Good afternoon, and welcome to the Cumberland Pharmaceuticals' Second 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 one year from today's date. I would now like to turn it over to Molly Aggas, Account Supervisor at The Dalton Agency, who handles Cumberland's Communication. Molly, please go ahead.

Hello, everyone. Good afternoon. Thanks for joining today's call. Earlier this afternoon, Cumberland issued a press release announcing the company's financial results and operational update for the second quarter ending June 30, 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 company 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, 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 downturns, 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 as well as 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 the information shared on this call could be considered current as of today only. Please remember that the company is not 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 several references to Cumberland's marketed brands. Full prescribing and safety information for each brand is included on the individual product websites, 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 today. If you have any questions, please hold them until the end of the call. At which point, we'll be happy to answer them. With that overview, I'll turn the call over to Cumberland's Chief Executive Officer, A.J. Kazimi.

Thank you, Molly, and good afternoon, everyone. We do appreciate you taking the time to join us today. We'll share how the first half of the year has gone. On today's call, we'll provide both the company update as well as a review of our financial results for the second quarter of 2023. So let's get started. I'm pleased to report an overall successful second quarter and first half of the year. In the second quarter, our team worked diligently to advance our business as the operating environment continued to slowly improve from the pandemic and post-pandemic challenges that we've been facing. Revenues for the second quarter this year were $10.9 million, up 6% over the same period last year and up 18% sequentially from the first quarter. Operating expenses were down for the second quarter in a row, and our gross margin continued to improve to 86% for the quarter. We also delivered positive earnings for the second consecutive quarter, growing adjusted earnings and $3.8 million of cash flow from operations during the first half of the year. Moreover, there were many positive developments during the quarter. In June, we launched our newly expanded oncology sales division to support our Sancuso product. It's the first FDA-approved transdermal prescription patch to help oncology patients tolerate their chemotherapy treatments and has been contributing to our business since it joined our portfolio last year. We're also completing the transfer of the products manufactured to a new facility. Following FDA approval of that site, we're now planning for the first supplies of Cumberland package product to be manufactured there over the second half of the year. Meanwhile, as of July 1, the transition of RediTrex to Nordic Pharma is largely completed. In May, the FDA approved expanded labeling for our Caldolor product, an…

Thank you, A.J. We support our portfolio of FDA-approved medicines through a national sales organization that's comprised of three separate divisions. Our hospital group calls on key institutional accounts across the country, while our field sales division covers select office-based physicians. During the second quarter, we expanded our oncology sales division to increase our efforts to deliver our newest brand, Sancuso, to cancer patients, helping them to better tolerate their chemotherapy treatments. I'd like to offer an update on each of our major brands now. I'll start with Vibativ, 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. We continue to work on improving Vibativ's sales performance with updated marketing and sales strategies that feature new initiatives to increase awareness of this important potentially life-saving brand. During the second quarter, we were pleased to see the growing sales of Vibativ in response to these new efforts. Moving next to Kristalose. Our prescription strength laxative, packaged in a convenient premeasured powder dose that dissolves very quickly in just four ounces of water for a clear taste-free and grid-free solution. We continue to support Kristalose through our field sales force as well as two successful co-promotion partnerships, and it continues to be our largest selling product. We have found that the brand performs best in states where we have Medicaid coverage. New York recently added Kristalose to its Medicaid formulary, and we are implementing a special initiative to increase our presence and share of voice in that state. We believe that this new coverage is contributing to the increased sales of the product. Turning now to Caldolor, which is our injectable ibuprofen for the treatment of pain and fever. We -- in May, we announced that the FDA…

Well, thank you, Todd. Before we turn to the financial report, I'd like to provide an update on our international activities. We continue to support several international partners in their efforts to register our brands in their countries during the second quarter. PiSA Pharmaceuticals is preparing their submission for the approval of Caldolor in Mexico. Tabuk Pharmaceuticals is updating thereby that of approval in Saudi Arabia with new manufacturing information as they plan to introduce the product into the Middle East. DB Pharm, who's our partner in South Korea distributing Caldolor, has now also submitted for the approval of Vibativ in their country. And our Vibativ partner for the Chinese market, SciClone Pharmaceuticals, has continued to respond to the regulatory inquiries there as they seek approval for Vibativ in their country. We are awaiting the approval of these four initiatives, and we look forward to the launch of our products in those countries. With that international update, I'd now like to turn it over to our Chief Financial Officer, John Hamm, to review our second quarter financial results. John?

Thank you, A.J. For the three months ended June 30, 2023, net revenue from continuing operations were $10.9 million, an increase of 6% over the prior year period and 18% sequentially from the first quarter of 2023. Net revenue by product for the second quarter of 2023 included $4.1 million for Kristalose, $2.2 million for Vibativ, $1.9 million for Sancuso and $1.2 million for Caldolor. I'd like to note that net revenue for the quarter was impacted by an unusual amount of Sancuso deductions associated with the product's transition. Therefore, we continue to believe that our performance is best evaluated on an annual basis. Total year-to-date net revenue were $20.1 million. Year-to-date, product revenues totaled $8.4 million for Kristalose, $4 million for Vibativ, $3.8 million for Sancuso and $2.2 million for Caldolor. We also favorably settled the outstanding litigation we initiated to secure $1 million in milestone payments associated with our Vibativ product. As a result, we received the $1 million, which was recorded as other revenue during the second quarter. Turning to our expenditures. Total operating expenses for the second quarter were $10.9 million compared to $12.1 million for the prior year period. Year-to-date expenses totaled $21.6 million. Net income for the quarter was $0.9 million. And when the noncash expenses are added back, the resulting adjusted earnings were $2.3 million or $0.16 a share. The year-to-date adjusted earnings were $4 million or $0.27 a share. Both net income and adjusted earnings have improved significantly over last year. Also, please note that the adjusted earnings calculations do not include the additional benefit of the points of the $0.5 million cost of goods for Vibativ and Sancuso during the quarter. Year-to-date, the benefit is $900,000. That inventory was received as part of each product's acquisition, so total cash flow from…

Thank you, John. So overall, it's been a successful first half of the year. We're particularly encouraged by the recent growth in our Kristalose and in our Vibativ business. While Caldolor's performance has been steady, it has been good to see the growing body of evidence that's demonstrating that it's a safe therapeutic option for the treatment in fever, of pain, in nearly all ages, now including infants. We're also encouraged by the progress with our ifetroban clinical studies as we continue to progress therapeutic solutions for unmet medical needs. And finally, we're excited about the expansion of our oncology sales division and the opportunity to further help cancer patients. We'll continue with our strategy seeking to maximize the potential of our commercial brands, progressing our pipeline and also pursuing select acquisitions. Now let's open the call to any questions. Operator, please proceed.

Ladies and gentlemen, that concludes the company's presentation, and we will now open the call for any questions. [Operator Instructions]. : :

Well, thanks, everyone for joining today's call. We do 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 with you and hold such a discussion. 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 on Cumberland's website. I would like to thank you for your participation. You may now disconnect.