COLL - Earnings call transcript Q4 2017 | Collegium Pharmaceutical, Inc.

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Operator

Welcome to the Collegium Pharmaceutical's Fourth Quarter 2017 Earnings Conference Call.

Before we begin today's call, we wish to inform participants that the forward-looking statements made today are pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

You are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation the risk that we will not be able to successfully commercialize Xtampza and Nucynta franchise that we recently licensed. Furthermore, we are a party to patient infringement litigation and may in the future be subject to additional litigation relating to our other product and product candidates, which may be expensive to defend and delay commercialization. These risks and other uncertainties of the Company are detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

differ those may today. expectations results future materially current from discussed Our would over call turn Collegium's I the Heffernan. to now CEO, Mike

Mike Heffernan

Good Paul Operating Brannelly, Officer. to welcome CFO; and year-end is afternoon, our fourth our Heffernan, you. Chief Ciaffoni, Mike by and This conference Collegium joined I'm Joe quarter call. Thank Pharmaceuticals and

leading a total in the for third who other recently growth Xtampza achieved the like fourth were only reviewing quarter is We the up their X.X million XX,XXX to emerging in the Xtampza We insight committed revenue of from do leader market. I’d IR Collegium with recent this our XXXX basis. advocating chronic into for prior prescriptions pain written responsible will to pain some differentiated XX,XXX established includes ER and XX% in full fourth-quarter results. licensing year U.S. and was prescriptions quarter not a were a Collegium million from in to dedicated truly of turn a as written start pain. the year XX.X of transformational and quarter, progress the providing innovative was for growth opioid balance to reported as in Nucynta opioid XXXX. pain This of Xtampza patients available describing management is market, positioned the product care. the relieve milestones. provide is opioid acute the comparative chronic have in for ER and those Collegium, ER brand on our supporting and for has by financial itself or their for options to the market There

the performance January in In As commercial alone. is our this insights strengthens XXXX OxyContin. a which head-to-head and resistance prescriptions crushing Xtampza the Joe of in written ER significantly few labeling FDA addition accelerated we to ER our into received the growth demonstrating provide our will fourth further also supplemental with in OxyContin approval additional we Xtampza minutes. almost XX,XXX with data differentiation some by quarter, of have NDA the between clinical Xtampza moved XXXX, versus

consistent guidance portfolio book an a family In addition oral and abuse-deterrent for Throughout claim ER opioids, providing Xtampza of now the in not XX have plan. four FDA’s label OxyContin patent patent includes Xtampza abuse our XXXX, XXXX. on to patents from the continue with IP strong does the until orange now have this build listed protection we

will in last that the a date phases of have varying the potential the prosecution passed XXXX. also expire additional to if number estate of strengthen applications existing extending patent We for granted continue patent with to

franchise Licensing fourth the novel the chronic and pain for pain new market established the leads U.S. pharmacology The We associated of of unique This for Nucynta U.S. signing Xtampza [ph] point differentiated IR consistent differentiated across mu-a brands XXXX. the affinity is with to chronic versus with consists It spectrum XX well the mission our Nucynta Nucynta also is times agonist community. with in of reported mode neuropathy. market. peripheral active including bringing from license less announced the tapentadol We in to dual action. the differentiated quarter blocker. receptor morphine of as consider pain in and novel This both highly and its a with the Nucynta pain agreement of to norepinephrine-reuptake ingredient a with acute in as products positioning be diabetic rights the ER. Depomed closed to in transaction early with the of an ER January positioning for

to due announced integrate Puerto working We Nucynta product the to Depomed of previously portfolio, outages effect been the Collegium pharmacy supply restocking Rico. level. few manufacturing channel on of with over product the supply has XXXX in supply Rico The the have retail into intermittent disruptions the manufacturer operational into the the was to as Maria Hurricane issue is continued now past we experienced The and weeks. products down the currently in ER are has Puerto

Nucynta situation been in normalized have it’s supply that should U.S. has We notified by end not manufactured The the issue of the supply the be March. that affected IR

VP the enhancing As strive level within the the Marketing, the and We of organization functions assumed business applied to the leadership the lead that opioids, execute balance of responsible are compliance developing the program including reminded a appropriate commercial Chain importance expertise Vice senior Senior we comprehensive management of of for and program focus carry that company to the and high continue new and to the scrutiny most the manufacturers take organization. a will a realize the continue President of evolves Collegium pain Due facets seriously corporate the capabilities all as compliance. we Sales to in hiring market. and very to will market advocating internal daily compliance responsibility opioid in strive we to for in of the we we of excellence market, continue This strong possible. legal and and and a role this Supply includes focus leading of role and leadership on on

to Our literally an possible. as them companies exhausted as provide and normal patients as on such us as Collegium Nucynta like rely of live Xtampza are have millions that patients in the options could as provide products that innovative non-opioid to there treatment options on and life them depend their opportunity U.S. potentially

enormous we I’ll dedicated a over Joe up responsibility. provide update. turn that it to commercial this to to ensuring to live now are We

Joe Ciaffoni

prescriptions position and we finish ER fourth in by delivery message we the Humana to execution commercial I therapy. and areas ER the Opana appropriate commercial, quarter, approximately quarter, to operational have forced set focus healthcare QX of of Added providers for were secure D Grew Specific access and the remains Xtampza XX% Part new established and PDP at the versus and In and XX% QX, ER Xtampza opioid. Part Xtampza which prescribers accomplishments select and patients and the of fueled to quarter. XXXX and at resource XX%, upon in XXXX total following access Mike. The broad plans, highlight ER. conversion and fourth momentum effective to pull approximately ER would XXXX almost with ER’s Thanks managed-care ER from utilization, Opana forced generated through and Navitus, Medicare will was strong like paid to find availability. rates preferred of replacement key XXXX. fastest date and patients exclusive D quality respectively, in expanded commercial growing Captured United pharmacy X% the healthcare convert a launched all prescribed Xtampza oxycodone preferred to stability. Advantage including Medicare ER, ER D, extended-release accelerate exclusive Part Xtampza foundation significantly Medicare Optum oxycodone improved branded

to on every every making franchise with and I Collegium’s the offering franchise generating the broadens integration in addition be quarter, meaningfully the my at Xtampza lives X pain of on XXXX. the XXXX, ER early stabilizing differentiated team phase ER working has what focused began in difference our with the all of is In stronger efforts Collegium maximize continuum franchise the a relevance take portfolio Xtampza began will positive Collegium thank at a X can potential feedback aspect early you colleagues transitioning across The excited portfolio to in the commitment accelerate and momentum that pain get Nucynta and forth suffering to a we I day increase has to team to In the promotion of we of the and want the potential better, expands and serve. and Monday, Collegium positive. fourth every the training we their we get assure the to on our put day for conducted is February, franchise. franchise do. of to plan. Nucynta moment Phoenix, prepared they stakeholders. the with of event that to for XX communities Collegium’s Phase and Nucynta striving and products, Nucynta In February Arizona. that recognize in been people the

by with Xtampza at ER’s We behind preferred a seeing within the exclusive oxycodone believe supply us, Rico in ER on that Nucynta adversely prescriptions facility caused we Maria. investment by the challenges ER non able being are differentiated at Nucynta healthcare early Xtampza first the ER will manufacturing for approximately by want Puerto on label, acceleration are for target not potential XXXX. encouraged ER. update with are and Nucynta impacted ER Nucynta the access maximize providers. in the to well-established and be hurricane an positions, I acceleration. plans new XX,XXX the then significant when Nucynta personal are the We supply and several catalyst but formulary of in provide satisfied to promotion new and products strengthen we audience disruption issues franchise. early following ER our are on IR are of stabilize meaningfully Nucynta and now

operational conviction execution to have our turn focus driving quarter the will laser results. We Paul key I growth preparation on in call XXXX. our discuss confident in is a over that the fourth to are financial and now to

Paul Brannelly

the product million afternoon quarter. we versus everyone. revenue third net million Good Thanks, Joe. quarter, In $XX in fourth the recorded $XX.X

on to a our $X.X earnings as for method. last the a quarter million third of discussed one-time our As result the selling revenue product increase net call, of included change

was year and days which average the XX XXXX the $XX.X At For the in days, XX, end, is $X.X on quarter. revenue year ended from prior of million net wholesalers XXXX. was inventory December versus unchanged hand

the Our discount quarter XX.X% quarter. for to from in the fourth gross XX.X% decreased net third

early ended gradually For be XXXX, the higher co-pay to growth of to discount expect at XXXX exclusive year then contracts XX.X%. the net to we the of year. usage to plans decrease. concentration of cards XXXX net our new the due the discount growth a year and with to Similar This beginning expected December higher in of in was gross and is part XX, and

related our quarter million of to Onsolis. XXXX, fourth respectively. fourth $X.XX $XX.X a $X.XX loss the $X.X in XXXX per was share of charge decision XXXX the and XXXX terminate one-time The our for quarters to quarter resulting for XXXX, of to our license a and compared net of $XX.X fourth million included for quarter agreement For impairment net loss

of XX, of was As September cash an from $XX.X million, billion our balance XX. increase December $XXX.X

and fourth cash operating by activities the During was quarter, $XX.X million. used investing

on As quarter discussed used into our call, we our quarter. third the and the ATM facility in QX earnings fourth

are franchise fourth together resources commercialization Mike with our cash to on proceeds the our operating we XXXX. plans, Xtampza will $XX.X to existing cash Heffernan and turn the During of we approximately Nucynta from I the that quarter, current now of received over expected million. call sufficient the our Based net the in-flows fund into operations believe back .

Mike Heffernan

I it Paul. up Thanks, open now questions. for will

Operator

David first with come our the And Amsellem from question Instructions] [Operator line will Piper of Jaffray.

is line open Your now

David Amsellem

Thanks.

So the that with and you of are wrapping just near-term you on the messaging cadence opportunities is and focus in Xtampza, on contracting to for on just just abuse-deterrent thoughts first so the energy? then that, the going then year. state least at is quick and how and one quarter believe the mean much blues, now where a of I on rest past ones plans as XXXX the around a about maybe you regional you Xtampza on talk more just focusing technology other fine-tuning this, said words, the talk your can the progresses, on secondly to looking to you that? you molecule, gross And get can Nucynta. or comment priority your but other And Thanks. then are also wanted of in ON talk about center, versus be that? about net, I couple where are at your the quarters or

Joe Ciaffoni

Thanks, David.

I’ll with is this David, the Joe. managed care Xtampza focus for Thanks our the one to question; take So ER. on with regards

exclusive that are interested to first to plans discipline I are our the contracting approach is emphasize oxycodone for of willing thing now, block with opportunities ER OxyContin. in right we in continue we NDC would So maintain

We on even past, and will from where we discussions to be you now have outflow a this setting the barriers non-clinical from that’s opportunistic region are strategy opportunities are that focused continuing the exist state correct, national and specifically bringing perspective and and to communicated a in as of may we landscape are perspective so remove to prescriptions, that enable looking year. are we’ve to

Paul Brannelly

to portfolio take into David expect in to we approach little a as But of forward, to at this give as model a look with we I surrogate net you Great, is your prior and including bit decrease gross think it similar the Xtampza. net from. would have XXXX more products of Paul. will On any to good by a Nucynta we if questions, a XXXX, as we move be franchise far gross the as would the periods guidance expect cadence as and we look to

Mike Heffernan

And this Mike. David, is

relates the position question we last it technology ER. as to With on, our where DETERx Nucynta

really what said, Tapentadol the molecule product class phase Joe is in about tapentadol, the best about to That you around information learn best what our molecule. class technology Xtampza has and position and way in first the around interested. a the novel know stabilize As really products maybe and we're we being is additional existing tapentadol is molecule formulation we can positioning. said, with

and lot to we to as and that. of – of technology next a move the time be year formulation into understanding molecule as spend we’ll that differentiate secondary part should go be year considered this of into So will how

David Amsellem

Okay. you. Thank That’s helpful.

Joe Ciaffoni

All right. Thanks, David.

Operator

Thank come you. next will And from Lugo the with Blair. William of Tim our line question

line open. is Your now

Tim Lugo

Thanks Without the talk and general I should and cash XXXX year. thoughts for looks progress when and for Xtampza congratulations maybe should of formal year. and strong scripts in about on breakpoint occur? need giving can this QX it into been your and the around moving Nucynta you profitable, during give have sort turning some us idea for the the like guidance, accretive be question guess

Paul Brannelly

Paul. Tim is this Hi,

gets early at are of least in are give we really any the position not more Nucynta, point what cash integration existing than guidance which XXXX. detail really in cash to this guidance us we for at so So did a into we is

that I job Nucynta have better time integrate that more right a think as we we -- but we at now. a that, are can we point do to little pinpointing bit not

Tim Lugo

in And do to constraints restocking and how supply Okay, there? assume there’s for manufacturing lumpiness I with Puerto hopefully -- going fair enough. and about QX you look in there some channel issues Nucynta, the of resolution Rico, that QX. be

Mike Heffernan

is Tim this Mike. Yes,

So you’re absolutely right.

the out, shipment down would been the level. of restock As the doses have that we retail to will channel, channel to certain restock to stack need those get need intermittently get

way So manage that’s then needs in you way that that closely we our this at make the what warehouse sure so not we do in any again in want channel, get were more that is putting as very so to be know the that the will in very that channel back do plan a point. in we to we to normalization level,

Tim Lugo

one maybe and Okay last one.

For be signing, what’s to making at currently XXX% at that you guess about truly there may I That’s will contract is get contract exclusive? share. to talk level, path look the taking and to but can ever which and you your around exclusive; get an impressive, exclusive XX% you is contracts XX% that first at the you a your pharmacy was since believe blocking united just the it to market I exclusive XX% needed you’re are know of the

Joe Ciaffoni

try by as question. we to so point we because at clear, say extended the we’re would is of From there not basket, Tim share a Yes, oxycodone. opportunities the a And referenced broader a it’s what United. had that in you and we be look market December first do But when first share reference, that’s will -- the market it four a share of what giving anticipate at to we great and we when the that’s from type within your off of the release overall in or United, when six off, when three you first branded so ER these it I opportunity, the XXXX great months plan. opportunities phase have occur conversion that these enacted to

we the As was April into market under the XX%. went just share

rest continued then that’s of those continue the an steady-state can you market IR conversion and when and in of patients the ER So and when we pickup that the into capture the improve. the growth the to market significant perspective. you position And share to a converting are occurred from who as from in the get capturing year see

you to the most around asset, in of are so would making opportunity, grow asset. benefits decisions, ER the real there we’re So payer is we important for doing physicians strive out they that focus XX, and in is the certainly that driving put the but we XX we so our operationally what sure to continue when it can make aware of Xtampza believe the awareness

Tim Lugo

Thanks. Understood. Okay.

Mike Heffernan

Thank you.

Paul Brannelly

Thanks.

Operator

come our Thank you. Instructions]. line Serge of Belanger And from Needham. question will [Operator with next

open. now is line Your

Serge Belanger

Xtampza. evening. A on Good couple questions Hi.

an launch impact forward in rest of does from these you January. the made the a new the Purdue of withdrawal kind starting So How force of and plans promotion the sales in marketing going for year? campaign investment Purdue your

Mike Heffernan

thanks regards would the we’re the the recently emphasize campaign, to With to to bring is label, the so marketplace. approved key it’s first Serge. for able the stronger it sNDA So, to question and anchored that to the thing the I

we’re and is in what not focus by decision Our Purdue’s operationally of to impacted promotion. way really from in marketplace terms unchanged setting the execute and to walk any out away

pulling would what as is continue comment final promotion. a unique focused will drives to can abuse-deterrent executing about we such to step a control our in believe through, really our with us really place non-personal the to relative make is on and of of and we’re which our executing where focused difference our properties execution, differentiated aspects and other in delivery we differentiated of I stepping on axis and technology So that marketplace a feel on that we what stay in are choosing the the of portfolio to out. have to Serge others the plan nature And its of where we potential managed-care science meaningfully make OxyContin things is one strong the the of focused because because plan the we’re

Serge Belanger

And XX% then that this year, terms that Xtampza, has you gross-to-net have and be comparative that but in still or now in changed future? any Okay. of label the receptivity the you on the payer data, updates to expect improvement will

Mike Heffernan

Serge, of Paul emphasize the the thing payer to I most discussions approval story. you gross-to-net. first furthers which and to what we and sNDA the which on the hit interest that is talk receptively question is that when about clinical interesting in I’ll the let of of only profile would thing strengthen the answer have on payers the drive product And

that thing us payers product other because deliver of this their The we’re able technology from the is are in plans put to seeing a perspective. pull-through when and belief position in

So of payers. have we now right the the ears

of We’re in I final position. more be emphasize be the discussions, implementation to will is XXXX. really focusing would some And will could cycle disciplined on our be access of of approach out oxycodone ER exclusive likely potentially in point which those in XXXX, we continue

Paul Brannelly

Yes.

gross-to-net, think in refer earlier our that's as for the exclusive gross-to-net about the down. more year But contracts. year business that the to far discount gross-to-net business is I higher those As where really co-pay see because decrease back of will cards comments the part concentrated through early in expectations as you'll non-contracted we -- and I’d be come year get our my

Serge Belanger

fee, any then And million you for significant license on annual modifications product the do year? Okay. given supply you the XXX inherited expect issues, Nucynta, this the just that to with

Paul Brannelly

Yes.

this deal this part supply material it So failure. don't to normalizes the issue think that first the be the in has an We as supply of provisions within year. contract with that’s year – going we

from retail to or So, we over days we'll there. XX supply then will the we’re so, get and back next confident that the go level

Serge Belanger

letter weeks think FDA Okay. one the I And couple last a then non-title ago. issued it was a one,

pretty if us I was but minor tell is anything issue, think the can actions FDA and a planning you’ve what you it just taken additional?

Mike Heffernan

And an Yes. it responded to comprehensive to we for be are Thanks the committed compliance We’ve very us. I but make Frankly, sure adding continue to We opportunity strengthen. a guidance fulfill to needs mentioned believe resources in the for and evolve it’s the and opening objective. program, growth as to to following my letter. question. and we comments personnel that have the we’ll FDA's that for we request this XXX% OPDP all

Serge Belanger

you. Thank

Operator

Wainwright. line And come our next you. H.C Thank question from Arce Ed will of the with

Your Pardon now open. line is line is Ed, your open. me, now

Ed Arce

Hi.

my these Sorry, already of asked I’ve I apologize was and for mute. a been been taking guys. question off And if the bit. some I on Thanks have answered. phone for

oxycodone. Obviously of on total of if It acceleration is the first be the couple starting quarter. you could January there be should eight could Xst, list these with are or I especially question ER would in First -- if these exclusive three effectively in contracts you a there helpful with believe those?

Joe Ciaffoni

This Okay. Joe. Thanks Ed. is

what think year we if So, we access last accomplished perspectives. you at look the of from and two

had So which into we exclusive access perspective able put would further tier we that a patient we exclusive Commercial. third a strengthen we product important went second-tier were plans have ER Healthcare to preferred from oxycodone from which that two positions United in the especially a co-pay. we is strong to that of There pocket or

The the The Advantage one Blue. effect Humana of the the were either D this of Book and PDP, Part year in Commercial, Business block Optum Part the an D of beginning were took OxyContin They D, Cigna or that in at Humana from which Business, NDC that and opportunity fourth Books preferred UPMC the winds added went perspective and quarter of and the certain the we to Navitus, Commercial Florida year. Medicare beginning Commercial we other was position.

Ed Arce

that current? great. total where I one those any still among split update the is I focused they’re Thanks. That’s believe your there your for physicians, XXX last product? target And other reps on of is about last sales XX,XXX Okay. And then in the Thank calling think the is on or discussions you.

Joe Ciaffoni

is thanks that. Joe. for This question. I'll take So, the

And ER because promoting every think XXX the we maintaining are are and Nucynta Xtampza position we’re and call. footprint, audience and so people of of on chronic that And off So of entire the acute of broadening in it’s portfolio different our use important then target continuum distinctly the that's the ER puts IR coming person know us patient particular. the types we products space, across to Nucynta offering different care. IR into course pain for our

Ed Arce

-- for Two Okay, Paul Joe questions the for answers. great. the I Thanks if may. more

First, you something the be Is the think to more do that that quarter. finally the gross could readily margin consistently? in XX% expect about And maintained XX-K? then you file Thanks. was when

Paul Brannelly

Yes.

our So XX-K one take easiest the first. --

Our be evening. XX-K should filed this

there'll And way additional So driven as as far the that's gross same percentage sold some disclosure goods and in of as as then margin, of COGS. net there. costs be won’t our items comes sales. we current there’s other by scale cost some a our and down scale that fixed And

So the there’s the year for of potential benefit that as or two next over course well.

Ed Arce

meaningfully quarter? could saw XX% you higher it on than Do think the the Okay. fourth you get

Paul Brannelly

Yes.

providing not any specific there. We’re guidance

Just related what prior to we’ve in quarters said COGS.

Ed Arce

Got Appreciate it. Thanks so it. much.

Paul Brannelly

Thanks, Ed.

Operator

Ken Thank Janney. with come you. question of And from the our line will Trbovich next

open. now is line Your

Ken Trbovich

COL-XXX as to I for maybe the like as question. update for any Xtampza? this plans development I’d plans Thanks on post-approval year on requirements guess with taking well start an get –

Mike Heffernan

for some a take On read Xtampza We Those normal the host type reporting you post-approval on -- Mike. a requirements is obligation. This and Xtampza. out. of non-clinical those approval non-clinical be them of if thing, list Yes. you I’ll whole won't whole as those. there's course are letter

process. surveillance have of also surveillance continue obligations and abuse, and around We that diversion, we’ll misuse

unless which that an about anticipate. issue approval there's any course we’ll making don't we of our be public announcement post-marketing unlikely it’s So obligations

Nucynta product COL-XXX, and fully plan focused we’ll this product we done that proof-of-concept to reminders for ER on IR that to of on people, relates the As to that’s and addition hydrocodone with portfolio executing the commercial our year. on have and

not product unless point requires that that will to of and a course becomes be be lot And so ADF all interesting development additional any changes we dramatically which at more choice. on of market the doing opioids

Ken Trbovich

that lower or the guys mean last does anticipate levels sequentially that had same the year? year you we So, should still roughly expecting you for R&D

Mike Heffernan

the it same lot items A think requirements you those roughly I level. roughly if post-marketing of think can as – well. are is

Ken Trbovich

Sure.

ongoing So, nothing trial, to expenses of associated those. a a clinical in major just formal sense but of

we’ve conversion there I the guess to on the if example just in example of that contract experience those different wondering in. in Health like Health wondering you cause United On half I'm but describe the the looking be once a And the a least was the on script now? at gave what the it contracts am side you done, to I kicked seen for or here is XX% improvements kicked it things that guess up based at [Indiscernible] average United seeing would example of this share weekly slower phase data that one quarter? of with And the it once on Joe, the nice and I of obviously, Health, rapid the and looks more that ways there compared about fourth contracting of with first to pace sort quarter. the perhaps isn’t than call is this is we’re lot adoption there United sort in what suggest first us everything, of acceleration in

Joe Ciaffoni

is of I each the dealing was these think Commercial Healthcare first don't nuances. Ken. I the it the depict have the question, way any plans different have last complexity great that quarter what would with So organization year The with dynamic. in of United

I better from efficient addition pull-through our efforts. and we’re think more In

exclusive you that over differently. months. said on occur general can see to said, Now That the that early conversion are four first plans should performing wind being I we in these oxycodone the think ER see expect being

the Florida of Blue. strongest out able example of to conversion in our what are So, Cigna terms for performers we’re and gate do perspective, from a

seeing but haven't OxyContin that from we’re we well, doing as are much that ones seen other conversion The the of in other.

of of some the is general a in February right to think mind learning that plan. others within keep something with in steady but we may start in depending state, I realize and of then maybe them conversion months, months to nuances January get four thinking So, the the four March upon

Ken Trbovich

Okay. Terrific. Thank you.

Mike Heffernan

Ken. Thanks,

Operator

our Steinberg of line Jefferies. And question will with come from you. the David next Thank

is line now Your open.

David Steinberg

the question by on marketing them sort a Seem future withdrawing know team what from about impact have your to news. this a longer know its the as from and had And we then and market to you’re the that pretty field related like sort that general I hurt? assume and of I force payers follow-up quantify you. question, early, question, of sort but and the curious color their from sales just the what significant OxyContin. force is on sales no your exiting in Purdue but can that Thank I or last of to surprised it's view month related of business. market? I restructuring And both hard getting management what this want that it physicians, is terms might I to I impact completely then

Mike Heffernan

David, is Mike. feedback. that I’ll of I’ll it on Joe this first turn then the Okay. part to and take the

they an were we they that whys have speculate question surprised weren’t step wheres, a sales for take can force said the the we So decreased and from we leadership exact the think some see may is, what reasons with I opportunity, I we surprised? and differentiated and the perspective that have all really they earlier why us of significantly Again it their made. to done on products. that in opportunity and role as did. But an they guess we decision we insight understand into as don't any Joe

standpoint. from and that’s feedback where we So a position it,

Joe Ciaffoni

Yes.

about of last we to in So complex reality is in David calls past is back competitive, and promotional add We notion one their but not started year talked this the efforts. would see and surprise. that also dialing Purdue really to market I

a feedback From and start So perspective wasn't. surprise was but in the the I’ll marketplace actual I think formalization a maybe the customer be HCPs. from the what the with occurring would communication the

the make a in and we and people portfolio were surprised are think really in. gets they I to focused about forward to marketplace, have, earlier, meaningful step are notion his that a where has the what us And think they continue what fact that pain products. to the science and of degree things to for commitment because differentiation on they with to their in on is understanding suffering you're awareness we the in with it that's I in of and for educating moving way of the potential products as to our right with positive ensure a obligated there. made with comment And to communities going is I that there associated feel us compelled we stepping have that Mike creating doing asking we in big this serve think the focusing responsibility to be around we the difference physicians

David Steinberg

is it year? of is. the you now on secondly it comment on the the that can price or you've made for And point What if gross. your Okay. view changed? be asset, would haven’t you year how it just product time? you the can decision any company do that then remind for recent to And that the internal when made secondly, has And be net any do you it What them you to out had on increases. if And can decide long, it, then opt have that Nucynta but that us can this

Mike Heffernan

We’ll X.X%. increase. had Nucynta parse start February an price out on We David. X.X%, of January similar those increase price the a I’ll one, easy with the Xst at the on Xst extended Okay. questions, franchise of

any of a obviously standpoint, a made additional do go talk different. haven’t We standpoint wouldn’t standpoint whether we anything will forward from about that. we decisions strategic from And extended

first So one. that's the

it. standpoint about around was we about ER question don't you whether second said we IR, differently think – Nucynta any The of differently think that? From that the the any

stabilized always going agreement plan supply that. within built around the how about we same, some as out knew We move then the We has forward brand, to the and XXXX. the the protections think differentiate the disruption into going into I figure agreement. been learn

[Indiscernible] good And the communications facility so and have visibility manufacturing have Depomed team we the with where we very are on supply. and on around

franchise So is as to we’re to on strongly be impacted going been have accretive supply have overall, very in And disruption the recover Nucynta But year to feel to prescription this moved we going that due to to as Joe still that. and the opt us be on mentioned year. able to out have $XX the a early bit little after opt million how to do one give more we we was last and on And that pay an falls with we’ll the certainty we opportunity and months question a fee. year out? termination the year around With XX out. notice we where

contract. the provision So that’s the in

David Steinberg

Okay. you. Thank

Operator

our with And next you. from come question will Kevin Gabelli. Kedra Thank

Your line is now open.

Kevin Kedra

Hi. questions. the taking for Thanks

provisions your you ask just guidelines. to had wanted First, some Xtampza, of recent about dosing and contracts dosing the related to in there within recommended the

guys a secondly patients runway and mentioned levels? much give for XXXX, kind the of assets seeing or And cash percentage the the doing to deal? deal what you’re cash of a Nucynta would of thoughts dosing licensing and then you you guideline Nucynta looking similar want be through structures and you you those to over your did or like you have traditional a of what get can more use Thanks. So, with thinking how sense you at business other of about deals

Joe Ciaffoni

those this the product Right seen From to that doses utilization see of of terms I’ll what So haven't and is lower of in Joe. the of overall give contract would of is that have to I shifts color one significant the been we’re on early seeing. has terms dose business. place. the in prescriptions Cigna XX% early middle say and we on question the what with what have the commercial the I of Kevin, this the that dose the year. in are to we perspective consistent on One, any we too now, is regards of take we in side think risk-based it's place with any

Mike Heffernan

question And this of the year. focused mentioned second Kevin, we’re regarding we execution cash, now on very use on very as right

opportunities, that focus opportunistic to [ph] it always right BD ours are not is relates but as of the now. We certainly

the our to it in mission, what appropriate is execution our cash at consistent is focus sense asset differentiated the we and primary with along if made it right decide time. certainly execute. use Our that at and come Should we look would

Kevin Kedra

Great. Thanks.

Operator

from Needham. And our Serge of come Belanger you. next question the with Thank line will

now open. line Your is

Serge Belanger

hospital new of any And in did segment? long-term a developments on in review and international additional couple expansion, filing currently under the care have Just questions then, of Canada. in terms

we to an Just this expect there should wanted at approval year? if see

Joe Ciaffoni

regards I overall don't color the to So, would as I and on. developments we’re hospital LTC segments, any of say noteworthy there's thanks for think performance Serge. provide seeing With to Xtampza accelerate. the ER the

long-term the institution segment. into degree care spillover a the to seeing and are lesser We

Paul Brannelly

to And review Korea Relates on at think you on NDS forward. that international very as question I have relates expansion, deal the Canada the in file as Health is may an second we to that know is a we under small Canada. had moving

Purdue with process. lawsuit to that Canada we a that part work through as have have also in We of

not. So Canada that based but it's unclear on come this operates, year to or just us, whether Health the way approval will

Serge Belanger

Okay. Thank you.

Operator

question you. will And Janney. of line the our next Trbovich from Thank Ken with come

is now open. line Your

Ken Trbovich

Yes. Thanks for the follow-up.

make for Nucynta completely mostly these treatment the are trying the I’m So, accounting for to understand Paul. I sure transaction.

maybe I’d with cause the thinking understanding it quarter? Puerto and the extent And So we not whether the COGS the following like disruption a then about to protection to given partial that And there. for should COGS to this pertained was the be have in some going first start royalty that contracts meaningful in how are Rico only would on quarter of what any sort to expectations. supply durations or with

Paul Brannelly

The prorated X. be take I’ll reverse questions since the it in so the prorated, closed January Well will will be royalty on two order. deal

million million it QX. be instead for XX.XX XXX,XXX will So being of XX it

the any COGS As there Rican related as and Puerto COGS far of issue, that on be the shouldn’t to supply issue. ER supply

expect restart wouldn’t to of that, when I are matter a we it’s because the supply different able anything simply channel. So of

Ken Trbovich

the then a it in or a item? will line will buried in would buried separate line break COGS be royalty but COGS, SG&A outside you broken or it be guys SG&A out and Okay as of separate under

Paul Brannelly

don’t so down, that, state anything that want to wouldn’t working – publicly a the through yet. still are we nailed I Yes, have so details accounting we on

Ken Trbovich

Thank right. all Okay, you.

Paul Brannelly

Great. Thanks, Tim.

Operator

Thank concludes answer session you. and today. our this and for Ladies gentlemen, question

I’d the for now, Executive to closing to Heffernan some like conference back So Collegium’s Chief remarks. Mike hand comments over Officer, and

Mike Heffernan

Thank we call to you updates ongoing for today. you. forward on everyone good our day. our progress. look Have And joining a Thank providing

Operator

our you Everybody Ladies may have your thank and wonderful conference. participation on and gentlemen, does This disconnect. you program a conclude today’s for day. all

Collegium Pharmaceutical (COLL) 7 Mar 182017 Q4 Earnings call transcript