Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the small-cap equities delivered strong results with the Russell 2000 Index reaching its first all-time high since November 2021. A favorable macroeconomic backdrop led the rally. In the quarter, the fund (Class I-2) delivered a return of 3.16% underperforming the 12.39% total return of the Russell 2000 Index. For mo ...

The sale hints at profit-taking in a stock that’s executing operationally but facing tougher questions about durability and valuation.Aristotle Capital Boston disclosed in a November 14 SEC filing that it sold 503,122 shares of Supernus Pharmaceuticals (SUPN +0.25%), contributing to a reduction in its position by about $10.9 million.What HappenedAccording to a Securities and Exchange Commission (SEC) filing dated November 14, Aristotle Capital Boston reduced its holdings in Supernus Pharmaceuticals (SUPN +0 ...

Summary of Supernus Pharmaceuticals Conference Call Company Overview - **Company**: Supernus Pharmaceuticals (NasdaqGM:SUPN) - **Industry**: Pharmaceuticals, specifically focusing on Central Nervous System (CNS) disorders - **CEO**: Jack Khattar, who founded the company in 2005 as a spin-out from Shire, achieving an enterprise value of up to $3 billion [2][3] Key Points Discussed Acquisition and Integration of Sage - **Acquisition Details**: Supernus completed the acquisition of Sage, aiming for $200 million in annualized synergies [3][5] - **Synergy Realization**: Integration is progressing well, with SG&A costs related to Sage reduced to approximately $14-$15 million per month, down from previous independent operations [4][5] - **R&D Evaluation**: The company is assessing Sage's R&D programs to determine which to continue or eliminate, with significant progress reported [5][6] Product Performance and Market Dynamics - **Lead Asset - Zurzuvae**: - Demand-driven growth observed, with a sequential growth rate of 19%-20% over the last four quarters [9] - Approximately 500,000 women experience postpartum depression (PPD) symptoms annually, with only 45%-50% diagnosed and 60%-70% treated, indicating significant market potential [10][17] - Education efforts are crucial for increasing diagnosis and treatment rates among both patients and physicians [15][16] - **Sales Force Expansion**: - The sales force primarily targets OB-GYNs, with about 80% of Zurzuvae prescriptions coming from this specialty [12][13] - The company adopts a stepwise approach to sales force expansion, focusing on measuring returns before further investment [12] Qelbree Performance - **Revenue Growth**: - Qelbree has shown robust growth, with a 19% increase in pediatric prescriptions and a 32% increase in adult prescriptions [19][20] - The market for ADHD treatments continues to grow, with Qelbree capturing a stable mix of treatment-naïve patients (30%-35%) and switch patients [25] - **Market Dynamics**: - The adult segment is increasingly recognized, with societal shifts leading to more discussions about mental health and ADHD [21][22] - The company is benefiting from the genericization of Vyvanse, although stimulant shortages have not significantly impacted Qelbree's market share [23][24] Supply Chain and Product Availability - **Apokyn Supply Issues**: - Current supply challenges due to reliance on a third-party manufacturer, with efforts to explore alternative suppliers to ensure patient access [33][34] - The company is working with the FDA to expedite the approval process for new manufacturing facilities [39][41] - **Gocovri Performance**: - Gocovri continues to grow, driven by its unique indication for dyskinesia and off-episodes, with increasing physician adoption [54][55] - Medicare redesign has improved patient affordability, contributing to retention rates [56][57] Pipeline Developments - **SPN-820**: - Mixed results in treatment-resistant depression (TRD) but confidence in a new dosing regimen for major depressive disorder (MDD) [58][60] - **SPN-817**: - Expected cholinergic side effects managed through mandatory antiemetic use in ongoing studies, with a focus on improving patient retention during the titration phase [63][64] Additional Insights - **Market Education**: There is a significant need for education regarding postpartum depression and ADHD, which presents an opportunity for Supernus to increase market penetration [15][16][17] - **Patient-Centric Approach**: The company emphasizes transparency and patient care, particularly during supply challenges, to maintain physician and patient trust [45][46] This summary encapsulates the key discussions and insights from the Supernus Pharmaceuticals conference call, highlighting the company's strategic initiatives, product performance, and market opportunities.

Core Viewpoint - Supernus Pharmaceuticals has undergone a significant transformation into a diversified CNS (Central Nervous System) growth company, with a current enterprise value of up to $3 billion [2][3]. Company Overview - Supernus Pharmaceuticals was founded as a spinout of Shire in 2005, marking its 20-year anniversary [3]. - The company is led by Jack Khattar, who has a strong operational track record [2]. Analyst Perspective - The lead analyst, Pavan Patel, has chosen Supernus as the first company to cover due to its impressive transformation and growth potential in the CNS sector [2].

Core Insights - Supernus Pharmaceuticals, Inc. is set to present at the Bank of America Securities 2025 CNS Therapeutics Virtual Conference on December 8, 2025, at 3:20 p.m. ET, with Jack A. Khattar, the President and CEO, leading the presentation [1] Company Overview - Supernus Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases [3] - The company has a diverse neuroscience portfolio that includes approved treatments for various conditions such as ADHD, dyskinesia in Parkinson's disease, hypomobility in Parkinson's disease, postpartum depression, epilepsy, migraine, cervical dystonia, and chronic sialorrhea [4] Conference Details - Investors interested in meeting with company management during the conference can contact the Bank of America conference coordinator [2] - A live audio webcast of the presentation will be available, and an archived replay will be accessible for 60 days following the conference on the company's website [2]

Summary of Supernus Pharmaceuticals FY Conference Call Company Overview - **Company**: Supernus Pharmaceuticals (NasdaqGM:SUPN) - **Event**: 37th Annual Piper Sandler Healthcare Conference - **Date**: December 02, 2025 Key Points Industry and Product Focus - **Product in Focus**: APO-go, a treatment for movement disorders, particularly for patients with advanced Parkinson's disease [1][2] - **Market Demand**: There is significant demand for APO-go, with physicians expressing strong support for the product despite current supply constraints [3][4] Supply Chain Challenges - **Current Situation**: The existing manufacturer is facing capacity issues, unable to meet the overwhelming demand for APO-go [5][6] - **Resolution Efforts**: Supernus is exploring multiple avenues to resolve supply constraints, including discussions with the FDA and potential partnerships with alternative suppliers [2][3][10] - **Timeline for Solutions**: Onboarding a new manufacturer could take several months to a year, depending on regulatory approvals and readiness [7][8][9] Patient Demand and Enrollment - **Patient Enrollment Forms (PEFs)**: Despite supply issues, physicians continue to submit PEFs, indicating ongoing interest in APO-go [14][15] - **Patient Demographics**: Initial demand is primarily from patients with advanced Parkinson's disease who have limited treatment options [19][20] Financial Projections - **Sales Estimates**: Initial peak sales estimates for APO-go are projected between $200 million and $300 million, which may need to be revisited once supply issues are resolved [20][21] - **Long-term Outlook**: The long-term potential for APO-go remains strong, as it offers a unique treatment option not available in the current market [21][22] Competitive Landscape - **Market Competition**: APO-go faces competition from other products like Vyalev and Apokyn, but it serves a different purpose as a rescue medication [25][26] - **Product Differentiation**: APO-go is positioned as a unique treatment option, distinct from traditional therapies like Levodopa [21][22] New Product Developments - **Zurzuvae**: Another product in the portfolio targeting postpartum depression, with significant market potential as it addresses a large unmet need [32][33] - **Sales Strategy**: The sales force is primarily targeting OB-GYNs, with potential for expansion based on market response [34][36] M&A and Future Strategy - **M&A Focus**: Supernus is prioritizing commercial-stage assets and is open to acquiring later-stage development programs [47][48] - **Partnership with Biogen**: There is potential for discussions regarding the buyout of Biogen's 50% stake in Zurzuvae, although both companies are currently committed to the brand [46] Financial Synergies - **Cost Synergies**: Supernus anticipates realizing up to $200 million in annualized synergies from the acquisition of Sage Therapeutics [42] Research and Development - **Early-stage Assets**: Supernus is evaluating early-stage assets from Sage and its own pipeline to determine which programs to advance [43][44] Conclusion Supernus Pharmaceuticals is navigating significant supply chain challenges with its APO-go product while maintaining strong demand and interest from healthcare providers. The company is also expanding its product portfolio with Zurzuvae and exploring strategic M&A opportunities to enhance its market position.

Core Insights - Supernus Pharmaceuticals, Inc. is participating in the Piper Sandler 37th Annual Healthcare Conference on December 2, 2025, where CEO Jack A. Khattar will engage in a fireside chat [1][2] Company Overview - Supernus Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases [3][4] - The company's diverse neuroscience portfolio includes approved treatments for ADHD, dyskinesia in Parkinson's disease, hypomobility in Parkinson's disease, postpartum depression, epilepsy, migraine, cervical dystonia, and chronic sialorrhea [4]

Summary of Supernus Pharmaceuticals Conference Call Company Overview - **Company**: Supernus Pharmaceuticals (NasdaqGM:SUPN) - **Focus**: CNS-focused biopharma with a diversified portfolio of products - **Revenue Guidance**: $685 million - $705 million for the current year [3][4] Key Products and Growth Drivers 1. **Qelbree**: - A non-stimulant ADHD treatment launched four and a half years ago - Current annualized prescriptions: approximately 1 million, representing about 1% market share - Expected peak sales: $320 million with a growth rate of over 20% [6][7] 2. **GOCOVRI**: - Unique product for Parkinson's, approved for dyskinesia and off episodes [3] 3. **ONAPGO**: - Apomorphine infusion device for Parkinson's launched this year - Initial peak sales estimate: $200 million - $300 million, but demand has exceeded expectations [9][10] 4. **ZURZUVAE**: - Oral treatment for postpartum depression acquired from Sage Therapeutics - Sales guidance not yet provided, but milestones based on sales levels are expected to be achievable [10][11] Business Development and Financial Strategy - **Cash Position**: Approximately $300 million post-acquisition of Sage Therapeutics - **Future Acquisitions**: Business development remains a priority, with potential transaction sizes estimated between $1 billion - $1.5 billion [12][13] - **Leverage Strategy**: Comfortable with a leverage ratio of 2 to 2.5 times EBITDA [13] Supply Chain and Production Challenges - **ONAPGO Supply Issues**: - Current production challenges due to competing priorities on the production line - Decision made to pause new patient initiation to prioritize existing patients [19][20] - Efforts are ongoing to increase production capacity and explore alternative suppliers [24][30] Market Position and Competitive Landscape - **Differentiation of ONAPGO**: - Apomorphine acts like dopamine without the need for metabolic conversion, unlike levodopa - Strong clinical need for alternatives to levodopa in Parkinson's treatment [32][34] - **ZURZUVAE Market Potential**: - Consistent growth of 19%-20% quarter over quarter - Focus on educating OB-GYNs for better diagnosis and treatment of postpartum depression [37][38] Pipeline and Future Developments - **Upcoming Data**: - Phase 2B data for epilepsy compound SPN-817 expected in 2027 - New stimulant for ADHD (SPN-443) to enter SAD-MAD study in 2026 [43][45] - **Potential New Assets**: - Evaluation of Sage's pipeline for future development opportunities [42] Conclusion - Supernus Pharmaceuticals is positioned for growth with a strong focus on CNS products, ongoing development efforts, and a commitment to addressing supply chain challenges. The company is optimistic about its product pipeline and market opportunities in the coming years.

Core Insights - Supernus Pharmaceuticals, Inc. is participating in the 2025 Jefferies Global Healthcare Conference in London on November 17, 2025, where CEO Jack A. Khattar will engage in a fireside chat [1] - The company focuses on developing and commercializing products for central nervous system (CNS) diseases [3][4] Company Overview - Supernus Pharmaceuticals specializes in treatments for various CNS disorders, including ADHD, Parkinson's disease-related dyskinesia, postpartum depression, epilepsy, migraine, cervical dystonia, and chronic sialorrhea [4] - The company is also developing a range of novel product candidates targeting CNS disorders [4] Investor Relations - Investors interested in meeting with company management during the conference can contact the Jefferies conference coordinator [2] - A live audio webcast of the presentation will be available, with an archived replay accessible for 60 days post-conference [2]

Financial Performance - ONAPGO generated net product sales of $6.8 million in its first full quarter following the U.S. commercial launch in April 2025, with over 1,300 enrollment forms submitted by more than 450 prescribers[216]. - Collaboration revenue from ZURZUVAE was $20.2 million in Q3 2025, representing approximately two months of collaboration revenue since the Sage Acquisition, with U.S. sales increasing approximately 150% compared to the same period in 2024[216]. - Net sales of Qelbree increased 31% to $81.4 million in Q3 2025, with total IQVIA prescriptions reaching 238,770, a 23% increase year-over-year[216]. - Net sales of GOCOVRI increased 15% to $40.8 million in Q3 2025, driven by growth in prescriptions and the number of prescribers[216]. - Total revenues for Q3 2025 were $192.1 million, a 9% increase from $175.7 million in Q3 2024, while total revenues for the nine months ended September 30, 2025, were $507.4 million, up 4% from $487.7 million in the same period of 2024[235]. - Net product sales decreased by 1% to $168.5 million in Q3 2025 compared to $170.3 million in Q3 2024, and also decreased by 1% to $468.5 million for the nine months ended September 30, 2025, from $471.3 million in the prior year[236]. - The decline in net product sales was primarily due to lower sales of APOKYN (down 48% in Q3 2025) and Oxtellar XR (down 60% in Q3 2025) due to generic erosion, partially offset by increases in sales from Qelbree and GOCOVRI[236]. Acquisitions and Collaborations - The Company completed the acquisition of Sage Therapeutics, Inc. on July 31, 2025, integrating its established commercial product ZURZUVAE into its portfolio[203]. - Collaboration revenue (ZURZUVAE) was $20.2 million for the three and nine months ended September 30, 2025, attributed to the Sage Acquisition in July 2025[248]. - The company has contingent consideration milestones related to the Sage Acquisition, with potential payments totaling up to $234 million based on future sales of ZURZUVAE[272]. - The company incurred $70.9 million in acquisition-related costs associated with the Sage Acquisition in July 2025, contributing to the decline in earnings[266]. Product Development - SPN-817, a novel anticonvulsant for epilepsy, is currently in a Phase 2b study with a targeted enrollment of approximately 258 adult patients[213]. - SPN-820, a novel treatment for depression, plans to initiate a follow-on Phase 2b trial in approximately 200 adults with major depressive disorder by the end of 2025[214]. - SPN-443, a novel stimulant for ADHD, completed a Phase 1 study in 2024 and is expected to initiate a Phase 1 single-ascending/multiple ascending dose study in 2026[215]. - The FDA approved an expanded label update for Qelbree in January 2025, including new data on pharmacodynamics and use in breastfeeding mothers[205]. Inventory and Supply Chain - The Company is facing supply constraints for ONAPGO due to stronger than expected demand, prioritizing care for existing patients while working to build adequate inventory[216]. - The accrued product returns balance decreased to $43.3 million as of September 30, 2025, from $57.4 million as of September 30, 2024, primarily due to a $16.3 million estimated provision for product returns related to prior year sales[244]. - The accrued product rebates balance increased to $141.2 million as of September 30, 2025, from $111.7 million as of September 30, 2024, primarily due to the timing of payments associated with government programs[245]. Expenses and Financial Management - Selling and marketing expenses increased by 42% to $54.3 million for the three months ended September 30, 2025, and by 19% to $205.5 million for the nine months ended September 30, 2025, primarily due to higher professional and consulting expenses[252]. - General and administrative expenses surged by 565% to $15.4 million for the three months ended September 30, 2025, and by 127% to $157.7 million for the nine months ended September 30, 2025, mainly due to acquisition-related costs from the Sage acquisition[253]. - Research and Development (R&D) expenses were $29.4 million for the three months ended September 30, 2025, compared to $29.0 million in 2024, with a total of $78.4 million for the nine months ended September 30, 2025, down from $80.1 million in 2024[251]. - The provision for product rebates increased to $295.1 million for the nine months ended September 30, 2025, from $293.6 million in the same period of 2024, primarily due to higher Qelbree sales[247]. Cash Flow and Liquidity - Cash and cash equivalents increased to $151.4 million as of September 30, 2025, from $69.3 million as of December 31, 2024, representing a 118% increase[261]. - Total cash, cash equivalents, and unrestricted marketable securities amounted to $281.2 million as of September 30, 2025, which the company believes will be sufficient to meet cash requirements over the next 12 months[262]. - Net cash provided by operating activities decreased to $27.5 million in 2025 from $127.5 million in 2024, primarily due to a net loss of $34.4 million compared to net earnings of $58.5 million in the prior year[266]. - Net cash provided by investing activities was $55.4 million in 2025, a significant improvement from net cash used of $177.2 million in 2024, primarily due to higher inflows from marketable securities[267]. - Cash and cash equivalents at the end of the period increased to $152.8 million in 2025 from $31.7 million in 2024, reflecting a net change of $126.9 million[265]. Risk Management and External Factors - The company does not hedge foreign currency exchange rate risk, and all liabilities were substantially denominated in U.S. dollars as of September 30, 2025[281]. - Inflation has not significantly impacted the company's consolidated results, although there are expectations of variability in labor and vendor service costs due to uncontrollable factors[282].