Eagle Pharmaceuticals, Inc.

Good morning, everyone. My name is Gretchen, and I'll be your conference operator. At this time, I'd like to welcome everyone to Eagle Pharmaceutical's first quarter 2022 financial results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. At that time, if you have a question, please press star and 1 on your telephone keypad. As a reminder, this conference call is being recorded today, May 9, 2022. It is now my pleasure to turn the floor over to Ms. Lisa Wilson, Investor Relations for Eagle Pharmaceuticals. Please go ahead.

Thank you, Gretchen. Welcome to Eagle Pharmaceuticals' first quarter 2022 earnings call. This is Lisa Wilson, Investor Relations for Eagle Pharmaceuticals. With me on today's call are Eagle's President and Chief Executive Officer Scott Harris and Chief Financial Officer Brian Cahill. Dr. Mike Greenberg, VP Medical Failures, will be available during the Q&A session. This morning, the company issued a press release detailing financial results for the three months ended March 31, 2022. This press release and a webcast of this call can be accessed through the investor section of the EGLE website at egleus.com. Before we get started, I would like to remind everyone that any statements made on today's conference call that express a belief, expectation, projection, forecast, anticipation, or intent regarding future events and the company's future performance may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act. These forward-looking statements are based on information available to ecopharmaceuticals management as of today and involve risks and uncertainties including those noted in this morning's press release and our filings with the SEC. Those forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. Eagle Pharmaceuticals specifically disclaims any intent or obligation to update these forward-looking statements except as required by law. A telephone replay will be available shortly after completion of this call. You'll find the dial-in information in today's press release. The archived webcast will be available for one year on our website at eagleus.com. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on May 9, 2022. Since then, EGLE may have made announcements related to the topics discussed, so please refer to the company's most recent press releases and SEC filings. And with that, I'll turn the call over to EGLE's President and CEO, Scott Tariff.

Well, thank you, Lisa. Good morning, everyone. And thank you for joining our call today. We're delighted to share that the early momentum we saw at the beginning of 2022 continues to build, reflecting strong initial sales of $34 million for vasopressin and $37 million for Pemfexi during the quarter. We had the great quarter we anticipated with non-GAAP earnings of $4.04 per share and over $50 million of net income after tax on a non-GAAP basis. well on our way to the best year in our company's history. Our cash position is about $70 million with $130 million in receivables for a total cash plus receivable of $200 million and only $24 million of debt. Keep in mind, we built inventory and bought back $8 million in stock in the quarter as well. If the rest of the year plays out as we anticipate, 22 will be a very strong year. We still have exclusivity for both Vazopressin and Pemfexi. Our market share for Vazopressin was 24% for the trailing four weeks, and we are seeing significant acceptance of Pemfexi in the marketplace. We are extremely pleased with these numbers. Our company has evolved, and the Eagle story has been simplified. We are in the enviable situation of having significant cash for a company of our size and almost no debt, and rather profitable, which gives us many options. We have a lot to look forward to in the second half of the year, starting with our pending acquisition of Acacia Pharma, which is expected to close in June. As part of that acquisition, we expect to gain two products, Barhemsus, the first and only anti-emetic-approved by the FDA for rescue treatment of postoperative nausea and vomiting despite prophylaxis, and Bifavo indicated for the induction and maintenance of procedural sedation in adults undergoing procedures lasting 30 minutes or less. Both are new chemical entities or NCEs with strong patent protection. We are on track to support AOP Health's NDA filing for Landy Law later this month And assuming approval, we will have three branded novel NCEs, Parhemsis, Bifavo, and Landilol, on the market going into their growth phases. We expect we will continue to generate considerable cash from the rest of the product line, Bendecca, Velrapsa, and Rianodex, then to Mustine in Japan, and now Basapressin and Pemfexi to be followed by Landilol, if approved. In a relatively short amount of time, we have developed a far more diversified revenue stream anticipated to go from three commercial products to eight, and soon it could be nine with Landilaw. Our highly skilled and experienced sales force is one of our greatest assets, and we are leveraging this strength as we broaden our footprint in the acute care and oncology spaces. And looking ahead, we have our very exciting and potentially blockbuster asset, CalO2, a novel first-in-class antitoxin agent for the treatment of severe pneumonia and in combination with traditional antibacterial drugs. We plan to start our Phase 2b3 study clinical trial later this year, and in terms of fulvestrant, we are in the middle of dosing our next study and expect results in the fall. We will keep you updated on what happens here. So what does this all mean for Eagle? We continue to build significant cash relative to our size, and we will be spending some of that cash on the acacia purchase. We're likely to take on some debt later this year, and combined with the debt, existing cash, and our building cash, we will now turn our attention to pursuing additional opportunities to strengthen both the portfolio and the pipeline. This is now where we are focused. One of our key objectives is to pursue additional opportunities for currently marketed products and pipeline assets. We have already accomplished quite a lot thus far in 22, and have made enormous progress to expand our presence in oncology and hospital critical care. Our disciplined approach to our balance sheet and our prudent use of cash have led to the success we have had with organic growth. With the intent to further diversify the company and build out our pipeline, we plan to strategically take advantage of the acquisition opportunities as they arise without taking on undue clinical or regulatory risks. and with minimal dilution and debt. This is a great start to what will clearly be a pivotal year for Eagle, as we expect to finish 22 in a very strong position. We aspire that by the time we leave this year, we are a further diversified pharmaceutical company continuing to build both cash and shareholder value. And with that, I'll turn the call over to Brian Cahill to further discuss our first quarter results.