Collegium Pharmaceutical Inc (COLL)

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Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q3 2023 Earnings Call Transcript

Excerpts:
Xtampza ER will maintain its current formulary position and accounts representing 57% of the opportunity at an overall lower rebate level, and plans were Xtampza ER will move to non-formulary, it will be at parity with OxyContin.

We ended the quarter with over $300 million in cash and marketable securities,

For full-year 2023, we expect to grow revenue greater than 20% year-over-year and adjusted EBITDA at 1.5x that rate. Our accomplishments renegotiating of Belbuca and Xtampza ER payor contracts position both products for improved gross-to-nets to support revenue growth in 2024.

As we have demonstrated through our completed $50 million accelerated share repurchase program, and now our additional $25 million accelerated share repurchase program, we are committed to opportunistically returning value to our shareholders.

We believe that our stock continues to be significantly undervalued and we will continue to leverage our share repurchase program to return capital to our shareholders.

Over the last two years, we have successfully renegotiated contracts that represented 84% of all Xtampza ER prescriptions. In 77% of the renegotiation opportunity, we were able to maintain Xtampza ER's formulary position and materially roll back the overall rebate level.

As you know we are locked into the paying down of our debt and as we’ve been very clear, we think there is a significant disconnect between the intrinsic value of the company and where our share price has been.

Further reinforcing our commitment to deliver value to our shareholders through effective capital deployment, today we announced as part of our $100 million share repurchase program, our Board has authorized us to enter into a new $25 million accelerated share repurchase program. We believe that our stock continues to be significantly undervalued and we view our share repurchase program as productive use of our capital to generate high returns for our shareholders.

Q: One more from me on the BD front. What’s your funnel essentially look like now. Are there any opportunities essentially in other non-abuse-deterrent options available in the market now, and then, if not other opportunities out there and what does the competitive landscape essentially look like and also valuations in the current market environment.
A: ....we’re open to anything that really hits the profile of a differentiated commercial stage asset with $150 million plus peak sales potential with exclusivity into the 2030s. Whatever acquisition, we’re able to achieve, we will not be like the ones we’ve done in the past where we’re leveraging our PAIN infrastructure, we’ll be setting a second commercial beachhead. So these will be a lower synergy, more strategically oriented deal for Collegium and that’s our focus. In terms of valuations, what I would say, Les, is right now, what we’ve seen is a lot of receptivity in willingness to engage.
And whilst the financial strength of our company and the fact that we don’t have to do a deal, we aspire to do one will continue to engage and work with urgency. But we won’t strike until we get to a price that we’re comfortable with and believe creates value for our shareholders.

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