Collegium Pharmaceutical, Inc. (COLL) Q3 2026 Earnings Call Transcript

Operator: Greetings, and welcome to the Collegium Pharmaceutical Third Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during this conference call, Please note that this conference call is being recorded. I will now turn the call over to Ian Karp, Head of Investor Relations.

Ian Karp: Thank you. You may begin. Great. Thanks, Maria, and welcome to Collegium Pharmaceuticals third quarter 26 Earnings Conference Call. I am 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, and that any forward looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 2000. We are cautioned that such forward looking statements involve risks and uncertainties, 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 will now turn the call over to our President and CEO, Vikram Karnani.

Vikram Karnani: Thank you, Ian. Good morning, everyone, and thank you for joining our third quarter 26 earnings call. Collegium is a dynamic commercial stage biopharmaceutical company focused on improving the lives of people living with serious and often misunderstood conditions. Our success is built upon our proven ability to acquire, integrate and grow differentiated medicines while creating long term shareholder value. This strategy has established a portfolio of 6 differentiated medicines, reflecting the significant evolution our company has undertaken over the past several years. ADHD has become our lead growth driver, accounting for more than 36% of total revenue. Up from just 19% last year. With Jornay PM and Azstarys, we have 2 complementary medicines supported by an expanding commercial platform to drive future growth. Meanwhile, our pain portfolio continues to generate robust cash flows providing the financial flexibility to invest in our ADHD portfolio and further diversify our business. The team at Collegium remains focused, invigorated, and committed to making a meaningful difference in the lives of patients and creating long term value for our shareholders. We delivered record quarterly net revenue of $216.3 million up 3% year over year. Driven by growth in ADHD during the important back to school season. Key achievements this quarter included Jornay PM prescriptions grew by 16% generating a record $59.5 million in net revenue, up 24% year over year. Jornay PM prescribers also reached another all time high with nearly 33 thousand healthcare providers writing Jornay PM prescriptions in the quarter, up 19% over Q3 of last year. Our investments in Jornay PM are translating into broader prescriber and continued prescription growth. Azstarys generated $26.5 million in net revenue during its first full quarter under our ownership. Prescriptions grew nearly 2% year over year, following a decline in 2025. This is an early indication of the opportunity to grow Azstarys through our expanded ADHD commercial platform. Our pain portfolio generated $138 million in revenue during the quarter, continuing to make a meaningful contribution to our business. Performance was in line with our expectations and consistent with our 2026 full year financial guidance. Turning now to other recent corporate updates. We are continuously seeking ways to support the ADHD patient community And in October, which was ADHD awareness month, we announced 2 new initiatives. First, we launched Start Talking ADHD, our online resource hub offering practical guides to people living with ADHD and their caregivers. And next, we established a new multiyear partnership with Boston Legacy FC Boston Professional Women's Soccer Club, focused on promoting inclusion and accessibility through youth coach training and annual Sports for All Summit and sensory inclusion programs designed to support neurodivergent children and their families including those living with ADHD. We also further advanced our capital allocation strategy by returning capital to shareholders through a $50 million accelerated share repurchase program announced in the third quarter. We expect to complete the full repurchase amount before the end of the year and have $100 million remaining on our share repurchase program that was authorized by our Board last July. As we look toward the end of 2026 and move into next year, we remain focused on 3 key strategic priorities:. Growing our ADHD business maximizing the value of our pain portfolio and strategically deploying capital to create long term shareholder value. Our ADHD portfolio performed particularly well in the third quarter, further supported by our promotional activities expanded sales force and the back to school season. The momentum across our ADHD business has enabled us to reaffirm our full year 2026 guidance, which includes $190 million to $200 million in 31% increase year over year at the midpoint, and $65 million to $75 million in partial year Azstarys revenues. In pain, our focus is on maximizing portfolio value and cash generation. That cash flow supports investment in ADHD and provides flexibility to pursue business development, repay debt, and return capital to shareholders. Turning to our leadership position in ADHD, we now have a unified commercial organization focused on accelerating growth and maximizing operational leverage. And at the foundation of this franchise are Jornay PM and Azstarys, 2 differentiated and complementary medicines that serve different patient types, allowing us to address the unmet needs of a wide range of patients. Both medicines can last all day, and offer a smooth offset helping to avoid a treatment crash, which can be seen with other ADHD medicines. The main differences between Jornay PM and Azstarys are in the timing of their symptom control. Jornay PM is the first and only stimulant dosed at night, delivering symptom control without delay upon awakening. Jornay PM is often preferred by the patient whose symptoms are particularly challenging first thing in the morning and who needs their all day symptom control to start immediately upon awakening. Azstarys is the first and only ADHD stimulant treatment with both fast and long acting medicines in 1 capsule, delivering rapid all day symptom control. Azstarys is often preferred by the patient who has more variability in their daily schedule, and needs the flexibility of rapid onset symptom control and efficacy to last later into the evening. In fact, driven by our targeted investments, and enhanced commercial efforts, HCP perceptions of Jornay PM are increasingly positive. Based on market research completed earlier this year, HCPs had a high favorability rating and ranked Jornay PM as the number 1 branded ADHD medicine in terms of product differentiation. With a score significantly higher than all other medicines in the same category. The same market research conducted prior to Collegium's acquisition of Azstarys, also yielded important insights into Azstarys' market opportunity. Namely, it was viewed as meaningfully differentiated in the ADHD treatment landscape, and more than half of physicians surveyed indicated an intent to increase prescribing in the future. We believe there is a significant opportunity to increase HCP perception of Azstarys in the months and quarters ahead by utilizing our enhanced ADHD commercial platform. And encouragingly, Collegium ranked #1 in reputation among pharmaceutical companies specializing in ADHD. Combined, Jornay PM and Azstarys now command a approximately 55% share of the total branded long acting methylphenidate market. With the majority of the long acting methylphenidate market comprised of generics, we believe there remains a significant opportunity to capture additional share particularly among patients who are dissatisfied with their current generic treatment. This quarter, Jornay PM remained the fastest growing stimulant for the treatment of ADHD, and demonstrated strong performance across a number of key metrics. Prescriptions grew 16% year over year, Prescribers hit an all time high with nearly 33 thousand healthcare providers writing Jornay PM prescriptions, up 19% year over year. Jornay PM's share in the branded long acting methylphenidate market also hit an all time high at approximately 30% up 6.5 percentage points year over year. We also 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 13% year over year. Growth was even stronger in the adult segment, representing about 20% of our overall prescriptions, which grew 27% year over year. New to brand prescriptions provided another measure of potentially accelerating demand capturing patients who were new to Jornay. Or have not received a prescription in the prior 12 months. In September, the first full month of the back to school season, new to brand prescriptions grew 22% year over year. And that momentum has accelerated in October. Bolstered by the back to school season, Jornay PM delivered particularly strong performance this quarter and our priority is to sustain prescription growth throughout the remainder of the year. This was also our first full quarter promoting Azstarys, and we are just beginning to see the benefits of having 2 differentiated and complementary ADHD medicines in our portfolio. In addition, prior to our acquisition of Azstarys, commercial investment in the product was limited and at times inconsistent. This likely contributed to Azstarys total prescriptions declining by nearly 2% in 2025. Despite these declining volumes, market research suggested that Azstarys was the second most differentiated stimulant brand following Jornay PM. With its strong brand fundamentals, coupled with our commercial expertise and track record of growing acquired products, we believe that we can maximize Azstarys' growth potential in the years ahead. And we have already started to see early signs of success with prescriptions up nearly 2% year over year in the third quarter, following an annual prescription decline in 2025. Importantly, Azstarys has IP protection through 2037 extending the life cycle of our commercial portfolio and giving us additional time to maximize the reach and full value of Azstarys. Following the close of the Azstarys acquisition in May, we were able to rapidly and seamlessly integrate Azstarys into our commercial infrastructure. We have made targeted investments, expanding our ADHD commercial team and capabilities. We grew our ADHD sales force to about 190 reps, up from 180 prior to the acquisition, and our target HCPs to about 27 thousand up from 21 thousand pre-expansion in 2025. We also recently expanded our medical affairs team to better support both products from a clinical standpoint. All of our sales representatives were fully trained and selling both products to their targeted HCPs in July ahead of the back to school season to maximize impact. We are now deploying our targeted HCP, patient, and caregiver marketing efforts for both Jornay PM and Azstarys. Early initiatives include focused AI targeted digital marketing campaigns, peer to peer programming and increasingly shifting investment towards awareness driving brand campaigns built on each product's clinical strengths. Turning to our responsible pain management business. This portfolio comprised of Belbuca, Xtampza and Nucynta, continues to provide a solid foundation for Collegium that through its strong cash generation provides financial flexibility to invest in the growth of our ADHD business execute disciplined business development opportunities and return capital to shareholders. BELBUCA delivered solid performance again this quarter, with revenues of $57.7 million broadly flat year over year and sequentially. Xtampza revenue declined year over year reflecting continued payer pressure across the branded long acting opioid market that accelerated at the start of this year. Prescription levels, however, increased slightly in each sequential quarter of 2026 including approximately 3% growth in Q3 compared to Q2. Looking ahead, we expect similar prescription levels for the remainder of 2026 and are encouraged that a large payer representing about 15 million covered lives will move Xtampza into an exclusive formulary position on January 1, 2027. Nucynta franchise revenue also declined year over year driven largely by generic competition. But encouragingly, prescription volumes for our branded products have remained relatively consistent over the past 3 to 4 months, and pricing for the authorized generics was stable, between Q2 and Q3. Our sales expectations for the remainder of the year are appropriately reflected in our full year revenue guidance. In summary, while we are seeing some expected pressure on our legacy pain business this year, particularly for Nucynta, we continue to expect this business to remain a durable contributor to revenue, earnings and cash flow in the years ahead. I will now hand the call over to Colleen to discuss our financial highlights, before I return with some concluding remarks.

Colleen Tupper: Thanks, Vikram. Good morning, everyone. In the third quarter, we saw significant growth in John APM, strong contribution from our first full quarter of Azstarys ownership and meaningful revenues from our pain portfolio. Financial highlights for the third quarter include: total net product revenues were $216.3 million in the quarter, up 3% year over year. Jornay PM net revenue was $51.9 million in the quarter, up 24% year over year. Azstarys net revenue was $26.5 million in its first full quarter under Collegium ownership. BELBUCA net revenue was $57.7 million in the quarter, down 1% year over year. Xtampza ER net revenue was $45.8 million in quarter, down 9% year over year. Total Nucynta franchise net revenue was $30.8 million in the quarter, down 44% year over year. This includes $4.2 million in revenue from the profit share on the authorized generic versions of Nucynta and Nucynta ER. GAAP operating expenses were $96.7 million in the quarter, up 44% year over year. Adjusted operating expenses were $69.4 million up 25% year over year. GAAP net income was $21.8 million in the quarter compared to net income of $31.5 million in Q3 of 2025. Non GAAP adjusted EBITDA was $121.6 million in the quarter down 9% year over year. GAAP earnings per share were $0.69 basic and $0.60 diluted in the quarter compared to earnings of $1 basic and $0.84 diluted in the prior year quarter. Non GAAP adjusted earnings per share was $1.96 in the quarter compared to $2.25 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 $86.5 million in the third quarter and as of September 30, 2026, we had $144.8 million in cash, cash equivalents and marketable securities. We are reaffirming our 2026 financial guidance today. We expect Jornay PM net revenues in the range of $190 million to $200 million and Azstarys net revenue in the range of $65 million to $75 million. We expect total product revenues in the range of $825 million to $855 million This represents an 8% increase year over year at the midpoint driven by the strong performance and rapid growth in our ADHD portfolio partially offset by lower pain portfolio net revenue. We expect adjusted EBITDA in the range of $445 million to $470 million essentially flat compared to 2025. Our capital allocation 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 have successfully and efficiently integrated Azstarys' into our portfolio and are already generating prescription growth in our first full quarter owning and promoting the product, following prescription declines last year. We also returned value to shareholders through the execution of a $50 million accelerated share repurchase program which began in Q3 and is expected to be complete before the end of the year. And due to our robust cash generation, we ended the third quarter with net debt to adjusted EBITDA of approximately 2x. I will now turn the call back to Vikram for final remarks.

Vikram Karnani: Thank you, Colleen. Our third quarter results demonstrate the positive ongoing evolution of Collegium. Record revenue and ADHD business that now contributes more than 30% to our top line and a pain portfolio that continues to generate cash to support our long term strategy. We are pleased to be reaffirming our 2026 guidance today and excited by what the future holds. Our commercial capabilities and financial flexibility position us well to pursue our next phase of growth and create long term shareholder value. We look forward to providing you with updates on our progress in the future. With that, we will now open the call up for Q&A. Operator?

Operator: Thank you. We will now be conducting a question and answer session. You may press 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. 1 moment please while we poll for questions. Our first question comes from Liz Sulewski with Oppenheimer. Please proceed with your question.

Liz: Great. Thank you. Congrats on the progress. A couple for me. First on Azstarys, with the first full quarter of Azstarys now behind you, what are some of the puts and takes around accelerating patient starts? And, what can we, what can move prescriptions beyond the low single digits, and where does GTN now stand versus the initial 74%?

Vikram Karnani: Yes. Liz, thanks for the question. Maybe I will start with the puts and takes on Azstarys from a what-effort will drive descriptions higher and then I will have Colleen comment on gross to net. Look, I think when we announced the deal back earlier this year, our research indicated that Azstarys is a highly differentiated brand for ADHD. Has rapid onset of action, gives patients, the flexibility Those patients that need flexibility in their schedule, that need rapid onset of action, and need control well into the day. And most importantly, prevent a crash when there-- when there is a by way of providing a smooth offset. And this is a particular differentiator for Azstarys. Primarily due to the prodrug component within the within the capsule. This is broadly recognized by physicians and our expanded commercial platform which now consists of 190 reps, is out there making sure that there is broad awareness of Azstarys and its merits. That has been very well received by physicians, and I said. And as I said in my prepared remarks, when a rep presents a physician with both options, Jornay PM and Azstarys it actually cast the whole portfolio in a really nice very good light for physicians, give them more options for their patients. Beyond that, as I also said in my prepared remarks, prior to the acquisition, Azstarys really did not have much, by the way, of marketing campaigns or digital marketing efforts or any such initiatives, Recall, we put them in place for Jornay PM last year, and we saw the results. And we expect to do the same thing with Azstarys now moving forward, and that should drive growth higher into the future from a prescription standpoint. Maybe on the gross-to-net, Colleen?

Colleen Tupper: Yes, absolutely, Les. Thanks for the question. So gross-to-nets for the third quarter for Azstarys were 73.4%. That compares to the figure you mentioned of 74.1% in the second quarter. I would say the slight improvement is a little bit more of a timing than a specific element. We do believe there are maybe some opportunities to improve gross-to-nets, and this is something we will continue to evaluate over the coming months. Our market access strategy remains focused on balancing broad patient coverage with enhancing the profitability by managing those gross-to-nets. And we expect to continue to evaluate any potential opportunities for improvement with that strategy in mind.

Liz: Thank you both. that is very helpful. Just to move on to BELBUCA. So for the access changes, how much incremental demand are you seeing from the additional 9 million covered lives And what rebate investment was required and when should that access translate to uptake? And then just separately, with January approaching, has anything changed in your assessment of a potential generic launch Have you observed any changes in payer contracting or wholesaler purchasing? And how are you incorporating that uncertainty into 2027? Thank you.

Vikram Karnani: Thanks, Les. Maybe I will address the payer question. it is very early days. I do not know that we can clearly point to expanded demand on BELBUCA just yet. it is something that has to play out a little bit over time. So as we observe that play out, we will continue to keep you updated. I know you had another question that was specifically related to the potential generic launch. Maybe I will kick that over to.

Colleen Tupper: Yes. Great, Les. So I will try to hit. You had a couple points there. So just come back if I if I miss anything. But, you know, as Vikram said, early days on the pay change, no change to our guidance since our latest update. We will look forward to providing 2027 in the early days of 2027. But to step back and think about what we are monitoring here because of the you know, potential generic entrant. For BELBUCA, as you saw, had another solid performance in the third quarter. With revenues flat to the second quarter of this year. Recall the BELBUCA revenues were up 10% year over year in Q2. In our view, BELBUCA has only limited risk of near term generic entrants. To date, we have not seen any specific signs that Teva plans to launch a generic version. After January 23, 2027, which is the settlement date. In terms of signs of what we are monitoring, Teva would need to receive ANDA approval from the FDA, and we would expect to see pricing information published in compendia for the generic product. We would also expect to start hearing from the drug wholesalers and distributors as they typically contract in advance of a generic launch. So to date, we have not seen any of those signals And based on our past generic launches, we would expect to see some or all at least a month or even earlier before the impending launch. So we watch this very closely. As far as what our activities and actions are leading into that date, Given the uncertainty, we continue to invest behind BELBUCA, and we will do so through that date and really take action very quickly if an event does come to bear.

Liz: Very helpful. Thank you.

Operator: Thank you. Our next question comes from Daniel Clark with Leerink Partners. Please proceed with your question.

Daniel: Great. Thank you. Good morning. Congrats on the nice quarter here. Just wanted to ask about the ADHD franchise a little bit. How are you thinking about at this point sort of where the overlap sits in terms of the prescribing base between Jornay and Azstarys? And what is the receptivity been from Jornay PM prescribers when your reps are showing up with Azstarys now that it is in their sales bag? And then just a quick 1 on gross to net, just curious where you think Azstarys' gross-to-net can kind of trend relative to Jornay? Thank you.

Vikram Karnani: Yes. Thank you, Daniel. I will take the first part of the question and Colleen will comment on the gross-to-net. I think, as I said earlier, we have a single efficient sales force now selling both products, and focused on activating new HCPs and increasing the depth of prescribing. Based on growing opportunities in ADHD, we increased the size of our sales force and target HCP universe twice in the last 2 years. And as I stated previously, our current sales force is about 190 representatives. Promoting both Jornay PM and Azstarys targeting about 27 thousand HCPs. The early insights suggest that HCPs are more receptive to seeing a single rep, promoting both brands which helps improve the commercial efficiency and expands our reach. We also have targeted patient and caregiver outreach particularly through social media platforms, that has successfully increased awareness and trials for our Jornay PM and represents an additional opportunity across both brands. I think maybe I will also answer add another comment. Jornay PM and Azstarys are both differentiated but complementary to each other. That they serve different patient types. Jornay PM is the only stimulant ADHD medication with evening dosing, that provides symptom control immediately upon awakening and throughout the day. Azstarys is the first and only ADHD treatment with both fast and long acting medicines in 1 capsule. And when a single representative presents both of these options to prescribers, it gives us the opportunity to serve a wide variety of patients in their practice. That has been very well received by prescribers.

Colleen Tupper: Great. Thanks for the question on Azstarys gross-to-net As noted, we do believe there is opportunity for improvement on the Azstarys gross-to-nets. I, at this point, am not willing to communicate a specific target. I will give a little bit of extra color on the contrast with Jornay PM, though, to give you a little bit of more context. When we acquired Jornay PM, that first year, gross-to-nets were in the low 70s, and we were able to come down to about mid-60s for the full year of 2025 and that is what we have communicated we expect for 2026. That significant step down both in quantum as well as its quick as it was largely driven by increased improvements in returns rates. As product that had been sold into the channel through a time of demand volatility as well as short dating. As that product flushed through, that returns rate improved, and that helped get us quickly to step down the gross-to-net. I do not expect that to repeat with Azstarys, although we are confident there are incremental changes that we will make over time. And we look forward to updating you. When I have a clearer sight to that, I will start getting some additional context.

Daniel: Got it. Super helpful. Thank you.

Operator: Thank you. Our next question comes from Dennis Ding with Jefferies. Please proceed with your question.

Noah: Hey, good morning. This is Noah on for Dennis. Congrats, and thank you for taking our question. So our question is about business development So we know that the business model is around growing assets, delevering, and repeating But stepping back and looking across your business, have you considered a transformational type of deal, more specifically around monetizing your underlying pain business, which seems to be putting pressure on your multiple? Thank you.

Vikram Karnani: Thanks for the question, Noah. Look, I think when we have talked about business development, previously, I just want to reiterate that our strategy remains unchanged from a business development standpoint. As we have demonstrated quite successfully over the last several years, have a proven track record of acquiring differentiated assets integrating them very quickly and seamlessly into the company, and then growing them. This. That is what we are focused on. To your question about transformational opportunities, or anything like that, We are always open. We are always opportunistic. We are. We consider every idea that comes our way. But I do not know that we can specifically comment on a particular transformational opportunity that we are looking at. So, I would just go back and say that our BD strategy and approach remains consistent to what we have described before. And I would actually take it 1 step above and say our capital allocation strategy as a whole remains consistent to what we have said before. Anytime we have a significant amount of cash that we can invest. We look across the board at BD opportunities, paying down debt, and or returning capital to our shareholders. And all 3 approaches remain a part of our priority set.

Noah: Thank you. Thanks.

Operator: Our next question comes from Brandon Folkes with H. C. Wainwright. Please proceed with your question.

Brandon Folkes: Hi, thanks for taking my question and congrats on the quarter. Just to follow on from the prior question to start. How do you think about your absolute debt load currently especially given the overhang of the exclusivity loss on BELBUCA, in your view, what would get you to reduce some of the debt over the share buyback program And then secondly, can you just talk about some of the pushes and pulls in the implied 4Q Jornay PM revenue guidance. Thank you.

Vikram Karnani: Thanks, Brandon. Going back to your question about how we think about capital allocation and paying down debt. Again, I think we remain consistent to our strategy that we have always laid out. When we have access to cash, we look across the board and look across. Look at what the debt looks like on the balance sheet, what opportunities might be out there. it is always a judgment call on where you choose to invest and drive maximum, long term shareholder value for our shareholders. And that is that is exactly the approach that we will continue. Your second question was about push and pulls for Jornay PM in terms of the full year. I mean, we remain focused on driving prescription growth and prescriber growth. Which is what we can control. Through the rest of the year. Just recall, we are in the back to school season, which is a really important part of the year for the ADHD medicines. You think about back to school season, it just does not start and stop in the early part of the fall. It actually continues into. Well into the into the fourth quarter. Sometimes. And so I think we are continuing to-- as I said in my remarks, we saw new to brand RXs were up 22% in September, and we have seen that momentum continue into October. So we are still in the middle of the back to school season, We expect that we will continue to drive prescription growth. Expand the base of prescribers, and this is our plan for both Jornay and Azstarys. We will keep you updated as we close out Q4.

Brandon Folkes: Great. Thank you very much and congrats on the quarter. Thanks, Brandon.

Operator: Our next question comes from Serge Belanger with Needham. Please proceed with your question.

Serge Belanger: Hi, good morning. Just a couple for us. First on the ADHD portfolio, given the differentiation between your 2 products and the fact they address slightly different patient segments should we expect seasonality impacts to differ on each of the products? And then secondly, regarding BELBUCA, I guess for Colleen, We saw some stabilization in the price from 2Q to 3Q. Do you expect any additional movements going forward on the price level sort of for Belbuca? Thanks.

Vikram Karnani: Serge, just to clarify, do you mean Nucynta on the second question?

Serge Belanger: Yes. Yes. Thank you. You are right. Correct.

Vikram Karnani: Why do not you just restate that question?

Colleen Tupper: So let me take that 1 on. Serge, broadly, yes, I would expect consistency here with, you know, a couple full quarters in. With the authorized generic in the marketplace. We do not expect from that side that there will be significant additional changes in the gross-to-net. there is always, you know, as they are making decisions as they go into each new calendar year, that is a consideration. But, you know, as mentioned in the prior calls, with the gross-to-nets as high as they are, there frankly is not a whole lot more that we would expect on the volatility side from pricing.

Operator: To take your question on ADHD, I think your question, Serge, was do the back to school dynamics play out differently for Azstarys and for Jornay PM, given that we serve different patient types.

Vikram Karnani: So recall that Jornay PM, about 80% of the prescriptions, 80% of the business, is from pediatrics and adolescents. So when you think about back to school for Jornay PM, it is a really important part time of the year. And Azstarys, given the different profile of the medicine, the split between pediatrics and adults is a little bit different. it is about 2/3 pediatrics and about 1/3 adults. So the ratio skews a bit more towards the adults. That said, 2/3 of the business still does come from pediatrics. So back to school season is equally important for Azstarys as well. And so I think while we do play out the different patient types, and yes, you are right, the adult segment does play a little bit more of a role in Azstarys. Broadly speaking, the large majority of both medicines business comes from the pediatric segment. And that is why the back to school season is really important for both.

Serge Belanger: Great. Thank you.

Vikram Karnani: Thanks, Serge.

Operator: Our next question comes from Alexandra von Riesemann with Truist Securities. Please proceed with your question.

Alex: Hi. Thanks for taking our question. For Azstarys, it is great to see a return to growth What growth rate are you building toward for 2027? And without necessarily providing formal guidance today, what prescription growth trajectory and normalized revenue base should investors use to assess success in 2027?

Vikram Karnani: Thank you, Alexandra. I do not think we are in a position to comment on specific numbers or percentages either of growth in prescriptions or revenue. What I would say, though, is it is very, very encouraging to already see Azstarys return to growth. We expect that growth to continue. We would expect to see that growth accelerate from where the levels that it is at right now. Recall that prior to the acquisition, Azstarys was promoted by a much smaller sales force and therefore being promoted to a much smaller HCP universe. With our expanded platform, we are now able to target excess of 27 thousand prescribers with 190 reps. Therefore, the expanded platform is definitely going to create a significantly higher awareness of Azstarys in HCP offices. In addition, as for awareness creation with patients and caregivers directly that was not done at all prior to the acquisition. And so, this will be brand new awareness creation for Azstarys which we are in the process of beginning and supporting right now. And as you can imagine, those efforts have a little bit of a lag built into when you see the impact from those efforts. So we look forward to keeping you updated on how this plays out but we do expect to see growth increase and accelerate for Azstarys as we move into next year.

Alex: Great. Thanks.

Vikram Karnani: Thanks, Alexandra.

Operator: Our next question comes from David Amsellem with Piper Sandler. Please proceed with your question.

Alexandra von Riesemann: Hi, good morning. This is Alexandra on for David. Thanks for taking our question. How are you thinking about the longer term growth runway of Jornay PM specifically? And how do you envision growth in both pediatric and adult segments? And then secondly, also on Jornay PM, how do you envision access evolving as the footprint of the product continues to grow? And with that in mind, do you see the gross-to-net creeping up for the products over time? Thank you.

Vikram Karnani: Thank you. Thanks for the question. I think, Jornay PM, if you take a step back and think about the fact that, Jornay PM is a few years into its life cycle. And in spite of the fact that it is in a market with, you know, significant generic presence, we have still seen tremendous amount of growth, both in prescriptions and revenue, for Jornay PM. And part of this was related to the fact that prior to acquisition, the awareness of the brand, both with HCPs and with patients and caregivers, was relatively low. And as we have kept you updated on our market share increases for Jornay PM, we have seen significant increase for the. In growth as well as market share. For Jornay PM in the last few quarters, in the last 2 years that we have owned the brand. We expect that given that we play in a significantly large market, I mean, you take a step back and think about the overall market, 100 million overall prescriptions in 2025 in the ADHD market, a vast majority of that, almost 90% of stimulants, and a big component of that are methylphenidates. Right? So when you think about the headroom for future growth for Jornay, and this is this comment is also true for Azstarys, given the differentiated profile that both of these medicines bring, given the significant lack of awareness that exists with both HCPs and caregivers and patients, We expect this growth to continue. Overall, from a volume standpoint. And then maybe there is a question around gross-to-net.

Colleen Tupper: Yes. Absolutely, Alexandra. So I think Jornay PM already, benefits from a strong market access position with broad access, but we will always continue to look at expanding that. And what we would do is we are really looking to seek profitable, enhanced patient access. And so as we evaluate any of those opportunities, we really have an eye to overall net revenue, and what are the volume gains and gross-to-net impact as those opportunities arise?

Alexandra von Riesemann: Thank you.

Vikram Karnani: Thanks, Alexandra.

Operator: Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to Vikram for closing comments.

Vikram Karnani: 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.

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