Collegium Pharmaceutical Inc (COLL)

[floblu14]

New SEEKING ALPHA report on COLL - NOVEMBER 9

My Thoughts on Q3
If I had to give you one takeaway from Collegium’s third-quarter earnings, it would be that the company is able to execute and make progress in every facet of their business. The earnings revealed that their business development efforts have been outstanding. The BDSI deal has been a seamless integration. The addition of the BDSI products helped deliver record net revenue and adjusted EBITDA. The company mentioned they will continue to evaluate additional assets that are “commercial stage opportunities with peak sales potential of over $150M” and are “differentiated with exclusivity that runs into the 2030s.”

On the commercial side, the renegotiation of Xtampza ER contracts will improve the gross-to-net of 54% of their prescription starting in January 2023, which should instantaneously speed up top-line growth. Next year they will renegotiate with plans that constitute an additional 30% of all prescriptions, so there is room for improvement in the future.

On the financial front, the company’s strong financial position is bolstered by hearty cash generation that has allowed them to promptly pay down debt. In fact, Collegium anticipates paying down $100M in debt by March of next year and will fully pay off the Pharmakon loan by March 2026. Into the bargain, the company is returning value to their shareholders with a $100M share repurchase program.

Overall, I believe Collegium’s Q3 earnings show that Collegium has once again made progress to hit their strategic, operational, and financial goals to ensure long-term growth.

READ MORE:
https://seekingalpha.com/article/4555193-collegium-pharmaceutical-stock-changing-strategy-after-q3-earnings-beat