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Edited Transcript of SUPN earnings conference call or presentation 6-May-20 1:00pm GMT

Q1 2020 Supernus Pharmaceuticals Inc Earnings Call

ROCKVILLE May 15, 2020 (Thomson StreetEvents) -- Edited Transcript of Supernus Pharmaceuticals Inc earnings conference call or presentation Wednesday, May 6, 2020 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Gregory S. Patrick

Supernus Pharmaceuticals, Inc. - Senior VP & CFO

* Jack A. Khattar

Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director

* Peter Vozzo

Westwicke Partners, LLC - MD

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Conference Call Participants

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* David A. Amsellem

Piper Sandler & Co., Research Division - MD & Senior Research Analyst

* David Michael Steinberg

Jefferies LLC, Research Division - Specialty Pharma Analyst & Equity Analyst

* Kenneth Charles Cacciatore

Cowen and Company, LLC, Research Division - MD & Senior Research Analyst

* Nicholas Carl Rubino

Stifel, Nicolaus & Company, Incorporated, Research Division - Associate

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Presentation

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Operator [1]

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Good morning, and welcome to the Supernus Pharmaceuticals' First Quarter 2020 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Peter Vozzo of Westwicke, Investor Relations representative for Supernus Pharmaceuticals. You may begin.

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Peter Vozzo, Westwicke Partners, LLC - MD [2]

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Thank you, Alicia. Good morning, everyone, and thank you for joining us today for Supernus Pharmaceuticals' First Quarter 2020 Financial Results Conference Call. Yesterday, after the close of the market, the company issued a press release announcing these results. On the call with me today are Supernus' Chief Executive Officer, Jack Khattar, and Chief Financial Officer, Greg Patrick. Today's call is being made available via the Investor Relations section of the company's website at ir.supernus.com. Following remarks by management, we will open the call to questions.

During the course of this call, management may make certain forward-looking statements regarding future events and the company's future performance. These forward-looking statements reflect Supernus' current perspective on existing trends and information. Any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, including those noted in the Risk Factors section on the company's 2019 annual report on Form 10-K. Actual results may differ materially from those projected in these forward-looking statements.

For the benefit of those of you who may be listening to the replay, this call is being held and recorded on May 6, 2020, at approximately 9:00 a.m. Eastern Time. Since then, the company may have made additional announcements related to the topics discussed. Please reference the company's most recent press releases and current filings with the SEC. Supernus declines any obligation to update these forward-looking statements except as required by applicable securities laws. I will now turn the call over to Jack.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [3]

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Thank you, Peter. Good morning, everyone, and thanks for taking the time to join us as we discuss our 2020 first quarter results and recent developments.

Before I discuss our first quarter results, I want to take a moment to highlight the two corporate development transactions we announced over the last couple of weeks. These transactions meet many, if not all, of the strategic criteria and priorities we have for an ideal corporate deal. As you might recall, our priorities were to get commercial assets that could diversify our revenue and earnings base, then followed by a late stage asset that could be launched in time and could bring future growth to help us with the transition once Trokendi XR goes generic.

We also had to replenish our pipeline after we launched SPN-812 and the setback we had with SPN-810. And finally, we wanted to accomplish all this with a transaction that can be done with reasonable and fair terms that don't deplete or weaken our balance sheet. We are very pleased that we were able to accomplish all this with the acquisition of the CNS portfolio of US WorldMeds that is targeted to close in this quarter, and the Navitor partnership.

First, starting with the acquisition of the CNS portfolio of US WorldMeds. This transaction brings to Supernus a robust portfolio in neurology that is synergistic with our current portfolio, including three established and marketed products and a product candidate in late stage development. In 2019, these products generated net sales and operating earnings of approximately $150 million and $45 million respectively. The deal structure consists of an upfront payment of $300 million and up to $230 million in regulatory and commercial milestones that are aligned with the future upside of the business. This upside is primarily driven by the Apomorphine Infusion Pump, a late stage product candidate for which an NDA submission is expected in the second half of this year and a launch, if approved by the FDA, is targeted for the second half of 2021.

In addition to significant revenues and earnings, the acquired portfolio will bring to us a high-quality salesforce of approximately 46 representatives who primarily target movement disorder specialists with selected coverage of neurologists. This group will augment the approximately 200 sales personnel currently at Supernus and the future sales force we will be building to support the launch of SPN-812 is psychiatry.

Also, we will be acquiring important commercial capabilities in the orphan drug and specialty pharmacy areas, augmenting our current capabilities and resulting in a strong and well-rounded commercial platform with full patient support capabilities.

The second opportunity involves the joint development and option agreement with Navitor Pharmaceuticals for its mTORC1 activator, NV-5138 or SPN-820. NV-5138 is a first in class orally active small molecule that directly activates mTORC1 which is often suppressed in people suffering from depression. Phase I data demonstrated early proof of concept in which a single dose of NV-5138 showed rapid and sustained improvement in core symptoms of depressions with favorable safety and tolerability in patients with treatment resistant depression. This oral agent can have a highly differentiated clinical profile characterized by a potentially rapid onset of action and favorable tolerability.

Regarding SPN-812, we continue to prepare for the commercial launch of SPN-812 at the end of 2020. The company remains engaged with the FDA regarding its NDA which has a PDUFA target action date of November 8, 2020. The Phase III program with SPN-812 in adult patients reached approximately 75% of targeted enrollment before additional enrollment was put on hold in March due to the impact of COVID-19. We are employing virtual efforts to ensure that currently enrolled subjects can progress to completion of treatment. This trial was initially ahead of schedule prior to the COVID-19 outbreak with potential data in the second half of this year. Depending on when the company can restart enrollment and complete the study, data from the trial may be pushed out beyond the end of this year. This is an important trial that will potentially help us expand the use of SPN-812 if approved by the FDA in the adult market.

Regarding the rest of our pipeline, we have been able to add some very exciting mid to late stage programs through the recently announced business development transactions. These transactions as mentioned earlier augmented our pipeline with SPN-820 from Navitor Partnership and the Apomorphine Infusion Pump from US WorldMeds transaction. That allowed us to conduct a reassessment of our R&D portfolio and reset our priorities to focus our resources on projects with the best return on investment. As a result, and given other factors including the estimated timing of the potential launch of SPN-604 and the required investment, the company decided to terminate the development of SPN-604 for the treatment of bipolar disorder.

Furthermore, with the previously mentioned corporate transactions, Supernus will have new capabilities in biologics and medical device development in addition to its expertise in small molecule drug development and a pipeline that is well diversified. The late stage pipeline will include SNP-812 and the Apomorphine Infusion Pump and the early to mid-stage pipeline will include SPN-817 for epilepsy, 820 for treatment resistant depression, and potential new additional indications for MYOBLOC in other neurological disorders.

Moving onto the current commercial portfolio, total prescriptions for

Trokendi XR and Oxtellar XR for first quarter of 2020, as reported by IQVF, reached 203,404 prescriptions, which is about 2% increase over the first quarter of 2019. Oxtellar XR showed a 12% growth compared to first quarter last year while Trokendi XR was essentially flat. Overall, Oxtellar XR and Trokendi XR prescriptions in the first quarter started with softness in January and February which was in line with our expectation for the decline you typically see in the first quarter due to the effect of high deductible plans. However, this softness was partially offset in March where prescriptions grew by 17% for Oxtellar XR, and 13% for Trokendi XR compared to prescriptions in February, reflecting the uptake in prescriptions due to the COVID-19 impact.

In response to the COVID-19 pandemic and the stay at home recommendations of public health officials and government agencies, our salesforce and medical affairs teams have shifted from face to face interactions with healthcare professionals to virtual field calls and meetings. This allowed us to continue to service the needs of physicians, patients, and customers during this critical time while protecting the health of our employees and their families. The supply of Trokendi XR and Oxtellar XR has not been impacted and the company has adequate inventory on hand for both products to continue to be available to patients.

Depending on the COVID-19 situation and how long it lasts, we expect to see a negative impact on prescriptions stating with the month of April and continuing at least through the second quarter. As we announced last night in first quarter 2020 results press release, given the uncertainty caused by the COVID-19 pandemic, the anticipated second quarter acquisition of the CNS products from US WorldMeds and the impact of the partnership with Navitor Pharmaceuticals, the company is suspending its previously issued full year 2020 financial guidance. The company expects to update and reinstate full year 2020 guidance no later than the announcement of second quarter 2020 financial results in August.

I will now turn the call over to Greg, who will provide more details on our fourth quarter and full-year financial performance.

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Gregory S. Patrick, Supernus Pharmaceuticals, Inc. - Senior VP & CFO [4]

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Thank you, Jack, and good morning, everyone. As I review our first quarter results, please refer to yesterday's press release. Total revenue for first quarter 2020 was $95 million, an increase of 11% over $85 million in the same quarter last year. Total revenue was comprised of net product sales of $93 million and royalty revenue of $2 million as compared to net product sales of $83 million and royalty revenue of $2 million in the first quarter of 2019.

As previously disclosed, wholesalers, distributors and pharmacies decreased their inventory levels of our products in the first quarter of 2019. At that time, we estimated that this inventory drawdown caused net product sales in the first quarter of 2019 to be approximately $10 million lower than had inventory levels remained constant. This phenomenon favorably impacted the year-over-year net product sales comparison for the first quarter of 2020 as compared to the first quarter of 2019.

For the first quarter of 2020, net product sales for Trokendi XR were $69 million compared to $64 million in the prior year period. Net product sales for Oxtellar XR were $24 million compared to $19 million in the prior year period.

Turning now to expenses, research and development expenses were $19 million for first quarter of 2020 or $4 million higher than $15 million in the prior year period. This increase was primarily driven by enrollment in the SPN-812 Phase III program for adults which was initiated in late 2019.

SG&A expenses for the first quarter of 2020 were $43 million, compared to $41 million in the prior year period. The increase in SG&A expenses is primarily due to prelaunch activities associated with SPN-812, partially offset by a decrease in marketing expenses for commercial products and a decrease in employee-related expenses

Operating expenses for the first quarter of 2020 were $29 million compared to $25 million in 2019. The increase was primarily due to higher net product sales partially offset by modestly higher operating expenses.

Net earnings were $22 million for the first quarter of 2020 or $0.40 per diluted share, an 18% increase on a diluted share basis as compared to $18 million or $0.34 per diluted share for the first quarter of 2019.

As of March 31, 2020, the company had $396 million in cash, cash equivalents, marketable securities and long-term marketable securities, compared to $939 million as of December 31, 2019. This decrease was primarily attributable to unrealized losses on long-term marketable securities resulting from market volatility in the first quarter of 2020.

I will now turn the call back to the operator for questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Ken Cacciatore of Cowen and Company.

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Kenneth Charles Cacciatore, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [2]

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Good morning, guys. Just had a couple questions actually about the newly acquired or soon to be acquired assets. So first on APOKYN, just wondering, it's been a very durable product and doing very well over the years. As you look at it and analyze how US WorldMeds has been marketing it, is there anything that you can talk about that maybe you would do differently? Is there an opportunity here to inflect the growth? And if so, why? And then on your pipeline program, the Apomorphine pump, can you just talk about the end stage of Parkinson's, what are the options for patients? It's my understanding it's either deep brain stimulation or Duopa. I wonder if you can describe both. And my question is a little bit more simple, why wouldn't a patient want to try this along the way? Could you just kind of frame for us the opportunity? And maybe within that, why Apomorphine as opposed to continuous use levodopa? Thank you.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [3]

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Hi, Ken. Regarding the APOKYN franchise, the franchise has been around for a while, it's been a mainstay in the therapy for Parkinson's disease. Apomorphine as a molecule actually is a very good drug as far as treating off episodes. And US WorldMeds has done a phenomenal job in driving the franchise actually way back where it used to be a single digit product as far as sales are concerned and bring it to the level that it is at today. Really phenomenal job building the business with somewhat constrained resources and so forth. And therefore, with our portfolio and hopefully with additional resources that we could potentially put behind this product, we will look forward to potentially expanding the use of the product. There is a lot of what we call white space out there meaning a lot of patients who do experience off episodes and really are not in the market for treatments, either because the knowledge, the awareness, the experience with this molecule hasn't really matured to the point it could with a product like this. So we see a lot of areas of potential growth here. As I mentioned also, the salesforce is about 46 sales representatives. Whether there is an opportunity to expand that a little bit and add more firepower behind the product, that is a potential as well. So you can definitely bet on the fact that we are looking at every potential aspect here where we can grow these businesses, build on them and also take advantage of the synergies between the Parkinson's portfolio and the neurology portfolio that we have in epilepsy, in migraine, and so forth. So certainly, we will be looking for many ways to really grow the franchise. And then in addition to that, of course, we are very excited about the pump because that even augments the franchise and expands the Apomorphine franchise so to speak because the current options out there for these patients are fairly limited. As you mentioned, the deep brain stimulation and then the invasive surgery with the gastro tube where you put in a gel of levodopa is not something that everybody is going to rush to. There is room for all these products to be used for the appropriate patient profile, but we would certainly look forward to be able to position the pump potentially to be a treatment to be considered before you consider invasive surgery or other invasive procedures. So clearly, we think there is a lot of space there that we can occupy with a very nice product such as the Apomorphine infusion pump to really give these patients a very viable and feasible treatment option. And then finally, as far as Apomorphine, I mean as I mentioned earlier, it is really a very effective molecule. You might recall when we announced the transaction, we went through some clinical data actually on the Apomorphine pen as well as the pump. The efficacy is really -- nothing really comes close to it. Although a lot of those data points are gathered from different studies and so forth, the reduction in the UPRDS scale which is a very common scale in measuring mobility and the activity of Parkinson's patients and so forth, the improvement with the Apomorphine molecule, with the pen as well as very exciting data on the pump from its Phase III, is really second to none. And that's what really excites us about not just the existing programs or products, but also the fact that molecule itself is a fairly powerful treatment for Parkinson's.

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Operator [4]

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Your next question comes from the line of David Steinberg of Jefferies.

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David Michael Steinberg, Jefferies LLC, Research Division - Specialty Pharma Analyst & Equity Analyst [5]

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Thanks, and good morning. A couple of questions on the pending launch of 812. A lot of the physician groups during the COVID crisis have a lot less patients to see and therefore more time to interact virtually with sales reps and company managements. Just curious whether this affords you an opportunity to engage in more extensive prelaunch activities. And then related to that, any updates on your payer research on 812? And if so, what are some of the highlights? Thanks.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [6]

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Regarding the unfortunate situation we are living in, you're absolutely right. Actually, all the data points to the fact that many physicians because they are also not going and don't have a very active practice these days, they do have a little bit more time and we've been able to engage with them through prelaunch activities education. So we've been very, very active in the digital space not only to educate physicians about the molecule, the program, our data and so forth, but we also have a major outreach program as well as a website for consumers, for patients themselves. Education, a lot of educational materials that we have on our website. More to ADHD which is really educating parents, caretakers, physicians about the disease and about what really to look for in a good treatment and so forth, preparing for the launch of SPN-812. So we had these plans in place before the COVID situation, but as you pointed out, given the COVID situation it really even made them more important and we were able to take advantage of that so to speak in a good way to really reach out to all these constituencies that will be very important for our launch. As far as the payer research, that was ongoing and our discussions continue to be ongoing with the payers. And we will have a much, much clearer idea obviously as we get close to launch about the coverage from day one or the kind of contracts we may have before we launch. So it's a little bit premature for me to give you very definitive, but nothing really surprising versus all the statements that we have made historically about the product, its positioning, the uniqueness of the data. Especially also in light of the new scientific data that we published regarding its mechanism of action, that it is truly almost a class of drugs on its own. It's not apomoxyphine, it's not another apomoxyphine or norepinephrine reuptake inhibitor. The serotonin component of this mechanism is very, very important and it plays a very different role in its clinical profile. And that's why we got the data we did with SPN-812 which was very different than apomoxyphine. So all of this has played extremely well in favor of the product and its differentiation, not only with the payers, but also with the physicians as far as they understand now why the profile is what it is and why the Phase III data came out the way it did.

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Operator [7]

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Your next question comes from the line of Nick Rabino of Stifel.

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Nicholas Carl Rubino, Stifel, Nicolaus & Company, Incorporated, Research Division - Associate [8]

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Hey, everyone, this is Nick Rabino on for Annabel. In the second half of the year, what plans are you guys making to prepare the salesforces for SPN-812 and then WorldMeds? What does the salesforce integration look like? Is there going to be any overlap as you develop them? Or are you thinking about them kind of wholly separately? And then we jumped on just a minute late, so apologies if you went over this, but what caused the improvement in gross to net this one quarter? We figured those would kind of steadily erode year-over-year and there was kind of a tick up. Was it mostly due to the month of March and those 90-day prescriptions? And especially in March, did you notice the same kind of trend throughout the markets for Oxtellar? Thank you.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [9]

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Regarding the salesforce activities and plans, our plans at this point are still the same as far as building the psychiatry salesforce behind SPN-812. So those plans have been in place and will continue to be in place. The salesforce that will come to us and join us from US WorldMeds will continue to focus on the Parkinson's products. As I mentioned earlier, there are ways potentially to augment that salesforce at some point. When exactly we will do that and how do we do that within the launch of SPN-812 and so forth, obviously we're putting all that together to see how things will settle. But this is a transaction that really augments our capabilities, it's not to create cost synergies or anything like this. So we feel with a portfolio of 5 marketed products, and of course with SPN-812, you now have 6 marketed products, we have plenty to do on all of these products. Specifically, of course with 812, but also specifically with the Parkinson's portfolio that we are acquiring, because we will be exploring every potential growth opportunity here that we can from a salesforce perspective, marketing perspective, every other angle as far as the business to make sure it grows. So there are synergies and overlap potentially also from a physician call perspective, so we might be able to allocate the resources a little bit differently across the different brands. So all this is in the works as we speak, clearly preparing for closing the acquisition and the transaction as well as continuing to prepare for the psychiatry which is really what we're looking for as a major foundation for us in psychiatry. Regarding gross to net, I'll let Greg respond to that.

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Gregory S. Patrick, Supernus Pharmaceuticals, Inc. - Senior VP & CFO [10]

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Nick, I'm not clear in terms of exactly what you're looking at, so maybe we might be better off just taking this discussion offline. But in general, on a sequential basis from the fourth quarter of last year to the first quarter of this year, we do see increasing gross to net deductions particularly for Trokendi XR. The basic theme around that has not changed from what the company has observed and communicated to investors over the past year which is that for Trokendi XR, the combined effect of price increases, we got an 8% price increase year-over-year plus volume increases, is largely if not wholly being offset by the intensification of gross to net deductions. For Oxtellar XR it's a little bit different. The combination of volume increases, which have clearly been a little bit more than those on a percentage basis for Trokendi XR, plus price increases has been somewhat higher than the intensification of the gross to net deductions. But it's the same underlying phenomena. We do have one-time impacts versus continuing impacts in gross to net and that makes it a little harder to discern what's going on sequentially or year-over-year. The headwinds that we continue to face on both products are the same. Copay payments we continue, which is really driven by the companies' programs, to continue to enrich that to drive patients to fill and then refill their prescriptions. And then as regards gross to net deductions for the managed care programs, we have very consistently seen an intensification of the ask either for admin fees or a fee for service or a combination of the two from the gross to net, excuse me, from the managed care companies with which the company works. So glad to talk to you about this offline. I think that might be a little bit more efficient. Thanks.

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Operator [11]

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Your next question comes from the line of David Amsellem of Piper Sandler.

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David A. Amsellem, Piper Sandler & Co., Research Division - MD & Senior Research Analyst [12]

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Thanks. Just a couple of questions on Apomorphine. So number one, on the infusion pump, and it might be too early to address this, but I thought I'd give it a go, can you talk about what's the best way to think about pricing? Should we think about it more in line of a Duopa or what the cost of DBS would be? And what's the best way to think about that? That's number one. Number two is, and I think we talked about this in the past, but can you talk about the extent to which you think the infusion pump could cannibalize the self-injection and what is the extent of overlap and what was your diligence telling you in terms of the extent of overlap? Thanks.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [13]

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Sure. Regarding the pump, David, and as you would expect, I mean a lot is going to depend on the final label if approved by the FDA as to what kind of label we will get and the positioning we will be able to go after as far as launching the product and were we do positioning within the paradigm of different therapies out there. I mentioned in response to an earlier question on the call regarding the deep brain stimulation and the gastro, the surgical gastro tube. So as far as pricing specific, you have to take all that into account clearly within the realm of the Phase III data as well and so forth. So it's a little bit hard for me at this point. First of all, we haven't done the work yet, so it's a little bit it would be irresponsible for me to make any specific comment. I don't want to mislead anybody one way or the other. And we will only talk about pricing and people will know what the price is when we actually launch the product. So now I'll have to a little bit push that question to later when we can really answer it when we launch the product. As far as cannibalization which was also related to the first question on the positioning, on the label we get and all of that, clearly will be a determining factor on whether we will have a minor cannibalization to the pen or significant cannibalization to the pen. Because clearly given the indication and what the indication says on the label and what you can promote the product for, it will impact how far on the spectrum as far as the different stages at which these patients are. Are they really moderate to severe, or are they more in the moderate space? Or are they more in the mild to moderate? So clearly the APOKYN pen is more in the mild to moderate space or maybe a little bit on the moderate side than the mild, although that could shift over time because of the dynamics in the marketplace and other products that are coming in that could expand the usage of the pen. And then we'd expect, theoretically, we would expect the pump to be more on the moderate to the upper side, more severe side. So there will be some overlap naturally. There is going to be some overlap. Is it 10% cannibalization? Is it a 20%? It's really hard for us. We've modeled it obviously, when we looked at this transaction we modeled it different ways with different scenarios and so forth and came up with obviously a very solid case for us to move forward with this and looking at the pump eventually will be obviously a huge incremental build on the current franchise. It's not going to cannibalize it 100% obviously, so net net, you're looking at differently significant growth to the franchise overall.

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David A. Amsellem, Piper Sandler & Co., Research Division - MD & Senior Research Analyst [14]

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That's helpful. If I may sneak in a quick follow-up, Apomorphine causes pretty high rates of nausea. Can you talk about what your data on nausea and emesis looks like for the pump, and does the continuous infusion infer a better profile on that front?

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [15]

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Apomorphine side effects are pretty well known, have been established for a long, long time. As far as the pen, I mean if you are a new patient, this is the first time you are using Apomorphine, clearly you will be impacted a little bit more by the side effects, but over time, patients do get used to it and the effect becomes less and less over time. And that's why actually it has a very good actually loyalty, the product. Once people use it and they see the true benefits, I mean really becoming active in such a quick period of time and the reduction in the UPDRS is really amazing for these patients. So when you have that efficacy and initially trying to put up with some of the side effects, I think over time patients get used to it and they become pretty loyal to the franchise. And with the infusion pump, you are continuously infusing the Apomorphine, so the drug is the same. Naturally you are going to expect very similar type of side effects and very similar buildup for tolerance over time. So we don't expect it to be remarkably very, very different overall because of the drug itself. But it is continuous flow that is not obviously a quick bolus injection like the pen is. So you would expect people to get used to it and tolerate it potentially a little bit more, although I don't have really solid data to speak from a head to head comparison.

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Operator [16]

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I am showing no further questions at this time. I will now like to turn the conference back over -- I do apologize. We just had a question come into queue. It's a follow-up from [Samir Davarnia] of R.A. Securities.

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Unidentified Analyst, [17]

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Thanks for taking my questions. Just really back on the WorldMeds deal, you mentioned that APOKYN did $119 million last year. I was just wondering, what were the sales of MYOBLOC last year? And also, what's your strategy for growing XADAGO?

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [18]

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The total business is about $150 million approximately and APOKYN we said in 2019 was approximately $118 million or $119 million. So naturally the remaining is between MYOBLOC and XADAGO. As far as the XADAGO business, it's actually a fairly new product. It was launched in 2017, so it's fairly new. Unfortunately, the timing was a little bit not perfect for the entry of that molecule because AZILECT at that time went generic either a little bit before or about the same time. So that created an issue for a new product such as XADAGO with a mechanism of action which is a monoamine oxidase inhibitor. Now XADAGO is safinamide which is the drug, actually is a dual action mechanism. It does have activity on the glutaminergic activity in addition to the monoamine oxidase inhibition. However, that did not end up on the label and that's why it limited from promotional perspective what we can say about the product and potentially differentiating it from other monoamine oxidase inhibitors. So we certainly, like with the other products, we certainly will be looking for ways to potentially rejuvenate the product, put extra push behind it. There has been some limitations from a payer perspective given the situation I mentioned where other monoamine oxidase inhibitors are basically generics, so you would expect that kind of pushback anyway from the payers. So we will be working to see how we can actually improve the traction behind the product and potentially grow it significantly.

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Unidentified Analyst, [19]

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Can I just maybe follow up with that, does that include maybe doing an additional study to explore whether it could reduce dyskinesias?

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [20]

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It will include all -- we look at everything. Not just promotional. If there is another opportunity clinically to generate new data, we have to work with our partner obviously, this is not a product that we would fully own, so we have to work with our partner Zambon as far as to, and they may already have plans. Really, we don't know at this point and not able to speak about anything specific at this point

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Operator [21]

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And I'm showing no further questions at this time. I will now turn the conference back to Mr. Khattar.

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Jack A. Khattar, Supernus Pharmaceuticals, Inc. - Founder, President, CEO, Secretary & Director [22]

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Thank you. After the completion of the acquisition of the CNS portfolio of US WorldMeds, which is expected in the second quarter of this year, we will have a neurology portfolio of 5 marketed products, diversifying our revenues, earnings and our cash flow. In addition, we are very excited about the level of preparation by our commercial team and the quality of our launch plans for SPN-812 as we get closer to the yearend when we expect to launch the product if approved by the FDA. Finally, we are waiting for the closing of the acquisition to start our planning for what could be another exciting second launch in the second half of 2021 of the Apomorphine Infusion Pump. And finally, in addition to all of that, we will continue to look for strategic opportunities to further strengthen our future growth and leadership position in CNS. Thank you for joining us this morning and we look forward to updating you throughout the year.

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Operator [23]

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And ladies and gentlemen, this concludes today's conference. Thank you for participation and have a wonderful day. You may all disconnect.