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]

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, a significant improvement from a net loss of $3.2 million in the same period in 2024 [7][17] - Product gross profit for Q1 2025 was $30.4 million, representing a gross margin of 78%, an increase from 76% in Q1 2024, attributed to lower cost per unit due to production efficiencies [15][17] - 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, particularly with Aponvi and Zeneralev, which are expected to show stronger growth trajectories as new accounts are onboarded [12][14] Market Data and Key Metrics Changes - Zeneralev's formulary status now covers approximately 19% of all orthopedic procedures, indicating a growing market presence [6] - The company is seeing positive trends in average daily units and the number of ordering accounts for both Aponvi and Xenalev, with expectations for continued growth throughout 2025 [12][13] Company Strategy and Development Direction - The company is focused on disciplined execution, optimizing commercial performance, and selectively expanding the team to support high-return growth opportunities [6][14] - Key catalysts for growth include the expanded label for Zeneralev, the VAN launch, the approval of the No Pain Act, and the CrossLink partnership [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consensus numbers for the year, with expectations for a significant inflection in sales momentum as new accounts are onboarded and partnerships are fully integrated [22][23] - The company anticipates a positive outlook for the remainder of the year, driven by strategic initiatives and improved operational efficiencies [30] Other Important Information - A settlement agreement with Mylan Pharmaceuticals regarding Cymbonte and Aponvi products was reached, avoiding costly litigation fees and removing uncertainty around the outcome [7] - The company is prioritizing hiring a commercial leader to enhance its growth strategy, with Mark Hensley joining the team [7] Q&A Session Summary Question: Comments on the Cymanti litigation settlements and implications for near-term financials - Management indicated that the settlement allows for continued growth of Cymbonte and Aponvi without the burden of litigation [20] Question: Expectations for sales momentum in the second half of the year - Management noted a 2% increase in unit demand despite a market decline, with several accounts in the onboarding process expected to drive growth [21][22] Question: Overall Q1 trends and seasonality - Management confirmed that Q1 trends were consistent with past years, with a slight fall-off expected but overall positive performance [26][27] Question: Guidance changes and drivers for EBITDA increase - Management highlighted strong Q1 performance due to efficiencies and the settlement announcement, leading to revised positive guidance [30] Question: Future gross profit margin expectations - Management expects gross margins to remain in the mid-seventies range, with some fluctuations due to production scale [33][35] Question: Long-term potential for Aponvi - Management believes Aponvi has significant growth potential, targeting a multi-hundred million dollar market as it becomes a preferred third-line agent [40] Question: Timing for Zeneralev revenue growth inflection - Management anticipates a significant inflection in Zeneralev sales as new accounts are onboarded in mid to late 2025 [44][45]