Cost of Capital Analysis : Supernus Pharmaceuticals Company

50

25

15

10

5

LEGENDS 12 Mos Mov Avg

. . . . Rel Price Strength Shaded area indicates recession

18900 VOL.

(thous.)

SUPERNUS PHARMA. NDQ--SUPN 57.40 42.2 2.05 Nil 3 Average 3 Average 4 BelowAverage

1.00

Financial Strength B+

Price Stability 10

Price Growth Persistence 100

Earnings Predictability 15

ANNUAL RATES

of change (per share) 5 Yrs. 1 Yr. Sales 146.5% 37.0% ‘‘Cash Flow’’ -- -32.5% Earnings -- -38.5% Dividends -- -- Book Value 15.5% 36.0%

Fiscal Year

QUARTERLY SALES ($mill.) Full Year1Q 2Q 3Q 4Q

12/31/16 44.2 51.6 56.8 62.4 215.0 12/31/17 57.6 75.8 80.4 88.4 302.2 12/31/18 90.4 12/31/19

Fiscal Year

EARNINGS PER SHARE Full Year1Q 2Q 3Q 4Q

12/31/15 .02 .04 .08 .14 .28 12/31/16 .08 .21 1.18 .29 1.76 12/31/17 .19 .32 .29 .26 1.08 12/31/18 .49 .46 .46 .52 12/31/19

Cal- endar

QUARTERLY DIVIDENDS PAID Full Year1Q 2Q 3Q 4Q

2015 -- -- -- -- -- 2016 -- -- -- -- -- 2017 -- -- -- -- -- 2018 -- --

INSTITUTIONAL DECISIONS

3Q’17 4Q’17 1Q’18 to Buy 132 121 158 to Sell 137 116 157 Hld’s(000) 56483 49850 50655

ASSETS ($mill.) 2016 2017 3/31/18 Cash Assets 90.1 140.0 489.7 Receivables 41.5 65.6 67.9 Inventory 16.8 16.3 19.1 Other 3.0 6.6 6.5 Current Assets 151.4 228.5 583.2

Property, Plant & Equip, at cost 12.4 14.5 - -

Accum Depreciation 8.1 9.4 - - Net Property 4.3 5.1 5.0 Other 153.9 190.9 237.0 Total Assets 309.6 424.5 825.2

LIABILITIES ($mill.) Accts Payable 8.1 6.8 3.3 Debt Due .0 .0 .0 Other 72.6 116.2 115.8 Current Liab 80.7 123.0 119.1

LONG-TERM DEBT AND EQUITY as of 3/31/18

Total Debt $318.2 mill. Due in 5 Yrs. NA LT Debt $318.2 mill. Including Cap. Leases NA

(47% of Cap’l) Leases, Uncapitalized Annual rentals NA

Pension Liability None in ’17 vs. None in ’16

Pfd Stock None Pfd Div’d Paid None

Common Stock 51,634,000 shares (53% of Cap’l)

16.68 9.05 11.47 23.30 27.10 50.04 61.10 High 4.30 4.45 7.09 7.97 9.51 23.10 34.90 Low

© VALUE LINE PUBLISHING LLC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019/2020

SALES PER SH -- -- .05 .30 2.84 2.95 4.30 5.89 -- ‘‘CASH FLOW’’ PER SH -- -- d1.48 d2.05 .54 .32 1.88 1.28 -- EARNINGS PER SH -- -- d2.72 d2.60 .37 .28 1.76 1.08 1.90 A,B 2.57 C/NA DIV’DS DECL’D PER SH -- -- -- -- -- -- -- -- -- CAP’L SPENDING PER SH -- -- .02 .04 .01 .04 .03 .04 -- BOOK VALUE PER SH -- -- 1.88 .84 1.66 2.43 3.84 5.21 -- COMMON SHS OUTST’G (MILL) -- -- 30.62 39.98 42.97 49.01 49.97 51.32 -- AVG ANN’L P/E RATIO -- -- -- -- 24.0 51.6 10.8 33.3 30.2 22.3/NA RELATIVE P/E RATIO -- -- -- -- 1.27 2.66 .59 1.67 -- AVG ANN’L DIV’D YIELD -- -- -- -- -- -- -- -- -- SALES ($MILL) -- .8 1.5 12.0 122.0 144.4 215.0 302.2 -- Bold figures OPERATING MARGIN -- NMF NMF NMF 20.6% 13.4% 26.6% 35.6% -- are consensus DEPRECIATION ($MILL) -- .9 .9 .7 .9 1.7 2.9 8.2 -- earnings NET PROFIT ($MILL) -- d23.2 d46.3 d82.7 22.5 14.0 91.2 57.3 -- estimates INCOME TAX RATE -- -- -- -- -- 6.4% -- 43.1% -- and, using the NET PROFIT MARGIN -- NMF NMF NMF 18.4% 9.7% 42.4% 19.0% -- recent prices, WORKING CAP’L ($MILL) -- 30.6 68.7 70.8 81.4 49.9 70.7 105.5 -- P/E ratios. LONG-TERM DEBT ($MILL) -- 22.7 11.1 34.4 26.9 7.2 4.2 -- -- SHR. EQUITY ($MILL) -- 9.4 57.6 33.5 71.4 118.9 191.8 267.5 -- RETURN ON TOTAL CAP’L -- NMF NMF NMF 25.4% 11.6% 47.9% 21.4% -- RETURN ON SHR. EQUITY -- NMF NMF NMF 31.5% 11.8% 47.6% 21.4% -- RETAINED TO COM EQ -- -- NMF NMF 31.5% 11.8% 47.6% 21.4% -- ALL DIV’DS TO NET PROF -- -- -- -- -- -- -- -- -- ANo. of analysts changing earn. est. in last 25 days: 0 up, 0 down, consensus 5-year earnings growth not available. BBased upon 7 analysts’ estimates. CBased upon 5 analysts’ estimates.

INDUSTRY: Drug

TOTAL SHAREHOLDER RETURN Dividends plus appreciation as of 5/31/2018

3 Mos. 6 Mos. 1 Yr. 3 Yrs. 5 Yrs.

44.86% 49.07% 49.87% 296.27% 715.48%

E.B.

July 6, 2018

BUSINESS: Supernus Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and com- mercializing products for the treatment of central nervous system diseases. The company currently markets Trokendi XR(R) (extended-release topiramate) for the prophylaxis of migraine and the treatment of epilepsy, and Oxtellar XR(R) (extended-release oxcarbazepine) for the treatment of epi- lepsy. It launched Oxtellar XR and Trokendi XR in 2013 for the treatment of epilepsy and launched Trokendi XR for the prophylaxis of migraine headache in adolescents and adults in April 2017. Supernus is also developing several product candidates to address large market opportunities in psychia- try, including SPN-810 (molindone hydrochloride) for the treatment of impulsive aggression in ADHD patients and SPN-812 (viloxazine hydrochloride) for the treatment of ADHD. Has 422 employees. C.E.O. & President: Jack A. Khattar. Address: 1550 East Gude Drive, Rockville, MD 20850. Tel.: (301) 838-2500. Internet: www.supernus.com.

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