Collegium Pharmaceutical (COLL) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Strategic expansion and acquisition

• Completed the Ironshore acquisition, expanding into the neuropsych/ADHD market with Jornay PM, a differentiated evening-dosed ADHD medication with patent protection through 2032.

• Jornay PM targets a large, growing ADHD market, with 80% of its business in the pediatric segment and a unique delivery profile supporting early morning and all-day efficacy.

• The product has reached a 15,000 prescriber base, with 65% physician awareness and significant opportunity to expand both awareness and usage.

• Plans include leveraging commercial expertise, increasing healthcare provider and caregiver marketing, and capitalizing on strong 80% coverage across commercial and Medicaid segments.

• No disruption expected during the back-to-school season; prescription growth is accelerating as anticipated.

Financial performance and guidance

• Immediate accretion from the Ironshore deal, with revised 2024 revenue guidance raised to $620–$635 million and adjusted EBITDA to $395–$405 million.

• Jornay PM is already profitable, with over $100 million in 2024 net sales and high gross margins in the high 80% range.

• Operating expenses increased to $150–$155 million, reflecting integration and growth investments.

• Management expects Jornay PM to significantly exceed the $150 million peak sales goal, aiming to double that expectation.

• Capital allocation priorities include maximizing Jornay, deleveraging, and maintaining flexibility for future M&A and share repurchases.

Base business trends and outlook

• Pain portfolio (Belbuca, Xtampza) performing in line with expectations; Belbuca shows consistent year-over-year prescription growth, while Xtampza revenue is up 32% since 2022 despite a 15% prescription decline due to strategic contract renegotiations.

• Belbuca seen as underutilized with potential for further growth as a first-choice extended-release pain product.

• Major contract renegotiations for Xtampza are complete; any changes will be announced in November, with a focus on profitable growth.

• Nucynta franchise exclusivity extends to late 2025/early 2027, with authorized generic agreements and delayed competitive entry supporting a robust revenue tail.

• Business development will focus on leveraging new neuropsych infrastructure and exploring additional assets in neuropsych and pediatric markets.