Theratechnologies Inc.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Thera Technology's second quarter 2024 earnings call. We would like to remind everyone that all figures on this call are quoted in U.S. dollars. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session with analysts. Instructions will be provided at that time for you to queue up for questions. Following the analyst Q&A session, investors wishing to submit a question may do so by clicking the Ask a Question link on the webcast platform. If anyone has any difficulties hearing the conference, please press the star key followed by zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded today, Wednesday, July 10, 2024, at 8.30 a.m. Eastern Time. I will now turn the call over to John Leisure, Global Commercial Officer at Thera Technologies. John, please go ahead.

Thank you, Operator, and good morning, everyone. On the call today will be Thera Technologies President and Chief Executive Officer, Mr. Paul Levesque, and Senior Vice President and Chief Financial Officer, Mr. Philip DeBoek. During the Q&A session, he will be joined by Dr. Christian Marcellet, Senior Vice President and Chief Medical Officer, and myself, the company's Global Commercial Officer. Before we begin, I'd like to remind everyone that remarks today contain forward-looking statements regarding the company's current and future plans, expectations, and intentions with respect to future events. Forward-looking statements are based on assumptions, and there are risks that results obtained by their technologies may differ materially from those statements. As such, the company cannot guarantee that any forward-looking statement will materialize, and you are cautioned not to place undue reliance on them. The company refers current and potential investors to the forward-looking information section of Thera Technologies Management's discussion analysis, issued this morning and available on CEDAR at www.cedarplus.ca and on EDGAR at www.sec.gov. Forward-looking statements represent Thera Technologies' expectations as of this morning, July 10, 2024. Additionally, today the company is using the term adjusted EBITDA, which is not a financial measure under International Financial Reporting Standards, IFRS, or U.S. Generally Accepted Accounting Principles, U.S. GAAP. Adjusted EBITDA excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions rather than the results of day-to-day operations. Thera Technologies believes that this measure can be a useful indicator of its operational performance and financial condition from one period to another. The company uses this non-IFRS measure to make financial, strategic, and operating decisions. Reconciliation of adjusted EBITDA to net loss is found in our MD&A issued this morning, available on CEDAR and on EDGAR at the web addresses mentioned earlier. Investors can also follow the company on LinkedIn and X and sign up for alerts on TheraTechnology's investor website at theratech.com. With that, I would now like to turn the conference over to our President and CEO, Paul Levesque.

Thank you, John. Hello, everyone, and good morning. I am pleased to be reporting on TheraTechnology's financial results for the second quarter ended May 31, 2024. Today's call also puts us past the halfway point of what is shaping up to be a promising year. As you will hear in a moment, our second quarter was very strong. The top line has recovered and we continue to demonstrate strength on the bottom line. In fact, for the first time in the company's recent history, we recorded a positive net income. We expect these trends to continue. In a mere 18 months, We have delivered financially on what we set out to do. Today's results marked the beginning of a new and profitable journey, sending the important message that we are on track to deliver growth and value for shareholders. This quarter, we witnessed a return to revenue growth with a reverse trend from what we saw in the first part of the year and as compared to the same period in 2023. Moving forward, and now that inventory levels have returned to normal levels, we expect sales for the second half of 2024, which is typically our stronger period, to be more in line with demand. In addition to reporting $22 million in revenue, we recorded $5.5 million of adjusted EBITDA this quarter, which is a solid 25% margin. Moreover, the company has realized an impressive $12.3 million in adjusted EBITDA over the past four quarters. This achievement paves the way for our full-year objective. With these positive indicators in hand, I can confidently reaffirm our guidance for full-year 2024 revenues between $87 and $90 million and an adjusted EBITDA in the range of $13 to $15 million. This puts us in a strong position to realize new opportunities for business development that complement existing business drivers. With that, let's now take a closer look at our engine of growth, Egrifta SV. Egrifta SV remains our priority brand, with performance metrics showing consistent growth. Momentum in new prescription growth continued from Q1, marking a year-to-date increase of 13% in new enrollments, and 16% in unique patients compared to the same period last year. Moreover, we are tracking the number of unique prescribers, which is also steadily increasing. As a result of the significant noise around weight loss driven by GLP-1s, our customers expect to see an increase in patients in the future with central adiposity who are seeking treatment. A GRIFTA-SV is the only FDA-approved medication to treat excess abdominal fat, specifically in people with HIV. We are actively leveraging these new market dynamics so that the GRIFTA-SV will be uniquely poised to benefit patients and shareholders. Let's turn to the FH formulation of Tesamorin for a moment. During our last earnings calls, I shared information on the type A meeting with the FDA and some details on the important feedback we received on our file. We are still addressing the FDA's questions and will provide an update upon resubmission. The FDA has confirmed a four-month review. Now on to oncology and our ongoing Phase I clinical trial of pseudocytaxels and dusortide that were lead investigational PDC candidates. Our team presented a poster at ASCO in Chicago demonstrating signs of long-term efficacy in a manageable safety profile of pseudocetaxel xanthosortide in patients with solid tumors. In an updated analysis from parts one and two of the trial, pseudocetaxel xanthosortide induced durable disease stabilization up to 45 weeks, lasting beyond treatment completions. The results suggest a unique multimodal mechanism of action distinct from other cancer therapeutics. Additionally, investigators observed an early efficacy signal primarily in female cancers with 7 of 16 participants or 44% achieving a clinical benefit. In March, we announced that the study's medical review committee had deemed the dose level safe in the first cohort of patients in Part 3 of the trial. I'm very pleased to confirm now that we have fully recruited for the second cohort of the study. Six patients have completed the first treatment cycle at the higher dose of 2.5 mg per kg and are evaluable for safety. In parallel, We are engaging with potential partners for additional developmental steps around TH1902 and our overall Sort 1 positive technology platform. To no surprise, many of our contacts are eagerly awaiting results from Part 3 of the trial. There is also a keen interest in the science we have advanced with three new PDCs using the same payloads as ABC technology, such as Exaticat. The momentum we have generated was palpable at the recent BioInternational meeting in San Diego, where we actively engaged with a number of interested parties in addition to highlighting and pursuing products for acquisitions and commercial partnerships. As the team continues to follow up from this key industry event and other business development activities, it is evident that our refocused commercial position has put us in a position of strength, to achieve our most important objective of value creation for all shareholders. With this, I'd like to turn the call over to Philippe, who will go over the peerage financials in more details. Philippe? Thank you, Paul.