Supernus Pharmaceuticals(SUPN)2023-08-09 02:31Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was 170.1 million in the same quarter last year, with net product sales of 7.2 million [41][42] - The decrease in net product sales was primarily due to a 24 million increase in net sales from growth products Qelbree and GOCOVRI [42][43] - GAAP net loss for Q2 2023 was 0.02, compared to GAAP net earnings of 0.14 in the same period last year [45] - For the first half of 2023, total revenue was 322.6 million in the same period last year, with a similar trend in net product sales [46][47] Business Line Data and Key Metrics Changes - Qelbree and GOCOVRI achieved combined net sales of 29 million in Q2 2023, a 17% increase over the same period in 2022 [34] - Oxtellar XR net product sales were 30 million in the same period last year, primarily due to destocking by wholesalers [35] Market Data and Key Metrics Changes - The ADHD market was essentially flat in Q2 2023 compared to Q1 2023, while Qelbree's prescriptions showed significant growth [15] - The adult segment for Qelbree grew by approximately 16%, while the pediatric segment grew by 5%-6% [23] - Pharmacy orders from wholesalers have significantly increased in early August, indicating a positive trend ahead of the back-to-school season [17] Company Strategy and Development Direction - The company is focused on making the 2023 transition smooth while moving away from legacy products and setting the stage for growth in 2024 and beyond [3] - The company plans to host an R&D Day on October 18, 2023, to provide insights into its product pipeline, emphasizing SPN-817 and SPN-820 [37][38] - The company continues to prioritize commercial assets for business development while remaining open to pipeline assets that could be launched in the near future [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Qelbree, citing its unique clinical profile and increasing adoption among physicians [33][85] - The company expects sales to continue to grow in Q3 and Q4, driven by the back-to-school season [63] - Management noted that the stimulant shortages may not significantly benefit Qelbree, as physicians may opt for alternative stimulants rather than switching to non-stimulants [91] Other Important Information - The company had approximately 555.2 million at the end of 2022, primarily due to the repayment of convertible senior notes [51][52] - The company reiterated its financial guidance for total revenue in 2023, expecting it to range from 620 million [53] Q&A Session Summary Question: Can you comment on Qelbree's net price and any inventory fluctuations in Q2? - Management indicated that orders from pharmacies are showing a healthy increase, which is a positive leading indicator for future sales [58] Question: How does the sales trajectory for Qelbree look for Q3 and Q4? - Management expects prescriptions to pick up in Q3 and continue growing into Q4 due to the back-to-school season [63] Question: What are the underlying volume trends for GOCOVRI? - Management estimated prescription growth for GOCOVRI to be around 6% in the first half of the year, indicating healthy growth [73] Question: What is the company's strategy regarding business development? - The company continues to prioritize commercial assets while also considering pipeline assets that could be launched in the near future [75] Question: Can you explain the rationale behind the recent settlement regarding Oxtellar XR? - Management decided to settle to mitigate risks and allocate resources more effectively towards key brands like Qelbree and GOCOVRI [78]