Collegium Pharmaceutical, Inc.

Greetings, and welcome to the Collegium Pharmaceutical first quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. 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, Alex Dasala. Please go ahead.

Welcome to Collegium Pharmaceuticals First Quarter 2021 Earnings Conference Call. This is Alex Dasalla, Head of Investor Relations for Collegium. I am joined today by Joe Schifoni, our Chief Executive Officer, Paul Brantley, 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 risks that we may not be able to successfully commercialize Extanza ER and the Nusant 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. Our earnings press release and this call will include discussion of certain non-GAAP information. You can find our earnings press release including relevant non-GAAP reconciliations on our corporate website at collegiumpharma.com. I will now turn the call over to Collegium CEO, Joe Schifoni.

Thank you, Alex. Good afternoon and thank you everyone for joining the call. I'm pleased to be here today to discuss our Q1 performance and 2021 outlook. At Collegium, we are focused on our mission of being the leader in responsible pain management and have an unwavering commitment to people living with pain in the communities we serve. In the first quarter, we help life science care launched their second annual 1000 Laptop Challenge with the donation of more than 100 laptops which were distributed to students in underserved communities across Boston through the nonprofit Tech Goes Home. We continue to look for ways to make a meaningful difference where we live and work and are dedicated to acting in a socially responsible manner. We believe we can deliver on our mission and create value for our shareholders by maximizing the value of our differentiated portfolio of pain products, achieving our near-term operational and financial goals, and strategically investing in our long-term growth. I'm pleased to report that in the first quarter, we made meaningful progress against the priorities and objectives for 2021 that we outlined for you in February. Our business is strong and our people are healthy. We are embarking upon a phase of growth and value creation for the organization and are on track to meet our objectives for 2021. Notable accomplishments in the first quarter include generated record quarterly revenue of $87.7 million and record quarterly adjusted EBITDA of $45.3 million. We achieved all-time highs in market share and total prescriptions with Xtamsa ER, Bolstering our momentum towards branded market leadership in 2023. We grew Nuscenta franchise net revenue versus Q4 2020 to a level ahead of our expectations and not achieved since Q4 2018 as a direct result of the payer strategy we executed in 2020. We leveraged our cost structure, reducing core operating expenses defined as OpEx minus stock-based compensation by 5% versus Q1 2020. We transitioned commercial manufacturing for Xtamsa ER to a new state-of-the-art dedicated suite that will accommodate Xtamsa ER's continued growth, and we advanced the tech transfer of New Cynthia ER manufacturing from the legacy Janssen site to Thermo Fisher in Cincinnati. As expected, Xtamsa ER share gains and prescription growth were strong in the quarter, driven primarily by growth in new exclusive formulary wins that took effect on January 1st, 2021 and progression in exclusive formulary wins achieved in 2020. Xtamsa ER share gains and prescription growth did skew heavily in Q1 to exclusive plans and within exclusives to Medicare Part D. This dynamic pressured gross to net in Q1 above our prior full year guidance. Although we did see positive growth in share gains across all books of business, we believe that performance in contracted non-exclusive and non-contracted plans continues to be adversely impacted by COVID-19. As conditions associated with COVID-19 get better, we anticipate performance in these more profitable books of business to improve. Our commercial team increased their focus on these segments of the market when we kicked off the second quarter. Paul and Scott will provide more detail in their remarks. The NuSynta franchise exceeded our expectations in Q1, posting positive revenue growth. Our lifecycle management, including purposeful pruning of less attractive payer contracts, successfully resulted in a positive gross to net shift for the franchise, more than offsetting the decline in prescriptions. As a result of the strong performance in Q1, We are raising our new Cinta franchise revenue guidance for the year. Overall, we are encouraged by our first quarter revenue performance and by the underlying trends in our differentiated paying portfolio. Operationally, we continue to focus on leveraging our cost structure, specifically our core expenses, which resulted in increased profitability and cash flow generation in the first quarter. As we generate cash, we remain committed to deploying our balance sheet in a disciplined manner with a focus on creating shareholder value and investing in our long-term growth. We also announced today a planned upcoming CFO transition. After six years at Collegium, Paul Branly will leave to pursue other opportunities effective May 24th. On behalf of the entire organization, I want to thank Paul for his many contributions to Collegium's success to date and for having built a strong finance team and function at the company which will ensure continuity going forward. On a personal note, I want to thank him for his partnership and friendship. I wish him all the best in his future endeavors. We are also excited to announce the appointment of Colleen Tupper as our new Chief Financial Officer, also effective May 24th. Colleen brings over 20 years of finance experience at commercial stage pharmaceutical companies and most recently served as Senior Vice President and CFO of the U.S. Business Unit of Takeda. We believe she is a great fit for our organization as we move into a phase of growth and value creation. I will now hand the call over to Paul for a discussion of the financials.