• Supernus Announces Second Quarter 2022 Financial Results

    Source: Nasdaq GlobeNewswire / 04 Aug 2022 16:01:00   America/New_York

    • Second quarter 2022 total revenues of $170.1 million, a 20% increase compared to second quarter 2021
    • Second quarter 2022 GAAP operating earnings of $11.3 million; second quarter 2022 non-GAAP operating earnings of $37.6 million
    • Qelbree® continued its growth trajectory, with 62,938 prescriptions in second quarter 2022, a 33% increase compared to first quarter 2022
    • Second quarter 2022 Qelbree net product sales of $11.1 million increased 34% compared to first quarter of 2022; First six months 2022 Qelbree net product sales were $19.4 million
    • Qelbree launched in the U.S. for adult ADHD in May 2022
    • GOCOVRI® prescriptions in second quarter 2022 reached 10,929, a 16% growth compared to second quarter 2021

    ROCKVILLE, Md., Aug. 04, 2022 (GLOBE NEWSWIRE) -- Supernus Pharmaceuticals, Inc. (Nasdaq: SUPN), a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, today announced financial results for the second quarter of 2022, and associated Company developments.

    Qelbree Launch Update

    • Total IQVIA prescriptions were 62,938 in the second quarter of 2022, an increase of 33% compared to total prescriptions of 47,324 in the first quarter of 2022. In June 2022, the most recent month available, total prescriptions reached 23,403.
    • Qelbree continues to expand its base of prescribers, with approximately 9,276 prescribers in the second quarter of 2022, up from 6,900 prescribers from the first quarter of 2022.
    • Continued progress in securing and improving managed care coverage.
    • Supernus launched Qelbree for adult patients in May 2022.

    Product Pipeline Update

    SPN-830 (apomorphine infusion device) - Continuous treatment of motor fluctuations (“off” episodes) in Parkinson's disease (PD)

    • The Company continues to work closely with the U.S. Food and Drug Administration (FDA) as it reviews the New Drug Application (NDA) resubmission for SPN-830 for the continuous treatment of motor fluctuations (“off” episodes) in Parkinson’s disease. The Company is preparing for the commercial launch of SPN-830 in the first quarter of 2023, assuming timely approval by the FDA. The FDA has established a PDUFA target action date in early October 2022.

    SPN-820 - Novel first-in-class activator of mTORC1

    • The Company continues to enroll patients in a Phase II multi-center, randomized double-blind placebo-controlled parallel design study of SPN-820 in adults with treatment-resistant depression. The study will examine the efficacy and safety of SPN-820 over a course of five weeks of treatment in approximately 270 patients. The primary outcome measure is the change from baseline to end of treatment period on the Montgomery-Asberg Depression Rating Scale (MADRS) Total Score, a standard depression rating scale.

    SPN-817 – A novel product candidate for the treatment of epilepsy

    • An open-label Phase II clinical study of SPN-817 in patients with treatment-resistant seizures is expected to start in the fourth quarter of 2022.

    Financial Highlights

    Net Product Sales

    For the three months ended June 30, 2022, net product sales were $165.5 million, a 19% increase over $138.6 million for the same period in 2021. For the six months ended June 30, 2022, net product sales were $312.9 million, a 17% increase over $267.0 million for the same period in 2021. The increases in both periods were primarily due to net product sales of GOCOVRI and growth in net product sales of Qelbree and Oxtellar XR.

    The following table provides information regarding our net product sales during the three and six months ended June 30, 2022 and 2021 (dollars in millions):

     Three Months Ended June 30,  Six Months Ended June 30, 
     2022 2021 Change % 2022 2021 Change %
    Net product sales           
    Trokendi XR®$71.6 $78.8 (9)% $134.4 $150.6 (11)%
    Oxtellar XR® 30.0  25.0 20%  57.5  52.4 10%
    GOCOVRI(1) 24.7   **   47.3   ** 
    APOKYN® 20.4  27.0 (24)%  38.9  48.7 (20)%
    Qelbree 11.1  0.3 **   19.4  0.3 ** 
    Other(2) 7.7  7.5 3%  15.4  15.0 3%
    Total net product sales$165.5 $138.6 19% $312.9 $267.0 17%
                      

    ___________________________________________
    (1) The Company acquired Adamas Pharmaceuticals, Inc. in November 2021 (the "Adamas Acquisition").
    (2) Includes net product sales of MYOBLOC®, XADAGO® and Osmolex ER®.
    ** Not meaningful

    Operating earnings (GAAP and non-GAAP)

    For the three months ended June 30, 2022 operating earnings (GAAP) were $11.3 million, as compared to $34.1 million for the same period in 2021. For the six months ended June 30, 2022 operating earnings (GAAP) were $13.3 million, as compared to $47.3 million for the same period in 2021. The decreases in both periods were primarily due to activities to support the launch of Qelbree, costs associated with GOCOVRI and amortization of acquired intangible assets from the Adamas Acquisition.

    For the three months ended June 30, 2022, adjusted operating earnings (non-GAAP) were $37.6 million, compared to $37.4 million in the second quarter of 2021. For the six months ended June 30, 2022, adjusted operating earnings (non-GAAP) was $65.7 million, compared to $62.7 million in the second quarter of 2021.

    Reconciliation of GAAP to Non-GAAP Adjustments

    An itemized reconciliation between operating earnings on a GAAP basis and operating earnings on a non-GAAP basis is as follows (dollars in millions):

     Three Months Ended June 30, Six Months Ended June 30,
      2022   2021   2022   2021 
    Operating earnings - As Reported (GAAP)$11.3  $34.1  $13.3  $47.3 
    Adjustments:       
    Amortization of intangible assets 20.6   5.9   41.3   12.0 
    Share-based compensation 4.3   5.5   8.3   9.8 
    Contingent consideration expense (gain) 0.7   (8.8)  1.4   (7.7)
    Depreciation 0.7   0.7   1.4   1.3 
    Operating earnings - As Adjusted (non-GAAP)$37.6  $37.4  $65.7  $62.7 
                    

    Non-GAAP operating earnings adjusts for non-cash items including amortization of intangible assets, share-based compensation expense, change in fair value of contingent consideration, and depreciation. Included in the amortization of intangible assets for the three and six months period ended June 30, 2022 was amortization of acquired intangible assets from the Adamas Acquisition in November 2021.

    Net earnings (GAAP)

    For the three months ended June 30, 2022, net earnings (GAAP) and diluted earnings per share (GAAP) were $7.9 million and $0.14, respectively, as compared to $23.7 million, or $0.43 per diluted share, in the same period in 2021.

    For the six months ended June 30, 2022, net earnings (GAAP) and diluted earnings per share (GAAP) were $33.5 million and $0.57, respectively, as compared to $29.4 million, or $0.54 per diluted share, in the same period in 2021.

    Cash, cash equivalents and marketable securities

    At June 30, 2022, the Company’s cash, cash equivalents, current and long-term marketable securities are approximately $508.2 million, compared to $458.8 million as of December 31, 2021. This increase was primarily due to cash generated from operations.

    Full Year 2022 Financial Guidance (GAAP)

    For full year 2022, the Company reiterates its prior financial guidance as set forth below (dollars in millions):

     Amount
    Total revenues (1)$640 - $680
    Combined R&D and SG&A expenses$460 - $490
    Operating earnings (2)$20 - $40
      

    ___________________________________________
    (1) Includes net product sales and royalty revenue.
    (2) Includes amortization of intangible assets and contingent consideration expense (gain).

    Full Year 2022 Financial Guidance - GAAP to Non-GAAP Adjustments

    An itemized reconciliation between projected operating earnings on a GAAP basis and projected operating earnings on a non-GAAP basis is as follows (dollars in millions):

     Amount
    Operating earnings - GAAP$20 - $40
    Adjustments: 
    Amortization of intangible assets$80 - $85
    Share-based compensation$20 - $25
    Contingent consideration$8 - $12
    Depreciation$2 - $3
    Operating earnings - non-GAAP$130 - $165
      

    Non-GAAP Financial Information

    This press release contains a financial measure, non-GAAP operating earnings, which does not comply with United States generally accepted accounting principles (GAAP). The non-GAAP financial measure should be considered in addition to, not as a substitute for or in isolation from, or superior to measures prepared in accordance with GAAP. Non-GAAP operating earnings adjust for non-cash share-based compensation expense, depreciation and amortization, and accretion of contingent consideration, and for factors that are unusual, non-recurring or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables in this press release. We believe the use of non-GAAP operating earnings is useful supplemental information to investors regarding the Company’s results of operations and assist management, analysts, and investors in evaluating the performance of the business. There are limitations associated with the use of non-GAAP financial measures. Including such measures may not be entirely comparable to similarly titled measures used by other companies, may not reflect all items of income and expense, as applicable, that affect our operations, potential differences among calculation methodologies, may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. We mitigate these limitations by reconciling the non-GAAP financial measure to the most comparable GAAP financial measure. Investors are encouraged to review the reconciliation. The Company’s 2022 financial guidance is also being provided on both a reported and a non-GAAP basis.

    Conference Call Details

    Supernus will host a conference call and webcast today, August 4, 2022, at 4:30 p.m. Eastern Time to discuss these results.

    A live webcast will be available in the Events & Presentation section of the Company’s Investor Relations website www.supernus.com/investors.

    Participants may also pre-register any time before the call here. Once registration is completed, participants will be provided a dial-in number with a personalized conference code to access the call. Please dial in 15 minutes prior to the start time.

    Following the live call, a replay will be available on the Company's Investor Relations website www.supernus.com/investors. The webcast will be available on the Company’s website for 60 days following the live call.

    About Supernus Pharmaceuticals, Inc.

    Supernus Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases.

    Our diverse neuroscience portfolio includes approved treatments for epilepsy, migraine, ADHD, hypomobility in PD, cervical dystonia, chronic sialorrhea, dyskinesia in PD patients receiving levodopa-based therapy, and drug-induced extrapyramidal reactions in adult patients. We are developing a broad range of novel CNS product candidates including new potential treatments for hypomobility in PD, epilepsy, depression, and other CNS disorders.

    For more information, please visit www.supernus.com.

    Forward-Looking Statements

    This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not convey historical information but relate to predicted or potential future events that are based upon management's current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In addition to the factors mentioned in this press release, such risks and uncertainties include, but are not limited to, the Company’s ability to sustain and increase its profitability; the Company’s ability to raise sufficient capital to fully implement its corporate strategy; the implementation of the Company’s corporate strategy; the Company’s future financial performance and projected expenditures; the Company’s ability to increase the number of prescriptions written for each of its products; the Company’s ability to increase its net revenue; the Company’s ability to commercialize its products including Qelbree; the Company’s ability to enter into future collaborations with pharmaceutical companies and academic institutions or to obtain funding from government agencies; the Company’s product research and development activities, including the timing and progress of the Company’s clinical trials, and projected expenditures; the Company’s ability to receive, and the timing of any receipt of, regulatory approvals to develop and commercialize the Company’s product candidates; the Company’s ability to protect its intellectual property and operate its business without infringing upon the intellectual property rights of others; the Company’s expectations regarding federal, state and foreign regulatory requirements; the therapeutic benefits, effectiveness and safety of the Company’s product candidates; the accuracy of the Company’s estimates of the size and characteristics of the markets that may be addressed by its product candidates; the Company’s ability to increase its manufacturing capabilities for its products and product candidates; the Company’s projected markets and growth in markets; the Company’s product formulations and patient needs and potential funding sources; the Company’s staffing needs; the Company’s ability to increase the number of prescriptions written for each of its products and the products of Adamas; the Company’s ability to increase its net revenue from its products and the products of Adamas; and other risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission made pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

    Supernus Pharmaceuticals, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)

     June 30, December 31,
      2022   2021 
     (unaudited)  
    Assets   
    Current assets   
    Cash and cash equivalents$173,428  $203,434 
    Marketable securities 187,359   136,246 
    Accounts receivable, net 158,063   148,932 
    Inventories, net 84,860   85,959 
    Prepaid expenses and other current assets 21,410   27,019 
    Total current assets 625,120   601,590 
    Long-term marketable securities 147,373   119,166 
    Property and equipment, net 16,317   16,955 
    Intangible assets, net 743,405   784,693 
    Goodwill 115,414   117,516 
    Other assets 47,344   49,232 
    Total assets$1,694,973  $1,689,152 
        
    Liabilities and stockholders’ equity   
    Current liabilities   
    Accounts payable and accrued liabilities$133,000  $117,683 
    Accrued product returns and rebates 145,761   132,724 
    Contingent consideration, current portion 47,240   44,840 
    Convertible notes, net (a) 400,909    
    Other current liabilities 8,626   20,132 
    Total current liabilities 735,536   315,379 
    Convertible notes, net (a)    379,252 
    Contingent consideration, long-term 9,645   35,637 
    Operating lease liabilities, long-term 37,080   41,298 
    Deferred income tax liabilities (a) 59,313   85,355 
    Other liabilities 11,965   16,380 
    Total liabilities 853,539   873,301 
        
    Stockholders’ equity   
    Common stock, $0.001 par value; 130,000,000 shares authorized; 53,492,386 and 53,256,094 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 53   53 
    Additional paid-in capital (a) 389,586   434,337 
    Accumulated other comprehensive earnings (loss), net of tax (2,220)  1,539 
    Retained earnings (a) 454,015   379,922 
    Total stockholders’ equity 841,434   815,851 
        
    Total liabilities and stockholders’ equity$1,694,973  $1,689,152 
            

    ______________________________
    (a) Effective January 1, 2022, the Company adopted the simplified convertible instruments accounting guidance (ASU 2020-06), which impacted the treatment of our Convertible Senior Notes Due 2023. The adoption of ASU 2020-06 increased the carrying amount of the convertible notes, net by $20.6 million, increased retained earnings by $40.6 million, reduced additional paid-in capital by $56.2 million, and decreased deferred tax liabilities by $5.0 million as of January 1, 2022.

    Supernus Pharmaceuticals, Inc.
    Condensed Consolidated Statements of Earnings
    (in thousands, except share and per share data)

     Three Months Ended
    June 30,
     Six Months Ended
    June 30,
      2022   2021   2022   2021 
     (unaudited) (unaudited)
    Revenues       
    Net product sales$165,459  $138,628  $312,923  $267,009 
    Royalty revenues 4,592   2,701   9,634   5,252 
    Total revenues 170,051   141,329   322,557   272,261 
            
    Costs and expenses       
    Cost of goods sold (a) 20,457   25,028   38,389   39,982 
    Research and development 16,385   15,455   37,224   49,735 
    Selling, general and administrative 100,476   69,535   190,935   130,992 
    Amortization of intangible assets 20,644   5,948   41,288   11,955 
    Contingent consideration expense (gain) 743   (8,750)  1,408   (7,730)
    Total costs and expenses 158,705   107,216   309,244   224,934 
            
    Operating earnings 11,346   34,113   13,313   47,327 
            
    Other income (expense)       
    Interest expense (1,810)  (5,467)  (3,752)  (11,564)
    Interest and other income, net 1,788   2,589   16,486   6,401 
    Total other income (expense) (22)  (2,878)  12,734   (5,163)
            
    Earnings before income taxes 11,324   31,235   26,047   42,164 
            
    Income tax (benefit) expense 3,459   7,509   (7,434)  12,744 
    Net earnings$7,865  $23,726  $33,481  $29,420 
            
    Earnings per share       
    Basic$0.15  $0.45  $0.63  $0.56 
    Diluted (b)$0.14  $0.43  $0.57  $0.54 
            
    Weighted average shares outstanding       
    Basic 53,426,163   53,005,344   53,378,319   52,985,472 
    Diluted (b) 61,397,159   54,724,146   61,401,694   54,601,533 
                    

    ______________________________
    (a) Excludes amortization of acquired intangible assets
    (b) As a result of the adoption of ASU 2020-06 in January 1, 2022, for the 2022 periods presented, the Company had an increase of 6.8 million in dilutive shares included in diluted weighted average shares of common stock outstanding for the purposes of calculating diluted earnings per share under the if-converted method.

    CONTACTS:

    Jack A. Khattar, President and CEO
    Timothy C. Dec, Senior Vice President and CFO
    Supernus Pharmaceuticals, Inc.
    Tel: (301) 838-2591

    or

    INVESTOR CONTACT:
    Peter Vozzo
    ICR Westwicke
    Office: (443) 213-0505
    Mobile: (443) 377-4767
    Email: peter.vozzo@westwicke.com


    Primary Logo

Share on,