Skip to main content

Market Overview

Supernus Pharma Should Have More Strength After Epilepsy Drug Patent Decision, Northland's Buck Says

Supernus Pharma Should Have More Strength After Epilepsy Drug Patent Decision, Northland's Buck Says

Supernus Pharmaceuticals Inc (NASDAQ: SUPN) is up more than 3 percent Thursday and more than 17 percent year-to-date.

According to a press release, Supernus' most recent earnings release earlier in March came in as records for both the fourth quarter and the full year 2015.

"2015 was a year of significant achievements, where we delivered on our commercial strategy for Trokendi XR and Oxtellar XR, and progressed our pipeline in late-stage clinical testing […] We met our upwardly revised product sales guidance, with total net product sales reaching $143.5 million in 2015. Based on the strength of our base business, we were able to achieve, for the first time, profitability from on-going operations each quarter and for the full year," Supernus President and CEO Jack Khattar commented.

Trokendi XR and Oxtellar XR are both marketed for epilepsy.

Related Link: Supernus Up 3.7%, Federal Court Says Actavis Is Infringing On Patents

Analyst's Take

According to a Northland Capital Markets research note, Supernus is due some share strength.

Supernus' Trokendi was recently involved in an ongoing patent case. On Wednesday, the ruling came back positively for the drug, with Justice Wigenton (U.S. District Court of New Jersey) issuing "an order construing claims in-line with Supernus' construction in six of seven claims," explained Northland. The move, in Northland's view, "could improve litigation settlement chances."

Based on the positive ruling, Northland reiterated its Outperform rating, with an attached price target of $22.

The analysts justified maintaining their thesis by reaffirming the importance of Trokendi to the pharmaceutical company, "Trokendi SR is key for the Supernus outlook at 80 percent of 2016E product sales and estimated 50 percent growth in 2016 to $165.8 million."

"Accordingly, items that lessen risk of patent litigation are positive for shares. Accordingly, a win on claims construction in the patent litigation versus Actavis Generics (still part of Allergan: AGN-Not Rated) and Zydus (India-Not Rated) is a net positive," the analysts explained.

At time of writing, Supernus Pharma was up 3.22 percent on the day at $15.70.

Latest Ratings for SUPN

Apr 2021JefferiesUpgradesHoldBuy
Jun 2020Piper SandlerUpgradesNeutralOverweight
Jun 2020JefferiesReinstatesHold

View More Analyst Ratings for SUPN
View the Latest Analyst Ratings


Related Articles (SUPN)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech Long Ideas News Reiteration Legal Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

RIDERF LaffertyDowngrades
RAPTCantor FitzgeraldMaintains71.0
VRTXPiper SandlerMaintains261.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at