Good afternoon, and welcome to Supernus Pharmaceuticals' Q2 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode, and later we will conduct a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Peter Vozzo of ICR Westwicke, investor relations representative for Supernus Pharmaceuticals. You may begin.
Thank you, Jason. Good afternoon, everyone, and thank you for joining us today for Supernus Pharmaceuticals' Q2 2022 financial results conference call. Today, after the close of market, the company issued a press release announcing these results. On the call with me today are Supernus' Chief Executive Officer, Jack Khattar, and Chief Financial Officer, Tim Dec. 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 latest SEC filings.
Actual results may differ materially from those projected in these forward-looking statements. For the benefit of those who may be listening to the replay, this call is being held and recorded on 4 August 2022. 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.
Thank you, Peter. Good afternoon, everyone, and thanks for taking the time to join us as we discuss our 2022 Q2 results. During the first half of 2022, we continued to execute on our long-term growth strategy, focusing on successfully transitioning from our legacy and mature products to our growth products. For the first half of this year, total revenues were $322.6 million, representing an 18% increase over the same period last year. Adjusted non-GAAP operating earnings were $65.7 million, a 5% increase over the first half of last year, reflecting continued significant investment in Qelbree and its launch activities. Regarding Qelbree, we received approval for adult ADHD in April 2022. We launched the product in late May, expanding the market opportunity for Qelbree into the largest segment of the ADHD market.
Qelbree represents true innovation in the adult market as the first novel non-stimulant to be introduced in 20 years. As mentioned previously, according to IQVIA Xponent 52-week data, the adult market represents approximately 68% of the total market's prescriptions. The adult segment has been growing at a faster rate than the pediatric market and tends to be less seasonal. Qelbree's launch continues to progress well with increased momentum in prescription growth and shipments. During the Q2 of 2022, total IQVIA prescriptions for Qelbree reached 62,938, representing an increase of 33% compared to the Q1 of 2022. Prescriptions in the most recent month of June reached 23,403, the highest monthly total since the launch of the product.
Qelbree continues to expand its base of prescribers with over 9,276 prescribers in the Q2 of 2022, up from 6,900 prescribers in the Q1 of 2022. The product is supported by a sales force of approximately 195 sales representatives calling on pediatricians, child and adult psychiatrists. The company will be increasing its commercial spend in the Q3 of this year as Qelbree builds more momentum behind the adult launch and our preparation for the upcoming back-to-school season. Regarding GOCOVRI, the product delivered another quarter of solid growth with net sales reaching $24.7 million in the Q2 of 2022, representing a 23% increase compared to the $20.1 million reported by Adamas in the Q2 in 2021.
Total prescriptions reached 10,929 in the Q2 of 2022, growing by approximately 16% over the same period last year. Moving on to the pipeline, we continue to work closely with the FDA as it reviews the new drug application for SPN-830, our infusion device for the continuous treatment of motor fluctuations in Parkinson's disease. The company is preparing for the commercial launch of SPN-830 in the Q1 of 2023, assuming timely approval by the FDA. The PDUFA target action date for SPN-830 is in early October of this year.
For SPN-820, our first-in-class orally active mTORC1 activator, we continue to enroll patients in a phase II multi-center randomized double-blind placebo-controlled study in adults with treatment-resistant depression. The study will examine the efficacy and safety of SPN-820 over the course of five weeks of treatment in approximately 270 patients. The primary outcome measure is a change from baseline to end of treatment period on the Montgomery-Åsberg Depression Rating Scale total score, a standard depression rating scale. We are on track to initiate an open-label phase II clinical study with SPN-817 in the Q4 of this year in patients with treatment-resistant seizures. SPN-817 represents a novel mechanism of action for an anticonvulsant and utilizes synthetic form of Huperzine A, which is a potent acetylcholinesterase inhibitor with pharmacological activities in CNS conditions such as epilepsy.
Oxtellar XR continues to perform well, delivering a strong quarter with net product sales of $30 million, a 20% increase compared to the same period last year, while net product sales of Trokendi XR were approximately $72 million, down from $79 million last year. On APOKYN, the company continues to monitor the situation surrounding the approved generic cartridge, and to date, has not seen a meaningful impact on our business. Finally, we continue to be active in corporate development, looking for strategic opportunities to further strengthen our future growth and leadership position in CNS. With that, I will now turn the call over to Tim.
Thank you, Jack. Good afternoon, everyone. As I review our second quarter 2022 results, please refer to today's press release. Total revenue for the Q2 of 2022 was $170.1 million, a 20% increase compared to $141.3 million in the same quarter last year. Total revenue in the Q2 of 2022 was comprised of net product sales of $165.5 million and royalty revenue of $4.6 million. The increase was primarily due to net product sales of GOCOVRI from the acquisition of Adamas in November 2021 and growth in net product sales of Qelbree and Oxtellar XR.
For the Q2 of 2022, combined R&D and SG&A expenses were $116.9 million, as compared to $85 million for the same period in 2021. The increase in expenses due to activities to support the launch of Qelbree and cost to support GOCOVRI. Amortization of intangible assets for the Q2 of 2022 were $20.6 million compared to $6 million for the same period in 2021. The increase is due to the Adamas acquisition. Operating earnings on a GAAP basis for the Q2 of 2022 were $11.3 million, as compared to $34.1 million for the same quarter in 2021.
The decrease in GAAP operating earnings is primarily attributable to the aforementioned amortization of intangibles associated with Adamas acquisition and higher expenses to support the launch of Qelbree, as well as costs associated with GOCOVRI. On a non-GAAP basis, which excludes amortization of intangibles, share-based compensation, contingent consideration and depreciation, adjusted operating earnings were $37.6 million, compared to $37.4 million in the Q2 of 2021. As I mentioned on a previous call, the company adopted a new accounting standard related to the treatment of convertible debt instruments in January of this year using the modified retrospective approach. The company is now required to use the if converted method for the convertible debt. Based on this new standard, there is now approximately 6.8 million additional shares in the diluted EPS calculation.
GAAP net earnings were $7.9 million for the Q2 of 2022 or $0.14 per diluted share, compared to $23.7 million or $0.43 per diluted share in the same period last year. Total revenue for the six months ended 30 June 2022 was $322.6 million, an 18% increase compared to $272.3 million in the same period last year. Total revenue was comprised of net product sales of $313 million and royalty revenue of $9.6 million. This increase was primarily due to net product sales of GOCOVRI from the acquisition of Adamas in November 2021 and growth in net product sales of Qelbree and Oxtellar XR, offset in part by a decline in net product sales of Trokendi XR and APOKYN.
For the six months ended June 30, 2022, combined R&D and SG&A expenses were $228.2 million, as compared to $180.7 million for the same period in 2021. The increase in expenses is primarily due to the activities to support the launch of Qelbree and costs to support GOCOVRI Amortization of intangible assets for the first six months ended 30 June 2022 was $41.3 million, compared to $12 million for the same period in 2021. Again, the increase is due to the Adamas acquisition. Operating earnings on a GAAP basis for the first six months ended 30 June 2022 was $13.3 million, as compared to $47.3 million for the same period in 2021.
The decrease in GAAP operating earnings is primarily attributable to the aforementioned amortization of intangibles associated with the Adamas acquisition, higher expenses to support the Qelbree launch, as well as costs associated with GOCOVRI . Other income expense for the first six months ended 30 June 2022 was $12.7 million of income. As compared to $5.2 million of expense in the first six months of 2021. This change, as discussed on our prior call, was primarily due to a $12.9 million gain recognized on our share of a distribution from the sale of a subsidiary of Navitor. Income tax for the first six months ended 30 June 2022, was a tax benefit of $7.4 million, as compared to income tax expense of $12.7 million for the same period in 2021.
Again, as discussed on our last call, this benefit was due to a corporate reorganization of the Adamas entities in Q1 of this year that impacted certain state apportionment factors, which resulted in a favorable income tax of approximately $16 million. On a non-GAAP basis, which excludes amortization intangibles, share-based compensation, contingent consideration and depreciation, adjusted operating earnings were $65.7 million compared to $62.7 million in the same period of 2021. GAAP net earnings was $33.5 million for the first six months ended 30 June 2022, or $0.57 per diluted share, compared to $29.4 million or $0.54 per diluted share in the same period last year.
As of 30 June 2022, the company had approximately $508.2 million in cash equivalents, and marketable securities, compared to $458.8 million as of 30 December 2021. The increase is primarily due to cash generated from operations. For the full year 2022, the company reiterates its prior financial guidance for total revenue, combined R&D and SG&A expenses, and GAAP and non-GAAP operating earnings. As such, we expect total revenues to range from $640 million-$680 million, comprised of net product sales and royalty revenue. For the full year 2022, we expect combined R&D and SG&A expenses to range from $460 million-$490 million.
This range includes the significant increase in marketing spend in the Q3 that Jack mentioned that relates to the continued support of Qelbree and its launch in the adult market. Overall, we expect full year 2022 GAAP operating earnings to range from $20 million-$40 million and non-GAAP operating earnings to range from $130 million-$165 million. With that, I will now turn the call over to the operator for Q&A.
Thank you, Tim. At this time, we will conduct a question and answer session. As a reminder to everybody, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from David Amsellem of Piper Sandler. Your line is now open.
Hey, thanks. Just had a couple. First on Qelbree, can you just talk about the gross to net and specifically how we should think about the extent to which the gross to net may moderate as the year progresses? Related to that, talk about contracting activities and, you know, just where things stand with the big PBMs. That's the first question. Then the second question is on Trokendi. I know it might be a little bit early to talk about it, but you know, the market dynamics are still kind of fluid here in terms of generic presence. Can you talk about how you're thinking about erosion of Trokendi upon generic market formation early next year?
What are your latest expectations for competitive dynamics there? Thank you.
Yeah, sure. Let me take the first one regarding Qelbree and the gross to net. You may recall, or most of the folks might recall when, you know, about a quarter ago, we said by the time we launch the adult, we would have, you know, we would like to be somewhere in the 50%-55% gross to net. Actually, we're not too far off. We're a little bit more in the very low 60s%, so to speak, at this point, and that is due to the fact we haven't been able to finalize negotiations on one of the key, you know, contracts as far as the PBMs are concerned.
We're getting closer negotiation-wise, so ultimately, regarding your question as to how we see it progressing through the rest of the year, I mean, certainly, we would shoot for and target, and what we're trying to target is somewhere in the 50%-55%, you know, could be, you know, next quarter, or definitely by the end of the Q4 . Which would be our target on an ongoing basis. If you remember, I mean, that's really where we see this going on an ongoing basis for Qelbree. As far as, you know, the contracting activities I mentioned, I mean, the other big PBM, we continue our negotiations with them, and I think we're getting to potentially a more reasonable demand here, where we can actually have a meaningful discussion. Before that, our positions were very, very far apart.
We're making progress. It is slower than we would like it to be, but nevertheless, our position as far as, you know, how we approach the business and how we build it does not really change much.
We would rather help our patients get access to our medications through co-pays and patient assistance program than just, you know, paying exorbitant rebates that really don't add much value, to be honest with you. That's our position, and we continue to grow the business, and we're very, very pleased with the growth and the prescriptions and so forth, and we have no problem at all continue to fund the business that way and help our patients. In the end, really show everybody that this is a product that's gonna be heavily utilized. There is a major need in the market for a product as unique as Qelbree. On Trokendi XR, I mean, you said it right.
I mean, it's one of the difficult questions, obviously, that as time goes on as to how we formulate for next year and how do we model. At this point, we've been always looking for next year, and we've guided folks mostly to look at a 90% erosion over 12 months, and which is your typical type of erosion, for a product like this that is heavily retailed, mass market, so to speak, like migraine. Brand loyalty doesn't tend to be, you know, too sticky, so to speak, or very high from that perspective, unlike other potential areas in neurology where there might be a little bit more higher brand loyalty. So therefore, we would like people to look at that as more like a base case scenario.
Of course, as time goes on, and as we get closer to the January and definitely in February next year when we talk about guidance and so forth, hopefully we will give people much better color on it and a little bit more clarity, as we gain more competitive information on potentially the number of generics, the timing of these generics, and more importantly, the number of SKUs that are going to be, you know, penetrated by the generics. So, stay tuned for more, and hopefully we can give more meaningful clarity as time goes on that.
Thank you, David, for your question. Our next question comes from Ken Cacciatore from Cowen. Your line is now open.
Thanks so much. Jack, you've seen more product launches than many pharma execs. Now that you've had a little bit of time with Qelbree, your understanding the where the pricing roughly is gonna shake out in the coverage and the market opportunity and how it's performing, can you talk about where what you think this could be? Is this easily over a half a billion-dollar drug? Is the pathway here fairly clear in your mind as you've had this experience with it? On the apomorphine pump, I was wondering if you could help characterize the patient that this would be useful for. Maybe talk a little bit and compare and contrast to Duodopa, and maybe remind us of Duodopa pricing.
Is that something that you might be thinking about, if we're able to successfully get the pump on the market? Thanks so much.
Sure. Yeah, I mean, regarding Qelbree and what we've seen so far and also the different launches we've experienced over the years, even specifically in ADHD, given our heritage in ADHD and given that we had been involved in products like Adderall XR and Intuniv and Mydayis and so many other products in this space. Qelbree is truly a very unique product, and it's proven to be that way through the feedback that we have been getting from the physicians and the patients about the product. This is not a Strattera. This is not just another norepinephrine reuptake inhibitor. Actually, as I mentioned many times, and we continue to create more data actually showing that the mechanism of action of viloxazine is very different than atomoxetine.
There are some similarities, but it's really a different molecule that has, you know, a much higher activity on the serotonin side and so forth. That's why probably its clinical profile is much, you know, very different than atomoxetine in being a good antidepressant, for example, historically for people who know about the molecule. Qelbree is truly unique as a novel non-stimulant, and it's starting to resonate with folks. We're extremely excited about the upswing that we're starting to see a meaningful, you know, increase in the June monthly prescription. I mean, we're up to 23,000 prescriptions in the month of June. We're really building significant momentum into the back to school season, which, you know, will be upon us very, very soon.
All that together with the adult launch as well as our direct-to-consumer campaign, which will intensify in the Q3 and that's why our commercial spend is gonna be, you know, fairly significant in the third quarter. We're really giving every shot, every possible opportunity here for the product to be as big as we think. How big will the product be, to your question? I mean, this is a huge market. One of the interestingly good news about the market, it's been growing at a much faster rate than we expected, even way back planning, you know, for the launch of Qelbree. The ADHD market has been growing much faster than we thought. A lot of activity in the market.
Even if you take a penetration of 5%-10% market share, you know, that's close to the billion-dollar opportunity. Assuming, you know, something like $175-$200 or $250 net price, the math is fairly straightforward, you know, as to how big this product can be. What makes us believe that we can get somewhere between 5% and 10%? Well, historically, Strattera was at around 7% market share. It was as high as 19% at some point, but it stabilized and ended up at an equilibrium of about 6%-7% market share. Intuniv in the 4%-6%. Given the profile of Qelbree and the feedback we're getting, we believe we should be able to do definitely something like this, if not even higher than that.
Therefore, we think these are reasonable expectations, you know, behind the product for a product like this. That's why you do see us, you know, very committed to the product. We're all in on it as far as investment is concerned and the launch of the product in both pediatric and adult. Regarding the second product on the pump, you know, the infusion device for apomorphine. This product, and of course, it's gonna heavily depend on where we end up with the label as the FDA continues to review, you know, the NDA. But certainly, there is a very big gap in the marketplace here for more advanced patients in Parkinson's who do get several off episodes, you know, during the day, and they're not satisfied with a lot of the current products on the marketplace.
Therefore, they could really use a lot of help with a continuous infusion of apomorphine throughout the day to help them in managing these episodes before they resort to a last, you know, alternative, basically, which is invasive surgery, whether it's deep brain stimulation or even, you know, the Duopa type of product, which is also fairly, you know, invasive as well. From that perspective, we see our product occupying a space between right before, you know, the deep brain stimulation, right before these invasive, procedures, for patients who have a little bit more advanced Parkinson's and could really benefit from a drug, which is really a very good drug, apomorphine, on a continuous and a subcutaneous, you know, pump. Pricing point, you know, from a pricing perspective, all I can tell you is what Duopa is.
I mean, Duopa is in the $80,000-$90,000, you know, annual cost per patient. You know, we haven't formalized and finalized our pricing strategy yet and so forth. That's something we will refrain from making a comment on, but that's where Duopa is, and has been.
Thank you, Ken, for your question. At this time, there are no further questions, so I would like to turn it back now to Jack for closing remarks.
Thank you. In concluding our call this afternoon, I would like to emphasize that Qelbree's and GOCOVRI's growth are our top priority. We are excited about Qelbree's increased momentum behind the adult launch and the preparation for the upcoming back-to-school season. Similarly, we are pleased with GOCOVRI's performance and continued growth since the completion of the Adamas integration, and we look forward to building on that momentum for the remainder of the year. I would like to thank our employees for delivering a solid quarter with record revenues for Supernus and look forward to updating everyone through the second half of the year. Thank you.
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.