Supernus Pharmaceuticals Inc (NASDAQ: SUPN)
Supernus Pharmaceuticals is having a rough day in the market, which really doesn’t make sense. The truth is that earlier this morning the company released overwhelmingly positive trial results. However, some investors have decided to sell the news anyway, leading to declines. Today, we’ll talk about the trial results, what we’re seeing from the stock in the market, and what we can expect to see from SUPN moving forward. So, let’s get right to it…
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SUPN Releases Overwhelmingly Positive Results In ADHD
Supernus Pharmaceuticals has been working on a treatment currently known as SPN-812 for some time now. The treatment is designed for children with the learning disorder known as attention deficit hyperactivity disorder, or simply ADHD.
In an announcement today, SUPN released the data from the Phase 2 clinical trial surrounding the treatment. Ultimately, the data was overwhelmingly positive. The ultimate goal or endpoint of the study was to demonstrate that daily doses of 400 mg, 300 mg, and 200mg would show significant improvement in the symptoms of ADHD from baseline to end of study. Ultimately, this primary endpoint was met.
SUPN released data that proved that children taking the treatment showed significant reduction in symptoms as measured by the ADHD Rating Scale-IV. Another important factor here was tolerability. In the announcement, the company said that the treatment was well-tolerated through all doses. As a result, Supernus Pharmaceuticals said that it plans to have an end of Phase 2 meeting with the US FDA, ultimately with the goal of launching the Phase 3 trial following the meeting. Along with the news of the results, Jack Khatter, President and CEO of SUPN, had the following to offer:
“We are very excited about these results and that SPN-812 met the objectives of the study with an encouraging and strong clinical profile… We believe SPN-812 has the potential of being a well differentiated treatment for ADHD that sets itself apart from current treatment options.”
How The Stock Reacted To The News
At the end of the day, we know that the news moves the market. In general, positive news, like the news that was released by Supernus Pharmaceuticals, will lead to gains. However, for some reason, we’re seeing an incredibly adverse effect on the stock. Currently (11:40), SUPN is trading at $23.62 per share after a loss of $1.07 per share (4.33%) thus far today.
What I’m Expecting To See Moving Forward
First and foremost, when I first saw the declines, I went searching. With one of the larger declines in the sector today, I was expecting to see something by way of negative news. However, I couldn’t find anything. Ultimately, the only news released today surrounding Supernus Pharmaceuticals has been positive news. So, the adverse reaction is shocking. If you know why it’s happening, please reach out and let me know too.
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Nonetheless, I have a relatively bullish expectation of what we can expect to see from SUPN. At the end of the day, the company has recently seen strong growth in earnings. Not to mention, it has an incredibly strong pipeline. Now, with work proving to be fruitful in the ADHD space, it looks like more opportunity may be coming the company’s way in due time. All in all, everything seems to be pointing toward long-run gains in SUPN.
What Do You Think?
[Image Courtesy of Wikipedia]