What Happened?
Shares of specialty pharmaceutical company Supernus Pharmaceuticals (NASDAQ: SUPN) jumped 14.4% in the afternoon session after the company posted strong second-quarter earnings that beat expectations and raised its full-year revenue forecast. The pharmaceutical company reported revenues of $165.5 million, which surpassed analysts' projections, while its earnings per share of $0.40 also beat consensus estimates. Investors reacted positively to the growth in key products, as net sales for Qelbree and GOCOVRI increased by 31% and 16% respectively, compared to the prior year. Bolstering investor confidence, Supernus lifted its full-year revenue guidance, pointing to a strong first-half performance. The company also completed the acquisition of Sage Therapeutics and launched a new device for Parkinson's disease, which further supported the positive sentiment.
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What Is The Market Telling Us
Supernus Pharmaceuticals’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Supernus Pharmaceuticals and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.1% on the news that Cantor Fitzgerald upgraded the stock to Overweight from Neutral and raised its price target to $42 from $36. The upgrade followed positive developments in the company's planned acquisition of Sage Therapeutics. Supernus announced that the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act for the deal had expired. The expiration of this period, a requirement for major mergers and acquisitions in the U.S., removed a key regulatory hurdle, allowing the transaction to proceed. The tender offer for Sage shares was set to expire on July 30, 2025, after which Supernus planned to complete the merger. This acquisition was expected to enhance Supernus's product portfolio with Sage's innovative treatments, a move that likely bolstered analyst confidence.
Supernus Pharmaceuticals is up 17.7% since the beginning of the year, and at $42.89 per share, has set a new 52-week high. Investors who bought $1,000 worth of Supernus Pharmaceuticals’s shares 5 years ago would now be looking at an investment worth $1,850.
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