SUPN - Supernus Pharma resumed Buy at Jefferies citing Adamas acquisition

Jefferies has reinstated the coverage of Supernus Pharmaceuticals (SUPN +6.9%) with a Buy rating on the completion of the company’s $850M acquisition of Adamas Pharmaceuticals in November. With the closure of the deal, the analysts led by David Steinberg project the acquisition to add ~50%, ~113%, and ~70% earnings per share for the company between FY22 and FY24, with $70M in synergies within the first year. Backed by three new drivers of growth — Qelbree, Gocovri, AIP — the company has the potential to offset the impact from the loss of epilepsy therapy Trokendi XR in 2023 and sustain growth in the long run, the team argues. The price target raised to $44 from $40 per share implies a premium of ~46.8% to the last close. Supernus (NASDAQ:SUPN) faces the loss of patent exclusivity for Trokendi XR in January 2023.

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Supernus Pharma resumed Buy at Jefferies citing Adamas acquisition