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Alkermes (ALKS) Beats on Q3 Earnings & Sales, Lifts Guidance

Zacks Equity Research
·4 min read

Alkermes plc. ALKS reported adjusted earnings of 26 cents per share in the third quarter of 2020 against a loss of 4 cents reported in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of a cent.

The company’s revenues of $265 million in the quarter increased 3.8% from the year-ago quarter. The top-line beat the Zacks Consensus Estimate of $239 million.

Alkermes’ shares have lost 20.2% so far this year compared with the industry’s decline of 6.4%.

 

Quarter Details

Total manufacturing and royalty revenues were up 16% year over year to $120.4 million. Manufacturing and royalty revenues from J&J’s JNJ drugs — Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta — were $87.9 million, up 14.6% year over year.

Vivitrol sales decreased about 6% year over year to $80.3 million. The decline resulted mainly due to COVID-19-related disruptions.

Aristada sales came in at $62.4 million, up 16% year over year, driven primarily by the increased breadth of the Aristada provider base and growth in the drug’s two-month dose.

Research and development (R&D) expenses were $95 million, down 11.8% year over year.

Selling, general and administrative (SG&A) expenses were $127.7 million, down 16.4% year over year.

Pipeline Updates

In October 2020, the company received positive vote outcomes from the joint meeting of the Psychopharmacologic Drugs Advisory Committee and the Drug Safety and Risk Management Advisory Committee appointed by the FDA, on questions relating to ALKS 3831 for the treatment of adults with schizophrenia and bipolar I disorder. The joint advisory committee's recommendations, while not binding, will be considered by the FDA in its review of the ALKS 3831 new drug application (NDA). The action date for the NDA is Nov 15, 2020.

In August 2020, the company announced the initiation of ARTISTRY-3, a phase II study evaluating the clinical and immunologic effects of ALKS 4230 monotherapy administered intravenously on the tumor microenvironment in a variety of advanced, malignant solid tumors.

2020 Guidance Raised

The company now expects total revenues of,$1,010-$1,035 million,up from the previous expectation of $965-$1,005 million. It expects Vivitrol net sales of $305-$315 million, up from the prior expectations of $270-$300 million. Aristada net sales are expected to be $230-$240 million, up from the previous expectation of $220-$235 million

Earnings are expected between 31-43 cents per share,up from, the earlier expectation of break-even and 19 cents per share.

Zacks Rank and Stocks to Consider

Currently, Alkermes is a Zacks Rank #3 (Hold) stock.

Some better-ranked stocks in the biotech sector are Emergent BioSolutions Inc. EBS, and Vericel Corp. VCEL, both carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent’s earnings per share estimates have increased from $5.31 to $6.61 for 2020 and from $6.06 to $8.42 for 2021 in the past 90 days.

Vericel’s loss per share estimates have narrowed from 13 cents to 12 cents for 2020 in the past 60 days.

 

Alkermes plc Price, Consensus and EPS Surprise

Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc Price, Consensus and EPS Surprise

Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote

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