Bullish indicating open at $55-$60, IPO prices at $37
STOUGHTON, Mass. - Collegium Pharmaceutical, Inc. (NASDAQ:COLL), a pharmaceutical company with a market capitalization of $975 million, announced today that its Board of Directors has authorized a new share repurchase program of up to $150 million in common stock through December 31, 2026. According to InvestingPro data, management has been consistently aggressive with share buybacks, demonstrating confidence in the company’s value proposition.
The new program replaces a previous $150 million authorization from January 2024 that expired on June 30, 2025, which had $65 million remaining. The biopharmaceutical company, which focuses on treatments for serious medical conditions, has returned $222 million to shareholders through share repurchases since 2021. The company’s strong financial position is reflected in its impressive gross profit margin of 87% and robust free cash flow yield of 20%.
"Collegium’s strong financial position provides us with significant flexibility in executing our capital allocation strategy," said Colleen Tupper, Chief Financial Officer, according to the company’s press release statement. InvestingPro analysis supports this view, showing the company maintains a "GREAT" financial health score of 3.54 out of 5, with particularly strong profitability metrics. Subscribers can access 6 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
The company initiated a $25 million accelerated share repurchase program in May 2025 that is expected to be completed in the third quarter of this year. As of March 31, 2025, Collegium had approximately 32.1 million shares outstanding. The company has demonstrated strong revenue growth of 17% over the last twelve months, with analysts expecting continued profitability this year.
Collegium maintains a portfolio of pain management medications and recently established a presence in neuropsychiatry with its acquisition of Jornay PM, a treatment for ADHD. The company identifies Jornay PM as its lead growth driver in its strategy to expand its commercial portfolio.
The Massachusetts-based firm describes its approach as including growing its commercial portfolio while deploying capital in a disciplined manner, according to the announcement.
In other recent news, Collegium Pharmaceutical reported strong financial results for the first quarter of 2025, with net product revenues reaching $177.8 million, reflecting a 23% increase compared to the previous year. This growth is attributed to significant sales in its pain management portfolio and the ADHD medication Jornay PM, which saw a 24% increase in prescriptions. The company also announced a $25 million Accelerated Share Repurchase (ASR) agreement with Jefferies LLC, as part of a larger $150 million buyback program authorized in January 2024. Following this transaction, Collegium will have $65 million remaining in its repurchase initiative. Analysts have set earnings per share (EPS) forecasts at $1.50, with some mixed expectations noted. The company’s cash position improved by $35 million from the end of 2024, reaching $197.8 million. Additionally, the company plans to strategically deploy capital to drive sustained revenue growth and return value to shareholders. These developments reflect Collegium’s ongoing efforts to strengthen its financial standing and market position.
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