Group 1 - Collegium Pharmaceuticals (NASDAQ: COLL) stock is trading at over $30 per share, with a market capitalization just shy of $1 billion [1] - The company provides insights for both novice and experienced biotech investors, including catalysts to watch for and buy/sell ratings [1] - The investing group Haggerston BioHealth offers detailed reports on over 1,000 companies in the biotech, healthcare, and pharma sectors [1] Group 2 - The Q1 2025 quarterly report/10Q submission is referenced, indicating ongoing financial disclosures [1]

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Financial Performance and Guidance - Collegium reported 2024 sales of $631 million and expects 2025 sales to reach $743 million, representing an +18% increase[16] - The company anticipates 2025 net product revenues in the range of $735 million to $750 million, reflecting an +18% year-over-year growth[22] - Adjusted EBITDA for 2025 is projected to be between $435 million and $450 million, a +10% increase[22] - Adjusted operating expenses for 2025 are expected to be in the range of $220 million to $230 million, a +49% increase[22] Product Portfolio and Market Position - Jornay PM net revenue is expected to exceed $135 million in 2025, representing a +>34% increase from $100.7 million in 2024[40] - The pain portfolio experienced a +5% revenue growth in 2024, while total revenue grew +11%[20] - Q1 2025 pain portfolio product revenues reached $177.8 million, a +23% increase compared to $144.9 million in Q1 2024[32] - Jornay PM prescriptions grew +24% year-over-year in Q1 2025[32] Capital Allocation and Shareholder Value - Collegium initiated a $25 million Accelerated Share Repurchase (ASR) program in May 2025[33] - The company repurchased $222 million worth of shares between 2021 and 2025[47] Debt and Cash Flow - The company had approximately $200 million in cash and marketable securities at the end of Q1 2025[27] - Net debt to adjusted EBITDA stood at approximately 1.5x at the end of Q1 2025[33]

Summary of Collegium Pharmaceutical (COLL) Conference Call Company Overview - Collegium Pharmaceuticals is focused on building a diversified biopharmaceutical company, primarily addressing chronic pain and ADHD [2][3] - The company generated $631 million in net sales in 2024, with an expected growth of 18% to $743 million in 2025 [3][9] Product Portfolio - The company has five marketed products, including: - **Jornay PM**: $100 million in net sales in 2024, expected to exceed $135 million in 2025. It is the only ADHD medicine with once-daily evening dosing [5][6] - **BELBUCA**: $211 million in net sales in 2024, a long-acting opioid using buprenorphine buccal film technology [7] - **Xtampza ER**: $191 million in net sales in 2024, an extended-release oxycodone with abuse deterrent technology [8] - **Nucynta Franchise**: $177 million in net sales in 2024, treating severe and persistent pain as well as neuropathic pain [8] Financial Performance - Expected net revenues for 2025 are between $735 million and $750 million, indicating an 18% year-over-year growth [9] - Adjusted EBITDA is projected to be between $435 million and $450 million, representing a 10% year-over-year growth [10] - Adjusted operating expenses are expected to grow by 49% year-over-year due to the acquisition of Ionshore Therapeutics [10] Revenue Durability - The company has a strong expectation of revenue durability, with projected exclusivity for Xtampza ER through September 2033 and BELBUCA until January 2027 [14][15] - No generic competitors have satisfied all criteria to launch future generics, which supports the durability of the pain portfolio [17] Recent Business Highlights - In Q1 2025, the company achieved $177 million in net sales, a 23% increase from 2024 [18] - Cash from operations was over $55 million, with a leverage ratio of 1.5 net debt over EBITDA, expected to decrease to less than 1 by the end of 2025 [19] - A share repurchase program of $25 million was announced in May 2025 [19] Growth Strategies - The company is investing in Jornay PM to maximize growth and has expanded its sales team from 125 to 180 representatives [21][22] - Marketing programs are being implemented to raise awareness among caregivers and patients, aligning with the back-to-school season [23] Competitive Positioning - Collegium is positioned uniquely among biopharmaceutical peers with a robust revenue profile and double-digit growth [25] - The company has a strong cash generation profile and a history of returning value to shareholders, having repurchased $222 million in shares since 2021 [26][27] - The majority of its medicines are sourced and sold in the US, making them largely immune to tariffs and pricing pressures [28] Conclusion - Collegium Pharmaceuticals is well-positioned for continued growth, with a strong focus on revenue generation, profitability, and disciplined capital deployment strategies [28]

Core Viewpoint - Collegium Pharmaceutical, Inc. has initiated an Accelerated Share Repurchase (ASR) agreement to repurchase $25 million of its common stock as part of a broader $150 million share repurchase program, reflecting a strategic approach to capital allocation while driving revenue growth and returning capital to shareholders [1][2]. Group 1: Financial Performance - In the first quarter of 2025, Collegium reported a 23% year-over-year revenue growth, attributed to strong sales from its pain management portfolio and significant contributions from its ADHD medication, Jornay PM® [2]. - The ASR agreement will initially deliver 692,281 shares to Collegium, based on a closing stock price of $28.89 on May 9, 2025, which represents approximately 80% of the total shares expected to be repurchased [2]. Group 2: Strategic Initiatives - The Board of Directors authorized the $25 million ASR as part of a disciplined capital allocation strategy aimed at sustaining revenue growth while also returning capital to shareholders [2]. - Collegium's strategy includes expanding its commercial portfolio with Jornay PM as a key growth driver and investing in business development while managing debt and share repurchases [2][3]. Group 3: Company Overview - Collegium Pharmaceutical is a diversified biopharmaceutical company focused on improving the lives of individuals with serious medical conditions, with a strong portfolio in pain management and a recent entry into neuropsychiatry through the acquisition of Jornay PM [3].

Core Insights - Collegium Pharmaceutical reported $177.76 million in revenue for Q1 2025, a year-over-year increase of 22.7% [1] - The EPS for the same period was $1.49, compared to $1.45 a year ago, indicating a positive trend [1] - The revenue exceeded the Zacks Consensus Estimate of $172.45 million by 3.08%, and the EPS also surpassed the consensus estimate of $1.43 by 4.20% [1] Revenue Breakdown - Total product revenues for Belbuca were $51.66 million, slightly below the estimated $53.86 million, reflecting a 2% year-over-year increase [4] - Xtampza ER generated $47.64 million, exceeding the average estimate of $46.49 million, with a year-over-year change of 4% [4] - Jornay PM reported revenues of $28.54 million, closely matching the average estimate of $28.50 million [4] - Nucynta achieved $47.10 million in revenues, surpassing the average estimate of $42.13 million, marking a 4.3% year-over-year increase [4] - Symproic's revenues were $2.82 million, falling short of the average estimate of $3.25 million, representing a year-over-year decline of 14.7% [4] Stock Performance - Collegium Pharmaceutical's shares returned +2.6% over the past month, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Collegium Pharmaceutical reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing a slight increase from $1.45 per share a year ago, indicating a 4.20% earnings surprise [1][2] Financial Performance - The company achieved revenues of $177.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.08%, and up from $144.92 million in the same quarter last year [2] - Over the last four quarters, Collegium Pharmaceutical has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - Collegium Pharmaceutical shares have declined approximately 5.6% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.61, with projected revenues of $181.28 million, and for the current fiscal year, the EPS estimate is $6.88 on revenues of $741.38 million [7] - The outlook for the Medical - Drugs industry, where Collegium operates, is favorable, ranking in the top 26% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Data and Key Metrics Changes - The company reported a 23% year-over-year revenue growth, with net product revenues reaching $177.8 million [26][8] - GAAP net income was $2.4 million, a decrease from $27.7 million in the same quarter of the previous year, impacted by acquisition-related expenses [28] - Non-GAAP adjusted EBITDA was $95.2 million, up 3% year over year [28] - The cash position increased to $197.8 million, up $35 million from year-end [29] Business Line Data and Key Metrics Changes - The ADHD medicine Jornay generated $28.5 million in net revenue, with a 24% year-over-year growth in prescriptions [8][26] - The pain portfolio generated $149.2 million in sales, reflecting a 3% year-over-year growth, with all three pain medicines showing single-digit growth [9][22] - BELBUCA net revenue was $51.7 million, up 2% year over year; Xtampza net revenue was $47.6 million, up 4%; and Nucynta franchise net revenue was $47.1 million, also up 4% [27] Market Data and Key Metrics Changes - Jornay's market share in the long-acting branded methylphenidate market increased to 20.3%, up 6.4% year over year [18] - The overall ADHD market is growing at about 5% to 6% annually [48] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth in Jornay, maximizing the pain portfolio's value, and strategically deploying capital to enhance shareholder value [5][11] - The company aims to diversify its portfolio through disciplined business development and has initiated a $25 million accelerated share repurchase program [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 financial guidance and emphasized the importance of cash flow generation from the pain portfolio [33][29] - The company is well-positioned to leverage its strengths in responsible pain management while expanding into ADHD treatment [21][34] Other Important Information - The company announced leadership changes, including the retirement of founder Mike Heffernan as Chairman [7][10] - The company is committed to returning value to shareholders through share repurchases and has a strong track record in this regard [31][13] Q&A Session Summary Question: How will Journey scripts trend as the school year ends? - Management noted that there is typically a slowdown in scripts towards the end of the school year, followed by an acceleration in the back-to-school season [36][39] Question: Is there potential to apply JOURNEY PM technology to other compounds? - Management confirmed that discussions regarding the application of the technology to other compounds had occurred prior to the acquisition [40] Question: What is the appetite for business development deals? - Management indicated a disciplined approach to capital deployment, focusing on the right opportunities for business development while also prioritizing debt repayment and share repurchases [42][61] Question: What is the overall ADHD market growth? - The market is growing at about 5% to 6% annually, consistent over the past few years [48] Question: What is the breakdown of the prescriber base for Jornay? - The prescriber base is approximately 40% pediatricians, 40% neuropsychiatrists, and the remaining 20% consists of PCPs and mid-level providers [49] Question: Where is Jornay's market share growth coming from? - The majority of market share growth is coming from the movement away from generic immediate-release products [50]

Financial Performance - Q1 2025 net product revenues reached $177.8 million, a 23% increase year-over-year compared to $144.9 million in Q1 2024[17,41] - Adjusted EBITDA for Q1 2025 was $95.2 million, a 3% increase compared to $92.4 million in Q1 2024[41] - Adjusted operating expenses for Q1 2025 were $62.2 million, an 80% increase compared to $34.5 million in Q1 2024[41] - The company reaffirms its 2025 financial guidance, projecting net product revenues between $735 million and $750 million, representing an 18% year-over-year increase[43] - The company reaffirms its 2025 financial guidance, projecting adjusted EBITDA between $435 million and $450 million, representing a 10% year-over-year increase[43] - The company reaffirms its 2025 financial guidance, projecting adjusted operating expenses between $220 million and $230 million, representing a 49% year-over-year increase[43] Jornay PM Growth - Jornay PM near-term revenue expectations are projected to be greater than $135 million in 2025, representing a greater than 34% increase from $100.7 million in 2024[33] - Jornay PM prescriptions grew by 24% year-over-year in Q1 2025[17,29] - Market share in branded LA methylphenidate market increased by 22%[29] Capital Deployment and Debt - The company had $197.8 million in cash, cash equivalents, and marketable securities, up $35 million from December 2024[18] - Net debt to adjusted EBITDA at the end of Q1 2025 was approximately 1.5x[18] - A $25 million Accelerated Share Repurchase (ASR) program was authorized by the Board in May 2025[18,48]

Financial Data and Key Metrics Changes - The company reported a 23% year-over-year revenue growth, with net product revenues reaching $177.8 million [27] - GAAP net income was $2.4 million, a decrease from $27.7 million in the first quarter of 2024, impacted by acquisition-related expenses [29] - Non-GAAP adjusted EBITDA was $95.2 million, up 3% year over year [29] - The cash position increased to $197.8 million, up $35 million from year-end [30] Business Line Data and Key Metrics Changes - The ADHD medicine Jornay generated $28.5 million in net revenue, with a 24% year-over-year growth in prescriptions [7][27] - The pain portfolio generated $149.2 million in sales, reflecting a 3% year-over-year growth, with all three pain medicines showing single-digit growth [9][22] - BELBUCA net revenue was $51.7 million, up 2% year over year; Xtampza net revenue was $47.6 million, up 4%; and Nucynta franchise net revenue was $47.1 million, also up 4% [28] Market Data and Key Metrics Changes - Jornay's market share in the long-acting branded methylphenidate market increased to 20.3%, up 6.4% year over year [19] - The overall ADHD market is growing at about 5% to 6% annually [48] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth in Jornay, maximizing the pain portfolio's value, and strategically deploying capital to enhance shareholder value [4][11] - The company aims to diversify its portfolio through disciplined business development and has authorized a $25 million accelerated share repurchase program [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the pain portfolio and its ability to generate significant cash flows [12][25] - The company is well-positioned to achieve its 2025 financial guidance and is focused on creating shareholder value [33] Other Important Information - The company completed the expansion of its ADHD sales force, adding approximately 55 new representatives, bringing the total to about 180 [9][20] - The company is undergoing leadership changes, with the founder retiring and new executives joining the team [10] Q&A Session Summary Question: How will Journey scripts trend as the school year ends? - Management noted that there is typically a slowdown in scripts towards the end of the school year, followed by an acceleration in the back-to-school season [36][38] Question: Is there potential to utilize JOURNEY PM technology for other compounds? - Management confirmed that discussions regarding the use of the technology for other compounds had occurred prior to the acquisition [40] Question: What is the appetite for business development deals? - Management indicated a disciplined approach to capital deployment, focusing on the right opportunities for business development while also prioritizing debt repayment and share repurchases [42][44] Question: What is the overall ADHD market growth? - The ADHD market is growing at about 5% to 6% annually [48] Question: What is the breakdown of the prescriber base for Jornay? - The prescriber base consists of approximately 40% pediatricians, 40% neuropsychiatrists, and the remaining 20% split between PCPs and mid-level providers [48] Question: What is the size of the sales organization contemplated for Jornay? - Management stated that the current sales force of 180 is appropriate for the target audience, with regular evaluations for potential adjustments [56]