Core Insights - Supernus Pharmaceuticals, Inc. is participating in the TD Cowen 45th Annual Health Care Conference on March 3, 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] - The company's diverse neuroscience portfolio includes approved treatments for ADHD, dyskinesia in Parkinson's disease, hypomobility in Parkinson's disease, epilepsy, migraine, cervical dystonia, and chronic sialorrhea [4] - Supernus is also developing a range of novel CNS product candidates targeting epilepsy, depression, and other CNS disorders [4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $174.2 million, compared to $164.3 million in Q4 2023, representing an increase [24] - Total revenues for the full year 2024 were $661.8 million, up from $607.5 million in 2023, marking an increase of approximately 9% [26] - GAAP net earnings for Q4 2024 were $15.3 million or $0.27 per diluted share, compared to $1.2 million or $0.02 per diluted share in Q4 2023 [25] - Adjusted operating earnings for Q4 2024 were $48.3 million, compared to $47.1 million in the same quarter last year [25] - As of December 31, 2024, the company had approximately $454 million in cash, cash equivalents, and marketable securities, compared to $271 million as of December 31, 2023 [28] Business Line Data and Key Metrics Changes - Qelbree's annual prescriptions grew by 25% in 2024, with net sales increasing by 72%, reaching $74 million in Q4 2024, a 60% increase over Q4 2023 [9][10] - GOCOVRI's net sales increased by 9% for the full year 2024 and by 15% in Q4 2024, reaching $37 million [14] - Combined net sales of Trokendi XR and Oxtellar XR were down 22% for the full year 2024, with a further decline expected in 2025 [16] Market Data and Key Metrics Changes - The ADHD market grew by 9% in 2024, with Qelbree's growth significantly outpacing this at 25% [36] - Qelbree's market share in the adult segment is approximately 30% to 32%, indicating room for growth [61] Company Strategy and Development Direction - The company is focused on driving growth from core products, particularly Qelbree, and launching ONAPGO in Q2 2025 [116] - Corporate development remains a top priority, with a focus on acquiring revenue-generating products and late-stage pipeline candidates [22][42] - The company is open to exploring opportunities beyond CNS, including areas like dermatology and rare diseases [108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite the loss of exclusivity on legacy products, emphasizing strong cash flow generation [115] - The company anticipates total revenues for 2025 to range from $600 million to $630 million, with combined R&D and SG&A expenses expected to be between $435 million and $460 million [30] Other Important Information - The company received a two-plus year patent term extension for Qelbree, extending its expiration date to 2025 [14] - The FDA approved ONAPGO, the first subcutaneous apomorphine infusion device for advanced Parkinson's disease, with a launch targeted for Q2 2025 [15] Q&A Session Summary Question: What is the expected revenue range for Qelbree in 2025? - Management indicated that a range of $2.65 to $2.95 billion for Qelbree is a fair estimate, with continued prescription growth as a key driver [33][35] Question: What are the key levers for sales growth in 2025? - Continued prescription growth is expected to be a significant factor, with management noting high patient satisfaction rates [36][38] Question: What is the competitive landscape for Qelbree? - Management stated that it is difficult to comment on competition until more data is available, but they believe Qelbree has a significant head start in the non-stimulant market [89][93] Question: What are the expectations for the ONAPGO launch? - The launch is expected to be a slow build, with minimal sales expectations embedded in the 2025 guidance [72][73] Question: What share of ADHD patients have comorbidities? - Management noted that 40% to 60% of ADHD patients may have comorbidities, which presents an opportunity for Qelbree [100][102]

Core Insights - Supernus Pharmaceuticals (SUPN) reported $174.16 million in revenue for Q4 2024, a 6% year-over-year increase, with an EPS of $0.75 compared to $0.02 a year ago, indicating strong financial performance [1] - The revenue exceeded the Zacks Consensus Estimate of $155.25 million by 12.18%, and the EPS surpassed the consensus estimate of $0.52 by 44.23% [1] Revenue Breakdown - Net product sales for Trokendi XR were $14.80 million, exceeding the average estimate of $9.34 million, but showing a year-over-year decline of 24.5% [4] - Oxtellar XR generated $13.20 million, slightly below the estimated $13.21 million, reflecting a significant year-over-year decrease of 57.4% [4] - Qelbree sales reached $74.40 million, surpassing the estimate of $65.08 million, marking a substantial year-over-year increase of 60.3% [4] - Total net product sales amounted to $166.40 million, exceeding the average estimate of $149.84 million, with a year-over-year growth of 6.7% [4] - Royalty revenues were reported at $7.76 million, above the estimated $5.40 million, but down 6.4% from the previous year [4] - GOCOVRI sales were $36.90 million, slightly above the estimate of $36.11 million, with a year-over-year increase of 15.3% [4] - Other net product sales totaled $7 million, below the estimate of $7.83 million, reflecting a year-over-year decline of 15.7% [4] - APOKYN generated $20.10 million, exceeding the estimate of $17.50 million, with a year-over-year increase of 7.5% [4] Stock Performance - Supernus shares have returned -17.1% over the past month, compared to a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) Q4 2024 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Peter Vozzo – Investor Relations-ICR Healthcare Jack Khattar – Chief Executive Officer Tim Dec – Chief Financial Officer Conference Call Participants Andrew Tsai – Jefferies Stacy Ku – TD Cowen Annabel Samimy - Stifel David Amsellem – Piper Sandler Kristen Kluska - Cantor Fitzgerald Operator Good afternoon, and welcome to Supernus Pharmaceuticals Fourth Quarter and Full Year 2024 F ...

Group 1: Earnings Performance - Supernus Pharmaceuticals reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and significantly up from $0.02 per share a year ago, representing an earnings surprise of 44.23% [1] - The company posted revenues of $174.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 12.18%, compared to year-ago revenues of $164.31 million [2] - Over the last four quarters, Supernus has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Supernus shares have declined approximately 9.6% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.36 on revenues of $143.75 million, and for the current fiscal year, it is $1.93 on revenues of $622.79 million [7] Group 3: Industry Context - The Medical - Generic Drugs industry, to which Supernus belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Supernus is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expectations of outperforming the market in the near future [6]

Financial Position - As of December 31, 2024, the company had unrestricted cash and cash equivalents and marketable securities totaling $453.6 million[570]. - Cash and cash equivalents decreased to $69.3 million in 2024 from $75.1 million in 2023, indicating a need for cash management strategies[598]. - Cash and cash equivalents at the end of 2024 were $69,331,000, down from $75,054,000 in 2023, reflecting changes in cash management[609]. - As of December 31, 2024, the company reported cash and cash equivalents of $37.8 million, an increase from $36.0 million in 2023[722]. - The fair value of unrestricted available-for-sale marketable securities increased to $384.3 million as of December 31, 2024, compared to $196.4 million in 2023[710]. Debt and Financing - The company fully repaid the outstanding principal and interest on the 2023 Notes in April 2023 and repaid the Credit Line in June 2023[571]. - The company may borrow funds under its Credit Line in the future, which exposes it to interest rate risk[571]. - The Company entered into a credit line agreement with UBS on February 8, 2023, providing a revolving line of credit of up to $150 million[752]. - The 0.625% Convertible Senior Notes matured on April 1, 2023, with a total principal payment of $402.5 million and remaining interest of $1.3 million paid[748]. - The Company borrowed $93.0 million under the Credit Line on March 30, 2023, and fully repaid this amount along with $0.7 million in interest by June 30, 2023[757]. Revenue and Sales Performance - Total revenues for 2024 reached $661.8 million, a 8.9% increase from $607.5 million in 2023[600]. - Net product sales increased to $637.7 million in 2024, up 11.1% from $573.9 million in 2023[600]. - Net product sales reached $637.7 million in 2024, up 11.1% from $573.9 million in 2023, with Qelbree sales increasing significantly to $241.3 million, representing 38% of total net product sales[704][709]. - The company recognizes revenue from product sales net of various deductions, including rebates and returns, which are estimated based on historical data and contractual terms[657]. - Adjustments related to prior year sales in 2024 were less than 3% of net product sales, primarily due to favorable returns for Qelbree[706]. Earnings and Profitability - Net earnings for 2024 were $73.9 million, significantly up from $1.3 million in 2023, representing a substantial increase[600]. - Basic earnings per share rose to $1.34 in 2024, compared to $0.02 in 2023[600]. - The company reported a comprehensive earnings of $74.3 million in 2024, compared to $3.9 million in 2023[602]. - Net earnings for the year ended December 31, 2024, were $73,865,000, a significant increase from $1,316,000 in 2023 and $60,711,000 in 2022, reflecting strong operational performance[609]. - The company paid $53,254,000 in income taxes in 2024, compared to $36,602,000 in 2023, indicating a higher tax obligation due to increased earnings[609]. Assets and Equity - Total assets increased to $1.368 billion in 2024, up from $1.278 billion in 2023, reflecting a growth of 7.1%[598]. - Total stockholders' equity reached $1.036 billion in 2024, an increase of 12.4% from $921.5 million in 2023[598]. Research and Development - Research and development expenses rose to $108.8 million in 2024, up from $91.6 million in 2023, indicating a focus on innovation[600]. - Research and development expenses include costs for preclinical and clinical studies, employee salaries, and contract research services, expensed as incurred[675]. Inventory and Cost Management - Cost of goods sold decreased to $77.9 million in 2024 from $83.8 million in 2023, showing improved efficiency[600]. - The company experienced a write-down in inventory valuation of $8,876,000 in 2024, compared to $8,023,000 in 2023, indicating potential challenges in inventory management[609]. Customer Concentration - Customer A accounted for 28% of gross product sales in 2024, with accounts receivable from this customer at 40%[640]. - Customer B represented 24% of gross product sales in 2024, with accounts receivable at 28%[640]. - Customer C contributed 25% to gross product sales in 2024, with accounts receivable at 16%[640]. - Customer D's share of gross product sales increased to 13% in 2024, with accounts receivable at 8%[640]. - The total percentage of gross product sales from these four customers was 90% in 2024, compared to 88% in 2023[640]. Contingent Consideration and Acquisitions - The Company completed the USWM Acquisition on June 9, 2020, with potential contingent consideration payments of up to $55 million, including $25 million for FDA approval and $30 million for product launch, expected to be paid in 2025[728]. - The FDA approved ONAPGO (apomorphine hydrochloride) injection in February 2025, leading to a $25 million milestone payment[728]. - The Adamas Acquisition, completed on November 24, 2021, includes two contingent value rights (CVRs) with potential payments of $0.50 per share upon achieving sales milestones of GOCOVRI exceeding $150 million by December 31, 2024, and $225 million by December 31, 2025[730][731]. - As of December 31, 2024, the 2024 Milestone was not met, with the 2025 Milestone contingent consideration valued at $0 or $25 million[732]. - The Company recorded a change in fair value of contingent consideration liabilities, with a balance of $47.34 million for USWM and no remaining balance for Adamas as of December 31, 2024[735]. Share-Based Compensation - The company recognized share-based compensation expense of $27,755,000 in 2024, slightly up from $26,759,000 in 2023, reflecting ongoing employee incentive programs[609]. - Share-based compensation expense for the year ended December 31, 2024, totaled $27.755 million, an increase from $26.759 million in 2023 and $17.568 million in 2022[763]. - The number of stock options outstanding as of December 31, 2024, was 6,719,073, with a weighted average exercise price of $30.44[764]. - The total fair value of the underlying common stock related to options that vested during the year ended December 31, 2024, was approximately $16.7 million, up from $14.8 million in 2023 and $13.9 million in 2022[766]. - The total unrecognized compensation expense was approximately $37.4 million, expected to be recognized over a weighted-average period of 2.5 years[768]. Regulatory and Compliance - The Company plans to adopt ASU 2023-09 for the fiscal year ending December 31, 2025, which requires additional disclosures regarding income tax expense and effective tax rate reconciliation[700]. - The Company is evaluating the impact of the SEC's final climate rule on its disclosures following the adoption of the rule in March 2024[703].

Financial Reporting - Supernus Pharmaceuticals, Inc. will report its Q4 and full year 2024 business results on February 25, 2025[4] - A conference call and webcast will be held on February 25, 2025, at 4:30 p.m. E.T. to discuss the financial results[4]

Core Insights - Supernus Pharmaceuticals reported strong financial results for Q4 and full year 2024, highlighting significant growth in core products and operating earnings [2][3][14] - The company anticipates continued growth in Qelbree and the launch of ONAPGO for Parkinson's disease in Q2 2025 [2][3] Financial Performance - Q4 2024 net sales of Qelbree increased by 60% to $74.4 million, while full year sales rose by 72% to $241.3 million compared to 2023 [3][14] - GOCOVRI's Q4 2024 net sales increased by 15% to $36.9 million, with full year sales up by 9% to $130.8 million [3][14] - Total revenues for full year 2024 reached $661.8 million, a 9% increase from 2023, with revenues excluding Trokendi XR and Oxtellar XR up by 25% [3][14] - Operating earnings for full year 2024 were $81.7 million, a significant recovery from an operating loss of $(5.3) million in 2023 [3][14] Product Pipeline Developments - ONAPGO, approved by the FDA, is set to launch in Q2 2025 as the first subcutaneous apomorphine infusion device for Parkinson's disease [3][5] - Qelbree's label has been updated to include new pharmacodynamic data, enhancing its profile for ADHD treatment [4] - Interim results from a Phase IV trial of Qelbree in adults with ADHD showed promising improvements in symptoms [4] Future Guidance - For full year 2025, Supernus projects total revenues between $600 million and $630 million, with adjusted operating earnings expected to be between $105 million and $130 million [3][12]

Group 1 - Supernus Pharmaceuticals, Inc. shares fell over 13% on February 19, 2025, after the company announced that its Phase 2b study of SPN-820 for treatment-resistant depression failed to meet its primary endpoint, showing no significant improvement over placebo [2] - The outcome of the study was unexpected for investors, given the company's previous optimism regarding the drug's potential [2] - Block & Leviton is investigating Supernus Pharmaceuticals for potential securities law violations related to the company's prior disclosures [4] Group 2 - Investors who purchased Supernus Pharmaceuticals, Inc. common stock and experienced a loss may be eligible to recover those losses, regardless of whether they have sold their investment [3] - Block & Leviton is recognized as a leading securities class action firm, having recovered billions of dollars for defrauded investors [7] - The firm encourages individuals with non-public information about Supernus Pharmaceuticals to assist in the investigation or report to the Securities Exchange Commission under the whistleblower program, which offers rewards of up to 30% of any successful recovery [6]

Group 1 - Supernus Pharmaceuticals' shares fell over 13% on February 19, 2025, after the company announced that its Phase 2b study of SPN-820 for treatment-resistant depression failed to meet its primary endpoint, showing no significant improvement over placebo [2] - The outcome of the study was unexpected for investors, given the company's previous optimism regarding the drug's potential [2] - Block & Leviton is investigating Supernus Pharmaceuticals for potential securities law violations related to the company's prior disclosures [4] Group 2 - Investors who purchased Supernus Pharmaceuticals' common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they have sold their investment [3] - Block & Leviton is known as a leading securities class action firm, having recovered billions of dollars for defrauded investors through active litigation [7] - The firm encourages individuals with non-public information about Supernus Pharmaceuticals to assist in the investigation or report to the SEC under the whistleblower program, which offers rewards of up to 30% of any successful recovery [6]