Collegium Pharmaceutical (NasdaqGS:COLL) FY Conference Transcript

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]