Gino Santini At Collegium Pharmaceutical Capitalizes: Options Exercised, Resulting In $362K

A significant insider transaction involving the exercise of company stock options was reported on August 19, by Gino Santini, Board Member at Collegium Pharmaceutical COLL, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Santini, Board Member at Collegium Pharmaceutical, a company in the Health Care sector, just exercised stock options worth 15,000 shares of COLL stock with an exercise price of $13.45.

Collegium Pharmaceutical shares are trading, exhibiting down of 0.0% and priced at $37.63 during Wednesday's morning. This values Santini's 15,000 shares at $362,700.

Delving into Collegium Pharmaceutical's Background

Collegium Pharmaceutical Inc is a specialty pharmaceutical company. The company is engaged in developing and planning to commercialize abuse-deterrent products that incorporate its patented DETERx platform technology for the treatment of chronic pain and other diseases. The DETERx platform technology is designed to maintain the extended-release and safety profiles of abused drugs in the face of various methods including chewing, crushing, and dissolving. Its product portfolio includes Jornay, Xtampza ER, which is an abuse-deterrent, extended-release, oral formulation of oxycodone; and Nucynta Products, which are extended-release and immediate-release formulations of tapentadol; Belbuca, and Symproic.

Financial Insights: Collegium Pharmaceutical

Revenue Growth: Collegium Pharmaceutical displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 29.41%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 57.65%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Collegium Pharmaceutical's EPS is below the industry average. The company faced challenges with a current EPS of 0.38. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.57, caution is advised due to increased financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 35.5 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.12, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 5.17, Collegium Pharmaceutical presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Illuminating the Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Collegium Pharmaceutical's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.