Collegium Pharmaceutical(COLL) - 2025 Q3 - Quarterly Report

Financial Performance - Product revenues for Q3 2025 reached $209.4 million, a 31.5% increase from $159.3 million in Q3 2024[19] - Gross profit for the nine months ended September 30, 2025, was $334.9 million, compared to $279.1 million for the same period in 2024, reflecting a 19.9% increase[19] - Net income for Q3 2025 was $31.5 million, significantly up from $9.3 million in Q3 2024, representing a 237.5% increase[19] - The company reported a comprehensive income of $31.5 million for Q3 2025, compared to $9.9 million in Q3 2024, reflecting a 217.4% increase[22] - Net income for the three months ended September 30, 2025, was $31,507, compared to $9,335 for the same period in 2024, representing a year-over-year increase of 237%[70] - The effective tax rate for the three months ended September 30, 2025, was 27.5%, a decrease from 40.1% in the same period of 2024[173] Assets and Liabilities - Total current assets increased to $613.9 million as of September 30, 2025, compared to $482.3 million at the end of 2024, marking a 27.3% growth[16] - Total liabilities decreased to $1.33 billion as of September 30, 2025, down from $1.43 billion at the end of 2024, a reduction of 7.8%[16] - Cash and cash equivalents rose to $150.1 million as of September 30, 2025, compared to $70.6 million at the end of 2024, an increase of 112.5%[16] - Total assets measured at fair value as of September 30, 2025, amounted to $173,154 million, an increase from $130,344 million as of December 31, 2024[74] - The fair value of the Company's 2.875% convertible senior notes due in 2029 was $286,491 million with a net carrying value of $237,950 million as of September 30, 2025[78] Revenue Recognition and Accounting - The Company recognized revenue when a customer obtains control of promised goods, typically upon delivery, with payment received 30 to 90 days after[43] - The Company bases its estimates of variable consideration on historical data, including timing of rebates and returns, pricing adjustments, and quantity of products expected to be rebated or returned[45] - Provisions for product returns are based on product-level return rates and are estimated at the time of revenue recognition[47] - The Company provides an 18-month return window for customers, starting six months prior to expiration and ending twelve months after[48] - The Company disaggregates revenue from contracts with customers by product to reflect how economic factors affect revenue and cash flows[55] Acquisition and Intangible Assets - The Company closed its acquisition of Ironshore Therapeutics Inc. on September 3, 2024, acquiring the Jornay PM product, which has commercial approval in the U.S.[27] - The Ironshore Acquisition was completed on September 3, 2024, for a total consideration of approximately $306,104, which includes $276,888 in cash and $29,216 in deferred and contingent payments[62] - The fair value of acquired intangible assets from the Ironshore Acquisition was recorded at $635,000, amortized over a useful life of 7.7 years[65] - The total identifiable net assets acquired in the Ironshore Acquisition amounted to $294,036, with goodwill recorded at $12,068[64] Operating Expenses - Operating expenses for the nine months ended September 30, 2025, were $216.0 million, up from $147.3 million in the same period of 2024, a 46.7% increase[19] - Total commercial expenses for the three months ended September 30, 2025, were $36.93 million, up from $20.08 million in the same period of 2024, indicating an increase of 83.5%[177] - Selling, general and administrative expenses increased by $69.9 million to $217.2 million in the 2025 Period, primarily due to higher salaries and marketing expenses following the Ironshore Acquisition[210] - Salaries, wages, and benefits rose by $42.2 million, driven by additional headcount from the Ironshore Acquisition and executive transitions[210] - Sales and marketing expenses increased by $34.7 million to support the commercialization of Jornay PM post-Ironshore Acquisition[210] Stock and Shareholder Activities - The total shareholders' equity as of June 30, 2025, was $232.21 million, reflecting a net income of $31.51 million for the period[119] - The company repurchased shares under the Accelerated Share Repurchase agreement, resulting in a reduction of $25.01 million in treasury stock[119] - The company repurchased 2,704,830 shares at a weighted-average price of $31.43 per share, totaling $85,025 under the 2024-2025 Repurchase Program[127] - The 2025 Plan has 3,257,241 shares available for issuance as of September 30, 2025, with an aggregate of 1,600,000 shares authorized for issuance[121] - The company has not yet repurchased shares under the 2025-2026 Repurchase Program, leaving $150,000 available for share repurchases as of September 30, 2025[129] Legal Proceedings - The company is currently involved in multiple legal proceedings, including patent infringement lawsuits related to Xtampza ER and Nucynta, but is unable to estimate potential losses at this stage[146][150] - The company plans to vigorously defend against ongoing litigation, including the Merger Litigations related to the BDSI Acquisition, which allege violations of the Exchange Act[156][159] - The company has settled a patent infringement dispute with Aquestive Therapeutics for a one-time payment of $8,500, recognized as an expense in the consolidated statements of operations for the year ended December 31, 2023[155] - The company has received subpoenas related to opioid sales and marketing practices and is cooperating with investigations from several state Attorney General offices[151][152] Product Performance - Jornay PM generated $41,802 in revenue for the three months ended September 30, 2025, compared to $7,961 in the same period of 2024, reflecting a significant increase of 424%[56] - For the nine months ended September 30, 2025, product revenues were $575.1 million, a 27.9% increase from $449.5 million in the same period of 2024, driven by strong performance from Jornay PM and Nucynta Products[204] - Gross profit for the three months ended September 30, 2025, was $129.2 million, compared to $96.8 million in the same period of 2024, reflecting a gross margin improvement[189] - Jornay PM revenue increased by $33.8 million due to its acquisition from Ironshore Therapeutics in September 2024[191] - Nucynta Products revenue rose by $9.7 million, attributed to lower gross-to-net adjustments and higher gross prices, despite lower sales volume[192]