Supernus Pharmaceuticals Announces Fourth Quarter And Full Year 2014 Results

• Cash flow positive for the fourth quarter, $5.9 million, and for the full year, $3.2 million.
   
• Net income for the fourth quarter, $4.4 million, and for the full year, $19.9 million.
   
• Total revenue for the fourth quarter, $30.8 million, exceeded guidance by $4 million, and includes $30.5 million in net product sales.
   
• Total revenue for full year 2014 was $122.0 million, including $89.6 million in net product sales.
   
• Fourth quarter product prescriptions increased to 70,739, representing a 22% increase over the third quarter of 2014.
   
• 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.

ROCKVILLE, Md., March 10, 2015 (GLOBE NEWSWIRE) -- Supernus Pharmaceuticals, Inc. (Nasdaq:SUPN), a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, today reported financial results for the fourth quarter and full year 2014 and associated company developments.

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 $30 million for the fourth quarter substantially exceeded our guidance of $24 million to $26 million. We are extremely proud of these accomplishments and our employees' commitment to delivering on our promises," said Jack Khattar, President and CEO of Supernus Pharmaceuticals.

"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 Mr. Khattar.

Revenue and Gross Margin

Total revenue for the fourth quarter and full year 2014 was $30.8 million and $122.0 million, respectively. Full year results include $89.6 million in net product revenue and $30.0 million in royalty monetization revenue.

Net product revenue for the fourth quarter 2014 consisted of $22.9 million for Trokendi XR and $7.6 million for Oxtellar XR and, for the full year 2014, $64.9 million for Trokendi XR and $24.7 million for Oxtellar XR.

Licensing revenue for the full year 2014 was approximately $2.5 million, primarily consisting of a $2.0 million milestone payment triggered by the launch of Orenitram^® by our partner, United Therapeutics Corporation.

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 $18.0 million and $72.5 million, respectively, as compared to $15.2 million and $55.6 million in the respective 2013 periods. The higher expense reflected expansion of the sales force in early 2014, coupled with increased promotional and marketing activities to support the expanded sales force and our products Oxtellar XR and Trokendi XR.

Research and development expenses during the fourth quarter and full year 2014 were $5.8 million and $19.6 million, respectively, as compared to $5.4 million and $17.2 million in the respective 2013 periods.  This increase is due to preclinical and clinical trials and manufacturing scale up for both of our lead product candidates, SPN-810 and SPN-812.