COLL - Earnings call 3 2023 | Collegium Pharmaceutical, Inc.

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Operator

Greetings, and welcome to Collegium Pharmaceuticals Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded.I will now turn the call over to Christopher James, Vice President of Investor Relations at Collegium. Thank you.

You may begin.

Christopher James

Welcome to Collegium Pharmaceuticals third quarter 2023 earnings conference call. call, today Joe Financial are Chief our Officer; of Officer.Before begin of today Private be promotional, by statements Tupper, pursuant Officer; Chief today remind Securities of we XXXX. the to the Litigation intended and the Chief to our is to and Act any today's joined Ciaffoni, none that Executive our information Colleen forward-looking Commercial participants provision Reform I'm presented that want made we Scott made safe Dreyer, harbor

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

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

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

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

Joseph Ciaffoni

for third joining the afternoon, quarter, thank Good financial banner provide ER a Chris. regulatory our update Belbuca you, Xtampza Thank extension. progress delivering and the in Nucynta Today, you, an the the everyone, and we for call. on discuss and our landscape payer will year, performance discuss on including

our for We will beyond. for of outlook share XXXX the the remainder and and expectations our also year

medical as do of the committed company to well. pharmaceutical do people good specialty improving we diversified leading a strive build living serious with we we lives conditions, As to

to our held students day stem our serve. build XX,XXX they Science third corporate kits Scientists second from the At annual During some we the for partnered headquarters, of with service. quarter, of we

rate the report We results, XXXX and including Collegium revenue to the people, of record I renegotiation revenue positive Belbuca local record to commitment performance deployment we I'd quarterly team the a grew XX% a we recognize quarter at of Pharmaceutical.Based healthier across third XXXX. pleased be quarter year that difference capital EBITDA banner in to for make adjusted organizations and financial year, stronger grew EBITDA.In X% third country of on solid communities. we our quarterly the include: compared adjusted progress that third X.Xx contracts financial colleagues the at to the like will this completed all be position Key our our move of their our in delivered and of maintain prescriptions. it an to will in XX% XX% plans overall will their for of lower While volunteered where communities. will OxyContin. opportunity In that meaningful accomplishments at make Xtampza formulary commitments Xtampza XXXX current ER on the confident Collegium representing its parity priorities. with the ER at level. representing accounts ER rebate will Xtampza non-formulary, are and third deliver that quarter in on we am quarter,

a rebates. We we which renegotiations prescriptions Part successful access successfully expect XXXX.We in contract materially maintained D Xtampza growth drive and Belbuca, total in XX% renegotiated major these rolled to of representing revenue back ER for Medicare

growth period which while down executing debt event capital of our the share for for conference included the We PainWeek, in which in our exclusivity a pain exclusivity largest materially for in and XXXX.We also plan will received accomplishments extending won Nucynta D to as We program, prescription lives. a its million serve growth new new poster on value of revenue and outlook months. positive the in United an These XX% potentially Belbuca approximately the covered from the participated XX, at accelerated XX real-world revenue shareholders and June in Nucynta Medicare XXXX.We With franchise data this improves plan franchise additional and pain included quarter deployment executing representing our marketable $XX.X differentiated over would franchise extend paying the X, to catalyst October portfolio. States, increases representing clinical Part X We December cash strategy, in Nucynta, in patient XXXX with population business a exclusivity repurchase and submit $XX extension U.S. returned pediatric which XXXX on X July year-to-date, Nucynta and ended highlighting of all XXXX. $XXX an to in presentations the XXXX. million securities, on of million million capital that the conclusion XX, entire

half the second to million to We reinforcing authorized our in $XX a into repurchase decision expect program, to enter share XXXX.And us further commitment accelerated of our Board shareholders. a opportunistically capital our return new

capital executing shareholders. are value of portfolio to of deploying We our our the two-pronged pain for strategy and maximizing our create differentiated potential

expect XXXX, along our in at third deliver quarter track EBITDA greater us full we in year.For performance financial with revenue grow year X.Xx that rate. XX% record than Our adjusted accomplishments to and banner XXXX, have to on the a year-over-year

revenue renegotiating accomplishments of gross growth in nets improved contracts Our positioned to and products to Belbuca both payer XXXX. ER Xtampza for support

the financial and our our top remains a manner. enables We capital strength to also growth.The disciplined on focused company development us Business expect in deployment Belbuca priority. strategy prescription execute of

are and exclusivity potential with engaged $XXX sales to and over differentiated We million assets peak XXXXs. actively continued the of fronts on into multiple commercial-stage pursue

repurchase to XX which received, our exclusivity year-to-date, quarter share improved. to June we to our for Nucynta significantly to will driven $XX now outlook. for highlight opportunistically was on in strengthening our This XXXX. Nucynta will the to a XX% to and XXXX we value extension second for ER our that returning repurchase our factored in into which Nucynta stock committed our are shareholders. It to strengthens million our return Nucynta XXXX million demonstrated the believe by business Nucynta program, With revenue case.We capital locked royalty are XXXX extend XXXX. represents event the the pay our pay and We franchise debt, our pediatric reduced extends are accelerated into X, has of by our Nucynta and to on Grunenthal population June that XX, sales franchise is months down XXXX our January quarter.As not $XX accelerated share patient every XX, exclusivity share representing and important additional are outlook Nucynta ER. a call be we continues We program we to sheet further and program that through balance is exclusivity undervalued. we continue leverage shareholders.Since XX% have If earnings this our August, And the will repurchase July XXXX that to new this optimistic that rapid significant completed successful, of for U.S. to December Nucynta base X% from positive to pursuing we achieve gets we

to for in expect Inflation Act We track banner ER as impact also redesign on to Xtampza Collegium. particular.XXXX the of Part have Medicare Reduction part XXXX in is a the D positive year be on a revenue,

and of maximizing deploying pain the potential We differentiated are strategy of shareholders. our executing portfolio our value capital for two-pronged to create our

to will are year, focused over preparing remainder now to achieving the Colleen the in of financial discuss call our the in on hand for objectives the financials. For XXXX.I we success

Colleen Tupper

afternoon, Good Joe. Thanks, everyone.

for X.Xx financial achieve third X% the will adjusted revenue at EBITDA we confident we our year-over-year, are In rate. grew We objectives XXXX. while quarter, grew that

and in to $XXX.X while As debt third down in in its quarter cash operating operating completion up executing expenses highlights which an repurchase the million at program, capital were sequentially the million shareholders include: flows, quarter, expected, we $XX.X on paying returned reduced X% XX.Financial and year-over-year. revenues for product million October share positive accelerated generated third net $XX

in hole also as revenue expected, third As reflects coverage quarter GAAP higher in donut Medicare the the known expense, coverage.

be revenue up we ER the expect quarter was had challenging revenue ER comparator The higher Xtampza approximately XXXX. ER than year-over-year.Xtampza $XX.X a quarter the $X.X is third year-over-year gross third of million was million, was of million, revenue returns fourth we X% $XX.X the given favorable typical, to and the net prior year As for adjustment in in up quarter. in to Xtampza net XX% Belbuca quarter. a record third is sequentially XX.X%

see compared $X.XX quarter year-over-year. in $X.XX year adjusted basic in expect revenue GAAP, and per was net compared ER up to and to quarter, in be a earlier $XX.X to year-over-year marketable period. XXX XX% adjusted was press $XXX.X today and income XX%, up XXXX, basic in in earnings million, to for cash of earnings expenses X% September the prior million diluted franchise down adjusted in net period. our XX% issued million, third we year million reconciliation XX% prior equivalents third was GAAP $X.XX We share to securities. range.Nucynta and diluted per cash, $X.X XX, year-over-year. earnings basis gross million, full up was the GAAP Non-GAAP for $X.XX were million share points down of year $XX.X non-GAAP to GAAP the between $XX.X XX% previous Xtampza $XX.X third XXXX, was the million, the results.As year-over-year.Net EBITDA $XX.X Non-GAAP, of operating expenses share Please year-over-year. X% release had quarter lower than our operating were per

adjusted related XXXX to third We down X.Xx quarter in our to notes. During we debt financial debt to to Xx.Moving quarter, at the year the EBITDA guidance. and end expect at the paid net third $XX.X million our ended term approximately

are commitments. all on track to deliver We on financial our

all We across the are guidance tightening metrics. ranges

range For in XXXX, million. we revenues the product $XXX to expect net million of $XXX

operating million $XXX million range to adjusted million. in of $XXX We expenses range adjusted the $XXX million the of EBITDA expect $XXX in to and

and focused share rapidly bottom-line down our to into our near approach XXXX, in for priority. top EBITDA growth. We And on are Xx over repurchase on of at development paying to strategy. remains the debt a taking rapidly commitment balance providing our put forward in in second second which revenue deliver decreased half the the and are look in to decrease first. second early quarter strong would the XXXX to we January, earnings XXXX.On on our expect guidance track do in call remain increase will capital million would our top quarter to and year-end. utilizing in debt Business to debt expenses and sheet, approximately term financial of locked on compared as which our We disciplined deployment revenue $XXX expenses sequentially long-term value as shareholders to deleveraging shareholders.We adjusted focusing well the guidance August, value at create fourth.We financial are as while program a XXXX third down We same to grew us stated half of we our the continued and creating the for reflect committed achieve year we net through paying

ability delever Our testament cash our generation. is a to strong quickly to

share a share announced share repurchase end returning the $XX into that believe share price at We it we closed turn program. of repurchase shareholders to capital shareholders productive strong accelerated million committed undervalued. view through an capital have of continues and of repurchase of program.Our to October.As we capital program, million are be this today, of shareholders.I And program will value commitment and million we've XXXX, to in repurchase as new to our authorized our generate now We $XX the to repurchase share capital of doing million $XX.XX. share nearly price shares Board of share repurchase stock at we returns $XX our opportunistically $XX average to million million at returned $XXX share deployment, our our our accelerated for shareholders that so.Since program over a X.X bought has of of to Further to track program million per deliver a $XX.XX use significantly reinforcing average share, XXXX inclusive our part our us enter back accelerated to part as an $XXX accelerated Scott. high effective record

Scott Dreyer

In XX% prescribe ER, XX% Colleen. Nucynta to XX% with none Xtampza rated the to Thanks, of and intend their to highly. intend recent pain a Belbuca ER of intend more market. their market be branded their that quality to indicated and research, Belbuca, sales combined At decrease Collegium, prescribing. the management. professionals interactions prescribing Xtampza they Collegium maintain same In have responsible of and research, ER the XX% leader the in share we're proud HCPs ER

improving in anticipate basis stable second conditions.In quarter the portfolio pain We organization and quarter, weekly Xtampza prescriptions saw we year quarter, X.X% the will were medical the differentiated. XX,XXX basis. people is highly ER the disappointing. living what in with year-to-date, quarter, to second engaged continuation a in XXXX. XXXX.While a our total is commercial prescriptions Belbuca And is on have declined, Belbuca XX.X% third revenue of prescriptions around prescriptions Our of committed grew and third of X.X% serious lives versus grow full prescriptions a was Total up averaging which on the year-over-year

quarter For highlight and taking on In results to versus that plans XXXX.Now for XXXX. the working revenue take we'll be XXXX.Importantly, ER at move momentum plans at opportunity, XXXX represent prescriptions on and that and a actions This opportunity, Xtampza report represent the let any Xtampza contributor, pressure growth to it with ER approximately its rebates.In ER the contract will approximately will Xtampza successfully approximately a prescriptions. to removed, of with where a of plans that franchise current no in Xtampza priority all XX% lower was revenue In generating excited stable to was the ER relatively parity overall same mitigate serve continues maintain renegotiations. and rebate. commercial year, be of position contract moment top of the remainder formulary completed plans that pay catalyst ER of Nucynta for grew all a this OxyContin. the nonformulary XX% will in I'm X% as to in a will the XX% this account we've of renegotiations me position ER Xtampza Xtampza a be in

contracts of we've to moved renegotiation ER all overall maintain materially renegotiation rebates. XX% no opportunity, non-formulary rebate opportunity, and that Xtampza and ER's were years, X the any of longer Xtampza we XX% last was of the roll a In to renegotiated prescriptions. position formulary XX% position pay able back Over successfully we the represented Xtampza the ER level.And

drive growth with XXXX, access will XXXX. strategy case our in the ER in revenue market As Xtampza

million Part and the successfully of position were all of we only and mitigating D a Part revenue to at plan, to able major focus in its we renegotiated D formulary pull-through, Our a maintain Belbuca's add covered we is am D.With striving Medicare meaningfully rate.In I wins report now new contract, expect In see that to commercial impact XX% secure Medicare prescriptions. payer addition, Belbuca and position on representing to were changes XXXX, importantly, pleased lives. new able Part Medicare Belbuca, representing growth. lower to formulary we X approximately prescription

Our focus continuing through is to strong pulling and our grow with commercial Part in access Medicare volume Belbuca D.

XXXX. finishing rest growth Belbuca, contract year, for back the Joe. catalyst and ER successful momentum In the as moving turn to focused I'll addition, expanding now renegotiations we towards which the will has both notably to the continue revenue off work for for that accomplishments commercial serve base of of profile call a in XXXX.For of Xtampza the do the It's thing forward. and Medicare year, coverage differentiated most Belbuca.In proud to Part on achieved right the generating this organization clinical the I'm D we're closing, strong

Joseph Ciaffoni

Scott. Thanks,

a to XXXX. banner on are year in track deliver We

the our are For in year, achieving financial we in preparing of XXXX. success the for on focused objectives remainder

taking value We shareholders I capital are will our up deployment. now for for long-term committed open questions. a the Operator? approach disciplined to call creating by to

Operator

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

David Amsellem

here. just So questions of couple a

where more How mean Belbuca, an a to talk will switching asset acquisition an where you acquisition. I'll you versus on the relative find next the where And is on year an vacuum? a maybe to pull then And missed year? important that? on Can gears with about the in in suits don't just will how buybacks? that this get if you, gross trigger on is be net it you next capital it I don't you Do what Xtampza, you I improvement aggressive the significantly about do way net different this. this be? on environment deployment. I'm renegotiations just in think ask do you an So then year And to and gross year just talk sorry think to

Joseph Ciaffoni

and David, then nets come your on I'll And capital first question deployment. to on gross around Xtampza question I'll let for Belbuca. Colleen take the to

Colleen Tupper

XXXX. guess, David, frame for I I'll first,

have for Belbuca, range to for to XX% And the stable. have pretty been and Xtampza, XX%. in XXXX in been nets gross our we've So low updated XXs to

we the renegotiations of we from improvement you for With when the XXXX guidance. in both our those in expect do issue XXXX. early And products, further January update level will we

Joseph Ciaffoni

want to But deliver confident first good the to patient question, I is And track and on with that question to your year regards in XXXX. XXXX this population financial very has emphasize the the thing We're with in We're in important the growth XXXX, year set the deployment, your to. really strength David, Nucynta business. banner of on out exclusivity. to improved outlook really our we new capital

to persists, a intrinsic we we've we've there make clear, demonstrated disconnect I continues priority, think it's has our of but committed really strength.As share between program we're continue you top as pursuit good are And our the that ability price BD debt. use is the being value we're of clear-headed to to locked we would repurchase And a as into be point to company I our of and do have reason is our the been. don't been our the and we deal. And to So is to acquisition actively engaged. so. believe do be know, of very our and greatest We disciplined. the where are think to the leveraging certainly a capital share degree down significant an paying in be glad that

Operator

line the of from comes Tim William Our Lugo Blair. next question with

Tim Lugo

I us what versus revenue to play And acquisition? out? away might how expected to give for levels go are, expected due non-formulary of ER nonformulary sense positions these erode of what to the rebates Can guess, you a Xtampza

Joseph Ciaffoni

Sure, I'll Tim, this is Joe. one. that take

question I asking. think I the understand you're

So on year, with to be ER be net. driven see prescription Xtampza is ER revenue into from any plan prescriptions. look, and being key in OxyContin may accomplished with expect is grow. and pressure we formulary I pressure the formularies is we was perspective, there those Xtampza on will Xtampza put no next as what by what the the And emphasize year where focused and point with as we get that from added. Xtampza From improved removed there gross that will prescriptions we're finish on we that a this that year potential And prescription would was what to removed mitigating

Tim Lugo

give a thought increases. around And that to I performed know the can you what's gross and us something that around gross just traditionally that's class had net price yearly.

Colleen Tupper

take and to can the the you moderated to benefit as the a of and And over optimize XXXX, the Reduction of start to being ensuring tip we of saw increases do the at price. at assess price increase will math we have we price our the we the level the Tim, Act. rebate that given start don't continue that Inflation excess of year bit, around of the in

you So in XXXX. slightly moderated saw you'll see as

Tim Lugo

Okay. one And maybe last question.

plenty programs repurchase going they about these With of in the these but development, you I the sizing, you maybe new for just us just for business allow into did how kind share XXXX. process Can should of the $XX million what's deployment $XX top earlier into think million we room programs? program give capital an insight on repurchase of assume accelerated And year. the

Joseph Ciaffoni

one. take Colleen let that I'll Tim. Sure,

Colleen Tupper

Tim. Thanks, Yes.

opportunistic would our ensuring can on would think where schedule And return, shares there the on the this see that over to which if something we optimizing we're our we the forward. our of loan tool million rapidly delever opportunistically So really back our And And and based to you've remains we've then active priorities. as new year, believe bring say total $XX pull we capital with to total the going and year. program.So undervalued. via allocation there not our in stock will can and/or trigger we based front. million I X-year $XX our stay I to value that's expect this term are for a the it's the continue we period BD year, we that we been shareholders share on repurchase seen continuing the pretty And half

Operator

Needham. comes the Serge next line Our from question Belanger of with

Serge Belanger

just The first Belbuca. if D about Medicare plan. one can the you Maybe Part talk on new

million been improve. Belbuca you existing will Medicare covered the additional was compare secondly, think and had? plans that has to contract extended economics lives. that behind add I to the product? that said does that resources How Part additional it site new about D major Any now And X then exclusivity

Joseph Ciaffoni

take comment I'll have question, for first one, the Scott the the and on Thanks I'll Nucynta Serge. question. then

Scott Dreyer

Serge. Thanks, Yes.

covered plans. that's large XX In some currently terms it And of that Part million regional the across have. your to plan question about what to lives. how D We're X million lives, compares for we about currently

growth. X opens another And coverage to try to continue look, excited adds opportunity it expand what we're we'll is, the about So it And fuel further. to million. to payers engage

Joseph Ciaffoni

will been regards it Nucynta, any the we've that extension result is Serge, to with beyond And additional investment not doing. in what

We clearly, entire committed ER and portfolio. drivers the we'll the continue growth to support. to are greatest and But pain where providing Xtampza products be be our Belbuca our

Operator

from with Our the comes Instructions] next [Operator line Truist Securities. of Leszek question Sulewski

Leszek Sulewski

the Belbuca, is the that the any the patient when seeing? of you then Xtampza, profile X to from Part Medicare do online? D million scripts? -- do have And transfers on First, on what what patient the declining you're Belbuca essentially mitigate And levers come Xtampza for

Joseph Ciaffoni

take will Scott those. Les, Okay.

Scott Dreyer

it those to have the lost where all to when is, erosion, Yes, were lever Les, your we commercial so plans. comes first the the to question, where mitigate primary levers almost look,

overall our effort co-pay a across cost with offsets program have activities. physicians the and marketing push sales the a commercialization big we of our all And through in patient. addition that for so that's lever us and And to

someone unique will move Xtampza, to we is, all we sometimes across mind see vice of In versa. a positioned are the Belbuca in and flows, the portfolio kind each see on the have uniquely But patient a terms space. and brands if of the of means, a fails patients what by and physician

Joseph Ciaffoni

all quarter take then, Les, when months. Part That's with the regards to XX time occur XX% D opportunity Part with D, are XXXX. sets up of for which them in first period. And about really of place, plans the It's Okay. the that renewals

and So that's on targeting. what we're focused

Leszek Sulewski

more in options the there any environment? valuations on in Are What's non-abuse-deterrent also market helpful. opportunities out look And like opportunities in for front. competitive other then, That's essentially me there if One other available landscape funnel current now? market your the the what's BD essentially now? and the look and like not,

Joseph Ciaffoni

Sure.

therapeutically, conditions. stage with we're and look, wouldn't So differentiated we've into commercial done with to the ones where I we've million-plus really be a of exclusivity agile. in we're our pain sales the talked agnostic. able the we're will about setting to the anything Whatever with current not leveraging the asset infrastructure. be peak acquisition this past XXXXs. very We'll say achieve be $XXX in potential profile the beachhead. commercial past therapeutically like we're second to a open going market We're But hits that

creates Collegium. value for we will we lower is focus.In with a and aspire And that strength financial would we continue a fact do for willingness the our seen work engage and shareholders. these a believe get strike look, that don't to comfortable Les with and But urgency. right our to price a have what deal, company until one. to do engage. to now, our We'll we of won't say, we're is of synergy, that's to And So terms I with the lot be oriented we've strategically more deal what and receptivity valuations, of

Operator

time. are now to closing floor questions I There to over back no turn this like further comments. for the Joe at would

Joseph Ciaffoni

updating great progress. we operator, you, We Thank call. thank you, look everyone everyone, to our has hope a on joining and And forward for you evening. the

Operator

teleconference. This today's concludes

at your lines you may this time. Thank your participation. You disconnect for

Collegium Pharmaceutical (COLL) 7 Nov 232023 Q3 Earnings call transcript