Supernus Announces Fourth Quarter and Full Year 2014 Results
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Cash flow positive for the fourth quarter,
$5.9 million , and for the full year,$3.2 million .
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Net income for the fourth quarter,
$4.4 million , and for the full year,$19.9 million .
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Total revenue for the fourth quarter,
$30.8 million , exceeded guidance by$4 million , and includes$30.5 million in net product sales.
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Total revenue for full year 2014 was
$122.0 million , including$89.6 million in net product sales.
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Fourth quarter product prescriptions increased to 70,739, representing a 22% increase over the third quarter of 2014.
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Met with the
FDA in December to review SPN-810. We remain on-track to initiate Phase III testing in the fourth quarter of 2015.
Business Update
Fourth quarter prescriptions, as reported by Symphony for Trokendi XR® and Oxtellar XR®, totaled 70,739, increasing by 12,963, or 22%, as compared to third quarter 2014. Trokendi XR prescriptions for the fourth quarter totaled 50,583, a 28% increase over the 39,524 prescriptions for the third quarter. Oxtellar XR prescriptions for the fourth quarter totaled 20,156, a 10% increase over the 18,252 prescriptions for the third quarter.
Managed care coverage continues to be strong for both products. Oxtellar XR now has 180.2 million lives covered and Trokendi XR has 174.0 million lives covered. Roughly 89% of Trokendi XR and 90% of Oxtellar XR national claims are approved by payors.
"During our November earnings call, we reiterated that the Company would become cash flow positive by the end of the fourth quarter. Not only was the Company cash flow positive for the month of December, but it was also significantly cash flow positive for the entire fourth quarter. In addition, net product revenue of approximately
"We look forward to another strong year in 2015, as we continue to build on the success of our product launches and growing prescription base," said
Revenue and Gross Margin
Total revenue for the fourth quarter and full year 2014 was
Net product revenue for the fourth quarter 2014 consisted of
Licensing revenue for the full year 2014 was approximately
Gross margin for the fourth quarter and full year 2014 was approximately 92.5% and 93.6%, respectively.
Operating Expenses
Selling, general and administrative expenses for the fourth quarter and full year 2014 were
Research and development expenses during the fourth quarter and full year 2014 were
Net Income and Earnings per Share
The Company reported net income for the fourth quarter of
The Company reported net income for full year 2014 of
This improvement is driven primarily by increased revenue associated with higher prescription volumes from Oxtellar XR and Trokendi XR, partially offset by expenses associated with the
expansion of our sales force, an increase in marketing expenditures associated with that sales force expansion, and an increase in research and development expenses associated with the development of both of our product candidates, SPN-810 and SPN-812.
Weighted average diluted common shares outstanding in the fourth quarter and full year 2014 were approximately 43.2 million and 50.6 million, respectively, as compared to approximately 34.6 million and 31.8 million during the respective 2013 periods. The diluted earnings per share calculation assumes that all of our outstanding convertible debt is converted into shares of common stock. If this conversion were to occur, the Company would record a loss on extinguishment of debt, the pro-forma impact of which is incorporated into the diluted earnings per share calculation.
| Summary of Non-GAAP Adjustments | |||||
| (in thousands, except per share data) | |||||
| Adjustment | |||||
| GAAP |
Revenue from royalty agreement |
Changes in fair value of derivative liabilities |
Loss on extinguishment of debt |
Non-GAAP | |
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Three Months ended |
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| Total Revenue | $ 30,801 | $ -- | $ -- | $ -- | $ 30,801 |
| Operating income | 4,729 | — | — | — | 4,729 |
| Net income (loss) | 4,354 | — | (694) | — | 3,660 |
| Income (loss) per common share-basic | 0.10 | — | (0.01) | — | 0.09 |
| Income (loss) per common share-diluted | 0.10 | — | (0.02) | — | 0.08 |
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Year ended |
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| Total Revenue | $ 122,045 | $ (30,000) | $ -- | $ -- | $ 92,045 |
| Operating income | 24,230 | (30,000) | — | — | (5,770) |
| Net income (loss) | 19,871 | (30,000) | (2,809) | 2,592 | (10,346) |
| Income (loss) per common share-basic | 0.47 | — | (0.71) | — | (0.24) |
| Income (loss) per common share-diluted | 0.32 | — | (0.56) | — | (0.24) |
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Three Months ended |
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| Total Revenue | $ 10,334 | $ -- | $ -- | $ -- | $ 10,334 |
| Operating income | (11,357) | — | — | — | (11,357) |
| Net income (loss) | (22,406) | — | 662 | 8,388 | (13,356) |
| Income (loss) per common share-basic | (0.65) | — | 0.26 | — | (0.39) |
| Income (loss) per common share-diluted | (0.65) | — | 0.26 | — | (0.39) |
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Year ended |
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| Total Revenue | $ 12,019 | $ -- | $ -- | $ -- | $ 12,019 |
| Operating income | (61,920) | — | — | — | (61,920) |
| Net income (loss) | (92,273) | — | 13,354 | 9,550 | (69,369) |
| Income (loss) per common share-basic | (2.90) | — | 0.72 | — | (2.18) |
| Income (loss) per common share-diluted | (2.90) | — | 0.72 | — | (2.18) |
As of
Capital Resources
As of
Cash flow for full year 2014 was approximately
Financial Guidance
For full year 2015, the Company estimates that product revenue will grow by approximately 50%, ranging from
Progress of Product Candidates
The Company's product candidates currently in development, SPN-810 for impulsive aggression in patients who have ADHD and SPN-812 for ADHD, continue to progress on schedule.
Concerning SPN-810, the Company held an end of Phase II meeting with the
Concerning SPN-812, the Company expects to start a Phase IIb trial during the fourth quarter of 2015. As previously announced the Company has selected an extended release formulation that will be the basis for the product to be used in future trials. The Company continues to progress development activities on the active drug substance, conducting further pharmacokinetic studies and preclinical activities that are required for the completion of the new drug application.
Investor Day
We are pleased to announce our first ever Investor Day to be held at the
Conference Call Details
The Company will hold a conference call hosted by
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: | 86364108 | |
| Conference Call Name: |
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Following the live call, a replay will be available on the Company's website, www.supernus.com, under 'Investors'.
About
Forward-Looking Statements:
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 maintain 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
| Condensed Consolidated Balance Sheets | ||
| (in thousands) | ||
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| (unaudited) | ||
| Cash, cash equivalents and marketable securities | $ 74,336 | $ 82,191 |
| Accounts receivable, net | 17,270 | 5,054 |
| Inventories | 13,441 | 7,152 |
| Other current assets | 3,845 | 2,764 |
| Total Current Assets | 108,892 | 97,161 |
| Long term marketable securities | 19,816 | 8,756 |
| Property and equipment, net | 2,448 | 2,554 |
| Other long-term assets | 6,352 | 2,524 |
| Total Assets | $ 137,508 | $ 110,995 |
| Accounts payable | $ 1,863 | $ 3,142 |
| Accrued expenses | 25,487 | 15,172 |
| Deferred product revenue, net | — | 7,882 |
| Deferred licensing revenue | 143 | 204 |
| Total Current Liabilities | 27,493 | 26,400 |
| Deferred licensing revenue, net of current portion | 1,274 | 1,417 |
| Convertible notes, net of discount | 26,947 | 34,393 |
| Other non-current liabilities | 3,876 | 2,677 |
| Derivative liabilities | 6,564 | 12,644 |
| Total Liabilities | 66,154 | 77,531 |
| Total Stockholders' Equity | 71,354 | 33,464 |
| Total Liabilities & Stockholders Equity | $ 137,508 | $ 110,995 |
| Consolidated Statements of Operations | |||||
| (in thousands, except share and per share data) | |||||
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Three Months ended |
Year ended |
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| 2014 | 2013 | 2014 | 2013 | ||
| (unaudited) | (unaudited) | ||||
| Revenue | |||||
| Net product sales | $ 30,515 | $ 10,268 | $ 89,571 | $ 11,552 | |
| Revenue from royalty agreement | — | — | 30,000 | — | |
| Licensing revenue | 286 | 66 | 2,474 | 467 | |
| Total revenue | 30,801 | 10,334 | 122,045 | 12,019 | |
| Costs and expenses | |||||
| Cost of product sales | 2,282 | 1,066 | 5,758 | 1,104 | |
| Research and development | 5,772 | 5,402 | 19,586 | 17,245 | |
| Selling, general and administrative | 18,018 | 15,223 | 72,471 | 55,590 | |
| Total costs and expenses | 26,072 | 21,691 | 97,815 | 73,939 | |
| Operating income (loss) | 4,729 | (11,357) | 24,230 | (61,920) | |
| Other income (expense) | |||||
| Interest income and other income | 120 | 108 | 387 | 400 | |
| Interest expense | (1,189) | (2,107) | (4,963) | (7,849) | |
| Changes in fair value of derivative liabilities | 694 | (662) | 2,809 | (13,354) | |
| Loss on extinguishment of debt | — | (8,388) | (2,592) | (9,550) | |
| Total other expense | (375) | (11,049) | (4,359) | (30,353) | |
| Net income (loss) | $ 4,354 | $ (22,406) | $ 19,871 | $ (92,273) | |
| Income (loss) per common share: | |||||
| Basic | $ 0.10 | $ (0.65) | $ 0.47 | $ (2.90) | |
| Diluted | $ 0.10 | $ (0.65) | $ 0.32 | $ (2.90) | |
| Weighted-average number of common shares: | |||||
| Basic | 42,931,146 | 34,647,803 | 42,260,896 | 31,848,299 | |
| Diluted | 43,201,227 | 34,647,803 | 50,583,511 | 31,848,299 | |
CONTACT:Jack A. Khattar , President and CEOGregory S. Patrick , Vice President and CFOSupernus Pharmaceuticals, Inc. 301-838-2591 or INVESTOR CONTACT:Peter Vozzo Westwicke Partners Office: (443) 213-0505 Mobile: (443) 377-4767 Email: peter.vozzo@westwicke.com
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