Collegium Pharmaceutical expands board, appoints new director

Collegium Pharmaceutical , Inc. (NASDAQ:COLL), a pharmaceutical company with a market capitalization of nearly $1 billion and an impressive gross profit margin of 87%, announced on Monday the expansion of its board of directors and the appointment of Nancy Lurker as a new board member, effective Tuesday.

According to InvestingPro data, the company maintains a "GREAT" financial health score, positioning it well for future growth. The decision, made by the board upon the recommendation of the Nominating and Corporate Governance Committee, increases the number of directors from eight to nine.

Nancy Lurker, age 67, brings extensive experience to Collegium’s board, having served as the Vice Chair of EyePoint Pharmaceuticals (NASDAQ:EYPT), Inc. since July 2023. Her appointment comes as Collegium prepares to announce its next earnings report on February 20, 2025, with InvestingPro analysis showing multiple positive indicators, including upward earnings revisions by analysts and strong profitability metrics.

Previously, she held the position of President and CEO at EyePoint from 2016 to July 2023. Her career also includes leadership roles at PDI (OTC:IDXG), Inc., Novartis (SIX:NOVN) Pharmaceuticals Corporation, Pharmacia Corporation, ImpactRx, and Bristol-Myers Squibb Company (NYSE:BMY).

Lurker’s appointment is until the company’s 2025 Annual Meeting of Shareholders, or until her earlier resignation, death, or removal. She will receive an annual cash retainer of $50,000, prorated for her appointment date, and was granted restricted stock units valued at $412,500, vesting on the first anniversary of the grant date, subject to continued service.

The board has determined Lurker is independent under Nasdaq’s listing rules. There are no reported arrangements or understandings between Lurker and any other persons regarding her selection, nor are there any family relationships between Lurker and any of the company’s current directors or executive officers. Additionally, there are no related party transactions requiring disclosure under SEC regulations.

This announcement is based on a recent SEC filing by Collegium Pharmaceutical. Trading at an attractive P/E ratio of 11.2, the company shows promising growth potential. For deeper insights into Collegium’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, Collegium Pharmaceuticals reported strong financial growth in its third quarter, with a 17% increase in total revenue and an 18% rise in adjusted EBITDA year-over-year.

This was driven by successful integration of Ironshore Therapeutics and its ADHD treatment, Jornay PM, which is expected to significantly contribute to the company’s net revenue, projected to surpass $100 million in 2024. Additionally, the pain management portfolio, including Belbuca and Xtampza ER, also showed strong performance.

Meanwhile, financial services firm Jefferies recently adjusted its stance on Collegium, lowering its price target on the stock to $40.00 from the previous $44.00, but maintained a Buy rating. This revision followed Collegium’s third-quarter results and was due to a model update. Jefferies expressed optimism about the company’s pain management portfolio and highlighted the potential long-term growth drivers such as Jornay PM.

Furthermore, Collegium appointed Vikram Karnani as the new CEO, leveraging his extensive biopharma experience to drive future growth. The company also provided positive financial guidance for 2024, with projected net product revenues of $620 million to $635 million.

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