Alkermes ALKS reported a loss (including share-based compensation expense) of 24 cents per share in the second quarter of 2015 wider than the Zacks Consensus Estimate of a loss of 22 cents and the loss of 1 cent in the year ago period.
Alkermes reported revenues of $151.4 million for the second quarter of 2015, down 1.3% from the previous year, which included products sales from currently divested Gainesville manufacturing facility. Revenues were above the Zacks Consensus Estimate of $147 million.
Quarter in Detail
Manufacturing and royalty revenues at Alkermes dropped 13.2% year-over-year to $113.2 million in the reported quarter. Manufacturing and royalty revenues included $60.8 million (up 1.3% from last year) from the company’s long-acting atypical antipsychotic franchise, Risperdal Consta and Invega Sustenna.
Alkermes recorded manufacturing and royalty revenues of $26.9 million (up 37.9%) on Ampyra (EU trade name: Fampyra).
Alkermes earned royalty revenues of $11.1 million, up 26.1% on Bydureon. The company has an agreement with AstraZeneca AZN for Bydureon. Vivitrol sales increased 72.2% year-over-year to $37.2 million in the reported quarter.
Research & development (R&D) expenses amounted to $87.9 million, up 30.8% from the year ago period. Likewise, selling, general and administrative (SG&A) spending shot up 41.2% to $71.5 million.
In early second quarter, Alkermes completed transaction to divest its Gainesville, Ga. Facility to Recro Pharma, Inc. REPH including the rights to IV/IM and parenteral forms of Meloxicam. The company received $54 million in exchange and is eligible to receive future payments related to Meloxicam, which includes milestone payments of up to $120 million and low double-digit royalties on net sales.
The company is expected to start earning manufacturing and royalty revenues from a newly approved drug, Invega Trinza shortly.
Increase 2015 Guidance
Alkermes revised its previous guidance for 2015. Alkermes expects loss per share in the range of 31 cents to 45 cents from the previous guidance of 37 cents to 50 cents.
The company raised its 2015 revenues to the range of $610 million to $640 million from previous guidance of $600 million to $630 million. The guidance includes Vivitrol net sales between $135 million and $145 million and net sales from the anticipated launch of Aristada (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 $627 million.
The company expects R&D spend in the range of $345 million to $365 million and SG&A spend at $310–$330 million.
Alkermes currently carries a Zacks Rank #3 (Hold). AMAG Pharmaceuticals, Inc. AMAG is a better-ranked stock in the health care sector with a Zacks Rank #1 (Strong Buy).
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