Akorn, Inc. (NASDAQ:AKRX) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 09:00 am ET

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Akorn, Inc. (NASDAQ:AKRX) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to Akorn Second Quarter 2019 Financial Results Call. [Operator instructions] As a reminder, today's conference is being recorded. I would like to turn the conference over to Jennifer Bowles, Akorn's Senior Vice President of Strategy and Investor Relations. Please go ahead.

Executive
Jennifer Bowles

Thank you. Good morning, and welcome to Akorn's second-quarter 2019 conference call. I'm joined today by Douglas Boothe, Akorn's President and Chief Executive Officer and Duane Portwood, Akorn's Chief Financial Officer. The second-quarter press release is available on the Investor Relations portion of Akorn's website.

On today's call, Doug will first provide a business update and then Duane will review the company's second-quarter 2019 financial results. We will then open the call to your questions. As a reminder, the conference call and webcast are being recorded and will be available on Akorn's Investor Relations website shortly following the conclusion of today's call.

Before we begin, I would like to remind everyone that any statements made on this call that express the belief, expectation, anticipation or intent as well as those that are not historical fact are considered forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. A description of these risks can be found in the Risk Factors section of Akorn's most recent annual report on Form 10-K as updated by Akorn's subsequent filings with the SEC. The forward-looking statements on this call speak only as of today's date and Akorn assumes no obligation to update forward-looking statements as a result of new information or further developments. With that, I'd like to turn the call over to Doug.

Executive
Douglas Boothe

Thank you, Jennifer, and good morning, everyone. I'm happy to share with you an update on our business and review the progress we've made during the second quarter. As outlined in the press release issued earlier this morning, our second-quarter revenues and adjusted EBITDA both showed improvement over the first quarter of 2019. Improved product availability, particularly from our Somerset site, contributed to the sequential improvement.

Company-wide focus on sales planning, operations and quality metrics across all sites drove our back orders as of the end of the quarter to multi-year lows. While we continue to have room to improve, I'm very proud of what the team has accomplished so far this year. I'd like to highlight two recent product launches, Loteprednol Etabonate Ophthalmic Suspension 0.5% and Dicyclomine Hydrochloride Injection. Both of these products were launched right at the end of the second quarter.

As discussed previously, Loteprednol is the first to market generic and highlights our ability to execute on development and manufacturing of complex ophthalmic suspensions. While our available inventory has been limited, we are pleased to provide patients with an FDA-approved alternative to the branded drug. Dicyclomine injection is a new Akorn generic launched out of our Decatur facility. The approval for Dicyclomine was received last May before we received the Form 483 related to inspection that was ongoing