Supernus Pharmaceuticals (NASDAQ:SUPN) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.

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Summary

Supernus Pharmaceuticals reported an increase in cash, cash equivalents, and marketable securities to approximately $384 million, primarily due to cash from operations and commercial milestones, with a strong balance sheet and no debt.

The company reiterated its financial guidance for 2026, expecting total revenues between $840 million and $870 million, with R&D and SG&A expenses ranging from $620 million to $650 million, and non-GAAP operating earnings from $140 million to $170 million.

The company is addressing supply constraints for its product Anapco and expects to improve processing times and patient conversions, while maintaining guidance for Anapco revenue between $45 million and $70 million.

Zerzuve showed a healthy growth rate with an 82% increase in prescriptions year-over-year, and the company is optimistic about its market potential and ongoing DTC campaigns.

Calbri is experiencing growth, particularly in the adult market segment, with a strategy to focus on revenue-generating assets and late-stage acquisitions to continue its growth trajectory.

The company is working on bringing a second supplier online for Anapco by mid-2027, with ongoing discussions with the FDA to ensure a smooth approval process.

Full Transcript

OPERATOR

The company had approximately 384 million in cash, cash equivalents and marketable securities, compared to 309 million as of December 31, 2025. This increase was primarily due to cash generated from operations, the timing of Medicaid payments and the Shionogi related commercial milestones. The Company's balance sheet remained strong with no debt and significant financial flexibility for potential M&A and other growth opportunities. Now turning to guidance for full year 2026, the company reiterates its financial guidance for total revenues, combined R&D and SG&A expenses, and non GAAP operating earnings. As such, we expect total revenues to range from 840 million to 870 million, comprised of commercial product revenues and royalty and licensing revenues. For the full year 2026, we expect combined R and D and SGA expenses to range from $620 million to $650 million. Overall, we expect full year operating earnings in the range of zero to $30 million. And finally, we expect non GAAP operating earnings to range from $140 million to $170 million. Please refer to the earnings press release issued prior to this call that identifies the various ranges of reconciling items between GAAP and non-GAAP. With that, I will now turn the call back over to the operator for Q and A Operator. Thank you. At this time we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Andrew Tsai from Jeffries. Your line is now open.

Andrew Tsai (Equity Analyst)

Hi. Thanks for the updates and thanks for taking my questions. Specifically on Anapco, it's great to see that you have 2,200 start forms now up from 1800 in January. Ultimately, what percentage of those patients or start forms do you think you will ultimately be converted to a paying patient? And can you remind us how many weeks it can take from a start form to a paying patient, how long that could take? Thank you. Got it, thank you. Following up on that, to get to your on Anapco guidance, the high end of 75 million, mathematically you're going to be needing more than 700 patients on therapy. So if I did 22.50% conversion, that would be over 1000 patients potentially on Anapco. So it looks like you can get there. Can you remind us how many patients are still on Anapco today and when could you expect most of those kind of hypothetical patients to get on drug? Should it be within the next three to six months, then? Thank you.

OPERATOR

Thank you. Our next question, our next question comes from the line of David Amselem from Piper Sandler. Your line is open.

Alex

Hi, yes, this is Alex on for David. Thanks for taking our questions. First one, sort of jumping off of the last question regarding the guidance range for Anapco and the assumptions to get to the top end of the range and the number of patients, can you maybe speak to what you're seeing in terms of patient persistence for patients who are getting drugs? And then secondly, regarding Zulresso, can you maybe speak to how you're thinking about the growth Runway of the product? Thank you.

OPERATOR

Thank you. Our next question comes from the line of Kristin Kluska.

Kristin Kluska

Kristin Kluska from Cantor Fitzgerald. I apologize. It's okay. Yeah. Hi everyone. Congrats on a great start to calendar year 2026 here just on Anapco. As we think about the mid 2027 approval. How are you working with your partners out in Europe about thinking about what the demand might look like in 2027 onwards to be able to work, meet that criteria? And then when we think about the US right now in terms of the patients that are getting on therapy. Given that these capacity strengths are still there to an extent. Are you seeing that physicians are prioritizing certain patients over another, just knowing that they might not be able to get their hands on enough supply for all of the patients they'd want to treat? Okay, thanks. And then on Zulresso, how are you seeing adoption in line with the prescribing? Meaning like are you seeing some patients are coming back for second cycle of it? What percent of patients are completing the 14 day treatment course? And I guess I'm just. What I'm trying to allude to is like how to the recommendations. Are you seeing this real time? Thanks again.

OPERATOR

Thank you. And our next question comes from the line of Vishwesh Shah from TD Cohen. Your line is now open.

Vishwesh Shah

Thanks. And then on. Thanks so much for all the details. And then on apco, what dynamics are you seeing between patients opting for omapco vs vilev? So what kind of competitive dynamics are you seeing there?

OPERATOR

Thank you. Our next question comes from. Annabel Samani from Stifle. Your line is now open.

Jack

Hi, this is Jack on for Annabelle. Thanks for taking our questions and congrats on the quarter. So on Zerzuve, I know that there are the active DTC campaign running right now. Clearly the product has been doing very well overall. But do you have any additional insights or color on feedback from that and how patients are responding to the DTC campaign compared to maybe a more direct physician recommendation? very helpful. And then just quickly, given your success with that collaboration, is your current MA appetite kind of more focused on maybe something similar like a revenue generating partnership or more on acquisition of wholly owned late stage assets? Are there any shifting preferences there? Are you still kind of agnostic to any option?

OPERATOR

Thank you. And our next question comes from Shi Fong from Bank of America. Your line is now open.

Shi Fong

Hey guys, thanks for taking our question. I want to follow up on bringing the second supplier online for Onapco. Did you get a chance to meet with the FDA to get any sort of feedback or alignment on the path of getting the approval? Did any of the feedback help inform the timeline guidance you provided today? What I'm wondering is whether there's any accelerated path like rolling submission relative to your third quarter filing guidance. And I guess on the other side of the things and on approval timeline you guided to by mid-2027. I recall on the last earnings call you talk about review timeline could be arranged somewhere in the six to nine month range. So I'm curious if you have any better clarity on the review timeline now, if you've already met with the FDA and have a follow up after that? Great. And my follow up is obviously the second supplier already has experience applying the product in Europe, but given the sometimes idiosyncratic nature of the agency handing out manufacturing issue citations. And a second more broadly, can you talk about the confidence level of timely clearance of the second supplier?

OPERATOR

Thank you. So I am showing no further questions at this time. I would now like to turn it back over to Peter Vaso.

Peter Vaso

Thank you for joining us on this call. Today, 2026 is off to a great start. We have positive momentum across our business and we continue to generate strong cash flows beyond the strength of our growth products and through the efficiency of our operations. We look forward to continued strong growth and execution on our growth products throughout the year. Thanks again for joining us this afternoon. We look forward to providing you with updates throughout the year.

OPERATOR

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

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