We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alkermes (ALKS) Q3 Earnings Meet Estimates, Revenues Miss
Read MoreHide Full Article
Alkermes plc (ALKS - Free Report) reported third-quarter 2022 adjusted earnings of 2 cents per share, in line with the Zacks Consensus Estimate. The adjusted earnings were higher than our estimate of 1 cent per share. The company had reported adjusted earnings of 14 cents per share in the year-ago quarter.
The company’s revenues of $252.4 million decreased 14.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $274.4 million.
Total revenues were lower than our estimate of $274.2 million in the reported quarter.
Shares of Alkermes have remained flat so far this year against the industry’s decline of 21.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Total manufacturing and royalty revenues plunged 61.1% year over year to $52.9 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.
Manufacturing and royalty revenues from Vumerity revenues declined 1.5% year over year to $26.3 million.
Sales of the proprietary drug Vivitrol (for alcohol and opioid dependence) increased around 9% year over year to $96.5 million, while the same for Aristada (for schizophrenia) increased almost 10% year over year to $75.7 million.
The newly approved medicine, Lybalvi (olanzapine and samidorphan), generated sales worth $27.1 million following its launch in October 2021. Sales of the drug increased 34.8% sequentially, primarily driven by growth in demand.
In June 2021, the FDA approved Lybalvi for treating adults suffering from schizophrenia or bipolar I disorder.
Research and development expenses were $100.4 million, down 4.7% year over year.
Selling, general and administrative expenses were $152.8 million, up 12.2% year over year.
As of Sep 30, 2022, Alkermes had cash and cash equivalents worth $747.1 million compared with $760 million on Jun 30, 2022. Total outstanding debt was $293.9 million as of Sep 30, 2022.
2022 Guidance
Alkermes tightened its total revenue guidance for 2022.
The company now expects revenues in the range of $1,070-$1,120 million compared with the previous expectation of $1,050-$1,120 million. The Zacks Consensus Estimate for revenues stands at $1.11 billion, while our estimate is pegged at $1.10 billion.
Alkermes narrowed the sales guidance for Vivitrol and Aristada.
Vivitrol’s net sales are now expected in the range of $370–$380 million compared with the earlier projection of $365–$385 million. Aristada’s net sales are now expected between $300–$310 million compared with the $295–$315 million expected earlier.
ALKS raised the full-year sales guidance for Lybalvi. Lybalvi’s net sales are now expected in the range of $88–$95 million compared with the previous projection of $75–$90 million.
Other Updates
In a separate press release, Alkermes announced that along with its board of directors, it is planning to separate the oncology business unit into an independent, publicly-traded company, which is likely to be named Oncology Co. as a part of the ongoing strategic review.
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.
Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.
Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.
Loss per share estimates for Arcus Biosciences narrowed 4.6% for 2022 and 3.9% for 2023 in the past 60 days.
Earnings of Arcus Biosciences surpassed estimates in two of the trailing four quarters, met once and missed on the other occasion. RCUS delivered an earnings surprise of 53.61% on average.
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alkermes (ALKS) Q3 Earnings Meet Estimates, Revenues Miss
Alkermes plc (ALKS - Free Report) reported third-quarter 2022 adjusted earnings of 2 cents per share, in line with the Zacks Consensus Estimate. The adjusted earnings were higher than our estimate of 1 cent per share. The company had reported adjusted earnings of 14 cents per share in the year-ago quarter.
The company’s revenues of $252.4 million decreased 14.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $274.4 million.
Total revenues were lower than our estimate of $274.2 million in the reported quarter.
Shares of Alkermes have remained flat so far this year against the industry’s decline of 21.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Total manufacturing and royalty revenues plunged 61.1% year over year to $52.9 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.
Manufacturing and royalty revenues from Vumerity revenues declined 1.5% year over year to $26.3 million.
Sales of the proprietary drug Vivitrol (for alcohol and opioid dependence) increased around 9% year over year to $96.5 million, while the same for Aristada (for schizophrenia) increased almost 10% year over year to $75.7 million.
The newly approved medicine, Lybalvi (olanzapine and samidorphan), generated sales worth $27.1 million following its launch in October 2021. Sales of the drug increased 34.8% sequentially, primarily driven by growth in demand.
In June 2021, the FDA approved Lybalvi for treating adults suffering from schizophrenia or bipolar I disorder.
Research and development expenses were $100.4 million, down 4.7% year over year.
Selling, general and administrative expenses were $152.8 million, up 12.2% year over year.
As of Sep 30, 2022, Alkermes had cash and cash equivalents worth $747.1 million compared with $760 million on Jun 30, 2022. Total outstanding debt was $293.9 million as of Sep 30, 2022.
2022 Guidance
Alkermes tightened its total revenue guidance for 2022.
The company now expects revenues in the range of $1,070-$1,120 million compared with the previous expectation of $1,050-$1,120 million. The Zacks Consensus Estimate for revenues stands at $1.11 billion, while our estimate is pegged at $1.10 billion.
Alkermes narrowed the sales guidance for Vivitrol and Aristada.
Vivitrol’s net sales are now expected in the range of $370–$380 million compared with the earlier projection of $365–$385 million. Aristada’s net sales are now expected between $300–$310 million compared with the $295–$315 million expected earlier.
ALKS raised the full-year sales guidance for Lybalvi. Lybalvi’s net sales are now expected in the range of $88–$95 million compared with the previous projection of $75–$90 million.
Other Updates
In a separate press release, Alkermes announced that along with its board of directors, it is planning to separate the oncology business unit into an independent, publicly-traded company, which is likely to be named Oncology Co. as a part of the ongoing strategic review.
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, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Zacks Rank & Stocks to Consider
Alkermes currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Akero Therapeutics, Inc. (AKRO - Free Report) , Arcus Biosciences, Inc. (RCUS - Free Report) and Atea Pharmaceuticals, Inc. (AVIR - Free Report) , all sporting a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.
Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.
Loss per share estimates for Arcus Biosciences narrowed 4.6% for 2022 and 3.9% for 2023 in the past 60 days.
Earnings of Arcus Biosciences surpassed estimates in two of the trailing four quarters, met once and missed on the other occasion. RCUS delivered an earnings surprise of 53.61% on average.
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.