Supernus Pharmaceuticals

About Supernus Pharmaceuticals

Supernus Pharmaceuticals develops treatments for epilepsy and other central nervous system disorders. Its lead candidate is a once-daily, extended-release oral epilepsy drug developed from topiramate, an existing immediate-release drug that is administered multiple times daily. Another candidate, Epliga, is a similar epilepsy treatment developed from another immediate-release drug, oxcarbazepine. Both candidates are in late-stage development; other pipeline products include treatments for attention deficit hyperactivity disorder (ADHD). Supernus launched its initial public offering in 2012. The company intends to use a portion of the proceeds raised in its IPO to fund continued development of its two epilepsy drug candidates, as well as its other earlier-stage ADHD candidates. In addition, the company will likely use a portion of the proceeds to market and commercialize its lead epilepsy candidate, for which it intends to soon seek regulatory approval. Because its lead candidate is in the late-stages of development, the company intends to invest heavily in establishing in-house sales and marketing operations; it also plans to seek licensing agreements with other pharmaceutical companies to commercialize the product outside of the US. Upon FDA approval, the company would market its drug directly to physicians and neurologists in the US. Supernus faces competition from other companies also developing once-daily, extended-release topiramate products. As such one of its key priorities includes gaining exclusive marketing rights in the US, a designation that would position it as top supplier of topiramate products. The company faces similar challenges with its oxcarbazepine-based Epliga candidate, which if commercialized could compete in international markets with a similar candidate being developing by Desitin Arzneimittel GmbH. Topiramate was originally developed and marketed by Johnson & Johnson under the Topamax brand name; similarly, Novartis developed and marketed oxcarbazepine under the Trileptal brand. Neither product is exclusively owned by its original developers and both are available in generic form. Supernus is leveraging its proprietary drug development technologies to transform topiramate and oxcarbazepine into novel extended-release, once daily drug treatments. Supernus also uses its drug development technologies to earn revenue, mainly by licensing its technologies and services to other pharmaceutical companies. It also brings in royalty payments associated with certain drug products developed using its technologies. However, like many drug development companies investing heavily in R&D and other expenses, Supernus has not been profitable since its inception. The company, which traces its roots back to the early 1990s, started out as a stand-alone company and later became a subsidiary of Shire plc. The company broke from Shire in 2005 and formed its current business. Prior to its IPO, Supernus was a private firm owned by institutional investors, including New Enterprise Associates, which held a 45% stake; and OrbiMed Private Investments and Abingworth Bioventures, which each held an 18% stake. Company founder and CEO Jack A. Khattar also held a 10% stake through ownership of restricted stock.