Collegium Pharmaceutical (COLL) 8 Aug 24 2024 Q2 Earnings call transcript

Collegium Pharmaceutical held a second quarter 2024 earnings conference call, providing insights into the company's financial performance and strategic initiatives. The call, led by executives including Vice President of Investor Relations, Christopher James, Interim President and CEO, Mike Heffernan, CFO, Colleen Tupper, and Chief Commercial Officer, Scott Dreyer, highlighted several key themes and trends.

Strong Operational Execution and Financial Performance

Collegium reported robust operating cash flows and significant growth in its pain portfolio, with revenues increasing by 7% and adjusted EBITDA by 12% year-over-year. The company's strategic execution was highlighted by the successful implementation of the Hikma authorized generic agreement and the six-month pediatric exclusivity extension for the Nucynta Franchise, which extends the exclusivity of Nucynta to January 3, 2027, and Nucynta ER to December 27, 2025.

Acquisition of Ironshore Therapeutics

The acquisition of Ironshore Therapeutics is a significant development for Collegium, adding the commercial product Jornay PM to the company's portfolio. Jornay PM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder (ADHD) in people 6 years of age and older, is expected to generate net revenue in excess of $100 million in 2024 and is poised to become Collegium's leading growth driver. The acquisition is expected to close in the third quarter of 2024 and will significantly diversify Collegium's portfolio.

Strategic Capital Deployment and Debt Management

Collegium's capital deployment strategy is focused on creating long-term value for shareholders by executing on business development, paying down debt, and opportunistically returning capital to shareholders. The company has secured a new term loan to replace its existing loan at significantly improved terms, which is expected to reduce net leverage at year-end to less than 2x based on estimated fiscal year 2024 pro forma combined EBITDA. This strategic move will enable Collegium to delever and maintain a strong balance sheet to fund its growth going forward.

Looking Ahead

The company remains focused on operational execution and growth, with expectations for net product revenues to be in the range of $580 million to $595 million for the full year. The integration of Ironshore Therapeutics and the growth trajectory of Jornay PM are key drivers for Collegium's future success. The company is committed to maintaining its leadership position in responsible pain management while expanding into new therapeutic areas, such as neuropsych, to leverage its infrastructure and maximize synergies.

In conclusion, Collegium Pharmaceutical's second quarter 2024 earnings call underscored the company's operational execution, financial performance, and strategic initiatives. The acquisition of Ironshore Therapeutics and the addition of Jornay PM to its portfolio mark a significant milestone for Collegium, positioning the company for continued growth and expansion in the pharmaceutical industry.