Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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Collegium Pharmaceutical, Inc. (NASDAQ:COLL) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 2019 Collegium Pharmaceutical Earnings Conference Call. [Operator Instructions]

I would now like to hand the call over to Alex Dasalla. Please go ahead.

Executive
Alex Dasalla

Welcome to the Collegium Pharmaceutical's third quarter 2019 earnings conference call. This is Alex Dasalla, Head of Investor Relations for Collegium. I am joined today by Joe Ciaffoni, our Chief Executive Officer; Paul Brannelly, 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. We are cautioned that such forward-looking statements involve risks and uncertainties including and without limitation the risks that we may not be able to successfully commercialize Xtampza ER and the Nucynta franchise. And that we may incur significant expense and may not prevail in current or future opioid industry litigation and investigation, patent infringement litigation or other litigation pertaining to our products.

These risks and other risks of the Company are 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. You can find our earnings press release including relevant non-GAAP reconciliations on our corporate website at collegiumpharma.com.

I will now turn the call over to Collegium CEO, Joe Ciaffoni.

Executive
Joseph Ciaffoni

Thanks, Alex. Good afternoon and thank you everyone for joining the call. We're pleased to report that we're on track to make 2019 a breakthrough year for Collegium Pharmaceutical. We continue to make meaningful progress against our key strategic and operational priorities and our organization is focused on finishing strong in 2019.

Accomplishments for the third quarter include net revenue of $72.9 million, which represents a 4% increase over the third quarter of 2018. Xtampza ER third quarter net revenue increased to $26.5 million, which represents a 56% increase versus the third quarter of 2018. Xtampza ER total prescriptions grew 44% in comparison to the third quarter of 2018. As anticipated Xtampza ER grew at a moderated rate on a sequential basis and we expect prescriptions to grow at a similar rate in the fourth quarter. As a reminder Xtampza ER prescription growth in 2019 was driven by the 13 new exclusive ER oxycodone payer wins representing approximately 11 million lives that took effect on January 1st, 2019.

Opex for the quarter was down in comparison to the third quarter of 2018. We remain committed to leveraging not growing Collegium's cost structure in 2019 and beyond. On a non-GAAP basis, we generated income from operations for the second consecutive quarter and increased cash on hand. Finally, we strengthened the leadership team with the appointment of Bart Dunn to the role of Executive Vice President, Strategy