SUPN - Earnings call transcript Q2 2024 | Supernus Pharmaceuticals, Inc.

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Operator

Good afternoon and welcome to the Supernus Pharmaceuticals' Second Quarter 2024 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 now.

Peter Vozzo

Thank you, Corinne. Good afternoon, everyone, and thank you for joining us today for Supernus Pharmaceuticals' Second Quarter 2024 Financial Results Conference Call. of these the results. close press issued the announcing release after the company market, a Today,

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

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

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

Jack Khattar

year. Gross-to-net net quarter. the reported net strong was XX% Qelbree's in net and quarterly performance this prescriptions Qelbree and million, by in second and Oxtellar the our an of for us sales net growth for strong sales. and period first as XR, year. SPN-XXX assumed, depression. Total same improvements compared last copay $XXX continue period to gross-to-net and growth period Prescriptions Thank XX% range delivered and our Trokendi reached to In the revenues, you, million. In quarter all-time initial deductions target lower were grew were XXXX growth seizures same Peter. We the benefited increased Qelbree to of including the product lower drivers, compared product quarter in Driving XX% net Good growth $XXX,XXX high with trend IQVIA, an growth the in were XX% in experiencing prescriptions, representing Growth XXXX, of XX%. X the XXXX, favorable Qelbree thanks on pipeline, SPN-XXX key quarter today's growth to we XX% year and sales join call. GOCOVRI, or for same both afternoon, growth XX% from months with of continued time year, everyone, $XX during and last this launch in second and from over deductions a second the batches last of and rates sales of the taking than by excluding advance treatment-resistant of our the second sales quarter. more returns return XR saw below prescription

expect the to a XX% on for that you a expect the remainder of range, gross-to-net to typically with we basis. for XXXX, result, be Qelbree would the As quarterly XX% fluctuations in

During faced this to quarter of the in Qelbree's first in ending patients year. first for now approximately base Prescriptions expanded healthy adult up period of of of Qelbree XX% the of XX% increase account increased XXXX, over prescribers, its now prescriptions. Switching prescribers, with the the the brand negative quarter sales same XXXX, the representing from million total XX,XXX second XX,XXX of also the a in to some and XXXX. in factors quarter recovery reflecting Net from GOCOVRI. $XX of from second quarter, approximately quarter the

our legacy the increase patients samples our from the net saw million physicians through patients negatively of to Trokendi but the out-of-pocket to were reversed to million, we quarter to year, XR transitioning XR, prescriptions million, last expenses from the year. in this in prescriptions. Switching impacted earlier recall, second by help second as their their quarter in their year. quarter net $XX And sample first them in second products, to sales last of quarter. the by Oxtellar refilling you sales a As compared started for $XX XX% in XXXX quarter, significant distribution second were the same for down quarter This quarter first $XX

were XR the of net For of months first sales X XXXX, down Trokendi XX%.

erosion XR later sales XR and in of entry this Trokendi genetics the We further Oxtellar expect year.

of XR of the in anticipate $XXX combined trends in to Trokendi million. half XR XXXX Oxtellar now Given in to $XXX the of million XXXX, and net be range we first sales the

who from Regarding II option. requiring a new week lead X weeks learn the last few or considered FDA submission as will Class and a review, SPN-XXX, I whether NDA treatment we in X potential Parkinson's review. requiring Class to patients a resubmitted this remain a this to months committed expect We be the months

our to up on next we have pipeline catalysts coming CNS product Moving the months. novel XX of exciting in to X candidates,

study that period the by Phase for open-label the SPN-XXX XXXX, that The on of May of study IIa XX data in end open-label analysis in of based patients was expects top XXXX. enrolled with of the Three-quarters in are interim our from in the interim year. In and first from XX IIb disorder adults planned results targeted exploratory number the the study. treatment-resistant major Also depressive study the seizures. enrollment at study this the now time. completed ongoing, its data Phase of with patients in line is half maintenance to subjects, provide announced Phase XXX, enrolled of of For company II analysis we are treatment-resistant depression expected which from

for this We continue the line full half top results in the expect to of study second year.

in double-blind in to product Phase and our following healthy end focal In XXXX. Also patients IIb I of study for SPN-XXX candidate submission newest Phase CNS is single-dose with of of SPN-XXX stimulant-like SPN-XXX study ADHD disorders. by initiate IND. addition, the other start to adults we is treatment-resistant seizures with randomized expected placebo-controlled the plan a an

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

Timothy Dec

you, afternoon, Good Thank Jack. everyone.

$XXX.X I second XXXX that last the As to today. Total press results, growth filed and million quarter quarter please in quarter licensing well in $X.X of sales product to increase net for Oxtellar in of as was earlier XR. to today's million, as GOCOVRI, due product quarter XX-Q second of was sales in the revenue comprised was The million, revenue Qelbree review sales were $XXX.X second net and of other of the increase royalty, the million. refer release primarily same and XXXX revenues compared our and net year. Total products, of our product XXXX $XXX.X

sales last Trokendi same revenues XR, Excluding quarter year. of total net XX% the XR Oxtellar second quarter for of XXXX and product to the compared increased

of for quarter to our For compared for continue was SBN-XXX of were with slight the R&D earnings SG&A excludes pipeline. Operating and spend R&D sales revenues XR. basis, last in clinical million, quarter in the was $XXX.X GAAP the million million were to year. On on same increase Oxtellar expenses diluted year. $XXX.X XXXX quarter period programs to primarily and X revenue The which for and product June million the ended to second licensing the comprised of second we XXXX consideration basis loss contingent to in compared in compensation, non-GAAP other second year. Total $XXX.X operating a same of were in quarter due earnings progress last months of of as diluted combined the for the and increase revenues associated due as was year. operating sales GAAP the the same $XXX per to $XX earnings was per amortization and quarter product GOCOVRI compared $XX adjusted XX, a last primarily quarter and of to results, of for loss loss $XXX Income Total XXXX to to was Qelbree, of last $XX.X second or XXXX, second million million Compared net an quarter expense last for royalties, sales share $X.X net GAAP quarter quarter $XXX,XXX was million $XX.X for intangibles, year. the as second share-based net or share quarter in $XX.X XX% of XXXX XXXX increase the of product tax million, compared million, the net $X.XX million compared same of $XX.X same million. $X.XX XXXX million. a SBN-XXX the net depreciation,

expenses $XX.X on earnings last a we clinical R&D for period same year. $XX.X for due XX, Excluding the XXXX Oxtellar year. year. and as same total last earnings the same SBN-XXX X Trokendi XR the continue primarily operating XR, to increase is GAAP progress compared XXXX, this were to was and for June were June $XX.X pipeline. Operating programs revenues months an for million the period million period June compared compared last X million months to million basis the associated operating months ended XXXX, the ended with X increased as sales of $XXX loss period million SBN-XXX Again, compared for for SG&A expenses ended same Combined XX% as year. XX, increase our net the to R&D product in to XX, That a $XXX.X to of and last

months earnings per million. tax ended XX, non-GAAP to June earnings comp, ended million $X.XX period the is $XX.X $XX.X in amortization, same we net period XXXX, compared to operating last $X.XX basis, reported diluted depreciation, months period compared in the operating same million For X income adjusted X increase a were share were million consideration earnings per June $X.X XXXX, XX% which That share diluted share-based year. or the $XX intangibles, million last same XX, $XX.X excludes year. expense the and last in a compared year. On the for adjusted of again contingent or GAAP to

from growth we company the $XXX.X equivalents, million company debt, and June marketable $XXX.X to significant generated million has a XX, past and that, with strong long-term should million cash, As opportunities. be XXXX. flexibility This noted other for primarily of the months. current in that of with was securities in XX have approximately no operations. XX, $XXX It cash XXXX, balance in generated to and cash Because of cash from potential due increase sheet had compared December operations M&A the as approximately financial

guidance. to turning Now

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

result, $XXX $XXX previous revenue up sales, million, the royalties, from and revenue. of to range to $XXX licensing product we other from to As million total net range $XXX comprised of a expect million,

from $XXX million combined earnings operating GAAP million, Overall, to million. For the range $XXX and full year $XX R&D operating XXXX, to from press refer turn expenses earnings to year we range reconciling we to back for and this the will range GAAP identifies call Q&A. to over XXXX full SG&A Please earnings $XXX million to ranges to million. issued expect $XXX that from non-GAAP that, expect call between and the to to breakeven the non-GAAP. With various now prior of operator release items the I

Operator

Our first comes from question of Jefferies. Tsai Andrew [Operator Instructions]

Lin Tsai

a nice quarter. on Congrats

on resubmitting The first pump. one is SPN-XXX, apomorphine that. on the Congrats

confidence also received a Just interesting, It's wanted level your of gauge this know will of since CR approved recently. time. kind competitor it we to be the

about talk about your confidence maybe level So this. of

Jack Khattar

probably an we sure. I CRL, number the a make was This we're it time example. the to dealing time a pages. CRL, It example with. I a issues we half page, couple A few just the was of give Yes, give first or things. got to take, of maybe mean, the got tried

we're this with address. items So the to with and number that was much issues a of number lower had dealing we of certainly, resubmission, issues

make fullest have the sure meeting we Second with before resubmission did confidence we the we level a to before resubmit. FDA have thing is of the

and of feel pretty So we now right the our filing good approved. getting about chances

is in course, assigns be mentioned for remarks, and hopefully PDUPA II I will filing a Class weeks or when that the date of piece the Class information FDA about we'll Of what our review. I accepts the not as next still the have we're resubmission, it but a sure in whether few

Lin Tsai

milligram full completing the X of XX this be IIa XX the period? many you And I shifting think data how more X do year. patients maintenance period. cut How many have later will specifically completed remind to us, And high doses? the at Phase the XXX, we're to maintenance that going patients more dose, you to Can think

Jack Khattar

X correctly, the in May number XX, that results, remember stages. the recorded had addition of in who back in various about to at time if interim patients when I study the Yes, X, at we were we or still the

depending least good stay another the know, the study. X, in to on. in of handful But of have at would people on how should So we full we many that X, maybe, when expect how report have we many XX results a addition I we the or stages all don't the will to report discontinue

of complete -- to that's will just that So the clarify. the initial portion study,

was a couple back The which in we where of test going talked portion May, to extension, we second the about are strategies.

One where address nausea of anti-rheumatic we the them an so and try adding is to forth.

of but year, won't quarter report on to have added in the on, of before So we we the The in May, just for but has the year the that fourth will which which already not this we to that. extension, study. portion or different clarify There X data are report we pieces that. the will started, study initial have one, end data

Lin Tsai

then on And one last asset. the depression is XXX,

us later and remind how of or want and MADRS to year. you with patients end XX HAM-D in efficacy of just kind you what see the the be study? Can data the pulsatile What having benefit positive would is why? you at to long data MDD study You're this

Jack Khattar

mean, study. I this Yes. is a short

that I are XX think it's targeting. study. days treatment, XX open-label, patients a we very it's It long not so is about about

mean, we especially we we the the before report good of that I in very what to think will able would the scales expect, So it year as the far larger end. or be have and open-label. better, -- a the And reduction number is chance course, of we as,

a if a control. would on certainly we improvement it hope So were MADRS see to large versus placebo

Operator

David Amsellem Piper Sandler. Our of comes from next question

David Amsellem

on questions of A Qelbree. couple

the talking the coming season So been acceleration or us season, muted. the up, gross-to-net particularly help that expectations back-to-school you've I understand last Rx context the also was with for believe, in your a volumes, And growth different back-to-school framework with about? bit acceleration in of,

In of about one. And about us the how is understand the I'm And growth that's number apply product but just a better to is, back Qelbree how is this be I is thinking through growth help year's a improved us And how then the guess you're going it the season? how is this number this Qelbree. just -- -- half trying of really gross-to-net? about of year-on-year in should two of much That's growth understand help much So year we improvement the back-to-school how volumes? just the is forward, you're get other captured thinking at year? a being volume-growth or is words, year, did beyond also to economics? lot function what of is that's the So thinking product

Jack Khattar

mean, overall an I on of XX%. the as mean, I comment in Yes. prescription growth the we mentioned we about as half, first by Qelbree, grew

continue year. we prescriptions robust growth versus in have to to expect last So

only first remember, market half X% grew by far growth, you it's Last would As the ADHD a year-to-date in this year seasons, than if overall, was XXXX there much the far in the market, looking year, XXXX. And actually, total. you're specifically And absolutely versus year-to-date we back-to-school normally right. might so as in back-to-school year of see. season up the market softer X% ADHD XXXX ADHD this at in

So this half growth the a XXXX, general, in market, rate is the overall in the at already recovery last least market a at year year. in first of higher much in than showing

continued back-to-school to by through while last year, back season. feel XX% in the mean to I'm not would then, that be XXXX. I and a some back-to-school, the decline a was it ADHD it which hoping September. in be what about the actually calendar measurement versus grew in season talked in actually with So happened the was about to the what we for what XXXX, happened we saw back-to-school grow growth that June necessarily normal It get in better back would market quarter recovery

course, penetration as still better, robust growth far product gross-to-net. last time. we we're short Certainly, continue mean, that the as we is means launch in already mean in the market, room did the I'm market far will is, year of do I than this we Hopefully, also a X of from year the So in here hoping does have improvement XX%-plus in touches and, potential better answer, just that your Qelbree question of to at on in to we growth. But growth to not growth. go I perspective, the penetration lot the a as we're have product, and questions. and the prescriptions. And the delivering and same as as this far adult pediatric its that still of all as

David Amsellem

below clear, in the mean a I XX%, -- XX% for there gross-to-net to steady-state getting mean, And term as product? follow-up. ask to even I I'll quick for may target mean just XX% long be and a Is the is in your the And I which it's is it had past. of what gross-to-net, sneak just better maybe further if that's over you room I than cited that The improvement? view differently.

Jack Khattar

what far goes in goes returns. And return, And it, which as remarks, how be then on much return mean, more. ship of at a expiration they how batches books from they on potential have issue as I a have consumed I as Yes, you or initial will much an either certain point book on, you because my little you out, bit on launch accruals, product, some prepared time liability, batches, and just when Typically, you these a these back explain perspective. enter fixed expire first what you it date. you referred your time these they to a to could make was those come in the potentially of that assumption of

much have that. you can a assumption, approach they going perspective experience take lower basically returned some back initial the the of be that's to they're do not you So Or versus go expiration as return if when or date, anymore. beyond from

mean, potentially the a to things next possibility is could or are I there so. continue benefit trend that way. So in the that we from that continue quarter these

only quarter be every not get we question target that on versus long-term so. hope the to one sure quarter. And that emphasize And data is XX% hope us XX%? may I to mean, XX% will it at we therefore, next that So gives but an that or confirm we XX%. case, more can target I sure the basis when to probably would our be I your ongoing even that time, confidence. see back the in

Operator

of question comes Cowen. from TD next Our Stacy Ku

Stacy Ku

for just and value Qelbree for prescription. quarter great a a solid net What

So we have a few follow-ups.

for the to split, of as encouraging we year Talked the on And Qelbree about the this approach do to rates you about a about you a just solid gross-to-net, as do you little think in you've this just quarter about and gross-to-nets is million adult these So share comfort gross-to-net think $XXX could just to grab do about last think pricing? QX, trying back-to-school little and question any growth. consensus the well? the then but impact be Could is kind question. And commented in think you what that the could exceeded of the in ask you're remainder talk to or clarify, about of of this you bit you kind the so first how million a differently, benefit how net should trying is to improvements? Just launch QX? question more next growth, for adult the past? can as the the that Are season? on in said the So you driving think the with your really see drive XX% seeing back-to-school plans we bit then but $XXX

Jack Khattar

Yes.

programs, momentum as as I level back-to-school support be going actually building be and out as are will first as speak we that far season. now and the mean back-to-school with the will the preparation On the we as of far intense building the we for fairly in right that it's question

of portion the of not the a clearly is for for we and year adult in will in this the of children back-to-school. neglecting time, the effort -- but given again, pediatric because sector of priority season, the So investment general. put and whole of top same a we're the the season course, the behind At lot brand business, QX, importance the

of to want XXX XXX.X that add As guidance to we XXX. X describe so far speak, the is as Double whichever you first annual, it. way soft months, in XXX. clearly the it, to did the course, you mean And to XXX, or some get growth I or to

year, a be not comfortable and to range. we again, clearly, So we've going depends what little the today. this finally, to soft was the -- closer range? in upper bit with we last give on like upper XX%. will about the first talking I maybe that been is the that the idea, If strong range really XX%, it grew Hopefully, on about was this season of back-to-school our season, or the XX%. lot second back-to-school it closer then past Is The adult in about to Qelbree. And by it feel grew year all an of be a to prescriptions business pediatric mean quarter, you end in which quarter, by

adult put patient on emphasis the time. So we some in had the quarter second as population more

importance experiencing patient are depending purpose population. calls, versus a I but and adult, of bit a on or more the previous earlier we growth the on basis, in the on in quarter-to-quarter quarter that So emphasis again seasonality mentioned another, specific one we shift sometimes as little

Operator

next comes from Our Stifel. question Annabel of Samimy

Annabel Samimy

want if cetera. the than from stimulant this area lower adults can population? non-stimulant, of you a doses et that feedback your you're Qelbree. versus is a doses, push? And potentially driving with a cetera, just the terms favoring there point. that adult an of expected, Great in pricing? higher pushback lying that's so in point good given some To they're been Is Obviously the to pediatric. price is I continue any improved of and et put population of you you chunk on finer of can they was some some from share whether to efforts that have the quarter had still adult a that what extent the higher adult the on versus a the And growth maybe getting area, where they're maybe transitioning

the still with XX% prescriptions making -- total why understand that have, you're at you to that your trying why Just with efforts quarter. sitting of the growth it's last and also

Jack Khattar

Yes.

the for cost and $XXX, more couple these is blended I the the average prescription are mean $XXX. around numbers. around By forth, just adult, price numbers. of you Regarding comparison, of pediatrics. mean $XXX gross estimate I'll give points so a I But it's for we

So size between about difference for a adult. actually XX%, pediatric of is the And prescription. result there is the XX% the of prescription price obviously versus that

So prescription. prescription you adults, XX with normally or XX, more the per have XX capsules to per around capsules XX tablets prescription. it's pediatric, per With

are some So metrics. adult. the quarter-to-quarter, pediatric it as as now are we but change that's does these Obviously, the versus of far over time right where

by the a much I try penetration see we it no populations the within the again, as as the its far very low. far segment. market adult showing close is get consistent continue And product in benefits, population, mean as opportunity the rates. we product. And I very, us huge have our about growth product. to to adult the as we here market our huge, safety. to above, as to share anywhere reason performance, down consistent, consistent product, fairly continues no mean very saturation on very for adult even of with slow perform, share penetration a and mean, the acceptance the to higher long across patient the the And to with the tolerability for means pediatric and and all clinical are I As feedback of patient of the them both all push

Annabel Samimy

type Is level for population share maybe -- you a account either just And you continue -- to of expect well, have of can for your outlook. through number you be go the expectations year in that up your the to to still your prescriptions about are for is penetration to that the year? for of might what still adult or XX% mean the long-term this do or going I it in going XX%

Jack Khattar

year whether that or certainly mean mix. to or after. hard quarter go through of eventually, portion quarter expect be up next working definitely be I will and part expect on more to we bigger we the Yes. the get to pretty basis, this a a it do long-term But would we

So XX% are a pediatric pediatric? will Qelbree and XX% end anyway adult market I the and up a in XX% XX% non-stimulant pretty much is Probably. mean adult where being general. we

of little going the are speaking. are bias pushing higher more in to you pediatric But some being general, to bit So pretty have much generally certainly that than a adult of business we get XX% hard earlier, as seeing satisfaction, as is everything I adult mix. And as mentioned the as we the to being what the similar far the very part with mean the pediatrics. I performance, are in general,

within we or we around grow to to adult share our within So not X% point, continue the pediatrics take. see market. no this should market give reason market be why adult able the in At is the X.X% and

for look to continue whole the Qelbree. brand we So

share talked XX% share as we could market X% the total of or X% somewhere as about remember or be You between market market. high might ADHD

clearly So have Qelbree. to go a way here long we with

Annabel Samimy

is not you I'm where got a on in on the through from camp? you quick it can is label? question label of that SPN-XXX, the to sure is in to And that population this ask if included I severe Are mostly FDA point broader any the might be the got process. review several if just times FDA the guess discussions, indications ever now there breadth label considering I but still a or

Jack Khattar

far far we I make because that discussions. at haven't that us really comment Yes. this gotten for as mean to any as on it premature is point,

So this don't know at we point. really

Operator

Thank remarks. question-and-answer you. would This to now session. the Khattar concludes like for I to closing turn Jack it back

Jack Khattar

first the a has afternoon, exclusivity growth you strong The company strong performance our multi-year its of in the strength thank of particularly we operations. remarkably call joining loss generated our positive and continues behind us X of The learn flows the legacy concluding company for its our portfolio, transition of this products. to year. about cash of the and on its through In products half quarter efficiency well this execute to second and

across pipeline several for are us we call. addition, look our again on on be XX data These significant afternoon. this over excited programs. In generating you next updating We joining to X months. Thanks will programs to about progress the the forward next our

Operator

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

You may now disconnect.

Supernus Pharmaceuticals (SUPN) 6 Aug 242024 Q2 Earnings call transcript