our hospital reach. I think it's important that we've kept that in place because there are certainly select places right now that have shut down access. to reps again because of the Delta variant, mostly in individual cities in the South. That could spread further, but I think we've made some traction, so this can continue to help us have visibility. Also, in the telesales arena, we've added a group with even deeper sales skills that will be doing an end-to-end solution in certain uncovered territories where we get interest and orders for the product, we can go back and try to deepen that usage or initiate that usage where we have had some indications of interest. The BAUDAX field teams still approximately the same size they were before, low 20s. We are looking at and depending on what the environment is like, we'll be considering the opportunity to increase the size of that sales force in a measured way before the end of the year. And territory advisors we continue to use to help us to get access to certain surgical groups where they have had strong relationships to help introduce us and to introduce us to pharmacy in some instances where they have relationships and we have not yet developed them. I'm going to now turn the call over to Rick Heston, our CFO, to cover the financial highlights from the quarter. Rick?