SUPERNUS PHARMACEUTICALS, INC.SUPN
SUPERNUS PHARMACEUTICALS, INC. Leases Disclosure
Leases
Office Space and Fleet Vehicle Leases
The Company has operating leases for its headquarters lease, certain office space, certain office equipment and its fleet vehicles. With respect to the fleet vehicle leases, given the volume of individual leases involved in the overall arrangement, the Company applies a portfolio approach to effectively account for the operating lease assets and liabilities. The Company made an accounting policy election, by class of underlying asset, to combine the lease and non-lease components for the headquarters, office space, office equipment and fleet vehicle leases.
The Company's headquarters lease commenced on February 1, 2019 (the Commencement Date) and will continue until April 30, 2034, unless terminated earlier in accordance with the terms of the lease. The lease includes options to extend the lease for up to ten years.
As part of the Adamas Acquisition, the Company acquired a lease for office space. Adamas' operating lease for the office space term expired on April 30, 2025.
Lease obtained from Sage Acquisition
As part of the Sage Acquisition, the Company acquired a lease for office space in a multi-tenant building located in Cambridge, Massachusetts and classified this as an operating lease. Sage's office space lease term continues through February 28, 2030 unless terminated earlier in accordance with the terms of the lease. The lease includes an option to extend the lease for an additional five-year period. See Note 3, Sage Acquisition, for the further discussion on the acquired lease asset and assumed lease liability.
Contract Manufacturing Lease
The Company has a contract manufacturing agreement with Merz Pharma GmbH & Co. KGaA (Merz), for the manufacture and supply of rimabotulinumtoxinB finished products (Merz Agreement). The Merz Agreement will expire in July 2027 unless the Company and Merz mutually agree to extend the terms. The Merz Agreement may not be terminated for convenience.
Under the terms of the original agreement, the Company was required to purchase a minimum quantity of MYOBLOC finished products on an annual basis. This minimum purchase requirement represents the in-substance fixed contract consideration associated with the dedicated manufacturing facility which the Company accounted for as an embedded lease. In October 2021, the Company entered into an amendment to the Merz Agreement which increased the price of the annual purchase commitment of MYOBLOC from €3.0 million to approximately €3.9 million. A further amendment to the Merz Agreement was executed in July 2025, which included among other things, the removal of the annual minimum purchase requirement of MYOBLOC, and the Company's agreement to pay a nonrefundable annual fee of €3.0 million to cover general maintenance and reservation costs for the manufacturing facilities.
The Company made an accounting policy election, by class of underlying asset, to not combine lease and non-lease components for the manufacturing facility. A portion of the in-substance fixed contract consideration was allocated to the lease component based on the stand-alone selling price. Accordingly, the Company classified and accounted for the embedded lease as an operating lease.
Operating lease assets and lease liabilities as reported on the consolidated balance sheets are as follows (dollars in thousands):
| Year Ended December 31, | |||||||||||||||||
| Balance Sheet Classification | 2025 | 2024 | |||||||||||||||
| Assets | |||||||||||||||||
| Operating lease assets | $ | 26,712 | $ | 24,477 | |||||||||||||
| Total lease assets | $ | 26,712 | $ | 24,477 | |||||||||||||
| Liabilities | |||||||||||||||||
| Lease liabilities, current | |||||||||||||||||
| Operating lease liabilities, current portion | $ | 10,612 | $ | 6,889 | |||||||||||||
| Lease liabilities, long-term | |||||||||||||||||
| Operating lease liabilities, long-term | Operating lease liabilities, long-term | 30,365 | 27,382 | ||||||||||||||
| Total lease liabilities | $ | 40,977 | $ | 34,271 | |||||||||||||
The components of operating lease costs are as follows (dollars in thousands):
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost: | |||||||||||||||||
| Fixed lease cost | $ | 9,914 | $ | 8,945 | $ | 8,258 | |||||||||||
| Variable lease cost | 5,816 | 5,475 | 5,998 | ||||||||||||||
| Total | $ | 15,730 | $ | 14,420 | $ | 14,256 | |||||||||||
Supplemental cash flow information related to leases is as follows (dollars in thousands):
______________________________
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for operating leases | $ | 18,484 | $ | 17,283 | $ | 17,112 | |||||||||||
Lease assets obtained for new operating leases (1) | 10,215 | 3,662 | 7,170 | ||||||||||||||
(1) Includes right-of-use asset associated with the acquired Sage headquarters lease. Refer to Note 3, Sage Acquisition.
The weighted average lease term and weighted average discount rate for operating leases are as follows:
Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted-average remaining lease term (years) | 5.9 | 7.0 | ||||||
| Weighted-average discount rate | 5.3 | % | 4.9 | % | ||||
Future minimum lease payments under noncancellable operating leases as of December 31, 2025, are as follows (dollars in thousands):
| Operating Leases | |||||
| Year ending December 31: | |||||
| 2026 | $ | 12,413 | |||
| 2027 | 7,198 | ||||
| 2028 | 6,547 | ||||
| 2029 | 6,296 | ||||
| 2030 | 3,666 | ||||
| Thereafter | 10,878 | ||||
| Total future minimum lease payments | 46,998 | ||||
Less: Imputed interest (1) | (6,021) | ||||
| Present value of lease liabilities | $ | 40,977 | |||
(1) Calculated using the interest rate for each lease.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Apr 13, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.