Collegium Pharmaceutical’s second quarter results drew a positive market response, as management credited the performance to record revenues from its ADHD therapy Jornay and steady growth across its pain portfolio. CEO Vikram Karnani highlighted that Jornay prescriptions grew 23% year over year, fueled by expanded sales force efforts and targeted marketing initiatives. The company also noted that all three of its core pain medications delivered year-over-year revenue growth, underpinning the robust financial outcome. Management attributed the quarter’s success to continued execution on commercial expansion and the integration of new assets, as well as initial benefits from investments in awareness and prescriber outreach.
Is now the time to buy COLL? Find out in our full research report (it’s free).
Collegium Pharmaceutical (COLL) Q2 CY2025 Highlights:
- Revenue: $188 million vs analyst estimates of $180.4 million (29.4% year-on-year growth, 4.2% beat)
- Adjusted EPS: $1.68 vs analyst expectations of $1.85 (9.2% miss)
- Adjusted EBITDA: $105.1 million vs analyst estimates of $103.7 million (55.9% margin, 1.4% beat)
- The company lifted its revenue guidance for the full year to $752.5 million at the midpoint from $742.5 million, a 1.3% increase
- EBITDA guidance for the full year is $447.5 million at the midpoint, above analyst estimates of $437.6 million
- Operating Margin: 18.7%, down from 32.7% in the same quarter last year
- Market Capitalization: $1.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Collegium Pharmaceutical’s Q2 Earnings Call
- Leszek Sulewski (Truist Securities) asked about the targeted increase in prescribers for Jornay and the potential to revisit peak sales estimates. CEO Vikram Karnani said the company will reassess forecasts after evaluating the impact of sales force expansion and marketing investments, while Chief Commercial Officer Scott Dreyer emphasized ongoing growth in prescriber breadth and awareness.
- Sulewski (Truist Securities) also questioned additional investments planned for the pain portfolio. Dreyer responded that investments remain steady and focused on maintaining current brand performance, with no significant shifts expected in sales or marketing spend.
- John Todaro (Needham & Company) inquired about specific strategies to boost Jornay’s performance during the third quarter and competitive risks in the pain franchise. Dreyer highlighted the focus on awareness campaigns and leveraging the expanded sales team, while CFO Colleen Tupper detailed the regulatory and manufacturing hurdles that limit near-term generic competition.
- David A. Amsellem (Piper Sandler) asked about the company’s approach to business development and whether it would consider non-pain or earlier-stage assets. Karnani stated the primary focus remains on commercial or commercial-ready assets that leverage existing infrastructure, with openness to other areas only under disciplined financial criteria.
- Amsellem (Piper Sandler) also questioned the timing for pursuing pipeline or development-stage assets. Karnani indicated this could be considered after further portfolio expansion and scaling the business, but not in the immediate term.
Catalysts in Upcoming Quarters
In future quarters, our analysts will watch (1) the effectiveness of new sales and marketing initiatives in driving sustained prescription growth for Jornay, particularly as the back-to-school season unfolds, (2) how operating expense trends evolve as commercialization investments mature, and (3) any developments in potential generic entry timelines for the pain portfolio. Management’s execution on business development and capital deployment will also be key indicators of progress toward diversification goals.
Collegium Pharmaceutical currently trades at $38.35, up from $29.72 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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