COLLEGIUM PHARMACEUTICAL, INC Q4 FY2024 earnings call

Management Statement and Operational Highlights

• 2024 was transformational: growth in pain portfolio, acquisition of Ironshore Therapeutics and Jornay, Journee's growth accelerated, financial guidance met, $60 million share repurchased, Nucynta exclusivity extended, new board member and IR head appointed.
• 2025 priorities:
  • Drive significant growth in Journee by increasing awareness and adoption among HCPs, patients, and caregivers, with investments expected to impact growth in 2026 and beyond.
  • Maximize the pain portfolio, leveraging its durable cash flows.
  • Strategically deploy capital through business development, share repurchases, and debt reduction.

Segment Performance

• Journee: In the fourth quarter, prescriptions grew 29% year-over-year and 11% quarter-over-quarter. Pro forma net revenue in 2024 was $100.7 million, and expected to be over $135 million in 2025, representing over 34% growth. Fourth quarter net revenue was $29.3 million (first full quarter of ownership).
• Pain Portfolio: Generated 5% revenue growth in 2024. Belbuca had record quarterly and annual revenues, with fourth quarter net revenue $55.2 million (up 12% YOY) and 2024 net revenue $211.3 million (up 16% YOY). Xtampza ER had fourth quarter net revenue $51.5 million (up 6% YOY) and 2024 net revenue $191.3 million (up 8% YOY). Nucynta franchise net revenue was $41.8 million in the fourth quarter (down 11% YOY) and $176.5 million in 2024 (down 7% YOY), but exclusivity extended to July 2027 for Nucynta ER.

Guidance

• 2025 net product revenues expected in the range of $735 million to $750 million, primarily driven by Journee with net product revenues in excess of $135 million.
• Adjusted EBITDA expected in the range of $435 million to $450 million, with adjusted operating expenses in the range of $220 million to $230 million.
• $90 million remaining in share repurchase program authorized through Q2 2025. Expect net leverage to be less than 1 times by end of 2025.

Risks

• Risks related to not successfully commercializing products, incurring significant expenses in commercialization, and potential litigation pertaining to the business.

Question and Answer Q: Lay out path for Collegium over next 3-5 years, BD opportunities, Ironshore synergies, and impact of NOPAIN Act.

A: Vikram Karnani mentioned focus on organic and inorganic growth, interest in ADHD, neuropsychiatry, and CNS areas; Ironshore synergies were not meaningful; NOPAIN Act had no impact on portfolio as it focuses on inpatient setting while products are retail-based.

Q: Sales force expansion details, long-term sales force needs, and LOE for Belbuca and Nucynta.

A: Scott Dreyer said expanding sales force to 180 will cover 60% of long-acting ADHD market; Colleen Tupper stated no party has necessary ingredients for generic launch against pain portfolio products, and exclusivity extensions provide time to invest before potential generics.