Earnings call transcript Q1 2023

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Operator

Good morning, everyone. My name is Todd and I'll be your conference operator. At this time, I'd like to welcome everyone to Eagle Pharmaceuticals First Quarter 2023 Financial Results. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. reminder, call a today. being As Instructions] this is conference recorded [Operator X, May XXXX.

my the Please to Ms. is pleasure It now turn Investor for Lisa Relations floor Eagle ahead. Pharmaceuticals. go Wilson, to over

Lisa Wilson

This Affairs, on Officer, Welcome Officer, Carl. Medical Scott Chief President Mike for first earnings Investor Eagle Thank Brian are Vice is With Eagle's of you, Wilson, me to Lisa Pharmaceuticals. Executive Financial Cahill; call Greenberg. quarter and Tarriff; Pharmaceuticals Dr. XXXX Chief call. today's Eagle and Relations President

issued morning financial investor and the can This This March release results call for a through eagle.us.com. release Eagle press XX, section detailing of the a press ended this accessed its webcast the of three Eagle months be at XXXX. website

I Reform any by future would be involve risks on management noted and everyone forecasts, call SEC. our started, statements today's Private conference anticipation today, remind to events defined filings release the as Eagle statements company's performance future express of press uncertainties regarding on as with and get a expectations, that that like Act. Securities the including morning's available or may These we belief, to projection, in forward-looking made information those and Before are considered and Pharmaceuticals based statements forward-looking this the intent Litigation

obligation be those call. of or statements telephone replay are intent A the in projected after forward-looking as available from update results Actual disclaims required shortly completion statements. statements, materially any except forward-looking Such Pharmaceuticals law. differ not guarantees performance. these of will this may by Eagle specifically forward-looking future to

XX on will press today's our be in website information available The release. dial-in eagle.us.com. the archived find at webcast days for You'll

filings. XXXX. press those discussed, listening the this to then, company's recent replay topics who releases related the most SEC Since of archive X, Eagle so recorded held to benefit to please webcast, the on have may announcements and be May the made For call was or may refer

In call GAAP. with we considered during financial the with a in will this conference financial in addition, financial GAAP. but addition in accordance measures as be non-GAAP not U.S. non-GAAP to measures prepared addition information prepared in for substitute accordance These be to discussing information should

these measures most description GAAP set these forth measures at eagle.us.com. non-GAAP to A our release our financial reconciliations measures and non-GAAP financial available website of comparable in of earnings press their on are

And over call with to President turn Tarriff. that, the CEO, and Eagle's Scott I'll

Scott Tarriff

thank call Well, And you thank Good our today. you, Lisa. morning, everyone. joining for

strong year in on had year the in XXXX, well-positioned Following outstanding XXXX. for from Eagle we another remain

do we well from as morning. can you strong Our to the products earnings see continue announced this

We expect acquisitions. momentum of from this potential longer-term pipeline our to and our come growth continue

$X.XX first For income and was basic share. basic or per of earnings quarter diluted the was share non-GAAP per our XX.X per million, million adjusted $X.XX or and and diluted net $X.X XXXX, $X.XX

in XXXX Our XX.X investments much which future adjusted achieve to for our our first versus clear EBITDA are the full guidance, be difference non-GAAP positions of the earnings well account of 'XX expected reaffirmed. was To million we for the us for quarter. making year XXXX. we This

We our much CALXX, our and investing the are of notably advance gap. to products pipeline, support which year-over-year bridges

we With capture potential will infrastructure to synergies we in the through target. able believe already be acquisition commercial a place,

products. Let's look at the

the we surpassing XXXX. recorded quarter net we first the our are for $XX totaled well the million $XX.X full And to sales believe of During year of million. 'XX, on PEMFEXY product way

our as the quarter community of oncology XX%. quarter we pemetrexed that in grown usage the to-date, last recall, exited now estimate United with commercial, you X% on year As the feedback, the of second internal we Based and has in States. to of data share a customer non-XXXB share fourth that

than October greater eliminated XX%. on the at profit $XX throughout growth royalty first an you recall, beginning We in important million. on that could PEMFEXY and believe million of continue payment end the the share a the a and $XX 'XX exchange be reduced X, as of market PEMFEXY us for asset for current to the of the one-time we royalty remains year thereafter expect QX

So far like decision. looking that is a great

on Bendamustine franchise. Moving to our

of for time, face approximately As pleased in past BENDEKA quarter and to BENDEKA in for December and maintained our market bendamustine is the the first XXXX. we BELRAPZO have discussed providers. that healthcare compared the marketplace. first BENDEKA Since XX% bendamustine be competition It on is performance a X, historically. strong approximately of share the to product time with franchise XX% for the new beginning and continued U.S. Together, patients our 'XX the belief beneficial BELRAPZO that we of

to the BENDEKA. The settlement Dr. applications follows our Reddy's drug quarter, against to settlement we their book the agreement In patents with Hospira Healthcare asserted BENDEKA. with referencing drug Eagle's Accord its listed new related new Reddy's, orange first reached announced application related its Dr. referencing and settlements previously

challenger, not is recent a proposed significant liquid one than which exclusivity contributor several for November to remain settled. formulation which years. into 'XX, now of believe a confident be we powder have more cases existing bendamustine in Other all We for been positions

just Turning BYFAVO in the sales products quarter. products, the and shy net Acacia of now $X of to the first combined BARHEMSYS totaled two million

sequentially and QX BARHEMSYS sales are of product XX% up versus 'XX. BYFAVO Our

their is it solid Although and to a shares showing, grow base, we expect small to this a continue is nicely. very

we J-Code of code facilitating may We access procedures to that important and lasting step which specific broadening is recall, believe week, billing in J-Code establishment a X drug. short this CMS an innovative sedation a minutes sedative for of for XX new acting product as or reimbursement This last effective established unique on you is 'XX. unique for BYFAVO, announced a less. is BYFAVO July the Just

intact. development Our plans go-forward business remain

oncology for intend make and to financial As or and growth. with potentially accretive care space within our use our to to footprint the we've acute stated foundation broaden we acquisition, balance the strong in past, flexibility the an solidify sheet aim our future

a to support to lenders acquisition. working currently potential financing secure also accretive are We with

comments a make me Let the pipeline. few on

acquired a for pneumonia bacterial studies a CALXX, Phase to First, in of severe global addition for including of used first-in-class treatment. X agent care, community the underway antibiotic novel standard treatment

XXX expect countries. XXX enroll centers in We in to patients XX

an of chemical potential Second, new Enalare for respiratory agnostic the depression, community prematurity. entity post-operative treatment by stimulant investigational overdose an apnea developed is one-of-a-kind respiratory being ENA-XXX of drug and

exchange and achieved. As option rest have approximately the we purchase August 'XX of we XX% in of acquired to Enalare in and in stake a reminder, equity an in the milestones investments of two 'XX, paid are Enalare upfront February specified events for

quarter. at with including super seeks in recap, short-term had you as and atrial atrial ventricular patients ventricular rate under filing flutter. of can Third, review approval fibrillation for the is another tachycardia, Landiolol FDA, the NDA we for reduction To see, impressive Landiolol

accelerate of development strength all plan execute existing Our line, of our acquisitions and that namely, three through long-term our product a We to potential future our business, believe on pipeline. we aspects and are is from growth position pipeline to good potential in our the acquisitions, accretive

the With discuss quarter over call our Cahill to first to that, financials. Brian I'll turn Brian?

Brian Cahill

Thank you, morning. Scott, and good

product compared XX.X quarter wholesalers, recorded million PEMFEXY, first were for year. the quarter We $XX.X sales and launch XXXX, prior quarter our our the first to million product. of revenue in wholesaler $XX.X product channel in first were XXXX. delivery sales the our $XX.X vasopressin. of compared direct estimates for in near-term the million of quarter of of $XXX.X customers, in the PEMFEXY product both to to million, on million XXXX million, In was $XX.X Net current compared needs which and XXXX, revenue to XXXX, the net quarter during first QX growing of our total primarily the

continue withdraw and million levels quarter of sales announced XXXX, we in established the the first similar to may the of the quarter higher our decision as we more As customers $X.X the previously pemetrexed product. customer market, and to than capture vasopressin notified share be during market. first from were for of net product XXXX, FDA, Vasopressin, inventory

Our inventory compared net been And increased quarter of XXXX, $X.X in product in on X.X the time. first to net million XXXX. depleted QX sales in hand quarter first sales million, of $X.X XXXX. of $X.X million to RYANODEX at XXXX, to product million were BELRAPZO, this has compared QX

the compared expect products, $XX.X acquired included and quarter. in the to primarily of XX% of was was was of year U.S. year revenue TREAKISYM amortization going XX% result newly million in to we compared assets intangible forward. The prior quarter. of million decrease revenues the the royalty BYFAVO, in the earned prior in which margin will continue BENDEKA the Gross sales in inclusion XXXX Japan. on Royalty royalties QX QX $XX.X to BARHEMSYS XXXX, related and

CALXX on front, CMC pediatric and attributable expense the $X.X R&D $X.X increase studies. XXXX. and quarter This million first in of largely QX for XXXX, to continuing million and BARHEMSYS to of trial the clinical were spend is On compared BYFAVO expenses program

items, was and R&D first non-recurring XXXX quarter $X.X other Excluding stock-based compensation non-cash non-GAAP million. and expense

quarter to offset $X.X in in $XX and $X in in the increase driven of were spend external was first salary XXXX. by SG&A This of million, by other $X expenses XXXX sales million in costs. and the related lower million compared $XX.X first costs, personnel marketing quarter partially million legal million related

million. XXXX and was non-GAAP compensation first items, $XX.X stock-based other and expense Excluding non-recurring SG&A quarter non-cash

year Net diluted the of million XXXX was $XX.X or $X.XX $X.XX or the the basic per basic compared of per net compared per million basic and non-GAAP share $X.XX X.XX of or or $XX.X $XX.X quarter net income and share net per income and $X.X $X.XX in income income to Adjusted $X.XX million for per quarter. million quarter. in first diluted per for non-GAAP basic adjusted quarter of the first per share diluted diluted year prior prior $X.XX was to XXXX and share

million non-GAAP for adjusted Our was XXXX. quarter $XX.X first the of EBITDA

measures, to our table full release. earnings the comparable press end the of non-GAAP please most of a reconciliation GAAP For see at the measures

XXXX, receivable $XX.X As in debt. $XX.X cash had outstanding million of net $XXX in and accounts in XX, the million equivalents, March cash million company and

ahead. operator that, for open questions. please please call the ask go to With the I'll Operator,

Operator

Thank this for we you. the [Operator At floor questions. Instructions]. will time, open

William from question Blair. Tim with first comes Our Lugo

Lachlan Hanbury-Brown

Thanks and on quarter. Hey taking for guys, on is the question for congratulations strong the Lachlan Tim.

in where the delivered. provided the the just and on On the that on rather then, that earlier curious financing And announcement wait deal check guys included than everything now that, consideration guidance year Brian rationale fully wanted sealed for in the any for [indiscernible]? the securing stage, signed, to announcing are just and if is you you for until for

Scott Tarriff

All right. Thanks question. the for

up actions lenders. up me it. right the hard of of we that potential actions take But quarters just about very It's sign and selective very what We're as in the now. find for deliberate are we number a And speaking acquisition we the development We've we our are the aggressively an just whitespace seriously. been Let opportunity. just simple. working about at lining the to We're pick something And we can a business was M&A forward moving as do. and now. this

So we're practicable. transact in as a soon as position to

anything In the do you terms of have to guidance, Brian, add?

Brian Cahill

Sure.

But over not have and of in that naturally, contemplate a of guidance our those integration the does Our any investigational since completion a work we've doing been M&A. G&A year. sliver for

Lachlan Hanbury-Brown

loose I that sales the couple deal ahead helpful. should you of guess, quarters be sort for field? of of out be before what Or of the team with of let you Thanks. And to access That's launch spending land gain a take we Are trying curious will it sort they Scott, immediately? into timing. to the Yes. the about PDUFA. planning sort expecting

Scott Tarriff

going starting the pleased that probably Yes. on with isn't to we most Depending That's a to so approval, summer into the could the timing considering summer handle into the approval that an months, up and products. drug launching a it, the the the especially with wind get we're way we're Acacia of effective point. two happening traction with be great

this we last And small full growth Again, the full get really picked the Acacia in but territories It's that in base, quarter. was and don't anything the we've XX% up first want launching two quarters landiolol. in the the everybody way, only had to the you products, strength. the

in a better the trying middle with couple a Acacia through of bit, not more summertime. launch products probably little and something quarters to So the waiting get off we're

Operator

you. Thank

Our Folkes Fitzgerald. question comes Cantor next from with Brandon

Brandon Folkes

taking on strong congratulations for and thanks questions very my Hi, quarter. the

is be talk about we Let any XXXX? me cadence not behind lines, rest us like here the PEMFEXY. may well? the of think arbitrage of in firstly, year, And sort How 'XX about time those on the Can as for seems well benefits one any of the along in you should here. quarters then XQ generic that pretty

that So thinking? fair just add-ons? [Indiscernible] is

Scott Tarriff

Yes, Brandon.

in continue encouraging. now for My are is see guess really right to really first just million levels. based in expect, the year going we're now. the watching customers in PEMFEXY pretty to that pleased shy year $XX shaping too at will all the we million, So is trends looking spent number the to last really more for we to what ins where that profit. million just to and is good. had probably seeing is sell about How X% numbers, unfold to that $XX the predict goes, inventory just we we of than that high and from relative XX% million buy up be QX that QX, forecast we difficult stated to would and you us $XX is -- pretty outs wonderful the how pricing of But our in our sold is, XX% with we very There's speaking last We're grow. back today looking darn pretty it's of good. just $XX $XX this can't all share predict it always the year, to running, 'XX going and is we on right year's But as now million throughout

just continue grow. pleased to good to launch is couldn't So going relates to is PEMFEXY, year place as the it and going. pretty the that we're more way for our expectation be the with shares And

Brandon Folkes

kind BYFAVO. very field? feedback I BARHEMSYS How where bit Can just changing these to and of sort from time? may color about terms launch think going kind of how provide a normal about we just of type forward, think Great. sort can you Or maybe any of much. provide in Thanks a takes any should we there the of you're should speed of hospital just sales? getting the just you

Scott Tarriff

and The when I that we're asked from you from really a excited question. users tell our physicians were way, those the has thrilled the would acquisition products. the by about we're groups, tremendous year we than nurses here, getting you and about feel we been of patients feedback the from products the more made I'm the two the product, feedback the two ago. Brandon, getting these internally, standpoint, that we're the

products really, know, we far, just share been these goes we expect we're able a doing to a growth a to that wonderful. helps. establish there's ramp in J-Code that be with continue. The quarter, we're trajectory hospital. mean, so XX% through As extremely market to that all I the really in lot the the We're process has pleased And growth just feedback

protected I time to think we're nice a just these going remember, and have are XX, and plenty steady through both ramp going well. have so products early it's time the into we out of

Greenberg, what to physicians we us say short to. We that couple products. the who's with a the about Dr. want hearing closer about speak have comments nurses much and you're Mike maybe the of two with

Mike Greenberg

reiterate Sure, Scott. just the shared. Thank you. to I that like feedback you

been we've medical hearing thing. affairs exactly side, exactly the same, On the same the

meetings and surpasses fact, evidence to we've our in So some into in it. pivotal percolate seen regarding trials. being in data real-world echoes what see published, cases And starting some we're BARHEMSYS, that

the So seemed to BYFAVO and has helping on the providers. delivering rapidly, very affairs care at of at satisfaction this medical really are the this throughput, to are BYFAVO more these accounts and both sedated for patients side, feedback of increase the in health team. well. is a in certain for about team products, least excited point, again, being level on up sales was great alert waking drug to patient's moving that be procedures really their high over some that extent, And was a patient using extraordinary, been the as And the a

Scott Tarriff

is growth where see after expecting after it many the nice steady this quarter would we've project build So several and can next short where and the two we And having like quarter over company quarters going. years I growth quarter say conclusion, just products we're of keep you And period compounds. you solid after relatively been as that in if really just Brandon, these nice a stating, time. quarter, what

and had we year now Fortunately, company of is for rather gives us that quarters doing strong another strong we sell get to just growth. time sell, quarter. of you growth be BARHEMSYS And very 'XX the probably today the you of if the well, products right, another We've going products to start several the that to the our strong that with performance earnings are 'XX, continues significant can foundation These to this and and very BYFAVO. be a build time 'XX. see our by 'XX portion products can

where the about far we're So far, going. year we're so and acquisition, and are strength less pretty at than full recently a pleased we all the having into excited where territories

Brandon Folkes

Right Thanks. move you I on me you're you're for the about on you have the talk trying for do a this clarifying just target right you. now? ready line a imply the does lenders to question with financing, working me. to suitable Thank when for it That's prior that you just acquisition, financing? mean, Or a find fact can target? more move to up are quickly, an that One you question. you the so subject Or are

Scott Tarriff

that As There's working we for a this the talking we sheet, we're and believe just Yes. is much here that, a not everybody focused. have Acacia, just in while, acquired balance can we diligently when very our relative unique that very had. organization with believe step say We other we've to way we're and reduction back, cash our and managed prudently starts infrastructure fact similar take they full more been the trying significant acquisition we've a it that and the we we've Brandon, size cost. very way the that industry the make unfold, our and XX, if we Eagle are situation, there built we and were we in to people in XX to right? XX not And just about convey that to that our to at business than a able can were run about

we into we able really probably the having tremendous situation. amount so large And a more space and to the And in a large advantage can in, if of another in the wherewithal take probably a situation space now, to we a the synergy. right of product, probably accretive than find unique And hospital having synergy two, make ourselves financial -- the that be infrastructure organization. we in bring the take company oncology when bring rather bring it's to one,

on ourselves And positive now, for come based be situation to we opportunity, so together, historical, our of It's those the aggressive, an factors right we take to it. find in we shareholders. we pass having need have can't advantage

And take message here. are very do is, and things Eagle company our this the a time and see take just have all this. we'll so of we able advantage trying into focused, to of how seriously bring But best we're to over unfold we to be

Operator

you. from question Thank Our with come David Piper will [Operator next Instructions] Amsellem Sandler.

David Amsellem

Thanks.

want much Thank expansively Or more hospital Can you. the initial So given more question is, number I the size is just you lot the acquisition you one. about know, in how the that's broadly, you're hospital very landiolol, particular we're more just is the space two about a couple. mainly say. guess the the what the about financial space? just to in still opportunity Number that you can't just here I Do interested focused? you can you this here? think But business? contemplating. pressures So ramp thinking wedded or to and are you think up seeing for But there's a

Scott Tarriff

that. for you, thank all David, of

question hospital second BYFAVO the the the talk about the we your it the and lot then just it's would about mode does, in and have in time of lot once business speaking takes effort. pleased spent We of a now have it we a products acquisition. right bit the And bring first And And approved. question, a more very up as have we're up situation. we're saturated little I ramp. with we that And take first Let's BARHEMSYS situation landiolol coming for. do the that call more because you two launch

shareholders, probably the wonderful business it's then more And so the can the where make room place now to country. same we more I the oncology We space. say Mostly, our at a much is it patients that acquisition standpoint. fall we just have hospital the of so the an business in oncology right a short-term, that would help in oncology we it's but number side think be from space, and would likely in help an the would time, in infrastructure our of

I infrastructure significant a I I oncology can a company explain product bring with mean to a have way amount spending. try probably clearest direct think, oncology a of expense. of can standpoint, a but that we minimal the the now, from can, marketing don't into support right could our lot that additional this, needing without heck I if we of product additional probably large

need to of. so And we take that's the advantage situation

we're the how that's if into oncology. oncology concentrated launch to be do, it the able products we'll goes likely that these will work. right the to space. the So very It'll in question, that the -- are same landiolol more do hoping fortify hospital it'll in side goes. on it's And of see that we what right will it, you just have, type We what But And it's normally see now. to now right? hospital we your side we're be likely ramp way ramp and

Operator

you. Thank

at any We remarks. additional in to have or over for I back time. Tarriff now call questions will this Scott no further queue the turn closing

Scott Tarriff

vision Well, we're the advance Clearly, thank you 'XX. obviously, very look as our plans. solid the in we we a believe We strong year future. call joining We another to everyone business you, think of have we updating really for for forward today. poised

it well. your everybody And see for how you, Thank always, ongoing stay we appreciate Eagle. support as unfolds. Let's and

Operator

for participation. you call. today's concludes your This Thank

may You at time. any disconnect

Eagle Pharmaceuticals (EGRX) 9 May 232023 Q1 Earnings call transcript