Collegium Pharmaceutical Inc. ((COLL)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Collegium Pharmaceuticals’ recent earnings call highlighted a robust financial performance, marked by significant revenue growth and successful execution of strategic priorities. Despite increased operating expenses and a decline in GAAP net income, the overall business outlook remains optimistic with raised financial guidance and a strong commitment to shareholder value.
Record Quarterly Revenue and Growth
Collegium Pharmaceuticals reported a record quarterly revenue of $188 million, marking a 29% increase year-over-year. This impressive growth was complemented by a 9% increase in adjusted EBITDA, showcasing the company’s strong financial performance across its portfolio.
Significant Growth in Jornay PM
Jornay PM emerged as a key growth driver, with a 23% year-over-year increase in prescriptions and record quarterly revenues of $32.6 million. The product’s market share in the long-acting branded methylphenidate market grew to 23%, reflecting a 7.6 percentage point increase year-over-year.
Pain Portfolio Performance
The pain portfolio also contributed to the company’s success, generating record revenues of $155.4 million, a 7% increase year-over-year. All three core pain medicines exhibited year-over-year revenue growth, underscoring the portfolio’s strength.
Share Repurchase Program
In a move to return value to shareholders, Collegium completed a $25 million accelerated share repurchase program and authorized a new $150 million share repurchase program, highlighting their commitment to shareholder value.
Raised Financial Guidance
Collegium raised its 2025 financial guidance, anticipating a total revenue growth of 19% year-over-year and adjusted EBITDA growth of 12% year-over-year. This optimistic outlook reflects the company’s strategic investments and growth initiatives.
Increased Operating Expenses
The company reported a 69% year-over-year increase in GAAP operating expenses and a 104% increase in non-GAAP adjusted operating expenses. These increases are attributed to the costs associated with commercializing Jornay and expanding the sales force.
Decline in GAAP Net Income
Despite the strong revenue performance, GAAP net income declined to $12 million from $19.6 million in the second quarter of 2024, reflecting the impact of increased operating expenses.
Forward-Looking Guidance
During the earnings call, Collegium provided updated guidance reflecting their strong financial performance and strategic progress. The company expects a 19% year-over-year growth in total revenue and a 12% increase in adjusted EBITDA for 2025. Jornay’s revenue is projected to reach $140-$145 million, a 42% growth from 2024, highlighting the company’s focus on strategic investments and market expansion.
In conclusion, Collegium Pharmaceuticals’ earnings call conveyed a positive sentiment, driven by record revenues and strategic growth initiatives. Despite challenges with increased expenses and a decline in net income, the company’s raised financial guidance and commitment to shareholder value paint an optimistic picture for the future.