Supernus Pharmaceuticals(SUPN) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $168.3 million, up from$135.5 million in the same quarter last year, representing a significant increase [11] - Net product sales increased to $162.5 million, driven by growth products Qelbree and GOCOVRI [11] - GAAP net earnings for Q2 2024 were$19.9 million or $0.36 per diluted share, compared to a net loss of$831,000 or $0.02 loss per diluted share in the same quarter last year [12] - Adjusted operating earnings on a non-GAAP basis were$45.5 million, compared to $10 million in the same quarter last year, indicating a substantial increase [12][15] - For the first six months of 2024, total revenues were$312 million, up from $289.3 million in the same period last year [14] Business Line Data and Key Metrics Changes - Qelbree saw a 26$59 million in Q2 2024 [5][6] - GOCOVRI's net sales increased to $32 million, reflecting a 10$30 million, up from $24 million in the same quarter last year, while Trokendi XR sales decreased by 12$17 million [7] - Combined net sales of Trokendi XR and Oxtellar XR are expected to be in the range of $135 million to$145 million for 2024 [8] Market Data and Key Metrics Changes - The ADHD market grew by 8% year-to-date in 2024 compared to 3% in 2023, indicating a recovery in the overall market [25] - Adult prescriptions for Qelbree accounted for approximately 32% of total prescriptions, with a 26% growth in the adult patient population [6][34] Company Strategy and Development Direction - The company is focused on advancing its product pipeline, including SPN-817 for treatment-resistant seizures and SPN-820 for depression [5][10] - The company plans to initiate a Phase 1 study of SPN-443 for ADHD and other CNS disorders, indicating ongoing commitment to pipeline development [10] - The company is actively seeking strategic opportunities for growth and leadership in the CNS market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resubmission of SPN-830, noting a lower number of issues compared to the previous submission [19] - The company anticipates strong performance in the back-to-school season, which is critical for Qelbree's growth [32] - Management raised its financial guidance for total revenue for 2024 to a range of $600 million to$625 million, reflecting optimism about continued growth [16] Other Important Information - The company reported approximately $347.2 million in cash and marketable securities as of June 30, 2024, up from$271.5 million at the end of 2021, indicating strong financial health [15] - The company has generated approximately $200 million in cash from operations in the past 18 months, providing significant financial flexibility for potential M&A opportunities [15] Q&A Session Summary Question: Confidence in SPN-830 approval - Management expressed confidence in the resubmission of SPN-830, noting fewer issues compared to the previous submission and a pre-resubmission meeting with the FDA [19] Question: SPN-817 Phase 2a data - Management expects to report additional patients completing the maintenance period for SPN-817, with a good number anticipated for the full results [20][21] Question: Expectations for Calgary during back-to-school season - Management expects robust growth in prescriptions for Calgary, with a recovery in the ADHD market compared to the previous year [25][26] Question: Adult population growth and pricing - Management indicated that adult prescriptions are driving improved pricing, with a significant difference in average prescription costs between adult and pediatric patients [36] Question: Future penetration in adult population - Management expects the adult population's share of prescriptions to increase over time, with ongoing efforts to enhance market penetration [39]