PART I — FINANCIAL INFORMATION Item 1. Unaudited Condensed Consolidated Financial Statements This section presents Supernus Pharmaceuticals, Inc.'s unaudited condensed consolidated financial statements for Q1 2021, detailing key financial statements and related notes Condensed Consolidated Balance Sheets | Metric | March 31, 2021 | December 31, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Assets | | | | Total current assets | $586.0 million | $630.4 million | | Long term marketable securities | $416.6 million | $350.4 million | | Property and equipment, net | $38.0 million | $37.8 million | | Intangible assets, net | $358.7 million | $364.3 million | | Goodwill | $77.9 million | $77.9 million | | Other assets | $30.3 million | $43.2 million | | Total assets | $1.51 billion | $1.50 billion | | Liabilities | | | | Total current liabilities | $240.8 million | $245.1 million | | Convertible notes, net | $366.0 million | $361.8 million | | Contingent consideration, long term | $46.2 million | $45.8 million | | Operating lease liabilities, long term | $28.5 million | $28.6 million | | Deferred income tax liabilities | $31.7 million | $35.2 million | | Other liabilities | $39.7 million | $42.8 million | | Total liabilities | $753.0 million | $759.2 million | | Stockholders' Equity | | | | Total stockholders' equity | $754.4 million | $744.9 million | | Total liabilities and stockholders' equity | $1.51 billion | $1.50 billion | - Total assets increased slightly from $1.50 billion at December 31, 2020, to $1.51 billion at March 31, 2021. Total liabilities decreased from $759.2 million to $753.0 million, while total stockholders' equity increased from $744.9 million to $754.4 million11 Condensed Consolidated Statements of Earnings | Metric | Three Months ended March 31, 2021 | Three Months ended March 31, 2020 | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net product sales | $128.4 million | $92.5 million | | Royalty revenues | $2.6 million | $2.5 million | | Total revenues | $130.9 million | $95.0 million | | Cost of goods sold | $15.0 million | $4.2 million | | Research and development | $34.3 million | $18.9 million | | Selling, general and administrative | $61.5 million | $41.6 million | | Amortization of intangible assets | $6.0 million | $1.3 million | | Contingent consideration expense | $1.0 million | — | | Total costs and expenses | $117.7 million | $66.0 million | | Operating earnings | $13.2 million | $29.0 million | | Interest expense | $(6.1 million) | $(5.8 million) | | Interest and other income, net | $3.8 million | $5.8 million | | Total other income (expense) | $(2.3 million) | $22 thousand | | Earnings before income taxes | $10.9 million | $29.0 million | | Income tax expense | $5.2 million | $7.5 million | | Net earnings | $5.7 million | $21.5 million | | Basic EPS | $0.11 | $0.41 | | Diluted EPS | $0.11 | $0.40 | - Net earnings decreased significantly to $5.7 million in Q1 2021 from $21.5 million in Q1 2020, primarily due to higher costs and expenses, including a substantial increase in R&D and SG&A, and lower operating earnings13 Condensed Consolidated Statements of Comprehensive Earnings | Metric | Three Months ended March 31, 2021 | Three Months ended March 31, 2020 | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net earnings | $5.7 million | $21.5 million | | Unrealized loss on marketable securities, net of tax | $(2.7 million) | $(7.6 million) | | Other comprehensive loss | $(2.7 million) | $(7.6 million) | | Comprehensive earnings | $3.0 million | $13.9 million | - Comprehensive earnings decreased from $13.9 million in Q1 2020 to $3.0 million in Q1 2021, driven by lower net earnings and a smaller unrealized loss on marketable securities15 Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric | December 31, 2020 | March 31, 2021 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Stockholders' Equity | $744.9 million | $754.4 million | | Share-based compensation | $4.4 million | $4.4 million | | Issuance of common stock | $2.2 million | $2.2 million | | Net earnings | $5.7 million | $5.7 million | | Unrealized loss on marketable securities, net of tax | $(2.7 million) | $(2.7 million) | - Total stockholders' equity increased from $744.9 million at December 31, 2020, to $754.4 million at March 31, 2021, primarily due to net earnings and share-based compensation, partially offset by unrealized losses on marketable securities18 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months ended March 31, 2021 | Three Months ended March 31, 2020 | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $36.2 million | $8.9 million | | Net cash (used in) provided by investing activities | $(71.4 million) | $35.4 million | | Net cash provided by financing activities | $2.2 million | $32 thousand | | Net change in cash and cash equivalents | $(33.0 million) | $44.4 million | | Cash and cash equivalents at end of period | $255.6 million | $225.8 million | - Net cash provided by operating activities significantly increased to $36.2 million in Q1 2021 from $8.9 million in Q1 2020. However, net cash used in investing activities increased substantially to $(71.4 million) in Q1 2021, leading to a net decrease in cash and cash equivalents of $(33.0 million) for the period21 Notes to Condensed Consolidated Financial Statements This section provides detailed explanations of Supernus Pharmaceuticals, Inc.'s business operations, significant accounting policies, acquisitions, investments, and other financial details 1. Business Organization This section outlines Supernus Pharmaceuticals, Inc.'s biopharmaceutical focus on CNS diseases, its approved treatments, and recent strategic acquisitions and agreements - Supernus Pharmaceuticals, Inc. is a biopharmaceutical company focused on CNS diseases, with approved treatments for epilepsy, migraine, ADHD, Parkinson's Disease, cervical dystonia, and chronic sialorrhea23 - In April 2021, the FDA approved Qelbree for ADHD in pediatric patients (6-17 years), with commercial availability planned for Q2 202127 - The company acquired USWM Enterprises' CNS portfolio in June 2020, adding commercial products APOKYN, XADAGO, MYOBLOC, and product candidate SPN-83028 - The company entered a Development and Option Agreement with Navitor Pharmaceuticals, Inc. in April 2020 for a Phase II clinical program for NV-5138 (SPN-820) in TRD, and acquired a 13% ownership position2967 2. Summary of Significant Accounting Policies This section details the accounting principles and policies applied in preparing the unaudited condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with SEC requirements for interim financial information and U.S. GAAP, with certain notes omitted as permitted33 - The company operates in one operating segment, primarily located in the U.S[35](index=35&type=chunk
Supernus Pharmaceuticals(SUPN) - 2021 Q1 - Quarterly Report