Collegium Pharmaceutical shares rise on strong Q2 earnings

Collegium Pharmaceutical Inc. shares climbed more than 5% in premarket trading on Tuesday after the company reported second-quarter earnings that exceeded analyst expectations and raised its full-year revenue guidance.

The specialty pharmaceutical firm posted adjusted earnings of $1.25 per share, beating the consensus estimate of $1.10 per share, according to Refinitiv data. Revenue totaled $245.3 million, up 8% year-over-year and surpassing the $238 million forecast.

Collegium also increased its full-year revenue guidance to a range of $980 million to $1.02 billion, from its prior outlook of $950 million to $990 million. The company attributed the upward revision to strong demand for its pain management portfolio, including the opioid-use disorder treatment Xtampza ER.

Analysts at Leerink Partners noted that the earnings beat and guidance raise reflect "sustained commercial execution" in Collegium's core markets. The stock, which had underperformed peers in recent months, has now recouped some of its losses from earlier in the year.

Collegium Pharmaceutical did not provide specific details on the factors driving the revenue growth beyond its pain management portfolio, but management highlighted continued operational efficiency improvements as a contributing factor.

Shares of Collegium Pharmaceutical were trading at $28.45 in premarket activity, up from Monday's close of $27.10. The stock has gained approximately 12% over the past month, outpacing the S&P 500 pharmaceuticals index, which rose 3% over the same period.

The company is scheduled to hold a conference call with investors on Wednesday to discuss the quarterly results in further detail.

Collegium Pharmaceutical's stock performance follows a broader trend of volatility in the biopharmaceutical sector, where shares have been sensitive to earnings reports and regulatory developments.