Collegium Pharmaceutical completes acquisition of Ironshore for $525M in cash

Collegium Pharmaceutical announced that it has completed the acquisition of Ironshore Therapeutics, a privately held company that markets and distributes Jornay PM, a central nervous system stimulant for the treatment of attention deficit hyperactivity disorder. Collegium also updated its 2024 financial guidance to include the anticipated impact of the Ironshore acquisition. Under the terms of the agreement, Collegium acquired all the outstanding shares of Ironshore for $525 million in cash, which was funded by $200 million of Collegium’s existing cash on hand and $325 million of Collegium’s $646 million term loan provided by investment funds managed by Pharmakon Advisors, LP. Collegium will also pay Ironshore shareholders $25 million in additional consideration if Jornay PM net revenue exceeds a defined threshold in 2025. The balance of the $646 million five-year term loan was used to repay Collegium’s prior $320.8 million term loan, reducing Collegium’s interest rate by 300 basis points.