Collegium Pharmaceutical, Inc. (COLL) Earnings

Management highlights

- Corporate Strategy and Portfolio Diversification * The company is executing on a 2024 strategy to diversify beyond pain management into the growing ADHD market, which was significantly strengthened by the May 2026 acquisition of Astaris. * The company will relocate its corporate headquarters to downtown Boston in Q1 2027 to better integrate into the global life sciences ecosystem. * Core 2026 H2 strategic priorities are: growing the ADHD business, maximizing value of the pain portfolio, and disciplined strategic capital deployment to drive long-term shareholder value. - ADHD Portfolio Operational Progress * Jornet PM (the only ADHD stimulant with immediate all-day symptom control on waking) hit all-time growth milestones: prescriptions up 13.1% YoY, prescribers over 30,000 (up 17.6% YoY), and branded long-acting methylphenidate market share grew to 29.2% (up 5.8pp YoY). Growth was seen across both the 80% pediatric/adolescent segment (10.7% Rx growth YoY) and 20% adult segment (23% Rx growth YoY). * Market research ranks Jornet PM as the #1 most differentiated branded ADHD medicine, with 70% of surveyed HCPs reporting strong intent to increase prescribing, and unaided HCP awareness up to 67% from 52% a year prior. * Astaris acquisition integration and sales force training is complete ahead of the back-to-school season. Astaris is the only ADHD treatment with combined fast- and long-acting medicine in one capsule, IP-protected through 2037, highly complementary to Jornet PM, and immediately accretive to adjusted EBITDA. * The ADHD sales force has been expanded to 190 representatives from 180 pre-acquisition, targeting 27,000 HCPs up from 21,000 in 2025. Existing Jornet patient outreach tactics will be deployed for Astaris to drive awareness and adoption. - Pain Portfolio Operational Progress * The pain portfolio continues to serve as a durable cash-generating foundation for the business, funding ADHD growth investments and other strategic initiatives. * Bell Buca delivered strong 10% YoY revenue growth on stable prescription demand, and recently secured formulary access for an additional 9 million lives, effective Q4 2026. * Nucinta franchise revenue came in lower than expected due to net pricing pressure from authorized generic versions of the product. Xtansa ER revenue declined due to broader branded opioid market pressure and favorable YoY comparison from 2025 Q2 rebate settlement timing. - Overall Financial Performance * Adjusted EBITDA was $113.8 million, up 8% YoY. Adjusted EPS was $1.92, up from $1.60 YoY. Operating cash flow was $71.3 million for the quarter, with $129.5 million in cash, equivalents and marketable securities as of June 30, 2026.

Guidance

- Full-year 2026 revenue guidance for Jornet PM is maintained at $190 to $200 million, with gross-to-net expected to remain stable in the mid-60% range. - Full-year 2026 revenue guidance for Astaris was upwardly revised to $65 to $75 million from prior estimates, reflecting strong early performance post-acquisition. - Full-year 2026 total product revenue guidance is updated to $825 to $855 million, representing an 8% year-over-year increase at the midpoint, with lower Nucinta revenue offset by Jornet growth and Astaris contributions. - Full-year 2026 adjusted EBITDA guidance is set at $445 to $470 million, which is essentially flat compared to 2025. - SG&A spend in H2 2026 is expected to be mid-to-upper single digit percentage higher than H1 2026, to accommodate Astaris-related investments, with Q3 spend slightly higher than Q4 due to back-to-school seasonal marketing activities.

Segment performance

Total net product revenue for Q2 2026 was $199.9 million, a 6% year-over-year increase. Breakdown by segment/product: - ADHD segment: Total revenue was $59.0 million, accounting for 29.5% of total net product revenue. Jornet PM (Journey) generated $46.1 million in net revenue, up 41% year-over-year. Astaris contributed $12.9 million in net revenue, reflecting ~6 weeks of commercial sales post-acquisition. - Pain portfolio segment: Total revenue was $137.9 million, accounting for 69% of total net product revenue. Bell Buca generated $57.7 million in net revenue, up 10% year-over-year. Xtansa ER generated $45 million in net revenue, down 14% year-over-year. The Nucinta franchise generated $35.2 million in net revenue, down 24% year-over-year, including $5.1 million from profit share on authorized generic versions of Nucinta and Nucinta ER.

Risks & headwinds

- Nucinta franchise revenue has declined more than expected due to net pricing pressure from authorized generic versions of the product. - TEVA has the right to launch a generic version of Bell Buca in January 2027 under an existing settlement agreement, creating future revenue risk for the product. - All forward-looking statements involve inherent risks and uncertainties that could cause actual future results to differ materially from current expectations, as detailed in the company's SEC filings.

Analyst Q&A

• Q: Has Nucinta's generic net pricing stabilized, and what is the outlook for generic competition and authorized generic plans for Bell Buca? /

  A: Management confirms Nucinta's net pricing has stabilized, with this reflected in updated full-year guidance. First half 2026 revenue had timing dynamics from initial supply to the authorized generic distributor, and some quarterly lumpiness may persist due to standard revenue recognition for profit share arrangements. For Bell Buca, TEVA can launch a generic in January 2027 per settlement terms, but management does not believe this aligns with TEVA's stated strategy. An authorized generic agreement has been in place for years, triggered only if an external generic launches. Alvagen is barred from entering the market until December 2032 via litigation.

• Q: Was Astaris' strong Q2 performance driven by channel stockpiling after the acquisition, and what is the current net pricing level for Nucinta's authorized generics? /

  A: Management confirms Astaris' outperformance reflected actual commercial demand, not channel dynamics or excess inventory stocking. The stronger than expected revenue was due to limited consensus expectations for the partial post-acquisition quarter. For Nucinta authorized generics, net profit share equals ~10-15% of branded Nucinta IR net price, and ~20-25% of branded Nucinta ER net price, matching the discount levels the analyst referenced.

• Q: Are HCPs comfortable with the differentiation between Astaris and Jornet PM, and can reps get enough time to detail both products? What is the SG&A outlook for H2 2026? /

  A: Pre-acquisition diligence and post-launch feedback confirm HCPs already understand the complementary positioning: Jornet PM is for patients needing immediate all-day symptom control on waking, while Astaris offers flexible rapid-onset effect that lasts into the evening. No new extensive education is needed, and having two complementary products has actually increased the amount of physician time reps secure, which is beneficial ahead of back-to-school season. For SG&A, H2 2026 spend will be mid-to-upper single digit higher than H1, with Q3 slightly higher than Q4 due to back-to-school marketing activities.

• Q: What is the current business development strategy post-Astaris acquisition, especially given past mentions of rare disease? /

  A: The core disciplined capital deployment strategy remains unchanged: pursuing complementary acquisitions, paying down debt, and opportunistic capital return via share repurchases. Now that the ADHD beachhead is established, the company will prioritize additional differentiated assets in ADHD, adjacent psychiatry or broader CNS areas, while still opportunistically evaluating rare disease assets that meet its criteria: commercially or near-commercial stage, $300-$500 million peak net sales, long IP duration, and U.S.-focused to leverage existing commercial infrastructure.