COLLEGIUM PHARMACEUTICAL INC
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
COLL$24.21-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001558370-24-007601
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001558370-24-011586
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 66 previous paragraphs and 91 current paragraphs.
34 unchanged; 27 reworded; 26 added; 4 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 36 previous and 42 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
The increase in revenue for Belbuca of $9.1 million is primarily due to higher sales volume and gross price, partially offset by higher gross-to-net adjustments related to provisions for returns and chargebacks.
Current report
The increase in revenue for Symproic of $0.2 million is primarily due to lower gross-to-net adjustments related to provisions for rebates and higher gross price, partially offset by lower sales volume.
Current report
Interest expense was $15.6 million for the 2024 Quarter, compared to $21.9 million for the 2023 Quarter. The $6.3 million decrease was primarily due to lower interest expense associated with the 2022 Term Loan as a result of a lower overall principal balance, partially offset by higher interest rates impacting the variable rate on the 2022 Term Loan.
Current report
Loss on extinguishment of debt
Current report
Loss on extinguishment of debt was $7.2 million for the 2024 Quarter, compared to none in the 2023 Quarter. The $7.2 million increase was due to the redemption of the $26.4 million convertible notes due in 2026 during the 2024 Quarter.
Current report
The provision for income taxes was $9.5 million for the 2024 Quarter, compared to $4.8 million for the 2023 Quarter. The increase is primarily due to higher earnings in the 2024 Quarter compared to the 2023 Quarter as well as the discrete nondeductible costs associated with the debt extinguishment that occurred during the 2024 Quarter.
Current report
Comparison of the six months ended June 30, 2024 and June 30, 2023
Current report
Product revenues, net
Current report
Product revenues, net were $290.2 million for the six months ended June 30, 2024 (the “2024 Period”), compared to $280.3 million for the six months ended June 30, 2023 (the “2023 Period”). The $9.9 million increase is primarily due to increased revenue for Belbuca of $15.5 million and Xtampza of $1.3 million, partially offset by decreased revenue for the Nucynta Products of $6.7 million and Symproic of $0.2 million.
Current report
The increase in revenue for Xtampza ER of $1.3 million is primarily due to lower gross-to-net adjustments related to provisions for rebates and higher gross price, partially offset by lower sales volume.
Current report
The decrease in revenue for the Nucynta Products of $6.7 million is primarily due to lower sales volume and higher gross-to-net adjustments related to provisions for rebates, partially offset by higher gross price.
Current report
Cost of product revenues
Current report
Operating Expenses
Current report
Selling, general and administrative expenses were $85.3 million for the 2024 Period, compared to $91.0 million for the 2023 Period. The $5.7 million decrease was primarily related to:
Current report
Interest expense and Interest income
Current report
Interest income was $8.9 million for the 2024 Period, compared to $6.8 million for the 2023 Period. The $2.1 million increase was primarily due to higher interest rates earned on cash equivalents and marketable securities as well as a higher overall balance invested in the 2024 Period compared to the 2023 Period.
Current report
Loss on extinguishment of debt
Current report
Loss on extinguishment of debt was $7.2 million for the 2024 Period, compared to $23.5 million in the 2023 Period. The $16.3 million decrease was due to the 2023 Period including a $23.5 million loss on extinguishment resulting from the repurchase of $117.4 million of convertible notes due in 2026 in the 2023 Period. In the 2024 Period, the remaining $26.4 million of convertible notes due in 2026 were redeemed, resulting in a $7.2 million loss on extinguishment in the 2024 Period.
Current report
Taxes
Current report
The provision for income taxes was $18.4 million for the 2024 Period, compared to $4.7 million for the 2023 Period. The increase is primarily due to higher earnings in the 2024 Period compared to the 2023 Period, partially offset by higher discrete nondeductible costs associated with the debt extinguishment in the 2023 Period compared to the 2024 Period.
Current report
In July 2024, we amended and replaced our 2022 Term Loan with a $645.8 million secured term loan (the “2024 Term Loan”), consisting of a $320.8 million initial term loan and a $325.0 million delayed draw term loan. We used the proceeds of the initial term loan to refinance in full all outstanding indebtedness under the 2022 Term Loan. We will use the proceeds of the delayed draw term loan to fund a portion of the consideration to complete the Ironshore Acquisition, pay fees and expenses in connection with the Ironshore Acquisition and the 2024 Term Loan and the remainder for general corporate purposes.
Current report
The following transactions represent material changes in our borrowing arrangements from our most recently filed Annual Report.
Current report
On April 11, 2024, we provided notice of redemption for the remaining $26.4 million aggregate principal amount of our 2.625% convertible senior notes due in 2026 (the “2026 Convertible Notes”). The 2026 Convertible Notes were fully redeemed on June 18, 2024. We settled the redemption of the 2026 Convertible Notes in cash. Refer to Note 11,Convertible Senior Notes, for more information.
Current report
On July 28, 2024, in connection with the acquisition of Ironshore Therapeutics Inc., we amended and restated the 2022 Term Loan. Refer to Note 16,Subsequent Events, for more information.
Current report
Adjusted EBITDA was $188.4 million for the 2024 Period compared to $173.4 million for the 2023 Period. The $15.0 million increase was primarily due to higher product revenues and lower adjusted operating expenses.
Current report
Adjusted operating expenses were $30.3 million in the 2024 Quarter compared to $31.1 million in the 2023 Quarter. The $0.8 million decrease was primarily driven by lower sales and marketing expenses of $1.4 million, primarily due to the timing of marketing related expenses.
Removed paragraphs (4)
Previous report
On March 22, 2022, we acquired BioDelivery Sciences International, Inc. (“BDSI”), a specialty pharmaceutical company working to deliver innovative therapies for individuals living with serious and debilitating chronic conditions (the “BDSI Acquisition”). Upon closing of the BDSI Acquisition, we acquired Belbuca and Symproic.
Previous report
The provision for income taxes was $8.9 million for the 2024 Quarter, compared to a benefit from income taxes of $131,000 for the 2023 Quarter. The tax provision for the 2024 Quarter primarily reflects federal and state income taxes incurred from earnings during the period as adjusted for discrete excess tax benefits from stock-based compensation awards. The tax benefit for the 2023 Quarter reflects the tax benefit of the loss during the period, as well as the impact of discrete nondeductible costs associated with the debt extinguishment, partially offset by discrete tax benefits from excess tax benefits related to stock compensation.
Previous report
In March 2022, our debt balance increased significantly as we modified our 2020 Term Loan with Pharmakon to an increased principal balance of $650.0 million to fund a portion of the consideration paid to complete the BDSI Acquisition. We paid $100.0 million in principal payments during the first year of the 2022 Term Loan. The remaining
Previous report
There have been no material changes in our borrowing arrangements during the quarter ended March 31, 2024. However, on April 11, 2024, we announced that we called all $26.4 million aggregate principal amount of our 2026 Convertible Notes for redemption on the Redemption Date. Refer to Note 2,*Summary of Significant Accounting Policies – Subsequent Events;*Note 10,Term Notes Payable; and Note 11,Convertible Senior Notes, for more information.
Reworded paragraphs (27)
Previous wording
We are building a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. We commercialize our pain portfolio, consisting of Belbuca, Xtampza ER, Nucynta ER and Nucynta IR (collectively the “Nucynta Products”), and Symproic, in the United States.
Current wording
We are building a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. We commercialize our pain portfolio, consisting of Belbuca, Xtampza ER, Nucynta IR and Nucynta ER (collectively the “Nucynta Products”), and Symproic, in the United States.
Previous wording
The Nucynta Products are extended-release (“ER”) and immediate-release (“IR”) formulations of tapentadol. Nucynta ER is indicated for the management of severe and persistent pain that requires an extended treatment period with a daily opioid analgesic, including neuropathic pain associated with diabetic peripheral neuropathy in adults, and for which alternate treatment options are inadequate. Nucynta IR is indicated for the management of acute pain severe enough to require an opioid analgesic and for which alternative treatments are inadequate in adults and pediatric patients aged 6 years and older with a body weight of at least 40 kg. We began shipping and recognizing product sales on the Nucynta Products in January 2018 and began marketing the Nucynta Products in February 2018. In August 2023, the FDA granted New Patient Population exclusivity in pediatrics for Nucynta IR. This grant extended the period of U.S. exclusivity for Nucynta IR from June 27, 2025 to July 3, 2026.
Current wording
The Nucynta Products are immediate-release (“IR”) and extended-release (“ER”) formulations of tapentadol. Nucynta IR is indicated for the management of acute pain severe enough to require an opioid analgesic and for which alternative treatments are inadequate in adults and pediatric patients aged 6 years and older with a body weight of at least 40 kg. Nucynta ER is indicated for the management of severe and persistent pain that requires an extended treatment period with a daily opioid analgesic, including neuropathic pain associated with diabetic peripheral neuropathy in adults, and for which alternate treatment options are inadequate. We began shipping and recognizing product sales on the Nucynta Products in January 2018 and began marketing the Nucynta Products in February 2018. In August 2023, the FDA granted New Patient Population exclusivity in pediatrics for Nucynta IR. This grant extended the period of U.S. exclusivity for Nucynta IR from June 27, 2025 to July 3, 2026. In June 2024, the FDA granted pediatric exclusivity to the Nucynta Products for an additional six months, to January 3, 2027 for Nucynta IR and December 27, 2025 for Nucynta ER.
Previous wording
Belbuca is a buccal film that contains buprenorphine, a Schedule III opioid, and was approved by the FDA in October 2015 for severe and persistent pain that requires an extended treatment period with a daily opioid analgesic and for which alternative options are inadequate. Symproic was approved by the FDA in March 2017 for the treatment of opioid-induced constipation (“OIC”) in adult patients with chronic non-cancer pain, including patients with chronic pain related to prior cancer or its treatment who do not require frequent (e.g., weekly) opioid dosage escalation. We began shipping and recognizing product sales related to Belbuca and Symproic in March 2022.
Current wording
Symproic was approved by the FDA in March 2017 for the treatment of opioid-induced constipation (“OIC”) in adult patients with chronic non-cancer pain, including patients with chronic pain related to prior cancer or its treatment who do not require frequent (e.g., weekly) opioid dosage escalation. We began shipping and recognizing product sales related to Symproic in March 2022 following our acquisition of BDSI.
Previous wording
We believe that several accounting policies are important to understanding our historical and future performance. We refer to these policies as “critical” because these specific areas generally require us to make judgments and estimates about matters that are uncertain at the time we make the estimate, and different estimates—which also would have been reasonable—could have been used, which would have resulted in different financial results. For a description of critical accounting policies that affect our significant judgments and estimates used in the preparation of our consolidated financial statements, refer to our Annual Report.
Current wording
We believe that several accounting policies are important to understanding our historical and future performance. We refer to these policies as “critical” because these specific areas generally require us to make judgments and estimates about matters that are uncertain at the time we make the estimate, and different estimates—which also would have been reasonable—could have been used, which would have resulted in different financial results. For a description of critical
Previous wording
Product revenues, net were $144.9 million for the three months ended March 31, 2024 (the “2024 Quarter”), compared to $144.8 million for the three months ended March 31, 2023 (the “2023 Quarter”). The $0.1 million increase is primarily due to increased revenue for Belbuca of $6.4 million, partially offset by decreased revenue for the Nucynta Products of $3.9 million, Xtampza ER of $2.1 million, and Symproic of $0.3 million.
Current wording
Product revenues, net were $145.3 million for the three months ended June 30, 2024 (the “2024 Quarter”), compared to $135.5 million for the three months ended June 30, 2023 (the “2023 Quarter”). The $9.8 million increase is primarily due to increased revenue for Belbuca of $9.1 million, Xtampza of $3.3 million, and Symproic of $0.2 million, partially offset by decreased revenue for the Nucynta Products of $2.8 million.
Previous wording
The decrease in revenue for Xtampza ER of $2.1 million is primarily due to lower sales volume, partially offset by higher gross price and lower gross-to-net adjustments primarily related to provisions for rebates.
Current wording
The increase in revenue for Xtampza ER of $3.3 million is primarily due to lower gross-to-net adjustments related to provisions for rebates and higher gross price, partially offset by lower sales volume.
Previous wording
The decrease in revenue for the Nucynta Products of $3.9 million is primarily due to lower sales volume and higher gross-to-net adjustments primarily related to provisions for rebates, partially offset by higher gross price.
Current wording
The decrease in revenue for the Nucynta Products of $2.8 million is primarily due to lower sales volume and higher gross-to-net adjustments related to provisions for rebates, partially offset by higher gross price.
Previous wording
Cost of product revenues (excluding intangible asset amortization) was $19.0 million for the 2024 Quarter, compared to $29.9 million for the 2023 Quarter. The $10.9 million decrease was primarily related to the 2023 Quarter including higher cost of product revenues related to the step-up basis in inventory acquired from BDSI as well as lower sales volume in the 2024 Quarter for Xtampza and the Nucynta Products.
Current wording
Cost of product revenues (excluding intangible asset amortization) was $20.0 million for the 2024 Quarter, compared to $24.3 million for the 2023 Quarter. The $4.3 million decrease was primarily related to the 2023 Quarter including higher cost of product revenues related to the step-up basis in inventory acquired from BDSI, partially offset by higher sales volume in the 2024 Quarter for Belbuca.
Previous wording
Intangible asset amortization was $34.5 million for the 2024 Quarter, compared to $37.5 million for the 2023 Quarter. The $3.0 million decrease was primarily a result of the FDA granting New Patient Population exclusivity for Nucynta IR to July 3, 2026 in Q3 2023, resulting in an extension of the estimated useful life of the underlying intangible asset and a reduction of amortization expense recognized during the 2024 Quarter. Intangible asset amortization expense is recognized in connection with our intangible assets. The intangible assets are amortized on a straight-line basis over the respective estimated useful lives.
Current wording
Intangible asset amortization was $34.5 million for the 2024 Quarter, compared to $37.5 million for the 2023 Quarter. The $3.0 million decrease was primarily a result of the FDA granting New Patient Population exclusivity for Nucynta IR to July 3, 2026 in the third quarter of 2023, resulting in an extension of the estimated useful life of the underlying intangible asset and a reduction of amortization expense recognized during the 2024 Quarter. Intangible asset amortization expense is recognized in connection with our intangible assets. The intangible assets are amortized on a straight-line basis over the respective estimated useful lives.
Previous wording
Selling, general and administrative expenses were $42.0 million for the 2024 Quarter, compared to $52.8 million for the 2023 Quarter. The $10.8 million decrease was primarily related to:
Current wording
Selling, general and administrative expenses were $43.3 million for the 2024 Quarter, compared to $38.2 million for the 2023 Quarter. The $5.1 million increase was primarily related to:
Previous wording
Interest income was $4.5 million for the 2024 Quarter, compared to $2.7 million for the 2023 Quarter. The $1.8 million increase was primarily due to higher interest rates earned on cash equivalents and marketable securities and due to a higher overall balance invested in the 2024 Quarter compared to the 2023 Quarter.
Current wording
Interest income was $4.4 million for the 2024 Quarter, compared to $4.0 million for the 2023 Quarter. The $0.4 million increase was primarily due to higher interest rates earned on cash equivalents and marketable securities, partially offset by a lower overall balance invested in the 2024 Quarter compared to the 2023 Quarter.
Previous wording
The increase in revenue for Belbuca of $6.4 million is primarily due to higher sales volume and gross price, partially offset by higher gross-to-net adjustments primarily related to provisions for chargebacks.
Current wording
The increase in revenue for Belbuca of $15.5 million is primarily due to higher sales volume and gross price, partially offset by higher gross-to-net adjustments related to provisions for chargebacks.
Previous wording
The decrease in revenue for Symproic of $0.3 million is primarily due to lower sales volume and higher gross-to-net adjustments primarily related to provisions for rebates and chargebacks, partially offset by higher gross price.
Current wording
The decrease in revenue for Symproic of $0.2 million is primarily due to lower sales volume and higher gross-to-net adjustments related to provisions for chargebacks, partially offset by higher gross price.
Previous wording
Interest expense was $17.3 million for the 2024 Quarter, compared to $21.4 million for the 2023 Quarter. The $4.1 million decrease was primarily due to lower interest expense associated with the 2022 Term Loan as a result of scheduled principal payments, partially offset by higher interest expense due to the additional principal from the issuance of the 2029 Convertible Notes in February 2023, and higher interest rates impacting our variable rate term loan debt.
Current wording
Interest expense was $32.9 million for the 2024 Period, compared to $43.3 million for the 2023 Period. The $10.4 million decrease was primarily due to lower interest expense associated with the 2022 Term Loan as a result of a lower overall principal balance, partially offset by higher interest expense due to the higher convertible debt principal following the issuance of the 2029 Convertible Notes in February 2023, and higher interest rates impacting the variable rate on the 2022 Term Loan.
Previous wording
Historically, we have funded our operations primarily through private placements and/or public offerings of our preferred stock, common stock, and convertible notes; commercial bank debt; and cash inflows from sales of our products. We are primarily dependent on the commercial success of Belbuca, Xtampza, and the Nucynta Products.
Current wording
Historically, we have funded our operations primarily through private placements and/or public offerings of our preferred stock, common stock, and convertible notes; term loan debt; and cash inflows from sales of our products. We are primarily dependent on the commercial success of Belbuca, Xtampza, and the Nucynta Products.
Previous wording
$550.0 million balance is required to be paid in equal quarterly installments over the remaining three years of the term note. As of March 31, 2024, the outstanding principal balance of the 2022 Term Loan was $366.7 million, of which $183.3 million in principal payments are due within the next twelve months.
Current wording
As of June 30, 2024, the outstanding principal balance of the 2022 Term Loan was $320.8 million, of which $183.3 million in principal payments were due within the next twelve months.
Previous wording
As of March 31, 2024, the outstanding principal balance of the Convertible Notes was $267.9 million, of which $26.4 million related to the 2026 Convertible Notes and $241.5 million related to the 2029 Convertible Notes. The $26.4 million principal balance in connection with the 2026 Convertible Notes was originally due in 2026. However, on April 11, 2024, we called all $26.4 million aggregate principal amount of our 2026 Convertible Notes for redemption on June 14, 2024 (the “Redemption Date”). Refer to Note 2,Summary of Significant Accounting Policies – Subsequent Events). The $241.5 million principal balance in connection with the 2029 Convertible Notes is due in 2029.
Current wording
As of June 30, 2024, the outstanding principal balance of the 2029 Convertible Notes was $241.5 million. The $241.5 million principal balance is due in 2029.
Previous wording
As of March 31, 2024, we had $318.0 million in cash, cash equivalents, and marketable securities. We believe that ourcash, cash equivalents, and marketable securities as of March 31, 2024, together with expected cash inflows from operations, will enable us to fund our operating expenses, debt service, and capital expenditure requirements under our current business planfor the foreseeable future.
Current wording
As of June 30, 2024, we had $271.6 million in cash, cash equivalents, and marketable securities. We believe that ourcash, cash equivalents, and marketable securities as of June 30, 2024, together with expected cash inflows from operations, will enable us to fund our operating expenses, debt service, and capital expenditure requirements under our current business planfor the foreseeable future.
Previous wording
Operating activities. Cash provided by operating activities was $61.9 million for the 2024 Quarter, compared to $27.7 million for the 2023 Quarter. The $34.2 million increase was primarily due to the increase in cash flows from operating results, which reflects operating earnings, after adjustment for non-cash items that are included in net income (loss), including recognition of a loss on extinguishment of debt in connection with the repurchase of a portion of our 2026 Convertible Notes in the 2023 Quarter, combined with changes in working capital.
Current wording
Operating activities. Cash provided by operating activities was $129.3 million for the 2024 Period, compared to $127.4 million for the 2023 Period. The $1.9 million increase was primarily due to the increase in cash flows from operating results, which reflects operating earnings, after adjustment for non-cash items that are included in net income (loss), partially offset by the decrease in cash flows from changes in working capital.
Previous wording
*Investing activities.*Cash used in investing activities was $18.1 million for the 2024 Quarter, compared to $176,000 for the 2023 Quarter. The $18.0 million increase was primarily due to increased purchases, partially offset by maturities, of marketable securities.
Current wording
*Investing activities.*Cash used in investing activities was $27.0 million for the 2024 Period, compared to $41.9 million for the 2023 Period. The $14.9 million decrease was primarily due to maturities of marketable securities, partially offset by purchases of marketable securities.
Previous wording
Financing activities. Cash used in financing activities was $54.1 million for the 2024 Quarter, compared to cash provided by financing activities of $68.3 million in the 2023 Quarter. The $122.4 million decrease was primarily due to:
Current wording
Financing activities. Cash used in financing activities was $168.4 million for the 2024 Period, compared to cash provided by financing activities of $23.1 million in the 2023 Period. The $191.5 million decrease was primarily due to:
Previous wording
We believe that our cash, cash equivalents, and marketable securities as of March 31, 2024, together with expected cash inflows from operations, will enable us to fund our operating expenses, debt service, and capital expenditure requirements under our current business plan for the foreseeable future. However, we are subject to all the risks common
Current wording
We believe that our cash, cash equivalents, and marketable securities as of June 30, 2024, together with expected cash inflows from operations, will enable us to fund our operating expenses, debt service, and capital expenditure requirements under our current business plan for the foreseeable future. However, we are subject to all the risks common to the commercialization and development of new pharmaceutical products, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business.
Previous wording
Adjusted EBITDA for the three months ended March 31, 2024 and 2023 was as follows:
Current wording
Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 was as follows:
Previous wording
Adjusted EBITDA was $92.4 million for the 2024 Quarter compared to $87.6 million for the 2023 Quarter. The $4.8 million increase was primarily due to lower adjusted operating expenses.
Current wording
Adjusted EBITDA was $96.0 million for the 2024 Quarter compared to $85.8 million for the 2023 Quarter. The $10.2 million increase was primarily due to higher product revenues and lower adjusted operating expenses.
Previous wording
Adjusted operating expenses for the three months ended March 31, 2024 and 2023 were as follows:
Current wording
Adjusted operating expenses for the three and six months ended June 30, 2024 and 2023 were as follows:
Previous wording
Adjusted operating expenses were $34.5 million in the 2024 Quarter compared to $38.2 million in the 2023 Quarter. The $3.7 million decrease was primarily driven by:
Current wording
Adjusted operating expenses were $64.8 million in the 2024 Period compared to $69.4 million in the 2023 Period. The $4.6 million decrease was primarily driven by:
Previous wording
Adjusted net income and adjusted earnings per share for the three months ended March 31, 2024 and 2023 were as follows:
Current wording
Adjusted net income and adjusted earnings per share for the three and six months ended June 30, 2024 and 2023 were as follows:
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Belbuca is a buccal film that contains buprenorphine, a Schedule III opioid, and was approved by the FDA in October 2015 for severe and persistent pain that requires an extended treatment period with a daily opioid analgesic and for which alternative options are inadequate. We began shipping and recognizing product sales related to Belbuca in March 2022 following our acquisition of BDSI.
Current report — wording carried from elsewhere
accounting policies that affect our significant judgments and estimates used in the preparation of our consolidated financial statements, refer to our Annual Report.
Current report — wording carried from elsewhere
Cost of product revenues (excluding intangible asset amortization) was $38.9 million for the 2024 Period, compared to $54.2 million for the 2023 Period. The $15.3 million decrease was primarily related to the 2023 Period including higher cost of product revenues related to the step-up basis in inventory acquired from BDSI, partially offset by higher sales volume in the 2024 Period for Belbuca.
Current report — wording carried from elsewhere
Intangible asset amortization was $69.0 million for the 2024 Period, compared to $74.9 million for the 2023 Period. The $5.9 million decrease was primarily a result of the FDA granting New Patient Population exclusivity for Nucynta IR to July 3, 2026 in the third quarter of 2023, resulting in an extension of the estimated useful life of the underlying intangible asset and a reduction of amortization expense recognized during the 2024 Period. Intangible asset amortization expense is recognized in connection with our intangible assets. The intangible assets are amortized on a straight-line basis over the respective estimated useful lives.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
to the commercialization and development of new pharmaceutical products, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business.