Collegium Pharmaceuticals Acquires Ironshore Therapeutics, Boosting ADHD Market Presence

By Tamara Parker • Wednesday, September 04 15:21 • Permanent Link

Collegium Pharmaceuticals, Inc. has completed the acquisition of Ironshore Therapeutics Inc., marking a significant step in building a leading, diversified specialty pharmaceutical company. This acquisition has added Jornay PM® to Collegium’s portfolio, establishing a commercial presence in the neurology field, specifically the large and growing attention deficit hyperactivity disorder (ADHD) market.

Jornay PM®, a central nervous system stimulant for the treatment of ADHD, is expected to be a leading growth driver for Collegium. Notably, in the first half of 2024, Jornay PM® prescriptions grew by 32% year-over-year, and in 2023, the product generated around 490,000 prescriptions, marking a 58% increase compared to 2022.

The acquisition is expected to have an immediate positive impact on Collegium's financials. The company updated its 2024 financial guidance to reflect the anticipated impact of the acquisition, with product revenues, net expected to be in the range of $620.0 million to $635.0 million, representing a significant increase from the previous guidance of $580.0 to $595.0 million.

Moreover, the acquisition has further strengthened Collegium’s financial position, with an increased revenue base, expected immediate accretion to adjusted EBITDA, and accelerated cash flow generation. The updated adjusted EBITDA guidance for 2024 is in the range of $395.0 to $405.0 million, up from the previous range of $380.0 to $395.0 million.

Under the terms of the agreement, Collegium acquired all the outstanding shares of Ironshore for $525 million in cash, funded by $200 million of Collegium’s existing cash on hand and $325 million of a term loan. Additionally, Collegium will pay Ironshore shareholders $25 million in additional consideration if Jornay PM® net revenue exceeds a defined threshold in 2025.

It’s important to note that Jornay PM® has a high potential for abuse and misuse, which can lead to the development of a substance use disorder, including addiction. Therefore, before prescribing Jornay PM®, healthcare professionals are advised to assess each patient’s risk for abuse, misuse, and addiction.

As a result of these announcements, the company's shares have moved 2.6% on the market, and are now trading at a price of $38.39. For more information, read the company's full 8-K submission here.

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