Supernus Pharmaceuticals, Inc. (SUPN) reported second-quarter 2014 earnings per share of 6 cents, which compared favorably to the Zacks Consensus Estimate of a loss of 18 cents and the year-ago loss of 57 cents.
Revenues were $29.7 million, up 10.5% from the year-ago quarter. Revenues were well above the Zacks Consensus Estimate of $19 million. The increase was primarily driven by the year-over-year growth in product revenue coupled with the impact of the issuance of convertible debt.
The Quarter in Detail
Supernus’ revenues comprised product revenues and license revenues.
Combined revenues from Oxtellar XR and Trokendi XR were $27.6 million. Trokendi XR’s revenues came in at $22.6 million compared to $4.1 million in the year-ago quarter. The rest was contributed by Oxtellar XR.
In the reported quarter, Trokendi XR’s sales included sales of the drug on prescription demand during the first and second quarters as well as sale through distribution channels as of June 30. Trokendi XR was launched for the treatment of epilepsy in the third quarter of 2013.
According to IMS, in the reported quarter, total number of prescriptions for Trokendi XR and Oxtellar XR were 43,207, up 43% sequentially. Individually, Trokendi XR prescriptions and Oxtellar XR prescriptions sequentially increased 53.6% and 25.7%, respectively.
Research and development (R&D) expenses came in at $4.7 million, up 32% from the year-ago quarter primarily driven by pipeline development.
Selling, general and administrative (SG&A) expenses surged 60.3% to $19.6 million. This increase was due to sales force expansion coupled with increased promotional and marketing activities for Trokendi XR and Oxtellar XR.
Pipeline Update
Supernus is actively working towards the development of its pipeline. SPN-810 is being developed for the treatment of impulsive aggression in patients suffering from attention deficit hyperactivity disorder (ADHD). The company intends to initiate dosing of patients in a phase III study on SPN-810 for this indication in 2015.
Additionally, Supernus is also developing SPN-812 for the treatment of ADHD.
2014 Guidance Upgraded
Supernus has raised its annual revenue guidance to $105 million (previous guidance: $75 million − $85 million). This increase is due to the receipt of $30 million in Jul 2014 as part of a royalty interest acquisition agreement with HealthCare Royalty Partners. The company has reduced its cash burn outlook for 2014 to the range of $5 million − $10 million (previous guidance: $35 million − $45 million). Supernus stated in its press release that it expects to be profitable in 2014.
Supernus currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Endo International (ENDP), Gilead Sciences (GILD) and Mallinckrodt (MNK). All these stocks hold a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment