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Alkermes' (ALKS) Q1 Earnings & Revenues Fall Shy of Estimates
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Alkermes plc (ALKS - Free Report) reported adjusted earnings from continuing operations of 44 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 59 cents. The company had reported adjusted earnings of 18 per share in the year-ago quarter.
ALKS’ revenues of $350.4 million rose 21.8% from the year-ago quarter’s level owing to the strong performance of its proprietary products portfolio. The top line, however, missed the Zacks Consensus Estimate of $360 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary drug, Vivitrol, increased around 1% year over year to $97.7 million due to stability in the alcohol dependence indication. The figure missed the Zacks Consensus Estimate of $99 million and our model estimate of $102.6 million.
Aristada sales decreased 1.5% year over year to $78.9 million, owing to a substantial decline in channel inventory. The figure missed the Zacks Consensus Estimate of $81 million and our model estimate of $84.4 million.
Lybalvi generated sales of $57 million, up 50% year over year, primarily driven by growth in demand. Lybalvi's sales came in slightly ahead of the Zacks Consensus Estimate as well as our model estimate of $56.7 million.
Total manufacturing and royalty revenues increased 60.4% year over year to $116.8 million, owing to the reinstatement of royalties on sales of long-acting Invega products in the United States.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up 8.3% year over year to $31.3 million. Royalty revenues from Invega products were $62.7 million in the first quarter compared with $13.6 million reported in the year-ago quarter.
Research and development expenses totaled $67.6 million, up almost 6% year over year, driven by higher investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $179.7 million, up 7.1% year over year, owing to continued investment for the launch of Lybalvi.
As of Mar 31, 2024, Alkermes had cash and cash equivalents of $807.8 million compared with $813.4 million as of Dec 31, 2023.
Shares of Alkermes have plunged 13.4% year to date compared with the industry’s decline of 10.5%.
Image Source: Zacks Investment Research
2024 Guidance
Alkermes reiterated the revenue guidance it provided earlier this year in February.
The company continues to expect total revenues in the band of $1.5-$1.6 billion for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million. Aristada sales are anticipated in the band of $340-$360 million. Lybalvi’s net sales are expected in the $275-$295 million range.
Research and development expenses are anticipated in the band of $225-$255 million. Selling, general and administrative expenses are projected in the range of $625-$655 million.
Recent Updates
Last month, Alkermes announced positive top-line data from a phase Ib study evaluating its novel, investigational, oral orexin 2 receptor (OX2R) agonist, ALKS 2680, as a once-daily treatment for narcolepsy.
The data was from the narcolepsy type 2 (NT2) and idiopathic hypersomnia (IH) cohorts of the early-stage proof-of-concept study, which evaluated various doses of ALKS 2680 (5 mg, 12 mg and 25 mg) for the given indication.
Data from the study showed that treatment with ALKS 2680 led to clinically meaningful and statistically significant improvements in mean sleep latency on the Maintenance of Wakefulness Test versus placebo from baseline at all doses tested.
During the same month, the company also initiated the Vibrance-1 phase II study evaluating ALKS 2680 in patients with narcolepsy type 1.
In the past 60 days, estimates for Voyager Therapeutics’ 2024 loss per share have narrowed from $1.89 to $1.64. Year to date, shares of VYGR have decreased 1%.
VYGR’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 545.93%.
In the past 60 days, estimates for Ligand’s 2024 earnings per share have improved from $4.42 to $4.56. Year to date, LGND stock has failed to deliver any returns to investors.
Earnings of LGND beat estimates in each of the trailing four quarters, the average surprise being 84.81%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have improved from $4.25 to $4.44. Year to date, shares of ANIP have jumped 20.7%.
Earnings of ANIP beat estimates in each of the trailing four quarters, the average surprise being 109.06%.
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Alkermes' (ALKS) Q1 Earnings & Revenues Fall Shy of Estimates
Alkermes plc (ALKS - Free Report) reported adjusted earnings from continuing operations of 44 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 59 cents. The company had reported adjusted earnings of 18 per share in the year-ago quarter.
ALKS’ revenues of $350.4 million rose 21.8% from the year-ago quarter’s level owing to the strong performance of its proprietary products portfolio. The top line, however, missed the Zacks Consensus Estimate of $360 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary drug, Vivitrol, increased around 1% year over year to $97.7 million due to stability in the alcohol dependence indication. The figure missed the Zacks Consensus Estimate of $99 million and our model estimate of $102.6 million.
Aristada sales decreased 1.5% year over year to $78.9 million, owing to a substantial decline in channel inventory. The figure missed the Zacks Consensus Estimate of $81 million and our model estimate of $84.4 million.
Lybalvi generated sales of $57 million, up 50% year over year, primarily driven by growth in demand. Lybalvi's sales came in slightly ahead of the Zacks Consensus Estimate as well as our model estimate of $56.7 million.
Total manufacturing and royalty revenues increased 60.4% year over year to $116.8 million, owing to the reinstatement of royalties on sales of long-acting Invega products in the United States.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up 8.3% year over year to $31.3 million. Royalty revenues from Invega products were $62.7 million in the first quarter compared with $13.6 million reported in the year-ago quarter.
Research and development expenses totaled $67.6 million, up almost 6% year over year, driven by higher investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $179.7 million, up 7.1% year over year, owing to continued investment for the launch of Lybalvi.
As of Mar 31, 2024, Alkermes had cash and cash equivalents of $807.8 million compared with $813.4 million as of Dec 31, 2023.
Shares of Alkermes have plunged 13.4% year to date compared with the industry’s decline of 10.5%.
Image Source: Zacks Investment Research
2024 Guidance
Alkermes reiterated the revenue guidance it provided earlier this year in February.
The company continues to expect total revenues in the band of $1.5-$1.6 billion for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million. Aristada sales are anticipated in the band of $340-$360 million. Lybalvi’s net sales are expected in the $275-$295 million range.
Research and development expenses are anticipated in the band of $225-$255 million. Selling, general and administrative expenses are projected in the range of $625-$655 million.
Recent Updates
Last month, Alkermes announced positive top-line data from a phase Ib study evaluating its novel, investigational, oral orexin 2 receptor (OX2R) agonist, ALKS 2680, as a once-daily treatment for narcolepsy.
The data was from the narcolepsy type 2 (NT2) and idiopathic hypersomnia (IH) cohorts of the early-stage proof-of-concept study, which evaluated various doses of ALKS 2680 (5 mg, 12 mg and 25 mg) for the given indication.
Data from the study showed that treatment with ALKS 2680 led to clinically meaningful and statistically significant improvements in mean sleep latency on the Maintenance of Wakefulness Test versus placebo from baseline at all doses tested.
During the same month, the company also initiated the Vibrance-1 phase II study evaluating ALKS 2680 in patients with narcolepsy type 1.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Zacks Rank & Stocks to Consider
Alkermes currently has a Zacks Rank #3 (Hold).
Some top-ranked stocks in the healthcare sector are Voyager Therapeutics, Inc. (VYGR - Free Report) , Ligand Pharmaceuticals Incorporated (LGND - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Voyager Therapeutics’ 2024 loss per share have narrowed from $1.89 to $1.64. Year to date, shares of VYGR have decreased 1%.
VYGR’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 545.93%.
In the past 60 days, estimates for Ligand’s 2024 earnings per share have improved from $4.42 to $4.56. Year to date, LGND stock has failed to deliver any returns to investors.
Earnings of LGND beat estimates in each of the trailing four quarters, the average surprise being 84.81%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have improved from $4.25 to $4.44. Year to date, shares of ANIP have jumped 20.7%.
Earnings of ANIP beat estimates in each of the trailing four quarters, the average surprise being 109.06%.