Collegium Pharmaceutical beats Q1 estimates on ADHD drug strength and Azstarys acquisition
Adjusted earnings per share top expectations, while Renaissance Technologies flags the stock as a top micro and small cap pick ahead of its second-half revenue targets.
Collegium Pharmaceutical Inc reported first-quarter 2026 financial results on May 7, 2026, delivering a performance that surpassed Wall Street expectations. The Massachusetts-based specialty drugmaker posted revenue of $193.5 million, a 9% increase year-on-year that exceeded the consensus estimate of $187.4 million. Adjusted earnings per share reached $1.76, rising from $1.49 in the prior year and beating the anticipated figure of $1.63.
The company attributed its strong quarterly showing to robust growth within its attention deficit hyperactivity disorder (ADHD) franchise. Sales of the ADHD medication Jornay PM jumped 36% year-on-year, driven by an expansion in the prescriber base and increased prescription volumes. This growth was complemented by continued strength in the company’s pain management portfolio, which remains a core component of its commercial offerings.
In a strategic move to broaden its therapeutic reach, Collegium announced the acquisition of Azstarys during the quarter. The company expects the new asset to contribute more than $50 million to revenue in the second half of 2026. Supporting this expansion, a market study indicated that 54% of healthcare providers surveyed plan to increase their prescribing of Azstarys, suggesting strong early demand for the drug.
Looking ahead, Collegium has set ambitious revenue targets for Jornay PM for the remainder of 2026. The company anticipates the drug will generate between $190 million and $200 million in annual revenue, representing approximately 31% year-on-year growth. To achieve this, management plans to expand the drug’s subscriber base and increase patient awareness across its target demographics.
Market sentiment towards the stock remains positive, with analysts projecting a potential 57% gain over the next 12 months. The stock has also been highlighted by Jim Simons’ Renaissance Technologies as one of the best micro and small cap stocks to buy. Despite this optimism, some analysts note that other sectors, such as artificial intelligence, may offer different risk and return profiles for investors.
