Collegium Pharmaceutical, Inc.

Greetings and welcome to the Collegium Pharmaceutical second quarter 2023 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 anyone should require operator assistance during a conference call, 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 Investment Relations at Collegium. Thank you. You may begin.

Welcome to Collegium Pharmaceutical's second quarter 2023 earnings conference call. I'm joined today by Joe Schifoni, 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 made 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 risks 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 on 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 Schifoni.

Thank you, Chris. Good afternoon, and thank you everyone for joining the call. Today we will discuss our progress towards achieving a banner year in 2023, our financial performance in the first half, and expectations for the remainder of the 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. Our commitment includes supporting the communities where we live and work. During the second quarter, we launched a new partnership with the Boston Red Sox and Science from Scientists, a nonprofit organization leading STEM education initiatives for kids from low-income households. This partnership furthers Collegium's commitment to driving equitable access to educational resources that support the next generation of STEM leaders. I'd like to recognize my colleagues for their hard work and dedication to our organization and thank them for their commitment to people living with serious medical conditions and the communities that we serve. I am pleased to report that we are on track to make 2023 a banner year for Collegium Pharmaceuticals. At the beginning of this year, we committed to strong top and bottom line growth that would be achieved by maximizing the potential of our differentiated paying portfolio and leveraging our cost structure. We also said that we would generate strong operating cash flows that would enable us to rapidly pay down debt and position us to achieve our other capital deployment priorities. That is exactly what we have accomplished in the first half of this year. and what we will be focused on for the remainder of 2023. I am confident that we are on track to deliver on our strategic and financial commitments. Key accomplishments in the first half of 2023 include we delivered record revenue and adjusted EBITDA. In the first half of the year, we grew revenue 35% and adjusted EBITDA 51% compared to the first half of 2022. We generated strong performance in our pain portfolio. Belbuca is trending to achieve prescription growth on a full-year basis. Total prescriptions were up 3.5% in the second quarter compared to the first quarter. We continue to be encouraged by the trends that we are seeing. The week ending July 21st, Belbuca generated 9,376 total prescriptions, the highest level achieved since we acquired BDSI in March of 2022. We grew at Stamps ER revenue in the first half of the year by 38% year-over-year, driven by improvement in gross to net due to the successful completion of contract renegotiations last year. We delivered on our commitment that NuSyntha franchise revenue would be relatively stable year-on-year, In the first half of the year, Nuscenta franchise revenue grew 4%. We achieved an important step in the pursuit of a six-month pediatric extension for the Nuscenta franchise with FDA approval of both Nuscenta IR and Nuscenta Oral Solution for use in children ages six and older. We increased our cash and marketable securities balance to over $300 million, leaving us well positioned to execute on our capital deployment strategy. And our board has authorized us to enter into a $50 million accelerated share repurchase program. We believe that our stock continues to be significantly undervalued, and we are committed to leveraging our $100 million share repurchase program to opportunistically return cash to our shareholders. We are laser focused on our two-pronged strategy, of maximizing the potential of our differentiated paying portfolio and strategically deploying capital to create value for our shareholders. We believe that strong commercial execution is key to maximizing the potential of our paying portfolio. Xtamsa ER revenue is benefiting from gross to net improvement. Dalbuca prescriptions are expected to grow on a full year basis. And the Nuscenta franchise is exceeding expectations. Our capital deployment strategy is focused on creating long-term value for our shareholders, and business development is our top priority. We are actively pursuing differentiated commercial stage assets that we believe have peak sales potential of more than $150 million and exclusivity into the 2030s. Although business development is our top capital deployment priority, we are absolutely committed to being disciplined in our approach. Our strong financial position allows us to do so. For perspective, in our base case long-range plan, net of paying off our Pharmacon loan, we will have greater than $1 billion of cash on hand at the end of 2027. We are committed to leveraging our strong financial position to create value for our shareholders. 2023 is on track to be a banner year for Collegium Pharmaceutical. We delivered a strong performance in the first half of the year, and we expect to see revenue increase and expenses decrease for the remainder of the year. We are reaffirming our full year 2023 financial guidance, which includes growing adjusted EBITDA by approximately one and a half times the rate of revenue growth and two and a half times the rate of adjusted operating expenses growth. We believe that there is a meaningful disconnect between our share price and the intrinsic value of the company, and we'll be utilizing the board authorized accelerated share repurchase program to buy back $50 billion of our stock to deliver value to our shareholders. Our priorities for the remainder of the year are clear, and we are well positioned to achieve them. I will now hand the call over to Colleen to discuss the financials.