COLL Q3 Deep Dive: Jornay PM Momentum and Pain Portfolio Drive Upgraded Outlook

Pharmaceutical company Collegium Pharmaceutical (NASDAQ:COLL) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 31.4% year on year to $209.4 million. The company’s full-year revenue guidance of $780 million at the midpoint came in 3.8% above analysts’ estimates. Its non-GAAP profit of $2.25 per share was 21% above analysts’ consensus estimates.

Is now the time to buy COLL? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Collegium Pharmaceutical’s third quarter was marked by robust demand for its ADHD medication Jornay PM and continued resilience in its pain management portfolio. Management pointed to a successful back-to-school season, with Jornay PM prescriptions growing 20% year-over-year, supported by expanded sales efforts and targeted marketing. The company also saw broad-based growth across its pain products, which leadership described as more durable than previously expected. CEO Vikram Karnani emphasized, “We continue to make considerable progress on our strategic priorities, including driving significant growth for Jornay and maximizing the durability of our pain portfolio.”

Looking ahead, Collegium Pharmaceutical’s guidance reflects confidence in continued momentum from Jornay PM and a stable outlook for its pain products. Management expects incremental investments in sales and marketing to further drive awareness and adoption of Jornay, while improvements in payer coverage and contract terms are seen as supporting profitability. CFO Colleen Tupper noted, “We expect Jornay revenue to be driven by both increased demand and gross to net improvements,” highlighting expectations for operating leverage as the expanded sales force and new digital campaigns mature into 2026.

Key Insights from Management’s Remarks

Management credited strong prescription growth for Jornay PM and stable pain product demand as the main contributors to the quarter’s results, with targeted commercial investments and improved profitability from contracting and rebate settlements also playing key roles.

• Jornay PM prescription surge: Collegium saw a 20% year-over-year increase in Jornay PM prescriptions, with the pediatric and adolescent segment (80% of prescriptions) up 18% and adult segment up 29%. Management attributed this growth to expanded sales coverage and digital marketing, especially during the back-to-school season, which is a critical period for ADHD medication adoption.
• Sales force expansion impact: The addition of 55 new representatives brought the ADHD sales team to 180, targeting 21,000 prescribers (up from 17,000). While the full benefit is expected in future quarters, early signs include 3,800 new prescribers in Q3 and increased interaction frequency with key healthcare providers.
• Pain portfolio durability: The pain management products—Belbuca, Xtampza ER, and Nucynta ER—delivered another quarter of year-over-year revenue growth. Management pointed to continued broad coverage, exclusive formulary wins for Xtampza ER, and a lack of major expected payer changes as supporting the durability of this segment.
• Profitability improvements: Favorable contracting, improved return rates, and a rebate settlement for Nucynta (timing benefit) contributed to margin gains. Nucynta’s rebate settlement of $2.8 million in Q3 was cited as a one-time benefit linked to previous periods, while gross to net improvements for Jornay PM were seen as sustainable drivers for future quarters.
• Strategic capital deployment: Collegium continues to prioritize a balanced approach to capital allocation, including business development, debt repayment, and opportunistic share repurchases. Management remains active in evaluating commercial or near-commercial assets to further diversify the portfolio but indicated that R&D risk will be limited until the company grows further.

Drivers of Future Performance

Collegium’s outlook centers on continued growth for Jornay PM, steady pain portfolio revenues, and disciplined investment in commercial expansion to support operating leverage.

• Jornay PM growth trajectory: Management expects ongoing prescription growth, particularly as expanded sales coverage and marketing campaigns mature, with a focus on increasing awareness among healthcare providers and caregivers. Improved payer coverage for 2026, with an additional 2 million lives, is anticipated to support both volume and profitability.
• Pain portfolio stability: The pain franchise is projected to remain a reliable revenue base, underpinned by strong brand positioning, exclusive formulary access for Xtampza ER, and consistent demand. Management does not foresee major payer or formulary changes in the near term, reducing risk to revenue stability.
• Business development and capital allocation: Leadership intends to pursue additional commercial or near-commercial product acquisitions, emphasizing operational synergies with existing sales infrastructure. Capital deployment will remain balanced among M&A, share repurchases, and debt repayment, with limited R&D risk until scale is increased.

Catalysts in Upcoming Quarters

Looking forward, our team will monitor (1) continued prescription and market share growth for Jornay PM, especially as the expanded sales force and new marketing initiatives reach full impact, (2) the resilience of pain portfolio revenues in the face of payer dynamics and formulary shifts, and (3) any progress or announcements related to business development efforts. Execution on commercial expansion and integration of new assets will be key markers of Collegium’s strategic progress.

Collegium Pharmaceutical currently trades at $41.77, up from $35.84 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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