COLL - Earnings call transcript Q1 2019 | Collegium Pharmaceutical, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Collegium Pharmaceutical’s First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call maybe recorded. I would now like to introduce your host for today’s conference Ms. Dasalla. Alex begin. may you Ma’am,

Alex Dasalla

our to Chief the call. Relations XXXX conference and Joe first Collegium. our Paul Chief Financial Officer. Collegium is Alex Pharmaceutical’s Officer; Ciaffoni, by This today Investor Dreyer, am quarter Executive Dasalla, Officer; I Brannelly, our earnings Scott joined Welcome Chief Commercial Head for of

that made is remind of the none are we today’s intended be to Harbor Before to that the begin statements Reform call, Private provision participants we of any promotional pursuant made of and presented XXXX. today Securities want today forward-looking Act to Safe information Litigation the

patent current You detailed filed risks to the commercialize and Securities the are product and limitation, risks risks Commission. products that in we and involve Nucynta franchise, or prevail we Xtampza and ER with and be of such incur may cautioned not successfully company litigation risks and future forward-looking that pertaining litigation periodic significant Exchange or may expense statements reports our to the company’s without uncertainties, other the including, These other will and candidates. the infringement and in not that are able

expectations may Our from future discussed differ today. our results current materially

will Our certain include earnings this release non-GAAP and call of discussion information.

release, You Collegium’s to over on our can CEO, I non-GAAP relevant turn Joe earnings find call the corporate will our reconciliations including website now at Ciaffoni. collegiumpharma.com.

Joe Ciaffoni

the for breakthrough Good We Alex. year Thanks, Pharmaceutical. joining that call. Collegium XXXX and everyone you be for thank believe will a afternoon

include not to ER, our mid-term to of our to add growth laser priorities our to QX, oxycodone become XXXX. pain XX% total in confident in for quarter ER the were growing leverage first and positioned up XX% XXXX, our Collegium Xtampza XX% franchise, Xtampza by versus Xtampza million, the net strengthen up key payer management. focused which up that value be that revenue XXXX, exclusive is of the XX responsible for revenue versus continues performance XXX,XXX, exclusively the highlights versus encouraged first well leader ER QX XXXX. X, operational structure new million, Financial strategy. leverage took execute cost quarter accelerate our oxycodone execution, ER $XX.X on the $XX.X prescriptions ER wins Xtampza are on and wins, the We to Nucynta remain effect first We opioid. the January fastest ER quarter payer maximize branded Driven by of are of

half growth XXXX. QX, of million, followed case As the was moderated was first QX, half down rate the Nucynta the rate Nucynta XX% prescriptions anticipate second franchise in franchise versus faster revenue of the of by year, up X% were XXXX. XXXX. $XX.X in a growth XXXX, sustained we at a in versus

driver due commercial to seasonality quarter primary First the plans the high decline. is of deductible

the in Richard patent We drug quarter expect book with execution XX growth ER addition already orange Medical first expiry IR to Xtampza FDA development. XXXX. orange ER remainder of strong the extensive in the now mid-term pain strategy. team. role appointment play the this prescription experience in and patents, and the covering Dr. grow a the the an to in include to of the ER Richard of all In of rate a our role Officer decline has executive With stages added Other He portfolio. of Nucynta accomplishments sequentially XXXX. Malamut of listed quarter, will the was book new an enhancing Chief key date Xtampza moderate member of and to across over has

stage growth strategy, and we pursuing differentiated. actively As development we're that later it innovative pertains assets believe mid-term to our are

on focus market becoming revenue generate programs is capabilities the non-opioid XXXX. commercial Our specialist as areas and on that has to Collegium's office potential space credibility Pharmaceutical are and Xtampza U.S. and focus early Nucynta favorably differentiated. that the development committed and pain strength as of IR Collegium with products pain pain was and ER primary portfolio as management. differentiation. competitive specialist to leader the responsible pain view Nucynta our ER, and of Today consists

Our into us step time step have to when out. opted at market the portfolio others compels pain a to

processes personnel, to importance trust to key our earning continue every the to of We mission. invest We in recognize stakeholders systems us achieve the and day. of enable

focused we the the to utter place the will work I'm payment time, accelerating non-opioid call take paid at have confident value in positive U.S. enable to over we in a the I Collegium ER in performance difference thank in a do At next like that of a to Xtampza solutions hand final communities. market. to the and to hard in of management. our and to colleagues leader by position XXXX. my of first and recognize that On would the maximizing note, franchise the a the will our for suffering remainder on continue encouraged generation that people all become pain moment now to I We’re pain from the and make to same our Nucynta quarter for Collegium Collegium they will lives responsible the Paul. of

Paul Brannelly

afternoon, everyone. Thanks, Good Joe.

$X.X ER well QX increase million. decrease as a was in in for discount, is increase by net The Nucynta price in to growth Xtampza improvement increase product XX% partially to a $XX.X Joe quarter year. for first first million Net in XXs low believe We X.X% gross As revenue million, the $XX.X was gross quarter. in the net The from lower net for Xtampza gross the that net price. decrease from average offset in as XXXX fourth discount XX% revenue the was Compared the product average QX to to from revenue the in growth driven driven Nucynta by revenues total contributing will prescription and prescription a stocking, in XXXX. January. and volume. decreased quarter decrease $XX.X the which XXXX by Xtampza was product million discount of by is with stated XXXX

of million to prior the net compared net the For for was quarter. of loss quarter loss $XX.X year first XXXX million $X.X the our

first compensation litigation. of quarter and stock-based of increase professional due million to in $X.X increase a $X.X an includes million XXXX primarily The fees, for

adjusted for first Our XXXX quarter loss the of of $X.X non-GAAP XXXX. XXXX of to fourth the was quarter for first million quarter for million million and compared $X.X $XX.X the

$XX.X XXXX balance million our $XXX.X of As cash March from year-end million, decrease balance. was our which XX, an was

and payment call our payments as Scott update. impacted I fees out $X.X are first The year Cash will of annual in but to distribution for won’t of turn recur of but Nucynta expenses wholesaler. the encouraged taxes royalties that with additional on the basis, a first impacted than lumpy will $XX.X related Grunenthal to quarter on expect basis. quarterly to a of are operating progress number quarter. related year, discount to-date, including we included It’s was payment of the net semi-annual negatively flows in build component but bonuses early the CapEx quarter, commercial now a be change that million to gross first of we to well lower manufacturing items as throughout to $X over the the negatively quarterly million cash for an be ongoing This capacity the major by extending also of approximately a $X.X terms by million. million,

Scott Dreyer

of growth the into quarter first primary XXXX and The plans. focused of oxycodone in ER commercial down fueled through There of XX% within share exclusive unique Xtampza first over the saw prescriptions XXXX. XXX,XXX, quarter market new the first quarter, execution, by in Xtampza progression that new were In Nucynta represents XX% X,XXX growing payer were we We're Xtampza Xtampza IR. seasonality continues Paul. the achieved prescriptions is remainder over the quarter the for of new quarter formulary the decline over fourth fourth of time exclusive and XX,XXX We and Thanks, accelerated Xtampza total of growth XXXX. franchise performance first first high leadership wins due ER ER ER for this XX deductible writers Nucynta quarter over XXXX. the across is driver which of already quarter, ER eight branded a improved quarter prescriptions milestone oxycodone total XXXX delivered positions. first from wins resets The launch. the and significant ER quarter a This increase moderating of on fourth rate ER share on wins as significant see decline XX% January performance ER for in across XXX,XXX operational since first ER. X. the has exclusive XXX,XXX quarter for acceleration to an Nucynta strong copay went for and of to the reached effect from total the XX the all

wins. For X. the Xtampza effective regional West Xtampza XXX,XXX Mountain excited formulary payer ER ER the to announce of exclusive in make ER, Effective a significant release oxycodone Xtampza are removed and we extended oxycodone June has region the ER representing new on made Comp X, Ohio Workers and oxycodone formulary only ER OxyContin following July lives the will Bureau exclusive the

The back Collegium a performance committed by In turn number made leader our I by recent it viewed our market that favorably, team force of for is rated research, credibility, XXXX encouraged a we pain progress year will being HCPs responsible are is In favorability. is the to mission is we breakthrough highly and overall Xtampza portfolio accelerating that specialists. the quarter, our as differentiated for pain work management. we toward addition and in is one Joe. to quantitative knowledge, first now to ensuring sales in

Joe Ciaffoni

up will I it Scott. Thanks, for questions. open now

Operator

first Tim Instructions] with question William Blair. from Lugo [Operator comes Our

is now line open. Your

Tim Lugo

congratulations and for Thanks question strong the the results. on

levels in Whereas doing quickly pretty the significantly million some versus maybe QX at to talk doing for scripts, looking GTN math, Just is per $XX.X I number it during just -- weaker Can script my the back a price quarter. is am math stepping -- off? a quick the seems just inventory I or tends you QX. be about XXX,XXX like And thought quarter-over-quarter. or, some Xtampza of up

Paul Brannelly

question. Yes, Tim, so great

levels actually for inventory slightly all during So, the decreased products, roughly but for quarter were increased X about the days. Xtampza

of so. a had about stocking it negative XXX,XXX or So impact

our you revenue So Xtampza results of break you three sort about QX buckets. for increase down the in can that’s think if

of from during you if second growth prescription the was on QX. impactful the roughly it's to XX% most revenue net. of the in the the And all, improvement that, $X did million And quarter. math biggest about the impact of on then gross was First increase

Our was quarter be other our was discount, net for gross quarter than to and higher to it -- worst net any gross was happens year. to QX last

third the biggest had the decrease X.X% had of then, second in revenue. net biggest took on increase on we impact. the impact and gross January in So X, increase price And a the that

Tim Lugo

Okay, QX? flow something improving great. for some -- on of talking mentioned to commentary we the year gross as through Is QX you to should And net remainder the throughout that well.

Paul Brannelly

No, in for to assumptions the same remain our the year. we gross be expected for low XXs to net that the

we there in may some same lumpiness, as for be low-XXs the year for but Xtampza. So to the it quarter-to-quarter, remain XXXX, expect

Tim Lugo

great. expect or about do them throughout of relatively to here remain how day fluctuating you year, Okay, And inventory kind levels the there? or a stable

Paul Brannelly

year-end Yes, level, but trying it on Xtampza it the we this be is so call. there can what close manage fluctuation, to we're said to

So some to do But we've stock to Nucynta really also push seen QX. what Nucynta, with product. wholesalers at try the year-end we'll fluctuation there in manage

QX, days on we and that's -- And go the quarter. hand up in results then down this in so And what in up goes saw QX. it

Tim Lugo

And year. Okay, trend side spending of the to SG&A about remainder one the on then last through the question great. talk

Paul Brannelly

sure. Yeah,

operating is which the expenses So with increase expense. stock-based non-cash first said obviously compensation quarter was as largest a I

fees The driver driven was largest litigation. second professional by

and litigation it's amount is activity. predict inherently with to quarter-to-quarter So lumpy, of the hard

high this do QX lumpiness, end of be do last be year. And saw but we that. quarter think we expect QX as So the on there is shouldn't on year, any we will high-end of the

Tim Lugo

quarter. clarity for the All the all right, congratulations and on thanks well,

Paul Brannelly

lot. a thanks Great,

Operator

Our David Amsellem next Jaffray. from Piper question with comes

Your now open. line is

David Amsellem

Thanks.

a few. just So

we've your level challenging environment more culprit what's of the seasonality So just declines confident a various truly Nucynta able being seen that the franchise, grow terms mean, not and of at footprint these on to points. of the I guess in I the is product?

think it's Or you're about understand now is have doing And be specifics what So share, where of regarding of plans help products share, coming coming acceleration, exclusivity? drive can then share can could your it us help from traction you business talk level us taking primarily share Thanks. that confidence expense plans like secondly, that exclusive with you’re Oxymorphone these on stable? continue are and oxy? understand you to to from to you these gaining say you having what Xtampza to do you're already where of on you gain

Joe Ciaffoni

Sure.

off and So question David, the Nucynta start payer Scott. hand on this is to Joe. I'll then over perhaps

will payer we're to which conversion. of steady state. a squarely perspective these source shares off, marketplace said, proportionally of From OxyContin, from in there's a and of ER the disruption And XX%. XX% about think is where on it’s also the terms physicians conversion when Xtampza year bit at from the although of Once on bulk about then it's index its extended of drive of when steady state, of being switch the perspective, is terms get not typical from IR release looking First in our oxycodone. the early the switch oxycodone. in where the roughly replacing That Xtampza lot and patients use ER it, not a driven IR Xtampza with being new shifted the ER obviously in to perspective. hit we about focus products are ER growth through OxyContin prescriptions in that against other a IR positioning really an to from you of if we ER And we phase, off market of wins is higher ER

Nucynta. some when talk it’s the other oxycodone switch. OxyContin. from the use to Scott and source a besides will We can products release But ER about And extended oxycodone there's IR

Scott Dreyer

for David. the thanks question, Yes,

risen with in a is look back XX% deductible we give last you that over number that of Nucynta seasonality if And over high three the four to the specifically that commercial a is color dynamic in years, has fact see or a XXXX. the the patients more this franchise. So, plan little plan, are it to to

puts on it the So the happen, brand. copay pressure resets

of that the the year. slow through rate We grow of are absolutely Nucynta confident we new Nucynta the rest of here decline can and ER from IR

base. differentiated And some in intent favorably, one, in we Nucynta with There's and prescribe. X,XXX reasons have for the XX,XXX viewed Number that IR. Nucynta highly prescriber market are strong future for over products to straightforward. And are research, pretty prescribers quarter from a ER the XX%

So those drivers are goals. belief meet the that we our our can of

David Amsellem

plans. in still follow-up what states terms you exclusivity on plans? that's in Xtampza specify Okay, And if do regions helpful. to I on the sneak exclusivity of work what may just much or of in a gaining you the have Can regional where terms state and

Joe Ciaffoni

way on this David, think runway is I about have the is Medicare with Yes, the would we Xtampza. and focus in D commercial you Part that Joe. both When significant you that

at Medicare in lives position So were right of the those percent are we've D Part commercial increased that XX% to now an exclusive lives and in XX%. of

very we So teams XX strong availability we as strengthen with the assess our broad what what great and have and access the as move also able the we and as we’re we high a the into we for there will back to now. positions a as to positions, or after opportunity have season, push market brand in story exclusively feel are now success track share we’re not now can ER where different to being we being around that payers that’s entering of tell with we’re have to plans of record patient physician satisfaction where Xtampza the there are of contracting payers. interacting when working we you Obviously, have across go being imagine discussions and oxycodone lot to

David Amsellem

you. thank right, All

Joe Ciaffoni

David. Thanks,

Operator

Our SunTrust. next with Gregg comes from question Gilbert

open. now line Your is

Gregg Gilbert

share is go I about on your not My this in flip where is you a to are enable but then to you to ability position gain formulary, tended exclusive first one exclusive an afternoon. that on how terms? different few. Good have that’s to in

Joe Ciaffoni

Okay.

within market have shipped XXXX the availability. So notice beginning share this all effective the the we is of business. year exclusive, books of one when all that non-exclusive that a the an X contracted increase of that non-contracted across of Gregg, rise high see really saying coming broad added with in moving books for place of the the we’re we plans contracted XX taking conversion we At opportunity and in of on out focused improvement even growth you an where tide we January the have things year there’s business

wins making a And So we’ll hard that’s something March national had see in that team as have these we’re sure how that about oxycodone have or more the building out that from ER credibility and effective most in positions recently plays oxycodone XXXX. we Scott ER at we’re success able positions a really payers his to be strengthening availability. even perspective big on exclusively we’re focused with we’ve meeting are talking we broad had picture exclusive with engaging and where

Gregg Gilbert

in Great. that wholesaler can it was question Paul, have give us a it that? trend? Is I extension is one-off, the a context payment called about around you some the out, terms for

Paul Brannelly

one-off we again pay. a extra so a fee to to Yes, days to a lower them -- lower it’s pay give agreed

will basis three So of a we impact flow that, because as first of of think the equalize. forward instead on implement going but months it’s that two payments payments wholesale. is you about only quarter got go But months effectively from we cash in getting the forward when they

So an net. to that has impact gross ongoing to

Gregg Gilbert

have planning Okay. And do is already to there done? with others something or you’re

Paul Brannelly

to reasons. wouldn’t details So on I competitive get for into want that

Gregg Gilbert

portfolio context it the what for BD one current Chief Joe, for and last of around means Thanks. future addition a can And the is products? provide mean and one, you that some what Okay. versus Officer Medical

Joe Ciaffoni

our the with lead of a Chief to our Medical the science. with as line will products start pay utilize management, appreciate products to the treatment be I And data of we is publishing our that to or aspiration we with question. Officer how of ensuring is responsible the in a on statement Gregg, organization it really have leader I’ll better the starts inform mission portfolio and Yes, to in community general adding just the that the pain. we’re even aspired

second our the The is was made thing organization for a that strategy. Richard mid-term growth really key hire

in development across has importantly we track out of and an development spaces in actively all and then development stage are I building in pipelines programs successful my pursuing record extensive As said pain. comments, phase Richard

to addition our really for the it’s and lead do a our it to line terms bolstering in strategy really ability mid-term the is aspiring organization in of both science. with key So we’re to what

Gregg Gilbert

Thank you.

Operator

question from next comes Our with David Steinberg Jefferies.

Your line now open. is

David Steinberg

Thanks.

plans, it this on First thought I going in And if know year? a more at would last what's then, point in of investors looking of you D that versus plans to and on longer are didn't What they are participating start second second half? our it first on Medicare year, so, quite materialize. that strategic want Part thoughts half the your half item is to term, hat out And putting next. know some kicking

You early some need you're term to its Nucynta and a going longer a assets. to in clearly Xtampza but growth other product multiple still get mature higher have phase,

So, for are later licensing you looking internally? market or to more develop Thanks. any assets? in looking you assets Are products on stage

Joe Ciaffoni

question. Scott the back and you, with I'll and David. then I'll strategic Thank come let, Medicare answer

Scott Dreyer

Yes. Thanks, David.

exclusivity. seeing acceleration achieved Ds in across contributor all We're that So that growth. at has within a been have Ds when to you where share significant growth Part we quarter, the first look Part share market acceleration we've the the

And ER year. that of leadership. to achieved through the continue remainder expect already have we Some branded the

Joe Ciaffoni

the our is forward windows. growth through We're to strategy. in world two viewing Joe. strategy mid-term Dave, regards this our going And With

front window. non-opioid revenue product a us programs, potential window prescribed one novel a have one the as to that the we in XXXX. because late that that number ER II. for ER that's The programs opioid. solutions have is belief of In things early of And Xtampza particular. post we and have branded we're mechanisms generating stage prioritize mid-term, action, the Phase at bar, that's short-term with of become as runway that and the development in And pain that our looking high highest in We're window, will we looking be very one would first the the

window window, year compelled, that need would creative do thing looking to for anything is don't anchored are we in able either feel then the for the or So asset. high to We follow in and will the a to bars we an nor final did would value. We're we innovation be it, the And be that also differentiation. year. overpay short-term on

David Steinberg

Okay.

follow-up. two Just

some gave you Xtampza. two as also, among the those any of from know earlier at are up your the non-ADF or have thought you bit that experts to up products time, some train first year. opioids guidance a break And the break I of all company's the is revenue then going if going when the point Nucynta happen this only thought happen for to the Any pain you guidance, way will some in the safer. there's ADFs future? to there Is for then think FDA history to remove for on us it's and First, market the it's

Joe Ciaffoni

Okay.

will the comment perspective. on question David, Paul and take the then expert I'll pain So guidance

Paul Brannelly

the Yes. David, you're breakout on so Nucynta guidance or asking Xtampza? products for question, for

David Steinberg

couldn't give specific quite total hear but I guidance, can sorry, you product? guidance guess, you revenue by I gave I'm

Paul Brannelly

Yes.

and Nucynta. then have we Xtampza by given guidance So

on So Nucynta for it as million million. was to gave $XXX to the $XXX guidance we million call year-end million, our $XX reminder, $XXX a what was for franchise and Xtampza

David Steinberg

stand still those sets you And Okay. two by of numbers?

Paul Brannelly

Yes.

said we wouldn't we it So guidance on year basis. reaffirm gave a when we in that on or the quarterly call, year-end update --

David Steinberg

Okay.

Joe Ciaffoni

marketplace. wouldn't in of it specialist one the portfolio our positioned I view And of experts, then, they eyes and the I removed from view in very differentiated. the pain they or and space as position What things on products well is we Collegium favorable this in whether of feel We're a it not and from pain of that in is feedback very is not highly because on comment speculation. will the non-ADF around that speculate would terms be David, question

effectively feel We find who very add to suffering this is are strive Collegium step for strategy. marketplace also to patients taking to trying well positioned. continues portfolio to opioid with obviously balance a forward, portfolio epidemic. of to as the while our from think pain, to try the going potentially, regards do mid-term treating to what product we're the the in we And growth we're So

David Steinberg

Thank you. enough. Fair

Joe Ciaffoni

David. Thanks,

Operator

comes Serge Ballinger Needham. question with next from Our

Your line open. is

Unidentified Analyst

guys. Hey, is for is [ph] Bureau, the just X. guys a thanks, Tian Xtampza This over that June as they're had assuming on Ohio I far OxyContin as this the mentioned as of I'm taking you Serge. question, workman compensation population.

is far So to of you Xtampza market this impact you on do how other meaningful any to And Thanks. as sales? follow as footsteps? your kind the the expect states in

Joe Ciaffoni

of Thanks insurance the that It's Yes, workers in is state. for Ohio one of the plan that State comp in the Ohio Bureau number in State question, and of the that important is the provider comp of an Tan. workers Ohio.

comp a have don't win plan, to follow it's what other there. other I for regional I insight happy Ohio So any nice But will us. workman's do with or the have to can't states And opportunity we're Bureau. comment on

Unidentified Analyst

Got it, you. thank

Operator

Our Instructions] from question [Operator Esther comes with Janney. Hong next

Your now line open. is

Esther Hong

thanks. Hi,

it patent? if provide an on ongoing? can proceedings patent on both And So court Xtampza? details Xtampza district newly up, then P-tab protects over your any there's it can Thanks. you as further any parallel like that you how issued are a provide in And litigation with follow update, looks Purdue,

Joe Ciaffoni

patent, as to pertains it's second that goes it I book to just that. no it out have this on to you Yes, the a So manufacturing the the quarter Esther, to in at with updates to time. your with XX-Q the to and regards orange point added refer provide question patent Joe, regard material And this we XXXX. in was is would Purdue, litigation it with to patent, first

Esther Hong

you. Thank

Operator

question next Kedra Kevin comes Our G. Research. from with

Your open. now line is

Kevin Kedra

questions. for thanks the taking Hi,

a First, prices better place the industry and looking has as I is role the want any across the payers? lawsuits there discussions these have that lack feathered to for the quite lately, any a the big in But ask payers, Does is given responsible player of issue. competitor displace about discussion against significantly, that with given you're the media been them. tarred discussions all your in for obviously, phrase in the in as you're with role that to

Joe Ciaffoni

Kevin, we're most to the is what that a Yes, what with Xtampza this Joe. aspect their talk DETERx to them matters decision, to about we and sure important, payers is question. belief a and excited have one ER, label. is talk payers, make make really when price to in with really I When appreciate technology. in belief And although we differentiated the want they in science and that that Xtampza, that around them

the and leader a management, pertains both Collegium, make think something to be like people pain, in as pain aspire thing second are as we trying suffering I resonates difference from us responsible to also that's as payers the for that the because a it to opioid epidemic.

third opportunity. make about a success being key Collegium. exclusive about really is with is understand sure XX able the talk to that And thing that So that's had that part now that the oxycodone then them to discussion something we want of they really certainly we've to ER

to our So is science on focus we're it that and our trying is do. what Collegium,

Kevin Kedra

I litigation. Oklahoma. first showing really kick this into you the yourself just the that up decades where here on in also on And May some know litigation liability of you positioned there in mean, of case of going been drawn kind side, helpful. have relative strict you very -- up. start litigation couple periphery guys the trials but been we're under a the years that's potential is going little start to How really as as to any And kind that’s where a of far for into you area this your you you pick of to is guys here still you I as rush that. been of October, a then Okay, Can for kind some kind FDA regulations. bit multi-district MDL gear refresh these us seeing is into here, have seeing is see we expenses industry see impact in in only the in

Joe Ciaffoni

and one the that Yes, Kevin, question. I’ll take this appreciate is Joe.

to But being it to things we’ll deal leader talked organization and we’re and that achieve continuing ensure in pertain certainly different we’re with as we as and pain the it positioning of the Paul So as investments the it of new in our part eight pertains cost in of been to as responsible our management that Collegium is not Oklahoma information in And I’ll of mission the an we our have out what that’s cases. be as -- into on earlier of associated claiming, some a that and a of and do you of litigation dismissed and kind the first. part engage the one have make this in to compliance cases go all our to litigation going from we’ve We been we focused we with what’s bellwether and we’re that that dismissed those around we’re referenced were the nine we today any of MDL states in litigation by the Ohio something today it’s not to is marketplace. what and the worthy industry. the trying of are as Arkansas. organization Number of and in of have as striving from as nature

Kevin Kedra

sort pain. that And one maybe the technologies kind used on be mid-term business opioids, of mentioned on could non-traditional development also or that side look maybe even of you of in the looking are pharmaceutical at in other new or the outside technologies device at you one last substances looking mechanisms you’re space

Joe Ciaffoni

Joe. So this is Kevin,

mid-term As we differentiated executing trying capabilities strategy us from that our companies. to strategic and believe part the of and we’re leverage organizational against the make other review we’re strengths

office relevant us to specialist leverage commercial able the with to to the perspective from have the that pharmaceutical capability program. pain along development bring expertise able before a products space a focused where we’re for to So later be that we’ll stage we development in

Kevin Kedra

Thanks.

Operator

And Brandon Folkes from our Fitzgerald. with next question comes Cantor

now Your line open. is

Brandon Folkes

questions thanks good Hi, for the on really quarter. congratulations my taking and

think a be a lower we of the of the on strength should talked ER still call of bias in comes a to XQ mentioned we’ve I IR lot Just strength switches of higher lot forward? about is Xtampza drilling strength, cost you a that growth net the from assume how business given more switches? but a on towards bolus going gross concentrated dose it Do down expect price net there just bit the growth the is know into normally about that which I’d four patients to you of give to

Joe Ciaffoni

Yes, business. so last year, see did a in we the base first quarter of it’s of didn’t growth but bigger strengths to on this we higher year like the

decrease then So don’t that’s second that have year higher we as later that see we third which to year then we the that doses did the those with don’t think with last started to strength thing grow where in a base of average because I the bigger of good as prescription switches, reversible sort continue quarter. even already impactful in it’s while we the the the that prescription and

year this So me for that’s a so perspective more net it net we from to gross flat stayed encouraging predictable. makes and revenue relatively flat

Brandon Folkes

me, I from the Humana the maybe past could you And XXXX? exceptions just the saw exceptions from just us there party in think help the in much. know magnitude you. Optum, that about the granted of and party XQ the that in help quarter benefits XXXX is had also and maybe I from to think just net exceptions very XXXX talked in more Thank potential you us you one XQ in benefits XXXX characterize a thank you Okay, this

Scott Dreyer

that Yes, Brandon, is for Scott. thanks this

absolutely And of in to the the big D acceleration a rest and of share So year that in the you was across those expect saw we the what referenced Ds. mentioned, all those in contributor growth through the all just Part the first acceleration plans. we saw was see continued quarter that acceleration Part of we

Brandon Folkes

very thank you Okay, much.

Joe Ciaffoni

Brandon. Thanks,

Operator

questions. I'm I'd this At showing time, further call closing for any Ciaffoni back to to like no turn the Joe remarks. over

Joe Ciaffoni

joining thank Thanks. for Once this you again, afternoon. us

pain to We encouraged performance evening. on the first great XXXX and a a are look making forward year. to and that by We Have Pharmaceutical responsible become breakthrough our believe progress. management. quarter to well in positioned the our committed Collegium We leader you updating is

Operator

thank you today's in for your conference. does the program. gentlemen, Ladies This participation and conclude

great You may Everyone now disconnect. day. have a

Collegium Pharmaceutical (COLL) 8 May 192019 Q1 Earnings call transcript