Loading, Please Wait...
ROCKVILLE, Md., Aug. 07, 2018 (GLOBE NEWSWIRE) -- - Supernus Pharmaceuticals, Inc. (NASDAQ: SUPN), a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, today reported record financial results for the second quarter of 2018 and related Company developments.
Second quarter 2018 product prescriptions for Trokendi XR® and Oxtellar XR®, as reported by IQVIA, totaled 214,841, a 35.5% increase over the second quarter of 2017.
|Q2 2018||Q2 2017||Change %|
Net product sales for the second quarter of 2018 were $97.0 million, a 32.3% increase over $73.3 million in the second quarter of 2017.
|Net Product Sales ($ in millions)|
|Q2 2018||Q2 2017||Change %|
“Solid commercial execution has enabled Supernus to generate another strong quarter of growth, setting a new record for both Trokendi XR and Oxtellar XR quarterly net product sales,” said Jack Khattar, President and CEO of Supernus Pharmaceuticals.
Progress of Product Pipeline
SPN-812 – Novel non-stimulant for the treatment of ADHD
SPN-810 – Treatment of Impulsive Aggression in patients with ADHD
Oxtellar XR –Treatment of Bipolar Disorder
“As we enter the second half of 2018, we remain focused on the successful completion of our clinical programs and look forward to providing top-line data from the first Phase III trial for SPN-812 in the fourth quarter of 2018,” said Jack Khattar.
Research and development expenses in the second quarter of 2018 were $20.0 million, as compared to $10.8 million in the same quarter last year. The increase was due primarily to the initiation of the four Phase III clinical trials for SPN-812 in the second half of 2017 and to a lesser extent, the open-label extension trials for SPN-812 and SPN-810.
Selling, general and administrative expenses in the second quarter of 2018 were $40.1 million, as compared to $35.1 million in the same quarter last year. The increase was due to the expansion of the salesforce by 40 salespeople, which were fully deployed in the fourth quarter of 2017; marketing programs to support the Company’s commercial products; and an increase in share-based compensation.
Operating Earnings and Earnings Per Share
Operating earnings in the second quarter of 2018 were $35.7 million, a 37.0% increase over $26.1 million in the same period the prior year. The improvement in operating earnings was primarily due to increased net product sales, partially offset by increased operating expenses.
GAAP net earnings in the second quarter of 2018 were $30.7 million, as compared to $17.4 million in the same period last year. In addition to higher operating income, GAAP net earnings for the second quarter of 2018 benefited from the reduction in the statutory U.S. federal income tax rate and from stock option exercises.
GAAP diluted earnings per share (EPS) were $0.57 in the second quarter of 2018, compared to $0.32 in the second quarter of 2017. Net interest expense and non-cash deferred financing costs associated with the sale of $402.5 million of convertible senior notes in March 2018 had the effect of reducing GAAP net earnings by approximately $4.3 million, or $0.08 per diluted share, in the second quarter of 2018.
Weighted-average diluted common shares outstanding were approximately 54.2 million in the second quarter of 2018, as compared to approximately 53.2 million in the second quarter of 2017.
As of June 30, 2018, the Company had $677.7 million in cash, cash equivalents, marketable securities and long term marketable securities, as compared to $273.7 million at December 31, 2017. This increase reflects net proceeds of $364.9 million from the issuance of convertible senior notes and warrants, partially offset by purchases of convertible note hedges in March 2018, as well as increased cash from operations in the six months ended June 30, 2018.
For full year 2018, the Company is updating its prior guidance as set forth below:
Conference Call Details
The Company will hold a conference call hosted by Jack Khattar, President and Chief Executive Officer, and Greg Patrick, Vice President and Chief Financial Officer, to discuss these results at 9:00 a.m. Eastern Time, on Wednesday, August 8, 2018. An accompanying webcast also will be provided.
Please refer to the information below for conference call dial-in information and webcast registration. Callers should dial in approximately 10 minutes prior to the start of the call.
Conference dial-in: (877) 288-1043
International dial-in: (970) 315-0267
Conference ID: 7484048
Conference Call Name: Supernus Pharmaceuticals Second Quarter 2018 Earnings Conference Call
Following the live call, a replay will be available on the Company's website, www.supernus.com, under “Investor Relations”.
About Supernus Pharmaceuticals, Inc.
Supernus Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system diseases. The Company currently markets Trokendi XR® (extended-release topiramate) for the prophylaxis of migraine and the treatment of epilepsy, and Oxtellar XR® (extended-release oxcarbazepine) for the treatment of epilepsy. The Company is also developing several product candidates to address large market opportunities in psychiatry, including SPN-810 for the treatment of Impulsive Aggression in ADHD patients and SPN-812 for the treatment of ADHD.
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 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; 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.|
|Consolidated Balance Sheets|
|(in thousands, except share amounts)|
|June 30,||December 31,|
|Cash and cash equivalents||$||35,205||$||100,304|
|Accounts receivable, net||74,842||65,586|
|Prepaid expenses and other current assets||14,581||6,521|
|Total current assets||284,516||228,451|
|Long term marketable securities||503,312||133,638|
|Property and equipment, net||4,897||5,124|
|Intangible assets, net||33,794||36,019|
|Other non-current assets||752||389|
|Deferred income taxes||25,528||20,843|
|Liabilities and stockholders' equity|
|Accrued sales deductions||70,044||68,343|
|Income taxes payable||—||15,938|
|Non-recourse liability related to sale of future royalties, current portion||1,659||4,283|
|Deferred licensing revenue||—||287|
|Total current liabilities||103,934||123,000|
|Deferred licensing revenue, net of current portion||—||1,149|
|Convertible notes, net||321,920||—|
|Non-recourse liability related to sale of future royalties, long term||23,867||22,258|
|Other non-current liabilities||12,586||10,577|
|Common stock, $0.001 par value, 130,000,000 shares authorized at|
|June 30, 2018 and December 31, 2017; 52,179,334 and 51,314,850 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively||52||51|
|Additional paid-in capital||361,971||294,999|
|Accumulated other comprehensive loss, net of tax||(4,119||)||(747||)|
|Retained earnings (accumulated deficit)||32,588||(26,823||)|
|Total stockholders' equity||390,492||267,480|
|Total liabilities and stockholders' equity||$||852,799||$||424,464|
|Supernus Pharmaceuticals, Inc.|
|Consolidated Statements of Earnings|
|(in thousands, except share and per share data)|
|Three Months ended June 30,||Six Months ended June 30,|
|Net product sales||$||97,030||$||73,328||$||186,150||$||129,697|
|Costs and expenses|
|Cost of product sales||3,683||3,861||6,961||6,809|
|Research and development||20,038||10,823||38,946||20,425|
|Selling, general and administrative||40,097||35,078||76,946||63,316|
|Total costs and expenses||63,818||49,762||122,853||90,550|
|Other income (expense)|
liability related to sale of future royalties
|Changes in fair value of derivative liabilities||—||23||—||76|
|Loss on extinguishment of debt||—||(103||)||—||(204||)|
|Total other income (expense)||(1,864||)||358||(2,076||)||(207||)|
|Earnings before income taxes||33,856||26,425||65,038||42,648|
|Income tax expense||3,119||9,057||7,949||14,983|
|Earnings per share:|
|Weighted-average number of common shares outstanding:|
Jack A. Khattar, President and CEO
Gregory S. Patrick, Vice President and CFO
Supernus Pharmaceuticals, Inc.
Tel: (301) 838-2591
Office: (443) 213-0505
Mobile: (443) 377-4767