COLL - Earnings call transcript Q1 2022 | Collegium Pharmaceutical, Inc.

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

Operator

Greetings, and welcome to Collegium Pharmaceutical, Inc.

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Alex now is to host, introduce Dasalla. It you. Thank ahead. Please go

Alex Dasalla

take Investor Pharmaceutical. some to Thank Ciaffoni, Chief is Officer; They call. of conference you, our Officer. Alex Chief Commercial and remarks, at Collegium Head first and your Colleen operator. then Financial Welcome Chief Pharmaceuticals Executive quarter questions. Tupper, by joined we I'm today XXXX prepared Officer; earnings will Dasalla, Scott share Relations Joe our Collegium our will This Dreyer,

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

risks detailed risks our commercialize that we Commission. other including renegotiate on Sciences These incur acquisition in that the to Securities may terms, may patent successfully current the to not International, Xtampza our and cautioned the Exchange and such uncertainties, our periodic not in successfully are not and may all, that to limitation, company's on products. risks be that future we the involve desired risks or significant products may other contracts able ER not litigation derive recently schedule and the of to infringement we reports expense may filed prevail pertaining be proposed our statements forward-looking or expected that able company with litigation of and the to are benefits related completed prescriptions be we or without at and BioDelivery You of able

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

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

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

Joe Ciaffoni

serious leading, Collegium, build mission Thank and joining is the you, At for a thank lives diversified company of improving conditions. committed afternoon everyone to specialty living call. our the Alex. medical with Good pharmaceutical to you people

them we their progress is people against financially made include We passionate to impact culture the about, and communities conditions pivotal Science communities are strategic accomplishments as eliminating value In with serve. STEM that quarter, on we hard our and our first we strategic meaningful for including for second our Scientists, Life the delivering we by and a the Cares quarter, priorities. solidifies poverty. year upholding pain two was the the mission, the work, XXXX living transformative, acknowledge in responsible medical live supporting a acquisition with through organizations which strong and a our and work thank In the gives and corporate our completed for to of growth management Collegium BDSI, us colleagues as missions education recognized a Science we first we to neurology. in my of I in top foothold where creation. from in Key on the strategically is leadership embark for want row their partnerships are period of year and USA. dedicated and a dedication workplace serious our with in Collegium employees

for approval and field We we X% impact all X%, for Nucynta We the of gross first in FDA executed and approval the pending prescriptions have grew over ER XX Officer realized lawsuits the are manufacturing we seamlessly Officer XXXX. BDSI -- United new supplement positive Medical expected FDA and prior States. quarter Adamas on track We achieved Belbuca rate $XX Board be the appointed opioid-related and to site counties, which Pharmaceuticals. as from Director respectively, approval and strengthened of We received XXXX. is to by the cities, agreement Smith We at received Xtampza integrated force exceed with of Executive the million. in a total in Tom Chief readiness. Dr. other We ER targeted synergies of one of resolving run subdivisions least company day XXXX Nucynta of fully against brought the McFarland, Chief appointment settlement Directors half second Neil margin a and former on master the and

and was adjusted The the year XXXX. expect record deliver and start strong to first EBITDA a quarter we to in revenue

on immediate our and Phase of with are top quarter. Operational bottom-line ensure to XXXX. through to was three-phase position no end achieve a X integration integration action us focused our in is core operations. agenda to acquisition that of the disruption the growth XXXX objectives executing accelerate seamless We financial and will in the second

team Phase second readiness, half million. $XX XXXX. Our our and we the of on focus exceed momentum to synergies is commercial are X of one track achieved rate the run and will targeted be for at least day generate

ER to to January XX% Belbuca that of Xtampza contract prescriptions to total Xtampza remain are of gross ER XX% ER committed priorities and renegotiations absolutely for beginning Xtampza XXXX. complete for We Our grow in prescriptions. net account all and than less

Xtampza of net Belbuca of Xtampza will is neurology focus drive beginning and will XXXX. growth in the success-gated. part Olixib. play expansion be learnings the win we ER January, of year. uptake X less accelerating and will than to Olixib, as synthesizing with the X, will acquisition of Phase targets Olixib we we assessing will play gross will be launch support Additionally, throughout XX% footprint remaining and along execute ER to Where a of the and of to acceleration. of in and focused Any achieve Phase phased with synergy and be we choose prescription

bolster benefit We of will bottom-line our realizing full the the cost by structure. synergized further

of crystal Our priorities the remainder for the are clear. year

XXXX. the Xtampza net shareholder focused January create achieve renegotiating contracts in than strategically are and topline, less XX% growing beginning We impact bottom-line, to capital gross deploying on accelerating value, the ER to to of

one with $XXX potential development assets neurology sales commercial pertains peak presence in will capital focusing our expand allocation, million it priority, number on to we that As stage is neurology. are our business and

debt, sheet $XX to We to we plan back opportunistically repurchase deleverage strong a that to more buy off million share start. shares. also million and have down use $XXX remaining rapidly our is than XXXX our paying can authorized program we from by balance

track into on record to adjusted are track our the are revenue transformative and achieve a We target. business, achieve to completed seamlessly financially EBITDA synergy BDSI for on and and strategically integrated We year. acquisition, our

we of through and balance accelerate sheet operating year. strong, Our the this is cash will flow remainder

to discussion business of to I call shareholders. for value the for to We strategically in and continue will well-positioned Colleen the a create financials. of turn our the our over growth are invest now

Colleen Tupper

Total everyone. eight operating the first afternoon stronger. a flow, we XX.X%, in over sales. exited revenues seamlessly quarter quarter net transformative with Revenues line of Good days Xtampza we even BDSI cash Joe. We the positive one-time operating of down our our year into million, expenses XXXX. Thanks QX product in ER while acquisition, were managing X.X% quarter, million In financially in strong the We organization, acquisition-related include and was which by $XX.X expectations. generated QX expenses. gross the net BDSI for entered excluding in financial driven is BDSI position. the integrated the $XX.X to

expenses, from $XX.X more million expenses, $XX.X XX% Adjusted net gross the that our million, acquisition which growing expect compensation, expenses, to million managing we result the to leveraging, acquisition-related lumpiness compared year, down later. the in full in leverage quarter were of We quarter. from a compensation the some with and excludes operating were XXXX. not and around X.X% on in structure. realized quarter Operating quarter-to-quarter. which For significant BDSI, of of stock-based $XX.X stock-based first synergies remain as achieved to We committed cost the the include expenses

operations, excluding in quarter was in grow of million. income rate expenses was of revenue first loss Net the compared the times approximately $XX.X down of to to Non-GAAP quarter the million two $XX.X million EBITDA operating quarter, Income quarter first adjusted in of first the expenses, compared first in net $XX.X $XX.X is goal XXXX. million to X% XXXX. was $XX.X for the XXXX. acquisition-related from million Our

sheet, the the share following achieved date of cover BDSI. more synergies me I Before the acquisition let balance on to

we are that reminder, immediate providing say that As on closed XXnd. to closing operational implemented pleased deal a I'm we the post-close. synergies on changes March

least also targeted exceed synergies to We track run-rate at million. on $XX of are

below As of result a by the on forma our be combined of synergies. net Xx transaction, end estimated this the year based will EBITDA, run-rate leverage we XXXX estimate that pro including year fiscal

deleverage balance quickly significant generation enable to We fund strong sheet going our a transaction cash growth and us also expect maintain that post forward. will flow to

sheet, the quarter balance exited of we balance million. Moving cash $XXX.X with a the to

position. our This to We from accelerate expect further strong our capital. deploying operating optionality here, flow already us in gives financial strengthen which cash will

near capital to business for or have fund term. priority deployment additional finance one Our number we and transactions development, flexibility remains

in addition, March by the and In next Xx will by by balance debt of expect deleverage the years. million of sheet we year-end. to balance XXXX this we have three the over In rapidly regard, ratio debt-to-EBITDA less remaining than down paying $XXX

Today, full opportunistically million on share remaining we by our $XXX have year. April reaffirming year shareholders $XX also million the to on the provided are last option the We to originally financial capital return the guidance XXXX Board repurchase with authorized Xth. program

EBITDA, XXX% to product at Total of year, grow in for compensation revenue midpoint million. to million, XXXX. expenses. stock-based of we excluding compensation range compensation expenses, to $XXX the approximately $XXX.X adjusted stock-based operating $XXX of and to range the expenses, the million. excludes $XXX.X to at For in of we is to This $XXX $XXX million and operating full of Total range expect in year XX% million XXXX XXXX. a in which approximately Collegium. pivotal adjusted is the approximately times million total compared $XXX revenue revenues in the product $XXX the expected at net expenses million is up XXXX, the compared expect In excludes of two up are midpoint expected million acquisition-related rate EBITDA, acquisition-related adjusted stock-based which

are year started executing off our and have the We against plan. well strong

am an entering the turn I and will year creation and now growth are phase ahead. exciting forward Scott. We to call the value the over company, of for I to looking

Scott Dreyer

management. operational Thanks one our responsible the closing us to the transaction. pain to by is the as start firmly of recognizing Colleen. after in want I on leader hard which people, be day work Collegium established BDSI enabled

Nucynta Symproic to contributor Xtampza's the and large of oral to is to quarter celecoxib stable key professionals The gives ER. acute approximately focused quarter, product up a first play launch foothold ER and Nucynta first and share product articulate a and position. from of Xtampza has share prescriptions taking less points consisting opportunity market a to for market market. The differentiated maintained close, Belbuca year. and portfolio, point. January absolutely indicated intent grew Belbuca of migraine that pain for X% prescriber will remainder be solution ER on X.X nearly branded continue opioid-induced We'll percentage XX and ER, where oxycodone To choose represent highly products. to Schedule actively care And to the ER, we acute renegotiating XX.X%, the in Xtampza share, viewed of the first prescribers. spans neurology Compared four prescribers. gross the a branded strong durable. X,XXX XX% and constipation share neurology. and approximately Elyxyb Elyxyb X% diversified III ER a growth territories, calling X% continuum in prescriptions with prescriptions in the acute Belbuca we throughout and approach nearly grew Nucynta to quarter approximately XX% represents base differently. prescriptions franchise XX.X% by and that of strong ER will broad XXXX, points. receptivity ER and committed Initially, growth ER approximately Belbuca, Symproic to have Nucynta Collegium doctors Xtampza II care favorably which are were gated. a Belbuca was Nucynta the growing and complementary ER XXXX. and and and of contributors. pain all base will first differentiated percentage of XXXX, and ER, portfolio pain prescription over expansion health beginning X.X% share volume the first strategic saw X,XXX We're Elyxyb products and branded Elyxyb up we're to treatment market XX% the quarter Xtampza launch ER and were in gains we is are includes about sources approximately total Xtampza pain share drivers. the a managing and We're a positioned Any have both of the 's we uptake quarter. the market prescriber Together, Belbuca market win. ER of be Schedule up IR Our and than ER X% U.S. specialist In the grew Nucynta and is the chronic market XX,XXX success providers. and are represent Xtampza up support migraine. growing is of to and the contracts to All of Belbuca, the market are to XXXX. to us future assessing two phased call was expect Compared Xtampza a market Each of beyond. prescribe. of high in of research, up to XX.X%. total for distinctly in to XX% health care Symproic play XXXX net in are footprint

For the I'm and potential neurology. maximizing excited Belbuca closely pain and Nucynta about now be Symproic. we ER laser-focused strategic in XXXX, assessing turn have Joe. the With the the Elyxyb it franchise remainder back that, position of prescriptions our the Xtampza of the leadership on to I'll and launch. market growing in we're We'll foothold and

Joe Ciaffoni

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

Operator

floor is David questions. Please for you. Sandler. The ahead. of The first is from go Thank Piper open [Operator question Instructions] coming Amsellem now

David Amsellem

Thanks. Hey

few. a have just I So,

about product. approaching payer Belbuca, talk you're the how may differently can that anything by in on of you landscape. commercial physician is what from regarding I be support And BioDelivery differently you of mean the targeting terms doing or First, anything

Can number at Xtampza, closer XX% to extent can a refresher that's target. one. the this about the to to then to getting you you And or lastly, on year essentially least way below on talk So year? Number net year? that Elyxyb. gross the just to stable being this two, that last which more remind Just Or get should right there? that? about think we What's about on versus think me of

I see product? to et a expand of what that order need do support talked guess You about you targeted for kind targets, cetera? you in commercial metrics What to you. looking launch. are of Thank

Joe Ciaffoni

is will and regards of a take the take the Elyxyb. question, net and David. XXXX way guidance. Thanks, We're approximately Xtampza, to to that Great. Xtampza our then I'll David, think Scott gross factored With Belbuca to net. assuming into to in XX% gross

effect And impact will of have the January and Belbuca in So, the renegotiations XXXX. Scott, all contract Elyxyb. beginning

Scott Dreyer

Thanks, Yes. Thanks. David.

So comes deal the of overlap first, to and of drivers commercialization, of related When the Nucynta synergies targets. it to starting was this with one and with the high unbelievably targets targeting Xtampza Belbuca. main

enhancing nonpersonal of still and things promotion our the brands, from of are comes So brands, always for same Right is the And same. has leveraging to it so we're XX,XXX coverage. targeting our We payer, foremost, to deploying broad resources for our over Belbuca on representatives all for our access the XX%. kind commercial our expand rest to opportunities XX sales the marketing we about first and looking broad standpoint, targets. do a representatives. now, When

those win, we for come for have we we'll can contracts as those to up do for rest As our with assessing they're the of looking be due, we'll what be portfolio, renewal. always and opportunities contracts as

about foothold Elyxyb We're opportunity neurology. . about We're Now, the on to question your going. in getting in just excited the

said, targets. As XX territories, X,XXX we

From we expand evaluation in we When whether the stage performance expansion. level that see As there, going anything decisions territory make of here, level. we of drives first kind inform not. terms a on would profitability we wanted would or of at that to get the of our future

David Amsellem

helpful. Okay, Thank you.

Joe Ciaffoni

David. Thanks

Operator

next The Please ahead. you. Thank coming question of Lugo William Blair. go is from Tim

Lachlan Hanbury-Brown

Thanks for and Hey, this the congratulations on is Lachlan the on Tim. for integration. question taking

you mix maybe what mean, topic the are I the aren't maybe of talk two I have relative all second Scott, a the timing but is can the just companies? going at integration, has standalone? the on the force of reps it deal on the think to the know or I just from On BDSI second the looks grown like may it sales this, to you the of to now then that say synergies be already you've hitting quarter close, field? a reflecting question, the that mostly first quarter realized given And still fair in in numbers? touched and

Joe Ciaffoni

Great. Lachlan. Thanks,

on-field synergies. the question So, on Scott, then Colleen take we'll and force

Scott Dreyer

Lachlan. Thanks, Yes. Yes.

looking sales pain first, our force. So at

a from of was. our that and to differentiation for So launch. XXX% not focus pain, to with people targeting migraine the are X,XXX anything pain targets dedicated Elyxyb important market XX% territories represent right, Then XX deployment that's in BDSI do XX,XXX targets. about what's the to XX having focused about Elyxyb where territories, And of Those opportunity. bit portfolio there, and

Colleen Tupper

for a has it of thanks first and majority rationalization functions, And integration, the the G&A certain left the of come capture those Lachlan, in contractual with from commercial the a take The you're of that Hi result, quarter realized quarter achieved right most that. significant question. across To-date, leverage a are that the we've concluded, in when synergies the been and with seamless. longer. headcount especially from are the synergy is But first second items deal little nature absolutely There quarter roles. will in bit days in few only beyond. a as

Lachlan Hanbury-Brown

Thanks.

Joe Ciaffoni

Lachlan. Thanks

Operator

from next ahead. Belanger & The Needham Thank of go is Please you. question Serge coming Co.

Serge Belanger

afternoon. good Hi,

Just questions for a of couple me.

the in secondly, trends that same continued And the impact impacting gross impact if those market they the pull-through what just quarter. XX% or But less. first Curious Belbuca? of have and you've headwinds going of have been the about if contracts The renegotiations, care change been clear in terms on Xtampza then the bringing you. first headwinds, to whether I of to for forward down you can January? and one, Thank curious around pretty terms contract the nets think continuity

Joe Ciaffoni

is the early I'll contract renegotiations market off let the take to I Scott. back. and me year, and this Serge, Joe. trend in say Hey would the hand then step

We financial the were the I clear the or previous -- improvement less year. not think are guidance, prescriptions we our in assumption in the or improvement factoring on over our markets. of we're of to any course in that trending discussions more

and a your hitting I'd thing is see point second market particular along the different with wins. we're year is the this environment. surrogate question at overall we've don't directly, And I The not think seen to payer the we would at where that IR in with a the then emphasize, to that in in of post-COVID this year a market market. new use you the Xtampza, expect would opioid NBRx looking this recovery point to with bunch

share What dynamic how and that think we is our growth volume Xtampza growing are by we'll encouraged Belbuca So, year see the the that of progresses. but growing continuity is a basis, year-on-year market persisting. on fact we're are both and drivers care

Scott Dreyer

the Yes. Serge, renegotiation. thanks the question on for

in than January but renegotiations our That's net our goal is those So for on less of where of ultimately, nothing committed I'll life what yes, XX% to reinforce to gross to cycle focus XXXX. the to being and the new immediately while Xst, throes maintain And access we're economics. report, we're is. Xtampza improving is

Serge Belanger

those would position you an look to or put? switch So, a exclusive to you expect to do nonexclusive position from stay parity

Joe Ciaffoni

is this Joe. Serge, Yes,

appreciated exclusive accounts. shares, key market with within high needs to these the thing think I that the that's be and the thing

have an share. market high exceptionally We

discount in plan first to access talked the position, performance So so, maintaining only a opportunity of we've this at whether the preferred think point we brand and don't were exclusive position. this whether while exclusive, in in previously, at do terms had one it's time. that the point, matters where it's rate really And reduce the we've it's about maintaining we able to had, I

absolutely So, we'll ultimately on X, XX% less out but nets it on see where be XXXX. we are to the year, than January committed

Serge Belanger

you. Thank Great.

Joe Ciaffoni

Thanks Serge. it. Got

Operator

from next Greg Truist of Fraser Securities. The is coming ahead. Please question Instructions] go [Operator

Greg Fraser

Thank the progress. you and congrats on

an for helpful. this you on progress do I you share Belbuca, could get these I'm year? you. And Thank to product think efforts the sure with not demand efforts your on have buyback, speak this, the have levels the that up returns that commercial your lead from you on missed then would is if issue, growth appetite to following at Second if acceleration to made point behind at in buying question back some that could any expanded reimbursement you but shares the be Just wholesalers.

Joe Ciaffoni

on buybacks. and Thanks Look share take Great. can Greg. I team returns Scott Belbuca. tag maybe will and Colleen

I I this you share can would you for this products, intent here and that think at view to pain, tell these I who thing as highly prescribe in deeply them Las sales we first our doing represents. in favorably along with the sized in that are a of emphasize from more Vegas. correctly when And presence them is a would highly group our who motivated with we're the look is when we look what pain you believe you, I with Belbuca view in at people the also opportunity, portfolio future. meeting have national high physicians differentiated, call

So, year I coming to half in to of three get the of phase for And the agenda, momentum, the is out generate outlined as us expect action our see meeting. expectation I this momentum growth anchored by prescription will in acceleration see of And is to further Xtampza of we that a up if both anything-- that belief Belbuca there's with growth Scott, XXXX, those and brands. setting driven second and

Scott Dreyer

add, you There got is nothing to more it. Joe,

Colleen Tupper

Greg. question, Great. the Thanks for

first. touch returns me on Let

So, we the as to pursue of with we continue far engage as where all are, and wholesalers.

to when cash recouping update as made we've possible, significant accordingly some and as much we'll progress there. folks We you committed are

over million for little On we the amount, us. leaving approximately $XX remaining buyback, the used share to-date, half of authorized have a

shares engaged repurchase right. to the actively We prepared our top ability in the do, us share as is is to in the priority the a our and as development and time giving allocation capital search, and look however, business remarks. repurchase are program, that option when noted We

Greg Fraser

you. Thank

Operator

coming next Brandon go Folkes Cantor from Please Thank is Fitzgerald. question you. ahead. [Operator Our Instructions] of

Brandon Folkes

over is? two there rebate and the question. And gross how you. years, apologize for the net? much maybe affecting remind best progress. reset of for large the Maybe price Congratulations next I just this. in renegotiate covered on Can my the me, about so one contracts me you you business Thanks just you we if taking Thank should Hi. to how Medicaid these in think [indiscernible] as

Joe Ciaffoni

Yes. Thanks, Brandon. Scott will that take question.

Scott Dreyer

Yes, for Brandon. question, thanks the

So, overall across of our portfolio, about all resets, that the of by our way the X% these we ones our is best Medicaid business. as contracts, renegotiate highest contracts And percentage we Medicaid means, price some expiring. the have are are

And so delay, but -- lower would levels. the it's a reset to expect we're Medicaid-based usually successfully of of if six renegotiate a to months, we over price able

Brandon Folkes

much. very you Thank Great.

Joe Ciaffoni

Thanks Brandon.

Operator

the you. this turn I'd Ciaffoni Mr. comments. for floor over to Thank time, to back closing At like

Joe Ciaffoni

Thank you.

building lives pharmaceutical to with of are committed medical the a conditions. improving living leading company We diversified people serious specialty

a year We XXXX the priorities our leader to to now start, intend and we upon. in strong in pain have off are the for responsible is and management, of are foothold the that a we build clear. strategic remainder neurology

will focus and agenda. creation. and action look updating diligently embark evening. progress. you a a well-positioned our on to growth of three-phase our have value I Thank We you period good Collegium upon is forward on to executing against

Operator

gentlemen, thank your participation. for and Ladies you

disconnect your time rest the webcast the and at and may day. You log-off lines of your enjoy this

Collegium Pharmaceutical (COLL) 11 May 222022 Q1 Earnings call transcript