Supernus Pharmaceuticals(US:SUPN)2025-02-25 21:13Financial 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].