Collegium Pharmaceutical, Inc. · NASDAQ:COLL
Collegium Pharmaceutical — Q4 2023 Earnings Presentation
24 slides from Collegium Pharmaceutical's earnings presentation, Feb 22, 2024
Slide 1: Q4 and FY 2023 Earnings Report
Q4 and FY 2023 Earnings Report February 22, 2024 | Nasdaq: COLL
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as "predicts," "forecasts," "believes," "potential," "proposed," "continue," "estimates," "anticipates,"
Slide 3: Business Update
Business Update Joe Ciaffoni, President & Chief Executive Officer
Slide 4: Healthier people. Stronger communities.
Healthier people. Stronger communities. Mission Driven Building a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions. Doing Good As We Do Well Partnering with organizations driving equitable access to STEM education
Slide 5: 2023 Key Business Highlights
2023 Key Business Highlights • Record product revenues, net: $566.8M, up 22% YoY Delivered strong • Adjusted operating expenses: $123.6M, up 1% YoY2 financial performance1 • Record adjusted EBITDA: $367.0M, up 38% YoY2 • Grew Q4’23 Belbuca® prescriptions 3.2% YoY and 1.0% QoQ3 Generated momentum • A
Slide 6: Track Record of Strong Top- and Bottom-Line Growth
Track Record of Strong Top- and Bottom-Line Growth GROW LEVERAGE E X PA N D Product Revenues, Net Adjusted Operating Adjusted EBITDA4 Expenses4 $588M3 $567M2 $464M2 $388M3 $367M2 $277M1 $266M2 $122M2 $124M2 $123M3 $118M1 $101M1 2021 2022 2023 2024E 2021 2022 2023 2024E 2021 2022 2023 2024E 1. This f
Slide 7: 2024 Priorities: Operational Execution
2024 Priorities: Operational Execution DELIVER ON S T R AT E G I C A L LY Financial Deploy Capital Commitments • RAPIDLY pay down debt, de-levering on a quarterly • ACHIEVE record basis revenue, adjusted EBITDA and net income • OPPORTUNISTICALLY leverage $150M share • GENERATE record repurchase prog
Slide 8: Financial Highlights
Financial Highlights Colleen Tupper, Executive Vice President & Chief Financial Officer
Slide 9: FY 2023 Financial Highlights
FY 2023 Financial Highlights1 Record Product Revenues, Net Adjusted Operating Record Adjusted EBITDA2 Expenses2 +22% $567M $464M +38% $367M $266M +1% $122M $124M 2022 2023 2022 2023 2022 2023 1. This financial data was provided by Collegium in its Annual Report on Form 10-K filed with the SEC on Feb
Slide 10: Robust Operating Cash Flow Generation from Pain Portfolio
Robust Operating Cash Flow Generation from Pain Portfolio Cash Flows from Operating Activities1 +$151M $275M +$20M • Strong cash generation +$10M enables disciplined capital deployment strategy +$66M $124M • Executed $137M in share $94M $104M repurchases to date1 • Invested ~$1B in business $28M dev
Slide 11: 2024 Financial Guidance
2024 Financial Guidance1 Product Revenues, Net Adjusted Operating Expenses3 Adjusted EBITDA3 (Excluding Stock-Based Compensation) (Excluding Stock-Based Compensation) $580–595M $120–125M $380–395M Up 3.7% YoY 2 Down (0.9)% YoY 2 Up 5.6% YoY 2 1. This financial data was provided by Collegium in its p
Slide 12: Disciplined Capital Deployment
Disciplined Capital Deployment Rapidly Pay Down Debt • Ended 2023 with net debt/adjusted EBITDA of ~1.0x; expect de minimis by year-end 20241,2 • Repaid $162.5M of Pharmakon loan in 2023 ($650M issued 3/22/2022) and will repay $183.3M in 2024 2 • Pharmakon loan expected to be paid in full in Q1’262
Slide 13: Opportunistic Share Repurchases
Opportunistic Share Repurchases1 Returned $137M of Capital to Shareholders from 2021 to 2023 $75M Repurchased 6.3M shares Repurchased at $25M at average price of $21.65 average price of ASR $27.09 $43M Average Repurchase Price $50M 2021 - $19.93 $19M ASR $25M 2022 - $17.57 ASR 2023 - $24.29 2021 202
Slide 14: Commercial Update
Commercial Update Scott Dreyer, Executive Vice President & Chief Commercial Officer
Slide 15: Q4'23 Commercial Update
Q4’23 Commercial Update Large Collegium Portfolio has Over 50% Branded ER Market Share1,2 Prescriber Bases3 17% growth in Q4’23 revenue compared to Q4’22 9,900 38% growth in Q4’23 revenue compared to Q4’22 17,000 Stable revenue for Nucynta Franchise compared to Q4’22 11,100 1. IQVIA NPA through Dece
Slide 16: Well Positioned to Grow Belbuca Prescriptions and Revenue in 2024
Well Positioned to Grow Belbuca Prescriptions and Revenue in 2024 Positive Momentum for Belbuca Coming Out of 2023 GROWING BELBUCA E X PA N D I N G STRONG BRAND PRESCRIPTIONS BUPRENORPHINE MARKET F U N D A M E N TA L S & PAY O R PROGRESS +6.4% Growth in Q4’23 Belbuca prescriptions1 #1 highest rated
Slide 17: Xtampza ER Poised to Grow Revenue in 2024
Xtampza ER Poised to Grow Revenue in 2024 SUCCESSFUL CONTRACT S T R O N G B R A N D F U N D A M E N TA L S R E N E G OT I AT I O N S T R AT E G Y & MARKET ACCESS POSITION Plans representing 84% of Xtampza ER prescriptions renegotiated #1 highest rated ER oxycodone in terms of product in 2022 and 202
Slide 18: Closing Remarks
Closing Remarks Joe Ciaffoni, President & Chief Executive Officer
Slide 19: Creating Long-Term Value Through Operational Execution
Creating Long-Term Value Through Operational Execution DELIVER ON Financial commitments of top- and bottom- Creating value for line growth: shareholders by: • Achieve record revenue, adjusted EBITDA and net income ✓ Growing revenue • Generate record free cash flow ✓ Increasing profitability S T R AT
Slide 20: Q&A
Q&A
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 22: Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
Collegium Pharmaceutical, Inc. Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (in thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 GAAP net income (loss) $ 31,940 $ (7,199) $ 48,155 $ (25,002) Adjustments: Interest expense 19,281 20,575
Slide 23: Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses
Collegium Pharmaceutical, Inc. Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses (in thousands) (unaudited) Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 GAAP operating expenses $ 32,942 $ 38,032 $ 159,208 $ 176,169 Adjustments: Stock-based compe
Slide 24: Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS
Collegium Pharmaceutical, Inc. Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income and Adjusted Earnings Per Share (in thousands, except share and per share amounts) (unaudited) Three Months Ended December 31, Years Ended December 31, 2023 2022 2023 2022 GAAP net income (loss) $ 31,940 $
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