Supernus Pharmaceuticals and Indivior Pharmaceuticals announced on Aug. 3 a merger that will create a central nervous system-focused company with 11 marketed products. The all-stock merger of equals is expected to generate $2.2 billion in yearly revenue, with operating earnings projected at around $888 million, according to the companies' Monday release.
Nine of the commercial products come from Supernus, including its non-stimulant ADHD medication Qelbree, which earned $89 million in the second quarter—a nearly 15% increase from the previous quarter's $78 million. Other notable Supernus products include Gocovri for Parkinson’s disease and Zurzuvae for postpartum depression, acquired last year through a $795 million buyout of Sage Therapeutics.
Indivior brings Sublocade, a once-monthly injection for opioid use disorder that netted $253 million in second-quarter revenue. Company leadership said they are confident in Sublocade’s exclusivity and growth potential due to patent protection extending through at least 2038. According to an analyst note from Jefferies cited on Monday, Sublocade currently holds about 76% of the market share for opioid use disorder treatments.
The combined company will operate as Supernus and continue trading on Nasdaq under the ticker “SUPN.” Jack Khattar, current CEO of Supernus, will lead the new entity, while Tony Kingsley, an Indivior board member, will serve as board chair. The companies anticipate annual cost savings totaling $125 million but did not specify operational efficiency measures. Expected net debt after combining is estimated at $878 million.
No workforce details were provided in public releases or filings; however, Khattar said during an investor call that "natural redundancies" associated with achieving cost savings could be expected among general and administrative roles tied to the anticipated efficiencies.
Under terms of the agreement, Supernus stockholders will receive 1.5 common shares of Indivior per share held; Indivior shareholders will get a one-time cash dividend totaling $1 billion immediately after closing—financed by a Citibank loan of $650 million. Upon completion of the deal—approved by both boards and slated for closure in this year's fourth quarter—former Indivior stockholders are set to own 56.5%, while Supernus shareholders would hold 43.5% ownership.
