Collegium Pharmaceutical Announces $50 Million Stock Buyback Program

Collegium (COLL) takes a strategic step towards enhancing shareholder confidence and capital deployment with a stock buyback program


Collegium Pharmaceutical, Inc. (NYSE: COLL), a leading specialty pharmaceutical company dedicated to enhancing the lives of individuals facing severe medical conditions, has made a significant announcement today. The company revealed that it has entered into an Accelerated Share Repurchase (ASR) agreement with Jefferies LLC to repurchase $50 million of Collegium's common stock. This move is part of the $100 million share repurchase program authorized by Collegium's Board of Directors earlier in January 2023. With this latest ASR agreement, Collegium will still have $50 million left under its repurchase program.

Confidence in Collegium's Core Business and Strategy

According to Joe Ciaffoni, President and Chief Executive Officer of Collegium, the accelerated share repurchase program is a testament to the company's unwavering confidence in its core business, financial strength, and strategic direction. By engaging in this buyback initiative, Collegium aims to optimize the value of its unique pain portfolio while adhering to a disciplined capital deployment strategy. The company is committed to creating value for its shareholders through focused business development, swift debt reduction, and opportunistic share repurchases.

Terms of the Agreement

Under the terms of the ASR agreement, Collegium will pay $50 million to Jefferies LLC and, in return, receive an initial delivery of approximately 1.7 million shares. This number is based on the closing stock price of Collegium's common stock on August 4, 2023, which was $23.49 per share. The initial delivery represents roughly 80% of the total shares the company plans to repurchase through this ASR agreement. However, the final number of shares repurchased will be determined based on the volume-weighted average prices of Collegium's common stock during the ASR's term and is subject to adjustments related to the agreement's terms and conditions. The completion of the ASR is expected to take place in the fourth quarter of 2023.

Shareholder Value and Future Prospects

With approximately 34.7 million shares outstanding as of June 30, 2023, Collegium's ASR program reflects its commitment to enhancing shareholder value and building a prosperous future. By repurchasing shares, the company can demonstrate its confidence in its own worth and strengthen its position in the market. As the ASR program progresses, investors and stakeholders will closely monitor its impact on Collegium's stock performance and overall market perception.

Collegium Pharmaceutical's decision to embark on an Accelerated Share Repurchase (ASR) program worth $50 million underscores the company's belief in its core business and strategic approach. The ASR, part of a $100 million repurchase program, is expected to create value for shareholders and demonstrate Collegium's disciplined capital deployment strategy. As the ASR concludes in the fourth quarter of 2023, the market will observe its impact on Collegium's market position and potential for future growth.

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