Collegium Pharmaceutical’s first quarter results were well received by the market, with management crediting growth in its ADHD medicine Jornay and stability in its pain portfolio as the primary drivers. CEO Vikram Karnani highlighted that Jornay prescriptions grew 24% year-over-year, and all three pain medicines delivered single-digit revenue growth, despite typical first-quarter headwinds. Karnani emphasized, “We have made significant progress on each of our strategic priorities,” citing the successful expansion of the sales force and continued investment in product differentiation as key factors supporting performance.
Is now the time to buy COLL? Find out in our full research report (it’s free).
Collegium Pharmaceutical (COLL) Q1 CY2025 Highlights:
- Revenue: $177.8 million vs analyst estimates of $172.8 million (22.7% year-on-year growth, 2.9% beat)
- Adjusted EPS: $1.49 vs analyst estimates of $1.45 (2.8% beat)
- Adjusted EBITDA: $95.15 million vs analyst estimates of $96.5 million (53.5% margin, 1.4% miss)
- The company reconfirmed its revenue guidance for the full year of $742.5 million at the midpoint
- EBITDA guidance for the full year is $442.5 million at the midpoint, above analyst estimates of $438.5 million
- Operating Margin: 12.2%, down from 34.1% in the same quarter last year
- Market Capitalization: $962 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Collegium Pharmaceutical’s Q1 Earnings Call
- Les Sulewski (Truist Securities) asked about Jornay prescription seasonality and the sales force expansion’s geographic and frequency impact. Chief Commercial Officer Scott Dreyer explained that expanded reach and more frequent engagements are expected to show results later in 2025.
- Les Sulewski (Truist Securities) questioned the potential for Jornay’s delayed release technology to be applied to other compounds. CEO Vikram Karnani replied that previous attempts focused on methylphenidate, and current efforts are centered on maximizing Jornay’s growth potential.
- Les Sulewski (Truist Securities) inquired about the appetite for business development in the current environment. Karnani emphasized a disciplined approach, with capital deployment decisions guided by long-term shareholder value.
- Serge Belanger (Needham & Co.) asked about ADHD market growth, prescriber base composition, and sources of Jornay’s market share gains. Dreyer noted the market is growing 5-6% annually, with share gains driven mainly by switches from generic immediate-release products.
- David Amsellem (Piper Sandler) asked about optimal sales force size for Jornay and peak sales expectations. Dreyer described the current sales force as “right-sized” and Karnani said peak sales estimates would follow a full assessment of sales expansion impact.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) prescription growth trends for Jornay, especially following the expanded sales force and back-to-school campaigns, (2) stability and cash flow generation from the pain portfolio amid market headwinds and product exclusivity timelines, and (3) any updates on portfolio expansion or business development transactions. The company’s ability to manage expenses after recent investments will also be a key area of focus.
Collegium Pharmaceutical currently trades at $29.93, up from $27.28 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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