Supernus Announces Fourth Quarter and Full Year 2013 Results
*Product prescriptions filled at the pharmacy level in the fourth quarter
of 2013 increased by 12,527, or more than 100%, as compared to third
*Full year net revenue for Oxtellar XR, $11.0 million, exceeded guidance of
*Operating loss for 2013 was approximately $61.9 million.
*Full year cash burn of approximately $67 million better than guidance of
$70 million – $75 million.
ROCKVILLE, Md., March 12, 2014 (GLOBE NEWSWIRE) -- Supernus Pharmaceuticals,
Inc. (Nasdaq:SUPN), a specialty pharmaceutical company focused on developing
and commercializing products for the treatment of central nervous system
diseases, today reported financial results for the fourth quarter and full
year 2013 and discussed key company developments. "We are very pleased with
the continued progress of our business, as evidenced by very strong quarter to
quarter prescription growth. Prescriptions filled at the pharmacy level in the
fourth quarter of 2013 increased by 12,527, or more than 100%, as compared to
the third quarter," said Jack Khattar, President and CEO of Supernus
"Physicians continue to recognize the quality-of-life and compliance benefits
of Oxtellar XR and Trokendi XR," commented Mr. Khattar. "We continue to see
that our products are very promotion sensitive, with increasing conversion
share strongly correlated with call frequency. As a result, we plan to expand
our sales force, from 110 representatives at year-end 2013, to more than 150
representatives by mid-2014."
Over 2,200 target physicians have prescribed Oxtellar XR since its launch in
February 2013, a substantial increase over the 1,600 target physicians as of
the end of the third quarter. Over 2,200 target physicians have prescribed
Trokendi XR since its launch in August 2013.
Both products have strong managed care coverage. For Oxtellar XR, 146.5
million lives are covered (127.2 million commercial; 19.7 million Medicaid),
while for Trokendi XR, 128.8 million lives are covered (113.5 million
commercial; 15.3 million Medicaid).
Our sales force continues to be successful in increasing the number of calls
on target physicians, delivering over 10,000 calls in January 2014, a record
number for the Company.
Revenue and Gross Margin
Net product revenue for the fourth quarter and full year 2013 were $10.3
million and $11.6 million, respectively.
For the fourth quarter of 2013, Oxtellar XR revenue is reported based on
contemporaneous shipments to wholesalers, rather than on a 'quarter lag'
basis, based on prescriptions filled at the pharmacy level. As a result,
reported revenue for Oxtellar XR for the fourth quarter includes prescriptions
filled at the pharmacy level during the third and fourth quarters, as well as
product in the wholesaler pipeline as of December 31, 2013.
As reported by IMS-National Prescription Audit, prescriptions for Oxtellar XR
during the fourth quarter of 2013 totaled 9,866, representing a 37% increase
over the 7,217 total prescriptions filled during the third quarter. This
growth was achieved while simultaneously launching Trokendi XR, at which time
the sales force was focused primarily on Trokendi XR.
As compared to the third quarter, Trokendi XR prescriptions filled at the
pharmacy level during the fourth quarter of 2013, the first full quarter of
commercialization, grew by approximately 10,000 prescriptions, (to 11,244), as
reported by IMS. Revenue generated by prescriptions filled at the pharmacy
level during the fourth quarter will be reported in the first quarter of 2014.
Gross margins for fourth quarter and full-year 2013 were 89.6% and 90.4%,
Selling, general and administrative expenses for the fourth quarter and full
year 2013 were $15.2 million and $55.6 million, respectively, as compared to
$8.7 million and $20.1 million in 2012. Year over year growth in cost is
primarily attributable to launch and commercialization activities for Trokendi
XR and Oxtellar XR.
Research and development expenses during the fourth quarter and full-year 2013
were $5.4 million and $17.2 million respectively, as compared to $5.2 million
and $23.5 million in 2012. The year over year decrease was due in large part
to the completion of the Company's Phase IIb study for SPN-810 in 2012.
Net Income and Earnings Per Share
The reported net loss for the fourth quarter and full year 2013 were $22.4
million and $92.3 million, respectively, as compared to $13.5 million and
$46.3 million in 2012. The higher loss in 2013 reflects increased expenses
associated with the launch and commercialization activities of Oxtellar XR and
The net loss for the fourth quarter and full year 2013 was $0.65 and $2.90 per
share respectively, as compared to $0.51 and $2.72 per share in 2012. The
weighted average common shares outstanding in the fourth quarter and year-end
2013 were approximately 34.6 million and 31.8 million respectively, as
compared to 26.6 million and 17.4 million in 2012.
As of December 31, 2013, $40.5 million of the Company's six year notes,
bearing interest at 7.5% per annum, have been converted to common stock.
Excluding non-cash charges for changes in fair value of derivative liabilities
($13.4 million) and loss on extinguishment of debt consequent to conversion of
the Company's notes, ($9.6 million), non-GAAP net loss for full year 2013 was
Our product candidates currently in development, SPN-810 for impulsive
aggression in patients with ADHD and SPN-812 for ADHD, are progressing on
schedule. SPN-810 is being developed in close cooperation with the FDA, since
it would be a first-in-class product for an indication with a significant
unmet clinical need. We have initiated formulation scale-up/technology
transfer to a commercial manufacturing facility. SPN-810 is scheduled to enter
Phase III development in 2014, with patient dosing starting in 2015. SPN-812
formulation development is progressing, with an extended release formulation
to be selected during 2014.
Capital Resources and Financial Guidance
As of December 31, 2013, the Company had $90.9 million in cash, cash
equivalents, marketable securities, and long-term investments compared to
approximately $88.5 million as of December 31, 2012. We believe these funds
are sufficient to finance the Company through the end of 2014, by which time
the Company projects to be cash flow break even. Cash burn for full year 2014
is forecast to range from $35 million to $45 million, with a year-end cash
balance projected to range from $35 million to $45 million.
During 2014, we project that revenue reporting for Trokendi XR will transition
from prescriptions filled at the pharmacy level on a 'quarter lag' basis to
contemporaneous revenue recognition based on shipments to wholesalers.
Assuming this occurs, our reported total revenue for calendar year 2014 is
expected to range from $75 million to $85 million.
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 9:00am EDT, on Thursday, March 13, 2014.
An accompanying webcast will also 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
Conference dial-in: 877-288-1043
International dial-in: 970-315-0267
Conference ID: 54977145
Conference Call Name: Supernus Pharmaceuticals 4Q 2013 Earnings Conference
Following the live call, a replay will be available on the Company's website,
www.supernus.com, under "Investor Info".
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, or CNS, diseases. The Company has two marketed products for
epilepsy, Oxtellar XR® (extended-release oxcarbazepine) and Trokendi XR™
(extended-release topiramate). The Company is also developing several product
candidates in psychiatry to address large market opportunities in ADHD,
including ADHD patients with impulsive aggression. These product candidates
include SPN-810 for impulsive aggression in ADHD and SPN-812 for 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
achieve 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
revenues; 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 SEC filings 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
December 31, 2013 December 31, 2012
Cash, cash equivalents and marketable $ 82,191 $ 88,508
Accounts receivable, net 5,054 11
Inventories 7,152 1,152
Other current assets 2,764 1,791
Total Current Assets 97,161 91,462
Property and equipment, net 2,554 1,421
Long term investments 8,756 --
Deferred financing costs 1,005 89
Other long-term assets 1,519 1,017
Total Assets $ 110,995 $ 93,989
Accounts payable and accrued expenses $ 18,314 $ 10,666
Deferred product revenue 7,882 --
Deferred licensing revenue 204 508
Secured notes payable, current -- 11,809
Total Current Liabilities 26,400 22,983
Deferred licensing revenue, net of current 1,417 309
Convertible notes, net of discount 34,393 --
Secured notes payable, long-term -- 11,088
Other non-current liabilities 2,677 1,788
Derivative liabilities 12,644 251
Total Liabilities 77,531 36,419
Total Stockholders' Equity 33,464 57,570
Total Liabilities & Stockholders Equity $ 110,995 $ 93,989
Supernus Pharmaceuticals, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months ended December Year ended December 31,
2013 2012 2013 2012
Net product sales $10,268 $-- $11,552 $--
Licensing revenue 66 1,089 467 1,480
Total revenue 10,334 1,089 12,019 1,480
Costs and expenses
Cost of product sales 1,066 -- 1,104 --
Research and development 5,402 5,150 17,245 23,517
Selling, general and 15,223 8,682 55,590 20,132
Total costs and expenses 21,691 13,832 73,939 43,649
Operating loss (11,357) (12,743) (61,920) (42,169)
Other income (expense)
Interest income and other 108 (19) 400 170
income (expense), net
Interest expense (2,107) (805) (7,849) (3,575)
Changes in fair value of (662) 55 (13,354) (710)
Loss on extinguishment of (8,388) -- (9,550) --
Total other (expense) (11,049) (769) (30,353) (4,115)
Net loss (22,406) (13,512) (92,273) (46,284)
Cumulative dividends on
Series A convertible -- -- -- (1,143)
Net loss attributable to $(22,406) $(13,512) $(92,273) $(47,427)
Loss per common share:
Basic and diluted $(0.65) $(0.51) $(2.90) $(2.72)
Weighted-average number of
Basic and diluted 34,647,803 26,626,949 31,848,299 17,440,910
Supernus Pharmaceuticals, Inc.
Reconciliation of Non-GAAP Net Loss
Three Months Year
ended December 31, ended December 31,
Net loss - GAAP $(22,406) $(92,273)
Changes in fair value of derivative (662) (13,354)
Loss on extinguishment of debt (8,388) (9,550)
Adjusted Net Loss - non-GAAP $(13,356) $(69,369)
CONTACT: Jack A. Khattar, President and CEO
Gregory S. Patrick, Vice President and CFO
Supernus Pharmaceuticals, Inc.
Supernus Pharmaceuticals, Inc.
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