SUPN - Earnings call transcript Q2 2018 | Supernus Pharmaceuticals, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Supernus Pharmaceuticals’ Second Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to Peter Vozzo, Westwicke Partners, Investor Relations for Supernus Pharmaceuticals.

begin. may You

Peter Vozzo

market, Good us Sonya. financial and you of thank conference release a Thank these announcing for morning, Supernus joining results. the close the today Yesterday, XXXX company Pharmaceuticals’ for issued call. press you, after everyone, the second results quarter

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

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

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

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

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

Jack Khattar

products. of results. and Starting morning, continued on to we highlights, financial our with time quarter our Good XX% of this quarter XX%, Trokendi join net and of record an another million, per of XX% in increase and thanks prescriptions million, second and the share increase net we continued income the last for commercial increase diluted per to you, an new Oxtellar year reported of second same is a discuss share. Oxtellar per sales drove XR performance, income earnings XX% compared Thank year. XR the the XXXX share. to increased with everyone, as operating financial by in to to demand Total solid operating for us $X.XX our XXX,XXX, quarter, with Trokendi $XX.X product growth over $XX second an quarter’s in Driving Peter. for with In product strong achieved primarily performance a and earnings execution and setting last XR quarter taking prescription XXXX, the both increase period as reaching IMS, solid quarterly XR for sales,

for Trokendi is the second Oxtellar quarter last increase of XR, year the XX% XX% a XR, in period quarter this And prescriptions were increase last year. of an over which year. reached For representing same prescriptions same XX,XXX, the over XXX,XXX,

of Despite with share an the the of of call-on and of June of high X.X%, in XR the universe physicians saw all-time prevention second of introduction quarter market market that, medication second for the first anti-CGRP high topiramate the the of migraine During the XX.X%. exited migraine. all-time quarter, share the Trokendi

expectations, line in Trokendi with coming For at of the performed XR first our has XXX% in prescriptions our forecast. with half,

the its believe numerous prevention important the anti-CGRP one is therapies action, that product foundational of with While launches, most the experience second potentially half topiramate, as will additional of the to of in expected mechanisms we remain of year migraine. two

assessment patients practice topiramate. more migraine XXX% XX% as is clinical with of In showed among competitive in prevention and reduction. very XX% XX% reduction experiencing Trokendi not in or frequency responder XR a reminder, XR And experiencing stack a product. of migraine Trokendi sufferers, against any real-life rates, These patients stronger addition, rates well up responder immediate-release

reported As side practice XR compared efficacy delivered immediate-release clinical this the to in and with improvement tolerability assessment, significant such and Trokendi effects topiramate.

Moving first pipeline pleased in a for report of with trials. starting enrollment our four that non-stimulant on to Phase is the SPN-XXX, and to I’m complete novel III ADHD.

XX trial this to old of We expect fourth patients in top the during years line data XXXX. from X quarter

trials remaining enrollment three the XX%. Regarding for SPN-XXX, approximately is at

that are in in Recall old, this the of program to patients first expect patients. trials, quarter four, from two which trials are and of placebo-controlled of XX in X two We consists XXXX. three-arm adolescent these data which of years

in impulsive have in SPN-XXX who aggression both development currently pediatric Regarding continues for in trials. Phase enrollment ADHD, patients III

trial first second the now The is approximately trial at enrolled, at is and XX%. XX% approximately

and data from mid-XXXX. expect the trial first second the data We by to have the XXXX first from quarter by trial

has screening initiated on Enrollment in an the These patient in addition, larger both impulsive both studies important data are extension at SPN-XXX, have III additional collecting open-label for In studies and XX%. increasingly product trial approximately SPN-XXX longer-term the Phase in who ADHD. number of continues for aggression on patients candidates. treating into been adolescents SPN-XXX

the bipolar a half Phase of second up start treatment XR Oxtellar our of program targeted plans with for III the in are shaping to on for XXXX. Moving disorder; the

we from XXXX. XXXX, providing clinical completion the look trial our remain to quarter for and on As SPN-XXX forward successful first of Phase data the enter we line programs, of III second in top the of half the focused fourth

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

Greg Patrick

good Thanks, Jack, and everyone. morning,

net for year quarter quarter the XR the compared refer of non-cash Trokendi of million financial for $XX.X $XXX,XXX royalty to issued licensing royalty to the Oxtellar sales of year quarter press XXXX the sales increase million, revenue Total product revenue second product a of $XX.X of results, the the the period. period. XXXX quarter million XXXX. a net Net in to XR Total $XX sales non-cash compared million, XXXX. of As million revenue second XXXX was of product second second Net I of XX% and $X.X were prior of to revenue market in and million, $X.X our $XX.X release in second licensing increase second the revenue $X.X remind million, were yesterday quarter I’ll compared revenue $XX.X review of quarter included $XX.X the the quarter sales million for XXXX XX% as XXXX increase second XX% to as quarter of million, as prior for to as of earnings listeners after for closed. a compared second product

in $XX.X SPN-XXX Weighted second quarter expense effect of effective in March GAAP the Phase costs XXXX lesser or $XX.X quarter deferred the employee Turning non-cash SPN-XXX earnings net second million quarter in the million million XXXX quarter were quarter the million Operating as second same were period. period primarily support XXXX Selling, clinical our per reform last the year. second in the expenses; previous benefited million, share-based for the approximately extent, compensation. quarter of increase second XXXX for million the in the the the quarter compared XXXX GAAP as the quarter XXXX as XXXX. $X.XX force, diluted share XXXX the as earnings of reducing to year. is were commercial same diluted by the administrative convertible second year. partially a the SG&A per of to shares general approximately with III quarter XXXX, and XXXX million by year was tax options. of a initiation XXXX. $XX.X improvement to in now December legislation $XX.X the million rate trials and share increase to products sales stock expenses. the earnings and same reflected This in the extension year. due in the to same $X.XX per fourth sale an to our increase, Net or associated expansion fully of were the increased of for prior second the headcount million outstanding earnings or in in XX.X% net for X.X% share operating our the tax XX%, average expense earnings the second $XX period of exercises shares of to of $X diluted $XX.X from was rate which increase corporate in the sales, four compared studies from same marketing deployed expenses This $XX.X million in quarter million operating as senior notes were in in of of approximately interest quarter compared well in $XX.X quarter in XX.X common in increase $XXX.X to of open-label second and SPN-XXX. and, net of year-over-year in the had XX the was the to to XXXX, U.S. GAAP $X.X million XXXX tax prior and by product development XX% half in million primarily quarter to XX.X of year-over-year second of compared an $X.XX financing diluted due of primarily offset compared million net expenses of of over prior in as second due of research as in or The a enacted $X.X in programs The

in as from from XX, compared securities note warrants, senior June by March approximately of June $XXX.X December net million sale as and of $XXX.X offset marketable ended operations XX, company months This of increase marketable purchases reflects in million long-term convertible in XXXX equivalents, XX, million securities million and well $XXX.X hedges notes XXXX. the cash, of had as As the six XXXX, XXXX. $XX.X cash proceeds of cash to as of convertible the

guidance are for prior turning to XXXX; Now updating guidance financial follows. as we

to year sales to $XXX We net million the $XXX to $XXX to million expect compared be range million product million. $XXX in previously full range XXXX the of expected of

to expect expenses million continue approximately total the R&D $XX year. We to for

expected previously of higher the $XXX $XXX expect million We million. to income from operating million, million range $XXX range $XXX to than to

We continue royalty and earnings full revenue. operating of million expect will to XXXX $X include that approximately licensing non-cash year

and We approximately I the Thank for will third XXXX. questions. for call the after-tax you. to quarters of XX% turn to of XX% back operator an expect the rate fourth now

Operator

Our Samimy you. Thank from Annabel comes of first [Operator Stifel. Instructions] question

now open. Your line is

Annabel Samimy

quarter. details thank you efficiency. And a Trokendi. questions solid Hi, the I guys. Congratulations Clearly, for about Trokendi’s have some on only around

Clearly, the an changed entry has getting, very for I that are I you helpful. or From that conversation impression new are the greater conversation? around how Is you’re optimization? that’s Aimovig entry CGRPs your wondering seen rapidly. overwhelming this physicians. for prescriptions feedback the think discussion with up mechanism? eagerness you tick topiramate there was we’ve very eagerness the guys Or of having is seeing

that Thanks. patients? in help going us the that the So do light the understand from everything? conversations you now that they sense because those if warehoused failed they’re away Or on with are how is you’re could target So physicians, patients and just profile. who’ve Trokendi having of taking your you

Jack Khattar

shift start Annabel. new Clearly, different only as strategy you in actually, action, and goes different mechanism be time, experience of initially time a or launches when adjusted positioning, category, conversations a especially Hi, these on. with will and you clearly, not our our Yes. experience over as product

the product which from patients patients had program heavy of of well lot who came first that introduced, they have onboard, that as launch lot when the switched with done the activity, the sampling you with product had that you product expect have introduced, was initially. first So trials would was any they that a the they also anti-CGRP a as bolus

or the market, best by XX% treating in as anti-CGRP defending or and is fact something immediate-release migraine of So positioning by the fact in prepared the tried of the one else is versus Trokendi migraine of way emphasize franchise, not and remarks, mechanism the is Trokendi the molecules as It’s is the Trokendi I treating in products. CGRP XR which not XR unique multi-faceted. the our of migraine prevention far on to one only it’s our marketplace topiramate, topiramate. as of in that XR, working

you view want, to you we beta on of more migraine is could else foundational which whatever broad topiramate reason that what whatever, So of therapy spectrum, the treat an a or can add will is. believe therefore, it always it, amitriptyline, And we molecule anti-CGRP, that a be blocker. regardless continue botox

XR XR experiences shown topiramate. patients a and topiramate. shown we’ve much addition has not better Trokendi and and And drug Trokendi shown that abstracts numerous posters topiramate. Now different has is is And by that actually different that. is data product immediate-release studies our numerous that, Trokendi a in XR to and immediate-release all very than in

So the the a that obviously, be kind overall. to idea the in be to and therapy Trokendi us have XR migraine here, table with to these bring them of physicians, molecule, fact topiramate that conversations benefits would expecting a in – to highlight to the that’s is mainstay molecule having

it will evolves. So to see interesting how be the market

from basis and clearly, very, on from day-to-day it physicians feedback as a closely, watching very field. far we We’re as the get the

Annabel Samimy

they’re the have background taken you patients CGRPs? topiramate a it Thanks. as an they on been So to going do on know that drugs add-on? they sorry, the different just interactions therapy? – just So used CGRPs trials, And – now, I if background whether Are a as follow-up. staying right are topiramate understand have better? are clinical is the being on between switching completely could and ask Or just they in to

Jack Khattar

Yes.

and Given previous a least given initial patients by from treatments, where point have the the approach product the strategy at get an two and should into access into these anti-CGRP. before previous care they market, before view, the of anti-CGRP positioning initial two treatments failed managed the also

anti-CGRP most patient, a failed topiramate of on the is this therefore, have have a by or market is before medication, failed XX% have of given who by likely they been beta-blocker one an there, products, So have launched. definition, product topiramate other topiramate an the market the was they or that came that got failed to must definition, And amitriptyline. they or

of expect, not really, patients of could the Trokendi over treatments been a on – for expect after the respond question some XX get patients other only or other these market at the XXX% back to be or start And going any to general, some is would XR big treatments. after Botox anti-CGRP, is that treatment to respond anti-CGRPs could or other not while, the in they’ve turn be either. responder you’ll to those well given Now they to any to back rates you But weeks. now because to everybody to point,

you’re outflow any of continuous goes and on of time drugs. patients, So on, a as clearly, going to these have inflow

Annabel Samimy

Thank Okay. you.

Operator

from comes of Jefferies. David Question Steinberg

Your line is now open.

David Steinberg

Okay, thanks.

on follow-up a CGRPs. and Just Trokendi

I So Amgen change co-pay to the is just need any And just Oxtellar you free tactics, then given I giving extend wanted away bipolar. product or months any further for of in two marketing months curious, supply? for assistance to your to two free. was And see turn do any

was so, seen Does announced that it given positive, open-label a Thanks. the You III Phase that starting you’re that program. year? IIIs you’ve the you’re that And that mean some data? if Phase next we of starting see do

Jack Khattar

with can’t I mind, don’t you countertactics. if or be our XR, too tactics Trokendi On competitive Yes. specific, obviously,

alone. that So just question going to I’m leave

for Oxtellar investigator referring we really anything did as have trial we we data risk approval. you’re the about involved solid far and to, had our as XR, this we screening, the that. it’s but XX And as actually chances observe from update with been call, quick in us conviction a here But a think programs. to from As patients successful far program have last haven’t the get that program the always is as that IRB to

is critical you not quarter, So said remember from the investigator we path. trial last if the on

slow Phase with fast So regardless pivotal the program, or III III trial – investigator the we proceeds. how forward Phase are proceeding the

clearly, goes the the we implement We we if to the and incorporate we’re of that’s or into that III planning try it’s planning. read feedback our up some anything our will specific, But for as no, program, Phase here. program. of So trying pivotal speed just on, time what accomplish part pivotal to

David Steinberg

Oxtellar. with then just staying And Okay.

in a the everyone kind and by in NDA monotherapy, call your end approval the of indicating the of you expect year. with So surprised you supplemental last filing

case? the So I with your Jack. that takeoff would give whole you’re awash migraine peak be give you any epilepsy the sharp trajectory. that that more this be a indication? muted or to more if new indication. – Is a gradual be trajectory in what a more indication Could very climb? Thanks, just than in migraine versus Trokendi, it new And since, us for you assume on you thoughts Trokendi prior have on launch color sales could could steady, specific thoughts for would adding

Jack Khattar

reminder. Quick sure. Yes,

market partial starting about XX% As itself, million have for that far prescriptions XX.X the partial XX as of And you in million, seizures, epilepsy about monotherapy. with is the monotherapy, seizures. annually

about monotherapy annual XX.X approximately or on So an represents basis. million prescriptions

for in is market, supplement lot market monotherapy grab the is, us much molecules on XX.X partial So from reference strong in which the efficacy of of place And setting. question how will is And which kind label the drug, actually has. it that a much one million that about we’ve studied of we we based approval. penetrate? put very very, most share the of Trileptal, depend on can showing we the before, how can on we Clearly, data that is the in prescriptions? of get It mentioned the monotherapy anticonvulsant data, robust The seizure a monotherapy. Trileptal, has or the I based lot think is

opportunity our into be how our Clearly, label behind Oxtellar a as that, on that how in new will data much that market. depending promote clearly, that in try drug we can monotherapy. up trajectory it penetration to impacts that launching of and So we ends maximize XR. We’ll and

for a specific give that far Trokendi the compares comparison. a migraine, as us little to how hard it’s to bit As

migraine. bit little always Now in general, epilepsy is than slower a

statement. a Just more is of this general

be going we XR and migraine In But Trokendi same it Trokendi no. before. Maybe Oxtellar maybe yes, did also, some we have migraine? update quick have we is a to So well. bit did estrogen as as in maybe little monotherapy, that with XR, XR

factors I that to draw could play comparison. come there’s trying So lot a mean, in that here in of

David Steinberg

Okay. Final question.

So you’ve use be or up. private you And cash prices got now. plans may under is it perhaps changes $XXX or a Cash you near anytime almost in not your in million hole are any building asset may seeing burning term? Any the early-stage to in pocket. products looking at? on-market assets It’s

Jack Khattar

sure. the million convertible we of corporate the that Yes, primarily deal $XXX debt primary did raised money, use mean, proceeds, the development. the when I we was

raised with So And clearly, objective mind. active looking side. it neurology in we for hard, psychiatry could we’re working a very, and area the we’re you clear in the assume very on assets BD and very

Our strategy not that much. there changed has really

later-stage to continue by then assets, and followed prioritize assets. earlier-stage commercialization, or We near whether commercial

of So fact have the we’re are stages different coming on data the will hopefully, so, towards next and with moving two nine have different lot And pipeline. or pipeline the a reloading therefore, early that at full is positive in very we speed commercialization to in reload to the about from that to conscious assets months And data. a diversified we mean XXX. mid-stage. And XXX will pipeline products ahead six and, stage these

assets are kind in at looking So efforts at this different at of very stages development. our point all

Operator

comes question John next of Our Boris from SunTrust.

is line open. now Your

John Boris

Thanks the the quarter, Jack. questions for congrats taking and on

to market epilepsy. headache obviously, with, trying the with is to has I’m – contrast do specialist the what XR. Trokendi In First one neurologist, to just

is quick the a headache XX% you as you can only of an you articulated, there on their get reduction. some to give of is subject to headache-free, equation, quick to around objective headache have of want a impact patients get patients net? the specialists? ask get like Second But that headache-free? seizure-free. It XX% couple of that, mix shift. the you Can you on part follow-ups. In XX% the can Do of be get the that people shift epileptologist, on to side goal along – doses. a what higher If going is then And to they is looks just you commentary a with gross

Jack Khattar

Okay.

and them, of all order. remember I’ll in to try them me take Let

clearly, ultimate clearly. specialists, you trying As far I the as specialist, for doctor, any headache that’s the seizure-free it’s whether epileptologist mean, the goal goal, I the mean, for headache get or or to they’re headache-free.

severe add mean, migraine-free data, response our XXX% comment diseases, the single there goal And foundation of or medications a get high lot topiramate my you many to earlier molecule try migraines these Although on the XX% a That’s number patients. why the of in these to course, agent refractory, of a different the migraine, going than refractory positive for to of as mainstay Trokendi one as more end – lot patients, that be showing of the possible. the patients. with about minimize continue unfortunately, very of XX% is patients epilepsy moderate will that’s and to a believe are goal. you up I very more to you’ll of much whether rate At nature on that day, mean, that there of I for And refractory XR, it’s difficult one achieving migraine-free. which with we or that, end And because the top these of of getting especially on cases, in which in trying is no get migraine reduction to patients. could

we as as Trokendi to experience the we what continue from and So XR, be far why to so that’s as see as patients bullish forth. far on

you from but that has general, encourage go XXX-milligram as which the day was because very topiramate, allows stop using used effective and were shifting comfort of commonly have effects forgot With could to, tried Trokendi been with improved the where immediate-release you topiramate. I dose more even launched sub-optimal have one on not far And the Trokendi immediate-release the daily right get very XX-milligram forgive using XXX need I actually because that side a into migraine, me. to much physicians those doses XXX-milligram of by with the and to XR, they much when to beginning, is to a the tolerability versus refractory the from in into dose, the the of that titrate As migraine strategy you been – question. immediate-release the higher if the XR has topiramate. our last who specialists mean, especially we doses, because up patients much we XXX-milligram to

net, not I gross specifics know, to into mean, as to you we’re of going John, to the On net. get the gross the

I we continues So fluctuations can I mean, be seen inventory new I giving QX or normal. from meeting from that any of fourth here. an guidance of very sales quarter-to-quarter. try very you continue QX our we point That’s what or work hard I inventory mean, will you focus tell view, hold consistent. on steady, versus sales to view, that’s that mean, And have QX, haven’t to guidance. and to beating an those at every fluctuations single quarter. day always point

John Boris

trial for psychiatry, And on to and being year-over-year on that have your Oxtellar have conduct? And XR, you just sleep neurology R&D BD, the interest is it XXXX? And any the area? in or do then you one in impact two in interest trials

Jack Khattar

that need Phase expect current given a you III indication, to XXXX but have monotherapy. Phase haven’t of to two going Phase going for It’s it’s to start XXXX As phaseout the I IIIs guidance continue we Also, adult need mean, on R&D hopefully but a will SPN-XXX, we’re we open-label XXX. XXX(b)(X). on studies. have yet, extensions we far III Oxtellar expect X new as studies. indication, a XR, so Because successful on new we we

activity So it’s then I for from to fairly XR. Oxtellar mean, the going a R&D, bipolar busy and be

R&D as I but be overall, an So as up as specific spending, haven’t for it well. will investment we number, year with mean, far us come a

Operator

of Cantor Our next Bill question comes Tanner from Fitzgerald.

now line Your open. is

Bill Tanner

question. taking to mentioned first to out this read two trial there XX And year. and you through you that’s just for data identify Jack, the could XXX looking whether the if you clinicaltrials.gov, go to are two at quarter X mentioned, as I’m yes, in fourth in curious going – trials kids too, the on adolescents. ahead. in Thanks that And

Sorry.

Jack Khattar

lead old. to It’s Yes, Yes. in is bigger first was XX one sure. the which And is actually the X PXXX, years the That trial, of it’s trials. which trial.

So to out first. that’s going read one the that’s

Bill Tanner

descriptions, dose looking that of one just age on like are the at then one and the the each first the correct? high is dose. for ages. And – Their it is one? And trial this these what mean, Is groups low I dose, looks is is

Jack Khattar

this wrong. I them. on boy. But believe you – on XXX the on adolescent and be two I’ll trials doses to yes. milligram. why have the have trials double both back get we X might that. on of XXX is is a Oh That’s two But I XX, to that’s we and range to check testing because of the answer we’re

Bill Tanner

the get X may question. out work? quarter in know the XXs of but idea would sometime – three Yes, you to the know apologies you year, you of another other an first if ask my both to going the to we’re trials next the I you going to have of okay. the read as to, for you next get Or to how adolescent? do that the question And sequence not you is not answer but do know know – do before

Jack Khattar

the quicker. Yes. be seem I to mean, X to recruiting XX

front that, trial as ahead that But next as the adolescent. XX maybe the is in we’ll data, have So of the jumps one these also that it other every week, of likely the enrollment. X trials, will be to far

point. trial could at – old, this have fourth data little likely to of second have the the the XX in going to So is that one at this be we’re Then bit it’s point, years quarter. first more today, the a also yes, as but X to

Bill Tanner

two of being final trial And that the development, question across first the to Street just drug My in program. concordance and guess of like? ADHD read going that my is look is then The does that is entire history populations, take my for patient what the the is data those data point

drug you looking development? So the well see for portend if the adolescence or maybe ADHD X good history success data for to the tend does at to that of – does as that just XX,

Jack Khattar

– we’ve studies What tell actually own on proof-of-concept we we done. adults. specific XXX, on it can did specific IIa studies have I remember, from two XXX, you The Phase that given our in more people study,

in positive we we to old. placebo against years have X XX adults, have So and against placebo data positive in data the

can So that you. tell I

X believe there’s don’t III works, the work Phase us So kids. II worked that XX reason and to in previous I shouldn’t I both to reason why Phase if adolescent in see the study mean, no if has in it adults for

trials will at Only obviously, other So hopefully, through day. should tell, the that positive. if first end of data the read the the one is

Bill Tanner

Sure.

much. thanks Okay, very

Operator

next comes Berenberg from Markets. question Our of Trucchio Patrick Capital

Your is open. now line

Patrick Trucchio

morning. Azar, congressional good PBMs a Secretary, we companies said, without drug recent Thanks, may move fixed-price rebates, system toward where hearing, to need contracts. negotiate just the HHS At and

So the the first, such system commercialization can feasible? XXX? how Trokendi, and a in tell is And price a third, us, of think may potential system forecasting XXX Second, at if list the you and for may all? such formulary for wondering, impact do implicit you I’m impact how this physician Oxtellar your assumptions

Jack Khattar

the or end the impact. At the of objective rebates. is how the of can patient of to with to cost and don’t primary knew Hill I on to of it’s the wish end the obviously prices answers list these, objective think administration either. at The is the Patrick. answers toughest questions and day. day, trying net the know the not necessarily work I wrestling that all they Their see the on is one the I folks This their

this unreasonable how system get that how be that’s will associated of increases rebates do that not that there, over shake price a free is time, high is at nobody knows whether that system out. prices they or are list going with point to very very obviously, with or a So

will from and Oxtellar obviously, needed, at the view know and we of whether end medication, patient, here we’ve as far we’re accomplishing that’s predict As policy be predict publicly. bit at if point far difficult mechanisms what pricing, the don’t happens or it the a the seen overall any probably point overall in supply where to getting or patient and The And monitor a net they proactive Trokendi us mean, as as situation Hill rebates the point. you our to little XR. this But than it’s adjust, concerned, end difficult chain. the And at how a pricing specifics different from clearly, cost programs, I of of to more D.C. what bit to, try day on yourself try and lower a helping, elimination obviously, for know up unfortunately, to XR this for whether that’s is the rebates, to through through little through I us

Patrick Trucchio

perspective, the in in top from then SPN-XXX, tell of Can what a be should stimulants a importantly, on primary fourth clinician the market may the for see the expected dominate release perspective? Just competitor, data market, data? specifically by follow-up placebo more the endpoint looking us quarter. so on we be terms actually the from you first dasotraline, line time a XXX from where where in regulatory But and another we separation

Jack Khattar

we what non-stimulants. very And a get beat far Well, unreasonable has I to good think It is efficacy. other people trying or non-stimulant stimulant. versus draw been on as very comparisons try SPN-XXX, goal explain is to always to that mean, as to our expect efficacy? stimulants a good I to a

So the as as have with to XXX-milligram Phase even data which or a dose, the is, study. the data Phase XXX-milligram get methylphenidate. highest we a consistent it that dose from is objective or little we the little Vyvanse an than the that our bit testing But IIb is possible bit be amphetamine the better, a are in higher close we adolescent, get we IIb as was if to a our higher stimulant, don’t in or as long

also if better, we We very happy. the profile. good think very or have consistent tolerability IIb slightly drug, solid safety is with we’re Phase a the data So given its And very say and to so the stimulants, we comparison effects the as and tolerability issues controlled and substances in and as existing forth. that non-stimulants and their side as as and far to well DEA

Phase first-line the perspective, we III that the with think a is treatment. very here be So we as consistent even positioned can IIb, drug have a good from if that Phase data

that why obviously, trial Strattera, it I for stimulant can versus to we’re fairly quickly? trying As a And measure, will non-stimulant for I in weeks into a example, jump would have used sometimes take our that good in. to kick is parent, work something that if to a

is typical the So that is really side. other scale. point an efficacy important your ADHD-RS end measure on the And

looking to profile. of in being for SPN-XXX That the have up data end that’s, will in solid of for. the instead physicians very patients so kind as hoping So a on first-line option And treatment And what profile. well-differentiated general, start have we’re been that we’ve we of stimulants. that kind that may to far hand case a point

Patrick Trucchio

very Thanks much. Okay.

Operator

Our next question Jaffray. from Amsellem Piper David comes of

now open. Your line is

David Amsellem

couple. So a just

to extent apologize, this, think I to on differentiation. on nets? contracted then oxcarb on regarding product’s relative have given sense to extent generic, actually going that lastly, which a positioning Sunovion should monotherapy? there, we which then the first, I practice how and versus is on how secondly, the brand wanted on heavily answered can given is I Strattera be then but out you dasotraline, thinking to so and drill used a another the but that product, about So landscape, in competitive stimulant the the get may your us monotherapy, as to to you’re And you And down about in thoughts XXX. gross and wanted give competitive there’s Oxtellar

Jack Khattar

stand Yes, we in product be – get it’s the waiting efficacy an referring sure. XXX Sunovion to going on don’t from believe, I own product specifics a into really other that’s of point to. at non-stimulants view. its I versus and tolerability the that and look want to again, of the approval you’re On could pipeline that the or so forth, XXX as

is. I label data a the wow, to really a this very, XXX product. different that’s really so clinical seen program, different seen really okay But an going is from yet, marketplace. anything haven’t how very us is, hard be see final product that We know. for we’ve on it’s that didn’t in it’s see the their I to don’t

differentiated to therefore, evolve be, market have profile will will such penetrations with care tons its probably a its as market, as Strattera, differentiation. XR. SPN-XXX there is than and competing to will molecule that far, And are currently favorable with the because kind XR with I environment XR, between and help SPN-XXX. viloxazine Oxtellar and issue data own generic Oxtellar have worse hopefully, even the that, the as actually in and differentiated, Trokendi okay with genetic new I I that, far versus environment, a no as competitive launch It XR, It’s be this, so clinical be. think will will on Oxtellar X% more Trokendi reimbursement in achieving and we believe, we product a entity. XR point that entity. or done own our mentioned There of okay it we And will more Trokendi such a how in XR. far even of XR, we be share try managed or care than to as same-molecule And expect might the we chemical as Trokendi X.X% with we’ve we try view, viloxazine the there today SPN-XXX, when data that on or very And to X% clinical of thing. immediate-release little carry frame this from managed a hopefully is all way bit the an be no environment product, to the where immediate-release, launch As folks differentiation market it understand is when chemical I a new

billion we better environment, with penetration, in if be penetration if we achieve which would $X achieve even same similar even will the this a be a kind SPN-XXX, drug. a So of

the viloxazine And although a and of could a have very because much generic we’ll that will us. oxcarbazepine, is as very, differentiating used the more data monotherapy a it versus generic Strattera far molecule. a a is is better, same, or Intuniv. we for as in It’s monotherapy entity. be far And had. as differentiated So be as question, think because the hopefully, in penetration has assuming second use environment that believe, which the commonly points Trileptal opportunity it’s We big practice, new chemical the the

mistaken. not in Now to back remember, I’m have XXXX, if you Trileptal went oxcarbazepine generic

since to them So physicians that’s long that about been time data or that saw a any company actually talked data. since

So be monotherapy of physicians monotherapy. our the of data about remind that part that in strength launch will to in

will label we that what in So and our my front our hoping. data us. ability in that data, are depending that’s potential on And promoting we to previous comment specific speak opportunity think, why end of that’s what I having in up

Operator

question Trbovich next Ken of comes Our from Instructions] Janney. [Operator

is line Your open. now

Ken Trbovich

table? back ask little would on research just enable differently. just thanks really a that would that isn’t level and circle you taking Jack, the for your that any something there questions. maybe question want I to to edits Or launch? avoid market at Is efficacy on a XXX step is of the suggest

Jack Khattar

be the step or That’s very is Ken. product facet onset efficacy you mean, step Because looking at a It It one things. that that. to specific could step with is end It effect like on difficult a tolerability, not improved it’s edit when could be also endpoint. either. safety. you’re point. complex could a specific just just It could just a edit, anything been efficacy of – can to an different not one avoid action. pinpoint, Efficacy no be I edit efficacy size of different that or level not endpoint. be could And or improved

So step hard have it’s answer you really kind that to get X, if have you very should of question, a this will Y, you if you step And get edits. edit. no

bit answer. to that’s think a for I little difficult us

Ken Trbovich

those differentiate with two about Okay. the certain studies you know, to the just with and obviously, endpoints to III And the the to differentiate from make adverse are think of of be regard to Phase ability we trying critical I of to you event you should ability that profiles. endpoint the dosing which across the prepare differences to studies, product? regard we is I’m there programs sort I a for mindful talked most product as or sort multiple just perspective. think your – we most one understand single

Jack Khattar

which which highlight it differentiation factors we and issue once level about. what exactly and product from endpoints mean, will and of the study the to and bring mean, up view. a which really certain a the at of measures which that time and highlight, means, highlight what will the point or aspects you’re we I asking data clearly, – I of data, that course, we

sure So we’ll Absolutely, context understand the data that. be within the competitive about make all we help that folks doing of will that clearly talk to we landscape.

Ken Trbovich

you. Thank Perfect.

Jack Khattar

Sure.

Operator

Thank Jack to you. And ladies Khattar turn to question-and-answer like our back now and session. for would any gentlemen, further call this over does the remarks. I conclude

Jack Khattar

XX% compared in delivered last to the growth Thank half you. sales in we the net same the earnings In year, period XXX% growth of net first and year.

maximizing while the continue Oxtellar brands, towards pipeline and commercialization. our to on advancing focused Trokendi late-stage XR XR be We

trials catalyst-rich period We’re SPN-XXX and be from a and look us sharing you this morning. several much data, III thank forward Phase with so entering excited We you on data for to such SPN-XXX. to with joining

Operator

you thank Ladies and concludes This conference. participating program. for today’s today’s gentlemen, in

all may Everyone, You disconnect. great have a day.

Supernus Pharmaceuticals (SUPN) 8 Aug 182018 Q2 Earnings call transcript