Collegium Reports First Quarter 2019 Financial Results
- Xtampza® ER Net Product Revenues of
$25.1 millionin the First Quarter of 2019, a 59% increase over the First Quarter of 2018 and a 36% increase on a Consecutive-Quarter Basis
- Net loss of
$9.7 millionin the First Quarter of 2019 compared to a net loss of $18.7 millionin the First Quarter of 2018
- Conference call scheduled for today at
4:30 p.m. ET
“In the first quarter of 2019, we were encouraged by the acceleration of Xtampza ER, driven by 13 new exclusive ER oxycodone payer wins that took effect
Recent Business Highlights
- In the first quarter of 2019, Xtampza ER reached over 100,000 total prescriptions in a quarter for the first time since launch. Total prescriptions for Xtampza ER grew to 105,309 in the first quarter of 2019, representing a 71% increase over the first quarter of 2018 and 16% growth on a consecutive-quarter basis.
- The number of unique Xtampza ER prescribers grew to 12,333 in the first quarter of 2019, a 21% increase on a consecutive-quarter basis.
- In the first quarter of 2019, a new patent covering Xtampza ER was added to the FDA Orange Book, with an expiry date in 2036. With this recent addition to the patent estate, Xtampza ER is now covered by 15 Orange Book listed patents.
April 2019, Collegium expanded its leadership team with the appointment of Richard Malamut, M.D. as the company’s Chief Medical Officer overseeing Collegium’s Clinical Development, Medical Affairs, Regulatory and Scientific Affairs functions.
Financial Results for Quarter Ended
- For the quarter ended
March 31, 2019(the “2019 Quarter”), total net product revenues were $74.5 million, which included Xtampza ER net product revenues of $25.1 millionand Nucynta franchise net product revenues of $49.4 million. This compared to total net product revenues of $63.7 millionfor the quarter ended March 31, 2018(the “2018 Quarter”), which included $15.8 millionfor Xtampza ER and $48.0 millionfor the Nucynta franchise.
- Research and development expenses were
$3.0 millionfor the 2019 Quarter compared to $2.3 millionfor the 2018 Quarter. The increase was primarily related to an increase in employee-related expenses, including stock-based compensation expense.
- Selling, general and administrative expenses were
$32.4 millionfor the 2019 Quarter, compared to $31.6 millionfor the 2018 Quarter. The increase was primarily related to an increase in our sales and marketing costs associated with Xtampza ER and the Nucynta franchise, increased professional fees and an increase in stock-based compensation, offset by lower regulatory-related costs.
- Net loss for the 2019 Quarter was
$9.7 million, or $0.29per share (basic and diluted), compared to net loss of $18.7 million, or $0.57per share (basic and diluted), for the 2018 Quarter. Net loss included stock-based compensation expense of $4.3 millionand $2.7 millionfor the 2019 Quarter and 2018 Quarter, respectively.
- Non-GAAP adjusted loss for the 2019 Quarter was
$1.7 million. This compared to a non-GAAP adjusted loss of $11.6 millionfor the 2018 Quarter.
- Collegium had cash and cash equivalents of
$134.9 millionas of March 31, 2019, compared to $146.6 millionas of December 31, 2018. The decrease from the prior quarter was the result of lower cash receipts due to the extension of payment terms for a major wholesaler, as well as capital expenditures related to the buildout of additional manufacturing capacity.
Conference Call Information
Collegium will host a conference call and live audio webcast on
Collegium is a specialty pharmaceutical company committed to being the leader in responsible pain management. Collegium’s headquarters are located in
Non-GAAP Financial Measures
To supplement our financial results presented on a U.S. generally accepted accounting principles, or GAAP, basis, we have included information about non-GAAP adjusted loss. We believe that the presentation of this non-GAAP financial measure, when viewed with our results under GAAP and the accompanying reconciliation, provides supplementary information that may be useful to analysts, investors, lenders, and other third parties in assessing the Company’s performance and results from period to period. We internally use non-GAAP adjusted loss to understand, manage and evaluate the Company as we believe it represents the performance of our core business. This non-GAAP financial measure should be considered in addition to, and not a substitute for, or superior to, net income or other financial measures calculated in accordance with GAAP. Non-GAAP adjusted loss is not based on any standardized methodology prescribed by GAAP and represents GAAP net loss adjusted to exclude stock-based compensation expense, amortization expense for the Nucynta intangible asset, non-cash interest expense recognized on the Nucynta minimum royalty payments, and minimum royalty payments due and payable to Assertio in connection with the Commercialization Agreement. Any non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, a non-GAAP measure used by other companies. Please see the section of this press release titled “Reconciliation of GAAP to Non-GAAP Financial Information” for a reconciliation of non-GAAP adjusted loss to its most directly comparable GAAP measure.
This press release 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," "expects," "plans," "intends," "may," "could," "might," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the company's current expectations. Management's expectations and, therefore, any forward-looking statements in this press release could also be affected by risks and uncertainties relating to a number of other factors, including our ability to obtain and maintain regulatory approval of our products and product candidates; our ability to effectively commercialize in-licensed products and manage our relationships with licensors; the success of competing products that are or become available; our ability to obtain reimbursement and third-party payor contracts for our products; the rate and degree of market acceptance of our products and product candidates; the outcome of any patent infringement or other litigation that may be brought by or against us, including litigation with
Unaudited Selected Consolidated Balance Sheet Information
|March 31,||December 31,|
|Cash and cash equivalents||$||134,910||$||146,633|
|Prepaid expenses and other current assets||5,053||5,116|
|Property and equipment, net||9,962||9,274|
|Operating lease assets||9,766||—|
|Intangible assets, net||40,567||44,255|
|Other long-term assets||224||204|
|Accounts payable and accrued expenses||$||33,570||$||42,701|
|Accrued rebates, returns and discounts||152,328||144,783|
|Term loan payable||11,500||11,500|
|Operating lease liabilities||10,614||—|
|Total liabilities and stockholders’ equity||$||294,362||$||291,245|
Unaudited Condensed Statements of Operations
(in thousands, except share and per share amounts)
|Three months ended March 31,|
|Product revenues, net||$||74,516||$||63,749|
|Costs and expenses:|
|Cost of product revenues||49,164||43,106|
|Research and development||2,992||2,268|
|Selling, general and administrative||32,352||31,582|
|Total costs and expenses||84,508||76,956|
|Loss from operations||(9,992||)||(13,207||)|
|Loss per share – basic and diluted||$||(0.29||)||$||(0.57||)|
|Weighted-average shares – basic and diluted||33,331,917||32,903,674|
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except per share amounts)
|Three months ended March 31,|
|GAAP net loss||$||(9,700||)||$||(18,652||)|
|Stock-based compensation expense||4,263||2,728|
|Nucynta related amortization expense (1)||3,688||29,526|
|Nucynta non-cash interest expense (2)||—||5,528|
|Nucynta minimum royalty payment due (3)||—||(30,750||)|
|Total non-GAAP adjustments||$||7,951||$||7,032|
|Non-GAAP adjusted loss||$||(1,749||)||$||(11,620||)|
|Explanation of Adjustments:|
|(1) Represents amortization expense of the Nucynta intangible asset.|
|(2) Represents non-cash interest expense recognized related to the Nucynta minimum royalty payments.|
|(3) Represents minimum royalty payment due and payable in connection with the Nucynta Commercialization Agreement.|
Source: Collegium Pharmaceutical, Inc.