Collegium Pharmaceutical buys back $25 million in shares

STOUGHTON, Mass. - Collegium Pharmaceutical, Inc. (NASDAQ:COLL), a biopharmaceutical company with a market capitalization of $928.59 million, has initiated a $25 million Accelerated Share Repurchase (ASR) agreement with Jefferies LLC. This buyback is a segment of a larger $150 million repurchase program approved by its Board of Directors on January 2024. Following this transaction, the company will have $65 million remaining in its repurchase initiative. According to InvestingPro data, management has been consistently executing share buybacks, demonstrating confidence in the company’s value proposition.

The ASR agreement, announced today, follows a period of significant revenue growth for Collegium, with a 23% year-over-year increase in the first quarter of 2025. The company maintains impressive gross profit margins of 87.04% and has achieved revenue growth of 17.17% over the last twelve months. This growth is attributed to strong sales in the company’s pain management portfolio and the ADHD medication Jornay PM.

Colleen Tupper, Collegium’s Chief Financial Officer, expressed confidence in the company’s growth trajectory and stated that the ASR reflects a strategic capital allocation aimed at driving sustained revenue growth while returning capital to shareholders. She emphasized the company’s commitment to investing in product growth drivers, disciplined portfolio expansion, debt reduction, and share repurchases.

Under the ASR agreement terms, Collegium will pay $25 million to Jefferies LLC and initially receive 692,281 shares. These shares are based on Collegium’s common stock closing price of $28.89 on May 9, 2025, representing about 80% of the expected total repurchased shares. The final number of shares will depend on the volume-weighted average prices of Collegium’s stock during the ASR term, with adjustments based on the ASR’s terms and conditions. The ASR is expected to conclude by the third quarter of 2025.

As of March 31, 2025, Collegium had approximately 32.1 million shares outstanding. The company, headquartered in Stoughton, Massachusetts, focuses on managing serious medical conditions through a diversified portfolio of pain management medications and neuropsychiatric treatments, including the recently acquired Jornay PM.

This move is part of Collegium’s broader strategy to grow its commercial portfolio and responsibly deploy capital. The information in this article is based on a press release statement.

In other recent news, Collegium Pharmaceutical reported a strong financial performance for the first quarter of 2025, with net product revenues reaching $177.8 million, reflecting a 23% increase compared to the previous year. The company’s ADHD medication, Jornay PM, contributed significantly to this growth, achieving a 24% rise in prescriptions and generating $28.5 million in net revenue. BELBUCA, another key product, saw a modest 2% increase in net revenue, bringing in $51.7 million. Collegium’s cash position also improved by $35 million from the end of 2024, highlighting its robust financial health.

Looking ahead, Collegium Pharmaceutical has set optimistic revenue guidance for 2025, projecting net product revenues between $735 million and $750 million. The company expects Jornay PM to generate over $135 million in revenue, with adjusted EBITDA anticipated to grow by 10%. In terms of strategic initiatives, the company recently expanded its ADHD sales force, adding 55 new representatives to enhance prescription growth. Additionally, Collegium announced a $25 million accelerated share repurchase program, reinforcing its commitment to shareholder value.

Analysts have mixed expectations regarding the company’s earnings per share (EPS), which is forecasted at $1.50. Despite these revisions, Collegium’s diversified product portfolio and strategic market positioning continue to drive positive financial outcomes. The company remains focused on maximizing its pain portfolio and strategically deploying capital to enhance shareholder value, as emphasized by CEO Vikram Karnani. These developments position Collegium for continued growth and success in 2025 and beyond.

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