Jaguar Health, Inc.

Good day and welcome to the Jaguar Health Investor Webcast. Today's conference is being recorded. Before I turn the call over to management, I would like to remind you that management may make forward-looking statements relating to such matters as continued growth prospects for the company, uncertainties regarding market acceptance of product, the impact of competitive products and pricing, industry trends, and product and technology initiatives, including products in the development stage which may not achieve scientific objectives or meet stringent regulatory requirements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These statements are based on currently available information and management's current assumptions, expectations and projections about future events. While management believes that its assumptions, expectations and projections are reasonable in view of current available information, you are cautioned not to place undue reliance on these forward-looking statements. The company's actual results may differ materially from those discussed in this call for a variety of reasons, including those described in the forward-looking statement and risk factor section of the company's Form 10-K for the year ending December 31, 2020, which was filed March 31, 2021, and its other filings with the SEC, which are available on the investor relations sections of the Jaguar website. Except as required by law, Jaguar Health undertakes no obligation to update or revise any forward-looking statements contained in this presentation to reflect new information, future events, or otherwise. Additionally, please note that the company supplements its condensed consolidated financial statement presented on a GAAP basis by providing gross sales, non-GAAP EBITDA, and non-GAAP recurring EBITDA Jaguar believes that the disclosure items of these non-GAAP measures provide investors with additional information that reflects the basis upon which company management assesses and operates the business. These non-GAAP financial measures should not be viewed in isolation or as substitutes for GAAP net sales and GAAP net loss. and are not substitutes for or superior to measures of financial performance in conformity with GAAP. At this time, it's my pleasure to turn the call over to Lisa Conte, Jaguar Health's founder, president, and chief executive officer. Lisa, the floor is yours.

Thank you. Thank you for those statements, and thank you all for joining our webcast today. My name is Lisa Conte. And I'm the founder and the CEO of Jaguar Health and our wholly owned subsidiary in the United States, NAPO Pharmaceuticals. And I'm so pleased to add, I am also a director of our new Italian subsidiary, NAPO EU. Today, we will update stakeholders on progress of NAPO EU's proposed business combination with Dragon SPAC, the progress of our ongoing phase three trial in cancer therapy-related diarrhea, and, of course, the financial performance of the commercialization of MyTESI in the first quarter of 2021, specifically in comparison to last year, the first quarter of 2020. We're going to start with the key financial results for the first quarter of 2021, which will be provided by Carol Lizak, Jaguar's Chief Financial Officer. Before we jump in, I'd like to let all of you participating today know that we will have a brief Q&A segment at the end of the webcast to address questions, if any, submitted in writing. Questions can be submitted via the webcast link for today's event that appears on the events and presentations page of the investor relations section of Jaguar's website. The URL for Jaguar's website is jaguar.health. Okay, we'll now move along and start with the key financial results for the first quarter of 2021, and I'm going to turn it over to Carol Lysak. You're on, Carol.

Well, thank you, Lisa, and thank you all for joining our webcast today. Key financial highlights for the quarter ended March 31, 2021 are as follows. My Tessie net sales during the first quarter of 2021 were approximately 1.2 million and 0.9 million in the first quarter of 2020. This first quarter 2021 result represents an increase of approximately 43% of the same period in 2020, or an increase of 0.3 million quarter over quarter. My TESI growth sales during the quarter, the first quarter of 2021, were approximately 4.6 million and 1.3 million in the first quarter of 2020. This first quarter 2021 result represents an increase of approximately 250% of the same period in 2020, or an increase of 3.3 million quarter over quarter. Total Mitessi unit sales volume increased by approximately 6% in the first quarter of 2021 over the first quarter of 2020. U.S. prescriptions for Mitessi decreased slightly by 2% in the first quarter of 2021 as compared to the first quarter of 2020. Prescription volume is the best estimate of patient demand while unit sales volume may reflect varying buying patterns among wholesalers as they manage their inventory levels. This can result in differences between these two metrics. The company believes the COVID-19 pandemic played a role in the slight decline in prescription volume, with the pandemic resulting in fewer patient visits to their healthcare providers. and subsequently fewer opportunities to diagnose new Mitessi patients. This is consistent with overall pharmaceutical industry performance that showed a negative growth in total U.S. prescriptions for all drugs and decreases in new to brand prescriptions. Additionally, pandemic necessitated travel restrictions negatively impacted the ability of the company's sales personnel to promote MyTSESI to physicians in the first quarter of 2021. For the first quarter of 2021, the loss from operations was $8.8 million compared to a loss of $7.7 million in the first quarter of 2020, a loss increase of 15% or $1.1 million quarter over quarter. The net loss for the first quarter of 2021 was 12 million, compared to a net loss of 7.9 million in the first quarter of 2020, a 51.3% or approximately $4.1 million increase quarter over quarter. In addition to the loss from operations, interest expense increased by 1.7 million from $199,000 in the three months ended March 31, 2020, to $1.9 million for the same period in 2021, primarily due to interest expense incurred on royalty interest agreements and Exchange Note 2. Additionally, there was a change in fair value of financial instruments and hybrid instruments designated at fair value option losses increased $598,000 from a loss of $1,000 in the three months ended March 31, 2020, to a loss of $599,000 for the same period in 2021 designated as fair value options. That concludes my recap of high-level financials for the first quarter of 2021. I will now hand the discussion back to you, Lisa. Thanks, Carol.