Cumberland Pharmaceuticals Inc.

Good afternoon, and thank you for joining Cumberland Pharmaceuticals' 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. I would now like to introduce Molly Agus, Account Supervisor at the Dalton Agency who handles Cumberland's communications. Molly, please go ahead.

Hi, everyone. Good afternoon. Earlier today, Cumberland issued a press release announcing the company's annual financial results. as well as an operational update for the year ending December 31, 2021. The release includes related financial tables and can be found on Cumberland's website at www.cumberlandpharma.com. Company management will provide an overview of these results and the recent developments during today's call. With us today are A.J. Kazemi, Cumberland's Chief Executive Officer, Todd Anthony, Vice President, Organizational Development, and John Hamm, Chief Financial Officer. Please note that today's discussion may include forward-looking statements as defined in the Private Securities Reform Act of 1995. These statements reflect the company's current views and expectations concerning future events and may involve risks and uncertainties. Additionally, there are many factors that could affect Cumberland's future results, including natural disasters, economic downturns, public health epidemics, international conflicts, 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. Any forward-looking statements made during today's call are qualified by those risk factors. Despite the company's best efforts, actual results may differ materially from expectations, so information shared on this call should be considered current as of today only. Please remember that the company is not responsible for updating 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 is included on the individual product websites, and links to those sites can be found on the corporate website at www.cumberlandpharma.com. Today, the company will be providing 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 this afternoon. And without background and commentary, I'll now turn the call over to Cumberland's Chief Executive Officer, A.J. Kazemi, to begin the discussion.

Good afternoon, everyone. We're glad you could join us and appreciate your participation in today's call. This afternoon, we'll share highlights of our company's progress and review our commercial activities. We'll also discuss our 2021 financial results and finish with closing remarks before then opening the call to any questions you may have. I'll start by sharing an exciting and significant development. In December of 2021, we signed an agreement with Japan-based Kiowa Kirin for the acquisition of the U.S. assets and rights associated with their oncology support brand, Sankuso. It's the first and only FDA-approved prescription patch for the prevention of nausea and vomiting in cancer patients receiving certain types of chemotherapy. Sancuso will be supported by our new sales division, Cumberland Oncology. We closed the transaction in early January and then assumed full commercial responsibility for the brand in the United States. including its marketing, promotion, distribution, manufacturing, and medical support activities. Following the closing in early January, we began making product shipments. Keoa Kiran will retain international rights to San Cuso, continuing to deliver the product to support oncology patients throughout the rest of the world. The financial terms of the acquisition include included a $13.5 million payment to Kiyo Akira upon closing, up to $3.5 million in milestone payments, and tiered royalties of up to 10% on net product sales. In 2021, net sales of the brand in the U.S. were approximately $13 million. I'd also like to report that in the fourth quarter of 2021, we extended our bank line of credit for a new three-year term and expanded the facility to provide up to $20 million in capital, and that alliance supported the acquisition of the Sancuso. In addition, during the fourth quarter of 2021, we received FDA approval for the expanded labeling of our Caldolor product, a non-narcotic pain reliever. This intravenously delivered formulation of ibuprofen is now approved for use prior to surgery. Orthopedic surgeon Dr. Steven Southworth, who has published extensively on intravenous ibuprofen, has supported this development, stating that when administered immediately prior to surgery, patients given Caldor experience less postoperative pain and a decrease in their opioid use. We're proud of our regulatory team's successful efforts to expand the FDA-approved labeling for Caldor's use in surgical care. And now we'll incorporate this important development into our promotional and medical support for the product, which can provide additional insight into how intravenous ibuprofen can help healthcare professionals manage patients' pain as elective surgeries resume. In 2021, we also implemented the national launch of Readytrex, our FDA-approved line of injectable methotrexate products. Readytrex's pre-filled syringes feature an innovative delivery system for easy handling and dosing accuracy. They're designed for patients with arthritis to increase the efficacy of their treatment while also providing greater continuation rates and less discomfort. It has been a difficult launch for such a new brand during the pandemic, but we are making steady progress in the adoption and in the insurance coverage needed for the brand. Meanwhile, we were pleased to share a number of new publications regarding our Vibative, Caldolor, and Vaprazole brands during 2021. We issued a series of case studies describing the effectiveness of Vibative in treating secondary bacterial infections in COVID-19 patients. And we'll discuss those publications in a little more detail during the marketing and sales portion of today's call. Well, turning to our 2021 financial performance, total net revenues for the year were $36 million. They resulted in an adjusted loss of $1 million, or $0.08 a share. and cash flow from our operations increased to over $6 million in 2021. We ended the year with $85 million in total assets, including $27 million in cash and investments, $42 million in total liabilities, and approximately $43 million in shareholders' equity. So with that overview, I'd now like to introduce Todd Anthony. who was recently promoted to our vice president, organizational development. Todd has 25 years' experience in the pharmaceutical industry, including 12 years here at Cumberland after joining us as director of sales training. Prior to that, he held a variety of positions with growing responsibilities at Bayer Healthcare Pharmaceuticals. Todd's responsible for our human resource, office administration, and organizational development activities. Among his accomplishments is the establishment of the Cumberland Way, which provides consistent direction, procedures, and training for our sales organization, who have all joined with experience from many other biopharmaceutical companies. So, Todd, I'll turn it over to you.