Company: SUPN
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001356576-25-000017
Chunk: 136

Company: SUPERNUS PHARMACEUTICALS, INC.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 136
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 $106,657 $12,995 $164,660 ProvisionProvision for current year sales22,928 406,329 65,896 495,153 Adjustments relating to prior year sales(213)1,672 31 1,490 Total provision22,715 408,001 65,927 496,643 Less: Actual payments/credits(10,433)(417,674)(68,203)(496,310)Balance at December 31, 2023$57,290 $96,984 $10,719 $164,993 

Accrued Product Returns and Rebates 

The accrued product returns balance decreased from $57.3 million as of December 31, 2023 to $53.4 million as of December 31, 2024. This decrease was primarily due to $11.9 million of adjustments in the estimated provision for product returns related to prior year sales offset by higher net product sales and timing of related return activity. The majority of the adjustment is attributable to Qelbree, reflecting favorable actual returns experienced in 2024. As a result, the Company changed its estimated provision for product returns based on the most recent experience.

The accrued product rebates balance increased from $97.0 million as of December 31, 2023 to $115.3 million as of December 31, 2024 due to timing of payments associated with government programs.

Provision for Product Returns and Rebates 

The provision for product returns decreased from $22.7 million in 2023 to $5.7 million in 2024. The decrease was primarily due to the aforementioned $11.9 million of adjustments in the estimated provision for product returns related to prior year sales.  

The provision for product rebates decreased from $408.0 million in 2023 to $387.8 million in 2024. The decrease was primarily attributable to lower Trokendi XR sales and favorability in commercial programs, partially offset by higher Qelbree gross sales. 

Sales Discounts

The provision for sales discounts increased from $65.9 million in 2023 to $69.5 million in 2024 primarily attributable to higher net product sales in 2024 compared to 2023.

Adjustments related to prior year sales 

Adjustments related to prior year sales in 2024 of $14.0 million was less than 3% of both net product