Collegium Pharmaceutical Inc (COLL)

[floblu14]

Collegium Pharmaceutical (NASDAQ:COLL), is a small-cap drug maker focused on the treatment of chronic pain. The company’s products are designed to address the problems of abuse and addiction in the opioid market. With nearly 20 million Americans suffering from chronic pain issues, this Massachusetts-based company will not lack for a patient base.

The product line at Collegium includes two pain-relief drugs: Xtampza, a 10-to-12-hour, controlled release version of oxycodone, and Nucynta, an opioid of similar effect to oxycodone but with fewer reported side effects. Xtampza, as a controlled-release formulation is less potent than morphine, and potentially less prone to abuse.

Collegium showed $79.2 million in revenue for 3Q20, the last quarter reported, with a net earnings of 32 cents per share. Both of these figures were up sequentially – earnings by 39%. Year-over-year, the gains were more impressive: EPS was up from an 18-cent loss in the year-ago quarter, while revenue was up 8.6% in the same period.

Covering Collegium from H.C. Wainwright, analyst Oren Livnat sees the company taking a solid position in its niche.

“[We’re] confident in strong early-2021 volume acceleration. Then, we’re hopeful that Collegium can drive moderated but continued volume growth through the year as it works to gain market share in the 22M commercial lives where Xtampza now has parity positioning vs. OxyContin… we see gross margin upside bolstered by improved Nucynta profitability… We continue to see Collegium stock as extremely cheap at just 5.3x our 2021 EBITDA,” Livnat wrote.

It’s not surprising, then, why Livnat gives COLL an Outperform (i.e. Buy) rating. His $33 price target supports his bullish stance, and suggests a 50% one-year upside

https://www.investing.com/analysis/3-top-biotech-stocks-that-score-a-perfect-10-200555929