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Alkermes (ALKS) Exceeds Q3 Earnings Estimates, Raises Outlook
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Alkermes plc. (ALKS - Free Report) reported adjusted earnings of 7 cents per share in the third quarter of 2018, while the Zacks Consensus Estimate was a loss of 6 cents. The bottom line also exceeded the adjusted earnings of 3 cents recorded in the year-ago quarter.
The company’s revenues of $248.7 million in the quarter were up 14% year over year. The top line beat the Zacks Consensus Estimate of $236 million.
The results were driven by strong growth of the company’s proprietary products, Vivitrol and Aristada. Net sales for Vivitrol and Aristada were $116.0 million in the quarter, reflecting a 24% increase from the year-ago quarter.
So far this year, Alkermes’ shares have lost 29% compared with the industry’s decline of 15.9%.
Revenues Rise
Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/ Xeplion and Invega Trinza/Trevicta were $77.2 million, down 2.8% year over year. The same from Ampyra/Fampyra were down 17.1% year over year to $20.3 million. Research and development revenues were $16.3 million, of which $15.7 million was related to the collaboration with Biogen Inc. (BIIB - Free Report) for BIIB098.
Vivitrol sales improved 15% year over year to $79.9 million.
Aristada sales came in at $36.1 million, up 48% year over year. During the quarter, the company launched Aristada Initio, the newest addition to the Aristada product family, and the early trends of the products showed encouraging results.
Costs Rise
Research and Development (R&D) expenses were $101.3 million, down 3% year over year.
Selling, General and Administrative (SG&A) expenses were $128.8 million, up 29.3% year over year.
2018 Outlook
The company expects total revenues to be $1.015-$1.045 billion, above its previous expectation of $975 million to $1.025 billion. This increase was driven by Ampyra, following the delayed generic competition in 2018. The Zacks Consensus Estimate for 2018 is $1.01 billion
The company continues to expect Vivitrol sales to be $300-$330 million, while Aristada sales are anticipated to be $140-$160 million. The company reaffirmed its R&D expenses to be $415-$445 million. Alkermes reiterated its guidance for SG&A expenses of $515-$545 million.
For 2018, the company expects earnings per share to be 12-31 cents compared with the previous expectation of loss per share of 6-12 cents. The Zacks Consensus Estimate for 2018 is earnings of 9 cents per share.
Pipeline Update
During the quarter, the company initiated clinical evaluation of ALKS 4230 in combination with Merck’s (MRK - Free Report) PD-1 inhibitor, Keytruda (pembrolizumab).
On Nov 1, 2018, there will be a joint meeting of the Psychopharmacologic Drugs Advisory Committee, and the Drug Safety and Risk Management Advisory Committee to review the new drug application (NDA) for ALKS 5461, being evaluated for adjunctive treatment of major depressive disorder. An action date of Jan 31, 2019 has been set for the same.
The company also expects to release top-line data from ALKS 3831’s ENLIGHTEN-2 pivotal study in schizophrenia, in the fourth quarter of 2018.
The company is on track to submit the NDA for BIIB098 for multiple sclerosis by the end of 2018.
Gilead’s earnings per share estimates have moved up from $6.58 to $6.63 for 2018 and from $6.48 to $6.58 for 2019 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 6.43%. Share price of the company has increased 1% year to date.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Alkermes (ALKS) Exceeds Q3 Earnings Estimates, Raises Outlook
Alkermes plc. (ALKS - Free Report) reported adjusted earnings of 7 cents per share in the third quarter of 2018, while the Zacks Consensus Estimate was a loss of 6 cents. The bottom line also exceeded the adjusted earnings of 3 cents recorded in the year-ago quarter.
The company’s revenues of $248.7 million in the quarter were up 14% year over year. The top line beat the Zacks Consensus Estimate of $236 million.
The results were driven by strong growth of the company’s proprietary products, Vivitrol and Aristada. Net sales for Vivitrol and Aristada were $116.0 million in the quarter, reflecting a 24% increase from the year-ago quarter.
So far this year, Alkermes’ shares have lost 29% compared with the industry’s decline of 15.9%.
Revenues Rise
Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/ Xeplion and Invega Trinza/Trevicta were $77.2 million, down 2.8% year over year. The same from Ampyra/Fampyra were down 17.1% year over year to $20.3 million. Research and development revenues were $16.3 million, of which $15.7 million was related to the collaboration with Biogen Inc. (BIIB - Free Report) for BIIB098.
Vivitrol sales improved 15% year over year to $79.9 million.
Aristada sales came in at $36.1 million, up 48% year over year. During the quarter, the company launched Aristada Initio, the newest addition to the Aristada product family, and the early trends of the products showed encouraging results.
Costs Rise
Research and Development (R&D) expenses were $101.3 million, down 3% year over year.
Selling, General and Administrative (SG&A) expenses were $128.8 million, up 29.3% year over year.
2018 Outlook
The company expects total revenues to be $1.015-$1.045 billion, above its previous expectation of $975 million to $1.025 billion. This increase was driven by Ampyra, following the delayed generic competition in 2018. The Zacks Consensus Estimate for 2018 is $1.01 billion
The company continues to expect Vivitrol sales to be $300-$330 million, while Aristada sales are anticipated to be $140-$160 million. The company reaffirmed its R&D expenses to be $415-$445 million. Alkermes reiterated its guidance for SG&A expenses of $515-$545 million.
For 2018, the company expects earnings per share to be 12-31 cents compared with the previous expectation of loss per share of 6-12 cents. The Zacks Consensus Estimate for 2018 is earnings of 9 cents per share.
Pipeline Update
During the quarter, the company initiated clinical evaluation of ALKS 4230 in combination with Merck’s (MRK - Free Report) PD-1 inhibitor, Keytruda (pembrolizumab).
On Nov 1, 2018, there will be a joint meeting of the Psychopharmacologic Drugs Advisory Committee, and the Drug Safety and Risk Management Advisory Committee to review the new drug application (NDA) for ALKS 5461, being evaluated for adjunctive treatment of major depressive disorder. An action date of Jan 31, 2019 has been set for the same.
The company also expects to release top-line data from ALKS 3831’s ENLIGHTEN-2 pivotal study in schizophrenia, in the fourth quarter of 2018.
The company is on track to submit the NDA for BIIB098 for multiple sclerosis by the end of 2018.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc Price, Consensus and EPS Surprise | Alkermes plc Quote
Zacks Rank & Another Key Pick
Alkermes currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the biotech sector is Gilead Sciences, Inc. (GILD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead’s earnings per share estimates have moved up from $6.58 to $6.63 for 2018 and from $6.48 to $6.58 for 2019 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 6.43%. Share price of the company has increased 1% year to date.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>