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Collegium Pharmaceutical: No Longer Speculative After A Year Of Profitability


  • Despite the COVID -19 pandemic, Collegium Pharmaceutical had an impressive 2020. The company recorded a full year of profitability and commercial progress.
  • Collegium is off to a good start in 2021, with the company reporting Xtampza ER's quarter-to-date total script volume being up 13% over Q4.
  • Collegium was able to grow in the middle of the pandemic without a massive increase in OpEx. As a result, I am switching COLL out of my speculative portfolio.

After a year of profits, Collegium Pharmaceutical (NASDAQ:COLL) has been authoritatively transferred out of my speculative investment portfolio and has now settled in my growth portfolio. Management has been able to maximize the value of the company's pain portfolio and was able to hit its operational and financial goals. Collegium was able to record its first full year of profitability in the face of COVID-19. Now, I believe the company is set-up for long-term growth and will become one of the leading pain management brands on the market. Now, I will be switching COLL out of my speculative portfolio and will be moving it into my growth portfolio. As a result, I will be looking to add to my COLL position at regular intervals rather than accumulating a position with tactical precision.

I intend to go over the company's recent Q4/2020 earnings report and provide my opinion on its performance. In addition, I will discuss why I am confident in moving COLL out of my speculative portfolio and switching to a growth strategy for managing my position.

A Profitable Year

There is no doubt that 2020 was at the very minimum a challenging year for healthcare companies. Some companies were knee-capped by the pandemic, while others were able to step up and address the challenges the world was facing. For Collegium, it was able to turn 2020 into a transformative year by acquiring the rest of the Nucynta franchise and improving Xtampza ER's revenue growth.

Full-year total revenue was $310M, which is a 4.5% increase from 2019. Xtampza ER was able to grow its net revenue by 22% to hit $128M and has claimed a 25.1% share of the ER oxycodone market. The list of Xtampza ER prescribers continues to grow, with approximately 14,800 unique prescribers, which is an increase of 11% over Q4 of 2019. Nucynta continues to be under pressure

This article was written by

Biologics profile picture

Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I am/we are long COLL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

They just solved the pipeline problem (by doing a very expensive buy)...
Biologics profile picture
Still bullish here
08 Mar. 2021
Does it not concern you that this is opioid related?
Biologics profile picture
@LR83 nope... their platform creates abuse-deterrent opioids. The world will still need opioids, so COLL's products could be the best option.
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