• Total Revenue (Q4 2024): $174.2 million, up from $164.3 million in Q4 2023.
• Net Product Sales (Q4 2024): $166.4 million.
• Operating Earnings (Q4 2024, GAAP): $21.4 million, compared to an operating loss of $1 million in Q4 2023.
• Net Earnings (Q4 2024, GAAP): $15.3 million or $0.27 per diluted share, compared to $1.2 million or $0.02 per diluted share in Q4 2023.
• Total Revenue (Full Year 2024): $661.8 million, up from $607.5 million in 2023.
• Net Product Sales (Full Year 2024): $637.7 million.
• Operating Earnings (Full Year 2024, GAAP): $81.7 million, compared to an operating loss of $5.3 million in 2023.
• Net Earnings (Full Year 2024, GAAP): $73.9 million or $1.32 per diluted share, compared to $1.3 million or $0.02 per diluted share in 2023.
• Cash and Equivalents (End of 2024): $454 million, up from $271 million at the end of 2023.
• Revenue Guidance (Full Year 2025): $600 million to $630 million.
• Operating Earnings Guidance (Full Year 2025, GAAP): $10 million to an operating loss of $15 million.

• Warning! GuruFocus has detected 6 Warning Signs with SUPN.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Supernus Pharmaceuticals Inc (NASDAQ:SUPN) reported a 25% increase in total revenues for 2024, excluding certain legacy products.
• Calvary, a core product, achieved a 72% growth in annual net sales and a 25% growth in annual prescriptions.
• The FDA approved an updated label for Calvary, highlighting its unique mechanism of action and providing important lactation data for breastfeeding women with ADHD.
• The company received a two-plus year patent term extension for Calvary, extending its patent protection to 2035.
• Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has a strong balance sheet with $454 million in cash and no debt, providing financial flexibility for potential M&A and growth opportunities.

Negative Points

• The first generic for Oxtellar XR entered the market, resulting in a decline in net sales for this legacy product.
• Combined net sales of Trokendi XR and Oxtellar XR were down 22% for the full year 2024.
• The phase 2B study of SPN-820 in adults with treatment-resistant depression did not demonstrate statistically significant improvement versus placebo.
• The company expects further erosion in sales of legacy products in 2025, with combined net sales projected to be between $65 million and $75 million.
• Operating earnings guidance for 2025 suggests a potential operating loss, with expectations ranging from $10 million in earnings to a $15 million loss.

Q & A Highlights

Q: Can you provide insights into the revenue expectations for Calvary in 2025 and the key drivers for sales growth? A: Jack Khattar, CEO, indicated that while they do not provide specific guidance by product, the inferred range for Calvary could be around $265 to $295 million. The key drivers for growth include continued prescription growth, with Calvary's market penetration still having significant potential. The product satisfaction rate is high, especially among adults, which supports optimism for further growth.

Q: How does the recent SPNA20 trial data affect your business development strategy, and what is your current financial capacity for acquisitions? A: Jack Khattar, CEO, clarified that SPNA20 is not terminated, and they are still evaluating next steps. Business development remains a priority, focusing on commercial products and mid-to-late-stage pipeline assets. The company has significant financial flexibility, with no debt and a strong cash position, allowing for potential acquisitions ranging from $500 million to $1.5 billion, depending on the situation.

Q: Can you elaborate on the performance of Calvary in Q4 and expectations for gross-to-net ratios in 2025? A: Jack Khattar, CEO, noted that Calvary had a strong Q4 with significant prescription growth. The gross-to-net ratio has been stable but is expected to be between 50% to 55% for 2025, considering typical Q1 increases in co-pay costs.

Q: What is the expected trajectory for the launch of UNEPCO, and are there any sales expectations included in the 2025 guidance? A: Jack Khattar, CEO, mentioned that the UNEPCO launch is expected to be a slow build, with potential initial demand from key opinion leaders. The 2025 guidance includes minimal sales expectations for UNEPCO, with projections in the mid to high single-digit millions.

Q: How do you view the competitive landscape for ADHD treatments, particularly with potential new non-stimulants entering the market? A: Jack Khattar, CEO, stated that it is difficult to comment on the competitive landscape without seeing data from new entrants. However, Supernus remains confident in Calvary's differentiation and strong market position, with a disciplined approach to payer strategies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.