Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to Supernus Pharmaceuticals Fourth Quarter and Full Year 2022 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.

And I would now like to turn the conference over to Peter Vozzo of ICR Westwicke Investor Relations representative for Supernus Pharmaceuticals. begin. may you Sir,

Peter Vozzo

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

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

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

the on For call and of held be may being is replay, who recorded to you the XX, listening this XXXX. of February benefit those

company's then, current recent update may the additional the made related press the statements except any forward-looking Since these applicable topics SEC. reference laws. Please releases by have to and Supernus the securities filings discussed. to with announcements declines company most obligation required as

Jack. to over call the turn now I'll

Jack Khattar

about of us updates as I our XXXX year first into Peter. and and results. the comments a to about discuss everyone, thanks to product afternoon, details we get Thank then make the join accomplishments. Good fourth taking full like more you, quarter for XXXX and specific would year and full few time

our our brands beyond. of Trokendi best putting year past stage for transition in transition from for growth employees to few the possible the and and exclusivity of deliver years excellent mature brands. growth closed another the the preparing I'm and and planning to position over XXXX double-digit Supernus proud successfully We execution of great to our Supernus XR setting loss the in

fourth XXXX up accounted for XXXX sales exited million, In acquired decline or net Supernus of revenues despite product a $XXX compared we our XXXX of XR. record sales. or to the total, products million XXXX As XX% quarter achieved approximately of $XX.X net decline in of significant total XX% XX% Trokendi launched since in

X to also our XXXX, In therapies represent advance and two pipeline product novel candidates to action unique SPN-XXX continued depression of CNS candidates, respectively. with in Phase and we epilepsy, lead mechanisms development. assets our SPN-XXX, treat now product Both in with

Qelbree. the as Now an milestone market. about compared starting approximately on fastest-growing XXX,XXX with update year establishing ADHD XXXX brands XXXX. the to of growth annual IQVIA in prescriptions product XXX% reached total represented prescriptions, representing Qelbree's a of one the

prescriptions, quarter prescriptions third fourth XXXX. XXXX, the In XXX,XXX the reached for a total quarter of sequential Qelbree XX% representing increase of IQVIA to compared

off to nicely importantly, for Qelbree More month of brand start an prescriptions. than on several Qelbree XXXX, rate capitalizing dynamics a growth of in represents recent high XXXX, reached great XX,XXX. more X.X the prescriptions we is run up annual This monthly believe all-time January an the IQVIA will in continued for of million very set the that robust XXXX. in most

one each on elaborate will dynamics I of these separately.

XXXX years. than total X% First, In of expected we This million prescriptions the by reaching another followed grown XX in prescriptions. than in a X.X% XXXX, faster the increase market has grew rate prescriptions. in the healthy total ADHD annual much market at more over two past

cost up daily sequential average XXXX, It dose growth per a reaching an prescription an XX% is patients to adult due January pediatric also over in of and titrating quarter XXX average compared is XXXX. of and $XXX past of milligrams. wholesale result closer XX to XX% Second, months, increase for quarterly the January daily the XXX-milligram, by XXXX. for Qelbree, to This have in adult we physicians the average seen to dose patients, closer in the primarily of a up steady fourth prescriptions for in acquisition dose

With prescriptions XX% in quarter such launch. of prescriptions before from the total robust Qelbree's growth, fourth adult the up adult X% only represented the

was season prescriptions quarter, During the on in the of the back-to-school growth the fourth of top XX% third pediatric during growth sequential a strong the quarter healthy XXXX.

key managed is signed increase the which coverage, dynamic lead second allow in a year. of should important significant of XXXX, range the in last that with The discussed XX% XXXX beginning we to should get in to contract to manager third prescription. price benefit At net care an to the gross net us which we pharmacy a XX% improvement per the target to

is of XX,XXX We base third access with preferred I pleased several over quarter rate from XX,XXX quarter the in also growth in approval of Medicaid is up prescribers the fourth XX% are in prescriptions, states. the Qelbree's which prescribers highlight now in with XXXX, for prescribers The Qelbree's fourth continued that above dynamic the with will of important XXXX.

to will highlighted ADHD In market. and to more of capacity than to deliver high-decile on we planned us are addition about excited our our of sales allow higher of broader second by force cover expansion reach XX This sales the us expansion approximately frequency to dynamics, XXXX give XX% quarter increased prescribers. representatives in these the

growth In importantly, growth more confidence giving potential several summary, XXXX beyond. important in continues across in Qelbree and, us XXXX its and in perform metrics, to

Switching managing having and supporting sales Adamas commercial outstanding the to brand's of Parkinson's product. of an achieve job million to are process the its supports we and now organization, force acquisition our while our brand to transitioned a very year, did integrating new sales $XXX including through Epogen, The having Parkinson's of pleased the with second integration record GOCOVRI, performance in gone sales force. our also first

with compared record to and quarterly high and XXXX the fourth a of sales respectively, net GOCOVRI growth year in prescriptions, $XX.X quarter In delivered net strong XXXX, XX% with XX% and of exited million. a performance sales solid

X% XR continues compared increase sales to steady of net XXXX. representing Oxtellar for XXXX, to product be million a full $XXX with year

XXXX, were $XXX to year We efforts support programs. continue for sales million in-person For in through down million, net full in our of from $XXX and second the significantly XXXX physicians and product Trokendi marketing and reduced to XXXX. provide sales sales half XR various patients

compared XR XXXX, the for prescription monthly the by January are XX,XXX, January the ending January compared is erosion X In million strengths XXXX. were Trokendi to week impact. XXXX today the or in product generic via which revenues the $XX Trokendi XR on other week XX% in XR XXXX XX, $XX Trokendi range before week IQ the and ending February on Based last XX% was generic to of introduced. for to declined be from we declining expecting to to by entries, data IQVIA first generic Trokendi million. January of X weekly the Based XR generic prescriptions the possibility recent most the prescriptions of XX,

Moving on pipeline. the to

with We in for SPN-XXX, resubmission FDA regarding will meeting April infusion the year this our of device. the be apomorphine the NDA

to in treatment-resistant will open-label randomized sites We with with resubmission in our patients study up seizures. discussion with study II The the the Australia include Phase after We XX timing and approximately X SPN-XXX will our clinical initiated patients. the adult FDA. announce of

could in Depending top on the the XXXX. rate half be of data available of first line enrolment,

of study adults activator, a in mTORCX active placebo-controlled orally first-in-class approximately examine XX treatment our in with randomized double-blind the treatment-resistant ongoing weeks The depression the Phase SPN-XXX, multicentre of of sites study X II efficacy course and over with patients. activated. safety For XXX will is XXX

on period is The change of primary Scale Montgomery-Asberg a from score, Rating rating outcome is measure to treatment total the depression scale. the end Depression standard baseline which

loss to solid coming the strengthen allow growth exclusivity Trokendi summary, to to foundation offset operating leadership are and in in and and beyond. and Finally, active growth strategic revenue XR the be XXXX future to CNS. we to non-GAAP allow looking we for that and our us will corporate return confident continue of growth development, In of impact in us our position drivers opportunities income further from

will With now that, over call to turn the Tim. I

Tim Dec

everyone. afternoon, Good Jack. you, Thank

and year million same a XXXX year. $XXX.X last review XXXX please Total fourth today's fourth the increase I quarter was compared quarter press $XXX.X to our As quarter results, release. X% full revenue the in for to refer million,

of due to primarily Total fourth XXXX comprised net sales net was product was royalty of in of and million revenue increase sales revenue $XXX.X quarter Qelbree. in growth of the The million. and product $X.X of GOCOVRI

period XXXX, Adamas acquisition, period year. acquisition last quarter $XX.X of XXXX For QX to Amortization million again for to were which The same in decrease $XX the of million occurred with increase of expenses the were due was due fourth compared compared to Adamas occurred expenses associated as assets $XXX.X combined in to for R&D primarily the XXXX. $XX.X of quarter the for is same intangible last fourth year. XXXX. the the November The and SG&A which million million

in in QX XXXX. year. for with tax XXXX compared same which an a million Operating $X.X an product for of Tax quarter GAAP operating in GAAP operating million compared is QX associated for the the to quarter income $X.X costs expense period million same benefit earnings fourth as and lower the earnings on $XXX,XXX increase increase period in XXXX attributable the fourth of as of of was year. was sales for earnings expenses the Adamas to XXXX acquisition, due occurred to basis The last primarily to $XX.X net last

costs net or year. adjusted to were million operating same excludes amortization period acquisition-related On period the million quarter diluted $XX.X $XX.X the basis, earnings $X.X non-GAAP to of which last per compared in GAAP intangibles, a depreciation, diluted million compared or $X.XX fourth share-based contingent per XXXX last earnings the and for in compensation, same share year. consideration, were $X.XX share of $XX.X million

the as of of due as was of million $XXX.X comprised million, the product net was compared for increase primarily royalty $XXX.X for sales year well revenue product XXXX. a million and Total $XX.X to XX% sales The Total increase the million. to Qelbree. of year in net $XXX.X was GOCOVRI revenue revenue full growth full XXXX

for R&D $XX.X increase the SGA to million intangible million for in million the full investment to Adamas The acquisition. of GOCOVRI. the to for Amortization For support cost XXXX. increase of the year XXXX, in compared Qelbree, support and to full to year full of combined compared to campaign the XXXX. is were activities $XXX.X growth DTC the was and primarily expenses expenses is assets full the $XXX.X The year of including year due as due the $XX launch XXXX million the

acquisition. Adamas is $XX of expenses support Qelbree, Operating GAAP the the to was with of to the in XXXX million full $XX.X basis compared to GAAP attributable launch for amortization The earnings operating the as million intangibles and the year associated DTC decrease the XXXX. higher for primarily a on year full expenses campaign

Other full a the the a income million The subsidiary $XX.X for the primarily of XXXX. first Navitor of of to standard and due to million new compared in of adoption sale was quarter decrease the the $XX.X year year to recognized expense is for full the a XXXX expense the in interest due accounting XXXX. as on of change gain

$XX,XXX for Full income tax $XX.X year full XXXX. XXXX was as the million compared year to expense

was the of tax on previously As prior expense of reorganization XXXX. the the low corporate to due entities first the discussed quarter for XXXX calls, in Adamas full a year

$XX.X operating share per for On full $XX.X basis, the compared a GAAP or XXXX non-GAAP diluted which year for million was XXXX. $X.XX the $X.XX share million net costs, earnings full consideration, adjusted per other year or diluted XXXX. to excludes the million XXXX for amortization as million R&D the earnings to and for full $XXX.X share-based of acquisition-related compared depreciation, intangibles, year full $XXX.X year contingent was compensation,

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

strength our of Earlier into provides revolving year, of of to a one a includes line sheet. options. line credit which drawn balance for line at the $XXX credit any that month, period This this enhances time up be credit of entered for million, agreement which a renewal we flexibility and can

turning guidance. Now to

of $XXX from revenue total for note, as of million Trokendi sales million revenue. expect mentioned $XX XR, $XXX Please net million, net of total comprised and to million royalty We Jack assumes approximately to earlier. range to sales revenue product product $XX XXXX guidance

product at the insight sales We Full as are revenue represents rate. base guidance, provide XR XR to net specific providing total sales product uncertain business guidance is year erosion Trokendi on XX% Trokendi more approximate point. XXXX Trokendi the growth an this net of excluding

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

$XX loss to call $XX issued various And non-GAAP XXXX prior between release items million. million in Overall, operating from we expect the refer $XX to to to to operating non-GAAP. million. GAAP the million Please GAAP reconciling the ranges earnings range year $XX earnings of finally, full that identifies press we of expect range this and

that, the the to for With turn now I back operator call Q&A. will Chris?

Operator

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

open. Your line is

David Amsellem

couple. a just So

on on that longer just the on confirm the year or PBM it's number you deliver So deliver win term? That's ESI? Qelbree, as execution what progresses talk additional for can to about you to and need payer looking one. And

the Number two loaded you're talk season? should of we're extent about can sequential safe a that? Qelbree. a it you in be to on Can and assume going of sales in Qelbree back-to-school the not of is, to lot year? Thank guidance will you. you sales we see half the because think about know giving about for just step talk How product-specific that to back XQ, year cadence is the I down which

Jack Khattar

Yes.

Regarding much, to got but progress as pretty also continued commercial cycles yes, of on and the any work pretty not Absolutely. we working first it question Medicaid with is everybody. board, you more work really the improve in position on? a the with the I renewals of mean formulary. workload states. as across good just coverage always have that's on different have side, always ESI, to PBM, we far much the And Do

that all that to out to us the aligned ourselves. together to set clearly, XX% XX% target is for So we get

headway goal. towards contract new certainly, that major the make a will But

we ended remember, somewhere to the you around XX% gross net. the year If

the So help XX% the contract from XX%. we're away big too will or not new in significant step a far that Clearly, us towards goal.

XXXX. I number We pieces I fairly the Trokendi can about where mean, of that gave metrics other solid and year assumptions for get guidance. to from and that all absolutely, seen the are what make excited we as in the certainly, a XXXX. to close with my in and within very taking given growth remarks, exited is we out Qelbree the Qelbree it, XXXX, guidance And we've in mentioned are XR expecting very We're we that you

So very that always and the that, absolutely. the brand part a well positioned give is And place in in of much season year think be will certainly, back-to-school very to big strong we XXXX. us a

Operator

Andrew from next Jefferies. question Our of come will Tsai

Your is line open.

Andrew Tsai

bigger helpful. for on I Thanks Congrats start off you. question. thank quarter. Hi, a picture great guess I'll the guidance, a with very

possibly do were few acceleration But Thanks. an sounds kind it of But how you your nice throughout mean And initial You even well like you perhaps, alluded the volume more question we say as is, get key real would XXXX, remarks we the of as sales? and as are classify have prepared about the to what in of well. as innings your then if early locked it growth Qelbree in in view, the and Q&A. drivers you I is next it some quarters the price. in rank to launch? contracts secondly, sales the order as to fair think of still

Jack Khattar

is mean Qelbree is innings of There if the early question, XX% we're the market. even mean, into launch. X of in still sure. the launch the year Yes, I segment, recall, no the you of is I adult indication. adult about In not the

haven't we surface much far at only launch, the as growth as potential. the scratched are beginning that and we of So the

X.X%. the X% continues in mentioned on top significantly XXXX. And than much way, of grew expected. great ever that, earlier, I mean As another it market, we in in I then more a grow and to obviously, interestingly, 'XX,

million reaching growing, in market the XX now itself prescriptions. So already is

far the surface market. as last Clearly, our that prescriptions year penetration into is only some scratching as XXX,XXX

to its goes the So expectations have high we continue product growth potential and as time for on.

daily key As XXXX, penetrate up, of as of I the going dose doses further the segment I we the prescription there average because the the far factors as continued the mean, earlier, example, from into up penetration are, drivers is also prescription mentioned for a adult going some especially for the on daily close of combine that as on because perspective, penetration haven't sales have a coverage adolescent still really of expansion closer with the be to universe We and level. then ADHD of the market. in physicians clearly the pediatric to XXX, prescribing. force side, the side, deeper XXX-milligram our you lot as that XXX And the started even could and size call

this we let these product So prescribers. us physicians get interestingly we is of actually, have satisfaction lot a once experience a use them satisfaction potential these information level of Strattera product, of from Strattera XX% have incredible, try physicians to turning XX% level with that is the physicians, And same start experience about Calgary. actually the that for a lot who who and and try it about survey for these it. with truly for physicians by among our out compares running There there have the among get to them used some let years. Because

once is So have shows positive. the as on Qelbree. wider it encourage Qelbree, And patients within try much practice that they you a will penetration there their to far them putting more as that really clearly, experience typically

the net factors sales. then So the robust gross a net combined, very to improvement and forth these growth should in in all deliver certainly and so end,

Andrew Tsai

Thank Great. Great. you.

current million, XXXX. $XXX it's versus bit speaking guidance And to expansion incrementally of in of so million the sales think I up little of a $XXX OpEx, million, your force, I believe, $XXX

Or it and your the incorporate XXXX driven is primarily by a does DTC assumption guidance new expansion. launch? So force sales

where to necessarily to of medium the just it's the year is would years? let's Or say, case? the, launch, do OpEx my next the part for short X X that not think kind expense be is term, XXXX DTC then peak maybe new a could assuming be, choice And you there of question of the

Jack Khattar

Yes.

on much at a so Qelbree, the marketing fluid that these XXXX. Regarding the able will commercial force and and the continue us. GOCOVRI in strong in clearly. I'm Qelbree because support behind that heavy to this we decisions XXXX, behind continue will we basically, put and obviously, in to it's specific in some how whether side, sales process and with are investment and progress, be going and and XXXX of DTC for point But be we too not

that that covered On recall, in-person the in -- that Trokendi cost sales third to have as have Oxtellar force, used to behind we sales be XR. going anymore a XXXX, fact the because the force XR partial of expansion don't part the have by is stopped we we and sales you effort

XXXX So that Qelbree but that sales XXXX, that if is the the lower support coverage go another the But not main associated $XXX sales R&D, sales support XXXX. some will component in million to look $XXX into the at will and of expansion it than was force. costs continue in much with you towards R&D. of million

do that SPN-XXX, hopefully, increase We XXXX, start speed as we correct start going enrolment all up we're expect spending these to and in will SPN-XXX, is trials. on to

expect from see to million increase the in the in $XXX $XXX of to that part you So the XXXX R&D we that up million is bump a million going $XXX XXXX. in

big that's as there component So another well.

Andrew Tsai

revenue also root And throughout take range. the question your do guidance question lower Trokendi, Thanks. the the you assumptions at end? provided it's you way you a the can to visibility. around maybe guidance guess It your I then in could But the of be the initial a the out that ask do pretty I we is, year? And think seems end, sense. higher XXX tight XXXX guess raise is potentially like such XXX, have Makes we it's is last maybe guide, would what if on

Jack Khattar

and I information in best a at is mean, to the a our this the providing like with XXXX. guidance time provide we have that we for general, in guess principle, as that guidance

of we be our conservative always to in but don't to don't it way. to either. do So miss goal too is We also like That is, achievable. a reasonable like guidance, course,

guidance. So the you in band have to providing reasonable really be a

growth APOKYN, range So it you delivered. to remaining pieces, part X to happy with for XR Qelbree And that you example, for out us, that of to products, really think continue on and your GOCOVRI, as far then when reasonable we're the Qelbree question, is other product and Oxtellar can growth what Trokendi get and you guidance. at the the as how look much XR, at back a is a I be you look

the how feel comfortable about. great we the the start about has so far. I pretty with excited today reasons pretty pieces. around different the we're different the same ranges with in And we're very mentioned its XXXX product a happy And potential, I momentum and So the talked for that Qelbree had metrics about

tell, guidance in time should update all, be you time will goes only achievable. all we But So this on. think we'll and as

Andrew Tsai

Very clear. Thank you.

Operator

come next Our from will Annabel question Samimy [Operator of Instructions] Stifel.

open. Your line is

Jack Padovano

is on taking Thanks for for This Jack questions. our Annabel.

two us. So for

treatment of regarding patients from pediatric from the Qelbree, prior between compared begin any are noticed transitioning clarity on additional of on to coming with you have newly many First, any those non-stimulant differences stimulant? patients a adult you stimulants? patients do willingness terms have to a And in how diagnosed versus

for from second, access? profile granularity a additional on versus an on physicians? Growth dual how payer far, the with has of idea GOCOVRI have And improved Thanks. the decent you most your is resonating about but what much is been this messaging do result improved growth efforts. And some so specifically

Jack Khattar

on last Most the bit for patients of product physicians top patients putting that reasons issues the are of about these four as coming the is Qelbree patients who that, why source of of couple the the have with current little are starting year we we that Yes, talk I primarily business Qelbree, from, or with and far when these prescribers a a in in quarters. referenced where stimulants. as are patients ask

very patients don't a the other actually category those alternative, we alternative the as to all on seen because need and or in tolerability stimulants lot not with be all stimulant for and and on be put non-stimulants mentioned they primarily wanted are for abuse up us actually Qelbree they be we that know stimulants we but to controlled fact that, there as to have just so the a on an reassuring that for of And because substances out as and don't ADHD. stimulants to and in bring is forth. an issues And stimulants are far patients of safety

it's prescribers from So main get feedback that have source with our that to stimulants, continue for and the of been forth. business to us so who very is the side from those experienced effects reassuring especially

I'll from stimulants, mean, don't major give you everybody example. stimulants don't I what XX% an responds the people for effects, stimulants major stimulant. just who clients, not to side lot about experiencing forget have AEs, mean, for I are tried a everybody well, another XX% but of also, work who've as work.

a which And pretty is and obviously that there a to time. an early good and expect is the over of It's treatment patients completely happy the patients. that with the patients which to minds, non-stimulant mid-teens, in option source and all mix of because in in us But business, grow not Qelbree in portion, option we physicians' then just is as that new especially tells we're is second-line general, the launch would the an category.

GOCOVRI And of the the is our that and is positioning, as effort coming the putting there. the out concerned, message most really growth far sales force is because growth of as the

the very in positioning product able to have clear about and area. the we've uniqueness Parkinson's a been its So

carbidopa around off educating instead them can off marketplace physicians that treat treat both, that very of the dyskinesia. other is not message only in Pretty that that with is we of clear only levodopa, off dyskinesia space. some fact And treat they crowded but actually episodes episodes episodes actually agents a deals product out with much and all but It's are the a GOCOVRI, every dyskinesia. that pushing GOCOVRI treats and and of they the like cause use episodes,

is is resonating, on resulting GOCOVRI and the that side. in growth is what message that's prescription a healthy what's clearly, So

Operator

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

Jack Khattar

I strong to our our remains would like in call top business In afternoon, emphasize Thank concluding delivering you. our that this priority. growth

XR, mentioned in to rate expected we XX% XXXX. of growth excluding Trokendi is As earlier, business in our revenues approximately deliver

with thank we all like revenues for to delivering look return would Thanks well healthy next updating year and for this look positioning us for I forward momentum our Qelbree margins outstanding GOCOVRI. behind solid call. We years. to another record and our Supernus forward that with operating to delivering and double-digit growth both in everyone joining preceded revenues and on for transition to us afternoon, our employees

Operator

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

You and disconnect, now may day. pleasant have a

Supernus Pharmaceuticals (SUPN) 28 Feb 232022 Q4 Earnings call transcript