Collegium Pharmaceutical, Inc. Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Strategic Priorities: Focus on driving growth for Jornay, maximizing the pain portfolio, and strategically deploying capital.
• Financial Performance: Q2 2025 saw record revenue growth of 29% year-over-year and adjusted EBITDA growth of 9% year-over-year.
• Jornay Execution: Expanded ADHD sales force by ~55 representatives, reaching over 26,000 prescribers in Q2 (up 23% year-over-year). Launched new marketing campaigns to raise awareness among HCPs, patients, and caregivers.
• Pain Portfolio Execution: Continued strong performance with all core pain medicines showing year-over-year revenue growth. Pain portfolio has strong brand fundamentals and differentiation, with Belbuca and Xtampza ER ranked highly in market research.
• Capital Deployment: Completed a $25 million accelerated share repurchase program, Board approved a new $150 million share repurchase program, repaid $16.1 million of debt, and generated $72.4 million in cash from operations.

Segment Performance

• Jornay: In the second quarter of 2025, Jornay achieved record quarterly revenue of $32.6 million, with prescriptions growing 23% year-over-year. For 2025, Jornay revenue is expected to be in the range of $140 million to $145 million, representing approximately 42% growth from 2024 pro forma revenue.
• Pain Portfolio: The pain portfolio recorded record quarterly revenue of $155.4 million in the second quarter, up 7% year-over-year. All three core pain medicines (Belbuca, Xtampza ER, Nucynta ER) saw year-over-year revenue growth. The pain portfolio collectively represents about half of the branded ER market and is well-positioned with exclusivity into 2027 and beyond.

Guidance

• Revenue: Now expects total revenue to grow approximately 19% year-over-year, with Jornay revenue in the range of $140 million to $145 million.
• Adjusted EBITDA: Expects adjusted EBITDA to grow approximately 12% year-over-year, in the range of $440 million to $455 million.
• Operating Expenses: Adjusted operating expenses are expected in the range of $225 million to $235 million, reflecting targeted investments for Jornay's growth.

Risks

• Generic Competition: For the pain portfolio, potential generic entries face challenges in regulatory clearance, legal clearance, and manufacturing capability. For example, Nucynta has potential entrants but lack of commercial scale quantities of tapentadol; Belbuca has received multiple CRLs from ANDA filers.
• Market Awareness: While Jornay has strong unaided awareness, there is room to continue raising awareness among HCPs, patients, and caregivers to drive prescriptions.

Question and Answer

• **Q: Target goal for additional prescribers for Jornay PM and awareness percentage?

A: No specific goal for prescribers, but 26,000 prescribers in Q2, up 23% year-over-year. Unaided awareness for Jornay was just north of 50%, with room to grow.

• **Q: Revisiting Jornay peak sales estimate?

A: Will revisit peak sales estimate after seeing impact of expanded sales team and marketing campaigns.

• **Q: Levers for Jornay in third quarter and generic competition in pain portfolio?

A: Levers include raising HCP awareness and patient/caregiver awareness for Jornay. For pain portfolio, no new generic competition updates, but key ingredients needed for generics are lacking.

• **Q: M&A and business development strategy?

A: Focus on diversified biopharmaceutical assets, leveraging existing pain and ADHD infrastructure, looking for commercial-ready assets, and will revisit pipeline assets when scale is achieved.