Collegium Pharmaceutical, Inc.

Greetings, and welcome to the Collegium Pharmaceutical Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operating assistance during this conference call, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I'll now turn the call over to Dawn Shopland at Argo Partners. Thank you. You may begin.

Welcome to Collegium Pharmaceuticals third quarter 2022 earnings conference call. I am joined today by Joe Schifoni, Collegium's chief executive officer, Colleen Tupper, chief financial officer, and Scott Dreyer, chief commercial officer. Before we begin today's call, I 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 pursuant to the safe harbor provision of the Private Securities Litigation and Reform Act of 1995. You will caution 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 the acquisition of BioDelivery Sciences International on the proposed schedule or at all. The reason we have to successfully commercialize our products and that may incur significant expenses and may not prevail in the current or future litigation pertaining to our business. The risks and other risks of the company are detailed at 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 collegiumfarmer.com. I will now turn the call over to Collegium CEO, Joe Schifoni.

Thank you, Dawn. Good afternoon, and thank you, everyone, for joining the call. Today we will discuss our performance during the third quarter and through the first nine months of the year and provide perspective on our outlook for the remainder of 2022 and why we expect 2023 to be a bad year. At Collegium, we are focused on building a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. During the third quarter, Collegium continued to support the communities where we live and work, highlighted by our charitable donation to an additional sponsorship of the MassBioEd Foundation's 2022 Life Science Workforce Conference. education, recruitment, inclusion, and retention of a more diversified talent pool for our growing industry. Mass BioEd is a nonprofit which provides life sciences educational programs to teachers and students of all backgrounds. We are also proud to have held our second annual day of service in which our employees nationwide volunteered in service of organizations that are important to them. At our corporate headquarters on the day of service, we partnered with Science from Scientists, packing over 400 STEM lesson kits for underserved students in the Brockton, Massachusetts school system. We remain focused on growing our business and creating value for our shareholders. We do this by maximizing the potential of our differentiated portfolio, focusing on achieving our near-term operational and financial goals, and strategically investing in our long-term growth. I want to thank the Collegium team for their hard work, dedication and commitment to our mission. 2022 has been a pivotal year for Collegium. Throughout the first nine months of 2022, we executed on our strategic priorities and delivered on the goals we communicated at the beginning of the year. We closed the financially transformative BDSI deal, establishing Collegium as the leader in responsible pain management. We completed the seamless integration of BDSI and expect to achieve run rate synergies of approximately $85 million, up from the $75 million target we shared when we announced the transaction. We delivered record net revenue and adjusted EBITDA driven by the acquisition of BDSI. We completed the renegotiation of Xtamsa ER contracts that represent 54% of all prescriptions. Based on the planned decisions we have received, we are pleased to share that we achieved the goal of materially rolling back the discount rates and maintaining broad access. Starting in January 2023, Xtamsa ER gross to net will be less than 65%. which we expect will immediately accelerate top line growth. We advanced our position as the leader in responsible pain management, growing the market share of our branded extended release pain portfolio. We participated in pain week this past September with 11 poster presentations, highlighting and raising awareness of clinical and real world data on our differentiated and distinctly positioned product portfolio. And in March, we executed a master settlement agreement, resolving all 27 pending opioid industry related lawsuits brought against the company by cities, counties, and other subdivisions in the United States. Each of those lawsuits has now been dismissed. We made significant progress against our key objectives in these first nine months of 2022. We are on track to achieve all of our 2022 strategic and financial goals, and because of our strong execution, we are updating our 2022 four-year guidance. We are confident that our recent achievements position us for a banner year in 2023. We remain laser focused on executing our three-phase action agenda. In the second quarter, we successfully completed phase one, the seamless integration of BDSI, and our efforts are yielding results. We are on track to exceed our original run rate synergies target of $75 million and now expect to achieve approximately $85 million in run rate synergies within the first 12 months of closing the BDSI transaction. At the start of the second quarter, we transitioned to phase two, generate momentum, and have made significant progress versus most of our operational objectives. Of note, we successfully completed Xtansa ER contract renegotiations, which ensures a gross net of less than 65% beginning on January 1st, 2023. We expect Belbuca and Xtansa ER to grow volume and market share moving forward. Both products are highly differentiated, distinctly positioned, and fundamentally well positioned to grow. Our commercial organization is fully trained, engaged in building on their learnings to generate prescription momentum in 2022 and growth in 2023. Our execution in 2022 positions Collegium for a banner year in 2023. We will transition to phase three of our action agenda accelerate in January. We expect to see an immediate acceleration of top and bottom line growth in 2023 propelled by Xtamsa ER gross to net of less than 65%, prescription growth of Belbuca and Xtamsa ER, and the full-year impact of the synergized cost structure. Our singular focus in deploying capital is to create value for our shareholders, and our top priority is business development. We are committed to taking a disciplined approach and we believe current market conditions are conducive to delivering on our business development objectives. We are focused on commercial stage opportunities with peak sales potential of over $150 million. Importantly, we are looking for assets that are differentiated with exclusivity that runs into the 2030s. Our strong financial position, including robust cash generation and rapid pay down of debt, leaves us well-positioned to allocate capital in a focused and thoughtful manner. We are committed to strategically investing in the growth of our business to create long-term value, as well as leveraging our share repurchase program to opportunistically return value to shareholders. Our third quarter results reinforce the conviction we have in our business strategy. We are making meaningful progress on our goals and are strongly positioned for top and bottom line growth in 2023. I will now hand the call over to Colleen for a discussion of the financials.