COLL — Collegium Pharmaceutical, Inc.

Summary of Collegium Pharmaceuticals Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $209.4 million, up 31% year-over-year.
• Adjusted EBITDA: $133 million, a 27% increase year-over-year.
• Net Income: $31.5 million, up 238% year-over-year.
• Jornay PM Revenue: $41.8 million, with prescriptions growing 20% year-over-year.
• Pain Portfolio Revenue: $167.6 million, up 11% year-over-year.
• Cash from Operations: $78.4 million; ended the quarter with $285.9 million in cash and equivalents.
• Debt Repayment: $16.1 million repaid during the quarter, with a net debt to adjusted EBITDA ratio of approximately 1.2x.

2. Strategic Updates and Business Highlights:

• Strong growth in Jornay PM driven by back-to-school season initiatives and an expanded sales force.
• Positive reception from healthcare providers, with Jornay being rated as the #1 ADHD brand for differentiation.
• Continued robust performance from the pain portfolio, with all three core products showing revenue growth.
• Strategic capital deployment through share repurchases and debt repayment, with $25 million returned to shareholders year-to-date.
• Ongoing business development efforts to identify differentiated medicines for future growth.

3. Forward Guidance and Outlook:

• 2025 Total Revenue Guidance: Raised to $775 million to $785 million, representing a 24% year-over-year increase.
• Jornay Revenue Guidance: Expected to be between $145 million and $150 million, indicating 46% growth from 2024.
• Adjusted EBITDA Guidance: Projected in the range of $460 million to $470 million, a 16% increase year-over-year.
• Anticipated stable gross to net rates in the mid-60% range for the full year.

4. Bad News, Challenges, or Points of Concern:

• Despite strong overall performance, the gross to net for Jornay decreased from 67% in Q2 to 62% in Q3, indicating potential pricing pressures.
• The expanded sales force had not yet shown significant impact in Q3, with expectations for more substantial effects in Q4 and 2026.
• Competitive pressures in the ADHD market remain, necessitating ongoing efforts to increase awareness and adoption of Jornay.

5. Notable Q&A Insights:

• Inventory Management: Inventory levels for Jornay were stable, with a slight increase noted. The company expects typical seasonal patterns to continue affecting gross to net dynamics.
• Adherence Rates: Adherence for Jornay PM is consistent with industry norms, showing a typical curve of 9 to 10 months per prescription.
• Business Development Focus: Collegium is prioritizing commercial or near-commercial assets for future acquisitions and is not currently looking to take on R&D risks.
• Payer Landscape: Expected improvements in coverage for approximately 2 million lives in 2026, with no anticipated negative formulary changes.

Overall, Collegium Pharmaceuticals reported strong financial growth in Q3 2025, driven by its lead product Jornay PM and a robust pain portfolio, while also raising its full-year guidance. However, challenges such as pricing pressures and the need for further sales force impact were acknowledged. The company remains focused on strategic growth and capital deployment moving forward.