Supernus Pharmaceuticals(US:SUPN)2022-08-07 12:10Financial Data and Key Metrics Changes - Total revenues for the first half of 2022 were $322.6 million, an 18% increase compared to the same period last year [7][25] - Adjusted non-GAAP operating earnings for the first half of 2022 were $65.7 million, a 5% increase over the first half of last year [7][29] - Total revenue for the second quarter of 2022 was $170.1 million, a 20% increase compared to $141.3 million in the same quarter last year [20] - GAAP net earnings for the second quarter of 2022 were $7.9 million, or $0.14 per diluted share, compared to $23.7 million, or $0.43 per diluted share in the same period last year [24] Business Line Data and Key Metrics Changes - Qelbree prescriptions reached 62,938 in Q2 2022, a 33% increase compared to Q1 2022, with June prescriptions at 23,403, the highest monthly total since launch [10] - GOCOVRI net sales for Q2 2022 were $24.7 million, a 23% increase compared to $20.1 million in Q2 2021 [12] - Oxtellar XR net product sales were $30 million, a 20% increase compared to the same period last year [16] - Trokendi XR net product sales were approximately $72 million, down from $79 million last year [16] Market Data and Key Metrics Changes - The adult ADHD market, targeted by Qelbree, represents approximately 68% of total market prescriptions and is growing faster than the pediatric market [8][9] - The ADHD market has been growing at a faster rate than previously expected, indicating a significant opportunity for Qelbree [44] Company Strategy and Development Direction - The company is focusing on transitioning from legacy products to growth products, with significant investment in Qelbree and its launch activities [7] - The company plans to increase commercial spending in Q3 2022 to support Qelbree's adult launch and prepare for the back-to-school season [11] - The company is actively seeking strategic opportunities for future growth and leadership in the CNS market [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Qelbree's growth momentum and the upcoming back-to-school season [50] - The company reiterated its financial guidance for 2022, expecting total revenues to range from $640 million to $680 million [30] - Management highlighted the importance of Qelbree and GOCOVRI's growth as top priorities [50] Other Important Information - The company is preparing for the commercial launch of SPN-830 in early 2023, pending FDA approval [13] - The company adopted a new accounting standard affecting the treatment of convertible debt instruments, impacting diluted EPS calculations [24] Q&A Session Summary Question: Can you discuss Qelbree's gross to net and contracting activities with PBMs? - Management indicated that the gross to net is currently in the low 60s and aims for 50% to 55% by year-end, with ongoing negotiations with PBMs [35][36] Question: What are the expectations for Trokendi's erosion upon generic market formation? - Management anticipates a 90% erosion over 12 months for Trokendi, typical for heavily retail products, and will provide more clarity as generics enter the market [37][38] Question: What is the market potential for Qelbree? - Management believes Qelbree could capture 5% to 10% market share, translating to a $1 billion opportunity, based on historical data from similar products [44][45] Question: How does the apomorphine pump compare to DUOPA? - The apomorphine pump is aimed at advanced Parkinson's patients needing continuous infusion, positioned before invasive procedures like deep brain stimulation [46][48]