SUPN - Earnings call transcript Q3 2024 | Supernus Pharmaceuticals, Inc.

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Operator

Good afternoon, and welcome to Supernus Pharmaceutical Third 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 Healthcare, Investor Relations representative of Supernus Pharmaceuticals.

You may begin.

Peter Vozzo

Thank you, Marvin. Good afternoon, everyone, and thank you for joining us today for Supernus Pharmaceuticals Third 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's 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 guarantees 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's statements statements certain Any company's on in the are statements.

company benefit the now recorded Since who to to most as November 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

us to Thank you, Peter. Good the thanks on today's join call. for afternoon, time everyone, and taking

performance range XX% million. Gross-to-net below would growth growth third company's were revenues and as sales. Oxtellar quarter by net on all-time XX% Driving of by Qelbree during typically in increased of high expect quarterly slightly advancement net Prescriptions the our Total product performance rate this key Qelbree's GOCOVRI, but year growth target an drivers, third and our IQVIA that was quarter. XR excluding XX% prescriptions based pipeline. annualized run third significant XXX,XXX The XXXX within the sales and to on XX% million, robust in you of a this XX%, characterized earnings representing were of approximate with reached of revised expectation, was and deductions XR reported quarterly $XX in from the basis. and $XXX growth of Trokendi quarter operating growth, another fluctuations strong

quarter, During second base X,XXX with prescribers, more third XXXX. Qelbree in further the prescribers quarter XX,XXX approximately by of the its the of up expanded ending from than XX,XXX, quarter

back-to-school June. season, over the a growth performed September For Qelbree with of well prescription in XX%

outpacing of Qelbree's period for prescriptions Finally, same the months same -- market to growth period. of for grew X% the X last first the year, IQVIA this year, XX% ADHD compared X by the

million, were for Trokendi sales $XX from net for third Oxtellar million quarter products. of Regarding growth over GOCOVRI, legacy net And the XXXX. Switching increasing net quarter year. XXXX XXXX, recovery to now sales the from compared in essentially XR, quarter quarter to the to XX% sales last $XX our representing million, flat the $XX an in with were period last first X% continued same year. third same quarter the XR down third quarter of third

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

in erosion the and for Trokendi further expect We XXXX. into XR remainder of XXXX sales

decline in entered for XXXX. this August prescriptions September resulting market XR to The in compared early a in first XX% Oxtellar generic year, of of sequential the monthly

the in erosion further expect in quarter. brand's prescriptions We the fourth

for in Oxtellar to first of combined Trokendi and XR net remainder for our X expectations XR approximately $XXX XXXX, the the of and in Oxtellar trends months XR sales million. XXXX we target raising are the the be of Given XXXX

the FDA application We with approval, option new of need a assuming launching to Regarding our the and this February product the SPN-XXX, first treatment in of acknowledged XXXX. date X, half who to of Parkinson's August XXXX. in XXXX, resubmission the committed timely drug remain FDA patients look PDUFA forward new

on [ major Moving data catalysts scales, we the with and study, several ] study in demonstrated up as depression announced decrease dose we first we depressive pipeline of within rapid HAM-DX. open-label this exploratory observed adults near hours data in recently, candidates, disorder. from beginning and CNS our IIa in of symptoms have as October, on product SPN-XXX, coming provided in In effect SPN-XXX in X a well substantial exciting Phase a novel to to our midterm the symptoms depression depression MADRS period. On

study low expects data and from well-tolerated company reduction substantial of showed with data Phase subjects suicidal events placebo-controlled XXX of Enrollment in safety a is November with a first double-blind, discontinuation in complete expected half year. a XX% the in the depression its addition, to ideation this treatment-resistant XXXX. adjunctive The of provide In to approximately adults rate. IIb of adverse in and profile SPN-XXX few of

is extension company company subjects has conducting subjects XX% the from twice of XX% or open-label median XX% of XX% line seizures patients of Moving XX% May reduction the having showed the and or post-maintenance and reduction completed been company X-milligram reduction, subjects enrollment seizure of XX% with showed from study SPN-XXX having A on to more an and all top X-milligram Stage from more seizure period, extension subjects post-maintenance reduction. seizure seizure period. In the daily study, with with who enrolled SPN-XXX Stage the doses, of or announced seizure subjects interim analysis a the seizure reduction. XX% XX% more has or with reduction more XX% from a of XX% having having and XX% a or period XX% seizure of subjects XX% or the having focal reporting now median reduction more initial maintenance In A. in reduction of and In more baseline subjects period, from completed data The SPN-XXX. planned data maintenance baseline and XXXX, Phase seizure having XX% received or who treatment-resistant seizures. stage the IIa in The

the subject out in who one XX%, or period, period, period. Similarly, X-week seizure-free post-maintenance extension saw X had seizure XX%, out subjects, maintenance seizure-free of at Regarding least X-week or XX, one a of at one one we in least completed had seizure diary post-baseline period. freedom, the

the a SPN-XXX split by was cognitive EpiTrack, X of XX those Phase screening cognitive of subjects who events. Stage improved change and patients period XX with and adverse between function. IIa equally subjects XX% because acceptable was the epilepsy, study treatment-related who designed those the tool had is safe tolerability that out B and the cholinergic double-blind, had randomized, observed with for patients maintenance subjects by is an of in validated disorders. indicated X-milligram company-initiated Assessment no Phase and discontinuing I in focal study of the ongoing of entered a end of study X-milligram of IIb the seizures product doses. Also, single-dose reduce dosing expected candidate study. includes SPN-XXX in healthy for XXXX, A new adverse Phase our studying concomitant events the use to in placebo-controlled is in start CNS treatment-resistant who anti-emetic adults. to the SPN-XXX with

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

Timothy Dec

Jack. Good everyone. you, Thank afternoon,

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

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

legal sales decrease quarter basis earnings costs, earnings increase quarter certain a for On per decrease of $XXX.X intangibles, the as $XX.X year, loss $X.X our of per same revenues last quarter programs the and non-GAAP earnings and of were same a third XXXX, an million offset net in net ] in compared pipeline. Operating in amortization increased share were million to year. other sales, quarter in Total the by the million the the XXXX, $XX.X the of excludes were XXXX were expenses same to growth XX% [ clinical recovery also R&D product was represents million. net increase for licensing last million which operating last compared the same depreciation, in third GAAP last was goods for progress $X.XX months SG&A. GAAP but diluted last combined earnings SG&A of royalties, third year. the for compared quarter of for $X.XX quarter million last to million SPN-XXX of million the X is year. revenue share-based Qelbree we net of primarily net the as increase The a loss cost year. The sold quarter in due of For a products, our increase. Total XX, same quarter for ended and primarily sales for in million compared primarily September and net to by due product million an consideration year. This of $XX.X same product $XX $XX.X expense on contingent in associated aforementioned $XX.X $XX.X compared driven increase million sales million compared insurance and third to with $XXX.X decrease This the the million $XXX.X were or of XXXX period XXXX to product diluted to and share basis, revenues quarter and $XXX.X the continue R&D for in compensation, slight as of to SPN-XXX by adjusted GOCOVRI. million GAAP to or a operating $XX.X $XX.X comprised were

the total X ended SG&A X to sales the increased to XX, the compared same $XX.X the million months million expenses for the and XXXX, and increase product the an year. Operating year-over-year. period year. On same for same last period operating per million period share the as for earnings on compared September $XX.X were operating were share $X.XX last is ended XXXX, as $XXX.X to of months period XXXX, XR, R&D to XX, or in for basis, per an compared were consideration of September XX% last to for $X.X year. Combined amortization last revenues This and share-based Trokendi earnings intangibles, compared earnings a contingent $XX.X is diluted $XX.X basis operating Oxtellar period XX% adjusted million to net million million XX, $XXX,XXX earnings net GAAP in for XX, $XXX.X ended ended year. same million approximately September year. GAAP compensation, X million or September compared depreciation, a were of the Excluding compared $XXX.X year. loss non-GAAP same period in a the last months diluted the XXXX, X last excludes which XR increase $X.XX months same This

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

guidance. turning to Now

year XXXX, the financial guidance. its full is the raising For company

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

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

Operator

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

Lin Tsai

thanks quarter on the and for the Congratulations update.

X this to from [ with XX correctly Difficulty] overall patients, is compare [Technical this question First through X decreased on data mg seizure XX% next in a now set, last in that patients doses at So, reduction total that the are reduction maintenance overall or new XX% interpreting X the of batch we the for XX% XX% the which -- performing Sorry. way XX%? patients is seizure time? would to period ]

Jack Khattar

On robust the data XXX, continue very I think cutting gist very to that where levels and sorry, seizure know, period. you and the reduction, see of period those the I you'll ended twice the subjects, of but we as far we off are little the seizure as Andrew, actually. were in of And had maintenance just from that up extension bit, you reduction, these got And X-milligram on reduction. daily, were XX healthy XX% a announced if today, we in see question. X-milligram then the the XX subjects the post-maintenance X

going went through post-maintenance notice the reduction maintenance and [ -- stayed -- period up. and -- period then the study XX%. Similarly, that stayed to you'll notice in maintenance between they and period, up you'll rates, with in through kept -- the and are that extension the the you'll So period ] seizure the responder period the be rates the

that longer. And far the drug, earlier. an weeks in first of of enough we subjects or or what that reduction. is that as are subjects this had reading seizure again, longer or the reduction. more as to of very that XX% number seems analysis as reduction, happening because -- to The to period seizure explained stayed like it's not to back, interestingly more patients for XX% -- long nice time. few it's general. But is numbers see interesting we reported even exploratory have at see so the time that study study, here had nice few small as we very really the on stayed fairly speak, of a subjects So as this weeks, It's is XX% only patients way level the when see had not XX% data, interim of for on And we seizure treatment, in

seizure can mean, of this of ] product I achieved at this us we very strong the general, in be believe objective study that to leading a end think area. day, the [ in really So the their

May. We in and the we're working IIb. we as study that decide what that's The the and its the in the far. why are studying is improving they in improving achieved that's appropriate study to on IIb, we seem need X-milligram, the the objective discussed us picked dose be tolerability, what we way back helping on have Phase X Phase in to doses so because we And based X and data further the

this is pretty open-label. So good about drug. the we all all, feel in still an Absolutely,

and as cut patients less up segment Again, and end Of like it meaningful. we here down, and smaller it's course, exploratory. patients numbers. with we there, And more X the data more even X it becomes

the to answered we're that's stay is why forward most on patient with, I question. is and population going forward X So your milligrams. we're seizures to we're doses that X that to moving Hopefully with, focused the move trying which which of main focal

Lin Tsai

AbbVie's of curious. approval Just you about pump AbbVie's approved Yes. across And review? positive might if under noticed pump all? Gap] and to spoke as as fast thinking serve for apomorphine at review, -- your you, highly was own they the I own [Audio read a for How recently its

Jack Khattar

mean, in well using we on overall pretty using approved and people patients patients the [ with see this time, we're market will excited are for February pump, used pumps segment us long that ] the marketplace. them. U.S. to creating the specific be we eventually to and these occur, U.S., educating our education a doing to the pumps a been segment will -- and be to has have be for for -- that that fairly company been regarding in of Outside around together and see that and to general have market treatment in the welcome to the in Yes. get category another actually hopefully, the I market There's lot pump

doing So and could a our they of we like that label opportunity. But There this be surgery is there they how fairly needed products, for both could before better question no invasive We patients products welcome that very of lot to is room well a not look the like category. treatment we treatments. And ] about see there they really compare. with X what that much think option will We'll great and this. out think be This are really patients is it. do pumps enough differentiated. resort for a [

Lin Tsai

for question XX And you drug you're effect placebo MADRS similar day I'm Do last TRD by just assuming study? in is to your with data reduction the that then saw drug in XX-point SPN-XXX what first be And recent where half? that for so replicated and week at MDD TRD X in in curious study. study -- expect or your of level you

Jack Khattar

study the [ on year study, Yes. controlled. I [ question, we're the on report big a that's, ] next course, the of of open-label mean placebo ] reported half is hopefully Obviously, Andrew. we as first

MADRS by these you, supposed look and Now, MADRS. I -- the I -- think in at space not X at you're and to someone open-label Placebo to the reduction -- trials a simplistically, you on if research but what studies. with saw XX-point data. I do placebo the MADRS meaningful I -- And studies report you out of a our look that on still I the an very, around did know and rates because or in have XX rates to are one very there open-label, are that what depression lot our at all depression average get apply this different on if looking open-label reduction are in

would to of data So, lower with much versus rather study clearly. kind I reductions. this predict it's Obviously, open-label hard have an

hours XX of X Congress, of about Congress by within Psych dose. obviously of mean, these -- remission within The rate. strong responder powerful, ] the is you're I that on actually the XX%. at of again, and will type XX% to goal. to with I remission the in sure new hours, a lot most had at MADRS, Phase remission hope we mean Again, we to the thing the looked and that's X that really that's looking we mean the just XX% up data XX% other fairly I I Psych data. case recent a the are goes the or IIb. where data on encouraging poster really be numbers. response mean, [ these And day with continue the response

Operator

of from Ku comes the TD of Stacy question next Our line Cowen.

Stacy Ku

on Congrats quarter. a nice

have We few questions. a

the year first views give expectations quick first, about the How go understanding Qelbree of you're of that volumes of as of whether just a as to thinking comment? remainder Just I current launch. seeing right are that kind set look the on Qelbree of in dynamics kind X the how for you on consensus? key questions. And kind us think So the we you're and then look about 'XX trajectory growth 'XX much to year? thinking think views $XXX next the your saw consensus? be as are as this then, pricing around about FactSet. closer question might we next to least million, you your kind net just What how tie there? And at curious on as we of should the year? So we that into we some about That's follow-up. as are we can And quarter, the

in more the placebo open-label XXX, the since was you're a to frequently. in in than touch as There dosing a the be seems response touch to kind be you very having come For trial TRD. the expecting well controlled for patients strategy the trial frequently? Are the not come a patients MDD need of in to different

as for about just expectations what response? that think study? us dynamic So the And TRD be we placebo could help understand

Jack Khattar

Yes.

market with is far about year-to-date of as first way it's and been the we've we've that on growth brand. There in couple very kind has Qelbree mean, pleased the the I the product Regarding and of growing, on growing as volume, seeing the been been prescriptions. shown question on in XX% are the a dynamics XXXX,

That really may And them the IMS data the XX-day firsthand dig we for One prescriptions. which read to something it is in is now you around not of are XX-day deeper. when somewhere you see of XX% see -- into brand prescriptions. data, in growth we're or continue obviously -- it you unless the the closing IQVIA prescriptions

and So the that -- X% be used to of what prescriptions. -- from has grown X% about

So continues, XX-day your that usual much if prescription. also prescription that than us really tells every that is bigger

the in than much So faster is see the [indiscernible]. a pill basis, brand what or on capsule growing you

will Qelbree they really that not So also also It retention. levels product, if are market to XX-day retention helps We general on the sticking clearly. doing strong with the in give well and see to what's compliance the overall. people brand. healthy us a you do think that physician ADHD tells you're don't Otherwise, very prescription on rates of and the compared

that where as anything optimistic healthy the -- the forth. year, a talk far in rates this And little growth and and been in has So brand hope clearly, XXXX. we're as bit is continue to sales February far so or the performance today sure so specific next how robust will as we'll we as more very and as specifics that, far. And

Regarding fact performance, like. But both overall, physicians the adult, and and these of population. the the both Qelbree, with for It I'm about patient lot the will gross-to-net Again, product, very we're yes, to talking time. for continue have with mean, fourth are in of that that this the really on XXXX. we behind And mean better product to stick to very net pricing it And really healthy the once the as XXXX, then year net rest patients. comment what are improvements us, might the the tried a happy of brand, strong reserve compliance, the answer XXXX for quarter type over expect they people similar is I discuss until They works. we that we is, pricing, pleased of retention. health works with evident the can and everything as it. net pointing any continue we we'll I look pricing the compliant with pediatric its quarter, see

and single to Stacy yes, the question this -- at which the the as more I daily flexible trial versus and versus I far but lower on dose a had response, milligram. and level, a really is placebo mean, on dose milligrams given as is a really very and predict the I dose, Phase to was IIb question hard daily dose see X a MDD As every whether to that's ]. dose response TRD mean, single speculate days mean, the X,XXX hard MDD being. what to the XXX TRD placebo to It's of versus -- second point, X,XXX the and [ versus dose speculate will end up

of So on [ data up see that just ]. to and one, I will the at end we'll have end tunnel think showing the wait what the

Operator

Our comes line Sandler. next from David of question of Amsellem the Piper

David Amsellem

couple. a have I So

latest advancement about the to wanted of Qelbree, exome pick give thinking regarding particularly pipeline? and about M&A adult on your specifically, brain longer in First, We're competitive your that, just, thinking in data the your us about landscape I So thoughts secondly, for pipeline-focused that's you're you're deployment prioritizing commercial near going future. how one. Then thinking context And can patients stage believe, the number term? you're I whether solriamfetol capital of how [ ], the get in you you're to about versus how assets internal assets?

all? other how about thinking non-stimulant longer the if that product, at like thinking Qelbree about potential are as impact you entrants So term, to you're

Jack Khattar

capital haven't M&A, priorities on much. deployment really question first changed our and the Regarding

focus. We continue to

priority cash and further that growth, than commercial are so flow priority And pipeline. top later products the own be bring pipeline be us would revenue our would stage forth. assets that a next at Our

clearly, IIb. about in the assets So Phase other beyond launch the X Phase pump, pump. the II finish or the -- our pump are hopefully, But to we'll

Phase other of other can III in and or will in so on in pipeline. bring products anything anything be than something products stage whatever other or for launch So us, NDA focus we

I can been specialty presence we're that not other before priority. But areas. little will and to where But case effectively, be not top area therapeutic So for a it's the commercial have mentioned a times in of products And and our multi-asset just we as with potentially at whatever about CNS situations now. new areas focus that one looking more and that a might pipeline right that product. new and or that's impact several make market shy products of situations, a can there our focus the we're to build type has time specific efficiently a long strong we neurology bit But other on we activities continue our couple those an can product be. In are whether CNS, psychiatry. we area, where or very agnostic, that of -- a

So we commercial sales continue perspective. given both areas infrastructure to look a areas our these presence in fairly of at both from force,

mean, I some As about far Qelbree, to be competition there as point at will competition, question no it.

to would products. way they really day other, for new the X these us comment one ideal patient You or make how products really to be or Qelbree have what of these compare a profile to see would end profile of for the of at the kind the

see clearly, compared or see against -- So as Qelbree we're potential competitors, to the they Qelbree watching general. in out and of situation data how fare the comes

whether stimulants to I mean, be remains seen. are that's another then key that So clearly. factor, also there And non-stimulants, or

David Amsellem

the If quick I target stage may of not net context just which follow-up there in commercial beyond a you particularly forma would transaction, going comfortable leverage a a sneak regarding for be in asset? a just Is pro M&A.

Jack Khattar

leverage. try as and conservative We business we stay the how far in also to run as fundamental

to don't we over So leverage. want

-- far Xx mean, you I all all X.X quickly that EBITDA at depending the as acquiring that you how and on to depends on off make debt. in it pay you're leverage And would to day, we that's know. as situation. therefore, go. comfortable the the are It health on decisions of different maybe. assets be may able as might And the really we We end depends the of the

mean, assets with. there leverage especially flows if higher. fairly comfortable or give fairly growth have with able to assets. take, might more little say, I you a and the But where cash X.X or little So -- and these a is bit these rates a little longevity, strong bit are clearly that, it not -- ideal overall, we'd comfortable to feel longevity growth Xx be for area or bit rates, gets be no I should be longevity, if will Above high ideal

Operator

showing now at for remarks. back this turn time. closing [Operator Instructions] to I'm Khattar further questions I'll Jack no it

Jack Khattar

The we you. concluding the multiyear learn strong products. to well our for quarter legacy Thank and afternoon, of and transition this In of remarkably months through X our ] performance this year. its about joining on company loss a of third us first has the call, [ you exclusivity X in thank executed

XR Excluding and Trokendi continue our legacy XR, we double-digit Oxtellar in deliver growth revenues. robust to products,

As quarter total revenues of its products third its XXXX. Moreover, flows growth a efficiency operations. strength represented cash behind only of the particularly of Trokendi the the generate portfolio, strong its company XR the of continued result, to and in X% through

In call. upcoming from next advance look II addition, We you SPN-XXX, catalysts to months. Thanks to SPN-XXX data for afternoon. our the product forward continue we us studies open-label over again we updating the and this to line announcing forward next pipeline, on and our positive several top our joining Phase on look

Operator

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

You may now disconnect.

Supernus Pharmaceuticals (SUPN) 4 Nov 242024 Q3 Earnings call transcript