Collegium Pharmaceutical(COLL) - 2024 Q4 - Earnings Call Transcript

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 $100.7 million [42][49] - Belbuca achieved net revenue of$ 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 $176.5 million for the full year, down 7% year-over-year [45] Market Data and Key Metrics Changes - The ADHD market has been growing at an average rate of 6% from 2019 to 2024, with stimulant medications comprising almost 90% of the market [21] - Jornay has achieved 80% coverage across its business, with 65% of its business being commercial and 35% Medicaid [25] Company Strategy and Development Direction - The company aims to drive significant growth in Jornay, maximize its pain portfolio, and strategically deploy capital to create shareholder value [16][19] - The focus is on expanding and diversifying the portfolio through business development, particularly in ADHD and neuropsychiatry [62] - The company plans to invest in increasing awareness of Jornay among healthcare professionals and patients, with a sales force expansion from 125 to 180 representatives [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position, with net leverage expected to be less than one time by the end of 2025 [53] - The company anticipates a modest decline in revenue in Q1 2025 due to typical dynamics, but expects over 10% adjusted EBITDA growth for the year [50][51] - Management highlighted the importance of disciplined capital deployment and the potential for significant growth in Jornay and the pain portfolio [19][52] Other Important Information - The company repurchased$ 60 million in shares during 2024, with $90 million remaining in its share repurchase program [52] - The company appointed Nancy Lurker to its Board of Directors, bringing expertise in commercial growth and strategic acquisitions [14] Q&A Session Summary Question: Path for Collegium over the next three to five years and business development opportunities - Management indicated a focus on both organic and inorganic growth, particularly in ADHD and neuropsychiatry, while maintaining a strong financial position [61][62] Question: Synergies realized from the integration of Ironshore - Management noted typical synergies achieved, but emphasized the strategic opportunity to invest in Jornay for growth [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 [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 approvals to launch competitive generics against their pain products [81][82]