12 Small Cap Stocks with High Upside Potential

6. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)

Market Capitalization: $962.02 Million

Analyst Upside: 40.33%

No. of Hedge Fund Investors: 21

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is one of the 12 Small Cap Stocks with High Upside Potential. On May 12, the diversified biopharmaceutical company entered an accelerated share purchase agreement with Jefferies LLC.

Under the agreement, the company agreed to repurchase $25 million of the company’s common stock. The accelerated share repurchase program is part of an elaborate $150 million share repurchase program approved by the Board last year in January. Colleen Tupper, Chief Financial Officer, stated:

“Collegium is off to a strong start in 2025 with first quarter revenues growing 23% year-over-year, driven by robust sales from our pain portfolio and a significant contribution from our rapidly growing ADHD medicine, Jornay PM. The Board’s authorization of a $25 million ASR program reflects our strategic approach to capital allocation that balances driving sustained revenue growth while also returning capital to shareholders. We are confident in our future growth trajectory and remain committed to generating additional value as we invest in our key product growth drivers, expand our portfolio through disciplined business development, rapidly pay down debt, and opportunistically repurchase shares.”

In Q1 FY2025, the company reported net revenue worth $177.8 million, up by 23% year-over-year. Its pain portfolio generated $149.2 million, with its three primary products reporting record revenue growth. The company also celebrates a stable financial condition with cash and cash equivalents, and marketable securities worth $197.8 million.

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a pharmaceutical company that develops medicines for pain management. The company currently has six approved drugs in its portfolio.