Collegium Pharmaceutical initiates $25M share buyback

Collegium Pharmaceutical , Inc. (NASDAQ:COLL), a pharmaceutical company with a market capitalization of $929 million and impressive gross profit margins of 87%, has entered into an accelerated share repurchase agreement (ASR) with Jefferies LLC to buy back $25 million of its common stock, the company disclosed Monday. This repurchase is part of a larger $150 million buyback program authorized by Collegium’s Board of Directors in January 2024.

The ASR Agreement allows Collegium to immediately repurchase approximately 692,281 shares, accounting for about 80% of the expected total shares to be bought back under this agreement. These figures are based on the closing price of Collegium’s common stock as of the preceding Friday, May 9, 2025, which was $28.89 per share. The final number of shares to be repurchased will be determined by the volume-weighted average price of the company’s stock during the term of the ASR Agreement, with adjustments as specified within the agreement’s terms. According to InvestingPro analysis, management has been consistently buying back shares, and the company maintains a "GREAT" financial health score, suggesting strong operational performance.

The completion of this transaction is anticipated to occur by the third quarter of 2025. Collegium, a pharmaceutical company incorporated in Virginia, had approximately 32.1 million shares outstanding as of March 31, 2025.

Collegium’s announcement includes forward-looking statements regarding the share repurchase program and the expected completion of the ASR. These statements are subject to various risks and uncertainties, including changes in securities markets and the trading volume and price of the company’s stock.

This news is based on a press release statement and reflects the company’s situation as of May 12, 2025.

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% year-over-year increase. The company has also initiated a $25 million Accelerated Share Repurchase (ASR) agreement with Jefferies LLC, part of a larger $150 million repurchase program approved earlier this year. This move follows the significant revenue growth attributed to the company’s pain management portfolio and the ADHD medication Jornay PM. Jornay PM alone achieved a 24% growth in prescriptions, contributing $28.5 million in net revenue. Furthermore, Collegium’s cash position improved by $35 million from the end of 2024, reaching $197.8 million. Analyst firms have expressed mixed expectations for the company’s earnings per share, set at $1.50, while the company maintains an optimistic revenue guidance for the year. The company’s strategic initiatives, including the expansion of its ADHD sales force, have bolstered its market positioning. Collegium remains focused on responsible pain management and continues to explore opportunities for business development and portfolio diversification.

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