COLL - Earnings call transcript Q4 2020 | Collegium Pharmaceutical, Inc.

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Operator

Greetings, and welcome to the Collegium Pharmaceutical Fourth Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Dasalla, Head of Investor Relations for Collegium. Thank you, Ms. Dasalla.

begin. may You

Alex Dasalla

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

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

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

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

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

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

Joe Ciaffoni

joining everyone, our to you, as XXXX call. Thank as discuss year-end and and for pleased outlook. the QX performance to XXXX afternoon, you, thank here our Alex. I'm be today Good well

to living communities leader in to our is with committed pain of responsible highly we know, serve. the and the Collegium being you is As and pain management, people dedicated mission

processes pain our executing operational our differentiated We of with value shareholders. achieving creating are do for value delivering our on focused of aims through our this our portfolio, the near-term people, in mission and maximizing was We dual transformative on strategy strengthen most long-term a in In and important growth. year our Including Pharmaceutical. and brand, XXXX our and our Collegium. investing strategically time, goals Collegium programs for financial investments that extraordinary an

launch, contemplates generic no and commercially supporting Our litigation, manner. loved achieving ER ones, than and the capabilities first Key strength confirms and growing XXXX Xtampza and in business our the Xtampza settling which the construction committing This operations to strengthening enhance a us cash. and on of franchise and and operational, organization a earlier management, responsible socially priorities. achievements Nucynta able our of transaction, our acting Boston revenue market an Cares of new highest a our our poverty, notably the Xtampza and pain the the partnership these organization were to that commitment include in communities. validation patent priority and our XXXX Collegium's Accelerating the importantly, state leadership ER, as Putting XXXX with Executing to people full communities the includes September of Teva in sustainability deliver throughout all is partners facility profitability allowed area. and Science education broadly profitability working maintain virtual securing reinforce generate an to to achieve successfully the together, it significant commercial path objectives it responsible of leadership Life of and address and Xtampza ER completing was ER to their positions and accomplishments face health customers, fit We dedicated in world in XXXX. COVID-XX. the to growth, year formulary in making our for

we recognize in my serve. with people on commitment colleagues and thank We I pain to their are financial living entering and XXXX accomplishments Collegium many their them from a strength of and communities to XXXX position for at want

trends. early Looking by ahead to XXXX, we the encouraged are

mission, strong, is XXXX our a that and Top healthy. to business Workplaces USA Collegium as our also recognized Company, values are and testament a to like was I'd core people recently note culture. Our

look are of financials. we We pain to and for our to maximize our more the to will opportunities you that look XXXX. in have entering I'm and call value over the confident to and strategically hand of differentiated growth value right we it and forward plan, the I Paul our place a phase a growth importantly, creation to continue portfolio discussion long-term will updating invest now of in company. of make people happen. the I throughout the on for progress

Paul Brannelly

year Thanks, able transformative to a Joe. for In achieve financially afternoon, organization. we were Good the XXXX, everyone.

from delivered by $XXX of we X.X% XXXX had million generated the ER Xtampza Total revenue full we net more franchise profitability, meaningful our in XXXX. discount protracted was exceeding underlying XX.X% XXXX, an for down which million ER Overall, at compared of impact of COVID-XX Xtampza increase revenue and from ER in guidance range $XXX communicated XXXX. to XXXX. from negative the the differentiated XX.X% the targets, was in challenging XXXX, May. is for we cash paid revenue total the net acquisition offset expectations. Nucynta was The and and our Nucynta anticipated. robust products on in Xtampza XXXX, of this midpoint A achieved slight franchise pain than gross operations from was on Xtampza year This an flows performance revenue of was we for in With our miss first revenue was growth, as debt. our XX% strong early demand view increase offset to a

Nucynta to net oxycodone in be to XXXX, the will new for in the net gross gross franchise quarter-to-quarter. XX% of was discount formulary XX% revenue it was wins, XX.X% in a in to XXXX. As though Nucynta XXXX. lumpy to net be a million compared from the to X% range discount we expect The decrease ER $XXX exclusive result XXXX,

a relative prescriptions franchise, Nucynta see and expect revenue compensation, were profitability Operating X% on stock-based our in With representing the the million $XXX.X stability. with line XXXX. includes to to improvement expenses, which achieve took we we versus of pressure payer actions prior XXXX, for but XXXX, that the improve guidance in

XXXX. Our non-GAAP full million our for $X.X fourth The $X.X the non-GAAP in our a adjusted $XX.X of the non-GAAP improvement the the XXXX of Nucynta notable to revenue XXXX to driven year was million adjusted release GAAP fourth was acquisition. $XXX.X in million ER full the and see results. EBITDA and quarter million for quarter year reconciliation for for and growth compared EBITDA Xtampza Please by franchise press

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

balance at to cash year-end. year-end lower-than-expected payments Our of was timing due from wholesalers

our there balance In addition important to note XXXX. a until term to assumes that our repaid to guidance cash half our was loan. increasing return XXXX, Today, reconfirming guidance, $XX.X are we annual initially provided X. which million our we of is prior normal of also on It's in second January not the

range is For range leveraging our stock-based the million, of commitment of Xtampza finally, XXXX And guidance original demonstrates compensation, $XXX structure. expenses, lower which in revenues franchise and million. in excludes OpEx Nucynta $XXX to which $XXX million. range million cost than in total to to to $XXX of to million our EBITDA in the operating our stock-based includes XXXX, expect million which million. of $XXX continued we Adjusted $XXX compensation range $XXX the ER revenues $XXX million the

Although early so by we it XXXX. is year, in seen encouraged what far are the we've in

turn our profitability, of invest on cost and organization focused in growth disciplined to over leveraging it structure are a cash, ways to We Scott. generate the continuing capital approach long-term I'll strategically to to now our looking allocation. for taking

Scott Dreyer

Paul. Thanks,

Total oxycodone And prescribers percentage the points exclusive were account Xtampza As our demonstrated management. to tirelessly wanted both in agility in fulfill to there momentum quarter new ER take the increase up commercial within pandemic XXXX. the prescribers of and XX% for of organization, the and total Xtampza the share we ended in Xtampza specific of exclusive quarter, the being Paul a prescriptions, great Joe fourth XXXX. the quarter versus an ER and and share achieved up took highs a Collegium, XXXX resilience XX.X% year with generate XXXX. XXXX. every worked fourth growth a of of was with to we XX% total pain actions in our all share XX% And prescriptions to quarter. to market, face accounts. to unique XXX,XXX, Xtampza exited fourth ER, the mentioned, share moment for oxycodone December In saw from and X.X market leader market transformative ER ER market significant efforts recognize commitment the all-time responsible and across the XXXX of year XX,XXX grew versus COVID-XX of of I ER an

For prescriptions remained the fourth in the Nucynta franchise, both market share and total quarter. stable

in to be the payer profitability revenue XXXX volume took improve to pressured XXXX, but Nucynta of result net be a stable. in As actions the expect franchise, to we we of

to marketplace. Looking remains a challenging dynamic COVID the the within pandemic XXXX,

commercial Although from better in visibility key and we're our to contrast model impacts. leveraging on on XXXX, learnings, adjustments have actively overall benefiting potential

continues in-office although is at COVID-XX. on levels. remain visits are productivity which corresponding due impact market. levels, in-office anticipated, about number the down overall of sales to The As impact down force pre new-to-brand COVID our a has COVID visits, This XX% of patient the pre versus COVID to

specific promotion to coverage our health develop and actions exclusive digital portfolio closely engage the plans resources pull-through nonpersonal very increasing leverage health to the and to representatives, our at XXXX. and end start continues plans execute year working the new portfolio team existing entire ensure broad of sales included new and actions for Executing investment our positions Xtampza and took to for access ER. market in the care launching launching sales content. providers to action to for Our plans in adapt, success tools and a capabilities pull-through We with position new action for specific comprehensive and make fast engagement These last remotely. selling progress digital

immediate TRx of of QX a XX% weeks seen over As volume result for up volume total in first acceleration ER. share XXXX, performance actions, Xtampza X fourth of quarter market prescription is quarter-to-date XXXX. and we've through the these 'XX the

accelerating is For oxycodone in as confident and accomplish stable Xtampza was December progresses. objectives, XX% team week updating week on XXXX. recent The ER With you last and I'm share for the of market I actions We're it's necessary it ensuring most ER we contributions by X, February from Nucynta ER new-to-brand I'll trends, to to data look the these focused turn early. the that the have year Joe. up forward performance back taken encouraged the commercial for recognize XX%, these ending but to from franchise. Xtampza that,

Joe Ciaffoni

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

Operator

from Instructions] question David first Jaffray. [Operator Our Piper with comes Amsellem

David Amsellem

couple. a had Just

the degradation your changes these see And and you through LOE and basically at with asset, thinking you days? another on contracting terms about progresses? first, terms particularly of about biz I is suboptimal then of with you're But So or can the just end bring out of how kind the contracts. philosophically talked latest for to that's in secondly, talk through this of talk we're thinking year, that have looking on XXXX. and in Nucynta in just a of you volumes we'll year Joe, number of volume what Can one. So at know, it better dev about trying what you're Maybe M&A. Nucynta, this makes how economics up the talk question. long-term in getting as cadence the

Joe Ciaffoni

and Nucynta. of volume, Thanks, David. and perhaps speak I'm to on bit the talk can cadence to split a Paul Great. revenue. Scott ask price can and to the going Scott about Paul question

Scott Dreyer

David. Thanks, Yes. Great.

changes And volume half for first first we steady the second through than So of speak year, I'll Paul volume maybe what let when pretty bit the of the really place. half decline the a in when revenue actual the see little we because at the the look side. greater to year, half is took

Paul Brannelly

Yes.

the of On benefit should we the the see year. the and quarter canceling it the And the steady side, then in throughout of should first revenue effect, year. be contracts renegotiating

in franchise. difference economics really So QX see the is the of that impact in the we'll

Joe Ciaffoni

question David, I we took certainly your on get think really the will also a development, Nucynta, and it And is, the of would on about add we believe one, have Yes. We growth. position. increase that the To of a encouraged that benefit we business in how X business long approach. committed I of at there disciplined being is beginning for it price a poised strong our And the it's We're would is we thing what runway. because year. that we're emphasize in to

just we're deal to to we engaged. So a we do really get good active, feel To deal doing end, really deal. we're focused and need We're on that don't focused we're a done. a

what for and continue highest it priorities know of engaged being that focused we solutions. that have like. we in us, and development and our So we non-opioid be pain is on business priority process We're to

potential later-stage revenue time XXXX generate with to being able XXXX the of With to development, the in potential frame. that

Operator

Our with next Tim Lugo question comes Blair. William from

Lachlan Hanbury-Brown

I just quick Scott. is Lachlan a Tim. clarifying first This on of for question to all, guess,

it you first position? to is -- plans can nearly Obviously, had the you week. you the Was looking the share year? I how months then Or of said overall dynamics the you recent but does speak early, expectations? have XX% parity where X think new-to-brand exclusive of is have you're to it's seeing a you that in within market? that the most second question. plans? in in the compare And How that And

Scott Dreyer

the Great. Yes. Thanks for questions, Lachlan.

I XX%. just February the overall across That's regarding through then of week business And the not the in X, all So share first, second, business new-to-brand parity exclusives. shared position. ending

yes, month. less a than there So we've every large first share growth our what point in It's right, into is, place Optum at parity. position a July. went seen We've that little of seen

And we chance year. a growth growth behave what half second steady we it's maybe know with the for as different expect the greater of continued exclusives. is going So to our than to get there we

seeing that's and anticipate. So we what we're what

Joe Ciaffoni

we're we see when the lift that's to to patient regular Part we of seeing as books emphasize are And share to bit in to half normal, as business. Medicare across a in Lachlan, a of At the the expect year back skews broadly goes said, positions from it that of on. in I parity And exclusive, year, where to would is new particular, ], is and our when also, all the in-office Joe. year. we're point where get care what's of important returning particularly managed perspective gains this this [ the Scott would market people little visits, the D

Operator

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

Serge Belanger

Few questions for me.

let's third And despite First, change drop just from of a due back in overall gross an Was business environment, bit terms increase in a extends that I nets? XQ, us the quarter a prescriptions. to to then go of think in to question at like of And quarter? down all fourth XX%. quarter, Has visits about XX% number last both the for physician you quarter Nucynta. Paul, mentioned a increase Xtampza that on that or patient were over first improved price then last and

expect past, I you parity it about and just When realize still you half of half you've think in realized that effect? the exclusives? of that. And not to plans take realize you now that you have will will do --

Joe Ciaffoni

Okay, Serge.

and So and the question, Paul will will third take then second. first Scott take your

Paul Brannelly

Great. Hi, Serge.

the to is through quarter, X.X fourth points of the fourth decline the in the net. the from In to about as question first gross to quarter. Xtampza increased year. So is Gross quarter. quarter third That revenue compared lumpy said, third the net by driven we've discount, it

third XX.X% XX.X% quarter, to fourth quarter. in and it went the So in up a the

slight the question, increase. decline And in the fourth to which that's then over your quarter. revenue I'll about So price Xtampza the jump third was in

that will X the points the of about we January. increase built contracts. realize will in benefit price We And or protection see price because X right of into of

And that. over I'll Scott in lag benefit your to second for question. to hand no start the of there's seeing So it

Scott Dreyer

Serge. Thanks, Yes.

year visits. visits the are of So we might approximately back is of we And there. see half sometime now, is some regarding patient the patient of second right anticipate bounce those visits during where what sit down XX%. still Where we the

Operator

question Folkes Fitzgerald. next with Cantor from Brandon comes Our

Brandon Folkes

seems This very to hopefully the do year we question. like sort half Joe, good in year, about with earlier second about how How of moving following very think of to echo on I think trajectory? last the about you with profile of XXXX. year development from firstly just And COVID. terms in of start the company of business an your out. the have should a a difficult terms build R&D going in we're comments Obviously, it and tailwind you earlier then sort reopening. Maybe as was

as So in year your the year, a what maybe on just is Xtampza of update, And trajectory as well for your thinking what's the OxyContin the second as can, updated COVID? growth maybe normalized as on environment I guess, Any you then much with in of this half generics? terms lastly, thinking?

Joe Ciaffoni

Brandon. Thanks, Okay.

have an perspective, we said, we leverage look, assets. believe that R&D So can we capabilities the first, from and later-stage as pertains development we've business it question to with development as

to normal. fact, million if, return think continue we are Collegium. in we second in of of we're what growth either by to is And we of years. Xtampza for strong year the So be a that of moderated to lives the fortunate We year. will ER, the we in position. expect In pertains think particularly, But half that Phase with the question. the to aligns And past third point, perhaps in first the better for a the the parity believe than immediate you ready. do XX Phase that your I'll have that growth all there's done seen II II what think year, we've bit couple we're overall enough take skewed we've year, to it to see we acceleration or as looking that although Paul driven let in the programs can the the When of a capabilities that to half

Paul Brannelly

Great. Thanks, Jeff. Yes.

that dates XX and complete XXXX So generics have But sight to which listed expire -- expiration for Orange line includes they XXXX. that Purdue, there. what is as between XX know we potential of we have have patents, don't Book

far situation. their IP as what that's know So as we

Operator

G. Kedra Research. next question comes Instructions] [Operator from Our with Kevin

Kevin Kedra

what a stickiness a you about ask for about could you how Nucynta, First, visits about, trajectory seems lack that function are But the the of switching to of obviously, thinking for of about the out come to benefit be Xtampza. we're I COVID of look that business happen. more thinking like talked there lack tends to of and seeing some the the want

stability So might whenever we for can come be? COVID you as out you that maintain that anticipate Nucynta of that

Joe Ciaffoni

Yes.

is to -- execution this year at there lead gross terms of expect will contract as and So net Kevin, on in that in from our one. take strategy, which believe you the picture price the Big look revenue Joe. for we by a offset of sequentially we a Nucynta, pressure to favorability stable when of be result XXXX. perspective, volume I'll to

Operator

There any further for floor questions are over like no time. at the closing to back this I'd remarks. management to turn

Joe Ciaffoni

Great. for and momentum and we Collegium, with was a into year remarkable attention. head all for you Thank encouraging and thank financial XXXX XXXX transformative strong you, your truly a and position.

We a the creation value entering growth are organization. and of phase for

our efforts achieving management. focus the forward mission We and products, strategically on will delivering pain to evening. on updating I maximizing and of investing great progress, and look our in value our our leader near-term our the in differentiated growth a long-term continue to portfolio being responsible pain operational of on goals, our of financial have you

Operator

this gentlemen, and Ladies webcast. concludes today's

and disconnect great You time. may have Thank at you this your for day. your lines now participation, a

Collegium Pharmaceutical (COLL) 27 Feb 212020 Q4 Earnings call transcript