Collegium Pharmaceutical Reports 22.7% Revenue Growth to $177.8 Million in Q1 2025

Collegium Pharmaceutical, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $177.8 million, a 22.7% increase from $144.9 million in the same period last year. This growth was primarily driven by the introduction of Jornay PM, which contributed $28.5 million in revenue following its acquisition from Ironshore Therapeutics in September 2024. Other products, including the Nucynta line, Xtampza ER, and Belbuca, also saw revenue increases, although Symproic experienced a slight decline of $0.4 million.

The company's gross profit for the quarter was $97.3 million, up from $91.5 million in the prior year, despite a rise in total cost of product revenues, which increased to $80.4 million from $53.5 million. This increase was attributed to higher costs associated with the newly acquired Jornay product and increased intangible asset amortization, which rose to $55.5 million from $34.5 million. Operating expenses surged to $75.6 million, compared to $42.0 million in the previous year, largely due to increased salaries and marketing expenses related to the Ironshore acquisition and the expansion of the sales force.

Collegium's net income for the quarter was $2.4 million, a significant decrease from $27.7 million in the first quarter of 2024. This decline was influenced by higher interest expenses, which rose to $20.8 million from $17.3 million, and a lower interest income of $2.2 million compared to $4.5 million in the prior year. The effective tax rate for the quarter was 22.6%, down from 24.3% in the previous year, reflecting lower earnings before taxes.

In terms of operational metrics, Collegium's cash and cash equivalents increased to $96.2 million as of March 31, 2025, up from $70.6 million at the end of 2024. The company also reported a total of $1.6 billion in assets, with total liabilities decreasing to $1.4 billion from $1.4 billion at the end of the previous fiscal year. The company’s employee headcount has increased due to the Ironshore acquisition, contributing to higher operational costs.

Looking ahead, Collegium expects to leverage its product portfolio, including Jornay, Belbuca, Xtampza, and the Nucynta products, to drive future growth. The company believes that its current cash position, along with anticipated cash inflows from product sales, will support its operational and capital needs for the foreseeable future. However, it remains cautious about potential market risks and the ongoing challenges associated with the commercialization of its products.