Collegium Announces $25 Million Accelerated Share Repurchase Program
November 09 2023 - 8:00AM
Collegium Pharmaceutical, Inc. (Nasdaq: COLL), a leading,
diversified specialty pharmaceutical 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 $100 million share repurchase program authorized by its
Board of Directors in January 2023. Upon completion of this ASR,
Collegium will have $25 million remaining under the program.
“Our record financial performance in 2023 year-to-date puts
Collegium on track to deliver a banner year. Our financial
strength, underscored by robust cash generation, enables us to
execute on our capital deployment strategy,” said Joe Ciaffoni,
President and Chief Executive Officer of Collegium. “We are
committed to opportunistically returning value to our shareholders
through our share repurchase program. Since 2021, we have returned
$112 million of capital to our shareholders through share
repurchases. This additional $25 million ASR program is a
productive use of our capital with the potential to generate high
returns for our shareholders.”
Under terms of the agreement, Collegium will pay $25 million to
Jefferies LLC and will receive an initial delivery of approximately
865,426 shares, based on the $23.11 closing stock price of
Collegium’s common stock on November 8, 2023, 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 in the fourth quarter of 2023. As of September 30, 2023,
Collegium had approximately 33.1 million shares outstanding.
About Collegium Pharmaceutical, Inc.
Collegium is a leading, diversified specialty pharmaceutical
company committed to improving the lives of people living with
serious medical conditions. 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 about the
Company's long-term opportunity and strategies, the share
repurchase program, the transactions under the ASR and the expected
completion date of the ASR, 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: developments or changes in the securities markets and
fluctuations in the trading volume and market price of the
Company's common stock, risks related to the ability to realize the
anticipated benefits of our acquisitions at all or within the
expected time period; unknown liabilities; risks related to future
opportunities and plans for our products, including uncertainty of
the expected financial performance of such products; the impact of
the COVID-19 pandemic on our ability to conduct our business, reach
our customers, and supply the market with our 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 obtain and
maintain regulatory approval of our products and any product
candidates, and any related restrictions, limitations, and/or
warnings in the label of an approved product; the size of the
markets for our products and product candidates, 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 and product candidates; 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, or DEA,
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 Contact:Christopher James, M.D.
Vice
President, Investor Relationsir@collegiumpharma.com
Media Contact:Marissa SamuelsVice President,
Corporate Communicationscommunications@collegiumpharma.com
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