Alkermes ALKS reported a first-quarter 2015 loss (including share-based compensation expense) of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents. The company had reported earnings of 2 cents per share in the year-ago period.
Alkermes reported revenues of $161.2 million for the first quarter of 2015, up 23.8% year over year. Revenues were boosted by strong sales of drugs like Invega Sustenna, Vivitrol and Ampyra. Revenues were above the Zacks Consensus Estimate of $145.1 million.
Quarter in Details
Manufacturing and royalty revenues at Alkermes climbed 15.7% to $128.7 million in the reported quarter. Manufacturing and royalty revenues included $46.9 million (down 5.4%) from the company’s long-acting atypical antipsychotic franchise, Risperdal Consta and Invega Sustenna.
Alkermes recorded manufacturing and royalty revenues of $36.5 million (up 77.2%) on Ampyra (EU trade name: Fampyra).
Alkermes earned royalty revenues of $9.8 million (up 27.3%) on Bydureon. The company has an agreement with AstraZeneca AZN for Bydureon.
Vivitrol sales increased 82% to $31.1 million in the reported quarter.
Research & development (R&D) expenses for the reported quarter increased 34.8% to $70.3 million. Selling, general and administrative (SG&A) spending shot up 18.2% to $63.4 million.
Pipeline Update
Alkermes continues to progress with its other pipeline candidates. Interesting candidates at the company include ALKS 5461 (phase III – major depressive disorder), ALKS 3831 (phase II – schizophrenia) and ALKS 8700 (phase I – multiple sclerosis). The company intends to start pivotal programs on ALKS 3831 and ALKS 8700 by the end of the year.
2015 Outlook Maintained
Alkermes announced that it has maintained its previous guidance for 2015. Alkermes expects loss per share in the range of 37 cents to 50 cents. The Zacks Consensus Estimate currently stands at a loss of $1.03 per share.
The company still expects 2015 revenues to be in the range of $600 million to $630 million. The guidance includes Vivitrol net sales between $125 million and $135 million and net sales from the anticipated launch of aripiprazole lauroxil (under FDA review for schizophrenia with a response expected by Aug 22, 2015) between $5 million and $10 million. The Zacks Consensus Estimate stands at $629 million.
The company expects R&D spend in the range of $345 million to $365 million. 2015 R&D spend is expected to increase as the company continues to develop its pipeline.
SG&A spend is expected at $310–$330 million. Costs associated with the marketing of Vivitrol and sales activity in anticipation of the potential launch of aripiprazole lauroxil are expected to push up SG&A expenses. Upon approval, Alkermes expects to launch aripiprazole lauroxil later this year.
Our Take
Alkermes’ first-quarter results were impressive with loss coming in narrower than expectation and revenues ahead of estimates. The company’s shares also gained 6.7% after its first-quarter results.
Alkermes currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include BioMarin Pharmaceutical Inc. BMRN and Biogen Inc. BIIB. Both carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment