59 trokendi xr 2019 compared to 2018. trokendi xr net product sales decreased by 6 % in 2019 as compared to 2018. compared to 2018 , favorable unit prescription volume growth of 5 % coupled with the impact of an 8 % price increase were offset by higher levels of net sales deductions . increased sales deductions were driven primarily by increased per patient costs for our co-pay programs , higher per patient rebate payments to managed care providers , and higher medicaid reimbursement payments . in addition , the majority of the impact of the $ 10 million channel inventory reduction , as described above , was reflected in lower net product sales for trokendi xr in 2019. oxtellar xr 2019 compared to 2018. oxtellar xr net product sales grew 4 % in 2019 as compared to 2018 . compared to 2018 , favorable unit prescription volume growth of 11 % and the impact of an 8 % price increase were offset by higher levels of sales deductions . increased sales deductions were due primarily by higher per patient payments under both medicaid and managed care programs , as well as higher co-pay program expenditures . sales deductions and related accruals the company records accrued product rebates and accrued product returns as current liabilities on our consolidated balance sheets under accrued product returns and rebates . we record sales discounts as a valuation allowance against accounts receivable on the consolidated balance sheets . the outstanding amounts are affected by changes in level of gross sales , the provision for net product sales deductions and the timing of payments/credits . the following table provides a summary of activities with respect to accrued product returns and rebates for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) : replace_table_token_6_th 2019 compared to 2018. the total provision for sales deductions on gross product sales increased by $ 69.8 million , from $ 308.6 million in 2018 to $ 378.4 million in 2019 . virtually all of this increase was attributable to the year over year increase in the provision for product rebates , from $ 238.6 million in 2018 to $ 306.5 million in 2019 , or $ 67.9 million . the year over year increase in the provision for product rebates of $ 67.9 million was primarily attributable to greater utilization of our patient co-pay programs . in addition , patient reimbursement challenges and increased contracting pressure from managed care providers resulted in both increased per patient costs for our co-pay programs , higher per patient rebate payments to managed care providers , and higher medicaid reimbursement payments . growth in prescriptions and the impact of the 8 % price increase taken in january contributed , to a lesser extent , to the increase in product rebates . the provision for product returns of $ 10.7 million in 2019 , remained essentially the same year over year due primarily to favorable returns experience , which offset the impact of the 8 % price increase taken in january . 60 the provision for sales discounts increased by $ 1.9 million , from $ 59.2 million to $ 61.1 million in 2018 and 2019 , respectively , because of the prescription volume growth . adjustments related to prior year sales due to changes in our estimates was relatively minor in both years ; i.e . , $ 0.4 million as compared to $ 383.4 million of net product sales in 2019 , and $ 1.8 million as compared to $ 399.9 million of net product sales in 2018. royalty revenue royalty revenue includes royalties from the following products ( dollars in thousands ) : replace_table_token_7_th ( 1 ) royalty from net product sales of mydayis , a product of shire plc ( a subsidiary of takeda pharmaceuticals company ltd ) . ( 2 ) noncash royalty revenue pursuant to our agreement with healthcare royalty partners iii , l.p. ( hc royalty ) . hc royalty receives royalty payments from united therapeutics corporation ( united therapeutics ) based on net product sales of united therapeutics ' product orenitram . supernus records noncash royalty based on such product sales . 2019 compared to 2018 . royalty revenue increased by approximately $ 1.1 million , or 13 % , in 2019 as compared to 2018 , due to increased product sales of mydayis and orenitram . cost of goods sold the following table provides information regarding our cost of goods sold for the years indicated ( dollars in thousands ) : replace_table_token_8_th 2019 compared to 2018 . the year over year increase in cost of goods sold was attributable primarily to higher volume of products sold to our customers . research and development expenses the following table provides information regarding our research and development ( r & d ) expenses for the years indicated ( dollars in thousands ) : replace_table_token_9_th 2019 compared to 2018 . r & d expenses decreased by $ 20.1 million in 2019 as compared to 2018 , primarily driven by the completion of the four phase iii clinical trials for spn-812 in late 2018/early 2019 , and the one-time $ 14 million expense incurred in 2018 due to the acquisition of biscayne neurotherapeutics inc. these reductions were partially offset by the cost to manufacture registration/validation materials for spn-812 to support the nda filing for spn-812 and commercial sales if the nda is approved . 61 selling , general and administrative expense the table below provides information regarding our selling , general and administrative ( sg & a ) expenses for the years indicated ( dollars in thousands ) : replace_table_token_10_th selling and marketing expense 2019 compared to 2018 . story_separator_special_tag selling and marketing expenses decreased by $ 8.0 million in 2019 as compared to 2018 , primarily as a result of decreased professional and consulting expenses of $ 4.3 million and decreased sample expense of $ 3.1 million to support our existing commercial products . general and administrative expense 2019 compared to 2018 . general and administrative ( g & a ) expenses increased by $ 6.6 million in 2019 as compared to 2018 , primarily due to higher employee-related expenses of $ 3.6 million , including $ 2.3 million in share-based compensation , and an increase of $ 1.6 million in professional and consulting fees . other ( expense ) income the following table provides the components of other ( expense ) income during the years indicated ( dollars in thousands ) : replace_table_token_11_th interest income 2019 compared to 2018 . the year over year increase in interest income , $ 7.8 million , was primarily due to an increase in cash , cash equivalents and marketable securities holdings . the increase in securities holdings primarily resulted from the net proceeds of the march 2018 0.625 % 2023 convertible senior note issuance ( 2023 notes ) , with a principal amount of $ 402.5 million . interest expense 2019 compared to 2018 . interest expense in 2019 increased by $ 4.4 million , as compared to 2018 , because of full year interest expense recognized in 2019 on the 2023 notes issued in march 2018. interest expense on non-recourse liability related to sale of future royalties 2019 compared to 2018 . noncash interest expense related to our nonrecourse royalty liability remained generally unchanged , from 2018 to 2019 . 62 income tax expense the following table provides information regarding our income tax expense during the periods indicated ( dollar in thousands ) : replace_table_token_12_th 2019 compared to 2018 . the increase in income tax expense was primarily due to a low effective tax rate in 2018 as the effective tax rate was favorably impacted by employee stock option exercises . the 2019 effective tax rate is favorably impacted by a decrease in our uncertain tax position reserve due to expiring statute of limitations and partially offset by an increase in our state effective tax rates due to an increase in the number of states in which we owe taxes . net earnings the following table provides information regarding our income tax expense during the periods indicated ( dollar in thousands ) : replace_table_token_13_th 2019 compared to 2018 . the increase in net earnings was primarily due to revenue generated from the sale of our two commercial products . trokendi xr and oxtellar xr , partially offset by decreased r & d and sg & a spending and increased income tax expense . story_separator_special_tag thousands ) : replace_table_token_15_th operating activities net cash provided by operating activities is comprised of two components : cash provided by operating earnings ; and cash provided by ( used in ) changes in working capital . the net cash provided by operating activities , $ 143.1 million , was primarily driven by increased operating earnings , reduced by incremental cash absorbed by increased working capital . cash utilized in working capital reflects the timing impacts of cash collections on receivables and settlement of payables , as described below . the changes in certain operating assets and liabilities are as follows ( dollars in thousands ) : replace_table_token_16_th 65 investing activities 2019 compared to 2018. net cash used in investing activities decreased by $ 255.6 million , from $ 413.5 million in 2018 to $ 157.9 million in 2019 , for the year ended december 31 , 2019 . this year over year change was driven by changes in the net purchase of marketable securities . in 2018 , proceeds from the issuance of the 2023 notes in march 2018 were used to purchase marketable securities and long term marketable securities . financing activities 2019 compared to 2018. net cash provided by financing activities decreased to $ 3.9 million for the year ended december 31 , 2019 versus $ 376.4 million provided in the same period in 2018 . this year over year decrease is primarily attributable to the issuance of the 2023 notes in march 2018 , coupled with the related convertible note hedges and warrants . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2019 , except as noted below ( dollars in thousands ) : replace_table_token_17_th ( 1 ) relates to the 2023 notes ( see note 9 in the notes to consolidated financial statements in part ii , item 8 of this report . ) ( 2 ) our commitments for operating leases relate to our leases of office equipment , fleet vehicles and the lease of the current headquarters office and laboratory space , as of december 31 , 2019 . ( 3 ) relates primarily to agreements and purchase orders with contractors and vendors . ( 4 ) this table does not include ( i ) any milestone payments which may become payable to third parties under license agreements or contractual agreements regarding our clinical trials or those which may become payable upon achieving sales and developmental milestones per contractual agreements , as the timing and likelihood of such payments are not known , ( ii ) any royalty payments to third parties as the amounts , timing and likelihood of such payments are not known , and ( iii ) contracts that are entered into in the ordinary course of business which are not material in the aggregate in any period presented above . ( 5 ) as of december 31 , 2019 , we had liabilities related to uncertain tax positions . due to uncertainties in the timing of potential tax audits , the timing and the amounts associated with the resolution of these positions is uncertain . as such , we are unable to make a reasonably

liquidity and capital resources we have financed our operations primarily with cash generated from product sales , supplemented by revenues from royalty and licensing arrangements as well as proceeds from the sale of equity and debt securities . continued cash generation is highly dependent on the commercial success of our two commercial products , trokendi xr and oxtellar xr . we were cash flow positive and profitable from operations in 2019 . while we expect continued profitability for future years , we anticipate there may be significant variability from year to year in our profitability , and particularly as we move forward with the anticipated commercial launch of spn-812 in 2020 , assuming fda approval . we believe our existing cash and cash equivalents , marketable securities and cash received from product sales will be sufficient to finance ongoing operations , development of our new products , and label expansions for existing products . to continue to grow our business over the long-term , we plan to commit substantial resources to : product development and clinical trials of product candidates ; product acquisition ; product in-licensing ; and supportive functions such as compliance , finance , management of our intellectual property portfolio , information technology systems and personnel .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we have financed our operations primarily with cash generated from product sales , supplemented by revenues from royalty and licensing arrangements as well as proceeds from the sale of equity and debt securities . continued cash generation is highly dependent on the commercial success of our two commercial products , trokendi xr and oxtellar xr . we were cash flow positive and profitable from operations in 2019 . while we expect continued profitability for future years , we anticipate there may be significant variability from year to year in our profitability , and particularly as we move forward with the anticipated commercial launch of spn-812 in 2020 , assuming fda approval . we believe our existing cash and cash equivalents , marketable securities and cash received from product sales will be sufficient to finance ongoing operations , development of our new products , and label expansions for existing products . to continue to grow our business over the long-term , we plan to commit substantial resources to : product development and clinical trials of product candidates ; product acquisition ; product in-licensing ; and supportive functions such as compliance , finance , management of our intellectual property portfolio , information technology systems and personnel .
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 Suspicious Activity Report : 59 trokendi xr 2019 compared to 2018. trokendi xr net product sales decreased by 6 % in 2019 as compared to 2018. compared to 2018 , favorable unit prescription volume growth of 5 % coupled with the impact of an 8 % price increase were offset by higher levels of net sales deductions . increased sales deductions were driven primarily by increased per patient costs for our co-pay programs , higher per patient rebate payments to managed care providers , and higher medicaid reimbursement payments . in addition , the majority of the impact of the $ 10 million channel inventory reduction , as described above , was reflected in lower net product sales for trokendi xr in 2019. oxtellar xr 2019 compared to 2018. oxtellar xr net product sales grew 4 % in 2019 as compared to 2018 . compared to 2018 , favorable unit prescription volume growth of 11 % and the impact of an 8 % price increase were offset by higher levels of sales deductions . increased sales deductions were due primarily by higher per patient payments under both medicaid and managed care programs , as well as higher co-pay program expenditures . sales deductions and related accruals the company records accrued product rebates and accrued product returns as current liabilities on our consolidated balance sheets under accrued product returns and rebates . we record sales discounts as a valuation allowance against accounts receivable on the consolidated balance sheets . the outstanding amounts are affected by changes in level of gross sales , the provision for net product sales deductions and the timing of payments/credits . the following table provides a summary of activities with respect to accrued product returns and rebates for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) : replace_table_token_6_th 2019 compared to 2018. the total provision for sales deductions on gross product sales increased by $ 69.8 million , from $ 308.6 million in 2018 to $ 378.4 million in 2019 . virtually all of this increase was attributable to the year over year increase in the provision for product rebates , from $ 238.6 million in 2018 to $ 306.5 million in 2019 , or $ 67.9 million . the year over year increase in the provision for product rebates of $ 67.9 million was primarily attributable to greater utilization of our patient co-pay programs . in addition , patient reimbursement challenges and increased contracting pressure from managed care providers resulted in both increased per patient costs for our co-pay programs , higher per patient rebate payments to managed care providers , and higher medicaid reimbursement payments . growth in prescriptions and the impact of the 8 % price increase taken in january contributed , to a lesser extent , to the increase in product rebates . the provision for product returns of $ 10.7 million in 2019 , remained essentially the same year over year due primarily to favorable returns experience , which offset the impact of the 8 % price increase taken in january . 60 the provision for sales discounts increased by $ 1.9 million , from $ 59.2 million to $ 61.1 million in 2018 and 2019 , respectively , because of the prescription volume growth . adjustments related to prior year sales due to changes in our estimates was relatively minor in both years ; i.e . , $ 0.4 million as compared to $ 383.4 million of net product sales in 2019 , and $ 1.8 million as compared to $ 399.9 million of net product sales in 2018. royalty revenue royalty revenue includes royalties from the following products ( dollars in thousands ) : replace_table_token_7_th ( 1 ) royalty from net product sales of mydayis , a product of shire plc ( a subsidiary of takeda pharmaceuticals company ltd ) . ( 2 ) noncash royalty revenue pursuant to our agreement with healthcare royalty partners iii , l.p. ( hc royalty ) . hc royalty receives royalty payments from united therapeutics corporation ( united therapeutics ) based on net product sales of united therapeutics ' product orenitram . supernus records noncash royalty based on such product sales . 2019 compared to 2018 . royalty revenue increased by approximately $ 1.1 million , or 13 % , in 2019 as compared to 2018 , due to increased product sales of mydayis and orenitram . cost of goods sold the following table provides information regarding our cost of goods sold for the years indicated ( dollars in thousands ) : replace_table_token_8_th 2019 compared to 2018 . the year over year increase in cost of goods sold was attributable primarily to higher volume of products sold to our customers . research and development expenses the following table provides information regarding our research and development ( r & d ) expenses for the years indicated ( dollars in thousands ) : replace_table_token_9_th 2019 compared to 2018 . r & d expenses decreased by $ 20.1 million in 2019 as compared to 2018 , primarily driven by the completion of the four phase iii clinical trials for spn-812 in late 2018/early 2019 , and the one-time $ 14 million expense incurred in 2018 due to the acquisition of biscayne neurotherapeutics inc. these reductions were partially offset by the cost to manufacture registration/validation materials for spn-812 to support the nda filing for spn-812 and commercial sales if the nda is approved . 61 selling , general and administrative expense the table below provides information regarding our selling , general and administrative ( sg & a ) expenses for the years indicated ( dollars in thousands ) : replace_table_token_10_th selling and marketing expense 2019 compared to 2018 . story_separator_special_tag selling and marketing expenses decreased by $ 8.0 million in 2019 as compared to 2018 , primarily as a result of decreased professional and consulting expenses of $ 4.3 million and decreased sample expense of $ 3.1 million to support our existing commercial products . general and administrative expense 2019 compared to 2018 . general and administrative ( g & a ) expenses increased by $ 6.6 million in 2019 as compared to 2018 , primarily due to higher employee-related expenses of $ 3.6 million , including $ 2.3 million in share-based compensation , and an increase of $ 1.6 million in professional and consulting fees . other ( expense ) income the following table provides the components of other ( expense ) income during the years indicated ( dollars in thousands ) : replace_table_token_11_th interest income 2019 compared to 2018 . the year over year increase in interest income , $ 7.8 million , was primarily due to an increase in cash , cash equivalents and marketable securities holdings . the increase in securities holdings primarily resulted from the net proceeds of the march 2018 0.625 % 2023 convertible senior note issuance ( 2023 notes ) , with a principal amount of $ 402.5 million . interest expense 2019 compared to 2018 . interest expense in 2019 increased by $ 4.4 million , as compared to 2018 , because of full year interest expense recognized in 2019 on the 2023 notes issued in march 2018. interest expense on non-recourse liability related to sale of future royalties 2019 compared to 2018 . noncash interest expense related to our nonrecourse royalty liability remained generally unchanged , from 2018 to 2019 . 62 income tax expense the following table provides information regarding our income tax expense during the periods indicated ( dollar in thousands ) : replace_table_token_12_th 2019 compared to 2018 . the increase in income tax expense was primarily due to a low effective tax rate in 2018 as the effective tax rate was favorably impacted by employee stock option exercises . the 2019 effective tax rate is favorably impacted by a decrease in our uncertain tax position reserve due to expiring statute of limitations and partially offset by an increase in our state effective tax rates due to an increase in the number of states in which we owe taxes . net earnings the following table provides information regarding our income tax expense during the periods indicated ( dollar in thousands ) : replace_table_token_13_th 2019 compared to 2018 . the increase in net earnings was primarily due to revenue generated from the sale of our two commercial products . trokendi xr and oxtellar xr , partially offset by decreased r & d and sg & a spending and increased income tax expense . story_separator_special_tag thousands ) : replace_table_token_15_th operating activities net cash provided by operating activities is comprised of two components : cash provided by operating earnings ; and cash provided by ( used in ) changes in working capital . the net cash provided by operating activities , $ 143.1 million , was primarily driven by increased operating earnings , reduced by incremental cash absorbed by increased working capital . cash utilized in working capital reflects the timing impacts of cash collections on receivables and settlement of payables , as described below . the changes in certain operating assets and liabilities are as follows ( dollars in thousands ) : replace_table_token_16_th 65 investing activities 2019 compared to 2018. net cash used in investing activities decreased by $ 255.6 million , from $ 413.5 million in 2018 to $ 157.9 million in 2019 , for the year ended december 31 , 2019 . this year over year change was driven by changes in the net purchase of marketable securities . in 2018 , proceeds from the issuance of the 2023 notes in march 2018 were used to purchase marketable securities and long term marketable securities . financing activities 2019 compared to 2018. net cash provided by financing activities decreased to $ 3.9 million for the year ended december 31 , 2019 versus $ 376.4 million provided in the same period in 2018 . this year over year decrease is primarily attributable to the issuance of the 2023 notes in march 2018 , coupled with the related convertible note hedges and warrants . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2019 , except as noted below ( dollars in thousands ) : replace_table_token_17_th ( 1 ) relates to the 2023 notes ( see note 9 in the notes to consolidated financial statements in part ii , item 8 of this report . ) ( 2 ) our commitments for operating leases relate to our leases of office equipment , fleet vehicles and the lease of the current headquarters office and laboratory space , as of december 31 , 2019 . ( 3 ) relates primarily to agreements and purchase orders with contractors and vendors . ( 4 ) this table does not include ( i ) any milestone payments which may become payable to third parties under license agreements or contractual agreements regarding our clinical trials or those which may become payable upon achieving sales and developmental milestones per contractual agreements , as the timing and likelihood of such payments are not known , ( ii ) any royalty payments to third parties as the amounts , timing and likelihood of such payments are not known , and ( iii ) contracts that are entered into in the ordinary course of business which are not material in the aggregate in any period presented above . ( 5 ) as of december 31 , 2019 , we had liabilities related to uncertain tax positions . due to uncertainties in the timing of potential tax audits , the timing and the amounts associated with the resolution of these positions is uncertain . as such , we are unable to make a reasonably

