A Look Into Supernus Pharma's Investor Day

In a report published Thursday, Jefferies analyst David Steinberg upgraded the rating on

from Hold to Buy, while raising the price target from $11 to $18, after the company's Investor Day showcased its differentiated ADHD pipeline. During its Investor Day in NYC, the company showcased its key pipeline assets - SPN-810 and SPN-812. "We came away from the event more encouraged about the long-term growth prospects for these late-stage assets," analyst David Steinberg said, while adding, "We are particularly intrigued by the potentially broad IA indication for SPN-810 and believe it could become SUPN's largest drug." Globally 5-7 percent of children are estimated to have ADHD, while 22-32 percent of them also display IA. "The most common approach involves off-label utilization of atypical antipsychotics – which are plagued by undesirable side effects, poor tolerability and modest efficacy," Steinberg wrote. SPN-810 has exhibited robust results in Phase 2 testing and Supernus is currently finalizing a "3 trial pivotal program" with the FDA, scheduled to begin in 4Q15. "Importantly, while IA in ADHD is the first targeted indication, a broader IA label across autism, bipolar disorder and other CNS indications could eventually be secured – which would greatly expand the commercial opportunity if approved," the report mentioned. The limitations of stimulant therapies for ADHD are known, which means that SPN-812 has the potential to become "the leading non-stimulant ADHD drug if successfully developed," Steinberg added.