Collegium Pharmaceutical (NASDAQ:COLL) Q3 2024 Earnings Call

0:00 Greetings and welcome to the Collegium Pharmaceutical third quarter 2024 earnings conference call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during this conference call, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now turn the call over to Danielle Jesse, Director of Investor Relations at Collegium. Please go ahead.

0:31 Welcome to Collegium Pharmaceutical's third quarter 2024 earnings conference call. I am 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. 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 realize the anticipated benefits and synergies of the recently completed acquisition of Ironshore, the risk that the businesses will not be integrated successfully, and risks related to future opportunities and plans for Ironshore.

1:42 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-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.

2:17 Thank you, Danielle. Good afternoon, and thank you, everyone, for joining the call. Today, we will discuss Collegium's record financial performance during the third quarter, and provide an update on our business, including the very exciting news that we have successfully completed our CEO search. At Collegium, we're focused on building a leading diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. This quarter, we completed the acquisition of Orange Shore Therapeutics and its commercial product during APM, and we're excited to welcome the employees of Orange Shore to our team. as we embark on our journey of improving the lives of patients in the ADHD community. We strive to do good as we do well, and I'd like to recognize the Collegium team for their commitment to our mission and continued dedication to making a positive impact on the communities we serve by driving equitable access to STEM education and advancing the next generation of life science leaders.

3:16 Our third quarter and year-to-date results reflect Collegium's strong operational execution We are on track to deliver on our 2024 financial commitments as updated following the closing of our acquisition of IronShore. We've made significant progress in successfully integrating IronShore and we continue to generate robust operating cash flows and drive significant top and bottom line growth, including growing total revenue 17% with 11% growth in our paying portfolio revenue and adjusted EBITDA growth of 18% on a year-over-year basis in the third quarter. The financial strength of our pain business enabled our acquisition of IronShore and its commercial product, JoinAPM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder, or ADHD, in people six years of age and older. JoinAPM is a highly differentiated commercial asset that diversifies our product portfolio beyond pain and has significant revenue and growth potential and Exclusivity into the 2030s. Jordan APM 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 leading growth driver for Collegium.

4:37 Since closing the IronShare acquisition in early September and for the balance of the year, we are focused on integrating the IronShare business while maximizing the paying portfolio and developing the path to maximize growth of Jornet. We will also continue our business development efforts to identify assets that allow us to build our expertise in a new therapeutic area beyond pain. As we look to close out a strong year, we are confident that we will deliver on our financial commitments and strategic objectives, enabling strong top and bottom line growth in 2025 and beyond. After an extensive search process, we are very excited to welcome Vickram Karnani as our new CEO, Chief Executive Officer, and member of our board, effective on November 12th. The Board of Collegium is convinced he is the right leader with the right skills and the expertise and experience to lead Collegium to its next phase of growth. Vikram is a proven leader with more than 15 years of experience in the borrow farm industry, including holding various leadership positions across commercial, medical affairs, and business development. Most recently, After the acquisition of Horizon by Amgen, he led Amgen's rare disease business as Executive Vice President and President of Global Commercial Operations and Medical Affairs.

5:58 Prior to that, he held numerous leadership positions at Horizon Therapeutics through its rapid growth phase spanning many aspects of the business, including leading growth strategy and establishing and expanding Horizon's presence in international markets. He demonstrated success in building organizations, and maximizing their potential through both organic growth and business development. This makes him the right fit to lead Collegium. With Vikram as our CEO, we are well positioned for continued success in 2025 and beyond. In the third quarter of 2024, we announced and closed the IronShare acquisition, which is expected to deliver on all our strategic objectives related to business development.

6:43 In addition, we also drove strong revenue growth in our pain portfolio. Recent key accomplishments and highlights include since the acquisition closed in September, we've seen accelerated growth in Jornet PM prescriptions during the back to school season. Through the first three quarters of 2024, Jornet prescriptions are up 31.2% year over year. We delivered another strong quarter for Belbuca. Marked by record revenue of $53.2 million, up 17% year-over-year, and strong prescription growth of 3.5% year-over-year and 2.6% quarter-over-quarter. We generated record Xtamsa ER revenue of $49.5 million, up 24% year-over-year.

7:31 We achieved new payer wins for Belbuca and Xtamsa ER, which are expected to support revenue growth in 2025. We continued our history of leadership at Pain Week through the presentation of eight posters highlighting the clinical and population health impact of our differentiated pain portfolio. And we established our presence at key ADHD congresses, including a presentation on Join APM, the American Academy of Child and Adolescent Psychiatry 2024 Annual Meeting, and the Canadian ADHD Resource Alliance 2024 Conference. I will now turn it over to Scott to give a commercial update.

8:11 Thanks, Mike. We're pleased to have completed our recent acquisition of IronShore and are focused on integrating Jordan APM into our portfolio of commercial assets. Jordan APM expands our commercial presence into the large and growing ADHD market and is poised to become our lead growth driver. Jordan APM is highly differentiated as the only stimulant ADHD medication with convenient evening dosing. Jordan APM 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. This is important for pediatric, adolescent, and adult patients because it eliminates the need to dose at school or at work.

8:56 The ADHD market has grown 5% on average over the past four years. and since 2022, Jordan APM has delivered significant double digit prescription growth. In 2023, total prescriptions for Jordan APM grew 58% compared to 2022 to approximately 490,000. And through the first three quarters of 2024, Jordan APM prescriptions grew 31.2% year over year. In addition, Jordan APM has a broad and growing prescriber base with 22,600 prescribers in the third quarter up 25% since the third quarter of 2023. Jordan APM delivered strong prescription growth in the third quarter, up over 30% year over year, and we are seeing an acceleration during the back-to-school season.

9:46 Our commercial team successfully navigated through the acquisition transition and took the necessary actions to maximize the opportunity during the back-to-school season. This is a critical time in the ADHD market when demand typically increases, and therapy switching occurs because patients currently being treated for ADHD often need a new option to control their symptoms. Leveraging the opportunity during the back to school season, average weekly prescriptions in October were 13,500 compared to 11,400 in July, an increase of 18%. This is an encouraging growth trajectory and we're focused on continuing this momentum as we work to maximize the potential of joint APM.

10:31 Prescription performance is in line with our expectations, and the brand's on track to generate net revenue in excess of $100 million in 2024. With strong brand fundamentals and clinical differentiation, we see significant opportunity for Jordan APM. We continue to believe it is poised to become Colladium's lead growth driver, complementing our leadership position in responsible pain management. And we're committed to investing in Jordan APM to maximize the potential of this differentiated asset. Areas of focus include ensuring that the ADHD sales force is adequately sized to effectively reach our targeted HCPs and raising awareness of Jordan APM's unique and differentiated profile among caregivers and patients to motivate them to ask their HCP about Jordan APM.

11:20 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, Xtamsa ER, and Nucinta ER collectively command over half of the branded ER market, demonstrating the ongoing strength and reach of our portfolio. The financial strength of Collegium has been fueled by the success of our pain portfolio, and our commercial organization will continue to drive momentum and prioritize maximizing our pain products. Belbuca delivered another strong quarter, with total prescriptions up 3.5% year over year. Marking the fifth straight quarter of year-over-year prescription growth and driving record quarterly revenue. In addition, we've seen an acceleration in weekly prescriptions over the last few months. 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 Buca's differentiated product profile.

12:20 Xtamsa ER prescriptions were stable in the third quarter, in line with our expectations, and Xtamsa ER's share of the OxyContin extended release market achieved an all-time high of 38.1%. Average weekly prescriptions for Xtamsa ER in September and October were up 1% compared to the average weekly in July and August, showing some momentum as we enter the fourth quarter. We expect revenue growth for the full year to be driven by improved gross to net, which has fueled the record net revenue in the third quarter. We're committed to educating physicians on Xtamsa ER's differentiated label and capitalizing on Xtamsa ER's strong access position in commercial and part D. Our aspiration is to replace OxyContin utilization for appropriate patients due to Xtamsa's superior abuse deterrent properties and labeling.

13:11 The NuCinta franchise is a key contributor to our portfolio. The positive developments for the franchise, including the authorized generic agreement with HICMA, and the six-month pediatric exclusivity extension, along with the execution of our market access strategy, enable us to continue to manage the new Cinta franchise contribution in 2025 and beyond. We're committed to growing pain franchise revenue in 2025 and beyond through a combination of driving demand for our highly differentiated products and enhancing the profitability of each brand. In support of that goal, our contracting strategy is clear. achieved broad coverage for our products while delivering on our commitment to enhance profitability of our brands by managing gross to nets.

13:59 We're pleased to share that Belbuca and Expansa ER were both added to formulary for a large integrated health system that represents approximately 8 million commercial lives and 2 million Part D lives. We expect revenue growth from this expansion of coverage. However, because this system purchases directly and does not report prescriptions, We won't see the corresponding prescription volume in IQVIA data. In addition, and consistent with our focus on enhanced profitability, one Medicare Part D plan representing 8 million covered lives will be removing both Xtamsa ER and Belbuco from formulary effective January 1st. Xtamsa ER will be a parity with OxyContin within this plan as both products are off formulary.

14:44 As a result of this change, we will pay zero rebates for Belbuco and Xtamsa within this plan. These formulary removals will pressure prescriptions for both Xtamps and Bobuca in 2025, but are expected to be net revenue positive for both brands as the prescription decline is offset by profitability improvement. In closing, I want to thank the commercial team at Collegium for the strong execution and performance they've delivered for both our pain and ADHD businesses. As we finish the year, we're focused on driving momentum in our point pain portfolio and maximizing the potential of joint APMs. We believe we're well positioned for meaningful growth in 2025 and beyond. I'll now hand the call over to Colleen for a discussion of the financials.

15:29 Thanks, Scott. Good afternoon, everyone. Our third quarter performance reflects strong revenue growth, impactful business development, significant bottom line expansion, and robust operating cash flows. Financial highlights for the third quarter include Total net product revenues were a record $159.3 million in the third quarter, up 17% year-over-year. In line with our expectations for the third quarter, journey revenues were $8 million, which reflect less than one month of commercial sales and the effect of legacy ordering patterns during the ownership transition. The Payne portfolio delivered strong performance with record revenue of $151.3 million, up 11% year-over-year.

16:17 Delbuca net revenue was a record $53.2 million, up 17% year-over-year. Xamsa ER net revenue was a record $49.5 million, up 24% year-over-year, and Xamsa ER gross to net was 50.8% in the third quarter. The third quarter did benefit from a one-time favorable managed care rebate adjustment resulting from a formulary review. With this benefit factored in, we now expect full-year Xtansa ER gross to net to be approximately 55% in 2024, which is the low end of the range we previously communicated. NuCinta franchise net revenue was $45.1 million, down 5% year-over-year.

17:03 Gap operating expenses were $62 million, up 76% year-over-year. This quarter included $19.9 million in acquisition-related expenses associated with the Iron Shore acquisition. Adjusted operating expenses, which exclude stock-based compensation and acquisition-related expenses, were $34.8 million, up 23% year-over-year. Gap net income for the third quarter was $9.3 million, down 55% year-over-year. Non-gap adjusted EBITDA was a record $105.1 million, up 18% year-over-year. Gap earnings per share was $0.29 basic and $0.27 diluted in the third quarter compared to gap earnings per share of $0.61 basic and $0.53 diluted in the prior year period.

17:58 Non-gap adjusted earnings per share was $1.61 in the third quarter, up 20% year-over-year. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. As of September 30, 2024, we had $120 million in cash, cash equivalents, and marketable securities. We generated another quarter of strong operating cash flows, enabling us to execute our capital deployment strategy and complete the acquisition of IronShore, which utilized approximately $200 million of cash on hand. We are reaffirming our 2024 financial guidance, which we updated following the close of the Iron Shore acquisition. We expect net product revenues in the range of $620 to $635 million.

18:48 Belbuco revenue growth is primarily fueled by full-year prescription growth, while revenue growth for Xtensa ER is driven by growth to net improvement. 2024 full-year pro forma Jornet PM net revenue is expected to be in excess of $100 million. For the new Cinta 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 Cinta franchise year-over-year revenues in 2024 with a return to relative year-over-year stability in 2025. We expect adjusting operating expenses in the range of $150 to $155 million and adjusted EBITDA in the range of $395 to $405 million.

19:34 With our strong financial performance thus far, we are well positioned to deliver on our financial commitments for 2024. We remain focused on our capital deployment strategy to create long-term value for our shareholders by executing on business development through the integration of Journ APM, paying down debt and opportunistically repurchasing shares. We have a proven track record of successful business development, including the acquisitions of the Nucinta franchise and Bell Buca, and we will leverage this expertise to efficiently integrate and maximize the potential of Journ APM. We are already seeing immediate accretion with the addition of Journ APM and expect the product to be accretive to adjusted EBITDA in 2025.

20:22 We're committed to investing in the continued growth of Jordan APM as we look to build a new therapeutic area of focus beyond pain. We are also focused on managing our debt. With the Iron Shore acquisition, we secured a $646 million new term loan from Pharmacon. $320.8 million of the new term loan was used to replace our prior loan with Pharmacon. Reducing our interest rate on this balance by 300 basis points. In addition to the significant improvement in our cost of capital, the new loan also has a longer term, lower amortization, and more prepayment flexibility. We estimate that our net leverage at year-end will be less than two times EBITDA based on estimated fiscal year 2024 combined EBITDA.

21:14 In addition, we have $115 million remaining in the $150 million share repurchase program approved by our board earlier this year. We are confident in the strength of our business and the value it will continue to generate and will opportunistically leverage share repurchases to return value to shareholders. Looking forward to 2025 and beyond, we will continue to leverage the momentum and financial strength of our core pain business to deliver on our financial commitments of growing revenue, increasing profitability, and generating robust cash flows. The outlook of our pain business is bolstered by the recent positive developments for our pain portfolio, the Nucenta Franchise Authorized Generic Agreement with HCMA, and the Pediatric Exclusivity Extension, along with our successful payer strategy and tailwinds from the Medicare Part D redesign are expected to drive organic growth in 2025.

22:09 At the same time, we are focused on integrating and maximizing the value of Jordan APM and investing in its future growth. Jordan APM is poised to be our lead growth driver as we build on the positive momentum we are already seeing just a month into owning the product. We remain dedicated to the disciplined execution of our capital deployment strategy as we look to expand our portfolio of commercial products, pay down debt, and opportunistically return value to shareholders through share repurchases. I will now turn the call back to Mike.

22:43 Thanks, Colleen. We are proud of our accomplishments in the third quarter, which positioned us for continued success in 2025. For the remainder of the year, we are focused on integrating and maximizing joint APM in addition to delivering on the financial and strategic commitments of the core pain business. We are confident in our ability to deliver record financial results, generate robust cash flows, and deploy capital in a disciplined manner. I'd like to personally thank the Collegium leadership team for their exceptional stewardship through the transformational Iron Shore acquisition. And we're very excited to welcome Vikram as our new CEO this month to join our strong team. With his extensive commercial and business development experience, I am confident he is the right person to lead Collegium through this next phase of growth.

23:32 I will now open the call up for questions. Operator? Thank you. Ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad, and 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 the star keys. And our first question comes from the line of Les Zalewski with Crew Securities. Please proceed.

24:07 Good evening. Thank you for taking my questions. I have a few, maybe first for Mike or Colleen. Well, congrats on the impressive CEO selection. And although it might be premature, but given Vikram's strong rare disease background, would you expect any divergence in BD plans into new therapeutic areas? Or do you essentially expect to continue to anchor around the new neuro category? And then maybe for Scott, what are the plans for Bilbuca and your investment efforts leading into LOE? and then what is the value proposition of Bilbuca against some of the other chronic pain products, specifically those undergoing clinical trials such as Suzetrogene. And then maybe last, can you talk about the back to school season with Journey? How much of that script growth was tied to the ownership change and what do you, I guess, envision the peak sales potential or peak market share potential from Journey across the ADHD market? And then in general, can you highlight How impactful is the back-to-school season seasonality to this product?

25:09 Sorry for the mouthful, but thank you.

25:13 Thank you, Les, for the question. This is Mike. I'll start at the beginning, and then I'll ask Scott to jump in on some of the other questions. As it relates to our strategy, since we closed the Iron Shore acquisition in early September, and as I mentioned, for the balance of the year, we're really focused on integrating Dornay and growing Dornay, as well as maximizing our pain portfolio. So that is a key part of our strategy. We'll also continue our business development efforts to identify assets that allow us to build our expertise in a new therapeutic area beyond pain. As Vikram gets further acquainted with the business, he'll work with both our leadership team as well as the board to further build out Collegium's strategy and execution and further put a fine point on the business development strategy.

26:05 I'll pass it to Scott for the question about Belbuca LOE.

26:10 Got it. All right, Les. So starting with Belbuca LOE, look, the biggest thing I'd say there is we are investing through the tape. So we don't view Belbuca as an asset where we're in harvest mode. The fact of the matter is you look at the current LOE assumptions, we think there may be some upside there. So we're investing fully in the product. To your question about, you know, Competition, and the Vertex product. First, I just say any new product in pain, we're a fan of. As the leader of responsible pain management, we believe in options that come to the market that are helpful for patients. That said, that product has no competition in the chronic pain place where all of our products play, not just Belbuca. So don't view it in any way competitive and think Belbuca has a long runway of growth as the use of buprenorphine in pain continues to increase.

27:00 The buprenorphine market is growing, and Belbuca is highly differentiated within the market. On back-to-school, which you asked about, Jornay, look, we're really happy with what's happened during the back-to-school season. So we closed the deal kind of in the middle of the season. The season kicks in in the August time period, and the team has done a tremendous job focusing on execution. We've seen, if you look at the average weeklies, we've seen 18% growth. Comparing October versus July, we expect that momentum to continue as the season typically has an impact that carries into November and think it's just going to set us on a great trajectory as we enter 2025. You asked about peak sales, and we don't give peak sales guidance, so we're not going to give any more color on that.

27:48 I'll just reinforce the growth trajectory of Journée is very strong, and we expect that to continue as we go into next year. Excellent. Thank you for that, Collar. And the next question comes from the line of David Ensolin with Piper Sandler. Please proceed.

28:12 Thanks. So, on Jordan APM, can you remind us how you're thinking about the gross to net spread going forward, whether you can give us a range or just give us some sense of what the gross to net looks like in relation to other branded agents for ADHD? That would be helpful. That's number one. And then number two, just coming back to business development and M&A. So with Jornet, you've got sort of an interesting and somewhat diverse call audience. I believe there's pediatricians, general practitioners, psychiatrists who are prescribing the product. So given that call audience and the commercial infrastructure you have, how does that inform how you're thinking about future Business Development, M&A. Thanks.

29:06 Great. Thanks, David. Scott, you want to take the first question on Jordan APS? Yeah, yes.

29:13 Sure, so Colleen and I will tag team on this one. First, I'll just start with coverage and reinforce that when you look at coverage for the brand, it's very strong right now. 60% of the businesses is in commercial, 40% is in Medicaid, and Journée has coverage across 80% of that overall. So what that means is we're happy with the coverage. We will always look to expand coverage, but as we've done on the paying side, we'll be disciplined in terms of choices we make to expand that coverage. I mean, you want to give a little more color on gross to net?

29:44 Yeah, I'd say, David, you know, we'll look forward in early January to give you a bit more color on guidance. But what we're seeing for gross to net on Journée is typical what you would see in branded ADHD products. It's sitting in the 60s range. You have obviously rebates making up a big portion of that and also the copay program, which is typical in this space.

30:04 And then on the other question on BD, As you know, our focus has really been on moving beyond pain. And as you suggested, Dornay PM and our call points give us a lot of flexibility to go in a number of different directions. I mean, clearly, we'd like to leverage our new commercial expertise and overlap. And again, because of the call points, I think it gives us a lot of optionality. You know, we will primarily spend our time integrating Dornay and thinking about a lot about how to grow it. and then as Vikram comes in and we analyze the opportunities that are in front of us, we will, as we move into next year I'm sure, move our business development strategy forward such that we will be looking to really leverage a new expertise beyond pain.

30:53 That's helpful, thank you. And the next question comes from the line of Serge Bellinger with Newton & Company. Please proceed.

31:08 Hi, good afternoon. A couple questions for us. I guess the first one, regarding the ongoing integration of Journey PM, Scott, I think you talked about Salesforce sizing for that product. Just curious what the current size of Salesforce is and how you're thinking about the modifications to that. And then secondly, regarding the changes to formulary coverage on both Xtanza and Belbuca, I think there were two pieces. So first on where you're losing exclusivity, just curious how many prescriptions are at risk here. And on the new plans, is there an existing oxy business that allows you, that provides a conversion opportunity for that new formulary? Yeah, that's it. Thanks.

32:02 Great. Thanks, Serge. Scott, it sounds like these are both for you on the integration.

32:09 Sounds good. Yeah. So, Serge, first, when it comes to the sales force and our current situation, so currently we have about 150 salespeople all in. That's reps and management. And we're doing the work right now to assess where we go from here. We believe that we need to expand a bit to get the coverage we want. And look, our focal point is around maximizing the potential and raising awareness. And that means we're looking at where prescribing happens and ensuring that we have enough coverage to get the recent frequency that's needed to continue to accelerate the growth of the brand. And so when we get to January and our OpEx guidance, that will all include any final choices we make on the sales force. To your second question about the formulary changes, so we'll take them one by one. In terms of the addition, 8 million lives in commercial, 2 million lives in Part D at the integrated health system that I mentioned.

33:02 Right now there's a little bit of OxyContin business in there, but not much. So it's a little bit different than the conversion opportunities we've had in the past and more of a starting with fresh coverage when it comes to OxyContin. When it comes to Belbuca, there's some use, but a lot of opportunity in front of us in the plan. In terms of scripts, you said where we were removed from formulary at the Part D plan that I mentioned with 8 million lives. So that's in that plan. It's about 12% of Belbuco prescriptions. It's about 18% of Xtamsa prescriptions that fit within that plan. And as a reminder, it's an opportunity where we were not willing to pay what it would take to keep that access.

33:47 and the rebate will go to zero. And so we are confident that it will be net revenue positive overall while seeing the pressure on prescriptions in those plants. Hopefully that helps, Serge.

34:00 Yeah, so when you combine the two changes with the new addition and the change to the existing formulary, do you think it'll be a wash in terms of precision volume for both Xtanza and Dalbuca?

34:15 So it's a wash in terms of lives, not in terms of prescriptions, because as I mentioned, for the integrated health system, they don't have prescriptions reported through IQVIA. So we'll have revenue that comes through, but you will see no prescriptions. Thanks for the call. Yep. and the next question comes from the line of Oren Linot with HC Wainwright.

35:03 Please proceed.

35:06 Thanks. I have a couple. Just to follow up on the questions regarding Vikram's appointment as CEO, can you just talk about what made him a good fit given his experience in global rare disease versus your portfolio of mass market ADHD and Pain Products. Should I assume that your existing core management competencies on that front will maybe be elevated and he will be more focused on broadening your horizons into other areas? Or is he excited and prepared to take on maybe a different sort of book of business? And I have follow-ups all the way. Thanks.

35:52 Thank you, Oren. Yeah, let me talk a little bit about Vikram's experience. As I mentioned, he's been in the biopharm for over 15 years, but he was involved in every aspect of the Horizon business as the business grew from $300 million in revenue to $4 billion, and as we know, resulted in a $28 billion acquisition by Amgen. He successfully led the transformation of the company, its commercial growth, the building of its international division, Those skills, regardless of therapeutic expertise, are certainly transferable when it comes to leveraging the growth of Collegium in the next phase of growth. I think Vikram is, and he'll talk to you about this because he's starting next week, but I think he's pretty excited about the base business that we've created at Collegium. It gives him a great substrate to build upon with a very strong business and a very strong management team.

36:45 For any new CEO coming into a situation, he's got really the opportunity to to already have a growth business and then take his expertise, which is in addition to the expertise we already have, and build on the growth. So we're really excited about having him join the company.

37:04 Got it. And on short APM, you highlighted the pretty strong execution through back to school, but I can't imagine there wasn't some friction or disruption with the corporate change, and yet it looks like you're delivering it. I think about 25% year-over-year growth right now. Is it fair to say that, you know, you're not firing necessarily on all cylinders during the transition and maybe growth could actually inflect upwards again, even, you know, on a year-over-year basis with both, you know, settling of the organization, rightsizing, and some increased resource allocation?

37:43 Yeah, thanks, Aaron. Scott, you want to take that?

37:47 Yeah, that's great. Yeah, Oren, great question. So first I'd say, Really, we didn't see disruption, and that was purposeful because, as you may recall, we kept the entire Salesforce management team and everybody intact to ensure continuity. So to the first question, yes, firing on all cylinders. Year-over-year growth is actually up 31.2%, and that accelerated during back-to-school season, frankly, at a greater rate than they accelerated last year during back-to-school season. So the team needs a tremendous amount of credit for that continuity during that time. Now, to your question going forward, Of course there's future opportunity, and I put it into a couple of buckets. First, brute execution, right? We will bring our expertise to ensure that we're executing on all cylinders in front of the customer. That's number one. Number two, as I mentioned in my prepared remarks, we'll ensure that we're adequately sized and investing from a marketing standpoint to drive awareness and uptake among HCPs first.

38:46 and then number three, if you think about the profile I laid out of this product, clearly it's a product That if you're a caregiver and understand that there's a product for ADHD that you could dose once in the evening and that could carry you through your child through the next day from upon awakening all the way through the day, that's a pretty interesting product for caregivers and for patients. And the awareness there is very low. So we will take action and make investments to take advantage of that opportunity. So those are the things we'll be focused on as we move through 2025 to continue the growth momentum of the brand.

39:20 All right. And on journey in the market, you know, it's obviously a highly genericized overall ADHD space. You know, unless I'm mistaken, there's only a couple real unique branded methylphenidate products out there. And you've got Asteris with a pro drug and you guys with this pretty unique dosing. Can you talk about your, you know, field reception out there with regards to other branded competition and your differentiation and maybe You know, how it seems to be shaking out in terms of patient or physician preference for these two different value propositions?

39:58 Yeah, Scott, you want to take that?

40:00 Yep, yeah. So a couple of insights I'd give you. One, if you just look at performance in the market, the growth of Journée in the back-to-school season has exceeded the competitive sets. So that's number one. And that includes also Calabria, the non-stimulant. So if you look at just the branded marketplace, The reception is really strong and growing. When you look at physician feedback, what we're hearing is that they truly see the uniqueness, not just of the evening dosing, but the fact that the product carries through the next day from morning through the day. So they look at, you know, for instance, an Astaris as more of another kind of typical type of extended release product, like a lot of the extended release products that have gone generic, but they see Journée as being truly different and the best evidence we have of this is when someone switches to Jornay, in the early data we're seeing, it's a stickier product and actually adherence is a little bit longer on it than other ADHD medications. So that's what we're seeing in the marketplace.

41:01 The reception is good. The prescriber base, as I shared, is growing up 25% year over year, almost 23,000 physicians in the third quarter. So there's a good receptivity. There's a momentum behind the drug and we're gonna continue to try to continue to keep that going.

41:17 Oh, and just lastly, one housekeeping thing. I haven't run the math yet with growth to nets and the blowout extant ER numbers. So maybe that, you know, lines up perfectly. But were there any material inventory moves on extant or any other products, you know, up or down in the quarter?

41:36 Sorry, yeah, I jumped in too quick. Or in across the pain portfolio, it's pretty consistently around 15 plus or minus a half. On Journée, because it was a little bit less than a month that we had ownership, and they had, for one of the big three wholesalers, a every other week ordering pattern, we had lower days on hand than you typically see. So Journée ended September just shy of 11 days on hand, and you would normally expect that to be about 15. But that was the only difference I'd call.

42:08 All right. Thanks so much.

42:11 Thank you. Thank you. Ladies and gentlemen, this concludes the question and answer session. I'll turn the call back to Mike Heffernan for closing remarks.

42:23 Thank you, everyone, for joining the call today. Have a great evening. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.