The Royalty Agreement between Supernus Pharmaceuticals, Inc. SUPN and HealthCare Royalty Partners for United Therapeutics Corporation, UTHR’s product

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Supernus Pharmaceuticals, Inc. SUPN focuses on developing and commercializing products that help treat central nervous system disorders. For epilepsy, the company has produced Oxtellar XR® and Trokendi XR®. Presently the company is working to produce a treatment for ADHD. HealthCare Royalty Partners is an investment firm that provides financial solutions for healthcare companies and the royalty owners that have interests in medical device and pharmaceutical products. In the past decade, the firm took part in royalty financings that amount to over $2 billion.

The execution of an agreement between Supernus Pharmaceuticals, Inc. SUPN and HealthCare Royalty Partners was announced today, according to which the latter must pay the former a price of $30 million in cash for acquiring certain rights from Supernus Pharmaceuticals, Inc. SUPN. These rights are relevant to the commercialization of the Orenitram™ tablets by United Therapeutics Corporation, UTHR, who is a partner of the company. After execution of all terms of the agreement, Supernus Pharmaceuticals, Inc. SUPN will resume complete ownership of the Royalty Rights. According to the agreement, Supernus Pharmaceuticals, Inc. SUPN will receive a share of royalties associated with commercialization of Orenitram.

Jack Khattar, the CEO and President of Supernus Pharmaceuticals, Inc. SUPN declared that the company is pleased with the Royalty Agreement as it has proved beneficial financially for the company because the company will now have the right to acquire benefits from the potential gains of the tablet in the future. Meanwhile, a part of the royalty from the Orenitram™ is now monetized. Mr. Khattar also believes that the agreement not only allows operational flexibility to his company but also gives it the financial strength to carry out development activities for expanding the business.

Orenitram was launched initially by United Therapeutics Corporation, UTHR, for treatment of Pulmonary Arterial Hypertension in the market of United States. Supernus Pharmaceuticals, Inc. SUPN developed the extended-release formula for the drug using its platform of osmotic technology EnSoTrol, under the terms of a license agreement with United Therapeutics Corporation, UTHR.

The Founding Managing Director of HC Royalty, Todd C. Davis, said that Orenitram is the first and only, FDA approved oral prostacyclin therapy. He also said that his firm was pleased to formulate a deal for Supernus Pharmaceuticals, Inc. SUPN that would financially benefit them.

The press release has some statements relevant to the potential sales that Orenitram will make. It also describes United Therapeutics Corporation, UTHR’s eagerness and their ability to pay royalties to Supernus Pharmaceuticals, Inc. SUPN according to the terms of the agreement between them. Due to various factors, the actual results will vary from those that are claimed in this press release. The varying factors include whether the doctors will prescribe the drug, whether the patients will use it and other competing drugs in the market. There will be other risk factors that can be read in the Annual Report Form 10-K of the company, under the heading of “Risk Factors”. The company is not obligated to revise the statements in this press release, unless required by the law.

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