Q4 2024 Collegium Pharmaceutical Inc Earnings Call
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Speaker Change: Greetings and welcome to the Collegium Pharmaceutical's fourth quarter and fall year 2024 earnings conference call.
Speaker Change: At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference call, please press star and then zero on your telephone keypad. Please note that this conference call is being recorded.
Speaker Change: I'm now going to call over to Danielle Jassy, the Director of Investor Relations at Collegium. Thank you and you may begin.
Thank you for joining us. Thank you.
Speaker Change: Welcome to Collegium Pharmaceuticals fourth quarter and full year 2024 earnings conference call.
Speaker Change: I am joined today by Vikram Karnani, our President and Chief Executive Officer, Colleen Tupper, our Chief Financial Officer, and Scott Dreyer, our Chief Commercial Officer.
Speaker Change: You are cautioned 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.
Speaker Change: That we may incur significant expense in doing so, and that we may not prevail in current or future litigation pertaining to our business.
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.
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 collegiumpharma.com.
Speaker Change: I will now turn the call over to our President and CEO, Vikram Karnani.
Speaker Change: Thank you, Danielle. Good afternoon, and thank you everyone for joining the call. Today, we will discuss Collegium's financial performance for the fourth quarter and full year 2024 and provide a business update.
Speaker Change: Let me start by saying how thankful I am for the opportunity to join Collegium at this exciting time in the company's journey.
Speaker Change: Having spent the last several years leading high growth organizations, I'm energized at the opportunity to spearhead this team through its next phase of growth.
Speaker Change: Collegium has a successful track record of creating value through strong commercial execution and strategic acquisitions, all while maintaining financial discipline.
Speaker Change: The organization's commitment to improving the lives of people living with serious medical conditions and its strong culture are what attracted me to this role.
Speaker Change: The company has built a leading pain portfolio that generates strong cash flows, which enables investment in future growth. And the Ironshore acquisition demonstrates that Collegium is well positioned to make further investments that leverage our expertise and will drive a new phase of growth for the company.
Speaker Change: With Journey poised to be Collegium's lead growth driver, the company is at an inflection in its growth trajectory.
Speaker Change: We have strong leadership and a deeply committed team of employees and I am looking forward to collaborating with this accomplished team, working together toward our goal of building a leading diversified biopharmaceutical company.
Speaker Change: At Collegium, we strive to do good as we do well, and our values are highlighted in our 2024 ESG report that was published yesterday.
Speaker Change: I'd like to recognize the entire team for our commitment to Collegium's mission and for helping make a positive impact on the people and the communities we serve.
and more. Thank you. Thank you. Thank you.
and
2024 was a transformational year for Collegium.
Speaker Change: We generated significant growth in our pain portfolio through strong operational execution.
Speaker Change: The robust, durable cash flows generated by our pain business enabled us to acquire Ironshore Therapeutics and its lead medicine, Jornet PM, establishing a new presence in neuropsychiatry.
Speaker Change: Journey's growth accelerated during our first full quarter of ownership. In the fourth quarter, we grew prescriptions 29% year-over-year and 11% quarter-over-quarter.
Speaker Change: Journey net revenue on a pro forma basis was $100.7 million in 2024 and is expected to be in excess of $135 million in 2025, representing over 34% growth.
Speaker Change: Our pain portfolio generated 5% revenue growth in 2024, led by record revenues for both Belbuca and Examsa ER.
Speaker Change: We achieved our financial guidance for the year, growing total revenue 11% while adjusted EBITDA grew 9% year over year.
We opportunistically repurchased $60 million worth of shares in 2024.
Speaker Change: We strengthened the durability of the Nucynta franchise with several positive developments that extended projected exclusivity for Nucynta ER to July 2027.
Speaker Change: reinforcing this franchise as a robust revenue contributor this year and beyond.
We appointed Nancy Lerker to our Board of Directors.
Speaker Change: Nancy's expertise in driving commercial growth and strategic acquisitions will be of great value to us as we work to advance our mission. We warmly welcome Nancy to the board.
Speaker Change: And finally, I'm excited to welcome our new Head of Investor Relations, Ian Karp, to the Collegium team. Ian has a strong, has a long history of leading investor relations for a number of leading biopharmaceutical companies, and we are thrilled that he has joined us for our next chapter of growth.
Speaker Change: As we look to 2025 and beyond, we will build on the momentum we generated across our commercial portfolio in 2024 and focus on three main priorities.
Speaker Change: The first is to drive significant growth in Journey to maximize its potential as an important therapy for the ADHD community.
Speaker Change: Journey is a highly differentiated medicine for the treatment of ADHD and has potential for significant growth with the right investments.
Speaker Change: We've identified opportunities to raise awareness of Journey with healthcare professionals, patients, and caregivers, and will make targeted investments to unlock its full potential. We expect our investments to support growth in the near term, with the majority of the impact coming in 2026 and beyond.
Speaker Change: Our second priority is to maximize the pain portfolio. These medicines generate significant durable cash flows and we believe have a longer and more robust revenue stream that remains underappreciated.
Speaker Change: Our third priority, and frankly, when I'm spending a significant portion of my time, is to strategically deploy capital to create shareholder value. We are focused on expanding and diversifying our portfolio through business development, as we did most recently with the ISO acquisition.
Speaker Change: We will continue to opportunistically leverage the share repurchase program and rapidly pay down debt.
Speaker Change: Our track record of disciplined capital deployment has put us in a position of financial strength relative to our peers, and we will continue to use these levers to create shareholder value.
Speaker Change: With that, I will now turn it over to Scott to give a commercial update.
Thank you for joining us. Thank you.
Scott Dreyer: Thanks Vikram and good afternoon everyone. I'm excited to share our fourth quarter commercial results with you, highlighting the momentum we created heading into 2025. I'll begin with Journey, our lead growth driver.
Scott Dreyer: The ADHD market is large and has been growing at 6% on average from 2019 to 2024.
Scott Dreyer: Stimulant medications, methylphenidates and amphetamines, make up almost 90% of the market. Within stimulants, 30% of use is methylphenidate products, and the use of methylphenidate is skewed towards the pediatric population. With 70% of prescriptions for pediatrics in adolescents,
and 30% for adults.
Scott Dreyer: Prescribing is highly concentrated with approximately 20,000 HCPs writing one third of prescriptions. The majority of the prescribers are neuropsychiatrists or pediatricians.
Scott Dreyer: As HCPs choose a medication for their ADHD patients, they're looking for a medication that provides efficacy upon awakening in the morning and a long-lasting duration of effect that can provide symptom control throughout the day.
Scott Dreyer: Journey has a profile that has the potential to meet that need.
Scott Dreyer: Journey is highly differentiated as the only stimulant ADHD medication with convenient evening dosing.
Scott Dreyer: Journey provides symptom control upon awakening in the morning and throughout the day, limiting the need for short-acting stimulant add-ons. It has flexible dose-dependent duration, enabling treatment to be tailored to the patient's needs.
Scott Dreyer: This is important for pediatric, adolescent, and adult patients because it eliminates the need to dose throughout the day at school or at work.
Scott Dreyer: Journey is the highest rated brand by targeted healthcare professionals in terms of product favorability. And when patients and caregivers request to try Journey, HCPs honor that request.
Scott Dreyer: In addition, Journey has strong market access coverage. Approximately 65% of the business is commercial and 35% is Medicaid, with Journey having 80% coverage across the entire book of business.
Scott Dreyer: Since we acquired Journey, we generated momentum and accelerated growth, even before making key targeted investments in the brand. This strong performance speaks to Journey's potential and supports its position as our lead growth driver.
Scott Dreyer: During the fourth quarter, our first full quarter owning Journey, prescriptions were up 29% year-over-year and 11% quarter-over-quarter.
For the full year 2024, Journey prescriptions grew to 636,200.
Scott Dreyer: up 31% compared to 2023. In addition, Jordan has a broad and growing prescriber base with 24,300 prescribers in the fourth quarter, up 26% since the fourth quarter of 2023.
Scott Dreyer: In early 2025, we're encouraged to see this momentum continue, despite the typical first-quarter dynamics where deductibles reset and out-of-pocket costs increase for patients.
Scott Dreyer: Journey achieved an all-time high for weekly prescriptions in the middle of January and it's performing in line with our expectations to start the year.
Scott Dreyer: With strong brand fundamentals and clinical differentiation, we see significant opportunity for Journey. And we're committed to investing in the brand to maximize its growth.
Scott Dreyer: We've identified two main areas to make targeted investments to impact urinary growth in 2025 and further accelerate growth in 2026 and beyond.
The first is increasing awareness and adoption with healthcare professionals.
Scott Dreyer: To do this, we're expanding the sales force to ensure it is optimally sized to reach our target audience.
Scott Dreyer: We're expanding the sales force from approximately 125 to 180 sales representatives. We're making great progress with this work, and we expect to have the expanded sales force hired, trained, and calling on HCPs in April.
Scott Dreyer: To complement and amplify the efforts of the sales force, we'll also invest in non-personal promotion to increase awareness and the use of Journey among prescribers.
Scott Dreyer: The second area of focus is raising awareness of Journey's unique and differentiated profile among patients and caregivers.
Scott Dreyer: Market research shows that patients and caregivers requests are a top influencer of HCP trial and patients and caregivers have limited knowledge of JORNE and its differentiated profile.
Scott Dreyer: Therefore, we'll invest in digital marketing and social media strategies and tactics designed to raise awareness among patients and caregivers and to motivate them to ask their health care provider about TruRene.
Scott Dreyer: While we expect to benefit from these investments toward the end of 2025, the majority of the impact will be in 2026 and beyond. These investments and their expected impact are included in our 2025 financial guidance.
Scott Dreyer: Turning to our pain portfolio, at Collegium we take pride in being the leader in responsible pain management with a unique and differentiated portfolio of medicines for the treatment of pain. Belbuca, Extamsa ER and Nusynthi ER collectively represent over half of the branded ER market.
Scott Dreyer: demonstrating the ongoing strength and reach of our portfolio. Our commercial organization will continue to capitalize on the momentum we generated for our pain portfolio in 2024.
Scott Dreyer: Bell Buca delivered another strong quarter with total prescriptions up 5.6% year-over-year, marking the sixth straight quarter of year-over-year prescription growth and driving record quarterly revenue.
Scott Dreyer: In addition, we saw acceleration in prescriptions at the end of the year, with 6.3% year-over-year growth in the month of December.
Scott Dreyer: We're encouraged by this consistent growth trend, which speaks to the impact that our strong commercial execution is having on the brand and Bell Buick's differentiated profile.
Scott Dreyer: We expect pressure on prescriptions in the first quarter due to a formulary change that occurred starting on January 1st, as well as the typical first quarter dynamics driven by patient deductible resets. That said, we expect full year prescription growth, as well as positive net revenue impact from the formulary change.
Scott Dreyer: At SAMHSA, ER prescriptions grew 2.6% in the fourth quarter compared to the third quarter of 2024. And we saw acceleration of average weekly prescriptions in the month of December.
Scott Dreyer: We're encouraged that we were able to generate momentum heading into 2025.
We achieved full-year gross to net of 52.7%.
Scott Dreyer: which reflects the successful execution of our payer strategy and drove record revenue for EXTAMSA in the fourth quarter and for the full year.
Scott Dreyer: We expect pressure on prescriptions in the first quarter due to a formulary change that occurred starting on January 1st, as well as the typical first quarter dynamics driven by patient deductible resets.
Scott Dreyer: We're focused on educating positions on Extensa ER's differentiated label and capitalizing on its strong market access position.
Scott Dreyer: Our aspiration is to increase utilization for appropriate patients due to eXtamsa ER's superior abuse deterrent properties and labeling.
Scott Dreyer: The Nucinta franchise is a key contributor to our paying portfolio with a robust revenue stream.
Scott Dreyer: The positive developments for the franchise, including the new patient population exclusivity extension.
six-month pediatric exclusivity extension.
Scott Dreyer: and recent Grunenthal settlement with Teba extended exclusivity of NUSINTA one and a half years from June of 25 to January of 27 and NUSINTA-ER two years from June of 25 to July of 27.
Scott Dreyer: This, coupled with the authorized generic agreement with HCMA, enables us to continue to maximize and enhance the durability of the new SINTA franchise in 2025 and beyond.
Scott Dreyer: In closing, I'm proud of the commercial accomplishments in 2024, which included integrating and accelerating growth for Journey, delivering strong performance in our pain portfolio, and generating momentum for all of our growth drivers in the fourth quarter.
Scott Dreyer: I'll now hand the call over to Colleen to discuss financial highlights.
Thanks, Scott. Good afternoon, everyone.
Colleen Tupper: In 2024, through our dedication to operational excellence, we generated strong financial results and delivered on our 2024 guidance. We grew revenue by 11% and adjusted EBITDA by 9%.
generated robust operating cash flows and strategically deployed capital.
Colleen Tupper: Successful execution of our 2024 financial and strategic priorities establish a strong foundation for 2025 financial guidance that reflects significant top and bottom line growth.
Colleen Tupper: As we head into the year, we plan to further strengthen our financial position and create value through disciplined capital deployment.
Colleen Tupper: Financial highlights for the fourth quarter and full year include net product revenues were a record 181.9 million for the fourth quarter up 22% year-over-year
Colleen Tupper: Jornet Net Revenue was $29.3 million in the fourth quarter, which represents our first full quarter of ownership.
Colleen Tupper: Pro Forma full year net revenue was $100.7 million, inclusive of $37.2 million recognized by Collegium.
Colleen Tupper: Belbuca Net Revenue was a record $55.2 million in the fourth quarter, up 12% year over year, and a record $211.3 million in 2024, up 16% year over year.
Colleen Tupper: EXTAMSA ER Net Revenue was a record $51.5 million in the quarter, up 6% year-over-year. For 2024, EXTAMSA ER Net Revenue was a record $191.3 million, up 8% year-over-year.
Colleen Tupper: Full year gross to net was 52.7 percent, coming in better than our expectation of approximately 55 percent.
Colleen Tupper: Nucent to Franchise Net Revenue was $41.8 million in the fourth quarter, down 11% year over year, and $176.5 million in 2024, down 7% year over year.
Colleen Tupper: Gap operating expenses were $60.2 million in the fourth quarter, up 83% year-over-year. For 2024, gap operating expenses were $207.4 million, up 30% year-over-year.
Colleen Tupper: Non-GAAP adjusted operating expenses were $51.1 million in the quarter, up 97% year over year. For 2024 adjusted operating expenses were $150.6 million, up 22% year over year.
Colleen Tupper: As a reminder, adjusted operating expenses increased in 2024 due to the additional operational costs associated with having Journey in our portfolio.
Colleen Tupper: Gap net income for the fourth quarter was $12.5 million compared to $31.9 million in the fourth quarter of 2023.
Colleen Tupper: For 2024, net income was $69.2 million compared to $48.2 million in 2023.
Colleen Tupper: Non-GAAP Adjusted EBITDA was a record $107.7 million for the fourth quarter, up 3% year over year, and a record $401.2 million for 2024, up 9% year over year.
Colleen Tupper: Gap earnings per share were $0.39 basic and $0.36 diluted in the fourth quarter, compared to gap earnings per share of $0.99 basic and $0.82 diluted in the prior year period.
Colleen Tupper: Gap earnings per share was $2.14 basic and $1.86 diluted in 2024 versus gap earnings per share of $1.43 basic and $1.29 diluted in 2023.
Colleen Tupper: Non-GAAP-adjusted earnings per share was $1.77 in the fourth quarter versus $1.58 in the fourth quarter of 2023.
Colleen Tupper: For 2024, non-GAAP-adjusted earnings per share was $6.45 versus $5.47 in the prior year.
Colleen Tupper: Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results.
Colleen Tupper: As of December 31, we had $162.8 million in cash, cash equivalents, and marketable securities.
Colleen Tupper: During 2024, $200 million of cash on hand funded our acquisition of Ironshore Therapeutics and we deployed $60 million for share repurchases as part of our share repurchase program.
We reaffirm our 2025 guidance, which was issued in January.
Colleen Tupper: For the year, we expect net product revenues in the range of $735 to $750 million.
Colleen Tupper: This growth is forecasted to be primarily driven by Journey, where we expect net product revenues in excess of $135 million, supported by continued durable performance from our pain portfolio.
Colleen Tupper: As is typical within our space, we expect a modest quarter over quarter decline in revenue in the first quarter due to typical dynamics where deductibles reset and out-of-pocket costs increase for patients.
Colleen Tupper: We expect adjusted EBITDA in the range of $435 to $450 million and adjusted operating expenses in the range of $220 to $230 million.
Colleen Tupper: As Scott previously mentioned, the increase in adjusted operating expenses reflects targeted investments to support Journey near-term growth and drive significant momentum in 2026 and beyond.
Colleen Tupper: With these investments, we are still expecting over 10% adjusted EBITDA growth this year, with improvement in the adjusted EBITDA margin beginning in 2026.
Colleen Tupper: This is a testament to our financial strength and the strong financial foundation that our pain business provides. Our spend is expected to be front-loaded into the first half of the year as we roll out these commercial initiatives in early 2025.
Colleen Tupper: We remain committed to strategically deploying capital to create value for our shareholders. We plan to invest in journey to drive growth, expand our portfolio through business development, while opportunistically leveraging our share repurchase program and rapidly paying down our debt.
Colleen Tupper: In 2024, we repurchased $60 million in shares, including $25 million repurchased in the fourth quarter of 2024, and $35 million through an accelerated share repurchase program in May 2024.
I will now turn the call back to Vikram.
Thanks, Colleen.
Colleen Tupper: As I mentioned earlier in my remarks, this is an exciting time for our team at Collegium and for the patient communities we serve.
Colleen Tupper: The achievement of our financial commitments and the execution of our strategic priorities in 2024 have positioned us for a new phase of growth in 2025 and beyond.
Colleen Tupper: Looking ahead, we are focused on accelerating growth for Journey, maximizing our pain portfolio, and strategically deploying capital to create value.
Speaker Change: Before we open up the call for questions, I wanted to take a moment to thank the entire team at Collegium for their passion and dedication to helping make a difference in the lives of the patients we serve.
Colleen Tupper: With that, I will now open the call up for questions. Operator?
Speaker Change: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star and then 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then 2 if you would like to remove the question from the queue.
Speaker Change: For all analysts wanting to ask questions, if you could please limit your questions to only two questions per analyst.
Speaker Change: For participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star keys. One moment please while we poll for questions.
Speaker Change: The first question comes from Liz Uleski from Tourist Security. You may proceed with your question, Liz.
Liz Uleski: Good afternoon, thank you for taking my questions, and great to have you on the first call, VCRM. Perhaps I'll start there.
Speaker Change: Could you perhaps lay out any sort of path that you envision for a collegium over the next three to five years?
and then perhaps maybe update us on the BD opportunities.
Speaker Change: And then for Colleen, perhaps, could you quantify any synergies that you have been
Speaker Change: that you've had realized from the integration of Ironshore. And then lastly for the team, in regards to No Pain Act, are there any dynamic shifts to the pain treatment category that you'd expect or is this de minimis to your portfolio? Thank you.
Speaker Change: Yeah, maybe I'll pick it up. Thank you for the question.
Look, let me first start out by saying.
Speaker Change: that in the last, call it a little over three and a half months that I've been
at Collegium.
A lot of what I
Speaker Change: came in with has been validated. This is a strong team with strong commercial execution, with the pain portfolio performing exceptionally well, as well as Journey, which is a key part of our portfolio going forward. These performances
Speaker Change: lay a very strong financial foundation for us to continue to grow from.
Speaker Change: As we have said previously, our strategy for long-term growth is a function of both organic growth as well as inorganic growth.
Speaker Change: Organic growth, as we talked about earlier, we have done it with our main portfolio before, and now we're doing it with Journey.
Speaker Change: In terms of business development and inorganic growth, look, our primary focus is on assets, potential assets that can add meaningful revenue in the near term.
Speaker Change: In terms of the therapeutic area that we're looking at, there are logical adjacencies to our newly acquired ADHD asset that are our top priority. If you look at ADHD, neuropsychiatry, or even broader CNS, these are areas that we're quite interested in.
Speaker Change: Additionally, some of the other areas we're looking at outside of just pure neuro or neuropsych, we're interested in areas that are capital efficient. For example, rare or orphan diseases.
Speaker Change: And then finally, look, we're not against looking beyond into other newer therapeutic areas as well. Although as you go out further into other areas,
Speaker Change: The bar is certainly higher. We absolutely would look to make sure that there are strategic, as well as financial, from both a strategic and financial perspective, that we're able to, it has to make sense for us.
But I'd say let me also
maybe end with the fact that
Speaker Change: Given our performance, given where we ended last year at 1.9 times net debt over EBITDA, given the anticipated performance this year, where we expect to be less than one times net debt over EBITDA, we're in a pretty strong financial position. And so we're actively looking to expand our portfolio, but at the same time, we have to make sure that we will execute both
Speaker Change: organically with the products we do have as well as look to do the next deal. Maybe I'll now turn it over to Colleen.
Colleen Tupper: Thanks, Les, for the question on synergies. Recall, you know, the acquisition of Iron Shore and Jornet as a product specifically was really about putting, staking a flag in a new therapeutic area for us. So we achieved the typical synergies you would expect in that situation on, you know, senior management overlap facilities, GNA-type synergies. They were not a meaningful consideration as part of the deal. Really, for us, it was the opportunity to invest strategically behind Jornet and drive that growth.
Thank you. Thank you.
And I'll take the no pay and act last.
Speaker Change: Scott. So on your question on the No Pain Act, yeah, it's had no impact on our portfolio, positively or negatively. And that's because the primary focus of that act is providing additional reimbursement in the inpatient setting. That's where the focus is. And obviously, our products are retail-based chronic pain therapy. So no impact on us at this time.
Great, thank you guys and congrats on the progress.
Thank you.
Thank you.
Speaker Change: Thank you. The next question comes from David Ansonen from Piper Center. Please proceed with your questions, David.
Speaker Change: Yeah, thanks. So, with the Salesforce expansion, sorry if I missed this, but just remind me, what portion of...
David Ansonen: ADHD prescribers, or what portion of volumes does the expanded sales force encompass?
Speaker Change: And then secondly, related to the sales organization, you know, we've seen ADHD-focused sales forces even larger, much larger than even the 180 that you're contemplating. So I guess the question is over the long term, how are you thinking about...
Speaker Change: the need for further expansion. And then I had a question on, long-term, on how you're thinking about the generic entry of bilbuka and nucenta, just given that these are opioids and obviously there's
Speaker Change: a lot of baggage associated with generic companies and their role in opioids with the litigation. So how are you planning for...
Speaker Change: loss of accessibility for both products, looking ahead to 27. Thanks.
Yeah, David, thanks. Thanks for the questions.
Speaker Change: Look, so maybe I'll kick it off, and then I'm going to invite Scott to give some color on the Salesforce expansion, both in terms of what type of coverage universe we have, as well as the size of the Salesforce, and then I'm going to call on Colleen to give us some color on the LOE question related to the paint products.
Speaker Change: So look, first of all, we're highly encouraged with our performance to date.
Speaker Change: with Journey PM, with the size of the sales force we do have, which was, as a reminder, 125 sales representatives that came over as part of the iOnshore acquisition.
Speaker Change: And the performance that we just talked about in Q4 has basically been delivered by that team. And we're really thrilled with the performance and we're really happy with the progress to date.
Speaker Change: As we look into the future, we've also talked about the fact that we're going to expand the sales force by an additional 55, and that brings the total sales force to about 180. Maybe I'll ask Scott to give some color on
Scott Dreyer: how that changes our coverage universe for HCBs and what that means for the business. Yeah, great. So, great questions, David. So, first and foremost,
Scott Dreyer: These categories, it's interesting, ADHD, there's some analogs to pain, meaning they're large tails, right? If you look at ADHD prescribing in the United States, there's over 300,000 physicians that write a prescription.
That said, 20,000 tried a third of overall prescribing.
Speaker Change: So it's a highly efficient way to go to the market. So when we expand to 180, we will end up covering 60% of the long acting market, which is what drives the overall market. That puts us at about 23,000 targets, which is exactly where we need to drive forward. You talked about future sizing. Look, every year we will look from a hygiene standpoint at coverage. But what I can tell you is
Speaker Change: There's no need, if you look at competitive sets with other sales forces out there, we don't anticipate significant growth, but we'll always look to make sure we're deploying to cover the doctors in an efficient way, and that's what we're focused on.
Speaker Change: And then David, I'll take the LOE question. And looking across our entire portfolio, there is no party that has the necessary combination of ingredients, regulatory clearance, legal clearance, and manufacturing capability to launch competitive generics against any product throughout our pain portfolio.
Speaker Change: Specifically, with respect to the new SINTA franchise, there was no party that has the combination of the three necessary ingredients for a near-term competitive generic launch, regulatory approval, clear litigation, contractual hurdles, or access to commercial-scale quantities of Tepentadol.
Speaker Change: the API and Nucynta formulations. The LOE dates in our Nucynta franchise are now, due to some extensions, we've been able to accomplish July 2027 for Nucynta ER and January 2027 for Nucynta IR.
Speaker Change: The above comments are equally true for Belbuca and Extamsa ER. So as we...
Speaker Change: proceed into the time frame where there could be generic entrance, what you'll see us do, particularly on Bell Buca and that January 2027 date, is invest through that date, and then we will reassess if, in fact, a player comes in. At that point, there would only be a single player.
Speaker Change: And this is exactly why we've also reinforced that we believe we have a longer and more robust revenue stream that remains underappreciated with this business.
That's a helpful caller. Thanks, everyone.
Thanks, David.
Speaker Change: Thank you. Ladies and gentlemen, just a reminder, if you'd like to ask a question, please press star and then 1. If you'd like to ask a question, please press star and then 1. We will pause to see if we have any further questions before we call to you.
Speaker Change: There are no further questions which therefore means that we have reached the end of the question and answer session and I'd now like to turn the call back to Vikram Karnani for closing remarks. Thank you, sir.
Speaker Change: Great. Thank you, everyone, for joining the call. Have a wonderful evening, and good night.
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