Introduction to Jornay PM
Jornay PM, a central nervous system (CNS) stimulant, is a prescription medication for the treatment of attention deficit hyperactivity disorder (ADHD) in individuals six years of age and older. It is distinguished by its evening dosing, smooth therapeutic effect, and dose-dependent duration, making it a highly differentiated treatment in the ADHD market[1][3][4].
Market Position and Growth
The acquisition of Ironshore Therapeutics by Collegium Pharmaceutical marks a significant strategic move into the neurology sector, specifically the ADHD market. Here are some key points highlighting the market dynamics:
- Growth in Prescriptions: In the first half of 2024, Jornay PM prescriptions grew by 32% year-over-year. For the full-year 2023, the product generated approximately 490,000 prescriptions, a 58% increase compared to 2022[1][3][4].
- Unique Selling Proposition: Jornay PM's evening dosing mechanism is a significant differentiator in the ADHD treatment market. This unique feature, along with its smooth therapeutic effect and dose-dependent duration, positions it as a preferred option for patients and healthcare providers[1][3][4].
Financial Trajectory
The financial outlook for Jornay PM is robust and aligns with Collegium's broader financial goals.
Revenue Projections
- Net revenue for Jornay PM is expected to exceed $100 million in 2024, making it Collegium's leading growth driver[1][3][4].
- The acquisition has led to an update in Collegium's 2024 financial guidance, with product revenues now expected to be in the range of $620.0 million to $635.0 million[3][4].
Adjusted EBITDA
- The acquisition is expected to be immediately accretive to Collegium's adjusted EBITDA, which is projected to be in the range of $395.0 million to $405.0 million for 2024. This represents an increase from the previous guidance of $380.0 million to $395.0 million[3][4].
Funding and Debt
- The acquisition of Ironshore Therapeutics was funded by $200 million of Collegium’s existing cash on hand and a $325 million term loan, part of a larger $646 million term loan provided by investment funds managed by Pharmakon Advisors, LP[3][4].
Patent Protection and Long-Term Viability
Jornay PM is supported by 16 Orange Book-listed patents, with expiries in 2032. This extensive patent protection ensures that the product will remain a significant revenue generator for Collegium over the next several years, providing a stable financial foundation[1][3][4].
Integration and Operational Impact
The integration of Jornay PM into Collegium's portfolio is expected to be seamless, leveraging Collegium's core commercial competencies and proven track record of efficiently integrating commercial products. This integration is anticipated to maximize the performance of both the pain portfolio and the newly acquired ADHD product[4].
Executive Insights
Michael Heffernan, Chairman and Interim President and Chief Executive Officer of Collegium, emphasized the strategic importance of the acquisition: "With the addition of Jornay PM to our portfolio, we are establishing our presence in the large and growing ADHD market with a highly differentiated product that is poised to become our leading growth driver."[4]
Financial Strength and Cash Flow Generation
The acquisition further strengthens Collegium’s financial position through an increased revenue base, expected immediate accretion to adjusted EBITDA, and accelerated cash flow generation. This financial robustness positions Collegium for continued growth and expansion in the specialty pharmaceutical market[3][4].
Key Takeaways
- Market Growth: Jornay PM has shown significant growth in prescriptions, with a 32% year-over-year increase in the first half of 2024.
- Financial Projections: Net revenue for Jornay PM is expected to exceed $100 million in 2024, contributing to Collegium's overall revenue guidance of $620.0 million to $635.0 million.
- Adjusted EBITDA: The acquisition is expected to be immediately accretive, with adjusted EBITDA projected to be $395.0 million to $405.0 million for 2024.
- Patent Protection: Jornay PM is protected by 16 Orange Book-listed patents until 2032.
- Integration and Operational Impact: The integration is expected to be seamless, leveraging Collegium's commercial competencies.
FAQs
Q: What is Jornay PM used for?
A: Jornay PM is a central nervous system (CNS) stimulant used for the treatment of attention deficit hyperactivity disorder (ADHD) in individuals six years of age and older.
Q: How does Jornay PM differentiate itself in the ADHD market?
A: Jornay PM is distinguished by its evening dosing, smooth therapeutic effect, and dose-dependent duration.
Q: What are the financial projections for Jornay PM in 2024?
A: Net revenue for Jornay PM is expected to exceed $100 million in 2024, contributing to Collegium's overall revenue guidance of $620.0 million to $635.0 million.
Q: How was the acquisition of Ironshore Therapeutics funded?
A: The acquisition was funded by $200 million of Collegium’s existing cash on hand and a $325 million term loan.
Q: What is the patent status of Jornay PM?
A: Jornay PM is supported by 16 Orange Book-listed patents, with expiries in 2032.
Cited Sources
- BioSpace: Collegium to Acquire Ironshore Therapeutics, Expanding into Neurology[1].
- GlobeNewswire: Knight Therapeutics Reports Second Quarter 2024[2].
- StockTitan: Collegium Completes Acquisition of Ironshore Therapeutics[3].
- Collegium Pharmaceutical: Collegium Completes Acquisition of Ironshore Therapeutics[4].
