Supernus Pharmaceuticals, Inc (SUPN, $29.61): “Adamas Family, a Super Acquistion”
By: Kendra Preissner, AIM
Student at Marquette University
Disclosure: The AIM Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it and I have no business relationship with any company whose stock is mentioned in this article.
Summary:
•
Supernus Pharmaceuticals, Inc. (NYSE: SUPN) An award-winning
biopharmaceutical company headquartered in the United States that focuses on
commercializing and developing central nervous system (CNS) disease
treatments.
• SUPN is expected by Wall Street to have
declining earning and lower revenues. This is based on the results of their
third-quarter reports.
•
Some drivers that will help combat a significant decrease in earnings are the
proprietary technology platforms, intellectual property and exclusivity, and
projected acquisition of competing pharmaceutical company, Adamas
Pharmaceuticals.
•
This $400 million deal to acquire Adamas Pharmaceuticals will significantly
bolster SUPN’s Parkinson’s portfolio.
•
Projected growth due to collaboration propelled by a strong overlap with
existing infrastructure between the two companies is $60 to $80 million
Key points: Famous actress, Holly Robinson Peete has partnered with Supernus Pharmaceuticals to help raise awareness about Attention-deficit/Hyperactivity disorder and neurodiversity during (ADHD) month. Peete has shared her journey about her personal experiences with ADHD because of her daughter, Ryan who was diagnosed.
With
the partnership with Peete as well as the deal of acquiring Adamas
Pharmaceutical, SUPN is positioning itself to appeal to a wider base of
patients and end-users.
The
acquisition of Adamas Pharmaceuticals will allow Supernus to build a strong and
diversified portfolio of value-enhancing and clinically differentiated
medicines targeted to combat central nervous system diseases.
The
company has established a reputation for strong commercial execution and is
forecasting strong performance with access to Adamas’ innovative therapies
which will benefit their already existing and growing patient base.
What has the stock done lately? As of Thursday, October 28, the stock is up 17.63% year to date. The company has outperformed the S&P 500 index on average over the past two years; however, the company’s performance has followed closely with that of the S&P small-cap healthcare index.
My
Takeaway
With the acquisition planning to take place and the partnership with Holly Robinson Peete as an advocate for the company, Supernus Pharmaceuaticals, Inc. has undoubtedly put itself in a position to generate impressive long-term growth and revenues if they continue to innovate and maintain a strong position in the health technology and pharmaceutical markets. These markets are fast-paced and pivot quickly so it is possible the acquisition might leave the company with a blind spot, where they are focusing too much on their acquisition rather than investing in R&D within their own company. Making note of this, the acquisition still places them in an appealing position within their market, allowing them more access to greater amounts of resources and supplier relations.
