Latest news with #CollegiumPharmaceutical
Yahoo
04-08-2025
- Business
- Yahoo
1 Cash-Producing Stock to Own for Decades and 2 We Ignore
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble. Two Stocks to Sell: DocuSign (DOCU) Trailing 12-Month Free Cash Flow Margin: 30.2% Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically. Why Does DOCU Worry Us? Annual revenue growth of 10.8% over the last three years was below our standards for the software sector Offerings struggled to generate meaningful interest as its average billings growth of 6.4% over the last year did not impress Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend At $73.83 per share, DocuSign trades at 4.9x forward price-to-sales. To fully understand why you should be careful with DOCU, check out our full research report (it's free). Collegium Pharmaceutical (COLL) Trailing 12-Month Free Cash Flow Margin: 29.6% Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations. Why Are We Hesitant About COLL? Subscale operations are evident in its revenue base of $664.3 million, meaning it has fewer distribution channels than its larger rivals Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.5 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up Collegium Pharmaceutical's stock price of $30.07 implies a valuation ratio of 4.2x forward P/E. Dive into our free research report to see why there are better opportunities than COLL. One Stock to Buy: Alphabet (GOOGL) Trailing 12-Month Free Cash Flow Margin: 18% Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Why Will GOOGL Outperform? Alphabet's dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin. The company's profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term. Alphabet is trading at $188.40 per share, or 19.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Stocks We Like Even More Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Collegium Pharmaceutical Announces Share Repurchase Program Worth $25 Million
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is one of the 12 Small Cap Stocks with High Upside Potential. On May 12, the diversified biopharmaceutical company entered an accelerated share purchase agreement with Jefferies LLC. Under the agreement, the company agreed to repurchase $25 million of the company's common stock. The accelerated share repurchase program is part of an elaborate $150 million share repurchase program approved by the Board last year in January. A surgeon wearing scrubs with a stack of pharmaceuticals in the background. Colleen Tupper, Chief Financial Officer, stated: '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. 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.' In Q1 FY2025, the company reported net revenue worth $177.8 million, up by 23% year-over-year. Its pain portfolio generated $149.2 million, with its three primary products reporting record revenue growth. The company also celebrates a stable financial condition with cash and cash equivalents, and marketable securities worth $197.8 million. Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a pharmaceutical company that develops medicines for pain management. The company currently has six approved drugs in its portfolio. While we acknowledge the potential of COLL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Collegium Pharmaceutical's Q1 Earnings Call
Collegium Pharmaceutical's first quarter results were well received by the market, with management crediting growth in its ADHD medicine Jornay and stability in its pain portfolio as the primary drivers. CEO Vikram Karnani highlighted that Jornay prescriptions grew 24% year-over-year, and all three pain medicines delivered single-digit revenue growth, despite typical first-quarter headwinds. Karnani emphasized, 'We have made significant progress on each of our strategic priorities,' citing the successful expansion of the sales force and continued investment in product differentiation as key factors supporting performance. Is now the time to buy COLL? Find out in our full research report (it's free). Revenue: $177.8 million vs analyst estimates of $172.8 million (22.7% year-on-year growth, 2.9% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.45 (2.8% beat) Adjusted EBITDA: $95.15 million vs analyst estimates of $96.5 million (53.5% margin, 1.4% miss) The company reconfirmed its revenue guidance for the full year of $742.5 million at the midpoint EBITDA guidance for the full year is $442.5 million at the midpoint, above analyst estimates of $438.5 million Operating Margin: 12.2%, down from 34.1% in the same quarter last year Market Capitalization: $962 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Les Sulewski (Truist Securities) asked about Jornay prescription seasonality and the sales force expansion's geographic and frequency impact. Chief Commercial Officer Scott Dreyer explained that expanded reach and more frequent engagements are expected to show results later in 2025. Les Sulewski (Truist Securities) questioned the potential for Jornay's delayed release technology to be applied to other compounds. CEO Vikram Karnani replied that previous attempts focused on methylphenidate, and current efforts are centered on maximizing Jornay's growth potential. Les Sulewski (Truist Securities) inquired about the appetite for business development in the current environment. Karnani emphasized a disciplined approach, with capital deployment decisions guided by long-term shareholder value. Serge Belanger (Needham & Co.) asked about ADHD market growth, prescriber base composition, and sources of Jornay's market share gains. Dreyer noted the market is growing 5-6% annually, with share gains driven mainly by switches from generic immediate-release products. David Amsellem (Piper Sandler) asked about optimal sales force size for Jornay and peak sales expectations. Dreyer described the current sales force as 'right-sized' and Karnani said peak sales estimates would follow a full assessment of sales expansion impact. In the coming quarters, the StockStory team will be monitoring (1) prescription growth trends for Jornay, especially following the expanded sales force and back-to-school campaigns, (2) stability and cash flow generation from the pain portfolio amid market headwinds and product exclusivity timelines, and (3) any updates on portfolio expansion or business development transactions. The company's ability to manage expenses after recent investments will also be a key area of focus. Collegium Pharmaceutical currently trades at $29.93, up from $27.28 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
10-06-2025
- Business
- Yahoo
COLL Q1 Earnings Call: ADHD Portfolio Drives Growth, Management Details Capital Deployment Priorities
Pharmaceutical company Collegium Pharmaceutical (NASDAQ:COLL) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 22.7% year on year to $177.8 million. The company expects the full year's revenue to be around $742.5 million, close to analysts' estimates. Its non-GAAP profit of $1.49 per share was 2.8% above analysts' consensus estimates. Is now the time to buy COLL? Find out in our full research report (it's free). Revenue: $177.8 million vs analyst estimates of $172.8 million (22.7% year-on-year growth, 2.9% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.45 (2.8% beat) Adjusted EBITDA: $95.15 million vs analyst estimates of $96.5 million (53.5% margin, 1.4% miss) The company reconfirmed its revenue guidance for the full year of $742.5 million at the midpoint EBITDA guidance for the full year is $442.5 million at the midpoint, above analyst estimates of $438.5 million Operating Margin: 12.2%, down from 34.1% in the same quarter last year Market Capitalization: $978.4 million Collegium Pharmaceutical's first quarter performance was driven by continued momentum in its newly acquired ADHD treatment Jornay PM, alongside stable contributions from its established pain management portfolio. On the call, CEO Vikram Karnani highlighted that Jornay PM delivered 24% year-over-year prescription growth and now accounts for a growing share of the company's overall revenue. Karnani credited targeted sales force expansion and increased prescriber engagement as keys to this performance, stating, 'We recently completed the expansion of our Jornay sales force, adding approximately 55 new sales representatives… now fully trained, deployed and focused on accelerating further prescription growth.' The pain portfolio, including Belbuca, Xtampza ER, and Nucynta, provided steady revenue and cash flow, allowing for continued investment in growth initiatives. Looking ahead, management's guidance is anchored by expectations for continued growth from Jornay PM, with investments in sales and marketing expected to drive prescription gains through 2025 and beyond. Karnani emphasized, 'Our targeted investments throughout 2025, including our expanded sales force and marketing efforts, position Jornay for both near-term growth and significant momentum in 2026 and beyond.' CFO Colleen Tupper noted that operating expenses will remain elevated as the company supports these initiatives but anticipates a downward trend in spending during the second half of the year. The team also pointed to durable cash flows from the pain portfolio, a disciplined approach to business development, and opportunistic share repurchases as key levers supporting future performance and shareholder value. Management attributed the quarter's results to rapid prescription growth for Jornay PM, ongoing durability in pain products, and investments in commercial capabilities. Several leadership and board changes were also highlighted as positioning the company for future growth. Jornay PM prescription surge: The ADHD medicine Jornay PM saw 24% year-over-year prescription growth, with net revenue reaching $28.5 million. Management linked this performance to an expanded and fully trained sales force and increased prescriber engagement. Pain portfolio stability: The legacy pain management products—Belbuca, Xtampza ER, and Nucynta—delivered low-single-digit revenue growth. Despite a declining overall pain market, these products continued to provide a reliable financial foundation, supported by recent extensions of market exclusivity for certain drugs. Sales force investment: The ADHD-focused sales force was expanded by 55 representatives, now totaling 180, allowing Collegium to increase its healthcare provider targets from 17,000 to 21,000. Management expects the full impact of this increase to be realized in late 2025 and into 2026. Leadership and board transitions: The company announced several changes, including the retirement of founder Michael Heffernan as Chairman, nomination of Gino Santini as Chairman, and the addition of new executive leaders to bolster strategic and commercial capabilities. Capital allocation priorities: Management highlighted ongoing investments in Jornay, rapid debt repayment, and the initiation of a $25 million accelerated share repurchase program as core elements of its capital deployment strategy. Collegium's outlook relies on continued expansion of Jornay PM in ADHD, disciplined investment in commercial activities, and maintaining stable returns from its pain portfolio. Jornay growth initiatives: Management expects prescription growth from Jornay PM to accelerate as the expanded sales force reaches more providers and new marketing campaigns target patients and caregivers, particularly around the back-to-school season. The company believes these efforts will lay the groundwork for sustained revenue momentum into 2026. Pain portfolio durability: Despite broader market declines, Collegium anticipates ongoing stable cash flows from its pain products due to product differentiation, market exclusivity, and a strong prescriber base. Management views these products as supporting continued investment and potential business development. Capital deployment flexibility: Management is committed to allocating capital between organic growth, opportunistic acquisitions, and share repurchases. The leadership team indicated willingness to increase leverage for the right acquisition opportunity, supported by strong operating cash flow and a declining net debt ratio. Looking ahead, the StockStory team will be tracking (1) the effectiveness of the expanded Jornay PM sales force and marketing campaigns, especially during the seasonally important back-to-school period; (2) resilience of the pain portfolio as market exclusivities extend and generic pressures mount; and (3) progress on capital deployment, including potential acquisitions and execution of the accelerated share repurchase program. The trajectory of operating expenses as investments scale will also be a key area of focus. Collegium Pharmaceutical currently trades at a forward P/E ratio of 4.2×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Upturn
12-05-2025
- Business
- Business Upturn
Collegium Announces $25 Million Accelerated Share Repurchase Program
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 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 KarpHead of Investor Relations [email protected]
