- Earnings call transcript Q3 2022

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Operator

Good afternoon and welcome to Supernus Pharmaceuticals' Third 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. I would now like to turn the conference over to Peter Vozzo of ICR Westwicke, Investor Relations representative for Supernus Pharmaceuticals. Sir, you may begin.

Peter Vozzo

Chris. you, Thank and Supernus everyone call. for us joining Good third 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

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

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

Jack Khattar

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

mature accounted total XR's XX% strategy, from net Trokendi since growth we in acquired first quarter. growth execute the nine contribution our to sales surpassing sales, our products focusing net for long-term third XXXX products. our successfully the slightly launched of Products on our XXXX, transitioning or product to of product continued During months legacy and on

year. Adjusted months reflected investment million, increase $XX of the non-GAAP $XXX last million, nine Qelbree. representing year, operating total continued the over For same of XX% a period earnings first this significant revenues were in

the the campaign commercial company support quarter, continues launch since the shipments total growth momentum most in the adult more second IQVIA the Qelbree Prescriptions IQVIA XXXX, the XX,XXX, During for season. total end XXXX. direct-to-consumer quarter of XX%, of third quarter, third and by increased representing prescriptions population XX% recent And with the momentum Based increase including due a back-to-school prescriptions. season. compared the represented well an launch. to efforts, on adult the data total prescription progress important increased build launch of its during Qelbree’s the third Qelbree’s reached and the launch quarter approximately in highest of to behind the monthly at the reached XX,XXX, to weekly adult and month to prescriptions of of back-to-school in September to the age, prescription

XX,XXX from third was continues the base over prescribers quarter the third in solid XXXX, XX%. showed in by which XX% grew the pediatric launch of X,XXX to growth prescriptions XXXX. quarter, in after prescribers of of adults, of During prescriptions the Qelbree quarter prescribers its second adult expand and the quarter first up with full

only level among prescribers the XX% a performance prescribers Qelbree receive patients. from regarding to recent Qelbree, A adult with positive compared satisfaction overall of continue XX% Strattera. in We feedback for showed survey patients for to

of the third of quarter third [$XX.X quarter product delivered reaching another solid the a with XX% increase, [ph] sales compared the net growth to in of GOCOVRI, XXXX. XXXX, Regarding quarter million]

first of by net in product compared sales first to Adamas increase this For Oxtellar GOCOVRI compared XXXX. the $XX nine sales months nine million nine XXXX, of of XX.X X% period the the year. for same net months year, product of of XX%, XR sales product an the months were first increase, net million, last with reported continues to representing perform well a to

sales XR of Trokendi of year. net sales the significantly the reduced in nine months to year, The XXXX, the in provide the product period various patients programs. were company of its continues from through XXX For sales has same in-person last for to support marketing XXX second physicians efforts and million, million half but down and

to the on pipeline. Moving

but analysis. complete the FDA application. request announced CRL we As and safety COVID-XX didn't and that product travel NDA The device across could SPN-XXX manner, mentioned clinical letter additional risk that be to for restrictions. efficacy last timely performance in and several due the manufacturing new infusion approval information areas analysis of and including of month, completed labeling, drug related quality, not response FDA studies, issued device product the drug and rather inspections a The required additional the to the NDA, a requires

resubmission subject work the all timing We address initial of FDA an made or regarding NDA. partners to to timeline. the be to questions to to application clarity will and amendment review continue CRL determination our in a Class to a X the the the potential closely with the that FDA has will company's provide of and response six-months

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

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

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

Tim Dec

everyone. afternoon, Good Jack. you, Thank

today's for the same the revenue net year. XXXX million revenue royalty revenue $XXX.X Total sales As I XXXX press million Total third quarter refer review product of was of was of release. third $XXX.X million. results, and last quarter compared increase, XX% million, our in quarter a please third quarter comprised $XXX.X in of to XXXX to $X.X the

Oxtellar quarterly in net the sales the quarter The The due from company’s is third of XXXX the product of revenue increase product GOCOVRI history. Qelbree highest net Adamas of in revenue growth was and acquisition primarily of to sales and XR. in November

activities third expenses of the the and quarter primarily launch support was $XXX.X in the and in XXXX. Qelbree R&D investment of to consumer the period to the to direct as to same increase compared combined were For Qelbree for million, $XX.X This million XXXX, campaign. SG&A due

of of of due operating X.X is in XXXX. the million Adamas tax the acquisition. which XXXX. compared period a offset of XX.X in revenue expenses was benefit of Jack benefit million expenditures acquisition the loss to by to XXXX. in-part the GAAP from third the same growth amortization sales to expected of and third gain of Total sales third associated which net in in increase XR, to This as adjusted in earnings mentioned, period million basis tax campaign compared intangible intangibles consideration, third of as basis, expense. quarter or XXXX. the revenue September third increase of GAAP investment compared of XX% to the and tax The the the in compared quarter intangibles, year. a million increase, the on Qelbree in for a and for was As DTC quarter in share Trokendi and The share the same in million last X.X compared prior million XX.X and for of for last for XXXX sales quarter comprised per quarter the same an decrease aforementioned expense net benefit XXXX associated primarily XXXX million product for year. complete the XX.X to X XXXX XX, million, XX.X XXXX. a XR net in same excludes primarily of X.X as Total The million the earnings per substantially the share, Amortization contingent million support X.X non-GAAP stock-based the and compensation, due and diluted were awards, royalty DTC same income of to of was XXX.X to Operating to months date amortization from Adamas product windfall million, to product revenue compared Oxtellar to and Income or XXX.X the were assets million. XX.X XXX of ended nine the a million, was loss GOCOVRI of attributable acquisition. Apokyn. to decline in was due net million earnings, XX.X of product of $X.XX the XXXX based compared depreciation, launch the was $X.XX quarter period third quarter the diluted period campaign, primarily operating higher November net is period was was in Adamas sales for GAAP of quarter Qelbree, to with to XXXX date operating were a On

in the GAAP to X.X earnings amortization combined Qelbree, to XX, the first for activities million XXXX intangibles. XX.X support GAAP share to the support XXXX. first XXXX expense compared quarter first ended period Other XXX were nine first in September in compared the The ended DTC XXXX. in for recognized is in adjusted For On corporate launch in XX.X campaign, the compensation, per tax income intangibles, again expenses as gain period due first to benefit the DTC benefit share XX, the of of from of of adoption in period Amortization GAAP the of higher in tax the the as XX.X diluted for first expense in nine of for SG&A per of ended expenses aforementioned September months the the months earnings for a or year. campaign share interest on $X.XX primarily for compared XXXX. to for Navitor, September first XX, amortization launch million of million the nine earnings XX, of on of compared the subsidiary and non-GAAP XXXX accounting to assets XX, to due of excludes nine in nine new primarily September the net XXX XXXX share, a this which of due same a basis of R&D for diluted the intangible XX.X income a months or is Qelbree, was last XX.X the primarily of and first million same reorganization same based ended XXXX million, investment ended to X.X Adamas was a to XXXX. as Decrease million, and XX the million expense year. same million, million to of in and operating expense the XXXX, XXXX. XXXX. an XX.X to first of $X.XX was was a operating consideration, to compared September million and Income a XX compared period a the XX.X increase of in primarily the increase million of or XXX.X period GOCOVRI. sale support our nine in basis, period nine income a million same to attributable The same million of XXXX months standard distribution quarter the nine the in XX, was The September months entities months the appreciation., contingent were tax cost for the due as the earnings to million months months Operating expenses is for compared XXXX. to decrease

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

the narrowing GAAP company and XXXX For earnings. for and raising and for XXXX, non-GAAP financial the full-year full-year total revenue the ranges of operating the expected is mid-point guidance

such, XXX expect XXX from revenue As XXX we to million, million of to XXX compared total million. to prior guidance range million to our

range million, compared expect the to million, operating XXX SG&A to XXX million XXXX, from million prior XXX full-year to to to expect million of from our and For Overall, we to XXXX million. million. our we million XXX R&D range to XX guidance guidance XX expenses GAAP earnings XX of previous compared to combined XX

XXX as will million, the to non-GAAP our guidance now back operator We from expect million that, Q&A. our our range for I of earnings previous XXX to Operator? XXX operating compared XXX to With call turn to to million million.

Operator

Amsellem Our will Thank Sandler. from come question first you. [Operator David Piper Instructions] of

Your line is open.

David Amsellem

Hey, thanks.

about Looks on So, or first was gross down Can bit. just the a like net had few talk stable it a to just Qelbree. you trended little in XQ?

you. would early overall thinking talk as thoughts aspirational So, look negotiations you two time? how those to the dynamics generic there? helpful next that's us your number of [payer/PBM] are XX% erosion talk to differently on stand target little give then think formation contract a be you you of this, latest [ph] and about Thank about And as to So, talk erosion but one. where and about volumes related over year? Trokendi, can well. still of sticking to your what That may Number and like are XX% might market things sales your be that, might bit and is, on some about you or

Jack Khattar

Yes, sure.

Regarding is gross-to-net the the a than but in stable, a quarter-to-quarter bit Qelbree, fairly question fluctuation. first on better that's QX type QX, of little

yes, in pretty the in can still hard the would soon XX% in to parameters That to contracting did down. within we absolutely be if third achieve can more We're It's quarter. those. that target So, get great. The the as to is we working as XX% target it XX%. reasonable trend

So, continue something net us on we to the that also the that be on with could reasonable various will discussions hopefully will reaching gross eventually. help to have PBMs

to point, as and obviously, we're to hopefully said very it at getting we talk mean, at in this going XR to erosion, Trokendi year close earlier ask but about erosion by next we're I and XX% as planning people we'll erosion, December. far this look and are, we As point probably more February, for the around plan we

dip erosion XXXX. bit predict really that different over the to you kind the XX% and have little how might on whether or of by have. generic of be quarter many it later SKUs slower strengths quicker, of It the in and SKUs timing So, then is first end we months, the a product XX four will second a out difficult the on

on there be X question a will three but generic on fourth generic who XXX So, strengths, come strength. the as in January on exclusivity on exclusivity these on open a that the still strengths. three the There XXX-day very it well, product looks product is strength on question open four second product product like there approval first will a allow is settlements all as has

product So, second the will depending the of on the XXX-day exclusivity status it of strengths, of the generic. these determine entry timing then

point So, all have but that's information and on we certain, at latest that's that the this or is are we at point where still clear this not XXX% that.

David Amsellem

Okay. That's helpful. Thanks.

Jack Khattar

Sure.

Operator

come One please Samimy [Operator The moment Instructions] question Annabel Stifel. of from for you. next will our Thank question. next

line Your is open.

Jack Padovano

Jack Hi. taking Two is Annabel. for for This calling us. from Thanks in our questions.

the from or or non-stimulant Adderrall, a manufacturing a options begun it physicians or of seen wanted we've is indications primarily meaningfully of understand strategy? if do the been [off from penetration, how rework due previously Is the to you on launch. GOCOVRI, with either [ph] on the early better a the this to advantages you've have more differentiate desire Just you return? the And episodes] first rebound from given pretty effective profile? re-launch mentioned that have Thanks. growing to or from Qelbree, first competitors, dyskinesia early lack reversal more you essentially to in on And on uptick back-to-school a of I secondly this dual So, a one to that adult prescription could focus this any since and meaningful sustainable think to your supplies intentions when availability know second if stimulant new they've delays? narrative receptive know trend see for season and

Jack Khattar

Yes.

Regarding accelerating growing had Qelbree together the top and Certainly, in question of we the and in Qelbree the quarter. dynamics uptick, prescriptions. first working third on two growth in other each its on

the back end and the the season of speak at but As which down summer you first launch, effect school dwindled you then to to back pointed season, we launched coming up, school as to adult start out, the had so on well the May, pediatric.

as first in quarter, the far and launch, the was remarks, the adult as growth I we right As in third which the see XX% was growth full the after continue to mentioned fairly around growing. quarter adult

So, that And then see time, still down. pediatric growing. at same slowing is the we didn't

to third back season. to because pediatric quarter in So, the school the continues grow of

both with continue now right pleased pretty growth business. both the populations to we're in of show sides patient So, solid

weekly is of down the XX% showing per it XX% that mentioned, by get, prescriptions is adult. breaks I age As which data we that our in about

So, because split the market go to as if way of is remainder pediatrics. XX% you up adult long potential a growth the we far have as and remember

of a performance lot all potential can day at this product. out get tap have the of end And from the keeps we into. we there feedback the physicians us So, that about the really we what the is of about is certainly positive

use for seen physicians in So, be positive population. what same a consistent the pediatric two with side now from feedback half, with we've will soon adult the on adult the side. We're the the thing a almost of product seeing in about year years almost and the

there's non-stimulants. to, prescribe Strattera mentioned, to is high, are overall which same satisfaction. and what XX%, these really is satisfaction who overall As are or only physicians mentioned example, the for I on Strattera, XX% compared the used And they other typically I

from coming or also physicians type who primary on the from that is Qelbree, putting Qelbree continued used patients stimulant these itself It segment. reasons separating and are the primary are other are patients non-stimulants. So, of clearly, to the be

prescriptions, a out patients there that stimulants the not dominate many that the there for are market, despite about so the fact dissatisfied still stimulant of are right there in dissatisfaction are XX% market, and stimulants of the but So, them. the option is lot

and we least from as our folks to as of non-stimulants well segment, stimulant it in who patients not other marketplace. all at a in bring the So, continue with this primary of the XXXX course patients the to source lot launched the seems satisfied we of coming be the since are with

different like the the source market. of looks areas from is business all-in-all, coming So, the of

which asked but treatment in Adderrall maybe So, and lot we're many stimulant we're seen non-stimulant, forth, profile here. wrong product lot drawing usage. of people one shortages believe only have the release immediate for a of the in the don't We a option in example, patient so not as we're us the looking at about shortage, actually

the Everybody and about how completely not focus physicians but they not product on in There on we they to we most And with is with end our and Parkinson's physicians whether So, a among right that wrong on much that and have there physician neurologists. look dyskinesia. based be of well versed attentive GOCOVRI, things. patients, really actually they looking issues product merits it how our are then out their or positioning, GOCOVRI who can the we what for That's what then marketplace Parkinson's, fact and And finally both pretty spoken treating want well raise every very dyskinesia. about because regarding if is other space that general issues well product may they're patients selling obviously, the entrenched fulfilled being on treat of of as our and it's the off. their product attractiveness and common is are every treat, the the product they're because we in dyskinesia wrong disorder in the neurologists have movement patient specialists the narrative up the thing finding you one and treats issues differences as of the unique the or the of episode the differences for. are about have at the and is you Parkinson's we're they're in

of to market looking by and treat does and folks we helping but force the of same actually message They since time. of and between things dyskinesia a not which between they in do to really we've education, lot of have just at treat the trade-off the that overall product, look doing the it a condition [ph] But habits lot both or these can the and a sales just don't condition a episodes frequency the could takes continue and and dynamics been importance of have take both took and dyskinesia, our it hammer understand the both the at patient, patient. change they the off status you fact treating at that the take [overall] time. over not So, require overall

brand. the it's resonating to doing of work-in-progress. So, we're the the it's continued Clearly we growth pleased a things and We're business. physicians with continue pretty and right grow solid with the

Jack Padovano

Great. Thank you.

Operator

closing And am Instructions] would seeing I [Operator turn to the to conference Khattar in you. questions now back the Jack no like remarks. Thank I queue. for further

Jack Khattar

to We look momentum Supernus next In priority. and Thank a finishing solid everyone the and our to acquisition. employees year about like top performance call GOCOVRI's on strong. I with of are look building our forward since concluding you. to growth Qelbree’s our this growth momentum, thank would all on afternoon, emphasize would forward and for quarter record delivering as updating Adamas and to completion as like well call. I the revenues Qelbree’s continued We're GOCOVRI's for that excited the our the

Operator

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

disconnect pleasant You a may have day. now and

Supernus Pharmaceuticals (SUPN) 8 Nov 222022 Q3 Earnings call transcript