Collegium Announces $25 Million Accelerated Share Repurchase Program

Rhea-AI Summary

Collegium Pharmaceutical (NASDAQ: COLL) has announced a $25 million Accelerated Share Repurchase (ASR) agreement with Jefferies LLC. This ASR is part of a larger $150 million share repurchase program authorized in January 2024, with $65 million remaining after this transaction. The company will receive an initial delivery of 692,281 shares at $28.89 per share, representing approximately 80% of expected total shares under the ASR.

The company reported strong Q1 2025 performance with 23% year-over-year revenue growth, driven by its pain portfolio and ADHD medicine Jornay PM®. The final settlement of the ASR is expected by Q3 2025, with the final share count based on volume-weighted average prices. As of March 31, 2025, Collegium had approximately 32.1 million shares outstanding.

Positive

• Strong Q1 2025 performance with 23% year-over-year revenue growth
• Significant contribution from ADHD medicine Jornay PM®
• $25 million share repurchase program demonstrates confidence in future growth
• Company maintains strong cash position while balancing growth investments and shareholder returns

Negative

• Share repurchase may reduce cash available for business operations and development
• Final share count and price uncertain until ASR completion

Insights

Financial Analyst

Collegium's $25M share repurchase signals management confidence while balancing growth investments, debt reduction, and shareholder returns.

Collegium's announcement of a $25 million Accelerated Share Repurchase (ASR) program represents approximately 1.8% of the company's market capitalization, based on the $28.89 share price and 32.1 million shares outstanding (~$927 million market cap). This move is part of a broader $150 million share repurchase authorization, with $65 million remaining after this ASR completes.

The financial implications are noteworthy. The initial delivery of 692,281 shares represents approximately 2.2% of outstanding shares, which will have a modest but positive impact on EPS through share count reduction. The ASR structure provides immediate share count benefits while allowing for potential additional value if the share price declines during the program period.

What's particularly telling is management's balanced capital allocation strategy. They're simultaneously focusing on:

• Revenue growth (23% year-over-year in Q1)
• Debt reduction (mentioned as "rapidly pay down debt")
• Business development for portfolio expansion
• Share repurchases

The fact that the company can fund these initiatives simultaneously suggests healthy cash flow generation. The emphasis on their pain portfolio and growing ADHD medicine (Jornay PM) indicates diversification of revenue streams beyond their core pain management franchise.

The signaling effect shouldn't be overlooked. Management's willingness to repurchase shares at current prices indicates their belief that the stock is undervalued relative to future prospects. This ASR represents a more aggressive approach than a traditional open market repurchase, demonstrating stronger conviction in near-term value.

STOUGHTON, Mass., May 12, 2025 (GLOBE NEWSWIRE) -- Collegium Pharmaceutical, Inc. (Nasdaq: COLL), a leading, diversified biopharmaceutical company committed to improving the lives of people living with serious medical conditions, today announced that it has entered into an Accelerated Share Repurchase ("ASR") agreement with Jefferies LLC to repurchase $25 million of the Company’s common stock. Collegium will execute the ASR as part of the $150 million share repurchase program authorized by its Board of Directors in January 2024. Upon completion of this ASR, Collegium will have $65 million remaining under the program.

“Collegium is off to a strong start in 2025 with first quarter revenues growing 23% year-over-year, driven by robust sales from our pain portfolio and a significant contribution from our rapidly growing ADHD medicine, Jornay PM®,” said Colleen Tupper, Chief Financial Officer. “The Board’s authorization of a $25 million ASR program reflects our strategic approach to capital allocation that balances driving sustained revenue growth while also returning capital to shareholders. We are confident in our future growth trajectory and remain committed to generating additional value as we invest in our key product growth drivers, expand our portfolio through disciplined business development, rapidly pay down debt and opportunistically repurchase shares.”

Under terms of the agreement, Collegium will pay $25 million to Jefferies LLC and will receive an initial delivery of 692,281 shares, based on the $28.89 closing stock price of Collegium’s common stock on May 9, 2025, representing approximately 80% of the total shares the Company expects to repurchase under the ASR agreement. The final number of shares repurchased will be based on the volume-weighted average prices of Collegium’s common stock during the term of the ASR and subject to adjustments related to the terms and conditions of the ASR agreement. The final settlement of the ASR is expected to be completed no later than the third quarter of 2025. As of March 31, 2025, Collegium had approximately 32.1 million shares outstanding.

About Collegium Pharmaceutical, Inc.

Collegium is building a leading, diversified biopharmaceutical company committed to improving the lives of people living with serious medical conditions. The Company has a leading portfolio of responsible pain management medications and recently acquired Jornay PM, a treatment for ADHD, establishing a presence in neuropsychiatry. Collegium’s strategy includes growing its commercial portfolio, with Jornay PM as the lead growth driver, and deploying capital in a disciplined manner. Collegium’s headquarters are located in Stoughton, Massachusetts. For more information, please visit the Company’s website at www.collegiumpharma.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as "predicts," "forecasts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Examples of forward-looking statements contained in this press release include, among others, statements related to current and future market opportunities for our products and our assumptions related thereto, expectations (financial or otherwise) and intentions, and other statements that are not historical facts. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results, performance, or achievements to differ materially from the company's current expectations, including risks relating to, among others: unknown liabilities; risks related to future opportunities and plans for our products, including uncertainty of the expected financial performance of such products; our ability to commercialize and grow sales of our products; our ability to manage our relationships with licensors; the success of competing products that are or become available; our ability to maintain regulatory approval of our products, and any related restrictions, limitations, and/or warnings in the label of our products; the size of the markets for our products, and our ability to service those markets; our ability to obtain reimbursement and third-party payor contracts for our products; the rate and degree of market acceptance of our products; the costs of commercialization activities, including marketing, sales and distribution; changing market conditions for our products; the outcome of any patent infringement or other litigation that may be brought by or against us; the outcome of any governmental investigation related to our business; our ability to secure adequate supplies of active pharmaceutical ingredient for each of our products and manufacture adequate supplies of commercially saleable inventory; our ability to obtain funding for our operations and business development; regulatory developments in the U.S.; our expectations regarding our ability to obtain and maintain sufficient intellectual property protection for our products; our ability to comply with stringent U.S. and foreign government regulation in the manufacture of pharmaceutical products, including U.S. Drug Enforcement Agency compliance; our customer concentration; and the accuracy of our estimates regarding expenses, revenue, capital requirements and need for additional financing. These and other risks are described under the heading "Risk Factors" in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. We assume no obligation to update our forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

Investor Contacts:
Ian Karp
Head of Investor Relations
ir@collegiumpharma.com

Danielle Jesse
Director, Investor Relations
ir@collegiumpharma.com

Media Contact:
Cheryl Wheeler
Head of Corporate Communications
communications@collegiumpharma.com

FAQ

What is the size of Collegium's (COLL) new share repurchase program announced in May 2025?

Collegium announced a $25 million Accelerated Share Repurchase program, which is part of a larger $150 million share repurchase program authorized in January 2024.

How many shares will COLL initially receive under the May 2025 ASR agreement?

Collegium will initially receive 692,281 shares, representing approximately 80% of the total expected shares under the $25 million ASR agreement.

What was Collegium's revenue growth in Q1 2025?

Collegium reported 23% year-over-year revenue growth in Q1 2025, driven by strong sales from their pain portfolio and ADHD medicine Jornay PM®.

When will COLL's May 2025 Accelerated Share Repurchase program be completed?

The final settlement of the ASR is expected to be completed no later than the third quarter of 2025.

How much remains in Collegium's share repurchase authorization after the May 2025 ASR?

After the $25 million ASR, Collegium will have $65 million remaining under its share repurchase program.