Eton Pharmaceuticals, Inc. Q4 FY2025 earnings call

• Launched Desmoda, an oral liquid formulation of Desmopressin for central diabetes insipidus, with strong initial traction. - Relaunched Incrulex with disease and therapy education campaign, seeing growth in treated population. - Acquired Hemangiol, a treatment for infantile hemangiomas, with plans to optimize distribution and implement patient support program. - Galzen has 300 active patients and has potential for growth with extended release version in development. - Discussed clinical development programs including INCRELEX label harmonization study and ET700 proof-of-concept study. - Outlined new long-term goals including building largest rare disease portfolio, reaching $200 million revenue run rate by 2027, 50% adjusted EBITDA margin in 2028, and $500 million revenue by 2030.

Fourth quarter product revenue was $21.3 million, an increase of 83% year over year. Adjusted EBITDA margin was 29%, up from 18% in prior year. New products like Increlx, Galzen, Kindivi contributed to doubling revenue in 2025. Desmoda launch is ongoing with initial positive traction. Incrulex has seen growth in treated population. Alkindi Sprinkle and Kindivi franchise has potential with target market of 5,000 children under 8 in US with adrenal insufficiency. Hemangio acquisition is expected to be a large product in 2027. Galzen has reached 300 active patients and has growth opportunity.

• 2026 revenue expected to exceed $110 million and adjusted EBITDA margin at least 30%. - Hemangio expected to be one of Eaton's largest products in 2027. - Desmoda has peak sales forecast of 30 to 50 million. - Goal to exit 2027 at $200 million revenue run rate. - Goal to reach 50% adjusted EBITDA margin in 2028. - Goal to reach $500 million revenue by 2030.

Q: On Hemangiol, how does it assume growth to be one of largest products in 2027?

A: Believes increasing patient adoption by zero copay, raising awareness, aggressive detailing, and being at lower end of rare disease pricing.

Q: On Desmoda, characterize interest in pediatric vs adult and adult patient interest?

A: More than 97-98% of existing relationships in pediatric endocrinology are target prescribers, and there is interest from adult endocrinologists.

Q: On Increlix registry study, payer discussions regarding interim payer reimbursements?

A: Payer discussions haven't happened yet, but if label expansion occurs, there should be reimbursement.

Q: On Galsin, portion of remaining OTC population achievable in immediate quarters?

A: Confident to get to half of remaining population on non-FDA approved zinc therapy within mentioned timeframe.

Q: On INCRELEX label harmonization, specific feedback needed from FDA?

A: Took feedback from FDA and formalized in study protocol, expecting feedback back by end of month.

Q: On Kindivi label expansion, population assumed access to?

A: Intended for under five, expected to add excess of 20 million in revenue in short order.