What happened

Shares of Supernus Pharmaceuticals (NASDAQ:SUPN), a profitable commercial-stage biopharma focused on diseases of the central nervous system, dropped 11% as of 2:35 p.m. EDT on Wednesday. The selling is attributable to the release of the company's mixed second-quarter results.

So what

Here's an overview of the headline numbers from Supernus' second quarter:

  • Revenue increased 31% to $99.5 million. The gain was driven by a 36% jump in sales of the epilepsy drug Trokendi XR and a 19% rise in Oxtellar XR. By contrast, Wall Street was looking for $101 million in total revenue.
  • GAAP earnings per share jumped 78% to $0.57. This result was far higher than market watchers' prediction of just $0.43.
Light-green dollar signs in drug packets

Image source: Getty Images.

Management also took the opportunity to adjust its financial guidance for the full year:

  • Sales are expected to land between $385 million and $400 million. This is an increase over its prior guidance range of $375 million to $400 million in total sales.
  • Operating earnings are forecast to come between $130 million and $140 million. This is a $5 million boost over its previous range.

Despite posting good-looking results and modestly boosting guidance, traders appear to be squarely focused on the slight miss on the top line. 

Now what

Supernus has been a red-hot stock for many years -- shares are up 621% since 2013 -- so it isn't too surprising to see it taking a step back in light of the mixed quarterly results. However, revenue and earnings growth of 31% and 78%, respectively, are very strong in absolute terms, so I think that long-term investors should continue to feel good about this company's chances moving forward.