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Alkermes plc (ALKS - Free Report) reported fourth-quarter 2023 adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The company had reported adjusted earnings of 40 cents per share in the year-ago quarter.
ALKS’ revenues of $377.5 million surged almost 24% from the year-ago quarter’s level owing to strong performance of its proprietary products portfolio. The top line also beat the Zacks Consensus Estimate of $361.2 million.
Quarter in Detail
ALKS derives revenues on 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.
Total manufacturing and royalty revenues increased 53% year over year to $135.5 million, owing to the reinstatement of royalties on sales of long-acting Invega products in the United States.
Manufacturing and royalty revenues from Vumerity were up 3.4% year over year to $33.6 million. Royalty revenues from Vumerity surpassed the Zacks Consensus Estimate and our model estimate of $31.9 million and $21.7 million, respectively.
Sales of the proprietary drug, Vivitrol, increased around 0.4% year over year to $102.4 million, due to stability in the alcohol dependence indication. The figure marginally beat the Zacks Consensus Estimate of $102 million and our model estimate of $100.1 million.
Sales for Aristada increased 5.3% year over year to $83.4 million, driven primarily by higher underlying demand. The figure slightly missed the Zacks Consensus Estimate Estimate of $84 million and was almost in line with our model estimate of $83.5 million.
Lybalvi generated sales of $56.2 million. The figure increased 61% year over year and 10.8% sequentially, primarily driven by growth in demand. Lybalvi sales beat the Zacks Consensus Estimate and our model estimate of $55 million and $50.3 million, respectively.
Research and development expenses totaled $73.9 million, up 1.3% year over year.
Selling, general and administrative expenses totaled $169.8 million, up 11.1% year over year.
As of Dec 31, 2023, Alkermes had cash and cash equivalents of $813.4 million compared with $995.6 million as of Sep 30, 2023. Total outstanding debt was $290.7 million as of Dec 31, 2023.
The stock fell 0.7% in the past year compared with the industry’s decline of 12.2%.
Image Source: Zacks Investment Research
Full-Year Results
For 2023, Alkermes generated revenues of $1.66 billion, up 49.6% year over year.
For the same period, the company reported adjusted earnings of $2.34 per share, up 125% on a year-over-year basis.
2024 Guidance
The company expects total revenues in the band of $1,500-$1,600 million for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million, and the same for Aristada 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
In February 2024, the company's board of directors approved a new share repurchase program to buy back up to $400 million of the company's ordinary shares.
In January 2024, Alkermes completed the narcolepsy type 1 cohort in the phase Ib study evaluating its investigational orexin 2 receptor agonist, ALKS 2680, for the treatment of narcolepsy. A phase II study in narcolepsy type 1 is likely to begin in the first half of 2024.
In November 2023, Alkermes completed the separation of its oncology business into a new, publicly-traded company called Mural Oncology plc. This will allow the company to focus solely on developing therapies for neurological conditions and improving profitability.
In the past 60 days, estimates for Stoke Therapeutics’ 2024 loss per share have narrowed from $2.50 to $2.28. Shares of STOK have plunged 42.6% in the past year.
STOK’s earnings beat estimates in three of the last four quarters and missed the same in one, delivering an average surprise of 10.81%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 64 cents to 69 cents. In the past year, shares of PBYI have risen 77.5%.
PBYI’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 76.55%.
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Alkermes' (ALKS) Q4 Earnings & Revenues Surpass Estimates
Alkermes plc (ALKS - Free Report) reported fourth-quarter 2023 adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The company had reported adjusted earnings of 40 cents per share in the year-ago quarter.
ALKS’ revenues of $377.5 million surged almost 24% from the year-ago quarter’s level owing to strong performance of its proprietary products portfolio. The top line also beat the Zacks Consensus Estimate of $361.2 million.
Quarter in Detail
ALKS derives revenues on 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.
Total manufacturing and royalty revenues increased 53% year over year to $135.5 million, owing to the reinstatement of royalties on sales of long-acting Invega products in the United States.
Manufacturing and royalty revenues from Vumerity were up 3.4% year over year to $33.6 million. Royalty revenues from Vumerity surpassed the Zacks Consensus Estimate and our model estimate of $31.9 million and $21.7 million, respectively.
Sales of the proprietary drug, Vivitrol, increased around 0.4% year over year to $102.4 million, due to stability in the alcohol dependence indication. The figure marginally beat the Zacks Consensus Estimate of $102 million and our model estimate of $100.1 million.
Sales for Aristada increased 5.3% year over year to $83.4 million, driven primarily by higher underlying demand. The figure slightly missed the Zacks Consensus Estimate Estimate of $84 million and was almost in line with our model estimate of $83.5 million.
Lybalvi generated sales of $56.2 million. The figure increased 61% year over year and 10.8% sequentially, primarily driven by growth in demand. Lybalvi sales beat the Zacks Consensus Estimate and our model estimate of $55 million and $50.3 million, respectively.
Research and development expenses totaled $73.9 million, up 1.3% year over year.
Selling, general and administrative expenses totaled $169.8 million, up 11.1% year over year.
As of Dec 31, 2023, Alkermes had cash and cash equivalents of $813.4 million compared with $995.6 million as of Sep 30, 2023. Total outstanding debt was $290.7 million as of Dec 31, 2023.
The stock fell 0.7% in the past year compared with the industry’s decline of 12.2%.
Full-Year Results
For 2023, Alkermes generated revenues of $1.66 billion, up 49.6% year over year.
For the same period, the company reported adjusted earnings of $2.34 per share, up 125% on a year-over-year basis.
2024 Guidance
The company expects total revenues in the band of $1,500-$1,600 million for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million, and the same for Aristada 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
In February 2024, the company's board of directors approved a new share repurchase program to buy back up to $400 million of the company's ordinary shares.
In January 2024, Alkermes completed the narcolepsy type 1 cohort in the phase Ib study evaluating its investigational orexin 2 receptor agonist, ALKS 2680, for the treatment of narcolepsy. A phase II study in narcolepsy type 1 is likely to begin in the first half of 2024.
In November 2023, Alkermes completed the separation of its oncology business into a new, publicly-traded company called Mural Oncology plc. This will allow the company to focus solely on developing therapies for neurological conditions and improving profitability.
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 healthcare sector are Stoke Therapeutics, Inc. (STOK - Free Report) and Puma Biotechnology, Inc. (PBYI - 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 Stoke Therapeutics’ 2024 loss per share have narrowed from $2.50 to $2.28. Shares of STOK have plunged 42.6% in the past year.
STOK’s earnings beat estimates in three of the last four quarters and missed the same in one, delivering an average surprise of 10.81%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 64 cents to 69 cents. In the past year, shares of PBYI have risen 77.5%.
PBYI’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 76.55%.