Collegium Pharmaceutical, Inc.

Greetings and welcome to the Collegium Pharmaceutical fourth quarter and full year 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 operator assistance during this conference, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now turn the call over to Christopher James, Vice President of Investor Relations at Collegium. Thank you. You may begin.

Welcome to Collegium Pharmaceuticals' fourth quarter and full year 2022 earnings conference call. I'm joined today by Joe Ciafoni, our 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 pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Your caution that such forward-looking statements involve risks and uncertainties, including and without limitation, the risk that we may not be able to successfully commercialize our products, that we may incur significant expense, 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 Securities and Exchange Commission. Our future results may differ materially from our current expectations discussed today. Our earnings press release in 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 collegianpharma.com. I will now turn the call over to our CEO, Joe Chiafoni.

Thank you, Chris. Good afternoon and thank you everyone for joining the call. Today we will discuss our performance during the fourth quarter and full year 2022 and share our strategy to achieve a banner year in 2023. 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 fourth quarter, we continue to support the communities where we live and work. We made charitable donations to organizations leading STEM education initiatives, serving meals to people living with critical and chronic illnesses, and providing warm weather clothing to neighbors in shelters and emergency housing. In recognition of our longstanding dedication to serving as a responsible corporate citizen, we published Collegium's inaugural ESG report. We are proud of this milestone as it reflects our deep commitment to operating with integrity, accountability, and responsibility in all facets of our business while improving the health and wellbeing of our communities. I'd like to thank our team for their commitment to our mission and for making Collegium a great place to work. 2022 was a pivotal year for Collegium. We achieved nearly all of our key strategic and financial objectives. Key accomplishments in 2022 include we expanded our commercial portfolio through the financially transformative acquisition of BDSI, establishing Collegium as the leader in responsible pain management. We achieved run rate synergies of approximately $85 million, which exceeded our target of $75 million. We delivered record full-year net revenue and adjusted EBITDA, We successfully completed the renegotiation of extamps ER contracts, resulting in an expected gross net of 61 to 63% in 2023. We resolved all 27 opioid industry related lawsuits brought against the company. And each of those lawsuits has been dismissed. We announced the validity of certain claims of the patents protecting Belbuco were upheld on appeal. We expect that Alvagen will be barred from entering the market with its product until 2032. And we de-levered the balance sheet and returned capital to our shareholders while building our cash position. These achievements lay the foundation for 2023 to be a banner year. In 2023, we expect significant top and bottom line growth and to strategically deploy capital to create long-term value for our shareholders. Our 2023 financial guidance includes growing adjusted EBITDA by over one and a half times revenue and over two times adjusted operating expenses. We are confident in our ability to deliver on our financial and strategic objectives. We remain laser focused on executing our three-phase action agenda. During 2022, we successfully completed phase one, seamless integration, And phase two, generate momentum. The key accomplishments were the efficient integration of BDSI and the successful renegotiation of Xtamsa ER contracts. We are committed to managing gross to net to less than 65% going forward. This January, we launched phase three, accelerate. Consistent with our 2023 financial guidance, We expect to see an immediate acceleration of top and bottom line growth in 2023 propelled by lower extant ER gross to net, prescription growth of Belbuca and extant ER on a full year basis, and the full year impact of the synergized cost structure. We are excited to make 2023 a banner year for Collegium. Our two-pronged strategy is clear and thus execution is our strategy. We are focused on two critical priorities, maximizing the potential of our paying portfolio and deploying capital. We plan to maximize the potential of our paying portfolio through strong commercial execution and by leveraging our fully synergized cost structure. We expect Xtamsa ER revenue to immediately accelerate as a result of gross student improvement. And on a full year basis, we expect Belbuca and Xtamsa ER prescription growth. We anticipate that the Nuscenta franchise and Simproic will be steady contributors. With our current financial strength and cash flow generation, we are focused on deploying capital to create long-term value. The top priority is business development. We believe current market conditions are conducive to potentially getting a deal done. We are active, engaged, and will remain disciplined in our approach. We are focused exclusively 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. We are committed to rapidly paying down debt and opportunistically using our share repurchase program to return capital to our shareholders. Although early, we are encouraged by the start to 2023 and are confident that it will be a banner year for Collegium. Our strategy is clear and our organization is aligned and focused on execution. We are committed to achieving our strategic and financial objectives while creating long-term value for our shareholders. I will now hand the call over to Colleen to discuss the financials.