COLL - Earnings call transcript Q1 2020 | Collegium Pharmaceutical, Inc.

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Operator

Thank you and welcome to the Collegium Pharmaceutical, Inc Earnings Conference Call. I would now like to hand the conference to Ms. Alex Dasalla.

You may begin.

Alex Dasalla

Welcome to Collegium Pharmaceuticals First Quarter 2020 Earnings Conference Call. Head Relations Dasalla, Collegium. Alex is of for Investor This Chief our by Officer; Officer; I our today Ciaffoni, and Officer. Chief Dreyer, Financial am joined Chief Joe Executive our Paul Scott Commercial Brannelly,

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

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

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

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

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

Joe Ciaffoni

acknowledging situation thank and challenging many afternoon want for by so joining start everyone created Good you Alex. you, Thank COVID-XX the people. pandemic for I to the has us.

everyone has impacted. go to out thoughts hearts who and Our been

Boston Cares the poverty including organization is which Life COVID-XX a focused employer Science non-profit Greater made $XXX,XXX Cares area. Fund, in in was Pharmaceutical on match to $XX,XXX, our donation Life Collegium eliminating the neighborhoods of April, Science program. the our impact In raised a through Response

to committed a in are responsible acting socially manner. We

working remotely had healthy their to to been people since by able our fast inspired amazed has am been organization, have adapt I families and and to are their resolve. pandemic XX. impacts the I and our been Turning report have the how on team has pleased that our March by

Our advancing all business home and office seamless manner activities. transitioned a team is in essential

are teams interactions ways chain quality we are any the too. supply the to do Due importantly, partners, week technology leveraging of issues our customer in to quantity each efforts the market. and of of anticipate improve those field-based manufacturing supply Collegium's increase team finding interactions to the not disruption or to ability and our

to broad transformative confident and track on be are our a Pharmaceutical. year for priorities Collegium achieve remain We XXXX will that

our progress quarter, the made significant broad first In each versus we of priorities.

Specifically, Xtampza by accelerated million lives ER exclusive January, due total driven immediately that brand on new prescription to total January formulary wins, in representing share oxycodone effect prescriptions ER X. XX and took market

growing COVID-XX. remain quarter, later to In than extended fastest impacted began being of was first that by the ER market will growth the the be the confident XXXX. opioid see late trajectory we Xtampza ER we and Xtampza it In release leader, no February,

to Moving grow, moderated to continue due a expect at forward, to rate we COVID-XX. ER but Xtampza

we franchise, QX slow declines rate saw Nucynta the QX the versus 'XX to Moving 'XX. of in

the expect we under office franchise, is control. as Nucynta pain the patients the disruption that in whose mature be less a is seeing to we're As impacted signs by visits COVID-XX market leading for of to in-person care continuity

not grow our We are structure. our in unrelenting cost commitment leverage, to

financial of strategy. We later COVID-XX it business completing the We remain in impact transaction of be pertains our key of a COVID-XX positive The impact believe of are stages From to transaction. of engaged solutions active neutral to development pain that apparent. non-opioid in benefits was and favorable Nucynta is of as growth a XXXX. pursuit the in The will component development. mid-term the our are that of expenditures, the operating perspective of acquisition franchise

Collegium XXXX. throughout Pharmaceutical the was and in profitable quarter increasingly first be will profitable

pay expect difference in also thank in my of recognize like people suffering the would our pain for lives I colleagues and positive to at from to to and down their communities. debt. accumulate and a commitment cash making We Collegium Pharmaceutical

most track of a to I the will organization financials. hand over XXXX Paul testament to people. and admire in product uniquely I financial focused face strength during to is of transformative year. their management. unprecedented this to propel This challenges, now Pharmaceuticals pain the all, Collegium of a responsible a make positioned ability stay quest our and call on to in pandemic the our portfolio, the forward become our for is discussion the leader and In

Paul Brannelly

Good Nucynta franchise afternoon, U.S. be financially the that by we discipline, ER the to year growth, XXXX Joe. everyone. the and for Xtampza will rights a Driven confident of Thanks, financial transformative are Collegium. continued acquisition

increase and We expect cash to flow. significantly our profitability operating

$XX.X increase from to for of The Xtampza revenue the million discount was million, of XXXX quarter. year-end revenue the quarter XXXX. ER of the of was the XXXX. stable is increase for which an gross product net and Days from levels. Xtampza XX% Total of XX% was $XX.X on for quarter an Xtampza first from remains first quarter hand fourth for ER ER XX%

be may to throughout is XXXX. for on and be the discussed prior the expected range to As the calls, lumpy gross in low-XX% discount net year

of The and days. the Nucynta revenue the a revenue of driven was from XXXX. inventory decrease decrease XXXX, by million Nucynta wholesaler of first partially fourth quarter quarter decrease X% the was a approximately from a is in X% of of which reduction for in X.X quarter first $XX XXXX of

first Nucynta the includes our sub With statement and presentation updated we updated the The totals profit during XXXX, gross expenses. operating for the of presentation. income acquisition quarter have franchise of

would require is according paid previous include guidance has been updated to exclude in this Additionally, though rules amortization presentation income to for in us the XXXX, Nucynta eliminated disclosed intangible an the have owed agreement adjustment consideration franchise separately accounting royalties been believe million $XX.X usability the Nucynta asset Non-GAAP Even other will sales COGS. in the adjusted we of Commercialization this Nucynta adjustment. Assertio of to for statement provide. to financial royalty of from that royalties Nucynta provide purchase better We Agreement. adjusted that COGS income

were first the million of the first which for a from quarter expenses decrease quarter XXXX, of XXXX. $XX.X is X% Operating

stock-based GAAP compensation, X%. decreased by first of expenses Excluding we operating million impact Despite in XXXX. accounting profitable $XX.X adjustment, a the quarter the royalty Nucynta the on of were basis

of income was $X.X GAAP to GAAP net year for Our net million loss quarter. compared prior the $XXX,XXX a

adjusted of the for $X.X $XX.X Our first adjusted quarter was loss a for prior the non-GAAP non-GAAP XXXX million quarter. income to million compared of year

was XXXX, million $XX.X million, our decrease which is XXXX balance balance. $XXX.X December XX, As of March a from our XX, cash

quarter debt franchise, first the and acquisition included of of of repayment old million The Nucynta. venture the cash $XX a Nucynta in the million of used $XX.X our facility cash in outflows purchase to related the including

remainder we $XX.X flow expect cash significant generate year of and while XXXX, million term million to the notes. of to $XXX For with quarterly expect at least our repaying cash the end in

of our one of potential understanding COVID-XX, quarter XXXX guidance we are better and behind a updating XXXX. us, With the for of impact

million. $XXX guidance of guidance of ER to $XXX to reducing $XXX our to million $XXX range Xtampza from prior million We revenue our a million are

are $XXX range $XXX reaffirming to revenue in our of for million Nucynta the million. We the prior franchise guidance

$XXX total to operating note of our $XXX stock-based $XXX our guidance reducing million our million prior $XXX from expense expense compensation that million range prior million includes $XX range to to are We Please million. to operating the guidance $XXX a we million. are guidance guidance from expense to $XXX $XXX income also adjusted of non-GAAP million. And to of of approximately our million tightening guidance million our $XXX of

strong in I the changing will transformative that Scott us without to XXXX a over now be realities the to adapt to Collegium a is update. our allows financial hand COVID-XX the year. fortunate commercial for a making position of of pandemic financially expectation call to

Scott Dreyer

in Thanks, to achieved ER Paul. formulary of new prescriptions the market ER XXX,XXX, growth Xtampza XXXX quarter XXXX. and to In and first this for versus total total February, all-time trajectory. quarter, XX Xtampza total grew versus on XX% share, up prescriber. began impact by and highs we In accelerated prescribers see oxycodone of first quarter ER fourth Despite prescriptions, total the new-to-brand the total the January. prescriptions late XX.X% per wins, of COVID-XX impact, the exclusive Fueled immediately

ER market was the in end quarter, the from XX.X% prescription X.X% Xtampza up of share total XXXX. first OER

were New-to-brand There prescribers OER first quarter, from versus market share the Xtampza XXXX. accelerated the in up XX,XXX to XX.X% XX.X%. unique in first of first the of increase quarter, XX% quarter of an

per new prescriptions of base the total Importantly, X.X. a high to to the prescriber average the productivity increased improve continued and prescriber of

XX exclusive of X. and March, oxycodone saw XX across December. acceleration new grew market of into up XX% performance effect market to all January Part every a exclusive on went that baseline D accounts We share XX% ER XX all the one from share across strong share Aggregate and within commercial in in accounts exclusive

continued We market expect accounts. share within growth exclusive

ER with XXXX Xtampza a point, share OER to reference exited a XX% exclusive accounts were X. within that January prior As market

sequential OxyContin. in months X.X%, quantitative improvement more intend on over prescribe prescribe representing of first the total quarter Xtampza intend decline next less to in ER over healthcare of XX.X% Nucynta first market significant XX% XXX,XXX conducted Based to this a year, of providers quarter the to the in of the who franchise decline compared XXXX. research our first quarter, were a targeted the XX% XX prescriptions

to providers in of of branded their the is ER ER, share our prescription intend conducted ER. first signs with market quarter. healthcare We're total stable were increase the first in Nucynta encouraged the and of X.X% slowing targeted by of prescribing grew Nucynta prescribers quarters from three research After decline to ER XX% the by stated quarter results share the that X.X% for Nucynta

new-to-brand the provider decline or a time greatest impact pain their market Disrupting and to As consultation for on significant pertains the of which the takes the chronic between it treatments patients healthcare on event, impact is market, has patient. a been opioid volume. changing COVID-XX the and of

via most of some specialists to their would still office. treatment a pain virtually, occurring change make prefer patient a is in live visit this While

on is As on Xtampza an mature for new is a ramp and dependent inflow Xtampza of ER. a the we growth lower ER brand, impact patient believe new-to-brand the volume than growth product, having more that

a believe grow will have impact franchise. Nucynta this Nucynta through inflow the the dynamic. on As Despite by we and is new impacted the that to and dependent slow is can mature continue patient less the decline year, for COVID-XX, we less will ER Xtampza we of forecasted franchise, which decline

of patient-for-assurance and to enable force we selling e-retailing effective working following: remotely capabilities resources since sales our customers upon their like actions working we launched co-pay actions to able launched to the request. sales representatives, for include has and These remote taken and be remotely. be sales to HCP's March Our training get been new to for our all representatives and XX them we've patient processes cards new

our in pull-through work and exclusive investment improved and payor increased resources for our of to accounts with websites improve brand availability capabilities closely digital and increased healthcare promotion. We continue digital on our both to and We market continue accelerate share. professionals non-personal to patients we

of are I'll turn to going XXXX, is XXXX our In back it forward priorities to throughout Xtampza Joe. commercial look be a and updating for slow achievable. progress ER the the Collegium our year. you I Nucynta franchise. and to year on that, the Grow decline transformative With

Joe Ciaffoni

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

Operator

[Operator Instructions] have David question a Amsellem. from We

open. is line Your

David Amsellem

been Thanks on patients seeing for been due switching forced but dislocation? on of I you are normally to period, will, that one. I number progressing your And have if I this off, late, better because missed color has apologize be and or thoughts you extended away pandemic. stay Oxy So allowed the OxyContin would from all that's the get maybe joined an to if to is since I forced term delayed how wanted

two is economics. ridding the reworking alluded number on past, or yourself I of that in the had And think contracts you've contracts Joe, Nucynta. to poor

there for So XXXX? and this forward progress the profitability going Thanks. Nucynta implies year you talk about of can made or beyond you've either that for the what

Joe Ciaffoni

pass I'm forced back to access David. switches question. Nucynta Thanks, and to about Sure. first come question address then I'll the Scott the talk the going and off to market

David Amsellem

Yeah, thanks David.

that in impact see February, delay happening going of what's patients yes, switching. yeah, and doctor's the aren't COVID-XX, market we kind of driver we when So, And primary in at to some of of, offices. late the is the look that the in a

most that and So on overall physicians in decrease the a to switching consult really switching when patient the in they're having timing really is so want patient effect of visits significant the market.

Joe Ciaffoni

but in-person do asked for that's also the where instances, little certain believe first David, you impacted had said. the we had we is in the even of as think primary And, some if Scott the to ramp is is more with some bit a regards Xtampza visits being they and plans flexible, formulary impacting happening, question, advantaged that have positions -- driver

our going relative Nucynta, from as and able With do be to contribution regards goal, to things basis, you achieve positive a believe on we'll and forward know, some perspective. an stability operating we also revenue

looking the rates On side, we'll one, be, new for makes that the we to payer think discount our add be contracts strategy franchise. at sense will

and thing, did, one about of if we we we is that, we and But the had asked, we at we're would but to begin things those a can, to to is when decisions going question Nucynta inherited second liked in let going And two-fold. better you we of obviously our over some next be be will The doing will contracts that the couple to years, of see more where there rate contract One, that impact to do approach we the directly expect the the to expire. transaction instances and try so keep some renegotiate expire XXXX in XXXX. can't will of made XXXX. contract in and the the it

operating forward the across the move do, we'll we a over overlap but the a contribution not associated, improve now just believe, we will Cincinnati value be be franchise, the facility basis. can COGS chain And Nucynta operating with we years, to three able also we Nucynta there as of think lot also contribution as from a facility we Rico how because for on achieve ER stability example, From also tech perspective, up Xtampza Fisher Thermo to we -- forward transfer a relative and ER. Puerto J&J in of a that's manufacture revenue going a in hold in where next

David Amsellem

Thanks, color. helpful that's great, Okay, Joe.

Joe Ciaffoni

You it. got

Scott Dreyer

David. Thanks,

Operator

next line question Our from comes of the Kevin Kedra.

open. is line Your

Kevin Kedra

the Hi, thanks for taking questions.

wanted just development. a clarification a on on I business First, comment

for the development. view being you impact that business mentioned kind you favorable as neutral of So COVID to

expand you maybe upon if So could that. just

it’s And what that patient elective opioid some the the about we given then the imagine wondering that to base procedures, there I ER secondly negative market a talk wanted product that but I'm from is Nucynta seeing of as of product, ask IR, is declining much seeing you're for kind impact don't the that, of about what as IR I volume. the lack would surgery with Thanks. and

Joe Ciaffoni

hey, Kevin. Yeah, This is Joe.

positive. COVID-XX is the that impact in neutral different BD I made going our of experience So Obviously, of perspective, are will from commentary different a be the companies COVID-XX view ways. to a lot to

trial being some create will are company, a valuation impacted Some delays from the of a pressure. have will some experience That could a clinical challenge, from perspective. P&L

Phase in, So are II which pain development. from are to we're of enter our non-opioid perspective, solutions, all eight in or either focused II ready Phase we've identified

And, view to transaction done. worse on about As you XXXX assessment, able was get level based my the IR. Scott our know, say, XXXX that targeting not window we're we're and to of a high that being can net in terms Nucynta certainly likelihood comment of of in to speak the position

Scott Dreyer

Yeah.

So...

Joe Ciaffoni

type. Patient

Scott Dreyer

Yeah. a Kevin. lot, Thanks

it at ER. with So, actually along we travels yes, look when IR,

quarter this less a 'XX, but pain used So first it than that's of significantly decline, patient XX% was And first versus a of for treatment. there time quarter product the quarter it's the chronic 'XX. was

so a products. And differently it the behaves traditional than little IR

Kevin Kedra

Okay.

Joe Ciaffoni

next Operator, question.

Operator

comes from Belanger. question Serge next the of Our line

line Your open. is

Serge Belanger

good afternoon. Hey,

for questions of couple a me. Just

withdraw companies because you guidance the assumptions gives the the The what guidance lot around guidance. or new of COVID. uncertainty What a behind entirely on saw first of your here? is one, are We Joe, just confidence

Joe Ciaffoni

it's transformative maybe happening additional we Look, what the Serge, feel, care the guidance. is, perspective first benefiting appreciate financially question. a is Nucynta organization. the to texture Paul is transaction, I you we and so in little give And thing to the look the believe give can continuity at is products. when market the then Yeah, I'll the of established

guidance the with as cash and Nucynta, for a comfortable of the feel you we lot the know, organization. So of flow which EBIT drives

an perspective. people our have result things that, the by we otherwise, meetings, expense gone we second Xtampza, like patients related same from we on the driver nature an their assumption when T&E favorability putting you and And there's will The conferences look perspective, from that remotely, the expense to, thing, is in the physicians of think expenses, would think of making at Xtampza not in able being person pressure that and primary what is visit rate. to of we're our ramp basic working at

back same meaning and So the to that we the across patients also assumption at return to to be were, same comment. rate of the bring our physicians is they it that force any don't anticipate across in add it the in-person of I And as the the guidance at office country, anticipate you don't to year, are prior to enough to level able to be the a want visiting we their if was end interactions, if, field country don't Paul, our the we're normal will the event. fortunate know customer additional prior

Paul Brannelly

Yeah, Joe, other said thanks what the deal Joe expand thing how I'd and Collegium. on Nucynta question. financially only Serge is for The just the for thanks, transformative is

were of we meaningful well. which and year is guidance Nucynta quarter flow $XX.X we but million, in remainder throughout profitable royalty profitable despite cash as the cash the adjustment the the gave the why we'll year, for generating So the of be first

term over paying end million, the down $XX.X of $XXX we'll year note. with the So while million

So we cuts. down bring despite revenue very to still Xtampza expect a strong the have to year having

Serge Belanger

market the Okay in explain follow-up that would maybe quarters? share of Nucynta. and just success your over last and of couple on which a dynamics you Can about the then talk product market growing

Joe Ciaffoni

Scott, Okay. take. can you

Scott Dreyer

Yeah. question, the Serge. Thanks for

commercial proposition value of stabilize look, is ER, being by the that Nucynta product we we at look believe stabilization product. to our the able and when effectiveness driven So, that the

they have prescribe and when before differentiated. see physicians, it shared to talk the it and as product strong you and I'll intend a share highly favorable I've they to again, As

are So share. have I allow think quarters us to four for those things and to stabilize together come growing

Serge Belanger

Thank you.

Operator

from comes question David the Steinberg. of line next Our

Your open. line is

David Steinberg

Sorry asked. on missed But in that. calls at but the about with about that would been to And five the three have would I have any question might regular and call, some off-cycle wins. close the months, wins, last -- going time I have next it, past, you possibility know or announce the talked it when one side, apologize, I the cycle four you your there? be you update the of may

So chance -- conversion, then? between that that to I order given forced be script at to just Can achieved have make something or doctor? their be would doctor's have then, with be in physically or via there of Zoom such adjudicate have literally know wanted the -- with method in I now be and And the what's the this. to with them. to you the I've not -- want I just the sure clarification, a to you physically office be office you some got

Joe Ciaffoni

and payor let going start talk David. Thanks, wins. Great. I'm about I'll question Scott the the with to then off-cycle around prescriptions

Scott Dreyer

first, via changes started can't thanks, David. a new and telemedicine made actually so be from no, standpoint, patient Yeah, a Yeah, were that Perfect. legislative video conferencing.

down So visits the visits in kicked abilities. at of end physicians' to -- changes want by that February. are significantly live the offices in and patient is to challenge make challenge physicians is in the since the COVID-XX patients The those

office, change. that's patients want it's aren't to why going fact see make they the by can a that, the to they and and the So that do impacted physician mechanically but

Joe Ciaffoni

that prior. thing of other low pain to telemedicine one physician groups other were question, to relative specialists David, And, users

which over from was we and And a the of having patient to common increasing, to shifting not oxycodone in exclusive so, to flow impact part why think these of plans although, disruption been the their Xtampza. that's the patients important is is practice, that's

payor if continue be, so from additional strategy. communicate get payor actively I now encouraged equal With regards of off-cycle I Xtampza And our would situations, do to we perspective an things that parity In are commitment on to we're and engaged. achieve we say terms our to any we are to are looking would three a get wins, also would that do certain in we we emphasize, be they material, we're them. One, to exclusive. instances, trying status. in looking will

actually know, payor exclusive, Xtampza oxycodone. every ER have you As is position not has disadvantaged we that

footing run-in off-cycle, to we commercial instances, parity strategy our exclusive, position, if breadth That's with because payor our can of move a that achieve that we lead share of So can position parity certain our and scale, in we market think put achieve to exclusive. would for with part try to we meaningfully equal overall in will oxycodone. then a terms also on

of So look we both and but having. the communicate also we're as XXXX potential we material, out-of-cycle, to the encourage will based for on anything discussions

Operator

time. Please are no continue. questions There this at

Joe Ciaffoni

make a great. the Pharmaceuticals well. unprecedented Okay, the you, I operator. XXXX you most progress. financial Have have of face portfolio, that and, I'm on to we look make be good year. and happen. is updating and In a product track important, Thank positioned our challenges, confident strength it transformative evening. people Collegium Stay healthy uniquely on to to forward

Operator

conference This today's call. concludes

disconnect. now You may

Collegium Pharmaceutical (COLL) 9 May 202020 Q1 Earnings call transcript