Cantor maintains neutral on Supernus, price target at $36

Published 26/02/2025, 15:58
Cantor maintains neutral on Supernus, price target at $36

On Wednesday, Cantor Fitzgerald reaffirmed a Neutral rating on Supernus Pharmaceuticals (NASDAQ:SUPN) with a steady price target of $36.00, while other analysts see potential upside with targets ranging up to $44.00. Currently trading at $30.90, the company maintains a strong financial health score of "GREAT" according to InvestingPro analysis. The firm’s analysis highlighted several factors that could contribute to the continued sales growth of Qelbree, Supernus’ product for treating attention-deficit/hyperactivity disorder (ADHD).

The recent update to Qelbree’s label, which now includes more detailed information on its mechanism of action, was noted as a potential growth driver. The label emphasizes Qelbree’s multimodal pharmacodynamic effects. With impressive gross profit margins of 89% and revenue growth of 6.8% over the last twelve months, the company has demonstrated strong commercial execution. Additionally, the upcoming presentation of Phase 4 trial data involving 161 adults at the American Psychiatric Association (APA) in May is anticipated to further support the drug’s efficacy and sales.

Supernus has also secured a patent extension for Qelbree, extending its market protection until 2035. This extension is significant given that adults currently represent only 30-32% of Qelbree’s market, compared to 67% of the overall ADHD market, indicating a substantial opportunity for market expansion. For deeper insights into Supernus’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

Patient satisfaction with Qelbree is reportedly high, with approximately 80% of users continuing with the treatment. This is a favorable comparison to other ADHD drugs, which typically have satisfaction rates around 50%. The combination of Qelbree’s position as a non-stimulant treatment, the forthcoming clinical data, and increased awareness are all expected to be key factors in driving the drug’s growth. Sales of Qelbree are projected to potentially surpass $600 million, according to the analyst’s commentary, which could significantly impact the company’s current annual revenue of $652 million.

In other recent news, Supernus Pharmaceuticals reported its Q4 2024 earnings, with revenue reaching $174.2 million, surpassing the projected $150.24 million. Despite the strong revenue performance, the company’s earnings per share (EPS) came in at $0.27, falling short of the forecasted $0.33. The company highlighted significant growth in prescriptions and sales of its ADHD medication, Calvary, which contributed to a 72% increase in annual net sales. Supernus also reported a strong cash position of $454 million with no debt, providing financial flexibility for future opportunities. The company has set a revenue guidance of $600 million to $630 million for 2025, anticipating continued growth in Calvary prescriptions and the launch of ONAPCO, a new Parkinson’s disease treatment, in Q2 2025. Analysts have noted that Supernus’s stock experienced a modest increase following the earnings announcement, reflecting optimism about the company’s revenue growth despite the EPS miss. Supernus’s management expressed confidence in their strategic initiatives and product pipeline, aiming for sustained growth in the coming years.

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