is supernus pharma supn stock a buy
Source: istock

Supernus Stock Shows Promise in the ADHD Drug Market


Dec. 23 2020, Published 12:13 p.m. ET

Supernus Pharmaceuticals stock is surging following positive results from a clinical study of its experimental drug for ADHD. Supernus stock is listed on Nasdaq and trades under the ticker symbol “SUPN.” 

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The company’s SPN-812 drug candidate achieved the required targets in a Phase 3 study in adult patients with ADHD. The clinical studies will help Supernus expand the market opportunity for the drug. SPN-812 is already before the FDA for approval as a treatment for ADHD in children aged 6 to 17 years old.

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Source: Supernus stock PIXABAY
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With the positive clinical study results, Supernus plans to seek approval for the drug’s use in adult patients. According to the company, adults account for about half of the ADHD market in the U.S.

The positive late-stage study results for SPN-812 in adult patients drove Supernus Pharma stock up more than 20 percent in after-hours trading on Dec. 22. The stock popped up more than 16 percent in pre-market trading on Dec. 23. Supernus stock continued to rise after the opening bell and rose by 18 percent to $26.60 in mid-morning trading. 

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Supernus excites investors on Stocktwits

Supernus (SUPN) stock has become a major talking point on investor forum Stocktwits after the positive ADHD drug study results in adults. An investor going by the label Jmococa is bullish that Supernus stock will hit $32 soon and is buying more. Another Stocktwits investor is also bullish on Supernus and thinks that the stock is on its way to $38.

Supernus went public in 2012

Supernus went public in May 2012. The company sold 10 million shares at a price of $5 per share in its IPO. The company pocketed $45.5 million after paying for the expenses and commission related to the public listing. Supernus said that it intended to use the IPO funds to finance a clinical study of its drug candidates and reduce its debt.

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Supernus' stock forecast

The most bullish analyst sees a 36 percent upside potential in Supernus stock from the current level to $35. In contrast, the most bearish analyst sees an 18 percent downside in the stock to $21.

buying supernus stock
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Supernus stock has more room to run and can stabilize at $30 before the anticipated FDA approvals. The stock could surge again if the FDA approves SPN-812 for pediatric patients with ADHD. The stock should also soar if Supernus persuades the FDA to approve the drug for adult patients. 

Supernus doesn't pay dividends

Currently, Supernus doesn’t pay a dividend. Instead, the company channels any money that it makes back into the business on programs like funding clinical studies and developing the product pipeline.

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Should I buy Supernus stock?

Supernus stock may appeal to investors seeking exposure to the ADHD drug market. The global ADHD therapeutics market is on track to reach $24.9 billion in 2025 from $16.4 billion in 2018. Although Supernus has compelling results behind its ADHD drug, investors getting into this stock now will need to be patient. It may take time for the company to bring the product to the market and start generating meaningful sales and profit. 


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