Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Q4 2022 Earnings Conference Call March 16, 2023 4:30 PM ET

Company Participants

David Krempa - Chief Business Officer

Sean Brynjelsen - CEO

James Gruber - CFO

Conference Call Participants

James Kennedy - Marathon Micro Partners

Operator

Good afternoon and welcome to the Eton Pharmaceuticals' Fourth Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen only mode. Following the formal remarks, we will open the call out for your question. 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 proceed.

David Krempa

Thank you, operator. Good afternoon, everyone and welcome to Eton's fourth quarter 2022 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. Investors can send their questions to investorrelations@etonpharma.com.

Before we begin, I would like to remind everyone that remarks made during this 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. Thank you, everyone, for attending today's call. Good afternoon, everyone, and thank you for joining us to discuss Eton's fourth quarter results.

I am pleased to share that the company's momentum continued in the fourth quarter of 2022 with $8.5 million in revenue and positive net income of $0.9 million. This was our 8th straight quarter of sequential growth in product sales and not only do we expect that streak to continue through 2023 and beyond, we are expecting that growth to accelerate in 2023 due to some of the items we will be talking about today. We expect our product sales and royalty revenue most importantly to at least double this year compared to 2022.

First off, I would like to start today with an exciting update on our commercial organization. As many of you know, in 2021, we were in the early stages of our ALKINDI SPRINKLE launch. We entered into a copromotion agreement with Tolmar Pharmaceuticals. This agreement allowed us to leverage Tomar's existing large pediatric endocrinology sales force to promote ALKINDI SPRINKLE and save Eton millions of dollars in sales force costs.