Collegium Acquires Ironshore for $525M, Enters ADHD Market

Collegium Pharmaceuticals has entered into a definitive agreement to acquire Ironshore Therapeutics, aiming to broaden its product offerings beyond pain management. The acquisition involves a cash payment of $525 million for Ironshore's outstanding shares. This transaction will provide Collegium with Ironshore's US Food and Drug Administration (FDA)-approved therapy, Jornay PM (methylphenidate hydrochloride), which is used to treat attention deficit hyperactivity disorder (ADHD) in patients aged six and above.

Additionally, Collegium has agreed to pay an extra $25 million if the sales of Jornay PM surpass Collegium's specified revenue targets by 2025. The acquisition is anticipated to close in the third quarter of this year. Concurrently, Collegium has secured a $646 million loan from Pharmakon Advisors, which, together with Collegium’s existing cash reserves, will finance the Ironshore acquisition.

Michael Heffernan, Chairman and interim President and CEO of Collegium, expressed enthusiasm about the acquisition. He stated, "The Ironshore acquisition is a unique opportunity to deliver a transaction that is immediately accretive to Collegium while meeting all of our strategic objectives through the addition of a growing commercial asset that diversifies our portfolio, has significant revenue potential, and exclusivity into the 2030s."

Despite the potential benefits of this acquisition, there are challenges in the ADHD therapeutic market. Current stimulant treatments such as Jornay PM have limitations due to their potential for abuse and the restriction that prescriptions are limited to 30 days. 

In the ADHD market, Takeda currently leads with two FDA-approved treatments, Vyvanse (lisdexamfetamine dimesylate) and Intuniv (guanfacine hydrochloride). However, the overall market for ADHD therapeutics across major markets—including the US, France, Germany, Italy, Spain, the UK, and Japan—is projected to decline. According to GlobalData's analysis, the market is expected to decrease from $11.9 billion in 2022 to $10.9 billion by 2032, mainly due to the introduction and adoption of generic versions.

In terms of late-stage ADHD therapies in development, Otsuka Pharmaceuticals is working on a non-stimulant treatment called centanafadine. Another significant player is Cingulate, which is developing CTx-1301 (dexmethylphenidate), a once-daily stimulant therapy. Otsuka has reported promising results from two Phase III trials in October 2023, demonstrating centanafadine's effectiveness in treating ADHD in both adolescents and children.

Overall, while there are hurdles such as market decline and the launch of generics, the acquisition of Ironshore Therapeutics by Collegium Pharmaceuticals represents a strategic move to diversify Collegium's portfolio and enhance its revenue potential.

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