$COLL (+0%) is up 14% in the last week after announcing its 2025 financial guidance.
Back on November 7, Collegium Pharmaceutical appointed Vikram Karnani as Chief Executive Officer, a proven industry leader with extensive experience growing commercial biopharmaceutical businesses.
He promised to work on four points:
- Grow revenue;
- Increase profitability
- Generate strong cash flow
- Strategically deploy capital (pay down debt, shares repurchase and acquisition)
And judging by $COLL (+0%) 2025 financial guidance, he is already executing.
“In 2024, we executed on our priorities of maximizing the pain portfolio and strategically deploying capital, delivering record financial results and closing the acquisition of Ironshore,” said Vikram Karnani, President and Chief Executive Officer of Collegium. “Looking ahead to 2025 and beyond, Collegium will embark upon a new phase of growth. Jornay PM, as a highly differentiated product to treat ADHD, is positioned to be our lead growth driver, and our focus will be on commercial expansion. We are committed to maximizing and delivering strong performance across our entire portfolio as we build a leading, diversified biopharmaceutical company serving people living with serious medical conditions.”
“Our 2025 financial guidance reflects expected significant top- and bottom-line growth driven by the addition of Jornay PM and continued performance from our pain portfolio. We expect Jornay PM net revenue in 2025 to be in excess of $135 million,” said Colleen Tupper, Chief Financial Officer of Collegium. “We plan to make targeted investments in Jornay PM throughout 2025, which we expect will accelerate growth in the near-term, while creating significant momentum in 2026 and beyond. In addition, we will continue to strategically deploy capital in a disciplined manner to create long-term value for our shareholders.”
Product revenues are projected between $735 and $750 million, with a focus on Jornay PM expected to exceed $135 million in net revenue. The company completed the integration of Ironshore Therapeutics and plans targeted investments in Jornay PM to drive growth, aiming for significant top- and bottom-line growth and long-term shareholder value.
For 2024 product revenues were estimated to be between $620 and $630 million. The 2025 numbers represent about a 20% increase.
Adjusted EBITDA (excluding stock-based compensation) is expected in the range of $435 million to $450 million. Up from $395 to $405 million in 2024.
Adjusted operating expenses (excluding stock-based compensation) are expected in the range of $220 million to $230 million. Up from $150 to $155 million in 2024.
As mentioned before in other posts, $COLL (+0%) is a value stock and at the same time a Magic Formula stock with a very bright future.
Despite the very recent growth, the stock is still attractively priced and it's not too late to get in.
