Eagle Pharmaceuticals (EGRX) 9 May 222022 Q1 Earnings call transcript

Good morning, everyone. My name is Gretchen, and I'll be your conference operator. At this time, I'd like to welcome everyone to Eagle Pharmaceuticals' First Quarter 2022 Financial Results. [Operator Instructions]. It is now my pleasure to turn the floor over to Ms. for Relations Investor Wilson, Eagle Pharmaceuticals. Lisa ahead. go Please

Eagle's First Thank March will Call. Earnings the Eagle and press With Q&A XXXX. ended call Chief be morning, a Pharmaceuticals' through Scott accessed financial This Brian Executive of eagleus.com. Investor Greenberg, you, Welcome release to at Pharmaceuticals. VP, are the press today's on Dr. Gretchen. Financial Quarter me and call This a Tarriff; for XX, Eagle section the issued session. of Chief release available Officer, XXXX X results and Relations Eco for President during company the Cahill. is detailing the Mike this Investors website Officer, Wilson, months be This Lisa Affairs, webcast Medical can

started, materially obligation A forward-looking call. considered defined to company's Eagle this I express Pharmaceuticals' shortly the forward-looking and telephone completion future forward-looking available call differ these statements. be and filings on by specifically from Eagle conference uncertainties, like or to release Actual those available guarantees not intent noted will after in may Such morning's Reform events would by forward-looking update are may Pharmaceuticals information or on statements as except intent and this projected everyone regarding are with statements, press of including These Litigation those in our replay as projection, statements anticipation to SEC. that Securities be performance. involve any made the management statements statements disclaims that today required law. forecast, Act. of we results performance future future of Before the Private based the forward-looking risks as get any today's a expectation, belief, remind and

on press information today's eagleus.com. website for be will available The dial-in X the find You'll webcast our archived year at release. in

and archived be so was releases refer webcast, the may over discussed, Tarriff. turn For filings. made to topics and X, press XXXX. the to the And Since or most then, replay recent President Eagle may company's Eagle's the SEC Scott to held CEO, this recorded the to please benefit with that, on call of I'll call have listening related those and May announcements who

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

per share of $XX We quarter. build, and XXXX beginning early reflecting delighted We $XX are initial of saw and the history. of the company's great to on during quarter PEMFEXY sales that at $X.XX for continues the we share we best year million to on non-GAAP had over the a net for to strong of million momentum vasopressin million income $XX after our anticipated our earnings tax in well with non-GAAP way the basis,

and plus and a we built and cash PEMFEXY. cash year strong Our stock million in receivables with for $XXX receivable quarter still both a year. as $XX the about only is position for the of 'XX anticipate, We million inventory million Keep have bought $X of vasopressin debt. be will total $XXX If rest out plays of $XX million as in million the very well. we in mind exclusivity back in

Our weeks, seeing PEMFEXY X trailing are XX% significant market vasopressin we the acceptance for for share and in was of marketplace. the

numbers. these with pleased extremely are We

Our company has evolved, has and the Eagle been simplified. story

which options. and cash rather almost profitable, a no gives in many us for debt We significant and company our are enviable of of having situation the size

expected Pharma, to which year half acquisition is lot in look a to of Acacia with June. the the starting have We in close our to pending second forward of

lasting approved sedation nausea As or rescue the the with maintenance XX and new BYFAVO, by that procedural protection. prophylaxis; undergoing indicated less. treatment part to and despite expect first only postoperative vomiting NCEs, for for acquisition, or procedures of the strong Both chemical patent of gain of we and BARHEMSYS, induction products: entities, minutes and antiemetic FDA are in X adults

support NDA track landiolol BARHEMSYS, are into phases. on X the growth AOP this BYFAVO later Health's have to novel filing and on market approval, month. for landiolol, branded going NCEs, We we the And will assuming

generate soon We expect BELRAPZO the considerable cash the if bendamustine PEMFEXY we BENDEKA, time, Japan, from a relatively will developed stream now we diversified of from RYANODEX, to a In to X, short be followed amount line: commercial with anticipated go by vasopressin landiolol landiolol. and X continue approved. revenue product to more and rest in be have and far it products to could X of

we our in assets, the sales our force this of broaden dosing asset, in one have blockbuster and for agent terms pneumonia Phase and our expect are our looking middle study novel, the and the IIb/III potentially acute drugs. we results ahead, leveraging are later a fall. strength experienced treatment with start we this is as CALXX, And greatest traditional antibacterial we to very first-in-class oncology care next fulvestrant, We and antitoxin in skilled and severe year. highly combination footprint of And exciting in in of trial plan the study of Our our spaces. clinical

updated happens We here. you on will what keep

be this what will is build cash focused. debt, on the purchase. to we opportunities spending pipeline. building Acacia We're some This take now on and cash, our mean continue with Eagle? to existing size, both does attention additional cash later we debt So all to and for the combined the of some significant strengthen portfolio cash are and, the we We relative likely will and turn our now pursuing our to year, where that this to

additional objectives pipeline key pursue and marketed our currently to of assets. One opportunities products is for

in already a care. our expand critical progress accomplished in and and oncology far hospital quite have to presence 'XX lot thus made have We enormous

we prudent Our disciplined our had approach to have with and organic led cash growth. our have sheet balance success use to the of

taking by risk is minimal a they and very start this undue further call further to and that, our a plan year, and with opportunities a both the pharmaceutical without finish I'll turn will on debt. advantage intent clearly position. for build the cash or with out acquisition to to the build first to Brian pipeline, expect results. shareholder diversified This arise we regulatory a that take great to the company leave to aspire strong the dilution our We quarter year in With And to diversify what value. discuss strategically company, are we Brian? be over continuing we we 'XX clinical of as pivotal further and Eagle time Cahill as

launches million PEMFEXY. of quarter the $X.X Product Scott, QX the to first first $XX.X were quarter of PEMFEXY morning. the $XX.X to vasopressin sales in $XX.X sales QX quarter XXXX. the 'XX in of was XXXX. million total the in QX Well, good of to of $XX of in quarter million thank and $X.X of BELRAPZO product you, 'XX. during were revenue of compared and million primarily the reflecting $XXX.X first strong compared sales in million the In totaled XXXX, compared first $XX.X million million sales quarter Vasopressin XXXX. first were XXXX, in

also in XXXX of product $X.X were $X.X the primarily RYANODEX driven quarter million for compared during XX% $XX.X TREAKISYM quarter. quarter Royalty and remain on includes First million Orders expiry. XXXX QX quarter sales Eagle's at the of to product royalty of $XX.X was to by will cyclical were by XX% on forward. revenue prior XX% BENDEKA first year XXXX. royalties was revenue royalty going sales QX first million million RYANODEX The of the rate earned SymBio. for compared rate XXXX. in

in costs $XX.X quarter nonrecurring the million and XXXX the development for lower On the and prior is expenses projects. decrease vasopressin to This on first were R&D compared spend of largely front, fulvestrant expense RYANODEX-related to $X.X on year quarter. million attributable

expense Excluding noncash stock-based compensation nonrecurring items, was million. $X.X and and quarter XXXX other first R&D

other to in expenses quarter fulvestrant to $XX compensation the be XXXX $XX.X of stock million. of external that compared This SG&A This and $XX offset first reflects or million close. million on acquisition basis potential expense. non-GAAP increase on first by in the CALXX spend for marketing work related R&D spend not the legal for a a costs between clinical was include million its and expected ongoing products programs. and R&D quarter does partially expect in expenses totaled and This and of should anticipated transaction sales Acacia Acacia for launch to and XXXX was XXXX. costs CMC decrease $XX.X of This the on primarily PEMFEXY. in We

Excluding and XXXX and first compensation quarter items, stock-based noncash $XX.X other was nonrecurring SG&A million. expense

SG&A spend in $XX on our expect be We million to non-GAAP $XX basis and between XXXX million. a

and million period. potential loss these XXXX the do to basic $X.XX $XX.X per of basic in and or net XXXX non-GAAP in quarter $X.XX figures the adjusted million or first with share $X.X contemplate compared diluted income for the per $X.X to prior $X.XX income basic share or or of income net the $X.XX year net basic year not quarter $X.XX share the a prior million of and Adjusted expense the Acacia. mentioned, and compared of non-GAAP per $X.XX period. for per first diluted per per diluted of million was Net was acquisition $XX.X share guidance, diluted R&D As

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

common resulting From XXXX, the $XX.X open $X.X of ask quarter accounts cash through repurchased We of for our million March share common go receivables. equivalents. the in $XX net XXXX, of program. Operator, of million With $XXX.X we the cash receivable $XXX.X March the XXXX our to net plus part As first in call of million million $XXX Eagle's XX, ahead. additional we have and million had million repurchase an August in questions. that, debt, please in outstanding company XXXX, stock cash as In million operator I'll XX, had and $XXX.X repurchased stock. in

question take from We'll Instructions]. Cantor Fitzgerald. from our first Folkes Brandon [Operator

entrance quarter. how for expectations? seeing strong just shape my vaso Maybe market you No I those And up your compared mean of talk the guidance? the Can versus question our does you expected? end the American I do the guess, did XQ. about at guidance expectations, vaso maybe a market Was give on see into the just market. in Obviously, Congratulations pricing play on that the you how first surprise. what given quarter the you're exclusivity? Regent to

for Thank questions. the you

out, expected. as we I would vaso much shaping pretty So say, is

X/X about market, XX% the have We share. of

expected several uptake the we're July as And pleased expect do into the and being really we're we fine. weeks. good The well well, the have in very exclusivity think smart We still continue and . with next have a I is it. the share in middle share as how to numbers. in approaching we're pricing of about to

And Okay. the any exclusivity? then on just comments

a we No, thought. it. I landscape into I and of when fit think pretty them, we scenarios looked pretty in the it's pretty just we're going We think expected and what models the now. of number past and had anticipated what it's it's about -- spoke one we we No, right much of where a number thrilled don't accurately much into that at are we

just And one Okay. more, if maybe I then may.

You color Or just larger, later mention Should taking as we more transformative being maybe didn't acquisitions? that that about about in the debt year. on think for any around comment?

insightful, Brandon. Very exactly. And Yes. yes,

have. take as a we we've you landiolol the and get we as we just stated, of transact we accretive, deals this are on gets later are we right, We'd on to where at -- all X products look the where market -- If products now can the went of from -- filed if with like assuming we we today just historically to approved, from cash market. month X advantage this it'll that take went large

a yields we But to make is have, upon take that, the we're where and the significant, transactions the that's really some that you'll And the us. market taking at our there's it is a accretive of if that million have. pretty revenue at $XX is same debt. cash cash consistently, what value never where this really new focus time, build that's was and by much and transaction doing used hopefully, in the of bigger transaction is, we we is. shouldn't before do debt, if can use and think continue we see since -- us we for little lot forecast, And term you plan great to you with rather what, smaller build levels, we've the no have intent the a on profitability also we we'd at this the our look new reasonable what -- debt, really, company EBITDA the reason we that getting look so building, that and EBITDA this And short shortly. At bit debt And shareholder cash quickly pipeline. the I and transaction a we also some Acacia level And yes. this build

exactly Thank you. right. you're So

quarter. the Congratulations on

Thank you.

The Lugo Tim next Blair. question from comes from William

on couple on Tim, I'll strong launches. is recent This the as I for Lachlan on my well congratulations quarter. and add some guess a

on So leaving similar stable relatively the Has the on a been sort in other you continued dynamics then vasopressin, you end mentioned just share any of PEMFEXY, market of changes quarter. quarter? Or the are the since of kind And And a seeing share? there? the question. increase

You anything obviously seeing March Are have so there those volume demand what Is on relative give what or you limits QX. you in increasing February, commentary the seeing you any you're QX? to far lines? saw for in along can

for Thank Yes. question. you the

And would vaso vaso. say flat, I with start now. good pretty is let's in right shape So

weekly so we was number we'll market. to continue And last The XX%. stable. do the the well that X numbers, fortunately, pretty expect we last been has in share that it's that Our And month. quoted

think I fantastic. that's

think In terms that It's those a right? the PEMFEXY, that And years a marketplace, putting the into through, in files we spent life product great couple and through now in I has advantages all getting going that of that over here. had we product, limited great we're of and accepted cycle with well. it's of and have significant we a pulling process probably invented being distribution. QX the good feedback. those PEMFEXY PEMFEXY will we're think And we

we'll good diversify. our just resources excited very And builds. hopefully, and both continue we a we're in as grow market we're and So deploy just company place. the effectively to about PEMFEXY And the --

Great. guess on follow up. And if could I PEMFEXY, I

of demand sort sort much demand? about the thinking of in how of versus actual Just the it... quarter, was second the patient first the stocking Does quarter

positive. to other important being some fact part that of the And be. is expect some have be So a in had and as pull-through now. of received been and on -- a to good doesn't having track ready-to-dilute it build. We've that's pull-through, is to very of that that continue from product where mixed typical, the continue sales at And launch first happening advantages we're Again, well. we're very, just has we're It's is we you in probably to and the contact build the will are spend stocking. pace. time a period happening it pretty pleased need and the we will very good customer But

Instructions]. We'll take our from [Operator question David from Amsellem next Piper Sandler.

couple. a just So

First, potential us secondly, categories. thinking of the are be BENDEKA your BARHEMSYS can to how or, going specifically, how in that in about that's And the say, your sales other So market your pricing available then you're get What's commentary I should And market? you the there number context generics think just about the thinking of form brain for once BYFAVO of on give product that one. on you I you're the a about to the how of dynamics? transaction. share cheaply legacy evolve refresher wanted expectation Acacia and assets enter agents on how is share in I bendamustine these Any thoughts to helpful pick great. would your the wanted you're acquiring and the

Thank you, David.

marketplace let's the from is patients, you frankly, the over BENDEKA years tremendous see the leap therapeutic we've was, in which can infusion physicians. the the in generics that BENDEKA. a to not being It's market to now. to be we've way just that going to come market the received that quite bendamustine minutes, the So this XX BELRAPZO. down our TREANDA the BENDEKA in that protected TREANDA XX is been better share. When significantly a question. from to of BENDEKA and substitution XX BENDEKA your generic value well start on and it's the just market, is had from think substitution. feedback nurses eventually, product And best by the mind, and, market, takes It's clearly a minutes and with about of

think 'XX to with that recent I settlement have. goes out the it we

have years BENDEKA. of we many enjoying So

happening. going many it's to a believe that have we'll I to middle switching patients of XX% everything we just really the go keep and cycle. hard of that say up back again? TREANDA. about are are the we probably to how worried market. XX wind we in from be their that to And switch patients been reconstitute seen far question that XX to users consistent that's and to would thus to going Certainly, people the going We've they saying that away and major the see a from we've really to minutes to, the BENDEKA So XX%, generic that, hard is, believe it's It's speak what's institutions consistently

So heck frankly, BELRAPZO the And quite are, we and sales be BELRAPZO. as more good think feel case, pretty change. that just of has we long-term to the value right, TREANDA, of don't will lot supply. and if have we prefer BENDEKA BENDEKA, that selling the people we'd wasn't I same than force BELRAPZO about a because selling And that's going label a our

Second thus with we're to the going assets foundation the we that, to I made that the of team team sales do the acquisition. Acacia has think and why on well laid far, our Acacia,

We think haven't yet those are. we where projected products

I of I perceive a we that to DCF at think a will think pretty we say line. the it's little product that be what discount But too steep bit to early. purchased assets we the

to I X pretty recall, about heavy market those bit $X are combined If little have billion. we're those we get value the Just products of lifting to of confident. a numbers. But

XX% about mind in pricing but And sales they're that products. BARHEMSYS, on of peak you for lower the peak And care this sales, pretty spectrum. low have we end X markets, acute is and think for those of the the products. They're significant products, BYFAVO priced, get the are so and X we if of the

a make margins we'll still of that believe through the volume. money products. The are on we good So lot our very

so force tremendous they're thus products. and think with the to we're rather both improvements, too that we right laid those do along And beneficial. just not that we're And going far, has with products label, sales concerned have well groundwork Acacia two with our really messaging, -- the

additional no turn or Scott And I time. will we to remarks. further any Tarriff have questions now appears back at closing it for the program this over

again you for call thank Well, joining today. our

We we our cash ahead to foundation in build look to diverse to with deploy wisely have strong growth. as always continue forward sharing sustained do. to the progress look our as we to for a months forward lot a and We you,

with another We providers they year work really with deliver being the to continue hard morning. to you for again Thank patients shareholders, and for need looking to we're our company. and forward the to us provide medicines and value this strong

This for participation. you does today's conclude Thank program. your

a Have You day. disconnect this time. may great at