COLL - Earnings call transcript Q4 2019 | Collegium Pharmaceutical, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen and thank you for standing by and welcome to the Fourth Quarter 2019 Collegium Pharmaceutical Earnings Conference Call.

At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] And please be advised that today's conference is being recorded. [Operator Instructions]

the Head to of hand today first now Dasalla, Alex Investor will conference your over speaker I Relations.

Alex Dasalla

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

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

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

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

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

release press on reconciliations non-GAAP our our at relevant find including collegiumpharma.com. website can earnings You corporate

CEO, to call the Collegium's I over turn Ciaffoni. will now Joe

Joe Ciaffoni

to management. ranked of of targeted for market Pharmaceutical the made to significant views the important the make the providers, practices, continue made XXXX We in to leader brand, of Collegium pain responsible and responsible as a our you, becoming in only afternoon people, in providers Thank fall portfolio. team. significant you programs Based Collegium healthcare quantitative healthcare and In great and processes, call. strides to testament Alex. professionalism in Good off Collegium Pharmaceutical. pain management, was most and our Pfizer our our of organization, XXXX, with conducted We thank pain and second joining research a take quality will pride leader spring and toward investments everyone, business in strengthen

XXXX X% growth increasing million revenue $XXX.X exclusive nearly predominantly million X total million net in versus $XXX.X of accomplishments XXXX, prescriptions the already increase; ER include: XXXX; XX% of million X% XX% up X, adjusted up respectively to lives effective non-GAAP of XXX,XXX, revenue executive that the strengthening full-year franchise with with million play and the XX% mid-term strategy. the Development. to Bart representing and appointments for income of of Vice team Corporate Executive a Dr. total XXX,XXX, and net $XXX.X key of and President, and XXXX; generating growing $XXX oxycodone over prescriptions, full-year ER prescriptions decline Both delivering portfolio Key XX Malamut Nucynta cover million execution of ER's of in to adding Medical consecutive XXXX; Officer Orange wins the net Dunn will versus and in a X% with Xtampza versus patent achieving a XXXX; three addition Xtampza Strategy January revenue portfolio respectively formulary Chief XXth patent; enhancing roles Book-listed strong commercial roles our and versus quarters; Richard

XXXX management. in Collegium pain responsible at the leader to their my recognize colleagues as to Collegium their commitment and for thank want establishing them on I many accomplishments in

growth Collegium has of will be adjusted range income business $XXX we $XXX strong acquisition for flexibility organization. to and expect pursue Along financial in Collegium. US strong The Looking full-year XXXX beginning event and of a financial the ahead, is continued franchise the start our profitable financially be Collegium XXXX ER transformative million. QX Xtampza to is the transformative and off discipline, non-GAAP Nucynta rights development year to with Pharmaceutical a the a million future will in for transactions. to

Xtampza Tapentadol is poised and we driver later contributor an line committed the on a franchise market ER in its is Collegium's of XXXX. meaningfully are franchise. of to growth we is through for molecule than Collegium's that is Xtampza and maximizing to will differentiated believe bottom growth be is accelerated potential phase Nucynta a next path beyond. Nucynta highest mid-XXXX. leadership, the XXXX priority important and no ER and The to

are market ER moderate Nucynta to access surveillance accelerate leadership; structure; XXXX; three execute the programs invest and years; management. accelerate the for to execute next responsible and claims-based portfolio -- enable Collegium in our and the product strategy; revenue Xtampza data Collegium's following: the franchise portfolio; processes in our mid-term actions portfolio transactions our following: leverage, the not disseminate of for and in real-world XXXX XXXX it priorities stability sequential generate COGS people, to to beginning decline aligned path leader growth secure priorities market initiate grow take in strategy; our Our our become and reduce to pain to are plan its over the position cost development business in

right on the by a was for progress acquisition of the to updating development business transformative you franchise, our in Xtampza have confident Nucynta a happen. financial ER pain importantly leader place in made forward Collegium and responsible to XXXX becoming be management. it year look organization. significant which the growth, toward Pharmaceutical XXXX XXXX. the we I transactions, discipline, Led throughout year and more plan, in I'm make that progress will people the

Paul to hand of the now the I discussion will over financials. for a call

Paul Brannelly

current everyone. by million of XXXX and $XXX revenue our an the guidance end year of Collegium. infrastructure, Xtampza of Good a which strong $XX XXXX, million for was to This $XXX XX% our range was high Joe. Xtampza is ER XXXX. revenue ER net leveraging Driven was in at from growth million. Thanks, increase afternoon,

ER which The is XX% a was in XXXX. in from XX.X% $XX.X quarter, QX XX.X% to XXXX. to XXXX compared Xtampza million, the discount fourth Xtampza increased For for ER increase revenue gross-to-net

XX% a ER of XXXX. formulary the range in we As new low wins, in discount result oxycodone to gross-to-net expect the exclusive be

$XXX.X Nucynta of approximately decrease lower decrease million in XXXX. in inventory by in days. volume a driven of net was which Nucynta wholesaler is The as XXXX, reduction a X% prescription well revenue from was XX revenue as

expect guidance $XXX.X a to million low year We our this the product finishing excluding manage to wholesaler the were Operating for future. at $XXX of expenses, for cost revenues, million XXXX, of near versus XXXX. X% $XXX the end XXXX range foreseeable improvement inventory and level of million

expense of XXXX, the was expense loss of $X.X net quarter million, approximately stock-based which of amortization to and intangible million asset. fourth compensation the $X.X includes Nucynta related our $X For million

Our today XXXX. non-GAAP quarter GAAP for adjusted a press our income issued results. earlier the million non-GAAP of to was of reconciliation release for see $X.X fourth Please

As increase $XX.X XX, XX, our from from $XX.X a balance $XXX of December XXXX. September December XXXX, million XX and balance million which is cash was our a million, increase

the which X. This we transformative cash profitability On for was we a Today infrastructure. announced on initially US we transaction Collegium our February while will financially X, expect significantly that the Nucynta our current the prior operating are guidance, and January confirming to leveraging franchise. our acquisition flows, is provided of rights increase

million Nucynta million For to of million, the XXXX, $XXX and in operating ER $XXX range million. we million the range expect range Xtampza in of revenue total of in franchise $XXX to to $XXX revenues $XXX expenses the $XXX million

amortization prior non-cash to XXXX non-cash million guidance, with compensation, addition in to prior adjusted In of stock-based non-GAAP Nucynta asset. expect range $XXX the exclude Consistent our and practice, interest of intangible income we will non-GAAP adjusted million. $XXX our income the

update. commercial I hand for the will now to call a Scott over

Scott Dreyer

ER of for new In of momentum prescriptions market over growth its achieved Thanks, in Paul. next lives, total phase impacting Xtampza versus exclusive the highs oxycodone accelerated finished all-time in and XXXX. to as Xtampza positioned half XXXX. result XX.X% XX total up prescriptions for of the a formulary the first fourth XXXX XXX,XXX, quarter. with of is commercial fourth predominantly share a grew quarter ER wins ER and quarter, million XX

In X were the fourth XX% of unique from Xtampza oxycodone an the the XXXX a XXXX. up there quarter, quarter ER of exited Xtampza market, points versus XX% XX,XXX of with December of percentage share increase XXXX. fourth ER, ER prescribers

quarter. the XX Xtampza our XX% grew ER's Based off to prescriber fourth in oxycodone in market intend X.X. exclusive. increased oxycodone Xtampza of a X months total providers the the prescribed ER of conducted XX market less more quarter, prescribe accounts XX% of the that it average high of Xtampza to fourth fall the ended XX XXXX prescriptions ER the ER quantitative in prescribe to of to was over prescriber intend the targeted accounts research quarter Importantly, to of the share healthcare the OxyContin. every accounts, which XXXX, XX% next increased compared In in productivity new of ER Within Number XXXX. per market base as exclusive in

the prescriptions consecutive share to stable in prescription decline sequential ER quarter, of were the share Nucynta the X%, of new-to-brand XXXX, fourth In Nucynta quarter. highest and XXX,XXX total was fourth its representing in franchise grew total quarter XXXX level for X%. third a

grow of place market and lives and the for for Xtampza as exclusive oxycodone new market Xtampza exclusive is D lives. X, the commercial access The are Nucynta commercial approximately strength XX Part XX% Xtampza our XX% XXXX, In of position franchise. and ER D has breadth covered with the ER is Xtampza terms commercial and And OxyContin both in access. priorities XX% broad are being Xtampza Part that strong ER in surpassed ER with clear, for of formulary lives. covered ER moderate position of and of decline ER of January of

on Xtampza exclusive formulary broad Our half XXXX ER's January access. which effect primary pulling through XX into ER of focus aggressively went be X, be of XX pulling through Xtampza overall for XXXX. positions, oxycodone on market the will we'll first Concurrently, ER's

new-to-brand in seen oxycodone share. ER ER on volume in Xtampza Early and strong we've XXXX, market growth

week share ER's oxycodone by week January ER ER XX% Xtampza month Xtampza was market last of of grew of ER XXXX. from X% December XX, the New-to-brand for share up market January, the XX% the TRx the XX%. ending In to oxycodone

have recognize early do. we are encouraged work indicators, We that these of by to lot a but

molecule is indicated branded opioid differentiated our only for targeted relative the healthcare Tapentadol to extended-release a pain all and with other favorably view that peripheral as diabetic opioids associated ER Nucynta providers neuropathy. is ER

prescriptions total we the the will Nucynta Although we be to aspire XXXX, in franchise pressured. anticipate grow

Our access awareness be on driving market brand position. and pulling Nucynta's through focus will broad

to XXXX as you look year the progress to year on transformative Collegium. is be progresses. for updating going I our a forward

turn I'll With to that, Joe. call the back

Joe Ciaffoni

now Thanks, up for will Scott. I open questions. the call

Operator

David you. first with Instructions] Sandler. Thank go is ahead. question Piper [Operator Amsellem from Our Please

Zach Sachar

just my Hi, for you have This a on couple question. I taking Thank David. is everyone. for on Xtampza. Zack

or patients. exclusive position Xtampza to physicians that all. in extent the too non-exclusive where is for mentioned prescribing behavior that front? be past commercial What you drive not non-covered efforts access drive that'd adoption And do more will product in and And at to are largely what in D great. this focus drive switching to also, contracted in drives on the transition you. could is for that the Thank for your although on you've the contracted to end plans, and XXXX population? volumes Medicare natural if broad making to So, Part a expect And you on their additional touch be you extent

Joe Ciaffoni

Great, of I'll going over the I'm take the to then, And Okay. This Joe, question first phase. to your is Zach. second hand Scott. part

Scott Dreyer

thanks question, Zach. the Yeah, for

those and in efforts exclusives, non-exclusive doing business at look oxycodone grow the you what see the few over to this ER of When Xtampza those the points to that when year We we establish look a the our and exactly last year. choice. of expect books is in we business, to Joe? rest do So there as at share progressed OxyContin we're other growth. segments, disrupt are see we as we through move share what continue have we of

Joe Ciaffoni

we to pertains have taking covered move three-month as position when our to emphasize XXXX. a after in of Zach, The we we wins it's payers exclusive right as is may what conversion it access effect of we as XX% we and an now, with market then, that for, the period access to about position. period additional as engage typically a we lives new think start strive And is, forward, four-month we exclusive do, for

or when achieving second we'll we'll of be terms into where the of So, move D our how focused, in or commercial wins in then Medicare set year we'll of be whether see is striving and it goes the the XXXX. achieve quarter, Part sights it in exclusive new to beginning for we terms

Operator

Thank you.

question Please David next with Our from comes Jefferies. go Steinberg ahead.

David Steinberg

three questions. have I thanks. Okay,

shape and cadence the this curve to Rx relates of one first the The year.

of couple quarters. last relate trajectory the in and how is to related fairly in soon. the the couple the the is, thing the expectations second would wins, fitting and to exclusive I with really particularly does strong imagine had years, you first that in second of possibility going announced occur How half What's to confidence the there shape And guess I occurring last script curve? that cadence, if So, your the to current and if of a mentioned level the they be of them, trajectory that first those year was they the get off-cycle years? in the some you're for how it have is, your

this range And an we Nucynta, gross the that you you opportunity mentioned to the transfer, you margin. where sort And years. expansion substantially think XXX% gross of at of when oxycodone XX% margin that rights think you Thanks. second year do bought occur? you to improve in about could of the go is question the next might do I when the exited and is there then back of ER, could share with tech What think couple finally, share expect

Joe Ciaffoni

you, on question to Rx first the Joe. over David. Scott. to This Thank I'm Okay. pass the going is curve

Scott Dreyer

David. Thanks, Yeah.

assessment the right. when and as acceleration over of most time couple here, is If convert and three to early thing year, at market right period, of XX% we're gate encouraged. said, month the look January. full the Joe first four plants of we're to we the performance by XX% weeks we movement in early TRxs as seen first of is yeah, in So, a these the our We've new-to-brand look from the share encouraged what out comes

to uptake over We're three the So continuing by at monitoring looking we're that encouraged closely. period. but that, the four full month be to we'll time

Joe Ciaffoni

and know would to continue for Those with I payers occur, they with several great. half Okay, to say or discussions upon exclusive the never have Xtampza From of what positions either they will we to off-cycle off-cycle be potential precisely is, on would to wins. be a perhaps it as implemented, back David, parity it wins, an curve we when be the the potentially could ER. could depending impact the if but wins, they negotiations for when And timing perspective, occur, to key regards in were pertains year.

we those the would achieve wins that we is Our commitment is material anything if that to communicate marketplace.

value the on there's I we're over the to the want to of the supply to focus thing COGS, a is three-year And pertains in emphasize the As across opportunity what post we regards is to it we it portfolio level of really do the think one We Nucynta transaction overlap about our COGS, of to when drivers one to chain. thought because there with at transaction our talk was timing. decision addition improve an great was a it COGS, looking period. at lot

Fisher, Ohio, an where which for where So represents also to Thermo chain opportunity with cost parts manufacture transfer improve along Xtampza. that be other goods we'll from to of in with line is we the that the is tech there moving think of supply Nucynta overlap. We the us J&J, our of Cincinnati,

What With regards we given in we've prescribed become final share, will as is market than that, guidance from XXXX. of terms know, Xtampza a do never to X are beyond in share Number peak extended-release perspective. oxycodone give think we and how in a no we ER question your guided don't, confident market later year, that you the of

Operator

Thank you.

& Our comes with from next Needham Belanger Company. question Serge

Serge Belanger

of couple for Hi, good afternoon. A questions me.

following additional ER? think And Part existing plans on it IR at an forced in start talked of a initial from with patients you've talk having up switching script growth to the driving plan? I conversion just capture year. at the D of past every the David's patients is the about Are about I update these Is you the on start first one first year? in Medicare maybe opportunity The the Can wanted question. what that. an to

other Nucynta. the on is question then And

could year. taken? You decrease then be and just year, on taking about moderating the potential actions what Can actions talked elaborate this you next

Joe Ciaffoni

Yeah.

take to With early come is Serge. the about is which year, the in we question, Scott regards -- Nucynta. D and back talk then its to see a what curve great Serge, driver of and regards question off Part So I'll the conversion, typical. With

bolus state very ER to IR growth position physician this is necessary. steady When this conversion. see months talk Xtampza go for becomes when deems steady to is there IR at four to wins from a that will that the of the to conversion little in what up extended-release patients majority exclusive about ER the grow we at product, ER key of contributor can So that then but switching a also occurs hits marketplace. ER period, it's the that post marketplace, state D. The is Scott transitioning ER months Part three we is first Medicare the switching, and to to market an

Scott Dreyer

Yeah, Serge. the thanks for question,

early across right all look gates regional our XX when gates on new And share as We're you so of across were we seeing growth exclusive D our ER them. we're Part wins Joe? of oxycodone in well. growth the So continued of remember, those if plans, the Part of of at coming here D out out progression, year, we all the Ds. seeing announced Part

Joe Ciaffoni

Company. we of a in. molecule as XXXX, this Nucynta We experience mission we have it. move years with now would emphasize the one, to to aligned the regards deeply with believe Serge, It's two And, beyond I is of

my relative comment revenue we think Nucynta into as we from beyond, can move and on And We was, XXXX will commercial achieve good move then, stability. execution as overall we So we we franchise. our into year a this anticipate handle have a the improve. really perspective

rates with one move liked we that either be expire discount we'll potentially that from the those we of us away also a to be of sense to in the case at begin a things contracts, this XXXX, positions perspective opportunity associated working to do improve new which believe an rates is to that secure timing about. access to from for franchise. we lot our Now we them in the some and focus makes This transaction implementing inherited contracts will gives XXXX,

line that would from top be perspective. So a

-- perspective the or an We and again, the years, improve timing a us will margin. over potentially opportunity COGS the of gross from will next we think to of tech cost transfer goods few give

opportunity perspective, a from data We we'll performed. lot executing claims-based supplement to a that the years is the XX of really bring be it experience publication have molecule attention how utilization has that this to an and of

initiating moderate we be a but a prescription a comprehensive on to to year of beginning relative So also revenue to have put stability that we'll being will that get we able us think in in sequential this approach position XXXX. basis decline,

Serge Belanger

Okay.

IQVIA the in Probably squeeze me scripts data accurately Xtampza Is for Let Nucynta? and one Symphony capturing and more. for Scott. both

Scott Dreyer

question, for Yeah, thanks the Serge.

So, believe just accurately yes, a projected. is its and more reminder, we the as capturing weekly data

the but when sometimes with correct. you fluctuates week, month, add up it's So the

Operator

Thank you.

of Our line Lugo next William the Blair. Tim comes with from question

Tim Lugo

the question on congratulations and major Thanks the for then milestones the Company. profitability of and the

the and do and when tends also linked can are NOLs, so can talk a you can QX with expect the profitabilities related you quarters QX that year? kind the you on bit line for line, top It on you the about I pay the about cadence and profitability Regarding top to to of throughout you taxes? to also a strong just talk, for then be profitability, of the -- bit talk industry, guess,

Joe Ciaffoni

Yes.

is, clarify and cadence heard profitability, the please a a it in phone your out Tim, I what's I what was there. lot believe I but there, terms in for if get of wrong So, and question going

Tim Lugo

Yeah.

Joe Ciaffoni

just control, we're we And down similar have building, net, under trend leveraging, can to believe There where is so, to not through or up we during fashion. prior operating similar we're lumpy. not the Gross lumpy the year. trend a but a year. they years, It's expenses be

year, As gross through the stay year. a to don't bit number we to expect one net little throughout at lumpy is the it

then is for that Xtampza predictable Nucynta. So revenue, driver of profitability the so modeling expect in growth is you and more what main revenue

those key think I So there. points are the

Tim Lugo

you Thanks. Thank for that.

the over? about and bit will a talk sorry roll when And Can NOL taxes connection. you your tax about rate and

Joe Ciaffoni

Yes.

that's So certainly something are important get we as here lot to profitability. becoming taxes a more

in million losses, $XXX about NOLs available. net have we So operating federal

XXX a completed have We study.

there So there be some limitations is was limitation our XXX NOLs. additional what in XX-K on information on that just the may filed,

Tim Lugo

much. Okay, very thank you

Operator

you. [Operator Our from question Instructions] Thank Brandon with Cantor Folkes Fitzgerald. next is

Brandon Folkes

thanks for Hi, taking my questions.

ER you should of Part the exclusive Xtampza? about exiting commercial of sort Given around just should and pulls XXXX lives, the Could some share of in covered of that for think D that, have that range we with getting oxycodone is pushes market of kind think about? of XX% you for you that maybe you. elaborate to Thank we and terms

Joe Ciaffoni

so, This share the interesting very That's from we XX% would lives emphasize is Xtampza. What NBRx I I asked. would year think know to to market seeing you an Yeah, strong of you we're the market XX% that as don't Brandon. that for of start is perspective. a growth question Joe. share an it to correlate

Of thing the XXXX forward-looking of and measure brand perspective we're the share the product gap a progression by your from become of X our seeing is that, at we in Number health NBRx with will that Xtampza ER confident TRx. the of share your total are And the market. is prescription the course, greatest to latest

Brandon Folkes

Thank Great. you.

Joe Ciaffoni

Okay.

Operator

his Thank remarks. to this for to I Q&A today. call Ciaffoni, session like you. for final Joe would concludes CEO, And our back turn the

Joe Ciaffoni

good the In as and year made Collegium you. evening. year for becoming I the making management. focused forward to you responsible updates progress look toward Thank on in progresses. Have a Company. well-positioned XXXX we XXXX, pain meaningful the a leader providing is transformative

Operator

today's gentlemen, participating. you and Thank call. this for ladies conference And concludes

now may disconnect. You

Collegium Pharmaceutical (COLL) 27 Feb 202019 Q4 Earnings call transcript