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Date

Monday, March 16, 2026 at 4:30 p.m. ET

Call participants

  • Chief Executive Officer — Mark L. Reisenauer
  • Chief Financial Officer — Ajay Patel
  • Chief Commercial Officer — Paul Schwichtenberg
  • Moderator — Daniel Santos

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Takeaways

  • Total product sales (fiscal Q4, period ended Dec. 31, 2025) -- $12.8 million, a decrease from $29.6 million in the prior-year quarter, primarily due to Rolvedon channel inventory timing.
  • Rolvedon net product sales (fiscal Q4) -- $0.4 million, down from $15.4 million, as previously disclosed sell-in pulled forward demand.
  • Sympazan sales (fiscal Q4) -- $3.1 million, up from $2.5 million, attributed to higher volume and a favorable payer mix.
  • Indocin sales (fiscal Q4) -- $5.5 million, flat with prior year, with higher net pricing offsetting expected volume pressure from generics.
  • Gross margin (fiscal Q4) -- 75%, improved from 61% in the prior year, due to favorable sales mix and no repeat of earlier inventory write-downs.
  • SG&A expenses (fiscal Q4) -- $13.1 million, a reduction from $21.4 million, primarily from lower legal expenses and headcount reductions following restructuring.
  • GAAP net loss (fiscal Q4) -- $11.9 million, compared to $10.5 million loss in the prior year.
  • Adjusted EBITDA (fiscal Q4) -- Negative $4.1 million versus a positive $3.4 million in the previous year.
  • Cash, equivalents, and short-term investments (end of period) -- $63.4 million, down from $93.4 million at the end of September 2025, reflecting temporary working capital requirements from Rolvedon channel sell-in.
  • Total product sales (fiscal year 2025) -- $117.1 million, exceeding the high end of guidance.
  • Rolvedon sales (fiscal year 2025) -- $68.2 million, up from $60.1 million, with volume growth masked by sell-in timing.
  • Indocin net product sales (fiscal year 2025) -- $18.9 million, reflecting expected volume and pricing impacts from competition.
  • Gross margin (fiscal year 2025) -- 70%, an increase from 68%, driven by improved cost mix and no repeat of prior-year write-downs.
  • Adjusted EBITDA (fiscal year 2025) -- $22.7 million, up from $18.3 million, attributed to gross margin expansion and SG&A cost controls.
  • 2026 guidance (revenue) -- $110.0 million to $125.0 million, reflecting anticipated Rolvedon growth offsetting tail asset declines.
  • 2026 guidance (adjusted EBITDA) -- $28.0 million to $40.0 million, signaling further margin expansion via accretive Rolvedon growth and operating leverage.
  • Rolvedon transition -- Integration completed in fiscal Q4, with regular sales of newly labeled product scheduled to resume in fiscal Q2 2026 and no expected channel inventory build.
  • Working capital dynamics -- Recent decrease in cash primarily due to accounts receivable expansion and accrued rebates from sell-in, expected to normalize by April.
  • Indocin outlook -- Additional generic entry expected in 2026, with management forecasting a year-over-year decline in sales for this tail asset.
  • Operating leverage improvements -- Full-year impact of litigation expense reduction, OTREXUP de-commercialization, and reduced personnel cited as key drivers of lower 2026 operating expenses.
  • Strategic direction -- Management stated, "acquiring on-market specialty products is no longer capital efficient or a sustainable strategy," shifting focus to oncology therapeutics aligned with its commercial footprint.
  • Selective capital allocation -- Further investment in Sympazan not planned due to lower-than-expected returns; focus will remain on assets offering sustainable, attractive returns.
  • Long-term potential for Rolvedon -- Management cited "optimism that the capabilities of that product do have potential to reach, exceed $100,000,000," with stepwise targets above that over multiple years.
  • Commercial infrastructure -- Assertio Holdings (ASRT 1.61%) emphasized its scalable platform in community oncology, led by national account managers and integrated patient support services.
  • Business development (BD) priorities -- Management targets on-market and late-stage oncology therapeutics, with anticipated minimal incremental commercial investment required for product add-ons.
  • Portfolio review process -- Management described ongoing evaluation of asset fit and potential divestiture, with "no specific plans currently," but openness as a public company.

Summary

The fourth quarter saw a sharp year-over-year drop in total product sales and Rolvedon revenue due to the pull-forward of demand related to a label transition, with management describing this unusual pattern as temporary and providing clarity on expectations for normalization in the coming quarters. The company reported improvement in gross margins and a substantial reduction in operating expenses, attributable both to business streamlining and specific cost-cutting measures that will have full impact in 2026. Assertio Holdings shifted its strategic approach, declaring a pivot away from broad specialty product acquisitions toward disciplined business development in oncology therapeutics, leveraging an established community clinic-focused commercial infrastructure. Guidance for 2026 anticipates resumption of Rolvedon growth as the primary driver, balancing against projected declines in legacy "tail assets," and sets a higher range for adjusted EBITDA based on margin expansion and operating leverage. Management also disclosed a flexible approach to portfolio management, stating ongoing review of divestiture opportunities without current plans for asset sales.

  • Ajay Patel clarified that the upper end of 2026 revenue guidance assumes continued erosion in Indocin sales, despite potential Rolvedon upside.
  • CEO Mark L. Reisenauer stated, "The plan would be to continue to focus on the community Medicare Part B setting," highlighting this as the company's leading segment and growth target for Rolvedon.
  • Rolvedon integration was described as fully complete by year-end, with demand growth of 32% for 2025, supporting management’s optimism for further new account acquisition in 2026.
  • On business development, management indicated a focus on acquiring or licensing late-stage, on-market oncology therapeutics, and noted existing capabilities could accommodate such growth with "a small increment most likely" to current commercial operations.
  • Paul Schwichtenberg confirmed, "we expect that the quarterly demand will be generally aligned with the quarterly shipments in 2026."
  • The company expects to realize $3 million to $5 million in year-over-year SG&A savings from recent restructuring, de-commercialization, and lower litigation expense beginning in 2026.

Industry glossary

  • Tail assets: Legacy, lower-growth, or mature pharmaceutical products contributing cash flow but with declining sales prospects.
  • Sell-in: The process of selling product inventory from a pharmaceutical company into the distribution channel (wholesalers or retailers), not necessarily reflecting immediate end-customer demand.
  • LCM (Life cycle management): Strategic efforts to extend the commercial viability, exclusivity, and market share of a pharmaceutical product through improvements, protection, or new use cases.
  • Community oncology: Cancer care delivered primarily through independent or networked outpatient clinics, as opposed to academic hospitals.
  • BD (Business development): Activities related to asset acquisitions, partnerships, licensing, or business combinations to expand or enhance the company’s product portfolio.

Full Conference Call Transcript

Daniel Santos: Thank you. Good afternoon, and thank you all for joining us today to discuss Assertio Holdings, Inc.'s fourth quarter 2025 financial results and business update. The news release covering our results for this period is now available on the Investor page of our website at investor.assertiotx.com. I would encourage you to review the release and tables in conjunction with today's discussion. Please note that during this call, management will make projections and other forward-looking statements regarding our future performance. Such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, including those noted in this afternoon's press release as well as Assertio Holdings, Inc.'s filings with the SEC.

These and other risks are more fully described in the risk factors section and other sections of our annual report on Form 10-Ks and in our Form 10-Q filings. Our actual results may differ materially from those projected in the forward-looking statements, Assertio Holdings, Inc. specifically disclaims any intent or obligation to update these forward-looking statements, except as required by law. With that, I will now turn the call over to Mark L. Reisenauer, Chief Executive Officer. Please go ahead.

Mark L. Reisenauer: Well, thank you to everyone for joining us today. Before we dive into our fourth quarter and full year 2025 results, I want to take a moment to share three early observations from my time as CEO and provide some color on where I see opportunities ahead. Since I became CEO in October, I have had the opportunity to meet with team members at every level of our organization and several things have come into focus for me. First, I believe we have a significant revenue opportunity in our core asset, Rolvedon, which is reflected in our 2026 guidance.

Second, we have an experienced commercial operation with strong market access, sales and contracting capabilities that we can leverage to bring other products to market successfully. And third, our prior strategy of acquiring on-market specialty products is no longer capital efficient or a sustainable strategy to fuel growth.

Now let me expand on those points a little bit. Since we acquired Rolvedon in 2023, the team has worked to streamline our organization, consolidating regulatory, distribution, and contracting functions and bringing Rolvedon manufacturing under our consolidated commercial label to drive operational efficiencies. With that integration fully complete in Q4 2025, we have positioned the product for commercial success, including maintaining a leading market share position. As we explained last quarter, as part of this Rolvedon integration and transition to a new distribution partner, we pulled forward two quarters of demand to ensure uninterrupted patient supply during the transition.

Regular sales of the newly labeled Rolvedon are expected to begin in the second quarter 2026, after which we expect continued demand growth and an acceleration in sales compared to the prior year, which AJ will discuss in more detail when he goes over our 2026 guidance. Given that our IP protection goes out to 2039, we continue to view Rolvedon as a long-term revenue opportunity and as such, we will prioritize implementing a meaningful life cycle management strategy.

Rolvedon is a great example of what is possible with strong commercial execution. We see significant opportunities leveraging the commercial organization we have built around Rolvedon to bring other products to market. Our team has broad capabilities across marketing, sales, market access, and distribution, which we can leverage to maximize access and reach of other products in the oncology market. Paul has already led the organization through most of the heavy lifting and our focus now is on finding the right products to acquire and grow.

Which brings me to my third point, our strategy. Historically, Assertio Holdings, Inc. has pursued a strategy of acquiring on-market specialty products. While these assets can provide immediate cash flow, competition for these opportunities has intensified in recent years, and acquisition prices have increased. This approach has delivered some successes for the company, including Rolvedon. However, it has also highlighted the importance of being disciplined in how we allocate capital and commercial resources. For example, while SYMPAZAN continues to serve patients with a differentiated formulation, the returns on our investments to grow the product have been lower than expected.

As a result, we do not believe that further incremental investment behind the asset is warranted relative to other higher growth opportunities for capital deployment. That experience reinforces our focus on being highly selective pursuing assets where our commercial platform can drive attractive and sustainable returns.

With this in mind, let us talk about where Assertio Holdings, Inc. goes from here. The core of our strategy will continue to be ensuring the success of Rolvedon, and leveraging the operational efficiencies we have built around it through our integration efforts. In the near term, that means we will focus on driving Rolvedon sales growth and in implementing a comprehensive LCM strategy to maximize our long-term opportunity. On the BD side, we are going to be much more focused on finding opportunities that leverage our existing Rolvedon footprint and capabilities. Expanding our presence in oncology is a natural next step for us.

We see multiple pathways to growth, through targeted business development including individual product acquisition, commercialization agreements, licensing or technology agreements, and/or potential business combinations. We will be disciplined in our approach, and focus on both on-market and development stage assets that meet our investment and return criteria. We do not have anything to announce on this front yet, but we continue to search to see what opportunities are available. I am proud to say we are entering this next phase from a position of strength with a solid balance sheet, and a core asset with meaningful runway ahead.

Before I turn it over to Paul, I want to thank our team for their hard work and for embracing recent changes with enthusiasm and focus. It makes a difference and it reinforces my confidence in what we can deliver going forward. With that, I will turn it over to Paul, who can provide an update on our portfolio and operations.

Paul Schwichtenberg: Thank you, Mark. From a commercial and operations perspective, our focus over the past year has been to align our commercial resources to optimize cash flow from our tail assets while continuing to support the growth of Rolvedon. Starting with Rolvedon, the integration of the product from Spectrum into the Assertio Holdings, Inc. platform is now complete, and we will continue to integrate the remaining products in our portfolio during 2026. For Rolvedon, this included transitioning the product onto the Assertio Holdings, Inc. label and fully integrating the commercial, operational, and market access infrastructure required to support the product going forward.

Importantly, this transition has been seamless from both the customer and patient perspective, which was a top priority for our organization.

During the fourth quarter, we saw the expected pull through of the large purchases that were executed in the third quarter and those dynamics are progressing as planned. From a demand perspective, Rolvedon continues to perform well, particularly within the community oncology clinic segment where we maintain strong share. Since the product launched in late 2022, we have continued to see new accounts begin purchasing Rolvedon each quarter which reinforces our confidence that there remains opportunity to further expand awareness and utilization.

To support the next phase of growth, we have also executed a number of personnel and process enhancements across the organization. These changes are designed to further strengthen our community oncology focus, expand our reach with key clinics, and improve the coordination between our field teams and market access capabilities. We believe these adjustments position us well to continue expanding Rolvedon's presence within our target accounts.

At the same time, we remain disciplined in how we manage the remainder of our portfolio. Our approach is to optimize the cash flow generated by our tail assets while prioritizing commercial investment behind Rolvedon and other future growth opportunities. Let me now spend a moment to the commercial capabilities we build and how they position Assertio Holdings, Inc. to bring additional product to market.

Over the past few years, we have developed a focused commercial platform centered on the community oncology channel. Our field organization includes a national team of corporate account managers engaging with clinics across the country, working directly with providers and practice administrators to encourage product awareness and adoption. That effort is complemented by a national accounts team dedicated to contracting with group purchasing organizations and aggregators which enables us to efficiently expand access across large networks of oncology practices. We also have significant expertise in trade and distribution and maintain strong relationships with distributors, GPOs, aggregators, and clinic customers which helps ensure efficient product flow and broad market access.

Supporting the field organization is a fully integrated patient services infrastructure, including both the hub services platform and field reimbursement specialists who work with providers to help navigate coverage and reimbursement processes and support patient access to therapy when it is prescribed. Taken together, these capabilities create a scalable commercial infrastructure that we believe can support not only our current portfolio, but also additional assets in the future. As we look ahead, we believe this platform positions Assertio Holdings, Inc. well to incubate and commercialize additional products that fit within our existing commercial footprint.

Overall, we believe the operational progress we have made over the past year strengthens the foundation of the business well to both continue growing Rolvedon and thoughtfully expand the portfolio over time. With that, I will now pass the call over to AJ, who will cover the financial results.

Ajay Patel: Thanks, Paul. I will now walk through our financial results for the fourth quarter and full year 2025. Total product sales in the fourth quarter were $12,800,000 compared to $29,600,000 in the prior year, primarily driven by the timing of channel inventory associated with the previously disclosed Rolvedon sell-in. While Rolvedon net product sales were minimal at $400,000 in the fourth quarter, down from $15,400,000 in the prior year quarter, underlying demand for Rolvedon remained stable, and our 2026 outlook expects strong growth beginning in the second quarter with newly labeled Rolvedon. SYMPAZAN sales were $3,100,000 in the fourth quarter, up from $2,500,000 in the prior year, reflecting higher volume and a favorable payer mix.

Indocin sales in the fourth quarter were flat year over year at $5,500,000 as higher net pricing offset expected volume pressure from generic competition. Gross margin improved to 75% compared to 61% in the prior year, primarily driven by a higher mix of Indocin sales and the prior year inventory write-downs not repeating.

Turning to operating expenses, reported SG&A expenses were $13,100,000, down from $21,400,000 in the prior year, reflecting lower legal expenses following completion of litigation-related initiatives as well as reduced personnel cost following restructuring actions taken in the fourth quarter. GAAP net income for the fourth quarter was a loss of $11,900,000 compared to a loss of $10,500,000 in the prior year, and adjusted EBITDA for the fourth quarter was negative $4,100,000 compared to a positive $3,400,000 in the prior year. As of 12/31/2025, cash, cash equivalents, and short-term investments totaled $63,400,000 compared to $93,400,000 at 09/30/2025. This decrease primarily reflects a temporary increase in net working capital associated with the Rolvedon sell-in.

Specifically, this was driven by an expansion of accounts receivable due to extended terms required to complete the sell-in as well as an increase in accrued rebates as that inventory pulls through the channel. We expect this working capital variability to continue through the first quarter as these balances are settled. However, we anticipate that working capital and cash flows will return to normalized levels by April, aligning with the expected start of newly labeled Rolvedon sales in the second quarter.

Now on to full year results. Total product sales were $117,100,000, above the high end of the updated guidance range we provided last quarter. Rolvedon sales were $68,200,000, up from $60,100,000 in the prior year. Indocin net product sales were $18,900,000 for 2025, reflecting expected volume and pricing impacts from generic competition. Gross margin was 70% in 2025, up from 68% in the prior year, primarily due to prior year inventory write-downs and step-up amortization expenses not repeating. Full year adjusted EBITDA was $22,700,000, up from $18,300,000 in 2024, driven primarily by lower SG&A expenses and favorable gross margin.

I will conclude with our outlook for 2026. For fiscal 2026, we are initiating revenue guidance in the range of $110,000,000 to $125,000,000 and adjusted EBITDA guidance between $28,000,000 and $40,000,000. As we look at our fiscal 2026 revenue guidance of $110,000,000 to $125,000,000, it is important to understand the underlying dynamics of our primary growth driver, Rolvedon. While we expect natural declines in our legacy tail assets, our strategic focus for 2026 is maximizing Rolvedon sales to offset these headwinds. The guidance range reflects varying scenarios specifically regarding pricing, gross-to-net, and volume acceleration. At the upper end of the range, we anticipate favorable market dynamics and increased market share.

For comparison purposes, it is important to note that our fiscal 2025 reported Rolvedon revenue included approximately five quarters of wholesaler shipments due to the Q3 sell-in. In fiscal 2026, our reported figures will reflect three quarters of wholesaler shipments as regular sales of the newly labeled Rolvedon are expected to begin in the second quarter. On a normalized quarterly basis, we expect growth in Rolvedon ex-factory wholesaler shipments driven by higher end-customer demand volume. Our fiscal 2026 total revenue guidance reflects underlying revenue growth in Rolvedon. At the midpoint of our guidance range and above, we expect Rolvedon's revenue growth to fully offset the year-over-year reduction in Rolvedon shipment quarters and the anticipated declines in our tail assets.

Turning to profitability, we are forecasting fiscal 2026 adjusted EBITDA between $28,000,000 and $40,000,000. This represents year-over-year expansion in margin compared to our results in fiscal 2025. This step change in profitability is driven by two primary levers: high-margin revenue growth, Rolvedon's growth is highly accretive. Our strategy has a direct fall-through effect on margins. Furthermore, we believe we can capture additional volume through our existing commercial infrastructure without requiring incremental OpEx. Structural cost savings, we are realizing the full-year benefits of several key initiatives. These include reduced year-over-year litigation expenses, the successful de-commercialization of OTREXUP, and a leaner personnel structure following our Q4 restructuring activities. As we move through the year and gain greater visibility following the resumption of Rolvedon sales, we look forward to providing updates on our progress and our potential to perform towards the upper end of the range. With that, I will turn the call back to Mark.

Mark L. Reisenauer: To wrap up, as I highlighted earlier, we believe Assertio Holdings, Inc. is operating from a position of strength. Rolvedon remains a significant long-term opportunity with meaningful runway ahead, supported by the commercial platform we have built and our strong relationships across the community oncology market. At the same time, we are taking a disciplined approach to capital allocation and business development, as we evaluate opportunities that can leverage our existing capabilities and drive sustainable growth. Overall, our focus remains clear: execute on the growth potential of Rolvedon, leverage our commercial infrastructure, and create long-term value for patients and shareholders. With that, I will turn the call back over to the operator so we can begin to answer questions.

Thank you.

Operator: We will now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to one and one follow-up. Again, it is star 1 to join the queue. Our first question comes from the line of Thomas Flaten with Lake Street Capital Markets. Your line is open.

Thomas Flaten: Hey, good afternoon. I appreciate you taking the questions. Back to the strategic priority of focusing on the oncology space, maybe you could help us understand a little bit better what types of assets you are looking at. Are you looking for commercial assets, you know, primarily supportive care? Would you do therapeutic? Any interest in taking onboard pipeline projects? And, obviously, there would be an implication that there would be some R&D spend, but maybe a little bit more detail on that would be super helpful.

And just to follow on from that then, with the current commercial infrastructure you have in place, are there any incremental investments that you see being required to bring on board the types of products you want? For example, expanding the sales, or do you feel that the commercial infrastructure today is plenty attractive enough for potential partners?

Mark L. Reisenauer: Sure. Thanks for the question, Thomas. So in terms of the scope of what we would be looking for in the oncology space, I think maybe some additional criteria that we would use as we evaluate, I think it would be on-market, certainly, it would be late-stage development past proof of concept. Certainly, we would be looking at therapeutics primarily. And I think that is probably a good starting point of how we are looking at the oncology opportunity. As to your follow-up, it would be a small increment most likely in terms of what we already have. We think we have a great base, but it would be a small incremental investment likely as we bring an investment on.

Operator: And our next question comes from the line of Nazibur Rahman with Maxim Group. Your line is open.

Nazibur Rahman: Hi, everyone. Congrats on the progress. Thanks for taking my questions, just especially one with a follow-up. Considering what Rolvedon's growth has been the last couple years in 2024 and 2025 of sales, what gives you confidence in this guidance and growth considering that a lot of that was really occur over three quarters? Could you talk a little bit more about the initiatives you plan on implementing in 2026 to sort of reach that growth level? And is part of that, is there a plan to sort of expand away from the community setting, or are you just planning on, I guess, further penetrating within the community setting at this point?

Mark L. Reisenauer: Thank you, Naz, for your questions. I will kick it off, and then I will turn it over to Paul for some additional color commentary. But the first part of your question, what gives us confidence in the growth: if you look at demand growth in 2025 full year, it was 32% year over year compared to 2024. So, you know, independent of the sell-in, the underlying demand growth for the year was still strong. And we would expect that continued demand growth, maybe not that same level, but certainly we will continue to add new accounts in 2026, much like we have done in 2025.

Your second question as it related to, if you could repeat it again, that is because you were breaking up a little bit.

Nazibur Rahman: Sorry. Just going to keep setting. Yeah. Is there a plan to sort of expand away from the community setting at this point? I believe this is the discussed or talked about before, or is the plan to currently just continue to further penetrate within the community setting?

Mark L. Reisenauer: Yeah. Okay. Thank you. That is much clearer now. The plan would be to continue to focus on the community Medicare Part B setting. We have a very high market share there. We are a leader in that space, and we think there is further room to grow. We will also continue to evaluate some of the other segments and make targeted investments if we think they are warranted. But the growth, we believe, continues to come primarily from the area where we already have a leading market share. And I do not know if there is anything, Paul, that you would want to add.

Paul Schwichtenberg: No. I think that covers it. I think the growth we are going to achieve is going to be through new accounts. We have seen growth every quarter since we launched the product. And we do see new opportunities out there to win some additional accounts, which is going to drive a lot of the growth. And then you are right, Mark. The focus is really going to be on the community oncology space, Medicare Part B. Having said that, I would say, you know, we are open to other opportunities if the opportunities present themselves. But right now, that is going to be the focus.

Nazibur Rahman: Thank you. Thanks for taking my questions.

Paul Schwichtenberg: Thank you, Naz.

Operator: And our next question comes from the line of Scott Henry with Alliance Global Partners. Your line is open.

Scott Henry: Thank you, and good afternoon. I want to dig in a little bit on Rolvedon just to fully understand. So in '25, you sold into the channel because you were switching labels, which caused Q4 to be virtually nothing. And it sounds like I would love to hear what your thoughts are for Q1. I do not think it is going to be meaningful. But now you are switching to the second version. So my question is, will there be any stocking of the relabeled product? Or would you expect revenues to simply reflect demand in 2026? Just trying to get a sense of what the levers are that are setting you up for a pretty good number for 2026.

And then on Indocin, it looked like a pretty good quarter in '25. Within your guidance, how do you think about that product? Down marginally, down substantially? Just because 2025 shaped up pretty good for the second half for Indocin. And, AJ, since I have you on the line, that $13,000,000 in SG&A in Q4 looks pretty lean relative to past quarters. How reflective do you think that quarterly rate is going forward? I know there are a lot of one-time events that work their way in there, but does that $13,000,000 seem representative to you? And if I could just slip in one final question. I apologize if I went over the limit.

For Mark, I think it is a good observation that assets are pricey right now and probably a good idea not to be a buyer in an environment like that. But the flip side of that coin is if assets are expensive, perhaps you want to be a seller. So would you consider divesting assets or even putting the company up for sale? I mean, I know you will always consider that as a public company, but I wanted to get your thoughts on that. Thank you.

Paul Schwichtenberg: Yeah, Scott. This is Paul here. I will address the Rolvedon question. Right now, we are expecting a relatively smooth transition from the old label to the new label. What I mean by that is the product that we shipped at the end of the third quarter is getting pulled through in demand in the fourth quarter and will continue to be pulled through in 2026. And then at that point, we will shift over to the new label and there will be a transition to building the channel with that new label. And that is really going to start in the second quarter in earnest of 2026.

Scott Henry: Well, the question is when an account switches to the new label, will they fill in some inventory, or will they just basically be replacing the old version with the new version on kind of a steady-state basis? It is really very specific to expect channel inventory to build in 2026?

Paul Schwichtenberg: We do not expect channel inventory to build, and I would say, generally speaking, we expect that the quarterly demand will be generally aligned with the quarterly shipments in 2026.

Scott Henry: Okay. That is great and particularly helpful. And then on Indocin, looked like a pretty good quarter in '25. Within your guidance, how do you think about that product? Down marginally, down substantially?

Ajay Patel: Yeah. Thanks, Scott. This is AJ. I can take that one. You are absolutely right, we especially like the fourth quarter results of it. Obviously, we are always cognizant that it is competing in a highly competitive landscape with the generic competitors. Obviously, Indocin is not protected so we do not have direct visibility into when new generics will enter. However, from our market intelligence, we are expecting at least one additional generic in 2026. So naturally, we are expecting a decline in that tail asset, as I had said in my guidance commentary. Therefore, we do expect a year-over-year decline in that.

What we will try to manage is, as we have been doing since it went generic in '23, to try to maximize the profitability from that product.

Scott Henry: Okay. And, AJ, since I have you on the line, that $13,000,000 in SG&A in Q4 looks pretty lean relative to past quarters. How reflective do you think that quarterly rate is going forward? I know there are a lot of one-time events that worked their way in there, but does that $13,000,000 seem representative to you?

Ajay Patel: The $13,000,000 will have had some one-time benefits as well from the restructuring activities we took. However, we do generally see a step down in the adjusted SG&A figures when you look at it excluding stock compensation, D&A, etc. We do see a step down from 2025 to 2026, especially given the de-risking from a litigation expense perspective, the OTREXUP de-commercialization, and some of the personnel. We do estimate that to be at least in the range of $3,000,000 to $5,000,000 on a year-over-year basis.

Scott Henry: And just to close the loop, Mark, on portfolio strategy, would you consider divesting assets or even selling the company as a whole?

Mark L. Reisenauer: Thanks for the extra question, Scott. We will let it slide this time. I am just kidding. The question about would we consider divesting, that is something we do continuously. We are always evaluating whether an asset makes sense with us or would it do better with another company. So that is a continuous process, and I would expect we would evaluate that as we have always done throughout the year. But no specific plans currently. As a public company, obviously, a sale can always happen. I do not think that is something we are necessarily actively doing, but as a public company, that can happen at any time.

Scott Henry: Okay. Well, thank you for taking the questions, and congratulations on the strong outlook for next year.

Operator: And our final question comes from the line of Raghuram Selvaraju with H.C. Wainwright. Your line is open.

Raghuram Selvaraju: Thanks very much for taking my questions and congratulations on all the recent progress. I was wondering if you could give us some more granularity regarding the underlying expectations concerning the top end of your 2026 guidance, specifically as this pertains to Rolvedon net sales? Can you give us some more information with respect to that and also if you could give us a sense of how you are thinking about the long-term future of the product and what you anticipate potential achievable peak annual sales in the U.S. could be a couple years down the road.

And then also with respect to possible BD activities, when you think about potential products within the oncology domain that could be synergistic with or readily combinable with Rolvedon when you think about how your sales and marketing infrastructure is set up to promote that product, can you give us any additional context around which specific subcategories of the oncology space would likely make the most sense to look for complementary assets to Rolvedon?

Ajay Patel: Thanks, Ram, for the question. Let me take the first half, and then I will let Mark answer the second part of your question. From a guidance perspective, we do not typically give out product-level guidance. But, obviously, as you think about our range and you have seen our fiscal 2025 results, directionally, the way you should think about it is we are expecting, as I said in my commentary, year-over-year growth on Rolvedon. It is just going to be a reflection of what is the magnitude of that growth. And as the year progresses, especially with the launch of the newly labeled product in the second quarter, we hope to provide a little more granularity on that.

But, generally, what we are targeting at the midpoint of the range and above is the year-over-year growth should more than offset the degradation we expect in our tail assets, specifically Indocin, and then, additionally, it should more than offset, combined with the shipment quarter differences we had year on year. That is generally how we are thinking about it. I think our long-term potential on Rolvedon, as we have indicated in the past, there is strong optimism that the capabilities of that product do have potential to reach, exceed $100,000,000. We have looked at various ranges above that. There are opportunities to reach $100,000,000 to $130,000,000, and even beyond that.

But, generally, we are, at least from a step approach, targeting for it to reach above $100,000,000 as the near-term optimism we have in the next few years.

Raghuram Selvaraju: Just very quickly, I wanted to get some quick clarity on one thing you said, AJ. Is it correct to assume that even the upper end of your guidance assumes some degree of degradation, erosion, in Indocin sales relative to 2025. Is that a correct assumption?

Ajay Patel: That is a correct assumption.

Mark L. Reisenauer: Yes. And then just to cover off on your last question, what specific subcategories might we look at in the oncology space that would be logical given our existing footprint? Let me start first with the footprint, and then I will go to the subcategory. The footprint we have in the community oncology space, which is actually, by the way, where most cancer patients are treated, is a great place for any therapeutic, whether it is for liquid tumors or solid tumors. So I think that is one of the benefits of our existing footprint. The community oncology space, those physicians do treat all types of cancers.

So from our standpoint, then what that translates to is a therapeutic compound that could be for liquid or solid tumors. I think that is the simplest way to think about it. Thank you.

Operator: Ladies and gentlemen, that concludes our question and answer session as well as today's call. We thank you for your participation, and you may now disconnect.