Good afternoon, and welcome to Cumberland Pharmaceuticals First Quarter 2023 Company Update and Financial Report. This call is being recorded at Cumberland's request and will be archived on the company's website for 1 year from today's date. I would now like to turn it over to Julia Motis, Senior Account Manager at the Dalton Agency, who handles Cumberland's Communications. Julia, please go ahead.

Hello, everyone, and good afternoon. Thanks for joining today's call. Earlier today, Cumberland issued a press release announcing the company's financial results and operational update for the first quarter ending March 31, 2023. The release, which includes the related financial tables can be found on Cumberland's website at www.cumberlandpharma.com. Company management will share an overview of those financial results during today's call. They'll also provide an overall update, including a discussion of its brands, pipeline and partners. Participating in today's call are A.J. Kazimi, Cumberland's Chief Executive Officer; Todd Anthony, Vice President of Organizational Development; and John Hamm, Chief Financial Officer. Please keep in mind that their discussions may include forward-looking statements as defined in the Private Securities Reform Act. Those statements reflect the company's current views and expectations concerning future events and may involve risks and uncertainties. There are many factors that could affect Cumberland's future results, including natural disasters, economic downturn, public health epidemics, international conflicts and others that are beyond the company's control. Those issues are described under the caption, Risk Factors in Cumberland's Form 10-K and any additional updates filed with the SEC. Any forward-looking statements made during today's call are qualified by those risk factors. Despite the company's best efforts, actual results may differ materially from expectations. So information shared on this call should be considered current as of today only. Please remember that the company is responsible for updating any forward-looking statements, whether as a result of new information or due to future developments. During today's call, there will be references to several of Cumberland's marketed brands. Full prescribing and safety information for each brand is included on the individual product website, and the links to those sites can be found on the corporate website at www.cumberlandpharma.com. The company will also provide some non-GAAP financial measures with respect to its performance. An explanation and reconciliation to GAAP measures can be found in the financial tables of the earnings release that was issued earlier. If you have any questions, please hold them until the end of the call. At which point, we'll be happy to answer them. I'll turn the call over to Cumberland's Chief Executive Officer, A.J. Kazimi.

Thank you, Julia. Good afternoon, everyone. We do appreciate you've taken the time to join us as we share how the year has gone so far. As Julia mentioned, during today's call, we'll provide both the company update as well as a review of our financial results for the first quarter 2023. So let's get started. During the first quarter, we continued to face challenges in our operating environment, ranging from workforce shortages at health care facilities, supply chain interruptions, rising interest rates, the overall economic downturn and now the recent banking crisis. Despite these difficulties, our team has been working diligently through these headwinds, and they remain dedicated to delivering our FDA-approved products for the patients who need them while also advancing the development of our new medicines for the future. There have been two important recent developments that I'd like to share with you. First, we expect that Caldolor will be eligible for special Medicare reimbursement under the new no pain legislation. No pain stands for non-opioids prevent addiction in the nation and it was enacted as part of the Consolidated Appropriations Act in 2023. The no Pain Act requires Medicare to provide separate and more favorable reimbursement for non-opioid products that are used to manage pain during surgeries conducted in an outpatient hospital department or in an ambulatory surgical center. This legislation applies to products that are indicated to provide analgesia without acting on the body's opioid receptors. As a result, we understand that the no pain at will affect Medicare reimbursement for Caldolor, our non-opioid analgesic injection product. The act is scheduled to go into effect in early 2025, and we expect CMS to issue the reimbursement guidelines for Caldolor in 2024. Second, we were very pleased to learn that the FDA decided to grant a…

Thank you, A.J. During the first quarter, we hosted our spring national sales meeting here in Nashville. We invited our colleagues from across the country to join us for the planning and coordination of our activities during 2023. At this meeting, we emphasized the need to foster collaboration among our field-based sales, medical and national account teams as they interface with our customers. Recall, we now have 3 sales divisions, one focused on Caldolor and Vibativ for key hospital accounts, another supporting Kristalose with select office-based physicians and our newest who features Sancuso at oncology clinics. We are also working to ensure that our corporate culture, which has been fostered at our headquarters is also communicated to and integrated into our national field-based colleagues. At Cumberland, we are proud to continue expanding our portfolio of FDA-approved products. I'd like to offer an update on each of our major brands. Vibativ is our potent injectable antibiotic product designed to treat certain serious bacterial infections, including hospital-acquired or ventilator-associated pneumonia as well as complicated skin infections. In 2023, we will continue to work to improve Vibativ sales performance with upgraded marketing and sales strategies that feature new initiatives to increase awareness of this important potentially life-saving brand. Kristalose, our prescription strength laxative is packaged in a convenient premeasured powder dose, which dissolves quickly in just 4 ounces of water for a clear taste tree and grid-free solution. We continue to support Kristalose, our largest brand through our field sales force as well as 2 successful co-promotion partnerships. The brand performs best where we have state Medicaid coverage. The state of New York has recently added Kristalose to their Medicaid formulary, and we are implementing a special initiative to increase our presence and share of voice in that market. Moving on to Caldolor,…

Very good. Thank you, Todd. Before we turn to the financial results, I'd like to provide an update on our international activities and our clinical programs. During the first quarter, we continued to support several international partners in their efforts to register our brands in their countries. PiSA Pharmaceuticals is preparing their submission for the approval of Caldolor in Mexico. Tabuk Pharmaceuticals is updating their product approval in Saudi Arabia with new manufacturing information as they plan to introduce Vibativ into the Middle East. DB Pharm, our partner in South Korea, who also distributes Caldolor has now submitted for the approval of Vibativ in their country. And our Vibativ partner for the Chinese market, SciClone Pharmaceuticals has continued to respond to regulatory inquiries as they seek approval for Vibativ in their country. We now await the approval of these 4 key initiatives and look forward to the launch of our products in those countries. In addition to our expanding international activities, we continue to advance our pipeline of new product candidates designed to address unmet medical needs. We're advancing a series of clinical programs to evaluate ifetroban, our first new chemical entity. Recall, we hold the worldwide rights to ifetroban, which has now been evaluated in 1,400 patients, resulting in an outstanding safety database in support of the product. Enrollment continues in our Phase II studies of patients with both systemic sclerosis and with Duchenne muscular dystrophy. We previously closed enrollment in our Phase II study in patients with a severe form of asthma. We then conducted a quality review of the data and clinical sites, close that database for analysis, and we are now awaiting receipt of the top line initial results. Additional preclinical and pilot clinical studies of ifetroban are also underway, including several investigator-initiated studies. Meanwhile, we've recently submitted an application to the FDA for our fourth Phase II clinical program which will evaluate the use of ifetroban to treat patients with interstitial lung disease with FDA clearance, we expect the study to launch this summer. Our plan going forward is to complete each of our company-sponsored studies analyzing the data, announcing the top line results and then deciding on the best development path for the registration of ifetroban, which we continue to believe has the potential to benefit many patients with orphan diseases that represent unmet medical needs. So with that, international and clinical update, I'd now like to turn it over to our Chief Financial Officer, John Hamm, to review our first quarter financial results. John?

Thank you, A.J. For the 3 months ended March 31, 2023, net revenue for continuing operations was $9.2 million. Net revenues by product for the first quarter of 2023 included $4.3 million for Kristalose, $1.9 million for Sancuso, $1.8 million for Vibativ and $0.9 million for Caldolor. I'd like to note that net revenue for the quarter was impacted by a delay in international shipments and an unusual amount of Sancuso returns. Therefore, we continue to believe that our performance is best evaluated on an annual basis. Turning to our expenditures. Total operating expenses for the first quarter were $10.7 million. Net income for the quarter was $0.2 million, and when the noncash expenses are added back. The resulting adjusted earnings were $1.7 million or $0.11 a share. Also please note that the adjusted earnings calculations do not include the additional benefit of the $0.5 million cost of goods provide Vibativ and Sancuso during the quarter. That inventory was received as part of each product's acquisition. As a reminder, our financial statements have been significantly impacted by the Vibativ and Sancuso acquisitions. We accounted for the Vibativ acquisition as a business combination. A total of $34 million in new assets were added as a result of the acquisition, including approximately $21 million in inventory, $12 million of intangible assets and $1 million of goodwill. Due to the amortization of intangibles and the sale of inventory, the value of these assets totaled $16.3 million at the end of the first quarter. The financial terms for the Vibativ transaction included a $20 million payment upon closing in a subsequent million milestone payment. We also continue to provide royalties tied to product sales. Vibativ was our largest acquisition, and I'm pleased to report that since we assumed responsibility for the product in late…

Thank you, John. Earlier this year, we released our 2022 annual report, which includes the financial results and milestones from last year as well as our updated sustainability metrics. We also recently held our Annual Shareholder Meeting. All of the proposals presented in our proxy were approved, including the reappointment of 3 directors to the Board. We look forward to providing updates on further new developments as the year progresses, and we remain focused on our mission of providing branded medicines to support patient care and improve their quality of life. So now let's open the call to any questions you may have. Operator, please proceed.

Well, thanks, everyone, for joining today's call. We understand that many of you prefer a private discussion with management. And if so, please just reach out to us, and we'll be happy to get a call scheduled for you. As always, we appreciate your time and your interest in Cumberland, and we look forward to providing another update in the coming months.

Thank you, sir. Ladies and gentlemen, that concludes today's call. If you would like to listen to a replay of the discussion, please visit the Investor Relations section of Cumberland's website. I would now like to thank you for your participation. You may now disconnect.