Collegium Pharmaceutical(US:COLL)2025-08-07 11:32Executive Summary & Highlights This section provides an overview of Collegium's strong Q2 2025 financial and operational performance, including record revenues, raised full-year guidance, and strategic capital deployment initiatives Q2 2025 Financial & Operational Highlights Collegium reported record quarterly net revenue, driven by strong performance in Jornay PM® and the pain portfolio. The company raised its full-year 2025 financial outlook and authorized a new share repurchase program, demonstrating robust financial health and commitment to shareholder value Key Financial & Operational Metrics (Q2 2025) | Metric | Value (Millions USD) | Change YoY | | :------------------------------------ | :------------ | :--------- | | Record Quarterly Net Revenue | $188.0 | +29% | | Record Quarterly Jornay PM® Net Revenue | $32.6 | - | | Jornay PM® Prescriptions Growth | - | +23% | | Pain Portfolio Net Revenue | $155.4 | +7% | | Full-Year 2025 Net Revenue Guidance | $745 - $760 | Raised | | Full-Year 2025 Adjusted EBITDA Guidance | $440 - $455 | Raised | | Cash, Cash Equivalents & Marketable Securities (Q2'25) | $222.2 | - | | Share Repurchase Program Authorized | $150 | New | CEO & CFO Commentary The CEO highlighted strong momentum from strategic priorities, including Jornay PM® growth, pain portfolio maximization, and capital deployment. The CFO emphasized record revenue, robust adjusted EBITDA, significant cash flow, and increased 2025 financial guidance, alongside ongoing business development and shareholder value initiatives - CEO: "We continued to generate strong momentum in the second quarter, driven by sustained execution across our three strategic priorities, including record revenue from Jornay PM, maximizing our pain portfolio, and strategically deploying capital to enhance shareholder value" 2 - CFO: Expects full-year revenue to grow by 19% and adjusted EBITDA to grow by 12% compared to 2024 2 - CFO: Noted the completion of a $25 million accelerated share repurchase program and the announcement of a new $150 million share repurchase program authorized through the end of 2026 2 Business Segment Performance This section details the Q2 2025 performance of Collegium's ADHD business (Jornay PM) and its pain portfolio, highlighting revenue growth and key product contributions ADHD Business (Jornay PM) Jornay PM® achieved record net revenue and prescription growth in Q2 2025, with an all-time high in prescribers. The full-year 2025 net revenue guidance for Jornay PM® was subsequently raised - Jornay PM® prescriptions grew 23% year-over-year in Q2 2025 5 - Generated $32.6 million in Jornay PM® net revenue in Q2 2025 5 - Full-year 2025 Jornay PM® net revenue is expected to be in the range of $140 million to $145 million, an increase from the previous guidance of at least $135 million 5 - Jornay PM® prescribers reached an all-time high of over 26,000 healthcare providers in Q2 2025, up 23% year-over-year 5 Pain Portfolio The pain portfolio generated record net revenues in Q2 2025, with all three core products—Belbuca®, Xtampza® ER, and Nucynta® Franchise—contributing to year-over-year revenue growth - Net revenues from the pain portfolio grew to a record $155.4 million in Q2 2025, up 7% year-over-year 4 Pain Portfolio Net Revenue (Millions USD) | Product | Q2 2025 Net Revenue (Millions USD) | YoY Change | | :------------------ | :------------------ | :--------- | | Belbuca® | $52.6 | +1% | | Xtampza® ER | $52.6 | +18% | | Nucynta® Franchise | $46.4 | +4% | Corporate Updates & Outlook This section covers recent corporate developments, including share repurchase programs and board appointments, along with the company's updated full-year 2025 financial guidance and upcoming investor events Corporate Developments Collegium's Board of Directors authorized a new $150 million share repurchase program and completed a $25 million accelerated share repurchase program. The company also announced new appointments to its Board of Directors - In July, the Board of Directors authorized a new share repurchase program to repurchase up to $150 million of common stock through December 31, 2026 8 - In July, completed an accelerated share repurchase program, returning $25 million of value to shareholders through the repurchase of 0.8 million shares at an average price of $30.41 8 - In May, Gino Santini was appointed as Chairman of the Board of Directors, and Dr. Carlos Paya was added as a director 8 Investor Events Collegium Pharmaceutical is scheduled to participate in several investor conferences in August and September 2025, including the Piper Sandler CNS Symposium, Wells Fargo Healthcare Conference, Morgan Stanley Global Healthcare Conference, and H.C. Wainwright Global Investment Conference - Upcoming investor conferences include: Piper Sandler CNS Symposium (August 14, 2025), 2025 Wells Fargo Healthcare Conference (September 4, 2025), Morgan Stanley 23rd Annual Global Healthcare Conference (September 8, 2025), and H.C. Wainwright 26th Annual Global Investment Conference (September 9, 2025) 8 Full-Year 2025 Financial Guidance The company updated its full-year 2025 financial guidance, raising projections for Product Revenues, Net, Adjusted Operating Expenses, and Adjusted EBITDA Updated Full-Year 2025 Guidance | Metric | Prior Guidance (Millions USD) | Updated Guidance (Millions USD) | | :-------------------------- | :---------------- | :---------------- | | Product Revenues, Net | $735 - $750 | $745 - $760 | | Adjusted Operating Expenses | $220 - $230 | $225 - $235 | | Adjusted EBITDA | $435 - $450 | $440 - $455 | Detailed Financial Results (Q2 2025) This section presents Collegium's Q2 2025 GAAP and non-GAAP financial performance, detailing product revenues, expenses, net income, and cash flow GAAP Financial Performance In Q2 2025, Collegium reported a significant year-over-year increase in product revenues and GAAP operating expenses, while GAAP net income and earnings per share decreased compared to Q2 2024 Q2 2025 GAAP Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :-------------------------- | :---------- | :---------- | :--------- | | Product revenues, net | $188.0 | $145.3 | +29% | | GAAP operating expenses | $73.3 | $43.3 | +69% | | GAAP net income | $12.0 | $19.6 | -39% | | GAAP earnings per share (basic) | $0.38 | $0.60 | -36.7% | | GAAP earnings per share (diluted) | $0.34 | $0.52 | -34.6% | Non-GAAP Financial Performance Q2 2025 saw a substantial increase in adjusted operating expenses, while non-GAAP adjusted net income and adjusted EPS showed modest growth. Adjusted EBITDA also increased, and the company generated significant cash from operations Q2 2025 Non-GAAP Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :-------------------------- | :---------- | :---------- | :--------- | | Adjusted operating expenses | $61.9 | $30.3 | +104% | | Non-GAAP adjusted net income | $64.3 | $64.0 | +0.5% | | Adjusted earnings per share | $1.68 | $1.62 | +3.7% | | Adjusted EBITDA | $105.1 | $96.0 | +9% | | Cash from operations | $72.4 | - | - | Company Information This section provides an overview of Collegium Pharmaceutical, Inc., its strategic focus, and details for accessing the Q2 2025 earnings conference call and investor contacts About Collegium Pharmaceutical, Inc. Collegium is a diversified biopharmaceutical company dedicated to improving the lives of patients with serious medical conditions. It manages a portfolio of pain management medications and a growing neuropsychiatry business, with Jornay PM® as a key growth driver. The company's strategy focuses on commercial portfolio expansion and disciplined capital deployment - Collegium is building a leading, diversified biopharmaceutical company committed to improving the lives of people living with serious medical conditions 12 - The company has a leading portfolio of responsible pain management medications and a rapidly growing neuropsychiatry business driven by Jornay PM®, a differentiated treatment for ADHD 12 - Collegium's strategy includes growing its commercial portfolio, with Jornay PM® as the lead growth driver, and deploying capital in a disciplined manner 12 Conference Call & Contacts This section provides details for accessing the Q2 2025 earnings conference call and webcast, along with contact information for investor relations and corporate communications - The company hosted a conference call and live audio webcast on Thursday, August 7, 2025, at 8:00 a.m. ET 11 - The audio webcast is accessible from the Investors section of www.collegiumpharma.com 11 - Investor contacts are Ian Karp (Head of Investor Relations) and Danielle Jesse (Director, Investor Relations). Media contact is Cheryl Wheeler (Head of Corporate Communications) 24 Non-GAAP Financial Measures Explanation This section defines Collegium's non-GAAP financial measures, explains their rationale and limitations, and outlines specific adjustments made for reporting purposes Definition and Rationale Collegium uses non-GAAP financial measures to complement GAAP results, believing they offer valuable insights into operational activities, cash generation, budgeting, and forecasting. These measures, particularly adjusted EBITDA, are also utilized for performance evaluation in employee compensation - Non-GAAP financial measures provide insights into how the company evaluates normal operational activities, including its ability to generate cash from operations, on a comparable year-over-year basis and manage budgeting and forecasting 13 - Adjusted EBITDA is used to measure performance when determining components of annual compensation for substantially all non-sales force employees, including senior management 13 - Adjusted EBITDA is defined as GAAP net income or loss adjusted to exclude interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other adjustments for non-ongoing operations 15 Limitations of Non-GAAP Measures The company acknowledges several limitations of using adjusted EBITDA and other non-GAAP measures, such as the exclusion of non-cash expenses that represent future cash requirements, working capital changes, taxes, and various episodic or non-recurring expenses. Reconciliation of forward-looking GAAP measures is not provided due to the unpredictable nature of certain items - Adjusted EBITDA excludes depreciation and amortization, which are non-cash expenses but relate to assets that may require future cash replacement 16 - Adjusted EBITDA does not reflect changes in working capital needs, cash requirements for taxes, or historical/future capital expenditures and contractual commitments 16 - The company excludes various episodic expenses from adjusted EBITDA, including stock-based compensation (a significant recurring expense), impairment expenses, restructuring expenses, litigation settlements, acquisition-related expenses, recognition of step-up basis in inventory, losses on extinguishments of debt, and executive transition expenses 21 - A reconciliation of full-year 2025 guidance for adjusted EBITDA or adjusted operating expenses to GAAP measures is not provided due to the unreasonable efforts exception, as the timing and amount of certain items are unpredictable 2022 Specific Non-GAAP Measures This section defines Adjusted Operating Expenses, Adjusted Net Income, and Adjusted Earnings Per Share, outlining the specific types of adjustments made to their GAAP counterparts - Adjusted operating expenses represent GAAP operating expenses adjusted to exclude stock-based compensation expense and other adjustments for non-ongoing operations 17 - Adjusted net income is GAAP net income or loss adjusted to exclude significant non-cash or non-ongoing operational income and expense items, considering their tax effect 18 - Adjusted earnings per share is adjusted net income per share, calculated using adjusted weighted-average shares - diluted 18 Forward-Looking Statements This section contains cautionary statements regarding forward-looking information, including financial guidance, market opportunities, and operational plans. It notes that actual results may differ materially due to various risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update these statements Forward-Looking Statements This section contains cautionary statements regarding forward-looking information, including financial guidance, market opportunities, and operational plans. It notes that actual results may differ materially due to various risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update these statements - The press release contains forward-looking statements identified by terms such as "predicts," "forecasts," "believes," "expects," and "plans," related to 2025 financial guidance, market opportunities, and other non-historical facts 23 - Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from current expectations, including risks related to unknown liabilities, market opportunities, commercialization, regulatory approval, litigation, and supply chain 23 - These risks are described under "Risk Factors" in the company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other SEC filings 23 - The company assumes no obligation to update its forward-looking statements after the date of the press release 23 Unaudited Financial Statements This section presents Collegium's unaudited consolidated balance sheets and condensed statements of operations for Q2 2025 and prior periods Consolidated Balance Sheet This section presents selected unaudited consolidated balance sheet information for Collegium Pharmaceutical, Inc. as of June 30, 2025, and December 31, 2024, detailing key asset, liability, and equity accounts Unaudited Selected Consolidated Balance Sheet Information (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :----------------- | | Cash and cash equivalents | $117,348 | $70,565 | | Marketable securities | $104,805 | $92,198 | | Accounts receivable, net | $213,023 | $228,540 | | Inventory | $38,148 | $35,560 | | Total assets | $1,592,631 | $1,663,591 | | Accounts payable and accrued liabilities | $70,326 | $76,058 | | Term notes payable | $585,231 | $615,316 | | Convertible senior notes | $237,688 | $237,172 | | Shareholders' equity | $232,206 | $228,842 | Condensed Statements of Operations This section provides the unaudited condensed statements of operations for the three and six months ended June 30, 2025, and 2024, outlining product revenues, cost of revenues, operating expenses, and net income Unaudited Condensed Statements of Operations (Three Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | | :---------------------------------- | :------ | :------ | | Product revenues, net | $188,000 | $145,276 | | Total cost of product revenues | $79,616 | $54,470 | | Gross profit | $108,384 | $90,806 | | Total operating expenses | $73,279 | $43,335 | | Income from operations | $35,105 | $47,471 | | Net income | $11,983 | $19,606 | | Earnings per share — basic | $0.38 | $0.60 | | Earnings per share — diluted | $0.34 | $0.52 | Unaudited Condensed Statements of Operations (Six Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | | :---------------------------------- | :------ | :------ | | Product revenues, net | $365,757 | $290,199 | | Total cost of product revenues | $160,049 | $107,937 | | Gross profit | $205,708 | $182,262 | | Total operating expenses | $148,916 | $85,317 | | Income from operations | $56,792 | $96,945 | | Net income | $14,400 | $47,319 | | Earnings per share — basic | $0.45 | $1.46 | | Earnings per share — diluted | $0.44 | $1.24 | Non-GAAP Reconciliations This section provides detailed reconciliations of GAAP net income to Adjusted EBITDA, GAAP operating expenses to Adjusted Operating Expenses, and GAAP net income to Adjusted Net Income and Adjusted EPS for Q2 2025 and prior periods GAAP Net Income to Adjusted EBITDA Reconciliation This section provides a detailed reconciliation of GAAP net income to Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, itemizing all adjustments made Reconciliation of GAAP Net Income to Adjusted EBITDA (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :------ | :------ | | GAAP net income | $11,983 | $19,606 | | Total adjustments | $93,079 | $76,395 | | Adjusted EBITDA | $105,062 | $96,001 | Reconciliation of GAAP Net Income to Adjusted EBITDA (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :------ | :------ | | GAAP net income | $14,400 | $47,319 | | Total adjustments | $185,814 | $141,065 | | Adjusted EBITDA | $200,214 | $188,384 | GAAP Operating Expenses to Adjusted Operating Expenses Reconciliation This section presents the reconciliation of GAAP operating expenses to Adjusted Operating Expenses for the three and six months ended June 30, 2025, and 2024, detailing the specific adjustments applied Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :------ | :------ | | GAAP operating expenses | $73,279 | $43,335 | | Total adjustments | $11,395 | $13,063 | | Adjusted operating expenses | $61,884 | $30,272 | Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :------ | :------ | | GAAP operating expenses | $148,916 | $85,317 | | Total adjustments | $24,819 | $20,538 | | Adjusted operating expenses | $124,097 | $64,779 | GAAP Net Income to Adjusted Net Income and Adjusted EPS Reconciliation This section details the reconciliation from GAAP net income to Adjusted Net Income and Adjusted Earnings Per Share for the three and six months ended June 30, 2025, and 2024, including the income tax effect of adjustments and adjusted weighted-average shares Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS (Three Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | | :---------------------------------- | :------ | :------ | | GAAP net income | $11,983 | $19,606 | | Total adjustments | $52,306 | $44,358 | | Non-GAAP adjusted net income | $64,289 | $63,964 | | Adjusted weighted-average shares — diluted | 39,075,703 | 40,383,695 | | Adjusted earnings per share | $1.68 | $1.62 | Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS (Six Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | | :---------------------------------- | :------ | :------ | | GAAP net income | $14,400 | $47,319 | | Total adjustments | $107,310 | $75,477 | | Non-GAAP adjusted net income | $121,710 | $122,796 | | Adjusted weighted-average shares — diluted | 39,283,297 | 40,510,943 | | Adjusted earnings per share | $3.16 | $3.09 |