Collegium Pharmaceutical, Inc. Q3 FY2025 earnings call

• Strong top and bottom line growth driven by Jornay PM's back-to-school season success and pain portfolio revenues.
• Progress on strategic priorities: driving Jornay growth, maximizing pain portfolio durability, and deploying capital for shareholder value.
• Jornay prescription growth accelerated during back-to-school, with positive early indicators from commercial efforts.
• Pain portfolio had meaningful revenue growth for the quarter, with all 3 core pain medicines growing for the third quarter in a row.
• Commercial investments made, including expanding sales force for Jornay and launching marketing campaigns.
• Capital deployment strategy focused on business development, share repurchases, and debt repayment.

In the third quarter of 2025, Collegium Pharmaceuticals saw strong performance in its segments. The lead growth driver, Jornay PM, generated a record net revenue of $41.8 million with prescriptions growing 20% year-over-year. The pain portfolio, which includes Belbuca, Xtampza ER, and Nucynta franchise, had record quarterly revenues. Belbuca net revenue was $58.3 million (up 10% YOY), Xtampza ER net revenue was $50.5 million (up 2% YOY), and Nucynta franchise net revenue was $54.8 million (up 21% YOY). The pain portfolio collectively reached an all-time high in quarterly revenues, contributing significantly to the company's top line.

• Total product revenues expected in range of $775M to $785M (24% YOY growth).
• Jornay revenue expected in range of $145M to $150M.
• Adjusted EBITDA expected in range of $460M to $470M.
• Net leverage expected to be less than 1x by year end, with $16.1M debt repaid in Q3 and additional $16.1M expected in Q4.

• Forward-looking statements involve risks and uncertainties as detailed in the company's periodic reports filed with the SEC. Future results may differ materially from current expectations.

Q: How did return reserves and inventory play into Q3 script growth and what about the impact of the expanded sales force on Q3?

A: Colleen Tupper noted gross to net for Jornay improved in Q3 due to seasonality, improving returns rates, and favorable contracting. Scott Dreyer stated the expanded sales force didn't have significant impact in Q3 but early signals of impact are seen with more targets writing prescriptions.

Q: How has Jornay's adherence rate trended since the back-to-school season began and any updates on BD activities?

A: Scott Dreyer said Jornay's adherence rate is in line with typical ADHD medications (9-10 months per TRx). Vikram Karnani mentioned the company remains active in BD but wouldn't comment on specific opportunities in process, emphasizing balance of business development, share repurchases, and debt repayment.

Q: Details on Nucynta's gross to net and rebate settlements impact?

A: Colleen Tupper said the rebate settlement benefit in Q3 was ~$2.8M, a timing difference. Nucynta IR had a gross to net of 28.5% and Nucynta ER of 31.8% in Q3.