Assertio Holdings, Inc. Q4 FY2024 earnings call

• 2024 was a year of stabilization with addressing needs in various areas, exceeding $60 million in Rolvedon sales, managing Indocin's generic competition erosion, and optimizing the portfolio. • Completed Rolvedon same day dosing trial, commercial pilot project for Sympazan, and added new talent to leadership team and board. • Generated good cash flow and has a stronger balance sheet for 2025 transformation.

Q4 product sales were $29.6 million, up $0.9 million from Q3, driven by stronger Rolvedon and Otrexup sales. Rolvedon sales were $15.4 million, up $0.4 million driven by higher volume, partially offset by changes in pricing. Indocin sales were $5.5 million, slightly down from $5.7 million in Q3 due to pricing impacts from generic competition. Full year total product sales were $120.8 million, with Rolvedon sales exceeding expectations at $60.1 million and Indocin sales at $26.8 million. Reported gross margin was 61% in Q4, down from 74% in Q3 due to high excess inventory write-down for Indocin, but excluding charges, gross margin was 71%.

• 2025 guidance ranges for net sales between $108 million and $123 million, and adjusted EBITDA of $10 million to $19 million. • Strategic priorities in 2025 include simplifying structure and processes, focusing on growth assets (Rolvedon and Sympazan), reducing legal exposure, and deploying capital smartly. • Expect modest growth in Rolvedon with expansion beyond community oncology clinics segment, double-digit Sympazan growth offset by Indocin decline.

• Legal risks such as ongoing opioid legal exposure, shareholder losses, and other legal matters that impact operating expenses and EBITDA. • Uncertainty in the market for Indocin due to generic competition and in the long-acting G-CSF market which is competitive and dynamic.

Q: What are the factors that could change the guidance range from $108 million to $123 million?

A: Uncertainty in Indocin's evolution, dynamics of the long-acting G-CSF market, and uncertainty in the rest of the portfolio.

Q: How likely is it that you do an acquisition in the next 12 months?

A: Odds are above 50-50, with a strengthened balance sheet allowing consideration of a broader range of assets but need for the right fit.

Q: Can you provide color on legal exposure and what it means going forward?

A: Legal exposure includes opioid legal matters, shareholder losses, etc., with progress made in reducing exposure and impact on OpEx and EBITDA.

Q: Are you seeing any physicians prescribe Rolvedon for same-day dosing?

A: Not much of a commercial uptick yet, but information on same-day dosing study is being disseminated.

Q: How many generics are there for Indocin and outlook?

A: Currently two generic competitors and a compounder, with expectation of one or two more, and impact on Indocin's value.

Q: Any color on Sympazan's uptake and promotion?

A: Sympazan showed response to in-person promotion with added field reps seeing higher prescriptions.

Q: Color on inventory write-down for Indocin?

A: Due to generic competition and production plan adjustments prior to that, resulting in excess inventory write-down.

Q: Why the discrepancy between cash flow from operations and adjusted EBITDA?

A: Due to working capital impact between quarters and non-cash events like excess inventory charges.