Collegium Pharmaceutical Inc. ((COLL)) has held its Q4 earnings call. Read on for the main highlights of the call.
Collegium Pharmaceutical Inc. recently held its earnings call, revealing a generally positive sentiment driven by significant growth in its Jornay PM product and a robust financial standing. Despite challenges such as declining Nucynta revenue and increased operating expenses, the company remains optimistic about its strategic initiatives and strong performance in its pain portfolio.
Strong Growth in Jornay PM
Jornay PM has been a standout performer for Collegium, with prescriptions growing by 29% year-over-year and 11% quarter-over-quarter in Q4 2024. The net revenue for Jornay PM was $100.7 million in 2024, and the company expects this to exceed $135 million in 2025, marking a growth of over 34%.
Record Revenues for Pain Portfolio
Collegium’s pain portfolio also showed impressive results, achieving a 5% revenue growth in 2024. Both BELBUCA and Xtampza ER recorded their highest revenues to date. Overall, the company saw an 11% increase in total revenue and a 9% growth in adjusted EBITDA year-over-year.
Strategic Acquisitions and Expansions
The acquisition of Ironshore Therapeutics and its lead product, Jornay PM, has been pivotal for Collegium, establishing a foothold in the neuropsychiatry market. The company also expanded its sales force from 125 to 180 representatives to enhance coverage and market penetration for Jornay.
Positive Developments for Nucynta Franchise
Collegium announced an extension of exclusivity for Nucynta ER until July 2027, reinforcing its position as a strong revenue contributor. This development is expected to provide stability and continued revenue generation for the company.
Strong Financial Position
The company ended 2024 with a net leverage of less than two times and anticipates reducing this to less than one time by the end of 2025. This strong financial position supports Collegium’s strategic initiatives and growth plans.
Nucynta Revenue Decline
Despite the positive developments, the Nucynta franchise experienced a revenue decline, with net revenue at $41.8 million in Q4, down 11% year-over-year, and $176.5 million in 2024, down 7% year-over-year.
Increased Operating Expenses
Collegium reported a significant increase in operating expenses, with GAAP operating expenses reaching $60.2 million in Q4, up 83% year-over-year, and $207.4 million for 2024, up 30% year-over-year.
Formulary Changes Impact
The company anticipates pressure on prescriptions for BELBUCA and Xtampza ER in Q1 2025 due to formulary changes and the typical first-quarter dynamics driven by patient deductible resets.
Forward-Looking Guidance
Looking ahead, Collegium provided robust guidance for 2025, expecting net product revenues to range between $735 million and $750 million, largely driven by Jornay’s projected net revenues exceeding $135 million. The company plans to continue strategic capital deployment, including share repurchases and debt reduction, while focusing on maximizing its pain portfolio’s potential and expanding through business development.
In summary, Collegium Pharmaceutical Inc.’s earnings call conveyed a positive outlook, underscored by strong growth in Jornay PM and a solid financial position. Despite some challenges, the company’s strategic initiatives and focus on its pain portfolio position it well for continued success.