Supernus Pharmaceuticals(SUPN) - 2024 Q4 - Earnings Call Transcript

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$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]