Business Corpus: IBD 50's Supernus Pharma Topples As Key Epilepsy Drug Sales LagSupernus Pharmaceuticals on Wednesday reported income of 57 cents per share on sales of $99.5 million for its second quarter. The post IBD 50's Supernus Pharma Topples As Key Epilepsy Drug Sales Lag appeared first on Investor's Business Daily.

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Supernus Pharmaceuticals (SUPN) toppled Wednesday as sales from seizure drug Trokendi lagged an estimate, and news emerged that an investment firm pulled nearly 93% of its stake from the biotech.

In midday trading on the stock market today, Supernus stock crashed 10.2%, near 47.90, after hitting a three-month low. Supernus is on the IBD 50 stock list and is also a Sector Leader. It has a Composite Rating of 98 out of a best-possible 99.

Janney analyst Ken Trbovich expressed surprise that Trokendi sales were "not stronger." The drug brought in $76.4 million in sales, growing 36.4%. But that lagged Trbovich's estimate for $81.4 million. Prescriptions outgrew sales, rising 42.7% to 177,052.

"But management conveyed its confidence in the outlook by raising the lower end of its previous revenue guidance," he said in a report. "Still, we will look to the call for clarity on whether we need to adjust our model for higher gross-to-net discounts."

Trokendi Sales Lag

For the quarter, Supernus reported $99.5 million in sales, up 31%. That lagged analysts polled by Zacks Investment Research for $101 million, though Trbovich noted that the company's reported sales met other estimates. Profit of 57 cents per share grew 78% and beat expectations for 44 cents.

Trokendi treats epilepsy and grabbed approval in 2017 as a preventive treatment for migraines. Growth in the second quarter is "an impressive sign of the continued benefit Supernus is deriving from the expanded label it received in April 2017," Trbovich said.

Sales of anti-epileptic drug Oxtellar climbed 19.1% to $20.6 million in the quarter. That narrowly beat Trbovich's view for $19.9 million. Prescriptions of the drug grew 9.6% during that quarter to 37,789, Supernus said in a news release.

Changes In Forecast

The biotech also boosted the lower end of its sales forecast for 2018. It now sees $385 million to $400 million in net product sales. Analysts expected total revenue of $405 million. Analysts also expect full-year earnings of $1.86 per share.

News also emerged Wednesday that equity investment firm Algert Global lessened its stake in the biotech by 92.7% over the second quarter. According to a Securities and Exchange Commission filing, Algert now owns 8,061 shares of Supernus, worth about $482,000.

At the end of the first quarter, its investment in Supernus stock was worth north of $5 million.

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The post IBD 50's Supernus Pharma Topples As Key Epilepsy Drug Sales Lag appeared first on Investor's Business Daily.