Supernus Pharmaceuticals (SUPN) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 743.89K
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.63
• Revenue Growth: 5.55%
• EPS Growth: 1145.24%
• Country: US
• Employees: 674
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.91
• Shares Outstanding: 56,073,090
• 10 Day Avg. Volume: 740,743
• 30 Day Avg. Volume: 743,889
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: $42.50
• Price Target Upside: -7.69% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $52.00 ▲(12.95% Upside)

Supernus Pharmaceuticals demonstrates strong financial health and operational efficiency, supported by robust earnings call highlights. However, technical indicators suggest overbought conditions, and the valuation appears stretched. The company's future growth potential, driven by strategic acquisitions and product launches, is a significant positive factor.

Positive Factors

Strong Cash Flow Management

Supernus Pharmaceuticals' strong cash generation ability, as evidenced by significant free cash flow growth, ensures it can effectively fund operations and strategic initiatives, enhancing long-term financial stability.

Successful Product Launches

The successful launch of ONAPGO demonstrates Supernus's ability to innovate and expand its product portfolio, which is crucial for sustaining competitive advantage and driving future revenue growth.

Strategic Acquisition

The acquisition of Sage Therapeutics and its product ZURZUVAE strengthens Supernus's market position and diversifies its revenue streams, supporting long-term growth and resilience in the CNS disease treatment market.

Negative Factors

Decline in Legacy Product Sales

The decline in legacy product sales indicates potential challenges in maintaining revenue from established products, which could pressure overall sales growth if not offset by new product success.

Increased Operating Expenses

Rising operating expenses, driven by product launches and acquisitions, may strain profitability if revenue growth does not sufficiently offset these costs, impacting long-term financial performance.

Projected Operating Loss for 2025

The anticipated operating loss for 2025 highlights financial challenges related to recent acquisitions, which could impact short-term profitability and necessitate careful cost management to ensure long-term viability.

Supernus Pharmaceuticals Business Overview & Revenue Model

Company Description

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system (CNS) diseases in the United States. Its commercial products are Trokendi XR, an extended release topiramate product indicated for the treatment of epilepsy, as well as for the prophylaxis of migraine headache; and Oxtellar XR, an extended release oxcarbazepine for the monotherapy treatment of partial onset epilepsy seizures in adults and children between 6 to 17 years of age. The company's commercial products also comprise Qelbree, a selective norepinephrine reuptake inhibitor indicated for the treatment of attention-deficit hyperactivity disorder (ADHD) in pediatric patients 6 to 17 years of age; APOKYN for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO for treating levodopa/carbidopa in patients with PD experiencing off episodes; MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults; GOCOVRI for the treatment of dyskinesia in patients with PD; and Osmolex ER for the treatment of Parkinson's disease and drug-induced extrapyramidal reaction in adult patients. In addition, its product candidates include Qelbree (SPN-812), which has completed Phase III clinical trials that is used for the treatment of ADHD; SPN-830, a late-stage drug/device combination product candidate for the prevention of off episodes in PD patients; SPN-817, a novel product candidate in Phase I clinical trials for the treatment of severe epilepsy; SPN-820, a product candidate in Phase II clinical trials for treating resistant depression; and SPN-443 and SPN-446, which are in preclinical stage for treating CNS. The company markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. The company was incorporated in 2005 and is headquartered in Rockville, Maryland.

How the Company Makes Money

Supernus Pharmaceuticals generates revenue primarily through the sale of its prescription medications. The company's key revenue streams include sales of its core products, particularly Oxtellar XR and Trokendi XR, which are marketed to healthcare providers and patients. Additionally, Supernus engages in strategic partnerships and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties on sales of co-developed products. The company's focus on expanding its product portfolio through research and development initiatives, along with potential new product launches, also contributes to its revenue generation. Supernus's earnings are further supported by its ability to navigate the complex regulatory environment for drug approvals, ensuring that its products reach the market effectively.

Supernus Pharmaceuticals Financial Statement Overview

Summary

Supernus Pharmaceuticals exhibits a solid financial foundation with strong gross margins and low leverage. While revenue growth has been challenging, the company maintains operational efficiency and robust cash flow management. The balance sheet is strong, with low debt levels and a stable equity position. Overall, the financial health of the company is sound, though attention to revenue growth is necessary for future expansion.

Income Statement

Supernus Pharmaceuticals has shown a mixed performance in its income statement. The company has a strong gross profit margin of 82.3% TTM, indicating efficient cost management. However, the net profit margin has decreased to 9.7% TTM from 11.2% in the previous year, reflecting pressure on profitability. Revenue growth has been negative at -0.43% TTM, signaling potential challenges in expanding sales. Despite these challenges, the EBIT and EBITDA margins remain healthy at 12.8% and 24.9% TTM, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of Supernus Pharmaceuticals is robust with a low debt-to-equity ratio of 0.03 TTM, indicating low leverage and financial stability. The return on equity is modest at 6.2% TTM, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at a healthy level, reflecting a strong capital structure. Overall, the company maintains a stable financial position with manageable debt levels.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 13.8% growth in free cash flow TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.65 TTM, indicating efficient conversion of income into cash. The free cash flow to net income ratio is nearly 1, demonstrating strong cash flow relative to earnings. These metrics suggest that the company is effectively managing its cash resources.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	665.13M	661.82M	607.52M	667.24M	579.77M	520.40M
Gross Profit	547.45M	583.91M	523.74M	580.02M	504.71M	467.94M
EBITDA	166.03M	178.28M	90.04M	153.44M	129.19M	212.40M
Net Income	64.50M	73.86M	1.32M	60.71M	53.42M	126.95M
Balance Sheet
Total Assets	1.38B	1.37B	1.28B	1.70B	1.69B	1.50B
Cash, Cash Equivalents and Short-Term Investments	522.60M	453.61M	254.87M	461.33M	339.68M	422.53M
Total Debt	31.77M	34.27M	41.53M	437.97M	420.55M	390.33M
Total Liabilities	318.50M	332.34M	356.16M	816.30M	873.30M	759.24M
Stockholders Equity	1.06B	1.04B	921.52M	886.20M	815.85M	744.86M
Cash Flow
Free Cash Flow	185.87M	171.23M	110.53M	116.41M	125.08M	134.95M
Operating Cash Flow	187.06M	171.95M	111.08M	116.83M	127.13M	138.40M
Investing Cash Flow	-82.94M	-189.87M	268.73M	-216.66M	-81.91M	-34.70M
Financing Cash Flow	-11.50M	12.19M	-397.88M	-10.48M	-130.42M	3.56M

Supernus Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUPN, the sentiment is Positive. The current price of 46.04 is above the 20-day moving average (MA) of 45.26, above the 50-day MA of 40.43, and above the 200-day MA of 35.63, indicating a bullish trend. The MACD of 1.30 indicates Positive momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 66.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUPN.

Supernus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	71 Outperform	$2.58B	40.24	6.38%	―	5.55%	1145.24%
AMPH	69 Neutral	1.29B	10.35	17.78%	―	1.37%	-18.10%
ANIP	66 Neutral	2.10B	-125.91	-2.53%	―	38.68%	-160.14%
AMRX	66 Neutral	3.08B	1,532.81	-3.00%	―	9.81%	0.00%
DVAX	54 Neutral	1.14B	-20.42	-10.67%	―	26.66%	-419.55%
EVO	41 Neutral	1.31B	-7.62	-20.59%	―	-1.03%	8.13%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%