In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Collegium Pharmaceutical Inc (NASDAQ:COLL) reported a 23% year-over-year revenue growth in the first quarter of 2025.
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The company achieved significant prescription growth for its ADHD medicine, Journey, with a 24% year-over-year increase.
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Collegium expanded its ADHD sales force by adding approximately 55 new sales representatives, enhancing its market reach.
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The company generated $55.4 million in cash from operations, increasing its cash position to nearly $200 million.
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Collegium's board authorized a $25 million accelerated share repurchase program, demonstrating a commitment to returning value to shareholders.
Negative Points
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GAAP operating expenses increased by 80% year over year, reflecting higher costs associated with commercializing Journey and expanding the sales force.
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GAAP net income decreased significantly to $2.4 million from $27.7 million in the first quarter of 2024.
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The company faces typical first-quarter headwinds in the ADHD market, such as annual patient deductibles resetting and increased out-of-pocket costs.
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The overall pain market continues to decline, which could impact future revenue growth for Collegium's pain portfolio.
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Collegium's net leverage remains a concern, although it is expected to decrease by the end of 2025.
Q & A Highlights
Q: As we approach the end of the school year, how do you expect Journey prescriptions to trend, and is the salesforce expansion aimed at increasing touchpoints or geographic expansion? A: There is a seasonal trend where prescriptions may slow down as some children take a break from their medication during summer, followed by an increase during the back-to-school season. The salesforce expansion is aimed at both increasing reach from 17,000 to 21,000 healthcare professionals and enhancing frequency with existing targets. We expect to see the impact of this expansion in the fourth quarter and into 2026. Scott Dyer, Chief Commercial Officer
Q: Is there an opportunity to apply Journey PM's delayed-release technology to other compounds like Adderall or modafinil? A: The technology was explored for other compounds before the acquisition, and it was determined that it works best with methylphenidate, which is why we have Journey. Vikram Karnani, President and CEO
Q: What is the appetite for business development deals, and has the current environment impacted your outlook for potential deals? A: We approach capital deployment strategically, focusing on creating shareholder value through business development, debt repayment, and share repurchases. The current market environment does not specifically change our likelihood of pursuing deals; we remain disciplined in expanding our portfolio. Vikram Karnani, President and CEO