Helping you make wiser investment decisions

Supernus strikes $400M+ Adamas buyout as its top drug heads toward the patent cliff

October 11, 2021 Eric Sagonowsky


As Supernus’ top drug inches toward the patent cliff, the central nervous system-focused drugmaker has struck an M&A deal to quickly expand its portfolio of marketed medicines. 

In a $400 million buyout, Supernus is paying $8.10 per share to buy CNS drugmaker Adamas Pharmaceuticals. With the deal, Supernus gets rights to Gocovri, the first and only FDA-approved drug to treat both off-episodes and dyskinesia in patients with Parkinson’s disease receiving levodopa-based therapy. The drug, which won its original dyskinesia FDA nod in 2017, posted $71 million in 2020 sales and $37.7 million in the first six months of this year.

Earlier this year, the medicine won FDA approval for its second use, to treat Parkinson’s patients who are experiencing “off” episodes, or periods when their treatments stop working well.

With Adamas, Supernus also gets rights to Osmolex ER, a drug to treat Parkinson’s disease and drug-induced extrapyramidal reactions in adult patients.

Aside from the $400 million payment, Monday’s deal features two continent value rights worth 50 cents per share each. For the first to deliver, Gocovri will need to post $150 million in four consecutive quarters before the end of 2024. For the second, the drug would need to deliver $225 million during four consecutive quarters—with the same 2024 deadline. Those CVRs would bring the total deal value to $450 million.

RELATED: Adamas scores orphan approval for tweaked generic Parkinson’s medication

The Adamis buyout follows Supernus’ purchase of US WorldMeds’ portfolio of central nervous system therapies last year. Together, the deals cut the company’s reliance on Trokendi, its top drug, which generated $320 million in 2020. That migraine prevention medicine is set to face generics at the start of 2023 under a patent settlement, and it’s already facing a host of new branded CGRP competitors.

Based on sales figures from Adamas and US WorldMeds’ CNS drugs, Supernus says Trokendi would’ve represented about half the company’s sales in the first half of 2021. That compares with 72% if the company hadn’t struck the deals.

Aside from the new medicines it’s bringing into the fray, Supernus thinks it can squeeze out $60 million to $80 million in savings from the Adamas buy in the first year thanks to “strong overlap with existing infrastructure.” 

RELATED: Supernus gears up for Q2 Qelbree launch, in time for back-to-school ADHD script season

Supernus expects the deal to close late in the fourth quarter or early in next year’s first quarter.

For Supernus, the deal follows its April approval for ADHD drug Qelbree in patients six to 17 years. In a note last week, Jefferies analyst David Steinberg said that while it’s still “very early” in the launch, Qelbree’ sales are now annualizing at about $13 million.



Source link