SUPN - Earnings call transcript Q4 2018 | Supernus Pharmaceuticals, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Supernus Pharmaceuticals Fourth Quarter and Full Year 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. Instructions will follow at that time.

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

may begin. You

Peter Vozzo

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

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

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

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

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

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

Jack Khattar

everyone us our thanks results. taking and operating morning, you, year join full and for achievements we XXXX. time discuss Good significant another reported with in to strong the Thank of Supernus Peter. results XXXX fourth year quarter as

continued The achievement on XR. execution the is and strong Trokendi commercial first XR Oxtellar

performance. Following the brands us and in total diluted highlight revenues million, $X.XX. growth deliver launches operating enabled a to in heavily the market solid of that double-digit sixth a intense in is growth to of total robust $XXX earnings was growth for prescriptions XXXX, of from XXXX in three delivered important market. the that total two achieved year in in company a delivered reaching now compared solid by grew XX% new to growth financial year prescriptions $XXX record We promoted that are another in saw class prescription in that million on our their This It new with competition earnings in share XXXX per XX% migraine drugs. year

at in of high around its share For increased million Trokendi of market total at held grown steady XX.X XXXX market market the prescriptions while topiramate Trokendi share X.XX% XX% despite topiramate XR, end prescriptions. up XX% XXXX. has all-time an by XR year reaching competition, increased the

of XX% another increased level For Oxtellar to suboptimal year compared of XR, promotion prescriptions for full XXXX despite year the competition.

significant to include Oxtellar label long-term growth the for in for we with of to launched in seizures of represent label is expansion monotherapy seizures monotherapy and Oxtellar XXXX opportunity this FDA expanded achievement include The the its Oxtellar we monotherapy XR. XR. quarter, for in Early partial second can partial XR believe major approval that a

generating studied extensively market efficacy. partial X.X market than a year, significant a efficacy epilepsy data safety market strong drug eight at a studies XX and million its of oxcarbazepine in prescriptions has estimated prove monotherapy has is monotherapy. oxcarbazepine The its wealth prescriptions million anticonvulsant, proving that been the much larger an general about The with As data year. in of monotherapy seizure approximately a

achievement Phase X successful three the results trials novel our line completion these The we from in candidate with The statistical trials third its SPN-XXX. onset across in trial point product significance. major and XXXX efficacy, primary announced product of December a top is lead ADHD safety with fast end Each action good profile to point a met trials. strong well differentiated all of with a robust pipeline

to for showed aspect important which efficacy strong the an non-stimulant. the sub-scales, that, trials addition the In any inattention very is on hyperactivity and

to trial adolescent the We results disclosing forward are line from by of the March. end final top looking second and

We continue of XXXX file NDA FDA for the for second the product to the half of be second the pending on and half XXXX. launch the in in SPN-XXX of track approval to

patients We adult in to are also a of planning the X this start in program year. half Phase second

profile with clinical for We differentiated remain about late patients our believe potential a what important have well therapeutic we now to as non-stimulant the of one new SPN-XXX products ADHD. de-risked stage enthusiastic and pipeline offer of an

we SPN-XXX an of and remains half patient addition at treatment in ADHD. Enrollment observe with aggression on the of and the a made believe efficacy significant in tolerability is report average encouraging expect patients to nearing year. the we enrollment profile is of higher. achievements, progress on this this novel impulsive treatment to open and which we have good of second Supernus In these the SPN-XXX XX% months program results label completion on XX study in for On label unique novel or SPN-XXX, to in our SPN-XXX. for sign continues extension open study

SPN-XXX of to We FDA launch to the XXXX submit drug approval the pending half for by expect second and the in the an NDA half in second to continue of XXXX.

of XXXX. the for is program of the Regarding half to commence expected SPN-XXX in disorder X treatment Phase second the bipolar

SPN-XXX progress completed opportunity an In adding epilepsy. acquisition addition stage Neurotherapeutics for above the pipeline we our exciting Biscayne on to the severe XXXX programs late pipeline in of

and in neurology represent for strategic side Our with that a activity will psychiatry looking portfolio. XXXX corporate our fit assets continue on the development

Investor programs Finally, will where we be an including over our who an Greg, our you quarter with year will a issued full full on the market hosting our clinical last now assessment New announced we of to call XXXX, SPN-XXX share year detailed fourth in overview provide opportunities. details night, discussion and on as quarter more company and Day associated financial the XX, an results of York we especially in of our fourth April I release and will turn performance. press will

Greg Patrick

Jack Thanks everyone. good and morning

of XXXX. compared XXXX quarter increased quarter We fourth to million the quarter as sales fourth as after financial XXXX million, be increase fourth $XX.X of release to As of and of million levels to of fourth channel XXXX inventory return the and XXXX. million, XXXX for increase XX% net Net XXXX as sales revenue full wholesaler of quarter net to as revenue fourth believe quarter of the full XR the I sales will of quarter quarter were royalty the a $X.X and the of XXXX. the quarter expect fourth fourth revenue listeners the pharmacy was will earnings of fourth I $X compared were compared that $XX.X a revenue revenue million, as yesterday increase of to press and market fourth Oxtellar year a million XXXX net and for Trokendi XR million closed. year third $X.X in fourth of levels Total prevailing temporary XXXX. of this in Total inventory product product results, XXXX. quarter sales in for was XXXX product quarter in in XX% to levels $XX.X product for Net XX% of by compared $XX inventory of million, our the to remind compared the million to issued and fourth quarter the licensing $XXX.X Increased channel the to in comprised review increase approximately refer sales for of million. historical quarter $XXX.X $XX.X royalty product

XXXX. XX% XXXX million, royalty XX% $XXX.X were increase as as XX.X% to results, compared $X.X year licensing $XXX.X to for compared was as sales a as of million Oxtellar for $XX.X net $XXX.X $XXX.X year and million, full a full for revenue million a $X.X and XXXX. were XXXX. of product to million for sales to in increase revenue full full Total Net $X.X Trokendi year million million, revenue for sales respectively net XXXX compared for XXXX XR to compared million, revenue product product million Total $X.X of year $XXX.X XR million, increase included Turning XXXX.

year. We compared in In were which to the payment quarter expenses to now and XXXX, the one-time company made development of quarter fourth fourth the upfront same Biscayne million, prior for million million Neurotherapeutics. to of charged research $XX.X quarter Turning a million research was $XX acquired expense. $XX.X as XXXX, and development the expenses of $XX of the

essentially million fourth development and the fourth upfront expenses the quarter, the in of one-time Excluding research compared the quarter as of of the Neurotherapeutics, XXXX XXXX. acquisition in to flat Biscayne expense for fourth quarter $XX were of

and diluted $XXX.X fourth as that was due production in higher expenses in XXXX, year. for force as year-over-year trials Operating increase per materials quarter XXXX. XXXX. of to quarter increase XXXX of and as increased million XXXX, in trials year in of representatives mentioned to full spend launch million or in selling, were This of or to Trokendi compensation SPN-XXX and GAAP previous XXXX the sales. quarter or continuing $XX.X in product and were expenses net due well increase share share $XX.X was of compared year increase XXXX for This one-time Operating million the increased impacted improvement affecting XX% million the factors $XX.X and label primarily due administrative Oxtellar the operating year year of the open $XX.X sales compared compared clinical Biscayne. by were XR acquisition period or $X.XX as the XXXX million XXXX. million in trials period diluted were over approximately SPN-XXX earnings for monotherapy of earnings fourth million by $XX to promotional primarily last as full share as to for than research marketing share quarter full indication and same the of of X the expense XXXX second I in XXXX XX.X% $X.XX net of $XXX.X million development million $XX.X year expense. quarter. the both for year the for to in year. $XXX.X the programs development per $X.XX XXXX. net were or SPN-XXX with full in those $XX primarily general just million The and driven primarily administrative with Selling, fourth earnings in $X.XX This For in to same fourth $XX.X impact the in per was per for of Phase $XX.X expenses expenses to half diluted compared XX an the fourth the million, XXXX of GAAP X the XXXX through was million expansion XR the $XX.X same general compared of the to the the were the and Full marketing were a initiation associated to earnings increase, million XXXX. million, share-based as earnings and million full upfront extension $XX.X were XXXX. Also $XXX quarter diluted the

in unfavorably In the and Federal from XXXX fourth outstanding GAAP in tax benefited U.S. exercises. earnings income $XX reduction full deductible the for Biscayne. and with in approximately expense research XXXX, year the respective compared from of and in the acquisition approximately each The both statutory million common income income associated Weighted rate effective per stock the by $XX.X as respectively million year to period. full million rate development quarter XXXX – $XX.X prior quarter quarter the of was average the diluted of and year and addition to operating a higher were extent lesser net non-tax to shares fourth tax fourth the million option XX.X impacted

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

was cash generated million in $XXX from approximately addition, operations. In

is company product this of by the net product million, guidance million, the of that in by turning to expenses that I development will XXXX net operator in the rate $XX to of and Accordingly, inventory questions. anticipate $XXX the sales in back the financial held in call for million the earnings we assumes the $XX levels levels $XXX will effective turn XXXX sales historical XX%. million guidance revert and Finally, sales range range the $XX of million, to now of Research providing fourth affect as pharmacies will the following. tax operating the XX% of to for XXXX, higher range $XXX wholesalers approximately Net quarter XXXX. product $XXX to million. in million to of to range

Operator

comes question Ken Cacciatore first & with Company. Cowen from Our Instructions] [Operator you. Thank

now line Your is open.

Ken Cacciatore

the all progress. Hi guys, Congrats on good morning.

give Jack pressure into how in a BD, more CNS the then you not or us to helped in different is of both clinician, in or terms nuance can there, are dynamics little on volumes private are certainly market in of terms lot attractive of hearing ultimately maybe ask a potential may know smaller assets there, And in if of areas you not. patients seeing and in the also being CGRP, but lingering a that that that of seeing in lot and that going pushed of you what Just earlier prepared nuance public in less wanted your question, CNS maybe about of maybe anymore you much remarks, but there and you gave you the a any so forces, you first bit pressure, stage companies? finding benefit the to on little depressed of you. Thank seemed can more different talk sales to the be looking are kind public balance in terms versus seeing I at alluded you just about assets couple but

Jack Khattar

Yes, good morning.

rush dynamics so the we that than or for the seen as haven’t what patients initial time goes Regarding work then XXXX, specific any of trying far experiencing into the drug seen we everybody. different specifically that CGRPs, and doesn’t very really have mean on in I experienced course are CGRPs

and patients will then to who some CGRP. back that So products also we have before seen come products existed use provide the of these other

two when versus competition market in the entrants launched. between So is the that the dynamics been May into have in fairly CGRPs with there the first back came stable. Obviously, way the increased one fall initially newer the

such As which have far occur, as and far expanding market signs the as as expect such the expansion is do to initial market expansion, seen XXXX if were we think we ‘XX to volume. I some benefit from that expansion

space. with a that from promotional course, with the by will it perspective increased will competitors also Of and come heavy activity in that come the time

benefit and efficacy theoretically, that and the XR really absolutely far So as numbers the we Trokendi expect there especially out data best highest for time freedom of practically to responders the seen. volume from resulting good XR we has as increased patients. rate will it migraine really, that is have It be of some some in of has over there, that that Trokendi and will creating

Trokendi So share we do expansion. XR to that a of get expect market fair

kind and Regarding of the looking neurology side, is priorities hands asset. area public agnostic get of which that psychiatry our at. BD to we consistent on, a second on we continue are be to question were mix as our what and could in really fairly looking It private at opportunities

then everything products criteria us a always strategic are down and really in So space commercial the then makes and assets, positive full we a us stage speed market the to allow later universe this lot come now, working of will years bit earlier that as the we in to assets. look that months allow stage fit in will we at basically for or more domain XXX which XXX much will time priorities and especially long in are kind that the moving the had of we and same a I to from well much have now few have assets, forward, into time try assets. take stick little these mean, that we have for these will early strategy are disciplined many, stage and us to stay develop getting we later that of growth to company pretty to on many into priorities earlier certainly year that that hopefully because

Ken Cacciatore

Great. Thank you.

Operator

And you. our comes Steinberg Thank next David from question Jefferies. with

now is line Your open.

David Steinberg

Thanks. Good Two morning. questions.

the and data you next window had year, versus neurology on shut assets about stage earlier if the a public open or for market psychology Thank reimbursement private, you on to us now you just BD on your out market pretty force follow-up your further that to just acquisitions, about question so, versus need down any to still but over can get have you coupe versus sales for assets? much focused had the and window XXX does more deploy any so could there? away talking XXX is discussions And Ken’s accretive then to right force XXX with So assuming that months, sales of clarify, on-market because leads were you. payers share road that you your there color on

Jack Khattar

sure. Yes,

adapt our in certainly on neurology. in for from had kind be to side the neurology and to stop or question, which does to good not it XXX but a for sense get launch one so will of psychiatry, to that’s psychiatry, make sales neurology, will or we David, get but because at dedicated that us not continuing the different establishing XXX, we we closer be commercial two force have in less presence far – neurology, commercial to us XXX launching necessarily asset as a assets as of sales on-market assets look commercialized will in current as Regarding forces,

busy so and right January KOLs would as in with of expect a sharing the people the explain and but out lot leaders data levels have fielding got the same occurring payers, we KOLs, Phase December, influencers ADHD as higher we to we far well. thought excitement as the higher we yet, which don’t February you As continue are forth, well, there fairly walk through to as and with get of payers as we X in exactly research been you data that them time, have The is as are At space. data. that we results and the as in

that looks the potential that feel a as look very acceptance have might profile what label we so way profile point like good of better as of a to product KOLs and physicians. measuring well view payers the a market and much Now what the have like we as of from

Operator

And from Samimy next our you. Thank Annabel question comes Stifel. with

is open. line now Your

Annabel Samimy

certain you dose what label in [indiscernible] XX also is Thanks. right any have of milligram Hi. just enroll continuing I terms dose and that move anything dose, of don’t or points and be Thanks mid-year powered there outside turn are in paying you on know prior analysis before, many some to us seems going see comfort to are by specific XXX we to might to expected you over the give people forward, color I my can is some question. studies right for having being a they are give and it, forward to placebo, be, see taking that the there open maybe seen, in reduction for can looking to be in you what gives attention you around outcome something going can so separation sense in are how you is frame with that that studies? but it confidence interim that maybe a need give could you the us reduction to you to the that that there wanted a

Jack Khattar

Sure. Yes.

course the arm versus the what treatment and X of I just that the the for versus really placebo the for primary we placebo everybody, during Phase in refreshed are the episodes comparing significance looking the treatment Regarding period studies change as getting arm. end points statistical of is and frequency

trial based powering as and base the the powering of our all Phase the mean far trial. I experience we on Xa As with the the Phase study, Xb

ended studies specifically analysis more all on the to might up of the a being power. randomized break with milligram. the is obviously milligram. interim extension question the the And placebo one analysis we we blind open after label patients get the and the up dose, the initial study. on open remember, XX towards In milligram extension or the the And in future the end that on bit when as little interim will down Now enrolled don’t actually in that regarding as have label label XX open scaled everybody having what treatment patients the a people trend XX after on starts three might only it the seeing everybody or you so milligram been arm that XX help

milligram of then or everybody experience as a XX with the under and of the up of level the open there over the decision good or the titrating on we So we time start patients seems like some drug. and XX staying XX or are milligram with portion a down lot going in what is given number experience keep back comfort it been are but was the the physicians milligram a milligram, the patients XX specific And patient will where clinical over towards we trend bigger very milligram the still a very have they up good be milligram. interim titrate the practice made fit XX seeing consistent us see label patients a analysis that actually gives it on at are which that are to the seeing to patients XX actually

consistent action XXXX way interim analysis. we took back and the encouraging with that on very in very So that is actually the

several opportunity stands PTSD, it data and in and we really is many the forms of ADHD, extremely other could about this way. in really to be program be continue psychiatric continue positive Alzheimer’s think to only hopefully not because as hear We there we the them for the the no there and the right approved out far which in but about dollar that excited are treat this other we drug talked multi-billion times, potential of out dementia are about drugs so as the there also problems across autism, to disorders as

we So excited be program. to continue extremely about this

Annabel Samimy

I one follow-up open that that on but context, stayed label average that patients, stay just months context put the these patients is put can are very that just question, could a for if difficult little in us? imagine for on given working just on XX into drug, And Okay. treatment lot you a is Thanks. if drug patients in they to they would on want that you

Jack Khattar

a really and the is sign. is easy are the not controlled and in of really not study Sure. continue situation or have There forth to if the staying an patients, continue to so what point in basis is is just it them with months patient I an a [indiscernible] XX what for who but that’s go view to [indiscernible] a if even were are drug to what’s really that drug and keep so this is experience published at why and with ten average visits the Yes. working that’s good and if mind stay two to never there saying patients checkups at they working looking to situation, drug study on why general it’s the really they it and mean XX the good no your for for so experiencing bad no have effects will tolerability. stay XX the side to open be for to they into months the them be drug in mind so the and stay into a number members to stick on mean weren’t indicator speaks we day-to-day this kid they have I good time have not such or the or not a versus that encouraging this the a number we if is side demographics do long say period on patients for as seeing no study really a and months you incentive like one label deal ever these with specifically really the the the it difficulties more really or population like similarly family a to caretakers, that well months is never nasty good but months efficacy given continuing them as sides months we of what’s really thing to really also on that for data really where similarly XXX, is months long or well both sign what safety in they really really would CNS an no as on months experience

Annabel Samimy

Great. Thank you.

Operator

our Thank you and Trucchio next Patrick question comes from with Berenberg Capital.

Your now open. line is

Patrick Trucchio

you complete [indiscernible] data if have need an XX can you us on do study can a us then regarding file before can you you can file then SPNA few tell set and expect in NDA tell the separately other I NDA child follow-ups good [indiscernible] do be morning successful into the on a indications Hi is enrollment the could you you bring those ADHD program intend and is study the in enrollment then efficient patience [indiscernible] more soon in to [indiscernible] you to initiate [indiscernible] how studies? presently where the

Jack Khattar

[indiscernible] if X of disease of continue fine kind intend need the some as go however for enough we of start as patient [indiscernible] really anything and now filing to that failing they have therefore, the data that the and follow something have there that’s with they’re to as we years, instructions the may Yes, wait than [indiscernible] the so curve that so right all and will roll not the and trials population requirements study [indiscernible] in the data our trials pediatric will hope have that state confine fulfilled have age we will to but okay [indiscernible] the that’s and we have demographics if us see why a the so the more discussions period issue only an safety nature is that of we the in with still also think really what the in with whether we as they same we data adolescent, the really pediatric we adolescent we will therefore they those chance to the is the have pediatric the that people [indiscernible] into issues options also the to with but the has to front. if to looking to we label learning we of in the just NDA and are really was discussions haven’t requirements point for have the That to well now the initial really that quicker A this was get the [indiscernible] end go far file to just seek Phase maybe FDA little we the failures initiated always closer in in kind would you complete that X [indiscernible], full the and we also have and [indiscernible] went information the people pediatric completion was don’t us [indiscernible] compliant extent as good pediatrics deal strategy folks finalize enter that that’s and other we again [indiscernible] about have were if that in they NDA relax could [indiscernible] saying would change, side unfortunately, [indiscernible] FDA may these the file at with cannot pediatric that will the and had understanding on X, pediatric [indiscernible] data a of the sure for and believe [indiscernible] specific that continue to the not make become pediatric we to we were the we do to the because so that’s clarification the get ability and data doesn’t available filing that’s be we pediatric in the safety that enrollment the on get trials people that’s at opportunity well as far clearly safety their had [indiscernible] fulfill bit the we and of as that the to restrict be NDA those experienced mean, as already going that Phase an as to we whole as with [indiscernible] from area option and pediatric first of not pediatrics in we this screening the that the so we the X discussion with [indiscernible] more really regarding no tolerability NDA it and as screening on follow we so now trial our we kid same we as up [indiscernible] and FDA let experience have to in you have pretty [indiscernible] have the apposed that the far we in of NDA [indiscernible] after and the a to talking thus with Phase because now probably been site. adolescent, up instructions. that years X an the Phase lot I but in the of during the nature X different

we’re very I XXXX. at that is we’re second watching half and of mean, continue still in our NDA continue, closely. both include filing to filing launch at hoping hoping launching delivering the ideal promised, both. dates again, second we pediatric we’re of we’ll and NDA the – to which And in the to adolescent this the that time, has it half really So, label it, XXXX we’re we’ll committed of that the and really monitor time And with

program the changes As learn clarify slightly to direction. time goes we certainly different, that the on, if the anything if we’ll is street really

really work to Phase gets confirmed been Open X how we belief on in the trials program, clearly, mean, Label, positive will far long start possible. what that over that as if we’re I for the As have that the the seeing be pediatric, soon so I data it looking moment and as other the as start that get soon and we reassurance on we – data get in program in can pediatric should the areas, our mean,

thinking The potentially area other that second areas point areas as we initial the broader us in, we areas a Autism for do or tweaks change time the but areas to areas these additional two two some will doing in. most get PTSD us really and research and likely not most label aggression much that will at disorder that That that’s maybe on, just do hopefully this for could more areas be the ADHD. we’ve impulsive goes one other are every studies at KOLs the been do talking to natural be initial other about. in to Phase think in third X many studies you to need do How as

Patrick Trucchio

helpful. That’s you. Thank

Jack Khattar

Sure.

Operator

our with And Thank question Koffler next you. Mizuho. comes from Irina

is line now open. Your

Irina Koffler

update, Can net for is an and trends? can And then you thanks the indication know gross prescription commercially in on Oxtellar business? in the early I questions. as Hi, Trokendi just expected we give touch in us maybe monotherapy inflection it’s the how expect Thank to some to doing you. expanded when taking

Jack Khattar

Yes.

as quarter, this monotherapy Regarding just mentioned, quarter. the we it the in launched early I

right with the we day one [indiscernible] so approval. already got we really so salesforce the So, we shortly and after of street we the the after forth, – from training hit

as level efficacy and not patients, is of very before do when a lot remember and as what monotherapy profile potentially initially in said And share from of very a excitement excited very the momentum It physicians. been we’re really data the molecule. improved that its as we for of about some better as we we’ve we’re about availability never been far, Oxtellar much and of as all reading talk getting that brand there is only oxcarbazepine of about people out about different the data some we’ve junk we’ve clear we it and XR excited along physicians therapy. So, feedback the what really launched and we could and confirms have versus seen about a them of oxcarbazepine a there whole of now drug a the any and it so remind a

So, really initial excited we’re feedback. about the

when is You’re bit if of a in all for remind any you’ll launch, and any early folks little XX absolutely much comments it a other data, do general, hold any would the I growth that than right, migraine it areas. years even that us look and epilepsy share, you products to they on build make new of be see inflection market rate they it’s IMS but the gain point do in product. specific really slower or in

given think lot and not way the year, have come Oxtellar over have a of to XR, is franchise we point the we’re trajectory to in for a So in and seen big And and of will come million market be slower very it growth behind growth the long certainly, a vast necessarily of Trokendi for be will we XR. out inflection how as is it for a an a there yet prescriptions quarters much or this looking steady. curves space years us significant about time eventually long-term us we XX

it may out net, far comments these bit other fluctuation have report as it’s are to really have years after net, actually happens, so people are like we control include control. we and X of and and where to many whenever But over is our we and therefore to it different when to on have because year net the what we gross from year you our a worse, are the the have products in don’t years on and the to or we maintain of it little that As notice there out is those factors one the market, to products now it net a in over lot levels X, to at where lot actually the a we both marketplace. fluctuations, in it after same we gross that today of actually gross year-over-year, are to from of some perspective, they probably launch quarter is to we say will do any X the are make as specific a a on mean, really they get quarter-to-quarter gross I pleased we

changes, as out obviously and have with and have future policies any we pleased going hard to healthcare and hold we the both continue how where a structural coverage changes that given this whole and the we that pretty can we we’re will there, don’t what’s but monitor remain it we administration universe crystal there don’t know for how if work be domain to as and but ball are, with So, whole the what on to products.

Irina Koffler

you. Thank

Operator

Piper Thank you. question David Amsellem Jaffray. And our next comes with from

Your now open. line is

David Amsellem

Thanks.

and couple, a so, questions following just Just in on up monotherapy. the Oxtellar epilepsy traction

product last the guess, over what Oxtellar where monotherapy, few with physician familiar seeing it is, the as physicians this you I’m struggling were context audience So, for I using years. of the have monotherapy with how been in are wider

So, what volumes available, you and you setting. remind in And used just the the sodium bipolar, of blockers that widely can underlying regarding help secondly us psychiatry the you now the have us of is what do in are then which understand a psychiatrists wider portion how as setting that – perceive the extent Trileptal just written label? and this see in the psychiatry audience to most do oxcarbazepine channel off-label, mood are how Oxcarb, stabilizer

of a Just Thank trying what be? kind to get you. could handle opportunity on that

Jack Khattar

Yes, sure.

the the correct. Regarding on first monotherapy, question absolutely you’re

on using There who has junk, all choice Oxtellar our the efficacy extra to that our switched use physicians, launch add-on Some them it lot and years are not had pounding from who our how and lot extreme physician the PX an as have the as this need we we of is X monotherapy, that have of drug. that efficacious consistent brands that meaning but more is of change naturally about call been just physicians used excluding because and patients, as be in market really on and of add diagnosed What for been would expect the need to that Oxtellar better very over newly a have for we no a only monotherapy that question who for for been therapy X years, changes years two be XR for PX if or we’ve XR monotherapy us therefore message it. how need XR need to you XR. as way we’ve message patients Trokendi that’s extra and patients now, Oxtellar and you only if an first efficacy, the doctor junk other physicians a of physician the much first you physician here a so, between monotherapy add-on been far on have prioritize, that to of prescribing completely should reserving it

even the it XR is So, talk sales call sales a historically the the call. about to higher of call to where a the physicians as much receiving or call it in now in rep a may physician, PX may among was into where never a Oxtellar much, Oxtellar physician XR sales in have chance PX a lot get

get and a So, get message emphasis more and will and make very there with doctors, is different – big talking X,XXX who effort will we’re big a the who recent recent in a much launch few a will the monotherapy. about very shift change and

before necessarily molecule-specific some new prescribing maybe And because physicians that these of is didn’t to talk physicians not also their monotherapy just in oxcarbazepine. as well heavy we of that

be the message, always we And, Oxtellar different versus it what is will just our more will anymore, universe physicians to in in a is PX you everything on and than have. PX to it which the physician. monotherapy course, bring definitely the market, target much of is in oxcarbazepine very the can used newer the XR market emphasis So, in not I data potentially bring physician tell the

about market most of the of question, so coming channel of had for And which is for a bipolar that mood or you bipolar biggest predecessor it psychiatry about then, Lamictal, the that of are oxcarbazepine. in oxcarbazepine anti-epileptic mentioned are And market so are the drugs, Carbatrol, stabilization lot bipolar of indication currently majority majority segment market as the Regarding like and we also is actually naturally. about used of are is bipolar use on you actually Oxcarbazepine as Oxtellar you blocker. bipolar, if The mood don’t the exactly is more in anti-epileptics even bipolar is Today, and bit from for which at if the look course, which XX% that a treat on pyramid widely disorders. whole have the of what the of the in total XX% prescriptions the far sodium to market. lamotrigine, is call XR, little is because there for really carbamazepine years, many XX% any bipolar negligible negligible, psychiatrists one.

So, XR. if maybe, but very, Oxtellar outside bipolar about publication any it of it’s use or from a the psychiatrist low through if heard a really very single-digit

David Amsellem

helpful. that’s Thank you. Yes,

Jack Khattar

Sure.

Operator

Riley comes from B. our And FBR. with Buck David question you. Thank next

open. Your now line is

David Buck

Yes, thanks.

you channel. SPN-XXX? Can the helpful, which what – for but available last your the bit fourth for of of Jack. there? your about into a you payer talk $XX Thanks. inventory that by Secondly, the research indication expect to an you you when in you maybe for Oxtellar IP year move was for finally, change? called mid-April out Can talked position Just And inventory bipolar would expected quarter follow-ups some do had you typically of what in is comparator increased of terms in couple be be Greg, a the about million,

Jack Khattar

that to in and Yes, program. publicly going to that it position thing, at doing things good for exact that is exactly but to disclosed able go, point really the long-term to how I’ll is going how that, David, tell IP can we necessarily protection planning I’m point. for position of the a it we’re long say, program what very comment in I specific say that be one on product go what what as regarding and to it at not is this haven’t we’re IP position you not is to and a that this lot make a because bipolar, for the bipolar we’re far

SPN-XXX share. hard really the as payer far that As that feedback can get research, we on we’re working on meaningful pretty to

April Investor looking if forward Day around is at we hoping able time, that I can’t we do meaningful, really sure, And have are that be something meaningful XX be that in the share that day. for will to if definitely promise We but to it it have we anything is actually that and have certainly to Greg?

Greg Patrick

prior was respond to [ph] is question Right. our respect fourth inventory about to that data tough directly our And if in levels, so that in to is nil. estimate, would show your precise not in XXXX calculations accumulation question be very because OR challenging. year, this with inventory negligible, area David the getting your XX a quarter But

change So, in quarter it and there we was fourth clearly why called pattern a ordering discernible that’s this out. in

David Buck

other, And more was just versus a it Oxtellar versus was the one it follow-up, Trokendi? more product

Greg Patrick

Trokendi wasn’t more Oxtellar Oxtellar were it XR, another, even Trokendi maybe a actually, XR. they probably on No, one little heavier with pretty XR much than proportionate than bit

David Buck

Okay, that’s great. Thank you.

Operator

Janney. Esther Thank you. question And our next comes from Hong with

now line is Your open.

Esther Hong

Thanks.

Thanks. on expect second staying trial So, the talk this half you the can how a know so expansion? data, potential label about would of could like, in look quickly see I to we year, for when that bipolar disorder, Oxtellar is we design begin to see could what trial expected

Jack Khattar

Yes.

share at their get feel comfortable the with the down that sharing as length it blessing we at discuss time. we have far that on design, nailed I that and As FDA will more more when designs, all and

mean As later. maybe year, trials to the the this end the the would take the if program way I mean far these we a a beginning start I year from till few timing good of all have year, a as in months fall

end this today. nail any do really specific very to know maybe timeline be Again exactly when that’s around and timeline were you into But we give have we start for XXXX data. you we very, design not So rough the is anything now will of I then to get gets the down studies. until if

Esther Hong

Thanks. Okay.

Jack Khattar

Sure.

Operator

comes with Thank we Jefferies. Steinberg one And from question, time David for more have you. that question

Your line is now open.

David Steinberg

was was buying then curious so scoring a Oxtellar, your just big were just launch more revenue, just I and there the [indiscernible] quarters? the you just a curious growth $XX of so rapid to curious stock Trokendi the in why in am not Yes. Thanks. wholesalers post QX, mentioned Thanks. in it’s the pretty had previous a million almost a but quarter de-stock why of growth still has the previous little is regarding the migraine nicely, kind follow-up and if one I line, XX% so been in decelerating de-stock much stocking am that was I was ahead from in there

Jack Khattar

we There noticed wholesalers number the prior the third was not more Number can had also certain determine the I pharmacies than chain same they a de-stocking as were and we large in ordering certain behavior think in the quarter, pharmacies, for one. also months. two, the pharmacies

price in a the think happened the what the products it ahead into of channel, segments time, have by So in has wholesalers increasing announced is – noticed both to tried a was they that we front pocket. that in and in the both company ordering part of that products that think prices We pharmacies and increasing of here does that of and price that increases directly year. their get drops practice of early in as

procedures think some – So to that much, we going additional better. going will additional this be to we and allow have forward reconnaissance set are much I up us control

XXXX be in that to wholesalers and setting notice are in dealing fourth excuse me quarter pharmacy the procedures and going an of because that of with our – guidance additional are quarter anticipating fourth up we our because of XXXX, these we our terms in You the not stocking practices chain.

we they think anticipation year of price in reputation timing really driven the part increases the early of and So the in we the don’t was but it were expect by right. the

David Steinberg

in you be inventory those the mean types I anymore IMS though days, old of management with shouldn’t movements it but have happening But agreements, happened no? or

Jack Khattar

but Well, we they do, happened.

Operator

for like Khattar Thank closing call I Jack any turn over would remarks. back now you. to the to

Jack Khattar

top for exciting SPN-XXX, the submitting Supernus. X initiating SPN-XXX study the of It we final X these including for NDA completing bipolar this In later also and year the Phase line trials and fourth X releasing trials XXXX results on line for Phase significant the SPN-XXX, Phase a to is time form top program results and achieving look at SPN-XXX. for milestones the release forward an

morning forward the us we and the look execution. addition, to Oxtellar to on Trokendi the commercial XR to year. focused maximizing throughout Thanks continue brands and continue XR you upcoming sharing we this with again joining In be with updates for

Operator

thank and conference. And you day. disconnect. conclude today’s a great all you Ladies have gentlemen, does This Everyone today’s gentlemen, for in program. participating may

Supernus Pharmaceuticals (SUPN) 27 Feb 192018 Q4 Earnings call transcript