Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET

Company Participants

David Krempa - Senior Vice President of Business Development & Investor Relations

Sean Brynjelsen - President & Chief Executive Officer

James Gruber - Chief Financial Officer

Conference Call Participants

Raghuram Selvaraju - H.C. Wainwright & Co.

Operator

Good afternoon and welcome to the Eton Pharmaceuticals Second Quarter '22 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, Senior Vice President of Business Development and Investor Relations at Eton Pharmaceuticals. Please proceed.

David Krempa

Thank you, operator. Good afternoon, everyone and welcome to Eton's second 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 statements 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 Chief Executive Officer, Sean Brynjelsen.

Sean Brynjelsen

Thank you, David. Good afternoon, everyone and thank you for joining us. I'm excited to talk with all of you today about our strong second quarter performance and the significant progress we have made in advancing our mission to be a leading rare disease company.

I'd like to start today with our recent transaction to sell our hospital injectable products, including Biorphen, Rezipres and cysteine hydrochloride. This transaction, we sold these products to Dr. Reddy's Laboratories for payments that could total up to $50 million. We received approximately $5 million at closing and could receive additional payments of up to $45 million based on the achievement of certain milestones.

While we have great confidence in the prospects for the Biorphen franchise, the launch of the vial and the bag products required a completely different sales force and commercial infrastructure than what we have in place, not to mention a significant financial investment. This transaction allows us to benefit from the potential success of Biorphen through commercial milestone payments without having to use any of our resources to bring the full Biorphen portfolio to market.