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COLLEGIUM PHARMACEUTICAL, INC (COLL)·Q4 2024 Earnings Summary

Executive Summary

  • Record Q4 net product revenue of $181.9M (+22% YoY) and adjusted EBITDA of $107.7M; GAAP diluted EPS was $0.36 and adjusted EPS $1.77 .
  • Product mix strong: Belbuca $55.2M (+12% YoY), Xtampza ER $51.5M (+6% YoY), Nucynta $41.8M (-11% YoY), and first full-quarter Jornay PM $29.3M; pro forma FY24 Jornay PM revenue $100.7M, with 2025 expected to exceed $135M .
  • 2025 guidance reaffirmed: net product revenues $735–$750M, adjusted EBITDA $435–$450M, adjusted operating expenses $220–$230M; investments in Jornay PM front-loaded in 1H25 with margin improvement expected from 2026 .
  • Catalysts: ADHD salesforce expansion to ~180 reps by April (covering ~60% of long-acting market), sustained pain portfolio durability, extended Nucynta exclusivity (IR to Jan-2027, ER to Jul-2027), and disciplined capital deployment (target <1.0x net leverage YE25) .

What Went Well and What Went Wrong

What Went Well

  • Record revenue and profitability: Q4 net product revenue $181.9M (+22% YoY), adjusted EBITDA $107.7M (+3% YoY) .
  • Pain portfolio execution: Belbuca prescriptions +5.6% YoY and record $55.2M revenue; Xtampza ER record $51.5M revenue, FY gross-to-net 52.7% reflecting payer strategy .
  • ADHD momentum: Jornay PM Q4 prescriptions +29% YoY, +11% QoQ; pro forma FY24 revenue $100.7M; management: “Journe[e] is poised to be our lead growth driver” .

What Went Wrong

  • Nucynta headwind: Q4 net revenue $41.8M (-11% YoY) despite exclusivity extensions; mix detracted from total growth rate in that segment .
  • Operating expense step-up: Q4 GAAP opex $60.2M (+83% YoY) and adjusted opex $51.1M (+97% YoY) as the company absorbed Jornay PM and ramped commercial investments .
  • Near-term seasonality and formulary pressures: management flagged typical Q1 revenue decline due to deductible resets and expected prescription pressure from January formulary changes (though net revenue impact expected to be positive) .

Financial Results

Consolidated P&L vs prior quarters

MetricQ2 2024Q3 2024Q4 2024
Net Product Revenue ($USD Millions)$145.3 $159.3 $181.9
Revenue YoY Growth+7% +17% +22%
GAAP Diluted EPS ($)$0.52 $0.27 $0.36
Adjusted EPS ($)$1.62 $1.61 $1.77
Adjusted EBITDA ($USD Millions)$96.0 $105.1 $107.7

Segment/Product net revenue (Q4 2024)

ProductQ4 2024 Net Revenue ($USD Millions)
Belbuca$55.2
Xtampza ER$51.5
Nucynta (Franchise)$41.8
Jornay PM$29.3

KPIs

KPIPeriodValue
Jornay PM prescriptions growthQ4 2024+29% YoY; +11% QoQ
Jornay PM prescribersQ4 2024~24,300 prescribers
Jornay PM pro forma net revenueFY 2024$100.7M
Xtampza ER gross-to-netFY 202452.7%
Belbuca prescriptions growthQ4 2024+5.6% YoY; +2.9% QoQ

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Product Revenues, NetFY 2025$735–$750M $735–$750M Maintained
Adjusted EBITDA (ex-SBC)FY 2025$435–$450M $435–$450M Maintained
Adjusted Operating Expenses (ex-SBC)FY 2025$220–$230M $220–$230M Maintained
Jornay PM Net RevenueFY 2025>$135M >$135M Maintained

Management noted spend is front-loaded into 1H25 and expects EBITDA margin improvement beginning in 2026 .

Earnings Call Themes & Trends

TopicQ2 2024 (prior)Q3 2024 (prior)Q4 2024 (current)Trend
Jornay PM strategyAnnounced Ironshore acquisition; highlighted immediate EBITDA accretion; ADHD market growth Closed acquisition; record momentum; CEO transition to drive neuropsychiatry focus Salesforce expansion to ~180 reps by April; >$135M FY25 revenue; investments to drive momentum in 2026+ Accelerating investment and growth
Pain portfolio durabilityBelbuca +21% YoY revenue; Xtampza ER +8% YoY; managed GtN Record Belbuca ($53.2M), Xtampza ($49.5M); continued payer wins Belbuca +12% YoY; Xtampza ER record; Xtampza FY GtN 52.7% Sustained execution
Nucynta exclusivity / AGPediatric exclusivity extension; Hikma authorized generic agreement Reinforced durability narrative ER exclusivity to Jul-2027; IR to Jan-2027; franchise positioned for ongoing contribution Extended exclusivity supports durability
Capital deploymentRedeemed converts; ASR $35M; Pharmakon term loan at lower rate Cash down with M&A; continued discipline $60M repurchases in 2024; target <1.0x net leverage YE25 Ongoing deleveraging and returns
Macro/seasonalityN/AN/AExpect Q1 QoQ revenue dip due to deductible resets; formulary changes may pressure scripts near-term Typical seasonal pattern reiterated

Management Commentary

  • CEO: “We are focused on accelerating growth for Journee, maximizing our pain portfolio and strategically deploying capital… building a leading diversified biopharmaceutical company.” .
  • CFO: “Net product revenues were a record $181.9M… Non-GAAP adjusted EBITDA was a record $107.7M… We reaffirm our 2025 guidance… spend expected to be front-loaded into the first half.” .
  • CCO: “Journee is highly differentiated as the only stimulant ADHD medication with convenient evening dosing… prescriptions were up 29% YoY and 11% QoQ… expanding sales force from ~125 to 180 reps.” .

Q&A Highlights

  • Business development path: Priority on commercial-stage assets in logical adjacencies (ADHD, neuropsychiatry/CNS) and capital-efficient areas (rare/orphan); strong balance sheet with net debt/EBITDA expected <1x YE25 .
  • ADHD salesforce coverage: At ~180 reps, company expects to cover ~60% of long-acting market (~23,000 targets); no need for outsized expansion vs peers .
  • LOE planning: Management sees no party with the combination of regulatory, legal, and manufacturing capability to launch near-term generics across the pain portfolio; Nucynta ER LOE July 2027, IR January 2027; similar posture for Belbuca and Xtampza ER .
  • NOPAIN Act impact: De minimis for retail-based chronic therapies; primarily inpatient reimbursement-focused .
  • Guidance cadence: Q1 revenue expected modestly lower QoQ due to seasonality; spend front-loaded to support Jornay PM initiatives .

Estimates Context

  • We attempted to retrieve S&P Global consensus for Q4 2024 and FY25, but data was unavailable due to provider limits; therefore, we cannot assess beat/miss vs Wall Street estimates for the quarter or guidance at this time [GetEstimates error: Daily Request Limit Exceeded].
  • Given the record revenue and reaffirmed FY25 guidance, we expect sell-side to focus on upward revisions to FY25 revenue mix (Jornay PM >$135M) and higher adjusted opex reflecting commercial investments; monitor subsequent estimate updates and margin trajectories post 1H25 spend .

Key Takeaways for Investors

  • Execution remains robust: Q4 revenue and adjusted EBITDA hit records; pain portfolio continues to underpin cash generation .
  • ADHD is the growth engine: Jornay PM showed immediate acceleration under ownership; salesforce expansion and DTC-style digital efforts should compound in late-2025 and 2026 .
  • Margin path: 2025 EBITDA growth despite opex ramp; margin improvement targeted from 2026 as Jornay PM productivity rises .
  • Durability extended: Nucynta exclusivity extensions and authorized generic agreement support multi-year revenue visibility .
  • Capital discipline: $60M repurchases in 2024, deleveraging to <1.0x net leverage YE25 enables optionality for BD while maintaining return-of-capital flexibility .
  • Near-term trading setup: Expect typical Q1 seasonal revenue dip; watch Rx trends amid formulary changes and timing of expanded salesforce impact (April onboarding) .
  • Risk checks: Nucynta volume variability, opex ramp execution for ADHD, and payer dynamics (Xtampza GtN) remain focal points; management’s commentary mitigates with access strength and brand differentiation .

Appendix: Additional financial detail (from press materials)

  • Q4 condensed operations and balance sheet tables, plus non-GAAP reconciliations, provided in the press release and 8-K exhibits .