Form 4: Supernus CEO Exercises Options, Sells Shares

Supernus Pharmaceuticals CEO Jack A. Khattar exercised stock options and subsequently sold a portion of the acquired common stock under a pre-arranged 10b5-1 trading plan.

Summary

• Jack A. Khattar, President, CEO, and Director of Supernus Pharmaceuticals, Inc. (SUPN), engaged in transactions involving the company's common stock.
• On September 30, 2025, Mr. Khattar exercised employee stock options to acquire 11,510 shares of common stock at an exercise price of $25.3 per share.
• Concurrently, on September 30, 2025, he sold 8,588 shares of common stock at a weighted average price of $48.25 per share, with individual sales ranging from $48.00 to $48.44.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on November 14, 2024.
• Following these transactions, Mr. Khattar directly beneficially owns 1,147,258 shares of common stock.
• Additionally, 1,005,600 shares of common stock are indirectly beneficially owned by the KBT Trust.
• After the exercise, 137,302 employee stock options remain outstanding, with an exercise price of $25.3 and an expiration date of February 24, 2027.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive. While it involves insider selling, the transaction was pre-planned under a 10b5-1 plan, which is a routine part of executive compensation and liquidity management. The significant profit realized by the CEO from the option exercise is a positive for the individual, and the planned nature of the sale reduces any negative implications for the company's outlook.

Positives

• The CEO realized a significant profit from exercising options at $25.3 and selling shares at a weighted average price of $48.25, demonstrating value creation from his compensation package.
• The transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned and non-opportunistic sale, which can mitigate concerns about insider selling.

Negatives

• The sale of shares by a key executive, even if pre-planned, could be perceived by some investors as a signal of reduced confidence, although this is often a routine liquidity or diversification event.

Stakeholder Impact

• Shareholders: May view the insider sale with mixed sentiment; some may see it as a routine, planned event, while others might interpret it as a signal, despite the 10b5-1 plan.
• Management: The CEO's successful exercise and sale of options demonstrate the value of executive compensation plans.

Key Dates

Recommendation

The filing details a pre-planned insider transaction where the CEO exercised options and sold a portion of the acquired shares for a profit. This is a routine event for executive compensation and liquidity management, not necessarily indicative of a change in the company's fundamental outlook. While insider selling can sometimes be a negative signal, the 10b5-1 plan mitigates concerns of opportunistic selling. Therefore, based solely on this filing, a 'hold' recommendation is appropriate as it does not provide strong signals for either buying or selling the stock.

Keywords

Supernus Pharmaceuticals, SUPN, Jack Khattar, Insider Trading, Form 4, Stock Options, 10b5-1 Plan, Beneficial Ownership