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spk_0: good morning my name is julie anne and i'll be a conference operator today at this time of like to welcome everyone to bravo health care's que for twenty twenty one results conference call and audio what cast all lines have been placed on mute to prevent any background noise after the speakers remarks that will be a question answer session if you'd like to ask a question during this time simply press star followed by the number one on your telephone keypad if you'd like to to a question please post or one again thank you jesse ledger president and ceo you begin your conference
spk_1: great big you good morning everyone in thank you for joining or call today on a par with me this morning from rubble is mary jane birkin rebels vice president and chief financial officer the two kitties brothers vice president secretary and general counsel it's warnings comics reference to a presentation on our website that should be viewed concurrently if you're not downloaded this presentation i would invite you to do so now by visiting mirabelle healthcare dotcom and scrolling down to the bottom of the page you can and click on the link before we begin i'd like to remind everyone that some of the statements made during the presentation may be considered forward looking the company cautions investors that results of future operations may differ from those anticipated we ask you to to review the cautionary statements and other information contained in the copies filing on seat are including the company's que for and four year twenty twenty one financial statements and then dna and the annual information form for fiscal twenty twenty one there were filed today which identify certain factors that could cause actual results to differ materially from those projected and any forward looking statements made during the call copies of the annual information form another filings are available online the bravo business both diversified commercial product portfolio of over twenty products we are continuing to see organic growth of our key other brands to marketshare expansion and of also recently launched or anticipate launching in the near future new products both in canada and international markets are existing business has a proven track record is well positioned for continued growth or financial results for the year and are strong cash position demonstrates resiliency of our business in the face of the coven eighteen pandemic despite the challenges posed by the evolving in eighteen pandemic are diverse business remains well positioned for growth and we continue to pay down our death on a quarterly basis or commercial business segment continues to grow organically through the results are efforts of our commercial sales and marketing team the busy this business segment contributed eleven point eight million dollars or sixty seven percent of total revenue for the fourth quarter of twenty twenty one march riki promoted products blessed and cambria and psu backs can new to demonstrate year over year prescription growth and generated a point eight million dollars in revenue for to for overall our commercial segment represents sixty seven percent of our total revenue for fiscal twenty twenty one all of our promotional offers remain focused on blessed and cambria sue backs and neovasc however the remaining mature products in our commercial segment highlighted on the next slide continue to contribute and a meaningful way for bottom line is are products of by the last market expressivity to their competitors or are not in our core therapeutic for chris areas during the quarter the revenue in our licensing and royalty segment was two point seven million dollars or fifteen percent of our total revenue royalty revenues generated from licensing of our intellectual property and related products globally under exclusive licensing agreements i wrote royalty revenue has been negatively impacted by continued reductions in net sales of the mobo in the united states has resulted generic competition which enter the market in twenty twenty as well as a stronger canadian dollar against the u s dollar reduce the contribution from certain us dollar denominated royalties dreams we do see continued growth potential for licensing and royalty business as we remain focused on identifying new international partnering opportunities for products in the segment the production and service a segment revenue for the fourth quarter was three point two million dollars or eighteen percent of total revenue sources of revenue in the segment our products manufactured by our facility in eren tobacco or for product contract manufactured from rabo and supplied to marov of distribution partners i will now turn the call up the mary jane will take you through our financial result results for the fourth quarter and fiscal year twenty twenty one
spk_2: thanks jaffe today presentation include references to non i for us financial matters typically adapted total revenue adjusted ebitda in cash value of mountain even as are not recognized under and do not have figured i'd meaning under prescribed an i for us these measures should be considered a supplemental in nature and not a substitute for the related financial information prepared in accordance with i for us the company believe that shareholder investment analyst and other readers find such measures helpful in understanding and assessing the company's financial performance for a description of hammer other defined it is not i fresh measured as well as a reconciliation a be measured to our financial statement please refer to five twenty six to twenty at this presentation which has posted on them or other website as well as management sucks and analysis filed on the dark for your reference fights by theory outlined the products and related revenue stream that comprise he to the company's business segment which are reference throughout the presentation as as the total revenue was seventeen point eight million and sixty nine point four million for the three month and year ended december thirty first twenty twenty one compared to seventeen point three million and seventy one million for the three months and year ended december thirty first twenty twenty the one point six million decrease in a just a total revenue in the current year was due to a decrease of six point seven million of revenue from the like something and royalty business segment and a decrease of in revenue a point seven million in the production and service business segment slightly offset by an increase in revenue a five point eight million from the commercial business segment revenue attributable to the commercial business segment increase during the year ended december thirty first twenty twenty one due to at seven point three million increase in sales of the company's promote a product black thin can be as you back in the back off that by one point five million people failed at the company's mature product the production and business segment revenue decrease in the current near primarily due to decrease in penn think you present and results products down as well as a stronger canadian dollar against the us dollar which reduce the contribution from us to nominate a product revenue streams mainly pants eighty percent for the us market the decrease in revenue in the license and ramsey but the segment during the year ended december thirty first twenty twenty one with primarily due to four point five million production and us him over royalty revenue as a result of a kitten competitor launching a generic version of the mobo and the us during march twenty twenty as last stronger canadian dollar against the u dollar which reduce the contribution from us denominated route string during the current year in addition the comparative year the company received a us one point eight million miles don't he meant net with and is related to the use of says brother intellectual property in japan i just believe even have a three point four million and twenty two point two million for the three month in here ended december thirty first twenty twenty one compared to six point two million and twenty eight point four million for the three month and year ended december thirty first twenty twenty during the current near a five point five million increase and gross profit from the company's commercial business segment met a one point four million decrease in inventory step up expand with more than offset by six point seven million decreasing contribution from the company's license and brown people and segments a one point five million decrease and gross profit contribution from the production and services segment and a one point nine million increase in sales and marketing friends it during the three months and year ended december thirty first twenty twenty one the company repay us two point five million and us ten point eight million of the amortization loan to deerfield reducing if cash value of loans outstanding to us eighty eight point four million since the inception of the deerfield financing on december thirty first twenty team the company have repaid us thirty point one million towards the gear for obama the interest rate for but the amortization mon and convertible though is six at three point five percent the company anticipate making a us two point eight million payment to deerfield this week as that march twenty fifth the company had eleven point four million shared that banning attached to the company the amortization loan or twenty five point six million warrant issue to deerfield at a three dollar and thirty three cents and strike price of which twelve point three million are currently classified as flexible exercise share the company's comparable known may be converted into common shares of the company at the or production at a us to dollar and seventy cents per share conversion rather sheriff code that a dollar forty per share on march twenty two the company's amortization loan and convertible loan mature an outstanding warrants expire on december thirty first twenty twenty four that december thirty first twenty twenty one the company had cash on hand of thirty point nine million with an enterprise value ninety seven point five million jaffe will not continue with our business update
spk_1: they expire jane a good strategy is driven by five components first we are focused on targeted in licensing or acquisition of growth oriented products which leverage the companies in house commercial and scientific infrastructure second we planned to further grow and expand our canadian business with the continued organic growth of our existing products and a commercial launch a nuke products like a to new line extensions of new of isc marched in early january twenty twenty one and the launch of to new pediatric formats blessed and in the last month third our international business continues to grow through our license and distribution partnerships worldwide like our subic steals in europe and korea we've remained focused on business development activities to monetize our international product portfolio fourth we are working on opportunities to leverage the pre capacity of our manufacturing facility and quebec through international partnerships for penza two percent and other contract manufacturing opportunities finally the company hold over one hundred patents globally and has several patent applications pending including new ip for a revised and improved report or formulation of results we continue to develop a strong patent portfolio to protect our products our executive management team has a proven history of successfully completing merger and acquisition and business development integration most of the products in our current portfolio exist because of business development or bd activities and our current management team was involved in sourcing closing integrating and are launching the products that came entities beat he transactions as you can see from this current slide our team has extensive experience that emanate and business integration as well as commercial launch experience both as part of the marble team in a previous rules we have established relationships with a variety of partners worldwide partnering with globalizing and source licensees and distributors is an important component of our strategy for growth and we continue to seek partners for the best fit for promoting our key products our partners are big and small global and regional we know how to work effectively with partners and believe this helps differentiate us for many of our peers thirty back to our commercial business segment sue backs are prescription medication indicated for the acute treatment of attacks with or without bora in adults we launched this innovative and clinically differentiated treatment for acute migraine in the approximately one hundred thirty million dollar canadian market in september twenty twenty according to i qb a data during twenty twenty one over eleven thousand five hundred prescriptions were written with approximately point eight percent of total prescription or trx marketshare achieved as of your and twenty twenty one while we're pleased with the results achieved so far we acknowledge that the evolution of the copa nike pandemic continues to challenge the companies to backs commercial efforts a particular despite the easing of many coven hm government restrictions within canada and the uptake of people receiving koba nineteen vaccinations many prescribers of not resume to seeing patients and purse sun a tree covered nineteen pandemic levels we anticipate the gradual return have been person patient physician visits of it coming quarters will provide enhanced opportunities for patient education and new prescription growth the continue to advance or product pipeline towards comm commercialization earlier this year we launched blessed and pediatric after obtaining health canada approval in august twenty twenty one like to pediatric as indicated for the treatment of seasonal allergic rhinitis and chronic spontaneous urticaria a children as young as four years of age and includes to new dosage formats at two point five milligrams per ml a solution and at milk milligram quick not tablet these new products will have to further strengthen our relationship with allergist dermatologist and primary care physicians who treat allergy and or to carry a patients two of our key growth assets blessed and cambria have continued to grow and both revenue contribution as well as prescriptions during a quarter and spite of copa nineteen impacts relaxed and demonstrated continued year over year growth of total prescriptions are tier ex ante or marketshare plastic key for and for your twenty twenty one tier i x increased twenty percent and twenty one percent over the same period in twenty twenty blessed and year to date prescriptions are growing at a rate three times faster than the entire prescription any histamine marketing canada laxmi que por twenty twenty one trx market share increase to seventeen point nine percent compared to fifty point eight percent for the comparable period and twenty twenty watching captured year of your market share from our number one competitor security or reacted or salesforce is back in the field in interacting with health care providers in person when they can while we believe in person and evidence based interactions with health care providers is extremely important to supporting a brand we will continue to embrace virtual promotional opportunity geez which enhance our salesforce reach in a very cost effective way we expect ongoing yerba your growth and marketshare gains in a prescription any has to be market in a quarter's to come complex them will enjoy market exclusivity canada through october twenty twenty four turning to our other second key growth product cambio and innovative prescription treatment for a cute migraine that can be a is the only prescription and said approved in canada to treat a cute migraine next fast and begins to work in as little as fifteen minutes can be a queue for and four year twenty twenty one tier ex increase three percent and a percent over the compare periods and twenty twenty can be a year to date prescriptions are growing at a rate four times faster than the entire prescription migraine market in canada that's the prescription acute migraine market can be a queue for twenty twenty one trx marketshare what's five percent consistent with a comparable quarter and twenty twenty and cambio also benefit from pat protection in canada to be twenty twenty six slide twenty one highlights how we're expanding the geography is where our proprietary products or commercialized the generating revenue in july marble ireland entered into an exclusive license and supply agreement with as cake chemicals for the right to commercialize to backs in a republican south korea bravo ireland will receive up to one point one million euros in upfront regulatory and self a milestone payments as well as mid high single digit royalties on net sales of sued backs and south korea and revenue pursuant to the supply of finished product the korean ft a regulatory decision is expected in the fourth quarter of twenty twenty two and subject to regulatory approval a commercial launch is anticipated in early twenty twenty three in december twenty twenty wearable ireland entered into an exclusive license and supply agreement to receive that's what a ryan corporation for select you markets primarily in the nordic and baltic regions a ryan is responsible for obtaining and maintaining the marketing authorizations forced to bags and also managed commercial activities for the year keane markets covered under the agreement horrible will earn royalties on net sales of see backs in those territories finland regulatory approval decision which is the first market the to that would be approved and is expected in into to or two three of this year the commercial launch anticipated in the first quarter twenty twenty three obviously subject to regulatory approval morocco and our partner one anticipate that see that will enjoy at least nine years of market exclusivity in the iranians have territories upon approval in february twenty twenty one bravo ireland entered into an exclusive license and supply agreement with the mental age and company for the exclusive right to commercialize the results formula in technology in the united states under the brand met late and kids headlights ruble kit the met laden company manages all us specific commercial activities and rob of ireland earn revenue from the metal later company pursuant to the supply of finished product under this license agreement the month later company commercially launched results in the us in october twenty twenty one or licensee propensity percent in switzerland gabriel pharma launch the product in early point january twenty twenty one and is receiving positive feedback from physicians and patients and two percent is currently available in pharmacies across switzerland admirable earns revenue from royalties on net sales as well as the supply of finished product to which we manufacture and sell it in for and while our business has had to adjust the way we operate in order to deal with colbert pandemic this adjustment has not slowed us down from completing the value creating activities we've set out to accomplish in addition we are hard at work bringing new products and opportunities to our pipeline to targeted business and commercial development opportunities we evaluated over one hundred opportunities and twenty twenty one and progress the number of high potential deals into the term sheet phase we're very excited about the products in our business development funnel and look forward to providing more details once we are in position to do so beyond what i've already discussed in may twenty twenty one we filed a provisional patent application in the united states for a new and improved formulation of our headlights treatment results this is a formulation that was developed internally by our in house scientific team we have now completed sufficient additional development work to file the non provisional patent application for our new result formulation which we anticipate the summit to the patent authorities in the second quarter of twenty twenty two we are in the process of preparing a resubmission for and said two percent increase which is one of the historical markets for the original format and said and look for defiling this ravens were submission also in the second quarter of twenty twenty two that enter form of remarks and we are now please to answer questions that may have with respect to the company it's financial results and it's operations
spk_0: if you'd like to ask the question please press star followed by the number one on your telephone keypad to withdraw your question please post or one again or posture just a moment to compile the and a roster our first question comes from david martin from bloom burton please go ahead the line is open
spk_3: oh good morning or a couple questions the first one your gross margin was quite a bit lower sequentially and year over year i am wondering what contributed to that ah you know it will it be trans issues or i'd do you believe going forward your gross margin will be in the range of were was in fourth quarter
spk_1: by dave yeah thanks for the question to get question is it is there are merely transit but dad mary change you want to address this more specifically for dave
spk_2: sure so so diva a thick as a free business i went to that the commercial business segment for three hide on some one of our mature products where we provide a rail teach with a trip to that the accounting which was not material but decrease the noise in the queue for margin we also had and one of the net sales milestones it's he threw one of our key products so that would have gone through the queue for march and i related to the production service business segment are that second continue to be impacted by for an exchange of you think about the time for when we acquire raw materials many the inputs and twenty two percent are denominated in us are eager i'll answer by the time oh spoke to the p now we see the margin squeeze on on their material side and then of course we didn't have the benefit of be as younger canadian dollar in or twenty twenty one result
spk_3: okay
spk_2: so where where do you expect your gross margin will be in twenty twenty two
spk_3: so what i'll say that they're mature products and up being a smaller portion of our commercial business segments we would see a margin improve our market products provide better contribution margin on the rest of the mature murdered portfolio okay ox improve versus que for or improve vs fiscal year twenty one in improve earth is key for
spk_4: two for older bombs second question what changes have been made to our results the product as a result of the new formulation as it easier to use what he is in a material change
spk_1: i'll take that one yeah it's it's enhanced efficacy and obviously we can't disclose too many details until we get the the final pan application filed but it but it is sir a material change in the efficacy of the product and how it works overall
spk_3: stay tuned for more details went once we're in a position to provide a little more color will do that but it but it is an interesting development
spk_1: my understanding was that it was already equally are more efficacious them competing ah pesticide based products a it is that the case or has been suffering and sales because it's not as a fact of no it is the sales decline is has been primarily breeze as a result of coven eighteen pandemic restrictions and and kids non interacting together on you're right from an advocacy standpoint that all of the head lice treatments are ill as a result has has a favorable profile in terms of the the time it takes for treatment but there's a there's another element to headlights treatment that we've been able to cover off with this new formulation and and that's the part that i i can't really get into too many specifics yet but it isn't enhance with from an advocacy standpoint relative to whether it's pesticide based products or pesticide free products
spk_3: like like results and and other competitors in that space
spk_5: okay
spk_0: that's it for me thanks
spk_1: thanks dave
spk_0: we have no further questions and kill at like ten a call back her to mister judge jesse ledger for closing remarks
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