Financial Position - As of December 31, 2024, the company had unrestricted cash and cash equivalents and marketable securities totaling 453.6million[570].−Cashandcashequivalentsdecreasedto69.3 million in 2024 from 75.1millionin2023,indicatinganeedforcashmanagementstrategies[598].−Cashandcashequivalentsattheendof2024were69,331,000, down from 75,054,000in2023,reflectingchangesincashmanagement[609].−AsofDecember31,2024,thecompanyreportedcashandcashequivalentsof37.8 million, an increase from 36.0millionin2023[722].−Thefairvalueofunrestrictedavailable−for−salemarketablesecuritiesincreasedto384.3 million as of December 31, 2024, compared to 196.4millionin2023[710].DebtandFinancing−Thecompanyfullyrepaidtheoutstandingprincipalandinterestonthe2023NotesinApril2023andrepaidtheCreditLineinJune2023[571].−ThecompanymayborrowfundsunderitsCreditLineinthefuture,whichexposesittointerestraterisk[571].−TheCompanyenteredintoacreditlineagreementwithUBSonFebruary8,2023,providingarevolvinglineofcreditofupto150 million[752]. - The 0.625% Convertible Senior Notes matured on April 1, 2023, with a total principal payment of 402.5millionandremaininginterestof1.3 million paid[748]. - The Company borrowed 93.0millionundertheCreditLineonMarch30,2023,andfullyrepaidthisamountalongwith0.7 million in interest by June 30, 2023[757]. Revenue and Sales Performance - Total revenues for 2024 reached 661.8million,a8.9607.5 million in 2023[600]. - Net product sales increased to 637.7millionin2024,up11.1573.9 million in 2023[600]. - Net product sales reached 637.7millionin2024,up11.1573.9 million in 2023, with Qelbree sales increasing significantly to 241.3million,representing3873.9 million, significantly up from 1.3millionin2023,representingasubstantialincrease[600].−Basicearningspershareroseto1.34 in 2024, compared to 0.02in2023[600].−Thecompanyreportedacomprehensiveearningsof74.3 million in 2024, compared to 3.9millionin2023[602].−NetearningsfortheyearendedDecember31,2024,were73,865,000, a significant increase from 1,316,000in2023and60,711,000 in 2022, reflecting strong operational performance[609]. - The company paid 53,254,000inincometaxesin2024,comparedto36,602,000 in 2023, indicating a higher tax obligation due to increased earnings[609]. Assets and Equity - Total assets increased to 1.368billionin2024,upfrom1.278 billion in 2023, reflecting a growth of 7.1%[598]. - Total stockholders' equity reached 1.036billionin2024,anincreaseof12.4921.5 million in 2023[598]. Research and Development - Research and development expenses rose to 108.8millionin2024,upfrom91.6 million in 2023, indicating a focus on innovation[600]. - Research and development expenses include costs for preclinical and clinical studies, employee salaries, and contract research services, expensed as incurred[675]. Inventory and Cost Management - Cost of goods sold decreased to 77.9millionin2024from83.8 million in 2023, showing improved efficiency[600]. - The company experienced a write-down in inventory valuation of 8,876,000in2024,comparedto8,023,000 in 2023, indicating potential challenges in inventory management[609]. Customer Concentration - Customer A accounted for 28% of gross product sales in 2024, with accounts receivable from this customer at 40%[640]. - Customer B represented 24% of gross product sales in 2024, with accounts receivable at 28%[640]. - Customer C contributed 25% to gross product sales in 2024, with accounts receivable at 16%[640]. - Customer D's share of gross product sales increased to 13% in 2024, with accounts receivable at 8%[640]. - The total percentage of gross product sales from these four customers was 90% in 2024, compared to 88% in 2023[640]. Contingent Consideration and Acquisitions - The Company completed the USWM Acquisition on June 9, 2020, with potential contingent consideration payments of up to 55million,including25 million for FDA approval and 30millionforproductlaunch,expectedtobepaidin2025[728].−TheFDAapprovedONAPGO(apomorphinehydrochloride)injectioninFebruary2025,leadingtoa25 million milestone payment[728]. - The Adamas Acquisition, completed on November 24, 2021, includes two contingent value rights (CVRs) with potential payments of 0.50pershareuponachievingsalesmilestonesofGOCOVRIexceeding150 million by December 31, 2024, and 225millionbyDecember31,2025[730][731].−AsofDecember31,2024,the2024Milestonewasnotmet,withthe2025Milestonecontingentconsiderationvaluedat0 or 25million[732].−TheCompanyrecordedachangeinfairvalueofcontingentconsiderationliabilities,withabalanceof47.34 million for USWM and no remaining balance for Adamas as of December 31, 2024[735]. Share-Based Compensation - The company recognized share-based compensation expense of 27,755,000in2024,slightlyupfrom26,759,000 in 2023, reflecting ongoing employee incentive programs[609]. - Share-based compensation expense for the year ended December 31, 2024, totaled 27.755million,anincreasefrom26.759 million in 2023 and 17.568millionin2022[763].−ThenumberofstockoptionsoutstandingasofDecember31,2024,was6,719,073,withaweightedaverageexercisepriceof30.44[764]. - The total fair value of the underlying common stock related to options that vested during the year ended December 31, 2024, was approximately 16.7million,upfrom14.8 million in 2023 and 13.9millionin2022[766].−Thetotalunrecognizedcompensationexpensewasapproximately37.4 million, expected to be recognized over a weighted-average period of 2.5 years[768]. Regulatory and Compliance - The Company plans to adopt ASU 2023-09 for the fiscal year ending December 31, 2025, which requires additional disclosures regarding income tax expense and effective tax rate reconciliation[700]. - The Company is evaluating the impact of the SEC's final climate rule on its disclosures following the adoption of the rule in March 2024[703].
Supernus Pharmaceuticals(SUPN)2025-02-25 21:13