COLL - Earnings call transcript Q3 2020 | Collegium Pharmaceutical, Inc.

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Operator

Greetings, and welcome to the Collegium Pharmaceutical, Inc.

Third Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the former presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Ms. now is to host, introduce It Collegium. Investor Alex of for Dasalla, Head Relations

Alex Dasalla

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

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

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

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

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

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

Joe Ciaffoni

situation many pandemic to you, joining the to everyone, by the COVID-XX for call. Alex. continues challenging want Thanks, start so afternoon, people. and I acknowledging present for thank Good the

strong. that transformative Pharmaceutical. supply everyone go out who our challenges, a to I'm been business In secure, and helping, chain year our a Our year is for extraordinary are be XXXX pleased people of has thoughts will and our impacted. is to hearts report Collegium

versus foundation in setting management. Collegium their become for admire resolve. the want quarter I effort for third versus appreciate operational and to third revenue forth ER million, they while of include to from track represents commitment day their success net are Xtampza put net increase quarter third moment mission XXXX of which pain Business XX% XX% XXXX. up every highlights XXXX. take an at our adaptability the increase $XX.X and XXXX. the Total quarter of third XXXX. our on to colleagues represents a $XX.X QX achieve prescriptions responsible record X.X% a I to million, over concurrently the in which of to objectives quarter We the in my that leader the revenue thank were

leveraging, ER launch The quarters. OpEx patent As in at XX, the of strength of we quarter. at and state. than share XXXX. debt. down a revenue Teva, increase XX% the contemplates of anticipated, basis basis, quarter of hand fourth on third We paid were to versus and and believe for for beyond. We or at on Xtampza We settlement confirms six QX September end million, the and of expect earlier ER generic for meaningfully has $XX.X a down structure sequentially, cash third grew increased quarter franchise worth grow the were the grown been is sequential rate consecutive sequentially. to no settlement net Nucynta and that this the stable And Xtampza remain Collegium's GAAP quarter, to the down consecutive the ER quarter the XXXX. compared it that versus on noting prescriptions similar we moderated cost rate XXXX. XXXX settled represents third litigation. But Total XXXX TRx franchise committed Nucynta which growing, ER prescriptions a in stable profitable not X% a a were was prescriptions Xtampza

have upon we foundation revenue that franchise. achieved that with Looking XXXX, stability believe to January, we sequential which will set the accelerate Xtampza forward be augment Nucynta annual the beginning ER in will

portfolio done Our has market a great access job team executing strategy. payer our

As market team terms prescription. biggest is lives. will Unitedhealthcare's be January which plan ER wins lives. pertains Medicare second has Starting D exclusive million XXXX, PDP and of XX cover oxycodone secured Medicare to win additional preferred exclusive Xtampza a business, million in formulary oxycodone X, commercial AARP Part the Collegium's ER ER, the is Xtampza B, largest D high that Part ER and seven and Part for approximately The active commercial over controlled plant ER new oxycodone

win, any XX cover to In Optum commercial We opted by plans exclusive the of payer evolution a secured XXXX With to will approximately effect Par be and approximately unfavorable that also lives. positive that not contracts revenue, wins a care which improved the the commercial XXXX XXXX. million we the XXXX parity million five on some anticipate From pressure franchise, take have few with Nucynta covers regards renew our and perspective has of on that in rebates team wins landscape team's meaningfully impact These prescriptions. inherit. addition, three offsetting will January we managed positions New on the XXXX formulary of focus pull-through, growth: wins, X, buckets lives. the on

is the it Paul XXXX. organization over I'm now happen. preparing call XXXX. simultaneously portfolio strong, we a of with person start not to to healthcare view made by, in fast have to favorably that which hand to the committed we will the thus to on for Collegium company being possible whenever while our continue with for a portfolio, far the as progress the financials. make I the that work leader our focused and to of nonclinical is remove highly The have payers providers satisfied in the responsible encouraged As will finishing but to paying barriers differentiated. confident we in Every discussion pain XXXX team management, people

Paul Brannelly

In closed we operations transaction, face ended afternoon, strong quarters generated COVID-XX, position. our the and quarter $XX of repaid In million a the Nucynta Good since two million cash $XX financial the from in we the loan. in of term everyone. Joe. Thanks, third we've

second gross XXth was $XXX.X product The by an the XX.X% for Our was $XXX.X increase million. The the million for our was Total for is the from quarter coverage driven and gap. ER million XX% quarter $XX.X $XX.X of Medicare was revenue of to XXth X% decrease from cash quarter to XX% XXXX. second balance compared a balance revenue quarter ER third net million, June third cash which quarter. September Xtampza increase of discount discount to the in was XXXX. Xtampza third of compared gross XXXX net of of to in our the

to third $XX.X from Nucynta gross of the XX% from increase for XXXX, XXXX, discount is million million quarter expect We of and the third revenue expenses were for second Operating may and from to quarter which is lumpy year. which the the be for second X% the year year. X% XXXX. the throughout to $XX.X a XXXX a the this this third be decrease was continue of quarter net XX% range quarter low a in quarter of increase of

prior the GAAP of to Our compared year $XX.X third for million XXXX GAAP of a loss net quarter. was net for $X.X quarter income the million

adjusted for quarter year non-GAAP $X.X for and for had significant million non-GAAP this adjusted $XX.X EBITDA. that income flow XX-Q our years, adjusted financial for year. a and EBITDA generated earnings of analysts. prior third information instead for two income, the continue adjusted cash investors from guidance did we last to we more to quarter, Similar operations, Please adjusted In net XXXX third compared income, additional to see of million we anticipate issue the Our metric We record we financial in guidance January. to believe quarter. discipline. expect EBITDA maintain We XXXX was the release helpful providing the like and is about

now We call on can organization, transformative Scott financially the to we've make commercial a strong a to to beyond. foundation I will built and XXXX a hand are which track in upon for over year grow update. we and continue XXXX for the

Scott Dreyer

Paul. Thanks,

COVID-XX sales which called visits in As patient new-to-brand XX% adversely that market. weekly about in-office it increase impact and cases in in corresponding a our estimated down manifests to person in versus pre-COVID, the It's country, are continues across professionals. the by visits office patient decrease

X% up Total of Xtampza adapting And Xtampza and impacted Nucynta highs care. force XX%. by in is in we the of calls achieving share in-person progress. dynamics, Our franchise continues and ER In as prescribers. we've these to third total about adversely and total market prescriptions dynamics, ER quarter rate and progress That grew. growing quarters. growth said, market these from benefits Nucynta prescriber of field for I'm the XXX,XXX, new quarter, modestly previously, to efforts XX,XXX unique the years, six in of continuity grew in three market for team, to by now the that or the versus franchise IR both prescribers. straight first third of share and for over the stabilized Nucynta encouraged second and commercial share stable basis ER has making. oxycodone Xtampza ER And Nucynta extended-release the quarter. XXXX. XX%, being grew is prescriptions still the conversely, we're grew the down there the face make ER time for The I were Xtampza believe described are had the appreciate

through return to normal in the execution to our and I and we focused positions will quarter. year. the improving of and both believe fourth on a Although can interactions, remote leveraging pulling We're remainder XXXX, we market anticipate momentum do impact the of don't access new that better generate capabilities in-person in strong our and

has million XXXX. growth in commercial be I'm ER, new payer the formulary wins accelerated job our the to beginning annual the position strategy. team revenue XX buckets stability portfolio foundation in XXXX, In will lives. the and growth. wins to put parity focused achieve team These pleased exclusive to announce We XXXX, has our that for a strengthened accelerate franchise. market and the access to for Nucynta January of across of great fortify Turning in done Xtampza foundation three securing will executing on a net ER access place Xtampza team market

control plan as million UnitedHealthcare's preferred commercial is now January lives. representing and prescriptions. secured largest also significant Medicare win high new Unitedhealthcare lives. is first the most is approximately all second for by plan PDP wins individual This exclusive the D new exclusive X. the We've measured D is million several AARP on ER Part ER effect wins oxycodone exclusive regional oxycone ER the The with Part Medicare The three of XX Xtampza plans, a taking bucket new business. oxycodone

the capturing significant bucket Part we represents on wins, XXXX. D, for the in continued market commercial The team anticipated that both which opportunity growth share and second XXXX. is getting ER in is XXXX our oxycodone exclusive In focused

addition, making operational plans In a formulary adjustments are to better drive many adherence.

commercial into The third was Optum where win a XXXX. national preferred the bucket in parity moved ER position formulary is Xtampza

into As effect lives. a for a in position contracting in also ER, weather bell this and will for first with XXXX. went lives. reminder, parity January effect impact is The covering cover win achieved smaller July Optum serve and as parity commercial five approximately regional wins team plans XX million take approximately Xtampza strategy million and several the our that

at Nucynta the able was team the to several For plans. rebates improve franchise,

We renew also were to that underperforming. contracts not opted several

will in will prescription result decisions revenue. volume, these pressure they Although Nucynta franchise increased

pain that company complicate we and The generating commercial highly is continue engage payers being leader a which access differentiated. responsible in portfolio pain management, view our barriers remove As to to to Joe. Xtampza I'm remainder XXXX. momentum with healthcare Nucynta team both to growth providers on while that, focused for favorably to is and a turn nonclinical team to portfolio, accomplish objectives. of With preparing these the the I'll franchise confident back ER the accelerate to it has the of set foundation in potential that of maximize the XXXX, committed

Joe Ciaffoni

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

Operator

Piper is Instructions] Amsellem from Please [Operator Sandler. first Our question go David coming of ahead.

David Amsellem

Hi, thanks. couple questions. of a just And

in get growth contract Xtampza the the and in in years the can ads first the or extent seen exclusivity and you about of second when formulary you past switching? we some particularly pace Part second about the bolus of the is of a should quarter quarter year. United moderate thing big and further we've big D, think new half One then volume to talk pace first, how So wins the moderates the in on

past you to XXXX? So on number the be year next you in contracts? for think should those two, interested about nets years? nets on particularly I'm similar discontinuation about we your will will be gross think what being dynamics think certain we to one. Nucynta franchise, just then dynamics number that's talk to And to through of So as the for gross the what Xtampza? net. gross And How should Can given

Joe Ciaffoni

to D question. David, gross take Part this the Scott, going will United Paul to pass Thanks, Joe. then is I'm question to and the over net

Scott Dreyer

Yes. Thanks, David.

X% PDP, year And the first in right? more throughout protracted control will So It be accelerate. answer an has market expect gate high will first commercial, the perspective, PDP do business time question quarter. we we PDP some accelerate know win, compared will out a be have share. we exclusive see to more a to the the right win. we quarter, yes, of your first acceleration about every give now like plan, as in will little To aggressively So the protracted right about absolutely that a as it but the a

Paul Brannelly

to net, in give XX% we've the said, go-forward Xtampza Great. And give to we a we David, to manage as range Xtampza expect low we basis. we will guidance guidance, for continue and believe January. gross in But on can

next could we done we're out that detail will think be give year. So more what modeling point when we uptake at

low franchise, the it's in stable now. for Nucynta the, range fairly XX% On been the

certainly, we that in could could benefits some these contracts. gross as net payer And see we so to change

something our with XXXX out guidance coming in will that's work for that be done with and included communications that. our So also

David Amsellem

a for And then follow-up. This may if just I is ask Joe.

line asset excessivity sight biz into an about you in looking eye past. has the some to down wanted get few an keeping the of dev latest about talked your of Nucynta thoughts, obviously, on the of that commercialization road, and in addition You loss the at talked a I on years.

what are prioritizing your So what these with thoughts? are latest mind, And all that in days? you

Joe Ciaffoni

Yes, you, question. I David. Thank and appreciate the

how get have the confidence is when anticipate I'd that that that core it always, of to we question, and like that it the emphasize As runway I and perform. we the business will

our remains focus our same. the of In focus, terms

business, And late-stage at non-opioid pain looking strength I for is that point solutions. prioritize. asset what is just priority a active important able that to capital. think always a think know really overall of would from emphasize it also the in terms we're not then we're focused. value makes of guess sense being final organization terms utilization is us it into and making the highest Our in solution, we're sure we way say value meaningful of the also around development I And I we the because in for in locked is to being We and but that that the of perspective. our the that action of of

David Amsellem

guys. thanks right, All Thanks.

Operator

Tim question go William is next Our from Lugo Please of Blair. ahead. coming

Lachlan Hanbury-Brown

Tim. on Lachlan is This guys. for Hey,

expansion beyond, future versus continued as current formulary, a So about and formulary? driven us increasing your I the was just on penetration of XXXX And of going sort how that's interested, sense of give by into penetration can sort be coverage what plans is? lives you you think to sort of of and you growth

Scott Dreyer

for Lachlan. the . question, Yeah Thanks

yes. So

the XX% in XX% lives and announced, lives. about of just Part in about wins will position be an we So exclusive commercial, of with D

need obviously, That's strong more there's wins to room addition from of standpoint lever XX to a still But So penetration. grow if pull big. lives. we exclusivity. that The are million parity more,

these parity with be in will in of plans. regional Optum some We

Operator

Thank you.

of go Fraser Greg is from ahead. question Truist next Our coming Securities. Please

Greg Fraser

Fraser Greg Gilbert. It's on Hi. Greg for

share. of the the of X% United sure if that D of or the I plan Part a that mentioned of terms give referred On sense prescriptions? the to You recent in volume size Part D, plan. Oxy wasn't you the can that plan, us volume market

Joe Ciaffoni

Yes.

Scott now, can forecast most would we And through second growth important. say right and a out significant oxycodone. final ins extended-release we PDP, right as to of control United So is United On I Greg, work in And the expect referenced you we as Part this is really know, with why case, XXXX. to which currently what share, at lives. is outs confirming it's speaks of the market OxyContin, XXXX. numbers our B., is the for what of see this X% we're biggest I is and level confidence as Joe. you gate have payer tell there's What obviously, individual the of in

Greg Fraser

for Oxy? second the payer or that's D largest Part And overall

Joe Ciaffoni

second payer largest That's the individual of OxyContin.

Greg Fraser

it. Got

see just the company then through? for ER what is you ownership And to opportunities curious Oxy purdue the potential potential what and as Okay. on implications that the market going you or due new structure

Joe Ciaffoni

Yeah.

as really potential And we're impact imagine, of from perspective, viewed Xtampza be is the foundation is of and that What that competitors highly revenue able one as place that stabilize good to put that feel I'll a an you we want say the basis, Nucynta excited collegium what favorable to to our pain speculate we we take really by into portfolio continue look, franchise. -- paying might or our get going the to to annual it I differentiated are about or would through. is outcomes into from So accelerate specialists one. continue is I don't to

on one feel we're long around we're we're be there's a the ER believe of our growth. on for executing focused branded committed product to strategy, Collegium, that we Xtampza XXXX. by So track number runway And

Operator

go Belanger is from Needham Our Please Company. Serge of & coming ahead. next question

Serge Belanger

I couple think questions me. of for me. A for

you about the visits. inpatient improvement about has And to starting First, business for talked sits I there January? in the due about mostly on can and quarter? you current you the think third both the, in-patient of environment any How do been ahead Xtampza talk solar for growth Nucynta? and think induction

Joe Ciaffoni

Serge, your couldn't to Joe. going I'm is we this hear question. apologize,

up. breaking You were

just it. repeat to you. We, on couldn't you ask end, to hear going we I'm So our

Serge Belanger

me hear now? you Can

Joe Ciaffoni

out. breaking still You're

Serge Belanger

fair? it Is

Joe Ciaffoni

No worst.

Operator

Steinberg from David Our next ahead. Jefferies. go of coming Please question is

David Steinberg

questions. of a Thanks very much, have I couple

meetings of just the than quarter, sluggish largely The to secondly, is order curious, slower getting still scripts And been people first a any business there fact messages third content that different the just Or in visits number to this was I on development. has ramp then of physician companies. order direct has between the been touched pandemic? from script-wise. just lot most given the of the in it And I Oxy the we're the pretty to attributed get in year, Xtampza doctor the that? there's in facilitate in less was person different curious and you improvement is, to to thought, been from handover patient

they've development have business can't the pandemic valuations companies have paused meetings say they because Some too face-to-face the during or expensive. gotten

Just curious, still the your a you're seeing bit related of issues in active? you Has declined of activity interested what's thereof? are pandemic the valuations And terms of because and in? companies

Joe Ciaffoni

Okay. pass talk back the about and come Joe. this Scott, then I'll is this to going I'm development. to off question and David, first

Scott Dreyer

they're Thanks, that, covet down for we the what is seeing Yes. XX% look time country, we're and David. Look, really any in see rest patient over counting year. the really still with period. not of at on cases rising across since don't visits, And when we're the that improvement pre we

Joe Ciaffoni

business perspective, And what from would then, development I David, we're a we're say active. is focused,

key selective, also in a of it the value overall going and from the think differentiation we're what that business to for of do both perspective. be I belief the strength the to the it in the of looking is because we're us is program,

selective. active say but So would I

Operator

Folkes Our Fitzgerald. next of Brandon Cantor from coming question is

Brandon Folkes

the prescription the Congratulations my focus in on growth the somewhere for of half in year talked you where items. think second of sort and improve I being past, win. a about Joe, and you questions the

Any looking just of you're half there the things think patient, getting remain mean, person, beginning provide forward? the visits. to that terms something patient is with But some the we year, this and You can not also in that did could maybe this and about the would that do color, drive challenging at obviously, color how year, in you bolus, Scott growth, going around second but you mention visits parity get in gave of And I contract be terms great. help salesperson in the in Xtampza? of and of

Joe Ciaffoni

thanks Brandon, question. for Yes. appreciate the it. I so

we've of exclusive at with exclusive as to be the The plans, January plans I source we XXXX, as and one, first and look of taking thing we look one acceleration about is those think, a implemented a and plan. we're what to excited in line that have trajectory, will kind effect with seen to new regards on when

you of all really one want The that second those previous for or in took is about you effect new And to January opportunity we growth calls, the of in. at the year when the a recall on of plants pool beginning may the bucket plans emphasize talked I that added in XXXX.

share the market to plans in now, Our the mid-XX%. low exclusive And right down from in in we're XX%. went XX%, approach about

this that the than will at parity is we think the would of to difference year. as the improves year, something So different have share that but we different to time wins, the capture have will you is exclusive. XX% we that the capturing month biggest, lives, XX to and the of that, mid-XXs% anticipated be would in be opportunity this we on and we Optum, look each When which think, have where goes expect will than curve particular, end at trajectory million overall, continue a in

and be sales I more anticipate to professionals year. positive in second to in-person think and terms we see having when a growth, So our there's will the normal, the business steady degree, a of to half that of of consistent to would in the which certainly ability person, the return physicians impact

Operator

from question next G Our Kedra of Instructions] [Operator Research. is coming Kevin

Kevin Kedra

Hi, mentioned that thanks that, the plans. exclusive Joe, questions. for for taking my level you XX%

with standpoint par plan? can sort you give come as less pricing. would would share around to on obviously, what have plans, favorable of of any penetration where you from level exclusive us be exclusives? that an the mean, imagine given on need with would you of on color that get you plan, out would you're to an those within on But of economics wondering parity what kind on getting I of same the get need to I Just plans, parity level sort economic the sort

Joe Ciaffoni

Yes.

of So you answer. you would lower Because I reasons. for multitude an the correct. would achieve better a going specific probably a much question is market share what Kevin, not margin, perspective. from I'm it need we I economics to is a is, But appreciate it give say to to

Kevin Kedra

think Even two plan, a after Okay. level first you you the an on an plan? -- do year years it's parity could getting where within if with on being start time the anticipate lines, to exclusive economic you

Joe Ciaffoni

bellwether Kevin, I'm approach. often the you not much detail. it into the One going referenced a think first with have get will to in is as need it we to returns I'd meaning to we mind The is, -- actually we we be. we although with to hypothesis, keep one world ask is it to thing And we've see We it -- too a see what parity normal, had. need in Kramer with model This reason that the first it. post-COVID. we

can us understand we we in really and help what plan, Will in we positions the it with have contracting it position, in basis, that is this what parity will is about it think say. on as that overall. So going-forward upon a achieve that depending certainly impact particular, space

Kevin Kedra

helpful. you you're going XXXX, mentioned to going I adjusted That's EBITDA about opposed outlook. as income to -- then Great. give forward in ask wanted to And net

how function should we a in rate utilization it tax utilize in might you XXXX? rationale about of Just see volatility behind any NOL kind NOLs? think is of the wondering of as in And way kind kind you

Paul Brannelly

great Kevin. a Yeah. It's question,

more main use metric the compare analysts collegium is, a do to to follow. us, it's companies comparable for it investors to they other to reason that for So and

reason we're doing So that's it. the

should think us shouldn't on minimal any As as shield XXXX far for tax rate and time income and in we we tax. exposure, NOLs federal though, We a federal have frame. the Will state -- going our pay that of XXXX, things only side. our forward, amount

states budget changed NOLs you're As use issues. the of their pandemic because and have the of and some aware, probably

XXXX in pay or then we'll couple taxpayer percent a the the state in And full So become we'll over probably two. time next taxes period. a of year

Kevin Kedra

could And one squeeze Okay. in. I one last

its the There could misuse find will the Is You published or feel way onto an of have there a data are and past was eventually guys real-world that really and there point? when eventually use of pathway of put product data was label? we some opportunity on Or time pushing the FDA recently with some world abuse. Xtampza data of FDA the still a label. kind that a kind kind on kind idea

Joe Ciaffoni

Yes.

Joe. agency would have So regulatory well, it. those to encouraged fulfill. need sure that it we certainly is aware And Kevin, the I close also the this we along that say, lines, see, data make we share of by is continue we're and marketing requirements some we to

Kevin Kedra

leave it there. I'll Thanks.

Operator

to At like I would closing for turn over to the time, this floor Ciaffoni back comments. Mr.

Joe Ciaffoni

you on year. great progress. participating for track look to And our Thank our forward you, everyone, you. Collegium Thank this Have well. a call in updating afternoon. a transformative Pharmaceutical evening. was on to Be we XXXX make

Operator

for concludes thank This Ladies you today's and participation. event. gentlemen, your

your the may webcast day. a You off this disconnect lines wonderful at and time and log have

Collegium Pharmaceutical (COLL) 8 Nov 202020 Q3 Earnings call transcript