Collegium Pharmaceutical, Inc.

Greetings and welcome to the Collegium Pharmaceutical, Inc., third quarter 2020 conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, you may do so by pressing star one on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Alex Dasala, Head of Investor Relations for Collegium. Thank you. Please go ahead.

Welcome to Collegium Pharmaceutical's third quarter 2020 earnings conference call. This is Alex Dasala, Head of Investor Relations for Collegium. I am joined today by Joe Schifoni, our Chief Executive Officer, Paul Granley, 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 provision 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 impact of the COVID-19 pandemic, the risks that we may not successfully commercialize Exams at ER and the New Center Franchise, and that we may incur significant expense and may not prevail in current or future opioid industry litigation and investigations, patent infringement litigation or other litigation pertaining to our products. These risks and other risks of the company are detailed in the company's periodic reports filed with the Securities and Exchange Commission. Our future results may differ materially from our current expectations discussed today. Thanks, Alex. Good afternoon, and thank you, everyone, for joining the call.

I want to start by acknowledging the challenging situation the COVID-19 pandemic continues to present for so many people. Our thoughts and hearts go out to everyone who has been impacted. I am pleased to report that our people are healthy, our supply chain is secure, and our business is strong. In a year of extraordinary challenges, 2020 will be a transformative year for Collegium Pharmaceutical. We are on track to achieve our operational objectives in 2020, while concurrently setting the foundation for success in 2021. I want to take a moment to thank my colleagues at Collegium for their commitment to our mission to become the leader in responsible pain management. I appreciate the effort that they put forth every day and admire their adaptability and resolve. Business highlights for the third quarter include record net revenue of $79.2 million, which represents an 8.5% increase over the third quarter of 2019. Xtansya ER third quarter net revenue of $32.1 million which represents a 21% increase versus the third quarter of 2019. Total prescriptions were on 19% versus Q3 2019. As anticipated, Xtansya ER grew at a moderated rate on a sequential basis. and we expect prescriptions to grow at a similar rate in the fourth quarter. NuSynda franchise net revenue of $47.1 million, which represents a 1% increase versus the third quarter of 2019. Total prescriptions were down 10% versus Q3 2019, but it is worth noting that franchise prescriptions were stable sequentially and that Ducente ER TRX share has grown or been stable for six consecutive quarters. OPEX for the quarter was down compared to the third quarter of 2019 and sequentially. We were being committed to leveraging, not growing Collegium's cost structure in 2020 and beyond. We were profitable on a gap basis for the third consecutive quarter, meaningfully increased cash on hand and paying down debt. and we settled the TEVA Expanse ER and the litigation. The settlement contemplates a generic launch no earlier than September 2033. We believe this settlement confirms the strength of the Expanse ER patent state. Looking forward to 2021, we believe that we have set the foundation upon which Expanse ER will accelerate beginning in January and on which sequential annual revenue stability will be achieved with the nuisance of franchise. Our market active team has done a great job executing our portfolio payer strategy. As it pertains to Examsa ER, Collegium's market active team has secured additional exclusive ER oxycodone formulary wins that cover approximately 7 million commercial and Medicare Part D lots. The biggest new win is UnitedHealthcare's Medicare Part D, AARP, PPP preferred business, which is a high-control plan and the second-largest plan in terms of ER Oxycodone prescription. Starting January 1, 2021, Xtansyn ER will be the exclusive ER Oxycodone for over 92 million commercial and Part D lots. In addition, the team has secured parity formulary positions that cover approximately 5 million lives. These wins also take effect on January 1, 2021. From the perspective of managed care pull-through, our commercial team's focus in 2021 will be on three buckets of growth. New 2021 wins, 2020 exclusive wins, in the 2020 Austin Commercial Parity win, which covers approximately 17 million lives. With regards to the new SINTA franchise, we improved rebates with a few plans and opted not to renew some unfavorable contracts that we inherited. We anticipate that the evolution of the payer landscape will have a positive impact on revenue, meaningfully offsetting any pressure on prescription. As a company committed to being the leader of responsible pain management, we will continue to work with payers whenever possible to remove non-clinical barriers to our pain portfolio, which healthcare providers view favorably and as highly differentiated. The collegium team is encouraged by, but not satisfied with the progress that we have made thus far in 2020. Every person in our organization is focused on finishing 2020 strong, while simultaneously preparing for a fast start to 2021. I'm confident that we have the people in the portfolio to make it happen. I will now hand the call over to Paul for a discussion of the financials.