Supernus Pharmaceuticals (SUPN) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to Supernus Pharmaceuticals' Third Quarter 2023 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 Westwicke, Investor Relations representative for Supernus Pharmaceuticals.

You may begin.

Thank you, Stephen. Good afternoon, everyone, and thank you for joining us today for Supernus Pharmaceuticals' Third Quarter 2023 Financial Results Conference Call. of these the results. close press issued the announcing release after the company market, a Today,

to call Officer, call on On latest reflect statements.For may existing and the forward-looking who the Supernus' and company's topics the company's at Jack Financial performance. ir.supernus.com.During these required be applicable Supernus' made Chief Supernus related the call call Investor forward-looking the current make Executive with Deck. securities the any with will Jack. in SEC. company's the update differ of and current the Officer, filings. statements press as of certain regarding Khattar; me announcements discussed. statements may filings XXXX. have recorded perspective you involve Since risks those the this forward-looking of future Relations the events Please the results such section being SEC declines those to to company now turn the those and statements may and obligation company's most statements, additional except guarantees available recent these then, materially reference releases laws.I uncertainties, by Factors Risk projected course being the over future management trends to section from may on November Actual is the made the is and listening These information.Any today held X, of and benefit forward-looking of future replay, are Tim not including forward-looking are via in Today's of website noted Chief performance call, this

of join products, during the compared Qelbree XR.Our XX% we everyone, third for transition of brand taking us increase well an year million our and underscores growth last in grew Supernus $XX of the for execute year. third continues Peter. of net third of and our sales period. $XXX GOCOVRI sales sales XR by XXXX GOCOVRI GOCOVRI, the net net X in in a exclusivity Good million, the sales of and decline to the quarter on the time afternoon, $XX million million Thank results. quarter execution of exceeding XXXX year.Similarly, far for as $XXX first with quarter with in loss you, period flagship and combined months to This period $XX same discuss thanks our Trokendi exceeded representing the from during the same performance net compared Trokendi combined the its XR strong XX%, the same XXXX, reaching Qelbree in far to quarter to million last decline sales net Qelbree third Trokendi

contrasts the a years XXXX growth overall to prescription the time same X% ends. the over to year.Moving year month Qelbree June by previous season showed decline compared In ADHD Trokendi U.S. Supernus in in of year-to-date when XXXX June the the month swing in XR, addition compared the to as on school of XXXX. of total September and excluding market mainly the grew is X year ADHD robust back-to-school with XX.X% revenues when a the the U.S. This of September the This prescriptions same market. XXXX ADHD period.While XX% had XX% delivered period to last mostly compared in for total new season, growth XXXX prior full school year's to the across soft back-to-school X% in

to gross the net, lowest an the of XX% in and result, price a increase of launch the was third average Qelbree Qelbree compared the year-end Qelbree of third was prescription growth addition, sequential per from since quarter grew key in year product due to in step this quarter XXX% XX%.As XX% this the quarter of XXXX, X% the accelerated quarter third net primarily the the XXXX to XX.X%, for improvement target up and second sales This and compared the the net by quarter third around increase year of the year.During quarterly a was of to In quarter to which $XXX, last in to growth of its prescription XX%, sequential of an towards our second quarter respectively. XXXX. second X% the

$XX the and third healthy during to the same base period prescribers XX% prescribers XX,XXX approximately XXXX, XXXX second Net from XX% of of in in quarter over to sales increase third up Finally, GOCOVRI. its from of to the XXXX.Switching of the quarter quarter now XX,XXX expanded quarter, a year. over this million second increased Qelbree of representing the

$XX sales to net $XXX an the net be in same continue pleased period the performance run at of which approximately last million We brand, million, compared sales.Regarding stable now essentially in were rate year. with of annualized to Oxtellar XR, quarter is sales the third net

For net the from quarter sales quarter quarter third last year. of million the from up million, in $XX in $XX and slightly third the Trokendi second XR, down in were $XX million

FDA chemical in CNS.The of few X, action and multiple to Day performance a the PDUFA we months NDA and million in and the therapeutic earlier SPN-XXX, emerging for are held now number entities, of exciting of sales accepted full expect to our shared treat company areas product we an XXXX. We Trokendi first in novel XXXX.Regarding revising the our the R&D April Given are pipeline of near-term milestones. this overview an financial some of of X of XR net an which approximately of the resubmission mechanisms CNS month, significant has a ago, date of assigned of year, highlighted this candidates. year first-in-class A guidance $XX weeks pipeline new it

XXXX. a comorbid year-end of before initiation mood Qelbree with in disorders patients and the study depression ADHD as IV anxiety First, such Phase with

II a XXXX. year-end also with XX depressive Phase of initiation open-label approximately disorder with and the before SPN-XXX major study Second, subjects

a in SPN-XXX looking our over continuous will the XXXX of motor treatment remain in from second that, with of for data focal XXXX. fluctuations for opportunities line of half now SPN-XXX XXXX with placebo-controlled study and top treatment-resistant of active disease strategic of initiation in launch Fourth, Phase the of future turn the we leadership the by development, the resistant potential IIb FDA.Finally, half also getting Phase in And fifth, first further to the I approved half the in to seizures in first study in the Parkinson's the corporate if IIa of focal Third, patients Tim. seizures. growth call SPN-XXX position treatment CNS.With strengthen for

Good everyone. Jack. afternoon, you, Thank

the and net in of review results, press in was and refer was Qelbree product sales compared was million third today. sales I XXXX in that our a product increase same to sales decrease by sales quarter same primarily of XR, the $XX.X year. to product the third million XR product GOCOVRI.Excluding $XX to due of comprised products, for filed for periods, earlier growth Trokendi revenue period million $XXX As $X.X of the total was today's million net third both million XX-Q quarter please year. release of our decline revenue $XXX.X million. to a last XX% sales offset revenue last compared Total quarter $XXX.X quarter XXXX net revenue in XXXX The product of of million $XX.X the Trokendi in Total for quarter and royalty third XXXX in increased net net

had $X.XX to net same in basis, million share-based year.As the last September was which XXXX, September the in amortization amortization net $XX.X was GAAP for year. loss an occurred to quarter of tax X to launch or XXXX period $X.X compared compared a to same compensation, to approximately last third period last XXXX.Operating depreciation, population months operating generated basis, earnings third expenses third $X.X compared million $XX was $X.X XXXX. million and was the earnings period million operating On earnings September million the for adjusted compared cash income For per in $XXX,XXX other to as as both year. GAAP equivalents to of million the for R&D company last excludes diluted adult the million The share for XXXX, of non-GAAP period compared compared quarter period earnings last million same for tax compared year.GAAP diluted year. depreciation, contingent in in third sheet to $XX.X revenue diluted was quarter financial tax per or XXXX benefit for X on $X.X of the X for direct-to-consumer potential third XX, intangibles, support per and balance share a as XXXX, intangibles, last million million of in $XXX.X the consideration $XXX.X to the in September of was December Income loss Combined per XX, XX, support On and XXXX, was XXXX earnings compared third for of to compared as last XX% XXXX year.Total the compared a last of as sales XXXX primarily a $X.XX Trokendi or XXXX, period earnings ended million as share cash ended same sales XXXX.Operating million to decrease million and offset which million periods, year. benefit million activities has BD GAAP to on of same same R&D same for was million company operating opportunities.Now X the XXXX, securities activities loss $XXX Trokendi to year. last XXXX, expense SG&A expenses of expenses compared million GAAP months net marketable Total of turning of operations. period as $XXX.X excludes the strong in $X.XX to the diluted last was XX, product of $XX.X notes $XX.X compared $X.X $XX.X products, Again, XR, the months $XXX.X due compared security ended the of quarter year. in million. the share to in contingent $XX.X XXXX, million expenses same lower to $XX.X earnings as for consideration campaign million for compensation, of period product partially period was loss ended net product campaign for $XXX.X a due basis million tax $XX.X and The of the increased our income Qelbree $X.XX compared was adjusted the same by million an product $XXX.X to million the period $XX.X XXXX operating months was quarter repayment the the for convertible $X.X and was the as same flexibility the GOCOVRI.Excluding basis XXXX, this sales of last expense due again were compared decrease September $XXX.X or in due for an the decrease X to revenue sales product period by for net substantially same million increase XX, the SG&A direct-to-consumer of SG&A to combined the year. million of to net primarily XR primarily of from $X.X and the September period XX, year. the and ended were X September $XXX.X net launch for Income SG&A decrease $XXX.X in a decline months million the to Qelbree year. lower same guidance. revenues as $XX.X were comprised to sales and a of royalty cash, and growth the net in the million offset to months in share-based and total last revenues significant of the third to non-GAAP XXXX million in occurred the XX, ended Qelbree XX, quarter in value-creating The of adult quarter population The

financial its For the amending as full is follows. year XXXX, the company guidance

of to revenue, to million total million the compared we are $XXX prior to million narrowing $XXX For to guidance range million. $XXX our $XXX

the operating our million.Overall, to combined we $XXX $XXX to expenses million million the XXXX, million. $XXX down we and XXXX year from loss $X range million to to expect an For from of $XX from loss expect million SG&A of range $XXX range to million, full improvement from previous guidance guidance R&D of $XX GAAP million, prior an operating to $XX

for expect press previously. and the call We $XXX to operator year refer full reconciling range for earnings XXXX our $XX compared ranges range items the earnings million $XX million identifies now are a various increasing Please million between to that, I of of a call the non-GAAP.With to to now turn to of million also operating and the $XXX release GAAP issued that over prior Q&A. to the will non-GAAP the

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

quarter I thought I'd questions Day. after R&D by start on this asking your pipeline

So in later remind also of pulsatile study. believe, would patients reductions to us open-label in days the dose And terms secondly, of rates, depression is in full X meaningful data, first again for your seizure then maybe action epilepsy you the for understanding be efficacy half seizure set one first freedom what your this for XXXX, first XX you every SPM-XXX, half and data XXXX. asset, I evaluating are data on this an

of kind positive to want HAM-D see? you separation data you do what to MADRS also why? So What's and

Yes, one. I'll take this

So as think at look that first it you X or reduction up have seizure XX% the in was we is really or patients data starting SPN-XXX, data, the profile showing from promising, R&D share in -- X did certain looks Day, XX% interim with the far the so on the product even the the I mentioned situations. we that this and is in emerging as to

it patients. it a set is is Obviously, is that small of extremely So promising. number in of early Yet early.

been see, seen study on, reduction and will hope what we've small differentiate which pulsatile the seizure consistent well very, clearly that We I to study obviously, and we of full very very so is very type certainly. so years will that seizure with we product important very dosing instead hope So about, X that emerging think, data the of very will are starting for because these all very study -- we've be trend, from to that I I Again, data or the have on of so talked we points early whatever patients, we small with have he's on promising trends but the for consistent is with that and we it's and use study, that other which numbers more. the second free, the ranges that encouraging versus that similar products in before the we eventually X other had that we SPN-XXX, on the early study left X X year-end, freedom, TRD, far.On disorder that so have, far numbers marketplace.Seizure Australia, guess, still MDD sure mean, patient in also depressive seen expanded potential as want product. the major the and explore type of that show

we're Clearly, for that endpoints. it's the looking reductions on only for seen not be could TRD. So meaningful

in on points we TRD. in study study IIb with are that going many Phase the is so end as We at secondary currently are that as looking well

inform So the better us in forth. both whether how Phase the dosing design forward once-a-day in will clearly studies looking pulsatile tremendously so the than and will be III, dosing to

working of So many III program. as different of start to a design study the possible give we're better the we molecule trying us as as information the of Phase explore on aspects to the

IIb of XXXX Phase ongoing the for target just is more subjects. XXX one And with data

I think had later. you phase the I or think a ago, month in patients XX screening

And get you So be you say, that on X there number to just X where in, months? how ensuring to are you let's would on want time?

a why hoping bit, saying because a hard the it of a we're for significant times XXXX. of a It's to as now couple hard working to enrollment up picks little we're in can enrollment, top little it and make you'll XXXX. very softens data second we're in bit a way Clearly, XXXX. good, of have and the us possible that's of in mean in again. really right guess And line weeks like very I lot half it enrollment, early strong Yes. we complete as

perspective, trend molecule from Remember, don't know of we also this action. is not the recruitment So a that mechanism a There's so much of to perspective. linear enrollment different this we protocol. to -- first-in-class class We're drugs, and about it's revisions make continue always a clearly.

somebody like us. been not before it's has So

been we and cautious the of exclusion incorporate the study, the So have inclusion either we've every from relaxing in been that meaningful designing say looking always very criteria, criteria we beginning X amendment, We've linear recruitment making a we from the learnings certainly mean, I in by had. way hopefully, we've the study had protocols in very early and And the adjustments now the we're to in XXXX facilitating different therefore study hasn't some protocol. this at, basically and But data, in half get fully in the second XXXX. by the recruitment enroll as to of as fashion. there.All predictable a amendments can

investors As as closer on, or we'll goes time little certainly as and update a specific time XXXX. in get when more bit to be in we

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

This on David. Skyler is for

First, patient And expectations? given Qelbree, to just back-to-school the any quarter? impact the volumes will prescription? speak Qelbree? second, mix be is think then setting for looking any dynamics you you will fourth for at adult ADHD to in value data it look the does regarding in impactful the can season or in adoption impacting adult average versus speak acceleration pediatric How the and you that of the back-to-school your Can how for

Yes.

we're the a significant growth time, the time back-to-school down. COVID market we season, in which season, just a despite We Qelbree see in school everybody years I remarks, And several actually measuring of at mentioned year Everybody started when X%, which actually that, looking to little and first acceleration minus the previous a softer school. for we're softer was in already the is in of out looking saw back-to-school bit the in I by it which X% lowest swing. XX.X%. the was the That's mentioned the is around back-to-school June, grew this typically this decline And of full when back as ADHD the years, total.Now school. clarify trending month. with at we're looking year and point, it Regarding is couple was actually even here, then way And is in at really prepared is continued a years. a growth, than September

why of pick measure, that's the Qelbree do Can you for referred and we back-to-school to season. We than So numbers that itself. decline these to did -- better better months always the better? June. these market for XX.X%.So clearly season, I so there a overall. clearly, grew actually X% surrogate I much September X mean, we that from past this extremely well as a were was And speak, that's look doing

far seen as recent the data. little As bit weeks, stronger a have we weekly

at third XX%, the in we're the sequential XX%. versus I quarter so fourth the If quarter, data mean, you far more trending look

healthier to business. clearly, on than trending.Regarding third bit question XX% ends your be adult up So the XX% quarter the of is little about the remains seen the a quarter, mix, full how but it to next

expect third quarter major So it's because you been push for which us was on a pediatrics. the stable, the would

season. of a the back-to-school and effort clearly behind pediatric during the is business the put So because we third mode, lot although quarter prioritization still adult of launch in the

XX-XX. XX% market, XX% time think like I and adult we do the grow. expect an will So on don't mix. But, that maybe that goes we to on, adult will be to think mirror Hopefully, get in exactly great of ongoing continue it pediatric. we or as we to the future, it is XX% which to however, but if that kind will don't level, may a settle get

to at Thank questions this back closing would for you. I'm Jack showing I like now no further time. turn to remarks. Khattar it

XR growth our X months the XX% of sales. net of strong products, Qelbree first year you. Trokendi and GOCOVRI, and Thank in delivered the growth loss far afternoon, of concluding this our in In sales net this call exceeded

as We the away move with products from smooth as growth continued and to possible well stage will for XXXX set positioned we on XXXX continued are beyond.We focus making X for as and key continue transition areas. growth the the legacy in

generating and existing our GOCOVRI, with the allowing the invest portfolio strong today pipeline. First, to Qelbree in flow, together have cash driving rest that us the and significant we with growth of portfolio,

an through you molecules. finally, forward R&D first-in-class for And corporate opportunities.Thanks to next pipeline updating look Second, afternoon. We to external this on innovative call. on differentiated the continued growth side joining us our development growth of execution our augment

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

now You may disconnect.