Collegium Pharmaceutical, Inc. (NASDAQ: COLL)
Collegium Pharmaceutical, Inc. (COLL), a specialty pharmaceutical company on Friday announced that the FDA advisory committee unanimously agreed to back approval of their drug Xtampza. Xtampza (oxycodone extended-release capsules) is used for the pain management of severe chronic pain. The FDA will acknowledge the advisory committee’s recommendation as it continues to review Xtampza ER.
Collegium Pharmaceutical, Inc. CEO’s Comments
“We are very pleased that the FDA advisory committees recommended approval for Xtampza ER,” said Michael Heffernan, Collegium’s Chairman and CEO. “We look forward to working with the FDA as it finalizes its review.” Globe Newswire
COLL Technical Analysis
COLL gapped up in price yesterday to $19.21 up from the prior days close of $13.45, a 43% increase on favorable news. Taking a look at the daily chart we can see the last time the stock traded at this price level was back on Aug 5 when it traded at $19.58. If we take a look back a little further we can see the stock traded at $20.03 back on July 31. That might be the first resistance level the stock encounters at $20. Since the highs reached on July 31 of $20.03, the stock had been on a steep decline reaching lows of $12.58 on Sept 1 which is equivalent to a 37% drop in price. As we can see, the stock has been very volatile in the past few months which is not uncommon for a pharmaceutical company. The stock does have a low float of 9.04 million shares and has traded on heavy volume yesterday, or over 20 times the normal daily trading volume. This makes the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $20.99 so it did give back $1.78 at the open or equivalent to 8%. For trading purposes, my entry point would be $19.25 looking for a run up to $20. My stop loss would be the whole number of $19 fearing anything below that and the stock will start to fill in the gap up.
Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, focuses on developing and commercializing abuse-deterrent products that incorporate its DETERx platform technology for the treatment of chronic pain and other diseases. Its lead product candidate is Xtampza, an abuse-deterrent, extended-release, oral formulation of oxycodone, a prescribed opioid medication. The company is also developing COL-172, an abuse-deterrent, extended-release oxymorphone for the treatment of chronic pain; COL-195, an abuse-deterrent, extended-release hydrocodone for the treatment of chronic pain; COL-196, a morphine formulation for the treatment of pain; and COL-171, a proprietary preclinical DETERx extended-release, abuse-deterrent methylphenidate formulation for the treatment of attention deficit hyperactivity disorder. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Canton, Massachusetts. Yahoo Finance