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Alkermes (ALKS) Q4 Earnings & Sales Top Estimates, Stock Up
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Alkermes plc (ALKS - Free Report) reported fourth-quarter 2022 adjusted earnings of 14 cents per share, beating the Zacks Consensus Estimate of five cents. The adjusted earnings also beat our model estimate of 1 cent per share. The company reported adjusted earnings of 23 cents per share in the year-ago quarter.
The company’s revenues of $304.7 million fell 6.1% from the year-ago quarter’s levels. The top line beat the Zacks Consensus Estimate of $286.8 million. The reported total revenues also beat our estimate of $271.2 million in the reported quarter.
Shares of Alkermes were up 4.4% on Feb 16 following the announcement, likely due to better-than-expected earnings results. In the trailing 12 months, the stock has risen 11.2% against the industry’s fall of 8.0%.
Image Source: Zacks Investment Research
Full-Year Results
In 2022, Alkermes generated total revenues of $1.11 billion compared with $1.17 billion recorded in 2021.
In 2022, the company reported adjusted earnings of 34 cents per share compared with 78 cents in 2021.
Quarter in Detail
Total manufacturing and royalty revenues fell 38.2% year over year to $88.5 million due to the partial termination of the license agreement related to sales of long-acting Invega products in the United States by Janssen, a subsidiary of J&J (JNJ - Free Report) .
Last December, Alkermes received an interim award against the J&J subsidiary in respect of the above termination. Following the grant of the interim award, Janssen is not allowed to sell products developed during the license agreement term without paying royalties to Alkermes. The company will engage with the J&J subsidiary and the Tribunal in additional proceedings prior to the Tribunal's issuance of a final award.
Manufacturing and royalty revenues from Vumerity revenues rose 20.8% year over year to $32.5 million.
Sales of the proprietary drug Vivitrol (for alcohol and opioid dependence) increased around 11% year over year to $102.0 million, while the same for Aristada (for schizophrenia) increased almost 1% year over year to $79.2 million.
The newly approved medicine, Lybalvi (for schizophrenia or bipolar I disorder), generated sales worth $34.9 million following its launch in October 2021. Sales of the drug increased 28.7% sequentially, primarily driven by growth in demand.
Research and development expenses were $104.6 million, down 6.3% year over year.
Selling, general and administrative expenses were $157.5 million, down 1.8% year over year.
As of Dec 31, 2022, Alkermes had cash and cash equivalents worth $740.1 million compared with $747.1 million on Sep 30, 2022. Total outstanding debt was $293.3 million as of Dec 31, 2022.
2023 Guidance
Alkermes expects total revenues in the range of $1.13 billion to $1.25 billion in 2023. The Zacks Consensus Estimate for revenues stands at $1.17 billion.
Vivitrol’s net sales are expected in the range of $380–$410 million, while Aristada’s net sales are expected to be $315–$345 million. Lybalvi’s net sales are expected between $180–$205 million.
Recent Updates
Last November, management announced that it had initiated an early-stage study evaluating its orexin 2 receptor agonist in healthy volunteers as a potential treatment of narcolepsy and other sleep disorders.
In November 2022, Alkermes also announced its intent to separate the company’s existing oncology business into an independent, publicly-traded company as part of an ongoing strategic review. The company expects that if the separation is consummated, it will be completed in second-half 2023.
Per the company, the separation of the Oncology business would help in a strategic focus for each business with separate management teams while simplifying capital allocation and ensuring a long-term shareholder base.
While Alkermes will focus on its neuroscience business, the newly formed oncology business will focus on the development of the pipeline candidate, nemvaleukin alfa, which is currently being evaluated for treating platinum-resistant ovarian cancer and mucosal melanoma.
Currently, Alkermes has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Aeterna Zentaris (AEZS - Free Report) and Arcus Biosciences (RCUS - Free Report) . While Arcus Biosciences sports Zacks Rank #1 (Strong Buy), Aeterna Zentaris carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arcus Biosciences loss per share estimates for 2023 have narrowed from $4.75 to $4.57 in the past 60 days. RCUS’s stock has declined 34.3% in the past year.
Earnings of Arcus Biosciences beat estimates in two of the last four quarters, missed the mark on one occasion and met the mark on another. On average, RCUS witnessed a trailing four-quarter positive earnings surprise of 56.74%, on average. In the last reported quarter, Arcus Biosciences’ earnings beat estimates by 14.29%.
Aeterna Zentaris loss per share estimates for 2023 have narrowed from $3.68 to $3.30 in the past 60 days. AEZS’s stock has plunged 62.6% in the past year.
Earnings of Aeterna Zentaris missed estimates in two of the last four quarters and met the mark on the other two occasions. On average, AEZS witnessed a trailing four-quarter positive earnings surprise of 7.72%, on average. In the last reported quarter, Aeterna Zentaris’ earnings missed estimates by 2.94%.
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Alkermes (ALKS) Q4 Earnings & Sales Top Estimates, Stock Up
Alkermes plc (ALKS - Free Report) reported fourth-quarter 2022 adjusted earnings of 14 cents per share, beating the Zacks Consensus Estimate of five cents. The adjusted earnings also beat our model estimate of 1 cent per share. The company reported adjusted earnings of 23 cents per share in the year-ago quarter.
The company’s revenues of $304.7 million fell 6.1% from the year-ago quarter’s levels. The top line beat the Zacks Consensus Estimate of $286.8 million. The reported total revenues also beat our estimate of $271.2 million in the reported quarter.
Shares of Alkermes were up 4.4% on Feb 16 following the announcement, likely due to better-than-expected earnings results. In the trailing 12 months, the stock has risen 11.2% against the industry’s fall of 8.0%.
Image Source: Zacks Investment Research
Full-Year Results
In 2022, Alkermes generated total revenues of $1.11 billion compared with $1.17 billion recorded in 2021.
In 2022, the company reported adjusted earnings of 34 cents per share compared with 78 cents in 2021.
Quarter in Detail
Total manufacturing and royalty revenues fell 38.2% year over year to $88.5 million due to the partial termination of the license agreement related to sales of long-acting Invega products in the United States by Janssen, a subsidiary of J&J (JNJ - Free Report) .
Last December, Alkermes received an interim award against the J&J subsidiary in respect of the above termination. Following the grant of the interim award, Janssen is not allowed to sell products developed during the license agreement term without paying royalties to Alkermes. The company will engage with the J&J subsidiary and the Tribunal in additional proceedings prior to the Tribunal's issuance of a final award.
Manufacturing and royalty revenues from Vumerity revenues rose 20.8% year over year to $32.5 million.
Sales of the proprietary drug Vivitrol (for alcohol and opioid dependence) increased around 11% year over year to $102.0 million, while the same for Aristada (for schizophrenia) increased almost 1% year over year to $79.2 million.
The newly approved medicine, Lybalvi (for schizophrenia or bipolar I disorder), generated sales worth $34.9 million following its launch in October 2021. Sales of the drug increased 28.7% sequentially, primarily driven by growth in demand.
Research and development expenses were $104.6 million, down 6.3% year over year.
Selling, general and administrative expenses were $157.5 million, down 1.8% year over year.
As of Dec 31, 2022, Alkermes had cash and cash equivalents worth $740.1 million compared with $747.1 million on Sep 30, 2022. Total outstanding debt was $293.3 million as of Dec 31, 2022.
2023 Guidance
Alkermes expects total revenues in the range of $1.13 billion to $1.25 billion in 2023. The Zacks Consensus Estimate for revenues stands at $1.17 billion.
Vivitrol’s net sales are expected in the range of $380–$410 million, while Aristada’s net sales are expected to be $315–$345 million. Lybalvi’s net sales are expected between $180–$205 million.
Recent Updates
Last November, management announced that it had initiated an early-stage study evaluating its orexin 2 receptor agonist in healthy volunteers as a potential treatment of narcolepsy and other sleep disorders.
In November 2022, Alkermes also announced its intent to separate the company’s existing oncology business into an independent, publicly-traded company as part of an ongoing strategic review. The company expects that if the separation is consummated, it will be completed in second-half 2023.
Per the company, the separation of the Oncology business would help in a strategic focus for each business with separate management teams while simplifying capital allocation and ensuring a long-term shareholder base.
While Alkermes will focus on its neuroscience business, the newly formed oncology business will focus on the development of the pipeline candidate, nemvaleukin alfa, which is currently being evaluated for treating platinum-resistant ovarian cancer and mucosal melanoma.
Alkermes plc Price
Alkermes plc price | Alkermes plc Quote
Zacks Rank & Stocks to Consider
Currently, Alkermes has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Aeterna Zentaris (AEZS - Free Report) and Arcus Biosciences (RCUS - Free Report) . While Arcus Biosciences sports Zacks Rank #1 (Strong Buy), Aeterna Zentaris carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arcus Biosciences loss per share estimates for 2023 have narrowed from $4.75 to $4.57 in the past 60 days. RCUS’s stock has declined 34.3% in the past year.
Earnings of Arcus Biosciences beat estimates in two of the last four quarters, missed the mark on one occasion and met the mark on another. On average, RCUS witnessed a trailing four-quarter positive earnings surprise of 56.74%, on average. In the last reported quarter, Arcus Biosciences’ earnings beat estimates by 14.29%.
Aeterna Zentaris loss per share estimates for 2023 have narrowed from $3.68 to $3.30 in the past 60 days. AEZS’s stock has plunged 62.6% in the past year.
Earnings of Aeterna Zentaris missed estimates in two of the last four quarters and met the mark on the other two occasions. On average, AEZS witnessed a trailing four-quarter positive earnings surprise of 7.72%, on average. In the last reported quarter, Aeterna Zentaris’ earnings missed estimates by 2.94%.