Collegium Pharmaceutical, Inc. Stock

Thank you. Thank you. Great. Good afternoon. My name is Bob Klingenberger. I'm an Executive Director at Morgan Stanley. I'm really pleased to be joined by the Collegium team here this afternoon. Vikram Karnani, President and Chief Executive Officer, and Colleen Tupper, CFO. And just before we get started for any research disclaimers, please just visit morganstanley.com/researchdisclosure. And if any questions, please reach out to your Morgan Stanley representative. And like I said, thrilled to be joined here by the Collegium team.

And I think Vikram and Colleen, just maybe to, kind of, kick things off, historically I think the company has been viewed as a really a pain management company. I think fair to say that the story today is increasingly diversified and just maybe to kick us off would be great if you could, kind of, describe the transformation and how you guys, especially Vikram, since you've been in the seat, have really, kind of, transformed the profile the last couple of years.

Yes, first of all, thank you. Thanks for having us. To give you a little bit of background on Collegium, we describe ourselves as a dynamic, growing biopharmaceutical company, focusing on improving the lives of people living with serious and often misunderstood conditions. There are three main components to how we do what we do. We identify differentiated commercial assets or medicines that address meaningful unmet needs for patients. We apply focused commercial execution strategies and efforts to accelerate growth. And then finally, we create value through strategic acquisition and business development.

We've gotten really good at acquiring companies or products, integrating them, and quickly putting them on a path to growth. To date, as you rightly identified, we've built the industry's leading organization when it comes to supporting patients with severe pain, and more recently, over the last couple of years, have started the diversification part of our journey, and have really expanded into ADHD.

While pain -- the pain portfolio remains a significant portion of our business, in the last couple of years, the ADHD portfolio has grown to almost 30% of our annual revenues now. Our first ADHD medicine, which we acquired in 2024, Jornay PM, grew 48% in 2025, and we expect approximately 31% growth this year, and that's at the midpoint of our annual guidance. And that represents revenues of about $190 million to $200 million in 2026.

In May, we acquired our second ADHD medicine, AZSTARYS, which is a highly complementary offering to Jornay PM. And we expect that to deliver about $65 million to $75 million in revenues in a partial year, because the deal closed in May. So, when you take a step back and look at our total diversified portfolio of medicines, both between pain as well as ADHD, it represents about $825 million to $855 million in revenue this year. That's our updated guidance, represents 8% annual year-over-year growth.

And it puts us on a path to achieving $1 billion plus in revenue in the future. Most importantly, this growing business is also continues to be highly profitable. And so our EBITDA margins are in excess of 50%, well above the typical margins that you see in our industry, especially for mid-sized specialty pharma companies, or even commercial biotech companies. And I think looking ahead, we remain focused on our efforts to drive growth in ADHD, maintain the durability of our pain portfolio. And then frankly, deploy capital in a highly disciplined manner through business development and expanding the portfolio, debt reduction, strengthen the balance sheet, and then continue to be opportunistic when it comes to buying back shares. So in a nutshell, that's the company.

Yes. No, look, I think you covered a lot of stuff that we'll get into in a little bit more detail, but I think a really helpful overview. I think the first piece that you, sort of, touched on there was ADHD becoming an increasingly important part of the business, especially with the recent acquisition. And how do you think about you, sort of, you mentioned the products being highly complementary, Jornay PM and AZSTARYS. How do you think about the complementary nature and how you're positioned in that space?

Look, I think it's important to understand, like, take a step back and just let's talk about the ADHD market as a whole. In 2025 alone, there were 111 million prescriptions written in this market. So it's a very large market. It's also a growing market, enjoying about 8% CAGR between 2020 to 2025. So 111 million prescriptions growing at a fairly high growth rate, which signals high patient unmet need. Patients on average will try and cycle between two to three different ADHD medicines before they finally arrive on the one that actually works for them. Of the 111 million prescriptions, almost 90% of those prescriptions were written for stimulants, and the balance is for non-stimulants.

So the vast majority are stimulants about -- and of that 90%, which represents close to 100 million prescriptions, about 26 million prescriptions were for the methylphenidate category. So just to give you a sense of size. What this implies is there is a significant amount of opportunity for both Jornay as well as AZSTARYS to grow within the methylphenidate stimulant category. As a reference point, both Jornay and AZSTARYS in 2025 did about 760,000 prescriptions each. So 26 million prescriptions written annually. Each of these brands had 760,000. So a significant opportunity. Talking about the differentiation and the complementary nature of the two medicines.

Jornay PM is the only stimulant ADHD medicine that is taken at night, and it provides morning efficacy upon awakening, which is a significant stated unmet need for ADHD patients. It's one of the most frequently prescribed medicine to patients that have a -- that have some structure to their schedule and can predictably, they need to wake up at a certain time. Think of school-going kids, for example. On the other hand, AZSTARYS is the first and only ADHD medicine that has both fast-and-long acting medicines in one capsule.

So rapid onset of action, lasting several hours up to 13 hours. AZSTARYS is most often prescribed to those patients with -- who would say that the morning is manageable, but are really in need for rapid onset of action and need flexibility in their schedule. So -- and then, of course, have continuous therapeutic coverage as a need for the rest of the day. Together, these two medicines provide very nice complementary set of options for physicians.

And that's pre-acquisition, that's what we heard back from physicians, and post-acquisition, as now we've been out there for a few months promoting both medicines, those, I guess, practices have been validated.

And just I think helpful to lay out, right, the landscape. And I think one of the proof points, at least as you all have, you done with Jornay, which you've had in your portfolio for a couple years now, is really, kind of, changed the trajectory of that product. So could you talk about, right, you talked about, sort of, the differentiation from a -- it's the only therapy that you can take at night and wake up with the effect. What else has been, kind of, a factor as you've really expanded that product and it's continued to see growth as you've talked about with the guidance for this year?

Yes. Look, as a reminder, we talked about the fact that Jornay grew 48% year over year in 2025, and is expected to grow 31% this year. So very healthy growth rates for this medicine. This growth is driven by a few factors. Number one, the profile of Jornay PM is viewed highly favorably by physicians. When we've done research, as a reminder, it's the only ADHD medicine that you take at night, gives you efficacy upon awakening in the morning. Physicians ranked Jornay in market research, ranked Jornay as the number one branded ADHD medicine in the category in terms of product differentiation. With a score that is far higher than even the second ranked medicine in the in the same category.

In addition, in the same research, more than 70% of physicians indicated a strong intent to increase prescribing, right, which was also the highest among all branded medicines in this category. Secondly, we know ADHD is a highly promotionally sensitive market. So based on growing opportunities within this space, we have increased the size of our sales force that is calling on physicians and increased the size of the called-on HCP universe for these medicines. The current sales force is about 190 representatives promoting both Jornay as well as AZSTARYS.

And our early insights are suggesting that physicians are very receptive to a single sales force that brings both Jornay and AZSTARYS, both complementary medicines to physicians. It improves our commercial efficiency and it also expands our reach at the same time. I think in today's day and age, what has proven particularly effective is marketing through digital and social media channels. We've successfully raised awareness of Jornay over the last couple of years, both with physicians as well as with patients and caregivers.

So I think in terms of future growth, I would say that we continue to see growth in new prescribers. I mean, in our last earnings call, we talked about the fact that Jornay now is prescribed by more than 30,000 physicians, which represented more than 17% growth year-over-year. So, we continue to expand the universe of physicians that are prescribing Jornay, and within the practices that are prescribing Jornay, we're starting to see increased depth or increased prescribing within the practice. So, both increased depth as well as breadth of prescribing will drive Jornay growth in the future.

Yes, and I think when you first acquired the product, right? You had a, kind of, a peak opportunity in the couple hundred million category, obviously with the growth you've seen. I mean, you talked about, kind of, the areas that you feel like you can continue to expand the product, but I guess how should we be thinking about, kind of, the long-term trajectory?

We never actually provided a peak -- specific peak sales estimate for Jornay or for AZSTARYS for that matter. I think the range, if you look at sell-side estimates, they're probably in the $300 million to $500 million range. But we still -- we definitely have not provided any peak sales estimates. We're -- in addition, we're yet to see the potential impact of having AZSTARYS now in the portfolio as well. And like I said, we're one of the only teams that is out there that is promoting a portfolio of branded medicines, both that are considered highly differentiated, highly complementary, and bringing value to patients.

What I can tell you is that based on our experience thus far, based on the KPIs that we follow and based on the momentum that we see, we will continue to increase the number of prescribers that will prescribe Jornay and AZSTARYS. We will continue to see increased depth of prescribing for both Jornay as well as AZSTARYS within the prescriber universe.

And solid profitability for the brand. Both Jornay and AZSTARYS enjoy very good payer coverage. The access is very good, our patients support programs, our co-pay assistance programs are viewed very favorably by patients as well as physicians. So strong execution in the future will continue to drive momentum for both these medicines.

Yeah. And you touched on this, I know, when you acquired AZSTARYS, but maybe just, kind of, remind us a little bit. You've talked about the 190 reps that you have in terms of meeting with both products, are any plans in terms of expansion? And just how do you take some of the success you've -- the playbook you've run for success with Jornay and, kind of, apply it to AZSTARYS as well?

Yes. Look, when we -- so as a reminder, when we acquired, pre-acquisition, about 180 representatives were promoting Jornay alone. And that was based on our analytics at the time, that was the right size. We were -- our target universe that we were going to call on was about 21,000 physicians. Post acquisition, when we redid all the analysis, we increased our target universe to now 27,000 physicians. But we're able to do that with a very modest increase in the sales force size. So we've now gone from 180 representatives to 190 representatives, right?

So just adding 10 more geographies allows us to very efficiently and effectively call on that entire universe of physicians of about 27,000 targets. I think in addition to the efforts of our sales force, something that we saw deliver impact in 2025 in the tail end of the year was the increase in our marketing efforts. We put out new marketing campaigns, both for -- both in digital channels as well as social media. We had a social media influencer campaign that was launched last year. And throughout the course of the back-to-school season last year and into 2026, we continued to monitor the impact of all of these programs.

Post-acquisition of AZSTARYS, we also increased the size of the MSL team to continue to help educate physicians on the benefits of both medicines. And I think what we saw was a -- as I've already said, what we saw was a dramatic increase in growth in Jornay. And we -- what we have seen with AZSTARYS is an opportunity to do much of the same, especially when it comes to highly efficient, targeted, cost effective social media and digital marketing. So what you should expect to see is some of those programs now play out in the back-to-school season this year, we'll monitor the impact and we'll continue to refine our programs as we enter next year and beyond.

Yes. No, I mean, exciting to have both of those in the ADHD franchise. Maybe just, we talked a little bit about the pain portfolio you mentioned in the introductory remarks. I mean, I know it remains an important source of, sort of, revenue and cash flow. Just maybe talk about a little bit different initiatives you have and some of the points of -- I think durability, longevity for that franchise that I know you've discussed on recent earnings calls as well.

Yes. Maybe, like, let me take a step back and just give you a headline on the pain business. And I'd invite Colleen to really go into some of the reasons why we should believe in the durability of the pain business being longer than I think what people might think. So our pain business as a starting point includes four differentiated medicines with abuse deterrent attributes. It generated -- the business generated in excess of $630 million in 2025 revenues.

While the business is more mature, revenues grew 6% in 2025. And despite some generic pressure that is beginning to impact Nucynta this year, we believe that the durability of the full portfolio still remains underappreciated. Maybe Colleen can go into some of the dynamics here.

Yes, absolutely. So, Xtampza had revenues of about $200 million in 2025, and maintains its exclusivity until September of 2033. Prescription volumes have been down across all long-acting opioid -- branded opioids this year. The Xtampza prescriptions in the second quarter were up 2% compared to the first quarter and tracking similarly so far in the third quarter. So this business continues to provide meaningful revenues on a very efficient footprint that is detailing not only Xtampza but Belbuca as well.

The Belbuca revenues in 2025 are about $222 million and has only what we believe is limited risk of near-term generic entrants. Teva would be the earliest possible entrant in January of 2027, due to settlement from 2018 when there was, at the time, their business strategy was much different. To date, Teva has not received tentative approval and has relinquished its first filer exclusivity.

Importantly, it remains unclear whether or not Teva intends to reenter the generic opioid space. They have stopped distributing significant volumes of opioids, particularly oxycodone IR, generic, and given their change in strategy to focus on complex generics, biosimilars, and new chemical entities, we do not know if they will really look to reenter this market to launch a generic of Belbuca. Following that question, which we're now about four months away from really understanding and getting more certainty on what their actions will be, the next potential entrant would be Alvogen, which was fully litigated by the predecessor company, BDSI, and Alvogen is currently barred from the market until December 2032.

There are -- finally, there are two small other generic companies that are pursuing a non-infringement approach, one of which has had their litigation stayed indefinitely until they're able to produce a product. They have to date experienced six CRLs. So their path to the market would first require them to have technical success to prove that they can compete -- produce a comparable product and then that would move into the litigation phase and we feel strongly in our position there. The last of those is currently under a 30-month stay and again we feel very strongly in our position there.

The Nucynta franchise had revenues of just shy of $200 million in 2025, and here we do expect some declines over the next few years, as Vikram alluded to. Our authorized generic distributor launched a generic version of both Nucynta and Nucynta ER in the first quarter of this year, and prices were considerably lower than what we anticipated. They ultimately rebated the products more like an external generic product that is experiencing multi-source generics. So what you saw us do during our Q2 earnings call was moderate our guidance for the full year, which takes the impact of that pricing expectation into account consideration.

In addition for Nucynta, a third-party generic company launched a generic version of Nucynta in February of 2026. That market is still predominantly branded. That player has captured about a 20% share and seems to have a cap on the supply that they're able to deliver. Ultimately for 2026, what we saw is a more quick step down due to the price that our authorized generic partner put in place, and we think that's a bit of a reset and then we'll have more of a gradual erosion going forward.

All of those dynamics have been contemplated in our most recent updated guidance that we issued early of August of 2026. I think just ending on that to close up the Nucynta loop, looking ahead we believe the likelihood of numerous generic entrants remains low for the Nucynta franchise, primarily due for supply constraints, manufacturing considerations, and frankly, the shrinking pie of value that that is there.

And overall, we believe our pain portfolio continues to provide a durable foundation of revenue, profitability, and cash flow that supports both investment and future growth opportunities and long-term shareholder valuation. And that part of our business, that portfolio, is supported by an efficient 95 territory sales force.

Great. And on that, I mean, I think that last point, Colleen, you made right, is, sort of, the cash flow for investment and growth. And I think BD has been obviously a key part of the recent strategy for the company, including the AZSTARYS acquisition we've talked about. Maybe just if you guys could talk a little bit about, sort of, the characteristics you continue to look for in BD and where I guess specifically you feel the company kind of has a competitive advantage as an acquirer.

Yes. Look, I think, let me clarify one thing. I think BD has been a core part of the capital deployment strategy for Collegium for many years. I think the -- after the launch of the first product, Xtampza, years ago, the company has built both the pain portfolio and then more recently the ADHD business on the backs of continuous business development. We have a pretty clear set of criteria, at least we think. We have a pretty clear set of criteria for BD. We prioritize differentiated commercial or near commercial assets that diversify our product portfolio.

Significant revenue with meaningful growth potential exclusivity into the mid-2030s and beyond, and the ability to -- ideally, the ability to leverage our existing commercial footprint or requiring, call it, modest incremental commercial infrastructure build out. We have a really active and a very experienced BD team that's continuing to evaluate potential opportunities for medicines that we can expand our portfolio with and accelerate our growth.

CNS remains a high area of interest, but it's not the only therapeutic area that we continue to evaluate. Other specialty conditions, for example rare diseases, are part of our ongoing assessments as well, assuming that they offer a compelling path for building a franchise. Does that make sense?

Yes, yes. No, I think that's -- no, I think that answers that question, certainly. And maybe just, Colleen, for you, as you think about the recent AZSTARYS deal, if you just maybe remind us, sort of, where things sit in terms of leverage, what you've talked about in terms of, kind of, pay down and guidance given post that deal.

Yes. At the end of Q2, we had debt of about $1.1 billion, which includes term loan of approximately $865 million that we executed last December. So it was our first syndicated credit facility. And we also have about $240 million of convertible note outstanding. That puts us at the end of the second quarter at a net debt to EBITDA ratio of about 2.1x on a midpoint of our guide of EBITDA of about $465 million.

Moving forward, we would expect to maintain our previously communicated capital allocation strategy, which balances portfolio expansion, as Vikram just noted, and diversification through business development, as well as paying down our debt rapidly, which you've seen us do in prior acquisitions. We take the opportunity. We will lever up to consummate a deal, and then we quickly delever, which reinvigorates our firepower, and then also opportunistically returning value via share repurchases when appropriate.

Yes. No, that's -- I think that's been clear from your track record, certainly. And I guess maybe, kind of, taking a step back, kind of, more broadly, right, having been in the seat a couple years now almost, Vikram. And as you think about, kind of, we talked about the durability of the portfolio, we talked about the growth opportunities in ADHD, as you maybe, kind of, look to the, kind of, end of the decade, which we're rapidly approaching. As you think about what you view, where you see Collegium, kind of, sitting in that time period, if you just maybe reflect on that a little bit, where the company's headed.

Yes, that's a great question. I think when we take a step back and think about the mission of the company, right, on the onset, I started out by saying we're a dynamic, growing biopharmaceutical company that is trying to make a difference in the lives of patients through bringing meaningful medicines and addressing unmet patient need. That's the mission of the company and frankly that's -- the more patients that we can impact, I think is a strong measure of our success. And frankly, when you do it the right way, other key metrics like revenue, adjusted EBITDA, so on and so forth, all will continue to grow. Right?

So in the next three to five years, I would expect our business to be more diverse, far more differentiated, and far less reliant on just the pain portfolio. The pain portfolio has served a very important purpose in the mission of the company, but it is now, it's clear we're on a journey to diversify our business. We've been on this journey for the last couple of years with the build out of the ADHD portfolio. And I would expect that in the next three to five years we continue that journey.

We continue to be more diversified, bring more differentiated medicines into the portfolio, maybe add a third leg to the stool and grow in newer therapeutic areas or in specialty conditions like rare disease as I noted previously. I think during this time, we also may very well expand our BD efforts to include medicines that are in clinical development, rather than remain solely focused on commercial medicines.

And what that gives us also is more option value, it gives us more longevity into the future, and provides a more sustainable long-term view of the business, of the company. And I think in the next three to five years, I believe that if we continue to execute the way we have, we will be larger, we will be stronger, we will be more differentiated, we will be more diversified, and continue to have a much more -- much greater impact on patient health. That's, in a short few sentences, that's the direction of the company.

Yes. Well, it's an exciting future ahead. We've covered a lot of ground, and we're, kind of, run up against time. Any, kind of, final comments either of you would want to add?

I think thank you for -- thanks the opportunity. Thanks for a great day here, and I look forward to continuing our path to great execution.

Okay, fantastic. Well, thank you, Vikram, Colleen. Appreciate the time, and thanks, everyone, for joining.

Thank you, Bob.

Thanks, Bob.

Thank you. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during this conference call, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now like to turn the call over to Ian Karp, head of investor relations. Thank you. You may begin.

Great. Thanks so much, and welcome to Collegium Pharmaceutical's second quarter 2026 earnings conference call. I'm joined today by Vikram Karnani, our president and chief executive officer, and Colleen Tupper, our chief financial officer. Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional. Any forward-looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. We are cautioned that such forward-looking statements involve risks and uncertainties as 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. 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.

And with that, I'll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian. Good morning, everyone, and thank you for joining our second quarter 2026 earnings call. Collegium is a dynamic biopharmaceutical company delivering medicines with formulation and delivery innovation for people living with complex CNS and pain conditions. Today, we have a diversified portfolio of six differentiated medicines, a growing ADHD franchise, and an established pain business that together provide a strong foundation for long-term value creation. We have a demonstrated ability to acquire, integrate, and grow differentiated assets while deploying capital in a disciplined manner. This quarter, we delivered strong results, highlighted by significant progress in our rapidly growing ADHD business. Key achievements included, Dornay prescriptions grew by 13.1%, generating $46.1 million in net revenue, up 41% year-over-year. Journey prescribers reached an all-time high with over 30,000 healthcare providers writing Journey prescriptions in the quarter, up 17.6% over Q2 of last year.

And importantly, we completed the acquisition of Astaris in May, which now provides us with a differentiated and highly complementary medicine to join APM. This latest acquisition further reinforces the strategy we initiated in 2024 to diversify our portfolio beyond responsible pain management and establish a strong presence in the growing ADHD market. The integration of Astaris and product training of our expanded sales force is now complete, and the team is well positioned to further accelerate growth for both medicines ahead of the back-to-school season, which begins later this month. Switching to our pain portfolio, we generated 140.9 million in revenue in this quarter. Elbuca performed particularly well, with revenues up 10% year-over-year. In addition, we recently secured formulary access to an additional 9 million lives, which goes into effect in the fourth quarter. Offsetting Bell Bucus performance, revenue from the Nuscenta franchise was lower than expected due to pricing for the authorized generic products.

Colleen will discuss this financial impact in greater detail. Overall, we achieved both top and bottom line growth with total net product revenues up 6% and adjusted EBITDA up 8% year-over-year. Turning now to other recent corporate updates, during the quarter, we remain focused on our commitment to leading with science and generated additional clinical evidence supporting our portfolio through multiple medical presentations and publications. Once again, Collegium was recognized by the Boston Business Journal as one of the 2026 best places to work in Massachusetts and named a USA Today Top Workplace for 2026. I'm very proud of the entire team at Collegium for their continued hard work and dedication in support of the patient communities we serve. And finally, we recently announced plans to relocate our corporate headquarters to downtown Boston in the first quarter of 2027, further integrating Collegium into one of the world's leading healthcare and life sciences ecosystems. In the second half of 2026, we are focused on three key strategic priorities.

Growing our ADHD business, maximizing the value of our pain portfolio, and strategically deploying capital to create long-term shareholder value. based on the ongoing progress across our ADHD business and the strategic investments we have made ahead of this year's back to school season. We remain confident in our full-year expectations for 190 to 200 million in Jordan APM revenues, and have increased our expectations to 65 to 75 million in partial year of status revenues. For our pain portfolio, we continue to implement strategies to maximize the durability of these revenues, which provides a solid base to our business and allows us to invest in our key growth drivers and capital deployment strategy. And finally, executing our disciplined capital deployment strategy remains a core priority, as was evidenced by the data. by our recent acquisition of Astaris designed to accelerate our growth opportunities. We are encouraged by our momentum heading into the second half of the year and remain confident in our ability to execute against these strategic priorities. Turning now to our commercial highlights. Starting off with our lead growth driver, Jornet PM, a highly differentiated medicine and the only ADHD stimulant that provides all-day symptom control that starts immediately upon awakening.

Driven by our targeted investments and enhanced commercial efforts, HCP perceptions of journey are very positive and we have seen that enthusiasm increase. Based on market research conducted in the first quarter of 2026, HCPs had a high favorability rating and again ranked Journet as the number one branded ADHD medicine in terms of product differentiation, with a score significantly higher than all other medicines in the same category. In addition, 70% of HCP surveyed indicated a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines. HCP awareness of Journée has significantly improved in the last year. Unaided recall among target HCPs increased to 67%, up from 52%, approaching the awareness levels of established brands like Vyvanse and Concerta. Polygium is ranked number one in reputation among pharmaceutical companies specializing in ADHD, and market research indicates that we are focused on the right messages and our sales force is viewed as highly effective in their delivery. Jornet continues to be the fastest growing stimulant for the treatment of ADHD.

In the second quarter, we saw strong Jornet growth trends in prescriptions, prescribers, and market share. Specifically, we saw Jornet PM prescriptions up 13.1% year over year. We also hit an all-time high in time high for journey prescribers in the quarter with over 30,000 healthcare providers writing journey prescriptions up 17.6% year over year. We grew our share of the branded long-acting metal phenidates market to 29.2%, up 5.8 percentage points year over year. We saw solid growth across both the pediatric and adult segments. In the pediatric and adolescent segment, which represents about 80% of our business, total prescriptions grew 10.7% year over year. The adult segment, representing about 20% of our total prescriptions, grew 23% year-over-year.

Overall, we expect Jornet's strong growth trajectory to continue in the second half of the year, further bolstered as we enter the back-to-school season. In addition to growing Jornet, we completed the acquisition of Astaris in May, bringing a second highly differentiated ADHD medicine into our portfolio. The acquisition strengthens our ADHD platform in several ways. Market research suggests that Astaris is the second most differentiated stimulant brand ever. following Journey PM and despite not benefiting from broader commercial investment under its prior owner. has IP protection through 2037, extending the lifecycle of our commercial portfolio. It enables significant cost synergies, allowing us to leverage our existing commercial infrastructure. it is immediately accretive to adjusted EBITDA with a greater impact anticipated in 2027 and beyond. And most importantly, it provides significant potential benefits to patients. Astaris is the first and only ADHD treatment with both fast and long-acting medicines in one capsule.

Jorn-APM and Astaris are highly complementary as they serve different patient types. Jorn-APM is for the patient who needs their all-day symptom control to start immediately upon awakening, while Astaris is for the patient who needs the flexibility of rapid-onset symptom control to last later into the evening. HCP perceptions of Astaris are also very positive. In market research, healthcare professionals rated Astaris highly in terms of product differentiation and brand favorability. We also continue to receive highly positive feedback from both KOLs and community-based physicians regarding the addition of Astaris into the collegium portfolio, regarding the opportunity to bring together two best-in-class methylphenidate treatments addressing distinct patient needs. KRLs also view this as an important signal of Collegium's long-term commitment to advancing care in ADHD. Since the close of the Astartes acquisition, we have been focused on rapidly integrating the product into our portfolio.

This includes increasing our ADHD sales force to about 190 reps, up from 180 prior to the acquisition, and growing our target HCPs to about 27,000, up from 21,000 pre-expansion in 2020. All of our sales representatives are now fully trained and selling both products to all targets ahead of the back to school season which begins later this month. In addition, over the past year, targeted patient and caregiver outreach, particularly through social media platforms, has successfully increased awareness and trial for journey PM. These commercial tactics will now be deployed for Astaris and represent an additional opportunity to support future growth. Thank you. We have also been making incremental strategic investments to our medical affairs, market access and regulatory teams to further support and maximize these two growing brands. Ultimately, our goal is to increase awareness and adoption for both products while optimally leveraging our infrastructure and commercial expertise. excited by the outlook of our ADHD portfolio and look forward to providing future updates later this year. Turning now to our pain portfolio, our responsible pain management business continues to provide a durable foundation for Collegium, generating strong cash flow that supports investment in our growth priorities.

Bell Buca continued to perform well during the quarter, with revenues increasing 10% year over year, driven by stable prescription demand and improved profitability. Looking ahead, Bell Buca also recently secured formulary access for an additional 9 million lives starting in Q4 of this year. Revenue from extamsa declined year-over-year, reflecting both pressure across the branded, long-acting opioid market and an unfavorable comparison to the second quarter of 2025, which benefited from the timing of rebate settlements. Revenue for the Nusinta franchise was lower than expected due to net pricing for the authorized genetic versions of Nusinta and Nusinta ER. As a result, we have updated our full year guidance, which Colleen will discuss in greater detail. Our pain business continues to serve as a strong, cash-generating strategic asset, providing financial flexibility to invest in the growth of our ADHD business, execute disciplined business development opportunities, and return capital to our shareholders. I will now hand the call over to Colleen to discuss our financial highlights.

Thanks Vikram. Good morning everyone. In the second quarter, we again saw significant growth in Journée, along with initial revenue from Astaris and meaningful revenues from our Payne portfolio. Financial highlights for the second quarter include total net product revenues were $199.9 million in the quarter, up 6% year over year. name that revenue was $46.1 million in the quarter, up 41% year over year. It's The Starus revenues were $12.9 million, which reflect about a month and a half of commercial sales. Bill Bucon net revenue was $57.7 million in the quarter, up 10% year over year. The Xtamsa ER net revenue was $45 million in the quarter, down 14% year over year. This quarter provided a challenging comparison to Q2 2025 when Xtamsa benefited from the timing of rebate settlements totaling approximately $2.4 million. Total Nuscenta franchise net revenue was $35.2 million in the quarter, down 24% year over year.

This includes $5.1 million in revenue from the profit share on the authorized generic versions of Nuscenta and Nuscenta ER. Gap operating expenses were $106.6 million in the quarter, up 45% year over year. This quarter included $24.1 million in acquisition-related expenses associated with the Astaris acquisition. Adjusted operating expenses, which exclude stock-based compensation and acquisition-related expenses, were $66.6 million, up 8% year-over-year. GAAP net loss was $15.1 million in the quarter compared to net income of $12 million in Q2 2025. Non-GAAP adjusted EBITDA was $113.8 million in the quarter, up 8% year over year. GAAP net loss was $15.1 million in the quarter compared to net income of $12 million in Q2 Cap loss per share were 46 cents basic and diluted in the quarter compared to earnings of 38 cents basic and 34 cents diluted in the prior year quarter.

Non-GAAP adjusted earnings per share was $1.92 in the quarter compared to $1.68 in the prior year quarter. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. We generated operating cash flows of $71.3 million in the second quarter, and as of June 30th, we had $129.5 million in cash, cash equivalents, and marketable securities. As a reminder, we used approximately $356 million in cash on hand to fund the acquisition. of a Staris that closed during the second quarter. We are updating our 2026 financial guidance primarily to reflect lower than expected full year revenue for the Nusenta franchise due to lower net pricing for the authorized generics. Importantly, our revenue expectations for Journée remain unchanged with guidance of 190 to 200 million We are also increasing our revenue outlook for Astaris, now expecting $65 to $75 million following successful integration and encouraging early performance. We now expect total product revenues in the range of $825 to $855 million.

This represents an 8% increase year-over-year at the midpoint, driven by Jordan APM growth and contributions from the Staris, partially offset by lower paying portfolio net revenue. We expect adjusted EBITDA in the range of $445 to $470 million, essentially flat compared to 2025. Finally, we expect Jornet gross-to-net to remain stable in 2026 in the mid-60% range. Our capital deployment strategy remains focused on creating long-term value for our shareholders by executing on business development, paying down debt, and opportunistically returning capital to shareholders. We successfully completed the Asaris acquisition this past quarter and are efficiently integrating it into our portfolio. We ended the quarter with net debt to adjusted EBITDA of approximately 2.1 times. We'll now turn the call back to Vikram for some final remarks.

Thank you, Colleen.

Following the close of the ASTARs acquisition, our ADHD portfolio is on an exciting trajectory. With the integration complete and our commercial organization fully trained, we are well positioned heading into the important back-to-school season. Our strategy to diversify our business beyond responsible pain management began in 2024 and has now been meaningfully strengthened by this recent acquisition. We are particularly encouraged by the long-term growth potential of the combined portfolio as well as the cost synergies we are already beginning to realize. In the second half of the year, we remain committed to our three key strategic priorities, driving continued growth for our ADHD portfolio, maximizing the durability of our pain portfolio, and strategically deploying capital. underlying fundamentals of our business remain strong. We continue to generate significant cash flows and strong profitability, giving us the financial flexibility to invest behind our growth drivers, strengthen our portfolio, and return capital to shareholders. I remain confident in our journey to building a leading diversified biopharmaceutical company.

We have a a clear strategy, a strong portfolio, and the financial discipline to continue creating long-term value. And I look forward to updating you on our continued progress.

With that, we'll now open the call up for Q&A. 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 that 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. One moment please while we poll for questions.

Our first question comes from Serge Belander with Needham & Co. Please proceed with your question.

Hi, good morning. Thanks for taking my question. I guess to start off with on Nuscenta, has the net price from the authorized generic now stabilized or do you expect? any additional erosion on the pricing level. And then secondly, since I think we're probably going to get questions on the IP duration of pain portfolio, can you just remind us your expectations for COVID-19 potential generic competition on Belbuca since I believe some of the IP expires in 2027, and whether you have an authorized generic strategy for that product also. Thanks.

Good morning, Serge. Thanks for the questions. On NUSINSA, I would expect the net pricing to have stabilized at this point, and that is reflected in our full-year guidance. I would point you to Q1 and Q2 had timing dynamics with the initial supply to the office. So I would look at first half of 2026 in totality. And then the second comment I would make about sort of the revenue recognition is keep in mind for this arrangement as is typical, we book revenue at the time of supplying the authorized generic distributor. That revenue that is booked is a combination of the sale of the material of the product as well as an estimated profit share. So there is some lumpiness that could be, you know, in each quarter given that accounting, but we do believe the net price has stabilized at this point.

On the second question for the pain LOEs, I'll just start with extansa, one andafiler, fully settled for September of 2033. Belbuca, thus far the event we are watching for, we've spoken to in the in the past is that in January of 2027, TEVA via a settlement agreement does have the ability to launch a generic. We've spoken at length in the past. We do not believe that aligns with their strategy based on comments they have made, but we do We do have an authorized generic agreement in place and it has been in place for years. That agreement is your typical agreement where the launch of the authorized generic is triggered upon an external generic launching. So whether that be, Keva, in your case, in early 2027 or one of the other parties that is filing and held off a bit further. Alvagen in particular has been litigated and currently is barred from the market until December of 2032.

Got it. Thank you. Thank you. Our next question comes from Dennis Ding with Jefferies. Please proceed with your question.

Hi, good morning. I have two questions if I may. Number one, just on ADHD, I'm glad to see beats across both Jornet and Asteris as you guys diversify away from pain, but can you comment how much of the Asteris beat came from a change in channel dynamics as the drug switch hands? And presumably you're a patient with a chronic disease, but can you comment on how much of the larger distribution network could have led to a little bit more stocking than anticipated. And also, if you can comment on gross and net in the accounting, since that could also change depending on who owns it. So that's question number one. Question number two is around new CINTA. Net price was much lower than you expected. We're getting to around a 75% discount on the IR and 50% discount on the ER. Is that in the ballpark or are we really off? And I believe it's also a volume limited agreement with HICMA, correct? So maybe comment on the different thresholds in terms of the volume step up.

Thanks so much.

Yes, thanks, Dennis. I think just to start out on Astaris, the update on the guidance is a reflection of the expectations from performance, commercial performance, and has nothing to do with channel dynamics or any initial performance.

ordering of inventory or anything like that. And then, Colleen, you want to take the next one? Yes, let me just add on the Astaris comment, though. Dennis, I think you also mentioned a beat to consensus. I think that was predominantly that consensus, you know, it was a first quarter, it was a partial quarter, and I don't think there was full recognition on how much revenue there would be. I might point you to our pro formas that were filed with which reflect in Q1, 2026 proforma revenue for Staris was about 25 million. And gross to net under our first quarter of ownership, again, it was partial quarter, about 50% of the quarter was running at about 74%. And we do expect that that will improve over time but not to the same degree of that step change that we achieved with Jornet.

So I hope that covered your comment about the beat to consensus. On net price for Nusenta, Dennis, I think the easiest way to think about it, and again, with this stabilized now, is if you look at branded net price for Nusenta IR, the AG where netting about 10 to 15% of that. And if you look at branded net price for ER, we are netting between 20 and 25% for the AG volume. And so I think that math works for what you just referenced, but I wanted to give you those two anchor points.

Perfect. Thanks so much. Our next question comes from Brandon Fultz with HC Wainwright. Please proceed with your question.

Hi, thanks for taking my questions and congrats on the quarter. Granted it's early, but can you provide any feedback that you're hearing from field reps and prescribers about the distinctions in selling both Astaris and Journée? Are prescribers comfortable with the difference? differentiation at this time? Or does it take a bit of discussion and sort of education in terms of where you are with your targets? And then any feedback from field reps that they are getting adequate time in front of those prescribers to detail both? and then the second one maybe just for Colleen. Can you just talk about SG&A spend for the rest of the year? you do have updated guidance there, so maybe just any changes in your prior guidance, you know, obviously looks disciplined in 2Q post-Historic Acquisition. Thank you.

Thanks, Brandon. Yes, so let me start out by providing some color on Astaris and Journée now being part of the same portfolio. And, you know, I think we discussed this during the acquisition and certainly at the announcement of the deal. Our initial research during diligence had already suggested that physicians were pretty comfortable saying, having had access to these two medicines over the past several years, physicians had already become comfortable knowing how to position these two medicines for appropriate patient types. And so, as I've said before, Jordan APM is appropriate for the patient that needs symptom control upon awakening, and effect that lasts throughout the day. And then of course, as we've discussed, Astaris provides more flexibility to the patient, especially those that are seeking rapid onset of action, and then having, you know, extended controls throughout the day. And in our discussions with physicians after the acquisition, with now the same rep positioning both medicines, that has continued to be validated. So I don't think that we have to, you know, provide any additional or different types of education.

I think we continue to reinforce the same message and the same value proposition for do individual medicines. And as far as your second question related to time, I mean, absolutely. We heard this right in the beginning, right after the deal closed when our field force, the combined field force was out there, we started to get more physician time already, be it in the form of more lunch appointments or other opportunities for discussing the value propositions of these two medicines. Certainly, we are now in a more advantaged position, especially as it relates to getting time both with the physicians as well as with the physician offices. So that is certainly something that we heard right off the bat after the deal closed and has continued. And I expect will continue throughout this important back-to-school season. So before I turn the next question to Colleen, I think I just want to go back and reinforce the fact that having these two important medicines, which are complementary to each other in the portfolio, is going to certainly have a...

important impact through this back-to-school season when we expect rapid growth for both medicines. So Colleen, take the second question. Great, Brendan. Good morning. On SG&A phasing, I would say we will have the expenses associated with Astaris in the back half of the year. We modestly increased our territory phasing footprint from 180 to 190 to support the addition of Astaris. As you think about SG&A level in totality, the second half of the year will be, I would say, mid to upper single digit higher than the first half of the year, accommodating the additional investment to support Astaris. And if I'm thinking about Q3 versus Q4, Q3 is a bit higher than Q4 given the back-to-school push and really the activities that support that. I hope that is helpful.

Very helpful. Thank you very much to you both. Thank you.

Our next question comes from David Anselm with Piper Sandler. Please proceed with your question.

Hi, good morning. This is Alex von Reisman on for David. Thanks for taking our question. Regarding capital deployment post-asteris, you've talked about rare disease in the past. You certainly have sizable infrastructure and ADHD. How are you thinking about the business and strategy now that you have a strong beachhead and ADHD? Is the goal to continue to leverage that infrastructure? infrastructure in psych, cast a wider net in psych, pivot to other therapeutic areas, or is it a pivot to rare disease? Maybe both are taking an opportunistic approach. Thank you.

Yep, thank you for the question. Look, as we have discussed before, we remain committed to executing on a disciplined capital deployment strategy, which is a combination of continuing to look for differentiated assets to bring into our portfolio, and as well as paying down our debt and strengthening our balance sheet, as well as returning capital to our shareholders in the form of opportunistic share repurchases. And that remains our strategy going forward. Specifically as it relates to business development, we have previously stated that, you know, diversifying beyond responsible pain management and having a beachhead in CNS through the the build out of our ADHD portfolio was an important strategy that was initiated back in 2024. We're well on our way executing on that strategy right now. And as we look ahead, we continue to look for other differentiated assets to bring into our portfolio. What we have previously stated as our criteria still remain the case.

Now that we have a strong presence in ADHD, we look for other assets either within ADHD or in adjacent areas within psychiatry or broader CNS. And then we have previously also that outside of these areas, we are open to considering opportunities within rare disease, primarily because of the dynamics of that category. These are medicines that are mostly commercial or just about to be commercial. We look for assets that are in the 300 to 500 million peak net sales range, which is a sweet spot for us. long IP, so long durability of revenues, and primarily in the US, given the existence of our commercial infrastructure and expertise. The other thing about rare disease is there's a significant amount of expertise within the management team here. And so that is an area where we will look opportunistically. So broadly speaking, our overall approach to business development remains the same.

And, you know, we look forward to continuing to keep you updated as we go.

We've reached the end of our question and answer session. I would now like to turn the floor back over to Vikram for closing comments.

Thank you everyone for joining the call this morning and for your continued interest in Collegium. We appreciate your time and we look forward to updating you on our progress. Enjoy the rest of your day. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

This live transcript is auto-generated without human intervention or review.

[Call has ended.]

Greetings, and welcome to the Collegium Pharmaceutical's First Quarter 2026 Earnings Conference Call. [Operator Instructions]

Please note that this conference call is being recorded. I'll now turn the call over to Ian Karp, Head of Investor Relations at Collegium. Thank you. You may now begin.

Great. Thanks so much, and welcome to Collegium Pharmaceutical's First Quarter 2026 Earnings Conference Call.

I'm joined today by Vikram Karnani, our President and Chief Executive Officer; Colleen Tupper, our Chief Financial Officer; and Scott Dreyer, our Chief Commercial Officer. Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.

You are cautioned that such forward-looking statements involve risks and uncertainties as 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. And with that, I'll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian. Good morning, everyone, and thank you for joining our first quarter 2026 earnings call. At Collegium, we are building a leading diversified biopharmaceutical company committed to improving the lives of people living with serious medical conditions. In the first quarter, we made meaningful progress on our 2026 strategic priorities and took an important step forward with the proposed acquisition of AZSTARYS, a differentiated commercial ADHD treatment for people 6 years and older.

The addition of AZSTARYS accelerates our growth trajectory by strengthening our position in ADHD, complementing JORNAY PM and extending revenues into the late 2030s. This strategic acquisition reinforces our long-standing commitment to improving patient care while delivering long-term shareholder value.

In the first quarter, we also made meaningful progress on our other 2026 strategic priorities, driving additional growth for JORNAY and continuing to enhance the durability of our pain portfolio. For JORNAY, we delivered continued strong growth across prescriptions, prescribers and market share. Prescriber adoption reached another all-time high this quarter, reflecting the positive impact of our sales and marketing investments.

We also delivered another solid quarter for our pain portfolio with total pain portfolio net revenues growing 4% year-over-year, driven by growth from both Belbuca and Xtampza ER. Steady cash flow generation from our pain portfolio continues to provide a strong financial foundation that supports our disciplined approach to capital deployment and business development. We are off to a strong start in 2026 and remain well positioned to continue executing against our strategy and deliver long-term value for our shareholders.

In the first quarter, we demonstrated strong execution across our entire portfolio. JORNAY prescriptions grew by 14% year-over-year and generated $38.9 million in net revenue, up 36% year-over-year. Our pain portfolio generated $154.6 million in net revenue, up 4% year-over-year, reinforcing our confidence in its continued durability. We achieved both top and bottom line growth with total net product revenues up 9% and adjusted EBITDA up 9% year-over-year.

In addition, we generated more than $57.1 million in cash from operations and ended the quarter with over $421.8 million in cash, up $35 million from the end of 2025. With a clear focus towards the future, we also successfully executed a key element of our capital deployment strategy, announcing the proposed acquisition of AZSTARYS in March. As mentioned, this acquisition will add a differentiated and highly complementary medicine to our existing portfolio, strengthening our position in ADHD. We believe AZSTARYS has significant future growth potential, and we plan to leverage our established commercial infrastructure and expertise to maximize its performance.

The acquisition is expected to strengthen our ADHD portfolio, broaden our revenue base, support margin expansion and extend the longevity of our portfolio with patent protection through December 2037. The required waiting period under the Hart-Scott-Rodino Act has now expired, and we remain on track to close in the second quarter of this year. Turning now to other recent corporate updates. In the first quarter, our partner, Hikma Pharmaceuticals, launched authorized generic versions of both Nucynta and Nucynta ER.

Our authorized generic agreement with Hikma supports our strategy to maximize the life cycle of our pain portfolio while maintaining patient access. This agreement provides us with a significant profit share, positioning us to compete effectively with potential third-party generics. In March, we launched our Embrace Your Sparkle campaign with Paris Hilton, who is treated with JORNAY to help manage her ADHD symptoms. This campaign aims to encourage broader understanding and open dialogues about ADHD.

Together, we are reframing common stereotypes and highlighting experiences that are often part of living with ADHD, including the importance of talking to a doctor and finding an individualized treatment plan. In February, we announced a new partnership with Boston Legacy Football Club, a member of the National Women's Soccer League.

Aligned with our commitment to healthier people, stronger communities, we are sponsoring a sensory room that will be available at every home game this season to help create an inclusive experience for all fans. In partnership with the organization known as Children and Adults with Attention-Deficit/Hyperactivity Disorder, also known as CHADD, we are designing this room to support comfort and regulation for fans who may need a break from the visual and auditory stimulation of a match day experience, helping ensure a positive and inclusive guest experience.

More recently, in April, we announced updates to our Board of Directors. Dr. John Fallon will retire from our Board at our Annual Meeting of Shareholders on May 14. We thank Dr. Fallon for his years of service to our company, Board and shareholders.

In addition, Michael Donovan has been nominated to join our Board, and his nomination will be presented for shareholder approval at the 2026 Annual Meeting. Mr. Donovan most recently served as an audit partner at Ernst & Young, where he has held several leadership roles. He brings financial expertise gained from over 36 years of extensive business, accounting and financial experience serving public and private companies in the life sciences industry.

Finally, we remain dedicated to our commitment to leading with science. In the first quarter, we presented real-world data highlighting our ADHD and responsible pain medicines at the American Professional Society of ADHD and Related Disorders and PainConnect. These are important meetings for scientific exchange, and it was encouraging to see our medicines highlighted. As we look ahead to the rest of the year, we remain focused on 3 key priorities. First, we will continue to drive growth for JORNAY.

In 2026, we expect to deliver $190 million to $200 million in revenue, an increase of 31% at the midpoint of our guidance range. As Scott will touch on later, we are seeing the positive impact of the sales and marketing investments we made in 2025 to raise awareness of JORNAY and drive growth. Second, we will continue to maximize the durability of our pain portfolio. Our pain medicines generate significant revenues and cash flows that will continue to support our future aspirations.

And third, we remain committed to executing our capital deployment strategy, which balances business development, debt repayment and opportunistic share repurchases. In the near term, we are focused on closing and then seamlessly integrating AZSTARYS into our product portfolio, further accelerating our growth trajectory and increasing our impact within the broader ADHD community.

We are confident that we can achieve our strategic priorities and remain well positioned for growth as we work to help improve the lives of patients and create long-term value for our shareholders. With that, I will turn it over to Scott to discuss commercial highlights.

Thanks, Vikram, and good morning, everyone. Our lead growth driver, JORNAY PM is off to a strong start to the year, building on the positive momentum we generated in 2025. In the first quarter of 2026, we grew prescriptions, prescribers and market share year-over-year. JORNAY is a highly differentiated medicine and the only ADHD stimulant with once-daily evening dosing that provides symptom control upon awakening through the afternoon and into the evening.

Many patients, including pediatrics, adolescents and adults, report challenges starting their day, which is an area of key differentiation for JORNAY as it's already starting to work when patients wake up in the morning. In addition to efficacy upon awakening, symptom control throughout the day is important for most patients because it can eliminate the need for an additional booster at school or work and JORNAY delivers efficacy that lasts throughout the day.

HCP perceptions of JORNAY are very positive and have gotten even better following enhanced commercial efforts. Based on new market research conducted in the first quarter of 2026, HCPs continue to give JORNAY a high favorability rating and rank JORNAY as the #1 branded ADHD medicine in terms of product differentiation with the score significantly higher than all other medicines in the same category.

In addition, 70% of surveyed HCPs indicate a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines. As we've previously highlighted, since acquiring JORNAY, we've made targeted investments strategically designed to increase awareness, specifically by increasing the size of our ADHD sales force and launching new digital marketing programs.

We're highly encouraged by the latest market research, which shows that HCP awareness of JORNAY has significantly improved since last year. Unaided recall among targeted HCPs increased to 67%, up from 52%, approaching the awareness levels of established brands like Vyvanse and Concerta. Patient and caregiver requests for JORNAY also increased, and market research shows that when a patient or caregiver specifically asks to try JORNAY, more than 70% of HCPs will honor that request. We were particularly pleased to see that Collegium was ranked #1 in reputation among pharmaceutical companies specializing in ADHD.

Health care providers rated Collegium sales representatives favorably, particularly in comparison to our competitors. And our messages around efficacy were seen as impactful and easily recalled. These results indicate that we're focused on the right messages and that our sales force is highly effective in delivering them. JORNAY continues to be the fastest-growing stimulant for the treatment of ADHD. In the first quarter of 2026, over 206,000 prescriptions were written, up 14% year-over-year. Importantly, we saw growth across both patient segments of the business, pediatrics and adults.

In the first quarter of 2026, the pediatric and adolescent segment, representing about 80% of total prescriptions grew 12% year-over-year. The adult segment, representing about 20% of total prescriptions grew 23% year-over-year. JORNAY's broad prescriber base also hit an all-time high of approximately 30,000 in the first quarter, up 17% year-over-year. We continue to see growth in new prescribers along with increases in depth of prescribing among our targeted physicians.

JORNAY's market share of the long-acting branded methylphenidate market grew to 26% this past quarter, up 5.8 percentage points year-over-year. In addition to increasing awareness among HCPs, caregivers and patients, 2026 growth opportunities include initiatives to increase depth of prescribing, improve patient persistency and deepen penetration in the adult market. Our research indicates that adult patients place greater importance on the need for morning efficacy than HCPs. We believe closing this perception gap between adult patients and their providers will help drive future prescription growth.

Turning now to the proposed acquisition of AZSTARYS, which represents a highly complementary and differentiated addition to our ADHD portfolio. Despite several different treatment options available today, many patients struggle to find the right individual treatment solution. Market research indicates that on average, ADHD patients try about 3 different ADHD medicines before finding the right treatment. One benefit of adding AZSTARYS to our ADHD portfolio is that it's complementary to JORNAY, and it meets the needs of a different patient type. For patients who need efficacy upon awakening in the morning and throughout the day without the need for a booster medicine in the afternoon, JORNAY represents a unique treatment option.

AZSTARYS is the first and only ADHD treatment with both fast and long-acting medicines in one capsule, providing patients with rapid efficacy about 30 minutes after they take it that lasts later into the evening. This is important because it offers flexibility for patients. For example, patients who may not have a consistent schedule and need rapid efficacy after they take their prescription in addition to duration of effect may be particularly drawn to AZSTARYS.

Based on this different profile compared to JORNAY, AZSTARYS usage is a bit more weighted towards adults than JORNAY, with about 1/3 of prescriptions in adults and roughly 2/3 in children and adolescents. HCP perceptions of AZSTARYS are also very positive. In the same new market research I noted earlier, health care professionals rated AZSTARYS high in terms of product differentiation and brand favorability.

Approximately 54% of HCPs indicated a strong intent to increase prescribing of AZSTARYS -- like JORNAY, we know that if a patient or caregiver specifically asked to try AZSTARYS, 70% of HCPs will honor that request. We're encouraged by these results, and it shows that perceptions of AZSTARYS are strong.

We're receiving highly positive feedback from prominent KOLs regarding the potential addition of AZSTARYS to the Collegium portfolio, particularly regarding the opportunity to bring 2 best-in-class products together, 2 methylphenidate treatments that address distinct patient needs. KOLs also view this as an opportunity and an important signal for Collegium's long-term commitment to advancing care in ADHD. Like JORNAY, we see opportunities to raise awareness among HCPs, patients and caregivers by leveraging our commercial expertise and infrastructure.

In summary, AZSTARYS is highly complementary to JORNAY, and both brands offer differentiated treatment options for different patient types in the stimulant segment of the market. The stimulant segment is large. In 2025, about 98 million stimulant prescriptions were written, and AZSTARYS and JORNAY each generated over 760,000 prescriptions. Given the differentiation of each brand and the size of the stimulant segment, we believe there's significant opportunity to increase market share moving forward. And importantly, the combination of both JORNAY and AZSTARYS into a single commercial organization will better serve the growing ADHD patient community and increase our standing among health care professionals.

For the remainder of the year, we'll focus on driving accelerated growth for JORNAY and seamlessly integrating AZSTARYS into our ADHD portfolio following the acquisition close. We continue to launch new marketing efforts aimed at raising awareness of JORNAY among health care providers, patients and caregivers. Earlier this year, we launched our Embrace Your Sparkle campaign with Paris Hilton to help encourage a broader understanding and open dialogue about ADHD. Finally, we remain committed to maintaining broad patient access for JORNAY.

As we announced earlier this year, we secured new formulary access under a major commercial health plan, which went into effect on May 1, increasing JORNAY's coverage for an estimated 4.5 million covered lives. Driven by these strategic investments and continued commercial execution, we're confident we can deliver significant prescription growth and achieve our JORNAY net revenue guidance.

Lastly, as we approach the expected close of the AZSTARYS acquisition, -- we're focused on rapidly integrating this medicine into our portfolio and leveraging our commercial infrastructure and capabilities to drive additional growth of the brand while generating meaningful operational efficiencies. We look forward to keeping you updated on our continued progress.

Turning now to our pain portfolio. Collegium is the leader in responsible pain management with a unique and differentiated portfolio of medicines. Belbuca, Xtampza ER and Nucynta ER collectively represent about half of the branded ER market. Our pain portfolio is highly differentiated with strong brand fundamentals.

Belbuca remains the only long-acting opioid medicine that uses buprenorphine buccal film technology. In market research, it was ranked as the #1 branded ER opioid in terms of differentiation and favorability. Similarly, Xtampza, the only extended-release oxycodone medicine that uses our proprietary best-in-class abuse-deterrent technology, DETERx, was ranked as the #1 ER oxycodone medicine in terms of differentiation and favorability.

In the first quarter, we delivered consistent performance in our pain portfolio, which continues to fuel the financial foundation of our business. We grew revenues for both Xtampza and Belbuca year-over-year, in line with our expectations. Revenues from the Nucynta franchise, including revenues associated with our authorized generics were stable, which was also in line with our expectations. As expected, prescriptions for all products were pressured by typical first quarter dynamics where deductibles reset and out-of-pocket costs increased for patients.

Overall, performance across the pain portfolio was positive, reinforcing our belief that the life cycle of these medicines may prove to be longer and more robust than is currently appreciated in the market. We remain committed to maximizing the revenue from our overall pain portfolio while maintaining broad payer coverage. In closing, our commercial team started the year strong, delivering solid performance across both ADHD and pain.

For the rest of the year, we'll concentrate on driving further growth for JORNAY, maximizing the value of the pain portfolio and seamlessly integrating AZSTARYS. I'll now hand the call over to Colleen to discuss financial highlights.

Thanks, Scott. Good morning, everyone. We are encouraged by our first quarter results, which reflect significant JORNAY PM growth, consistent pain portfolio performance and robust cash generation. Total net product revenues were $193.5 million in the quarter, up 9% year-over-year. JORNAY net revenue was $38.9 million in the quarter, up 36% year-over-year. It is important to note that JORNAY's year-over-year comparison is impacted by approximately $4 million of destocking that occurred in Q1 of 2025. This created a lower prior year comparator.

Belbuca net revenue was $52.6 million in the quarter, up 2% year-over-year. Xtampza ER net revenue was $50.8 million in the quarter, up 7% year-over-year. Total Nucynta franchise net revenue was $47 million in the quarter, flat year-over-year. This includes $2.7 million in revenue from the profit share on the authorized generic versions of Nucynta and Nucynta ER distributed by Hikma. GAAP operating expenses were $86.4 million in the quarter, up 14% year-over-year.

Non-GAAP adjusted operating expenses were $69.3 million in the quarter, up 11% year-over-year. The increase in operating expenses includes the targeted investments we made to drive JORNAY growth, including the expansion of our sales force and new marketing campaigns. As a reminder, 2026 results will include the full year impact of these investments. GAAP net income was $14.5 million in the quarter, up 500% year-over-year.

Non-GAAP adjusted EBITDA was $103.9 million in the quarter, up 9% year-over-year. GAAP earnings per share was $0.45 basic and $0.40 diluted in the quarter compared to $0.08 basic and $0.07 diluted in the prior year quarter. Non-GAAP adjusted earnings per share was $1.76 in the quarter compared to $1.49 in the prior year quarter. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. We generated operating cash flows of $57.1 million in the first quarter.

And as of March 31, 2026, we had $421.8 million in cash, cash equivalents and marketable securities, up $35.1 million from the end of 2025. Our strong financial position enabled us to continue to execute our capital deployment strategy and enter into an agreement to acquire AZSTARYS. As previously announced, we plan to acquire AZSTARYS for $650 million in cash. Corium shareholders may also be eligible for up to $135 million in potential additional payments contingent on future commercial and manufacturing milestones.

We plan to fund the acquisition through a combination of $350 million in cash on hand, a testament to the strength of our underlying business and $300 million from our delayed draw term loan. We estimate that our net debt to adjusted EBITDA will be approximately 2x following the close of the transaction and our future cash flows from operations will continue to support -- will support continued rapid delevering. Importantly, we expect the deal to be immediately accretive to adjusted EBITDA and estimate that AZSTARYS will generate over $50 million in pro forma net revenues in the second half of 2026.

We also expect to generate more than $50 million of cost synergies within 12 months following deal close based on our ability to leverage our existing ADHD commercial infrastructure. The addition of AZSTARYS is also expected to meaningfully extend our revenues through 2037 as AZSTARYS is protected by 6 Orange Book patents, most of which don't expire until December 2037. We are on track to close the acquisition in the second quarter of this year.

We are reaffirming our current 2026 financial guidance, which reflects our existing business, not including the impact of the proposed acquisition of AZSTARYS. We expect total product revenues in the range of $805 million to $825 million. This represents a 4% increase year-over-year, driven by JORNAY growth and durable revenues from our pain portfolio. We expect JORNAY revenue to be in the range of $190 million to $200 million, a 31% increase year-over-year.

We expect JORNAY gross-to-net to remain stable in 2026 in the mid-60% range. As a reminder, gross to nets tend to fluctuate on a quarterly basis, and we expect gross to net to be highest in the first quarter and higher in the first half of the year compared to the second half due to typical seasonal dynamics. We expect adjusted EBITDA in the range of $455 million to $475 million, up 1% year-over-year. We plan to provide updated 2026 financial guidance for the combined business, including AZSTARYS after the acquisition closes.

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 proposed acquisition of AZSTARYS is a result of our thoughtful and disciplined business development approach. We have a long track record of successful business development and a proven ability to rapidly integrate commercial products and accelerate their growth.

After closing the AZSTARYS acquisition, we estimate that our net debt to adjusted EBITDA will be approximately 2x, and we remain committed to rapidly delevering consistent with our capital deployment strategy. Finally, we continue to consider opportunistic share repurchases as an important tool to return value to shareholders. Since 2021, we have returned $222 million in value to shareholders and currently have $150 million remaining in the share repurchase program that has been authorized by our Board through December 31, 2026. I will now turn the call back to Vikram.

Thank you, Colleen. 2026 is off to an exciting start. We are focused on our strategic priorities of driving significant growth for JORNAY PM, maximizing the durability of our pain portfolio and executing on our capital deployment strategy, including closing and rapidly integrating AZSTARYS into our portfolio. The addition of AZSTARYS strengthens our ADHD portfolio, accelerates our growth trajectory and increases our top and bottom line potential.

This represents an important strategic step forward as we build a leading diversified biopharmaceutical company, create long-term value for our shareholders and deliver meaningfully differentiated medicines for patients. We are grateful to the patients who rely on our medicines, the health care professionals who care for them and our employees whose execution continues to drive our progress. I will now open up the call for questions. Operator?

[Operator Instructions]

Our first question today comes from the line of Brandon Folkes with H.C. Wainwright.

Congrats on a very good quarter. Maybe just 2 from me. Can you talk about once you bring AZSTARYS into the portfolio? How do you balance the focus on going deeper with both brands in the current 30,000 prescribers you called out on JORNAY? Are you looking to grow the breadth of prescribers once you bring in AZSTARYS?

And then can you just update us on your thinking in terms of positioning the 2 brands in the reps bag and in terms of prioritizing a reps call in front of a physician? How do you balance those 2 products? Is it different per physician? Just help us think through that.

Thanks, Brandon. Maybe I'll kick us off, and then I'll invite Scott to offer some more color. So it's important to remember that AZSTARYS and JORNAY are highly complementary to each other. And as a reminder, the reason for that is because they appeal to different patient types. right? I think in our prepared remarks, we mentioned that if a patient needs efficacy upon awakening in the morning, physicians think about JORNAY as the appropriate medicine for them.

However, if you are a patient that has less structured schedule, for example, and are more in need for rapid onset of action and that impact lasting throughout the day, AZSTARYS may be more appropriate for you. So at the core of our commercial strategy and our positioning is that important differentiation between those 2 medicines and the patient types. Maybe Scott can elaborate a little bit further on the go-to-market balance between having those 2 products in the same bag.

Yes. I think in terms of the positioning and the balance, one thing that's important to reinforce is there's also obviously a high overlap of physicians. So I mentioned the 30,000 prescribers for JORNAY. AZSTARYS in the first quarter had almost 26,000 prescribers and they're high overlap. So it's the same targets that we're going to. You asked if we're here to grow both, the answer is yes.

We're looking to grow products. And the positioning is very clear. The positioning is focused on the differentiated patient type that Vikram mentioned. At the physician level, we'll determine prioritization of order. But the biggest thing to take away is we will grow both products with a focus on those clear patient types. The other thing I'll just reinforce is the physician perceptions of both drugs are so strong.

So in my commentary, I mentioned JORNAY is #1 on product differentiation and favorability, high future intent to prescribe. AZSTARYS is ranked just a little bit below that, also very high on product favorability, differentiation, future intent to prescribe. So you put all that together, and it just puts us in a place to leverage the breadth of this portfolio and grow both brands going forward.

The next question is from the line of Les Sulewski with Truist.

This is Jeevan on for Les. Yes. So I was wondering if you could just describe how your success with JORNAY reads through to a similar trajectory for AZSTARYS. And also, how should we think about your longer-term strategy in ADHD versus maybe expanding into adjacent CNS or psychiatric complaints?

Yes. Thanks, Jeevan. Maybe Scott take the first one, and I can pick up the second one on future adjacencies.

Yes. No, it's a great question. Look, the first thing I want to reinforce is when you look at AZSTARYS Corium did a really good job launching the product, right? They got momentum going. They grew the brand. I mentioned prescribers, but with limited resources.

And so when I look at the overlaps of what we've done with JORNAY, part of this acquisition is the fact that we can effectively leverage our expertise, leverage the learnings, what we've done from both a physician and a consumer standpoint and our financial wherewithal to invest in AZSTARYS from here to grow. And that's the focal point of kind of what we'll do as we'll bring both brands together.

Yes. And I'll take the question on adjacencies. Look, as we've said before, our business development approach remains focused on acquiring commercial or commercial-ready medicines that are primarily in the areas where we already have made significant commercial investments. To the extent that, that is actionable and to the extent that there are differentiated medicines at the right profile, that would be an area of focus.

However, we are also aware of the fact that we are open to exploring other adjacent areas, both within CNS, but also outside of it. The bar is higher from a business development standpoint there. We want to make sure that we are acquiring assets that can be grown through efficient sales and marketing approach. And part of that is leveraging what we have or those areas that may not need significant investments in sales and marketing.

And we've talked previously about an example of that being rare disease. So our strategy remains unchanged in terms of how we are looking for further growth through further business development.

The next question is from the line of Dennis Ding with Jefferies.

This is [Anthea] on for Dennis. Congrats on the quarter. Two questions from us. One, we'll see early data from an orexin agonist in ADHD in the second half. So I'm just curious how you're framing readouts from that class of drugs?

And if you expect any impact to JORNAY or AZSTARYS? And then secondly, how should we think about the impact of the Nucynta AG and other generics over the next several quarters? I think IQVIA is showing 75% and 50% share of the branded still in ER and IR. Is that aligned with what you were expecting and what's contemplated in the guidance? And do you expect that to stabilize?

Thank you. I think if your first question, if I understood you correctly, was around the early data that you're seeing from a different class of medicines, look, I think there's a lot that still needs to be proven out. We look at the data. We're following the data. But until something -- until we have more information until these drugs are further along in their development programs, I don't think we would want to speculate or comment.

What we believe we have in the near future is our 2 potentially very differentiated medicines in AZSTARYS and JORNAY PM. And we look forward to continuing to drive growth for both products, as Scott said, within the ADHD community. And with that investment, that makes us one of the most committed organizations that are serving the ADHD community. Colleen, do you want to take the Nucynta question?

Yes, absolutely. On the Nucynta front, what I would say is our 2026 revenue guidance remains unchanged. The total revenue -- net revenue guidance of $805 million to $825 million contemplates the impact of the various generic dynamics. And thus far, we don't see anything that changes our expectations.

Our next question is from the line of Serge Belanger with Needham & Company.

First one regarding the ADHD portfolio. Can you remind us about access, whether both JORNAY and AZSTARYS will have comparable access once both products are under your control? And then secondly, regarding the pain portfolio, had a pretty nice performance over 1Q. I know that the scripts were down pretty significantly for a couple of products year-over-year. So just curious what drove the performance here? I know you took a price increase, but were there other factors that led to the better performance than expected?

Yes. I think on the ADHD portfolio, I think it's important to understand, both JORNAY as well as AZSTARYS are in a very good position from an overall payer coverage standpoint. So access is available to patients. And I think for us, from a forward-looking standpoint, we will -- we've always been committed to making sure that we provide or we support broader coverage, broader access and support patients via -- and reduce or try to help them control their out-of-pocket expenses with a good co-pay assistance program, and that will be our approach going forward. And on the pain products, the specifics on the financials, maybe Colleen take that question, please.

Absolutely. So for both Xtampza and Belbuca, as expected, Q1 dynamics were at play on the volume front. The year-over-year growth is driven by profitability improvements in line with our payer strategy, combination of the price increases and a little bit of gross to net benefit as well.

The next question is from the line of David Amsellem with Piper Sandler.

A couple for me. First, on the sales force for ADHD, can you just remind us what portion of ADHD prescribers or ADHD volumes your current sales organization covers? And then over time, what do you aspire to in terms of coverage of both prescribers and volumes? -- in terms of your commercial infrastructure for ADHD.

So that's number one. And then number two, as you look at JORNAY and maybe to a lesser extent, AZSTARYS, heavily weighted towards pediatric use. I guess over time, what's your view on the mix between peds and adults and where that could evolve to for both products, particularly JORNAY since it's been so heavily skewed towards the pediatric setting?

Yes. Thanks, David. Scott, maybe you want to take both and if you have any other commentary on that.

Yes, sure. So first, starting off with sales force. If you look at how we're currently structured, I think the main thing I want to reinforce is we size to effectively cover the market, right? So there's no piecemeal approach to our sizing. If you look right now, it's a pretty concentrated business.

So about 20,000 physicians cover 1/3 of all TRxs in the country, right? And so we go to about 25,000. That gives us about 60% coverage of the branded market. And that's exactly as optimal as we can do without going to white space and being inefficient. So we're sized right. Now as we bring in AZSTARYS, we're doing the work to figure out exactly any tweaks we'd make on the footprint. But the main thing I want you to know is we will optimally size to cover the market, and that's what we do now. Second, when it comes to JORNAY, what was the second question?

The second question was about the mix of adult and peds.

Yes. So mix of adults and peds. So the first thing is you look, they're both methylphenidate products, right, David. And so that market is about 70%, 30% peds. AZSTARYS leans a little bit more to adult, we think mostly driven by the profile of the drug and the fact that you take it and get 30-minute efficacy quick, it's a little more flexible dosing for flexible schedules. That pushes it a little more adult. For JORNAY in the 80-20 that we're at now, we do expect to continue to penetrate more into the adult market, which would drive a little bit of a mix difference.

And the primary driver of that is what I mentioned is this insight we have that there's a bit of a disconnect that adult patients, about 50% say they actually need efficacy immediately upon awaken, right? What JORNAY provides, you wake up, the drug is already working, and yet HCPs don't view that need as highly. And so we'll be leaning into that and expect that our growth will continue there. Overall, we're growing volume very well in both segments right now. So right, 14% in the first quarter. That was 12% year-over-year ped growth. That was 23% adult growth. So we're growing now, but we expect the mix to continue to shift.

At this time, this will conclude our question-and-answer session. I'll hand the floor back to Vikram for closing remarks.

Thank you. Thanks to everyone for joining our call, and hope you have a wonderful day and weekend.

Thank you. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation, and have a wonderful day.

Greetings, and welcome to the Collegium Pharmaceutical Investor Call.

[Operator Instructions]

Please note that this conference call is being recorded. I will now turn the call over to Ian Karp, Head of Investor Relations at Collegium. Thank you. You may begin.

Great. Thanks so much, and welcome to Collegium Pharmaceutical investor call to discuss the acquisition of AZSTARYS and all relevant corporate subsidiaries from Corium Therapeutics, which significantly expands our position in ADHD.

I'm joined today by Vikram Karnani, our Chief -- our President and Chief Executive Officer; Scott Dreyer, our Chief Commercial Officer; and Colleen Tupper, our Chief Financial Officer, who will be available for the Q&A portion of today's call.

Before we begin, 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 as detailed in the company's periodic reports filed with the SEC.

Our future results may differ materially from our current expectations discussed today. Our press release and this call will include discussion of certain non-GAAP information, and you can find the press release on our corporate website.

And with that, I'll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian, and thank you, everyone, for joining today's conference call. Over 10 years ago, Collegium began its journey in building a leading diversified biopharmaceutical company committed to improving the lives of people with serious medical conditions. Our strong financial position, consistent cash flow generation and steadfast commitment to patients allowed us to first build a leadership position in responsible pain management and then in 2024, expand our portfolio by acquiring JORNAY PM, a highly differentiated medicine for ADHD.

Today marks another important milestone in our company's evolution. It follows a very thoughtful and disciplined business development approach where we have been focusing our evaluation efforts on areas where we can leverage our existing commercial infrastructure and meaningfully enhance our growth profile. We have been particularly interested in adding differentiated commercial medicines that have exclusivity into the 2030s and beyond. This announcement represents an exciting strategic addition to our portfolio. one that accelerates our growth trajectory, while reinforcing our long-standing commitment to improving patient care and delivering shareholder value.

I'm pleased to provide additional context and outline the strategic rationale behind our acquisition of AZSTARYS, a differentiated ADHD treatment for people 6 years and older. Notably, adding a second commercial medicine to our ADHD portfolio will allow us to better support our most important stakeholder, the patient communities we serve each and every day who guide everything we do here at Collegium. The addition of AZSTARYS will significantly complement our existing ADHD medicine journey and upon close, will immediately contribute to Collegium's financial profile. Business development has been -- has long been a core component of Collegium's overall capital deployment strategy, and the addition of AZSTARYS represents a compelling strategic fit.

It is a focused and important step forward in Collegium's mission to building a leading diversified biopharmaceutical company. This acquisition immediately expands our position in ADHD with 2 highly differentiated and complementary medicines for the ADHD community. The addition of AZSTARYS will also allow us to leverage our existing ADHD commercial infrastructure, supporting operating leverage and future margin expansion, while also increasing our impact on the ADHD community and our target health care professionals.

It also further diversifies Collegium's revenue base beyond pain. While our pain medicines will continue to be an integral part of our overall business, we believe it is important for Collegium to further diversify its therapeutic focus. In addition to therapeutic diversification beyond pain, AZSTARYS is also expected to extend our future ADHD revenues into 2037, 5 years beyond JORNAY PM's expected loss of exclusivity date. This acquisition aligns extremely well with our previously communicated capital allocation strategy, one which balances portfolio expansion and diversification through business development, debt repayment and opportunistic share repurchases, all while remaining fiscally responsible stewards of our shareholders' capital.

In addition to the compelling strategic rationale for acquiring AZSTARYS, this transaction also provides important financial benefits to Collegium. We plan to acquire AZSTARYS and all relevant corporate subsidiaries from Corium for $650 million in cash. In addition, shareholders of Corium Therapeutics will be eligible for up to an additional $135 million in potential contingent payments should certain sales and/or regulatory milestones be achieved. We plan to fund this acquisition with a combination of cash on hand and $300 million from our delayed draw term loan, which was part of the syndicated financing facility announced in December 2025.

The significant portion coming from cash on hand is a testament to the strength of our underlying business and our robust cash generation. As a reminder, in 2025 alone, Collegium generated over $329 million in cash from operations, and we expect strong cash generation again in 2026 and beyond. The credit facility provides for favorable interest rate terms in a range of SOFR plus 275 to 375 basis points based on first lien net leverage. Our interest rate upon closing will be SOFR plus 325 basis points. We estimate that our net debt to adjusted EBITDA will be approximately 2x, following the close of the transaction and our future cash flows from operations will support continued rapid delevering.

The addition of AZSTARYS into our portfolio of marketed medicines will provide attractive commercial and financial benefits to Collegium. And importantly, the deal will be immediately accretive to our adjusted EBITDA. AZSTARYS generated over 760,000 prescriptions in 2025 and is viewed favorably by health care providers. Supported by our commercial ADHD infrastructure, we believe we can accelerate AZSTARYS growth profile, expanding topline revenues. Scott will talk more about this shortly, but there are shared key ADHD stakeholders, including HCPs, which will allow us to leverage operational efficiencies to accelerate future growth.

We believe our existing ADHD commercial infrastructure will allow us to achieve significant cost synergies, which we estimate could translate into more than $50 million of cost improvements within 12 months following deal close as compared to the expected stand-alone cost to commercialize AZSTARYS. The addition of AZSTARYS is also expected to meaningfully extend our ADHD revenues based on its 6 Orange Book patent listings, most of which expire in December 2037. Overall, we estimate that AZSTARYS will generate over $50 million in pro forma net revenues in the second half of 2026.

We expect our expanded ADHD portfolio, including both JORNAY and AZSTARYS to serve as our leading growth drivers going forward. We plan to update our overall financial guidance for 2026, including expectations for total revenues and adjusted EBITDA once the transaction has closed, which we expect will be in the second quarter. With that as an introduction, I'll now hand the call over to our Chief Commercial Officer, Scott Dreyer, to provide some additional insights into our future expanded ADHD portfolio. Scott?

Thanks, Vikram, and good morning, everyone. ADHD is a large and growing market, which Collegium first entered in 2024 following our acquisition of JORNAY PM. There are roughly 22 million patients in the U.S. across pediatrics, adolescents and adults with about 111 million prescriptions written in 2025. Prescriptions for ADHD have been growing at about 8% annually over the past 5 years, and we expect the market to continue to grow well into the future. The vast majority of prescriptions, nearly 90%, are for stimulant medications, which have long been used to treat ADHD based on their compelling and well-understood efficacy and safety profile.

The stimulant class of medicines includes amphetamines and methylphenidates. Both JORNAY and AZSTARYS are in the methylphenidate category. The most commonly prescribed medicines are generics, but both JORNAY and AZSTARYS represent differentiated important options for patients. In fact, each brand generated over 760,000 prescriptions in 2025, and we believe there is significant opportunity to increase their share of the market.

Despite a number of different treatment options available today, many patients continue to struggle to find the right individual treatment solution. Market research indicates that on average, ADHD patients try about 3 different ADHD medicines before finding the right treatment option. One benefit of adding AZSTARYS to our ADHD portfolio is that it's complementary to JORNAY, and it meets the needs of a different patient type. For patients who need efficacy upon awakening in the morning and throughout the day without the need for a booster medicine in the afternoon, JORNAY is a unique treatment option. It's the only ADHD stimulant that's taken at night and provides efficacy upon awakening and throughout the day. AZSTARYS is the first and only ADHD treatment with both fast and long-acting medicines in one capsule, providing patients with rapid efficacy that lasts later into the evening.

Each drug has a different profile and it can address the needs of different patient types. JORNAY and AZSTARYS first introduced in 2019 and 2021, respectively, are differentiated ADHD treatments that have established themselves as important options for patients. HCP perceptions of JORNAY and AZSTARYS are high. In recent market research from the first quarter of 2026, health care professionals rated JORNAY and AZSTARYS very high in terms of product differentiation, and they have very favorable perceptions of both brands.

In addition, 70% of HCPs indicated a strong intent to increase prescribing of JORNAY, which was the highest among all branded ADHD medicines and 53% indicated an intent to increase prescribing of AZSTARYS. We also know that if a patient or caregiver specifically asked to try JORNAY or AZSTARYS, 70% or more of HCPs will typically honor that request. JORNAY and AZSTARYS are highly complementary to one another. Importantly, their combination into a single commercial organization will help Collegium better serve the growing ADHD patient community and increases our standing among health care professionals. And while both medicines come from the same category of medicine, they are meaningfully differentiated from one another.

JORNAY has been developed with a dual delayed and extended-release technology. It's the only ADHD treatment taken at night and then released in the colon approximately 10 hours later, so that it's working upon awakening by the patient. The extended-release technology then provides a smooth and prolonged efficacy profile throughout the following day and into the evening. AZSTARYS works differently. It's the first and only ADHD treatment with both fast and long-acting medicines in one capsule. Its immediate release medicine allows for rapid efficacy, followed by a different extended-release profile, driven by the inclusion of a prodrug, which is converted to its active form over time.

Because of these different delivery profiles, physicians tell us that they most commonly prescribe JORNAY to patients who need efficacy upon awakening, while the primary patient type for AZSTARYS is for those requiring a rapid onset of action upon taking the medicine and a duration of efficacy that lasts throughout the day. As a result, the types of patients most frequently treated with these medicines differ. For example, roughly 80% of JORNAY use is in children and adolescents with 20% coming from adults. The distribution for AZSTARYS is a bit more weighted towards adults with about 1/3 of prescriptions in adults and roughly 2/3 in children and adolescents.

Importantly, the patient communities and prescribers are nearly identical for both medicines, which will allow for significant operational synergies. Both medicines have strong market access positions and comprehensive co-pay assistance programs, which are critically important to ensure as many patients as possible have access to these 2 treatment options. I couldn't be more excited for our commercial team to add AZSTARYS into our ADHD portfolio, and I look forward to keeping the investment community informed of our progress after we close the transaction and take ownership of this differentiated medicine.

With that, I'll pass things back to Vikram to provide a quick recap and some closing remarks before we open it up to questions. Vikram?

Thanks, Scott. As you have heard this morning, the acquisition of AZSTARYS represents an important strategic step forward for Collegium. It also closely aligns with the key business development objectives that we established for our organization. It adds a differentiated commercial stage asset to our portfolio, which further diversifies our revenue base and expands our position in ADHD with the ultimate goal of having a greater impact on the patient communities we serve. It provides significant immediate revenues, increasing, both our top and bottom line and accelerating the growth trajectory of our business. It extends revenues out to at least 2037.

It reflects both our commitment to investing in innovation as well as remaining financially disciplined, which is further reflected in our expectation that this acquisition will be immediately accretive to adjusted EBITDA with increased financial accretion expected, beginning in 2027. Our roadmap to create durable long-term shareholder value is clear and as evidenced by this morning's announcement is also actionable. We continue to execute against 3 strategic priorities, driving significant growth for JORNAY, maximizing the durability of our pain portfolio and deploying capital with discipline and intent. Business development has long been central to that capital allocation strategy. The acquisition of AZSTARYS represents another decisive step forward in our evolution toward becoming a leading diversified biopharmaceutical company.

This transaction grows our revenue base, enhances our earnings power, strengthens our cash flow generation and further diversifies our portfolio, positioning us to deliver sustainable value to shareholders today and well into the future. But most importantly, it brings a complementary medicine to our ADHD portfolio, allowing us to expand our impact on the ADHD community. Thank you for your continued interest in Collegium. We remain focused on executing our strategy, creating long-term value for shareholders and delivering for patients. We look forward to updating you on our progress in the quarters ahead.

And with that, we are happy to open up the call to your questions. Operator?

[Operator Instructions]

Our first questions come from the line of Dennis Ding with Jefferies.

We have 2. So number one, can you please disclose how much revenue AZSTARYS did in 2025? And I guess what are the inherent assumptions with your "in excess of $50 million" in second half revenue? And then question number two is just around scripts. When you look at scripts, they have seemed generally flat over the last 1.5 years or 2 years. Curious what you think that is and why do you think AZSTARYS is in better hands with you than with Corium?

Dennis, thanks for your question. I want to repeat the question just because the voice was a little bit muffled. Was your first question about what was AZSTARYS doing in terms of revenue under Corium?

Yes, that's right, in 2025.

Okay. So I'll start and maybe I'll invite Colleen to join as well. Corium Therapeutics is a privately held company. And as such, they do not or have not disclosed net revenue. And as you know, net revenue has significant variables that play into it, including gross to net and WACC and script growth and all of that. So what we have talked about and what we've done in our diligence, essentially has resulted in us making our statement that we expect to do greater than $50 million in the second half of 2026, assuming that deal closes in Q2.

But there is -- historically, Corium has not disclosed net revenue. Your second question was around script growth. Is that right? Okay. So your question was, it was flat in terms of script growth and where you expect us to maybe start driving growth. Maybe, Scott, can I invite you to answer that question?

No, thanks for the question. Look, first and foremost, I think what's most critical is the differentiation of the asset when you think about growth. When you look at the flattening of scripts, I'd say Corium did a good job launching this product, right? As a private company, they did it with limited resources. What we have the ability to do is leverage our resources, our commercial expertise, what we've done with JORNAY. As an example, they most recently have 100 representatives, and we have 180 representatives.

So when you combine our experience, our ability to invest and to leverage our scaled sales force and then the most important fact, the fact that what I shared in my comments that AZSTARYS is viewed differentiated favorably and over 50% of physicians intend to increase prescribing. With that kind of package, that's what gives us confidence that we can grow from here.

Our next questions come from the line of Les Sulewski with Truist.

Congrats on the transaction. So as you're thinking about growing out the AZSTARYS side, is there any potential to cannibalize some of the JORNAY progress? And then second, with the expansion of JORNAY sales force that you recently announced, and you noted that there's 100 reps on the Corium side. How do you think about the synergized headcount for -- to cover both of the assets?

Yes. Maybe I'll take the second question first, and then Scott, you can take the first one. As far as the cost synergies, we're working to evaluate all of the -- what appropriate resources were going to be needed to support the future growth and optimize the market opportunity. And we'll look forward to providing some more details and including updated guidance upon closing. Maybe, Scott, take the first one.

Yes. And to your question on cannibalization, Les, the answer very straightforward is no, right? When you look at the business, I'll reinforce, there's $100 million stimulants written in 2025. JORNAY and AZSTARYS both had 760,000. And so there's meaningful opportunity for them to grow, and they are different profiles, right? So just to reinforce, JORNAY is the product that when efficacy is needed upon awakening in the morning, given the night before, provides efficacy upon awakening and provides duration of effect. When you look at AZSTARYS' profile, AZSTARYS is about a product that can give you rapid efficacy within 30 minutes upon taking the product and then a duration of therapy.

So very different, not in a position to cannibalize each other. And when you talk to physicians, that's the primary way they think of the use of 2 of these products. So we're excited to have them both under our leadership to be able to maximize the potential of both assets.

Our next questions come from the line of Brandon Folkes with H.C. Wainwright.

Congratulations on the acquisition. Two for me. Maybe just on the contracting side, do you anticipate doing anything differently going forward now that you have 2 ADHD products in the bag? And then how do we think about your lead ADHD product going forward, granted hearing the differentiation and the non-cannibalization you talk about. But in front of a prescriber, what is your #1 drug you detail to them or you detail -- does that change to different prescribers?

Yes, Scott, go ahead.

So first, when it comes to contracting, look, I'm not going to get into contracting details right now. But what I would say is we're committed to broad access for both products, which they have right now. And the other thing is they both have co-pay programs right now that really help make sure that when a physician makes a choice to prescribe the product, it's written. And so we feel good about the market access situation. In terms of the deployment, I think the way I view that is, look, these are both assets meaningfully differentiated that we will put the muscle behind to promote.

So I don't actually think of it as a which is first or which is second. I think of it as we have a portfolio now of products that can meet the needs of different types of patients that are highly complementary. And so we'll put the promotional muscle behind both of them to reach their maximum potential.

Great. Maybe just one follow-up. Are you in a position to further elaborate on the regulatory milestones at this stage?

Brandon, could you repeat the question?

I think in your prepared remarks, you mentioned there are sales, but also regulatory milestones attached to the deal. Any color on those regulatory milestones?

I think we can provide more color upon closing, Brandon, but I would just counter that as, it's more related on to the manufacturing side of things.

Our next questions come from the line of David Amsellem with Piper Sandler.

So I hate to be the one to ask about other potential acquisitions when you literally just announced one. But I can't help but wonder just broadly how you're thinking about the business and strategy. So now you have a strong beachhead in the ADHD space and you're calling on psychiatrists. So is the goal to continue to further leverage that infrastructure in psychiatry, casting a wider net in psychiatry? Or is it a pivot to other therapeutic verticals, perhaps rare disease? Or maybe is it a bit of both and you're just going to take an opportunistic approach. Just wanted to get a sense of philosophically where your heads are at collectively given the announcement this morning.

Thanks, David. Yes, I think it's a great question. Our strategy -- go-forward strategy, when we think about business development, it still remains intact. Even historically, over the last several quarters, we have, I think, said that our strategy is focused on acquiring commercial or commercial-ready assets in our existing therapeutic areas where we can have significant synergies, so drive growth, but also be able to drive operating leverage. But at the same time, we have also been open to other areas, potential areas, especially ones that are capital efficient like rare disease.

On a go-forward basis, that strategy does not change. If anything, this acquisition further reinforces our strategy of driving meaningful growth through business development in the areas where we have already made significant investment. But we still remain open to other areas down the road, and they could be outside of psychiatry, could be outside of pain, but would need to be capital efficient. So at a high level, I would say that our go-forward strategy remains consistent with what we have stated before and what we have executed against today.

Okay. That's helpful. And just a quick follow-up on the sales force. So looking back historically at ADHD, namely Shire, I mean, their sales force supporting Vyvanse, of course, was quite large. I don't know the exact number, but it's certainly a good bit higher than what you have. So I guess my question here is just given the nature of promotion sensitivity and promotion intensity in the market and then given that you've got good exclusivity runway here for AZSTARYS, how do you think about periodic sales force expansions? And will you be taking, I guess, a stepwise approach to further headcount expansions over the next few years?

Yes. Thanks for the question, David. You're exactly right. We will always take a thoughtful approach on what is the most appropriate footprint to optimize our market opportunity. And with the addition of AZSTARYS, that obviously gives us a potentially significant opportunity to expand our offering for the ADHD community. Even prior to this announcement, as we have said before, even with just JORNAY PM, if we find that at some point in time, we needed to expand our footprint, we would do so. Our sizing of 180 representatives was driven by analytics and by the fact that we expected to call on more than 21,000 prescribers.

On a go-forward basis, we're now doing the work to assess exactly what that looks like to ensure that we can maximize the opportunity with both medicines in our portfolio. So upon closing, we will keep you updated on where that shakes out. But I think at the heart of it, the main message here is we have invested in supporting the ADHD community with JORNAY PM. We now have an opportunity to do that with the addition of AZSTARYS, and we will absolutely optimize our footprint to make sure we serve the needs of those patients appropriately.

Our next questions come from the line of Serge Belanger with Needham.

First one, can you just compare the margin and gross to nets of AZSTARYS and how they'll compare to JORNAY? And then secondly, regarding the valuation framework for this acquisition, when we compare it to JORNAY, which you acquired in 2024, this seems to be a little bit higher. JORNAY was a high-growth asset, at least based on prescription, AZSTARYS seems to be flattish. So maybe just give us a little more thoughts on the framework for the valuation. Maybe it's just an inflationary environment.

Thanks for the question, Serge. I'll take both of those. On the gross to net front, today, I cannot comment on AZSTARYS' gross to net profile. But what I will say is, as we noted, we expect in the second half of 2026, AZSTARYS to do $50 million or more in net sales. As a private company, you don't have visibility to their historical financial statements, and I don't have anything to provide you there. But what I can tell you is at close, we will provide you with updated guidance. And then following close, we will have obligations and we will prepare pro forma financial statements that will be retrospective.

So more information to come. We look forward to updating you upon close and thereafter, on the first question. On valuation, what I would say is while we're not going to disclose details of the valuation process, we do believe the deal is a fair value for AZSTARYS and positions Collegium to drive substantial returns. I would note importantly that AZSTARYS has the expected exclusivity to December 2037, is meaningfully longer than the JORNAY LOE expected in March of 2032. In addition, our upfront consideration includes a reimbursement for a buyout of the future royalty obligations on that asset. So it is unencumbered from a royalty perspective.

We have reached the end of our question-and-answer session. I would now like to hand the call back over to Vikram Karnani for closing remarks.

Thank you. As you have heard this morning, the acquisition of AZSTARYS represents a very important strategic step forward for Collegium. It also closely aligns with our key business development objectives that we established for our organization. We look forward to keeping you updated as we move towards closing in Q2 of 2026. Have a great rest of the day, everyone. Thank you.

Thank you, ladies and gentlemen. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Good morning, everyone, and thank you for joining us at the Barclays Miami conference. My name is Jenna Davidner. I'm one of the analysts here on the specialty pharmaceuticals team, and I have the pleasure of hosting Collegium Pharmaceuticals. Representing the company is the CEO, Vikram Karnani; on his -- on my left in the middle is the CFO, Colleen Tupper; and down on the end is the company's Chief Commercial Officer, Scott Dreyer. So maybe to level set the conversation, Vikram it's been a big year. You are a more recent addition, new CEO. You guys made an acquisition towards the end of 2024, bringing in a new growth asset, diversifying the top line. Maybe you can just, first of all, give us a brief overview of the company and walk us through 2025, maybe how you performed better or worse than you expected. There's a couple of guidance raises throughout the year.

Yes. Thanks, Jenna. Great to be here. Thanks for having us. 2025 was a tremendous year for us. It was a record-breaking year. We had record net revenues, record adjusted EBITDA, a solid year of growth, but also hitting on all of our strategic priorities. At the beginning of last year, we had laid out 3 of our top priorities, and one of them was accelerating the growth of Jornay which we did very successfully. Jornay PM grew 48.9% year-over-year, marking a significant period of growth for the brand, especially in its sixth year on the market.

The second priority was to continue to maximize the durability of our pain franchise. And that franchise also delivered 6% growth year-over-year. Again, these are products that have been on the market for some time. And the company found -- has continued to find a way to drive growth and actually generate a significant amount of cash from that business. And number three was we committed to disciplined capital deployment. At the end of last year, we strengthened our balance sheet. We had a new credit facility that was signed that Colleen can go into some more detail later here. And as you said, we raised guidance twice last year and most recently in November. So throughout the year, we set expectations, we beat them, we raised expectations, we beat them again, and it was thanks to the tremendous performance by the team.

Awesome. And let's talk about the individual products for a few minutes, and then we'll wrap it up with how this ties into guidance. So starting with Jornay. And as you mentioned, I think at the start of the year, you had guided to 30% -- 35% pro forma. You finished much closer to 50%. Can you break that performance down between the volume growth and maybe any pricing impacts that you saw throughout the year that benefited the top line.

Yes. So Jornay beat the growth -- on Jornay PM, as you rightly suggested, we have -- we grew both volume as well as net price. Volume growth was substantial. It was in 20% year-over-year. We -- over the course of the year, we continued to put in place commercial initiatives, and Scott can go into those details in a bit. But everything from sales force expansion to new marketing programs to -- that were timed for the back-to-school season, which is really important time of the year for Jornay and for the ADHD market in general. That volume growth was complemented by some benefits on the gross to net side of things as well, which put together gave us a really strong start to Jornay PM within the control and ownership of Collegium.

And just before we move to 2026, can you also give investors an overview of what attracted you to this asset?

Yes. I mean I can -- maybe I'll kick that off, but I would love for Scott and Colleen to jump also into it. If you take a step back and think about -- we've talked about what type of assets are within our strike zone, if you will, from a business development standpoint. Jornay PM hit every single one of them, right? It's a commercial asset. It's in a market that still has unmet need. It's a differentiated asset that brings something meaningful to patients, i.e., there is demand for it. It's primarily in the U.S. where we have a strong footprint. It allowed us to diversify into a new area beyond pain. And frankly, it was a brand that needed some more commercial firepower behind it. And that is something that we could do something about given our commercial execution over the years. So maybe, Scott, if you want to jump in and talk a little bit about a lot of that initial diligence was done prior to my joining the company.

Yes. I think a double click on the differentiation is key. So large market, ADHD is a growing market, right, a lot of products, a lot of options. And so Jornay in that sea of options is the only single medication that's dosed once at night in the evening. That was [indiscernible] that meets a real unmet need, which is efficacy upon awaken in the morning. Many children and many adults have the need for that, and it gave us the only product that you could dose works upon awakening, which was a huge opportunity that we thought we could leverage because there was room for investment.

So our 2 focal points were raising awareness among physicians and among patients and caregivers. And so we made significant investments. We've seen awareness among physicians go up based on the expansion of our sales force and more digital marketing. And then for patients and caregivers, they had no idea that Jornay was available. And so the programs you've seen us put out there are to raise that awareness and the response has been really strong.

And while I have you, Scott, when you brought Jornay into the fold, can you remind us what the sales infrastructure you acquired, how you've expanded that, where those reps are in productivity? And then I'll have a couple of follow-ups.

Yes. So we acquired the brand with 125 sales representatives. We moved to 180. With that, we were able to expand the target universe from 17,000 to 21,000. So we got both greater breadth of customers and more frequency against those customers, all designed to raise awareness and adoption. And we're really happy with what we're seeing. I think a couple of anchor points of that are, number one, if you look at those 4,000 physician targets we added, almost all of them have written a prescription now. Most of them an increase in depth as well. And so greater reach and frequency, seeing a good response in terms of prescribing and now our focus is [ deprescribing ].

And you also announced a partnership with Paris Hilton, which is pretty interesting. And I've seen some stuff about that in the media. Just would love to get your take on the strategy and when you expect that could maybe have more of a top line impact?

I think that's a great initiative that's complementary to our overall goal of raising awareness, right? So Paris Hilton was never diagnosed as a child, misdiagnosed, then was diagnosed, struggled to find the right ADHD medicine and actually ended up on Jornay PM. Ironically, she's been an advocate for the ADHD community long before that. And so we saw it as a great opportunity to take someone who's been a vocal advocate for the needs of patients with ADHD, had a great experience with Jornay and has over 27 million followers who listen to what she has to say. And so all designed to raise awareness. That one leans a little bit more toward the adult community on the impact that Jornay can have for someone with ADHD.

Awesome. And I'll have Colleen tie this together with the outlook. So 2025, the first year -- first full year of the product, better than expected. The commercial investments are going great. And you gave your 2026 guidance that came in ahead of even what people were thinking with very strong 30%-plus growth at the midpoint. So just given this conversation, can you layer in what -- how the commercial side, pricing volume impact, like what gives you the confidence? And what are the key pieces to that 30% growth?

Yes. For Jornay PM, our guide this year, as you know, is $190 million to $200 million, 31% up at the midpoint. That is really going to be driven by demand. It's really prescriptions that are driving that growth this year, and that's the pull-through of all those investments and the increased awareness. In 2025, while the performance was a mix of gross to net improvement and demand growth in '26, it will really be on the demand side. We ended full year 2025 with about 64% gross to net, and we expect going forward, there will be stability in the mid-60% range.

Awesome. So now let's shift gears into the pain portfolio, and I'll start with Xtampza and Belbuca. So in 2025, both of these products grew year-over-year. There is maybe some different volume dynamics between the 2 pricing dynamics. So maybe, Colleen, if you wanted to just give us the overview of how those products trended last year, and then we'll focus on 2026 after.

Absolutely. So for the pain portfolio across all 3 brands, Nucynta, Xtampza and Belbuca, we had low to mid-single-digit growth on all the brands. That was a combination of, I would say, stable to regrowth on the demand side and -- but predominantly pricing. We have set out the past few years with a really firm payer strategy, whereby depending on which brand is in its life cycle that we were looking to improve profitability. And so that helped fuel the growth we had last year. For Xtampza and Belbuca specifically, what you saw on the volume side at the start of the year, which was a bit of a pullback, and that was a result of one formulary losing that formulary position for both of those brands. So as you saw in the beginning of the year, while it was a positive revenue impact, you had a volume decline and then you saw those brands stabilize and then start to return to slight growth at the end of the year.

And I think a good theme with the pain portfolio is durability, just given there's -- and we'll focus on some of the LOE, and we're going to ask some more Nucynta specific questions as it relates to 2026. But it's -- given all the moving pieces, it feels like a durable, stable, strong cash flow generating portfolio. And so just talk about 2026, if you pull out the Jornay PM guidance, it kind of implies core pain is down in the low single-digit range. And there's going to be some implications on Nucynta, which we'll get to next. But compared to the overall low single digit, what are you thinking for the trajectory of Belbuca and Xtampza this year in relation to that?

You're going to see for Xtampza and Belbuca stability to a low grower and really that overall pullback in the pain portfolio guide when you back out Jornay relates to the dynamics for Nucynta for the remainder of the brand in that portfolio. You see a stability to slow grower. It will still be a combination of demand as well as price.

Awesome. And then for Nucynta, there's generic competition coming in -- well, now it is the first quarter, but I think it would be helpful to just lay out because there's a few different time lines, there are different players involved. Can you just update us on the Hikma relationship and maybe if the trajectory is potentially more stable just given the AG partnership and the economics you get?

Yes. Well, first off, for a variety of reasons across the entirety of the pain portfolio, I think we're going to see even upon generic entry that we have a longer and more robust tail. The exact dynamics of that and what the impact is will vary. Specifically for Nucynta, if you recall in 2024, we announced an authorized generic agreement with Hikma. We chose them as our partner there so that we could give more certainty to the market as well as to our own planning on what would the dynamics be when a generic was to enter the market. We have very favorable economics in that agreement with the tiered profit share that starts in very high.

And what has recently transpired or is about to transpire is for Nucynta ER, Hikma imminently will launch this quarter, their authorized generic version of Nucynta ER. The next potential player to come in, in that space, we expect is Teva, if they so choose to in July of 2027 and then Alkem in 2028 because they did not adopt the skinny label. So with ER, you're going to see an authorized generic branded market for some time. On the Nucynta IR front, we recently announced that Hikma launched the authorized generic version of the immediate release as well as a small player has announced that they have final approval for their generic version of Nucynta.

In the IR product specifically, there were a few other players, the ones that I mentioned and a few others that could launch to date, none of them have final approval beyond the single entity that I mentioned. And we believe, based on our canvassing of the intelligence out there and our scoring on the manufacturing situation that all of them are somewhat limited in their ability to have commercial scale. And so while they may choose to come in, we believe their ability to compete will be limited.

And I know you mentioned Teva, and I want to focus on them a little bit because they're somewhat involved on each of these products related to settlements and so forth. So you mentioned Teva has a settlement for July. You talked about some of the manufacturing and the planning and what activity you're seeing. And so I was just curious if for Teva specifically, what you're seeing out of them in terms of their motivation on generic Nucynta?

Certainly, and maybe I'll speak across the entirety of the pain portfolio because I think the answer is the same across our portfolio. I can't speak for exactly what Teva will choose to do. For Xtampza, there is a settlement for September of 2033, for Nucynta July of 2027 and Belbuca in '27 as well in January. What we have seen over the past few years, obviously, is a shift in strategy that does not seem to align with launching additional opioids that are and/or any branded products that are not in the top 1/3 of the marketplace already. So there, I think, is a strategic decision to be made. There has been no activity on either Nucynta or Belbuca, i.e., getting tentative approval. And for Belbuca specifically, we know that they have relinquished first filer exclusivity. Another data point we watch and the market could watch as well is IQVIA. They have all but pulled away from distribution of oxycodone IR. And so there are a number of market signals that seem to question whether or not they'll choose to enter.

And the reason that we're focusing on this is with Belbuca in their 2020 settlement and thinking about Teva's motivation or lack thereof, what is the next Belbuca generic settlement beyond what Teva has?

Yes, that's a great question. There are no other settlements. But at the time that the agreement between the predecessor company, BDSI and Teva was entered into January 2027 was a 6-month advance of the then latest expiring patent. Since that time, patents have been registered for December of 2032. So beyond Teva, there's been 2 other ANDA filers. Alvogen and Chemo have been fully litigated on invalidity and BDSI, the predecessor company prevailed. And so there is a bar in the market until December 2032 currently for that. Chemo is pursuing noninfringement on their own. But to date, they have not been successful in producing an equivalent product. They've had 5 CRLs. If they do succeed in the future, we feel pretty strongly about our IP case. The litigation process would we start.

And maybe this one is for Scott. So in terms of how you're investing in these core pain products, specifically Belbuca, like what's your strategy for investing in this product as it relates to some of these different LOE time lines?

I think for the pain portfolio, the biggest investment we have is our field force, right? And it's a very efficient investment. So as the pain market has shrunk, targeted physicians are about 11,000 pain specialists that we call on. And so we do that with a field force of 95 people. So you take that sales force combined with some awareness marketing and mostly patient support resources when someone gets on the product, whether Belbuca, Xtampza or Nucynta, and that's the package that we have in place that we think efficiently commercializes the products the right way.

Awesome. So we've talked about Jornay, we talked about pain. Let's tie this together with the full year 2026 outlook. And it's worth just commenting again on, obviously, Jornay is a new growth driver, diversifying the business, but it's not lost on us how durable this pain -- more mature pain business is, the cash flow generation, your EBITDA margin profile and how that's enabled you to keep your leverage low despite doing an acquisition. So all these pieces together, can you just remind us what the outlook for 2026 is, what gives you confidence in the top line and maybe some of the investments and spending on Jornay and pain, how that will flow through into your EBITDA margin profile?

Great. So as a reminder, for overall total revenue, we're guiding $805 million to $825 million this year, which is up 4%, predominantly driven by that Jornay growth. The guide is $190 million to $200 million, up 31% year-over-year. Falling to the bottom line, we are guiding $455 million to $475 million. So this is a business, especially with the pain portfolio and how much efficiency and leverage we're able to get there that generates significant cash flow. We had a full year free cash flow of over $325 million last year, and that continues to grow. And as noted previously, on the top line, it's really driven by demand growth for Jornay, stability across pain with a bit of compression on Nucynta due to the market events this year. And our bottom line is stable year-over-year, which accounts for the investments we started to make in Jornay last year and then a full year impact.

Awesome. And then on capital allocation, which will probably be split between Vikram and Colleen, can you guys just refresh us on your overall capital allocation priorities? There's been a nice combination of share repurchase over the years. You've done deals. I know you've talked about different parameters and things that you would look at in a potential asset. You did a refinancing. So whoever wants to start, maybe we can talk about those pieces.

Yes. Happy to start. And if you take a step back and think about our capital allocation priorities, we look at it in 3 different ways. Number one is looking to continue to diversify our portfolio, add new products via business development, as you rightfully said, opportunistically repurchasing shares and returning value to our shareholders. And number three is paying down debt and strengthening the balance sheet. In terms of the first one in business development, I think our strategy there has not changed dramatically. We still look for -- we're looking for commercial or commercial ready assets that are primarily marketed in the U.S. given our footprint. We look for assets in the $300 million to $500 million peak net sales potential and LOEs into the 2030s and beyond so that we have longevity of revenues.

As far as therapeutic areas is concerned, we look for assets that have synergistic value with our existing footprint. So pain specialists and within ADHD, psychiatrists and pediatricians. We've made a significant investment in those areas, and we look for -- primarily look for assets that can be synergistically deployed in one of those or multiple specialties. Probably the only exception where if we step outside of those names would be those areas where we can be highly capital efficient. What I mean by that is where the cost to commercialize is not prohibitive, right? So for -- an example of that would be rare disease, where your cost of commercialization is low, and it also fits those criteria that I laid out previously.

And I think the last thing on business development would be the size of the transaction. We previously said that we're comfortable levering up to 3x net debt over EBITDA. We finished last year just under 1x. So that -- if you look at our EBITDA, if you look at 2 additional turns, it gives you a sense of what type of transaction we're looking at up to $1 billion with -- just given the strength of our balance sheet. And maybe, Colleen, if you can touch on the refinancing that we did at the end of last year, please?

Sure. So we moved our term loan facility out of private lending into a syndicated bank group. We were able to achieve much significant cost of capital reduction. Our interest rate is SOFR plus 2.75% right now. So we were able to shave more than 200 basis points off. We also have more flexibility with a delayed draw in a revolver as well as the ability to prepay all or some at any point in time.

Awesome. And just to give you guys the last word and close out, it's very clear you have a new attractive growth asset. It diversifies the top line. You have a very durable pain business with some potential upside on some of these LOEs. And it's just taking these things together. And maybe you can also comment on some of the macro situations in the Middle East and anything like that. But just overall, the stock trades in a more distressed type of LOE situation. So I'm just curious to hear your thoughts and tie all this together on what maybe people are not appreciating enough about how Collegium has transitioned and diversified while also maintaining a very durable pain portfolio?

It's a great question. Look, I think we've -- as you said, we've got a very strong portfolio of products. We have a growth driver in Jornay, which we have demonstrated significant growth beyond expectations already in the first year. We have a durable pain franchise for all of the reasons that Colleen went through. And I think as time progresses, that will probably become a bit more apparent to investors and shareholders alike. So there's more upside to be had there. And finally, I think we continue to look for ways to expand our portfolio, diversify further on the strength of a very strong balance sheet. And as far as the dynamics in the Middle East are concerned, I think the only point I'd make there is, given the nature of our business, given that our supply chain is largely contained within the U.S., our customer base is fully within the U.S. We are largely immune and relatively unaffected by things that are happening at the macro scale.

Awesome. Thank you so much.

Thank you.

Thank you.

Greetings. Welcome to the Collegium Pharmaceutical Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] Please note, this conference call is being recorded.

I'll now turn the call over to Ian Karp, Head of Investor Relations at Collegium. Thank you. You may now begin.

Great. Thanks. Welcome to Collegium Pharmaceuticals Fourth Quarter and Full Year 2025 Earnings Conference Call. I'm joined today by Vikram Karnani, our President and Chief Executive Officer; Colleen Tupper, our Chief Financial Officer; and Scott Dreyer, our Chief Commercial Officer.

Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.

You are cautioned that such forward-looking statements involve risks and uncertainties as detailed in the company's perioding statements -- 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.

And with that, I'll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian. Good morning, everyone, and thank you for joining our fourth quarter and full year 2025 earnings call. 2025 was a year of transformative growth for Collegium. We delivered robust financial results due to strong commercial execution and deployed capital strategically to support long-term value creation.

Importantly, we made meaningful progress on our 3 strategic priorities, which include driving significant growth for Jornay PM, maximizing the durability of our pain portfolio and strategically deploying capital to further enhance shareholder value.

In the fourth quarter, we saw continued momentum for Jornay among prescribers and across our key patient populations, including pediatrics, adolescents and adults. We were encouraged to see that once again, total Jornay PM prescribers reached an all-time high in the quarter, which is particularly impressive given that Jornay first launched more than 6 years ago.

This growth was supported by a strong back-to-school season, which began in Q3 as well as the positive impact from recent sales and marketing investments made throughout the year.

In parallel, our pain portfolio continued to drive significant revenues with meaningful year-over-year growth in the fourth quarter. The continued performance of our pain portfolio enabled us to achieve record levels of both full year total revenues and adjusted EBITDA, while generating significant cash flows to fuel our capital deployment strategy.

Our dedication to patients and the communities we serve drives us every day, and it is the foundation of our success. And with our achievements comes a significant opportunity and responsibility to further support patients and give back to our communities.

Yesterday, we published our 2025 ESG report, which highlights the various ways we demonstrate our ongoing commitment to doing good as we do well. I encourage you to view this report now available on our corporate website. I want to thank the entire Collegium team for their enduring commitment to operating with integrity and empathy as we deliver on our strategic priorities and serve patients who are at the forefront of everything we do.

In 2025, we achieved record top and bottom line results, growing full year net revenues by 24% and adjusted EBITDA by 15%. Strong execution across the enterprise enabled us to achieve our annual financial guidance.

In our first full year of Jornay ownership, we drove significant growth in both prescriptions and revenue. Jornay prescriptions grew by 20% year-over-year and generated $148.9 million in net revenue, up 48% compared to pro forma 2024 revenue.

Our pain portfolio generated $631.7 million in 2025, up 6% year-over-year, with all 3 of our core pain medicines delivering full year growth.

The continued solid performance of our pain portfolio further reinforces our belief that these revenues will prove to be durable in the years ahead. In addition, we generated more than $329 million in cash from operations in 2025 and ended the year with over $386 million in cash, up approximately $224 million from the end of 2024.

Our net leverage ratio is now less than 1x, which was an ambitious target we set for ourselves earlier in 2025. Finally, we made great progress executing our capital deployment strategy.

In December, we announced the closing of a $980 million syndicated credit facility, which significantly improves our interest rate and debt terms and provides additional flexibility as we continue to seek opportunities to expand and diversify our portfolio through BD.

The successful closing of our syndicated -- our first syndicated credit facility reflects the strength of our financial outlook and demonstrates our commitment to maintaining a strong balance sheet. Earlier in the year, we repurchased $25 million in shares through our share repurchase program, reinforcing the importance of repurchases as an important component of our capital deployment strategy.

Turning now to recent corporate updates. In keeping with our strategy of maximizing the life cycle of our pain portfolio and ensuring our medicines remain accessible to patients, in January, we announced supply and quality agreements with Hikma Pharmaceuticals in connection with our authorized generic agreement for Nucynta and Nucynta ER that was previously announced in 2024.

This allows Hikma to launch authorized generics of the Nucynta products. Hikma recently launched an authorized generic of Nucynta and is expected to launch Nucynta ER in Q1 2026.

Our AG agreement provides us with significant profit share, positioning us to maximize the value of the Nucynta franchise and compete effectively with third-party generics. We also continued to strengthen the clinical evidence supporting our portfolio, completing 4 real-world evidence studies for Jornay PM and 3 across our pain portfolio, generating meaningful new insights for health care professionals.

We also supported investigator-initiated studies evaluating Jornay PM in adults and in patients with comorbid psychiatric conditions, helping to expand understanding in patient populations of growing clinical interest.

As we enter 2026, we remain focused on our top 3 priorities mentioned before, with the ultimate goal of improving the lives of patients and driving near- and long-term value creation for our shareholders.

First, we will build upon the progress we made in driving growth for Jornay. In 2025, we accelerated Jornay growth trajectory, delivering 20% growth in prescriptions and 48% growth in net revenue compared to pro forma 2024.

As expected, we are starting to see the tangible benefits from the sales and marketing investments we made in 2025 to raise awareness of Jornay. These efforts included expanding our ADHD sales force and launching new commercial initiatives, which we expect will continue to drive momentum throughout 2026.

As reflected in our 2026 guidance, we expect Jornay revenue of $190 million to $200 million, representing more than 30% annual growth.

Second, we will continue to maximize the durability of our pain portfolio. In 2025, our pain medicines delivered 6% growth in revenues and generated robust cash flows that enable us to further invest in our business and support our capital deployment strategy.

And third, we remain committed to disciplined capital deployment. Our approach balances portfolio expansion and diversification through business development, debt repayment and opportunistic share repurchases.

Our new syndicated credit facility provides additional flexibility to further drive long-term value creation as we work to expand and diversify our portfolio of differentiated medicines.

With our proven history of delivering results, we are well positioned for near- and long-term growth in 2026 and beyond. Our pain portfolio provides a strong financial foundation from which we continue to invest in our business. That foundation is bolstered by Jornay, a differentiated medicine with headroom for further meaningful growth, and that provides an anchor in neuropsychiatry and pediatrics from which we can continue to expand our portfolio.

Our track record of successful business development, including our proven ability to rapidly integrate and invest behind newly acquired assets, provides a pathway for long-term value creation.

And with that, I will now turn it over to Scott to discuss commercial highlights.

Thanks, Vikram, and good morning, everyone. Jornay PM continue to perform well in the fourth quarter as we leverage the momentum created in the third quarter and maximize the opportunity during back-to-school season.

During the fourth quarter, we grew prescriptions, prescribers and market share. Backed by strong brand differentiation and HCP perceptions, coupled with the growth trajectories just mentioned and our ongoing commercial investments, we're well positioned to drive additional growth for Jornay again this year. Jornay is a highly differentiated medicine and the only ADHD stimulant with once-daily evening dosing that provides symptom control upon awakening through the afternoon and into the evening.

Many patients, including pediatrics, adolescents and adults, report challenges starting their day, which is an area of key differentiation for Jornay as it begins working when patients wake up in the morning. In addition to efficacy upon awakening, symptom control throughout the day is important for most patients because it can eliminate the need for an additional booster at school or work.

And Jornay delivers efficacy that lasts throughout the day. HCP perceptions of Jornay continue to be highly positive. In market research, health care professionals rated Jornay as the #1 ADHD brand in terms of product differentiation with a score that was more than double that of all other medicines in the same category.

In addition, over 60% of HCPs indicated a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines. We also know that if a patient or caregiver specifically asks to try Jornay, physicians typically honor that request. Our commercial team remains focused on increasing awareness of Jornay's unique and differentiated profile to further drive utilization, and we see opportunities to drive additional growth moving forward.

In addition to raising awareness among HCPs, caregivers and patients, other opportunities include initiatives to extend persistency and actions to further penetrate the adult market. Jornay was the fastest-growing stimulant for the treatment of ADHD in the fourth quarter and full year 2025, delivering record prescriptions in both the quarter and the year.

In the fourth quarter, over 200,000 prescriptions were written, up 16% year-over-year and over 760,000 prescriptions were written in 2025, up 20% year-over-year. This performance reflects strong commercial execution throughout the year, including the critical back-to-school season as well as early impact from the new sales and marketing investments we made in 2025.

Our expanded ADHD sales force and new marketing campaigns were strategically in place ahead of the back-to-school season to maximize the opportunity during this time, and we continue to see their impact on prescriptions extending into the fourth quarter.

In December, average weekly prescriptions were up to approximately 16,600 compared to 13,800 in July, an increase of 20%. We're excited to see that this momentum continued into January with average weekly prescriptions of approximately 16,800, which was particularly encouraging given the typical Q1 dynamics where there is seasonal pressure on volume due to annual deductible resets and higher out-of-pocket costs for patients.

We expect strong prescription growth in 2026 as we continue to realize the full year benefit of our expanded sales force and marketing campaigns. Jornay's broad prescriber base also continued to grow, reaching an all-time high of over 29,000 in the fourth quarter, up 21% year-over-year.

Not only are we seeing growth in new prescribers, but the depth of prescribing also increased throughout 2025, particularly with our targeted physicians. Jornay's market share of the long-acting branded methylphenidate market grew to nearly 26% in the fourth quarter, up 6.5 percentage points year-over-year.

Importantly, we saw growth across both patient segments of our business, pediatrics and adults. In the fourth quarter, the pediatric and adolescent segment, which represents about 80% of total prescriptions grew 14% year-over-year. The adult segment, which represents about 20% of prescriptions, grew 24% year-over-year. We see additional opportunity in the adult market, including raising awareness among HCPs that their adult patients' unmet need for efficacy upon awakening is greater than they think.

We remain focused on driving significant growth in Jornay by raising awareness and maintaining broad patient access. In 2025, we made targeted investments to increase awareness and adoption with an expanded set of prescribers and to raise caregiver and patient awareness so they ask their health care provider about Jornay.

Our expanded sales team is targeting approximately 21,000 prescribers, up from 17,000 prior to the expansion. Importantly, they are also increasing frequency of interactions with key health care providers.

As we end 2025, the majority of targets we added as part of the expansion have written a prescription for Jornay and their depth of prescribing increased by the end of the year. Building on our efforts from last year, we continue to launch new marketing campaigns aimed at raising awareness of Jornay among health care providers, patients and caregivers.

Our nonpersonal marketing efforts include a comprehensive and broad campaign that surrounds health care providers via web and social media content, supporting the efforts of our sales force to drive awareness of Jornay's differentiated profile.

During the back-to-school season spanning Q3 and Q4, we increased our investment in these critical nonpersonal promotional programs, reaching an additional 50,000 ADHD prescribers who fall outside of the sales force targeting efforts.

In total, our digital marketing actions target approximately 70,000 health care providers. In addition, we made significant and increased investment in digital marketing to activate adult patients and caregivers during the back-to-school season as we know that their requests are one of the largest driving forces behind new prescriptions.

Finally, we also focused on maintaining broad payer access for Jornay. We're pleased to share that we've secured new formulary access under a major commercial health care plan, which will be effective May 1, increasing Jornay's coverage by an estimated 4.5 million covered lives.

Turning now to our pain portfolio. Collegium is the leader in responsible pain management with a unique and differentiated portfolio of medicines, Belbuca, Xtampza ER and the Nucynta franchise, which collectively represent approximately half of the branded ER market.

Our pain portfolio is highly differentiated with strong brand fundamentals. Belbuca remains the only long-acting opioid medicine that uses buprenorphine buccal film technology. In market research, it was ranked as the #1 branded ER opioid in terms of differentiation and favorability.

Similarly, Xtampza, the only extended-release oxycodone medicine that uses our proprietary best-in-class abuse-deterrent technology, DETERx, was ranked as the #1 ER oxycodone medicine in terms of differentiation and favorability. In the fourth quarter and full year 2025, we delivered strong performance in our pain portfolio, which continues to fuel the financial strength of our business.

We grew combined revenues from our pain portfolio on a quarterly and full year basis, both up mid-single digits, and prescription performance was in line with our expectations, reinforcing our belief that the life cycle of these medicines may prove to be longer and more robust than is currently appreciated in the market.

Average weekly prescriptions for both Belbuca and Xtampza were particularly strong in October through December, generating positive momentum as we enter this year. Additionally, we continue to see a large and in the case of Belbuca growing prescriber base despite these brands being later in the life cycle, further supporting our expectation of durability for both brands.

As we've said before, we remain committed to maximizing the revenue from our pain portfolio while maintaining broad payer coverage. As a reminder, we expect both our ADHD and pain portfolios to be impacted by the typical first quarter dynamics when there's seasonal pressure on volume and gross to nets due to annual deductible resets and higher out-of-pocket costs for patients.

This is in line with our expectations and reflected on our 2026 financial guidance. We enter 2026 from a position of strength as we remain focused on advancing our priorities for the year. We delivered another year of strong performance in 2025 across the entire portfolio.

I'm proud of our commercial team's execution, which set us up to enter 2026 in a position of strength as we remain focused on advancing our priorities of growing Jornay and maximizing the pain portfolio.

I'll now hand the call over to Colleen to discuss financial highlights.

Thanks, Scott. Good morning, everyone. I'm pleased to share that we have delivered another year of robust financial results and achieved our 2025 financial guidance. This accomplishment is a testament to the operational execution and financial discipline across our organization. Full year 2025 net revenues were a record $780.6 million, up 24% year-over-year, and adjusted EBITDA was a record $460.5 million, up 15% year-over-year.

We also generated robust operating cash flows of $329.3 million and ended the year with $386.7 million in cash, cash equivalents and marketable securities. Additional financial highlights for the fourth quarter and full year of 2025 include total net product revenues were $205.4 million in the quarter, up 13% year-over-year and a record $780.6 million in 2025, up 24% year-over-year.

Jornay PM net revenue was $45.9 million in the quarter, up 57% year-over-year and $148.9 million in 2025, up 48% year-over-year compared to pro forma 2024 revenue. Belbuca net revenue was $59.1 million in the quarter, up 7% year-over-year and $221.7 million in 2025, up 5% year-over-year.

Xtampza ER net revenue was $48.6 million in the quarter, down 6% year-over-year and $199.3 million in 2025, up 4% year-over-year. Nucynta franchise net revenue was $47.9 million in the quarter, up 15% year-over-year and $196.3 million in 2025, up 11% year-over-year. Revenue from the Nucynta franchise increased year-over-year, primarily due to profitability improvements from managing gross to nets consistent with our payer strategy.

GAAP operating expenses were $67.6 million in the quarter, up 12% year-over-year and $283.6 million in 2025, up 37% year-over-year. Non-GAAP adjusted operating expenses were $57.5 million in the quarter, up 13% year-over-year and $237.3 million in 2025, up 58% year-over-year.

The increase in operating expenses in 2025 reflects ongoing costs to commercialize Jornay as well as the targeted investments we made to drive future growth, including the expansion of our sales force and new marketing campaigns.

GAAP net income was $17 million in the quarter, up 36% year-over-year and $62.9 million in 2025, down 9% year-over-year. Note that GAAP net income in the quarter and full year was impacted by a onetime loss on extinguishment of debt of approximately $16 million related to the extinguishing of our prior debt and refinancing with our new syndicated credit facility.

Non-GAAP adjusted EBITDA was $127.3 million in the quarter, up 18% year-over-year and a record $460.5 million in 2025, up 15% year-over-year. GAAP earnings per share was $0.54 basic and $0.46 diluted in the quarter compared to $0.39 basic and $0.36 diluted in the prior year quarter.

For the full year, GAAP earnings per share was $1.98 basic and $1.73 diluted compared to $2.14 basic and $1.86 diluted in the prior year. Non-GAAP adjusted earnings per share was $2.04 in the quarter compared to $1.77 in the prior year quarter. For the full year, non-GAAP adjusted earnings per share was $7.42 compared to $6.45 in the prior year.

Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. As of December 31, 2025, we had $386.7 million in cash, cash equivalents and marketable securities, up $223.9 million from the end of 2024.

We ended the year with net debt to adjusted EBITDA leverage of less than 1x. We are reaffirming the 2026 financial guidance that was issued in January. We expect total product revenues in the range of $805 million to $825 million. This represents a 4% increase year-over-year, driven by Jornay growth and durable revenues from our pain portfolio. Our revenue guidance reflects the estimated impact of our authorized generic agreement with Hikma.

Our agreement with Hikma provides us with significant profit share, positioning us to maximize the value of the Nucynta franchise and compete effectively with third-party generics. Consistent with prior years and typical first quarter dynamics that impact our industry, we expect a modest quarter-over-quarter decline in revenues in the first quarter of 2026 due to annual deductible resets that increase out-of-pocket costs for patients.

We expect Jornay revenue to be in the range of $190 million to $200 million, a 31% increase year-over-year. We ended 2025 with Jornay full year gross to net of about 64%, and we expect gross to nets in 2026 to remain stable in the mid-60% range.

As a reminder, gross to nets tend to fluctuate on a quarterly basis, and we expect gross to nets to be highest in the first quarter and higher in the first half of the year compared to the second half due to typical seasonal dynamics.

We expect adjusted EBITDA in the range of $455 million to $475 million, up 1% year-over-year. We remain committed to creating value for our shareholders through disciplined capital deployment. Our capital deployment strategy balances expansion and diversification through business development, debt repayment and opportunistic share repurchases.

As Vikram mentioned, we remain actively engaged in evaluating opportunities to further expand and diversify our portfolio through business development, which I will elaborate on in a moment. In December, we announced the successful closing of our first syndicated credit facility, underscoring the strength of our financial outlook.

The $980 million credit facility will mature in 2030 and consists of $580 million initial term loan, $300 million delayed draw term loan and a $100 million revolving credit facility. The initial term loan was used to repay the $581 million balance of our previous $646 million term loan with the delayed draw term loan and revolving credit facility, both currently undrawn.

Our new credit facility significantly improves our interest rate and debt terms, which is expected to result in meaningful annualized interest savings. The credit facility also provides additional capital that can be used to fund future business development opportunities to drive long-term value for shareholders.

In 2025, we returned $25 million of value to shareholders through an accelerated share repurchase program. We have $150 million remaining in our current Board authorized repurchase program, which can be leveraged through December 31, 2026.

We remain disciplined in our approach to business development and continue to evaluate assets that are commercial or near commercial with cost-efficient sales and marketing requirements and exclusivity into the 2030s and beyond.

We are focused on therapeutic areas where we can leverage our expertise and established infrastructure, including neuropsychiatry, pediatrics and pain, while also remaining open to other specialty indications or rare diseases that are cost efficient, assuming they offer a compelling path to building a franchise.

I am confident in our ability to build upon this track record when the right opportunity arises. I will now turn the call back to Vikram.

Thank you, Colleen. 2025 was a year of strong execution for Collegium in which we achieved our financial commitments and delivered on our strategic priorities.

We enter 2026 with great momentum and a clear focus on driving further growth for Jornay PM, maximizing the durability of our pain portfolio and strategically deploying capital. These priorities position us to create long-term value for our shareholders as we build a leading diversified biopharmaceutical company committed to improving the lives of patients living with serious medical conditions.

I will now open up the call for questions. Operator?

[Operator Instructions] The first question is from the line of Les Sulewski with Truist.

This is Jeevan on for Les. What assumptions underlie 2026 Jornay guidance? And how should we think about factors that could lead to upside? Also, have there been any competitive developments in the space that could impact Jornay demand?

Yes. Thanks for the question, Jeevan. I think if I understood your question, you were asking what drives -- what assumptions drive the 2026 guide for Jornay. And I think as we've said before in our prepared remarks, we expect that growth to be driven by demand growth as we expect relative stability in gross to net between 2025 and 2026.

And if you don't mind repeating your second question, that would be helpful.

Yes, sure. Have there been any competitor developments in the ADHD market that could potentially impact Jornay demand?

Look, we monitor all the typical competitive dynamics in the market. We assess future launches that might be coming into this space. To date, we have -- we don't see real much material change, both in the forms of current dynamics or in future launches that could impact Jornay demand.

As a reminder, Jornay remains as one of the only differentiated medicines in this space, specifically because of our proprietary delivery technology, which makes meaningful impact for patients, particularly those that are dealing with morning challenges. And we don't expect that to be impacted anytime in the future.

Our next question is from the line of Brandon Folkes with H.C. Wainwright.

Congrats on all the progress. Maybe just 2 from me. I know you haven't given a peak sales range for Jornay, but can you just help us frame how you're thinking about the ramp to peak? Are you thinking about sort of a 3- to 5-year ramp to peak in your hands?

And then secondly, within Nucynta AG in the market, how promotionally sensitive is Belbuca and Xtampza at this stage of their life cycle? And how do you think about the commercial infrastructure behind those products today versus perhaps if a generic came to market on either one of those? What's your hurdle to pull back on investment there?

Yes. Thanks for the question, Brandon. I'll take the Jornay PM peak sales question, and then we'll have Scott maybe address the Nucynta question. So we -- you're right, we have not previously talked about Jornay PM peak sales, primarily because we have -- as I said before, we are continuing to invest in sales and marketing activities for Jornay PM.

And as a reminder, we expanded the sales team from 125 to 180 sales reps back in April last year. And we also said that it takes about 6 to 9 months before you can truly start to see the impact of the expansion. We're right in that time frame right now where we're starting to see the impact of the expanded team, and we expect that to continue throughout 2026.

So I think once we have a better sense of what the impact of these commercial investments tend to be, we'll have a much better sense both of the peak opportunity as well as what that ramp looks like.

So we look forward to keeping you updated on what Jornay looks like both in terms of the peak and how fast we can get there. And on the Nucynta question, maybe I'll turn it over to Scott and Colleen to weigh in.

I'll start, Brandon. I think your first thing was as Nucynta AG is here, how does that help us think about the sales force and is Belbuca and Xtampza promotionally sensitive. And they're definitely mutually exclusive. Nucynta later in life cycle, light promotional sensitivity.

Belbuca and Xtampza high promotional sensitivity. it's a different situation, right? It's not one where it's competitive, so to speak, versus other sales forces, but it's a highly complex marketplace. And so our sales representatives are helping the offices navigate the payer environment and continue to change behavior.

And so definitely promotionally sensitive. We need our team. And just as a reminder, it's highly efficient. We have 100 in that sales organization that are supporting that $600 million plus revenue. So we think we're in a good spot there.

Yes, Brandon, and I'll just add on, as we've said previously, particularly our field force, as Scott just mentioned, is focused on Xtampza and Belbuca and we will invest through any of those potential LOE dates because of the uncertainty. In the event an event were to occur, we can pivot pretty quickly, and we have the ability to moderate investment there, and that's how we would approach that.

And then I might just come back and just remind you on Jornay PM that the LOE is our base case IP is out to 2032. And given its differentiation as you think about longevity, you should be thinking about that date.

The next question is from the line of David Amsellem with Piper Sandler.

So just a couple for me. One on capital deployment. Vikram, I know you've talked about rare diseases in the past and certainly given your background. I'm wondering how you're thinking about it in terms of acquiring a rare disease-focused asset that is on the market and using that as sort of the beachhead off of which you can add more rare disease assets where you would leverage patient services and a reimbursement hub.

I know that's something that -- obviously, you have a lot of experience with. But is that something you're thinking about? Or are you leaning more into your existing therapeutic areas of expertise like psychiatry?

So that's number one. And then secondly, just talk more generally about the Jornay sales force. There's always room to expand. ADHD is, of course, a big market, but how are you thinking about rightsizing of the sales force or potential for more expansion down the road, whether it's this year or next year?

Thanks, David. On capital deployment, I think I'll remind everyone that our capital deployment, particularly from a BD standpoint, as we've said before, the types of assets we're looking at are commercial or near commercial, primarily U.S.-based that have LOEs into the 2030s and beyond.

In an ideal world, we can get these assets in the areas where we have already made a significant commercial investment, right? So if you think about psychiatry and pediatrics, where with the Jornay PM sales force, we already call on a significant number of prescribers, that will be ideal so we can get a significant operating leverage.

Now what we've also said before that we are open to other potential areas, but they do need to be more capital efficient. And as you rightly identified, rare disease tends to be one of those areas where you can be a bit more TA agnostic but you can build a franchise that is -- that creates operating leverage from creating a significant commercialization approach.

And one of them is the backbone of patient services, reimbursement hub, et cetera. As we've spoken before, both of those areas are attractive to us as we think about how we build our portfolio out for the future. In terms of the Jornay PM sales force expansion, I think what we previously said still holds true.

We even expanded to 180 reps back in April, we did that because we believe that given the number of prescribers, given what the prescribing behavior looks like and what the various deciles look like, we believe that 180 was the right number, and so we believe we're rightsized.

Of course, if down the road, if we feel that we need to expand more because we're only limiting our growth ourselves, then we will absolutely revisit that. But at this point in time, we believe 180 is the right number, and we look forward to seeing the momentum we're going to drive this year.

At this time, I'll turn the floor back to Vikram for closing comments.

Well, thank you, everyone, for joining our call. Wish you a great rest of the day.

Thank you. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.

Good afternoon, everyone. This is David Amsellem from the Piper Sandler Biopharma team. Our next company fireside chat is Collegium.

We have CEO, Vikram Karnani, with us. We also have CFO, Colleen Tupper. Thanks so much for joining us.

And let's just dive in into questions. And I think that what's sort of top of mind is, at least for me, is Jornay PM, which is really the growth driver right now of the overall business. So, maybe I'll just start with a high-level question on Jornay PM.

Just how are you thinking about the growth runway here and the peak opportunity? And the way I think about it, I'd love to hear your thoughts is that's in the context of a pretty vast ADHD space. from a volume perspective, but you've got a pretty unique profile in a pretty crowded market, but nonetheless, unique profile.

So with all that in mind, how do you think about the opportunity here?

Yes. First of all, thanks for having us. Jornay PM is the only -- it's a unique differentiated medicine. First of all, in the crowded space of ADHD medicines, it is the only medicine that is taken at night. And what it does is because of its unique differentiated profile, which is delayed release and extended release, it can offer patients benefits upon awakening in the morning, as well as lasting efficacy throughout the day in the afternoon and throughout the evening, which is really important for patients.

Because of that, and a lot of our promotional efforts over the last year or so, what we've observed is tremendous growth with the product. We -- in Q3, Jornay grew 20% in prescriptions year-over-year. 22% in new writers year-over-year. So there's a lot of headroom still left in Jornay PM. This performance and throughout the year, our performance has caused us to raised guidance.

At our Q3 earnings call, we raised guidance for Jornay for the full year to be in the range of $145 million to $150 million in net sales, which is about a 46% growth year-over-year. So while we haven't necessarily talked about peak sales as an opportunity, I think it's important to know that we're very pleased with the performance. And we think there's a long runway of growth we get for Jornay in a crowded ADHD market.

Yes, crowded, but very large in terms of volume.

Crowded, very large in terms of volumes. The overall market is 100 million prescriptions and still growing at pick your favorite number, 6% to 8%. So this is a market that is continuing to see growth. And with our differentiated profile, we feel really good about the value proposition that Journey brings for patients as well as for physicians.

So I wanted to ask you about the commercial infrastructure supporting the product. Just remind us how many reps you have, how many physicians you're targeting? And I know that this is sort of a multidisciplinary space. There's psychiatrists, there's pediatricians. So talk about the -- how you're tackling those two pieces of the market.

Yes. When we acquired Ironshore Therapeutics, which brought us Jornay, there were 125 representative -- sales representatives at the time. We expanded the team. We added 55 new reps in April of this year, which brought the total to about 180 territories, okay?

And we did that because we believe that was the right size that was needed to support this medicine. We're now able to call on more than 21,000 physician targets with the right level of frequency. So it wasn't just about increasing breadth, it was also about increasing frequency to the right number that was needed in order to be effective.

In terms of the prescriber base, it is about 40% psychiatrists, about 40% pediatricians. And the balance 20% is a mix of mid-levels, some high decile primary care, those type of other specialties, which at the end, ladder up to psychiatrists and pediatricians.

So when I think back to when Shire had exclusivity for Vyvanse, I mean, their sales force was quite large. I'm not saying that you're going to get there. But certainly, there's room to further expand the sales force if you wanted to.

So I guess my question here is, what's your appetite for how do you assess the need for further sales force expansion? It's a promotion-sensitive space. There's obviously a lot of peds out there. There's a lot of psychiatrists. These are big audiences. So how do you think about that going forward?

Yes. David, right now, we believe that the 180 sized team is the appropriate size for calling on those top targets, the 21,000-plus targets with the right level of frequency. The expansion just took place in April. So typically, it takes about 6 to 9 months before you can start to see real signs of impact from a sales force expansion. We're right in the middle of that period right now.

So I think what we'd like to do is have this expansion fully take effect, observe the growth and drive growth into next year. And down the road, we'll always keep assessing whether there is a need to expand. And we'll revisit the question at the right time.

So can you remind us of the split between adults and pediatric ADHD patients currently? And where are you seeing the most growth come from?

Yes. We -- so in the ADHD space, you have stimulant, nonstimulants and you got methylphenidates and amphetamines under the stimulant category. Jornay PM is a methylphenidates with the Delexis technology. So we tend to move and skew more with the methylphenidates as a category.

Methylphenidate as a category skews more 70% peds and adolescents, 30% adults. Jornay PM right now is about 80% peds and adolescents, 20% adults. And over time, we believe that we will migrate towards that 70-30 split for the overall category. In our most recent earnings call, we also talked about this, our growth, the 20% prescription year-over-year growth, when you split that into adults and peds and adolescents, adults were 29%. Now peds being the large majority was about 18%. But what we are seeing is reasonably good uptake even in the adult segment. So we're pretty excited about that.

To be clear, that will be -- and I don't know if this is still the case, the adult segment has tended to be the faster growing of the two segments in the over market. Is that still the case?

Yes, I believe so. From the overall market space, that does seem to be the case. Just to give you a sense of overall split, about 22.5 million, 23 million patients -- diagnosed patients, about 15.5 million to 16 million are adults and the remainder are peds and adolescents.

Got it. Okay. That's helpful. So what does access look like? Let's start with commercial access for Jornay PM. And I'd like to get a better understanding of the nature of authorizations and step edits that are in place, given that there's generics out there for Concerta and other forms of methylphenidate. So how should we think about that?

So our -- first of all, our access from an overall payer standpoint is quite good. We have -- our split of business is about 2/3 commercial, about 1/3 Medicaid. And in terms of -- as we think about step edits and whatnot, in this type of heavily genericized category, it's normal to expect that patients would have to try and fail one or step through one or two generics before they go to a branded medicine like Jornay PM. That's what we see. But those prior authorizations that are required are not your onerous prior authorization. Typically, they are attestations from a physician that the patient has tried and failed. They don't have to rego through another whole cycle.

Got it. Okay. And just remind us what the gross to net is on Jornay PM. How that compares to other brand ADHD products such as Supernus' Qelbree?

So in the third quarter, gross to net for Jornay PM improved as we expected with the seasonality throughout the year. From a full year perspective, we now expect gross to net to be about 65% in the mid-60s.

That is an improvement over last year at about 71% for the full year. That improvement is down -- or better than our original expectation of the high 60s. That was helped by improved returns and some other factors around co-pay program. As you compare it to other brands in the category, particularly the nonstimulants, because it's a smaller universe of competitors and fewer generics, our gross to net tends to be higher. If you look within the amphetamine methylphenidate category, we're about where you would expect to be. And so looking forward, I think it's going to normalize in that mid.

Okay. That's helpful. I wanted to step back and get your thoughts on just where you're pulling Jornay PM patients from. So are these generally patients who had exposure to other methylphenidate products? Are these patients who are not tolerating amphetamine products. Well, are you getting treatment-naive patients? And I know that's kind of a mouthful, but help us better understand where you're getting these patients from?

Yes. I'd say, certainly from switchers, right? Majority of the patients are switching from another medicine on to Jornay PM. As you would naturally expect, a significant number of these patients are coming from having tried another methylphenidate or another stimulant. So we do get some from patients that are switching from amphetamines, mostly from other forms of methylphenidate.

We do -- we are starting to see some treatment-naive patients as well now, where Jornay PM becomes their first treatment of choice. This is usually after a physician has turned into a bit of a loyalist, right? They've got good experience with the medicine. They've seen a substantial number of their own patients realize the benefit of Jornay PM. That's where we're starting to see, but that's a small number.

Okay. Well, let's turn to the rest of the business. So the legacy pain business here. Just refresh us on the exclusivity runways or what you think of the exclusivity runways for both Belbuca and the same question for Nucynta. Let's start with Belbuca.

Sure. So I'm going to start with a global comment across the full pain portfolio, inclusive of Xtampza, Belbuca and Nucynta, which is that we don't see any single party that has met all three criteria required to launch a generic competitor. That criteria being regulatory approval, tentative approval, legal clearance, as well as access to manufacturing in the API. And so there's different flavors of that for each of our brands and then the different parties within those brands.

So with Belbuca, the first potential generic entrant would be Teva in January of 2027. That date arises from a settlement agreement between BDSI and Teva.

To date, they do not have tentative approval, and they have relinquished their first filer exclusivity. There's strategic questions around Teva that we can't answer for them on whether or not they would launch another opioid, whether or not this fits with their strategy, focused on branded and complex generics.

And frankly, the opportunity is limited. So we look to watch that space, but that's the first to watch for, for Belbuca. Then there are Alvogen, who is currently barged from the market until December 2032 and Chemo who is pursuing non-infringement, but to date, have received five CRLs. So we feel confident, one, it seems to be technically challenging. But if they are able to sort of crack the code, we feel very strongly in our IP case.

Before we move to Nucynta, I had some follow-up questions about Belbuca. So let's suppose that Teva does not enter the market. And you can make an argument that they want no part of anything opioid or opioid related. I don't think that's a big leap.

But let's just suppose that they don't enter the market. I mean, you've got in Belbuca kind of a unique profile. It's a Schedule III, not a Schedule II. It's -- so it's a -- as I look at the opioid space, a more benign opioid, if you will. Do you invest behind the brand if you get, say, another several years of exclusivity?

I think we would take it under careful consideration, but we would look at the pain portfolio today. It's really rightsized and the right amount of investment. What I would say specifically, because of that uncertainty around that January 2027 event is that we are not going to harvest or pull back on any Belbuca investment in advance of that date.

We're going to invest right through and not take any action until -- when and until something was to happen. And so we'll continue to assess to see if there is any additional investment required. But sitting here today, I wouldn't expect. That said, I think Belbuca in the absence of a negative payer action has absolutely the ability to grow volume.

So let's talk about the payer landscape for Belbuca because I think in the past, you've talked about Part D access in particular. So I wanted to get your thoughts here on not just Part D access, but also commercial access. How are you thinking about contracting in general? And if your exclusivity runway is indeed going to be longer than '27, how do you think about contracting?

Yes. I think we look to balance profitability and volume growth as we have been doing for the past few years with a longer runway, if that were to be the situation we find ourselves in, in early 2027, we would assess contracting, not very different than we do today. We're really looking to get profitable access to Belbuca because it really should be the first line before you move into a Schedule II therapy, and we do believe it has broader use

And what -- remind us what the gross to net is on Belbuca these days?

It's in the mid-50s, and that fairly stable.

Got it. So let's move to Nucynta and talk about IR and ER and how you're thinking about exclusivity runway for both forms of Nucynta?

Yes. So there are several ANDA filers across the franchise, a few more on IR than there are on ER. However, based on our understanding, we don't believe any of those parties have access to tapentadol in commercial scale quantities.

In the U.S., where it must be sourced from, there are 4 approved DMF, only one of which is producing at commercial scale, and that is our exclusive supplier. The other 3 to date, we are unaware of anyone taking the action or making the investment to scale up. So that is what we think is a fairly significant barrier on the Nucynta side.

In addition, we announced last year that we strategically partnered with Hikma for an authorized generic arrangement that provides Collegium with favorable profit share terms. And I would just say, overall, it's difficult to know for sure when and if somebody will launch and to what scale they are able to launch, but we do believe that the franchise has a longer and more robust tail than you'd otherwise expect. and the Hikma arrangement delivers value in the near and long term.

So a follow-up question to that. With the AG with Hikma, how do -- how should we think about investment behind that brand or pulling back of investment behind that brand? I mean that to me -- that strikes me as a product that you essentially manage for cash flow.

Our investment you're referring to?

Yes.

Yes. And in fact, that's really how we have been managing that brand since the acquisition in 2020. If you recall our goal at that time was to maintain revenue at about stable base, which was at that time, $180 million. And we've been able to achieve that through the profitability improvements and pruning unprofitable contracts. And so the volume that was declining for the Nucynta franchise before we acquired it, but we've been able to stabilize and even grow revenue. And so it had third position for the sales team, and it would remain that way.

Okay. So switching gears now to Xtampza. Let's talk about how you're thinking about the exclusivity runway there. That's always been the one that I thought of as having the highest barriers for potential generics just given the nature of the formulation. But help us understand how to think about that.

Yes. So to date, there's been one ANDA filer that was Teva. We settled to allow them to enter September 2033. We thought that was a really positive outcome. To date, as you would expect, it's a ways away. They do not have tentative approval. But I think also importantly, as a significant distributor of the OxyContin IR generic, they've all but stopped distribution there. And so it really does call into the question to come back in the base molecule come back into opioids in 2033.

Yes. That's a fair point. And as you think about that product, just help us understand your investment in that brand. I mean is that more akin to Nucynta where you're kind of managing it for cash flow?

We have a 95-person sales team supporting pain overall. I would say Xtampza and Belbuca are really sort of in shared position one. It depends on the office and the prescribing habits within that office, which might get more airtime. I would anticipate that continues. There is absolutely continued life in that product, and we would continue to invest behind it with that runway.

Okay. And just remind us how we should think about the gross to net for Xtampza?

Xtampza gross-to-net, it's settling around in that mid-50% range as well. It's been a little bit better this year for a variety of reasons. We've said a few years back when we embarked on the exercise to really improve gross to net from a high of 72-ish percent that we would never get above 65%. Well, we'll always be well below that based on the success we had with renegotiating contracts. That said, we've gone through that entire cycle, and so we don't expect to have significant moves in the gross to nets going forward.

That's helpful. So I want to spend the next few minutes that we have remaining just getting your thoughts on just your overall vision for the company. You're generating a lot of cash flow. You have clearly stated that business development and M&A is a priority. So -- and you've done this before.

So I guess my question here is just help us understand how you're thinking about capital deployment more broadly and ultimately, where you want to take the business? You have the legacy pain business. You -- from Ironshore that gave you an entry into psychiatry and also pediatrics. But I kind of look at what you have here is a lot of white space in terms of the capital you can deploy. So how are you thinking about that?

Yes. Look, let me take a step back. At the beginning of the year, we laid out three priorities for the company, three strategic priorities that we need to accelerate the growth of Jornay. We've talked about Jornay quite a bit. We need to make sure that we're maximizing the durability of the pain franchise. And you heard from Colleen about all the factors that play into that, and we think that we've got a good runway there as well.

The third was we always talked about a very smart, disciplined capital deployment strategy, which has three parts to it, right? One is continue to look for additional BD assets through business development that become part of the portfolio. Number two is we generate a lot of cash. And as part of generating cash, since 2021, we have returned $222 million in share repurchases back to our shareholders. So returning value to our shareholders through share repurchases is part 2. And part 3 is strengthening our balance sheet and continuing to strengthen our balance sheet by paying down debt, right?

So at any given point in time, we're always looking at all three areas, of course, the best way to deploy capital. Specifically talking about business development. So Jornay has given us an entry into a very exciting space. To break down ADHD, as I said earlier, our sales force really spends a lot of time with pediatricians, as well as psychiatrists.

So a very natural play for us would be to acquire an asset that fits in the bag of the sales force that is calling on those specialties. It's highly synergistic. It can drive value for the company. The assets we're looking at are commercial or very near commercial. And by very near commercial, it's something that at least has Phase III top line data that we can assess, does the medicine work? Is it approvable so that we can remove some of those types of risks, okay, or minimize them anyway.

We look for assets that are peak sales of -- in excess of $300 million of peak net sales. Longer duration, as you've heard from Colleen and from me about our IP estate, we'd like to bring in medicines that continue to deliver value into the mid-2030s and beyond. We're primarily a U.S.-based company. And obviously, we would want to make sure that we have medicines that we can commercialize in the U.S.

Outside of those areas of pediatricians and psychiatry, we are open to other areas and adding a third leg of the stool, if you will. But we'd like to be very capital efficient about it. We look at areas that are both specialty as well as rare diseases. And especially in rare disease, when those criteria that I laid out, a lot of the medicines tend to fit that type of a size. So that's how we're looking at growing the company is assets that are commercial or very near commercial that can be put in the hands of our existing sales force or if we go into a new area, it's an area where we can scale from, add more products and scale the company.

Well, I think given your background in rare diseases, and you get this question all the time. So is it fair to say that you'd be comfortable layering in or absorbing a small specialty sales force supporting a rare disease asset where you can put together an access/reimbursement hub, and that's something that you can leverage over time as you layer in other assets. I mean, is that something that...

That's exactly right. That's exactly right. So what you can do is exactly right, right? You can potentially bring in an asset that is a smaller size. But you can then add other rare disease assets that -- they can be a bit more TA agnostic, but where you find synergy is then in how you support patients, your patient services, your reimbursement hub, all of the things you just talked about. So that's another way to potentially build scale for the company.

And then real quick, at what point do you consider taking on a development stage assets?

Yes. At this point in time, I think we are -- I don't believe we're at the size or frankly, the expertise within the company to take on a development stage assets today. It's something that we thought about, but I think we'd like to get a little bit more commercial scale before we think about taking on development stage assets down the road.

All right. I'll leave it at that. Thanks, Vikram. Thanks, Colleen.

Good morning. I'd like to remind everyone that during this presentation, I will be making forward-looking statements and discussing non-GAAP metrics. Please refer to the risk factors and non-GAAP reconciliations discussed in our latest SEC filings.

Thank you for the opportunity to introduce you to Collegium today. I am Colleen Tupper, the Chief Financial Officer. Collegium's mission is to build a leading diversified pharmaceutical company. We are committed to medicines that -- for people with serious medical conditions, with a current focus in chronic pain management and ADHD with 5 marketed products.

We have significant revenue and a high-growth profile with $780 million of revenues expected this year, representing 24% year-over-year growth. We have a history of cash generation and successful business development. We have created shareholder value, including a history of share repurchases with over $220 million repurchased since 2021.

To give a bit of background on the company, Collegium was founded in 2002 to address the opioid epidemic. We became the leader in responsible pain management by developing our flagship product, Xtampza ER and acquiring differentiated chronic pain medicines, such as Nucynta and Belbuca. In 2024, we completed the acquisition of Ironshore, which was our first step to diversification, adding Jornay PM to our portfolio.

In 2025, our focus is continued growth of the pain and ADHD business while also looking for additional commercial products to add to our portfolio. The success and growth of our products have largely been driven by their individual differentiated profiles. Jornay is the only stimulant ADHD medicine dosed in the evening, providing symptom control upon awakening through the afternoon and into the evening, which can limit the need for short-acting stimulant add-ons.

Belbuca is the only long-acting opioid pain medicine that uses buprenorphine buccal film technology. And Xtampza ER is the only extended-release oxycodone pain medicine that uses best-in-class abuse-deterrent technology, DETERx. And Nucynta is the only opioid pain medicine proven to treat both severe and persistent pain and neuropathic pain associated with diabetic peripheral neuropathy.

Jornay is on track to grow in the mid-40% this year, while our pain portfolio, which is later in its life cycle, is growing in the mid-single digits and remains highly cash generative. We have recently raised our full year 2025 financial guidance due to the strength across our businesses.

We now expect 24% revenue growth and 16% adjusted EBITDA growth versus the previous expectations of 19% revenue growth and 12% adjusted EBITDA growth, and our operating expenses supports Jornay's growth initiatives, while overall spend remains modest relative to the revenue opportunities. We have a strong history of growing revenues and adjusted EBITDA and managing our adjusted operating expenses. This underscores the company's long-term commitment to growth, profitability and measured spending.

There are 3 core pillars of our growth strategy lined-up with delivering shareholder value. That is growing the Jornay business through strategic investments in sales and marketing, maximizing the value of our pain portfolio and generating strong cash returns, and strategically, deploying capital, which includes a balance of future business development, paying down our debt and opportunistically repurchasing shares.

The durability of our pain portfolio revenue remains largely underappreciated by the investment community. There is no potential generic entrant that has achieved all 3 criteria, legal, regulatory and manufacturing necessary to launch future generics.

With Xtampza ER, there is no currently approved ANDAs, and we have exclusivity via one settlement agreement with the first and only ANDA filer for September of 2033. For Belbuca, the first filer and party to the only settlement reached does not have tentative approval and has shifted strategies, putting into question their desire to launch another opioid.

The second filer is held out of the market until December 2032. With the Nucynta franchise, despite the loss of exclusivity in 2027, to our knowledge, no competitor currently has access to tapentadol at commercial scale. And we've strategically entered into an authorized generic arrangement with Hikma that provides Collegium favorable terms.

Overall, we expect the pain portfolio revenues will be more durable than currently appreciated with either no entrants or very limited entrants for each product. Collegium is well on our way to our strategic objectives as highlighted in our Q3 results.

We had strength across our entire business in the third quarter. Collegium drove momentum and delivered growth. $209.4 million in revenues, up 31% year-over-year, 20% growth in Jornay prescriptions, and 11% growth in pain portfolio revenues. Adjusted EBITDA is $133 million, which is up 27% year-over-year in the third quarter.

We also strengthened the balance sheet and strategically deployed capital, including generating nearly $80 million in cash from operations, growing our total cash balance to $286 million and continued to rapidly delever. Our net debt to adjusted EBITDA is down to 1.2x, and we anticipate being less than 1x by the end of this year.

To give a little bit of context on the ADHD market. The ADHD market is a large established market with roughly 100 million prescriptions written each year. The vast majority, about 90%, are stimulant medications, which include both amphetamines and methylphenidates. Jornay PM is in the methylphenidate category, where there are roughly 25 million prescriptions within each year.

It's a fairly concentrated prescriber base where about 20,000 health care professionals generate 1/3 of all prescriptions, and the call point is fairly equally spread between psychiatrists and pediatricians. Although the ADHD market is established with many treatment options, there remains unmet need.

Jornay PM is highly differentiated from other ADHD medications, the only medicine you take in the evening, which provides symptom control upon wakening through the afternoon and into the evening. It is the #1 highest-rated branded ADHD medicine in terms of differentiation, and 60% of surveyed HCPs indicate intent to increase prescribing.

More than 70% of patients and caregivers who request Jornay from their health care professionals will receive a prescription. Jornay is the fastest-growing stimulant for ADHD with significant Jornay growth our -- under our ownership. We closed the transaction just over a year ago, September 2024. Prescriptions grew significantly in the third quarter, up 20%. We have a broad and growing prescriber base with 28,000 prescribers in the third quarter, which was up 22% year-over-year.

Branded long-acting methylphenidate market share is up 6 percentage points year-over-year to 23% overall, and growth in prescriptions during the recent back-to-school period with prescriptions up 14% in October compared to July.

Jornay is being prescribed to a broad set of patients. About 80% of prescriptions are to pediatric or adolescents and 20% to adults. New Jornay prescriptions are coming most frequently from patients switching from other branded or generic methylphenidate or amphetamines. In addition, we do see a smaller but meaningful number of patients who are receiving Jornay as their first ADHD medication.

With our targeted investments underway, Jornay is poised for additional future growth. Our investments are focused in 2 primary areas. The sales force expansion from about 125 territories to 180 territories increases the awareness to health care practitioners, and also digital marketing and social media strategies to increase awareness in both patients and caregivers. These investments are expected to support continued growth in this fourth quarter as well as most of the impact in 2026 and beyond.

Now I'll take a moment and switch to our pain portfolio. We have a strong history of responsibly growing our pain business through successful commercial execution. Here, you can see our continued growth over the last 4 years. We are well positioned to maximize and enhance the durability of our responsible pain management portfolio. We are currently rated #1 in responsible pain management by health care practitioners. And our pain portfolio represents approximately half of the branded extended-release market, ample -- leaves ample market opportunity for our portfolio of differentiated medicines.

In the third quarter, we had 10% year-over-year revenue growth for Belbuca and 2% growth for Xtampza. We continue to believe that the revenue and cash flows generated from our differentiated pain portfolio will remain durable in both the near and midterm.

We are confident in the strength and value of our business, and we are uniquely positioned relative to many of our peers. We have robust revenues growing 24% this year. We're highly profitable with over $460 million in adjusted EBITDA expected this year alone, strong cash flow generation expected to accelerate through end of 2025. We have an attractive balance sheet with 1.2x net debt to EBITDA and on track to be below 1x by the end of the year.

The history of returning value to shareholders with $222 million of share repurchases since 2021 and a current authorization for up to $150 million of repurchases through the end of the 2026 year. We are also fairly insulated from current market concerns facing peers in our industry. Notably, our -- we have minimal to no regulatory or clinical risk, and we have U.S.-based sales and manufacturing.

We are proud of our recent performance and look to the future from a position of financial strength. We remain focused on creating shareholder value and attractive balance sheet, provides flexibility in how we accomplish this as we work to maximize and grow our current portfolio, prioritize diversification through business development and return value to shareholders through share repurchases, with Jornay as our lead growth driver, durability of our pain portfolio and industry-leading management team to give us the confidence as we enter the next phase of growth. We appreciate your time today.

Greetings, and welcome to the Collegium Pharmaceuticals Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded.

I will now turn the call over to Ian Karp, Head of Investor Relations at Collegium. Thank you. You may begin.

Great. Thanks. Welcome to Collegium Pharmaceuticals Third Quarter 2025 Earnings Conference Call.

I'm joined today by Vikram Karnani, our President and Chief Executive Officer; Colleen Tupper, our Chief Financial Officer; and Scott Dreyer, our Chief Commercial Officer.

Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements involve risks and uncertainties as 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.

And with that, I'll now turn the call over to our President and CEO, Vikram Karnani.

Thank you, Ian. Good morning, everyone, and thank you for joining the call. I am pleased to report that we delivered another quarter of both top and bottom line growth, driven by a strong start to the back-to-school season for Jornay PM and robust revenues from our pain portfolio.

As our financial results reflect, we continue to make considerable progress on our 3 strategic priorities, which include driving significant growth for Jornay, maximizing the durability of our pain portfolio and strategically deploying capital to further enhance shareholder value.

Jornay prescription growth accelerated in the quarter during the critical back-to-school season and early signals indicate that our incremental commercial efforts are being well received by health care providers, caregivers and patients.

We also generated another quarter of meaningful revenue growth across our pain portfolio. The continued growth across our portfolio is a testament to the outstanding focus and execution driven by the entire Collegium team.

As I reflect on my first full year at Collegium, I am incredibly proud of what our team has accomplished. We successfully expanded into a new therapeutic area, rapidly integrated Jornay into our portfolio and made strategic investments to drive future growth. We also continue to generate robust performance from our pain portfolio and are increasingly confident that these revenues will prove to be more durable than many have previously expected.

We have also strategically deployed our capital through share repurchases and rapid debt prepayment and have remained active in our pursuit of additional differentiated medicines to add to our growing portfolio via business development. Of course, none of this success is possible without a strong commitment to the patient communities we serve.

We recently celebrated and supported initiatives for both paid awareness month in September and ADHD awareness month in October, serving as an opportunity to raise awareness, bolster education and honor the patients and communities we serve who are at the center of everything we do. I would like to thank everyone on the Collegium team for their hard work, discipline and dedication to our mission. Without you, none of our accomplishments would have been possible. We look forward to finishing the year strong and carrying this momentum into 2026 and beyond.

In the third quarter of 2025, we delivered strong financial performance, including record quarterly net revenue that grew 31% year-over-year and record adjusted EBITDA that grew 27% year-over-year. Our lead growth driver, Jornay PM generated a record $41.8 million in net revenue and prescriptions grew 20% year-over-year.

We also grew net revenue from our pain portfolio to a record $167.6 million, up 11% year-over-year. We generated $78.4 million of cash from operations, repaid $16.1 million of debt and ended the third quarter with $285.9 million in cash, further strengthening our balance sheet. Based on the continued strength of our financial performance to date, we are raising our 2025 financial guidance. We now expect to grow total revenue by approximately 24% year-over-year, driven by our continued confidence in the durability of our pain portfolio and significant growth from Jornay.

We now expect Jornay revenue to be in the range of $145 million to $150 million, representing 46% growth from 2024 pro forma revenue.

Outside of our financial achievements and consistent with our commitment to leading with science, we presented 9 posters at PAINWeek 2025, highlighting real-world data from our differentiated pain portfolio. We also had 2 articles published in the peer-reviewed Pain Research and Management Journal and the Journal of Pain Research focused on real-world benefits of treatment with Belbuca and Xtampza ER. And we recently presented 2 posters at the American Academy of Child & Adolescent Psychiatry and Neuroscience Education Institute conferences, highlighting real-world data from our differentiated neuropsychiatry product, Jornay PM.

Finally, we recently had the privilege of ringing the opening bell at NASDAQ to celebrate a significant milestone, our 10-year anniversary as a publicly traded company, marking a decade of delivering differentiated medicines to patients and creating value for our shareholders. We look forward to our next phase of growth and the exciting opportunities ahead.

For the remainder of 2025, we are focused on driving significant growth for Jornay PM, maximizing our pain portfolio and strategically deploying capital. We remain intent on driving significant growth for Jornay by raising awareness of its highly differentiated profile among health care providers, patients and caregivers. Throughout the year, we have made strategic commercial investments to raise awareness, especially ahead of the back-to-school season.

We are already seeing early indicators of positive impact and are pleased with Jornay's growth in the third quarter. We expect to continue this momentum in 2026 and beyond. Turning to our pain portfolio. We delivered another quarter of solid year-over-year revenue growth with revenues from all 3 core pain medicines growing for the third quarter in a row. We expect our pain portfolio to continue to provide a durable financial base that fuels our ability to grow further and diversify our business.

We remain committed to creating value for our shareholders through execution of our capital deployment strategy, which balances expansion through business development, opportunistic share repurchases and rapid debt repayment. We believe we are uniquely positioned for long-term growth. Our existing portfolio provides a strong financial foundation from which we consistently generate significant cash flows, and there is still meaningful opportunity to grow our medicines, particularly Jornay PM.

Our track record of successful business development, including rapidly integrating and investing behind newly acquired assets, provides opportunities for further expansion. We remain active in our search for additional business development opportunities to drive long-term growth and generate value for our shareholders.

With that, I will now turn it over to Scott to discuss commercial highlights.

Thanks, Vikram, and good morning, everyone. In the third quarter, we continued to generate positive momentum for our lead growth driver, Jornay PM, driven by strong brand fundamentals and our ongoing commercial efforts. We delivered growth in Jornay prescriptions, market share and prescribers, which I'll discuss in detail in a moment.

Jornay is a highly differentiated medicine and the only ADHD stimulant with once-daily evening dosing that provides symptom control upon awakening, throughout the afternoon and into the evening. Many patients, including pediatrics, adolescents and adults, report challenges starting their day, which is a key area of differentiation for Jornay as it begins working when patients wake up in the morning.

In addition to efficacy upon awakening, symptom control throughout the day is important for most patients because it can eliminate the need for an additional booster at school or work, and Jornay delivers efficacy that lasts throughout the day.

HCP perceptions of Jornay are highly positive. In market research, health care professionals rated Jornay as the #1 ADHD brand in terms of product differentiation with a score that was more than double that of any other competing brand.

In addition, over 60% of HCPs indicated a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines. We also know that if a patient or caregiver specifically asked to try Jornay, physicians typically honor that request.

While we're pleased with our progress to date, there's still significant opportunity to increase awareness of Jornay's unique and differentiated profile to further drive utilization.

Year-to-date, Jornay PM is the fastest-growing stimulant for ADHD. In the third quarter, Jornay delivered strong prescription growth, up 20% year-over-year. Our expanded sales force and new marketing campaigns were in place to maximize the opportunity during the back-to-school season. And as expected, we're seeing growth in weekly prescriptions.

The back-to-school season varies depending on regional school schedules and can extend well into the fourth quarter as autumn parent teacher conferences can also prompt discussions about ongoing unmet needs for children with ADHD. We're pleased to see that we're generating prescription growth during this back-to-school season as average weekly prescriptions in October were 15,700 compared to 13,800 scripts in July, an increase of 14%. And we broke 16,000 scripts last week. This is an encouraging growth trajectory, and we remain focused on continuing this momentum to maximize the potential of Jornay.

Jornay's market share of the long-acting branded methylphenidate market also grew to 23.4% in the third quarter, up 6.3 percentage points year-over-year. And Jornay has a broad and growing prescriber base, reaching an all-time high of 27,700 prescribers in the third quarter, up 22% year-over-year.

Importantly, we're seeing growth across both patient segments. In the third quarter, the pediatric and adolescent segment, which represents about 80% of our total prescriptions grew 18% year-over-year. The adult segment, which represents about 20% of our prescriptions, grew 29% year-over-year. We see additional opportunity in the adult market, and we'll continue to evaluate the levers we can pull to further grow within this segment.

Throughout the year, we've invested in 2 key commercial priorities focused on driving near- and long-term growth for Jornay PM. The first is to increase awareness and adoption with an expanded set of prescribers. And the second is to raise caregiver and patient awareness so that they ask their health care provider about Jornay.

In April, we completed the expansion of our sales force, adding approximately 55 new representatives, bringing the total ADHD sales force to approximately 180 representatives. Our expanded sales force is focused on increasing awareness and adoption in prescribers and was fully trained and deployed ahead of the back-to-school season.

Our sales team is now targeting approximately 21,000 prescribers, up from 17,000 prior to the expansion. Importantly, they are also increasing the frequency of interactions with key health care providers.

We're starting to see early indicators of positive impact, including strong results during the back-to-school season and almost 3,800 new targets wrote a prescription for Jornay in the third quarter. Not only are we seeing growth in new prescribers, but we're also seeing an increase in the number of prescriptions from existing prescribers.

In recent months, we also launched new marketing campaigns to raise awareness among health care providers, patients and caregivers. Our new nonpersonal promotion campaigns targeted to health care providers support the efforts of our sales force to drive awareness of Jornay's differentiated profile. We're committed to further educating patients and caregivers on the differentiated benefits of Jornay as we know patient requests are a key driver of new prescriptions.

Our new digital marketing campaigns directed to caregivers and patients are designed to raise their awareness of Jornay and motivate them to talk to their health care provider.

In addition, we recently announced a new collaboration with entrepreneur and advocate, Paris Hilton, to increase awareness of ADHD and Jornay PM. We believe her firsthand experiences with ADHD being diagnosed as a young adult and being treated with Jornay PM will resonate with our target audiences.

Overall, we're seeing a high level of engagement across our digital marketing channels and are encouraged by the increasing interest in Jornay's differentiated profile.

Lastly, as we look at the payer landscape for 2026, we expect to improve coverage for about 2 million lives. We don't expect any negative formulary changes to the strong coverage that Jornay has across the commercial and Medicaid books of business.

As I reflect on our first year promoting Jornay, I'm encouraged by our team's performance. I'm also extremely proud of our support of the ADHD community. We recently had the opportunity to present posters at 2 medical conferences, providing insight into real-world use of Jornay, and we honored patients during ADHD awareness month in October. We're committed to supporting this community and strive to improve care for patients living with ADHD.

Looking ahead, we're motivated and well positioned to finish the year strong and carry this momentum into 2026.

Turning to our pain portfolio. Collegium has long been the leader in responsible pain management with a unique and differentiated portfolio of medicines. Belbuca, Xtampza ER and Nucynta ER collectively represent approximately half of the branded ER market. Our pain portfolio is highly differentiated with strong brand fundamentals. Belbuca remains the only long-acting opioid medicine that uses buprenorphine buccal film technology. In market research, it was ranked as the #1 branded ER opioid in terms of differentiation and favorability.

Similarly, Xtampza, the only extended-release oxycodone medicine that uses our proprietary best-in-class abuse-deterrent technology, DETERx, was ranked as the #1 ER oxycodone medicine in terms of differentiation and favorability.

In the third quarter, combined quarterly revenues from our pain portfolio reached an all-time high, performing ahead of our expectations and continuing to fuel the financial strength of our business. Prescription performance was in line with our expectations across the portfolio, reinforcing our belief that the life cycle of these medicines may prove to be longer and more robust than is currently appreciated in the market.

We're committed to maximizing revenues from our pain portfolio in 2026 and beyond through a combination of driving demand for our highly differentiated products and enhancing the profitability of each brand. We have broad coverage for our pain products and do not expect to have any major payer changes in 2026. For Xtampza ER, we did secure exclusive formulary access for approximately 1.7 million commercial lives effective January 1.

Finally, we continued our history of leadership at PAINWeek 2025, where we presented 9 posters highlighting real-world data, underscoring the differentiation of our pain portfolio and celebrated pain awareness month. We're proud to be the leader in responsible pain management, lead with the science and support patients living with severe and persistent pain.

This has been another quarter of strong commercial performance and execution. For the remainder of the year, we're focused on finishing strong and generating momentum to ensure a fast start in 2026.

I'll now hand the call over to Colleen to discuss financial highlights.

Thanks, Scott. Good morning, everyone. Q3 was another strong quarter. We delivered record total revenues of $209.4 million, up 31% year-over-year. Adjusted EBITDA of $133 million, up 27% year-over-year and are on track to achieve our updated full year 2025 guidance.

We also generated robust operating cash flows of $78.4 million, repaid $16.1 million of debt and ended the quarter with $285.9 million in cash, cash equivalents and marketable securities, demonstrating the strength of our balance sheet. Our strong performance enabled us to raise our 2025 financial guidance, which I will detail shortly.

Financial highlights for the third quarter of 2025 include net product revenues were $209.4 million, up 31% year-over-year. Jornay PM net revenue was $41.8 million. Belbuca net revenue was $58.3 million, up 10% year-over-year. Xtampza ER net revenue was $50.5 million, up 2% year-over-year. Nucynta franchise net revenue was $54.8 million, up 21% year-over-year. Nucynta revenues increased year-over-year, primarily due to profitability improvements from gross to net, consistent with our payer strategy as well as certain rebate settlements benefiting the quarter.

GAAP operating expenses were $67.1 million, up 8% year-over-year. Non-GAAP adjusted operating expenses were $55.7 million, up 60% year-over-year. As a reminder, the increase in operating expenses reflects ongoing costs to commercialize Jornay as well as the targeted investments we've made to drive future growth, including the expansion of our sales force and new marketing campaigns.

GAAP net income was $31.5 million, up 238% year-over-year. Non-GAAP adjusted EBITDA was $133 million, up 27% year-over-year. GAAP earnings per share was $1 basic and $0.84 diluted compared to GAAP earnings per share of $0.29 basic and $0.27 diluted in the prior year period. Non-GAAP adjusted earnings per share was $2.25 compared to $1.61 in the prior year period.

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

In addition, we generated $78.4 million in cash from operations and ended the quarter with $285.9 million in cash, cash equivalents and marketable securities as of September 30.

As a result of our continued strong performance in the first 9 months of the year, we are raising our 2025 full year guidance. We expect total product revenues in the range of $775 million to $785 million. This represents a 24% increase year-over-year, driven by our lead growth driver, Jornay PM and supported by continued performance from our pain portfolio.

We expect Jornay revenue to be in the range of $145 million to $150 million, driven by both increased demand and gross to net improvements. As we've done in the past, we seek to balance achieving broad coverage with enhancing profitability by managing gross to net, and we have taken the same approach with Jornay. Gross to net for Jornay was 62% in the third quarter, and we expect further improvement in Q4, resulting in full year gross to net to be in the mid-60% range.

We expect adjusted EBITDA in the range of $460 million to $470 million, a 16% increase year-over-year. Adjusted operating expenses are expected in the range of $235 million to $240 million. The increase from 2024 reflects ongoing targeted investments to support Jornay's near-term growth and drive significant momentum in 2026 and beyond.

We remain committed to creating value for our shareholders through disciplined capital deployment. Our strategy balances expansion through business development, opportunistic share repurchases and rapid debt repayment. As Vikram mentioned, we remain actively engaged in evaluating potential opportunities to further expand and diversify our portfolio.

Year-to-date, we have returned $25 million of value to shareholders through an accelerated share repurchase program, and we have $150 million remaining in our current Board-authorized share repurchase program that we can opportunistically leverage through December 31, 2026. Our ongoing authorization reinforces the importance of share repurchases as a key component of our capital deployment strategy.

In the third quarter, we repaid $16.1 million of our term loan and ended the quarter with net debt to adjusted EBITDA leverage of approximately 1.2x. We expect to repay an additional $16.1 million in the fourth quarter and to end the year with net leverage of less than 1x.

I will now turn the call back to Vikram.

Thanks, Colleen. In summary, we delivered another strong quarter, which has prompted us to raise our full year financial guidance. We are determined to carry this momentum through the remainder of the year and into 2026.

As we look ahead, we remain focused on our capital deployment strategy to further expand and diversify our business, while creating value for our shareholders. And importantly, we are committed to improving the lives of patients living with serious medical conditions who are at the forefront of everything we do.

I will now open the call up for questions. Operator?

[Operator Instructions]

First question comes from Dennis Ding from Jefferies.

This is [Anthea] on for Dennis. Congrats on the great quarter. First question, for Q3 script growth was clearly very strong, but curious how return reserves and inventory also played into that in addition to gross to net improvements?

And then secondly, on the expanded sales force, do you see that having a major impact on Q3 already? Or should we actually expect more of an acceleration in Q4 in 2026?

I'll take that first question, and then I'll hand it off to Scott for the second half. So for Jornay gross to net, as expected, gross to net has improved in the third quarter as compared to the first half of the year. As a point of comparison, Q1 gross to nets was 70%, Q2, 67% and 62% in the third quarter, as just mentioned.

And we now expect gross to nets to be in the mid-60% range relative to our previous expectation of upper 60s. What's really driving that improvement on the gross to net front is the -- through the year improvement is seasonality. And then broadly, it's also improving returns rates and favorable contracting.

All right. And to your question on the sales force, so no, there was not significant impact in the third quarter as it relates to the expansion of the sales force. What I'd say is we're beginning to see, as I said in my prepared remarks, some early signals of impact, right? We're reaching more customers. I'd say the biggest numerical thing is we expanded our sales force from 17 -- I mean, our target universe from 17,000 to 21,000 targets and 3,800 of those wrote a prescription. So that's a good signal, but not significant impact in the third quarter, and we really expect most impact as we get into 2026 and beyond.

Next question, Brandon Folkes with H.C. Wainwright.

I do want to just follow on from the prior question. Can you help us just think through -- so on Jornay, the net revenue, I think if we look at prescriptions 3Q over 2Q, it looks like it grew 3.2%. Gross net obviously improved from 67% to 62%. Revenue quarter-over-quarter is up 28%. Can you just sort of answer the question about inventory movements? It does seem to be flowing through to 4Q, if I look at the new guidance. So can you just help us understand the net price tailwinds in the back half of this year? And is that dynamic expected to be similar in 2026?

Thanks a lot for the question, Brandon. So in our space, all of our products, given that they're controlled substance, inventory is on average around 15 days on hand. We don't see much fluctuation from that up or down a few days. Jornay for the third quarter, I believe, was 17 days on hand.

And as far as the gross to net, so what has improved this year, so I'll separate. In each year, you would expect higher gross to nets in the first half, particularly in the first quarter due to deductible resets and those typical seasonal patterns.

In addition to that, what we have seen that has been better than our expectations is improved returns rates and improved contracting. And so looking forward to 2026, what I would say is the seasonality associated with the first half versus second half dynamic will exist due to those Q1 resets. And we would expect full year gross to net to be stable now in about this mid-60s range.

Next question, Les Sulewski with Truist Securities.

This is Jeevan on for Les. And congrats on the progress. So now that we're in November, how has the adherence rate for Jornay been trending since beginning of back-to-school season?

And then also in terms of M&A, when you look across your BD funnel, have you gotten to the due diligence stages on anything? And if so, what are some factors that might dissuade you from closing on a effective deal?

Yes. Thanks for the questions. I'll have Scott answer the question on Jornay. And then I'll take the BD question. Go ahead.

Yes. Thanks. Related to adherence, there's no surprises when it comes to the adherence rate for Jornay PM. It's in line with all ADHD medications where we see a typical adherence curve of 9 to 10 months per TRx.

Yes. On the BD question, I mean, I think we wouldn't comment on any specific opportunities that we're in process on. But what I would say is I would reiterate what I said in my prepared remarks. We remain active in our business development efforts as we have been in the past. And at a point when there is something to be discussed, obviously, we will make folks aware.

But as a reminder, I want to reiterate what I said about our overall capital deployment strategy. It's a balance of business development and expanding our portfolio, opportunistically repurchasing our shares and continuing to strengthen our balance sheet by repaying debt. And what you should expect is that balance to continue.

Next question, Serge Belanger with Needham & Company.

This is John on for Serge today. Congrats on the quarter. So sticking with GTNs, Nucynta had a really solid quarter. And I believe in the past, you've highlighted GTNs for 2025 for this product to be in the range of roughly 40%. Just curious to see where they were in the third quarter? And if you can provide any additional color on the rebate settlements and how much of an impact that had, that would be great.

John, just to clarify, which product was that question on? You cut out a bit.

Nucynta.

Okay. Great. I wanted to make sure. Thanks for the question. For the overall Nucynta franchise, obviously, Nucynta IR and Nucynta ER travel a little bit different. The rebate settlement benefit in the third quarter was just under $3 million at $2.8 million. That was really a timing difference. It was a benefit in the third quarter that was really attributable to first half activities. For gross to net rate in the third quarter, Nucynta IR was at -- because of that benefit, 28.5% and Nucynta ER was 31.8%.

David Amsellem with Piper Sandler.

This is Alex on for David. Maybe just to circle back to business development. How large a transaction would you contemplate given the current capital structure? And when would you be willing to take on R&D risk? Also related to BD and M&A, are you led to pain or CNS? Or are you thinking more broadly?

Yes. Thank you for the question. As far as the size of business development transaction, I think what we've previously said is we are willing to take on -- lever up to about 3x net debt over EBITDA. And as Colleen mentioned, we ended this quarter in Q3 at about 1.2, and then we expect to end the year less than 1x.

In terms of the area of -- the therapeutic area, look, our priority is going to be those areas where we can create some operational leverage from the investments that we have made, right? So if you think about pain, where we have 100-person sales force, now with Jornay, we have a 180-person sales force that calls on roughly half and half about equally split between pediatricians and psychiatrists.

So when we think about call point synergies, those would be the target areas that we would look at. But we're -- as I've said before, we are willing to look beyond that. However, the bar is higher. And in order for us to look beyond that and create a third stool of the leg or third leg of the stool, sorry, it would need to be a capital-efficient area, right?

So we've discussed those in the past as well. So at the end of the day, what we'd like to do is continue to think about additional BD opportunities that are in -- that are commercial assets or very near commercial assets, thinking just from a risk standpoint. And your question more around BD -- pipeline and development stage, I don't think that's something that we can take on today.

Down the road, once we have scaled the company and built another commercial leg, so to speak, to the company, we can contemplate that. But at this point in time, we are focused on commercial or very near commercial assets.

I would like to turn the floor over to Vikram for closing remarks.

Okay. Well, thank you, everyone, for joining the call this morning. Enjoy the rest of your day.

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.