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Supernus Pharmaceuticals (NASDAQ:SUPN), currently valued at $2.03 billion and maintaining impressive gross margins of 88.42%, is acquiring Sage Therapeutics in an all-cash transaction valued at up to $795 million, according to a research note from Piper Sandler. The deal includes $8.50 per share plus contingent value rights for Sage shareholders. According to InvestingPro data, Supernus holds more cash than debt on its balance sheet, suggesting financial capacity for this acquisition.
Piper Sandler maintained its Neutral rating and $36.00 price target on Supernus stock following the announcement. The firm described the acquisition as "kind of a head-scratcher" despite acknowledging that it would diversify Supernus beyond its Qelbree product. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.2 out of 5, with particularly strong cash flow metrics.
The acquisition gives Supernus access to Zurzuvae, an oral GABAA receptor positive allosteric modulator approved for postpartum depression. However, Piper Sandler noted that the medication "does not synergize with SUPN’s neuropsychiatry-focused commercial infrastructure."
The research firm also expressed concerns about the deal’s long-term value, pointing out that Zurzuvae’s Orange Book-listed patents expire between 2034 and 2037, while Qelbree’s exclusivity extends into 2035. This timing means the acquisition may not fully address what Piper Sandler called Supernus’s "terminal value question mark."
Another limitation highlighted in the analysis is that Supernus will not own full rights to Zurzuvae, as Sage books 50% of U.S. revenue through its co-promotion agreement with Biogen (NASDAQ:BIIB). For deeper insights into Supernus’s valuation and financial metrics, including its attractive 8% free cash flow yield, consider accessing the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Supernus Pharmaceuticals reported its first-quarter 2025 earnings, revealing a net loss of $0.21 per share, which fell short of the expected earnings of $0.37 per share. However, the company exceeded revenue expectations, reporting $149.8 million against the anticipated $146.9 million. Supernus has also announced its agreement to acquire Sage Therapeutics for approximately $561 million, with the potential to increase to $795 million depending on certain conditions. This acquisition will give Supernus access to ZURZUVAE, the only FDA-approved oral treatment for postpartum depression. Cantor Fitzgerald has maintained its Neutral rating on Supernus, reflecting a stable outlook despite the acquisition. Additionally, Supernus has set a full-year 2025 revenue guidance of $600 to $630 million. The company continues to emphasize its strategic growth in the neuroscience field, bolstered by its robust cash position of $463.6 million. These developments mark significant strategic and financial movements for Supernus in the pharmaceutical landscape.
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