Collegium Pharmaceutical Inc (COLL) Q4 2024 Earnings Call Highlights: Record Revenue Growth and ...

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Net Product Revenues: $181.9 million for Q4, up 22% year over year; $631.4 million for 2024, up 11% year over year.
Jornay Net Revenue: $29.3 million in Q4; $100.7 million for 2024 on a pro forma basis.
Nucynta Net Revenue: $55.2 million in Q4, up 12% year over year; $211.3 million for 2024, up 16% year over year.
Examsa Net Revenue: $51.5 million in Q4, up 6% year over year; $191.3 million for 2024, up 8% year over year.
Adjusted EBITDA: $107.7 million for Q4, up 3% year over year; $401.2 million for 2024, up 9% year over year.
GAAP Net Income: $12.5 million for Q4; $69.2 million for 2024.
Non-GAAP Adjusted Earnings Per Share: $1.77 for Q4; $6.45 for 2024.
Cash and Equivalents: $162.8 million as of December 31, 2024.
Share Repurchases: $60 million worth of shares repurchased in 2024.
2025 Revenue Guidance: Expected net product revenues between $735 million to $750 million.
2025 Adjusted EBITDA Guidance: Expected in the range of $435 million to $450 million.

Warning! GuruFocus has detected 4 Warning Signs with COLL.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Collegium Pharmaceutical Inc (NASDAQ:COLL) reported a record net product revenue of $181.9 million for the fourth quarter, up 22% year over year.
The acquisition of Ironshore Therapeutics and its lead medicine, Jornay APM, has been successful, with prescriptions growing 29% year over year and 11% quarter over quarter.
The company achieved its financial guidance for 2024, growing total revenue by 11% and adjusted EBITDA by 9% year over year.
Collegium Pharmaceutical Inc (NASDAQ:COLL) strengthened the durability of the Nucynta franchise with several positive developments, extending projected exclusivity to July 2027.
The company has a strong financial position, ending 2024 with net leverage of less than two times and expecting to end 2025 with net leverage of less than one time.

Negative Points

GAAP operating expenses increased significantly, up 83% year over year for the fourth quarter and 30% for the full year 2024.
The Nucynta franchise saw a decline in net revenue, down 11% year over year for the fourth quarter and 7% for the full year 2024.
There is expected pressure on prescriptions in the first quarter of 2025 due to a formulary change and typical first-quarter dynamics driven by patient deductible resets.
The company faces risks and uncertainties related to the commercialization of its products and potential litigation.
GAAP net income for the fourth quarter decreased to $12.5 million compared to $31.9 million in the fourth quarter of 2023.

Q & A Highlights

Q: Could you lay out the path you envision for Collegium over the next three to five years and update us on business development opportunities? A: Vikram Karnani, CEO, stated that Collegium's strategy for long-term growth involves both organic and inorganic growth. The focus is on assets that can add meaningful revenue in the near term, particularly in areas like ADHD, neuropsychiatry, and broader CNS. They are also interested in capital-efficient areas like rare or orphan diseases. Given their strong financial position, they are actively looking to expand their portfolio while ensuring strategic and financial alignment.

Q: Could you quantify any synergies realized from the integration of Ironshore? A: Colleen Tupper, CFO, mentioned that the acquisition of Ironshore was primarily about entering a new therapeutic area. Typical synergies were achieved in senior management overlap and GNA, but they were not a significant consideration. The focus was on strategically investing behind Jornay to drive growth.

Q: Regarding the No Pain Act, are there any expected shifts in the pain treatment category? A: Scott Dreyer, Chief Commercial Officer, explained that the No Pain Act has had no impact on their portfolio as it focuses on inpatient settings, whereas their products are retail-based chronic pain therapies.

Q: With the Salesforce expansion, what portion of ADHD prescribers does it encompass, and is there a need for further expansion? A: Scott Dreyer noted that the expanded Salesforce will cover 60% of the long-acting market, targeting about 23,000 prescribers. While they will review coverage annually, they do not anticipate significant growth beyond the current expansion.

Q: How are you planning for the loss of exclusivity for BELBUCA and other products? A: Colleen Tupper stated that no party currently has the necessary combination of ingredients, regulatory clearance, and manufacturing capability to launch competitive generics against their products. The LOE dates for their products have been extended, and they plan to invest through these dates, reassessing if a single player enters the market.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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