Evolus, Inc.

Greetings. Welcome to Evalyst's first quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to David Erickson, Vice President of Investor Relations. Thank you. You may begin.

Thank you, Operator, and welcome to everyone joining us on today's call. With me today are David Modizetti, President and Chief Executive Officer, Rui Avalar, Chief Medical Officer and Head of R&D, and Sandra Beaver, Chief Financial Officer. Our prepared remarks today will include forward-looking statements within the meaning of United States securities laws, and management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends which may affect the company's business, strategy, operations, or financial performance. A detailed discussion of the risks and uncertainties that the company faces is contained in its annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Additionally, today's discussion will include non-GAAP financial measures, which should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our Form 8K filed today with the SEC, and on our investor relations website at evelis.com. On the homepage of our investor relations website, we have added a slide deck pertaining to today's dermal filler announcement. These slides are intended as a supplement to our remarks, and you do not need them for this call. Lastly, following the conclusion of today's call, a replay will be available on our website at evelis.com. And with that, I'll turn the call over to David. Thank you, David.

Along with strong first quarter financial results, We are excited to announce we have taken a strategic step in achieving our goal of transforming Evelis into a multi-product aesthetics company. As you read in the press release issued today, Evelis has signed an exclusive long-term agreement with Cimetate for a first-generation coal technology hyaluronic acid line of fillers in the United States. After a thorough assessment of the global filler landscape, we identified an exceptional partner with a comprehensive and differentiated line of fillers in late-stage development. Simitase, which is the same firm that developed the latest generation of Restylane fillers for Galderma, has a long history of success in medical aesthetics. Our announcement today is the beginning of a strategic and long-term partnership. Our deep experience in the clinical development and commercialization of market-leading fillers, together with Cimetase's rich history in R&D excellence, makes for a powerful combination to bring this first-generation technology to market. This highly competitive filler line, which we have branded Evelisse, is in the late stages of development and is expected to launch in the first half of 2025. For background, injectable neurotoxins and dermal fillers are the top two aesthetic procedures and represent nearly half the value of the current $9 billion US aesthetic market. Dermal fillers represent a $1.6 billion market today and are projected to nearly double in size to $3 billion by 2028. From a consumer standpoint, toxins and fillers are synergistic, with fillers being the most common add-on procedure by toxin patients. From a competitive standpoint, today's thermal filler market comprises a handful of players with approximately 80% share held by the top two brands, Juvederm and Restylane. In a few moments, Rui will share the unique attributes of the products that we are bringing to market and why these attributes will empower us to compete effectively and capture meaningful share in the large and fast growing dermal filler market. Looking ahead to commercialization, we have the existing infrastructure to power the launch of Evelisse. Our cash pay focused platform was designed for scale and the launch of Evelisse will benefit from our four key pillars. First, our tenured sales force, which has propelled Jabot to a double-digit chair position in the past two years. Second, a fast-growing consumer loyalty program, which has quickly reached a half million members and is on pace to exceed one million prior to the launch. Third, a proprietary and cost-efficient digital infrastructure that enables a frictionless customer experience, And lastly, due to our cash pay focus, a co-branded media program that drives faster practice growth and supports building the brand. From a financial standpoint, this long-term partnership is highly capital efficient and margin accretive at scale. Sandra will provide additional financial color during her prepared remarks, but here are the key elements. Avalos will pay Cimites 16.2 million euros in total milestones over five years. This includes an upfront cash payment of €4.1 million with a balance based on annual milestone payments, gated by product approval requirements beginning in 2025. We will also pay a mid-single-digit royalty to Cimetase, We will draw down the $50 million available from our credit facility, which we have set aside for corporate development, and this $50 million is expected to continue to fund the company to profitability, including milestone payments and development and launch costs associated with this transaction. The combination of a highly competitive filler line with a capital-efficient deal structure makes this a unique opportunity to create a lasting filler franchise that has the potential to add tremendous value to Evalus and our shareholders. Together with GEVO, the total addressable market for our combined product portfolio expands by 70%. This gives us the confidence to increase our 2028 total net revenue target by $200 million to $700 million, which is a compound annual growth rate of nearly 30%. Now I'll turn it over to Rui to provide more product information. Thank you, David.