Collegium Pharmaceutical Earnings Call: Jornay Leads Growth

Collegium Pharmaceutical Inc. ((COLL)) has held its Q4 earnings call. Read on for the main highlights of the call.

Collegium Pharmaceutical’s latest earnings call struck a decidedly upbeat tone, as management highlighted record 2025 results and broad-based commercial strength. Executives acknowledged some near-term pressure from higher operating expenses, elevated gross-to-net discounts, and product-specific volatility, but framed these as largely investment-driven and seasonal, outweighed by strong growth, cash generation, and improving leverage.

Record Revenue and Earnings Power

Collegium posted full-year 2025 net revenue of $780.6 million, a 24% increase versus 2024 that underscored the resilience of its pain and ADHD franchises. Adjusted EBITDA climbed 15% to a record $460.5 million, showcasing the company’s ability to translate top-line momentum into strong underlying earnings despite heavier spending.

Cash Flow Strength and Deleveraging

The company delivered $329.3 million in operating cash flow during 2025 and finished the year with $386.7 million in cash and marketable securities, up roughly $223.9 million from 2024. This robust cash generation allowed Collegium to drive net debt to adjusted EBITDA below 1x, giving it meaningful balance-sheet flexibility for future investment or capital returns.

Jornay PM Emerges as Growth Engine

Jornay PM was the standout performer, with prescriptions rising 20% in 2025 to more than 760,000 and revenue reaching $148.9 million, up 48% versus pro forma 2024. In the fourth quarter, prescriptions exceeded 200,000 and revenue hit $45.9 million, up 16% and 57% respectively, as the prescriber base surpassed 29,000 and market share in long-acting branded methylphenidate grew to roughly 26%.

Sales Force Expansion Fuels ADHD Momentum

Management credited aggressive commercial execution for Jornay’s acceleration, including expanding the ADHD sales team from about 125 to 180 representatives and broadening digital outreach to around 70,000 health-care providers. Average weekly Jornay prescriptions climbed about 20% from July to December and held steady into January, a notable feat given typical first-quarter headwinds.

Pain Portfolio Delivers Durable Growth

Collegium’s pain portfolio remained a dependable revenue pillar, generating $631.7 million in 2025, a 6% year-over-year increase. All three key brands grew for the year, with Belbuca reaching $221.7 million, Xtampza ER $199.3 million, and the Nucynta franchise $196.3 million, up 5%, 4%, and 11% respectively, supporting the overall growth profile.

Capital Structure Upgraded for Flexibility

The company enhanced its financial toolkit by closing a $980 million syndicated credit facility in December, featuring improved interest rates and more favorable terms. With a $580 million term loan, $300 million delayed-draw component, a $100 million revolver, and $25 million of shares repurchased in 2025 with $150 million still authorized, Collegium emphasized strategic flexibility for future moves.

Nucynta Authorized Generic with Profit Share

To navigate patent and competitive pressures, Collegium signed supply and quality agreements with Hikma to support authorized generics of Nucynta products. Hikma has already launched the immediate-release generic and is expected to launch Nucynta ER in early 2026, with Collegium retaining a significant profit share designed to monetize the franchise even as generic competition emerges.

Product Differentiation Backed by Real-World Data

Management highlighted fresh market research showing Jornay ranked as the most differentiated product among ADHD brands, a key commercial advantage in a crowded field. To reinforce this perception, the company completed four real-world evidence studies for Jornay and three for its pain portfolio, aiming to deepen physician confidence and support ongoing adoption.

Rising Operating Costs from Growth Investments

The strong top-line story came with a cost: GAAP operating expenses rose 37% to $283.6 million in 2025, while non-GAAP adjusted operating expenses jumped 58% to $237.3 million. Executives tied the increase directly to commercialization and marketing investments for Jornay, framing the spend as necessary to solidify long-term growth and scale.

GAAP Earnings Hit by Refinancing Charge

Despite robust non-GAAP performance, GAAP profitability slipped, with net income falling 9% to $62.9 million and basic EPS easing to $1.98 from $2.14. The decline was largely driven by a roughly $16 million one-time loss on the extinguishment of debt tied to the financing overhaul, masking the strength of underlying operations.

Xtampza ER Shows Quarterly Volatility

While Xtampza ER posted 4% full-year growth to $199.3 million, the brand stumbled in the fourth quarter, with revenue down 6% year over year to $48.6 million. Management flagged this as near-term volatility rather than a structural issue but acknowledged that the pain portfolio requires ongoing monitoring as market dynamics and payer pressures evolve.

High Gross-to-Net and Q1 Seasonality Weigh on Optics

Jornay’s financials continue to reflect heavy gross-to-net discounts, with full-year 2025 gross-to-net at roughly 64% and expected to stay in the mid-60% range in 2026. Management warned investors to expect typical first-quarter pressure from deductible resets and higher patient out-of-pocket costs, which should result in a modest sequential revenue dip despite healthy underlying demand.

Measured 2026 Outlook for Revenue and Margins

Company-wide guidance for 2026 points to modest growth, with total product revenue projected at $805 million to $825 million, about 4% above 2025, and adjusted EBITDA of $455 million to $475 million, roughly flat year over year. The outlook suggests limited near-term margin expansion as the company absorbs higher commercial investments and prepares for evolving competition in the pain segment.

Managing Competitive and LOE Risks in Pain

The authorized generic for Nucynta underscores the lifecycle and loss-of-exclusivity risks across Collegium’s pain portfolio, even as profit-sharing helps cushion the blow. Management emphasized its readiness to adjust promotional spending and resource allocation if generic competition intensifies, signaling a flexible approach to protecting profitability while harvesting cash from maturing assets.

Guidance Highlights Jornay as 2026 Growth Driver

Looking ahead, Collegium reaffirmed 2026 guidance, calling for total product revenue of $805 million to $825 million and adjusted EBITDA of $455 million to $475 million, implying low single-digit growth at the enterprise level. The standout is Jornay, which is expected to generate $190 million to $200 million in 2026, about 31% above 2025, even as gross-to-net levels stay in the mid-60% range amid seasonal Q1 pressure and the impact of the Nucynta generic is absorbed against a strengthened balance sheet.

Collegium’s earnings call painted a picture of a company in investment mode but firmly in control of its financial trajectory. Record revenue, strong cash flow, and falling leverage, coupled with Jornay’s rapid ascent, offset concerns about higher expenses, seasonal headwinds, and generic risk, leaving investors with a story of disciplined growth and ample financial firepower.