Here's Why Collegium Pharmaceutical Rose as Much as 20.7% Today
Shares of Collegium Pharmaceutical (NASDAQ: COLL) jumped more than 20% today after the company announced an agreement to purchase the U.S. rights to the Nucynta franchise from Assertio Therapeutics for $375 million. The opioid franchise includes Nucynta extended-release and immediate-release products.
The transaction essentially buys out the royalty stream Collegium Pharmaceutical currently pays to Assertio Therapeutics on sales of Nucynta products. Collegium Pharmaceutical said the deal will improve annual EBITDA and operating cash flows by more than $100 million. The transaction will not improve annual revenue, however, due to the structure of the royalty agreement.
As of 12:19 p.m. EST, the pharma stock had settled to a 19.2% gain.
Source Fool.com
