Piper Sandler has adjusted its price target for Collegium Pharmaceutical (NASDAQ:COLL), reducing it to $37.00 from the previous target of $39.00. The firm has maintained a Neutral rating on the stock.
Collegium has reported second-quarter 2024 earnings, highlighting an adjusted diluted earnings per share (EPS) of $1.62 on revenue of $145.3 million. These figures surpassed the consensus estimates, which anticipated an EPS of $1.49 and revenue of $143.9 million.
The company has reiterated its sales guidance for the pain business, projecting revenues between $580 million and $595 million for the year 2024.
Piper Sandler's price target adjustment follows Collegium's announcement on July 29, 2024, regarding its plans to acquire Ironshore. The acquisition includes the addition of Jornay PM to Collegium's product lineup, along with the associated commercial expenditures.
Despite the expected increase in EBITDA, which Collegium describes as "highly" accretive for the year 2025, Piper Sandler remains cautious. The firm's caution is due to the impending loss of exclusivity for several of Collegium's key products:
Nucynta ER in December 2025, Nucynta IR and Belbuca both in January 2027. Furthermore, the Orange Book-listed patents for Jornay PM are set to expire in 2032.
InvestingPro Insights
As Collegium Pharmaceutical (NASDAQ:COLL) navigates through strategic acquisitions and patent expirations, real-time metrics from InvestingPro provide a deeper insight into the company's financial health. With a market capitalization of $1.15 billion and a solid P/E ratio of 11.49, the company showcases a balance between its market value and earnings power. The gross profit margin stands strong at 86.08%, indicating efficient control over costs relative to revenue in the last twelve months as of Q1 2024.
InvestingPro Tips highlight that Collegium's management has been actively buying back shares, a sign of confidence in the company's value. Additionally, the company's net income is expected to grow this year, which could be an important factor for investors considering the future profitability of the company. There are 9 additional tips listed on InvestingPro that can provide further insights into Collegium's performance and outlook.
With analysts revising their earnings upwards for the upcoming period and a strong return over the last five years, Collegium appears poised for growth. The company's strategic moves, such as the acquisition of Ironshore, align with these positive indicators. While Piper Sandler maintains a Neutral rating, the InvestingPro data suggests that Collegium's financials are robust, which may warrant investor consideration.
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