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COLLCollegium Pharmaceutical, Inc.Sell6.5·$37.47+1.19%
SellModerate Confidence
Investment thesis

A high-quality franchise—with free cash flow running at over four times reported net income, a near-perfect financial strength score, and a forward multiple well below the sector—is priced at a significant discount to analyst estimates, with 38% upside to the consensus target and a 5.5-to-1 favorable risk/reward; however, elevated leverage, a mixed two-beat/two-miss earnings cadence, and 21% short interest create near-term headwinds that keep the setup from being actionable without a cleaner technical entry.

Thesis pillars

  • Exceptional Cash Conversion QualityStable
  • Deep Value Wide Analyst GapStable
  • High Short Interest Squeeze SetupStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Collegium Pharmaceutical, Inc. (COLL) Stock Analysis

Recovery setup · Inst Constrain edge

SellDEATH CROSS (EXEMPT)VALUE-TRAP 1/5Moderate Confidence

Healthcare · Drug Manufacturers - Specialty & Generic

Sell if holding. Multiple concerning factors at $37.47: Concentration risk — Supplier: API sole or limited-source suppliers; Concentration risk — Supplier: Patheon (contract manufacturer for Xtampza ER and Nucynta ER).

Collegium Pharmaceutical is a commercial-stage biopharmaceutical company selling FDA-approved treatments for ADHD and moderate-to-severe pain in the United States, including Jornay PM, Belbuca, Xtampza ER, the Nucynta Products, and Symproic. In May 2026 the company closed its... Read more

$37.47+26.2% A.UpsideScore 6.5/10#5 of 45 Drug Manufacturers - Specialty & Generic
QualityF-score8 / 9FCF yield27.69%
Stop $34.85Target $47.27(analyst − 13%)A.R:R 1.7:1
Analyst target$54.33+45.0%6 analysts
$47.27our TP
$37.47price
$54.33mean
$60

Sell if holding. Multiple concerning factors at $37.47: Concentration risk — Supplier: API sole or limited-source suppliers; Concentration risk — Supplier: Patheon (contract manufacturer for Xtampza ER and Nucynta ER). Chart setup: Death cross but MACD improving, RSI 65. Score 6.5/10, moderate confidence.

Passes 8/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, positive momentum, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.

10-K grounded · weekly refresh

About Collegium Pharmaceutical, Inc.

About Collegium Pharmaceutical, Inc.

Collegium Pharmaceutical markets six FDA-approved products in the United States: the ADHD medicine Jornay PM (acquired via Ironshore in September 2024), the pain treatments Belbuca, Xtampza ER and the Nucynta Products (ER and IR), and Symproic for opioid-induced constipation. In May 2026 the company closed a roughly $650 million acquisition of AZSTARYS, another ADHD stimulant, funded with $350 million of cash on hand and a $300 million delayed-draw term loan under its December 2025 syndicated credit facility.

Collegium sells through two dedicated field forces of roughly 105 pain and 200 ADHD sales representatives, targeting the prescribers of about 67% of branded extended-release opioid prescriptions and 60% of pediatric and adolescent extended-release stimulant prescriptions in the U.S., then distributing primarily through wholesalers that supply retail pharmacies, managed care organizations and government agencies. Four of five controlled-substance products, Xtampza ER, the Nucynta Products, and Jornay PM, carry DEA Schedule II status, while Belbuca is Schedule III; Symproic is not a controlled substance. Manufacturing is fully outsourced: Patheon, a Thermo Fisher Scientific subsidiary, produces both Xtampza ER and Nucynta ER, while Coating Place, Halo Pharmaceutical, UPM Pharmaceuticals and LTS Therapy Systems each manufacture a different product in the portfolio. Collegium licenses Nucynta commercialization rights from Grünenthal and Symproic rights from Shionogi, and carries $580.0 million outstanding under a 2025 Term Loan plus $241.5 million in 2029 convertible notes.

Show full overview

Collegium's own risk factors flag concentrated dependencies on both raw material and finished-goods manufacturing: the company states it currently procures the active pharmaceutical ingredient for its products from a sole supplier or limited number of suppliers, and that production problems at any of these suppliers could have a material adverse effect. On the finished-drug side, Patheon alone manufactures both Xtampza ER and Nucynta ER, two of Collegium's largest pain products, so a disruption at that single contract manufacturer would touch a meaningfully larger share of revenue than a single-product manufacturing relationship would.

See also: Healthcare · Drug Manufacturers - Specialty & Generic

From Collegium Pharmaceutical, Inc.'s most recent 10-K filing, extracted July 6, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202631d to earnings· next earnings call

Thesis

Rewards
High-quality business
Attractive valuation
Strong growth profile
Risks
Concentration risk — Supplier: API sole or limited-source suppliers
Concentration risk — Supplier: Patheon (contract manufacturer for Xtampza ER and Nucynta ER)
Leverage penalty (D/E 3.0): -1.5

Key Metrics

P/E (TTM)18.0
P/E (Fwd)4.9
Mkt Cap$1.2B
EV/EBITDA4.0
Profit Mgn9.4%
ROE27.4%
Rev Growth8.9%
Beta0.73
DividendNone
Rating analysts12

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.83neutral
IV56%elevated

Concentration Risks(10-K Item 1A)

  • HIGHSupplierAPI sole or limited-source suppliers
    10-K Item 1: 'We currently procure the API used in our products from a sole supplier or limited number of suppliers.'
  • HIGHSupplierPatheon (contract manufacturer for Xtampza ER and Nucynta ER)
    10-K Item 1: 'To date, we have produced Xtampza ER through a contract manufacturing organization, Patheon, a subsidiary of Thermo Fisher Scientific, pursuant to a third-party supply agreement.'
  • HIGHGeographicUnited States
    10-K Item 1: 'We commercialize our products, consisting of Jornay PM, Belbuca, Xtampza ER, Nucynta ER and Nucynta IR (collectively the “Nucynta Products”), and Symproic, in the United States.'
  • MEDIUMCustomerwholesale pharmaceutical distributors
    10-K Item 1A: 'We depend on wholesale pharmaceutical distributors for retail distribution of our products; if we lose any of our significant wholesale pharmaceutical distributors or their distribution network is disrupted, our financial condition and results of operations may be adversely affected.'

Material Events(8-K, last 90d)

  • 2026-05-12Item 2.01MEDIUM
    Collegium completed its approximately $650 million acquisition of AZSTARYS, an ADHD stimulant, from Corium/GPC entities, funded with $350 million cash and a $300 million delayed-draw term loan; up to $135 million in additional milestone payments may follow.
    SEC filing →
  • 2026-04-07Item 5.02LOW
    Board approved Michael Donovan (former EY biotechnology audit partner) as director nominee for the 2026 annual meeting; director John Fallon announced he will retire and not stand for re-election. Routine board transition.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
1.2
52w Position
4.8
GatesDeath cross exempted (quality + momentum high enough)Executive change: officer departure/appointmentMomentum 7.1>=5.5A.R:R 1.7 ≥ 1.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 31d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
65 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $31.69Resistance $38.26

Price Targets

$35
$47
A.Upside+26.2%
A.R:R1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Analyst Consensus

Analysts12
Consensus4.1/5
Avg Target$54

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-06 (31d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is COLL stock a buy right now?

Sell if holding. Multiple concerning factors at $37.47: Concentration risk — Supplier: API sole or limited-source suppliers; Concentration risk — Supplier: Patheon (contract manufacturer for Xtampza ER and Nucynta ER). Chart setup: Death cross but MACD improving, RSI 65. Prior stop was $34.85. Score 6.5/10, moderate confidence.

What is the COLL stock price target?

Take-profit target: $47.27 (+26.2% upside). Prior stop was $34.85. Stop-loss: $34.85.

What are the risks of investing in COLL?

Concentration risk — Supplier: API sole or limited-source suppliers; Concentration risk — Supplier: Patheon (contract manufacturer for Xtampza ER and Nucynta ER); Leverage penalty (D/E 3.0): -1.5.

Is COLL overvalued or undervalued?

Collegium Pharmaceutical, Inc. trades at a P/E of 18.0 (forward 4.9). TrendMatrix value score: 9.2/10. Verdict: Sell.

What do analysts say about COLL?

12 analysts cover COLL with a consensus score of 4.1/5. Average price target: $54.

What does Collegium Pharmaceutical, Inc. do?Collegium Pharmaceutical is a commercial-stage biopharmaceutical company selling FDA-approved treatments for ADHD and...

Collegium Pharmaceutical is a commercial-stage biopharmaceutical company selling FDA-approved treatments for ADHD and moderate-to-severe pain in the United States, including Jornay PM, Belbuca, Xtampza ER, the Nucynta Products, and Symproic. In May 2026 the company closed its approximately $650 million acquisition of AZSTARYS, an ADHD stimulant, funded partly through a $300 million delayed-draw term loan; the company depends on a sole or limited number of suppliers for the active pharmaceutical ingredients in its products and sells primarily through wholesale pharmaceutical distributors.

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