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.

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $192.1 million, up from $175.7 million in the same quarter last year, representing a 25% increase [10] - Net product sales were $168.5 million, with collaboration revenues from Zurzuvae at $20.2 million and other revenues at $3.4 million [10] - GAAP net loss was $45.1 million for Q3 2025, compared to a net income of $38.5 million in the same quarter last year [12] - Adjusted operating earnings on a non-GAAP basis were $41.9 million, down from $67.7 million in the same quarter of the prior year [12] - For the nine months ended September 30, 2025, total revenues were $507.4 million, compared to $487.7 million in the same period last year [14] Business Line Data and Key Metrics Changes - Onapco generated net sales of $6.8 million in Q3 2025, a significant increase from $1.6 million in Q2 2025 [4] - Zurzuvae collaboration revenue was $20.2 million, reflecting a 150% increase compared to the same period in 2024 [5] - Qelbree experienced a 23% growth in prescriptions and a 31% increase in net sales compared to the same period last year [6] - Gocovri's net sales grew by 15% in Q3 2025 compared to the same period last year [7] Market Data and Key Metrics Changes - The total ADHD market grew by 12% in prescriptions in Q3 2025 compared to Q3 2024, with adult segment prescriptions growing by 16% [6] - Pediatric prescriptions for Qelbree grew by 19% in Q3 2025 compared to the same period last year [7] Company Strategy and Development Direction - The company is focused on integrating Sage and expects potential synergies of up to $200 million annually by mid-2026 [6] - Corporate development remains a priority, with a focus on additional strategic opportunities to strengthen growth in CNS [8] - The company aims to position itself as a long-term growth entity while generating strong cash flows through an expanded product portfolio [75] Management's Comments on Operating Environment and Future Outlook - Management noted strong operating results driven by growth products and expressed commitment to resolving supply constraints for Onapco [4][5] - The integration of Sage is on track for completion by year-end, with expectations for continued revenue growth [6][15] - Management updated full-year 2025 revenue guidance to $685-$705 million, reflecting strong performance in the first nine months [15] Other Important Information - The company had approximately $281 million in cash and equivalents as of September 30, 2025, down from $454 million at the end of 2024 [14] - The balance sheet remains strong with no debt, providing financial flexibility for potential M&A opportunities [14] Q&A Session Summary Question: Onapco's strong start and potential patient demand - Management indicated that Onapco exceeded expectations in demand, but supply constraints limited the ability to meet all patient needs [18][19] Question: Expectations for Q4 performance - Management stated that the situation is fluid, making it difficult to predict Q4 performance relative to Q3 [23][24] Question: Rate limiting steps for Onapco supply - Management identified capacity issues related to cartridge filling as the main constraint and is working to resolve it [29][33] Question: Pricing expectations for Onapco - Management expects the annual cost for a patient to be around $105,000, with gross to net deductions to be clarified in future quarters [47][48] Question: Expansion into women's health - Management expressed interest in exploring acquisitions in women's health and other synergistic areas following the Sage acquisition [49][50]

Core Insights - Supernus Pharmaceuticals reported strong operating results for Q3 2025, driven by growth from its key products Qelbree, GOCOVRI, and collaboration revenue from ZURZUVAE, alongside a promising launch of ONAPGO [2][5]. Financial Performance - Combined revenues from the four growth products increased by 52% to $149.2 million in Q3 2025 compared to Q3 2024, contributing to total revenues of $192.1 million, a 9% increase year-over-year [5][9]. - The company completed the acquisition of Sage Therapeutics on July 31, 2025, which is expected to enhance its product portfolio [5]. - Cash, cash equivalents, and current marketable securities stood at approximately $281.2 million as of September 30, 2025 [5][15]. Product Highlights - ONAPGO generated net product sales of $6.8 million in its first full quarter post-launch, with over 1,300 enrollment forms submitted by prescribers [6]. - Collaboration revenue from ZURZUVAE was $20.2 million in Q3 2025, reflecting a 150% increase in U.S. sales compared to Q3 2024 [6][5]. - Qelbree's net sales rose by 31% to $81.4 million, while GOCOVRI's net sales increased by 15% to $40.8 million in Q3 2025 [6][5]. Product Pipeline - SPN-817, a novel AChE inhibitor for epilepsy, is currently in a Phase 2b study with an enrollment target of approximately 258 adult patients [4]. - SPN-820, aimed at treating major depressive disorder, is expected to initiate a Phase 2b trial by the end of 2025 [7]. - SPN-443, a novel stimulant for ADHD, is set to begin a Phase 1 study in 2026 [7]. Financial Guidance - The company updated its full-year 2025 revenue guidance to $685 - $705 million, reflecting strong performance in the first nine months [12]. - Adjusted operating earnings guidance for 2025 has been raised to $125 - $145 million [12].

Core Insights - The biotech sector is experiencing significant momentum, with many clinical-stage and commercial biopharma stocks reaching new 52-week highs due to breakthrough trial data, strategic deals, and earnings surprises [1] Company Summaries - **Metsera Inc. (MTSR)**: A clinical-stage biopharmaceutical company focused on developing hormone analog peptides for obesity and related metabolic diseases. Recently, Novo Nordisk made a $9 billion unsolicited acquisition proposal, which Metsera's board considers superior to its existing agreement with Pfizer [2][3]. Metsera announced positive Phase 2b results for its GLP-1 receptor agonist MET-097i, showing up to 14.1% weight loss after 28 weeks, supporting Phase 3 initiation in late 2025 [4]. The stock rose from $32.35 to a 52-week high of $66.10, a gain of 104.3% [5]. - **Indivior Plc (INDV)**: Develops buprenorphine-based therapies for opioid dependence. The company reported Q3 net income of $42 million, up from $22 million a year ago, with adjusted earnings of $93 million, exceeding Wall Street's expectations [6][7]. The stock increased from $20.86 to a 52-week high of $30.55, reflecting a 46.5% gain [7]. - **Insmed Inc. (INSM)**: Focused on therapies for serious and rare diseases, Insmed reported a Q3 net loss of $370 million but saw net product revenue rise to $142.3 million from $93.4 million last year [8][9]. The company raised its full-year 2025 revenue guidance for ARIKAYCE to $420 million - $430 million, indicating 15% - 18% growth year-over-year [10]. The stock surged from $76.54 to a 52-week high of $194.70, marking a 154.4% gain [10]. - **Ventyx Biosciences Inc. (VTYX)**: A clinical-stage biotech company developing therapies for autoimmune and neurodegenerative diseases. Ventyx reported positive Phase 2 results for its NLRP3 inhibitor VTX3232, showing strong safety and tolerability [11][13]. The stock rose from $3.01 to a 52-week high of $8.52, a gain of over 183% [14]. - **Inhibrx Biosciences Inc. (INBX)**: Focuses on oncology and rare diseases, announcing positive topline results from its ChonDRAgon study for ozekibart in chondrosarcoma [15]. The stock increased from $18.35 to a 52-week high of $83.78, representing a gain of 356.6% [16]. - **ABIVAX Société Anonyme (ABVX)**: Developing therapies for chronic inflammatory diseases, ABIVAX presented positive Phase 3 data for obefazimod in ulcerative colitis [17]. The stock rose from $7.83 to an all-time high of $106.73, marking a significant gain of 1263% [18]. - **Arrowhead Pharmaceuticals Inc. (ARWR)**: Developing RNAi-based therapies, Arrowhead finalized a licensing agreement with Novartis for ARO-SNCA, with financial terms including a $200 million upfront payment [19][20][21]. The stock increased from $29.70 to a 52-week high of $43.33, representing a gain of over 45% [21]. - **Kodiak Sciences Inc. (KOD)**: Focused on retinal diseases, Kodiak announced positive Phase 1b data for KSI-101, showing significant vision improvements [22][23][24]. The stock climbed from $8.98 to a 52-week high of $21.17, delivering a 135.7% gain [22]. - **Arcutis Biotherapeutics Inc. (ARQT)**: Focused on dermatological treatments, Arcutis reported Q3 net income of $7.4 million, a turnaround from a net loss last year, with revenue up 122% year-over-year [25][26]. The stock rose from $14.99 to a 52-week high of $27.08, representing a gain of over 80% [27]. - **Maze Therapeutics Inc. (MAZE)**: Developing precision therapies for various diseases, Maze announced positive Phase 1 results for MZE782 and secured $150 million in a private placement [28][29]. The stock rose from $11.21 to a new 52-week high of $34.29, returning a gain of 206% [29]. - **Supernus Pharmaceuticals Inc. (SUPN)**: Focused on CNS disorders, Supernus is expected to report Q3 earnings of $0.82 per share and revenue of $180.22 million [30][31]. The stock increased from $38.21 to a 52-week high of $57.65, representing a gain of over 50% [31].

Summary of Supernus Pharmaceuticals (SUPN) Conference Call Company Overview - Supernus Pharmaceuticals is a CNS-focused biopharmaceutical company with a portfolio of about eight to nine products on the market [2][3] - The company is profitable and has a clean balance sheet, recently completing the acquisition of Sage Therapeutics [2][3] - Supernus has transitioned from the loss of exclusivity on two legacy products and is now in a re-accelerated growth phase driven by key products like Qelbree, Gocovri, Onapgo, and ZURZUVAE [3] Key Products and Market Insights Qelbree (ADHD Treatment) - Qelbree is a novel non-stimulant ADHD medication that works as early as week one, addressing a significant market need for effective non-stimulant options [7][8] - The ADHD market consists of approximately 100 million prescriptions annually, with Supernus currently holding less than 2% market share, indicating substantial growth potential [8][19] - The adult segment represents 67% of the ADHD market, and Supernus has seen growth in this segment, with 35% of their business coming from adults [18][19] - Qelbree has shown a growth rate of 20% plus, with recent data indicating a 25-26% growth during the back-to-school season [18][19] Onapgo (Parkinson's Treatment) - Onapgo is a new continuous infusion device for apomorphine, launched in April, aimed at treating off episodes in Parkinson's patients [23][24] - The device has received positive initial responses, and its market potential is still being evaluated, with estimates ranging from $200 to $300 million [29][30] - The product is designed for advanced patients but may also be used for earlier-stage patients, which could expand its market opportunity [29][30] ZURZUVAE (Postpartum Depression) - ZURZUVAE is the first oral medication approved for postpartum depression (PPD), a condition affecting 1 in 7 women [31] - There is a significant lack of awareness and education regarding PPD, with only about 40% of women diagnosed over the years [31][32] - Supernus is actively working on educating healthcare providers and patients about PPD, emphasizing the importance of screening and diagnosis [32][38] Industry Dynamics and Challenges - The ADHD treatment landscape has historically relied on stimulants, which do not work for 15-30% of patients, creating a demand for effective non-stimulant alternatives [9][10] - In the Parkinson's space, approximately 90-95% of patients experience off episodes after five years of diagnosis, highlighting the need for effective treatments [22][25] - The company is addressing the stigma around ADHD and PPD through influencer partnerships and educational initiatives [21][38] Conclusion - Supernus Pharmaceuticals is positioned for significant growth with its innovative product offerings in ADHD, Parkinson's, and postpartum depression - The company is focused on expanding its market share and improving patient outcomes through education and effective treatment options, indicating a strong potential for future success in the biopharmaceutical industry [3][19][31]

Core Insights - Supernus Pharmaceuticals reported $165.45 million in revenue for Q2 2025, a year-over-year decline of 1.7% but exceeding the Zacks Consensus Estimate of $154.14 million by 7.34% [1] - The company achieved an EPS of $0.91, significantly higher than the $0.36 from the previous year, resulting in an EPS surprise of 93.62% compared to the consensus estimate of $0.47 [1] Revenue Breakdown - Trokendi XR generated $11.2 million in net product sales, surpassing the average estimate of $9.74 million, but reflecting a year-over-year decline of 34.5% [4] - Oxtellar XR reported $11.6 million in net product sales, exceeding the estimated $8.43 million, with a significant year-over-year decrease of 60.7% [4] - Qelbree achieved $77.6 million in net product sales, outperforming the $71.25 million estimate, marking a year-over-year increase of 30.6% [4] - Total net product sales amounted to $158 million, above the average estimate of $148.32 million, but showing a year-over-year decline of 2.8% [4] - Royalty revenues reached $7.46 million, exceeding the estimated $5.33 million, with a year-over-year increase of 28.6% [4] - GOCOVRI net product sales were $36.7 million, surpassing the $33.51 million estimate, reflecting a year-over-year increase of 15.8% [4] - Other net product sales totaled $6.5 million, below the estimated $8.21 million, with a year-over-year decline of 13.3% [4] - APOKYN generated $12.8 million in net product sales, below the average estimate of $15.6 million, with a year-over-year decrease of 26% [4] Stock Performance - Supernus shares have returned +17.8% over the past month, significantly outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Supernus Pharmaceuticals reported strong operating performance in Q2 2025, driven by significant sales growth of Qelbree and GOCOVRI, which together accounted for 72% of total net sales [2][5] - The company completed the acquisition of Sage Therapeutics on July 31, 2025, enhancing its portfolio in neuropsychiatric conditions with the innovative product ZURZUVAE and a novel CNS discovery platform [3][5] - Supernus is focused on the launch of ONAPGO and the integration of Sage Therapeutics while continuing to drive growth from existing products [2][3] Financial Performance - Qelbree net sales increased by 31% year-over-year to $77.6 million in Q2 2025, with total sales for the first half of 2025 reaching $142.3 million [5][11] - GOCOVRI net sales rose by 16% year-over-year to $36.7 million in Q2 2025, totaling $67.4 million for the first half of 2025 [5][11] - Total revenues for Q2 2025 were $165.5 million, a slight decrease from $168.3 million in Q2 2024, while total revenues for the first half of 2025 were $315.3 million, up from $312.0 million in the same period last year [11][12] Product Pipeline and Developments - The company is conducting a Phase 2b study for SPN-817, a novel AChE inhibitor for epilepsy, with a targeted enrollment of approximately 258 patients [7] - SPN-820, a novel molecule for depression, is set to enter a Phase 2b trial by the end of 2025, targeting around 200 adults with major depressive disorder [8] - SPN-443, a novel stimulant for ADHD/CNS, has completed a Phase 1 pharmacokinetic study, with plans to disclose a lead indication by the end of 2025 [9] Guidance and Future Outlook - Supernus updated its full-year 2025 revenue guidance to $670 - $700 million, reflecting strong first-half performance and the impact of the Sage acquisition [13][20] - The company anticipates combined R&D and SG&A expenses to be between $505 - $530 million for the year [13] - Adjusted operating earnings guidance for 2025 is projected to be between $105 - $135 million, consistent with previous expectations [13][37]

Core Viewpoint - The acquisition of Sage Therapeutics by Supernus Pharmaceuticals enhances its position in neuropsychiatric conditions, introducing the innovative product ZURZUVAE® and a new CNS discovery platform, which is expected to drive revenue and cash flow growth while diversifying the revenue base [1][2]. Acquisition Details - Supernus completed the acquisition of Sage for $8.50 per share in cash, plus a contingent value right (CVR) that could yield up to an additional $3.50 per share based on specific milestones [3][4]. - A total of 36,313,509 shares, representing approximately 58% of Sage's outstanding shares, were validly tendered in the offer [10]. Strategic Rationale - The acquisition adds a significant fourth growth product to Supernus's portfolio, expected to be accretive in 2026 due to anticipated cost synergies of up to $200 million annually [2][7]. - ZURZUVAE is the first FDA-approved oral medication for postpartum depression, which strengthens Supernus's psychiatry portfolio [7]. Milestone Payments - The CVR includes milestone payments based on ZURZUVAE's commercial success, including: - $0.50 per CVR upon the first commercial sale in Japan by June 30, 2026 [5]. - $1.00 per CVR if U.S. net sales reach $250 million by December 31, 2027 [6]. - $1.00 per CVR if U.S. net sales reach $300 million by December 31, 2028 [8]. - $1.00 per CVR if U.S. net sales reach $375 million by December 31, 2030 [8]. Company Overview - Supernus Pharmaceuticals focuses on developing and commercializing products for CNS diseases, with a diverse portfolio that includes treatments for ADHD, Parkinson's disease, postpartum depression, and more [13][14].

Company Overview - Supernus Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases [4] - 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 [5] Upcoming Financial Results - The company expects to report financial and business results for the second quarter of 2025 after the market closes on August 5, 2025 [1] - A conference call will be hosted by the President and CEO, Jack Khattar, and Senior Vice President and CFO, Tim Dec, on August 5, 2025, at 4:30 p.m. ET to present these results [2] Investor Relations - A live webcast of the conference call will be accessible on the company's Investor Relations website [2] - Participants can pre-register for the call and will receive a dial-in number with a personalized conference code [3]

Acquisition Overview - Supernus Pharmaceuticals is acquiring Sage Therapeutics, Inc for an offer price of $8.50 per share in cash at closing[9] - A contingent value right (CVR) of up to $3.50 per share is payable based on ZURZUVAE U S net sales milestones and commercialization in Japan[9] - $1.00 per share if ZURZUVAE U S net sales reach $250 million or more by YE 2027[9] - $1.00 per share if ZURZUVAE U S net sales reach $300 million or more by YE 2028[9] - $1.00 per share if ZURZUVAE U S net sales reach $375 million or more by YE 2030[9] - $0.50 per share at commercialization in Japan by June 30, 2026[9] - The equity value at closing is $561 million, with a total potential value of up to approximately $795 million[9] - The acquisition is expected to close in Q3 2025[9] Financial Impact and Synergies - The acquisition is expected to be significantly accretive to adjusted operating income (non-GAAP), operating income, and EPS in 2026[9, 11] - Strong fit with existing Supernus infrastructure yields up to $200 million in potential synergies on an annual basis[9, 11] - The transaction will be financed through cash on the balance sheet[9] ZURZUVAE and Market Opportunity - ZURZUVAE is the first and only oral treatment specifically indicated for the treatment of women with PPD (Postpartum Depression)[12] - Approximately 500,000 new women experience symptoms of PPD each year, with approximately 175,000 diagnosed and approximately 100,000 treated[19] - ZURZUVAE demonstrated statistically significant improvement in depressive symptoms vs placebo at day 15 following a 14-day treatment course in clinical trials[12] Revenue and Growth - ZURZUVAE U S collaboration revenue has shown growth since launch, with Q1 2025 reaching $13.8 million[22] - This represents 123% year-over-year growth and 21% quarter-over-quarter growth[22]