Summary of Collegium Pharmaceutical FY Conference Call Company Overview - **Company**: Collegium Pharmaceutical (NasdaqGS:COLL) - **Key Products**: Jornay PM, Belbuca, Nucynta, Xtampza - **Industry**: Pharmaceutical, specifically focusing on ADHD and pain management medications Key Points Jornay PM Performance - **Growth Driver**: Jornay PM is identified as the primary growth driver for Collegium, with a unique profile as the only ADHD medication taken at night [4][5] - **Prescription Growth**: In Q3, prescriptions for Jornay PM grew by 20% year-over-year, with new writers increasing by 22% [4] - **Sales Guidance**: Full-year net sales guidance for Jornay PM was raised to $145 million-$150 million, reflecting a 46% growth year-over-year [5] - **Market Context**: The overall ADHD market consists of approximately 100 million prescriptions, growing at 6%-8% annually [12] Commercial Infrastructure - **Sales Force Expansion**: The sales team was expanded from 125 to 180 representatives to effectively target over 21,000 physicians, focusing on both psychiatrists and pediatricians [14][20] - **Target Demographics**: Currently, 80% of Jornay PM prescriptions are for pediatric and adolescent patients, with plans to shift towards a 70/30 split with adults over time [29][33] Market Access and Competition - **Payer Access**: Access to Jornay PM is favorable, with a split of two-thirds commercial and one-third Medicaid. Patients typically need to try generics before accessing the branded product [42] - **Gross-to-Net Ratio**: The gross-to-net ratio for Jornay PM is expected to be in the mid-60s, improved from previous expectations [49][53] Legacy Pain Business - **Belbuca Exclusivity**: The first potential generic competitor for Belbuca is expected in January 2027, with no current generic entrants meeting all necessary criteria [68][66] - **Nucynta and Xtampza**: Nucynta has a stable revenue base, while Xtampza has a significant barrier to entry for generics, with a current gross-to-net ratio in the mid-50% range [125][128] Strategic Priorities - **Capital Deployment**: Collegium focuses on three strategic priorities: accelerating Jornay growth, maximizing the pain franchise, and disciplined capital deployment [129][131] - **Business Development**: The company is actively seeking additional business development opportunities, particularly in ADHD and rare diseases, with a focus on assets that can generate over $300 million in peak sales [140][142] Future Outlook - **Investment Strategy**: Collegium aims to invest in commercial or near-commercial assets that align with its existing sales force, while also considering the addition of a specialty sales force for rare disease products [148][154] - **Development Stage Assets**: Currently, Collegium does not plan to take on development stage assets until achieving greater commercial scale [155] Additional Insights - **Market Dynamics**: The ADHD market is characterized by a high volume of prescriptions and a competitive landscape, with Collegium's differentiated product positioning providing a unique advantage [3][12] - **Patient Demographics**: The company is seeing a mix of switchers from other medications and some treatment-naive patients, indicating a growing acceptance of Jornay PM among prescribers [60]

Summary of Collegium Pharmaceutical Conference Call Company Overview - **Company**: Collegium Pharmaceutical (NasdaqGS:COLL) - **Focus**: Chronic pain management and ADHD with five marketed products - **Revenue**: Expected to reach $780 million in 2025, representing a 24% year-over-year growth [1][3][11] Core Business Insights - **Flagship Products**: - Xtampza: Extended-release oxycodone with abuse-deterrent technology - Belbuca: Long-acting opioid using buprenorphine buccal film technology - Nucynta: Treats severe and persistent pain, including diabetic neuropathy - Jornay PM: Unique evening-dosed ADHD medication [2][3][11] - **Recent Acquisition**: IronSure in 2024, adding Jornay PM to the portfolio [2] Financial Performance - **Q3 2025 Results**: - Revenues: $209.4 million, up 31% year-over-year - Adjusted EBITDA: $133 million, up 27% year-over-year - Cash from operations: Nearly $80 million, total cash balance of $286 million [6][11] - **Debt Management**: - Net debt to adjusted EBITDA ratio down to 1.2 times, expected to be below 1 by year-end [7][12] Growth Strategy - **Three Core Pillars**: 1. Grow Jornay through strategic investments in sales and marketing 2. Maximize the value of the pain portfolio 3. Strategically deploy capital for business development, debt repayment, and share repurchases [4][12] - **Market Position**: - Jornay PM is the fastest-growing stimulant for ADHD, with a 20% growth in prescriptions [8][9] - Pain portfolio revenue growth: 10% for Belbuca and 2% for Xtampza in Q3 [11] Market Dynamics - **ADHD Market**: - Approximately 100 million prescriptions annually, with 90% being stimulant medications - Jornay PM has a unique evening dosing, leading to high differentiation and prescriber intent [7][8] - **Pain Management Market**: - Collegium's pain portfolio represents about half of the branded extended-release market - Minimal regulatory or clinical risks compared to peers [11][12] Shareholder Value - **Share Repurchases**: Over $220 million repurchased since 2021, with an authorization for an additional $150 million through 2026 [1][12] - **Future Outlook**: Confident in the strength and durability of the business, with robust revenue growth and strong cash flow generation expected [11][13]

Financial Data and Key Metrics Changes - The company reported record total revenues of $209.4 million, up 31% year-over-year [23] - Adjusted EBITDA reached $133 million, reflecting a 27% increase year-over-year [23] - Cash from operations was $78.4 million, with a cash balance of $285.9 million at the end of the quarter [25][23] - The company raised its 2025 financial guidance, expecting total product revenues in the range of $775 million to $785 million, representing a 24% increase year-over-year [25] Business Line Data and Key Metrics Changes - Jornay PM generated record net revenue of $41.8 million, with prescriptions growing 20% year-over-year [6][23] - The pain portfolio achieved record net revenue of $167.6 million, up 11% year-over-year [7] - Belbuca net revenue was $58.3 million, up 10% year-over-year, while Xtampza net revenue was $50.5 million, up 2% year-over-year [24] - Nucynta franchise net revenue reached $54.8 million, reflecting a 21% year-over-year increase [24] Market Data and Key Metrics Changes - Jornay PM's market share in the long-acting branded methylphenidate market grew to 23.4%, an increase of 6.3 percentage points year-over-year [14] - The prescriber base for Jornay PM reached an all-time high of 27,700, up 22% year-over-year [14] - The pediatric and adolescent segment, representing about 80% of total prescriptions, grew 18% year-over-year, while the adult segment grew 29% year-over-year [15] Company Strategy and Development Direction - The company is focused on driving significant growth for Jornay PM, maximizing the pain portfolio, and strategically deploying capital [9][10] - There is an emphasis on raising awareness of Jornay's differentiated profile among healthcare providers, patients, and caregivers [10] - The company remains active in pursuing additional differentiated medicines to expand its portfolio through business development [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the pain portfolio and significant growth from Jornay PM [8] - The company is committed to improving the lives of patients and creating value for shareholders [29] - Management highlighted the importance of ongoing investments in commercial efforts and the expansion of the sales force to drive future growth [10][11] Other Important Information - The company celebrated its 10-year anniversary as a publicly traded entity, marking a decade of delivering differentiated medicines [9] - The company presented nine posters at Pain Week 2025, showcasing real-world data from its pain portfolio [8] Q&A Session Summary Question: How did return reserves and inventory impact Q3 script growth? - Management noted that gross to net improved in Q3, with returns rates and favorable contracting contributing to this improvement [32] Question: What impact did the expanded sales force have in Q3? - Management indicated that while early signals of impact were observed, significant effects from the expanded sales force are expected in 2026 and beyond [33] Question: What is the adherence rate for Jornay PM since the back-to-school season? - Adherence rates for Jornay PM are consistent with typical ADHD medications, showing a standard adherence curve [44] Question: What is the company's approach to business development? - The company remains active in business development, focusing on commercial or near-commercial assets while balancing capital deployment strategies [53]

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 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]

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 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]

Financial Data and Key Metrics Changes - In Q4 2024, net product revenues reached a record $181.9 million, up 22% year-over-year [42] - For the full year 2024, net product revenues were a record $631.4 million, up 11% year-over-year [42] - Adjusted EBITDA grew by 9% year-over-year, reaching a record $401.2 million for 2024 [47] - GAAP net income for Q4 was $12.5 million, down from $31.9 million in Q4 2023, while full year net income was $69.2 million, up from $48.2 million in 2023 [46] Business Line Data and Key Metrics Changes - Jornay PM generated net revenue of $29.3 million in Q4 2024, with full year pro forma net revenue of $100.7 million, expected to exceed $135 million in 2025, representing over 34% growth [12][42] - Belbuca achieved net revenue of $55.2 million in Q4 2024, up 12% year-over-year, and $211.3 million for the full year, up 16% year-over-year [43] - Xtampza ER net revenue was $51.5 million in Q4, up 6% year-over-year, and $191.3 million for the full year, up 8% year-over-year [44] - Nucynta franchise net revenue was $41.8 million in Q4, down 11% year-over-year, and $176.5 million for the full year, down 7% year-over-year [45] Market Data and Key Metrics Changes - The ADHD market has been growing at an average rate of 6% from 2019 to 2024, with stimulant medications comprising almost 90% of the market [21] - Jornay PM prescriptions grew 29% year-over-year in Q4 2024, with a total of 636,200 prescriptions for the full year, up 31% compared to 2023 [12][27] Company Strategy and Development Direction - The company aims to drive significant growth in Jornay, maximize the pain portfolio, and strategically deploy capital to create shareholder value [16][19] - The focus is on expanding and diversifying the portfolio through business development, particularly in ADHD and neuropsychiatry [62] - The company plans to invest in raising awareness of Jornay among healthcare professionals and patients, with targeted investments expected to impact growth primarily in 2026 and beyond [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position, with net leverage expected to be less than one time by the end of 2025 [53] - The company anticipates a modest decline in revenue in Q1 2025 due to typical dynamics, but expects over 10% adjusted EBITDA growth for the year [50][51] - Management highlighted the importance of disciplined capital deployment and the potential for significant growth in the ADHD market [62] Other Important Information - The company repurchased $60 million in shares during 2024, with $90 million remaining in the share repurchase program authorized through Q2 2025 [52] - The acquisition of Ironshore Therapeutics and its lead medicine Jornay PM is seen as a strategic move to enter the neuropsychiatry market [9][66] Q&A Session Summary Question: Path for Collegium over the next three to five years and update on business development opportunities - Management indicated a focus on both organic and inorganic growth, particularly in ADHD and neuropsychiatry, while maintaining a strong financial position [58][62] Question: Synergies realized from the integration of Ironshore - Management noted typical synergies related to senior management overlap and G&A but emphasized the strategic investment in Jornay as the primary focus [66] Question: Impact of the NO PAIN Act on the pain treatment category - Management stated that the NO PAIN Act had no impact on their portfolio as it primarily focuses on inpatient settings, while their products are retail-based chronic pain therapies [67] Question: Sales force expansion and coverage of ADHD prescribers - The expanded sales force will cover 60% of the long-acting ADHD market, targeting approximately 23,000 healthcare professionals [79] Question: Long-term planning for generic entry of Belbuca and Nucynta - Management expressed confidence that no party currently has the necessary combination of ingredients and regulatory clearance to launch competitive generics against their pain products [81]