Collegium Pharmaceutical (COLL) Jefferies 2024 Global Healthcare Conference summary

Financial performance and guidance

• Q1 revenue reached $145 million with adjusted EBITDA of $92 million, up 5% year-over-year, and full-year guidance was reiterated for revenue of $580–$595 million and EBITDA of $380–$395 million.

• Operating expenses are expected to decrease 1% year-over-year, with adjusted OpEx guidance of $120–$125 million, excluding one-time items.

• Operating income rose 19% year-over-year, driven by the absence of prior year non-recurring charges and lower OpEx.

• Net debt to EBITDA ratio is just under one, with rapid term loan paydown and a $150 million share repurchase authorization through mid-2025.

• Financial outlook remains strong, with continued deleveraging and capital return to shareholders.

Product performance and portfolio strategy

• BELBUCA showed 4.2% year-over-year growth in Q1, with continued momentum into Q2, now the largest product in the portfolio.

• Xtampza prescriptions declined as expected due to contract renegotiations, but margins improved and coverage remains strong.

• Nucynta franchise revenues are expected to remain stable through 2024, with a longer-term tail possible depending on generic entry timing.

• The company is focused on maximizing current portfolio value and is prepared for opportunistic M&A, targeting commercial-stage assets with peak potential of $150 million+ and patent protection into the 2030s.

• Share repurchases and debt reduction are ongoing, with $140 million in shares repurchased to date.

Leadership and strategic direction

• CEO transition was planned, with the founder stepping in as interim CEO and an external search underway; no change in business strategy.

• Board seeks a leader to continue current strategy and drive the next phase of growth.

• Management and board remain confident in executing the established strategy.