Cumberland Pharmaceuticals Inc.

Good afternoon, and thank you for joining Cumberland Pharmaceuticals' first quarter 2022 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, and good afternoon. Earlier today, Cumberland issued a press release containing a company update and financial results for the first quarter of 2022. The release, which includes related financial tables, can be found on Cumberland's website at www.cumberlandpharma.com. Company management will share an overview of these results during today's call. With us today are A.J. Kazemi, Cumberland's Chief Executive Officer, Todd Anthony, Vice President, and John Hamm, Chief Financial Officer. Please keep in mind 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. It 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 others that are 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 isn't 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 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 and reconciliation to GAAP measures can be found on the financial tables in the earnings release that was issued earlier this afternoon. If you have any questions, please hold them until the end of the call, at which point we'll be happy to answer them. And with that overview, I'll turn the call over to Cumberland's Chief Executive Officer, A.J. Kazemi, to begin the discussion.

Thank you, Molly. And good afternoon, everyone. We appreciate you joining us. As you heard, today we'll provide a company update as well as a review of our financial results for the first quarter 2022. As the first quarter progressed, we saw the headwinds from the pandemic begin to subside, and we're excited to see patient procedure volumes returning to a more normal customary level and our sales representatives gaining more access to face-to-face meetings. The pandemic proved to be a difficult time to introduce our new Caldor presentation and to launch our ReadyTREX brand. It also impacted our ability to advance our clinical trials as patient enrollment was significantly hampered by various restrictions. Fortunately, we're now seeing a light at the end of the tunnel, and if the return towards a more normal environment continues, we anticipate a meaningful, positive impact on our business. What the pandemic didn't change was our ability to further diversify our product portfolio. We started the year with an exciting and significant announcement, our acquisition of Sancuso from the U.S. affiliate of Japan-based Kiwakira. Sancuso is the first and only FDA-approved prescription patch available for the prevention of nausea and vomiting in cancer patients receiving certain types of chemotherapy. We closed that transaction in early January and then assumed full commercial responsibility for the brand in the U.S., including its marketing, promotion, distribution, manufacturing, and medical support activities. To support this transaction, we extended our bank line of credit for a new three-year term, and we expanded the facility to provide up to $20 million in capital, and that line was utilized to fund the Sancuso acquisition. Furthermore, ahead of today's call, we also announced that we've entered into a co-promotion agreement with Verity Pharmaceuticals for Sancuso. Verity is a specialty pharma company with an established presence in the U.S., and they'll be supporting Sancuso through their oncology commercial organization and customer network across the country. We believe Sancuso has the potential to be a valuable product, and we're honored to be able to bring it to patients throughout the United States. Fueled by the addition of initial Sancuso sales, our product portfolio of FDA-approved brands continues delivered combined revenues of $11.2 million during the first quarter of 2022, a 6% increase over the prior year period. Adjusted earnings for the quarter were $.5 million, or three cents a share. We ended the first quarter with $97 million in total assets, $56 million in liabilities, and $41 million of shareholders' equity. Next, we're going to discuss recent updates for several of our brands. But before we do so, it's with great sadness that I share with you that Marty Cornell, our Chief Commercial Officer, passed away in March. Marty enjoyed a successful 50-year career in healthcare, which included 20 years here at Cumberland. And he played a key role in our initial public offering, our business development initiatives, and all our product launches. Marty was an outstanding leader, a valued contact, and a dear friend to many. He'll be greatly missed. Fortunately, we have a strong marketing and sales leadership group who have stepped up following Marty's passing. Providing today's update regarding our commercial activities is Todd Anthony, our vice president, organizational development. He joined us on our last call, and he's been with Cumberland now for 12 years. Todd has a total of 25 years of experience in the pharmaceutical industry, including a variety of positions with growing responsibilities at Bayer Healthcare Pharmaceuticals, before coming over to Cumberland originally as our Director of Sales Training. Todd's now responsible for all our HR, 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 professionals who have joined us with experience and backgrounds from many other biopharmaceutical companies. So, Todd, I'll turn it over to you.