Collegium Q2 2024 Financial Results

Collegium Pharmaceutical, Inc., a leading specialty pharmaceutical company based in Stoughton, Massachusetts, announced its financial results for Q2 2024. The company reported a net revenue of $145.3 million, reflecting a 7% increase from the same period last year. Notably, Belbuca® generated a record revenue of $52.2 million, marking a 21% year-over-year rise. The company's GAAP net income surged by 51% to $19.6 million, while its adjusted EBITDA grew by 12% to $96.0 million.

Michael Heffernan, Chairman and Interim CEO, highlighted the strong operational performance in the pain management portfolio and discussed strategic actions, including a generic agreement with Hikma Pharmaceuticals and a pediatric exclusivity extension for the Nucynta Franchise. He also emphasized the potential growth from the acquisition of Ironshore Therapeutics, which brings Jornay PM®, a treatment for ADHD, into their portfolio. Heffernan projected the acquisition to be a significant growth driver and immediately beneficial upon completion.

Colleen Tupper, CFO, attributed the robust financial outcomes to record Belbuca revenues and tight expense management. She noted the company's solid cash flows and strategic capital deployment, including the acquisition of Ironshore, redeeming $26.4 million in senior convertible notes, and a $35.0 million share repurchase program. Tupper also mentioned securing a new $646 million term loan that replaced a prior loan, reducing the company's capital cost by 300 basis points.

Key business highlights for the quarter include:
- A 2.1% year-over-year increase in Belbuca prescriptions and a 1.4% rise quarter-over-quarter, with net revenue reaching $52.2 million.
- Xtampza® ER net revenue grew by 8% year-over-year to $44.6 million, with an improved gross-to-net range expected for the full year.
- The FDA granted a six-month pediatric exclusivity for the Nucynta Franchise, extending its exclusivity period.
- The company redeemed the remaining $26.4 million of its convertible senior notes due in 2026 and executed a $35.0 million accelerated share repurchase program.
- In July 2024, Collegium announced the acquisition of Ironshore Therapeutics for $525 million, with the potential for an additional $25 million milestone payment. This acquisition, expected to close in Q3 2024, is projected to be immediately accretive to adjusted EBITDA.

The financial guidance for 2024 reaffirms expectations for product revenues between $580.0 to $595.0 million, adjusted operating expenses (excluding stock-based compensation) between $120.0 to $125.0 million, and adjusted EBITDA (excluding stock-based compensation) between $380.0 to $395.0 million.

For Q2 2024, the company reported:
- Product revenues of $145.3 million, up from $135.5 million in Q2 2023.
- GAAP operating expenses increased to $43.3 million from $38.2 million year-over-year, while adjusted operating expenses decreased to $30.3 million from $31.1 million.
- GAAP net income of $19.6 million, with GAAP earnings per share of $0.60 (basic) and $0.52 (diluted). Non-GAAP adjusted net income was $64.0 million, with adjusted earnings per share of $1.62.
- Adjusted EBITDA of $96.0 million, up from $85.8 million in the previous year.
- The company ended the quarter with $271.6 million in cash, cash equivalents, and marketable securities, down from $310.5 million as of December 31, 2023.

Collegium's strategic focus remains on enhancing its pain management portfolio and expanding its presence in the neurology sector with the Ironshore acquisition. The company continues to prioritize both top-line and bottom-line growth while integrating new assets seamlessly to deliver strong financial performance and shareholder value.