Collegium Pays $17M to End Nucynta Patent Fight With Grünenthal
COLL is trading near its 52-week low of $21.43 (7.4% above the low).
Summary
Collegium will pay Grünenthal $17 million to settle the Nucynta patent lawsuit and terminate the related license, clearing all outstanding disputes between the two. The payment is modest against a roughly $750M market cap and comes after Q2 revenue of $199.9M that swung to a $15.1M net loss on Azstarys acquisition costs and higher amortization. Removing the litigation overhang simplifies the story, though the license termination means Nucynta economics change going forward. The company has been returning cash aggressively, including a $50M accelerated share repurchase at $25.70 in August under its $150M buyback, so a $17M outflow is manageable but competes with that capital return.
At the time of this announcement, COLL was trading at $23.01 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $749.1M. The 52-week trading range was $21.43 to $50.79. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.