COLL - Earnings call transcript Q2 2022 | Collegium Pharmaceutical, Inc.

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Operator

Greetings, and welcome to the Collegium Pharmaceutical Second Quarter 2022 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Alex Dasalla, Head of Investor Relations. Thank you.

You may begin.

Alex Dasalla

Second Earnings Pharmaceutical's Call. Collegium to Quarter Conference XXXX Welcome Relations Head This Dasalla, Investor for is Alex of Collegium. Officer; our joined our Colleen Financial Chief am Executive Scott I today Officer; Tupper, by our Commercial Officer. Chief Joe Ciaffoni, and Dreyer, Chief

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

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

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

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

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

Joseph Ciaffoni

lives build of remainder Collegium, medical people remain mission the to conditions. specialty discuss with our company committed on first to leading some the on of the QX for the XXXX and call. and diversified pharmaceutical outlook afternoon, Good our thank year. improving of half you, we Thank a everyone, you, our and joining Today, living the during will performance provide for perspective focused we serious Alex. At

with second Scientists, and the nonprofit to school $XXX,XXX fund STEM mission continued disadvantaged Science will communities whose we Science Collegium's the Scientists from from quarter, the where improve live support upcoming STEM for in partnership communities a year. programs literacy. to to donation Collegium During our through work multiple is

to dedicated growing for our creating are delivering on We business and mission, our our shareholders. value

XXXX We thank will do commitment and maximizing operational of hard to strategically to achieving financial investing my their significant, half near-term with deal people XXXX priorities. their is for we for potential dedication as that in this in recognize Collegium Collegium. serious goals them our and medical by management. conditions. We In a a growth. and for accomplishments long-term differentiated year, our work the financially the our were want and to organization living track achieve and our to first on leader establishes responsible pivotal the BDSI, are colleagues pain our year transformative our I acquired of the portfolio,

of first contracts with that half We first $XX the achieved Belbuca operations the track approximately the million. all We Xtampza record seamlessly synergies of the volume Belbuca second We X growth promotion. grew on quarter. XXXX. QX, in Xtampza ER acquisition, revenue we targeted readiness, to ER least run day record drivers, prescriptions. of renegotiated achieved in close our of and and integrated at our commercial Following revenue delivered prescription net with exceed quarter rate We versus are represent full XX% of

opioid net all achieving and XX a undertaking I, than gross beginning other We by We are in our master absolutely remain XXXX. and of to remain resolving a settlement action awaiting to States. laser-focused final completed. industry-related now on agenda. was January cities, company subdivisions committed Phase significant executed plan successfully And against pending brought less X-phase XX% decisions in executing Integration, we United lawsuits counties the and the was Seamless agreement

targeted Phase of to EBITDA we July, meeting coupled execution. we structure late focused result, with track rate that raise run a Generate a Momentum. fully transitioned guidance. we XXXX trained confidence Achieving forward commercial and commercial synergies on means synergized engaged May, on to to II, at our in-person gives successful least and are us X In national a a adjusted As day cost exceed have are with sales $XX organization moving million readiness, in now

renegotiated, managing be gross The positioned remain the decisions half to the year. absolutely XX% and Belbuca Xtampza to III, Elyxyb year. planned faster ER we contracts in prescriptions launch of grow second the fourth and be January been beginning In ER well are net committed informed XXXX, in remainder Xtampza the XXXX. less Accelerate. synthesizing and expect underway, than learnings on in We to we we of is We for ER to will will have the Xtampza Phase to begin January quarter.

Xtampza see the an of and and line impact growth, gross structure. we Xtampza synergized year by growth prescription cost that will Belbuca the is acceleration full of expectation Our and ER propelled net, top ER improved bottom to of

focus is to deploying value create capital in for shareholders. singular Our our

is top priority Our development. business

conditions are committed We potentially a to we deal a are current disciplined taking conducive approach, to done. believe but getting market

evaluating of actively million. greater commercial-stage peak opportunities, potential are than sales with We $XXX

into that assets and exclusivity are XXXXs. the are with for runs that looking we Importantly, differentiated

capital Our a strong allows focused disciplined financial us position manner. and to in allocate

investing financials. I create in shareholders. business long-term We of of the for for value to a our to growth call the our strategically now to hand over Colleen will the are committed discussion

Colleen Tupper

a remain was QX to completed operational of million exceed of seamless rate ER revenue the revenue, for revenue Thanks, Belbuca and quarter we of a of XXXX. QX record million. Joe. forward. Good Belbuca was $XX.X was total quarter at run least the for XX% was This strong is the on was record quarter product synergies financial of targeted and from stronger full include Collegium in that integration, the $XX.X everyone. will XX.X%. million. million track record second or Collegium. $XX the generated a moving Collegium net strong net We a Xtampza afternoon, first revenue highlights for a position $XXX.X quarter in second quarter get for quarter, part an XXXX. it Xtampza was gross second was the second the the increase revenue of to quarterly net ER portfolio, product. in Financial

from the quarter Non-GAAP of EBITDA XX% quarter the loss million was expect million to second in compared second the the was expenses, quarter the year, adjusted in second an quarter, $XX.X gross quarter second expenses, XXXX. net $X.X with quarter million. million net were includes stock-based Income compensation quarter. for XX% was increase the in stock-based second Net from expense, of some of $XX.X and $XX.X operations million from a press which $XX.X quarter were XXXX. in to of to versus we For release was $XX.X Nucynta full to acquisition-related around today to of excludes quarter. revenue reconciliation expenses, non-GAAP million franchise second Operating second issued the in in earlier the a record compensation results. the second second Adjusted quarter operating $XX Please see the for million for quarter $XX.X GAAP our of which lumpiness million XXXX. XXXX.

of June million. XX, cash was As balance XXXX, $XXX.X our

debt. million paid off quarter, in $XX the Collegium During

end net end In posted that Xx and at be in by performance. leverage expect we the this operational We delivered the record QX, below of with year least million will $XXX solid cash to year. our revenue and estimate

OpEx. We track is forward. rate moving are that grow even in the acquisition, BDSI exceed annual targets Xx to get synergy stronger Collegium on than we the adjusted of revenue to greater strong expect for position a financial and at will

Moving to financial guidance. our XXXX

For integration, million adjusted to revenues of the EBITDA expenses million. expect we adjusted we are operating from updating range million. in expect operating expenses continue and $XXX Driven of adjusted BDSI XXXX, $XXX greater-than-anticipated We in range $XXX by total the synergies to to guidance. $XXX product now the our million

EBITDA and BD for increasing the are shareholders value our disciplined We to $XXX focused expect on finance development. near $XXX through range adjusted of focused deployment, now capital creating business have adjusted remain for term. remains we to total flexibility our priority EBITDA top million. in We and transactions and million additional significant guidance our

by balance fully loan in and rapidly deleverage $XXX XXXX will We down debt our March by term the XXXX. sheet, Pharmakon million paying paying March

We by the authorized return $XX capital than opportunistically remaining more shareholders, repurchase a to XXXX last share option million have with year. program to million Board is the on for also the Collegium. year $XXX pivotal

in is business a Our financial solid position.

I value now will We and over are to strong. phase turn of on in finishing growth it Scott. a XXXX focused are and creation

Scott Dreyer

less by Phase Thanks, the focused against Generate our Momentum, progress year, Colleen. established commercial ER Xtampza XXX% XXXX. Xtampza ER renegotiated we're gross to Belbuca our in the January XX% of we II than Xtampza first ER allow and of made plan, now in leader as driven net the our action and of to growth management. that key and the of firmly prescription remains meaningful us on finalization pain to priorities, In responsible contracts half bring will Collegium

to differentiated Our both ER, IR differently. are Nucynta III products and the favorably distinctly Nucynta sources health positioned ER spans and Schedule continuum product Belbuca, pain by and All from viewed pain care is products. providers. portfolio of X chronic comprised Xtampza and of highly acute includes care Each II and

All pain products access market coverage. broad have of our

to this grew for Xtampza are company Collegium Both maintained for both half XX% for market growth. grew and products market Belbuca in year, of ER. have the share of the We bases, space. is the share and growing first positioned pain extended-release market and large now the active the our portfolio Xtampza share we promotion only branded ER ER During with prescriber Nucynta of and market. and volume Belbuca ER and

base base broad franchise to And share second of and stable was with X% quarter, base the a Belbuca's professionals. Nucynta XX,XXX prescriber strong was stable health Xtampza's contributor During subscriber to market broad a The X,XXX in X% approximately prescribers. up care grew second prescribers. XX,XXX prescriber quarter, and the

X-phase play, Elyxyb us Belbuca our we'll strategy are messaging we reinforce sales We're throughout uptake choose and product the distinctly and win. XXXX. fully to be bring days of operational. agenda, taking to readiness. resources quarter, for our ER In focused to action national approach, Xtampza and day execution. and completed to and We'll positioned enabled the now a we promotional conducted for launch and where assessing which new successfully focus commercial we I receptivity team differentiated X to the achieving to play in of the and on portfolio, meeting, May, During Phase launch the a phased and We're together, early

the focused ER. and content of We've materials our the launched Xtampza and nonpersonal remainder sales new on representatives Belbuca new for growing promotion and marketing year, For we're channels.

expect execution fully Our our and Xtampza on focused and plan, pain of ER sales Belbuca is growth. trained, force drive we prescription to

XX% approximately net I'm in plans, occur complete. Xtampza representing XX% contract Phase contracts to managing I'll awaiting which beginning action final that expect absolutely to call will ER in we than that generate prescriptions now in turn of quarter. decisions January are to We're for Our fourth to Xtampza the gross agenda from for of us and accelerate renegotiations XXXX. confident we're ER Joe. Phase position the across We're committed taking less to II our the back of momentum III. now actions in

Joseph Ciaffoni

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

Operator

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

David Amsellem

on Isaac David. is for This

Just a couple us. from

that any with on contracts and you'll to a year? you then Xtampza, regards appreciated. but on then So able And what get got know I've I few And to this guys net next confidence helpful be front the would by follow-ups. to XX% be super for briefly this to gives down touched gross renegotiating you color

Joseph Ciaffoni

questions this X those I'm Okay. to to is going off pass Isaac, Scott. Joe.

Scott Dreyer

At informed the those November confident our on point, Thanks, Isaac. Yes, I color of other complete. be that Thanks. type give in quarter that than make. question. those and more we are the what I much the We're will plans this of and conversations conversations, fourth not during can And so appreciate the we be update call. an will giving some negotiations choices accomplished the

David Amsellem

clear too, but pretty Okay. on BD Great. guys you on -- mean you it's this flexible. touched could that down guys I come I and more asset briefly, M&A. prices have And you and know are then be

front. You your this I have is on -- balance mean sheet flexible pretty

the on a sales And walk latest product were thinking you pretty like does business? last and that asset Elyxyb. M&A is you But there? means early for the -- the preference of diversifying about through your can second a it regards the development-stage you neurology got here? have to this then minimal I asset And performance on your regards impact a in know a on question the mean with being phased and talked just or guys taking provide IP runway So any we've with to the commercial-stage I can quarter. your it's metrics launch. us looks thinking as and

Joseph Ciaffoni

is this question. about question. perspective our how off with Isaac, I'll little bit capacity. Colleen Okay. to the on Joe. BD, broader then on a hand off we follow And a Thanks Elyxyb to Scott of will think the start it for up talk

thing one, all we're about the at, first I we which through BDSI integration, think where the that important. So with essentially emphasize would activities we're associated the is as

itself we're in we're to where ready presents So take it a an on. position if opportunity

From been market a potential, $XXX in over potential strategic As reiterated commercial-stage assets you for said deal our the view, my comments we couple a sales looking to certainly of different at as the years. as potentially in done, much I we're question, in it's look than getting current and peak over with your -- past of what perspective, million. dynamics conducive

runway, terms of is XXXXs. have into In an the assets Neurology Elyxyb. we're with for of runway that that launch certainly looking like, the we adjacency

a dynamics will also focuses the favorable the a opportunistic we on be have the runway that be and perspective. and from market small meet leveraged, bigger assets commercial there criteria We sales that peak but group could given

Colleen Tupper

Colleen. Isaac, it's Joe. Thanks,

the be say for to forced but ability position So have we're deal. a not suboptimal continue hunt privileged I'd to into strategic a in to assets

to X market And immediate, raise term, are EBITDA. were have are below. have commercial dynamics Xx would debt comfortable about we ability of be if ability we net sorry, to the our ratio equity or at if we and focus, Given the -- not a use be that debt deals our And supportive. looking near with the positive then to

Scott Dreyer

launch. uptake too most excited we're in now we're we're Yes. glad It's the just foothold we'll about neurology. win Thanks terms and to early those And the getting is what to all XX and the developing we're we're draw decisions. of that territories. Look, on we fully started, continue playing, conclusions, from then operational there in lastly, Elyxyb question. rest but first-phase we're through a of any playing for do and we're in in, any to Where expansion monitor year the are the decide to what

Operator

Our next comes question Blair. from William Tim with Lugo

Tim Lugo

revenue? talk around going maybe that how moving magnitude and volumes to XX%, to that be about to profitable, kind And you of and it us then And that's but directionally, more the could regarding us directionally of profitability. GTN impacts kind obviously, the give idea an of

Joseph Ciaffoni

Yes.

little from a talk about Xtampza the of I'll we're of perspective. Tim, expectation renegotiating account XX% for about So volume bit a Xtampza contracts prescriptions. The

by the we're commented, with discussions we had very payers. we As encouraged the

talk grow remarks, Colleen could And maintaining about gross is, said Xtampza margin. also objective XXXX. XX% the on bring foremost, question And a see Xtampza. less in the not only Our to net first in also while and to but little than access for your as to we XXXX expect prepared to bit in we

Colleen Tupper

for the Tim, question. Yes, thanks

net full down know, on Xtampza last And drop to significant gross -- XX% from full to actually of to net. we're XX% line. year ended XX%. [is] year on gross a year dropping with We tracking this year bottom we're you perspective, a the to a As

Tim Lugo

just to volume? And will is continue Or when say that revenue? to is that you Okay. grow, be clear, Xtampza

Joseph Ciaffoni

both and volume on Tim, That's statement, a revenue.

the So improved XXXX, be additional there be and to volume gross we will propellent to an growth expect in net then to revenue.

Tim Lugo

kind get the about just little at the just a might of days? availability were around us maybe but for color you the attractive year find than give obviously, that tighter ago. dynamics Can of debt the markets mentioned and given And you some what least you be debt Fantastic. Okay. talking of BD, a availability market debt, they these

Joseph Ciaffoni

Tim, I'll answer to question. ask Colleen that Sure.

Colleen Tupper

one an eye on we acquisition there we'd and on. finance Tim, increased. yes. landscape move to that But when to itself presents cost of a Yes, we're make do capital keeping close are a ways has debt, advantageous like still the believe

but term there. all could a You we're envision looking arrangement, options loan-type at

Operator

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

Serge Belanger

Joe. first for the me. for one couple I A guess

the the would the you assumptions think improvements guidance start the one no be year, in the in terms headwinds that were I gave main when there is of Xtampza. affecting of environment of at market

that if second year. outlook the the strength for looking offset of has kind individual just in And changed on curious product looks the in basis, Just like Nucynta. weakness the half Belbuca then second quarter it some of of

is strength Belbuca that half? if the second curious Just for sustainable

Joseph Ciaffoni

year, the not guidance question our environment market we first take the hand one pre-COVID Look, your perspective. to Xtampza address into the And were let second I'll a think second and both that from has built of I'll off Serge, to the dynamic. continues a Belbuca And market I the this in half be growth of does appreciate But off to Belbuca the half for set the dynamic improvement perspective, we the And expect it you improvement question to any do to and point levels. see to the would from Yes. your numbers year up we to specifically. in of trending, of and pick said question. choice. pain say Scott. a the when Scott any year. I volume we're the it have The we guiding had second factoring be market not to, that of to proven the market in wise year,

Scott Dreyer

Serge. Yes. Thanks,

as and comments What we're second training base for line of When to by was a came in cross referring We're it at some we Belbuca. the yes, expectations. on transition Belbuca growing we share prescriber a in standpoint. glad we strong market look there in and second Belbuca year, position, through half the of the very strength the ER, of half, revenue your positioned the that a performed from maintained got when trade-off. differentiated It's a now about well at our highly Nucynta there to of base. to you excited look grow quarter, integration. And prescribers, for we Nucynta lot with the you're we're thought of So the kind Nucynta second saw and strong market is

of we we're we by So half. second sales momentum meeting, out think our the really can in build encouraged coming

Joseph Ciaffoni

franchise, the historically Serge, more second And things only I year, Joe. this the you prescriptions you and what would of deductibles the reset first look we when and past like Nucynta other that, the quarter which add is The you to thing the get see. at is in would expect stable when is half see of

Serge Belanger

come the individual And like contracts Does guess Or plan opt or to mean on I just these one have that the of still It this more option are you're complete else these and at plans could sounds waiting renegotiations awaiting? that you're Okay. out out renewed follow-up. of point decisions less what contracts? of decisions.

Joseph Ciaffoni

question, great Serge. Yes,

done. is But get to will XXXX. the less maintaining where at, we that The rollback be in look, certainly bids gross while that ER submitted. a access we're beginning outcome our are than Xtampza striving we're in any perspective ER. rebate of January the So negotiations for from net The XX% Xtampza are to event,

We discussions call. the when forward we to the think we we very we're and are able fourth had looking we're by being on the to of forward encouraged our reasonable communicate ER, the Xtampza negotiations. that quarter value bids get decisions put given So very the during

Operator

Fraser from comes Truist. question with Greg next Our

Greg Fraser

Just a last the on follow-up question sales. about quick Belbuca

relationship that of good use sales if prescription look between forward? in there a should Or onetime and number quarter? is curious sales any items the we the at Just going sort to are helped

Joseph Ciaffoni

Colleen?

Colleen Tupper

co-pay event, to some the but for from that Collegium. and the Thanks a necessarily the changes business, Colleen. did co-pay that, benefit harmonize with Belbuca across a question. wouldn't it's I programs program onetime few of say made had we definitely harmonize with Greg, a we consistent

see impacting second gross of and quarter. the Belbuca the expecting we're that favorability some to to percent, mid-XXs stay So in low you to net

Greg Fraser

Got it. Very How helpful. --

Joseph Ciaffoni

The of I'm color. referencing that is additional revenue point sorry, Greg. a One is benefit. Greg. benefit Colleen

don't bit of year. the of expect probably also to a prescriptions effect to as We the a harmonization move that on had see we little pressured that half second believe we

Greg Fraser

Got it.

the Okay. has what How tweak been messaging do you Belbuca doing? BDSI on relative to

Joseph Ciaffoni

Scott?

Scott Dreyer

that's would the for not on a I the message, platform messaging Yes, It's Greg. say, it's training thanks place. in strong a tweak.

on So came able in fourth as you the a do in to at through a the integration. if for focus national We training we quarter were quarter sales the we we we It meeting. And brand. then excited at were that event second of really people messaging force, the harmonized remember, live the Collegium. sales then through thoroughly went was an our

we II, where now that for is position have we're III So dosing range with a a patients. forward Schedule provide in half. that And a Schedule great the broad versus going differentiated, of product second a that's focused clearly can efficacy

Greg Fraser

Got it.

Okay.

prescriber On would Xtampza prescriber reason clearly. the curious there been base, Or think you if the broad? growing to that it much be a to Belbuca base, that the as you've is it which Belbuca for base the is size I'm of not that eventually expanded grow larger.

Scott Dreyer

not hypothesize wouldn't And in is total XX,XXX encouraging which trend Xtampza, slowing. to on almost you the last Belbuca as I size it's X% But of that's absolutely, said, prescribers. X,XXX Yes, quarter is a is, prescribers. at growing, the consistently what's getting

continue So I to prescriber able the grow to we'll believe be base.

Joseph Ciaffoni

passionate are And is is organization, add it pain. there in Greg, Belbuca, belief and aspire strong more often our of be would a than the used have III and thing Schedule that a as the far absolutely treatment only I we should product,

expand So the story we certainly to Belbuca prescriber lot with opportunity there's that, base. a to effort And that will make every known. ensure of is

Greg Fraser

Understood.

if and been prescription many declining on off you the have curious health level I'm that. do The And market of just thoughts is a terms declines obviously moderated a has for in picture on bit. but When the market. Okay. years, could the question then potentially bigger market have volume? [long-lasting goods] think you still any

Joseph Ciaffoni

the to to was expect relevant fifth you is level continue so the certainly And as of that at our the Look, belief we market which when is prescribing it early to around identified point a XXXXs. we increased are is options one believe that get Greg. as moderating, drivers in our Thanks, certainly that's of the exhausted should pain have point patients, the position. of in used opioids that believe Sure. only do the should vital we other was a sign, utilization. Collegium and a appropriate product From scenarios, be meaningful opioid of after perspective, those which

Greg Fraser

think prescriptions I the then? market total what's of in terms back

Joseph Ciaffoni

-- XXXXs. in It's we're it lower level total moderate a of opioid modeling, you over early of to our prescriptions When of years. mid- single-digit terms the the see nearing that's in expect get level to to X that we to the more where next decline

Operator

to additional no call now are turn remarks. Joe the Ciaffoni in over I'll questions There back closing for queue.

Joseph Ciaffoni

you. Thank

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

I will in X-phase We position proud our to II, Seamless achievement generate in us January to which Have III action I evening. progress. forward updating momentum are Phase that accelerate Integration, agenda. our executing laser-focused will on we great in our on XXXX. Phase of a am look I, confident you Phase beginning

Operator

concludes parties you. may Thank This disconnect. Thank All call. you. today's

Collegium Pharmaceutical (COLL) 6 Aug 222022 Q2 Earnings call transcript