Greetings and welcome to the Collegium Pharmaceutical First Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded. I will now turn the call over to Ian Karp, Head of Investor Relations at Collegium.

Thanks, Maria, and welcome to Collegium Pharmaceutical’s first quarter earnings conference call. I’m joined today by Vikram Karnani, our President and Chief Executive Officer; Colleen Tupper, our Chief Financial Officer; and Scott Dreyer, our Chief Commercial Officer. Before we begin today’s call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, the risks that we may not be able to successfully commercialize our products, that we may be – that we may incur significant expense in doing so and that we may not prevail in current or future litigation pertaining to our business. These risks and other risks of the company are detailed in the company’s periodic reports filed with the SEC. Our future results may differ materially from our current expectations discussed today. Our earnings press release and this call will include discussions of certain non-GAAP information. You can find our press release, including relevant non-GAAP reconciliations on our corporate website. And with that, I’ll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian. Good afternoon and thank you for joining the call. Today, we will discuss Collegium’s first quarter 2025 financial performance and provide an update on the company’s recent progress. As Collegium embarks on a new phase of growth, we remain committed to 3 very clear strategic priorities: first, to drive significant growth in Jornay PM; second, to maximize the value of our pain portfolio; and third, to strategically deploy capital to further enhance shareholder value. I am pleased to report we have made significant progress on each of these 3 priorities in the first quarter. And importantly, these accomplishments bring us one step closer towards achieving our goal of building a leading diversified biopharmaceutical company. Collegium was founded with an ambition to become the leader in responsible pain management and we’ve spent the past decade building a portfolio of differentiated responsible pain medicines. Today, we are the leader in responsible pain management and have also expanded our vision further as we strive to improve the lives of people living with serious medical conditions beyond pain. In fact, we have already begun to diversify our business through the acquisition last year of an important medicine, Jornay PM, for the treatment of ADHD. None of our past success would have been possible without the leadership of our Founder, Mike Heffernan, who will be retiring as Chairman of our Board of Directors in the coming weeks. I’d like to take this opportunity to formally thank Mike for his dedication to patients, his bold strategic vision and for positioning the company for continued growth in 2025 and beyond. I’d also like to recognize our employees for the critical role that they play in our growth and success. Collegium’s dedication to fostering a collaborative, transparent and engaged culture was recently celebrated by our…

Thanks, Vikram, and good afternoon, everyone. Jornay is off to an extremely strong start to the year, a clear continuation of the positive momentum we generated in 2024. And importantly, recent script growth was accomplished in advance of our field force expansion and any new commercial initiatives we’re deploying through the remainder of the year. Underpinning this growth is Jornay’s highly differentiated product profile. It’s the only stimulant ADHD medicine with once-daily evening dosing that provides symptom control upon awakening through the afternoon and into the evening, which can limit the need for short-acting stimulant add-ons. This is important for pediatric, adolescent and adult patients because it eliminates the need to dose throughout the day at school or at work. In fact, in market research, HCPs ranked Jornay as the #1 recognized brand, both for achieving all-day symptom control with 1 dose and for controlling evening symptoms after school or work. Jornay is also the highest rated brand in terms of product favorability. And when patients and caregivers request to try Jornay, HCPs honor that request. We plan to further leverage this dynamic through targeted marketing efforts for the remainder of the year. The first quarter of 2025, our second full quarter of Jornay ownership, was marked by significant prescription growth. This growth was particularly impressive when you consider the typical first quarter headwinds that can impact branded drugs in the highly genericized ADHD category as annual patient deductibles reset and out-of-pocket cost to patients increase. In fact, prescriptions during the quarter grew 24% year-over-year and Jornay’s market share of the long-acting branded methylphenidate market increased to 20.3%, up 6.4% year-over-year. Importantly, Jornay has broad and growing prescriber base with over 25,000 prescribers in the first quarter, up 22% compared to the first quarter of 2024. This growing base of…

Thanks, Scott. Good afternoon, everyone. In the first quarter of 2025, we delivered strong financial results, including growing revenue 23% year-over-year, making targeted investments in our lead growth driver, Jornay, and generating strong cash flows from our pain business. Financial highlights for the first quarter of 2025 include net product revenues were $177.8 million, up 23% year-over-year. Jornay net revenue was $28.5 million, which represents our second full quarter of ownership. Belbuca net revenue was $51.7 million, up 2% year-over-year. Xtampza net revenue was $47.6 million, up 4% year-over-year. And Nucynta franchise net revenue was $47.1 million, up 4% year-over-year. GAAP operating expenses were $75.6 million, up 80% year-over-year. Non-GAAP adjusted operating expenses were $62.2 million, up 80% year-over-year. The increase in operating expenses reflects ongoing costs to commercialize Jornay as well as the targeted investments we’ve made to drive growth, including the expansion of our sales force. GAAP net income was $2.4 million compared to net income of $27.7 million in the first quarter of 2024. As a reminder, net income in the first quarter was impacted by expenses associated with the Ironshore acquisition as well as executive transition expenses that do not represent ongoing operations. Non-GAAP adjusted EBITDA was $95.2 million, up 3% year-over-year. GAAP earnings per share was $0.08 basic and $0.07 diluted in the first quarter compared to GAAP earnings per share of $0.86 basic and $0.71 diluted in the prior year period. Non-GAAP adjusted earnings per share was $1.49 in the first quarter versus $1.45 in the first quarter of 2024. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. In addition, we generated $55.4 million in cash from operations and ended the quarter with $197.8 million in cash, cash equivalents and marketable securities as of March 31,…

Thanks, Colleen. We are proud of our strong performance in the first quarter. We generated stable cash flows from our pain portfolio, drove impressive growth in Jornay, strengthened our balance sheet and made investments to fuel our next phase of growth. We are on track to achieve our 2025 financial guidance and look to the future beyond 2025 from a position of financial strength. We remain focused on creating shareholder value and the strength of our balance sheet gives us the flexibility to maximize and grow our existing portfolio of differentiated medicines, while also prioritizing further diversification through disciplined business development and returning value to shareholders through share repurchases. With Jornay well on its way to becoming our lead growth driver, supported by the long-term durability of our pain portfolio and an industry-leading executive team, we are confident as we enter our next phase of growth. Ultimately, our greatest success will be our ability to improve the lives of people living with serious medical conditions. I will now open the call up for questions. Operator?

[Operator Instructions] Our first question comes from Les Sulewski with Truist Securities. Please proceed with your question.

Good evening. Thank you for taking my questions and congrats on the progress. So, I have a couple for Scott and then one for Vikram. Scott, so as we are heading to the tail end of the school year, how would you expect the Jornay scripts to trend before the new kind of season pick-up given the recent investment in the sales force? And then also touching on the sales force, is this an increasing touch points or is this more about a geographic expansion? And I have a follow-up to that.

Thanks for the question, Les. So, first to your question about seasonality, so yes, so there is an overall seasonality in the marketplace. So, essentially, what you will see when you look at weekly scripts is as we get to the May – end of May, June time period, depending on where you are in the country, there can be a little bit of a slowing of scripts a bit in the overall market because some people will have their child take a little bit of a holiday during the summer from their prescriptions. That then precedes the acceleration you see in back-to-school season, which hits usually in the mid-August time period and then carries well into the fall, last year carried to the beginning of December. So, that’s the seasonality you should expect when you look at the overall market in ADHD. When it comes to our expansion, yes, there is multiple levers that we pulled. So, first, in terms of touch points, we increased our target universe from about 17,000 healthcare professionals to 21,000. So, we are reaching more. But with the expansion of 55 and going from 125 to 180 reps, it wasn’t just about an increased reach to those new targets. It was also about increasing our frequency on the current targets. So, overall, what we are looking to see is through expanded reach and frequency, greater understanding of Jornay, greater adoption of Jornay. And from a script standpoint, as I have shared before, really seeing the impact start to kick in, in about six months is what typically you see in terms of acceleration of scripts. So, we have that more fourth quarter and then into 2026 and beyond.

That is helpful. And then looking beyond methylphenidate, is there an opportunity to utilize the Jornay PM delayed release technology and potentially apply to additional compounds, for example, Adderall or Modafinil? Have these conversations occurred internally? And what will be some of the required steps to push this through if this were the case?

Yes. I will take that one, Les. Those conversations, I believe I think occurred even before the acquisition happened. So, Ironshore had already explored using their technology for other compounds. And I believe the result of all of that work is the fact that we have Jornay, which is – which worked really well, the technology worked really well for methylphenidate.

Got it. Okay. And then, Vikram, maybe touch on a little bit on the recent color around potential BD plans given your are – you have kind of seeded now at Collegium. What’s kind of the appetite for a deal? And has the current change in the environment kind of impacted your outlook for potential deals? Thank you.

Yes. Great question. I think as we stated in our prepared remarks, we always look at capital deployment in a very strategic way for the company. And I think we have been consistent in our position that we will do the right thing to create value for our shareholders and that’s a combination of business development, if it’s the right time and the right deal, it’s we are paying down debt, which you have seen us do, and opportunistically repurchasing shares and returning value to our shareholders, which is exactly what we talked about today. So, I would expect that, that type of approach, that type of discipline will continue. And as far as your question about this particular market environment, does it increase or change our likelihood of getting a deal done. I don’t know that I would make a comment specifically around that. I think whether it’s this environment or otherwise, we are – as I have said before, we look to expand our portfolio of medicines. But I think we are going to do it in a very disciplined way, which is a strong track record that Collegium has had. Go the next question?

Our next question comes from Serge Belanger with Needham & Co. Please proceed with your question.

Hi. Good afternoon. A couple of Jornay questions for Scott. I guess the first one, can you remind us what the overall ADHD market growth has been recently? And secondly, also remind us the breakdown in the prescriber base between pediatrician and psychiatrists? And then lastly, you did highlight market share seeing some significant gains over the last year. Just curious where that market share is coming from? Is it from other branded products or really other generics in the ADHD market?

Alright. Serge, you gave me a few of them there. Alright. So, let’s start with market growth. Yes, the market is growing at about 5% to 6% overall. That’s been pretty consistent for the last few years and that’s where we expect the growth to continue going forward. When you look at the prescriber base, it’s pretty straightforward. It’s roughly 40% is pediatrician. The other 40% is neuropsychiatry. Some of those are Ped Neuropsychiatrists. And the remaining 20% is about half PCP and about half NPs or PAs, mid-levels that ladder up to the specialties. So, that’s the prescriber base that we are looking at there that drives the market and who we are focused on in our target audience. And then lastly, from a share perspective, yes, we have seen really strong share growth, right, growing to 20% this year year-over-year in the long-acting branded methylphenidate market. And basically, the biggest feeder of growth is the movement from generic immediate release products, right. That’s the biggest feed to the branded products and that’s what we see. And then we do get some switching from other branded products, but it’s mostly the generic immediate release that feeds our business.

Thank you.

Our next question comes from David Amsellem with Piper Sandler. Please proceed with your question.

Thanks. Just a few on my end. First, how large of a sales organization at steady state are you contemplating for Jornay PM, if I recall, when Vyvanse had exclusivity, Shire’s sales force was quite large, a good bit larger than what you have now. I am not saying that you are going to go there, but there obviously is a wide prescriber audience in the ADHD space. So, how are you thinking about that? Secondly, can you share your views on what kind of peak sales range you think is realistic for Jornay PM? And then lastly, a biz dev question. How large of a transaction could you contemplate given the current state of the capital structure? Thanks.

Yes. Thanks, David. Scott, why don’t you take the first question? I will take the question on peak sales. And then between Colleen and I, we will answer the last one.

Yes, that’s great. So, yes, so thanks for the question, David. On the sales force, look, we sized that 180 because that’s the right size now. We did a bottom up. We didn’t have any constraints. That’s reaching a target audience. That’s the right target audience to drive the brand with the right level of reach and frequency, having really productive territories. So, that’s what led to where we are right now. So, we evaluate that on a regular basis. Every year as part of our planning process, we will be looking at that, looking at the sales force, seeing if we need to make any adjustments on the edges. But that’s what the business demands right now. And to your Vyvanse comment, I think the big difference is that was such a highly branded and competitive marketplace. Now, if you look – where you see such genericization, right, we really have only a couple of players that we are competing with for share of voice. And so not only are we reaching the right customers, but we also feel like we have a really strong share of voice out there in the branded market.

The second question I think, David, you had was around peak sales for Jornay. We have not talked about peak sales for Jornay PM externally. Part of the reason is we have just gone through an expansion and we have only owned the medicine now for two quarters. What we would like to do is see the impact of the expansion, which as you can imagine, there is a bit of a lag time between folks going into the field and seeing the downstream effect on demand. I think once we have a better sense of the impact of the expansion, it will give us a sense of the trajectory and we will be in a much better place to talk about peak sales at that time. And I think that your last question was about what would be the size of a biz dev transaction that we would contemplate at this time. Maybe I can begin and I will have Colleen provide some additional color. But we – I don’t know that we have necessarily talked about size of transaction. I think what we have talked about is our ability to take on leverage if we need to. So, in terms of capacity, I think we have talked about the fact that last year, we ended with our net debt over EBITDA at about 1.8, 1.9. This quarter, we are already down to about 1.5 and we expect to end the year less than one. So, what I can say is that we – given the situation, given our ability to generate significant cash flows from operations, we feel that gives us enough capacity to do a meaningful transaction if the transaction comes along. We are not going to do a deal just to do one, but it’s got to be the right one. And Colleen, anything else you would add?

I think that’s right. I think the right deal for the right terms, we have sized from a debt perspective, we would be willing to potentially go up to 3x for a commercial asset. What you don’t have in that equation is what does the target bring for EBITDA, so we consider that as we are evaluating.

Okay. Thank you.

There are no further questions at this time. And I would now like to turn the floor back over to Vikram for closing comments.

Thank you everyone for joining the call today. I wish everybody a great evening.

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.