Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q4 2025 Earnings Call Transcript

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q4 2025 Earnings Call Transcript February 26, 2026

Collegium Pharmaceutical, Inc. misses on earnings expectations. Reported EPS is $0.4273 EPS, expectations were $2.19.

Operator: Greetings! Welcome to the Collegium Pharmaceutical, Inc. fourth quarter and full year 2025 earnings conference call. At this time, all participants are in 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, this conference call is being recorded. I will now turn the call over to Ian Karp, Head of Investor Relations at Collegium Pharmaceutical, Inc. Thank you. You may now begin.

Ian Karp: Great, thanks. Welcome to Collegium Pharmaceutical, Inc.’s fourth quarter and full year 2025 earnings conference call. I am joined today by Vikram Karnani, our President and Chief Executive Officer, Colleen Tupper, our Chief Financial Officer, and Scott Dreyer, our Chief Commercial Officer. Before we begin today’s call, we want to remind participants that none of the information presented today is intended to be promotional, and 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. With that, I will now turn the call over to our President and CEO, Vikram Karnani.

Vikram Karnani: Thank you, Ian. Good morning, everyone, thank you for joining our 4th quarter and full year 2025 earnings call. 2025 was a year of transformative growth for Collegium Pharmaceutical, Inc. 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 three 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 4th 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 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.

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 Pharmaceutical, Inc. 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 PM ownership, we drove significant growth in both prescriptions and revenue. Jornay PM 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 three 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 1 time, 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 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 four real-world evidence studies for Jornay PM and three across our pain portfolio, generating meaningful new insights for healthcare 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 three 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’s 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-$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. Third, we remain committed to disciplined capital deployment. Our approach balances portfolio expansion and diversification through business development, debt repayment, and opportunistic share re-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.

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

Scott Dreyer: Thanks, Vikram. Good morning, everyone. Jornay PM continued to perform well in the fourth quarter as we leveraged the momentum created in the third quarter and maximized 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 are 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. Jornay delivers efficacy that lasts throughout the day. HCP perceptions of Jornay continue to be highly positive. In market research, healthcare professionals rated Jornay as the number one 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. 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. 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 are 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 healthcare 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 healthcare 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 healthcare providers, patients, and caregivers. Our non-personal marketing efforts include a comprehensive and broad campaign that surrounds healthcare 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 non-personal 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 healthcare providers. 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.

We also focused on maintaining broad payer access for Jornay. We are pleased to share that we have secured new formulary access under a major commercial healthcare plan, which will be effective May first, increasing Jornay’s coverage by an estimated 4.5 million covered lives. Turning now to our pain portfolio. Collegium Pharmaceutical, Inc. 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 number one 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 number one 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. We have said before, we remain committed to maximizing the revenue from our pain portfolio while maintaining broad payer coverage. A reminder, we expect both our ADHD and pain portfolios to be impacted by the typical first quarter dynamics, when there is 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 am 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 will now hand the call over to Colleen to discuss financial highlights.

Colleen Tupper: Thanks, Scott. Good morning, everyone. I am 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 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 one-time 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 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 1 time.

We are reaffirming the 2026 financial guidance that was issued in January. We expect total product revenues in the range of $805 million-$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 an 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-$200 million, a 31% increase year-over-year. We ended 2025 with Jornay full-year gross to nets of about 64%. 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-$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 a $580 million initial term loan, a $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.

Vikram Karnani: Thank you, Colleen. 2025 was a year of strong execution for Collegium Pharmaceutical, Inc., 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?

Q&A Session

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question at this time, you may press star one from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, for our first question. Thank you. The first question is from the line of Les Sulewski with Truist. Please proceed with your questions.

Jeevan Larson: Hey, this is Jeevan on for Les. Thanks for taking our questions. What assumptions underlie 2026 Jornay guidance, and how should we think about factors that could lead to upside? Have there been any competitive developments in the space that could impact Jornay demand? Thank you.

Vikram Karnani: Thanks for the question, Jeevan. I think, if I understood your question, you were asking what assumptions drive the 2026 guide for Jornay. As we said before in our prepared remarks, we expect that growth to be driven by demand growth, as we expect relative stability in gross to nets between 2025 and 2026. If you do not mind repeating your second question, that would be helpful.

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

Vikram Karnani: We monitor all the typical competitive dynamics in the market. We assess future launches that might be coming into this space. To date, we do not see much material change, both in the forms of current dynamics or in future launches that could impact Jornay demand. As a reminder, Jornay remains 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. We do not expect that to be impacted anytime in the future.

Operator: Thank you. Our next question is from the line of Brandon Folkes with H.C. Wainwright. Please proceed with your question.

Brandon Folkes: Hi, thanks for taking my questions, and congrats on all the progress. Maybe just two from me. I know you have not given a peak sales range for Jornay, but can you help us frame how you are thinking about the ramp to peak? Are you thinking about a three- to five-year ramp to peak in your hands? Secondly, within Nucynta AG in the market, how promotionally sensitive is Belbuca and Xtampza at this stage of their life cycle? 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 is your hurdle to pull back on investment there? Thank you.

Vikram Karnani: Thanks for the question, Brandon. I will take the Jornay PM peak sales question, and then we will have Scott address the Nucynta question. You are right. We have not previously talked about Jornay PM peak sales, primarily because we have, as I said before, continued to invest in sales and marketing activities for Jornay PM. 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 are right in that timeframe right now, where we are starting to see the impact of the expanded team, and we expect that to continue throughout 2026. I think once we have a better sense of what the impact of these commercial investments tends to be, we will have a much better sense, both of the peak opportunity as well as what that ramp looks like.

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. Now, on the Nucynta question, I will turn it over to Scott and Colleen to weigh in.

Scott Dreyer: I will 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? They are definitely mutually exclusive. Nucynta, later in life cycle, light promotional sensitivity. Belbuca and Xtampza, high promotional sensitivity. It is a different situation. It is not one where it is competitive, so to speak, versus other sales forces, but it is a highly complex marketplace. Our sales representatives are helping the offices navigate the payer environment and continue to change behavior. Definitely promotionally sensitive. We need our team, and just as a reminder, it is highly efficient. We have 100 in that sales organization that are supporting that $600 million plus revenue. We think we are in a good spot there.

Colleen Tupper: Yeah, Brandon, I will just add on, as we have said previously, particularly our field forces, as Scott just mentioned, are 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 is how we would approach that. I might just come back and remind you on Jornay PM that the LOE for 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.

Brandon Folkes: Great. Thank you very much.

Operator: Thank you. As a reminder, to ask a question today, you may press star one. The next question is from the line of David Amsellem with Piper Sandler. Please just proceed with your questions.

David Amsellem: Hey, thanks. Just a couple from me. One, on capital deployment. Vikram, I know you have talked about rare diseases in the past and certainly given your background. I am wondering how you are thinking about it in terms of acquiring a rare disease-focused asset that is on the market and using that as a beachhead off of which you can add more rare disease assets, where you would leverage a patient services and a reimbursement hub. I know that is something that obviously you have a lot of experience with, but is that something you are thinking about, or are you leaning more into your existing therapeutic areas of expertise, like psychiatry? That is number one. Secondly, just talk more generally about the Jornay sales force. There is always room to expand. ADHD is, of course, a big market, but how are you thinking about right-sizing of the sales force, or potential for more expansion down the road, whether it is this year or next year? Thanks.

Vikram Karnani: Thanks, David. On capital deployment, I think I will remind everyone that our capital deployment, particularly from a BD standpoint, as we have said before, the types of assets we are 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. If you think about psychiatry and pediatrics, where with the Jornay PM sales force, we already call on a significant number of prescribers. That would be ideal so we can get significant operating leverage… We have also said before that we are open to other potential areas, but they do need to be more capital efficient.

As you have 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 creates operating leverage from creating a significant commercialization approach. One of them is the backbone of patient services, reimbursement hub, et cetera. As we have 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. When we expanded to 180 reps back in April, we did that because we believed that, given the number of prescribers, given what the prescribing behavior looks like and what the various deciles look like, we believed that 180 was the right number, and so we believe we are right-sized.

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

David Amsellem: Okay. That is helpful. Thank you.

Vikram Karnani: Thank you.

Operator: Thank you. At this time, I will turn the floor back to Vikram for closing comments.

Vikram Karnani: Thank you, everyone, for joining our call. Wish you a great rest of the day.

Operator: 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.