Adamis Pharmaceuticals Corporation (NASDAQ:ADMP) Q3 2022 Earnings Call Transcript

David Marguglio: Well, the impact has really been to pricing as the entrance of generics and the response to — by some of the branded products has been lowering the price overall for Narcan, which we view as a net positive for the market as we have long stated that more naloxone in the market should lead to fewer and fewer deaths which is our objective, obviously. Now as far as how that — what that translates to as far as our ability to sell ZIMHI, I don’t think that it impacts the ability to sell it, given the differentiating characteristics of ZIMHI through its different route of administration and a significantly higher dose, we think that those benefits stack up well regardless of whether we’re talking about branded products or generics.

So really, the impact is just on possible margins. And I think I commented on our prior call that we are — we have undertaken a couple of measures, and we intend to undertake additional measures to further reduce our cost of goods on the product so that we can maintain margins even at lower selling prices.

Robert Uhl: Okay. Great. So what can you tell us about the early adopters of ZIMHI? And has US WorldMeds had success with this type of customer? And why do you think they’ve been successful or why not?

David Marguglio: Well, they are — I think as I described in some detail on the last call, targeting a number of different areas of the market. But the — what we deem to be low-hanging fruit prelaunch and certainly, the success in tapping into this market has proven this out is in first responders. And any group, frankly, that has to use a naloxone on a regular, if not daily basis. For those groups, they immediately recognize the benefit of the higher dose and the faster uptake of naloxone from the route of administration. So I think that’s where they’ve seen early success, and I expect that, that will be going forward, a strong supporter and customer for the product.

Robert Uhl: Okay. Great. Let’s see. This one — this investor is now jumping back to SYMJEPI for a pretty good question here. Could US WorldMeds decide not to relaunch SYMJEPI due to the recall and adverse market conditions that have changed. What are the terms of the agreement that would allow them to exit the contract?

David Marguglio: Yes. So without getting into the specifics of the agreement, I can tell you that — I think I mentioned earlier that we — US WorldMeds was in the process of revising forecast for 2022 before the recall. So it is our expectation that they will be able to get back that momentum that they had at the beginning of ’22. And I believe that they are eager to get back into the market with the product, and we have not been given any indication otherwise.

Robert Uhl: Okay. Great. Let’s see. Here’s one about financial modeling and forecasting. What would be a reasonable estimate for monthly revenue that you’re receiving from the sale of U.S. Compounding? And when does this stream of cash end?

David Marguglio: Yes. I’ll let David B take that.