Collegium Pharmaceutical Reports 29% Revenue Growth in Q2 2025

Collegium Pharmaceutical, Inc. reported significant financial results for the second quarter of 2025, with product revenues reaching $188 million, a 29% increase from $145.3 million in the same period last year. For the first half of 2025, revenues totaled $365.8 million, compared to $290.2 million in the first half of 2024. The growth was primarily driven by the introduction of Jornay PM, which contributed $32.6 million in the quarter, following its acquisition from Ironshore Therapeutics in September 2024. Other contributors included Xtampza ER and the Nucynta products, which saw revenue increases of $8 million and $2 million, respectively.

The company's gross profit for the second quarter was $108.4 million, up from $90.8 million a year earlier, while net income fell to $12 million from $19.6 million in the prior year. The decline in net income was attributed to increased operating expenses, which rose to $73.3 million from $43.3 million, largely due to higher sales and marketing costs associated with the commercialization of Jornay PM and increased salaries from additional headcount following the Ironshore acquisition. Interest expenses also increased, totaling $20.5 million compared to $15.6 million in the previous year, reflecting the costs associated with the deferred royalty obligation from the acquisition.

Collegium's operational metrics showed a notable increase in customer engagement, with the company expanding its product portfolio to include Jornay PM, which is aimed at treating ADHD. The acquisition of Ironshore has allowed Collegium to diversify its offerings beyond pain management, establishing a foothold in the neuropsychiatry market. The company also reported a total employee headcount increase due to the integration of Ironshore's workforce, which is expected to enhance its sales capabilities.

Looking ahead, Collegium has authorized a new share repurchase program of up to $150 million through December 2026, indicating confidence in its financial position despite the recent decline in net income. The company anticipates that its cash reserves, along with expected operational cash flows, will support its ongoing business needs, including debt service and capital expenditures. However, management acknowledged the inherent risks associated with the commercialization of new pharmaceutical products and the potential for unforeseen expenses that could impact future performance.