SUPN - Earnings call transcript Q4 2021 | Supernus Pharmaceuticals, Inc.

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Operator

Good afternoon, and welcome to Supernus Pharmaceuticals' Preliminary Fourth Quarter and Full Year 2021 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 Investor call Pharmaceuticals. Relations like Vozzo to now Westwicke, of representative would turn over the Peter I for Supernus

may begin. You

Peter Vozzo

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

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

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

risks forward-looking course future current perspective may statements performance in forward-looking Actual this company's of of information. results future the may not management statements. on statements these from Factors forward-looking existing and latest the section Risk noted trends events make such guarantees company's regarding the uncertainties are the and forward-looking differ projected statements certain those These of reflect involve During including and Any in Supernus' call, those filings. performance. materially SEC future and

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

Jack Khattar

few XR long-term details time preliminary year I thanks we growth us quarter for and to full execute as corporate was Supernus XXXX to a to join comments about our get our whole accomplishments. results. impact on continue we Thank you, as work about the Peter. minimizing XXXX Good everyone of to more a like specific make year towards XXXX year for and which XXXX during and first the then fourth transition. discuss would taking Trokendi strategy afternoon, into and another outstanding the the

During decade. in the Qelbree, non-stimulant be a over launched XXXX, ADHD first launched to treatment we novel

We also as GOCOVRI growth future resubmitted and another Adamas NDA the growth third the device, acquisition our of for on closed adding which we key SPN-XXX apomorphine infusion the represents driver. asset

addition, XX% year the up with for record of XXXX. compared closed In a revenues Supernus approximately $XXX to we million

depression clinical SPN-XXX drug indications. Phase development advanced of we two for SPN-XXX nominated SPN-XXX our candidate discovered development the and internally novel treatment-resistant to in Finally, and II, CNS CNS novel product for candidates

are the Moving GOCOVRI we we the to in Supernus the full months million on month and Adamas in made of with promoting to track in January in increase approximately first specific trained business with that with the our starting is of of the prescriptions force recorded now acquisition, January, month accomplishments Adamas fully corporate a total the integration the progress sales and product's significant Parkinson's GOCOVRI. X,XXX of to field in a $XX the The synergies business. our of $XX of XXXX owning $XX XXXX. XX in regarding first goal revenues fourth on the compared month transaction million over million in under XX% the representing contributed quarter

quarter. launch the date potential in early commercial the have the XXXX. of we fluctuations for is the quarter submission assuming XXXX October approval company in with fourth preparing a by resubmitted PDUFA of Parkinson's And the for first in SPN-XXX timely The FDA. mentioned then SPN-XXX since received device FDA of acceptance disease infusion in we of the for As treatment continuous earlier, NDA the motor

prescriptions of increase of XX,XXX well in in Regarding reaching total Qelbree, prescriptions the fourth quarter with most In the quarter XX,XXX, compared the progressing its IQVIA total third prescriptions January continuing the launch of an XXXX. XXXX, versus of is available, to trajectory of the recent XXXX, seven-week a growth XXX% XX,XXX. period first in corresponding fourth are same the the weeks, XX% prescriptions total the in quarter Moreover reached month quarter-to-date XXXX. showing quarter growth of seven during sequential total rate first

the In ADHD of addition, expand total launch XXXX. about quarter for the indication. in Qelbree X,XXX over to in FDA base to investment fourth will well for adult market Qelbree's represents Supernus the segment the XX% market. assuming of prescribers enters the continues are finally with timely adult prescribers its up supplemental in XX% the the the quarter approval from preparations heavy launch third in prescribers of as market, continue it adult which XXXX, by underway the the potential its of of activities in NDA X,XXX XXXX And of

the have On with made good in coverage care gross-to-net we progress deductions. side managed managed in improvement continued care

examine treatment will change is a activator resistant II in total For of outcome five Phase Phase to in depression. and Scale which initiated The parallel a is mTORCX randomized efficacy SPN-XXX our scale. score, treatment of on of depression study placebo-controlled we measure primary course Depression baseline end-of-treatment a XXX active first-in-class study design orally rating the the Rating standard from The safety patients. SPN-XXX II over period weeks approximately the double-blind with adults multi-center Montgomery-Asberg

in program expect for with treatment second half of SPN-XXX start the a XXXX to seizures focal of II We in adults. continue to Phase the

you huperzine action CNS activities conditions cholinesterase pharmacological If a a SPN-XXX recall acetyl with as and is for novel such potent an A, utilizes epilepsy. which and inhibitor form represents synthetic of anticonvulsant mechanism

hold sales competition in finishing the XXXX. million, strong Trokendi performance despite Moving on net XR compared Also market, continues approximately Oxtellar increased net sales. with million the XR up products. migraine the $XXX to the to year to well, commercial $XXX prevention up XX% year in another finished of with reaching

million two approval and compared will closed the cartridge $XXX cartridge. generic the given Apokyn a $XXX injection to headwinds still a combined still of apomorphine in $XXX flat of with Apokyn delivered essentially products competitive such year faced need the sales Pen For year. to to became the full timing out generic an of the company XXXX, administer paired to million availability product XXXX. net the with be of Recently The year close it largely the the million injection. to sales of Apokyn product the is during aware unknown

Finally Tim. we further turn I will over continue now position to be opportunities our that, and growth to corporate strengthen leadership With active in looking call will strategic the to for future in CNS. development

Tim Dec

Thank everyone. you, Good afternoon Jack.

preliminary full refer please XXXX to As release. quarter press I review our year fourth and results, today's

the financial release following it due anticipates, the ended As currently noted to statements additional XXst require the XXXX, year December press for will company reasons. time to in finalize that the

As target the ransomware attack. of in company XXXX, discussed November was a a

The end well expected its any legacy the previously a modern in to us securely Pharmaceuticals. Adamas completed transition be on impact by November up its long-term accelerate to While the of Adamas ERP data operations, attack company to attack underway it acquisition ERP to upgrade which business did and process automated into backed or certain accounting system. system more disruption system, to the planned year. its and of of impact ERP simultaneously is long-term in no of is integration caused this the XXXX, company's its manually QX complete restore Also the The viability legacy required of the had significant were system. our functions

ERP and company restore to integration operations Adamas timely. be legacy our ERP will implementation system, result a file a running of the As unable the of having to parallel XX-K the

expected ERP am proud will XX months We grace close. six depending year. can between implementation end eight after very have The should significant. The Therefore, made. on been XXb-XX be new tomorrow months before completed and and the of past complexity. QX be ending I that of two-week of filing been XX-K be progress to months implementation several on we a market file to its new during system it's or take our ERP March challenges nine the this a to of generally over XX. period Realistically, the hope the our to able take is

was $X.X everybody fourth November to from be year compared is in the million. of Total same year. the net want of to quarter Before in the primarily quarter $XXX.X of of that preliminary $XXX.X Preliminary The the million second the will increase million the I revenue in of the full last total quarter in the Qelbree quarter information period product an launch GOCOVRI change. net current financial approximately million comprised increase due of and subject over of for go for sales and the I to sales revenue Adamas numbers and XXXX to XXXX, royalty was XX% remind of XXXX revenue and XXXX. fourth $XXX product therefore acquisition

the million the associated expenses of are and million same million, in and XXXX. million primarily primarily in launch fourth quarter research million Qelbree between operating primarily combined to the to and assets For attributable higher The in fourth transition acquisition. compared million, assets for to XXXX. million other to the Adamas expected due in fourth quarter as to compared the of to period to the quarter The is range in Operating $XXX support range $X.X development activity and associated range $XX and are costs compared to the is increase the for SG&A acquisition. $XX with launch intangible expected is acquired to of the of expected of Adamas between as $XX expenses Qelbree $XX.X and $XX same of period and the increase XXXX, XXXX Amortization with for intangible are million for of XXXX. between expenses the million due $XXX support and same transition costs $XX Adamas. to period for earnings The to XXXX earnings decrease

million, XXXX, The an of in revenue net Adamas XXXX. product November to was CNS acquisition quarter June was product XXXX. increase total sales product full million. the net net $XX.X revenue the portfolio launch was $XXX.X revenue acquisition of the of of second in WorldMeds $XXX.X the comprised For the and of due US Total of of XXXX million in in Qelbree million XR, and $XXX.X of royalty sales over of primarily year GOCOVRI Oxtellar sales increase growth of of XXXX, the of in from XX%

to For to expenses support year the to to assets expected both for of the Qelbree year full and million Amortization and for combined as $XX $XXX and million XXXX range between of US the and launch Operating increase timing between earnings full the and between increase due expenses $XXX compared $XX.X is year to primarily $XXX.X timing as launch WorldMeds intangible timing year to full XXXX. the The million The the million expected for support earnings compared SG&A XXXX $XX XXXX. $XXX.X activities in the full full US year US for as to to in Again, of million million acquisition. is WorldMed Adamas expected decrease and million primarily $XXX the range in of as the WorldMed the are due $XXX XXXX. XXXX acquisitions. to of increase expenses Qelbree range the due the of to of are well year full million and for compared are million R&D primarily the operating Adamas acquisition. is to

As million had acquisition XX, and to as by company $XXX.X approximately the is compared $XXX.X of the from to of due in decrease flow cash of XX, December cash marketable securities XXXX. operations. million The offset cash, December XXXX, Adamas, equivalents

we acquisition-related business be can These items, the as giving assist in they non-GAAP transparency manage and goals. of we our magnitude measures growing we share-based be starting greater internally how Supernus' understanding will compensation, call adding quarterly believe will on as the amortization non-GAAP well in depreciation. earnings our as business and and last contingent and releases discussed of of and As XXXX, financial consideration assessing assets, intangible provide number set in adjustments operational to the reflect changes

Now financial our full year XXXX. guidance for GAAP turning to the

from We expect and comprised total of to revenue. to million revenue million net $XXX royalty range sales $XXX product

XXXX expect $XX to GAAP we operating to $XXX year range million. range to combined earnings SG&A Overall, XXXX, to full $XXX and $XX million expenses million. year from from expect we million For the R&D full

tax effective an expect XX% finally, And to full our XXXX. non-GAAP financial We guidance turning rate of XX%. for to year

invest release XXXX, from non-GAAP. We for press the to the of $XXX million. enter Please that this over operator the the of to various the market. ADHD expect refer we in continue to segment is Qelbree It to earlier, as heavily call ranges mentioned earnings will will earnings in Q&A. Jack important activities to reconciling With we between I turn launch our range the to items $XXX to issued GAAP prior adult as non-GAAP million that, note call the identifies and operating

Operator

first Steinberg of question the from Your David comes Jefferies. of line Instructions] [Operator

Your line is open.

David Steinberg

questions. have couple good afternoon. of I Thanks a and

Jack, Apokyn break a I revenue you had Gocovri? total a that specifically us First more but Qelbree just down can you guide generic. little you And and because in for particular a gave it number, ask mentioned guidance for Apokyn

dosing? adult adults versus milligrams, that WAC related obviously talked it's competition given the I would particularly is the run -- You've if be And is then about effectively what in approval, it's from quarterly Thanks. above had you but be adult approved the pending your last pediatric it XXX that weight-based rate. I given And milligrams, secondly, to would for the And if so Kynmobi, it's dose prescript the average the year $XXX. $XXX previously Apokyn know Qelbree mid-XXs the below on that generic? revenue gets a the once far? in XXX double what's of know WAC. guidance

Jack Khattar

Yes, sure.

don't all all than expected business Oxtellar First Trokendi Apokyn and much Oxtellar healthier key holding to well. to the XR Qelbree, same XR a be employees I to exactly to it's some you on mean has just I the XR, different I grew about. of around it's last year is credit nicely. face been and grow it for maintaining minor been up know in situation Clearly, we the note as will by and that We've And surprise will talk growth most and from Gocovri. I us. kudos dynamics The mainly Trokendi managing very revenue the our the obviously about degree still coming question. very the -- -- so be in the side, holding extremely the will the by it XR but amount, important major some are points going in really mean is if healthier pressure much a products speak. of XX%. going mentioned brands ever we a to as portfolio

XXXX continue to little remain how in and will So to always to far will well? will the bit as it a going but up question what it It's decline. extent decline hold

and the XR view. Apokyn Trokendi you between of point where a So from that's of most pressure competitive see

As still at last to far assessment XX or on and to and assessment a to mean, so early came point impact the the brand for just hours. make detailed us it's very as as really impact what its be. within generic This on deep XX the that will the APOKYN this brand, I hours the a is very recent news in

noted As our I pen. use in the the will cartridge of my require remarks,

similar substitutable. tablet So if capsule going oral were to it's not a quickly or situation an as this that is be

a with depending as to depends hub product, nurse product. of on remind impact around generic everyone -- availability educators, secondly, new on importance a nurse all to the on for have strong that get of therapy services the patient patients the of significant may tactics them then So logistics network that very to it initiating the the very will of availability surrounding on help limited. timing starting year the support therapy. the all the and intervention be on surrounding stay as apomorphine, and well the we the and this Again, the an product with. of and And start I

and always these they we product and are that being services So the felt, value the through important in help and these clinical hub on important that to are services educators. getting patients these

market heavily. little market. I even of revenue, the with pediatrics. a investing gives framework I as about very which will to adult product that you invest portfolio. we're to just mean, In the be at and we're excited will products clearly, we're we so in in half not are than the the mean, mentioned, or like also Qelbree, talking about half launch the I done heavily the about where points continue a and we segment, launching the since behind more pressure launched And hope I pediatric, is we within as bit least the So the

will as it the using physicians probably daily We're with going times think more perspective, bit appropriately a a more the starts comfortable little always average exciting to for around to the be product. up. we somewhere lower, the the they behind getting between in adult for think us with XXX-milligram Supernus product, on titrate huge starts broadly huge, XXX. product is that, We relation dose, dose then invest very XXX, And on to it to the go this we're XXX and then the it it product. start -- all-in So Qelbree. going Initially regarding from and

certainly will with much higher be it which the pediatric Adult to term. be XXX in XXX in currently more to will XXX we range. long is XXX on than probably the adolescent, be the project So it more and to the

David Steinberg

overall just had But did expect you you should mid-XXs follow-up, you. run approved Thank APOKYN a said you that a the revenue in to Jack, previously and was rate. And the Friday. quarterly generic guidance give be on

overall be final much case give Qelbree? will that million And in then, that APOKYN just How you averaging if still about the sampling? us view is your question. a doing much understated you And the guidance how quarter? Can you would on there? are sampling stopped So some a be scripts actual $XX

Jack Khattar

that Yes. but, said to at potentially for which back -- plan difficult factoring Well, some being point, would on the than quarter. we us generics, I so with On obviously, than APOKYN, so news it are quantify per mean, impact had XX. folks it's much number, the XX again, your for we the on to lower this we maybe

product framework give be hard looking and happy per us a little but shy more from to visibility giving quantitative can by bit try we speak. specific. the or than more do more I to generic so on quarter, to a number it's a specific perspective, for status again, next from so have the to guidance a Maybe more know we'll we of be and We'll real that. you're for a And away really

As far activity as of same the continue the with samples the similar we for with do very level and adults. we'll Qelbree, will a

in far XX% a to to to continues prescriptions. from factor because that that real there factor getting the samples, And you apply hope can conversion discount the about otherwise be be. historically the talked prescriptions gross-up as a sampling? would that would or as we to the something We've the XX% of So is maybe that potentially as

David Steinberg

Okay. Thanks, Jack.

Jack Khattar

Sure.

Operator

Your next Amsellem question Piper comes from of of David the line Sandler.

line open. is Your

David Amsellem

Thanks.

I as have GOCOVRI So and a some and you wanted few a to ask I gears starting point. on questions switch

GOCOVRI. in those a So of overall and to like trending? is you're know provide the you of that do that's two, are Thanks. the regarding -- to to way just product-specific for going that then where take going pandemic as how on there in pandemic something that going And haven't progresses? were easing Adamas. talk and impressions headwinds trend where to going might what's XQ, Can are were product some GOCOVRI Is lift your number the talk a the guidance. provided But Adamas know of sales I trend volumes cited on of in number new you XXXX something where number or And starts terms XXXX? how starts metrics starts. by forward? what pandemic-related in provided new of new some thinking your can GOCOVRI, volumes in one, I to So you about

Jack Khattar

promoted mentioned, to XXXX XXXX, versus in basis, last the I experienced regarding one brand XXXX time from some growth year mean January was give year deeper Yes. is as product prescriptions its you of and January obviously -- period more as XX% the these if we'll the so continue effect enhancement and metrics being last goes control positioned previous the helpful. about I happy find which and are trajectory, in we some on I overall, I prescription on really will perhaps of and be more where dig we have the you way January a growth it of brand take guys mean, various on. more of versus as metrics the mean we've same But think forth the

lot Now clearly, a have factors. of you other

One is the of access or them so and on to is hope as not pandemic on it easing products and physicians that off we just Qelbree forth. as you even all far mentioned GOCOVRI, completely our

franchise. actually away So not does go that the GOCOVRI all on we as on, hope goes products time just the

certainly, be as these better next back again have QX to Also we all quarter, behind So us goes dynamics. will so the much feel speak. a on to will to probably time

all or deductibles not little As therefore, pandemic give much how gone anyway more QX patients the we like bit we of this. volumes is forth. is around better just And insurance know educated business you because be quarter have But guys a high able numbers on so the also, a our not always many difficult and a better metrics by or in will we'll then. things feel gone or to

David Amsellem

new starts, something GOCOVRI? you Okay. to can on to provide talk you're that going not or is And that

Jack Khattar

I don't it at me. those happy wasn't about mean prepared to and I can. we today but talk with numbers provide look it them. to I we're have

David Amsellem

hard hard on The to question where I overall is but where to mean to ask obviously, consensus guided is. guide Street or lower a guide. Okay. just it you top line it's And it's than then terms consensus on of – the the relative in

million. or that reality I conservatism APOKYN? on of So channel guess Is get of perhaps function Trokendi it just of of some the a some generic? mind $XXX trying I'm on sense the with function is destocking to of underlying some million to assumptions in a that ahead the $XXX a that

Jack Khattar

Trokendi the points APOKYN, that differences for consensus versus which XR I main example. The pressure are mentioned are Yes. and

both have. than are case worst consensus assuming products what bit we So little probably on a

or are. that's growth where in about It's growth points the GOCOVRI pressure in Qelbree. not So

Trokendi So XR. it's more and about APOKYN the like products legacy mature

a conservative not being so this of on mean especially But So year this at things be conservative? very that are products. more we up to be lot side, in could might knowing we're happen to we the point, end two proven on trying I that guidance. safe actually Yes. these

difference So between guidance of consensus products. two really a the on the is our these lot and

David Amsellem

That's these biz and about acquisitions want How I I Adamas of your something you on last the if And question get in with leaning maybe missed are thinking are best pipeline, helpful. But apologize integrating thinking stage dev you and days advancing Okay. And just lean? you asset also some internal I that? closing that into or if commercial products then and this. of of may terms ideally you development the or the through worlds? are assets stage more about like WorldMeds, where you both how

Jack Khattar

short WorldMed ideally, of we of our because the that, really it really the hopefully, the about on the in also or Yes. you launch a and US probably of it's or look is nice yes We commercial, hitting rest to late-stage, quality in product quality X in focused launch the and comes a be can very reasonable gives are manner course earlier. adult, commercial like similar Then will where and think that think product gives always a it find goals of we I really a both pipeline achieving you you both asset. find it late-stage about pump goals. pipeline, of But specifically mean later. acquisition pipeline, sooner if and favor would you if Phase at area pipeline than Qelbree our mid-stage you building the

be in trying than we in to find CNS II what we're be for or psychiatric right very pipeline assets area or Phase on would assets be and those or II ideally look nice neurology agnostic either now and focused in that as Phase Phase which to fairly assets case that so III later III we between and be. would Phase are -- those So could could would

David Amsellem

Thanks, Good. Jack.

Jack Khattar

Yes.

Operator

the next Jack of question Padovano Stifel. of [Operator comes Your Instructions] from line

is line open. Your

Jack Padovano

have the on Samimy. is What questions for taking in for assumption timing This first opportunity? Qelbree rather net? to we going had -- SPN-XXX second guidance. Jack baked gross later is the be will the than if the were Annabel event normalization that more half Thanks for of And of on that Is in our to a comes expected We a impact on that one? question. calling some the than half any

Jack Khattar

Yes.

gross moving expected hint the Actually that along to did and to it remarks will little much that had in better and as planned been the on Qelbree. I hopefully to improvement we we are a far net my As course. than net gross it's stay improving bit

Some of in somewhere which you might remarks normally be portfolio I with that would quicker. have -- my goal adult approaching to much like remember made to the that the Actually, the on in the specified by previous that launched probably current you I we that time we in XX% is XX% line we're products. typical

will to always up that looks and to I bit is the your in screw between somewhere of going so and QX be all that with like And go QX in part you start the should relationship be to Now that the launch that a we in little the XX% know. But reasons question? fourth gross it quarter always to should anomaly an the obvious because net. SPN-XXX hit we it's we missed around going to of up. be Any goal the able of adult neighborhood XX% trend

Jack Padovano

That expected that as opportunity? become was impact just expected -- should be... if than happened to any to have would that going that and then if it's later But that come on

Jack Khattar

adult as can two on we any the we that soon view both as and important mean mean of we we the possible extremely are get fairly I everything launch I that No separate will products as whether the once perspective. we'll or I pump. Yes. bet to them from them as opportunities soon SPN-XXX possible do Qelbree to it's you it's the mean those products can market can.

Jack Padovano

Thank you. Great.

Jack Khattar

Sure.

Operator

at are Please There time. no continue. this questions

Jack Khattar

I to a achievements look XR. We prepare us as to XXXX. and Okay. would like close to and year significant our the significantly well well our employees in another phase in you as again look a corporate will positioning all us delivering as strong history banner We continuing next year. that throughout on for dependency for on legacy our to driving today. and Qelbree, the SPN-XXX a updating growth in XXXX forward company. Thank growth our products us GOCOVRI Supernus you. great our Trokendi for as manage joining for XXXX have behind to reduce our year performance thank We with Thanks forward progress

Operator

today's conference call. you concludes Thank for participating. This

disconnect. now may You

Supernus Pharmaceuticals (SUPN) 1 Mar 222021 Q4 Earnings call transcript