Alkermes Inc.’s (ALKS) reported fourth quarter fiscal 2011 net loss of $0.14 per share, compared favorably with the year-ago loss of $0.15 per share. The Zacks Consensus Estimate was a loss of $0.13 per share. The narrower year over year loss was attributable to higher revenues recorded in the reported quarter.
Quarterly Results
Total revenue for the reported quarter climbed 32.7% to $51.1 million. Revenues for the reported quarter surpassed the Zacks Consensus Estimate of $46 million.
In the reported quarter, Alkermes generated $32.3 million from manufacturing Risperdal Consta, approved for treating schizophrenia and bipolar disorder, as against $22.7 million in a year ago. Risperdal Consta is marketed worldwide by Johnson & Johnson (JNJ) and manufactured by Alkermes. Royalty revenues for the quarter increased approximately 7% to $10.2 million in the final quarter of fiscal 2011.
The company also reported net product sales of $8.5 million for the reported quarter, as against $5.9 million in the year-ago quarter. The entire amount came from the sale of Vivitrol. Vivitrol is approved for treating patients suffering from alcohol dependence and the prevention of relapse to opioid dependence after opioid detoxification. Research and development revenue under collaborative arrangements accounted for the remaining revenues in the reported quarter.
Research and development expenses for the fourth quarter of fiscal 2011 stood at $27.8 million. Research and development spend was $26.5 million in the year-ago quarter. The increase was attributable to Alkermes’ efforts to develop its pipeline. Selling, general and administrative expenses for the reported quarter climbed 28% $24.2 million.
Yearly Results
For fiscal year 2011, Alkermes suffered an adjusted loss of 46 cents per share as against a loss of 22 cents per share in fiscal 2010. The Zacks Consensus Estimate for fiscal 2011 hinted at a loss of 47 cents. Annual revenues climbed 5% to $186.6 million. Higher manufacturing revenues (up 5%) and increased Vivitrol sales (up 42.8%), due to its label expansion into the opioid dependence indication, were primarily responsible for the rise.
Fiscal 2012 Projection
Apart from disclosing financial results, Alkermes also provided a projection for fiscal 2012 on a standalone basis. Alkermes projects fiscal 2012 revenues in the range of $205 million-$229 million. Research and development expenses are projected in the range of $110 million-$125 million. Selling, general and administrative expenses are projected in the range of $85 million- $95 million. The company expects to suffer net loss in the range of $36 million-$45 million in fiscal 2012.
We remind investors that Alkermes had provided guidance for the combined entity while announcing its intention to purchase the drug delivery unit of Elan (ELN). The deal is expected to close in the third quarter of calendar 2011. (Please read our detailed coverage of the proposed merger at ALKS to Buy Elan Unit for $960M ).
Neutral on Alkermes
Currently we have a ‘Neutral’ recommendation for Alkermes in the long-run. The company carries a Zacks #3 Rank (‘Hold’ rating) in the short-run.
ALKERMES INC (ALKS): Free Stock Analysis Report
ELAN CP PLC ADR (ELN): Free Stock Analysis Report
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