Cumberland Pharmaceuticals Inc.

Thank you for joining the Cumberland Pharmaceuticals Second Quarter 2021 Financial Report and Company Update. This call is being recorded at the company's request and will be archived on Cumberland's website for one week from today's date. Now I would like to introduce Molly Agus, Senior Account Manager at the Dalton Agency, which handles Cumberland's communication. Molly, please go ahead.

Good afternoon, everyone. Today, Cumberland issued a press release containing a company update and financial results for the second quarter ended June 30, 2021. That release with related financial tables is available on the company's website at www.cumberlandpharma.com. Please note that today's discussion may include forward-looking statements as defined in the Private Securities Reform Act of 1995. Because any such statements reflect the company's current views and expectations concerning future events, They may involve risks and uncertainties. Additionally, there are many factors that could affect Cumberland's future results, including but not limited to natural disasters, economic downturns, public health epidemics, and other events beyond the company's control. Those issues are described under the caption risk factors in Cumberland's form 10-K and any additional updates filed with SEC. And any forward-looking statements made during today's call are qualified by those risk factors. Despite the company's best efforts, actual results could differ materially from expectations, and information shared on this call should be considered current as of today only. Please remember that the company does not assume responsibility to update forward-looking statements, whether as a result of new information or due to future developments. During today's call, there will be references to several of Cumberland's marketed brands. Full prescribing and safety information for each brand can be found on the individual product websites. And the links to those product sites can be found on the corporate website, again, at www.cumberlandpharma.com. Today, the company will also provide some non-GAAP financial measures with respect to performance. An explanation and reconciliation to GAAP measures can be found on the financial tables in the earnings release issued earlier today. With us on today's call are A.J. Kazemi, Cumberland's Chief Executive Officer, Marty Cornell, Chief Commercial Officer, and John Hamm, Chief Financial Officer. The report will start with an overview of Cumberland's progress during the second quarter and follow with a discussion of the company's commercial activities. There will then be a review of the financial results followed by closing remarks before opening the call to any questions. I'll now turn the call over to A.J. Kazemi to begin the discussion of the corporate update and company performance.

Thanks, Molly. Good afternoon, everyone, and we appreciate you joining us. As you heard, today we'll provide an overall company update along with a review of our second quarter financial results. Well, during the past year and a half, we faced the most challenging operating environment in the history of our company. Throughout the pandemic, we worked hard to maintain operations while also ensuring the health and safety of our organization. Although we've been encouraged by the arrival and growing number of vaccinations, we do continue to carefully monitor the situation, especially as variants cause a new spike in COVID cases. During the pandemic, we adjusted our commercial activities by reinventing the ways in which we operate in order to support our customers as well as the patients who can benefit from our medicines. Cumberland continues to face headwinds due to the pandemic, and several of our brands have been negatively impacted. However, we're fortunate to have a diversified product portfolio that includes brands such as Vibative, Crystallose, and Vaprazole that have all delivered a particularly strong performance during the first half of this year. The combined net revenues from our portfolio of FDA-approved brands totaled $9.1 million during the second quarter. And that was a slight decline from the prior year period. However, net revenues for the first six months of this year were $19.6 million, up 9.3% compared to the same period in 2020. In addition, we received a million dollars during the first half of this year associated with divested product rights for two brands that we no longer distribute. As demonstrated in previous quarters, the company's products generate strong performances at different times during the year, which is why we always suggest you evaluate our progress on an annual basis as quarterly progressions do vary. Furthermore, our key promoted brands continue their favorable prescription trends, which is not always apparent in our reported revenues, which represent wholesaler purchases and can fluctuate due to the wholesaler buying patterns. I would like to highlight Crystalos, as the brand has enjoyed an especially strong performance. In the second quarter, Crystalos delivered $5.3 million in revenue, and the brand ended the first half of this year with $8.3 million in revenue, up 22% over the same period last year. Turning to our earnings, we posted a profit of $1.4 million during the first half of this year, a significant turnaround from the $2 million loss during the first half of last year. During the second quarter, we also continued to deliver positive cash flow from operations, which has now totaled $4.5 million year-to-date, up from the $3.7 million in cash flow for the first six months of last year. As of June 30th, we held just under $90 million in total assets, $41 million in liabilities, and $48 million of shareholders' equity. Meanwhile, we've been pleased to announce the results of our 2020 Sustainability Report. detailing Cumberland's activities pertaining to our environmental, social, and governance, or ESG matters. As the largest biopharma company founded and headquartered here in the Mid-South, we hold ourselves to the highest standards of ethical practices, and we understand the importance of addressing our impact on our constituents, the community, as well as the environment. This new report highlighted several activities we've undertaken to fulfill our mission. And during 2020, we delivered nearly 2.5 million doses of our brands for patient use. None of our products were recalled and no studies were terminated due to failure to good clinical standards. We continue to program to serialize all of our commercial products in the United States, which helps prevent which helps prevent counterfeit drugs from entering the market under the Cumberland name. Additionally, the company had no brands listed in the FDA's MedWatch safety alerts, and we had no products identified by the FDA from its adverse event reporting system last year. This ESG report also highlighted Cumberland's engagement with the community, as well as our investment in our employees. And it does note that our workforce was 40% women and 18% of our employees are minorities. And we do remain committed to sustainability and to maintaining transparency of our corporate operations. Finally, we continue to develop our clinical pipeline of treatments for unmet medical needs. Many of our clinical sites have reopened during the first half of this year and started again screening of patients for potential admission into our studies. And we are working closely with these centers as they resume patient enrollment in the various trials for our products. As a reminder, we're sponsoring three key Phase II clinical programs that evaluate our iFitraBand product candidates. These studies involve patients with the cardiomyopathy associated with Duchenne muscular dystrophy, which is a rare fatal genetic neuromuscular disease, and systemic sclerosis or scleroderma, a debilitating autoimmune disease, and aspirin exacerbated respiratory disease, a severe form of asthma. The potential markets for these candidates are quite large for a company our size, And we believe success in any of these programs can have a dramatic, positive impact on our company. We will await results from these studies before then deciding on the best development path leading to the registration of iFiterman, our first new chemical entity. So with that overview and update, I'd now like to ask Marty Cornell, Cumberland's Chief Commercial Officer and President of our sales operations, to share his update on our marketing and sales activities. Marty?