Here's Why Collegium Pharmaceutical Rose as Much as 23.5% Today
Shares of specialty pharmaceutical developer Collegium Pharmaceutical (NASDAQ: COLL) rose over 23% today after the company announced that it will acquire the pain drug Nucynta from Depomed (NASDAQ: DEPO). The move will expand its pain management portfolio and its top line -- significantly.
Investors are also cheering what it could mean for Depomed, which has struggled to justify the $1.05 billion acquisition of Nucynta from Janssen in early 2015. Continually falling sales for the franchise have weighed on the stock this year, so a relatively favorable divestment to Collegium Pharmaceutical could provide more certainty for the company going forward.
As of 11:48 a.m. EST, Collegium Pharmaceutical stock had settled to a 11.9% gain, while Depomed's had settled to a gain of 9.8%
Source: Fool.com
