Stifel maintains hold on Supernus, price target at $38

Published 04/02/2025, 18:16
Stifel maintains hold on Supernus, price target at $38

On Tuesday, Stifel analysts maintained their Hold rating on Supernus Pharmaceuticals (NASDAQ:SUPN) shares, with a steady price target of $38.00. Trading near its 52-week high with a strong 30% gain over the past six months, the company maintains a "GREAT" financial health score according to InvestingPro data. The firm highlighted the recent FDA approval of ONAPGO (SPN-830), Supernus’s new apomorphine pump for Parkinson’s disease (PD), as a significant addition to the company’s PD portfolio.

The approval marks ONAPGO as the first subcutaneous apomorphine infusion device authorized for advanced PD to manage motor fluctuations commonly referred to as OFF episodes. These episodes occur as patients’ responses to treatments like levodopa start to wane, and ONAPGO is seen as a way to delay more invasive surgical interventions.

Supernus’s PD portfolio, which also includes APOKYN and GOCOVRI, is now one of the most comprehensive in the industry, addressing various stages of the disease’s severity. The company’s impressive 89% gross profit margin and steady revenue growth of nearly 7% over the last twelve months demonstrate its operational efficiency. While initially targeting the most severe PD patients, there is potential for ONAPGO to be used in those with moderate conditions in the future.

Despite the addition of ONAPGO to Supernus’s lineup, Stifel analysts suggest that the current sales projections for the drug are modest. They anticipate that sales estimates may evolve as the market for ONAPGO develops and its role in treatment becomes clearer.

The analysts also pointed out that Qelbree, a medication for attention deficit hyperactivity disorder (ADHD), remains the primary growth driver for Supernus. The company’s strategy appears to focus on strengthening its portfolio and ensuring long-term sustainability within its specialized therapeutic areas. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model, with 12 additional exclusive insights available to subscribers. Discover comprehensive analysis and valuation metrics in the Pro Research Report, part of the extensive coverage available for over 1,400 US stocks.

In other recent news, Supernus Pharmaceuticals has been making significant strides in the pharmaceutical industry. The company’s growth has been driven by several key developments, including the FDA’s approval of Onapgo, a new treatment for OFF episodes in Parkinson’s disease patients. This product, which is projected to reach potential peak sales of $200 million, is expected to launch in Q2 2025. The approval of Onapgo has led TD Cowen to raise Supernus’ stock price target from $43.00 to $44.00.

Moreover, the FDA has also approved a label update for Supernus’ ADHD treatment, Qelbree, providing healthcare professionals and patients with comprehensive information to support treatment decisions. The company’s financial performance in its third-quarter earnings call showed a significant increase in total revenue, reaching $175.7 million. This increase was primarily driven by the growth of its key products, Qelbree and GOCOVRI.

These recent developments signify Supernus Pharmaceuticals’ commitment to enhancing the management of neurological conditions and providing novel alternatives for managing these conditions. The company’s strategic focus on acquiring commercial products and prioritizing late-stage pipeline assets, alongside the expected introduction of new treatments, positions it well for continued growth and innovation in the pharmaceutical industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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