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Updated: 29-Jul-24 06:12 ET

COLL: Collegium Pharmaceutical acquires Ironshore Therapeutics; reaffirms FY24 outlook; sees Q2 sales above consensus (36.08)

Collegium Pharmaceutical and Ironshore Therapeutics Inc. announced a definitive agreement pursuant to which Collegium will acquire Ironshore for $525 million in cash with the potential for an additional $25 million commercial milestone payment.
- Ironshore is a privately held, pharmaceutical company that markets and distributes Jornay PM (methylphenidate HCl), a central nervous system (CNS) stimulant prescription medicine for the treatment of attention deficit hyperactivity disorder (ADHD) in people six years of age and older and the only stimulant medication that is dosed in the evening. The acquisition of Ironshore will represent a significant milestone in advancing Collegium's mission of building a leading, diversified specialty pharmaceutical company by expanding the Company's business beyond pain management and establishing a commercial presence in a new and growing market.
  - At year-end 2024, Collegium expects net leverage to be less than two times based on estimated 2024 pro forma combined adjusted EBITDA.
  - Collegium expects this transaction to be immediately accretive to adjusted EBITDA, excluding transaction costs.
Outlook
- Co issues upside guidance for Q2 (Jun), sees Q2 (Jun) revs of $145 mln vs. $142.62 mln FactSet Consensus.
- Co reaffirms guidance for FY24 (Dec), sees FY24 (Dec) revs of $580.0-595.0 mln vs. $583.13 mln FactSet Consensus.
  - Co reaffirms FY24 Adj EBITDA of $380.0-395.0 mln