Cumberland Pharmaceuticals Inc.

Thank you for joining the Cumberland Pharmaceuticals 3rd 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 Agas, Senior Account Manager at the Dalton Agency, which handles Cumberland's communications. Molly, please go ahead.

Good afternoon, everyone. Today, Cumberland issued a press release containing a company update in financial results for the third quarter and its September 30th, 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 the SEC. 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 any 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. The links to those sites can be found on the corporate website at www.cumberlandpharma.com. Today, the company will also provide some non-GAAP financial measures with respect to performance. An explanation, 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 third 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. So I'll now turn the call over to Cumberland's CEO, A.J. Kazemi, to begin the discussion of the corporate update and company performance.

Good afternoon, everyone. And thank you for joining us. As you heard, today we'll provide an overall company update along with a review of our third quarter results. Well, Cumberland delivered another steady quarterly performance when taking into account the challenges of operating during the pandemic. Fortunately, we're starting to see signs that our business environment is returning to normal. For example, we recently held our first in-person national sales meeting in two years. and we've also resumed enrollment in the clinical studies, which have been interrupted by the pandemic. Furthermore, we've worked hard to maintain operations while ensuring the health and safety of our team. We're optimistic as vaccination rates rise and case counts decline, and we continue to carefully monitor the situation. Over the past year and a half, we've reinvented the way we operate, to support our customers and the patients that can benefit from our medicines. We're fortunate to have a diversified product portfolio of FDA-approved brands that has helped us mitigate the negative effects of the pandemic on our business, with brands such as Vibative and Crystallos delivering a solid performance this year. We do partner with a group of FDA-approved manufacturers to supply our products and And throughout the pandemic, we've been successfully monitoring that supply chain, which includes the raw materials as well as the finished goods emerging from those facilities. Meanwhile, our clinical trials have resumed as we're beginning to emerge from the pandemic, and we are working closely with the sites as they reopen and enroll patients in the studies for our products. As a reminder, we're sponsoring three Phase II clinical programs, all evaluating our Ifitrabab product candidate. These studies involve patients with Duchenne muscular dystrophy, a rare fatal genetic neuromuscular disease, systemic sclerosis, a debilitating autoimmune disease, an aspirin-exacerbated respiratory disease, a severe form of asthma. Additionally, our board of directors has approved a new clinical program for the use of ifitroban to treat patients with progressive fibrosing interstitial lung diseases. The non-clinical program is complete. The resulting manuscript has been prepared, and we are now designing a phase two clinical studies as we work to help patients with this deadly condition. We will await results from all of these clinical programs before deciding on the best development path for the registration of iFiturban, our first new chemical entity. You see, the potential markets for these pipeline candidates are quite large for a company our size, and we believe success in any of these programs can have a positive impact on our company, our value, and the patients that we can support. Although Cumberland continues to be impacted by the pandemic, our business does remain steady. During the third quarter, our product portfolio delivered combined revenues of just over $8 million. And while shipments were a bit lighter than usual during the quarter, it's important to note that end-user demand and prescriptions for our products continues to grow. That's because, as we've noted before, our quarterly revenues do fluctuate because they're tied to our shipments and wholesaler buying patterns, and therefore our business is best evaluated on an annual basis. Year-to-date revenues have now totaled $27.7 million, resulted in year-to-date adjusted earnings of $.7 million, or five cents a share. We've also generated $4.4 million in cash flow for operations during the first three quarters of 2021. We ended the third quarter with just under $88 million in total assets, $41 million in liabilities, and $47 million in shareholders' equity. And in addition, I'm pleased to report that we recently extended our $15 million bank line of credit for a new three-year term, with Pinnacle, the largest independent bank here in the Mid-South region of the United States. During the third quarter, we implemented the national launch of our Readytrex line of pre-filled methotrexate syringes. As a reminder, Readytrex is FDA approved for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis. Also, we were pleased to announce the results of our 2020 sustainability report, detailing Cumberland's activities pertaining to our environmental, social, and governance, or ESG matters. Highlights of this report included the delivery of nearly 2.5 million doses of our brands for patients, no product recalls, no studies terminated due to failure of GCPs, and no brands listed on the FDA MedWatch safety alerts for human medical products. Our employee base was 46% female and 18% minorities in 2020. As the largest biopharma company founded and headquartered in the Mid-South, we hold ourselves to the highest standards of ethical practice and understand the importance of addressing our impact on our constituents, the community, and the environment. And we do remain committed to sustainability and to maintaining transparency of our corporate operations. You can find a copy of that report under the investor relations sections of our website at www.cumberlandpharma.com. So with that overview and update, I'd now like to ask Marty Cornell, Cumberland's Chief Commercial Officer and President of our Sales Division, to share his update on the company's marketing and sales activities. Marty?