Q3 2025 Collegium Pharmaceutical Inc Earnings Call
Operator 2: Greetings, welcome to the Collegium Pharmaceutical, Inc. Q3 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference call is being recorded. I will now turn the call over to Ian Karp, Head of Investor Relations at Collegium. Thank you. You may begin.
Greetings and welcome to the Collegium Pharmaceuticals third quarter 2025 earnings Conference call.
This time, all participants are in a listen only mode.
A question and answer session will follow the formal presentation, if anyone should require operator assistance during the conference. Please.
Please press star zero on your telephone keypad.
Please note that this conference call is being recorded.
Now I'll turn the call over to Ian Karp head of Investor Relations at Felicia. Thank you you may begin.
Ian Karp: Great. Thanks. Welcome to Collegium Pharmaceutical Q3 2025 earnings conference call. I'm joined today by Vikram Karnani, our President and Chief Executive Officer, Colleen Tupper, our Chief Financial Officer, and Scott Dreyer, our Chief Commercial Officer. Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements involve risks and uncertainties as detailed in the company's periodic reports filed with the Securities and Exchange Commission. Our future results may differ materially from our current expectations discussed today. Our earnings press release and this call will include discussion of certain non-GAAP information.
Great. Thanks, a welcome to Collegium Pharmaceuticals third quarter 2025 earnings conference call I'm joined today by Vikram Cardone, our president and Chief Executive Officer.
Tucker, our Chief Financial Officer, and Scott Dreyer, our Chief commercial officer before we begin today's call we want to remind participants that none of the information presented today is intended to be promotional and that any forward. Looking statements made today are made pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1995, you are cautioned that such forward looking.
<unk> involve risks and uncertainties as detailed in the Companys periodic reports filed with the Securities and Exchange Commission.
Our future results may differ materially from our current expectations discussed today are.
Our earnings press release, and this call will include discussion of certain non-GAAP information you can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website and with that I'll now turn the call over to our president and CEO Vikram Karnataka.
Ian Karp: You can find our earnings press release, including relevant non-GAAP reconciliations, on our corporate website. With that, I'll now turn the call over to our President and CEO, Vikram Karnani.
Vikram Karnani: Thank you, Ian. Good morning, everyone, and thank you for joining the call. I am pleased to report that we delivered another quarter of both top and bottom-line growth, driven by a strong start to the back-to-school season for JORNAY PM and robust revenues from our pain portfolio. As our financial results reflect, we continue to make considerable progress on our three strategic priorities, which include driving significant growth for Jornay, maximizing the durability of our pain portfolio, and strategically deploying capital to further enhance shareholder value. Jornay prescription growth accelerated in the quarter during the critical back-to-school season, and early signals indicate that our incremental commercial efforts are being well received by healthcare providers, caregivers, and patients. We also generated another quarter of meaningful revenue growth across our pain portfolio.
Thank you Ian good morning.
Everyone and thank you for joining the call.
I am pleased to report that we delivered another quarter of both top and bottom line growth driven by a strong start to the back to school season for Jordan, APM and robust revenues from our pain portfolio.
As our financial results reflect we continue to make considerable progress on our three strategic priorities, which include driving significant growth for Germany.
<unk>, the durability of our pain portfolio and strategically deploying capital to further enhance shareholder value.
Jordan, a prescription growth accelerated in the quarter during the critical back to school season, and early signals indicate that our incremental commercial efforts are being well received by healthcare providers caregivers and patients.
We also generated another quarter of meaningful revenue growth across our pain portfolio.
Vikram Karnani: The continued growth across our portfolio is a testament to the outstanding focus and execution driven by the entire Collegium team. As I reflect on my first full year at Collegium, I am incredibly proud of what our team has accomplished. We successfully expanded into a new therapeutic area, rapidly integrated Jornay into our portfolio, and made strategic investments to drive future growth. We also continue to generate robust performance from our pain portfolio and are increasingly confident that these revenues will prove to be more durable than many had previously expected. We have also strategically deployed our capital through share repurchases and rapid debt prepayment and have remained active in our pursuit of additional differentiated medicines to add to our growing portfolio via business development. Of course, none of this success is possible without a strong commitment to the patient communities we serve.
Continued growth across our portfolio is a testament to the outstanding focus and execution driven by the entire Allegiant team.
As I reflect on my first full year of Collegium I'm incredibly proud of what our team has accomplished.
We successfully expanded into a new therapeutic area rapidly integrated journey into our portfolio and made strategic investments to drive future growth.
We also continue to generate robust performance from our pain portfolio and are increasingly confident that these revenues will prove to be more durable than many had previously expected.
We have also strategically deployed our capital through share repurchases and rapid debt repayment and have remained active in our pursuit of additional differentiated medicines to add to our growing portfolio of business development.
Of course, none of this success is possible without a strong commitment to the patient communities. We serve we recently celebrated and supported initiatives for both paint awareness month in September and ADHD awareness month in October serving as an opportunity to raise awareness bolster education and honor the patients and communities.
Vikram Karnani: We recently celebrated and supported initiatives for both Pain Awareness Month in September and ADHD Awareness Month in October, serving as an opportunity to raise awareness, bolster education, and honor the patients and communities we serve who are at the center of everything we do. I would like to thank everyone on the Collegium team for their hard work, discipline, and dedication to our mission. Without you, none of our accomplishments would have been possible. We look forward to finishing the year strong and carrying this momentum into 2026 and beyond. In Q3 2025, we delivered strong financial performance, including record quarterly net revenue that grew 31% year over year and record adjusted EBITDA that grew 27% year over year.
We serve who are at the center of everything we do.
I would like to thank everyone on the Collegium team for their hard work discipline and dedication to our mission without you none of our accomplishments would have been possible.
We look forward to finishing the year strong and carrying this momentum into 2026 and beyond.
In the third quarter of 2025, we delivered strong financial performance, including record quarterly net revenue that grew 31% year over year and record adjusted EBITDA grew 27% year over year.
Vikram Karnani: Our lead growth driver, JORNAY PM, generated a record $41.8 million in net revenue and prescriptions grew 20% year over year. We also grew net revenue from our pain portfolio to a record $167.6 million, up 11% year over year. We generated $78.4 million of cash from operations, repaid $16.1 million of debt, and ended the Q3 with $285.9 million in cash, further strengthening our balance sheet. Based on the continued strength of our financial performance to date, we are raising our 2025 financial guidance. We now expect to grow total revenue by approximately 24% year over year, driven by our continued confidence in the durability of our pain portfolio and significant growth from Jornay.
Lead growth driver join APM <unk>.
Generated a record $41 8 million in net revenue and prescriptions grew 20% year over year.
We also grew net revenue from our pain portfolio to a record $167 6 million up 11% year over year.
We generated $78 4 million of cash from operations.
Page $16 1 million of debt and entered and ended the third quarter with $285 9 million in cash further strengthening our balance sheet.
Based on the continued strength of our financial performance to date, we are raising our 2025 financial guidance. We now expect to grow total revenue by approximately 24% year over year, driven by our continued confidence in the durability of our pain portfolio and significant growth from journey.
Vikram Karnani: We now expect Journay revenue to be in the range of $145 to 150 million, representing 46% growth from 2024 pro forma revenue. Outside of our financial achievements and consistent with our commitment to leading with science, we presented 9 posters at PAINWeek 2025, highlighting real-world data from our differentiated pain portfolio. We also had 2 articles published in the peer-reviewed Pain Research and Management and the Journal of Pain Research focused on real-world benefits of treatment with BELBUCA and XTAMPZA ER. We recently presented 2 posters at the American Academy of Child and Adolescent Psychiatry and Neuroscience Education Institute conferences, highlighting real-world data from our differentiated neuropsychiatry product, JORNAY PM.
We now expect ordinary revenue to be in the range of one $145 million to $150 million, representing 46% growth from 2024 pro forma revenue.
Outside of our financial achievements and consistent with our commitment to leading with science, we presented nine posters at pain week 2025, highlighting real world data from our differentiated pain portfolio. We also had two articles published in the peer reviewed pain research and management Journal <unk>.
And the journal of Pain research focus on real world benefits of treatment with BELBUCA and extensive E R.
And we recently presented two posters at the American Academy of child, and adolescent Psychiatry, and Neuroscience Education Institute conferences, highlighting real world data from our differentiated neuropsychiatry product John APM.
Vikram Karnani: Finally, we recently had the privilege of ringing the opening bell at Nasdaq to celebrate a significant milestone, our 10-year anniversary as a publicly traded company, marking a decade of delivering differentiated medicines to patients and creating value for our shareholders. We look forward to our next phase of growth and the exciting opportunities ahead. For the remainder of 2025, we are focused on driving significant growth for JORNAY PM, maximizing our pain portfolio, and strategically deploying capital. We remain intent on driving significant growth for Jornay by raising awareness of its highly differentiated profile among healthcare providers, patients, and caregivers. Throughout the year, we have made strategic commercial investments to raise awareness, especially ahead of the back-to-school season. We are already seeing early indicators of positive impact and are pleased with Jornay's growth in Q3.
Finally, we recently had the privilege of bringing the opening bell at NASDAQ to celebrate a significant milestone our 10 year anniversary as a publicly listed publicly traded company.
Marking a decade of delivering differentiated medicines to patients and creating value for our shareholders. We look forward to our next phase of growth and the exciting opportunities ahead.
For the remainder of 2025, we are focused on driving significant growth for Jordan, APM, maximizing our pain portfolio and strategically deploying capital.
We remain intent on driving significant growth with G&A by raising awareness of its highly differentiated profile among health care providers patients and caregivers.
Throughout the year, we have made strategic commercial investments to raise awareness, especially ahead of the back to school season.
We are already seeing early indicators of positive impact and are pleased with Germany's growth in the third quarter. We expect to continue this momentum in 2026 and beyond.
Vikram Karnani: We expect to continue this momentum in 2026 and beyond. Turning to our pain portfolio, we delivered another quarter of solid year-over-year revenue growth, with revenues from all three core pain medicines growing for the Q3 in a row. We expect our pain portfolio to continue to provide a durable financial base that fuels our ability to grow further and diversify our business. We remain committed to creating value for our shareholders through execution of our capital deployment strategy, which balances expansion through business development, opportunistic share repurchases, and rapid debt repayment. We believe we are uniquely positioned for long-term growth. Our existing portfolio provides a strong financial foundation from which we consistently generate significant cash flows, and there is still meaningful opportunity to grow our medicines, particularly JORNAY PM.
Turning to our pain portfolio, we delivered another quarter of solid year over year revenue growth with revenues from all three core pain medicines growing for the third quarter in a row.
We expect our pain portfolio to continue to provide a durable financial base that fuels, our ability to grow further and diversify our business.
We remain committed to creating value for our shareholders through execution of our capital deployment strategy, which balances expansion through business development.
Opportunistic share repurchases and rapid debt repayment.
We believe we are uniquely positioned for long term growth our existing portfolio provides a strong financial foundation from which we consistently generate significant cash flows and there is still meaningful opportunity to grow our medicines, particularly Jordan APM.
Vikram Karnani: Our track record of successful business development, including rapidly integrating and investing behind newly acquired assets, provides opportunities for further expansion. We remain active in our search for additional business development opportunities to drive long-term growth and generate value for our shareholders. With that, I will now turn it over to Scott to discuss commercial highlights.
Our track record of successful business development, including rapidly integrating and investing behind newly acquired assets provides opportunities for further expansion. We remain active in our search for additional business development opportunities to drive long term growth and generate value for our shareholders with that I will now turn it over to Scott to discuss commercial highly.
Right.
Scott Dreyer: Thanks, Vikram. Good morning, everyone. In Q3, we continued to generate positive momentum for our lead growth driver, JORNAY PM, driven by strong brand fundamentals and our ongoing commercial efforts. We delivered growth in Jornay prescriptions, market share, and prescribers, which I'll discuss in detail in a moment. Jornay is a highly differentiated medicine and the only ADHD stimulant with once-daily evening dosing that provides symptom control upon awakening, throughout the afternoon, and into the evening. Many patients, including pediatrics, adolescents, and adults, report challenges starting their day, which is a key area of differentiation for Jornay, as it begins working when patients wake up in the morning. In addition to efficacy upon awakening, symptom control throughout the day is important for most patients because it can eliminate the need for an additional booster at school or work. Jornay delivers efficacy that lasts throughout the day.
Thanks, Vikram and good morning, everyone in the third quarter, we continued to generate positive momentum for our lead growth driver Joern APN driven by strong brand fundamentals and our ongoing commercial efforts, we delivered growth in G&A prescriptions market share and prescribers, which I'll discuss in detail in a moment joining us.
The highly differentiated medicine, and the only ADHD stimulant with once daily evening dosing that provide symptom control upon awakening throughout the afternoon and into the evening.
Many patients, including pediatrics adolescence, and adults report challenges starting their day, which is a key area of differentiation for G&A as it begins working when patients wake up in the morning. In addition to efficacy upon awakening symptom control throughout the day is important for most patients because they can eliminate the need for an additional boost.
Schoolwork and G&A delivers efficacy at last throughout the day.
Scott Dreyer: HCP perceptions of Jornay are highly positive. In market research, healthcare professionals rated Jornay as the number 1 ADHD brand in terms of product differentiation, with a score that was more than double that of any other competing brand. In addition, over 60% of HCPs indicated a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines. We also know that if a patient or caregiver specifically asks to try Jornay, physicians typically honor that request. While we're pleased with our progress to date, there's still significant opportunity to increase awareness of Jornay's unique and differentiated profile to further drive utilization. Year-to-date, JORNAY PM is the fastest-growing stimulant for ADHD. In Q3, Jornay delivered strong prescription growth, up 20% year over year. Our expanded sales force and new marketing campaigns were in place to maximize the opportunity during the back-to-school season.
HCP perceptions of G&A are highly positive and market research healthcare professionals rated joining as the number one ADHD brands in terms of product differentiation with a score that was more than double that at any other competing brand.
In addition over 60% of Hcp's indicated a strong intent to increase prescribing, which was the highest among all other branded ADHD medicines.
We also know that if a patient or caregiver, specifically asked to try joining physicians typically honor that request.
We are pleased with our progress to date, there is still significant opportunity to increase awareness of <unk> unique and differentiated profile to further drive utilization.
Year to date Joern APM is the fastest growing stimulant for ADHD in the third quarter G&A delivered strong prescription growth up 20% year over year our.
Our expanded Salesforce and new marketing campaigns were in place to maximize the opportunity during the back to school season, and as expected we're seeing growth in weekly prescriptions the.
Scott Dreyer: As expected, we're seeing growth in weekly prescriptions. The back-to-school season varies depending on regional school schedules and can extend well into Q4, as autumn parent-teacher conferences can also prompt discussions about ongoing unmet needs for children with ADHD. We're pleased to see that we're generating prescription growth during this back-to-school season, as average weekly prescriptions in October were 15,700 compared to 13,800 scripts in July, an increase of 14%. We broke 16,000 scripts last week. This is an encouraging growth trajectory, and we remain focused on continuing this momentum to maximize the potential of Jornay. Jornay's market share of the long-acting branded methylphenidate market also grew to 23.4% in Q3, up 6.3 percentage points year over year.
The back to school season varies depending on regional school schedules and can extend well into the fourth quarter as autumn parent teacher conferences can also prompt discussions about ongoing unmet needs for children with ADHD. We're pleased to see that we're generating prescription growth. During this back to school season as average weekly prescriptions in October were <unk>.
<unk> thousand 700, compared to 13800 scripts in July an increase of 14% and we broke 16000 scripts last week. This is an encouraging growth trajectory and we remain focused on continuing this momentum to maximize the potential of G&A.
<unk> market share of the long acting branded methylphenidate market also grew to 23, 4% in the third quarter up six three percentage points year over year.
Scott Dreyer: Jornay has a broad and growing prescriber base, reaching an all-time high of 27,700 prescribers in Q3, up 22% year over year. Importantly, we're seeing growth across both patient segments. In Q3, the pediatric and adolescent segment, which represents about 80% of our total prescriptions, grew 18% year over year. The adult segment, which represents about 20% of our prescriptions, grew 29% year over year. We see additional opportunity in the adult market and will continue to evaluate the levers we can pull to further grow within this segment. Throughout the year, we've invested in two key commercial priorities focused on driving near and long-term growth for JORNAY PM. The first is to increase awareness and adoption with an expanded set of prescribers.
And Germany has a broad and growing prescriber base, reaching an all time high of 27700 prescribers in the third quarter up 22% year over year.
Importantly, we're seeing growth across both patient segments in the third quarter, the pediatric and adult and adolescent segment, which represents about 80% of our total prescriptions grew 18% year over year.
The adult segment, which represents about 20% of our prescriptions grew 29% year over year, we see additional opportunity in the adult market and we'll continue to evaluate the levers we can pull to further grow within this segment.
Throughout the year, we've invested in two key commercial priorities focused on driving near and long term growth for join APM. The first is to increase awareness and adoption with an expanded set of prescribers and the second is to raise caregiver and patient awareness. So that they asked their health care provider about G&A.
Scott Dreyer: The second is to raise caregiver and patient awareness so that they ask their healthcare provider about Jornay. In April, we completed the expansion of our sales force, adding approximately 55 new representatives, bringing the total ADHD sales force to approximately 180 representatives. Our expanded sales force is focused on increasing awareness and adoption in prescribers and was fully trained and deployed ahead of the back-to-school season. Our sales team is now targeting approximately 21,000 prescribers, up from 17,000 prior to the expansion. Importantly, they are also increasing the frequency of interactions with key healthcare providers. We're starting to see early indicators of positive impact, including strong results during the back-to-school season, and almost 3,800 new targets wrote a prescription for Jornay in Q3.
In April we completed the expansion of our sales force, adding approximately 55, new representatives, bringing the total ADHD sales force to approximately 180 representatives.
Our expanded sales force is focused on increasing awareness and adoption and prescribers and was fully trained and deployed ahead of the back to school season. Our sales team is now targeting approximately 21000 prescribers up from 17000 prior to the expansion.
Importantly, they are also increasing the frequency of interactions with key health care providers.
We're starting to see early indicators of positive impact, including strong results during the back to school season, and almost 3800, new targets wrote a prescription for joining in the third quarter.
Scott Dreyer: Not only are we seeing growth in new prescribers, but we're also seeing an increase in the number of prescriptions from existing prescribers. In recent months, we also launched new marketing campaigns to raise awareness among healthcare providers, patients, and caregivers. Our new non-personal promotion campaigns targeted to healthcare providers support the efforts of our sales force to drive awareness of Jornay's differentiated profile. We're committed to further educating patients and caregivers on the differentiated benefits of Jornay. As we know, patient requests are a key driver of new prescriptions. Our new digital marketing campaigns directed to caregivers and patients are designed to raise their awareness of Jornay and motivate them to talk to their healthcare provider. In addition, we recently announced a new collaboration with entrepreneur and advocate Paris Hilton to increase awareness of ADHD and JORNAY PM.
Not only are we seeing growth in new prescribers, but we're also seeing an increase in the number of prescriptions from existing prescribers.
In recent months, we also launched new marketing campaigns to raise awareness among health care providers patients and caregivers are new non personal promotion campaigns targeted to health care providers support the efforts of our sales force to drive awareness of G&A is differentiated profile.
We're committed to further educating patients and caregivers on the differentiated benefits of Jordan.
As we know patient requests are a key driver of new prescriptions or.
Our new digital marketing campaigns directed to caregivers and patients are designed to raise their awareness of G&A and motivate them to talk to their health care provider.
In addition, we recently announced a new collaboration with entrepreneur and advocate Paris Hilton to increase awareness of ADHD and Jordan APM.
Scott Dreyer: We believe her firsthand experiences with ADHD, being diagnosed as a young adult and being treated with JORNAY PM, will resonate with our target audiences. Overall, we're seeing a high level of engagement across our digital marketing channels and are encouraged by the increasing interest in Jornay's differentiated profile. Lastly, as we look at the payer landscape for 2026, we expect to improve coverage for about 2 million lives. We don't expect any negative formulary changes to the strong coverage that Jornay has across the commercial and Medicaid books of business. As I reflect on our first year promoting Jornay, I'm encouraged by our team's performance. I'm also extremely proud of our support of the ADHD community. We recently had the opportunity to present posters at two medical conferences providing insight into real-world use of Jornay, and we honored patients during ADHD Awareness Month in October.
We believe her firsthand experiences with ADHD being diagnosed as a young adult and being treated with Jordan ATM will resonate with our target audiences overall.
Overall, we're seeing a high level of engagement across our digital marketing channels and are encouraged by the increasing interest in Jordan as differentiated profile.
Lastly, as we look at the payer landscape for 2026, we expect to improve coverage for about 2 million lives. We don't expect any negative formulary changes to the strong coverage that Georgia has across the commercial and Medicaid books of business.
As I reflect on our first year promoting G&A I'm encouraged by our teams performance I'm also extremely proud of our support of the ADHD community. We recently had the opportunity to present posters at two medical conferences, providing insight into real world real world use of joining and we honored patients during ADHD awareness month in October.
Scott Dreyer: We're committed to supporting this community and strive to improve care for patients living with ADHD. Looking ahead, we're motivated and well-positioned to finish the year strong and carry this momentum into 2026. Turning to our pain portfolio, Collegium has long been the leader in responsible pain management with a unique and differentiated portfolio of medicines. BELBUCA, XTAMPZA ER, and NUCYNTA ER collectively represent approximately half of the branded ER market. Our pain portfolio is highly differentiated with strong brand fundamentals. BELBUCA remains the only long-acting opioid medicine that uses buprenorphine buccal film technology. In market research, it was ranked as the number 1 branded ER opioid in terms of differentiation and favorability. Similarly, XTAMPZA, the only extended-release oxycodone medicine that uses our proprietary best-in-class abuse-deterrent technology, DETERx, was ranked as the number 1 ER oxycodone medicine in terms of differentiation and favorability.
We're committed to supporting this community and strive to improve care for patients living with ADHD. Looking ahead, we're motivated and well positioned to finish the year strong and carry this momentum into 2026.
Turning to our pain portfolio Collegium has long been the leader in responsible pain management with a unique and differentiated portfolio of medicines.
<unk> extends to ER and NUCYNTA ER collectively represent approximately half of the branded ER market.
Our pain portfolio is highly differentiated with strong brand fundamentals BELBUCA.
BELBUCA remains the only long acting opioid medicine that uses buprenorphine buccal film technology.
In market research. It was ranked as the number one branded ER opioid in terms of differentiation and favorability. Similarly, <unk>. The only extended release Oxycodone medicine that uses our proprietary best in class abuse deterrent technology to <unk> was ranked as the number one ER Oxycodone medicine in terms of.
Differentiation and favorability.
Scott Dreyer: In the Q3, combined quarterly revenues from our pain portfolio reached an all-time high, performing ahead of our expectations and continuing to fuel the financial strength of our business. Prescription performance was in line with our expectations across the portfolio, reinforcing our belief that the life cycle of these medicines may prove to be longer and more robust than is currently appreciated in the market. We're committed to maximizing revenues from our pain portfolio in 2026 and beyond through a combination of driving demand for our highly differentiated products and enhancing the profitability of each brand. We have broad coverage for our pain products and do not expect to have any major payer changes in 2026. For XTAMPZA ER, we did secure exclusive formulary access for approximately 1.7 million commercial lives effective 1 January.
In the third quarter combined quarterly revenues from our pain portfolio reached an all time high performing ahead of our expectations and continuing to fuel the financial strength of our business.
Prescription performance was in line with our expectations across the portfolio reinforcing our belief that the lifecycle of these medicines may prove to be longer and more robust and is currently appreciated in the market.
We're committed to maximizing revenues from our pain portfolio in 2026 and beyond through a combination of driving demand for our highly differentiated products and enhancing the profitability of each brand we have broad coverage for our pain products and do not expect to have any major patriot payer changes in 2026 for <unk> we did.
Secure exclusive formulary access for approximately $1 7 million commercial lives effective January one.
Scott Dreyer: Finally, we continued our history of leadership at PAINWeek 2025, where we presented nine posters highlighting real-world data underscoring the differentiation of our pain portfolio and celebrated Pain Awareness Month. We're proud to be the leader in responsible pain management, lead with the science, and support patients living with severe and persistent pain. This has been another quarter of strong commercial performance and execution. For the remainder of the year, we're focused on finishing strong and generating momentum to ensure a fast start in 2026. I'll now hand the call over to Colleen to discuss financial highlights.
Finally, we continued our history of leadership at pain week, 2025, where we presented nine posters highlighting real world data data underscoring the differentiation of our pain portfolio and celebrated pain awareness month.
We're proud to be the leader in responsible pain management lead with the science and support patients living with severe and persistent pain.
This has been another quarter of strong commercial performance and execution for the remainder of the year, we're focused on finishing strong and generating momentum to ensure a fast start in 2026, I'll now hand, the call over to Colleen to discuss financial highlights.
Colleen Tupper: Thanks, Scott. Good morning, everyone. Q3 was another strong quarter. We delivered record total revenues of $209.4 million, up 31% year over year. Adjusted EBITDA of $133 million, up 27% year over year, and are on track to achieve our updated full year 2025 guidance. We also generated robust operating cash flows of $78.4 million, repaid $16.1 million of debt, and ended the quarter with $285.9 million in cash equivalents, and marketable securities, demonstrating the strength of our balance sheet. Our strong performance enabled us to raise our 2025 financial guidance, which I will detail shortly. Financial highlights for Q3 2025 include net product revenues were $209.4 million, up 31% year over year.
Thanks, Scott Good morning, everyone Q3 was another strong quarter, we delivered record total revenues of $209 4 million up 31% year over year adjust.
Adjusted EBITDA of $133 million up 27% year over year and are on track to achieve our updated full year 2025 guidance. We also generated robust operating cash flows of $78 4 million, we paid $16 $1 million of debt and ended the quarter with $285 nine.
$10 million in cash cash equivalents and marketable securities demonstrating the strength of our balance sheet.
Our strong performance enabled us to raise our 2025 financial guidance, which I will detail shortly.
Financial highlights for the third quarter of 2025 include net product revenues were $209 4 million up 31% year over year.
Colleen Tupper: JORNAY PM net revenue was $41.8 million. BELBUCA net revenue was $58.3 million, up 10% year over year. XTAMPZA ER net revenue was $50.5 million, up 2% year over year. NUCYNTA franchise net revenue was $54.8 million, up 21% year over year. NUCYNTA revenues increased year over year, primarily due to profitability improvements from gross to net, consistent with our payer strategy, as well as certain rebate settlements benefiting the quarter. GAAP operating expenses were $67.1 million, up 8% year over year. non-GAAP adjusted operating expenses were $55.7 million, up 60% year over year. As a reminder, the increase in operating expenses reflects ongoing costs to commercialize Jornay, as well as the targeted investments we've made to drive future growth, including the expansion of our sales force and new marketing campaigns.
John APM net revenue was $41 8 million BELBUCA.
BELBUCA net revenue was $58 3 million up 10% year over year.
<unk> ER net revenue was $50 5 million up 2% year over year.
NUCYNTA franchise net revenue was $54 8 million up 21% year over year.
<unk> revenues increased year over year, primarily due to profitability improvements from gross to nets, consistent with our payer strategy as well as certain rebate settlements benefiting the quarter.
GAAP operating expenses were $67 $1 million up 8% year over year.
non-GAAP adjusted operating expenses were $55 7 million up 60% year over year as a reminder, the increase in operating expenses reflects ongoing cost to commercialize journey as well as the targeted investments we've made to drive future growth, including the expansion of our Salesforce and new marketing campaigns.
Colleen Tupper: GAAP net income was $31.5 million, up 238% year over year. Non-GAAP adjusted EBITDA was $133 million, up 27% year over year. GAAP earnings per share was $1.00 basic and $0.84 diluted, compared to GAAP earnings per share of $0.29 basic and $0.27 diluted in the prior year period. Non-GAAP adjusted earnings per share was $2.25 compared to $1.61 in the prior year period. Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results. In addition, we generated $78.4 million in cash from operations and ended Q3 with $285.9 million in cash equivalents, and marketable securities as of 30 September.
GAAP net income was $31 5 million up 238% year over year.
non-GAAP adjusted EBITDA was $133 million up 27% year over year.
GAAP earnings per share was $1 basic and 84 cents diluted compared to GAAP earnings per share of <unk> 29, basic and <unk> 27 cents diluted in the prior year period.
non-GAAP adjusted earnings per share was $2 25, compared to $1 61 in the prior year period.
Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results.
In addition, we generated $78 4 million in cash from operations and ended the quarter with $285 9 million in cash cash equivalents and marketable securities as of September 30th.
Colleen Tupper: As a result of our continued strong performance in the first nine months of the year, we are raising our 2025 full year guidance. We expect total product revenues in the range of $775 to 785 million. This represents a 24% increase year over year, driven by our lead growth driver, JORNAY PM, and supported by continued performance from our pain portfolio. We expect Jornay revenue to be in the range of $145 to 150 million, driven by both increased demand and gross to net improvements. As we've done in the past, we seek to balance achieving broad coverage with enhancing profitability by managing gross to nets. We have taken the same approach with Jornay.
As a result of our continued strong performance in the first nine months of the year. We are raising our 2025 full year guidance. We expect total product revenues in the range of $775 million to $785 million. This represents a 24% increase year over year, driven by our lead growth driver.
John APN and supported by continued performance from our pain portfolio.
We expect <unk> revenue to be in the range of $145 to 150 million driven by both increased demand and gross to net improvements.
As we've done in the past, we seek to balance achieving broad coverage with enhancing profitability by managing gross to nets and we have taken the same approach with journey gross to net for <unk> was 62% in the third quarter and we expect further improvement in Q4, resulting in full year gross to net to be in the mid 60 <unk>.
Colleen Tupper: Gross to net for JORNAY was 62% in Q3, we expect further improvement in Q4, resulting in full year gross to net to be in the mid-60% range. We expect adjusted EBITDA in the range of $460 to 470 million, a 16% increase year over year. Adjusted operating expenses are expected in the range of $235 to 240 million. The increase from 2024 reflects ongoing targeted investments to support JORNAY's near-term growth and drive significant momentum in 2026 and beyond. We remain committed to creating value for our shareholders through disciplined capital deployment. Our strategy balances expansion through business development, opportunistic share repurchases, and rapid debt repayment. As Vikram mentioned, we remain actively engaged in evaluating potential opportunities to further expand and diversify our portfolio.
Cent range.
We expect adjusted EBITDA in the range of 462, 470, million% to 16% increase year over year.
Adjusted operating expenses are expected in the range of $235 million to $240 million. The increase from 2024 reflects ongoing targeted investments to support journeys near term growth and drive significant momentum in 2026 and beyond.
We remain committed to creating value for our shareholders through disciplined capital deployment our.
Our strategy balances expansion through business development opportunistic share repurchases and rapid debt repayment.
As Vic mentioned, we remain actively engaged in evaluating potential opportunities to further expand and diversify our portfolio.
Colleen Tupper: Year to date, we have re-returned $25 million of value to shareholders through an accelerated share repurchase program, and we have $150 million remaining in our current board-authorized share repurchase program that we can opportunistically leverage through 31 December 2026. Our ongoing authorization reinforces the importance of share repurchases as a key component of our capital deployment strategy. In Q3, we repaid $16.1 million of our term loan and ended the quarter with net debt to adjusted EBITDA leverage of approximately 1.2x. We expect to repay an additional $16.1 million in Q4 and to end the year with net leverage of less than 1x. I will now turn the call back to Vikram.
Year to date, we have returned $25 million of value to shareholders through an accelerated share repurchase program and we have $150 million remaining in our current board authorized share repurchase program that we can opportunistically leverage through December 31, 2026.
Our ongoing authorization reinforces the importance of share repurchases as a key component of our capital deployment strategy.
In the third quarter, we repaid $16 $1 million of our term loan and ended the quarter with net debt to adjusted EBITDA leverage of approximately one two times.
We expect to repay an additional $16 $1 million in the fourth quarter and to end the year with net leverage of less than one time.
I will now turn the call back to Victor.
Vikram Karnani: Thanks, Colleen. In summary, we delivered another strong quarter, which has prompted us to raise our full year financial guidance. We are determined to carry this momentum through the remainder of the year and into 2026. As we look ahead, we remain focused on our capital deployment strategy to further expand and diversify our business while creating value for our shareholders. Importantly, we are committed to improving the lives of patients living with serious medical conditions who are at the forefront of everything we do. I will now open the call up for questions. Operator?
Thanks for calling in summary, we delivered another strong quarter, which has prompted us to raise our full year financial guidance.
We are determined to carry this momentum through the remainder of the year and into 2026 as we look ahead, we remain focused on our capital deployment strategy to further expand and diversify our business, while creating value for our shareholders and importantly, we are committed to improving the lives of patients living with serious medical conditions, who are.
At the forefront of everything we do.
I will now open the call up for questions operator.
Operator 2: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. First question comes from Dennis Singh with Jefferies. Please go ahead.
Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please.
One on your telephone keypad.
Paul will indicate your line is in the question queue, you May press star.
Our Q3 remove yourself from the queue.
All participants using speaker equipment will may be necessary.
That's helpful.
Mccarthy.
First question.
Tom.
Thanks, that's helpful. My follow up.
[Analyst] (Jefferies): Good morning. This is Anthea on for Dennis. Thank you for taking our question and congrats on the great quarter. First question, for Q3, script growth was clearly very strong, but curious how return reserves and inventory also played into that in addition to gross to net improvements. Secondly, on the expanded sales force, do you see that having a major impact on Q3 already or should we actually expect more of an acceleration in Q4 in 2026? Thank you.
Good morning, this is <unk>.
Thank you for taking my question and congrats on the great quarter.
First question for Q3 script growth was clearly very strong, but curious how return reserves and inventory also played into that in addition to.
Gross to net improvement and then secondly on the expanded sales force.
Do you see that having a major impact on Q3 already or should we actually expect the foundation alright. Thanks. Thank you.
Colleen Tupper: Thank you. I'll take that first question, and then I'll hand it off to Scott for the H2. For Jornay gross to net, as expected, J-gross to net has improved in Q3 as compared to the H1 of the year. As a point of comparison, Q1 gross to net was 70%, Q2, 67%, and 62% in Q3, as just mentioned. We now expect gross to net to be in the mid-60% range relative to our previous expectation of upper 60s. What's really driving that improvement on the gross to net front is through the year improvement is seasonality, and then broadly, it's also improving returns rates and favorable contracting.
Thank you I'll take that first question and I'll hand, it off to Scott for the second half so for Jordan <unk> gross to nets as expected yet the gross to net has improved in the third quarter as compared to the first half of the year as a point of comparison Q.
Q1, gross to nets, with 70% Q2, 67% and 62% in the third quarter as just mentioned and we now expect gross to nets to be in the mid 60% range relative to our previous expectation of upper sixties, what's really driving that improvement on the gross to net front.
<unk>.
The through the year improvement is seasonality and then broadly it's also improving returns rates and favorable contracting.
Scott Dreyer: All right. To your question on the sales force. No, there was not significant impact in Q3 as it relates to the expansion of the sales force. What I'd say is we're beginning to see, as I said in my prepared remarks, some early signals of impact, right? We're reaching more customers. I'd say the biggest numerical thing is we expanded our sales force from I mean, our target universe from 17,000 to 21,000 targets, and 3,800 of those wrote a prescription. That's a good signal. But not significant impact in Q3. We really expect most impact as we get into 2026 and beyond.
Alright and to your question on the sales force. So so no there was not significant impact in the third quarter as it relates to the expansion of the sales force what I'd say is we're beginning to see as I said in my prepared remarks. Some early signals of impact right, we're reaching more customers I'd say the biggest numerical thing is we expanded our sales force from 17.
Our target universe from 17000 to 21000 targets and 3800 of those wrote a prescription so that's a good signal, but not significant impact in the third quarter and we really expect most impact as we get into 2026 and beyond.
[Analyst] (Jefferies): Great. Thank you.
Great. Thank you.
Operator 2: Next question, Brandon Folkes with HC Wainwright. Please go ahead.
Next question Brandon.
H C Wainwright will follow.
Brandon Folkes: Hi. Thanks for taking my question. I did wanna just follow on from the prior question. You know, can you help us just think through? On Jornay, the net revenue, you know, I think if we look at prescriptions, Q3 over Q2 looks like it grew 3.2%. You know, gross net obviously improved from 67% to 62%. Revenue quarter over quarter is up 28%. Can you just sort of answer the question about inventory movements? You know, it does seem to be flowing through to Q4 if I look at the new guidance. Can you just help us understand the net price tailwinds in the back half of this year? Is that dynamic expected to be similar in 2026? Thank you.
Hi, Thanks for taking my question I did want to just follow on from the prior question.
Can you help us just think through so.
G&A the net revenue.
I think if we look at prescriptions <unk> looks like a crude.
Three 2% gross since obviously improved from 67% to 62% revenue quarter over quarter is up 28% can you just sort of answer the question about inventory movements.
Does seem to be flowing through to <unk>.
<unk>, if I look at the new guidance. So can you just help us understand the net price tailwind in the back half of this year and does that dynamic expected to be similar in 2026. Thank you.
Colleen Tupper: Thanks a lot for the question, Brandon. Our, in our space, all of our products, given that they're controlled substance, inventory is on average around 15 days on hand. We don't see much fluctuation from that, up or down a few days. Jornay for Q3, I believe, was 17 days on hand. As far as the gross-to-net, what has improved this year. I'll separate. In each year, you would expect higher gross-to-nets in H1, particularly in Q1, due to deductible resets and those typical seasonal patterns. In addition to that, what we have seen that has been better than our expectations is improved returns rates and improved contracting.
Thanks, a lot for the question Brandon.
In our space all of our products given that their controlled substance inventory if on average around 15 days on hand, we don't see much fluctuation from that upper up or down a few days G&A for the third quarter I believe was 17 days on hand.
And as far as the gross to net.
So what has improved this year so I'll separate in each year, you would expect higher gross to nets in the first half, particularly in the first quarter due to deductible resets and those typical seasonal patterns.
In addition to that what we have seen that has been better than our expectations is an improved returns rates and improved contracting and so looking forward to 2026, what I would say is the seasonality associated with the first half versus second half dynamic will exist due to those Q1.
Colleen Tupper: Looking forward to 2026, what I would say is the seasonality as-associated with the H1 versus H2 dynamic will exist due to those Q1 resets, and we would expect full year gross to nets to be stable now in about this mid-60s range.
<unk> and we would expect full year gross to nets to be stable now in about the mid sixties range.
Brandon Folkes: Thank you.
Thank you.
Colleen Tupper: Thank you for the question.
Thank you for the question.
Operator 2: Next question, Les Clewiske with Clewiske Securities. Please go-
Next question.
The securities portfolio.
[Analyst] (Clewiske Securities): Hey, this is Jeevan on for Les. Thanks for taking our questions and congrats on the progress. Now that we're in November, how has the adherence rate for Jornay been trending since beginning of back-to-school season? Then also in terms of M&A, you know, when you look across your BD funnel, have you gotten to the due diligence stages on anything? If so, what are some factors that might dissuade you from closing on a prospective deal? Thank you.
Hey, This is gene <unk> on for last thanks for taking our questions and congrats on the progress.
So now that we're in November how is the adherence rate for geron I had been trending since beginning of back to school season.
And then also in terms of M&A you know when you look across your BD funnel.
Have you gotten to the due diligence stages on anything and if so what are some factors that might dissuade you from closing on a deal.
<unk>.
Vikram Karnani: Yeah, thanks for the questions. I'll have Scott answer the question on Jornay, and then I'll take the BD question. Go ahead.
Yes.
Thanks for the questions.
Scott answer the question on Jordan, and then I'll take the BD question go ahead, yeah. Thanks related to adherence Theres no surprises when it comes to the adherence rate for join APM. It's in line with all ADHD medications, where we see a typical adherence curve of nine to 10 months per Trs.
Scott Dreyer: Yeah, thanks. Related to adherence, there is no surprises when it comes to the adherence rate for JORNAY PM. It is in line with all ADHD medications where we see a typical adherence curve of nine to 10 months per TRX.
Vikram Karnani: Yeah. On the BD question, I mean, I think we, you know, we wouldn't comment on any specific opportunities that we're in process on. What I would say is I would reiterate what I said in my prepared remarks. We remain active in our business development efforts as we have been in the past. You know, when at a point when there is something to be discussed, you know, obviously we will make folks aware. As a reminder, I wanna reiterate what I said about our overall capital deployment strategy. It's a balance of business development and expanding our portfolio, opportunistically repurchasing our shares, and continuing to strengthen our balance sheet by repaying debt. What you should expect is that balance to continue. Okay, next question, please.
Yeah on the BD question, I mean I think.
We wouldn't comment on any specific opportunities that were in process on.
But what I would say is I would reiterate what I said in my prepared remarks, we remain.
Active in our business development efforts as we have been in the past.
You know we're not at a point when there is something to be discussed obviously, we will we will make folks aware, but as a reminder, I want to reiterate what I've said about our overall capital deployment strategy, it's a balance of business development and expanding our portfolio opt.
Opportunistic opportunistically repurchasing our shares.
And continuing to strengthen our balance sheet.
Paying debt and what you should expect is that balance to continue.
Next question please.
Operator 2: Next question, Serge Belanger with Needham & Company. Please go-
Next question, Serge Belanger with Needham <unk> company.
[Analyst] (Needham & Company): Hi. Good morning. This is John on for Serge today. Congrats on the quarter, thanks for taking our question. Sticking with GTNs, Nucynta's had a really solid quarter, and I believe in the past you've highlighted GTNs for 2025 for this product to be in the range of roughly 40%. Just curious to see where they were in Q3 and if you can provide any additional color on the rebate settlements and how much of an impact that had, that'd be great.
Hi, Good morning. This is John on for Serge today, Congrats on the quarter and thanks for taking our question. So.
So sticking with GTS NUCYNTA had a really solid quarter and I believe in the past you've highlighted <unk> for 2025 for this product to be in the range of roughly 40%.
Just curious to see where they were in the third quarter and if you can provide any additional color on the rebate settlements and how much of an impact that had that'd be great.
Okay.
Colleen Tupper: John, just to clarify, which product was that question on? You cut out a bit.
John just to clarify which product was that question on you cut out of that.
[Analyst] (Needham & Company): Nucynta.
NUCYNTA.
Colleen Tupper: Okay, great. I wanted to make sure. Thanks for the question. For the overall Nucynta franchise, obviously Nucynta IR and Nucynta ER travel a little bit different. The rebate settlement benefit in Q3 was just under $3 million at $2.8 million. That was really a timing difference. It was a benefit in Q3 that was really attributable to H1 activities. For GTN rate in Q3, Nucynta IR was at, because of that benefit, 28.5%, and Nucynta ER was 31.8%.
Okay, Great I wanted to make sure that.
Thanks for the question for the overall NUCYNTA franchise, obviously, NUCYNTA IR NUCYNTA ER travel a little bit different the rebate settlement benefit in the third quarter was just under $3 million at $2 8 million that was really a timing difference there was a benefit in the third quarter. There was really attributable to first half activities.
For gross to net rate in the third quarter NUCYNTA IR was at.
Because of that benefit 28, 5%.
And NUCYNTA ER was 31, 8%.
[Analyst] (Needham & Company): Great. Thank you.
Great. Thank you.
Colleen Tupper: Thank you for the question.
Thank you for the question, David Hensel with David <unk> with Piper Sandler. Please go ahead.
Operator 2: David Amsellem with Piper Sandler. Steve, go ahead.
[Analyst] (Piper Sandler): Hi. Yes. Good morning. This is Alex on for David. Maybe just to circle back to business development. How large a transaction would you contemplate given the current capital structure? When would you be willing to take on R&D risk? Also related to BD and M&A, are you wed to, pain or CNS, or are you thinking more broadly? Thank you.
Hi, Yes. Good morning. This is Alex on for David.
Maybe just to circle back to business development.
So large a transaction would you contemplate given the current capital structure.
And why would you be willing to take on R&D risk also related to BD and M&A are you wed to pain, our CNS or are you thinking more broadly thank you.
Vikram Karnani: Yeah. Thank you for the question. As far as the size of business development transaction, I think what we've previously said is we are willing to take on lever up to about 3 times net debt over EBITDA. As Colleen mentioned, we ended this quarter in Q3 at about 1.2, and then, you know, we expect to end the year less than 1 time. In terms of the area of the therapeutic area, look, our priority is going to be those areas where we can create some operational leverage from the investments that we have made, right?
Yes. Thank you for the question.
As far as the size of business development transaction I think would be previously said is we are willing to take on.
Levered up to about three times net debt over EBITDA.
And.
As Colin mentioned we.
Ended this quarter in Q3 at about one point to and then we expect to end the year.
Less than one time.
In terms of the area of the therapeutic area look our priority is always going to be.
Those areas, where we can.
Create some operational leverage from the investments that we have made right. So if you think about pain, where we have 100 person sales force now with G&A we have.
Vikram Karnani: If you think about pain, where we have a 100-person sales force, now with Jornay, we have a 180-person sales force that calls on roughly half and half, about equally split between pediatricians and psychiatrists. When we think about call point synergies, those would be the target areas that we would look at. You know, as I've said before, we are willing to look beyond that. However, the bar is higher. In order for us to look beyond that and create a third leg of the stool, sorry, it would need to be a capital efficient area. I mean, we've discussed those in the past as well.
880 person sales force that calls on roughly half and half about.
Equally split between pediatricians and psychiatrist.
So when we think about colborne synergies those will be the target areas that we would look at.
But.
As I've said before we are willing to look beyond that.
However, the bar is higher.
And in order for us to look beyond that and create a third two of the lifeboat abroad.
Third leg of the stool sorry.
It would need to be a capital efficient area.
We've discussed those in the past as well so at the end of the day, what what what we'd like to do is continue to think about additional BD opportunities that are in that are commercial assets or very near commercial assets.
Vikram Karnani: At the end of the day, what we'd like to do is continue to think about additional BD opportunities that are commercial assets or very near commercial assets, thinking just from a risk standpoint. Your question more around BD, pipeline and development stage, I don't think that's something that we can take on today. You know, down the road, once we have scaled the company and, you know, built another commercial leg, so to speak, to the company, you know, we can contemplate that. At this point in time, we are focused on commercial or very near commercial assets. Thanks for the question.
Thinking just from a risk standpoint.
And your question more around BD pipeline and development stage.
I don't think that's something that we can take on today.
Down the road once we have scaled the company and.
You know build a built another commercial leg so to speak to the to the company. We can contemplate that but at this point in time, we are focused on commercial or very near commercial assets.
Thanks for the question.
[Analyst] (Piper Sandler): Thank you.
Thank you.
Operator 2: I would like to turn the floor over to Vikram for closing remarks.
I would like to turn the floor with the background for closing remarks.
Vikram Karnani: Okay. Well, thank you everyone for joining the call this morning. Enjoy the rest of your day.
Okay, well. Thank you everyone for joining the call. This morning enjoy the rest of your day.
Yes.
Operator 2: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.
Okay.
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Yeah.
Yes.
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