Collegium Reports Fourth-Quarter and Full-Year 2018 Financial Results
- Xtampza® ER Prescriptions Grew 233% in 2018
- Net Revenue Increased to
$73.4 Millionfor Fourth Quarter 2018 and $280.4 Millionfor the Full Year
- Cash and Cash Equivalents were
$146.6 millionas of December 31, 2018, exceeding year-end cash guidance of $145.0 million
- Conference call scheduled for today at
4:30 p.m. ET
“2018 was a transformative year for
Key Business Highlights
- Total prescriptions for Xtampza ER grew to 94,153 in the fourth quarter of 2018, representing a 147% increase over the fourth quarter of 2017. For the full year, total prescriptions for Xtampza ER grew 233%, reaching 326,828, compared to 98,283 total prescriptions in 2017.
- There were 11,552 new prescribers of Xtampza ER in 2018, including 2,426 prescribers added in the fourth quarter, resulting in more than 18,000 physicians prescribing Xtampza ER since launch.
- The Company secured 13 new exclusive ER oxycodone formulary wins for Xtampza ER which took effect
January 1, 2019. In addition to the exclusive payer wins, Xtampza ER continues to have broad-based coverage, including 91% coverage in Commercial plans and 49% coverage in Part D plans.
- Total prescriptions for the Nucynta franchise were 157,055 in the fourth quarter of 2018. For the full year, total prescriptions for the Nucynta franchise were 651,337.
Financial Results for Quarter Ended
- For the quarter ended
December 31, 2018(the “2018 Quarter”), total net product revenues were $73.4 million, which included Xtampza ER net revenues of $18.4 millionand Nucynta franchise net revenues of $55.0 million. This compared to total net product revenues of $10.8 millionfor the quarter ended December 31, 2017(the “2017 Quarter”), comprising Xtampza ER net product revenues only.
- Net income for the 2018 Quarter was
$9.1 million, or $0.27per share (basic and diluted), compared to net loss of $17.4 million, or $0.54per share (basic and diluted), for the 2017 Quarter. Net income (loss) included stock-based compensation expense of $3.6 millionand $2.1 millionfor the 2018 Quarter and 2017 Quarter, respectively. For additional details related to the amendment of the Commercialization Agreement with Assertio, please refer to our Annual Report on Form 10-K filed with the Securities and Exchange Commission.
- Selling, general and administrative expenses were
$30.5 millionfor the 2018 Quarter, compared to $25.1 millionfor the 2017 Quarter. The increase was primarily related to higher personnel costs of $3.6 millionand higher commercialization costs of $2.3 million.
- Non-GAAP adjusted loss for the 2018 Quarter was
$3.4 million. This compared to a non-GAAP adjusted loss of $15.3 millionfor the 2017 Quarter.
Full-Year 2018 Financial Highlights
- For the year ended
December 31, 2018, total net product revenues were $280.4 million, which included Xtampza ER net revenues of $69.4 millionand Nucynta franchise net revenues of $211.0 million. This compared to total net product revenues of $28.5 millionfor the year ended December 31, 2017, comprising Xtampza ER net product revenues only.
- Net loss for the year ended
December 31, 2018was $39.1 million, or $1.19per share (basic and diluted), compared to a net loss of $74.9 million, or $2.47per share (basic and diluted) for the year ended December 31, 2017.
- Non-GAAP adjusted loss for the year ended
December 31, 2018was $28.2 million. This compared to a non-GAAP adjusted loss of $66.9 millionfor the year ended December 31, 2017.
- Collegium had cash and cash equivalents of
$146.6 millionat December 31, 2018, compared to $118.7 millionat December 31, 2017, exceeding our year-end cash guidance of $145.0 million.
- As of
December 31, 2018, there were 33,265,629 common shares outstanding.
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
|December 31,||December 31,|
|Cash and cash equivalents||$146,633||$118,697|
|Prepaid expenses and other current assets||5,116||3,005|
|Property and equipment, net||9,274||1,826|
|Intangible assets, net||44,255||—|
|Other long-term assets||204||161|
|Accounts payable and accrued expenses||$42,701||$14,225|
|Accrued rebates, returns and discounts||144,783||15,784|
|Total liabilities and stockholders’ equity||$291,245||$135,568|
Unaudited Condensed Statements of Operations
(in thousands, except share and per share amounts)
|Three months ended December 31,||Years ended December 31,|
|Product revenues, net||$73,427||$10,794||$280,413||$28,476|
|Costs and expenses:|
|Cost of product revenues||29,726||1,094||165,677||2,595|
|Research and development||2,249||2,194||8,661||8,572|
|Selling, general and administrative||30,451||25,089||126,760||92,756|
|Total costs and expenses||62,426||28,377||301,098||103,923|
|Loss from operations||11,001||(17,583)||(20,685)||(75,447)|
|Net income (loss)||$9,086||$(17,403)||$(39,128)||$(74,865)|
|Earnings (loss) per share - basic||$0.27||$(0.54)||$(1.19)||$(2.47)|
|Weighted-average shares - basic||33,250,180||32,485,572||32,953,808||30,265,262|
|Earnings (loss) per share - diluted||$0.27||$(0.54)||$(1.19)||$(2.47)|
|Weighted-average shares - diluted||33,769,765||32,485,572||32,953,808||30,265,262|
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except per share amounts)
|Three months ended December 31,
||Years ended December 31,
|GAAP net income (loss)||$||9,086||$||(17,403)||$||(39,128)||$||(74,865)|
|Stock-based compensation expense||3,598||2,078||13,778||7,945|
|Nucynta related amortization expense (1)||15,494||—||109,834||—|
|Nucynta non-cash interest expense (2)||2,169||—||19,281||—|
|Nucynta minimum royalty payment due (3)||(33,750)||—||(132,000)||—|
|Total non-GAAP adjustments||$||(12,489)||$||2,078||$||10,893||$||7,945|
|Non-GAAP adjusted loss||$||(3,403)||$||(15,325)||$||(28,235)||$||(66,920)|
|GAAP net income (loss)||$||(18,652)||$||(13,060)||$||(16,502)||$||9,086|
|Stock-based compensation expense||2,728||3,526||3,926||3,598|
|Nucynta related amortization expense (1)||29,526||32,407||32,407||15,494|
|Nucynta non-cash interest expense (2)||5,528||5,943||5,641||2,169|
|Nucynta minimum royalty payment due (3)||(30,750)||(33,750)||(33,750)||(33,750)|
|Total non-GAAP adjustments||$||7,032||$||8,126||$||8,224||$||(12,489)|
|Non-GAAP adjusted loss||$||(11,620)||(4,934)||$||(8,278)||$||(3,403)|
|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 to Assertio in connection with the Commercialization Agreement.|
Source: Collegium Pharmaceutical, Inc.