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On Wednesday, Cantor Fitzgerald analyst Kristen Kluska issued a downgrade for Supernus Pharmaceuticals (NASDAQ:SUPN), adjusting the stock’s rating from Overweight to Neutral. This adjustment was accompanied by a significant reduction in the price target, now set at $36.00, down from the previous target of $57.00. According to InvestingPro data, SUPN has demonstrated strong financial health with impressive gross profit margins of 89% and maintains a solid balance sheet with more cash than debt.
The downgrade decision follows the release of lackluster Phase 2b trial results for SPN-820, Supernus’s investigational treatment for treatment-resistant depression (TRD). The study marked the first placebo-controlled trial for the drug, but the primary endpoint, which measured the change in the Montgomery-Åsberg Depression Rating Scale (MADRS) total score at Week 4, showed a minimal difference between SPN-820 and the placebo. Despite this setback, the company has maintained revenue growth of 6.79% over the last twelve months, with analysts expecting continued profitability this year.
Kluska noted that the MADRS total score change was -12.3 for SPN-820 compared to -11.9 for the placebo, with a p-value of 0.96, indicating that the difference was not statistically significant. Despite the disappointing trial outcome, the analyst acknowledged Supernus’s robust commercial presence, particularly highlighting Qelbree as a key product for the treatment of ADHD.
However, the analyst’s outlook suggested that any significant positive shifts in the company’s trajectory would likely depend on the development of other products in its pipeline. These pipeline projects are still in the early stages, which adds a layer of uncertainty regarding their potential impact on the company’s future growth and financial performance.
In other recent news, Supernus Pharmaceuticals experienced a significant setback with its Phase 2b study for SPN-820, a treatment for resistant depression, which failed to meet its primary endpoint. Concurrently, the biopharmaceutical firm received FDA approval for ONAPGO, a first-of-its-kind subcutaneous apomorphine infusion device for advanced Parkinson’s disease motor fluctuations. The device is expected to be available in the U.S. in the second quarter of 2025.
Stifel analysts maintained their hold rating on Supernus shares, acknowledging the addition of ONAPGO to the company’s Parkinson’s disease portfolio. However, they suggested that current sales projections for the drug are modest. On the other hand, TD Cowen increased Supernus’ price target to $44.00, maintaining a buy rating on the shares, following the FDA approval of ONAPGO.
Despite the disappointing results from the SPN-820 study, Supernus continues its commitment to developing treatments for central nervous system diseases. The company plans to support the launch of ONAPGO with a comprehensive nurse education program and access support. These developments are part of the recent news surrounding Supernus Pharmaceuticals.
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