Collegium Announces $35 Million Accelerated Share Repurchase Program
May 13 2024 - 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 $35 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 $115 million remaining under the program.
“Our financial and strategic execution bolster the strength of
our business today and in the future. Collegium’s strong start to
2024 was supported by robust cash generation, momentum in Belbuca®
prescriptions, improved Xtampza® ER gross-to-net and the Nucynta
Franchise authorized generic agreement, all of which put us on
track to meet our 2024 financial guidance and improve our outlook
in 2025 and beyond,” said Colleen Tupper, Chief Financial Officer
of Collegium. “This $35 million ASR program reinforces our belief
that the value of Collegium is underappreciated. We remain
committed to leveraging our $150 million share repurchase program,
which is authorized through the second quarter of 2025, to create
value for our shareholders through our capital deployment
strategy.”
Under terms of the agreement, Collegium will pay $35 million to
Jefferies LLC and will receive an initial delivery of 888,889
shares, based on the $31.50 closing stock price of Collegium’s
common stock on May 10, 2024, 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 third quarter of
2024. As of March 31, 2024, Collegium had approximately 32.7
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 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, 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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