Collegium Pharmaceutical, Inc. Q4 2025 Earnings Call Summary

Collegium Pharmaceutical, Inc. Q4 2025 Earnings Call Summary Moby Intelligence Fri, February 27, 2026 at 5:32 AM GMT+8 3 min read In this article:

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Collegium Pharmaceutical, Inc. Q4 2025 Earnings Call Summary - Moby

Strategic Performance and Operational Context

• Achieved record full-year net revenues of $780.6 million, a 24% increase driven by the first full year of Jornay PM ownership and continued growth in the core pain portfolio.

• Jornay PM delivered 48% revenue growth compared to pro forma 2024, supported by a strong back-to-school season and the initial impact of sales force expansion from 125 to 180 representatives.

• The pain portfolio, comprising Belbuca, Xtampza ER, and Nucynta, grew 6% year-over-year to $631.7 million, reinforcing management's view that these revenues are more durable than market expectations.

• Successfully transitioned the Nucynta franchise to an authorized generic (AG) model with Hikma Pharmaceuticals, utilizing a profit-share structure to maintain value against third-party generic competition.

• Strengthened the balance sheet by closing a $980 million syndicated credit facility, reducing interest costs and providing nearly $400 million in additional liquidity for future portfolio diversification.

• Operational efficiency enabled the company to reach a net leverage ratio of less than 1 time, meeting an ambitious deleveraging target set earlier in the year.

2026 Outlook and Strategic Priorities

• Projecting 2026 Jornay PM revenue of $190 million to $200 million, representing over 30% annual growth as the expanded sales force reaches full productivity.

• Anticipating stable Jornay PM gross-to-net margins in the mid-60% range for 2026, with typical seasonal pressure expected in the first quarter due to insurance deductible resets.

• Guidance for 2026 total product revenue of $805 million to $825 million accounts for the impact of the Nucynta AG launch and continued stability in the branded pain market.

• Strategic focus remains on acquiring commercial or near-commercial assets with exclusivity into the 2030s, specifically targeting neuropsychiatry, pediatrics, and rare disease indications.

• Management expects to maintain disciplined capital allocation, balancing debt repayment with opportunistic share repurchases from the $150 million remaining authorization.

Financial Adjustments and Risk Factors

• Recorded a one-time GAAP loss of approximately $16 million on the extinguishment of debt related to the refinancing of the prior term loan.

• Identified first-quarter seasonal dynamics as a recurring headwind, where higher patient out-of-pocket costs typically lead to a modest quarter-over-quarter revenue decline.

• The Nucynta ER authorized generic launch is scheduled for Q1 2026, completing the transition of the franchise to the Hikma partnership model.

• Operating expenses increased 58% on a non-GAAP basis in 2025, reflecting the structural step-up in costs required to support the expanded ADHD commercial infrastructure.

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Q&A Session Highlights

Assumptions underlying Jornay 2026 guidance and competitive landscape

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• Management clarified that the 30%+ growth forecast for Jornay is driven entirely by volume demand, as gross-to-net margins are expected to remain flat year-over-year.

• The company does not see any material competitive threats from upcoming ADHD launches, citing Jornay's unique evening-dosing technology as a sustainable differentiator.

Peak sales potential and ramp-up timing for Jornay PM

• Management declined to provide a specific peak sales figure, noting they are still evaluating the full impact of the April 2025 sales force expansion.

• The company expects a clearer picture of the long-term ramp and peak opportunity once the new sales team completes its 6-to-9 month productivity curve.

Promotional sensitivity of pain brands vs. generic entry

• Belbuca and Xtampza remain highly promotionally sensitive, requiring active field force support to navigate complex payer environments despite being later in their life cycles.

• Management maintains the flexibility to pivot or moderate investment quickly if a generic entry occurs, but intends to invest through potential loss-of-exclusivity dates due to market uncertainty.

Strategic rationale for potential rare disease acquisitions

• Management confirmed interest in rare disease assets as a 'beachhead' for diversification, provided they are capital-efficient and can leverage existing patient service hubs.

• While open to new therapeutic areas, the primary preference is for assets that offer operating leverage by calling on the company's existing psychiatry and pediatric prescriber base.

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