Collegium Pharmaceutical Announces Exciting Share Buyback Plan

Collegium Pharmaceutical Announces a $25 Million Share Repurchase

Collegium Pharmaceutical, Inc. (Nasdaq: COLL), a prominent biopharmaceutical company dedicated to enhancing the quality of life for individuals facing serious health challenges, has officially revealed its initiation of a $25 million Accelerated Share Repurchase (ASR) agreement with Jefferies LLC. This significant move is part of a broader $150 million share repurchase initiative that the Company’s Board of Directors approved earlier this year. Upon finalizing the ASR, Collegium will have approximately $65 million in remaining share repurchases.

Growth and Strategy Behind the Share Repurchase

Colleen Tupper, the Chief Financial Officer at Collegium, expressed enthusiasm about the Company's performance in the early months of 2025, highlighting a commendable 23% increase in first-quarter revenues compared to the same period last year. This growth is predominantly attributed to impressive sales from its effective pain management products, along with notable contributions from its new ADHD treatment, Jornay PM. Tupper commented, "The Board's approval of the $25 million ASR program showcases our strategic capital allocation aimed at fostering sustained revenue growth while returning value to our shareholders. We are optimistic about our future growth path and are committed to enhancing our offerings as we capitalize on key product innovations, strengthen our portfolio through targeted business development, reduce debt, and judiciously repurchase shares."

Details of the Accelerated Share Repurchase

The terms of the ASR agreement stipulate that Collegium will disburse $25 million to Jefferies LLC, which will facilitate an initial acquisition of 692,281 shares, correlating to the closing stock price of $28.89 on May 9, 2025. This initial share purchase represents roughly 80% of the total shares that the Company anticipates repurchasing through this ASR. The actual number of shares ultimately bought back will depend on the volume-weighted average trading prices of the Company's stock over the ASR duration, along with necessary adjustments per the agreement's guidelines. The ASR is projected to be finalized by the third quarter of 2025, with Collegium having around 32.1 million shares currently outstanding.

Collegium's Commitment to Responsible Medical Innovation

Collegium is establishing itself as a frontrunner in the biopharmaceutical field with a diverse range of medications aimed at responsible pain management. The Company's acquisition of Jornay PM, a significant advancement in ADHD treatment, marks its strategic entry into neuropsychiatry. Collegium is dedicated to expanding its portfolio judiciously, with Jornay PM identified as the key driver for growth. The Company’s headquarters are based in Stoughton, Massachusetts, where it continues to innovate and develop products that can transform patient care.

Frequently Asked Questions

What is the purpose of Collegium's $25 million ASR program?

The $25 million ASR program aims to repurchase shares to enhance shareholder value while balancing the Company’s growth strategy.

How is Collegium performing financially?

Collegium reported a 23% revenue growth in the first quarter of 2025, largely driven by its pain management products and the ADHD medication Jornay PM.

What is the expected timeline for the ASR program completion?

The completion of the ASR program is anticipated by the third quarter of 2025.

How will the number of shares repurchased be determined?

The final count of repurchased shares will be based on the volume-weighted average stock price during the ASR period, along with terms outlined in the agreement.

Where can I learn more about Collegium Pharmaceutical?

For more information about Collegium Pharmaceutical, visit their official website at www.collegiumpharma.com.

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