Rockville’s Supernus Releases “Surprise” Financial Results After Ransomware Attack
With profits surpassing each previous year, investors and analysts were anticipating what would come next for fast-growing biotech Supernus Pharmaceuticals, Inc (NASDAQ: SUPN). The company’s 2021 Annual financial report was especially important after it acquired California-based Adamas Pharmaceuticals, Inc to increase its treatments in Parkinson’s disease.
Instead of starting off the year with an annual financial meeting highlighting the company’s successes and accomplishments, Supernus was caught off-guard by a ransomware attack that hit its accounting system.
At the same time, Supernus was dealing with an attack in November 2021, management was also closing its deal to purchase Adamas. Because of the attack, full year financial results that meet accounting standards could not be published in time.
While Rockville-based Supernus said the attack had no impact on its core business, it caused delays greater than anticipated in its accounting system. Last month on March 17, the company announced it would file its annual report by April 4.
The next report issued Full Year 2022 Financial Guidance (GAAP) and noted that a new accounting system wouldn’t be ready till fall.
During its annual meeting, Timothy C. Dec, Senior Vice President of Finance said, “While the attack had no significant impact on the business or caused any long-term disruption to the company's operations, it did impact the long-term viability of our accounting system. The tech required us to restore securely backed up data into its legacy ERP system, manually process certain functions which were previously automated, and its legacy ERP system, and simultaneously accelerate its planned transition to upgrade to a more modern ERP system.”
However, Supernus released its audited financial results mid-month showing a profit once again. The company’s total revenue of $579.8 million was in line with preliminary results, although net earnings fell $73.6 million to $53.4 million for the year due to amortization of intangible assets and share-based compensation.
The company still maintains a Full Year 2022 Financial Guidance of total revenues between $640 and $680 million.