Collegium Pharmaceutical (NasdaqGS:COLL) Q3 2025 Earnings Call November 06, 2025 08:00 AM ET Speaker1Welcome to the Collegium Pharmaceutical third quarter 2025 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, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now turn the call o ...

Q3 2025 Earnings Report November 6, 2025 | Nasdaq: COLL Healthier people. Stronger communities. Forward-Looking Statements This presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as "predicts," "forecasts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "should" or other words that convey uncertainty of future ev ...

– Generated Record Quarterly Net Revenue of $209.4 Million, Up 31% Year-over-Year – – Generated Record Quarterly Jornay PM® Net Revenue of $41.8 Million; Grew Prescriptions by 20% Year-over-Year – – Generated Record Quarterly Pain Portfolio Net Revenue of $167.6 Million, Up 11% Year-over-Year, with All Three Core Products Growing Year-over-Year – – Raised Full-Year 2025 Net Revenue Guidance to be in the Range of $775 to $785 Million and Adjusted EBITDA Guidance in the Range of $460 to $470 Million – – Ende ...

Core Thesis - Collegium Pharmaceutical, Inc. is viewed as an undervalued investment opportunity, particularly due to its stable cash-generating pain portfolio and growth potential in the ADHD segment [2][5]. Company Overview - As of September 24th, Collegium's shares were trading at $35.16, with trailing and forward P/E ratios of 32.92 and 4.87 respectively [1]. - The company has historically faced stigma due to its opioid focus but has successfully commercialized products like Xtampa ER, Belbuca®, Symproic, and Nucynta without heavy R&D spending [2]. Recent Developments - The acquisition of BioDelivery Sciences International in 2022 allowed Collegium to bring Belbuca fully in-house, enhancing its control over commercialization and revenue [3]. - Collegium has entered the ADHD market with Jornay PM, which has over 20% market share in its niche and a projected 5-year CAGR of 5-6% [3]. Management and Strategy - The new management team, led by Vikram Karnani and David Dieter, has a strong track record in scaling niche pharmaceuticals through capital-light acquisitions and disciplined capital allocation [4]. - Collegium's pain portfolio funds growth in ADHD while maintaining exclusivity on key products until the early 2030s, creating high barriers to competition [4]. Financial Metrics - The company is trading at under 5x EV/EBITDA with steady double-digit ROIC, indicating it is undervalued compared to peers [5]. - There is a reasonable upside potential to $60 per share, with a bull scenario projecting $120 [5]. Market Position - Collegium is positioned as an overlooked specialty pharma opportunity with significant risk-adjusted upside, driven by a combination of stable cash flow and growth initiatives [5].

Core Insights - Collegium Pharmaceutical, Inc. will present nine posters at PAINWeek 2025, showcasing real-world data from its pain management portfolio, emphasizing its commitment to responsible pain management [1][42] - The poster session is scheduled for September 4, 2025, from 4 – 5:30 p.m. PT, aimed at providing healthcare professionals with insights to support clinical decision-making [2] Group 1: Research Presentations - The posters will include analyses on the treatment characteristics and safety of Belbuca and other opioid treatments among chronic low back pain patients [3] - Specific studies will cover the economic burden of transitioning patients from short-acting opioids to Belbuca, as well as the safety profiles of these medications [3][5] - Additional research will focus on opioid use disorder outcomes and clinical outcomes translated to healthcare costs [5][6] Group 2: Company Overview - Collegium is focused on building a diversified biopharmaceutical company with a strong portfolio in responsible pain management and has recently expanded into neuropsychiatry with the acquisition of Jornay PM [42] - The company's strategy includes growing its commercial portfolio, with Jornay PM identified as a key growth driver [42]

Core Insights - Collegium Pharmaceutical reported $188 million in revenue for the quarter ended June 2025, marking a year-over-year increase of 29.4% and an EPS of $1.68 compared to $1.62 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $180.38 million by 4.23%, and the EPS also surpassed the consensus estimate of $1.62 by 3.7% [1] Revenue Breakdown - Total product revenues for Belbuca were $52.6 million, slightly below the average estimate of $54.94 million, reflecting a year-over-year change of +0.8% [4] - Xtampza ER generated $52.61 million, exceeding the average estimate of $48.28 million, with an 18% increase compared to the previous year [4] - Jornay PM reported revenues of $32.63 million, slightly above the average estimate of $32.23 million [4] - Nucynta achieved $46.45 million in revenues, surpassing the average estimate of $43.31 million, representing a year-over-year change of +4.4% [4] - Symproic revenues were $3.72 million, exceeding the average estimate of $3.45 million, but showing a decline of 7.7% year-over-year [4] Stock Performance - Collegium Pharmaceutical's shares have returned -8.1% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - The company reported record revenue growth of 29% year over year, with adjusted EBITDA increasing by 9% year over year [6][21][22] - Net product revenues reached $188 million, with Jornay PM contributing $32.6 million, BELBUCA at $52.6 million (up 1%), Xtampza at $52.6 million (up 18%), and Nucynta franchise at $46.4 million (up 4%) [22][23] - GAAP net income was $12 million, down from $19.6 million in the prior year, while non-GAAP adjusted earnings per share increased to $1.68 from $1.62 [23][24] Business Lines Performance - Jornay PM prescriptions grew by 23% year over year, with record quarterly revenues of $32.6 million [6][22] - The pain portfolio generated record revenues of $155.4 million, up 7% year over year, with all three core pain medicines showing growth [6][18] Market Data - Jornay PM's market share in the long-acting branded methylphenidate market grew to 23%, up 7.6 percentage points year over year [15] - The company expanded its prescriber base for Jornay PM to over 26,000, a 23% increase compared to the previous year [15][35] Company Strategy and Industry Competition - The company aims to build a diversified biopharmaceutical portfolio, focusing on significant growth for Jornay PM and maximizing the pain portfolio [4][9] - The company is committed to strategic capital deployment, including share repurchases and business development opportunities [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on financial and strategic commitments, raising 2025 revenue guidance to approximately 19% growth year over year [8][28] - The company is focused on increasing awareness of Jornay PM among healthcare providers and patients, particularly in the adult ADHD market [12][17] Other Important Information - The company completed a $25 million accelerated share repurchase program and announced a new $150 million share repurchase program [7][26] - The company ended the quarter with $222.2 million in cash and cash equivalents, while reducing debt by $16.1 million [10][24] Q&A Session Summary Question: What is the target goal for additional prescribers for Jornay PM by year-end? - Management indicated that there is no specific goal for prescribers but expects continued growth in prescriber breadth [34][35] Question: What are the specific levers for growth in the third quarter? - Management highlighted the importance of raising awareness among healthcare providers and patients to drive prescriptions [51] Question: Any updates on generic competition for the pain portfolio? - Management noted that there are no immediate threats from generics due to regulatory and manufacturing barriers [53][56] Question: How does the company view potential business development opportunities? - Management stated a commitment to disciplined assessment of potential opportunities, focusing on commercial-ready assets [60][61]

Financial Performance - Collegium reported Q2 2025 product revenues of $188.0 million, a 29% increase compared to $145.3 million in Q2 2024 [20] - Adjusted EBITDA for Q2 2025 was $105.1 million, a 9% increase compared to $96.0 million in Q2 2024 [20] - The company raised its 2025 financial guidance for net product revenues to a range of $745 million to $760 million, representing a 19% year-over-year change [47] - Adjusted EBITDA guidance was raised to a range of $440 million to $455 million, a 12% year-over-year increase [47] - Adjusted operating expenses guidance was raised to a range of $225 million to $235 million, a 53% year-over-year increase [47] Business Highlights - Q2 2025 saw a 23% year-over-year growth in prescriptions for the pain portfolio [20] - The company had $222.2 million in cash, cash equivalents, and marketable securities, up $59.4 million from December 2024 [20] - Collegium completed a $25 million Accelerated Share Repurchase (ASR) in July 2025 and has authorized a $150 million share repurchase program through December 2026 [20, 51] Jornay PM Performance & Strategy - Jornay PM revenue is expected to be between $140 million and $145 million in 2025, representing a 42% increase [36] - The company is investing in Jornay PM to support near-term growth and drive significant momentum in 2026 and beyond [37]

Core Viewpoint - Collegium Pharmaceutical, Inc. is set to report its second quarter 2025 financial results on August 7, 2025, before market opening, followed by a live conference call at 8:00 a.m. ET [1]. Company Overview - Collegium Pharmaceutical is focused on becoming a leading, diversified biopharmaceutical company dedicated to improving the lives of individuals with serious medical conditions [3]. - The company has a strong portfolio in responsible pain management medications and has recently acquired Jornay PM, a treatment for ADHD, marking its entry into neuropsychiatry [3]. - Collegium's growth strategy emphasizes expanding its commercial portfolio, with Jornay PM identified as the primary growth driver, while maintaining disciplined capital deployment [3].

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]