STOUGHTON, Mass. - Collegium Pharmaceutical , Inc. (NASDAQ:COLL), a specialty pharmaceutical company, announced today it has entered into an agreement with Hikma Pharmaceuticals (OTC:HKMPY) USA Inc., granting Hikma the exclusive rights to sell authorized generic versions of the Nucynta pain medication franchise in the United States.
The agreement outlines that Collegium will continue to manufacture and supply Hikma with the authorized generic products on an exclusive basis for the duration of the agreement. Hikma is set to commence sales of the generic Nucynta and Nucynta ER (extended-release) 30 days before the expected loss of exclusivity of each product or possibly earlier under certain conditions.
Collegium will receive a share of the net profits from the sales of these authorized generic products, which will decrease depending on the number of generic competitors entering the market.
Joe Ciaffoni, President and CEO of Collegium, expressed confidence in the partnership, emphasizing the importance of maintaining high-quality standards and broad access for patients in need of these medications. He remarked that the agreement with Hikma reinforces the value of the Nucynta Franchise into 2025 and beyond.
The financial terms of the agreement were not disclosed, but the partnership is anticipated to contribute to Collegium's revenue stream through profit sharing.
This strategic move comes as Collegium Pharmaceutical aims to secure its market position ahead of the potential introduction of generic competitors to its branded products. The collaboration with Hikma Pharmaceuticals, known for its expertise in the generic drug market, is expected to help Collegium navigate the challenges of patent expiration.
The information for this article is based on a press release statement from Collegium Pharmaceutical, Inc. It's important to note that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. These statements are subject to change and should not be considered as guarantees of future performance.
InvestingPro Insights
As Collegium Pharmaceutical, Inc. (NASDAQ:COLL) prepares for the upcoming exclusivity loss of its Nucynta pain medication franchise, the company's strategic partnership with Hikma Pharmaceuticals USA Inc. is a significant step. With a focus on maintaining a competitive edge, Collegium's management has taken proactive measures, as reflected in the company's financial and operational metrics.
InvestingPro data highlights a robust financial profile for Collegium, with a Market Cap of $1.19 billion USD and a Revenue Growth of 22.17% over the last twelve months as of Q4 2023. This growth is a testament to the company’s ability to expand its revenue streams even as it faces the challenges of patent expiration.
The company's P/E Ratio stands at 13.36 on an adjusted basis for the same period, suggesting a reasonable valuation in comparison to earnings. Moreover, Collegium's stock has experienced a significant 6 Month Price Total Return of 72.12%, indicating strong market confidence and a positive investor outlook.
InvestingPro Tips for Collegium include the management's aggressive share buybacks and a high shareholder yield, which are actions that often reflect a company's confidence in its own financial health and future prospects. Moreover, the company is expected to remain profitable, with analysts predicting net income growth this year.
For investors seeking more in-depth analysis, there are 7 additional InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for Collegium at https://www.investing.com/pro/COLL. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These insights are particularly relevant as Collegium navigates the complexities of the pharmaceutical market, balancing the introduction of generic drugs with the growth of its proprietary products. The partnership with Hikma and the strategic management decisions underscored by the InvestingPro data and tips paint a picture of a company actively managing its future in a dynamic industry.
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