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Alkermes (ALKS) Q3 Earnings Beat Estimates, Revenues Miss
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Alkermes plc (ALKS - Free Report) reported third-quarter 2021 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 8 cents. The bottom line declined 46.2% year over year.
The company’s revenues of $294.1 million increased 11% from the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $302 million.
Shares of Alkermes were down 9.1% on Wednesday, attributable to mixed third-quarter results. The stock has rallied 43.6% so far this year against the industry’s decline of 9.6%.
Image Source: Zacks Investment Research
Quarter in Detail
Total manufacturing and royalty revenues were up 13.2% year over year to $136.3 million. The increase was driven primarily by Vumerity revenues, which soared by more than 800% to $26.7 million.
Sales of proprietary drug Vivitrol (for alcohol and opioid dependence) increased approximately 11% year over year to $88.8 million while the same for Aristada (for schizophrenia) increased approximately 10% year over year to $68.9 million. These increases were driven by the underlying unit growth.
Research and development (R&D) expenses were $118.4 million, up 24.6% year over year.
Selling, general and administrative (SG&A) expenses were $136.2 million, up 6.6% year over year due to increased investment to support the launch of Lybalvi.
As of Sep 30, 2021, Alkermes had cash and cash equivalents worth $748.2 million compared with $669.4 million on Jun 30, 2021. Total outstanding debt was $296.4 million as of Sep 30, 2021.
Pipeline Updates
In June 2021, the FDA approved the company's new drug application for Lybalvi (olanzapine and samidorphan) for the treatment of adults with schizophrenia and adults suffering from bipolar I disorder. The company commercially launched the drug in October 2021 in the United States.
Please note that Alkermes faces stiff competition in the target market from big companies. Drugs available in the schizophrenia and bipolar I disorder treatment market include AstraZeneca’s (AZN - Free Report) Seroquel XR, Johnson & Johnson's (JNJ - Free Report) Risperdal Consta and AbbVie’s Vraylar.
An important candidate in Alkermes’ pipeline is cancer immunotherapy nemvaleukin alfa (ALKS 4230), which is being evaluated under ARTISTRY Clinical Development Program. The candidate is currently undergoing multiple studies for treating patients with solid tumors.
Earlier this month, Alkermes initiated the phase III ARTISTRY-7 study, which is evaluating the anti-tumor activity and safety of nemvaleukin alfa in combination with Merck’s (MRK - Free Report) Keytruda (pembrolizumab), anti-PD-1 antibody, for treating patients with platinum-resistant ovarian cancer. The FDA has granted a Fast Track designation to nemvaleukin alfa in combination with Keytruda for the treatment of platinum-resistant ovarian cancer.
2021 Guidance
Alkermes reiterated the financial guidance it provided earlier this year.
The company expects revenues in the range of $1.14 billion to $1.18 billion. The Zacks Consensus Estimates for revenues stands at $1.17 billion. Adjusted EPS is anticipated within $0.52-$0.70 per share. The Zacks Consensus Estimates for earnings stands at $0.62 per share.
Image: Bigstock
Alkermes (ALKS) Q3 Earnings Beat Estimates, Revenues Miss
Alkermes plc (ALKS - Free Report) reported third-quarter 2021 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 8 cents. The bottom line declined 46.2% year over year.
The company’s revenues of $294.1 million increased 11% from the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $302 million.
Shares of Alkermes were down 9.1% on Wednesday, attributable to mixed third-quarter results. The stock has rallied 43.6% so far this year against the industry’s decline of 9.6%.
Quarter in Detail
Total manufacturing and royalty revenues were up 13.2% year over year to $136.3 million. The increase was driven primarily by Vumerity revenues, which soared by more than 800% to $26.7 million.
Sales of proprietary drug Vivitrol (for alcohol and opioid dependence) increased approximately 11% year over year to $88.8 million while the same for Aristada (for schizophrenia) increased approximately 10% year over year to $68.9 million. These increases were driven by the underlying unit growth.
Research and development (R&D) expenses were $118.4 million, up 24.6% year over year.
Selling, general and administrative (SG&A) expenses were $136.2 million, up 6.6% year over year due to increased investment to support the launch of Lybalvi.
As of Sep 30, 2021, Alkermes had cash and cash equivalents worth $748.2 million compared with $669.4 million on Jun 30, 2021. Total outstanding debt was $296.4 million as of Sep 30, 2021.
Pipeline Updates
In June 2021, the FDA approved the company's new drug application for Lybalvi (olanzapine and samidorphan) for the treatment of adults with schizophrenia and adults suffering from bipolar I disorder. The company commercially launched the drug in October 2021 in the United States.
Please note that Alkermes faces stiff competition in the target market from big companies. Drugs available in the schizophrenia and bipolar I disorder treatment market include AstraZeneca’s (AZN - Free Report) Seroquel XR, Johnson & Johnson's (JNJ - Free Report) Risperdal Consta and AbbVie’s Vraylar.
An important candidate in Alkermes’ pipeline is cancer immunotherapy nemvaleukin alfa (ALKS 4230), which is being evaluated under ARTISTRY Clinical Development Program. The candidate is currently undergoing multiple studies for treating patients with solid tumors.
Earlier this month, Alkermes initiated the phase III ARTISTRY-7 study, which is evaluating the anti-tumor activity and safety of nemvaleukin alfa in combination with Merck’s (MRK - Free Report) Keytruda (pembrolizumab), anti-PD-1 antibody, for treating patients with platinum-resistant ovarian cancer. The FDA has granted a Fast Track designation to nemvaleukin alfa in combination with Keytruda for the treatment of platinum-resistant ovarian cancer.
2021 Guidance
Alkermes reiterated the financial guidance it provided earlier this year.
The company expects revenues in the range of $1.14 billion to $1.18 billion. The Zacks Consensus Estimates for revenues stands at $1.17 billion. Adjusted EPS is anticipated within $0.52-$0.70 per share. The Zacks Consensus Estimates for earnings stands at $0.62 per share.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Zacks Rank
Alkermes currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.