Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Q2 2023 Earnings Conference Call August 10, 2023 4:30 PM ET

Company Participants

David Krempa - Chief Business Officer

Sean Brynjelsen - CEO

James Gruber - CFO

Conference Call Participants

Raghuram Selvaraju - H.C. Wainwright

Operator

Good afternoon, and welcome to Eton Pharmaceuticals Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that this call is being recorded at the company's request.

At this time, I would like to turn it over to David Krempa, Chief Business Officer at Eton Pharmaceuticals. Please go ahead.

David Krempa

Thank you, operator. Good afternoon, everyone, and welcome to Eaton's second quarter 2023 conference call. This afternoon, we issued a press release that outlines the topics we plan to discuss on today's call. The release is available on our website, etonpharma.com. Joining me on our call today, we have Sean Brynjelsen, our CEO; and James Gruber, our CFO. In addition to taking live questions on today's call, we will be answering questions that are e-mailed to us. You can send your questions to investorrelations@etonpharma.com.

Before we begin, I would like to remind everyone that remarks made during today's call may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those contained in these forward-looking statements. Please see the forward-looking statements disclaimer in our earnings release and the risk factors in the company's filings with the SEC.

Now I will turn the call over to our CEO, Sean Brynjelsen.

Sean Brynjelsen

Thank you, David. Good afternoon, everyone, and thank you for joining us today.

The second quarter was another exceptional quarter for Eton. We delivered record product sales of ALKINDI SPRINKLE and Carglumic Acid. We launched our third commercial product, Betaine Anhydrous, and we also recorded positive cash flow and net income. It was our 10th straight quarter of sequential product growth. As a result of this outperformance through the first half of this year, we are now increasing our revenue expectation for 2023. We expect total 2023 revenue of approximately $30 million.

During the second quarter, total revenue was $12 million and net income was $4.6 million. Product sales and royalty revenue were $6.5 million for the quarter, up 176% from the second quarter of 2022 and up 22% sequentially from the first quarter of 2023.

With ALKINDI, our expanded sales force and our direct-to-consumer marketing campaign have continued to help increase engagement with the adrenal insufficiency community. We continue to have patients each week, and our goal is to reach 400 active patients by the end of the year.