What Happened?

Shares of pharmaceutical company Collegium Pharmaceutical (NASDAQ: COLL) fell 6.7% in the afternoon session after the company reported fourth-quarter earnings and revenue that fell short of analysts' expectations. 

The specialty pharmaceutical company posted adjusted earnings of $2.04 per share, which missed the analyst estimate of $2.14. Revenue for the quarter also did not meet forecasts, coming in at $205.45 million versus the consensus estimate of $207.07 million. When a company's financial results do not meet Wall Street's predictions, it can lead to a drop in its stock price as investors react to the news. The sell-off was significant enough that the shares entered what traders refer to as oversold territory.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Collegium Pharmaceutical? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Collegium Pharmaceutical’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 11.6% on the news that the company reported strong third-quarter 2025 financial results, beating analyst expectations and raising its full-year guidance. The pharmaceutical company announced net revenue of $209.4 million, a 31.4% jump year on year that exceeded Wall Street forecasts. The strong performance was driven by its portfolio of pain management medications. Following these results, Collegium lifted its financial outlook for the full year. The company raised its net revenue forecast to a range of $775 million to $785 million and its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) projection to between $460 million and $470 million.

Collegium Pharmaceutical is down 9.4% since the beginning of the year, and at $41.27 per share, it is trading 17.2% below its 52-week high of $49.84 from December 2025. Investors who bought $1,000 worth of Collegium Pharmaceutical’s shares 5 years ago would now be looking at an investment worth $1,800.

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