SUPN - Earnings call transcript Q2 2022 | Supernus Pharmaceuticals, Inc.

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Operator

Good afternoon and welcome to Supernus Pharmaceuticals' Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Peter Vozzo of ICR Westwicke, Investor Relations representative for Supernus Pharmaceuticals.

You may begin.

Peter Vozzo

Thank you, Jason. thank quarter joining call. XXXX and Supernus today everyone second Pharmaceuticals' financial afternoon, you us for for Good results conference after results. the press of the company Today, 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 for by call Following we

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

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

Jack Khattar

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

growth from products strategy, we long-term our focusing transitioning continued successfully During to products. the our execute growth XXXX, mature first legacy to and our half on of on

XX% million, reflecting in million, the year, were X% activities. $XXX.X year, increase its period $XX.X increase Qelbree year. were the non-GAAP operating continued of total half last of a significant this half last and representing first adjusted launch the And over over first For earnings same revenues an investment

the in ADHD as market. the represents novel approval May, non-stimulant the first XX for be in market in we late the Qelbree, April segment market adult expanding true the product into launched ADHD XXXX. Regarding years. introduced adult the received largest Qelbree of We in for innovation to Qelbree opportunity

according of to represents progress the tends pediatric total The the adult market's As data, than has and increased above seasonal. momentum at rate continues shipments. mentioned and market Xponent to be approximately IQVIA a prescription XX-week to with Qelbree's launch growth the previously, segment less been growing XX% faster market well prescriptions. and

of XX,XXX, base prescriptions total its XXXX, the launch the reached June more upcoming an X,XXX X,XXX back-to-school supported prescribers highest the with The XXX increasing in for from third of XXXX, increase the representing most recent compared the of total expand second quarter monthly Qelbree of the XX,XXX, to reached continues in Qelbree of During in XXXX. to second of XX% for product. month over quarter IQVIA Prescriptions the in the since first prescribers this the product Qelbree and the quarter of representatives, sales first sales adult quarter prescribers momentum company calling pediatricians, The preparation adult up its our Commercial approximately as of by child on psychiatrists. year behind be launch season. a will force of the and builds XXXX. spend is of

year. same XX% XX,XXX prescriptions $XX.X the the over approximately XXXX. the with representing second reached a period sales quarter increase product to XX% Also net compared million Regarding reported Adamas growing by the of second quarter XXXX, reaching million quarter solid delivered of in XXXX, GOCOVRI, second total $XX.X growth quarter by the of in last another the in in

the Moving pipeline. on to

company motor it with for for SPN-XXX, is disease. continuous application our infusion treatment closely to the of The continue FDA, the the device in drug work reviews as We new Parkinson's fluctuations October for of SPN-XXX FDA. SPN-XXX year. assuming PDUFA in Commercial approval date preparing timely early of in for this launch target is XXXX, action the the The of first by the

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

for down and period has generic Trokendi Apokyn, delivering on date of from sales the quarter our with SPN-XXX are mechanism We inhibitor this million, with with not initiate seizures. synthetic a acetylcholinesterase continues year. to patients while $XX to to the approximately of perform last year cartridge represents II continues fourth of study strong same clinical quarter a product is to epilepsy. with conditions novel situation sales which CNS anticonvulsant potent SPN-XXX approved in utilizes Oxtellar of net the a and XR treatment-resistant on track form compared pharmacological A net the XX% the seen in XR million $XX a Phase to product as million, $XX an action in an open-label well, a surrounding business. year, increase company such activities last of Huperzine On impact monitor meaningful were

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

Tim Dec

you, Thank Good everyone. Jack. afternoon,

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

second excludes intangible second in the in increase intangibles SG&A the the Amortization first same million Adamas associated quarter $XX.X GAAP the attributable for the in higher were acquisition same in R&D and combined The expenses and XXXX. costs acquisition. with amortization expense for $XX Operating to Qelbree quarter of the were million of million $X million quarter is well $XXX.X to to on of $XX.X Adamas million is assets GAAP to in amortization quarter the XXXX. as due the operating as of a The launch XXXX support XXXX. the of as of consideration operating of as -- to with aforementioned GOCOVRI. to and XXXX, to compared intangibles, contingent XXXX depreciation, non-GAAP compensation, of share-based XXXX. launch quarter in the $XX.X second period earnings $XX.X expenses were compared were is compared adjusted activities a decrease basis same primarily the cost second Qelbree GOCOVRI. the of which increase and to On million due for earnings to $XX.X basis million to For support associated for million for compared The period support earnings

sales convertible million there's a if-converted $XX.X on million new share this EPS now $XXX.X XX, increase diluted an on This product $XXX.X method ended XX% in period the million to royalty I net increase in diluted earnings revenue treatment of of of growth compared revenue of XR, use X debt. net in net of year primarily additional or $XXX Apokyn. January of call, per were and new per share now $X.X is X.X the to XXXX the of the part the in was million required the last period this comprised and debt from Qelbree was net year. revenue product and was modified by last million, and calculation. acquisition Based $X.XX year. The Trokendi $X.X in retrospective the of offset company mentioned to the XXXX, to Total second in of instruments net compared million. related November sales adopted approximately decline As for for of using product accounting diluted a the million company Adamas the in in of Total same or sales months our quarter June standard, convertible GOCOVRI same to GAAP approach. sales previous the shares for due XXXX XR $X.XX standard Oxtellar product

$X.XX same months basis million of to months the of higher $XXX.X The ended months expense GOCOVRI. $XX non-GAAP tax a activity factors first of $XX.X per $X.X December $XX.X of same months compared the recognized intangibles, tax the primarily same June same XX, On the was Qelbree X of for associated operating share to The $XX.X compared is diluted months period primarily was earnings year the on XXXX. million period for of in earnings GAAP ended on our XXXX, in due XX, first tax which basis June Navitor. ended a the certain call, same of XX, benefit of to launch million in for last XXXX. subsidiary million of compensation, as as in For the the intangibles state XX, same X $XXX.X diluted benefit first the R&D for our consideration excludes in was million to attributable or aforementioned XX, share-based share X expenses as period decrease XXXX, $XX.X call, is the on the June $XX.X expense QX XXXX, this GOCOVRI. Adamas last reorganization expenses Amortization the due SG&A support to GAAP This period discussed to the impacted to period million favorable to $XX.X compared the of and from gain was X XXXX. Again, the compared in XXXX. as to of a is amortization or and XXXX, was a amortization expenses was contingent net in Income Other our increase corporate first combined per million XXXX, operating discussed million. for the compared to Adamas period million income the the a -- months in months a XX, $X.XX with that X net $XX.X million were a to X the compared Operating for depreciation, apportionment first of Again, X support tax in were entities for the the primarily due $XX.X million first a income year. acquisition, $XX change, which this share intangible to of support XXXX. prior million acquisition. income as ended million assets GAAP well million Qelbree to for launch due compared costs as earnings expense June $X.X $XX.X for associated to was June cost XXXX, million on of of sale of adjusted on as with $XX.X ended resulted in XXXX. as to income Adamas and distribution in approximately increase the million of

June XX, primarily XXXX. The had million compared cash, XX, equivalents $XXX.X generated securities of approximately cash as to company $XXX.X increase marketable is in to XXXX, December As and due million from the operations. cash of

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

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

expect range combined expect support includes from that R&D of the will the to earnings the This For continued turn and $XXX increase SG&A spend relates we we year that million to the earnings for $XXX that, Qelbree operating in in Q&A. to GAAP the call to non-GAAP I full With marketing Overall, to million $XX significant market. range million. and expenses range Jack $XXX adult the million. to quarter third million $XX full over mentioned operator to the XXXX, launch operating range $XXX from XXXX and it's from in million to year now

Operator

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

David Amsellem

just had a couple. I

year? expectations kind presence. thinking might know generic market and specifically, early first And to bit terms Trokendi is I on net first just as about are the Can big things a about talk And the then, Trokendi. that's still And net? gross stand you're of to to but upon the it you latest question about next here with where second the may the talk for about talk talk you think there? So little So activities your we that, related are in which gross the should about question. how the moderate market on early erosion extent year to And what progresses? fluid be competitive generic about contracting Can PBMs? dynamics the just Qelbree. of formation to how of dynamics

Jack Khattar

Yes, sure. first I'll and gross regarding Qelbree take net. the one to the

a most the to or adult, somewhere we recall the in gross the recall folks we might may be we're XX% too of quarter we by You launch far XX% would not actually, like time when ago, said the about And net. off. to to

the more the that point fact, wise. speak, are X and We very key been low so concerned. due are PBMs of the at closer a far bit this as getting to to the in we negotiations able to negotiation finalize We're on little is contracts as haven't XXs,

the trying next and how end target an the to mean, your be we rest of year, so fourth or basis. -- as we on target XX would by quarter, shoot I somewhere and be ongoing question we're in the would target definitely regarding it quarter of ultimately, could to certainly, So the see through to XX, which progressing for the our

If where we ongoing that's you basis mean, an remember, see I going Qelbree. really this for on

the more have reasonable activities, with negotiations our them. mentioned, I And here to discussion. where actually far we a other big contracting we're PBM, think domain As mean getting we continue potentially I the I can a meaningful as

Before apart. were our positions very far that, very,

program it get paying we co-pays progress. rebates, patients be exorbitant does position making approach would as to medications to it we rather don't slower add we really like how build assistance than that business how so patient through It and But our not we're and nevertheless, So the as than really change just honest is would We our much. much value, be. to with our help you. access far

always erosion we point, what erosion this bit heavily product folks this we -- formulate guided how fund product time from speak, year your that's everybody utilized. next the be a we continue in is loyalty our look very kind little areas grow brand looking that in too is that the all, other difficult obviously, be where Brand the doesn't to very that and business goes mean typical a to mass market, for and and next prescriptions position I for at so problem how product to a neurology migraine. mostly very, need to we've help potential continue a have so of way major At over so unique show which really growth like questions, we year X is the Qelbree. heavily as might forth at and the XR, business high type that no So our do tend end, or the model. unlike and to loyalty. a pleased as to that's for said we've this been right. the like and And of that and in on XX% There to be going retail to more there sticky, higher XX is in we're as patients. speak, perspective, it's Trokendi you for a On it of market months with as

these be much SKUs on timing little more importantly, penetrated clarity, we generics are therefore, talk going bit better as January we would color the in the the information and base February we gain number about we to like year of more that hopefully, as generics. at of the will So and case generics, as goes that to more give to so And the more closer by number people next on time then, and and we potentially forth, look of when like get course, scenario. people on and definitely a competitive as it guidance a of

stay hopefully, for So, give goes as on, on And tuned more. can time meaningful clarity we more that.

Operator

from comes Ken next Cowen. question from Our Cacciatore

Ken Cacciatore

more Jack, launches pharma you've product than seen execs. many

And able then pump, in about bit patient that compare the if is characterize $X.X your we're easily out this you So you as you've the that clear on remind Can be going you've it? DUOPA in little could wondering a to it's the what DUOPA. Qelbree, opportunity get Is something market? us of that little might talk useful apomorphine how pricing roughly performing. be? a be think I Is successfully about help that shake if over coverage billion this where the of and had here with pathway was you talk experience for. this bit had to you to your is and now pump contrast and mind could the would this with fairly the maybe drug? And the the Maybe thinking pricing, time in market understanding on

Jack Khattar

know And the that different good -- about the has clinical Yes. Mydayis heritage actually that serotonin and the this its the in for unique we've atomoxetine times so the like different being much the seen many inhibitor. in a some that products involved have what continue are truly that's activity the atomoxetine. side molecule is just so profile our norepinephrine way the who it's I launches over of as very ADHD, we've forth. experienced This very showing product really of to historically many and and a than we action antidepressant, a the very that proven regarding mentioned on Strattera. space. reuptake Actually, a Intuniv but There for we mean, I so than Adderrall patients given another different and is This more and be given is been higher not through getting product. far probably Qelbree ADHD and specifically mechanism in and Qelbree to much people is that and products similarities different other we physicians and viloxazine and XR in even data from example, years, molecule. it's about also have not is feedback in why create a been

intensify So meaningful to truly increase of June. in building as about month extremely Qelbree the resonate are unique the a excited up quarter very the significant into fairly direct-to-consumer be to is be see, the starting together we're spend nonstimulant in us third the to with we our prescriptions prescription. well going that upswing very, And the Commercial it's season as as which third starting adult in that All the upon a in and our June were will XX,XXX momentum why folks. with back-to-school significant will which novel We're soon. monthly is We launch and that's campaign quarter. to really

So we're really every as big as be the possible to for we opportunity giving here think. shot, every product

So market. is to huge question? this the will big how your product a be, mean, I

the of One market, the faster of Qelbree. rate the news we it's much back growing interestingly way been planning at a about expected, for than good even launch

been much market. to we opportunity, $XXX the has this share, the penetration market than that's $XXX net big close price, be. $XXX faster straightforward $X of how fairly you or A something the to And assuming even to So X% lot market to XX% ADHD growing of can billion like in if activity math a is thought. take product as the

X% was of market ended can up It stabilized and equilibrium about X%, historically, and XX% high us in between So but it the that share. XX%? X%. to X% somewhere X% believe at what an as market Strattera at share. makes X% Intuniv as get we was at point some around Well

therefore, far even that. profile do if reasonable think the the the and we on that's you the product. expectations product able the is and not us we committed feedback Given as to should for of concerned Qelbree we're something getting, like this, a we are And the all adult. and definitely investment And why of do very than these behind higher believe as in pediatric product launch product see it like both We're in to be this.

the with in as with -- products apomorphine product them depend lot during these who a marketplace. the heavily going throughout Regarding use episodes, is And of there last current resort surgery, second stimulation before pump, a up or advanced type the they're very of do to review a in help it's product is of invasive infusion for satisfied as the they get apomorphine. device and FDA of course, the big here basically which we the which the NDA. it's episodes in on on gap they even the Parkinson's, alternative deep innovative the on really the the with end to where of label product well. continuous help a for whether continues several brain day. marketplace not the But managing more lot certainly, could is to patients day And infusion DUOPA therefore, also to fairly This

is perspective, for that stimulation, So these a really have right which from can little occupying a pricing product mean very before a $XX,XXX is I right good we brain see a DUOPA I is to from all and a between continuous drug, drug subcutaneous perspective, annual advanced the patients per DUOPA more apomorphine, our could the of a From space the invasive pump. bit who what tell a $XX,XXX really before patient. cost deep and Parkinson's is, in on benefit procedures you

haven't and We forth. and pricing yet strategy finalized so formalized our

DUOPA comment refrain is and but that's where has making that's will from So the something a been. on we

Operator

further closing Jack turn back it there time, so for questions, no this like are At now I to would remarks. to

Jack Khattar

concluding and Qelbree's our In afternoon, emphasize I to like call GOCOVRI's you. would top are growth Thank this that priority. our

for on launch excited delivering record preparation half Similarly, Supernus for the and about pleased back-to-school momentum Adamas the we year. would upcoming GOCOVRI's adult to thank completion solid continued to forward the updating revenues that the increased through momentum of integration you. a second look look are since We of the and the everyone and Qelbree's employees growth for of the with for the forward the with Thank year. behind building season. the quarter and to I are like remainder we our

Operator

conclude in the you Thank participation conference. for today's program. This does your

You may now disconnect.

Supernus Pharmaceuticals (SUPN) 7 Aug 222022 Q2 Earnings call transcript