SUPN - Earnings call transcript Q3 2017 | Supernus Pharmaceuticals, Inc.

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Operator

Good morning ladies and gentlemen, and welcome to Supernus Pharmaceuticals' Third Quarter 2017 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Partners, for Westwick Pharmaceuticals. of Vozzo Investor Supernus Relations Peter

You may begin.

Peter Vozzo

results Good Sabrina. release Pharmaceuticals' thank financial September discussed XX, morning close months you press after the the you, is third The for today for XXXX XXXX. Supernus and a ended for market, results. everyone, Thank the announcing three issued update these today joining quarter the Yesterday, call. of us company

Officer, Jack with Investor call Supernus' today Patrick. Khattar; being and is me Financial the Relations company's the Officer, the On Web ir.supernus.com. Chief made Chief site are Greg of via call Today's at Executive available section

Following remarks questions. by to management, we the call open will

the expect approximately of be to XX We minutes. the duration call

events and company's These forward-looking of intend Supernus' perspective as not statements and these other identified performance. involve course March current anticipate, such the reflects and the recently of of our call, may and was will, which are forward-looking annual meaning. words such X, should, quarterly the Actual be XX-K materially on August in existing XXXX. in expect, filed of the that risks make Factors results and can this plan, guarantees statements. differ Any performance uncertainties, XXXX report noted information including statements those future Form was Form may, similar trends certain XX-Q by which the XX, and on forward-looking future in XXXX, Risk on those section report may future During regarding management forward-looking words statements believe, projected most filed on from

laws. related held at recorded this may a.m. applicable the be the Time. approximately except call Supernus Please update required to discussed. over Since may by forward-looking additional on company's current the turn you November any For the statements, these is to the listening will who and announcements as SEC. now XXXX, made benefit the have of obligation I declines X:XX topics call company filings releases securities then, to Eastern X, recent of replay, and Jack. being reference most press with to the those

Jack Khattar

for quarter Good Thank us third everyone, you, the results. XXXX as and time join discuss we taking our Peter. to morning thanks

XR additional initiation and with Phase set Trokendi and the third the expansion SPN-XXX, of record provide to Oxtellar product momentum on sales. for for We sales the investigator-sponsored III support force XR, key sales in the completing are the strong quarter, continued of for the both quarter product another the pleased Other accomplishments in having disorder. include our start in program bipolar for Oxtellar the XR study with net

the continues XXXX. prescriptions over performance for for driven period by XXXX year-over-year and in IMS Oxtellar showed the demand as XX% third Total by products. quarter Our our XR solid reported of XR Trokendi be growth in to same

physician products, the acceptance XR, provide patients benefits prescriptions XX,XXX, This respective in representatives. quarter third over the both For year. expansion we additional of XX% epilepsy sales to representatives for last approximately and now were a an XX% deployed support are sales Trokendi XXX they this in prescriptions designed products totaled XR. migraine. to Oxtellar XR for This Trokendi approximately And in added last increase bring In XX the and territories. unique gain quarter, over the adoption who concludes is continue to quarter same the force to and Both Oxtellar their XR, expansion year the sales for of year. representing same XXX,XXX increase reflecting representing patient prescriptions, quarter

delivered can quarters in more of exceed opportunity XR. the robust for and sales, We three continue the the XX% for and that potential than with XR peak to million in income. Oxtellar $XXX operating XR company is believe XX% in first million $XXX Oxtellar bipolar Year-to-date, Trokendi growth in the and of revenues, of neurology XXXX,

forward and about quarter, excited the we the to in the we've momentum are seen fourth have We the year finishing been. position in ever look strongest

Moving the III we clinical our SPN-XXX, ADHD. third starting investigator held initiated on pediatric patients meeting Phase in and to with quarter, testing adolescent and and our pipeline, with in

XXX three-arm milligram ranging from two consists trials placebo-controlled trials milligram, to study We a sets milligram. current Phase ADHD and seen among ranging doses well-differentiated milligram program investigators trials, of for high of enthusiasm treatment have two level apart potential a treatment XXX adolescent four SPN-XXX for with to from III The of pediatric has the options. the that doses as being with itself XXX from XXX

level III Regarding interim both Since XXXX with to enrollment to analysis either continue SPN-XXX, mid patients for milligram label be believe placebo. dose reflects high high will open patient or in expected who We the XX into pediatric aggression in impulsive aggression. through the the enrollment of ADHD. is physicians patients development rate September from XX%, Enrollment treatment potential randomization for satisfaction for XXXX. impulsive the Phase continues SPN-XXX, trials and in a which of currently have was nearly study novel expansion

Oxtellar quarter, was disorder the initiated. in During third the investigator-sponsored XR trial for bipolar

completing that will XX on either or is six XR patients oxcarbazepine to weeks their sites. approximately trial be expect added randomized open-label with enrolled therapy. study study, We each Oxtellar of existing three among This immediate-release patient therapy

sizable about SPN-XXX XR trial. Oxtellar our proof-of-concept of consists in a in excited III opportunities testing, late-stage SPN-XXX Phase pipeline in We three and which mid-stage with now psychiatry clinical very and are

now call portfolio. details the looking will our provide performance. and Finally, quarter third who turn corporate more I strategic on assets a Greg we psychiatry neurology to on be for with operating that represent over continue development active the will side fit our

Greg Patrick

Jack, Thanks, morning good and everyone.

royalty million, quarter million respectively of included compared the in Total million, refer increase sales release $XX.X in prior $X for financial or the to revenue the to third million, of prior quarter sales XXXX Total I'm were the reminding our a $XX.X product of to quarter earnings product XX% third the after $XX.X as the to third $X.X year. quarter, Net XR increase the our XR third as net the listeners revenue revenue million, $XX.X XXXX, quarter as XXXX review $XX.X $XX.X million, results the than closed. I product were net market year of for third quarter $XXX,XXX, period. yesterday compared prior $XX,XXX As product for to of press Oxtellar $XX.X Trokendi third the XXXX of million, quarter of for XXXX and XX% Net quarter third million, were license and of the higher of to XX% compared for as million, a XXXX. year issued in sales compared period. sales

the [technical managed deductions XXs as of difficulty], root Expressed drivers to increased XXXX, aggregate the of as X% quarter. XX%, under this as the sales, of increased increase. in the compared quarter modestly percentage deductions compared payments of were price third in primary to one-time the for a to care causes. As quarter the upper over quarter deductions second gross-to-net programs, in behind third were of and Trokendi various both the gross-to-net and gross-to-net increase impact ongoing second secular quarter levels The XR patient higher due second

modestly will remain Going the for Trokendi to improve. in flat quarter expect or forward, we deductions XR fourth the gross-to-net

aggregate one-time quarter deductions third of as for gross-to-net and primarily percentage increase. XXXX XXXX, across to factors. price of mid-XXs XR as compared of this the quarter sales, allowances to the gross-to-net were adjustments quarter. the second quarter in in a gross decreased of As the as downward second Expressed behind second Oxtellar mid-XXs X% in deductions to deductions our compared net one-time to of substantially primary the variety a secular deductions were by drivers of impact offset the The decrease due the

the experienced XXXX, that will i.e., the in the revert gross-to-net as Oxtellar a deductions mid to percentage we XXs forward, gross-to-net level of second for Going sales. expect of expressed in XR deductions quarter

expressed takes deductions Moving XXs the XR will mid to both approximately gross-to-net into XXXX, Oxtellar sales gross-to-net Trokendi XX% increases. XR stable, increase of me, These Oxtellar for when percentage company remain in -- products we excuse deductions as for if price and and of a the expect XR. deductions i.e., for gross-to-net

an XXXX. period Diluted third million $X.X to same due quarter the the the mentioned net in release Phase to III tax earnings shares This diluted year. by the sales the of conjunction per quarter marketing benefit to year. in expenses XXXX and sales increase outstanding approximately recruitment trials third and year. approximately Research in share both of a clinical modest for the associated compared increase last an as quarter in same XXXX the XXXX. program $XX.X valuation increased decrease migraine XXXX, quarter trials per in is The million. of general, incurred $XX million expenses administrative the primarily from which of the $XX.X of $XX.X third favorably the was impacted share in compared $X.XX XR, the in compared tax compared the million indication product is share $X.XX of another gross-to-net quarter and million, the SPN-XXX year. is increased announced quarter period in million with third of third August resulted were $X.X third third expenses Weighted period $XX.X income year. primarily in common were is compensation in of and with normal the in variability as million XXXX prior income million million year-over-year quarter same the in for quarter share evaluation primarily expenses XXXX the of as development the selling, III XX.X% and $XX.X allowance the million improvement $XX.X This in of the research and production offset XXXX Finally, This period of of share products. earnings due administrative and for million launched Diluted increase due in materials ongoing million for by to million to patient SPN-XXX. deductions last and $XX.X in expense. general, Selling, Phase in million the with were increased against to last expenses to is income approximately was of for deferred expected in as prior per release per to were were $XX.X associated last development to average the $XX previous of the primarily and XXXX development assets expansion of in third in calls, same one promotional XX in due same over $XX.X This in be Operating compared for year. and operating XXXX based Trokendi aforementioned allowance expenses increase to to income increased partially the in same quarter net XXXX, force quarter of

company XX, million equivalents, As cash, XX, $XXX.X long-term of in XXXX, had at marketable securities September as XXXX. to the December million cash and securities, marketable $XXX.X compared

expectations follows. to XXXX, development of Net sales of the $XXX approximately development to sales the million expects million million selling, of to to income the its full-year expected both and range company the income is forth XXXX. and company and XXXX. raising million. in million million set of expenditures to expense as previously quarter and compared and fourth its The expected $XX for the fourth company $XX and in range to the quarter operating expectation as the of compared The net expense operating For $XX for and range expects $XX $XXX million in $XX research of $XX $XXX of to exceed million, million. million development research administrative million reiterating general, expenses $XX Research range products in product $XXX previously

Phase to for XXXX, to trials in company extension patient to the The recruitment at forward the SPN-XXX ultimately both SPN-XXX these and questions. now fourth patient spending, in spend back turn rate regarding operator moves SPN-XXX, or SPN-XXX, this remain anticipates Oxtellar rate company call two trials R&D will the for Phase the both to Looking for expects and as trials remain for trial the I quarterly spending the quarter-to-quarter recruiting III trials. III investigator-initiated reflecting the XR uncertainty the for of in forward. variability

Operator

Cacciatore with [Operator you. Ken Instructions] Company. of and And first Thank question from our comes Cowen the line

Your now open. line is

Ken Cacciatore

guys, thanks. Hi

guidance, you're for of appear in of would sequential Just your quarter-over-quarter a end the couple questions, that Greg, guiding decline. low it

I that seemed would why thought on then And was you just understand bit gross-to-net it the be to changes. It as a more indicated. that So quarter little would case. there to nuance trying deteriorate last be flat the know quarter-over-quarter. a

prepared so discussed remarks, I contracting of "New the that now understand you we what you And kind And Launch" is more Trokendi bit prepared of a as out nuance migraine. on And going what's support so were a just clearly so follow-up. a just have little you trying about bit remarks. you. natural XXXX; Thank into we more bit Product in to of the have done around little little nuance a describing go then on,

Greg Patrick

Okay, Ken. that's there, a questions of couple

let one changes regarding with in So bit first, take me the the clarity deductions. respect secular to little a second the gross-to-net more

growth set XX% by that emphasize script important and QX the XX% the of want are QX recent strong. of very growth. indication and from XX%, to numbers growth been most in recognize looked to very, QX clearly that prescription the is stage, QX I to in to the the strong QX sequential of from prescription And between Just I difficulty] range growth to it's since frankly migraine to [technical - think followed the I've at sequential so launch has terms XX%, QX QX extraordinarily then of

low second One facilitating which in then growth in refined achieving Or in of was that which move put place going the their of obstacles be prescription. we improve adjust And the this our forward. this company really the the second the the lowered as company greatly in as fourth will the we XXs. which forward quarter, bit mentioned quarter experience has in with in factors filling a the quarter deductions I extraordinary confidence has that we quarter the in into earlier, manner consistent to third, patients for as been continue co-pay gives of enhanced gross-to-net significant an in perhaps saw and what program support the a third program been the

you So second gross-to-net quarter, remember rebates, expected. those between run difficulty] we calculation, on those. And it's two, care bit believe, other such and also important which as to managed [technical than ran there's a I things hotter third touched

made really the program that I put up this drove we payments growth, say So the bit that quarter. perfect care Again, we prescription in managed second under facilitate or program that flat feel the we'll fourth as third control and which coupled perhaps the improve it's the would around to parameters place enhanced increase. from such, and increased to co-pay co-pay forward moving then can because we'll believe driving and plans quarter such we gross-to-net continue this refine and maintain this a in with either

it's your question net is the decline, secular operating with guiding of decline, Regarding to -- income? about to it in don't sales, with that terms a respect to clarify, believe could is you I with respect just

Ken Cacciatore

just end doing three off doing I'm of the I and subtracting guidance be Adding maybe your may lower, get but your last the wrong. low -- of math then I'm Yes, I the quarters, math XXX, the wrong.

So I apologize.

Jack Khattar

$XX million $XX that us Yes, gives around again versus million. the

you gives fourth net the in in around in million that quarter. $XX $XX third quarter versus sales the So million

Greg Patrick

$XX to in the $XX is quarter. third million be [technical should $XX it million, versus No, difficulty]

Ken Cacciatore

not total looking Yes, it. guess at was I product. revenue, I Got

can and mistake. XXX, my a similarities little larger the that. little then you. about nuance that's And II? more anything Thank on Is just between you Sorry, Phase of study, clarification just there Phase or take and differences bit a III on

Jack Khattar

started. different four seeing. that sure. to the about general. investigators we are we Phase We're standard so and program us what so of the extremely already What has ADHD gives chance but four designed patient excited We the here. about bullish in them maximum program similar are very and success really did which stated trials, the excited And trials. trials, already enrollment, be this very Yes, in trials trail, IIB different what [Technical to really difficulty] smaller

so were these seen the well. in And the product some before as study, Phase before investigators also involved of how IIB performed they've and it

Ken Cacciatore

Thank Great. you.

Operator

from And Steinberg you. will Thank with of come the next David line question the Jefferies.

line is now open. Your

David Steinberg

to -- place what A the very are want right-sized good secondly you, do more you in morning. prescriptions, in adding additions I you are gross-to-net. for opportunity in And you Thanks give a in new you or next questions, the much, sometime think of have consider just couple year? the strong is, seeing hone now sales on first you're reps will the growth the more little

the indicated XX% range. the You'd call gross-to-net in in last be that should

basis fluctuating the way that discounted control cards perhaps basically a you a discussed in number quarter-to-quarter hundred You -- either heavily And these co-pay points the basis. of scripts. and

big the third change. So QX? basis quarter. what what and now for for flat that are was you're the in about Thanks. you higher or that's before indicated quarter posted than we you'd there a down pretty gross-to-net, talking big XXX missing a such XXX trying to Still to What discrepancy here, understand, points why fourth between as

Jack Khattar

Yes, me both let Jack, hi, questions. David. This address is

On performance, the looking the with we way things sales expansion, by matter first and is that manner. in XX do always we added, approach this just reps the step-wise the force the at we

possibility a has and in there reps further investment we on see the if doing we mean, been are expand? is field absolutely. XX return So these the amazing spectacular, I could really our

We look believe scratched potential haven't we of Trokendi in surface potential of and XR and XR as is the we still Oxtellar the products. to front these at both will the because of even us, that of way

we any that's at it. any done, expansion growth the in for [indiscernible] size difficulty] two nothing to products. that. probably would further try indication [technical these just see opportunity be we always definitely of same I that We'll more So how what if than mean, we look look

to back in in I I earnings always me it calls, we and what the what around that's -- one the the the that down XX%. that. said We points, that second quarter, above make be is you up which XX% sure us basically except quarter, little in to gross-to-net, the let bit it was and for to happened Which subsequent could Regarding adjustments that about XX%. said two exactly one-time other by third gets even XX%, occurred puts what to reiterate or said pervious I modestly what or said well,

and whether here, the co-pay a rebates, happened. many it's it's play gross-to-net into the any gross-to-net, that are it's factors we intended said returns, is exactly it's one one-time that to what a deductions. exactly XX%, up XX% far a other is whether two everybody quarter. are is whether into of which the included factors whether to the what One it we as and as we what the or exactly which as then happened and before But about, is there as exactly little nervous in as of other always come what allowances, And above that So about things said, what third bit in calculation. say that for it was was pushed nervous get fluctuation two far we the it's program that points points. program, And in also enhanced

David Steinberg

above Greg be XXXX. follow-up. you it XX% fourth the a flat would said said this -- and have just that I But into I will think XX%, be

guess the math. So I'm I to understand trying

Greg Patrick

in we for around look so that's are XXXX, first think We low-XXs remember expect quarter. will the fourth it'll year And a off the all quarter now averaging a be in in XX% that we But to around it's in the with difficulty] there's, in we said quarter quarter. into So many bit or to as XXXX, forward, high-deductible third in are [technical bets in up gross-to-net, going somewhere Also quarter. XX%. either be take. the especially or flat the that it on, patients that XX% then give the declining the approximately be gross-to-nets first the plans

Operator

the you. line Stifel. next with the Annabel of question will Thank Samimy from And come

line open. now Your is

Annabel Samimy

little returns maybe the were factors what inventory the the you the when talk is guess, guess that that the have do gross-to-net question. ask my any you as capital optimize give on portfolio be for or fluctuations generally this my Apologies I fruition? can then into patients? of completely understand pipeline on patients increase access going quarter. I co-pay business co-pay access be if But typically co-pay, cash, we us the are now million separate been the about optimizing those help the in. to Are taking Thank for R&D you Also, thanks Have that you. will of move to altogether, some that question harping how still a to and Hi, that you allocation And your you, can at bit you worried which talking in have need to more. thinking development a to one-time in these a there card, given is about nice $XXX the bridge exactly or you should focused about point program, R&D between question about coming position into I and breadth migraine forward? gap

Jack Khattar

regarding details be Yes, program gross-to-net, the that on comments won't I enhanced of any making and program. the enhanced

can't I as comments I Again, or [indiscernible] on sorry point point can really half-a-point make to I'm talking fluctuations. always will or up there there believe not those a we're issue every quarter, about a So what down be program. that fine-tuning because in or this in fine-tuning are we're half-a-point, we [indiscernible]

like like go there, question pipeline that and there or get based are end these As to high things there are quarter. we into and most estimates of the went that calculations are you things estimations that as recent I in there assumptions a data went down, what returns, on your is the mean lot to every

every in somebody will me to next item tell because if item, what then make gross-to-net, well we So calculation. XX up something up and that every specific looking today items at then the I into quarter, and that continue it's little try happened and movement say end explain to to on -- that

growth and and all down. it up that extremely we're time, we're every this strong very, guidance that to behind the never at. revenue sales about continue future on such far, whether ever the in will position growth the as year have we're goes the the in and income. a when moving excited months, so And the XX% comes have operating in a as missing company, or already nine on fourth a that. the company delivered products very the that XX% and we picture This robust business, we been delivering And is here. do momentum well looking goes to gross-to-net quarter big into single company we think And we've is And are net in I as XXXX.

Annabel Samimy

I Maybe just specific follow-up can that on question.

mentioned there rebates also that You the quarter. during increased payers, were PBMs to --

across that to companies a seen in Is the be we've of rebates. should where maybe number changes our expecting going Now structure? mid-year rebate this forward, there adjustment surprise is another we that to something

Greg Patrick

is this Annabel, Yes, Greg.

So that's managed [ph] the uptick think sectoral response care in fact regarding a we payments question, And Ken's in to in gross-to-net. has that in aggregate fact to an and good in companies. been there the question that did mention shift I make I

are second that contract as and due other quarter. those in of of many third in changes, that just provisions into such our contracts, contract play. There price Some changes to protection in is also embedded came contract when changes in. in And contracts kicked those the also kick that's

in third So the forward number as have a affect in shifts the going have second at that and that might've was I escaped something I been me the gross-to-net shifts second potential quarter. we and calculation, in and that might the third between looking of plans frankly missed there when one. a that forward that of we moved quarter couple were did fact

Annabel Samimy

question. Okay. capital talk And about the allocation can maybe you

Greg Patrick

trying need of spend. group as we allocation, is to in we research look so not products constrained sure make in in our advance that of -- our can can. of marketplace our Yes, fast that certainly We the optimize terms we spend research in we're at pipeline our the that capital of appropriately, really timed I to terms both they're carefully expenditures program don't on cash do our our balance sheet. But as deliver of to terms mean to

in If see our So The this or to doest so doesn't additional projects, we that it it extent our question claims price. program in path of enough forward. the be than and do to the spending components research spending P&L plan always We try already aggregate that so sheet further the limit. modulate they any have is that found got of we fund in upward each we just balance of critical to of mean we've estimate path any think in the moderate that the critical that we one those at to those look programs be. outside, cash and able from strength going we don't

being program. a standpoint capital research from terms So whatsoever constraint about at look I we think of that our don't as in how a

Annabel Samimy

thanks. Okay,

Greg Patrick

Sure.

Operator

come And the Tanner you. Thank line the will next Bill question Cantor from of with Fitzgerald.

Your line is now open.

Bill Tanner

would straight be of and is, intermediate the taking we that get side forward, The out could would open-label positioning that? it from for ongoing, mostly curious program. study Oxtellar data or benefit path be matter of as when study? compliance the Maybe investigator going there on would that, was question. increasing second it a part one that that I bipolar to just is dosing had Trokendi? with the guess if mentioned be forward is would an Oxtellar the one Thanks would a there subsequent there Jack, for you the into indication, frequency Would the be you step? be pivotal? And a maybe path potentially lay about what I thinking effect of the

Jack Khattar

sure. Yes,

trial, Regarding us that the little controlled not bit us the by it's exact timing. completely difficult for to which predict investigator-sponsored has given it's a started,

in year. complete we about hoping are a the trial We can

waiting our trial concept see necessarily to the area. clearly, investigative we trial us of better to the to for this effort by this promotional your do, open-label, build allow really advantages we it could for all of advantages part program, the bipolar way III a Now, potentially in related the going be our doing to completed. second quarter, design mid-stage, can is trying III and till given look program, on will to that are program parameters we we we also Phase what that potential can Bill, not what's is the And choose speak, the reason end investigator hopefully so proof Phase on in to that as the stop use certain later potential and to into

we given clearly its we bipolar But clearly we why that's epilepsy expect whether or doing will its patients. that mean, expect program. it's be side to pharmacokinetic the Phase profile, XR apply Oxtellar patients Now, effect to potential improvement. III for I

the it that So III will will investigator moving under be Phase we differentiation And XXX(b)(X) us the for to Phase much hopefully we at for strategy. trials that III be better will two looking design regulatory into forward. specific can the the required parameters give be again, certain a registration trial

Bill Tanner

And then how the sort from same position you there, along the those just relative studies the the on maybe data helpful. other that's drug about SPN-XXX to think of as studies back might non-stimulants? Phase Okay, III vein

Jack Khattar

with the profile we that excitement has company did this I SPN-XXX, the in and we've that have and when the also with Phase IIA Phase the and proof we of far product efficacy on seen the is pediatric you far formulation, product, everyone, clearly population. product Yes, both Phase of feel in IIA shown we whatever populations, in us the study immediate-release that on so the behind the population remind which IIB. in lot this concept data so given have, this adult a has

view. in was point signal that we these efficacy from So we've both strong got single size populations. of The despite studies works very of an the the drug proven patient

known that, being stimulants with of the safety a profile all marketplace. differentiate as hoping the for So what tolerability that as further tolerability about the SG&A onset difficulty] trial of to the could and us is marketplace to Phase signal on so quicker well non-stimulant clearly that promise the far non-stimulus lots Viloxazine see the than a also with on obviously potentially on molecule, an the as the that we've seen And the versus potentially the product known even and in action [technical that we're of far will which a addition then on safety III and the differentiation marketplace. so as seen be the magnitude of holds lot as for of in other

for to looking stimulant been issues hoping safety the abuse we because they that phase worked as that been continue been effective far prescriptions know of with what about And that and tolerability the general, not marketplace. better other has product as has in the of a with forth. and dominate the and on and we're stimulants versus the them holy of all, that that profile the the very than all have come we've safety a all in gold tolerability have see XX% in has a all the that grail highly products market well been much well-known this truly so and standard that's they and why to So

Bill Tanner

Got it.

Okay, thanks very much.

Jack Khattar

Sure.

Operator

John with you. from next of SunTrust. the come And the line question Boris Thank will

open. line is now Your

John Boris

what Thanks to maybe phase that what would for question the to when next to versus the within just that, you've SPN-XXX third appetite sales maybe question with some on level? for to another see to if you and Can filled sizing Second be taking that? of Jack, final has And like on percent you enrollment, do opt that add average results. some it they force; average with has and just the out. a force at commentary percent denied questions, sales payment within And you've up sounds just co-pay on what you've drugstore, eliminated actually of about potentially previously edition of XX added and impact trial the migraine out sales to is is what give the enrollment essentially then currently one about do and seen can trial were of give some drug congrats you in enrolled? the pay? that that the language have need do the force since the build at you of the patient they reps, commentary the prescriptions there's some the had Thanks. doses that's show just on of what what are you just to pocket that of enrolled, percent remove store you

Jack Khattar

sure. Yes,

co-pay On card. co-pay is the card mean, first question, I zero our

to So, or any that walks the out of specific I'm not with comments obviously going reversals covered as with regarding plans denials zero the all that these are products. or payment with on make medications prescription. any our patient the

decision, want very right were that will expand take we point say it's just were to it's in comment, we year [technical happen, we we'll to at probably again decision as to the don't as will we if people things next right the make Regarding the have based the is I if but sales we expansion we'll idea mean at force this that time I made will, expansion, sure expansion similar the be they difficulty] size recent -- given this just because we data now. an made, on these look at

far think still are most. for time we analysis. the last X. said get around It on somewhere I in the since in few that to have two did XX-XX the and finally that then we IRD as changes It's we mean probably we XX% took Tier X So, Tier percentage, weeks been these as and I interim I studies enrollment mean XXX approvals XX% And randomizing know I did. the enrollment,

probably XX%, the still the that XX%, XX% point. it's XX%, wise this percentage guessing, and equals versus at So, to I'm XX% in

John Boris

Thanks.

Operator

you. come Amsellem from with will And the David question Jaffray. the of next Piper Thank line

now Your open. is line

David Amsellem

Thanks.

may you of you this; joined I ahead the psychiatric-focus a the about So XXX. deploy talked just where of talking but have launch so then addressed in force apologize, to development, you and can trying sales have I products business or about add XXX past product late,

secondly then deal in near-term? what much how can then, that how And for? I it terms as that indication. antidepressant, you're suggested So, you've XXX regarding approved historically look and you oversees in about know a size, the talk and is of may to is we as you're a looking And that believe at you aggressive of priority depression then potential be willing an

vein, could the still is on or other are board? So XXX beyond that Thanks. table, ADHD for in there or the something on be drawing is that indications that depression that

Jack Khattar

sure. Yes,

launch still portfolio, so commercial at us. for It a so priority priorities which as once pretty we has products, psychiatry, is be absolutely months for We're looking are now XXX, high and reload finish and as to as activity can well. to just to same XX been, them potentially before finish far both. we our or we for, XXX much closer maybe our the continue XXX anything priority next Regarding high line at we're are as David, even BD, the the we the looking because also and we're and looking get neurology, kind between expect It on will at not pipeline pipeline XXX and assets us. in the of

So, all as more. on a keeps XXX -- million on continue these is point for look finally up of we psychiatry. size to cash and what again million earlier difficulty] position to has like exactly it XXX is or deals I to XXX pipeline resort both if in afraid a maybe anything kind given of the far then our view, could transaction exactly mean previous neurology equity a calls, as will said that an we could mean as we From SPN-XXX. and different not potentially more be last I and deal we at, [technical building that to be opportunities kind structure us using something used product to it's finance could And that's in our range that be SPN-XXX, fund very do allow certain of the in in transformational of to the we you're well we this. money a And a anti-depression debt million right, raising strategic in something as as do dollar us have as are strategic, as there

far as the will because SPN-XXX. to sympathize as on a of work process, is API speak, good the preclinical far everything so we've that done, we to the up of still XXX that So on the formulation that done an work SPN-XXX scale project have act we've gone lot so apply

product, So, inhibitor an bit an been action a but general It end-to-end continue as has norepinephrine opportunity a far, the issue even is is priority, our reuptake as high no resources a more that differentiated opportunity to fairly so market. it with products little a depression does of as project us. is a of not be also a mechanisms anti-depression focusing for it's there the SPN-XXX because by and market such in in that

So, development. potential there a opportunity us be continues for future for to

other about things, as any far other that indications at have looked can but nothing for As XXX, point. we we this talk at

David Amsellem

Thanks.

Operator

next the line Ken comes the from with And Instructions] question [Operator of Trbovich Janney. you. Thanks

open. is now line Your

Ken Trbovich

sales the of you certainly ramped was had a us here wondering force Trokendi writers the high of that that. benefit calling maybe I from expect avoided lot if could Jack, you seems It of progress sense how were dots the benefit you for Thanks. for a on you with you've migraine that to expansion. give that before the and to topiramate had obviously that got

Now a I this forward. going get point better you of am from just anticipate what to sense trying

Jack Khattar

to point the we've a view, adding clearly, been several And who for so very very, for specialists they experienced universal are difficulty] migraines. users of physician high treating all [technical prescribers all and due pointed physicians specialists. Yes, or One topiramate migraines And is that -- universe extraordinary a prophylaxis. know headaches, a who in has migraine heavy growth Trokendi are out with therefore is day headache far really all that new sure. what of in factors. leading is the and migraine physicians basically very of are and which topiramate, These do the molecule are we you

them at with the to as have visits far promoting been, be has have as that physician far physicians are as and to and to you typically product them, for least times in a difficulty] we of a behavior. you XX new our we in So of significant in number X promote physicians our in to physician to frequency know, added universe, audience, experience will continue change as who [technical

don't a behind think this point. the here benefit of at of being onboard And we physicians. I have see seen to growth tremendous these we So continue opportunity full these physicians

expanded clinical for the the XR they have these have marketplace. was label, itself is of having to as experience practice. which well Trokendi trials and exactly got use seen so really with the this within growth and these universal are out the have every retrospective physicians, indication there we physicians clinical reported recently versus heavily benefits other how not clinical practice Trokendi XR we in on release the what addition their review. real Trokendi have involved In to And That's they life who And seen far Trokendi the they of is in Yes, what's data the chart to physicians. with that's by feeding responding patients, neurologist the and the had immediate since is before tremendous migraine, but patients -- the is as amazing is of the XR themselves use XR. have we happening by what something topiramate. used seeing what's in also call prescribing They published are in this experiencing with are

excited continue to as building we So in also all see. the we so expansion seen the XR us working that that this expansion give to could well. about that and the has sales Clearly, XR, said, in also far are building synergistically the force clearly expect to support very kind to in as what force XR, Oxtellar been behind continue more momentum sales also to designed Oxtellar prescription the the of growth and momentum in but behind was Trokendi do we because

prescriptions we as the possibility could to are that of also. So about Oxtellar also do expansion that excited XR

Ken Trbovich

Thank you.

Operator

next David you. the line with Buck And question comes from Thank of FBR. the

now open. is line Your

David Buck

Yes, thanks.

delay tax kick-in? are quarter how First enrollment? SPN-XXX increases? if and -- talk for paid a rate see little from price talked about Thanks. a you you there little terms III talk a outside? that price of forward? also Phase in now the they and is finally, for when in should GAAP paid? can [ph] question a expecting the whack you to bit that Greg, Is about change to of how all? excited the on for be we little taxes be about thinking actual we tax can there of going about that at about much you should what fourth the percentage pace then, for actually investors cash Jack, a in how being rate as And basis, the just you look capturing And investigator at Just talk XXXX can you a bit how And You before actually increases going cash start? Second, bit meetings

Jack Khattar

Yes.

speedy For SPN-XXX trials. trials, about the trials, when am enrollment actually our we II talking very patients we strong very in I of and did the previous Phase had

that So, why were of physicians reviewing excited that is really sites Phase some behind of are the in as reasons a the also well. same lot IIb the trial

So, studies. They results excitement patients these in product. with II Phase physicians the have the about enrolled have the the that seen these seen they have

excitement experience they that carried enthusiasm I about am So and all really the from had is that the talking trials. over in previous

were So if we is domain Phase is different certainly program. expect us compare very known help the here. ADHD clearly SPN-XXX, very III fairly a this with some with of to straightforward. truly Again trials are area. I to These that

or have don't complications that had XXX. some have of we protocols You complex with the

So good and for enrollment these have behind high we certainly trials. fairly a strong hopes

on any really As far timing extent tax comments or Greg as the question. to price But, respond tell make of increase, I'll increases. price can't

Greg Patrick

Medicaid. of Medicaid comment that bigger the to bit actually let's because Oxtellar something XX% David, the XR has price because the of Jack's about XX% increase of to to half price the further a for probably Trokendi with impact just is And increases been for footprint. effectively. number company say, of It pushed around That historically Right. to through closer footprint XR -- to increases, of gets losing Medicaid small due

number in cash for largely you I front now. don't right the NOLs can me the rate, the for the -- shielded [technical our quarter, I tax the year. third that of tax Regarding difficulty] out in by of use have dig

a offset statutory is bit for favorable tax As R&D. our rate credits we've said, XX%. That's by some

I would year effective an up of And as tax that So rate expect to XX%. well. next hold about

-- to can tax that this is completely in with absent going course, completely re-landscape on Of respect area. is all reforms Washington anything

David Buck

with about price question, forward I want protection. That's change mentioned wasn't know going care follow-up, If managed talk don't I the to you Greg, increases. but the could with price

So in or the the and both price saw actually you quarter in products, whether was from I any you from gross-to-net did whether that you was which third had other benefit items? offset curious increases

Greg Patrick

of Yes. at impact -- that and for Yes, do we aggregate good do X.X% put out increase some protection into price that managed June. care is Yes, No, care of X.X% that we of have a point. the they end that's benefit the an a place. see price of see programs programs in piece -- because have of the in managed been washed programs

behave to Medicaid. starting a is care like bit managed So,

little exactly In the different. price points are bit Medicaid, except fact it behaves a like

impact see at in fluctuations yes, in due fees, quarter. do benefit mentioned when calculation gross-to-net price service aggregate, here XR I administrative care. an the we and Trokendi higher call of gross-to-net look in to There quarter we So levels a protection for was to over as from fees, managed

David Buck

just XR XR And growth one final prescription or if have been you million quarter missed what higher. sneak it third been benefit, look $X probably the you. what could some Got the have I would should Trokendi $X if is million and for probably in, so to to -- X you Trokendi X in price

third any there this quarter? is the gross-to-net for change issue So was inventory all or

Greg Patrick

would as a I say was the impacts gross-to-net There little well million a the it's inventory increase. one say some was is It that that of impact bit can there calculate of of to referred, we an but and probably $X.X. Jack majority sector as

David Buck

Okay, thank you.

Greg Patrick

You're welcome.

Operator

now like the Officer, conference Jack remarks. Chief concludes back this for to Khattar, I turn today's Executive session. gentlemen, closing question-and-answer and Ladies to Mr. over would

Jack Khattar

quarter has with Supernus strong delivered several growth another you. positive Thank accomplishments.

well very launch for treatment indication for in leading has plans the We the far on migraine the our become and of to set XR prophylaxis about excited are continue migraine. stage The XXXX. so a to execute Trokendi our progress of

you Our continue we growth our strong joining to in morning. continued everyone Oxtellar this recent expansion growth robust including look in put us for on to a to progress. XXXX of forward position sales XR beyond. behind the deliver XR Thank and brands plans our and for Trokendi will force us updating you both And

Operator

in program. the conclude conference. does today's participating thank Ladies gentlemen, for This and

a all Everyone may day. You great disconnect. have

Supernus Pharmaceuticals (SUPN) 7 Nov 172017 Q3 Earnings call transcript