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Acquisition | 9 Months Ended
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Sep. 30, 2025
Acquisition |
Acquisition | 4. Acquisition ​ On September 3, 2024, the Company closed the Ironshore Acquisition. Ironshore had developed and obtained commercial approval to market Jornay PM in the United States. The Ironshore Acquisition was completed to expand the Company’s business beyond pain management and establish a commercial presence in neuropsychiatry via the attention deficit hyperactivity disorder (“ADHD”) market. The Company obtained control through the acquisition of shares in an all-cash transaction which closed on September 3, 2024. ​ The acquisition consideration includes payments for the Ironshore equity and assumption of certain of its debt. The Company deposited $25,000 into escrow at closing, to be released (i) in part, after, and subject to, determination of any adjustments related to finalization of working capital and cash at closing; and (ii) in part, and subject to, the lapse of certain indemnification obligations 12 months from the Acquisition Date. As of the Acquisition Date, approximately $21,956 was due to the former Ironshore equity holders and $25,000 was recorded as restricted cash. In the nine months ended September 30, 2025, the adjustments related to working capital and cash were finalized and settled, resulting in a $3,836 reduction in the amount due to the former Ironshore equity holders. In addition, the Company was required to pay approximately $7,000 to former Ironshore equity holders as the Company has the opportunity to recover certain deposits as specified in the Merger Agreement, which amount was due no later than 225 days from the Acquisition Date. This deferred payment was made in the three months ended June 30, 2025. The Company also agreed to pay a $25,000 contingent payment upon the achievement of a financial milestone based on net revenues of Jornay PM for the year ended December 31, 2025. ​ The fair value of the total consideration, including finalization of the working capital adjustment, was approximately $306,104 consisting of the following: ​
​ | ​ | ​
Fair Value of Purchase Price Consideration | Amount
Fair value of purchase price consideration paid at closing: | ​ | ​
Initial cash consideration | $ | 276,888
Deferred payments and contingent consideration: | ​ | ​
Cash held in escrow related to indemnification and other settlements | ​ | 18,120
Other deferred consideration | ​ | 7,000
Fair value of contingent consideration | ​ | 4,096
Total purchase consideration | $ | 306,104
​ The Company has accounted for the Ironshore Acquisition as a business combination and, accordingly, has included the assets acquired, liabilities assumed and results of operations in its financial statements following the Acquisition Date. ​ The final allocation of the consideration transferred to the assets acquired and liabilities assumed has been completed. During the three months ended September 30, 2025, the Company recognized measurement period adjustments to decrease accrued rebates, returns, and discounts by $3,582, goodwill by $2,010, deferred tax assets by $1,520, and certain other accounts by $50. For the nine months ended September 30, 2025, the Company recognized measurement period adjustments to decrease accrued rebates, returns, and discounts by $23,227, goodwill by $16,048, deferred tax assets by $11,039, and certain other accounts by $502. ​ The following tables set forth the final allocation of the Ironshore Acquisition purchase price to the estimated fair value of the net assets acquired at the Acquisition Date, including all measurement period adjustments: ​
​ | ​ | ​ | ​
​ | ​ | Acquisition Date Fair Value
Assets Acquired | ​ | ​ | ​
Cash and cash equivalents | ​ | $ | 9,350
Accounts receivable | ​ | ​ | 44,593
Inventory | ​ | ​ | 17,155
Prepaid expenses and other current assets | ​ | ​ | 8,620
Property, plant and equipment, net | ​ | ​ | 541
Intangible assets | ​ | ​ | 635,000
Right-of-use assets | ​ | ​ | 800
Deferred tax assets | ​ | ​ | 33,921
Total assets | ​ | $ | 749,980
Liabilities Assumed | ​ | ​ | ​
Accounts payable | ​ | $ | 6,656
Accrued liabilities | ​ | ​ | 73,437
Accrued rebates, returns and discounts | ​ | ​ | 87,697
Borrowings | ​ | ​ | 8,954
Lease liabilities | ​ | ​ | 800
Senior secured notes payable | ​ | ​ | 151,500
Deferred royalty obligation | ​ | ​ | 116,900
Deferred revenue | ​ | ​ | 10,000
Total liabilities | ​ | $ | 455,944
Total identifiable net assets acquired | ​ | ​ | 294,036
Goodwill | ​ | ​ | 12,068
Total consideration transferred | ​ | $ | 306,104
​ The valuation of the acquired intangible assets and assumed deferred royalty obligation relies on significant unobservable inputs. The Company used an income approach to value the $635,000 for the acquired intangible asset. The valuation of the intangible asset was based on estimated projections of expected cash flows to be generated by the asset, discounted to the present value at an appropriate discount rate. The Company is amortizing the identifiable intangible asset on a straight-line basis over its useful life of 7.7 years (refer to Note 9, Goodwill and Intangible Assets). The acquired inventory was recorded at fair value, which includes an adjustment to record inventory from its historic cost to fair value of $10,700. The assumed senior secured notes payable and borrowings were settled immediately after the close of the acquisition, resulting in a loss in debt extinguishment of $4,145 in the three months ended September 30, 2024. ​ The excess of the purchase price over the fair value of identifiable net assets acquired represents goodwill. This goodwill is primarily attributable to synergies of merging operations. The acquired goodwill is not deductible for tax purposes. ​ Acquisition Related Expenses ​ In the three and nine months ended September 30, 2025, the Company incurred $1,552 and $3,776, respectively, of acquisition related expenses, including employee-related expenses (primarily consisting of severance), legal defense expenses for the North Sound Pharmaceutical (“NSP”) litigation that was acquired from Ironshore and relates to acts that occurred prior to Collegium’s acquisition of Ironshore (refer to Note 16, Commitments and Contingencies – David Lickrish, as legal assignee of North Sound Pharmaceuticals, Inc. (In Official Liquidation), for more information), and miscellaneous other acquisition expenses incurred, including integration consulting expenses, and expenses related to exiting contracts acquired from Ironshore. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2025 | ​ | 2025
Employee-related expenses | ​ | $ | — | ​ | $ | 515
Transaction costs | ​ | ​ | — | ​ | ​ | 38
Legal defense expenses for NSP litigation acquired from Ironshore | ​ | ​ | 883 | ​ | ​ | 1,435
Other acquisition expenses | ​ | ​ | 669 | ​ | ​ | 1,788
Total acquisition related expenses | ​ | $ | 1,552 | ​ | $ | 3,776
​

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