Q4 2023 Collegium Pharmaceutical Inc Earnings Call
Participants
Christopher James; Vice President, Investor Relations; Collegium Pharmaceutical Inc
Joe Ciaffoni; President and Chief Executive Officer; Collegium Pharmaceutical Inc
Colleen Tupper; Chief Financial Officer, Executive Vice President; Collegium Pharmaceutical Inc
Scott Dreyer; Executive Vice President and Chief Commercial Officer; Collegium Pharmaceutical Inc(Pre-Merger)
David Amsellem; Analyst; Piper Sandler Companies
Lachlan Hanbury-Brown; Analyst; William Blair & Company
Serge Belanger; Analyst; Needham & Company Inc.
Les Sulewski; Analyst; Truist Securities
Oren Livnat; Analyst; H.C. Wainwright & Co., LLC
Presentation
Operator
Greetings and welcome to the Collegium Pharmaceutical Fourth Quarter and Full Year 2023 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 press star zero on your telephone. Please note that this conference call is being recorded. I will now turn the call over to Christopher James, Vice President of Investor Relations at Collegium. Thank you. You may begin.
Christopher James
Welcome to Collegium Pharmaceutical's fourth quarter and full year 2023 earnings conference call. I'm joined today by Joe Jaffoni, our Chief Executive Officer, Kelly Tupper, our Chief Financial Officer, and Scott Cryer, our Chief Commercial Officer.
Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, the risk that we may not be able to successfully commercialize our products that we may incur significant expense and that we may not prevail in current or future litigation pertaining to our business. These risks and other risks of the company are detailed in the Company's periodic reports filed with the Securities and Exchange Commission. Our future results may differ materially from our current expectations discussed today. Our earnings press release and this call will include discussion of certain non-GAAP information. If you can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website at Gleason, pharma.com. I will now turn the call over to our CEO, Joe Jaffoni.
Joe Ciaffoni
Thank you, Chris. Good afternoon and thank you, everyone, for joining the call. Today. We will discuss our performance during the fourth quarter and full year 2023. And our focus on operational execution in 2024 as we build a leading diversified specialty pharmaceutical company, committed to improving the lives of people living with serious medical conditions. We strive to do good as we do well. We are proud of our partnerships with organizations to drive equitable access to STEM education and underserved communities. As part of this commitment, we recently launched the Collegium Pharmaceutical scholarship program for which we will award two full scholarships to Massachusetts based high school seniors pursuing a STEM related major at a U.S. university. We are proud to provide this opportunity to students who have demonstrated financial need, academic achievement, leadership, community service, and a commitment to learning as they pursue a career in style. Also yesterday, we published our 2023 ESG report, which reflects our commitment to operating with responsibility, integrity and purpose. I encourage I encourage you to read the report on our website.
I'd also like to recognize the Collegium team for their commitment to our mission and for their contributions and accomplishments in 2023, 2023 was a banner year for Collegium Pharmaceutical. We delivered on our financial commitments and executed our capital deployment strategy. Key accomplishments in 2023 include we delivered record revenue and record adjusted EBITDA. We return Belbuca to sequential quarterly prescription growth starting in Q2 2023 and saw year-over-year quarterly growth in Q3 and Q4 in the fourth quarter, Belbuca total prescriptions grew 3.2% compared to Q4 2022. We expect to see Barbie Belbuca prescription growth in 2024. We successfully renegotiated a major Medicare Part D plan, accounting for 12% of Belbuca prescriptions, maintaining access and materially rolling back rebates. This will result in year on year gross-to-net improvement. We also want new Medicare Part D plan representing approximately 1 million covered lives. We improved it stamps and ER gross to net in 2023 to 59.6%, a decrease of 9.7 percentage points. Over 2022, we successfully renegotiated contracts representing 30% of all extensive ER prescriptions, maintaining access and improving rebates in 57% of plans. We expect to see gross to net improved to 56% to 58% in 2024. We received new patient population exclusivity for Nucynta, extending the period of USUS. exclusivity from June 27th, 2025 to July third, 2026. We submitted a pediatric extension for the Nucynta franchise in December that, if approved, will extend exclusivity of the franchise an additional six months. We expect a decision in the second half of 2024. The new patient population exclusivity for new center, together with the potential pediatric extension for the Nucynta franchise bolster our outlook in 2025 and 2026, we executed our capital deployment strategy, paying down $162.5 million in debt and returning $75 million in capital to our shareholders through our share repurchase program. And we ended the year with over $310 million in cash and marketable securities, our record financial performance and operational achievements in 2023 position the organization for success in 2024 and beyond, we expect to deliver record revenue, adjusted EBITDA free cash flow and net income in 2024 and 2020 for top line growth will be fueled by Belbuca and expands to ER. We are encouraged by the Belbuca prescription growth we saw in the fourth quarter of 2023, and we expect to see full year prescription growth in 2024 along with gross to net improvement over the past two years, we renegotiated contracts representing 84% of all extensive ER prescriptions, maintaining access and rolling back rebates in 77% of plans. This was a major accomplishment that will fuel expansion E our revenue growth in 2024, we expect gross-to-net to improve to 56% to 58%. The team is working hard to mitigate anticipated pressure on prescriptions. The Nucynta franchise is a key contributor to our pain portfolio. We do expect some pressure on Nucynta franchise revenue in 2024 because of the American Recovery Act, eliminating the Medicaid cap beginning in 2025. Through loss of exclusivity, we expect to be able to deliver relatively stable year on year results. The new population exclusivity achieved for Nucynta in 2023 and the anticipated pediatric extensions for the franchise in 2024, along with a reduction in the royalties we pay on Nucynta franchise sales from 14% to 7% beginning on June 27th, 2025, bolster our outlook for the franchise in 2025 and 2026 in 2024. Our focus is on operational execution. We are committed to achieving our financial objectives and deploying capital to create long-term value for our shareholders. We aim to achieve record financial performance while rapidly paying down debt and returning capital to our shareholders. By opportunistically leveraging our 150 million share repurchase program. I am confident that we are well positioned to deliver on our financial and capital deployment objectives.
I will now hand the call over to Colin to discuss the financials.
Colleen Tupper
Thanks, Joe. Good afternoon. Everyone. 2023 was a banner year for Collegium in which we achieved all of our financial objectives. We generated record revenue and adjusted EBITDA on both a quarterly and full year basis. We maintained our financial discipline and leveraged our strong cash flows to execute on our capital deployment strategy.
Financial highlights for the fourth quarter and full year include net product revenues were a record $149.7 million for the fourth quarter, up 16% year over year 2023. Net product revenues were a record $566.8 million, up 22% year over year. Belbuca net revenue was a record $49.3 million in the fourth quarter, up 17% year over year and a record $182.1 million in 2023, up 44% year over year 2023 sales reflect a full year of revenue compared to a partial year of revenue in 2022 due to the timing of the BDSI acquisition.
For the fourth quarter, extensive ER net revenue was a record $48.5 million, up 38% and extends to Y. Our gross to net was 54.5% for 2023, experienced the ER net revenue was a record $177.4 million, up 28% and a gross to net was 40% -- 59.6%. We expect extensive ER gross to net to be in the range of 56% to 58% in 2024 as a result of the successful contract renegotiations we completed in 2023. Nucynta franchise net revenue was $46.9 million in the fourth quarter, down 2% year over year at $190.8 million in 2023, up 3% year over year. Gaap operating expenses were $32.9 million in the fourth quarter, down 13% year over year. For 2023, GAAP operating expenses were $159.2 million, down 10% year over year. Non-GAAP adjusted operating expenses were $25.9 million in the fourth quarter, down 20% year over year for 2023, adjusted operating expenses were $123.6 million, up 1% year-over-year. GAAP net income for the fourth quarter was $31.9 million compared to a net loss of $7.2 million in the fourth quarter of 2022. For 2023, net income was $48.2 million compared to net loss of $25 million in 22. Non-GAAP adjusted EBITDA was a record $104.2 million for the fourth quarter up 36% year over year and a record $367 million for full year 2023, up 38%. Gaap earnings per share was $0.99 basic and $0.82 diluted in the fourth quarter compared to GAAP loss per share of $0.21 basic and diluted in the prior year period. GAAP earnings per share was $1.43 basic and $1.29 diluted in 2023 versus GAAP loss per share of $0.74. Basic and diluted in 2022. Non-GAAP adjusted earnings per share was $1.58 in the fourth quarter versus $1.9 in the fourth quarter of 2012. For '23 non-GAAP adjusted earnings per share was $5.47 versus $3.96 in the prior year. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results in 2023, we generated robust operating cash flows of $274.7 million and ended the year with cash, cash equivalents and marketable securities of $310.5 million for the year, Collegium paid down $162.5 million in debt ending the year with leverage of approximately one times net debt to adjusted EBITDA. We are encouraged by our strong performance in the fourth quarter and full year 2023. We achieved our financial goals for the year, growing adjusted EBITDA at more than 1.5 times the rate of revenue, increasing our cash position and positioning us to deliver on our financial commitments in 2024, we reaffirm our 2024 financial guidance, which we announced earlier this year. We expect net product revenues in the range of $580 million to $595 million. We expect adjusted operating expenses in the range of $120 million to $125 million and adjusted EBITDA in the range of $380 million to $395 million. We are confident in our ability to deliver on our financial commitments in 2024 we are focused on creating long-term value for our shareholders. Through our capital deployment strategy, we are rapidly paying down debt and plan to opportunistically return capital to shareholders through share repurchases. We are locked into rapidly deleveraging the balance sheet, paying down over $180 million of debt in 2024, which would put us at de minimus net debt to adjusted EBITDA ratio at year end. Our ability to delever quickly is a testament to our strong cash generation. We have a strong track record of returning value to our shareholders since 2021, we've returned $137 million of capital to our shareholders at an average price of $21.65 per share through a combination of open market and accelerated share repurchase program. In 2023, we repurchased $75 million through accelerated share repurchase programs, including $25 million repurchased at an average price per share of $27.9 since November. In January, our Board authorized a new share repurchase program to repurchase up to $150 million in common stock over 18 months. We believe that our stock continues to be undervalued and we view our share repurchase program as a productive use of our capital to generate high returns for our shareholders.
I will now turn it over to Scott to give a commercial.
Scott Dreyer
Okay. Thanks, Kelli. At Collegium, we're proud to be the leader in responsible pain management, Belbuca, extensive ER and Nucynta ER have a combined 50% share of the branded ER market. Our pain portfolio is highly differentiated, and our commercial organization is focused on maximizing the potential of our products to have a positive impact on the lives of people living with pain and the communities that we serve.
We ended 2023 with momentum across the pain portfolio, Belbuca and extensive e are well positioned for growth in 2024 and the Nucynta franchise will be a key contributor in the fourth quarter.
Belbuca total prescriptions grew 3.2% year over year and 1% quarter over quarter, continuing the sequential quarterly growth that started in the second quarter of 2023 when we inflected the prescription trajectory of Belbuca as the leader in responsible pain management. We believe that schedule three products should be used before schedule two and use more broadly. We're encouraged that the DepoMorphine market continues to grow. We believe Belbuca is uniquely positioned because of its clinical differentiation as a Schedule three product with a broad range of doses for the management of severe and persistent pain that requires an extended treatment period. Our commercial accomplishments in 2023 positions Búcha for growth in 2024. Stronger commercial execution drove sequential quarterly growth beginning in the second quarter of 2023, we expect Bellevue could benefit from improved commercial execution, the successful renegotiation of a major Medicare Part D contract and the addition of a new Part D plan representing approximately 1 million covered lives. Our focus in 2024 is on strengthening our commercial execution and supported Belbuca, specifically investing in the knowledge and training of our field force pulling through Belbuca strong commercial access and improving push through in Medicare Part D. Importantly, we'll work on expanding Medicare Part D coverage for both the UK. It's the right thing to do and if successful, will serve as a catalyst for growth in 2025 and beyond.
Turning to expenses, ER, in 2023, we delivered record revenue driven by significant gross-to-net improvements. Our successful contract renegotiations with plans that accounted for 54% of extensive ER prescriptions in 2020 to reduce gross-to-net by 9.7 percentage points, offsetting pressure on prescriptions. We expect a continuation of that dynamic in 2024 based off our successful renegotiation of contracts, representing 30% of all extensive ER prescriptions in 2023 our focus with extends to ER in 2024 is on challenging the status quo with health care professionals. Extensive ER has strong data in its label, differentiating it from oxycodone and it has superior access in both commercial and Medicare Part D, our aspiration with expanse that you are as to replace OxyContin utilization for appropriate patients in managed care. We need to pull through our strong access positions in commercial and Part D. And importantly, strive to achieve new wins. We have the ability to achieve new wins and forever managed gross to net to less than 65%. The Nucynta franchise is a key contributor to our pain portfolio supports it all is a differentiated molecule with a proposed dual mechanism of action it's viewed favorably and is highly differentiated by health care professionals. Our market access strategy enables us to manage the Nucynta franchise contribution in a relatively stable manner year on year, beginning in 2025 through loss of exclusivity.
In closing, I'm proud of our commercial accomplishments in 2023 and focused on achieving our objectives in 2024 through operational execution.
I'll now turn the call back to Joe.
Joe Ciaffoni
Thanks, Scott. 2023 was a banner year for Collegium Pharmaceutical. Our accomplishments in 2023 position the organization for success in 2024 and bolster our outlook in 2025 and 2026.
Our focus in 2024 is on operational execution. We expect to deliver record financial performance, and we are committed to deploying capital to create long-term value for our shareholders.
I will now open the call up for questions. Operator?
Question and Answer Session
Operator
At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue, you may press star two, if you would like to remove your question from the queue. We ask that you limit your questions to one and a follow-up. So that others may have an opportunity to ask questions For participants using speaker equipment. It may be necessary to pick up your handset before pressing the start. One moment, please. While we poll for questions.
Our first question comes from David Amsellem with Piper Sandler. Please proceed with your question.
David Amsellem
And I think so from one question on extension and then one on biz dev. M&a on expands with the contract renegotiations mostly in the rearview mirror. I guess the question here is, as you look at the long-term landscape for the product, do you think that you can at some point return it two meaning for volume growth. And then to the extent that you think you can talk to what kind of commercial efforts you're going to undertake to do so. And so that's number one.
And then on biz dev, can you just talk to your latest thoughts on asset prices and the relative attractiveness of assets are out there, what you're seeing in terms of the landscape? And I think in the past, you've talked about being agnostic to now various therapeutic verticals. Can you just talk to your latest thinking regarding that? Thank you.
Joe Ciaffoni
Yes. So David, this is Joe. Thank you for the questions. I'm going to start off on stamps and then kick it over to Scott and then come back and address biz dev. First off with stamps, I the thing that we are confident in is our ability to continue to grow revenue as we move forward through 2033 with the asset where we're at now is it will be a year or two year situation based off of what it is that we accomplished in the payer landscape, we now have significant headroom or were under the under that 65% that were forever committed to managing gross to net. That gives us the ability to really go after and tried to achieve new wins for the product. And then, of course, contracts come up for renegotiation typically every two to three years. So there's fewer this year, but there will be new ones as we move forward, where we think there will continue to be opportunity to manage gross-to-net. And Scott can talk about some of the commercial efforts and things to make that happen.
Scott Dreyer
Yes. Thanks, David. So first, what I'd say is we have very strong access in commercial and Part D for expansion. And what that means is first and foremost, we can grow organically. There's plenty of room to still grow through pure execution. As I mentioned in my prepared remarks, our focus is on displacing OxyContin for appropriate patients and how we do that is by challenging the status quo. And so what we're doing is similar to what we've been doing for Belbuca, right, training our people practicing and showing up in front of the customer to change behavior. And by doing that, I'm confident we have the ability to grow organically where we have access. And then we'll see, as Joe said, what happens with the payer as we move forward.
Joe Ciaffoni
But and then, David, from a business development perspective, what I think is important to emphasize is one our confidence in the financial strength of the business. We continue as we execute versus the core business and financially what we're setting out to do along with the improvement each quarter on the balance sheet to further strengthen our position. And what that gives us is the ability to be clear headed from a BD perspective.
So what I would comment specific to your question is look everything that we have been engaged with continues to be on the Board. We will wait for people to come to rational positions. And when the value is there, we continue to be in a strong position to strike, and I'm confident we will get the right deal done for Collegium from a therapeutic perspective. We want to be agile because we think there are a significant number of opportunities out there. And I'd reiterate what we're focused on are commercial stage acquisitions only if we want differentiated assets, we think that's critical for reimbursement, $150 million peak sales and exclusivity into the 2030s.
David Amsellem
Thanks, Joe.
Joe Ciaffoni
Thank you.
Operator
Our next question comes from Tim Lugo with William Blair. Please proceed with your request.
Lachlan Hanbury-Brown
Hey, guys, it's Lachlan on for Tim. Thanks for taking the questions and congrats on the strong quarter. And first question is just wondering if we should expect any changes to discounting or the cadence of discounts this year with Medicare Part D redesign? And then second is given the shift to parity for a number of exams, a contract in 2024 can you remind us sort of how prior parity contracts have performed? And if there are any differences between the dynamics or the timing of your discounts or anything like that over the course of the year.
Joe Ciaffoni
Okay. Thanks a lot. Lachlan Kalim, who will take the discounting questions and then Scott will talk about our positioning within managed care and and answer that question, Michael and thanks for the question.
Colleen Tupper
I would say as far as the cadence and the seasonality of discounting in gross to nets overall in 2024, it will be relatively similar to what we've seen in prior years, which is you have the most favorable gross to net positions, particularly for Nexium, so type product in first quarter. And then you have the impact of coverage gap in second and third quarter are the donut hole as it's also known and then it bounces back in the fourth. So we expect that to continue for another year in advance of any additional redesign in 2020.
Scott Dreyer
And then I love to answer your question about parity positioning. So look in parity, we had one major priority position before now and now we have a few more and what we know is there's ample opportunity there to grow. We have plenty of market share left to grow those positions.
Joe Ciaffoni
And Lachlan I would just add with regards to the renegotiations in general, where we have maintained access, we are not in parity positions. And the only instances in which we are now at parity with Oxy cotton is generally where we've come off the formulary. And I think from that perspective, the clinical profile of extant. So it's a differentiated asset. And we as the leader in responsible pain management. We are the only ones out there, educating physicians on our products.
Operator
Our next question comes from Serge Belanger with Needham & Co., please proceed with your question by
Serge Belanger
Good afternoon and thanks for taking my questions on first one, I guess for Scott on extension. And I think so far this year, we've seen about a 6% prescription erosion for extended. I'm curious if that's what you were expecting and if you expect to come for those to come back.
And then the second question is for Joe. Regarding BD on a BD transactions been a priority for the company now for, I think since 2022, as your view or strategy around that priority evolved and also as part of that question. I guess in the past, you've talked about wanting to lever up for such a transaction. So also curious with the recent share price appreciation, whether you would purchase via equity to complete a transaction?
Joe Ciaffoni
Yes. Thanks, Serge. Scott will take the first and then Kolleen and I will share the second.
Scott Dreyer
Yes. Thanks, Serge. Yes, in simple terms, yes, where the brand's performing right now is right in line with where we'd expect it to be similar to last year where we where we remove the greatest impact tends to be in the first quarter as we move throughout the year.
Joe Ciaffoni
So then Serge, with regards to be the what I would start with is capital deployment. What we're really focused on right now is what we know we're going to do, which is we're going to rapidly pay down our debt and we will opportunistically leverage our share repurchase program. One of the things we take a lot of pride in is our track record of being really good stewards of capital and executing deals that makes sense and deliver value for our shareholders. So as we continue to get stronger. What I can tell you is when the right deal is there at the right price, we are in a great position to execute. And Colin can talk a little bit about how we think about the financial aspects.
Colleen Tupper
So Serge, my question on the leverage side, what I would say is we have the ability to raise debt and are comfortable with a net debt ratio of around three times or below for commercial stage asset, which is what we're seeking in the current environment. And I would also say given our commercial focus, we are focused on near term accretive and positive EBITDA. And as that noted, we also have the ability to use our equity if the market dynamics are and so we think we have a multitude of options there to fund the right deal when it comes along.
Serge Belanger
Thank you.
Operator
Our next question comes from Larry Solow SKI with Truist. Please proceed with your question.
Les Sulewski
Thank you, and congrats on the quarter, guys. Just to take another stab on the IBD opportunity, and you have mentioned in the past of one $50 million in peak potential sales. Maybe we can is there a potential where you could see a few smaller deals versus a one chunky one arm or something that would be pre approval in terms of an asset play?
Joe Ciaffoni
Yes. Thanks, Les. I appreciate the question. But from a BD perspective, I think what I would reiterate is everything that we have been focused on, continues to be on the Board. And I think they all fit the criteria of what it is that we're looking for differentiated commercial stage assets, peak sales potential greater than $150 million with exclusivity into the 2030s. But one commentary I would make is that doesn't mean like the deals we've done previously they already need to be at $150 million. So we for the right opportunity, if we have conviction that it can be in $150 million plus then we're in a great position to execute around that. And if one of the reasons why we're the better owner is because of the resources that we can bring to the table, we would go for that type of opportunity.
Les Sulewski
Got it. And if I may squeeze one follow-up on the capital deployment plans potentially outside of repurchases, have you specifically looked at a potential enactment of a dividend plan or any summer payout of a form of a onetime special dividend.
Joe Ciaffoni
Thank you, Les, and I appreciate that question, and I'm going to hand that one off the calling?
Colleen Tupper
Yes, unless we evaluate all options, but we highly prefer the share repurchase program over dividends, and you could see continue in the near future.
Operator
Our next question comes from Oren Livnat with H.C. Wainwright. Please proceed with your question.
Oren Livnat
Thanks for taking the questions. Two on and extend. I mean, interesting that you mentioned your large headroom now between, I guess, your 56 to 58 gross net guidance and I guess this theoretical ceiling that you want to maintain a 65. And can you talk about how big potential opportunities, you know, if not exactly near term and then couple of years, you might have to add volume opportunities that would still keep you under that because we obviously don't see the mix between the Medicare plan, Medicaid, et cetera, for example, something as gargantuan as a Silver Script, realistically on the table at a gross to net that would still keep you under that 65%. I have a follow-up. Thanks.
Joe Ciaffoni
Yes. So Oren, this is Joe. I appreciate that question. But one, you're correct. We have a lot of headroom to go out and win new plans. How that comes together year to year is something we'll provide an update on.
And you're also correct if you think in Medicare Part D, there are some major plans that have significant Oxy cotton. And what I can tell you is if there's a path to getting that access, that makes sense, then we want to as a leader in responsible pain management, open that up for physicians and appropriate patients. And then you can also look from a commercial perspective, we're I'd say it's more a mile wide and an inch deep, but where you can piece together plans to be to position extant. So that continue to grow volume as we move forward.
The key thing that I would emphasize in closing here is what we are confident in is the ability, whether it be through the addition of new profitable contracts that would be a catalyst to volume and or as we continue to renegotiate contracts moving forward, that we'll be able to continue to grow, expand the ER revenue, but now it will be more year to year when we provide an update on how it is that that's going to happen.
Oren Livnat
Okay. And on Belbuca, I guess now that that's your largest product and what appears to be our fastest growing product which certainly flex well on that acquisition on foods, is that acquisition on? Can you talk a little bit longer term now how you view that going up?
Certainly, I model I think the conservative, the most conservative assumption is to assume that goes away in 2027, but now that that's such an important product for you, can you can you talk about your view on the longer runway for that you potentially in 2027 beyond whether with regard to an existing settlements, patent wins and the current litigation landscape?
Joe Ciaffoni
Thank you. So appreciate the question, Norm. What I can tell you number one is the video side acquisition for Collegium was an excellent deal and one that the team has done an exceptional job executing around. I think Scott and his team deserve a tremendous amount of credit because one of the things that's most encouraging here at the start of the year is the prescription trends that we're seeing. So we really have a strong view that we'll grow prescriptions this year and Belbuca, certainly a product that's worthy of that from a IP perspective, what I would say to you is the following our base case when we did the BDSI acquisition is we assume a potential generic in 2027. That's because there's a settlement in place with Teva. What I would say there as Teva has relinquished their first filer exclusivity, they do not have a tentative approval, the second and to file or was Alvogen for us. The green light to execute the deal was when BDSI received a favorable ruling with regards to the IP, which, from an invalidity perspective, holds bars Allergan from the market until 2032 with that formulation. And then, of course, Camel is the third and the filer who attach themselves to Altigen from an invalidity perspective, they are pursuing noninfringement and I would just say that they receive their third CRL in the first half of 2023. We think it is very challenging to achieve the doses of Belbuca or all doses without infringing upon the IP.
The final two points I would make is we have a authorized generic agreement with Par Pharmaceuticals and probably the strongest comment I could make with regards to our view of Belbuca is we will continue to invest through 2027 in support of this asset because although our base case assumes generic, I think we need to see what happens and whether Yes, players do come to the market in particular Teva.
Oren Livnat
Thank you.
Joe Ciaffoni
Thank you.
Operator
There are no further questions at this time. I would now like to turn the floor back over to Jos for closing comments.
Joe Ciaffoni
Thank you, and thank you, everyone, for joining the call today. We look forward to updating you on our progress throughout the year.
Operator
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
