SUPN - Earnings call transcript Q1 2022 | Supernus Pharmaceuticals, Inc.

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Operator

Good afternoon, and welcome to Supernus Pharmaceuticals' First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded. And I would now like to turn the call over to Peter Vozzo of Westwicke, Investor Relations representative for Supernus Pharmaceuticals. Sir, you may begin.

Peter Vozzo

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

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

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

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

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

Jack Khattar

everyone. XXXX quarter join as our us Thank And first for to time we you, thanks Peter. Good taking afternoon, the results. discuss

the Trokendi in towards XXXX end XXXX work productive transition. the of minimizing Following a XR impact we year which

were an increase quickly of adjusted and the million, growth first representing $XX revenues XX% quarter million, our earnings on quarter year. non-GAAP over of priorities. our execute over year. of increase last a XX% performance in first to continued year. overall our first operating strategic long-term Total focus were this the strategy $XXX.X recap on the last quarter have We To And

we of acquisitions and record quarter quarter of first quarter the in products revenue first XX% first of XXXX. significantly which all quarter before performance. transition of acquisitions. of of the the XR full Trokendi overall revenue net XR in XXXX execution down last corporate result on was XXXX, development percentage our the on The the Note was from XX% minimize first diversifying that the base was and sales combined XXXX from of operations quarter XXXX, Trokendi represents a as total the the commercial full and both This to great our XXXX impact in

Regarding Qelbree, and momentum the prescription off product growth continued a shipments. this to start and with is great year

receiving actively are the in We from for the after adults. for market approval of launch the adult preparing the recently treatment FDA

option non-stimulant available only treatment adult For one them. had decades, patients to

to bringing of them We potential that now are patients safe with marketplace Adult helps the away years. substances non-stimulant that dependency. a and innovation be have have new, and treatment proud option first XX effective controlled abuse high novel to from stay in a

by patients approximately recent adult the of week XX Xponent in represents segment total IQVIA significant market. opportunity So a end the expansion ADHD launch now adult the largest prescriptions. of to to month. expects of for market According data, this market represents the Supernus Qelbree This the XX%

very progressing pediatric in Qelbree the of and market well. launch adolescent Our has been

in IQVIA take June pandemic is last aligning ADHD all recent prescription on successful track the spot on the well monthly its basis, ranking launches Qelbree of Qelbree ago most unprecedented facing to While the data the to top past and recent decade. is been Qelbree positioned has products since consistently among a launches. outperforming the most Based year, launch headwinds, a during on all we launch become IN a ADHD launched ADHD year

the of During compared XX% prescriptions. of month for high of to Prescriptions total the fourth an the prescriptions XX,XXX in March all-time first reached quarter recent XXXX prescriptions, XXXX. an XX,XXX quarter of increase most Qelbree IQVIA of representing reached

in Qelbree adult its pediatric the prescribers heavy will XXXX, expand up to in of increase sales prescribers of continues quarter continue and investment, Qelbree to the company prescribers commercial fourth over which Qelbree of XXXX. now first the X,XXX have with this base and will the psychiatrists support with child from quarters The third of adult our in the segments promoting psychiatrists. to and launch in addition, representatives spend approximately significantly We XXX year. In quarter second of X,XXX pediatricians,

the the Regarding XX% are under a quarter increase $XX.X has closing integration Supernus, the for $XX.X the during quarter quarter over the total reported net to sales XX% complete. of with the acquisition, performance its same approximately in XXXX, reaching in Adamas first XXXX. reached GOCOVRI prescriptions Also post the quarter of representing compared in million, the with been the full million last pleased GOCOVRI, XX,XXX by first Adamas growing year. the After by first of substantially we the first full product period

salesforce promoted trained towards the and million on smaller prescriber XR focusing end the is supporting synergies XR we to field Trokendi our upper much million is sales the fully tracking of Parkinson’s in business. current the owning in goal that a base. of continue $XX are Our neurology and be promoting the in Oxtellar $XX by GOCOVRI, of force efforts its XX-month to first

down of $XX to million were XXXX, recently compared beginning For today a $XX sales of have product net XR business. and year to our essentially continued been of Medicare the decline dynamics. the company generic some was surrounding situation monitoring the not approved last plans cartridge, unfavorable sales meaningful On from net has has impact last million, and product APOKYN, at due year-over-year quarter mainly and changes it the in year, Oxtellar unchanged net $XX competitive seen sales same XR the The on closely period while product year. the were first million the Trokendi

commercial Parkinson's with we the closely reviews company work fluctuations of disease. The pipeline, device Moving the to is of for quarter date on by launch this timely of action statement the it SPN-XXX October target preparing the in FDA, year. as the continuous approval is for SPN-XXX FDA of to first XXXX for in an the NDA The infusion their assuming PDUFA SPN-XXX. for motor the continue early

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

study as second anticonvulsant are initiate action conditions mechanism label synthetic in of CNS Phase We and in clinical utilizes and of form II with acetylcholinesterase track is epilepsy. a the resistant potent SPN-XXX which open huperzine an novel activities pharmacological for patients represents inhibitor XXXX with with treatment half of a such an to on a seizures. SPN-XXX A,

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

Tim Dec

Good Jack. everyone. you, Thank afternoon,

$XXX.X revenue results, refer Total net of the royalty XXXX same comprised of for and XXXX. first increase and product compared a was Qelbree growth million million XXXX net was year. due from $XXX.X launched quarter to to in the increase quarter last the revenue $XXX.X quarter first Total sales our the press of of sales product release. review quarter in was million. GOCOVRI sales which $X in in please in the today's product XXXX second first quarter Adamas XX% million, acquisition to November I revenue sales of product of net of was new in of primarily The of XXXX, As

the of XXXX year. accounting Adamas Adamas For combined last Benefit The the earnings a the favorably diluted was of of January during to a On integration or assets the of certain XXXX $X.X compared is corporate net the the same new of R&D due amortization of earnings is EPS diluted of in in $XX were of Using is GAAP the factors for benefit, for period associated increase of to expenses million there income tax Due The compared the required basis, activities to reorganization and higher XXXX this an million, in entities million first which convertible $XX.X approximately Adamas. expenses Income other quarter $X standard XXXX, adopted basis support expense XXXX. first tax standard, favorable the The SG&A of company million benefit year. XXXX. the, primarily the million the were to the is or excludes aforementioned earnings quarter due expenses and Method to The XXXX to XX% decrease costs The the for this Navitor. Adamas X.X resulted of for a Qelbree. to Because $X.XX $X now of same share of intangible to in the of period launch $XX.X based $XXX.X share as Amortization modified shares in a $XX.X quarter the attributable of first of and was acquired the due of million Qelbree GAAP XXXX. for million assets million for a first this calculation. associated quarter earnings same per intangible of intangibles, were first to to period the in quarter first million of intangibles first for increase XXXX, $XX.X company quarter The with XXXX. operating Tax Operating a increase primarily use for subsidiary the If-Converted compensation, consideration share compared Other non-GAAP was million period quarter launch is $XX.X for same net from compared sale XXXX, primarily to in to XXXX. the the now to $XX.X $X.X of in $X.XX million, the additional the apportionment with acquisition. the was period the as Adjusted for in diluted operating GAAP to same is in million compared state new primarily support This impacted. reflecting and for depreciation. per gain quarter recognized million amortization on retrospective debt. approach. contingent compared of increase $XX.X million first

to of million the in decrease as quarter million in and marketable the the company a XXXX, WorldMeds is to equivalents of partially XX, compared XXXX. acquisition US of the March transition securities, milestone operations. approximately integration Adamas, primarily related which XXXX acquisition The cash XX, from with generated due cash, As to payment had expenses cash and $XXX.X and $XXX.X offset December associated

for its For the year guidance R&D the and expenses ended non-GAAP operating reiterates SG&A prior XXXX, earnings. combined and total revenue GAAP company and financial

be sales and million product As million to such, total range royalty we revenue. in from expect comprised to $XXX revenues net $XXX of the

I For $XXX Overall, marketing Qelbree continue spend and non-GAAP to earnings in the operating and of million the expect million This operating to million range the includes $XX now full million. to year range Jack range of relate from With XXXX, that expect significant to and we GAAP range earnings SG&A the Q&A. back expenses $XXX to market. that's second million. they XXXX to to $XX for quarters operator launched $XXX R&D that, call adult the in from the $XXX to in million expected as will third we from mentioned, to support combined full increase

Operator

from Amsellem comes Sandler. Piper Instructions] [Operator question David first of Our

David Amsellem

thanks. Hey,

a just So have couple.

the in landscape. First for evolve generally the a it labels. contracting again how think to should or going the Jack be to access with we managed just with same us sense is progress the to the in label for payer overall now on adults landscape and now as gross about Qelbree. and trend adults particularly referenced net get how care I is wanted will

on is GOCOVRI. So that's number two one. Number

year-over-year this Another contracting? about product do the Volumes think terms do that you're need footprint of lastly, And contract nicely. to generic the the one. about is how how going question APOKYN, or just been maybe of But as that? decline related are payer bit think contracted the then or on think So Thanks? any to you growing historically you products? KYNMOBI payers from on you more above? hasn't you Do with interface grows, differently in

Jack Khattar

Yes.

whether product, we on covers contracting the that care, on and and have So pediatric approval the adults, any the for question first now Qelbree it's managed basically done adults. with recent or

in So all perspective, forth, and Medicaid population. care so managed about the states and from our the payers, with that the PBMs, patient is the discussions different with the

approval already discussions So these not the negotiations of lot should have occurred. restart recent or that a

and market we're who's everybody really is We're substances, that patients to partnership first the most to appreciate we Qelbree, And make that willing to not major give alternative on unique mean, went XX partnership out role just landed of everybody we do XX% abuse obviously, or And in or pain And haven't is and we're not the positive subject positive executed very closely we impact have to and with an was to with with potential that the we year. to so hoping happy any is Now stimulants substance crisis over, of been the very concluded people non-controlled adults so CVS. else play attitude controlled there that incredibly an the actually to something a that. million to available another a the work forth. we making area, here with substance in controlled trying is here and the We've partner substance. continue with we're that do happy profile. the who's a is uncontrolled contracts. of million with status. something specific some which to trying the happy therapies high PBMs XX top also, of in positive or where where one of fall with the the ADHD which two has that CVS are a is I we last tier pleased whom That a

these as with continue more we'll older PBMs. goes discussions progress hopefully, on. time we have So make the to And some

specifically, we the XXs. the you gross with net year, actually, quarter recall, of of high one with got forth. were in because fourth worse, the deductible which and with quarter, far as in As expected is as a bit to the last high It may little products, all so first the

So I target And should the goes on. we have we in improve to will long hasn't Grossman really shape. changed would as as expect in moving be the our to as continue somewhere time forward, XX% good XX%,

too we're So against our far not off target.

we're discussions that continued a common have mean, an area recovery would lot on as us, as products. as other continue as GOCOVRI beneficial for would and to to for with well the there make Moving could mean, all payers, be patients I on far we'll our the absolutely, of these of growth that if I well be here willing to payer, was have beneficial sense and the discussions product, a always ground similarly, as for or

non-preferred Medicare that is decline, preferred been the So moved then doesn't on on change the recent there really APOKYN, of has recent status. some from much. changes regarding to was changes, lot because the a plans product And of where some

of worsening year this QX bit little a dynamics year. in us QX net versus of course, the hurt gross last with continued the the rest really the that the So versus year. And

I think I everything. covered

Operator

comes Our Annabel Stifel. next from Samimy with question

Jack Padovano

thanks for Hi, calling our taking question. Jack for in is This Annabel.

prescription that a trends acknowledging GOCOVRI, are product. this new positive, For isn't

conditions just invest Trokendi So And see Obviously, in who given picked need draw. a to Parkinson's? what some what sellers lacking? anything already, and And for should to can landscape? infrastructure of this audience? to here? capitulate, more year messaging will terms you know you the the in have your benefit more are make reach do that conversations what going you've to to the leverage BD, mass the up? are you target do more you we had was Or need physicians it And lot already critical the seeing in upcoming may market that And to

Jack Khattar

GOCOVRI, a view new GOCOVRI regarding we still car. Yes,

here. the product for assets. short continue And really for of So future it's growing answer it is important us, we a this very to is in, future growth. invest And our will

far anything fairly ’XX, when recent, before, a relaunched ‘XX also has the was product expanded. launched back which launch, mean As in was changed recent messaging that as XXXX, label the was in from the again the timeframe, but I or was

a unique So the we future off with in GOCOVRI the and recently months to about we marketplace the of as again, no only clinical expansion future was is if resonating the with we continue of the for There that profile. the message, approved growth, continue product very only label, results with other continue product dyskinesia treatment obviously product continued with specifically major ago. and prescriptions. to a And especially the it's positioning, for we product message see invest recorded It's growth XX in future us And which momentum that and with unique to the see physicians product that is label. with episodes. appropriately

benefit certainly does existence regarding the in your question product benefit existing of does the other infrastructure Now portion our our from Parkinson's overall. and

rationale why acquisition, and acquisition the general. part that's unique So WorldMeds the in the we US and Adamas the between obviously, synergies of the acquisition made that

these to so markets, so to that companies And market. case a our desperate of into a So we'll marketplace. case depend have raise business scenario, we the might cash with be benefit already expectations second the are continue and in they speak. overtime. becoming typically, But to closer the to who development, evaluations if start is on the see take and really a runway, getting more value, they by hit their of in all and tap on may finally, kinds cycles, to need no you it quickly experience more certain long into from get have question then don't cash question, expectations a the don't reasonable bit capital their that little the typically need change range, Others of to

by we approval in year. available dependent focused case scenario, pipeline pipeline, is hopefully, mentioned continue adult a we're as our to pump in at bag, really first very whoever And II. our trying Qelbree look target the of there, pending on will it's launch latest in Phase the at on is time. that all FDA But we things in times are we before, a the So space. few different The the assets quarter next we case out to that as also expand launch the mixed

whether and ideal, will So can later or a stage psychiatry. find if neurology agnostic, we at something is be fairly we're in that that

Jack Padovano

Great. one could you. have more And I Thank question. if

the we've patients, of for make heard it the barriers the with for be comments words, just But of APOKYN, for be about like can't APOKYN, dynamics in For used to circle product are other onboarding seems or are there still how currently will geared refills. penetrate. new to it patients generics the the generic care comments the why of most difficult on

Jack Khattar

one With is not the is prescription, lot beginning not there's the circle to new on so important later just of care we to patients, offer at journey APOKYN they when even a speak, holding. very after the initiated the simple patient. got There's a lot prescription and that straightforward a of hand of the the patient services with a

the set follow appointments product, with around they the they do and the to up patient reach patient, nurse out basis. up they educators them, with have With routine there, and they we that a the network on the out training

questions also that with well maintenance feedback product. they just any making continuous actually prescribing have back feedback, patients, they're of is new the sure patient, this goes but to the physician. the So of doing initiation any not If

then the a and device and as a the have all services addition still was to offer. feedback clearly, pen. we approved patient cartridge in that used to And our our our that, generic to closed with be have the there cartridge of is we surrounding So loop recently

obviously. be that So for generics, not will the available

we in situation so far direction So has that the evolving been right view us. for

as in my prepared business mentioned significant seen of any we I haven't As remarks, of impact today. the

Operator

to turn the the I questions Khattar do any I conference not for see back Jack Speakers, over further in closing will remarks. queue.

Jack Khattar

We're strategic Thank and from momentum Qelbree look future we drivers growth on the and with very these two building GOCOVRI. first the pleased growth forward on you. key rest the focusing our priorities for products our quarter on executing Well, for growth, two of are on our XXXX.

continue remainder SPN-XXX throughout us the potential and by delivering Thanks the first the the year. another quarter to I will forward the potential today. the year. XXXX. approval with joining for prepare progress in to updating employees the progress quarter solid to to towards the for FDA positions work launch again our well which of would us on for you thank We all of FDA to We'll for look our like

Operator

all participating. concludes call. you conference today's That for Thank

now disconnect have pleasant and may You day. a

Supernus Pharmaceuticals (SUPN) 10 May 222022 Q1 Earnings call transcript