Cantor Fitzgerald Out Bullish On Collegium As 'Leading Company' In Pain Management

The Street’s all in on Collegium Pharmaceutical Inc COLL. The stock secured another bull Tuesday to bring its Buy-Sell ratings ratio to 6-0.

The Rating

Cantor Fitzgerald analyst Brandon Folkes initiated coverage of Collegium with an Overweight rating and $40 price target.

The Thesis

The analyst anticipates Xtampza, Collegium’s lead growth driver, could replace Purdue’s OxyContin as the preferred oxycodone brand in emergency rooms, particularly given its superior deterrent properties.

Xtampza ER scripts grew 72 percent in the first quarter, yet represent just 12 percent of oxycodone prescriptions. Cantor Fitzgerald sees potential for the drug to post peak sales beyond $300 million.

At the same time, Collegium’s acquisition of rights to the painkiller Nucynta is seen to expand the firm’s earnings before interest, tax, depreciation and amortization by about $25 million. Collegium could even increase Nucynta’s value by applying its DETERx technology, Folkes said. 

“Collegium is proving itself to be the leading company in an evolving pain treatment landscape, and we expect the company is only in the early stages of building a much larger portfolio of differentiated pain treatments." 

Price Action

Collegium shares were up 7.13 percent at $26.74 at the close Tuesday. 

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