Collegium Pharmaceutical, Inc.

Greetings and welcome to the Collegium Pharmaceutical, Inc. first quarter 2022 earnings 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, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex de Sala, thank you. Please go ahead.

Thank you, operator. Welcome to Collegium Pharmaceutical's first quarter 2022 earnings conference call. This is Alex de Sala, head of investor relations at Collegium Pharmaceutical. I am joined today by Joe Schifoni, our chief executive officer, Colleen Tupper, our chief financial officer, and Scott Dreyer, our chief commercial officer. They will share some prepared remarks, and then we will take your questions. 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 derive the expected benefits of our recently completed acquisition of Biodelivery Sciences International on the proposed schedule or at all, that we may not be able to successfully renegotiate our contracts related to Xtamsa ER prescriptions on desired terms, that we may not be able to successfully commercialize our products, and that we may incur significant expense and may not prevail in current or future 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. At Collegium, our mission is to build a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. We are dedicated to delivering on our mission, upholding our strong corporate culture, and supporting the communities where we live and work including through our partnerships with Life Sciences Cares and Science from Scientists, two organizations with missions that we are passionate about, STEM education and eliminating the impact of poverty. In the first quarter, Collegium was recognized by our employees for the second year in a row as a top workplace in the USA. I want to acknowledge my colleagues for their hard work and thank them for their dedication to people living with serious medical conditions and the communities we serve. 2022 is a pivotal year for Collegium as we embark on a period of growth and value creation. In the first quarter, we made meaningful progress against our strategic priorities. Key accomplishments include we completed the acquisition of BDSI, which is strategically and financially transformative, solidifies our leadership and responsible pain management, and gives us a strategic foothold in neurology. We are on track to exceed targeted run rate synergies of at least $75 million. We integrated BDSI seamlessly and achieved day one field force readiness. We grew Belbuca and Xtamsa ER total prescriptions 4% and 3% respectively over the first quarter of 2021. We received FDA approval. We received approval from the FDA for the prior approval supplement for a new Nuscenta ER manufacturing site, which is expected to have a positive impact on Nuscenta gross margins in the second half of 2022 and be fully realized in 2023. We executed a master settlement agreement resolving all 27 pending opioid-related lawsuits brought against the company by cities, counties, and other subdivisions in the United States. We appointed Dr. Tom Smith as chief medical officer and we strengthened the Board of Directors with the appointment of Neal McFarland, former Chief Executive Officer and Director of Adamas Pharmaceuticals. The first quarter was a strong start to the year, and we expect to deliver record revenue and adjusted EBITDA in 2022. We are focused on executing a three-phase action agenda that will position us to achieve our financial objectives in 2022 and accelerate top and bottom line growth in 2023. Phase one is to ensure seamless integration of the acquisition through the end of the second quarter. Operational integration was immediate with no disruption to our core operations. Our team achieved day one commercial readiness and we are on track to exceed our targeted run rate synergies of at least $75 million. Phase two is generate momentum and will be the focus for the second half of 2022. Our priorities are to grow Belbuca and Xtamsa ER total prescriptions and complete contract renegotiations that account for 50% of all Xtamsa ER prescriptions. We remain absolutely committed to gross the net for Xtamsa ER of less than 65% beginning in January 2023. Additionally, as part of phase two, we will achieve the remaining acquisition synergy targets and execute a focused and phased launch of Elixib. Where we choose to play with Elixib, we will play to win and we will be synthesizing learnings and assessing uptake throughout the year. Any expansion of the neurology footprint in support of Elixib will be success gated. Phase three is Accelerate and will be the focus of 2023. Extamsa ER grossed a net of less than 65% beginning in January, along with prescription growth of Belbuca and Extamsa ER will drive acceleration. We will further bolster the bottom line by realizing the full benefit of our synergized cost structure. Our priorities for the remainder of the year are crystal clear. We are focused on growing the top line, accelerating the bottom line, strategically deploying capital to create shareholder value, and renegotiating Xtamsa ER contracts to achieve gross to net impact of less than 65% beginning in January 2023. As it pertains to capital allocation, business development is our number one priority, and we are focusing on commercial stage neurology assets with $150 million peak sales potential that will expand our presence in neurology. We also plan to rapidly deleverage our balance sheet by paying down debt, and we have more than $50 million remaining from our $100 million authorized share repurchase program that we can use to opportunistically buy back shares. 2022 is off to a strong start. We are on track to achieve record revenue and adjusted EBITDA for the year. We completed a strategically and financially transformative acquisition, seamlessly integrated BDSI into our business, and are on track to achieve our synergy target. Our balance sheet is strong, and we will accelerate operating cash flow through the remainder of this year. We are well positioned to continue to strategically invest in the growth of our business and create value for our shareholders. I will now turn the call over to Colleen for a discussion of the financials.