Collegium Pharmaceutical: Stock Deserves A 'Buy' Call On Undervaluation Of ADHD Drug

Summary

  • Collegium is shifting focus from opioids to ADHD with Jornay PM, which is showing strong prescription growth and could become a blockbuster product.
  • The company is undervalued relative to peers, with potential for significant upside if Jornay PM delivers on revenue expectations and offsets future patent expirations.
  • Management is strategically reducing debt and maintaining profitability, positioning Collegium for growth and potential shareholder returns through buybacks.
  • I rate Collegium a Buy, as the market underappreciates Jornay’s potential, and the company could double in value within two years if execution continues.

bull market buying - green stock data trading screen

bunhill

Investment Overview

Collegium Pharmaceuticals (NASDAQ:COLL) stock trades at >$30 per share, and its market cap is just shy of $1bn (at the time of writing). According to its Q1 2025 quarterly report/10-Q submission:

We have developed, licensed, and acquired a

If you are interested in keeping up to date with stocks making moves within the biotech, pharma and healthcare industries, and understanding the key trends and catalysts driving valuations ahead of the market, why not subscribe to my weekly newsletter via my Investing Group, Haggerston BioHealth

This article was written by

13.46K Followers

Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SUPN either through stock ownership, options, or other derivatives. 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.

Recommended For You

About COLL Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on COLL

Related Stocks

SymbolLast Price% Chg
COLL
--