# EDGAR Filing Document

**Accession Number:** 0001588972
**File Stem:** 0000950170-23-005553
**Filing Date:** 2023-3
**Character Count:** 52542
**Document Hash:** 241d22301a2bbd3574587310a84ea3bd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-005553.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0000950170-23-005553

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 37

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Societal CDMO, Inc.
- **CENTRAL INDEX KEY:** 0001588972
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 261523233
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36329
- **FILM NUMBER:** 23693943

**BUSINESS ADDRESS:**
- **STREET 1:** 1 E. UWCHLAN AVE, SUITE 112
- **CITY:** EXTON
- **STATE:** PA
- **ZIP:** 19341
- **BUSINESS PHONE:** 770-534-8239

**MAIL ADDRESS:**
- **STREET 1:** 1 E. UWCHLAN AVE, SUITE 112
- **CITY:** EXTON
- **STATE:** PA
- **ZIP:** 19341

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Recro Pharma, Inc.
- **DATE OF NAME CHANGE:** 20131010

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** March 01, 2023<br>

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Societal CDMO, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Pennsylvania | 001-36329 | 26-1523233 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 1 E. Uwchlan Ave, Suite 112 |  |  |
| Exton**,** Pennsylvania |  | 19341 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 770 534-8239<br>

N/A<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common stock, par value $0.01 | SCTL | The NASDAQ Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On March 1, 2023, Societal CDMO, Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The Company has scheduled a conference call and webcast for 4:30 p.m. Eastern time on March 1, 2023 to discuss these financial results and business updates.

The information disclosed under Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

**Item 7.01 Regulation FD Disclosure.**

Attached as Exhibit 99.2 and furnished for purposes of Regulation FD is a presentation that the Company will post on its website on March 1, 2023 and may use from time to time in presentations or discussions with investors, analysts, and other parties.

The information in this Item 7.01, including Exhibit 99.2, is being furnished solely to satisfy the requirements of Regulation FD and shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

The following exhibits are being furnished herewith:

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| | |
|:---|:---|
| **Exhibit<br>No.** | **Document** |
| [<u>99.1</u>](sctl-ex99_1.htm) | [<u>Press release of Societal CDMO, Inc., dated March 1, 2023</u>](sctl-ex99_1.htm) |
| [<u>99.2</u>](sctl-ex99_2.htm) | [<u>Investor presentation of Societal CDMO, Inc.</u>](sctl-ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | Societal CDMO, Inc. |
| Date: | March 1, 2023 | By:  | /s/ J. David Enloe, Jr. |
|  |  |  | J. David Enloe, Jr.<br>President and Chief Executive Officer |

---

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## Ex-99

**Exhibit 99.1**

![img53677981_0.jpg](img53677981_0.jpg)

**Societal CDMO Reports Fourth Quarter and Full Year 2022 Financial Results**

Recorded Q4 Revenue of $24.3 Million, a 9% Increase Compared to Prior Year Period

Clinical Trial Materials Development Business Grew by 58% in 2022; Significantly Expanded and Diversified Customer Base

Executed Multi-Step Strategy Resulting in Reduction of Debt and Strengthened Financial Position

Company to Host Webcast Today at 4:30 p.m. ET

**SAN DIEGO, CA, and GAINESVILLE, GA – March 1, 2023 —** Societal CDMO, Inc. ("Societal CDMO"; NASDAQ: SCTL), a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, today reported financial results for the fourth quarter and year ended December 31, 2022.

"One year ago, the company outlined an aggressive roadmap for 2022, including objectives spanning sales and marketing, corporate identity, facilities and capabilities, stakeholder engagement and finally, our financial position. During the year, we successfully met each of these goals, creating a stronger and more capable CDMO," said David Enloe, chief executive officer of Societal CDMO. "Our expanding customer base includes businesses ranging from early-stage development to commercially mature, and the economic and industry-related factors impacting their decisions are distinct. During 2022, Societal employed a segment-specific sales approach that accounts for important factors such as different decision-making processes, key drivers and metrics of success, project management and the approach to creating productive relationships with our clients. These strategic steps contributed to strong sales in 2022 with our clinical trial support business (non-legacy) growing 58% compared to the prior year. Importantly, we ended the year with a significantly expanded and diversified customer base compared to 2021, with more than three times the number of customers that we had just two years ago.

"As a complement to our evolved sales and marketing approach, during the year, the company changed its name from Recro Pharma to Societal CDMO and adopted the tag line, 'Bringing Science to Society.' We believe this new identity, hand-in-hand with our bespoke approach to sales and marketing, signals the corporate transformation that is underway and the company's commitment to our people, our customers, the communities in which we operate and most of all, the patients we ultimately serve.

"During the year, we achieved multiple other important milestones including expanding and optimizing our technical capabilities with the launch of our new aseptic fill/finish and lyophilization services. We also made substantial investments toward enhancing both our customer and employee experiences. Yet, perhaps one of the most significant achievements during the year was the execution of a multi-step strategy that substantially strengthened our financial position. The concurrent, multiple transactions we successfully executed included selling unused land adjacent to our Gainesville, GA facility for approximately $9 million, which is anticipated to close during the second half of 2023; executing a $39 million gross sale-lease-back agreement for the Gainesville manufacturing site and campus; closing concurrent public offerings of common stock and preferred stock, generating gross proceeds of approximately $35.6 million; and, securing a new debt facility for $36.9 million from Royal Bank of Canada, the terms of which significantly improve upon the terms of the company's previous credit facility, which was repaid and retired one year prior to its maturity date.

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"Given the successes of 2022, we look ahead with great optimism. We cannot emphasize more strongly how pleased we are to begin 2023 from a renewed position of financial strength."

**<u>Fourth Quarter 2022 and Other Recent Developments</u>**

**Business Development:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**New and expanded customer projects.** During the quarter, the company signed $9.5 million in new and expanded project agreements, representing the second consecutive quarter of highest signed business in Company history. The new projects span clinical trial services, analytical method, tech transfer, formulation development, cGMP manufacturing, and packaging services.

**Corporate Achievements:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**Company completes multi-transaction strategy to recast capital structure including reduction and refinancing of outstanding debt.** In addition to significantly reducing the company's total debt, the transactions helped improve the company's net debt leverage ratio from greater than six times EBITDA to just over two times EBITDA, immediately reducing Societal CDMO's annual interest burden by an estimated $6 million with the potential to increase that number to approximately $7 million annually.

oIn December 2022, the company executed a sale and leaseback transaction for its Gainesville, Georgia, manufacturing site and campus with Tenet Equity, yielding $39 million in non-dilutive gross proceeds. Upon closing, Societal CDMO entered into a 20-year lease agreement with Tenet Equity, with multiple renewal options. This transaction does not impact Societal CDMO's other facilities, including its development, high potency and clinical packaging site also located in Gainesville, Georgia, and its development and sterile vial fill/finish & lyophilization facility in San Diego, California.

oIn December 2022, the company closed concurrent public offerings of common stock and preferred stock, generating gross proceeds of approximately $35.6 million, prior to deducting the underwriting discounts and estimated offering expenses. RBC Capital Markets acted as sole book-running manager for the offerings.

oAlso in December 2022, the company secured a new debt facility for $36.9 million from Royal Bank of Canada. The facility is in the form of a three-year Term A Loan bearing interest at the floating Secured Overnight Financing Rate (SOFR) plus an initial base rate of 4.5% per annum. The terms of the new debt facility significantly improve upon the terms of the company's previous credit facility with Athyrium, which carried an interest rate of approximately 13% and held a near-term maturity date of December 31, 2023.

oIn August 2022, the company signed a sales and purchase agreement to sell approximately 121 acres of lakefront land for approximately $9.1 million. The unused land is located adjacent to Societal's manufacturing facility in Gainesville, Georgia. Subject to completion of diligence, we expect the sale to close in the second half of 2023, with the proceeds further strengthening the company's financial position.

**<u>Financial Results for the Three Months Ended December 31, 2022</u>**

Revenues for the quarter ended December 31, 2022 were $24.3 million and reflects our highest revenue quarter of the year as well as higher than any quarter in the past two years. This represents a 9% increase compared to revenues of $22.3 million recorded during the prior year period. The increase of $2.0 million was primarily driven by an increase in European Ritalin LA demand from the company's new customer InfectoPharm, as well as an increase in revenue from the company's largest commercial customer Teva, correlated with pull through in demand resulting from market share gains against the sole competitor for the Verapamil SR products. These increases were partially offset by lower revenues from commercial product sales in San Diego compared to the prior year due to timing of customer shipments.

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Cost of sales for the quarter ended December 31, 2022 was $17.4 million compared to $15.7 million for the comparable period of 2021. The increase of $1.7 million was primarily due to increased costs associated with the clinical trial materials business as we expand capabilities, increased personnel costs primarily due to certain 2021 employment incentive tax credits that were not repeated in 2022 resulting in increased expense in 2022 and increased costs tied to the higher manufacturing revenue during the quarter.

Selling, general and administrative expenses for the fourth quarter of 2022 were $6.0 million, compared to $5.3 million recorded in the 2021 period. The increase of $0.7 million was primarily related to costs associated with the refinancing in the fourth quarter of 2022 offset by lower public company costs and administrative costs than the prior year.

Interest expense was $3.7 million for the three months ended December 31, 2022, an increase compared to $3.5 million for the comparable period of 2021. The increase of $0.2 million was primarily due to an increase in the variable LIBOR component of interest on the company's prior term loans. This increase was partially offset by decreases in capitalized interest and the extension of the maturity date of the company's prior term loans, which deferred a portion of the non-cash amortization of financing expenses to future periods, resulting in lower non-cash interest in the fourth quarter of 2022 compared to the fourth quarter of 2021.

For the quarter ended December 31, 2022, the company recorded a net loss of $9.2 million or $0.15 per diluted share, as compared to a net loss of $2.4 million or $0.04 per diluted share, for the comparable period of 2021. Net loss for the quarter ended December 31, 2022 included refinancing costs, loss on extinguishment of debt and tax expense of $7.9 million, or $0.13 per diluted share. Historical EBITDA, as adjusted\* for the period was $5.3 million compared to $3.2 million in the prior year period.

**<u>Financial Results for the Twelve Months Ended December 31, 2022</u>**

Revenue for the year ended December 31, 2022 was $90.2 million, compared to $75.4 million for 2021. The increase of $14.8 million in revenue was primarily driven by an increase in European Ritalin LA demand from the company's new customer InfectoPharm, as well as an increase in revenue from the company's largest commercial customer Teva, correlated with pull through in demand resulting from market share gains against the sole competitor for the Verapamil SR products. In addition, there were higher revenues from the company's clinical trial materials business as well as a full year of revenue resulting from the acquisition of IriSys compared to approximately five months of revenue in 2021. The increase in revenue was partially offset by a decline in revenue from Lannett's commercial sales of the Verapamil PM products.

Cost of sales for the year ended December 31, 2022 was $67.1 million, compared to $55.6 million in 2021. The cost of sales increase of $11.5 million was primarily due to the acquisition of the San Diego facility and certain 2021 employment incentive tax credits that were not repeated in 2022 resulting in increased expense in 2022. These increases were partially offset by the reallocation of expenses reflecting the post-acquisition organizational structure.

Selling, general and administrative expenses for the year ended December 31, 2022 were $21.9 million, compared to $18.4 million in 2021. The increase of $3.5 million was primarily related to costs associated with the debt refinancing in the fourth quarter of 2022 and increased personnel costs tied to the reallocation of expenses. Specifically, effective October 1, 2021, certain employees who previously supported the company's plant operations, now support the company's multi-site organization structure and operations. Accordingly, expenses associated with these employees have been reclassified from cost of sales to selling, general and administrative expenses. These increases were offset by lower IriSys acquisition and integration costs.

Interest expense was $14.1 million and $15.1 million for the twelve months of 2022 and 2021, respectively. The decrease of $1.0 million was primarily due to the extension of the maturity date of the company's prior term loans, which deferred a portion of the non-cash amortization of financing expenses to future periods and increased capitalized interest. These decreases were partially offset by a full period of interest on the debt portion of the IriSys acquisition purchase price and an increase in the variable LIBOR component of interest on prior term loans with Athyrium.

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For the year ended December 31, 2022, Societal reported a net loss of $19.9 million, or $0.34 per diluted share, compared to a net loss of $11.4 million, or $0.26 per diluted share, for 2021. Net loss for the year ended December 31, 2022 included refinancing costs, loss on extinguishment of debt and tax expense of $7.9 million, or $0.14 per diluted share. Historical EBITDA, as adjusted\* for the year ended December 31, 2022 was $16.2 million compared to $16.6 million in the prior year period. During the twelve-month period, lower sales of Verapamil PM by Lannett, negatively impacted Historical EBITDA, as adjusted\* by approximately $2.3 million as compared to the 2021 period.

At December 31, 2022, Societal had cash and cash equivalents of $15.0 million compared to $25.2 million as of the end of the prior fiscal year.

**<u>2023 Guidance</u>**

For the full year 2023, the company is projecting revenue of between $94 and $100 million and an EBITDA, as adjusted\* of between $15 and $18 million.

\* EBITDA, as adjusted and Historical EBITDA, as adjusted\* are non-GAAP financial measures (see reconciliation of non-GAAP financial measures at the end of this release).

**<u>Non-GAAP Financial Measures</u>**

To supplement Societal's financial results determined by U.S. generally accepted accounting principles ("GAAP"), the company monitors certain non-GAAP information for the business, including EBITDA, as adjusted, and previously Historical EBITDA, as adjusted. The company believes that these non-GAAP financial measures are helpful in understanding the business as they are useful to investors in allowing for greater transparency of supplemental information used by management. These measures are used by investors, as well as management in assessing the company's performance. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, reported GAAP results. Further, Non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared. Please see the section of this press release titled "Reconciliation of GAAP to Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures.

**<u>Webcast</u>**

Societal CDMO management will be hosting a webcast today, March 1, 2023, beginning at 4:30 p.m. ET. The webcast may be accessed via "Investor Events" in the Investor section of the company's website, https://ir.societalcdmo.com/events. An archived webcast will be available on the company's website approximately two hours after the event and will be available for 30 days.

**<u>About Societal CDMO</u>**

Societal CDMO (NASDAQ: SCTL) is a bi-coastal contract development and manufacturing organization (CDMO) with capabilities spanning pre-Investigational New Drug (IND) development to commercial manufacturing and packaging for a wide range of therapeutic dosage forms with a primary focus in the area of small molecules. With an expertise in solving complex manufacturing problems, Societal CDMO is a leading CDMO providing therapeutic development, end-to-end regulatory support, clinical and commercial manufacturing, aseptic fill/finish, lyophilization, packaging and logistics services to the global pharmaceutical market.

In addition to our experience in handling DEA controlled substances and developing and manufacturing modified-release dosage forms, Societal CDMO has the expertise to deliver on our clients' pharmaceutical development and manufacturing projects, regardless of complexity level. We do all of this in our best-in-class facilities, which total 145,000 square feet, in Gainesville, Georgia and San Diego, California.

Societal CDMO: Bringing Science to Society. For more information about Societal CDMO's customer solutions, visit societalcdmo.com.

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**<u>Cautionary Statement Regarding Forward Looking Statements</u>**

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, among other things, relate to the company's financial guidance; ability to manage costs and to achieve its financial goals; to operate under lending covenants; to close its land sale transaction on the anticipated timeline; and to maintain relationships with CDMO commercial partners and develop additional commercial partnerships. The words "anticipate", "believe", "correlate", "could", "estimate", "upcoming", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases may be used to identify forward-looking statements in this press release. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Factors that could cause the company's actual outcomes to differ materially from those expressed in or underlying these forward-looking statements include, but are not limited to, unstable market and macroeconomic conditions, including any adverse impact on the customer ordering patterns or inventory rebalancing or disruption in raw materials or supply chain; demand for the company's services, which depends in part on customers' research and development funding, their clinical plans and the market success of their products; customers' changing inventory requirements and manufacturing plans; customers and prospective customers decisions to move forward with the company's manufacturing services; the average profitability, or mix, of the products the company manufactures; the company's ability to enhance existing or introduce new services in a timely manner; fluctuations in the costs, availability, and suitability of the components of the products the company manufactures, including active pharmaceutical ingredients, excipients, purchased components and raw materials, or the company's customers facing increasing or new competition; the Company's ability to collect on customers' receivable balances; the extent to which health epidemics and other outbreaks of communicable diseases could disrupt our operations; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission at www.sec.gov. These forward-looking statements are based on information currently available to us, and we assume no obligation to update any forward-looking statements except as required by applicable law.

**<u>Contacts</u>**

Stephanie Diaz (Investors)

Vida Strategic Partners

(415) 675-7401

sdiaz@vidasp.com

Tim Brons (Media)

Vida Strategic Partners

(415) 675-7402

tbrons@vidasp.com

Ryan D. Lake (CFO)

Societal CDMO

(770) 531-8365

ryan.lake@societalcdmo.com

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**SOCIETAL CDMO, INC. AND SUBSIDIARIES**

Summary of Operating Results

(Unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended December 31,** | **Three months ended December 31,** |  |  |
| **(dollars in thousands, except per share amounts)** | **2022** | **2021** | **Change** | **%** |
| Revenue | $24279 | $22303 | $1976 | 9% |
| Cost of sales (excluding amortization of intangible assets) | 17437 | 15706 | 1731 | 11% |
| &nbsp;&nbsp;&nbsp;Gross margin | 28% | 30% |  |  |
| Selling, general and administrative expenses | 6009 | 5298 | 711 | 13% |
| Amortization of intangible assets | 220 | 202 | 18 | 9% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 23666 | 21206 | 2460 | 12% |
| Operating income | 613 | 1097 | (484) | -44% |
| &nbsp;&nbsp;&nbsp;Interest expense | (3681) | (3454) | (227) | 7% |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (4996) |  | (4996) | n/a |
| Loss before income taxes | (8064) | (2357) | (5707) | 242% |
| &nbsp;&nbsp;&nbsp;Income tax expense | 1105 |  | 1105 | n/a |
| Net loss | $(9169) | $(2357) | $(6812) | 289% |
| Loss per share, diluted | $(0.15) | $(0.04) | $(0.11) | 275% |
| Historical EBITDA, as adjusted\* | $5327 | $3254 | $2073 | 64% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |  |  |
| **(dollars in thousands, except per share amounts)** | **2022** | **2021** | **Change** | **%** |
| Revenue | $90214 | $75360 | $14854 | 20% |
| Cost of sales (excluding amortization of intangible assets) | 67076 | 55537 | 11539 | 21% |
| &nbsp;&nbsp;&nbsp;Gross margin | 26% | 26% |  |  |
| Selling, general and administrative expenses | 21954 | 18374 | 3580 | 19% |
| Amortization of intangible assets | 905 | 1037 | (132) | -13% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 89935 | 74948 | 14987 | 20% |
| Operating income | 279 | 412 | (133) | -32% |
| &nbsp;&nbsp;&nbsp;Interest expense | (14059) | (15134) | 1075 | -7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on extinguishment of debt | (4996) | 3352 | (8348) | -249% |
| Loss before income taxes | (18776) | (11370) | (7406) | 65% |
| &nbsp;&nbsp;&nbsp;Income tax expense | 1105 |  | 1105 | n/a |
| Net loss | $(19881) | $(11370) | (8511) | 75% |
| Loss per share, diluted | $(0.34) | $(0.26) | $(0.08) | 31% |
| Historical EBITDA, as adjusted\* | $16195 | $16599 | $(404) | -2% |

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\* Historical EBITDA, as adjusted, is a non-GAAP financial measure (see reconciliation of non-GAAP financial measures at the end of this release).

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**SOCIETAL CDMO, INC. AND SUBSIDIARIES**

Reconciliation of GAAP to Non-GAAP Measures

(Unaudited)

To supplement the company's financial results determined by U.S. generally accepted accounting principles ("GAAP"), the company has disclosed in the tables below the following non-GAAP information about EBITDA, as adjusted and Historical EBITDA, as adjusted.

EBITDA, as adjusted, is net income or loss as determined under GAAP excluding interest expense, income tax expense, depreciation, amortization, non-cash stock-based compensation, costs related to the acquisition and integration of IriSys, and costs related to the debt refinancing.

Historical EBITDA, as adjusted, is net income or loss as determined under GAAP excluding interest expense, income tax expense, depreciation, amortization, non-cash stock-based compensation, costs related to the acquisition and integration of IriSys, and costs related to the debt refinancing, as well as the impact of Accounting Standards Update 2014-09 in order to remove the impact of the timing of revenue recognized from profit-sharing arrangements upon transfer of control of the product, which more closely aligns revenue with expected cash receipt, and forgiveness of the COVID-19 relief note.

The company believes that non-GAAP financial measures are helpful in understanding its business as it is useful to investors in allowing for greater transparency of supplemental information used by management. EBITDA, as adjusted and Historical EBITDA, as adjusted, are used by investors, as well as management in assessing the company's performance. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, reported GAAP results. Further, Non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.

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**Fourth quarter and full year results**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended December 31,** | **Three months ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| (amounts in thousands) | **2022** | **2021** | **2022** | **2021** |
| Net loss (GAAP) | $(9169) | $(2357) | $(19881) | $(11370) |
| Interest expense | 3681 | 3454 | 14059 | 15134 |
| Income tax expense | 1105 |  | 1105 |  |
| Depreciation | 1901 | 1728 | 7413 | 6531 |
| Amortization of intangible assets | 220 | 209 | 905 | 1037 |
| Stock-based compensation | 1279 | 133 | 5426 | 6514 |
| Deal and integration costs (a) | 386 | 956 | 943 | 2222 |
| Refinancing costs and losses (b) | 6831 |  | 6831 |  |
| Forgiveness of COVID-19 relief note (c) |  |  |  | (3352) |
| Revenue recognition (d) | (907) | (869) | (606) | (117) |
| &nbsp;&nbsp;&nbsp;Historical EBITDA, as adjusted | 5327 | 3254 | 16195 | 16599 |
| Eliminate revenue recognition adjustment | 907 | 869 | 606 | 117 |
| &nbsp;&nbsp;&nbsp;EBITDA, as adjusted | $6234 | $4123 | $16801 | $16716 |

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**2023 guidance compared to 2022 full year results**

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| | | |
|:---|:---|:---|
|  | **Year ending / ended December 31,** | **Year ending / ended December 31,** |
| (amounts in thousands) | **2023** | **2022** |
|  | **(estimate)** |  |
| Net loss (GAAP) | $(7500) - (4500) | $(19881) |
| Interest expense | 8200 | 14059 |
| Income tax expense | 100 | 1105 |
| Depreciation | 8300 | 7413 |
| Amortization of intangible assets | 900 | 905 |
| Stock-based compensation | 5000 | 5426 |
| Deal and integration costs (a) |  | 943 |
| Refinancing costs and losses (b) |  | 6831 |
| &nbsp;&nbsp;&nbsp;EBITDA, as adjusted | $15000 - 18000 | $16801 |

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&nbsp;&nbsp;&nbsp;&nbsp;a)Costs related to the acquisition and integration of IriSys.

&nbsp;&nbsp;&nbsp;&nbsp;b)In December 2022, as a result of the refinancing the credit agreement with Athyrium, the Company recorded a loss on extinguishment of debt for the write-off of unamortized deferred financing costs and incurred other associated costs.

&nbsp;&nbsp;&nbsp;&nbsp;c)In 2021, the Company received forgiveness of principal and interest on a note issued under a Federal COVID-19 relief program and recorded a gain on extinguishment of debt.

&nbsp;&nbsp;&nbsp;&nbsp;d)To exclude the impact of Accounting Standards Update 2014-09, "Revenue Recognition," related to non-cash changes in its contract asset.

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## Ex-99

![Slide 1](sctl-ex99_2s1.jpg)

Corporate Presentation March 2023

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Investment Highlights Re-Organized, Rebranded Company Poised for Growth and Diversification Success State-of-the-Art, Newly Upgraded Facilities, Available Capacity in U.S. 30+ Years of Successful Commercial Manufacturing for Multiple Global Customers Solid Base of Development and Commercial Customers Highly Experienced Management Team and Talented Workforce to Drive Future Growth Strong Regulatory Track Record Spanning Multiple Countries and Agencies NDA Ownership and Profit-Sharing Structure for Certain Drug Assets End-to-End Capabilities with Unique Expertise Solving a Wide Array of Complex Dosage Formulation & Development Challenges 3

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Societal is a Leading CDMO with a Wide Array of Dosage Form Capabilities DEA-regulated and high potency compounds Regulatory guidance and support from concept through commercial Flexible-scale clinical and commercial manufacturing and packaging Simple to complex formulation approaches Modified Release (MR) technology Phase-appropriate analytical approaches LIPOSOMES AND NANO/MICRO-PARTICLES PELLET/ POWDER/LIQUID FILLED CAPSULES ORAL LIQUIDS TABLETS OPHTHALMIC DROPPERS STERILE INJECTABLES TOPICALS Manufacturing Development 4

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14 CDMO Market Tailwinds in U.S. Remain Despite Current Market Conditions Drug Candidates by Therapeutic Compound(3) Total % Outsourced(2) 28.8% 29.6% 30.4% 31.3% 32.2% 33.7% 35.7% Continued outsourced penetration as biotech and pharma sponsors recognize the value of CDMO services 6.6% 6.4% 6.1% 8.1% 2015-2021 CAGR Large and Growing CDMO Market(1) Source: William Blair Equity Research. Drug product outsourced market. Source: QuintilesIMS / IQVIA Societal's market focus is ~50% of total CDMO market Development Phase Small Oligos Large ADCs Others Total Phase 1 1,458 66 1,076 47 459 3,106 Phase 2 1,560 83 1,057 29 496 3,225 Phase 3 506 21 355 6 114 1,002 Registration 203 4 119 -- 70 396 Launched 2,114 12 1,182 6 550 3,864 Total 5,841 186 3,789 88 1,689 11,593 5

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Elements of 1-3 Year Strategic Plan - 2023 The Company's Strategic Plan is broken into five categories, each with three sub-categories: Market Segmentation & Corporate Identity Differentiated Sales Strategies Geographical (US) Advantage Strengthened Brand Identity Capabilities Optimization & Expansion Fill Existing Capacities Scalable, Successful Ways of Working Expanded Capabilities Client Experience & Trust Superior Client Experience Trusted, Phase Appropriate Quality System Leverage Regulatory, Supply Chain Expertise Employee Experience & Culture Excellent Employee Experience Inspiring Culture Supportive Environment Financial Strength Revenue, EBITDA growth Cash Management Investor Relations

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Market Segmentation & Corporate Identity Capabilities Optimization & Expansion High potency suite generating revenues Injectables (vials) line, lyophilizer generating revenues Packaging/labeling contract(s) awarded, sales increasing Client Experience & Trust Multi-level contact approach with clients generating deeper relationships New sales and proposal writing processes well-received by client base Employee Experience & Culture Created unified set of cultural values New employee appreciation and recognition programs In-house talent acquisition, desirable culture resulting in successful recruiting wins Financial Strength Completed capital restructuring that achieves ~70% debt reduction, resulting in significant cash interest savings Frequent, transparent and meaningful interactions with investors Good momentum with growing sales pipeline More focused management of legacy programs Successful company rebranding Strategic Plan Accomplishments - 2022 The Company has been delivering on each of the five categories as follows:

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Market Segmentation Differentiated Sales Strategies: Deploy unique sales and marketing strategies based on each market segment we are serving: 8 Legacy oral solid dose products including those with profit sharing economics (e.g. Verapamil, Ritalin). Commercial OSD CDMO. Tech transfer and Second Source opportunities, which generally could be: 1) Branded, commercial oral solid dose products being on-shored to the US or for which Societal can serve as a second source provider. 2) Oral solid dose late life cycle and generic products which can be manufactured profitably due to their complexity or volumes and/or occupy currently idle capacity. Legacy Products. Legacy Products Early Development CDMO. Commercial OSD CDMO Novel, innovator-developed small molecule products of multiple dosage forms. Early Development CDMO.

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Branded Commercial Product Tech Transfer Exclusive U.S. based Manufacturer Long term Contractual Master Services & Supply Agreement Annual minimum purchase requirements Expanding Base of Commercial Customers End-to-end solutions for customers from early-stage development to scaled commercial production Verapamil PM/Verelan™ SR/PM Societal owns NDA and DMF In event of termination Societal can switch distributors within a few months Branded & authorized generic sustained release capsules Complex formulation and manufacturing – proprietary know-how Exclusive sole supplier Mature single player market Verapamil SR Societal owns NDA and DMF Authorized generic sustained release capsules, including an exclusive dosage form Complex formulation and manufacturing–proprietary 'know-how' Exclusive sole supplier Mature two player market – Teva maintains ~70% market share Ritalin LA™/Focalin XR Societal owns DMF Branded & authorized generic sustained release capsules – sold US/OUS Complex formulation and manufacturing Exclusive sole supplier Mature multi-player market Regulatory & tech transfer risk and cost given Societal quality track record and lifecycle of product Donnatal® Elixir and Tablets Exclusive sole supplier, 5yr agreement through beginning of 2025 4 APIs and multi-step manufacturing process Annual minimum purchase requirements 9 Societal Commercial Customers Strong commercial customer base stabilizes business and minimizes fluctuations in revenues Long-term relationships (20+ years) with key commercial partners and fully contracted through 2024 - 2025 Commercial customer forecasts (generally 12-to-24-month projections) with binding PO's typically for first three months, provides demand visibility and helps optimize supply chain execution Tech Transfers in Process Unnamed Oral Solid Dose Tech Transfer & two development programs Ritalin® IR tablets

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Sales by Product Life Cycle – 2018 Revenue Size of Icon Represents 2018 Revenue Value $1 million >$15 million $0.5 million Teva Novartis Clinical Color Key Shape Key Gainesville, GA Oral Solid Dose (OSD) Near Commercial Commercial Mature Commercial Supply Lannett Pernix For illustrative purposes only, information presented is not risk and probability adjusted, and the actual growth of the product may vary significantly. The graph does not assume new customer additions or attrition. The information provided is illustrative only, the growth cycle may not be achieved and there is continued uncertainty relating to any guidance contained herein. There can be no assurance that such results will occur or that such results will be materially different from actual results.

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Sales by Product Life Cycle – 2022 Revenue Size of Icon Represents 2022 Revenue Value $1 million >$15 million $0.5 million Lannett Teva Novartis Advanz 4 P1 2 Pre-Clin 3 P1 9 P1 6 P1 Clinical 3 P2 Color Key Shape Key Gainesville, GA Sterile Injectable Oral Solid Dose (OSD) Other Dosage Form (ADF) San Diego, CA Near Commercial Commercial Mature Commercial Supply 2 P2 For illustrative purposes only, information presented is not risk and probability adjusted, and the actual growth of the product may vary significantly. The graph does not assume new customer additions or attrition. The information provided is illustrative only, the growth cycle may not be achieved and there is continued uncertainty relating to any guidance contained herein. There can be no assurance that such results will occur or that such results will be materially different from actual results. 3 Pre-Clin 4 Pre-Clin InfectoPharm

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Sales by Product Life Cycle – 2023 Est. Revenue (1) Size of Icon Represents 2023 Revenue Value $1 million >$15 million $0.5 million Not Risk Adj for Attrition Lannett Teva Advanz Clinical Color Key Shape Key Gainesville, GA Sterile Injectable Oral Solid Dose (OSD) Other Dosage Form (ADF) San Diego, CA Near Commercial Commercial Mature Commercial Supply For illustrative purposes only, information presented is not risk and probability adjusted, and the actual growth of the product may vary significantly. The graph does not assume new customer additions or attrition. The information provided is illustrative only, the growth cycle may not be achieved and there is continued uncertainty relating to any guidance contained herein. There can be no assurance that such results will occur or that such results will be materially different from actual results. InfectoPharm Represents new business projects which are signed as of February 2023 Novartis

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Sales by Product Life Cycle – 2026 Est. Revenue (1) Size of Icon Represents 2026 Revenue Value $1 million >$15 million $0.5 million Not Risk Adj for Attrition Clinical Color Key Shape Key Gainesville, GA Sterile Injectable Oral Solid Dose (OSD) Other Dosage Form (ADF) San Diego, CA Near Commercial Commercial Mature Commercial Supply For illustrative purposes only, information presented is not risk and probability adjusted, and the actual growth of the product may vary significantly. The graph does not assume new customer additions or attrition. The information provided is illustrative only, the growth cycle may not be achieved and there is continued uncertainty relating to any guidance contained herein. There can be no assurance that such results will occur or that such results will be materially different from actual results. Represents new business projects which are signed as of February 2023 Teva InfectoPharm Advanz Lannett Novartis

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![Slide 14](sctl-ex99_2s14.jpg)

COMMERCIAL 4 Commercial Products 3 Commercial Customers Capsule Mfg – No Tableting DEVELOPMENT 4 Development Customers $5.1M Revenue Societal Transformation & Growth CAPABILITIES & SERVICES HiPo Development & Clinical Clinical Trial Packaging Commercial High Shear Granulation Commercial Fluid Bed Dryer Customer Proprietary Technology Re-commissioning Powder Coating Sterile vial filling Sterile Lyophilization Sterile Liposomes and Nanoparticles Oral liquids (solution, suspensions) Liquid/semi-solid filled capsules or powder filled capsules Topical gels, Ointments, Creams and Lotions COMMERCIAL 6 Commercial Products 5 Commercial Customers 4 Technical Transfers Launching First Commercial Tablet DEVELOPMENT Record High Revenue 2022 $19 million 2023 Est. $25 to $28 million ~45 Active Development Customers ~66 Development Projects 2020 2023

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Signed New Business Overview (1) Size of Icon Represents 2023 Revenue Value Pre/Early Development Phase 1 Phase 2 Phase 3/ Registration Tech Transfer OSD Sterile OSD OSD OSD ADF ADF ADF OSD OSD OSD OSD Sterile Sterile Color Key Shape Key Gainesville, GA Sterile Injectable Oral Solid Dose (OSD) Other Dosage Form (ADF) San Diego, CA Commercial Supply Clinical Phase Near Commercial 12% 29% 6% 15% 38% % of Portfolio Value Represents new business projects which are signed as of February 2023 OSD Sterile 15 OSD OSD OSD OSD ADF Sterile Sterile OSD OSD OSD OSD OSD OSD OSD Sterile ADF OSD ADF ADF ADF ADF ADF ADF ADF ADF ADF ADF ADF Sterile Sterile Sterile Sterile Sterile Sterile Sterile Sterile OSD OSD OSD OSD OSD OSD OSD OSD OSD OSD OSD OSD OSD

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Revenue Trend by Type Societal As Reported Revenue 58% ~35%- 50% (-4%) – 0% 13% 84%:16% 79%:21% 70%:30% Comm. Rev $ to Dev Rev $20% 4%-11% Because commercial revenue is approximately 80% of total revenue, to achieve mid to high single digit growth rates, our development revenue is growing at a much higher rate. $25 - $28 Bridge to 2023 Earned Development Revenue $24 Booked Business for Future Years Booked Business for 2023

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New Business Commentary Pipeline by Value Proposals Won by Filing Type Signed Sales by Therapeutic Area: '21 and '22 15 New Customers in 2022 and added 22 new programs amongst our customer base During 2022, signed over 170 new or expanded/scope changes for projects with 33 different customers Tripled our win rate during 2022 Proposals w/ Customer Signed Proposals Written $27.2M $41.5M $130M 71 Expanding Our Development Portfolio $17.4M $26.9M $59.4M 2021 2022

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State-of-the-Art Facilities Societal™ CDMO – Gould Facility Located in Gainesville, GA Size: 24,000 ft2 ~35 FTEs Opened 2018 Current capacity (single shift): ~30-40% Leased through 2025 with renewal options Located in Gainesville, GA Size: 97,000 ft2 ~180 FTEs Opened ~1985 Current capacity (single shift): ~60% Leased through 2042 with renewal options Chestnut performs development and cGMP (pre-commercial) development manufacturing before tech transfer to Gould site. High potency commercial production remains at Chestnut Significant experience transitioning projects from late-phase development to robust, long-term commercial production Societal™ CDMO – Chestnut Facility Societal™ CDMO – San Diego Located in San Diego, CA Size: 24,500 ft2 ~60 FTEs Opened 2014 Current capacity (single shift): ~30-40%(1) State of the art facility, FDA and FDB (CA) inspected San Diego performs development work, focusing on Advanced Dosage Forms – Development Services (aseptic fill / finish, inhalation, etc.) Commercial Development California is the #1 state for life sciences VC investment(2) Excludes new vial filler and lyophilizer services. Source: California Life Science Association and PWC's California Life Sciences Report 2020. 18

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Significant Progress on Senior Debt Reduction Reduced interest / rent payments $13m $7m $6m Term loan principal Annualized cash interest expense Debt reduction plan 2022 Events (completed): New $37m term loan with RBC, $35m gross common and preferred equity raise and $39m gross sale-leaseback of Gainesville commercial site closed December 2022 with proceeds used to repay $100m of Athyrium term loans and pay fees & expenses 2023 Events (in process): $9m of anticipated gross proceeds from sale of 121 acres of land and $3m of cash on balance sheet will be used to pay down $12m of the principal under the term loan with RBC. Land sale is currently under contract and expected to close second half 2023 Lease of Gainesville commercial site (9% lease rate with 3% annual base rent increases) RBC term loan interest (9% interest at reduced borrowings, matures Dec '25) Athyrium term loans (13% interest, repaid December 2022) Net debt leverage >6x ~2x <2x

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Full year 2023 Guidance Revenue: $94 to $100 million, an increase of 4% - 11% over 2022 Net loss: $(7.5) to $(4.5) million EBITDA, as adjusted(1): $15 to $18 million Financial Highlights Revenue and operating cash flow positive contract development and manufacturing (CDMO) business Full Year 2022 financial results Revenues were $90.2 million, an increase of 20% from 2021 Net loss: $19.9 million, includes $7.9 million in debt extinguishment, refinancing costs & tax expense Historical EBITDA, as adjusted(1), was $16.2 million, down $0.4 million from 2021 2022 highlights Signed Highest Number of New Business Agreements in Company's CDMO History for Two Consecutive Quarters Clinical Trial Materials Development Business Grew by 58% in 2022 Significantly Expanded and Diversified Customer Base Executed Multi-Step Strategy Resulting in Reduction of Debt and Strengthened Financial Position EBITDA, as adjusted and Historical EBITDA, as adjusted are non-GAAP financial measures. See reconciliation on final slide of presentation.

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Full year 2022 results: Year ended December 31, (amounts in thousands) 2022 2021 Net loss (GAAP) $(19,881) $(11,370) Interest expense 14,059 15,134 Income tax expense 1,105 — Depreciation 7,413 6,531 Amortization of intangible assets 905 1,037 Stock-based compensation 5,426 6,514 Deal and integration costs (a) 943 2,222 Refinancing costs and losses (b) 6,831 — Forgiveness of COVID-19 relief note (c) — (3,352) Revenue recognition (d) (606) (117) Historical EBITDA, as adjusted 16,195 16,599 Eliminate revenue recognition adjustment 606 117 EBITDA, as adjusted $16,801 $16,716 Reconciliation of Non-GAAP Financial Measures (unaudited) To supplement the company's financial results determined by U.S. generally accepted accounting principles ("GAAP"), the company has disclosed in the tables below the following non-GAAP information about EBITDA, as adjusted and Historical EBITDA, as adjusted. EBITDA, as adjusted, is net income or loss as determined under GAAP excluding interest expense, income tax expense, depreciation, amortization, non-cash stock-based compensation, costs related to the acquisition and integration of IriSys, and costs related to the debt refinancing. Historical EBITDA, as adjusted, is net income or loss as determined under GAAP excluding interest expense, income tax expense, depreciation, amortization, non-cash stock-based compensation, costs related to the acquisition and integration of IriSys, and costs related to the debt refinancing, as well as the impact of Accounting Standards Update 2014-09 in order to remove the impact of the timing of revenue recognized from profit-sharing arrangements upon transfer of control of the product, which more closely aligns revenue with expected cash receipt, and forgiveness of the COVID-19 relief note. The company believes that non-GAAP financial measures are helpful in understanding its business as it is useful to investors in allowing for greater transparency of supplemental information used by management. EBITDA, as adjusted and Historical EBITDA, as adjusted, are used by investors, as well as management in assessing the company's performance. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, reported GAAP results. Further, Non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared. Costs related to the acquisition and integration of IriSys. In December 2022, as a result of the refinancing the credit agreement with Athyrium, the Company recorded a loss on extinguishment of debt for the write-off of unamortized deferred financing costs and incurred other associated costs. In 2021, the Company received forgiveness of principal and interest on a note issued under a Federal COVID-19 relief program and recorded a gain on extinguishment of debt. To exclude the impact of Accounting Standards Update 2014-09, "Revenue Recognition," related to non-cash changes in its contract asset. Full year 2023 guidance vs. 2022: Year ending / ended December 31, (amounts in thousands) 2023 2022 Net loss (GAAP) $(7,500) – (4,500) $(19,881) Interest expense 8,200 14,059 Income tax expense 100 1,105 Depreciation 8,300 7,413 Amortization of intangible assets 900 905 Stock-based compensation 5,000 5,426 Deal and integration costs (a) — 943 Refinancing costs and losses (b) — 6,831 EBITDA, as adjusted $15,000 – 18,000 $16,801

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