Collegium anticipates 24% revenue growth in 2025 with Jornay PM driving expansion

Earnings Call Insights: Collegium Pharmaceutical (COLL) Q3 2025

MANAGEMENT VIEW

* CEO Vikram Karnani reported continued top and bottom line growth, citing a strong back-to-school season for Jornay PM and robust pain portfolio revenues. He noted, "Jornay prescription growth accelerated in the quarter during the critical back-to-school season and early signals indicate that our incremental commercial efforts are being well received by health care providers, caregivers and patients." Karnani emphasized progress on three priorities: driving Jornay growth, maximizing pain portfolio durability, and deploying capital for shareholder value. He added that the company is "increasingly confident that these revenues will prove to be more durable than many have previously expected."
* Karnani highlighted record net revenue and adjusted EBITDA, with Jornay PM generating $41.8 million in net revenue and 20% prescription growth year-over-year. The pain portfolio net revenue reached $167.6 million, up 11% year-over-year. Cash from operations was $78.4 million, and the company ended the quarter with $285.9 million in cash.
* The CEO stated, "We are raising our 2025 financial guidance. We now expect to grow total revenue by approximately 24% year-over-year, driven by our continued confidence in the durability of our pain portfolio and significant growth from Jornay."
* Karnani said, "We recently had the privilege of ringing the opening bell at NASDAQ to celebrate a significant milestone, our 10-year anniversary as a publicly traded company, marking a decade of delivering differentiated medicines to patients and creating value for our shareholders."
* Chief Commercial Officer Scott Dreyer detailed Jornay PM’s competitive advantages, including once-daily evening dosing and strong market research results. He observed, "HCP perceptions of Jornay are highly positive. In market research, health care professionals rated Jornay as the #1 ADHD brand in terms of product differentiation with a score that was more than double that of any other competing brand."
* Dreyer reported Jornay’s market share in the long-acting branded methylphenidate market grew to 23.4% and prescribers reached an all-time high of 27,700. The adult segment grew 29% year-over-year, and pediatric/adolescent segment grew 18%. Dreyer also mentioned a new collaboration with Paris Hilton to increase ADHD and Jornay PM awareness.
* CFO Colleen Tupper stated, "Q3 was another strong quarter. We delivered record total revenues of $209.4 million, up 31% year-over-year. Adjusted EBITDA of $133 million, up 27% year-over-year and are on track to achieve our updated full year 2025 guidance."

OUTLOOK

* Management raised 2025 full year guidance, expecting total product revenues in the range of $775 million to $785 million, a 24% increase year-over-year. Jornay PM revenue is projected between $145 million and $150 million, reflecting a 46% growth from 2024 pro forma revenue. Adjusted EBITDA is forecasted at $460 million to $470 million, a 16% increase year-over-year. Adjusted operating expenses are expected between $235 million and $240 million.
* Tupper described that gross to net for Jornay was 62% in Q3, with full year gross to net expected in the mid-60% range.

FINANCIAL RESULTS

* Q3 net product revenues were $209.4 million, with Jornay PM at $41.8 million, Belbuca at $58.3 million, Xtampza ER at $50.5 million, and Nucynta franchise at $54.8 million. GAAP net income was $31.5 million. Non-GAAP adjusted earnings per share was $2.25.
* The company generated $78.4 million in cash from operations and ended the quarter with $285.9 million in cash, cash equivalents, and marketable securities. Net debt to adjusted EBITDA leverage was approximately 1.2x, with expectations to end the year below 1x.

Q&A

* Anthea, Jefferies: Asked about Q3 script growth and sales force impact. Tupper explained, "Q1 gross to nets was 70%, Q2, 67% and 62% in the third quarter, as just mentioned. And we now expect gross to nets to be in the mid-60% range relative to our previous expectation of upper 60s... seasonality... improving returns rates and favorable contracting."
* Dreyer added, "no, there was not significant impact in the third quarter as it relates to the expansion of the sales force... we really expect most impact as we get into 2026 and beyond."
* Brandon Folkes, H.C. Wainwright: Asked about inventory and net price tailwinds. Tupper said, "all of our products, given that they're controlled substance, inventory is on average around 15 days on hand... Jornay for the third quarter, I believe, was 17 days on hand."
* Jeevan Larson, Truist: Asked about adherence rates for Jornay and business development. Dreyer responded adherence is "in line with all ADHD medications where we see a typical adherence curve of 9 to 10 months per TRx."
* John Gionco, Needham: Inquired about Nucynta gross to net and rebate settlements. Tupper disclosed, "The rebate settlement benefit in the third quarter was just under $3 million at $2.8 million... Nucynta IR was at -- because of that benefit, 28.5% and Nucynta ER was 31.8%."
* Alexandra von Riesemann, Piper Sandler: Asked about the size and focus of potential BD transactions. Karnani said, "we are willing to take on -- lever up to about 3x net debt over EBITDA... at this point in time, we are focused on commercial or very near commercial assets."

SENTIMENT ANALYSIS

* Analysts expressed a positive tone, congratulating management on growth and seeking clarification on drivers behind the results. Their questions focused on inventory movements, sales force effectiveness, adherence rates, and business development, reflecting constructive interest.
* Management maintained a confident and transparent tone in both prepared remarks and Q&A, providing detailed responses and reiterating raised guidance. Karnani and Tupper used definitive language when discussing outlook and strategy, and Dreyer highlighted early signs of commercial success.
* Compared to the previous quarter, both analyst and management sentiment appeared more positive, with increased emphasis on execution and momentum.

QUARTER-OVER-QUARTER COMPARISON

* Guidance was raised from 19% to 24% year-over-year revenue growth, and Jornay PM revenue outlook increased from $140–$145 million to $145–$150 million.
* The company reported a sharper increase in net income and EPS versus the prior quarter, with a notable improvement in gross to net for Jornay.
* Management’s tone grew more confident, highlighting record revenues and operational execution. Analyst questions shifted from general strategy to more granular details about product performance and future growth levers.
* The focus on business development remained, but management reiterated discipline in transaction size and risk profile.

RISKS AND CONCERNS

* Management acknowledged ongoing costs to commercialize Jornay and targeted investments to drive future growth, impacting operating expenses.
* Analysts probed about inventory management, seasonality in gross to net, and the timing of commercial impact from the sales force expansion.
* There were questions about rebate settlements and their impact on reported results, as well as adherence rates and future business development strategy.
* Management described mitigation strategies including seasonality planning, improved contracting, and disciplined capital deployment.

FINAL TAKEAWAY

Collegium Pharmaceutical reported another record quarter with significant revenue and adjusted EBITDA growth, supported by robust performance from both Jornay PM and the pain portfolio. Management raised full-year guidance for revenue, adjusted EBITDA, and Jornay PM, citing durable product performance, successful commercial execution, and strategic capital deployment. The company highlighted ongoing investments in sales force and marketing, and signaled further impact from these initiatives in 2026 and beyond, while maintaining a disciplined approach to business development and capital allocation.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/coll/earnings/transcripts]

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