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Alkermes (ALKS) Q1 Loss Wider than Expected, Sales Miss

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Alkermes plc (ALKS - Free Report) reported loss of 31 cents per share (including the impact of share-based compensation expense) in the first quarter of 2017, wider than the Zacks Consensus Estimate of a loss of 24 cents. In fact, the reported loss was also wider than the year-ago loss of 28 cents.

Alkermes reported revenues of $191.8 million in the first quarter of 2017, up 22.3% year over year. Revenues missed the Zacks Consensus Estimate of $193 million.

Alkermes’ share price increased 1.2% year to date as against the Zacks classified Medical - Biomedical and Genetics industry’s gain of 4.8%.

Vivitrol & Aristada in Focus

Manufacturing and royalty revenues increased 8% year over year to $114.7 million. Also, the same from Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta were up 9.7% to $60 million. In fact, manufacturing and royalty revenues from Ampyra/Fampyra, rose 3.5% to $29.2 million, in the quarter.

The company earned royalty revenues of $12.3 million on Bydureon, up 17.1%.

Vivitrol sales surged 33.4% year over year to $58.5 million.

Aristada sales came in at $18 million, up compared with $5.5 million in the first quarter of 2016.

2017 Outlook

The company reiterated its guidance for 2017. Alkermes expects total revenue to be in the range of $870–$920 million, 17–23% increase from 2016, driven by continuing growth of Vivitrol and Aristada. Additionally, it expects Vivitrol’s net sales in the range of $280–$300 million.

For 2017, the earnings per share are estimated to be in the range of a loss of 10 cents to earnings of 10 cents.

Pipeline Update

Alkermes plans to submit a new drug application (NDA) for ALKS 5461 in major depressive disorder. With the pivotal program completed, the company has requested for a pre-NDA meeting which is expected to occur in late June or early July this year. The company expects to submit the NDA later in 2017.

Moving ahead, it plans to complete the pivotal efficacy study of ALKS 3831 in schizophrenia and  announce top-line results in mid-2017. The company expects to complete the required elements for registration of ALKS 8700 in multiple sclerosis before the end of 2017 and remains on track to submit the NDA in 2018.

 

Alkermes PLC Price, Consensus and EPS Surprise

 

Alkermes PLC Price, Consensus and EPS Surprise | Alkermes PLC Quote

Zacks Rank & Stocks to Consider

Alkermes is a Zacks Rank #4 (Sell) stock. Some better-ranked stocks in the health care sector include Heska Corporation , Galena Biopharma, Inc. and Infinity Pharmaceuticals, Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Heska’s earnings per share estimates increased from $1.53 to $1.65 for 2017 and from $1.80 to $2.01 for 2018, over the last 60 days. The company posted positive surprises in three of the four trailing quarters, with an average beat of 291.54%. Its share price increased 50.7% year to date.

Galena’s loss per share estimates narrowed from $2.03 to 58 cents for 2017 over the last 60 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 53.83%.

Infinity Pharma’s loss per share estimates narrowed from $1.10 to $1.03 for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters, with an average beat of 36.64%.

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