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Collegium Pharmaceutical Inc. (COLL)
:COLL

Collegium Pharmaceutical (COLL) AI Stock Analysis

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Collegium Pharmaceutical

(NASDAQ:COLL)

77Outperform
Collegium Pharmaceutical is positioned strongly with robust revenue growth and improved profitability indicators, despite high leverage. The company's strategic expansions and guidance for future growth further bolster its outlook. Technical indicators show a balanced market position, while valuation suggests the stock is reasonably priced. The overall sentiment from the earnings call is positive, supporting a favorable medium-term outlook.
Positive Factors
Guidance and Growth
JORNAY PM is projected to exceed $135M, which is estimated to be over 32% pro forma year-over-year growth.
Product Portfolio
The company has a strong and diverse product portfolio with high-confidence longer exclusivity for products like Belbuca, JORNAY PM, and XTAMPZA ER, potentially extending exclusivity well into the future.
Stock Buyback
The company announced it repurchased another $25M in stock, signaling management confidence.
Valuation
Collegium Pharmaceutical Inc. trades at a low valuation of only 3.7 times the midpoint of its 2025 EV/EBITDA guidance, which is attractive given its history of exceeding EBITDA guidance for the past three years.
Negative Factors
Generic Competition
Despite potential risks from generic competition, Collegium is projected to generate significant cumulative adj-EBITDA and operating cash flow through 2028, which exceeds its current enterprise value.
Seasonality
Seasonality factors typically lead to a revenue step-down in the first quarter, affecting the company's financial performance compared to the fourth quarter.

Collegium Pharmaceutical (COLL) vs. S&P 500 (SPY)

Collegium Pharmaceutical Business Overview & Revenue Model

Company DescriptionCollegium Pharmaceutical, Inc. (COLL) is a specialty pharmaceutical company focused on developing and commercializing innovative medicines for people suffering from serious medical conditions. The company operates primarily in the pain management sector, offering products that address the challenges of opioid therapy. Its flagship product, Xtampza ER, is an extended-release, abuse-deterrent formulation of oxycodone designed for managing chronic pain in patients requiring continuous, long-term opioid treatment.
How the Company Makes MoneyCollegium Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, with a significant portion coming from Xtampza ER. The company employs a direct sales model, marketing its products to healthcare providers, including pain specialists and primary care physicians. Collegium also benefits from strategic partnerships with other pharmaceutical companies to expand its product offerings and enhance its distribution capabilities. Additionally, the company may earn milestone and royalty payments from licensing agreements. Factors such as pricing, market demand, and prescription volumes significantly influence its earnings.

Collegium Pharmaceutical Financial Statement Overview

Summary
Collegium Pharmaceutical exhibits strong financial performance with impressive revenue growth and improved profitability. The company shows robust income growth with a significant increase in net profit margin. Despite high leverage indicated by the debt-to-equity ratio, returns on equity are effectively managed. Cash flow health is strong, though there's a slight decline in free cash flow. Overall, financial metrics support continued growth.
Income Statement
85
Very Positive
Collegium Pharmaceutical has shown impressive revenue growth with a recent increase from $566.8M to $631.4M, translating to an 11.4% growth rate. The gross profit margin stands strong at 59.8%, and the net profit margin has improved significantly to 10.9%, indicating enhanced profitability. However, EBIT and EBITDA margins remain stable, suggesting consistent operational efficiency. Overall, the company exhibits a robust growth trajectory with improving profitability metrics.
Balance Sheet
70
Positive
The company maintains a high debt-to-equity ratio of 3.75, indicating potential leverage risk. However, the return on equity is a healthy 30.2%, showcasing effective utilization of equity capital. The equity ratio is modest at 13.7%, pointing to a balanced asset structure but with room for strengthening equity. In summary, while leverage is a concern, the company is efficiently generating returns on equity.
Cash Flow
78
Positive
Collegium Pharmaceutical has a strong operating cash flow to net income ratio of 2.96, demonstrating excellent cash generation capabilities. The free cash flow to net income ratio is also robust at 2.94, reflecting efficient cash management. However, the free cash flow has slightly decreased from the previous year, indicating a need for careful monitoring of cash expenditures. Overall, the cash flow health is strong with effective cash conversion from income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
631.45M566.77M463.93M276.87M310.02M
Gross Profit
377.34M326.17M209.49M150.62M179.84M
EBIT
169.90M166.96M-104.57M-46.70M-5.09M
EBITDA
169.90M308.33M168.76M86.58M118.07M
Net Income Common Stockholders
69.19M48.16M-25.00M71.52M26.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
162.76M310.55M173.69M186.43M174.12M
Total Assets
1.66B1.14B1.17B692.08M643.84M
Total Debt
859.30M674.28M872.79M258.75M266.58M
Net Debt
788.73M435.34M699.10M72.32M92.47M
Total Liabilities
1.43B947.88M979.29M489.15M457.81M
Stockholders Equity
228.84M195.43M194.84M202.93M186.03M
Cash FlowFree Cash Flow
203.33M274.29M122.61M101.61M-279.83M
Operating Cash Flow
204.98M274.75M124.23M103.56M93.94M
Investing Cash Flow
-287.76M-70.81M-573.69M-1.94M-373.77M
Financing Cash Flow
-60.60M-140.18M436.72M-89.30M286.47M

Collegium Pharmaceutical Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.85
Price Trends
50DMA
30.36
Negative
100DMA
30.57
Negative
200DMA
33.08
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.32
Neutral
STOCH
38.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLL, the sentiment is Negative. The current price of 29.85 is above the 20-day moving average (MA) of 29.61, below the 50-day MA of 30.36, and below the 200-day MA of 33.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 38.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLL.

Collegium Pharmaceutical Risk Analysis

Collegium Pharmaceutical disclosed 40 risk factors in its most recent earnings report. Collegium Pharmaceutical reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Collegium Pharmaceutical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$935.43M16.1632.62%11.41%45.89%
66
Neutral
$858.99M222.83%23.89%16.86%
VIVIR
51
Neutral
$918.86M-38.09%-13.90%16.56%
50
Neutral
$934.50M-24.97%53.32%33.82%
50
Neutral
$920.43M-82.24%-106.10%
48
Neutral
$6.84B1.02-53.11%2.50%16.84%0.92%
41
Neutral
$922.02M-53.22%-29.15%-9.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
COLL
Collegium Pharmaceutical
29.85
-9.03
-23.23%
HROW
Harrow Health
26.60
13.80
107.81%
XERS
Xeris Pharmaceuticals
5.49
3.35
156.54%
VIR
Vir Biotechnology
6.48
-3.72
-36.47%
NRIX
Nurix Therapeutics
11.88
-2.70
-18.52%
MLYS
Mineralys Therapeutics, Inc.
15.88
2.85
21.87%

Collegium Pharmaceutical Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: 5.03% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in Jornay PM and a strong financial position, supported by strategic acquisitions and expansions. Despite a decline in Nucynta revenue and increased operating expenses, the overall outlook remains positive due to strong performance in the pain portfolio and strategic initiatives.
Highlights
Strong Growth in Jornay PM
Jornay prescriptions grew 29% year-over-year and 11% quarter-over-quarter in Q4 2024. Net revenue was $100.7 million in 2024, expected to exceed $135 million in 2025, representing over 34% growth.
Record Revenues for Pain Portfolio
The pain portfolio generated 5% revenue growth in 2024, with record revenues for both BELBUCA and Xtampza ER. Total revenue grew 11%, and adjusted EBITDA grew 9% year-over-year.
Strategic Acquisitions and Expansions
Acquired Ironshore Therapeutics and its lead medicine Jornay PM, establishing a presence in neuropsychiatry. Expanded sales force from 125 to 180 to increase coverage for Jornay.
Positive Developments for Nucynta Franchise
Projected exclusivity for Nucynta ER extended to July 2027, reinforcing it as a robust revenue contributor.
Strong Financial Position
Ended 2024 with net leverage of less than two times and expect to end 2025 with net leverage of less than one time.
Lowlights
Nucynta Revenue Decline
Nucynta franchise net revenue was $41.8 million in Q4, down 11% year-over-year, and $176.5 million in 2024, down 7% year-over-year.
Increased Operating Expenses
GAAP operating expenses were $60.2 million in Q4, up 83% year-over-year. For 2024, GAAP operating expenses were $207.4 million, up 30% year-over-year.
Formulary Changes Impact
Expected pressure on prescriptions for BELBUCA and Xtampza ER in Q1 2025 due to formulary changes and typical first-quarter dynamics driven by patient deductible resets.
Company Guidance
During Collegium Pharmaceuticals' fourth quarter and full year 2024 earnings call, the company provided substantial guidance for 2025. They anticipate significant growth, with net product revenues expected to range between $735 million and $750 million, primarily driven by Jornay, which is projected to achieve net revenues exceeding $135 million, representing over 34% growth. For 2024, Collegium reported an 11% increase in total revenue and a 9% growth in adjusted EBITDA. The company also highlighted the expansion of its sales force from 125 to 180 representatives to enhance Jornay's market penetration. Additionally, they discussed expectations for net leverage to fall below one times by the end of 2025. The company plans to continue strategic capital deployment, including share repurchases and debt reduction, while focusing on maximizing the potential of its pain portfolio and expanding through business development.

Collegium Pharmaceutical Corporate Events

Executive/Board Changes
Collegium Pharmaceutical Appoints New Executive VP and General Counsel
Positive
Mar 17, 2025

Collegium Pharmaceutical announced the appointment of David Dieter as Executive Vice President and General Counsel, effective March 17, 2025. Mr. Dieter brings extensive legal experience from his previous roles, including serving as Vice President, Legal at Horizon Therapeutics USA, Inc., and holding leadership positions at Takeda. His appointment is expected to strengthen Collegium’s legal and business development capabilities.

Stock BuybackFinancial Disclosures
Collegium Pharmaceutical Reports Record 2024 Financial Results
Positive
Feb 27, 2025

On February 27, 2025, Collegium Pharmaceutical reported record financial results for the fourth quarter and full year of 2024, with net revenues reaching $181.9 million for the quarter and $631.4 million for the year. The company achieved a GAAP net income of $12.5 million for the quarter and $69.2 million for the year, alongside a record adjusted EBITDA of $107.7 million for the quarter and $401.2 million for the year. The company also repurchased $60 million in shares in 2024 and reaffirmed its financial guidance for 2025, indicating a strong position for future growth.

Executive/Board Changes
Collegium Pharmaceutical Expands Board with Nancy Lurker
Positive
Feb 5, 2025

On February 3, 2025, Collegium Pharmaceutical, Inc. announced the expansion of its board of directors from eight to nine members, appointing Nancy Lurker as a new director effective February 4, 2025. Lurker, who has extensive experience in the pharmaceutical industry, will serve until the 2025 Annual Meeting of Shareholders. Her appointment follows her role as Vice Chair at EyePoint Pharmaceuticals and a history of executive positions at several prominent pharmaceutical companies. The appointment aligns with Collegium’s strategic governance enhancements and marks a significant addition to its leadership, potentially strengthening its industry standing.

Business Operations and StrategyFinancial Disclosures
Collegium Pharmaceutical Unveils 2025 Financial Projections
Positive
Jan 8, 2025

Collegium Pharmaceutical announced its 2025 financial guidance, projecting product revenues between $735 and $750 million, with a focus on Jornay PM expected to exceed $135 million in net revenue. The company completed the integration of Ironshore Therapeutics and plans targeted investments in Jornay PM to drive growth, aiming for significant top- and bottom-line growth and long-term shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.