Cipher Pharmaceuticals Inc.

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Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Cyber Pharmaceuticals quarterly conference call for the company's fourth quarter and full year 2025 results. At this time, all participants are in a listen-only mode. Following today's presentation, instructions will be given for the question and answer session. If you require operator assistance at any time, you may press star zero. As a reminder, this conference is being recorded today, Friday, March 13, 2026. On behalf of the speakers that follow, listeners are cautioned that today's presentation and the responses to questions may contain forward-looking statements within the meaning of the safe harbor provisions of the Canadian Provincial Securities Laws. Forward-looking statements involve risks and uncertainties, and under-reliance should not be placed on such statements. Certain material factors or assumptions are implied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. For additional information about factors that cause results to vary, please refer to the risks identified in the company's annual information form and other filings with Canadian regulatory authorities, except as required by Canadian securities laws. The company does not undertake to update any forward-looking statements. Such statements speak only as up-to-date made. I would now like to turn the call over to Mr. Craig Mull, interim chief of the company. Please go ahead, Mr. Mull.

Good morning, and thank you for joining our call today. Before I begin, I would like to remind everyone that all figures discussed on today's call are expressed in U.S. dollars. unless otherwise specified. CIFRS 2025 fiscal year was one of considerable growth with a more than doubling of our revenue and earnings in comparison to the most recent full fiscal year prior to our acquisition of the U.S.-based Natroba business. Since acquiring the Natroba business in July 2024, the business has performed above our expectations. Sales from Netroba and its authorized generic, Spinosad, were $7.4 million during the fourth quarter of 2025, a 14% increase over sales from the same quarter last year of $6.5 million. Sales from Netroba and its authorized generic, Spinosad, were $30 million for the full year 2025, compared to $12 million for the five months of 2024, during which we owned the business. Additionally, the Natroba business continues to have strong profitability with a gross margin percentage of 83% during the 2025 fiscal year. This strong profitability was a driver for the adjusted EBITDA from the Natroba business of $17.4 million for 2025 fiscal year which contributed to our total combined business adjusted EBITDA of $28.1 million for 2025. Cypher's base business in Canada continued to be a reliable source of revenue and earnings overall, with $20.5 million in revenue for the full year 2025 compared to $21.4 million for 2024. and adjusted EBITDA of 10.7 million in 2025, compared to 10.6 million in 2024. Our base business experienced year-over-year gains for almost all products in its portfolio, led by Epirus. However, these gains were offset by reduced licensing revenue earned on Cypher's products that are marketed and distributed by commercial partners in the U.S. Our most recent full fiscal year prior to the acquisition of the U.S.-based Netroba business was fiscal 2023, during which period CIFR had $21.2 million in revenue and $12.7 million in adjusted EBITDA. Whereas in the first full fiscal year following the acquisition of the Netroba business, fiscal 2025, Total revenue was $50.5 million and adjusted EBITDA was $28.1 million, representing an increase in revenue of 138% and adjusted EBITDA of 121% compared to our pre-acquisition revenue and adjusted EBITDA. Our earnings continued to translate almost directly to free cash flow, providing available funds to deleverage the business During 2025, we made a series of repayments on our revolving credit facility, totaling $35 million, reducing the outstanding balance of our credit facility to $5 million at December 31, 2025. This represents a near-full repayment within 18 months of the $40 million drawn on our revolving credit facility to partially fund the acquisition of the Natrova business. This is an achievement not many other companies can say that they have reached, which highlights Cypher's strong cash generation and disciplined approach to capital allocation. Our CFO, Ryan Mailing, will provide a detailed overview of our financial results following my commentary. I'd like to spend my remaining time providing an update on our business development activities which we are very active in and where myself and along with many members of our team are focusing on a significant amount of our time. We have four distinct strategies ongoing at the moment to drive shareholder value and grow our business. Firstly, invest in the Natroba business and our U.S. operations. Secondly, we're looking for acquisitions or in-licensing of complementary products particularly for our U.S. platform. We're looking for Health Canada to approve and launch, and we will launch Netroba in Canada. We are very active in discussions and negotiations with out-licensing partners for Netroba globally. Then lastly, we're viewing possible acquisitions of strategic value. And I've referred to this particular segment of our growth strategy as opportunistic acquisitions. The first strategy of investing and building upon the Natroba business and the U.S. operations to position it as a platform for further growth includes the launch of a direct-to-consumer or DTC sales model to implement our existing sales or supplement our existing sales approach. We believe Natroba is well-suited for this model. Much work has gone into the development of the DTC sales model, and just recently, within the last week, we have launched this DTC platform. Those in need of an effective treatment for head lice and scabies can now go to natroba.com to connect directly with a healthcare professional to determine if they qualify for a prescription for Natroba. If qualified, our platform will streamline the process to obtain a prescription, efficiently adjudicate a claim, and provide a convenient local pickup or delivery option to consumers. The strategy also includes partnerships with retailers to ensure Netroba and Spinosad is adequately stocked in states and city centers across the U.S., so it is available through this platform. We are excited about the launch of our new DTC strategy, and expect it to provide an efficient way for those in need of an effective treatment for head lice and scabies to obtain a prescription for our product, Nitroba. The second area of our business development strategy is the pursuit of acquiring or in-licensing complementary products which can be directly commercialized through our existing U.S. and Canadian commercial infrastructures, particularly our well-established U.S. sales force. We are currently active in discussions with various parties and we continue to progress these discussions as well as explore additional opportunities. As we have said previously, although we continue to pursue various opportunities, business development activities do take time and the opportunities may or may not come to realization. We will continue to provide updates in this area. The third strategy, is that we're pursuing launching Natroba in Canada. As recently announced on January 28th, Health Canada accepted for review our new drug submission for Natroba. This puts us one step closer to providing Canadians with an effective single treatment option for head lice and scabies. And we believe Natroba will fit an unmet need in Canada for a highly effective treatment. We expect to receive Health Canada's decision with respect to its review of Natrova by the end of 2026. We will continue to provide updates as developments occur with Health Canada's review process. The fourth strategy we are undertaking is pursuing out-license opportunities for Natrova globally. We continue to believe there is a high unmet need for a highly effective product like Natrova to address both head lice and scabies indications in other territories globally. However, as mentioned on previous calls, we believe it is important to find the right fit with our out-licensing partner for Entrova, and as a result, this strategy is taking time. Product pricing in territories outside of the U.S. is an important element we must consider when finding the right fit for out-licensing. With that being said, we hope to provide exciting updates as developments in this area occur. Fifth, and lastly, as part of our strategic plan for growing the business is evaluating and pursuing company acquisitions which may have strategic value to Cypher. We believe that Cypher would benefit from additional size and scale, including its pursuit of the business development strategies I previously mentioned. Accordingly, acquiring companies that would add to our size and scale, as well as provide other strategic benefits, has also become a focus of our strategies to drive shareholder value. Accordingly, we are actively sourcing, evaluating, and pursuing company acquisitions that achieve these objectives. We look forward to providing updates on this area of our business as we progress. Thank you again for joining us here today, and I look forward to answering questions after our prepared remarks. I will now pass the call over to our CFO, Ryan Mailing.