News Release Details

Supernus Reports Final Audited Fourth Quarter and Full Year 2021 Financial Results

April 13, 2022 at 4:11 PM EDT
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  • Annual Report on Form 10-K filed on April 13, 2022
  • Reiterates full year 2022 financial guidance provided on February 28, 2022 and reiterated on April 4, 2022

ROCKVILLE, Md., April 13, 2022 (GLOBE NEWSWIRE) -- Supernus Pharmaceuticals, Inc. (Nasdaq: SUPN), a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, today filed its Annual Report on Form 10-K and reported final audited financial results for the fourth quarter and full year ended December 31, 2021.

On February 28, 2022, the Company announced preliminary unaudited results for the fourth quarter and full year ended December 31, 2021. This press release updates and supersedes the press release issued on February 28, 2022 as a result of the filing of the Company’s audited year-end financial statements.

In completing its year-end financial statements, one change relating to non-recurring acquisition-related costs associated with the acquisition of Adamas Pharmaceuticals, Inc. (Adamas) was made to the preliminary unaudited results. This change and the resulting final audited results are in the table below:

($ in millions) Three Months Ended
December 31, 2021		   Twelve Months Ended
December 31, 2021
  Preliminary   Change   Final   Preliminary   Change   Final
Total revenues N/A   —   $159.1   $579.8   —   $579.8
Net product sales $155.0   —   $155.0   $567.5   —   $567.5
Combined R&D and SG&A expenses $105.0 - $110.0   $15.6   $122.8   $377.0 - $382.0   $15.6   $395.2
Amortization of intangible assets expense $11.0 - $12.0   —   $12.0   $29.0 - $30.0   —   $30.0
Operating earnings $20.0 - $25.0   $(15.6)   $6.1   $100.0 - $105.0   $(15.6)   $86.0

As compared to the preliminary unaudited results, combined R&D and SG&A expenses increased by approximately $15.6 million and final operating earnings was reduced by that amount, in each case, for the three and twelve months ended December 31, 2021. The final audited results do not include any other changes from the 2021 preliminary unaudited information included in the February 28, 2022 press release. Detailed final audited results for the period ended December 31, 2021, can be found at the end of this release.

Financial Results

Key financial highlights include (dollars in millions):

($ in millions) Three Months Ended
December 31,		   Twelve Months Ended
December 31,
  2021   2020   Change   2021   2020   Change
Revenues $159.1   $143.6   $15.5   $579.8   $520.4   $59.4
Operating earnings $6.1   $43.0   $(36.9)   $86.0   $173.7   $(87.7)
Net earnings $2.4   $30.8   $(28.4)   $53.4   $127.0   $(73.6)

Full Year 2021 — GAAP to Non-GAAP Adjustments

An itemized reconciliation between operating earnings on a GAAP basis and operating earnings on a non-GAAP basis is as follows:

($ in millions) Three Months Ended
December 31, 2021		   Twelve Months Ended
December 31, 2021
Operating earnings - As Reported (GAAP) $6.1   $86.0
Adjustments:      
Amortization of intangible assets 12.0   30.0
Share-based compensation 4.0   17.9
Contingent consideration 1.1   (6.5)
Acquisition-related costs 22.3   22.3
Other R&D —   15.0
Depreciation 0.7   2.6
Operating earnings - As Adjusted (non-GAAP) $46.2   $167.3

Non-GAAP operating earnings adjust for non-cash items including share-based compensation expense, depreciation and amortization, and accretion of contingent consideration, and for non-recurring costs. Acquisition-related costs reflect non-recurring acquisition-related costs related to the Adamas acquisition. Other R&D reflects a non-cash expense related to the equity investment in Navitor due to the accounting impact of the March 2021 Navitor corporate restructuring. Included in the amortization of intangible assets is amortization of acquired intangible assets from the Adamas acquisition in November 2021.

Full Year 2022 Financial Guidance (GAAP)

The Company reiterates the full year 2022 financial guidance as set forth below:

  Amount ($ in millions)
Total revenues(1) $640 - $680
Combined R&D and SG&A expenses $460 - $490
Operating earnings(2) $20 - $40
Effective tax rate 25% - 28%

(1) Includes net product sales and royalty revenue.
(2) Includes amortization of intangible assets and contingent consideration expense (gain).

Full Year 2022 Financial Guidance — GAAP to Non-GAAP Adjustments

An itemized reconciliation between projected operating earnings on a GAAP basis and projected operating earnings on a non-GAAP basis is as follows:

  Amount ($ in millions)
Operating earnings - GAAP $20 - $40
Adjustments:  
Amortization of intangible assets $80 - $85
Share-based compensation $20 - $25
Contingent consideration $8 - $12
Depreciation $2 - $3
Operating earnings - non-GAAP $130 - $165

Non-GAAP Financial Information

This press release contains a financial measure, non-GAAP operating earnings, which does not comply with United States generally accepted accounting principles (GAAP). The non-GAAP financial measure should be considered in addition to, not as a substitute for or in isolation from, or superior to measures prepared in accordance with GAAP. Non-GAAP operating earnings adjust for non-cash share-based compensation expense, depreciation and amortization, and accretion of contingent consideration, and for factors that are unusual, non-recurring or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables in this press release. We believe the use of non-GAAP operating earnings measure is useful supplemental information to investors regarding the Company’s results of operations and assist management, analysts, and investors in evaluating the performance of the business. There are limitations associated with the use of non-GAAP financial measure. Including such measure may not be entirely comparable to similarly titled measures used by other companies, may not reflect all items of income and expense, as applicable, that affect our operations, potential differences among calculation methodologies, may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. We mitigate these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. Investors are encouraged to review the reconciliation. The Company’s 2022 financial guidance is also being provided on both a reported and a non-GAAP basis.

About Supernus Pharmaceuticals, Inc.

Supernus Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases.

Our diverse neuroscience portfolio includes approved treatments for epilepsy, migraine, ADHD, hypomobility in PD, cervical dystonia, chronic sialorrhea, dyskinesia in PD patients receiving levodopa-based therapy, and drug-induced extrapyramidal reactions in adult patients. We are developing a broad range of novel CNS product candidates including new potential treatments for hypomobility in PD, epilepsy, depression, and other CNS disorders.

For more information, please visit www.supernus.com.

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 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 commercialize its products including Qelbree; 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 including SPN-830; 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; the Company’s ability to increase the number of prescriptions written for each of its products and the products of Adamas; the Company’s ability to increase its net revenue from its products and the products of Adamas; 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.
Condensed Consolidated Balance Sheets
(in thousands, except share data)

  December 31,
2021		   December 31,
2020
       
Assets      
Current assets      
Cash and cash equivalents $ 203,434   $ 288,640
Marketable securities   136,246     133,893
Accounts receivable, net   148,932     140,877
Inventories, net   85,959     48,325
Prepaid expenses and other current assets   27,019     18,682
Total current assets   601,590     630,417
Long term marketable securities   119,166     350,359
Property and equipment, net   16,955     37,824
Intangible assets, net   784,693     364,342
Goodwill   117,516     77,911
Other assets   49,232     43,249
Total assets $ 1,689,152   $ 1,504,102
       
Liabilities and stockholders’ equity      
Current liabilities      
Accounts payable and accrued liabilities $ 117,683   $ 78,934
Accrued product returns and rebates   132,724     126,192
Contingent consideration, current portion   44,840     30,900
Other current liabilities   20,132     9,082
Total current liabilities   315,379     245,108
Convertible notes, net   379,252     361,751
Contingent consideration, long term   35,637     45,800
Operating lease liabilities, long term   41,298     28,579
Deferred income tax liabilities, net   85,355     35,215
Other liabilities   16,380     42,791
Total liabilities   873,301     759,244
       
Stockholders’ equity      
Common stock, $0.001 par value; 130,000,000 shares authorized; 53,256,094 and 52,868,482 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively   53     53
Additional paid-in capital   434,337     409,332
Accumulated other comprehensive earnings, net of tax   1,539     8,975
Retained earnings   379,922     326,498
Total stockholders’ equity   815,851     744,858
Total liabilities and stockholders’ equity $ 1,689,152   $ 1,504,102


Supernus Pharmaceuticals, Inc.
Condensed Consolidated Statements of Earnings
(in thousands, except share and per share data)

  Three Months Ended
December 31,		   Twelve Months Ended
December 31,
    2021       2020       2021       2020  
       
Revenues              
Net product sales $ 154,963     $ 140,743     $ 567,504     $ 509,350  
Royalty revenue   4,087       2,814       12,271       11,047  
Total revenues   159,050       143,557       579,775       520,397  
               
Costs and expenses              
Cost of goods sold(a)   16,994       18,533       75,061       52,459  
Research and development   21,078       17,938       90,467       75,961  
Selling, general and administrative   101,735       56,500       304,759       200,677  
Amortization of intangible assets   12,025       5,888       29,989       15,702  
Contingent consideration (gain) expense   1,120       1,700       (6,530 )     1,900  
Total costs and expenses   152,952       100,559       493,746       346,699  
               
Operating earnings   6,098       42,998       86,029       173,698  
               
Other (expense) income              
Interest expense   (5,934 )     (6,096 )     (23,423 )     (23,754 )
Interest and other income, net   1,887       2,791       10,569       18,704  
Total other expense   (4,047 )     (3,305 )     (12,854 )     (5,050 )
               
Earnings before income taxes   2,051       39,693       73,175       168,648  
               
Income tax expense   (391 )     8,925       19,751       41,698  
Net earnings $ 2,442     $ 30,768     $ 53,424     $ 126,950  
               
Earnings per share              
Basic $ 0.05     $ 0.58     $ 1.01     $ 2.41  
Diluted $ 0.04     $ 0.57     $ 0.98     $ 2.36  
               
Weighted-average shares outstanding              
Basic   53,235,082       52,708,643       53,099,330       52,615,269  
Diluted   54,528,826       53,747,118       54,356,744       53,689,743  

(a) Excludes amortization of acquired intangible assets

CONTACTS:

Jack A. Khattar, President and CEO
Timothy C. Dec, Senior Vice President and CFO
Supernus Pharmaceuticals, Inc.
Tel: (301) 838-2591

or

INVESTOR CONTACT:
Peter Vozzo
ICR Westwicke
Office: (443) 213-0505
Mobile: (443) 377-4767
Email: peter.vozzo@westwicke.com


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Source: Supernus Pharmaceuticals, Inc.