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 plc (ALKS - Free Report) reported first-quarter 2023 adjusted earnings of 1 cent per share, which beat the Zacks Consensus Estimate and our model estimate of a loss of 3 cents . The company reported adjusted earnings of 12 cents per share in the year-ago quarter.
ALKS’ revenues of $287.6 million rose 3.27% from the year-ago quarter’s level. The top line beat the Zacks Consensus Estimate of $284 million and our estimate of $275.7 million.
In the year-to-date period, the stock has risen 8.6% against the industry’s 6.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
Total manufacturing and royalty revenues decreased 31% year over year to $72.9 million. This was due to the 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) .
Alkermes received a second favorable interim award from an arbitral tribunal in their ongoing arbitration proceedings with Janssen. Following the grant of the award, Janssen is not allowed to sell products developed during the license agreement term without paying royalties to Alkermes.
The second interim award was issued earlier this month that requires Janssen to pay back royalties of approximately $194 million to Alkermes for 2022 under the agreement. The award has been built on a first interim award, issued in December 2022.
Manufacturing and royalty revenues from Vumerity slightly declined 5.56% year over year to $28.9 million.
Sales of the proprietary drug, Vivitrol (for alcohol and opioid dependence), increased around 14% year over year to $96.7 million. The same for Aristada (for schizophrenia) increased almost 10% year over year to $80.1 million.
The newly approved medicine, Lybalvi (for schizophrenia or bipolar I disorder), generated sales of $38 million following its launch in October 2021. Sales of the drug increased 173% year over year, primarily driven by growth in demand.
Research and development expenses totaled $93.6 million, down almost 3% year over year.
Selling, general and administrative expenses were $174.5 million, up almost 20% year over year. This was due to increased investment to support the launch of Lybalvi.
As of Mar 31, 2023, Alkermes had cash and cash equivalents of $692.5 million compared with $740.1 million as of Dec 31, 2022. Total outstanding debt was $292.6 million as of Mar 31, 2023.
2023 Guidance
The company reiterates its previously issued guidance for 2023. It expects total revenues in the range of $1.13-$1.25 billion.
Net sales for Vivitrol are expected in the range of $380-$410 million. The same for Aristada are expected in the band of $315–$345 million. Lybalvi’s net sales are expected between $180 million and $205 million.
Recent Updates
In Feburary, Alkermes initiated a multiple ascending dose cohort in the phase I study. It was aimed at evaluating ALKS 2680 orexin 2 receptor agonist, as a potential treatment of narcolepsy and other sleep disorders.
Alkermes is making progress in separating its oncology business into a new, publicly-traded company called Mural Oncology plc. The separation will allow the company to focus on developing therapies for neurological conditions and improving profitability.
Earlier this month, ALKS submitted a confidential draft Form 10 registration statement to the securities and exchange commission. It expects to complete the separation in the second half of 2023.
Per the company, the separation of the Oncology business will allow it to have individual management team for each business. It will also help simplify capital allocation and ensure a long-term shareholder base.
The Zacks Consensus Estimate for Ligand Pharmaceuticals’ earnings per share has moved up from $3.30 to $4.16 for 2023 and from $3.10 to $4.58 for 2024, in the past 60 days. The stock has risen 16.1% in the year-to-date period.
Ligand Pharmaceuticals’ earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 10.07%. In the last reported quarter, LGND’s earnings beat estimates by 10.57%.
The loss per share estimate for Ocuphire Pharma has narrowed from 29 cents to 24 cents for 2023 and from 86 cents to 81 cents for 2024, in the past 60 days. The stock has risen 47.3% in the year-to-date period.
Ocuphire Pharma’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 23.85%. In the last reported quarter, OCUP’s earnings beat estimates by 46.5%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Alkermes (ALKS) Q1 Earnings & Revenues Beat Estimates
Alkermes plc (ALKS - Free Report) reported first-quarter 2023 adjusted earnings of 1 cent per share, which beat the Zacks Consensus Estimate and our model estimate of a loss of 3 cents . The company reported adjusted earnings of 12 cents per share in the year-ago quarter.
ALKS’ revenues of $287.6 million rose 3.27% from the year-ago quarter’s level. The top line beat the Zacks Consensus Estimate of $284 million and our estimate of $275.7 million.
In the year-to-date period, the stock has risen 8.6% against the industry’s 6.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
Total manufacturing and royalty revenues decreased 31% year over year to $72.9 million. This was due to the 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) .
Alkermes received a second favorable interim award from an arbitral tribunal in their ongoing arbitration proceedings with Janssen. Following the grant of the award, Janssen is not allowed to sell products developed during the license agreement term without paying royalties to Alkermes.
The second interim award was issued earlier this month that requires Janssen to pay back royalties of approximately $194 million to Alkermes for 2022 under the agreement. The award has been built on a first interim award, issued in December 2022.
Manufacturing and royalty revenues from Vumerity slightly declined 5.56% year over year to $28.9 million.
Sales of the proprietary drug, Vivitrol (for alcohol and opioid dependence), increased around 14% year over year to $96.7 million. The same for Aristada (for schizophrenia) increased almost 10% year over year to $80.1 million.
The newly approved medicine, Lybalvi (for schizophrenia or bipolar I disorder), generated sales of $38 million following its launch in October 2021. Sales of the drug increased 173% year over year, primarily driven by growth in demand.
Research and development expenses totaled $93.6 million, down almost 3% year over year.
Selling, general and administrative expenses were $174.5 million, up almost 20% year over year. This was due to increased investment to support the launch of Lybalvi.
As of Mar 31, 2023, Alkermes had cash and cash equivalents of $692.5 million compared with $740.1 million as of Dec 31, 2022. Total outstanding debt was $292.6 million as of Mar 31, 2023.
2023 Guidance
The company reiterates its previously issued guidance for 2023. It expects total revenues in the range of $1.13-$1.25 billion.
Net sales for Vivitrol are expected in the range of $380-$410 million. The same for Aristada are expected in the band of $315–$345 million. Lybalvi’s net sales are expected between $180 million and $205 million.
Recent Updates
In Feburary, Alkermes initiated a multiple ascending dose cohort in the phase I study. It was aimed at evaluating ALKS 2680 orexin 2 receptor agonist, as a potential treatment of narcolepsy and other sleep disorders.
Alkermes is making progress in separating its oncology business into a new, publicly-traded company called Mural Oncology plc. The separation will allow the company to focus on developing therapies for neurological conditions and improving profitability.
Earlier this month, ALKS submitted a confidential draft Form 10 registration statement to the securities and exchange commission. It expects to complete the separation in the second half of 2023.
Per the company, the separation of the Oncology business will allow it to have individual management team for each business. It will also help simplify capital allocation and ensure a long-term shareholder base.
Alkermes plc Price and EPS Surprise
Alkermes plc price-eps-surprise | 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 are Ligand Pharmaceuticals (LGND - Free Report) and Ocuphire Pharma (OCUP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ligand Pharmaceuticals’ earnings per share has moved up from $3.30 to $4.16 for 2023 and from $3.10 to $4.58 for 2024, in the past 60 days. The stock has risen 16.1% in the year-to-date period.
Ligand Pharmaceuticals’ earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 10.07%. In the last reported quarter, LGND’s earnings beat estimates by 10.57%.
The loss per share estimate for Ocuphire Pharma has narrowed from 29 cents to 24 cents for 2023 and from 86 cents to 81 cents for 2024, in the past 60 days. The stock has risen 47.3% in the year-to-date period.
Ocuphire Pharma’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 23.85%. In the last reported quarter, OCUP’s earnings beat estimates by 46.5%.