Q2 2024 Collegium Pharmaceutical Inc Earnings Call

Operator: Greetings, and welcome to the Collegium Pharmaceutical second quarter 2024 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 the conference, 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 Christopher James, Vice President of Investment Relations at Collegium. Thank you. You may begin.

Greetings and welcome to the Collegium Pharmaceuticals second quarter 2024 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: Greetings, and welcome to the Collegium Pharmaceutical second quarter 2024 Arnie's conference call. At this time, all participants are in a listen-only mode.

Operator: A question and answer session will follow before we presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. Please note that this conference call is being recorded.

Christopher <unk>: If anyone should require operator assistance during the conference. 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 Christopher <unk>, Vice President of Investor Relations. Thank you you may begin.

Christopher James: Now, I'll turn the call over to Christopher James, Vice President of Inversiulations at Collegium. Thank you. You may begin.

Michael Heffernan: Welcome to Collegium Pharmaceuticals' second quarter 2024 Arnie's conference call. I'm joined today by Mike Heffernan, our interim president and chief executive officer, founder and chairman; Colleen Tupper, our chief financial officer; and Scott Dreyer, our chief commercial officer.

Speaker Change: Welcome to Collegium Pharmaceuticals second quarter 2024 earnings conference call I'm joined today by Mike Heffernan, Our interim President and Chief Executive Officer, founder and Chairman, becoming tougher our Chief Financial Officer, and Scott Dreyer, Our Chief commercial officer.

Christopher James: Welcome to Collegium Pharmaceutical's second quarter 2024 earnings conference call. I'm joined today by Mike Heffernan, our Interim President and Chief Executive Officer, Founder and Chairman, 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

Christopher James: You should 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 in doing so, that we may not prevail in current or future litigation pertaining to our business, and risks related to our ability to complete the acquisition of Ironshore Therapeutics on the proposed terms and schedule or at all. Risk related to our ability to realize the anticipated benefits and synergies of the proposed acquisition of Ironshore.

Michael Heffernan: 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 risk-sentence certainties, including, and without limitation, the risk that we may not be able to successfully commercialize our products, that we may incur significant expense in doing so, that we may not prevail in current or future litigation pertaining to our business. Risk related to our ability to complete the acquisition of our intratherapidics on the proposed terms and schedule or at all.

Speaker Change: 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.

Christopher James: The risk that the business will not be integrated successfully, risks related to the negative effects of this announcement or the consummation of the proposed acquisition or the market price of our common stock and or operating results, and risks related to future opportunities and plans for hiring. 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 maternally from our current expectations discussed today.

Speaker Change: 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 our products that we may incur significant expense in doing so that we may not prevail in current or future litigation pertaining to our business risks related to our ability to complete their acquisition of Orange for therapeutics.

Speaker Change: On the proposed terms and schedule or at all risks related to our ability to realize the anticipated benefits and synergies of the proposed acquisition of iron short the risk that the business will not be integrated successfully risks related to negative effects of this announcement or the consummation of proposed acquisition or the market price of our common stock.

Michael Heffernan: Risk related to our ability to realize the anticipated benefits and synergies of the proposed acquisition of Ironshore. The risk that the business will not be integrated successfully. Risk related to negative effects of this announcement or the consummation of proposed acquisition on the market price of our common stock and/or operating results. And risk related to future opportunities and plans for Ironshore. 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.

Speaker Change: And our operating results.

Speaker Change: And risks related to future opportunities and plans for I'm sure.

Speaker Change: 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.

Michael Heffernan: 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 reconciliation, on our corporate website at collegiumfarmad.com.

Christopher James: 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 our Chairman, Interim President, and CEO, Mike Heffernan.

Speaker Change: 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 Collegium pharma Dot com.

Michael Heffernan: I will now turn the call over to our Chairman, Interim President, and CEO Mike Heffernitt. Thank you, Chris. Good afternoon, and thank you everyone for joining the call. Today we will discuss Collegium's financial performance during the second quarter and provide an update on our progress in 2024. 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 while striving to do good as we do well. I'd like to recognize the collegium team for their dedication to our mission and community impact, as well as their strong performance in support of our pain portfolio in implementing our capital deployment strategy in the first half of the year.

Speaker Change: I will now turn the call over to our chairman interim President and CEO, Mike Heffernan.

Mike Heffernan: Thank you Chris.

Michael Heffernan: Good afternoon, and thank you, everyone, for joining the call. Today, we will discuss Collegium's financial performance during the second quarter and provide an update on our progress in 2024. 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 while striving to do good as we do well. I'd like to recognize the Collegium team for their dedication to our mission and community impact, as well as their strong performance in support of our pain portfolio in implementing our capital deployment strategy in the first half of the year.

Mike Heffernan: Good afternoon, and thank you everyone for joining the call today, we will discuss Collegium financial performance during the second quarter and provide an update on our progress in 2024.

Mike Heffernan: Collegium, we are focused on building, a leading diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions, while striving to do good as we do well I'd like to recognize the Collegium team for their dedication to our mission and community impact as well as their strong performance in support of our pain portfolio.

Mike Heffernan: In implementing our capital deployment strategy in the first half of the year.

Michael Heffernan: Our results this quarter into the first half of the year reinforced Collegium's strong operational execution. We continue to generate robust operating cash flows and drive significant top and bottom line growth in our pain portfolio, including growing revenue 7% and adjusted even 12% on a year-over-year basis in the second quarter. Through execution of the Hickman authorized generic agreement and securing the six-month pediatric exclusivity extension for the new set to franchise, we are maximizing the value of this portfolio to 2025 in the year.

Mike Heffernan: Our results this quarter and into the first half of the year reinforce Collegium strong operational execution, we continue to generate robust operating cash flows and drive significant top and bottom line growth in our pain portfolio, including growing revenues, 7% and adjusted EBIT of 12% on a year over year basis.

Michael Heffernan: Our results this quarter and through the first half of the year reinforce Collegium's strong operational execution. We continue to generate robust operating cash flows and drive significant top and bottom line growth in our paying portfolio, including growing revenue 7% and adjusted even at 12% on a year-over-year basis in the second quarter. Through the execution of the HCMA authorized generic agreement and securing the six-month pediatric exclusivity extension for the Nusenta franchise, we are maximizing the value of this portfolio through 2025 and beyond.

Mike Heffernan: In the second quarter.

Mike Heffernan: Execution of the Hikma authorized generic agreement and securing the six month pediatric exclusivity extension for the new set the franchise, we are maximizing the value of this portfolio to 2025 and beyond.

Michael Heffernan: Fund. The strength of our pain business positions us to execute on the recently announced proposed acquisition of Iron Short Therapeutics, including its commercial product to an APM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder or ADHD in people six years of age and older. The iron short acquisition meets all of our business development objectives. To an APM is a highly differentiated commercial asset that diversifies our portfolio, a significant revenue and growth potential in exclusivity into the 2030s. John APM is expected to generate net revenue in excess of $100 million in 2024.

Michael Heffernan: The strength of our pain business positions us to execute on the recently announced proposed acquisition of Ironshore Therapeutics, including its commercial product APM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder, or ADHD, in people six years of age and older. The Ironshore Acquisition meets all of our business development objectives.

Mike Heffernan: The strength of our pain business positions us to execute on the recently announced proposed acquisition of Iron short therapeutics, including its commercial product to an eight P M essential nervous.

Mike Heffernan: Our system stimulant for the treatment of attention deficit hyperactivity disorder, or ADHD and People's six years of age and older.

Mike Heffernan: The Irish acquisition meets all of our business development objectives through an ATM as a highly differentiated commercial asset asset that diversifies, our portfolio has significant revenue and growth potential and exclusivity into 2030.

Michael Heffernan: Jornet PM is a highly differentiated commercial asset that diversifies our portfolio, has significant revenue and growth potential, and exclusivity into the 2030s. Jornet PM is expected to generate net revenue in excess of $100 million in 2024, expands our commercial presence into ADHD, a large and growing market, and is poised to become the lead and growth driver for collegium. Once the acquisition closes, we will leverage our core competencies with respect to commercial execution and build on our proven track record of efficiently and successfully integrating commercial assets to build our portfolio.

Mike Heffernan: So an ATM is expected to generate net revenue in excess of $100 million in 2024.

Michael Heffernan: Expans our commercial presence into ADHD, a large growing market, and is poised to become the leading growth driver for Collegium. Once the acquisition closes, we will leverage our core competencies with respect to commercial execution and build on our proven track record of efficiently and successfully integrating commercial assets to build our portfolio. Importantly, the addition of to an APM serves as a step forward in building another therapeutic area of focus for Collegium. We look forward to closing this transaction in the third quarter, welcoming the iron short team to Collegium and embracing join APM as the newest part of portfolio.

Mike Heffernan: Expands our commercial presence into ADHD, a large and growing market and is poised to become the leading growth driver for Collegium.

Mike Heffernan: Once the acquisition closes we will leverage our core competencies with respect to commercial execution and build on our proven track record of efficiently and successfully integrating commercial assets to build our portfolio. Importantly, the addition of Jordan ATM serves as a step forward in building another therapeutic area of focus for Collegium.

Michael Heffernan: Importantly, the addition of an APM serves as a step forward in building another therapeutic area of focus for Collegium. We look forward to closing this transaction in the third quarter, welcoming the IronShore team to Collegium, and embracing Journey PM as the newest part of our portfolio. For the second half of this year, we're focused on delivering our financial commitments by maximizing our pain business while closing and seamlessly integrating our proposed acquisition of Iron Shore Therapeutics.

Mike Heffernan: We look forward to closing this transaction in the third quarter welcoming the orange to our team to Collegium and embracing Jordan APM as the newest part of our portfolio.

Michael Heffernan: For the second half of this year, we are focusing on delivering our financial commitments by maximizing our pain business while closing and seamlessly integrating our proposed acquisition of Iron Short Therapeutics. We are confident that we will achieve our 2024 financial commitments for the pain business, which, along with the join APM, will set a solid foundation for 2025 and beyond.

Mike Heffernan: For the second half of this year, we're focused on delivering our financial commitments by maximizing our pain business, while closing and seamlessly integrating our proposed acquisition of Iron short Therapeutics. We are confident that we will achieve our 2024 financial commitments for the pain business.

Michael Heffernan: We are confident that we will achieve our 2024 financial commitments for the pain business, which, along with the joint APM, will set a solid foundation for 2025 and beyond. Additionally, our search for the next CEO to lead Collegium in this upcoming phase of growth is active and ongoing, and we look forward to sharing updates on this important process as they become available. Our strong executive team has the full trust of the board and will continue our focus on operational execution during this process. I'll now hand the call over to Colleen to discuss key business highlights in finance.

Mike Heffernan: Which along with the June eight P. M will set a solid foundation foundation for 2025 and beyond.

Michael Heffernan: Additionally, our search for the next CEO to lead Collegium in this upcoming phase of growth is active and ongoing. We look forward to sharing updates on this important process as it becomes available. Our strong executive team has the full trust of the board and will continue our focus on operational execution during this process.

Speaker Change: Additionally, our search for the next CEO to lead Collegium in this upcoming phase of growth is active and ongoing and we look forward to sharing updates on this important process as they become available.

Speaker Change: Our strong executive team has the full trust of the board and we'll continue our focus on operational execution. During this process.

Colleen Tupper: I will now hand the call over to Colleen to discuss key business highlights and financials.

Speaker Change: Now the hand, the call over to Colleen to discuss key business highlights in financials.

Colleen Tupper: Thanks, Mike. Good afternoon, everyone. In the second quarter of 2024, we generated top and bottom line growth, executed on our capital deployment strategy, and improved the outlook for our pain portfolio in 2025 and beyond. Recent key accomplishments and highlights include: we delivered another strong quarter for Bill Buca, with prescriptions up 2.1% year over year and 1.4% quarter over quarter, coupled with record quarterly Bill Buca revenue up 21% year over year. We grew extamps the ER revenue 8% year over year with growth to net of 56.2% in the second quarter, reinforcing the success of our contract renegotiation strategy.

Colleen: Thanks, Mike Good afternoon, everyone in the second quarter of 2024, we generated top and Bottomline growth executed on our capital deployment strategy and improve the outlook for our pain portfolio in 2025 and beyond reason.

Colleen Tupper: Thanks, Mike. Good afternoon, everyone.

Colleen Tupper: In the second quarter of 2024, we generated top and bottom line growth, executed on our capital deployment strategy, and improved the outlook for our pain portfolio in 2025 and beyond. Recent key accomplishments and highlights include delivering another strong quarter for Belbuca with prescriptions up 2.1% year over year and 1.4% quarter over quarter, coupled with record quarterly Belbuca revenue up 21% year over year. We grew EXTAMSA ER revenue 8% year over year with a gross to net of 56.2% in the second quarter, reinforcing the success of our contract renegotiation strategy.

Colleen: Recent key accomplishments and highlights include we delivered another strong quarter for BELBUCA with prescriptions up two 1% year over year, and 1.4% quarter over quarter, coupled with record quarterly BELBUCA revenue up 21% year over year.

Colleen: We grill extents the E R revenue, 8% year over year with gross to net of 56, 2% in the second quarter reinforcing the success of our contract renegotiation strategy.

Colleen Tupper: We bolstered the value of the new Center franchise in 2025 and beyond through our authorized generic agreement with Hickma Pharmaceuticals and the six-month pediatric exclusivity extension for the new Center franchise, extending the exclusivity of new Center to January 3rd, 2027, and new Center ER to December 27th, 2025. and we executed on our capital deployment strategy, including announcing the proposed acquisition of Ironshore Therapeutics, which will establish Collegium's presence in the large and growing ADHD market and diversify our portfolio with a meaningfully differentiated product that is poised to become our leading growth driver, securing attractive financing for the acquisition of Ironshore with terms that reduce our cost of capital by 300 basis points and enhance flexibility in the management of our debt, redeeming all 26.4 million dollars aggregate principal amount of our previously outstanding convertible senior notes due in 2026, and returning 35 million dollars in capital to shareholders through an accelerated share repurchase program, repurchasing 1.06 million shares at an average share price of $32.94.

Colleen Tupper: We bolstered the value of the NuCynta franchise in 2025 and beyond through our authorized generic agreement with Hikma Pharmaceuticals and the six-month pediatric exclusivity extension for the NuCynta franchise, extending the exclusivity of NuCynta to January 3, 2027 and NuCynta ER to December 27, 2025.

Colleen: We bolstered the value of the NUCYNTA franchise in 2025 and beyond through our authorized generic agreement with Hikma Pharmaceuticals, and the six month pediatric exclusivity extension for the NUCYNTA franchise.

Colleen: Sending the exclusivity of NUCYNTA to January three 2027, and NUCYNTA ER to December 27th 2025.

Colleen Tupper: And we executed on our capital deployment strategy, including announcing the proposed acquisition of Iron Shore Therapeutics, which will establish Collegium's presence in the large and growing ADHD market and diversify our portfolio with a meaningfully differentiated product that is poised to become our leading growth driver. Securing attractive financing for the acquisition of Ironshore with terms that reduce our cost of capital by 300 basis points and enhance flexibility in the management of our debt, redeeming all $26.4 million aggregate principal amount of our previously outstanding convertible senior notes due in 2026 and returning $35 million in capital to shareholders through an accelerated share repurchase program, repurchasing 1.06 million shares at an average share price of $32.94.

Colleen: And we executed on our capital deployment strategy, including announcing the proposed acquisition of I am sure Therapeutics, which will establish Collegium <unk> presence in the large and growing ADHD market.

Colleen: And diversify our portfolio with a meaningfully differentiated product that is poised to become our leading growth driver.

Colleen: Securing attractive financing for the acquisition of Iron sure with terms that reduced our cost of capital by 300 basis points and enhanced flexibility in the management of our debt.

Colleen: Redeeming all $26 $4 million aggregate principal amount of our previously outstanding convertible senior notes due in 2026, and returning $35 million in capital to shareholders through an accelerated share repurchase program repurchasing 1.06 million shares at an average share.

Colleen: Price of $32.94.

Colleen Tupper: Our second quarter performance reflects record Belbuke revenue, disciplined expense management, significant bottom line expansion, and robust operating cash flows. Financial highlights for the second quarter include: net product revenues were $145.3 million in the second quarter, up 7% year over year. Belbuke net revenue was a record 52.2 million, up 21% year over year. Expansity our net revenue was $44.6 million, up 8% year over year, and Expansity our gross to net was 56.2% in the second quarter. We now expect the full year expansity our gross to net to be between 55 to 57% in 2024, which is an improvement from our previously guided range of 56 to 58%.

Colleen: Our second quarter performance reflects record BELBUCA revenue disciplined expense management significant bottom line expansion and robust operating cash flows.

Colleen Tupper: Our second quarter performance reflects record Bell Buca revenue, disciplined expense management, significant bottom line expansion, and robust operating cash flows. Financial highlights for the second quarter include net product revenues of $145.3 million in the second quarter, up 7% year over year. Belbuca Net Revenue was a record $52.2 million, up 21% year over year.

Colleen: Financial highlights for the second quarter include net product revenues were $145 $3 million in the second quarter up 7% year over year.

Colleen: It'll be you can net revenue was a record $52 2 million up 21% year over year.

Colleen Tupper: EXTAMSA ER net revenue was $44.6 million, up 8% year-over-year, and EXTAMSA ER gross-to-net was 56.2% in the second quarter. We now expect the full-year Ex-SAMHSA ER growth to be between 55 to 57 percent in 2024, which is an improvement from our previously guided range of 56 to 58 percent. Looking forward to 2025, with the Medicare Part D redesign, Ex-SAMHSA ER will benefit from the small manufacturer phase-in period related to paying rebates for utilization by low-income subsidy patients, also known as dual eligible.

Speaker Change: Extensive E. Our net revenue was $44 $6 million up 8% year over year and extends to ear gross to net was 56, 2% in the second quarter.

Speaker Change: We now expect the full year extends to E. Our gross to net to be between 55% to 57% in 2024, which is an improvement from our previously guided range of 56% to 58%.

Colleen Tupper: Looking forward to 2025, with the Medicare PARTY redesign, Expansity EAR will benefit from the small manufacturer phase-in period related to paying rebates for utilization by low income subsidy patients, also known as dual eligible. New Census franchise net revenue was $44.5 million, down 6% year over year. Gap operating expenses were $43.3 million, up 13% year over year. This quarter included a $3.1 million charge related to the CEO transition. Excluding this in stock-based compensation, adjusted operating expenses were $30.3 million, down 3% year over year. Gap net income for the second quarter was $19.6 million, up 51% year over year.

Speaker Change: Looking forward to 2025 with the Medicare part D redesign extensive E. R will benefit from the small manufacturer a phased in period related to paying rebates for utilization by low income subsidy patients also known as dual eligible.

Colleen Tupper: NUSENTIA franchise net revenue was $44.5 million, down 6% year over year. GAAP operating expenses were $43.3 million, up 13% year-over-year. This quarter included a $3.1 million charge related to the CEO transition. Excluding this in stock-based compensation, adjusted operating expenses were $30.3 million, down 3% year over year.

Speaker Change: NUCYNTA franchise net revenue was $44 5 million down 6% year over year gap.

Colleen: GAAP operating expenses were $43 3 million up 13% year over year. This quarter included a $3 $1 million charge related to the CEO transition excluding.

Colleen: Excluding this and stock based compensation adjusted operating expenses were $33 million down 3% year over year.

Colleen Tupper: Gap net income for the second quarter was $19.6 million, up 51% year over year. Non-GAAP-adjusted EBITDA was $96 million, up 12% year over year. Gap earnings per share was $0.60 basic and $0.52 diluted in the second quarter compared to gap earnings per share of $0.38 basic and $0.34 diluted in the prior year period. Non-GAAP adjusted earnings per share was $1.62 in the second quarter, up 29% year-over-year.

Colleen: GAAP net income for the second quarter was $19 $6 million up 51% year over year.

Colleen: non-GAAP adjusted EBITDA was $96 million up 12% year over year.

Colleen Tupper: Non-Gap adjusted EBITDA was $96 million, up 12% year over year. Gap earnings per share was 60 cents basic and 52 cents diluted in the second quarter, compared to Gap earnings per share of 38 cents basic and 34 cents diluted in the prior year period. Non-GAAP adjusted earnings per share was $1.62 in the second quarter, up 29% year over year.

Colleen: GAAP earnings per share. It was 60 basic and 52 cents diluted on the second in the second quarter compared to GAAP earnings per share of 38 cents basic and 34 cents diluted in the prior year period.

Colleen: non-GAAP adjusted earnings per share was $1 62 in the second quarter up 29% year over year.

Colleen Tupper: Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. As of June 30th, we had $271.6 million in cash, cash equivalents, and marketable securities. We generated another quarter of strong cash flows, enabling us to execute on our capital deployment strategy and enter into an agreement to acquire iron. Assure. Under the terms of a proposed Ironshore acquisition, Collegium will acquire all the outstanding shares of Ironshore for $525 million in cash at closing. Collegium will also pay Ironshore shareholders $25 million in additional consideration if Jordan APM net revenue exceeds the defined threshold in 2025.

Colleen Tupper: Please see our press release issued earlier today for a reconciliation of gap-to-non-gap resolutions. As of June 30th, we had $271.6 million in cash, cash equivalents, and marketable security. We generated another quarter of strong cash flows, enabling us to execute on our capital deployment strategy and enter into an agreement to acquire iron. Under the terms of the proposed Ironshore Acquisition, Collegium will acquire all the outstanding shares of Ironshore for $525 million in cash at closing.

Colleen: Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results.

Colleen: As of June 30th we had $271 $6 million in cash cash equivalents in marketable securities. We generated another quarter of strong cash flows, enabling us to execute on our capital deployment strategy and enter into an agreement to acquire iron sharp.

Colleen: Under the terms of the proposed I ensure acquisition Collegium will acquire all the outstanding shares of I am sorry for $525 million in cash at closing.

Colleen: Collegium will also pay iron sure shareholders $25 million in additional consideration if Jordan a P. M net revenue exceeds a defined threshold in 2025.

Colleen Tupper: The all-tash consideration will be funded by approximately $200 million of Collegium's existing cash on hand and approximately $325 million of our new $646 million secured financing from Pharmacon. $320.8 million of the new term loan was used to replace our prior term loan with Pharmacon, reducing our interest rate on this balance by 300 basis points. Our reduced interest rate enables us to keep our interest expense for the next 12 months relatively stable, including the funding of an acquisition that is poised to add a new lead growth driver, Jordan APM. In addition to the significant improvement in our cost of capital, the new term loan also has a longer term, lower amortization, and more pre-payment flexibility.

Colleen Tupper: Collegium will also pay Ironshore shareholders $25 million in additional consideration if Journey PM net revenue exceeds a defined threshold in 2025. The all-cash consideration will be funded by approximately $200 million of Collegium's existing cash on hand and approximately $325 million of our new $646 million secured financing from Pharmacon. $320.8 million of the new term loan was used to replace our prior term loan with Pharmacon, reducing our interest rate on this balance by 300 basis points.

Colleen: The all cash consideration will be funded by approximately $200 million of Collegium existing cash on hand, and approximately $325 million of our new $646 million secured financing from pharma com.

Colleen: $328 million of the new term loan was used to replace our prior term loan with pharmacon, reducing our interest rate on this balance by 300 basis points.

Colleen Tupper: Our reduced interest rate enables us to keep our interest expense for the next 12 months relatively stable, including the funding of an acquisition that is poised to add a new lead growth driver, Jornet PM. In addition to the significant improvement in our cost of capital, the new term loan also has a longer term, lower amortization, and more prepayment flexibility. We expect the transaction to be immediately accretive to adjusted EBITDA while being highly accretive to 2025 adjusted EBITDA.

Colleen: Our reduced interest rate enables us to keep our interest expense for the next 12 months relatively stable, including the funding of an acquisition that is poised to add a new lead growth driver Jordan a P M.

Colleen: In addition to the significant improvement in our cost of capital. The new term loan also has a longer term lower amortization and more prepayment flexibility.

Colleen Tupper: We expect the transaction to be immediately accretive to adjusted EBITDA while being highly accretive to 2025 adjusted EBITDA. The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions, including receipt of required regulatory approvals. We are reaffirming our 2024 financial guidance for the current business, not including the impact of the proposed acquisition of Ironshore. We expect net product revenues in the range of $580 to $595 million. We expect Bill Buker revenue growth in 2024 to be fuelled by full-year prescription growth. We expect 2024 revenue growth for extensive ER to be driven by gross to net improvement.

Colleen: We expect the transaction to be immediately accretive to adjusted EBITDA, while being highly accretive to 2025 adjusted EBITDA. The acquisition is expected to close in the third quarter of 2024 subject to customary closing conditions, including receipt of required regulatory approvals.

Colleen Tupper: The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions, including receipt of required regulatory approval. We are reaffirming our 2024 financial guidance for the current business, not including the impact of the proposed acquisition of Ironshore. We expect net product revenues in the range of $580 to $595 million.

Colleen: We are reaffirming our 2024 financial guidance for the current business not including the impact of the proposed acquisition of Iron sure.

Colleen Tupper: We expect Bellevueka revenue growth in 2024 to be fueled by full-year prescription growth. We expect 2024 revenue growth for Xtam-CER to be driven by gross-to-net improvement. For the Nucinta franchise on a full-year basis, due to the elimination of the Medicaid cap by the American Recovery Act, we expect some pressure on the Nucinta franchise's year-over-year revenues in 2024, with a return to relative year-over-year stability in 2025. We expect adjusted operating expenses in the range of $120 to $125 million, with expenses being lower in the second half of the year as compared We plan to provide updated 2024 financial guidance for the combined business, including Ironshore, after the acquisition closes. In 2024, Journey PM net revenue is expected to be in excess of $100 million.

Colleen: We expect net product revenues in the range of $580 million to $595 million.

Speaker Change: We expect BELBUCA revenue growth in 2024 to be fueled by full year prescription growth. We expect 2020 for revenue growth for <unk> to be driven by gross to net improvement.

Colleen Tupper: For the new SINTA franchise on a full-year basis, due to the elimination of the Medicaid cap by the American Recovery Act, we expect some pressure on the new SINTA franchise year-over-year revenues in 2024, with a return to relative year-over-year stability in 2025. We expect adjusted operating expenses in the range of $120 to $125 million, with expenses being lower in the second half of the year as compared to the first half of the year, and adjusted EBITDA in the range of $380 to $395 million.

Colleen: For the NUCYNTA franchise on a full year basis due to the elimination of the Medicaid cap by the American Recovery Act, we expect some pressure on the NUCYNTA franchise year over year revenues in 2024 with a return to relative year over year stability in 2025.

Colleen: We expect adjusted operating expenses in the range of 120 to 125 million with expenses being lower in the second half of the year as compared to the first half of the year and adjusted EBITDA in the range of 382 $395 million.

Colleen Tupper: We plan to provide updated 2024 financial guidance for the combined business, including Ironshore after the acquisition closes. 2024, with our strong financial performance in the first half of the year, we are well positioned to deliver on our financial commitments for 2024. As we look beyond this year, our outlook for our pain portfolio in 2025 and beyond continues to meaningfully improve. Due in part to milestones we achieved this year, including the authorized generic agreement with Hickma Pharmaceuticals in the six-month pediatric exclusivity extension for the new SINTA franchise. And lastly, the Medicare Part D redesign in 2025 will serve as a tailwind for our pain portfolio, in particular for extensive ER.

Colleen: We plan to provide updated 2024 financial guidance for the combined business, including Iron sure. After the acquisition closes.

Colleen: 'twenty 'twenty four journey P. M. Net revenue is expected to be in excess of $100 million.

Colleen Tupper: With our strong financial performance in the first half of the year, we are well-positioned to deliver on our financial commitments for 2024. As we look beyond the share, our outlook for our pain portfolio in 2025 and beyond continues to meaningfully improve due in part to the milestones we achieved this year, including the authorized generic agreement with Hikma Pharmaceuticals and the six-month pediatric exclusivity extension for the Nucenta franchise. And lastly, the Medicare Part D redesign in 2025 will serve as a tailwind for our pain portfolio, in particular for Exstamza ER.

Colleen: With our strong financial performance in the first half of the year, we are well positioned to deliver on our financial commitments for 2024.

Colleen: As we look beyond this year, our outlook for our pain portfolio in 2025 and beyond continues to meaningfully improve due in part to milestones. We achieved this year, including the authorized generic agreement with Hikma pharmaceuticals, and the six month pediatric exclusivity extension, but the NUCYNTA franchise and lastly, the Medicare part D.

Colleen: In 2025 will serve as a tailwind for our pain portfolio in particular for extensive E. R. We anticipate the continued strength of our pain portfolio to support our expansion into neurology and for total company growth to be bolstered by Jordan eight P. M.

Colleen Tupper: We anticipate the continued strength of our pain portfolio to support our expansion into neurology, and for total company growth to be bolstered by Jordan APM. Our capital deployment strategy is focused on creating long-term value for our shareholders by executing on business development, paying down debt, and opportunistically returning capital to shareholders. Our acquisition of Ironshore meets each and every one of our business development criteria, and we will be focused on closing the transaction, integrating Ironshore, and maximizing Jordan APM. With the transaction, we secured a new term loan that replaces our existing loan at significantly improved terms. We estimate that our net leverage at year-end will be less than two times based on estimated fiscal year 2024 pro-forma combined EBITDA.

Colleen Tupper: We anticipate the continued strength of our pain portfolio to support our expansion into neurology and for total company growth to be bolstered by joint APM. Our capital deployment strategy is focused on creating long-term value for our shareholders by executing on business development, paying down debt, and opportunistically returning capital to shareholders. Our acquisition of Ironshore meets each and every one of our business development criteria, and we will be focused on closing the transaction, integrating Ironshore, and maximizing Jordan APM.

Colleen: Our capital deployment strategy is focused on creating long term value for our shareholders by executing on business development paying down debt and Opportunistically returning capital to shareholders.

Colleen: Our acquisition of I am sure it meets each and every one of our business development criteria and we will be focused on closing the transaction integrating iron short and maximizing Jordan eight P. M.

Colleen Tupper: With the transaction, we secured a new term loan that replaces our existing loan at a significantly improved interest rate. We estimate that our net leverage at year-end will be less than two times based on estimated fiscal year 2024 pro forma combined EBITDA. We expect that our significant cash flow generation post-transaction will enable us to delever and maintain a strong balance sheet to fund our growth going forward. We also strategically managed our balance sheet and reduced debt by redeeming the $26.4 million total principal amount of our 2026 convertible senior notes in all cases.

Colleen: With the transaction, we secured a new term loan that replaces our existing loan at significantly improved terms.

Colleen: We estimate that our net leverage at year end will be less than two times based on estimated fiscal year 2020 for pro forma combined EBITDA, we expect that our significant cash flow generation post transaction will enable us to delever and maintain a strong balance sheet to fund our growth going forward.

Colleen Tupper: We expect that our significant cash flow generation post-transaction will enable us to deliver and maintain a strong balance sheet to fund our growth going forward. We also strategically manage our balance sheet and reduce debt by redeeming the $26.4 million total principal amount of our 2026 convertible senior notes in all cash. We remain dedicated to creating value for our shareholders through opportunistically leveraging our $150 million share repurchase program as part of our capital deployment strategy. We recently repurchased $35 million through an accelerated share repurchase program at an average price of $32.94 per share. We have $150 million remaining in the program.

Colleen: We also strategically managed our balance and balance sheet and reduce debt by redeeming the $26 $4 million total principal amount of our 2026 convertible senior notes and all cash.

Colleen Tupper: We remain dedicated to creating value for our shareholders through opportunistically leveraging our $150 million share repurchase program as part of our capital deployment strategy. We recently repurchased $35 million through an accelerated share repurchase program at an average price of $32.94 per share. We have $150 million dollars remaining in the program. I will now turn it over to Scott to give a commercial update.

Colleen: We remain dedicated to creating value for our shareholders to opportunistically, leveraging our $150 million share repurchase program as part of our capital deployment strategy, we recently repurchased $35 million through an accelerated share repurchase program at an average price of $32 94 per share we have.

Colleen: $150 million remaining in the program.

Scott Dreyer: I will now turn it over to Scott to give a commercial update. Thanks, Colleen. At Collegium, we take pride in being the leader in responsible pain management with a unique and differentiated portfolio of products for the treatment of pain. Bell Buca, Extamps ER, and New Synta ER collectively command over half of the brand that ER market, demonstrating the ongoing strength and reach of our portfolio. Our commercial organization is focused on continuing to drive momentum for our products in order to make a positive impact on the lives of people living with pain and the communities we serve.

Colleen: I'll now turn it over to Scott to give the commercial update.

Scott: Thanks Colleen.

Scott Dreyer: At Collegium, we take pride in being the leader in responsible pain management, with a unique and differentiated portfolio of products for the treatment of pain. Belbuca, Extamsa ER, and Nusynta ER collectively command over half of the brands in the ER market, demonstrating the ongoing strength and reach of our portfolio. Our commercial organization is focused on continuing to drive momentum for our products in order to make a positive impact on the lives of people living with pain and the communities we serve. Belbuca continued to grow in the second quarter.

Scott: Ah Collegium, we take pride in being the leader in responsible pain management with a unique and differentiated portfolio of products for the treatment of pain BELBUCA extents, the ER and NUCYNTA ER collectively command over half of the brands that ER market, demonstrating the ongoing strength and reach of our portfolio.

Colleen: Our commercial organization is focused on continuing to drive momentum for our products in order to make a positive impact on the lives of people living with pain and the communities we serve.

Scott Dreyer: Bell Buca continued to grow in the second quarter. Prescriptions grew 2.1% compared to the second quarter of 2023, marking the fourth straight quarter of year-over-year prescription growth. We're encouraged by this consistent prescription growth, including 1.4% growth in the second quarter compared to the first quarter, and the impact that our strong commercial execution is having in the marketplace. We believe Schedule 3 products should be used before Schedule 2 and use more broadly. Bell Buca's uniquely positioned because of its clinical differentiation as a Schedule 3 product with a broad range of doses for the management of severe and persistent pain that requires an extended treatment period.

Scott: BELBUCA continued to grow in the second quarter.

Scott Dreyer: Prescriptions grew 2.1% compared to the second quarter of 2023, marking the fourth straight quarter of year-over-year prescription growth. We're encouraged by this consistent prescription growth, including 1.4% growth in the second quarter compared to the first quarter, and the impact that our strong commercial execution is having in the market. We believe Schedule 3 products should be used before Schedule 2 and used more broadly.

Scott: Prescriptions grew two 1% compared to the second quarter of 2023, marking the fourth straight quarter of year over year prescription growth. We're encouraged by this consistent prescription growth, including one 4% growth in the second quarter compared to the first quarter and the impact that our strong commercial execution is having in the marketplace. We believe schedule III products.

Scott: Be used before schedule to and used more broadly BELBUCA is uniquely positioned because of its clinical differentiation as a schedule III product with a broad range of doses for the management of severe and persistent pain that requires an extended treatment period.

Scott Dreyer: Belbuque is uniquely positioned because of its clinical differentiation as a Schedule 3 product with a broad range of doses for the management of severe and persistent pain that requires an extended treatment period. Our commercial teams are focused on delivering this message to healthcare professionals and building upon our commercial execution. Our priorities for Belbuca include pulling through Belbuca's strong commercial access, improving push-through in Medicare Part D, and expanding Medicare Part D coverage. But VUCA revenue growth in 2024 is expected to be driven by prescriptions. Extensa ER prescriptions were stable in the second quarter and in line with our expectations.

Scott Dreyer: Our commercial teams focused on delivering this message to healthcare professionals and building upon our commercial execution. Our priorities for Bell Buca include pulling through Bell Buca's strong commercial access, improving push through in Medicare Part D, and expanding Medicare Part D coverage. Bell Buca revenue growth in 2024 is expected to be driven by prescription growth. Extamps at ER prescriptions were stable in the second quarter and in line with our expectations. We expect revenue growth for the full year to be driven by improved growth to net. We're committed to educating positions on extamps's differentiated label pulling through our strong access position in commercial and party plans and securing new pair wins with available growth in that headroom.

Scott: Our commercial teams focused on delivering this message to health care professionals and building upon our commercial execution.

Scott: Our priorities for BELBUCA include pulling through BELBUCA is strong commercial access improving pushed through in Medicare part D and expanding Medicare part D coverage BELBUCA revenue growth in 'twenty 'twenty four is expected to be driven by prescription growth.

Scott: <unk> prescriptions were stable in the second quarter and in line with our expectations. We expect revenue growth for the full year to be driven by improved gross to net were committed to educating physicians on extensive differentiated label pulling through our strong access position in commercial and part D plans and securing new payer wins.

Scott Dreyer: We expect revenue growth for the full year to be driven by improved gross to net. We're committed to educating physicians on EXTAMPSA's differentiated label, gaining access to our strong access position in commercial and Part D plans, and securing new payer wins with available gross to net headlines. Our aspiration is to replace OxyContin utilization for appropriate patients. The Nucinta franchise is a key contributor to our pain portfolio. Cepentadol is a differentiated molecule with a proposed dual mechanism of action.

Scott: With available gross to net headroom, our aspiration is to replace oxycontin utilization for appropriate patients.

Scott Dreyer: Our aspiration is to replace OxyContin utilization for appropriate patient.

Scott Dreyer: The new Center of Franchise is a key contributor to our pain portfolio. Depends on the differentiated molecule with a proposed dual mechanism of action. It's viewed favorably and is highly differentiated by healthcare professionals. The positive developments for the franchise, including the authorized generic agreement with HIKMA and the six-month pediatric extension, along with our market access strategy, enable us to manage the new Center of Franchise contribution in a relatively stable manner year-on-year beginning in 2025 and beyond.

Scott: The NUCYNTA franchise is a key contributor to our pain portfolio. It depends it all as a differentiated molecule with the proposed dual mechanism of action, it's viewed favorably and as highly differentiated by health care professionals. The positive developments for the franchise, including the authorized generic agreement with Hikma and the six month pediatric extension.

Scott Dreyer: It is viewed favorably and is highly differentiated by healthcare professionals. The positive developments for the franchise, including the authorized generic agreement with HICMA and the six-month pediatric extension, along with our market access strategy, will enable us to manage this inter-franchise contribution in a relatively stable manner year-on-year, beginning in 2025 and beyond. We're excited to be a Diamond Sponsor and a significant participant at Pain Week this September. It's the largest pain conference in the U.S. for healthcare providers, and we will have a significant commercial and medical presence and expect to present eight posters supporting our pain franchise. This is a meaningful opportunity for Collegium to educate and engage with pain specialists across the country and expand the reach of our portfolio. Our participation further echoes our commitment to leading with science.

Scott: Along with our market access strategy enable us to manage the NUCYNTA franchise contribution and a relatively stable manner year on year, beginning in 2025 and beyond.

Scott Dreyer: We're excited to be a diamond sponsor and significant participant at Pain Week this September. It's the largest pain conference in the U.S. for healthcare providers. We'll have a significant commercial and medical presence and expect to present eight posters supporting our pain franchise. This is a meaningful opportunity for Collegium to educate and engage with pain specialists across the country and expand the reach of our portfolio. Our participation further echoes our commitment to leading with the science.

Scott: We're excited to be a diamond sponsor and significant participant at pain week. This September it's the largest pain conference in the U S for health care providers will have a significant commercial and medical presence and expect to present eight posters supporting our pain franchise.

Scott: This is a meaningful opportunity for collegium to educate and engage with pain specialists across the country and expand the reach of our portfolio.

Scott: Our participation further echoes our commitment to leading with the science.

Scott Dreyer: We're thrilled to welcome Jordan APM into our portfolio of commercial assets and to expand our commercial presence into the large and growing ADHD market upon closing of the Ironshore acquisition. Jordan APM is a highly differentiated product that can address an unmet need for patients and caregivers. And it's poised for rapid growth as we look to leverage our commercial experience to maximize the brand's potential. The ADHD market has grown 5% on average over the past four years, and over the past few years, Jordan APM has delivered significant double-digit prescription growth. In 2023, total prescriptions for Jordan A grew 58% compared to 2022 to approximately 490,000.

Scott: We're thrilled to welcome Jordon APM into our portfolio of commercial assets and to expand our commercial presence into the large and growing ADHD market upon closing of the iron shore acquisition.

Scott Dreyer: We're thrilled to welcome JORN APM into our portfolio of commercial assets and to expand our commercial presence into the large and growing ADHD market upon the closing of the Ironshore acquisition. JORN APM is a highly differentiated product that can address an unmet need for patients and caregivers. And it's poised for rapid growth as we look to leverage our commercial experience to maximize the brand's potential. The ADHD market has grown 5% on average over the past four years, and over the past few years, Jorne PM has delivered significant double-digit prescription growth.

Scott: Jordan APM as a highly differentiated product that can address an unmet need for patients and caregivers and it's poised for rapid growth as we look to leverage our commercial experience to maximize the brand's potential.

Scott: The ADHD market is growing 5% on average over the past four years and over the past few years Joern eight P. M has delivered significant double digit prescription growth in 2023 total prescriptions for G&A grew 58% compared to 2022 to approximately 490000 and through the first half of this year Jordan.

Scott Dreyer: In 2023, total prescriptions for Jorne grew 58% compared to 2022, to approximately 490,000. And through the first half of this year, Jordan APM prescriptions have grown 32% year over year. In addition, Journey has a broad and growing prescriber base, approximately 15,000 prescribers every month, and strong market access. The ADHD business is concentrated in the commercial and the Medicaid segments, about 60 percent of the business in commercial and 40 percent in Medicaid.

Scott Dreyer: And through the first half of this year, Jordan APM prescriptions have grown 32% year over year. In addition, Jordan A has a broad and growing prescriber base, approximately 15,000 prescribers every month, and strong market access. The ADHD business is concentrated to the commercial and the Medicaid segments, about 50% of the business in commercial and 40% in Medicaid. And Jordan APM has 80% coverage across these segments. With these strong fundamentals and clinical differentiation, we see significant opportunity for Jordan APM. And we believe it has the potential to be Collegium's leading growth driver, complementing our continued leadership position in responsible pain management.

Scott: P M prescriptions have grown 32% year over year.

Scott: In addition, joining has a broad and growing prescriber base approximately 15000 prescribers every months and strong market access.

Scott: The ADHD business is concentrated to the commercial and the Medicaid segments about 60% of the business and commercial and 40% in Medicaid and Jordan APM has 80% coverage across these segments.

Scott Dreyer: And Jordan APM has 80 percent coverage across these segments. With these strong fundamentals in clinical differentiation, we see significant opportunity for JORN-APM, and we believe it has the potential to be Collegium's leading growth driver, complementing our continued leadership position in responsible pain management. In closing, in the second half of the year, we're focused on operational execution to drive momentum in our pain portfolio and integrate Jordan APM seamlessly into our portfolio. We believe that we are well positioned for meaningful growth in 2025 and beyond. I'll now turn back the call.

Scott: With these strong fundamentals and clinical differentiation, we see significant opportunity for Jordan a P. M and we believe it has the potential to be Collegium is leading growth driver complementing our continued leadership position in responsible pain management.

Operator: Greetings, and welcome to the Collegium Pharmaceutical Second Quarter 2024 Arnie's conference call. At this time, all participants on a listen-only mode. A question and answer session will follow before we presentation.

Scott Dreyer: In closing, in the second half of the year, we're focused on operational execution to drive momentum in our pain portfolio and integrate Jordan APM seamlessly into our portfolio. We believe that we are well positioned for meaningful growth in 2025 and beyond.

Scott: In closing in the second half of the year, we're focused on operational execution to drive momentum in our pain portfolio and integrate Jordan APM seamlessly into our portfolio.

Operator: If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. Please note that this conference call is being recorded.

Christopher James: Now, I'll turn the call over to Christopher James, Vice President of Inversiulations at Collegium. Thank you. You may begin.

Scott: We believe that we are well positioned for meaningful growth in 2025 and beyond I'll now turn the call back to Mike.

Michael Heffernan: I'll now turn the call back to Mike. Thanks, Scott. We were at a transformational time for Collegium. We were on track to deliver record financial performance this year as we maximize the value of our pain portfolio and deliver on the growth with the Buckeye and extend the ER.

Mike Heffernan: Thanks Scott.

Christopher James: Welcome to Collegium Pharmaceuticals Second Quarter 2024 Arnie's conference call.

Michael Heffernan: We are at a transformational time for Collegium. We are on track to deliver record financial performance this year as we maximize the value of our pain portfolio and deliver on growth with Babuka and XtandVR. With the addition of JournATM upon the closing of the Ironshore acquisition, we are expanding into a new therapeutic area with a differentiated product that is poised to become our leading growth driver. We are confident in our ability to meet our strategic and financial commitments in order to create value for Sherald. With a solid track record of execution and success, Collegium is well positioned for future growth. I will now open the call up for questions. Operator?

Mike Heffernan: We were at a transformational time for Collegian, we're on track to deliver record financial performance. This year as we maximize the value of our pain portfolio and deliver on the growth with BELBUCA and extend the ER with the addition of John ATM upon closing of the Iron <unk> acquisition, we are expanding into a new therapeutic area with a differentiated product.

Michael Heffernan: I'm joined today by Mike Heffernan, our interim president and chief executive officer, founder and chairman, 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.

Michael Heffernan: With the addition of Jordan APM upon closing up the Ironshore acquisition, we are expanding into a new therapeutic area with a differentiated product that is poised to become our leading growth driver. We are confident in our ability to achieve our strategic and financial commitments in order to create value for shareholders. For the solid track record of execution and success, Collegium is well positioned for future growth.

Mike Heffernan: It is poised to become our leading growth driver, we're confident in our ability to achieve our strategic and financial commitments in order to create value for shareholders with a solid track record of execution success lesion is well positioned for future growth.

Michael Heffernan: Your caution that such forward looking statements involve risk-sentence certainties, including and without limitation, the risk that we may not be able to successfully commercialize our products, that we may incur significant expense in doing so, that we may not prevail in current or future litigation pertaining to our business. Risk related to our ability to complete the acquisition of our intratherapidics on the proposed terms and schedule or at all. Risk related to our ability to realize the anticipated benefits and synergies of the proposed acquisition of Ironshore.

Michael Heffernan: I will now open the call up for questions.

Speaker Change: I will now open the call up for questions operator.

Operator: Operator? Thank you.

Speaker Change: Thank you we will now be conducting a question and answer session.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 2. Our first question comes from the line of David Amsellem with Piper Sandler. Please proceed with your question.

David Amsellem: We will now be conducting a question and answer section. If you would like to ask the question, please first start one of your telephone key bag. A confirmation tone will indicate your line is in the question queue. You may first start if you would like to remove your question from the queue.

Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star.

David Amsellem: Thanks. So, I'll just have a couple.

Operator: For participants, use the speaker equipment and maybe necessarily pick up your handset before pressing the start key.

Michael Heffernan: The risk that the business will not be integrated successfully. Risk related to negative effects of this announcement or the consummation of proposed acquisition on the market price of our common stock and or operating results. And risk related to future opportunities and plans for Ironshore. 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-gap information.

David Amsellem: Our first question comes from the line of David Amsellem with Piper Sandler. Please foresee which your question is. Thanks, so just have a couple of first on Bill Buka and I joined late so I apologize if I missed this in the prepared remarks, but can you talk about how you're thinking about improving Medicare Part D access for that product beyond this year and just remind us what covered lives on Part D currently looks like. So that's number one. And then secondly, in terms of the acquisition and the focus on ADHD and calling on psychiatrists, how do you think about additional transactions over the long term as you deliver, as you're generating cash now that you're in this new therapeutic vertical?

Speaker Change: Our first question.

Speaker Change: Comes from the line of David Amsterdam, with Piper Sandler.

Speaker Change: Please proceed with your question.

David Amsellem: First, on Bilbuka. I joined late, so I apologize if I missed this in the prepared remarks. But can you talk about how you're thinking about improving Medicare Part D access for that product beyond this year? And just remind us what the covered lives on Part D currently look like. So, that's number one. And then secondly, in terms of the acquisition and the focus on ADHD and calling on psychiatrists, how do you think about additional transactions over the long term as you de-lever, as you're generating cash now that you're in this new therapeutic vertical? Would it be safe to say that you're going to look for additional assets that leverage the infrastructure that you're going to have in place? Thanks.

David Amsterdam: Thanks, So just have a couple first on BELBUCA.

Speaker Change: I joined late so I apologize if I missed this in the prepared remarks, but can you talk about how you're thinking about.

Speaker Change: Improving our Medicare part D access for that product beyond this year and just remind us what covered lives on part D. Currently looks like so that's number one.

Michael Heffernan: You can find our earnings press release including relevant non-gap reconciliation on our corporate website at collegiumfarmad.com.

Michael Heffernan: I will now turn the call over to our chairman, interim president, and CEO Mike Heffernitt. Thank you, Chris. Good afternoon and thank you everyone for joining the call. Today we will discuss collegium's financial performance during the second quarter and provide an update on our progress in 2024. 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 while striving to do good as we do well.

Speaker Change: And then secondly in terms of the acquisition and the.

Speaker Change: The focus on ADHD and calling on psychiatrists, how do you think about.

Speaker Change: National transactions over the long term.

Speaker Change: As you Delever as you're generating cash now that you're in this.

Speaker Change: New therapeutic vertical would it be safe to say that youre going to look for additional assets that leverage the infrastructure that you're going to have in place. Thanks.

David Amsellem: Would it be safe to say that you're going to look for additional assets that leverage the infrastructure that you're going to have in place? Thanks.

Michael Heffernan: I'd like to recognize the collegium team for their dedication to our mission and community impact as well as their strong performance in support of our pain portfolio in implementing our capital deployment strategy in the first half of the year. Our results this quarter into the first half of the year reinforced collegium's strong operational execution. We continue to generate robust operating cash flows and drive significant top and bottom line growth in our pain portfolio including growing revenue 7% and adjusted even a 12% on a year-over-year basis in the second quarter.

Scott Dreyer: So, Scott, you want to think that first question. Thanks, David. Questions? Yeah, that's great.

Speaker Change: So Scott do you want to take that first question. Thanks, David for the questions.

Michael Heffernan: So, Scott, you want to take that first question? Thanks, David, for the question.

Scott Dreyer: Yeah, that's great. I'll take that. Thanks, David.

Scott Dreyer: So yeah, so first and foremost, if you look at the current position of Belbuca, it's covered for about 30% of Medicare Part D lives. And as we look going forward in terms of improving that coverage, the focus is the clinical profile of the drug. We believe that Schedule 3 should be used before Schedule 2 and used more broadly, and that patients should have full access to the differentiated profile of Belbuca.

Scott: Yeah, that's great I'll take that thanks, David So yeah. So first and foremost if you look at the current position of BELBUCA. Its covered for about 30% of Medicare part D lives as well and as we look going forward in terms of improving that that coverage look the focus is the clinical profile of the drug we believe that schedule III should be use.

Scott Dreyer: I'll take that. Thanks, David. So yeah, so first and foremost, if you look at the current position of Bill Buka, it's covered for about 30% of Medicare Part D lives. And as we look going forward in terms of improving that coverage, look, the focus is the clinical profile of the drug. We believe that Schedule Three should be used before Schedule Two and used more broadly and that patient should have full access to the differentiated profile of Bill Buka. So that's what we're engaging pairs with: is that clinical data, that data that only keeps getting stronger.

Scott: Before scheduled to and used more broadly and that patients should have full access to the differentiated profile of BELBUCA. So that's what we're engaging payers with is that clinical data that data that only keeps getting stronger and then we'll see where the dust settles when we get to November if we're able to achieve new wins in an economics that works for us.

Michael Heffernan: Through execution of the Hickman authorized generic agreement and securing the six-month pediatric exclusivity extension for the new set to franchise, we are maximizing the value of this portfolio to 2025 in the year. Fund. The strength of our pain business positions us to execute on the recently announced proposed acquisition of iron short therapeutics, including its commercial product to an APM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder or ADHD in people six years of age and older.

Scott Dreyer: So that's what we're engaging payers with that clinical data, that data that only keeps getting stronger. And then we'll see where the dust settles when we get to November, if we're able to achieve new wins in an economic that works for us.

Scott Dreyer: And then we'll see, well, where the dust settles when we get to November, if we're able to achieve new wins in an economics that works for us. Great. Thanks, Scott.

David Amsterdam: Great. Thanks, Scott and on the second question, David about acquisition strategy going forward I mean, clearly you know we're gonna be focused in the short term on integration and then growing the G&A busy.

Scott Dreyer: Great. Thanks, Scott.

Michael Heffernan: And on the second question, David, about acquisition strategy going forward, I mean, clearly, you know, we're going to be focused in the short term on integration and then growing the Jornet business, which will take, you know, a significant amount of effort. Subsequent to that, we'll be calling on, you know, a mix of pediatrics and neuropsych. But we will be sharpening our BD focus around those particular focus areas, which gives us a lot of optionality. And, as you suggest, we will be looking to create synergy, and as we build the business development strategy going forward.

Michael Heffernan: And on the second question, David, about acquisition strategy going forward, I mean, clearly, you know, we're going to be focused in the short term on integration and then growing the Journey business, which will take, you know, a significant amount of effort. Subsequent to that, we'll be calling on, you know, a mix of pediatrics and neuropsych. So, we will be sharpening our BD focus around those particular focus areas, which gives us a lot of optionality. And, as you suggest, we will be looking to create synergies as we build the business development strategy going forward.

Scott: Business, which will take you know a significant amount of effort subsea.

Speaker Change: Subsequent to that we will be calling on you know a mix of pediatrics neuro psych. So we will be sharpening our BD focus around those particular focus areas, which gives us a lot of optionality and as you suggest we will be looking to create synergy and as we build the business development strategy going forward.

Michael Heffernan: The iron short acquisition meets all of our business development objectives. To an APM is a highly differentiated commercial asset that diversifies our portfolio, a significant revenue and growth potential in exclusivity into the 2030s. John APM is expected to generate net revenue and excess of $100 million in 2024. Expans our commercial presence into ADHD, a large growing market, and is poised to become the leading growth driver for Collegium. Once the acquisition closes, we will leverage our core competencies with respect to commercial execution and build on our proven track record as efficiently and successfully integrating commercial assets to build our portfolio.

Speaker Change: Okay. That's helpful. Thanks.

David Amsellem: Okay, that's helpful. Thanks.

David Amsellem: Okay, that's thank you.

Speaker Change: Thank you and as a reminder, if anyone has any questions. You May press star one on your telephone keypad to join the queue.

Les Sulewski: Thank you. And as a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the queue. Our next question comes from the line of Les Sulewski with Schwartz Security. Please proceed with your question.

Operator: And, as a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the queue.

David Amsterdam: Yeah.

Leszek Sulewski: Our next question comes from the line of police, which was security? Please proceed with your question. Great. Thank you for taking my questions. And I have to wrap up on the quarter.

Speaker Change: Our next question comes from the line of less of Oslo.

Speaker Change: She was securities. Please proceed with your question.

Michael Heffernan: Importantly, the addition of to an APM serves as a step forward in building another therapeutic area of focus for Collegium. We look forward to closing this transaction in the third quarter, welcoming the iron short team to Collegium and embracing join APM as the newest part of portfolio. For the second half of this year, we are focusing on delivering our financial commitments by maximizing our pain business while closing and seamlessly integrating our proposed acquisition of iron short therapeutics.

Speaker Change: Great. Thank you for taking my questions and congrats on the quarter, how do you balance the integration versus maintaining the performance you've been able to achieve across your current portfolio and then second on the update on the CEO search has the iron short acquisition changed the focus on the potential candidates.

Les Sulewski: Great, thank you for taking my questions and congratulations on the quarter. How do you balance the integration versus maintaining the performance you've been able to achieve across your current portfolio? And then, second, on the update on the CEO search, has the Ironshore acquisition changed the focus on the potential candidate selection? Thank you.

Leszek Sulewski: How do you balance the integration versus maintaining the performance you've been able to achieve across your current portfolio?

Leszek Sulewski: And then second, on the update on the CEO search, has the iron short acquisition changed the focus on the potential candidate selection? Thank you. Yeah, thanks, Lesza. Questions.

Speaker Change: Thank you.

Speaker Change: Yeah.

Michael Heffernan: Yeah, thanks, Les, for the questions. You know, from the standpoint of my company, I'll take the CEO search question. So, you know, the CEO search, as I mentioned in my comments, is ongoing and active and making good progress. And we've seen some really good candidates. Frankly, if anything, this has increased the interest because of the growth potential when we bring Journey into the portfolio. So we remain very focused on finding a top-tier candidate, and this has not changed the strategy at all.

Speaker Change: Yeah, Thanks for the questions.

Michael Heffernan: From the standpoint, I'll take the CEO search question. The CEO search, as I mentioned in my comments, is ongoing and active, and making good progress, and we've seen some really good candidates. Frankly, if anything, this has increased the interest because of the growth potential when we bring Joint A into the portfolio. So we remain very focused on finding top tier candidates, and this has not changed the strategy at all.

Speaker Change: You know from the standpoint, I'll I'll take the CEO search.

David Amsterdam: <unk>.

David Amsterdam: You know the CEO search as I mentioned in my comments, it is ongoing and active and making good progress and we've seen some really good candidates frankly, if anything this has increased the interest because of the growth potential.

Michael Heffernan: We are confident that we will achieve our 2024 financial commitments for the pain business, which along with the join APM will set a solid foundation for 2025 and beyond. Additionally, our search for the next CEO to lead Collegium in this upcoming phase of growth is active and ongoing. We look forward to sharing updates on this important process as it becomes available. Our strong executive team has the full trust of the board and will continue our focus on operational execution during this process.

David Amsterdam: We bring G&A into the portfolio so.

David Amsterdam: We remain very focused on finding a.

David Amsterdam: Top tier candidate and this does not change the strategy at all.

Scott Dreyer: Scott, do you want to take the first question? Yeah, sure, Mike. Yeah, thanks for the question, Les. And in terms of balance, it's very,

Scott Dreyer: Scott, do you want to take the first question? Yes, sure, Mike. Thanks to the question, Lesza. And in terms of balance, it's very simple. We will maintain 100 percent of our paying sales force, marketing teams, the core commercial people focused on pain, and then we will integrate a fully commercialized joint A team in that sales force, and there will be no overlap. Each will be focused on what they're responsible for, the pain group, with continuing to maximize the value of that full portfolio of pain products, and the joint APM team continuing to focus on the growth trajectory that's been started for Joint A.

David Amsterdam: Pat do you want to take the first question.

Operator: Thank you. Again, as a reminder, if anyone has any questions, pressing star 1 will connect you to the questionnaire to ask a question. And it looks like we have reached the end of the question-and-answer session. And I'll turn the call back over to Mike for a closing remark.

Scott Dreyer: Yeah, sure, Mike. Yeah, thanks for the question, Les, and in terms of balance, it's very simple. We will maintain 100% of our pain sales force, marketing teams, the core commercial people focused on pain, and then we will integrate a fully commercialized JORN-A team into that sales force, and there will be no overlap. Each will be focused on what they're responsible for. The pain group, with continuing to maximize the value of that full portfolio of pain products, and the JORN-A PM team continuing to focus on the growth trajectory that's been started for JORN-A. So that's our approach, is really just keeping complete separation in our commercial efforts. Great, thank you.

Pat: Yes sure Mike. Thanks for the question lesson and in terms of balance it's very simple, we will maintain 100% of our pain sales force marketing teams. The core commercial people focused on pain, and then we will integrate a fully commercialized joern ATM and that sales force and there will be no overlap each will be focused on what they are.

Colleen Tupper: I will now hand the call over to Colleen to discuss key business highlights and financials. Thanks, Mike. Good afternoon, everyone.

Colleen Tupper: In the second quarter of 2024, we generated top and bottom line growth, executed on our capital deployment strategy and improved the outlook for our pain portfolio in 2025 and beyond. Recent key accomplishments and highlights include, we delivered another strong quarter for Bill Buca with prescriptions up 2.1% year over year, and 1.4% quarter over quarter, coupled with record quarterly Bill Buca revenue up 21% year over year. We grew extamps the ER revenue 8% year over year with growth to net of 56.2% in the second quarter, reinforcing the success of our contract renegotiation strategy.

David Amsterdam: Possible for the pain group with continuing to maximize the value of that full portfolio of pain products and the join a P. Eight P. M team continuing to focus on the growth trajectory. That's been started for G&A. So that's our approach is really just keeping complete separation in our commercial efforts.

Scott Dreyer: So that's our approach: is really just keeping complete separation in our commercial offers. Great. Thank you.

Speaker Change: Great. Thank you.

David Amsterdam: Yeah.

David Amsterdam: Thank you.

Operator: Again, as a reminder, if anyone has any questions, pressing star one will join you into the question and execute to ask the question.

Speaker Change: Again as a reminder, if anyone has any questions pressing star one will join you into the question and answer ask a question.

David Amsterdam: Yeah.

Colleen Tupper: We bolstered the value of the new Center franchise in 2025 and beyond through our authorized generic agreement with Hickma Pharmaceuticals and the six month pediatric exclusivity extension for the new Center franchise, extending the exclusivity of new Center to January 3rd, 2027 and new Center ER to December 27th, 2025, and we executed on our capital deployment strategy, including announcing the proposed acquisition of Ironshore Therapeutics, which will establish Collegium's presence in the large and growing ADHD market and diversify our portfolio with a meaningfully differentiated product that is poised to become our leading growth driver, securing attractive financing for the acquisition of Ironshore with terms that reduce our cost of capital by 300 basis points and enhance flexibility in the management of our debt, redeeming all 26.4 million dollars aggregate principal amount of our previously outstanding convertible senior notes due in 2026, and returning 35 million dollars in capital to shareholders through an accelerated share repurchase program, repurchasing 1.06 million shares at an average share price of $32.94. Our second quarter performance reflects record Belbuke revenue, disciplined expense management, significant bottom line expansion, and robust operating cash flows.

David Amsterdam: Okay.

David Amsterdam: Okay.

Michael Heffernan: And it looks like we have reached the end of the question-and-answer session, and I'll turn the call back over to Mike for closing remarks. Thank you. Everyone for joining the call today. Have a great evening.

David Amsterdam: And it looks like we have reached the end of the question and answer session and I will turn the call back over to Mike for closing remarks.

Mike Heffernan: Thank you.

Michael Heffernan: everyone for joining the call today. Have a great evening. And this concludes today's program.

Mike Heffernan: One for joining the call today have a great evening.

Operator: And this concludes today's conference. You made us connect your lives at this time. Thank you for your participation. Thank you.

Speaker Change: And this concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Operator: And this concludes today's conference, and you may disconnect your lines. Thank you for your participation. Find me on Facebook at www.facebook.com or on Instagram at www.instagram.com

David Amsterdam: Okay.

David Amsterdam: Yeah.

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Colleen Tupper: Financial highlights for the second quarter include, net product revenues were $145.3 million in the second quarter, up 7% year over year. Belbuke net revenue was a record 52.2 million up 21% year over year. Expansity our net revenue was $44.6 million, up 8% year over year, and Expansity our gross to net was 56.2% in the second quarter. We now expect the full year Expansity our gross to net to be between 55 to 57% in 2024, which is an improvement from our previously guided range of 56 to 58%.

David Amsterdam: Okay.

David Amsterdam: Yes.

David Amsterdam: Okay.

David Amsterdam: Uh-huh.

David Amsterdam: Okay.

David Amsterdam: Okay.

David Amsterdam: Sure.

David Amsterdam: Mhm.

David Amsterdam: No.

David Amsterdam: Mhm.

David Amsterdam: Mhm.

David Amsterdam: Hum.

David Amsterdam: Okay.

Colleen Tupper: Looking forward to 2025, with the Medicare PARTY redesign, Expansity EAR will benefit from the small manufacturer phase in period related to paying rebates for utilization by low income subsidy patients, also known as due eligible. New Census franchise net revenue was $44.5 million, down 6% year over year. Gap operating expenses were $43.3 million, up 13% year over year. This quarter included a $3.1 million charge related to the CEO transition. Excluding this in stock base compensation, adjusted operating expenses were $30.3 million, down 3% year over year.

David Amsterdam: Okay.

David Amsterdam: Okay.

David Amsterdam: Uh huh.

David Amsterdam: Yeah.

Colleen Tupper: Gap net income for the second quarter was $19.6 million, up 51% year over year. Non-Gap adjusted EBITDA was $96 million, up 12% year over year. Gap earnings per share was 60 cents basic and 52 cents diluted in the second quarter, compared to Gap earnings per share of 38 cents basic and 34 cents diluted in the prior year period. Non-Gap adjusted earnings per share was $1.62 in the second quarter, up 29% year over year.

Colleen Tupper: Please see our press release issued earlier today for a reconciliation of Gap to non-Gap results. As of June 30th, we had $271.6 million in cash, cash equivalents, and marketable securities. We generated another quarter of strong cash flows, enabling us to execute on our capital deployment strategy and enter into an agreement to acquire iron. Assure. Under the terms of a proposed Ironshore acquisition, Collegium will acquire all the outstanding shares of Ironshore for $525 million in cash at closing.

Colleen Tupper: Collegium will also pay Ironshore shareholders $25 million in additional consideration if Jordan APM net revenue exceeds the defined threshold in 2025. The all-tash consideration will be funded by approximately $200 million of Collegium's existing cash on hand and approximately $325 million of our new $646 million secured financing from Pharmacon. $320.8 million of the new term loan was used to replace our prior term loan with Pharmacon, reducing our interest rate on this balance by 300 basis points.

Colleen Tupper: Our reduced interest rate enables us to keep our interest expense for the next 12 months relatively stable, including the funding of an acquisition that is poised to add a new lead growth driver, Jordan APM. In addition to the significant improvement in our cost of capital, the new term loan also has a longer term lower amortization and more pre-payment flexibility. We expect the transaction to be immediately accretive to adjusted EBITDA while being highly accretive to 2025 adjusted EBITDA. The acquisition is expected to close in the third quarter of 2024 subject to customary closing conditions, including receipt of required regulatory approvals.

Colleen Tupper: We are reaffirming our 2024 financial guidance for the current business, not including the impact of the proposed acquisition of Ironshore. We expect net product revenues in the range of $580 to $595 million. We expect Bill Buker revenue growth in 2024 to be fuelled by full-year prescription growth. We expect 2024 revenue growth for extensive ER to be driven by gross to net improvement. For the new SINTA franchise on a full-year basis, due to the elimination of the Medicaid cap by the American Recovery Act, we expect some pressure on the new SINTA franchise year-over-year revenues in 2024 with a return to relative year-over-year stability in 2025.

Colleen Tupper: We expect adjusted operating expenses in the range of $120 to $125 million with expenses being lower in the second half of the year as compared to the first half of the year, and adjusted EBITDA in the range of $380 to $395 million. We plan to provide updated 2024 financial guidance for the combined business, including Ironshore after the acquisition closes. 2024, with our strong financial performance in the first half of the year, we are well positioned to deliver on our financial commitments for 2024.

Colleen Tupper: As we look beyond this year, our outlook for our pain portfolio in 2025 and beyond continues to meaningfully improve. Due in part to milestones we achieved this year, including the authorized generic agreement with Hickma Pharmaceuticals in the six-month pediatric exclusivity extension for the new SINTA franchise. And lastly, the Medicare Part D redesign in 2025 will serve as a tailwind for our pain portfolio, in particular for extensive ER. We anticipate the continued strength of our pain portfolio to support our expansion into neurology, and for total company growth to be bolstered by Jordan APM.

Colleen Tupper: Our capital deployment strategy is focused on creating long-term value for our shareholders by executing on business development, paying down debt, and opportunistically returning capital to shareholders. Our acquisition of Ironshore meets each and every one of our business development criteria and we will be focused on closing the transaction, integrating Ironshore, and maximizing Jordan APM. With the transaction, we secured new term loan that replaces our existing loan at significantly improved terms. We estimate that our net leverage at year-end will be less than two times based on estimated fiscal year 2024 pro-former combined EBITDA.

Colleen Tupper: We expect that our significant cash flow generation post-transaction will enable us to deliver and maintain a strong balance sheet to fund our growth going forward. We also strategically manage our balance sheet and reduce debt by redeeming the $26.4 million total principal amount of our 2026 convertible senior notes in all cash. We remain dedicated to creating value for our shareholders through opportunistically leveraging our $150 million share repurchase program as part of our capital deployment strategy. We recently repurchased $35 million through an accelerated share repurchase program at an average price of $32.94 per share. We have $150 million remaining in the program.

Scott Dreyer: I will now turn it over to Scott to give a commercial update. Thanks, Colleen. At Collegium, we take pride in being the leader in responsible pain management with a unique and differentiated portfolio of products for the treatment of pain.

Scott Dreyer: Bell Buca, Extamps ER, and New Synta ER collectively command over half of the brand that ER market, demonstrating the ongoing strength and reach of our portfolio. Our commercial organization is focused on continuing to drive momentum for our products in order to make a positive impact on the lives of people living with pain and the communities we serve. Bell Buca continued to grow in the second quarter. Prescriptions grew 2.1% compared to the second quarter of 2023 marking the fourth straight quarter of year over year prescription growth.

Scott Dreyer: We're encouraged by this consistent prescription growth, including 1.4% growth in the second quarter compared to the first quarter, and the impact that our strong commercial execution is having in the marketplace. We believe schedule 3 products should be used before schedule 2 and use more broadly. Bell Buca's uniquely positioned because of its clinical differentiation as a schedule 3 product with a broad range of doses for the management of severe and persistent pain that requires an extended treatment period.

Scott Dreyer: Our commercial teams focused on delivering this message to healthcare professionals and building upon our commercial execution. Our priorities for Bell Buca include pulling through Bell Buca's strong commercial access, improving push through in Medicare Part D, and expanding Medicare Part D coverage. Bell Buca revenue growth in 2024 is expected to be driven by prescription growth. Extamps at ER prescriptions were stable in the second quarter and in line with our expectations. We expect revenue growth for the full year to be driven by improved growth to net.

Scott Dreyer: We're committed to educating positions on extamps's differentiated label pulling through our strong access position in commercial and party plans and securing new pair wins with available growth in that headroom. Our aspiration is to replace oxycontin utilization for appropriate patient.

Scott Dreyer: The new Center of Franchise is a key contributor to our pain portfolio. Depends on the differentiated molecule with a proposed dual mechanism of action. It's viewed favorably and is highly differentiated by healthcare professionals. The positive developments for the franchise, including the authorized generic agreement with HIKMA and the six-month pediatric extension, along with our market access strategy, enable us to manage the new Center of Franchise contribution in a relatively stable manner year-on-year beginning in 2025 and beyond.

Scott Dreyer: We're excited to be a diamond sponsor and significant participant at pain week this September. It's the largest pain conference in the U.S, for healthcare providers. We'll have a significant commercial and medical presence and expect to present eight posters supporting our pain franchise. This is a meaningful opportunity for Collegium to educate and engage with pain specialists across the country and expand the reach of our portfolio. Our participation further echoes our commitment to leading with the science.

Scott Dreyer: We're thrilled to welcome Jordan APM into our portfolio of commercial assets and to expand our commercial presence into the large and growing ADHD market upon closing of the Ironshore acquisition. Jordan APM is a highly differentiated product that can address an unmet need for patients and caregivers. And it's poised for rapid growth as we look to leverage our commercial experience to maximize the brand's potential. The ADHD market has grown 5% on average over the past four years and over the past few years, Jordan APM has delivered significant double-digit prescription growth.

Scott Dreyer: In 2023 total prescriptions for Jordan A grew 58% compared to 2022 to approximately 490,000. And through the first half of this year, Jordan APM prescriptions have grown 32% year over year. In addition, Jordan A has a broad and growing prescriber base, approximately 15,000 prescribers every month and strong market access. The ADHD business is concentrated to the commercial and the Medicaid segments, about 50% of the business and commercial and 40% in Medicaid.

Scott Dreyer: And Jordan APM has 80% coverage across these segments. With these strong fundamentals and clinical differentiation, we see significant opportunity for Jordan APM. And we believe it has the potential to be Collegium's leading growth driver, complementing our continued leadership position in responsible pain management.

Scott Dreyer: In closing in the second half of the year, we're focused on operational execution to drive momentum in our pain portfolio and integrate Jordan APM seamlessly into our portfolio. We believe that we are well positioned for meaningful growth in 2025 and beyond.

Michael Heffernan: I'll now turn the call back to Mike. Thanks Scott.

Michael Heffernan: We were at a transformational time for Collegium. We were on track to deliver record financial performance this year as we maximize the value of our pain portfolio and deliver on the growth with the Buckeye and extend the ER. With the addition of Jordan APM upon closing up the Ironshore acquisition, we are expanding into a new therapeutic area with a differentiated product that is poised to become our leading growth driver. We are confident in our ability to achieve our strategic and financial commitments in order to create value for shareholders. For the solid track record of execution and success, Collegium is well positioned for future growth.

Michael Heffernan: I will now open the call up for questions.

Operator: Operator? Thank you.

Operator: We will now be conducting a question and answer section. If you would like to ask the question, please first start one or your telephone key bag. A confirmation tone will indicate your line is in the question queue. You may first start if you would like to remove your question from the queue.

Operator: For participants, use the speaker equipment and maybe necessarily pick up your handset before pressing the start key.

David Amsellem: Our first question comes from the line of David Amsellem with Piper Sandler.

David Amsellem: Please for see which your question is. Thanks, so just have a couple of first on Bill Buka and I joined late so I apologize if I missed this in the prepared remarks but can you talk about how you're thinking about improving Medicare Part D access for that product beyond this year and just remind us what covered lives on Part D currently looks like. So that's number one. And then secondly, in terms of the acquisition and the the focus on ADHD and calling on psychiatrists, how do you think about additional transactions over the long term as you deliver as you're generating cash now that you're in this new therapeutic vertical? Would it be safe to say that you're going to look for additional assets that leverage the infrastructure that you're going to have in place?

Michael Heffernan: Thanks.

Scott Dreyer: So Scott, you want to think that first question. Thanks, David.

Scott Dreyer: Questions? Yeah, that's great. I'll take that. Thanks, David. So yeah, so first and foremost, if you look at the current position of Bill Buka, it's covered for about 30% of Medicare Part D lives. And as we look going forward in terms of improving that coverage, look, the focus is the clinical profile of the drug. We believe that schedule three should be used before schedule two and used more broadly and that patient should have full access to the differentiated profile of Bill Buka.

Scott Dreyer: So that's what we're engaging pairs with is that clinical data that data that only keeps getting stronger. And then we'll see, well, where the dust settles when we get to November, if we're able to achieve new wins in an economics that works for us.

Michael Heffernan: Great. Thanks, Scott. And on the second question, David, about acquisition strategy going forward, I mean, clearly, you know, we're going to be focused in the short term on integration and then growing the Jornet business, which will take, you know, a significant amount of effort. Subsequent to that, we'll be calling on, you know, a mix of pediatrics and neuropsych. But we will be sharpening our BD focus around those particular focus areas, which gives us a lot of optionality. And as you suggest, we will be looking to create synergy and as we build the business development strategy going forward.

David Amsellem: Okay, that's thank you.

Operator: And as a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the queue.

Leszek Sulewski: Our next question comes from the line of Police, which was security? Please proceed with your question. Great. Thank you for taking my questions. And I have to wrap up on the quarter.

Leszek Sulewski: How do you balance the integration versus maintaining the performance you've been able to achieve across your current portfolio? And then second, on the update on the CEO search, has the iron short acquisition changed the focus on the potential candidate selection? Thank you. Yeah, thanks, Lesza, questions. From the standpoint, I'll take the CEO search question. The CEO search, as I mentioned in my comments, is ongoing and active, and making good progress, and we've seen some really good candidates.

Leszek Sulewski: Frankly, if anything, this has increased the interest because of the growth potential when we bring joint A into the portfolio. So we remain very focused on finding top tier candidate, and this has not changed the strategy at all.

Michael Heffernan: Scott, do you want to take the first question? Yes, sure, Mike.

Scott Dreyer: Thanks to the question, Lesza. And in terms of balance, it's very simple. We will maintain 100 percent of our paying sales force, marketing teams, the core commercial people focused on pain, and then we will integrate a fully commercialized joint A team in that sales force, and there will be no overlap. Each will be focused on what they're responsible for, the pain group, with continuing to maximize the value of that full portfolio of pain products, and the joint APM team continuing to focus on the growth trajectory that's been started for joint A. So that's our approach is really just keeping complete separation in our commercial offers.

Leszek Sulewski: Great.

Operator: Thank you.

Operator: Again, as a reminder, if anyone has any questions, pressing star one, we'll join you into the question and execute to ask the question.

Michael Heffernan: And it looks like we have reached the end of the question and answer session, and I'll turn the call back over to Mike for close remarks. Thank you. Everyone for joining the call today. Have a great evening.

Operator: And this concludes today's conference. You made us connect your lives at this time. Thank you for your participation. Thank you.