Financial Data and Key Metrics Changes - The company reported total net revenues of $37.2 million for Q2 2025 and $76.1 million year-to-date, with adjusted EBITDA of $7.9 million for the first half of the year, indicating a focus on operational efficiency [8][22] - Product gross profit for Q2 2025 was $27.3 million or 73.5%, an increase from 70.8% in Q2 2024, while year-to-date gross profit was $57.8 million or 75.9%, up from 73.2% in the same period last year [19][20] - The company incurred a net loss of $2.4 million for Q2 2025, compared to a net loss of $9.2 million in Q2 2024, and reported a net income of $300,000 for the first half of 2025, a significant improvement from a net loss of $12.4 million in the same period last year [21][22] Business Line Data and Key Metrics Changes - Combined net revenues from OPONVI and ZINRALF totaled $10.7 million for Q2 2025, reflecting a year-over-year growth of 55.5% for the quarter and 70.5% year-to-date compared to the same periods in 2024 [10][11] - Zenerlef adoption showed a 6.3% increase in demand units over Q1 2025, with total ordering accounts exceeding 700 by June [11][12] - Oponvi demand units grew by 19% in June, while net revenue grew by 9% over Q1, indicating strong market performance despite inventory adjustments [14][36] Market Data and Key Metrics Changes - The oncology franchise generated combined net revenues of $26.5 million for Q2 2025, maintaining market share in a competitive environment [16] - The transition from a C code to a permanent J code for Zenerlef, effective October 1, is expected to streamline reimbursement processes and improve access across payers [9][29] Company Strategy and Development Direction - The company successfully completed a new financing round, enhancing its financial flexibility and positioning for strategic initiatives [7] - A restructuring of the sales force was implemented to better align teams with product focus, aiming to drive growth in the second half of the year [18][43] - The company is exploring creative strategies to drive continued growth in the oncology supportive care market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive innovation and expand commercial initiatives, supported by strong product demand growth [8][10] - The management noted that while immediate impacts from the J code for Zenerlef may not be seen, it is expected to facilitate reimbursement and adoption in the long term [29][48] - The company maintained its net revenue guidance of $153 million to $163 million for 2025 and revised adjusted EBITDA guidance to a range of $9 million to $13 million [22] Other Important Information - The company entered into a refinancing agreement that includes a new credit facility and the issuance of senior convertible notes, which will strengthen its balance sheet [22][23] - Cash and short-term investments as of June 30, 2025, were reported at $40.6 million [21] Q&A Session Summary Question: Details on the Zenerlef 400 mg transition and Q2 revenue impact - The transition began at the end of Q4 2024, with inventory normalization expected to complete by July 1, 2025 [26][27] Question: Impact of the J code on reimbursement and adoption - The J code is expected to simplify reimbursement processes and improve adoption over time as commercial payers align with Medicare practices [28][29] Question: Zenerlef sales force reorganization and its impact - The sales force was restructured to focus on specific products, enhancing engagement with targeted accounts [33][34] Question: Aponvi demand and revenue growth - The growth in demand was primarily due to wholesaler inventory adjustments, with expectations for normalization in the second half of the year [36][37] Question: Overall share count after recent transactions - The pro forma common share count is approximately 183 million shares [50] Question: Rate on the senior credit facility and cash addition to the balance sheet - The overall rate on the senior credit facility is slightly above 10%, with an expected addition of $11 to $12 million to the balance sheet after expenses [52][53]

Financial Data and Key Metrics Changes - The company generated total net revenues of approximately $39 million for Q1 2025, achieving a record quarterly adjusted EBITDA of $6.2 million and reporting net income of $2.6 million, compared to a net loss of $3.2 million in the same period in 2024 [8][17] - Product gross profit for the three months ended March 31, 2025, was $30.4 million or 78%, an increase from 76% for the same period in 2024, attributed to lower cost per unit due to production efficiencies [16] - Cash and short-term investments as of March 31, 2025, were $50.7 million, with adjusted EBITDA guidance revised to a range of $4 million to $12 million [17] Business Line Data and Key Metrics Changes - The oncology franchise, including CINVONTI and SUSTAL, generated combined net revenues of $28.6 million for the quarter, maintaining market share in a competitive environment [9] - Aponvi and Xenalev experienced significant growth in Q1 2025, with increases of over 43% and 26% respectively compared to the same period last year [11][12] - The company is focusing on product growth and execution, with a goal to optimize commercial performance and selectively expand the team to support high return growth opportunities [6][14] Market Data and Key Metrics Changes - Zeneralev's formulary status now covers approximately 19% of all orthopedic procedures, with expectations for deeper adoption in the market [6] - The company is onboarding new accounts, which are expected to drive sales momentum in the second half of the year [22][46] Company Strategy and Development Direction - The company aims to focus on disciplined execution, optimizing commercial performance, and expanding the team selectively to support growth opportunities [7][14] - The management is actively exploring strategies to drive continued growth in the oncology supportive care market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consensus numbers and anticipates a significant inflection in sales as new accounts are onboarded and partnerships are optimized [23][47] - The company is optimistic about the growth potential of Aponvi, projecting it to be a multi-hundred million dollar drug due to its unique safety profile and mechanism of action [42] Other Important Information - A settlement agreement with Mylan Pharmaceuticals regarding Cymbonte and Aponvi products was reached, avoiding costly litigation fees [8] - The company is focused on integrating the CrossLink partnership to enhance sales efforts and improve product adoption [41] Q&A Session Summary Question: Can you provide qualitative comments on the Cimanti litigation settlements and implications for near-term financials? - Management indicated that the settlement allows for continued growth of Cymbonte and Aponvi [20] Question: What should be expected in terms of sales momentum in the back half of the year? - Management noted that unit demand was up 2% while the market was down 5.3%, indicating positive trends and onboarding of new accounts [21][22] Question: Can you discuss overall Q1 trends and any changes to guidance? - Management confirmed that trends were consistent with past years, and they are optimistic about future growth due to new account onboarding and partnerships [28][30] Question: How do you expect gross profit margin to progress through the year? - Management expects gross margin to remain in the mid-seventies range, despite some fluctuations due to production sources [36][37] Question: What is the near-term to long-term potential for Aponvi? - Management believes Aponvi has significant growth potential, aiming to be the first choice for third-line agents in PONV therapy [42] Question: When might Zeneralev start achieving sequential revenue growth? - Management anticipates a significant inflection in Zeneralev's sales as new accounts are onboarded around mid-year [47]