COLL — Collegium Pharmaceutical, Inc.

Summary of Collegium Pharmaceutical's Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Net Product Revenues: $193.5 million, up 9% year-over-year.
• JORNAY PM Revenue: $38.9 million, a 36% increase year-over-year, impacted by $4 million of destocking in Q1 2025.
• Pain Portfolio Revenue: $154.6 million, up 4% year-over-year.
• GAAP Net Income: $14.5 million, a 500% increase year-over-year.
• Non-GAAP Adjusted EBITDA: $103.9 million, up 9% year-over-year.
• Cash from Operations: $57.1 million; cash position at $421.8 million, up $35 million from the end of 2025.
• Earnings Per Share: GAAP EPS of $0.45 (basic) and $0.40 (diluted); Non-GAAP adjusted EPS of $1.76.

2. Strategic Updates and Business Highlights

• Acquisition of AZSTARYS: Proposed acquisition for $650 million to enhance ADHD portfolio, expected to close in Q2 2026. AZSTARYS is anticipated to generate over $50 million in pro forma net revenues in the second half of 2026 and is expected to be accretive to adjusted EBITDA.
• Growth in JORNAY: Continued strong growth in prescriptions and market share, with a 14% year-over-year increase in prescriptions.
• Pain Portfolio Performance: Consistent performance with growth in Belbuca and Xtampza ER revenues, despite pressures from typical first-quarter dynamics.
• Marketing Initiatives: Launched the "Embrace Your Sparkle" campaign with Paris Hilton to raise ADHD awareness.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Total product revenues expected between $805 million to $825 million, reflecting a 4% increase year-over-year. JORNAY revenue guidance set at $190 million to $200 million, a 31% increase.
• Adjusted EBITDA Guidance: Expected in the range of $455 million to $475 million, up 1% year-over-year.
• Long-term Strategy: Focus on integrating AZSTARYS, driving JORNAY growth, and maximizing the pain portfolio's durability.

4. Bad News, Challenges, or Points of Concern

• Generic Competition: The impact of authorized generics for Nucynta and Nucynta ER could pressure revenues, although current guidance remains unchanged.
• Operating Expenses: GAAP operating expenses increased by 14% year-over-year, reflecting investments in sales and marketing for JORNAY.
• Market Dynamics: Typical first-quarter dynamics impacted prescription volumes, particularly in the pain portfolio, indicating potential volatility in revenue.

5. Notable Q&A Insights

• Balancing ADHD Portfolio: Management emphasized the complementary nature of JORNAY and AZSTARYS, with plans to grow both brands while targeting different patient needs.
• Sales Force Coverage: Current ADHD sales force covers about 60% of the branded market; plans to optimize coverage post-AZSTARYS acquisition.
• Mix of Adult and Pediatric Patients: JORNAY currently has an 80-20 pediatric-adult prescription mix, with expectations to increase adult penetration based on patient needs for morning efficacy.
• Competitive Landscape: Management remains cautious about new ADHD treatments entering the market but is confident in the differentiation of their products.

Overall, Collegium Pharmaceutical reported strong financial results for Q1 2026, driven by growth in JORNAY and consistent performance in its pain portfolio, while strategically positioning itself for future growth through the acquisition of AZSTARYS.