Supernus Pharmaceuticals, Inc.
) shares gained 3.1% following the company's announcement regarding
the execution of a non-dilutive royalty deal with HealthCare
Royalty Partners. Shares increased an additional 0.7% in the
subsequent trading session. According to the agreement, Supernus
will receive a cash payment of $30 million from the company.
As per the deal, HealthCare Royalty will acquire certain royalty
and milestone rights related to the commercialization of
) Orenitram (oral treprostinil), which is approved for the
improvement of exercise capacity in pulmonary arterial hypertension
(PAH) patients. Once a certain threshold is achieved, Supernus will
retain full ownership of the royalty rights on the sales of
United Therapeutics and Supernus have a partnership agreement under
which EnSoTrol, Supernus' osmotic delivery system has been used in
the development of Orenitram.
The agreement between Supernus and HealthCare Royalty will
strengthen Supernus' cash position while enhancing its operational
and financial flexibility. It will position Supernus in such a
manner that it can benefit from the upside potential of Orenitram
going forward and partially monetize its royalty stream from the
We remind investors that Orenitram was launched in the U.S. market
in Apr 2014. We note that subcutaneous and intravenous formulations
of Orenitram are also available under the trade name Remodulin for
the treatment of PAH. An application for orphan drug designation
for Orenitram is under FDA review.
Supernus holds a Zacks Rank #2 (Buy). Some better-ranked stocks in
the healthcare sector include
). Both carry a Zacks Rank #1 (Strong Buy). United Therapeutics
carries a Zacks Rank #2.
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