Cumberland Pharmaceuticals Inc.

Good afternoon and welcome to Cumberland Pharmaceuticals' second 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 year from today's date. I would now like to introduce Molly Agus, Account Supervisor at the Dalton Agency who handles Cumberland's communication. Molly, please go ahead.

Hello everyone and good afternoon. I hope you're doing well, and thank you for joining today's call. Earlier this afternoon, Cumberland issued a press release containing a company update and financial results for the second 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 those financial results during today's call. It will also provide an overall company update, including a discussion of its brands, pipeline, and partners. With us today are A.J. Kazemi, Cumberland's Chief Executive Officer, Todd Anthony, Vice President, and John Hamm, Chief Financial Officer, who will all participate in today's report. Please keep in mind that their discussions 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 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 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 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. Also, today the company will 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 do appreciate you joining us today. Well, I'm pleased to report that Cumberland had a successful second quarter delivering on our goal of double-digit revenue growth for the period. And we've largely transitioned our newest brand, Sancuso, from Keoa Kiran and began supporting the product through our newest sales division, Cumberland Oncology. We're very pleased to have added another quality brand with proven performance to our portfolio. And Sancuso has quickly become one of our most important products and is already a significant contributor to our business. It's an innovative oncology support care medicine that's delivered through a prescription patch and designed to prevent nausea and vomiting during certain chemotherapy treatments. By addressing those issues, we can help patients tolerate and continue their needed treatments for the cancers. In January, we acquired Sancuso from the Japanese-based Kiowa Kieran's U.S. affiliate, and under the terms of that agreement, we assumed full commercial responsibility for the product, including its marketing, promotion, distribution, manufacturing, and medical support here in the United States. To fund the acquisition, we extended our bank line of credit for a new three-year term, and we also expanded the facility to provide up to $20 million in capital. To support Sancuso, we appointed a new marketing executive and, as I mentioned, formed a new sales division, Cumberland Oncology. This new division has been staffed by a group of individuals who came over to Cumberland from Keogh-Akiran, bringing significant experience with the brand and helping us continue the key customer contacts needed to support prescriptions of the product. Also, during the second quarter, we entered into a significant co-promotion agreement with Verity Pharmaceuticals to feature Sancuso through their national oncology sales organization. Following their success in building their 12-star oncology brand, Verity has expanded their sales organization and now launched their national co-promotion efforts in support of Sancuso in early July. We have a team working closely with Verity to coordinate our joint marketing and sales efforts, and we look forward to their efforts to expand the number of cancer patients who can benefit from the brand. Fueled by the additional initial Sancuso sales, our product portfolio of FDA-approved brands delivered combined revenues of $10.3 million during the second quarter, 2022, a 14% increase over the prior year period. Year-to-date cash flow from operations was $2.2 million, and year-to-date adjusted earnings were $0.3 million. As a result of the Sancuso acquisition, our total assets have grown to $93 million by the end of the second quarter, with $53 million in total liabilities and nearly $40 million of shareholders' equity. So with that overview, I'd now like to introduce Todd Anthony, our Vice President, Organizational Development, for an update on our team and our brands. Recall, Todd has over 30 years' experience in the pharmaceutical industry, including a variety of positions with growing responsibilities at Bayer Healthcare Pharma before coming here over to Cumberland. His responsibilities now include development of our entire organization with an emphasis on our sales divisions. So, Todd?