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Actionable news in SUPN: Supernus Pharmaceuticals, Inc.,

Supernus: Strong Growth And M&A Rumors


Supernus reported Q3 earnings and revenues above views.

The company raised the full-year revenue and operating profit guidance.

Pipeline activities on track; SPN-810 potentially the first $1 billion a year drug for Supernus; Migraine indication for Trokendi to expand the addressable market.

Supernus is reportedly considering making a bid for XenoPort or its only commercial product Horizant.

Reiterating my view on Supernus.

Supernus (NASDAQ:SUPN) had another good quarter. Total prescriptions are up in double digits sequentially and the company has raised full-year revenue and operating income guidance. Trokendi's and Oxtellar's commercial success points to the company's great execution abilities and Supernus is actively evaluating acquisition candidates. Rumors surfaced at the beginning of this week that Supernus is about to make a bid for XenoPort (NASDAQ:XNPT) or for its only commercialized product Horizant, which might fit well into the company's neurology franchise although I am not sure what the company would do with XenoPort's pipeline assets. Given XenoPort's slow progress with Horizant, it seems that Supernus might do a much better job, and I am in favor of such a deal if the price is right. The company's pipeline candidates are also progressing nicely and management noted that SPN-810 has the potential to become the company's first $1 billion a year product while SPN-812 also has solid growth potential. Trokendi's label expansion is also another potential growth driver for 2016 and I think that Supernus remains a strong buy considering the growth potential of Trokendi, Oxtellar, and the two pipeline candidates, while the addition of another product or products should also enhance future expectations and lead to more upside for long-term shareholders.

Q3 report shows continued top and bottom line growth

Supernus' Q3 earnings and revenues came in slightly ahead of the analyst consensus. Total prescriptions increased 78% Y/Y and 12.6% Q/Q and the company raised the full-year revenue outlook from a range of $135 million to $140 million to a new range of $143 million to $145 million. The operating income outlook was also raised from $8 million to $10 million to a higher range of $13 million to $15 million. Q3 revenues...