COLL - Earnings call transcript Q2 2024 | Collegium Pharmaceutical, Inc.

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Operator

Greetings, and welcome to the Collegium Pharmaceutical Second Quarter 2024 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

Second Earnings Pharmaceutical's Call. Collegium to Quarter Conference XXXX Welcome Officer; Interim Mike Chief Colleen I'm our Financial by our Commercial Tupper, Scott President Officer. Chief Chief Chairman; joined today and Heffernan, and Dreyer, Founder Executive our and Officer,

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

You uncertainties, are litigation significant to announcement incur our be products, all, our risks and the the effects pertaining acquisition the business stock ability the of related we successfully, Ironshore, Ironshore. that to risk or price and to that risks in proposed the the consummation on cautioned our complete proposed not such risks to prevail acquisition so, schedule forward-looking doing may not including be of benefits to we anticipated risks related risks will expense of future may integrated involve business, ability on that to statements synergies may common at and or and/or able the of and and realize our commercialize of we proposed our risks of limitation, to successfully results for terms plans negative market operating related not this the opportunities Ironshore the related future acquisition and without Therapeutics to that that or in current

Exchange company's the the in of risks with detailed Commission. and and filed reports the These risks Securities periodic are other company

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

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

corporate You can release, on press earnings relevant at our including find reconciliations, collegiumpharma.com. website non-GAAP our

Heffernan. CEO, I to turn Chairman, will Mike Interim President call the our now and over

Michael Heffernan

second we'll during Collegium's Thank and joining financial the you, Today, for the thank in quarter an XXXX. our update afternoon, everyone, on and call. discuss progress Chris. Good provide performance you,

to specialty At Collegium, living committed we striving are improving to focused I'd with diversified lives do impact to as people Collegium performance pain and portfolio conditions team do we on the a half recognize to our of support as implementing medical mission the deployment like well dedication of their while in serious strategy community first pharmaceutical their company leading for in strong our good as year. capital the the well. in building of our

and this the half through Our reinforced first results of operational year strong the execution. quarter Collegium's

cash portfolio, and operating drive in year-over-year bottom revenues our the on top a in adjusted X% growth EBITDA robust generate and flows to XX% significant basis continue quarter. line pain We including second growing and

age and and execution maximizing business XXXX positions of us we of the to value the X-month and Nucynta on hyperactivity pediatric the acquisition of generic strength the securing our X ADHD years Therapeutics, attention older. the disorder Hikma Through the are for for The execute central Jornay beyond. Franchise, authorized extension system to or portfolio in this product, of of exclusivity of treatment stimulant commercial a agreement pain Ironshore PM, including its recently deficit nervous people proposed announced

presence poised of driver generate significant is and The PM a million $XXX and for our differentiated diversifies growing Jornay Jornay growth is XXXX, ADHD, objectives. expected and highly our become the to commercial PM excess into into Ironshore all commercial revenue a in XXXXs. portfolio, large asset business the net meets acquisition is our of that Collegium. potential has expands leading revenue development exclusivity in to growth market and

record our build assets commercial execution integrating portfolio. competencies efficiently our core commercial and build we to the proven track closes, acquisition successfully with Once will of to on our and leverage respect

therapeutic area third for embracing portfolio. quarter, team another serves PM Jornay Collegium PM to Collegium. this Importantly, in look Jornay of forward We the Ironshore addition of the to our in the closing as the of a focus welcoming building part as and forward transaction step newest

we by closing of and delivering For Therapeutics. maximizing focused our this business the our of financial while commitments pain are year, our seamlessly acquisition on proposed second half Ironshore integrating

the We that for solid confident XXXX will financial commitments we achieve our are will and with PM, set business, a beyond. the which, along for foundation pain Jornay XXXX

look phase for search on important sharing updates this in growth to ongoing. they upcoming the And CEO our active available. become of as lead this Collegium process we Additionally, forward and is next to

execution Our strong operational continue executive of our during has team the focus process. we'll full the on and this Board, trust

and the discuss Colleen call now hand over financials. to to highlights I'll key business

Colleen Tupper

Thanks, growth, executed Mike. top portfolio our line the strategy the deployment afternoon, bottom XXXX second outlook everyone. In of on generated and quarter for and pain improved we Good capital in and beyond. our XXXX,

revenue of highlights delivered prescriptions record Recent with revenue up We ER Xtampza quarter-over-quarter year-over-year. for year-over-year Belbuca with success to up second our XX.X% X.X% key strong gross accomplishments reinforcing X% quarter in contract renegotiation and Belbuca strategy. quarter, net coupled with include: we XX% year-over-year another grew the of and quarterly X.X% the

Franchise to the the and exclusivity to bolstered January with XXXX. for Franchise, Nucynta December X-month authorized in Nucynta of agreement the We XX, the XXXX, Pharmaceuticals Hikma value through exclusivity extension our generic ER pediatric X, extending and of XXXX beyond and the Nucynta Nucynta

our $XX.XX. of management an repurchasing and $XX.X in outstanding million our to by basis the principal share share capital at Ironshore with previously deployment in aggregate of amount diversify enhanced senior meaningfully flexibility and capital a points announcing proposed our securing and the financing that an strategy, portfolio our repurchase debt, which in of leading reduced Therapeutics, and that Ironshore become notes X.XX of on growth is our of redeeming million for ADHD returning capital average in due shareholders Collegium's large the our the convertible million acquisition of accelerated XXX market all through differentiated product terms program, $XX shares acquisition cost executed with establish XXXX to we price driver, will poised growing And presence attractive including

performance flows. Our bottom second robust revenue, significant disciplined quarter expense and operating record Belbuca expansion management, reflects line cash

in include: and X% year-over-year. quarter Xtampza were $XX.X second quarter. revenues the revenue product $XXX.X a revenue up million Financial the Xtampza XX.X% was record million, ER net year-over-year. X% up XX% ER gross quarter, highlights year-over-year, net second the up in Belbuca net net was second million, $XX.X for to was

We now is to of guided year gross ER net previously XX%. be to which in XX% expect our XXXX, XX% to the range improvement full XX% from Xtampza between an to

also to eligibles. period rebates subsidy paying related the Looking as redesign, manufacturer Xtampza with phase-in the Part for known D small dual forward will to by low-income XXXX patients from Medicare benefit ER utilization

revenue year-over-year. XX% $XX.X operating $XX.X year-over-year. X% down was net expenses Franchise million, Nucynta were GAAP million, up

This a CEO quarter charge transition. the to million $X.X included related

$XX.X expenses operating this year-over-year. stock-based Excluding adjusted million, down and compensation, X% were

$X.XX see reconciliation earlier per diluted share $X.XX GAAP of earnings was XX% Non-GAAP $X.XX was year GAAP non-GAAP quarter was net per and Please earnings basic the results. quarter share quarter, release diluted up year-over-year. second to in today for and was $XX.X the XX% second press on XX% million, million, compared up period. income adjusted prior the the -- the GAAP $X.XX year-over-year. for issued year-over-year. adjusted $X.XX up second our second a share of in Non-GAAP to earnings $XX per basic GAAP EBITDA in

on cash and enter cash strong As acquire another capital execute generated equivalents marketable quarter flows, securities. of of us We June deployment an Ironshore. agreement XX, in million to strategy we enabling to into cash, our had $XXX.X and

Jornay will closing. proposed Under the Collegium net in million PM for Ironshore of acquire cash in will at a if outstanding XXXX. the terms in Collegium exceeds the shareholders all million Ironshore defined Ironshore also $XXX acquisition, $XX of consideration revenue shares additional threshold pay

term consideration new will $XXX Pharmakon. $XXX and Collegium's of $XXX.X our million basis million interest rate of of new loan points. with reducing on to our Pharmakon, our replace loan all-cash cash be $XXX on was secured approximately financing by The hand million this million the funded by used XXX term approximately balance existing from prior

lead for Our us including growth our of reduced new expense months stable, keep acquisition add next a Jornay relatively driver, poised enables that XX funding is the rate an the to PM. interest interest to

addition prepayment the cost term capital, improvement has term, a new of longer in to flexibility. significant also lower more loan and In our the amortization

transaction accretive receipt of including acquisition is to of to to the The adjusted approvals. close third the closing in accretive regulatory be expect EBITDA. immediately expected quarter being conditions, XXXX We customary highly required while adjusted EBITDA XXXX, to to subject

We guidance of are Ironshore. financial impact for including reaffirming our XXXX the business, the of current the acquisition not proposed

revenues to We million. of $XXX expect $XXX net the product in range million

prescription be fueled to XXXX full year in by growth revenue growth. Belbuca expect We

expect We net improvement. to be to for ER Xtampza driven by growth gross XXXX revenue

XXXX some the Franchise with elimination For Medicaid stability revenues a the the in the Nucynta year expect pressure return to Nucynta Recovery cap basis Act, relative due Franchise year-over-year to full in XXXX. of by year-over-year the on a American on we

and range year adjusted with to guidance the the $XXX expect to $XXX XXXX closes. the We for combined expenses in $XXX after to range adjusted of the as We year second half of compared the million the expenses million. $XXX of including in of to first business, being half in financial EBITDA operating lower the acquisition million the provide updated plan Ironshore, million,

million. to on With for expected we in are net the our $XXX financial of positioned commitments to excess the be first revenue financial half PM deliver of our Jornay XXXX well strong in is year, XXXX. performance

part and pediatric our year, the to portfolio beyond look exclusivity including XXXX improve outlook meaningfully X-month and in for Franchise. the achieved Pharmaceuticals authorized beyond this Nucynta to Hikma milestones pain agreement with we we generic As our year, this for extension the due continues in

XXXX pain company of for be our for particular And in We portfolio our D support lastly, will continued growth tailwind portfolio, total to the the a pain redesign and Part Xtampza neurology our to in serve by into PM. bolstered Medicare expansion for ER. Jornay as strength anticipate

shareholders focused deployment on returning down paying opportunistically value strategy is and our to for on business capital capital debt executing by long-term creating development, Our shareholders.

of and every criteria. And integrating transaction, we focused of one Our and PM. meets the development Jornay be will closing Ironshore maximizing acquisition business our on Ironshore each

replaces term the Xx a less our year improved will With that on We loan EBITDA. estimated combined XXXX pro significantly forma based estimate leverage fiscal we new than terms. existing that at net year-end at transaction, secured be loan our

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

of all our strategically balance notes also convertible the and sheet We XXXX senior principal redeeming in total amount reduced cash. $XX.X our by million debt managed

remain opportunistically part program share to price per program our recently We of deployment We at share. share million through through million capital of $XX creating strategy. leveraging average repurchased our $XX.XX shareholders $XXX our accelerated dedicated value an an repurchase as for repurchase

in We have $XXX the million program. remaining

a I Scott will it commercial update. give to over turn to now

Scott Dreyer

and Collegium, Nucynta differentiated the strength our with a products market, portfolio. take management At Thanks, pain the responsible demonstrating of treatment collectively and reach in a ongoing ER for over ER pride Belbuca, unique of pain. leader the ER of we Colleen. Branded in command Xtampza being of half portfolio and

products drive commercial Our organization the our make on on impact focused of people to positive momentum is and living to serve. a pain in order the with we continuing lives communities for

continued marketplace. of commercial in the to second consistent having second prescription second the straight quarter. growth. compared that to this and our encouraged grow execution first quarter year-over-year the prescription Belbuca the growth, quarter the of Prescriptions including strong impact compared marking the by fourth to quarter grew X.X% the in in growth quarter is XXXX, We're X.X%

doses a Schedule and III its with an persistent Schedule broadly. a as uniquely treatment broad clinical that the II differentiation range extended Belbuca used more before requires severe is III of positioned believe Schedule period. because pain of should management product of and We be for products used

is execution. building commercial our care delivering and commercial this to professionals health on Our focused upon team message

access, D Part Belbuca improving priorities push-through include coverage. Part in Medicare Our strong D and Medicare pulling commercial through for expanding Belbuca's

prescription ER in our Belbuca second quarter XXXX with revenue and driven stable by to growth in growth. in be prescriptions were is line expected the Xtampza expectations.

for the improved to be full by driven growth to net. revenue year expect We gross

access gross payer committed net our available label, to educating to position D new wins differentiated plans commercial through securing We're headroom. on in Part pulling physicians Xtampza's with and strong and

to Our patients. replace appropriate aspiration utilization for is OxyContin

our pain It's viewed action. differentiated to care a The mechanism Tapentadol of molecule is differentiated highly is a a health and dual proposed it's professionals. Nucynta by portfolio. Franchise contributor favorably, key with

Hikma year-on-year to the Franchise with our developments XXXX and positive pediatric agreement extension, manner along in us access the with for including generic enable contribution X-month a in The the franchise, Nucynta authorized relatively stable manage beyond. beginning the market strategy, and

posters PAINWeek a the at to excited in We're medical significant It's U.S. largest pain sponsor diamond supporting and health the presence a be participant X and franchise. this pain significant providers. expect care present commercial our for and We'll conference to September. have

opportunity the portfolio. country of for our the meaningful a Collegium to expand specialists across This educate is pain with and reach engage and

leading with commitment further echoes our participation the science. Our to

product assets growth our expand PM market as for our thrilled commercial of the into differentiated address upon patients portfolio acquisition. welcome an into brand's commercial and caregivers. commercial we maximize rapid our poised unmet highly and for closing of can PM ADHD presence is to and And We're Ironshore to Jornay a that to Jornay leverage experience need growing it's the look large to the potential.

this The has significant average ADHD over Jornay compared to total approximately of And double-digit over Jornay year, for XX% few year-over-year. XXXX, PM years. Jornay have PM through grew has the market In grown XXXX XXX,XXX. on prescriptions X% the X the prescriptions grown past past prescription delivered XX% half And growth. years, first to

strong base, is and market the and XX% across commercial of segments. XX,XXX coverage growing and commercial broad the a Medicaid and month to every concentrated the in The Jornay in prescribers has XX% Jornay Medicaid. addition, segments, PM And business these about business XX% access. has prescriber ADHD In approximately

With position And these it leading complementing we leadership pain strong growth continued responsible differentiation, believe be in fundamentals Jornay management. see we the to and driver, significant potential Collegium's has PM. opportunity clinical our for

closing, execution in Jornay meaningful integrate the our on half well are second We we're seamlessly the and operational for growth PM portfolio. in of we positioned into pain beyond. drive and our year, in momentum In that XXXX focused believe portfolio to

to now I'll back the call turn Mike.

Michael Heffernan

Scott. Thanks,

Collegium. We a are transformational at time for

of we our and portfolio record with on are Belbuca and on this value pain maximize as financial We the deliver growth to deliver Xtampza ER. the performance year track

of become is our addition with upon that are area Jornay growth we the of Ironshore acquisition, poised PM leading With into new a differentiated closing the therapeutic driver. expanding product to a

and and order shareholders. confident are our for We commitments Collegium to for in create future track achieve positioned solid our execution is value record a in well success, ability financial to With strategic of growth.

up the call I for questions. will Operator? now open

Operator

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

David Amsellem

a So have just couple.

First, And so remarks. the covered for about that in just you're like. apologize on this missed how improving product D I Medicare But Belbuca, Part about beyond this late, currently what on remind and lives talk joined looks I year? I if can you thinking Part D access prepared us

one. that's number So

how as on this over the you assets new you're ADHD then the and think And in in be terms leverage generating additional to in secondly, you're vertical? therapeutic of calling it on you're that and to psychiatrists, to going as safe you're about place? now the acquisition cash that delever, infrastructure transactions focus term you Would do say going that look have additional that for long the

Michael Heffernan

that the want you for question? Scott, David, to questions. Thanks, So take first

Scott Dreyer

great. that's David. that. Yes, I'll take Thanks,

of terms as is drug. Belbuca, the first foremost, for in and Part the so profile yes, forward it's that XX% of of improving covered about clinical position if the look of lives. you Medicare D And So focus at the look, look current coverage, going we

used We full to patients and of II more access believe used that that differentiated should Schedule Schedule have Belbuca. before profile III broadly and the should be

we're that's see an then payers that clinical engaging the data, November works we're where us. get in when we economics for to what dust stronger. only data new settles keeps that is So And to the getting if we'll able achieve that wins with

Michael Heffernan

clearly, forward, be and about we're which integration in business, And the Scott. David, of short growing Thanks, focused term the on second amount will going effort. significant on mean, strategy question, take going acquisition Jornay I Great. a the to then

neuropsych. mix to we'll on that, a calling of Subsequent be pediatrics,

gives synergy around be as and as focus looking focus forward. of will optionality. business we the us will going particular lot suggest, development strategy create And be we sharpening which a to we build our those you So BD areas,

Operator

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

Leszek Sulewski

you've Great. Congrats versus been across do achieve quarter. performance your How to integration balance portfolio? on current the you the able maintaining the

selection? the And update focus the CEO on then the on Ironshore potential the the Has second, candidate changed on acquisition search.

Michael Heffernan

Yes. standpoint take Thanks, search question. CEO Les, -- for From the the I'll the questions.

making in CEO candidates. ongoing is search, And comments, and seen really I good the we've as some mentioned good active So my progress. and

of has increased portfolio. this anything, bring interest Jornay the the growth if when potential Frankly, into because the we

very So all. top-tier take at question? and the this on focused finding changed Scott, the we first a strategy candidate, to do you remain not want has

Scott Dreyer

the Les. Mike. Yes. simple. very sure, it's in balance, Yes, of Thanks question, And for terms

XXX% that maintain there and sales our the will no on team overlap. Jornay force, of We pain in marketing be sales teams, will a pain. we core focused And commercialized people then commercial integrate force, fully will

be will with team focused focus that's been trajectory the the on that of PM and Jornay. growth started continuing products maximize what full the pain Each continuing responsible on Jornay the value they're of for, portfolio to for to pain group

So efforts. approach in separation complete is commercial that's our really our keeping just

Operator

Instructions] closing And call question-and-answer session. looks to [Operator And back it the remarks. have reached of the I'll end turn we over the like for Mike

Michael Heffernan

Thank a you, Have today. call everyone, for joining great the evening.

Operator

you today's disconnect this And may Thank participation. your time. at this for concludes you your conference, lines and

Collegium Pharmaceutical (COLL) 8 Aug 242024 Q2 Earnings call transcript