Supernus Pharmaceuticals Inc

NASDAQ:SUPN

Earnings Call Transcript 2020-Q3

[Operator]

Good morning and welcome to the Supernus Pharmaceuticals Third Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to Peter Vozzo of Westwicke, Investor Relations representative of Supernus Pharmaceuticals. You may begin.

[Peter Vozzo, IR, Westwicke]

Thank you, Jimmy. Good morning, everyone and thank you for joining us today for Supernus Pharmaceuticals' third quarter 2020 financial results conference call. Yesterday, after the close of the market, the company issued a press release announcing these results.

On the call with me today are Supernus' Chief Executive Officer, Jack Khattar; Chief Financial Officer, Greg Patrick, who has previously announced, is retiring and our newly appointed Chief Financial Officer, Jim Kelly. Today's call is being made available via the Investor Relations section of the company's website at ir.supernus.com. Following remarks by management, we will open the call to questions.

During the course of this call, management may make certain forward-looking statements regarding future events and the company's future performance. These forward-looking statements reflect Supernus' current perspective on existing trends and information. Any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the Risk Factors section of the company's 2019 Annual Report on Form 10-K. Actual results may differ materially from those projected in these forward-looking statements.

For the benefit of those of you who may be listening to the replay, this call is being held and recorded on November 4, 2020 at approximately 9:00 AM Eastern Time. Since then, the company may have made additional announcements related to the topics discussed. Please reference the company's most recent press releases and current filings with the SEC. Supernus declines any obligation to update these forward-looking statements except as required by applicable securities laws.

I will now turn the call over to Jack.

[Jack Khattar, President and Chief Executive Officer]

Thank you, Peter. Good morning, everyone, and thanks for taking the time to join us as we discuss our 2020 third quarter results.

Supernus has made significant progress this year, despite the continued challenges caused by the COVID pandemic. During the first nine months of 2020, Supernus delivered strong product sales performance, diversified its revenue base and enhanced its long-term growth prospects. In addition, the company executed on two corporate transactions and advanced its late-stage pipeline.

The integration of the Parkinson's disease products has been progressing well, and we continue to expect all integration activities to be significantly completed by year-end.

Regarding our late-stage pipeline and starting with the Apomorphine Infusion Pump or SPN-830, we submitted the NDA in September of this year. And if approved by the FDA, we plan to launch the product in the fourth quarter of 2021

Turning to SPN-812 with a PDUFA target action date of November 8, 2020 for the NDA, we remain engaged with the FDA regarding their ongoing review, including label negotiations. Our preparation and readiness for the commercial launch of SPN-812 are on track for January, 2021 launch. And our team has implemented the various virtual and digital platforms to allow us to effectively reach our physician audience in the restrictive COVID environment.

We plan to launch SPN-812 with more than 175 sales representatives, leveraging our internal expertise by transporting sales reps and sales management from our current neurology salesforce, we will then backfill the current neurology salesforce as needed with the goal of having approximately a total of 335 representatives promoting all our commercial products in 2021.

We've completed the enrollment and the SPN-812 Phase IIII in adult patients and expect top line data in the first quarter of 2021. This is an important trial to help us expand the use of SPN-812 if approved by the FDA in the adult market segment, which represents approximately half of the total ADHD market in the U.S.

Finally, regarding SPN-820, our first-in-class orally active mTORC1 Activator, preclinical and development activities are ongoing with the goal of initiating a Phase II clinical program and treatment resistant depression by the end of 2021.

Moving onto the commercial products. We are pleased with the overall performance of our products, despite the adverse impact of the pandemic on salesforce, access to physicians, patient visits, and new patient initiations.

Overall, looking at the first nine months of the year in total, prescriptions as reported by IMS for Oxtellar XR showed strong resiliency with 5% growth and the extended units as represented by the number of tablets showed a 10% growth compared to the same period last year. For Trokendi XR while IMS prescriptions for the first nine months period of 2020 declined by 10%, the extended units declined by approximately 3% compared to last year.

This strand in extended units is due to the fact that the average size of a monthly prescription for Trokendi XR and Oxtellar XR has been trending upwards since the start of the pandemic and such larger size of monthly prescription was sustained through the third quarter.

Taken together with annual price increase, this resulted in a higher average wholesale acquisition cost per prescription for both products. And when you couple that with the favorability and the gross to net deductions that we have seen in the second and third quarters, all this resulted in growth in net sales of Trokendi XR and Oxtellar XR of 11% in the first nine months of 2020 compared to last year.

Similarly, we're pleased with the overall performance of the Parkinson's portfolio with APOKYN and XADAGO performing well, despite the impact of the pandemic. MYOBLOC on the other hand has been and continues to be the most effected by the pandemic where physician visits are instrumental in patient initiation and therapy maintenance.

In summary, product sales performance in 2020 has been better than we originally expected in this uncertain environment therefore, we are increasing our expectations for full year product sales and operating earnings. Finally, we continue to be active in looking for strategic opportunities to further strengthen our future growth and leadership position in CNS.

Before I hand the call over to Greg to provide more details on our third quarter financial performance, I would like to welcome Jim Kelly to Supernus as our new Chief Financial Officer. Jim's background, experience and track record of accomplishments, including nearly 10 years of public company CFO experience in our industry makes him well-prepared and suited for the role. I know he looks forward to getting to know you and to updating you on our progress moving forward.

And, of course, I would like to thank Greg for his many years of dedicated leadership, financial discipline, and numerous contributions to Supernus as well as his commitment a smooth transition. Greg has built a strong team and established the company on a solid financial foundation.

With that, I'll now turn the call over to him.

[Gregory Patrick, Retiring Chief Financial Officer]

Thank you, Jack and good morning, everyone. As I review our third quarter results, please refer to yesterday's press release.

Total revenue for the third quarter 2020 was $155.1 million, an increase of 52% over $102.1 million in the same quarter last year. Total revenue was comprised of net product sales of Trokendi XR and Oxtellar XR of $111.2 million, $40.9 million from the Parkinson's disease products and royalty revenue of $3 million. In the third quarter of 2020 net product sales of Oxtellar XR and Trokendi XR increased 11% compared to the same period in 2019 due to an 8% price increase taken in January for both products and volume expansion for Oxtellar XR.

Turning next to expenses. Research and development expenses were $16.8 million for the third quarter of 2020, essentially unchanged from $16.9 million in the same quarter last year. SG&A expenses for the third quarter of 2020 were $54.7 million compared to $39.3 million in the prior year period. This increase $15.4 million was primarily due to the expenses associated with the Parkinson's disease products acquired in the second quarter of this year. In addition, our ongoing preparations for the launch of SPN-812 contributed to the year-over-year expense increase.

As a result of the US WorldMeds acquisition in the second quarter this year, amortization expense for intangible assets in the third quarter of 2020 was $6.1 million compared to $1.3 million in the same quarter last year. Operating earnings for the third quarter of 2020 were $56.1 million compared to $39.7 million in the same period last year. Net earnings were $40 million for the third quarter of 2020 or $0.74 per diluted share compared to $28.9 million or $0.54 per diluted share in the third quarter last year.

As of September 30, 2020, the company had $740 million in cash, cash equivalents, marketable securities, and long-term marketable securities compared to $939 million as of December 31, 2019. During the first nine months of 2020, the company generated $108 million of cash from operations. Offsetting this cash inflow, the company made upfront cash payments of approximately $300 million for the acquired Parkinson's disease products, inclusive of acquisition related expenses, plus $25 million to Navitor upon executing the development and option agreement for SPN-820.

Before turning the call to Jim, I would like to express my appreciation to you, our investors, as well as to my colleagues at Supernus and our Board of Directors for the opportunity to serve the company over the past nine years. Thank you.

[James Kelly, New Chief Financial Officer]

All right. Well, hey. Thank you, Greg, and congratulations on an amazing career and especially an incredibly impactful last nine years at Supernus. I know the team will greatly miss your contribution in leadership.

So, now turning to financial guidance. We are raising our full year 2020 financial guidance for net product sales and operating earnings, while lowering full year guidance for SG&A and R&D expenses. Recall, this updated guidance reflects the acquisition of the Parkinson's disease products as of June 9, 2020.

For the full year 2020, we expect net product sales to range from $500 million to $530 million compared to the previously expected range of $460 million to $500 million. R&D expenses are expected to be approximately $75 million for the full year compared to the previous expectation of $85 million.

SG&A expenses are expected to range from approximately $215 million to $225 million compared to the previously expected range $240 million to $160 million. SG&A expenses are anticipated to be higher in the fourth quarter of 2020 by at least $15 million as compared to the third quarter, due to increased marketing spend to prepare from the market -- the market from the launch SPN-812 and to build out the salesforce, as Jack mentioned earlier on the call.

Turning to amortization of intangible assets. We expect to incur approximately $16 million for the full year compared to the previous estimate of $15 million. We anticipate full year 2020 operating earnings to now range from $145 million to $160 inclusive of amortization of intangible assets.

So, with that said, we'll now turn the call over to the operator to take your questions.

[Operator]

Thank you. [Operator Instructions]

Our first question comes from Ken Cacciatore with Cowen and Company. Your line is now open.

[Ken Cacciatore, Cowen and Company]

Thanks so much. And first, Greg, what an amazing run. Congratulations and all the best in your retirement. It's been really great working with you. My question is on how we should think about 812s next year, Jack, as we introduced that product, we've been seeing kind of elongated timeframe to get managed care on board for a lot of these launches. And I know the back-to-school season is going to be in the fall, you're launching in January. Can you just talk about the pacing? We going to work on managed care first, before we go out and push the launch. So, how we should be just thinking of that ramp?

And then second question is around just kind of balancing as we get a little bit late in Trokendi's exclusivity, balancing how we look to maximize that product from a profitability standpoint versus investments? And now 812s and apomorphine pump, hopefully if that's approved, just kind of how we should be thinking about -- how the P&L will look as we balance these launches versus the -- end of the exclusivity for Trokendi. Thank you.

[Jack Khattar, President and Chief Executive Officer]

Yeah. Hi, good morning, Ken. Regarding 812 first, as far as the launch and the elongated period that you mentioned as far as managed care coverage and so forth that we've seen with recent launches in our industry, we've been working with managed care and the key accounts and payers and so forth for about a year and a half now.

And, of course, those discussions accelerated as we got the Phase III data and we started chatting all that with them. So, we've been working pretty hard to have access and coverage as soon as possible, try to minimize that elongated, so to speak, period of lack of coverage or delayed coverage. So, we are really working hard to do that across the board to make sure the product can get off a good start, right from the beginning.

We are also -- obviously, we'll be ready for the school season that you refer to. So, in the first six months we would expect that our coverage will continue to improve. So, if we launch -- assuming we launch, as we said in January, we expect the coverage continued to improve so that as we get to the school season, we should be fully ready to have full access to the product overall.

Regarding the Trokendi XR question, how do we balance exclusivity profitability, allocation of resources and so forth? Of course, we still have two solid years, hopefully for Trokendi XR, and we still believe there's a great potential for the product. So, we're, again, continue to support the product. It's still has a tremendous potential out there despite the CGRPs and the penetration by competition. This year's pandemic obviously had hurt the brand obviously more than it did before Oxtellar XR, because it's very difficult to separate your brand from genetics when you don't have the chance to have face-to-face interaction with the physicians and the sampling issues and so forth with patients. So, we will balance all that for the next year.

Of course, our priorities are the future drivers of growth in this company. And Trokendi XR is not a future driver for our company. So, naturally you will see us doing a lot of resource allocation behind the most promising assets in the company and the portfolio as specifically SPN-812 followed by the pump. Hopefully, if we end up launching that asset, which we believe is a great asset for us by the end of next year. So, theoretically, in 12 months, we're looking at two product launches at Supernus for two products as a whole great promise for the future.

And clearly, we will invest appropriately behind both of them. While at the same time, continue to advance 820, which is a very exciting asset that we hope in the future as time goes on, we'll be able to share more and more of that exciting data.

[Ken Cacciatore, Cowen and Company]

Thank you.

[Operator]

Thank you. Our next question comes from David Steinberg with Jefferies. Your line is now open.

[David Steinberg, Jefferies]

Thanks very much. A couple of questions. First on Trokendi XR, just for the quarter, was there any stocking did you change -- any changes in co-pay assistance? And can you give us the update on the gross to net versus the prior two quarters? And then as far as 812 goes, you're getting pretty close to potential approval of launch. Jack, any updates you can share with us and some of the pear research you've done.

And then just a more technical question. I know you're going to launch in January, but in your guidance, will there be any sales of 812 in December from stocking? Thanks.

[Jack Khattar, President and Chief Executive Officer]

Yeah. Sure. The first question on Trokendi XR, we really didn't see any -- anything regarding stocking. As far as the gross to net or co-pays, or gross to net in general, what we've seen there in the third quarter is what you typically see in every normal year, which is slight improvement in gross to net from one quarter to the other -- after the first quarter, which we all know is normally the ugliest with gross to net, and then things improve over the year. So, during the year and specifically in the third quarter, that's exactly what we saw, the continue, the regular improvement.

Now, you might recall last quarter, we had a one-time adjustment to the gross to net, which we did emphasize last quarter. That was a one-time thing that we didn't expect it to repeat. So, it did not repeat as a favorable adjustment in the gross to net for the third quarter. So, any improvement in the third quarter was your typical improvement versus the first quarter of the year as the time goes on.

As far as 812 payer research and so forth, as I mentioned earlier in my comments, I mean, we are really striving and working very, very hard to have as much access as possible and coverage as early as possible clearly. And the research and all the conversations we've had with the payers continue to point to the same profile that we have talked about that 812 is differentiated. It's a new chemical entity. It's the first we introduced, hopefully if approved by the FDA in more than a decade. I mean, we haven't seen anything new in this category, in this disease state, anything introduced since Vyvanse and Intuniv as different molecules and different mechanisms of action. 812 is a very unique mechanism of action, is a very differentiated product as far as efficacy, tolerability, as far as onset of action. It's a broad spectrum type of product, meaning it's shown in its Phase III, that it works equally well in hyperactivity and in attention.

So, when you look at the totality of the profile, again, based on our Phase III data, clearly we don't have a label yet. So, it's not proper for me to make any comments. We don't have approval. We don't have a label. But I'm talking regarding our data and the data we've seen in our Phase III program and sharing this data with KOLs, with the payers, really have shown us nothing, but excitement as they see this product. They look at it versus what they've seen in the last 10 years, or 11 years or so, and the reformulations of amphetamines or methylphenidate.

So, we continue to be extremely excited about the product and its differentiation in the marketplace. And we think it should become an end up being a major treatment option for patients out there.

Do we expect any -- specifically any sales in December? I mean, we might ship something in December, but if there is anything it won't be anything meaningful. So, our guidance for this year doesn't really reflect much of an 812 or sales.

[David Steinberg, Jefferies]

Thanks.

[Operator]

Thank you. Our next question comes from Annabel Samimy with Stifel. One moment. Your line is now open.

[Annabel Samimy, Stifel]

Hi. Thanks for taking my questions. And Greg, congratulations on your retirement. We're all a little bit jealous. So, just a few questions here. Now that you've had APOKYN for a quarter, can you give us some more specifics around compliance and refill rates, what you can do there? And have you identified any other areas of growth to optimize sales, like can you penetrate the population further? What are the barriers to uptake? Is there anything surprising about any of the WorldMeds products?

And on 812, I'm sure you're very late in the game here with labeling discussions. Are there any points in the label that we should be thinking about in terms of what you're really looking for and what might resonate with physicians and prescribers, in general? Thanks.

[Jack Khattar, President and Chief Executive Officer]

Yeah. Regarding the APOKYN, well, firstly, the total portfolio on the Parkinson's side, no. There are no major surprises since we took the products over. The one negative that has been as the MYOBLOC, we talked about a couple of times, which we also knew about obviously through our due diligence and given that the pandemic at that time was at its highest. A bad moment, so to speak when we did the transaction. So, we were very well aware of the potential impact on MYOBLOC given the brand and what it takes as far as initiation of patients and the necessity for patients to actually visit their doctors and get that injection.

So, overall, we're very pleased with the performance of the products, given the circumstances. APOKYN continue to perform well. So, we are very pleased with its performance and the continued compliance with the patients. Yes, there are some challenges in general within the Parkinson area, because again, given the COVID environment, patient initiation, new patient visits, you have to believe -- it has been adversely impacted. However, despite that we're very pleased with how the brand has been performing and the stability of the brand even showing some -- actually some growth not just stability.

So, we're very excited about APOKYN. We have been working very close with the team on the commercial side, on the salesforce side as well. And we think we've identified a few areas where we potentially could optimize the way we are promoting the product. I don't want to be too specific, but we think there are some opportunities there, I can't really be specific about it. I don't want to make any promises until we see the impact of any optimization that we've done so far. But overall, again, we're very pleased with what we acquired. We're very pleased with how the products are performing and the team is really doing a tremendous job on all of these products.

The next part of the question on 812 and the label, I really cannot make any comments on the label, given that we are in the midst of discussions with the FDA.

[Annabel Samimy, Stifel]

Okay. If I could just follow-up on APOKYN, are you running that for growth or are you running that for cash?

[Jack Khattar, President and Chief Executive Officer]

We run every product we can for growth. And clearly, I mean, we acquired the products not to just make the products. The APOKYN has a huge potential and we're working extremely hard to rejuvenate the brand and get it at a higher level. And more importantly, especially for -- because of the pump that is coming next year. So, we really -- our plan is to grow the franchise, the APOKYN product, the pen, the injection as well as the pump together as an apomorphine franchise to be one of the leading franchises in Parkinson's. That is our plan, which basically includes, of course, having a successful launch on the pump, but also maintain and potentially even grow the APOKYN pen injection.

[Annabel Samimy, Stifel]

Okay. Great. Thank you.

[Operator]

Thank you. Our next question comes from David Amsellem of Piper Sandler. Your line is now open.

[David Amsellem, Piper Sandler]

Hey. Thanks. Just a couple on my end. First, on APOKYN -- and I apologize if I missed this commentary -- but what's your sense of the long-term impact of the sublingual form of apomorphine? And what that could have on the franchise? Do you think that that's something that could come into the franchise, or do you think that overall usage of apomorphine as a modality is low enough where multiple formulations can co-exist? That's number one.

And then, secondly on the pump, what are your thoughts on the AbbVie subcu continuous infusion of the Levodopa pro-drug 951? And the potential for competition there and the extent to which your product, your pump product, and there is can co-exist, love to get your thoughts on the competitive dynamics and market dynamics there. Thanks.

[Jack Khattar, President and Chief Executive Officer]

Yeah. Sure. Starting with the APOKYN and just apomorphine in general and your question about KYNMOBI. And it's really important to point first of all, there are no head-to-head clinical trials. So, this is not a fair kind of comparison. All I can talk about, of course, is our data, our Phase III and the data behind APOKYN.

And what you really see in our label, what you really see the data that APOKYN has been supported with, is truly amazing product with reliable efficacy, efficacy that is not only reliable, it's also fast and it's fairly robust. And what I'm specifically referring to -- I mean, you can see that the product starts working as early as 10 minutes, actually. And about 90% within 20 minutes -- I mean, of patients to get the relief within 20 minutes. That is really very, very strong efficacy.

In addition to that, 95% of the off episodes are resolved. I mean, this is really robust efficacy. It is also something that obviously we know these patients. I mean, they have sometimes very difficult days in maintaining functionality, even getting dressed or getting out of bed. I mean, this is extremely important when you have a data that strong. Also the reliability of the efficacy, meaning from the time you take the first dose. If I remember the number is somewhere around 97% of patients benefit from the first dose and that actually less even through the last dose they take during that day with about an another 90% or 95%. A lot of 90% numbers here, but it really speaks to the robustness and the efficacy of this product. So, we feel very strongly about APOKYN. The position APOKYN will occupy in this category, because of the strong efficacy behind its profile.

Apomorphine is a very good drug obviously. But the delivery of APOKYN in an injection pen is very, very different than the sublingual tablet. That's really all I can see, you guys can read the label on KYNMOBI and the data behind that product.

So, we think we may end up with a very different patient profile for both products. So, there is clearly room for both products to be in the marketplace. And we welcome the extra attention to apomorphine as a drug in general as you have referred to, because I think more and more physicians will realize and will understand that apomorphine as a drug has a major place in therapy in this category, which will later help us against your next question, which is the AbbVie product, which is actually a Levodopa based product not an apomorphine based product.

So, a little bit hard to even talk more about the AbbVie, given that we don't have obviously a label to talk about to see what their profile is and so forth. But in general, we are very excited about the molecule itself, apomorphine. And specifically the way it is delivered in APOKYN and the profile of APOKYN and the efficacy that comes with that product.

[David Amsellem, Piper Sandler]

Okay. That's helpful. If I may just sneak in a follow-up on 812. Could we see any delay in the approval time, given you have some additional readouts coming around the corner, would the FDA want to wait and also if you had your manufacturing inspections?

[Jack Khattar, President and Chief Executive Officer]

Yeah. As far as the data that is coming up, that's in the adult. The NDA, just as a reminder was only for pediatric. So, it's a different patient population. So, at this point, we haven't heard anything or we haven't had any signal from the FDA that they might delay it, because we have a readout on the adult study. So that's what we can say at this point.

And as far as the inspections, manufacturing, again we also haven't heard from the FDA or haven't seen any signals that leads us to believe there will be any delay because of inspections or anything like that.

As I mentioned earlier, I think last earnings call or even before, we have some very good CMOs here that we are working with on the products from the API side, as well as the final dosage form and the finished product. So, we feel very good about our partners in that area from a supplier perspective. However, again, we don't know 100% sure. But all I can say is we haven't seen any signals that lead us to believe that, that will be an area that could be a problem. But we are coming very close to the PDUFA date, so we'll see you very soon, I guess.

[David Amsellem, Piper Sandler]

Okay. Thanks, Jack.

[Jack Khattar, President and Chief Executive Officer]

Sure.

[Operator]

Thank you. [Operator Instructions]

Our next question comes from David Steinberg with Jefferies. Your line is now open.

[David Steinberg, Jefferies]

Thanks. I just had two follow-up questions. The first one is, what led you to -- your thought process behind lowering operating expenses sort of this late in the year.

And then secondly, it looks like you generate, save $100 million here in cash flow give or take and have around $0.75 billion in cash even after paying for WorldMeds. So, you could make a reasonably sizable acquisition. What do you -- what's your current thinking in near-term in terms of on market assets and looking for accretion versus sort of earlier stage products at this point?

And Greg, all the best to you on retirement. Thanks.

[Gregory Patrick, Retiring Chief Financial Officer]

Thanks, David.

[Jack Khattar, President and Chief Executive Officer]

Yeah. I'll take a crack at the operating expenses for the remainder of the year. There are a lot of factors that play into that. And first of all, I'm sure everybody appreciates the fact that with the COVID environment, its been very difficult to manage in general an operation and never mind try to predict what happens next quarter or even the amount of promotion activity you maybe able to do or may not be able to do because of the environment, or certain trends that you might see in prescriptions that you may have to do more in operating expenses and now you may find out that you actually don't need that given that the extended units have done better.

So, there was a lot of factors that get into the operating expenses. Clearly that has impacted and let us to finally believe that we could lower it for the rest of the year. Similarly on R&D. We've had, obviously, to put one trial on hold, the adult trial. Then we have to restart the recruitment. It's very hard to predict how quickly the expenses will pick up or don't pickup. So -- and not just the adult trial, we have so much going in R&D. So, it's not just one trial. Obviously, there is a multiplicity of different trials, different activities that have been impacted also by COVID causing some delays and switching or shifting of certain activities potentially the next year or -- and so forth. So that also impacted operating expenses.

We had some estimates also on the integration and so forth that the US WorldMeds acquisition and on the Navitor program. So, all these estimates ended up being favorable, which led in totality to the lowering of the operating expenses for this year.

[Gregory Patrick, Retiring Chief Financial Officer]

Yeah. David, let me just build on Jack's comments just for a second. The adjustment of our SG&A expenses for the year is really -- it continues to recognize the secular acceleration in SG&A expenses between the second quarter, third quarter and then the third into the fourth.

What the adjustment really just does is, it acknowledges exactly what Jack just said. The expenses came in later in the third quarter. We're still projecting a significant increase between the third and the fourth. And just if you push the math, you'll see that the run rate in the fourth quarter is right in line, perhaps a little bit down from what we projected and what we discussed last quarter.

So, there really isn't any change in thinking, change in philosophy or change in strategy. It's just a matter of putting the favorability in the third quarter and then titrating the guidance for the year. That's it.

[Jack Khattar, President and Chief Executive Officer]

And regarding this -- the second question, the cash position and as far as M&A activity or business development activities, as I mentioned in my prepared remarks, we continue to be very active. So, we haven't slowed down and looking at potential opportunities here, whether it's in licensing, whether it's acquisitions, whether it's a product deal or a company deal. So, we continue to have the same focus, the same drive, the same intensity as far as utilizing our cash, putting it to use for future growth. So -- and we're looking at assets that could be commercial, assets are in later stage.

And, of course, we talked about that also few times regarding our pipeline, hopefully as 812 moves on, as the pump moves on, and they get to the marketplace, hopefully in the next 12 months or so. Both of them clearly will have to reload the pipeline, and we're working pretty hard to get other assets in addition to 820 and 817, which are the two key assets at this point in the pipeline.

So, we are hard at work. Looking at other opportunities. And it is -- we're agnostic. It could to be neurology. It could be psychiatry. And we're also open to other specialty areas, if they do come across our desk and they are fairly opportunistic areas that we could look at.

[Operator]

Thank you. And I am showing no further questions in the queue at this time. I'd like to turn the call back to Jack Khattar for any closing remarks

[Jack Khattar, President and Chief Executive Officer]

Thank you. The year 2020 is shaping up to be one of the most successful years since our inception. We are looking at achieving a cornerstone milestone of $500 million or more in net sales and starting to establish another chapter of growth with a major presence in the psychiatry space.

Our employees continue to execute well across many areas of our business. They have delivered solid operating results during the first three quarters of the year, with a strong 29% growth in revenues and 21% growth in operating earnings compared to last year.

Soon, we will be entering 2021 in a strong position to launch SPN-812 in January, and to potentially get approval and launch SPN-830 by the end of the year. These two late-stage assets represent two important growth drivers for the company. And we are very focused on driving them towards commercialization and market success.

Thank you for joining us this morning. We look forward to finishing strong in 2020, and to setting the stage for an exciting 2021.

[Operator]

Ladies and gentlemen, thank you for your participation on today's conference. This does conclude your program. You may now disconnect.