Collegium Expands Portfolio with $525M Acquisition of Ironshore Therapeutics, Entering ADHD Market ###

Acquisition Details:
Collegium Pharmaceuticals has signed a definitive agreement to acquire Ironshore Therapeutics for $525 million in cash. This move aims to expand Collegium's portfolio beyond pain management solutions.

Additional Payment:
Collegium has agreed to pay an additional $25 million contingent upon Jornay PM's sales surpassing revenue targets set for 2025.

Loan and Financing:
Collegium has secured a $646 million loan over five years from Pharmak Advisors to facilitate the purchase of Ironshore, complementing its cash reserves.

Jornay PM:
The acquisition includes Ironshore's FDA-approved medication Jornay PM (ethylphenate hydrochloride), used to treat attention hyperactivity disorder (ADHD) in individuals aged six and above.

Market Impact:
The ADHD market is currently led by Takeda with two FDA-approved medications. However, the market is projected to decrease from $11.9 billion in 2022 to $10.9 billion by 2032 due to the introduction of generic alternatives.

Future Developments:
Otsuka Pharmaceuticals is developing late-stage ADHD treatments, including a non-stimulant medication and a once-daily stimulant option, with promising Phase III study results announced in October 2023.

Strategic Aims:
The acquisition aligns with Collegium's strategic goals to diversify its portfolio and capitalize on substantial revenue potential, with exclusivity extending into the 2030s.