Supernus Pharmaceuticals Inc (NASDAQ:SUPN) develops products that are focused on treating diseases related to the central nervous system. Since its listing on the exchange in 2012, the company’s stock has generated returns of almost 600% for investors.
A big reason for the stock’s exceptional performance has been its tremendous sales growth. In its 2013 fiscal year the company had revenue of just $12 million, which grew to $215 million in 2016, almost 18 times its sales from just three years ago. In its most recent quarter, the company has still managed to see strong year-over-year growth with sales increasing by 47%.
Equally important, the company’s bottom line has also been making significant improvements as well with net losses turning into profits the last two years. In its most recent fiscal year, the company was able to achieve an impressive 42% profit margin with over $91 million of revenue making it to the company’s bottom line.
Not unlike tech companies, pharmaceutical companies also can see their sales and stock prices take off. Back in April, the company received FDA approval for its Trokendi XR drug, which is used for treating migraines. Since that announcement, the share price has seen a 37% rise.
Currently the stock trades at a price to earnings ratio of over 20 which is not very high for a company that has seen this much growth, this quickly. As the stock continues to climb it may be a good idea to buy now before the share price gets more expensive over time.
