NEW YORK, Sept. 2, 2025 /PRNewswire/ --  Average weekly trading volume of approximately 660,208 shares Fund's adviser has more than 50 years of small- and micro-cap investment experience CLOSING PRICES AS OF 07/31/25 NAV 10.76 MKT 9.47 AVERAGE ANNUAL TOTAL RETURN AS OF 07/31/25 NAV (%) MKT (%) One-Month* 1.89 2.38 Year to Date* 2.23 1.32 One-Year 4.46 3.60 Three-Year 10.51 9.98 Five-Year 12.47 13.60 10-Year 10.08 10.33 *Not Annualized Important Perfor ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [6][21] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or a 32.4% margin [6][7] - The company is raising its revenue guidance range by $100 million at the midpoint due to favorable operational performance [6][34] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% driven by increased demand [9][10] - Sales of Nexplanon declined 1% at constant currency in the second quarter, with a 5% decline in the U.S. but a 10% growth outside the U.S. [11][12] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [14][15] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [12][51] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [22] - Volume increased by $90 million in the quarter, representing a growth of about 5.6% [23] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of principal on long-term debt instruments [8][9] - A strong emphasis on EBITDA generation is aimed at delivering over $900 million of free cash flow before one-time costs in 2025 [7][8] - The company is committed to building Nexplanon into a billion-dollar franchise, reflecting confidence in its long-term growth potential [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth despite challenges from the loss of exclusivity of Adazet [19][40] - The company anticipates continued global growth for Nexplanon, with a five-year indication submission to the FDA expected to enhance market potential [13][54] - Management highlighted the importance of VITAMMA as a growth catalyst and expects significant progress in access objectives [20][19] Other Important Information - The adjusted gross margin for the second quarter was 61.7%, slightly down from 62% in 2024, primarily due to pricing pressures [25] - The company expects total operating expenses to be generally flat with the prior year, aiming for $200 million of operational savings in 2025 [26][30] - The company is on track to achieve a net leverage ratio below four times by year-end 2025 [9][41] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - Management confirmed the start of new telehealth and DTC campaigns and an increase in sales force to support VITAMMA [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - Management indicated that the decline in U.S. Nexplanon sales was due to a combination of purchase timing and underlying market pressures, but expressed confidence in growth moving forward [50][54] Question: What impact might tariffs have on margins in 2026? - Management stated it is too early to speculate on tariff impacts for 2026, but noted that the EU is the largest import exposure for the company [58] Question: How should we think about free cash flow conversion and one-time items? - Management expects free cash flow to grow in line with the business, with a continued reduction in one-time costs [61] Question: What is the status of the 6219 endometriosis program? - Management confirmed the discontinuation of the program due to lack of efficacy signals [86] Question: Will the FDA update the real-time release study for Nexplanon? - Management is working closely with the FDA for appropriate labeling for the five-year indication but did not comment on specific FDA decisions [87]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [11] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [11] - Adjusted diluted earnings per share grew by 16% [4] - Adjusted free cash flow was $26 million, up 6% from the prior year period [5][13] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [11] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [11] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [6][11] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [9][11] Market Data and Key Metrics Changes - The IAS business faced a negative impact of 3.5% from rate and exposure changes, compared to a positive 4.5% in the prior year [6] - Client retention improved year over year to approximately 92% [6] - The company noted a more competitive insurance rate environment affecting renewals, particularly in large coastal property [6] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [8] - The introduction of the Builder Reciprocal Insurance Exchange is expected to support growth in the builder channel [8] - The company remains confident in its ability to maintain double-digit organic revenue growth despite macroeconomic uncertainties [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [9] - The company anticipates organic revenue growth in the IAS business in the mid to high single-digit range for the year [15] - Management expects adjusted EBITDA between $83 million and $88 million for the second quarter [15] Other Important Information - The company paid $123 million in earn-outs in cash during the first quarter and expects to pay an additional $22 million in the second quarter [5][13] - Net leverage increased slightly to 4.2 times due to significant earn-out payments, but the company aims to bring it below four times by the third quarter [14] Q&A Session Summary Question: Concerns about IAS business performance - Management acknowledged the IAS business was below expectations due to project-based headwinds and a negative impact on renewal premiums, but remains confident in the underlying fundamentals [20][21] Question: Cash flow conversion rate targets - The target for free cash flow conversion rate remains between 50% and 70% over time, with expectations for normalization in subsequent quarters [25][26] Question: Expectations for organic growth acceleration - Management indicated that organic growth is expected to build through the year, particularly in the IAS business, as project-based revenues normalize [53] Question: Market conditions in Florida - Management noted that the Florida insurance market is healthier due to tort reforms, but the cost of risk is expected to grow over time due to increasing building costs and climate event volatility [45] Question: Performance of Juniper Re - Juniper Re is performing well, contributing high single-digit millions in revenue on an LTM basis, with significant strategic value for accessing capacity [57] Question: Impact of wildfires on contingent commissions - There was no significant negative impact from wildfires on contingent commissions, as contracts are tied to non-catastrophe losses [78]