Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET

Company Participants

David Krempa - Chief Business Officer
Sean Brynjelsen - Chief Executive Officer
James Gruber - Chief Financial Officer

Conference Call Participants

Chase Knickerbocker - Craig-Hallum

Operator

Good afternoon, and welcome to the Eaton Pharmaceuticals Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised, this call is being recorded at the company's request. At this time, I'd like to turn it over to David Krempa, Chief Business Officer at Eaton Pharmaceuticals. Please proceed.

David Krempa

Good afternoon, everyone, and welcome to Eton's Second Quarter 2024 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. Good afternoon, everyone, and thank you for joining us today.

We are pleased to be reporting yet another quarter of record product sales. Eaton began 2024 with high expectations across all areas of the business and now that we've reached the midpoint of the year, I'm proud to say we're executing on all fronts. We've continued to rapidly grow sales of our existing commercial products while also delivering on the advancement of our pipeline products, most notably ET-400. And we were able to do all of this while generating positive cash flow from operations in the second quarter. I could not be happier with our corporate performance so far this year.

The second quarter was Eaton's 14th straight quarter of sequential product sales growth.

We are very proud of this streak and based on our portfolio's long runway for growth, we expect the streak to continue for the foreseeable future. Product sales increased 40% year-over-year to $9.1 million in the quarter and grew 14% over the previous high in the preceding quarter. Absent any unannounced M&A transactions, we expect to reach positive GAAP net income by the end of this year. These impressive results were primarily due to continued strength from both of our lead products, ALKINDI SPRINKLE and Carglumic Acid. ALKINDI SPRINKLE saw its growth accelerate in the second quarter as we have seen a strong uptick in the number of new patient referrals received this year. ALKINDI revenue increased an impressive 63% year-over-year.