Collegium Pharmaceutical, Inc. (COLL) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call shows strong financial performance with record revenue growth and optimistic guidance, particularly for Jornay PM. The new $150 million share repurchase program and debt repayment plan further enhance investor confidence. Despite increased operating expenses, the company's strategic focus on expanding market reach and awareness, especially among adults, is promising. The Q&A session did not reveal significant risks, and analysts seemed satisfied with management's responses. Considering the company's small-cap status, the positive developments are likely to result in a stock price increase of 2% to 8% over the next two weeks.
Key Financial Performance
Revenue Record quarterly revenue grew 29% year-over-year, driven by performance across the portfolio, including Jornay PM and the pain portfolio.
Adjusted EBITDA Grew 9% year-over-year, reflecting strong portfolio performance.
Jornay PM Revenue Record quarterly revenue of $32.6 million, prescriptions grew 23% year-over-year, driven by increased awareness and adoption.
Pain Portfolio Revenue Record $155.4 million in combined revenues, up 7% year-over-year, with all three core pain medicines showing growth.
Belbuca Revenue $52.6 million, up 1% year-over-year, reflecting steady demand.
Xtampza Revenue $52.6 million, up 18% year-over-year, benefiting from timing of rebate settlements.
Nucynta Franchise Revenue $46.4 million, up 4% year-over-year, reflecting consistent performance.
Operating Cash Flow Generated $72.4 million, growing cash position to $222 million, while paying down $16.1 million of debt and repurchasing $25 million in shares.
GAAP Operating Expenses $73.3 million, up 69% year-over-year, due to commercialization costs for Jornay and targeted investments.
Non-GAAP Adjusted Operating Expenses $61.9 million, up 104% year-over-year, reflecting investments in sales force expansion and marketing campaigns.
GAAP Net Income $12 million, compared to $19.6 million in the second quarter of 2024, reflecting increased operating expenses.
Non-GAAP Adjusted EBITDA $105.1 million, up 9% year-over-year, driven by portfolio performance.
GAAP Earnings Per Share $0.38 basic, $0.34 diluted, compared to $0.60 basic and $0.52 diluted in the prior year period.
Non-GAAP Adjusted Earnings Per Share $1.68, compared to $1.62 in the prior year period.
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Operating Highlights
Jornay PM: Generated record quarterly revenues of $32.6 million, a 23% year-over-year prescription growth. Expanded ADHD sales force to 180 representatives and launched new marketing campaigns to raise awareness.
ADHD Market: Jornay PM's market share in the long-acting branded methylphenidate market grew to 23%, up 7.6 percentage points year-over-year. Jornay is now the fastest-growing stimulant for ADHD.
Revenue Growth: Total revenue grew 29% year-over-year to $188 million. Adjusted EBITDA grew 9% year-over-year to $105.1 million.
Cash Flow and Debt Management: Generated $72.4 million in cash from operations, increased cash position to $222 million, repaid $16.1 million of debt, and completed a $25 million share repurchase program.
Capital Deployment Strategy: Focused on diversifying the portfolio through business development, repurchasing shares, and paying down debt. Authorized a new $150 million share repurchase program through December 2026.
Board Changes: Gino Santini appointed as Chairman of the Board, and Dr. Carlos Paya joined the Board, reflecting a focus on growth and succession planning.
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Risk or Challenges
Market Awareness and Adoption of Jornay: The company faces challenges in raising awareness and adoption of Jornay among healthcare providers (HCPs) and patients. There is a disconnect between patient needs and HCP perceptions, particularly regarding the importance of morning efficacy for adult ADHD patients. This could limit prescription growth and market penetration.
Increased Operating Expenses: Operating expenses have risen significantly, up 69% year-over-year on a GAAP basis and 104% on a non-GAAP basis. This increase is attributed to the commercialization of Jornay and targeted investments in sales force expansion and marketing campaigns. These higher costs could pressure margins and profitability if revenue growth does not offset the expenses.
Dependence on Pain Portfolio: The company’s pain portfolio, while currently strong, faces exclusivity expiration in 2027 and beyond. Any regulatory or market changes affecting this portfolio could impact the company’s financial stability and growth.
Debt and Leverage: Although the company is actively repaying debt, it still carries a net debt to adjusted EBITDA leverage of approximately 1.4x. This could limit financial flexibility, especially if cash flows are impacted by unforeseen challenges.
Regulatory and Market Risks: The company operates in a highly regulated biopharmaceutical industry. Any changes in regulations, pricing pressures, or market dynamics could adversely affect its operations and financial performance.
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Guidance & Outlook
2025 Financial Guidance: The company has raised its 2025 financial guidance, expecting total product revenues in the range of $745 million to $760 million, representing a 19% growth year-over-year. Adjusted EBITDA is projected to be in the range of $440 million to $455 million, a 12% increase year-over-year.
Jornay PM Revenue Projections: Jornay PM revenue is expected to be in the range of $140 million to $145 million in 2025, representing approximately 42% growth from 2024 pro forma revenue. Growth will be driven by demand, gross-to-net improvement, and seasonality, particularly during the back-to-school season.
Pain Portfolio Performance: The pain portfolio, including Belbuca, Xtampza ER, and Nucynta ER, is expected to continue delivering durable revenues and cash flows in the near to midterm. The company anticipates the lifecycle of these medicines to be longer and more robust than currently appreciated in the market.
Capital Deployment Strategy: The company plans to continue its capital deployment strategy, which includes diversifying its portfolio through business development, repurchasing shares, and rapidly paying down debt. A new $150 million share repurchase program has been authorized through December 2026.
Sales Force Expansion and Marketing Investments: The expansion of the ADHD sales force and new marketing campaigns are expected to drive significant growth for Jornay PM in 2026 and beyond. The company is targeting increased awareness and adoption among healthcare providers, patients, and caregivers.
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Shareholder Return Plan
Share Repurchase Program Completion: The company completed a $25 million accelerated share repurchase program in the second quarter of 2025.
New Share Repurchase Program Authorization: The Board approved a new $150 million share repurchase program, authorized through December 2026.
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Key Q&A
Q:What is the target goal for the number of additional prescribers for Jornay PM by the end of the year?
A:The company does not have a specific goal for prescribers but is focused on continued breadth of prescribing. Currently, there are 26,000 prescribers, up 23% year-over-year, and the company expects this growth to continue for years.
Q:What percentage of the targeted prescriber base is already familiar with Jornay PM?
A:Unaided awareness of Jornay PM is just over 50%, trailing only Vyvanse and Concerta. The company is working to further raise awareness.
Q:What progress has been made in tapping into the adult population for Jornay PM?
A:The adult market is large and growing. Currently, 20% of Jornay's business comes from adults, and the company expects this to grow. Growth in the adult segment was 33% this quarter, compared to 21% in pediatrics.
Q:Has the company considered revisiting the $300 million to $400 million peak sales estimate for Jornay PM?
A:The company will revisit the peak sales estimate after assessing the impact of the expanded sales team and new marketing campaigns.
Q:What further investments are being made across the pain portfolio?
A:The company is maintaining consistent investments in the pain portfolio, with about 100 salespeople and steady marketing spend. They do not market directly to consumers for opioids.
Q:What specific levers are being pulled in the third quarter to help Jornay PM's top line?
A:The company is focusing on raising awareness among healthcare providers and caregivers, especially during the back-to-school season. They aim to drive patients to ask physicians about Jornay, which often leads to prescriptions.
Q:What is the status of generic competition for the pain portfolio?
A:No party currently has the necessary combination of regulatory clearance, legal clearance, and manufacturing capability to launch generics. Specific details were provided for Belbuca and Nucynta, with potential generic entries not expected until 2027 or later.
Q:What kind of assets is the company looking for in terms of M&A or business development?
A:The company is focused on leveraging its existing position in pain and ADHD/psychiatry. They prefer commercial or commercial-ready assets and aim to remain financially disciplined. They may consider pipeline assets in the future after expanding their commercial portfolio.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the $300 million to $400 million peak sales estimate for Jornay PM, stating they would revisit it after assessing the impact of new initiatives. Additionally, while discussing M&A and business development, the response was broad and lacked specific details about potential targets or timelines.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Executive VP
HCP perception
Pharmaceuticals Conference
Research Division
awareness profile
benefit
care professional
completion share
core pain
differentiation favorability
driver prescription
durability pain
efficacy
expansion sale
flexibility
force marketing
force representative
health care
investment expansion
market pain
market research
marketing campaign
medicine foundation
oxycodone medicine
pain medicine
patient caregiver
portfolio core
priority
remainder
repurchase debt
request
resource
school season
technology
term differentiation
value completion
COLL Transcript
Collegium Pharmaceutical, Inc. (COLL) Q3 2025 Earnings Call Transcript
Positive11-6
The company reported record high revenue and strong earnings, coupled with optimistic guidance and a raised financial outlook. Despite some uncertainties in strategic execution and M&A specifics, the market is likely to react positively due to robust financial performance, a significant share repurchase program, and strategic growth initiatives. Given the company's small-cap status, these factors are expected to drive a positive stock price movement in the short term.
Collegium Pharmaceutical, Inc. (COLL) Q2 2025 Earnings Call Transcript
Positive8-7
The earnings call shows strong financial performance with record revenue growth and optimistic guidance, particularly for Jornay PM. The new $150 million share repurchase program and debt repayment plan further enhance investor confidence. Despite increased operating expenses, the company's strategic focus on expanding market reach and awareness, especially among adults, is promising. The Q&A session did not reveal significant risks, and analysts seemed satisfied with management's responses. Considering the company's small-cap status, the positive developments are likely to result in a stock price increase of 2% to 8% over the next two weeks.
Collegium Pharmaceutical, Inc. (COLL) Q1 2025 Earnings Call Transcript
Unknown5-9
The earnings call presents a mixed outlook. While financial performance shows growth, the decline in GAAP net income and EPS, alongside high operating expenses, raises concerns. The positive shareholder return plan and acquisition strategy are offset by competitive pressures and economic uncertainties highlighted in the Q&A. The market cap suggests moderate volatility, but the lack of clear guidance on key strategic initiatives tempers expectations. Overall, the sentiment is neutral given the balanced positives and negatives.
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q4 2024 Earnings Call Transcript
Unknown2-28
The earnings call presents a mixed picture: strong revenue growth and a robust share repurchase program are positives, but increased operational costs, economic pressures, and lackluster synergy realization pose challenges. The Q&A session highlights uncertainties about future synergies and market dynamics. Despite a solid financial performance, the lack of clear guidance on key issues tempers optimism. Considering the company's small-cap status, the stock price is likely to remain stable, with potential fluctuations balanced by both positive and negative factors.
COLL Slides
COLL Report
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