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Alkermes' (ALKS) Q1 Earnings Increase Y/Y, Revenues Beat

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Zacks Equity Research
·3 min read
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Alkermes plc. ALKS reported adjusted earnings of 1 cent per share in the first quarter of 2019 against a loss of 17 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 27 cents.

The company’s revenues of $246.2 million in the quarter increased 10.4% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $225.02 million. The company’s proprietary products — Vivitrol and Aristada — drove revenues.

Alkermes’ shares have plunged 29.5% so far this year against the industry’s increase of 1.8%.

Quarter Details

Total manufacturing and royalty revenues were up 6.8% year over year to $116.3 million.  Manufacturing and royalty revenues from J&J’s JNJ drugs — Risperdal Consta, Invega Sustenna/Xeplion and InvegaTrinza/Trevicta — were $82.2 million, up 8.7% year over year.

Vivitrol sales improved about 13.9% year over year to $78.8 million.

Aristada sales came in at $51 million, up 68.3% year over year.

Research and development (R&D) expenses were $93.3 million, down 9.1% year over year.

Selling, general and administrative (SG&A) expenses were $133.4 million, down 5.5% year over year.

2020 Guidance Withdrawn

The company withdrew its financial expectations for 2020 provided in February due to uncertainties regarding the impact of the COVID-19 pandemic. The company is unable to reliably estimate the future impact of COVID-19 and stated that extent of the impact will be driven primarily by the severity and duration of the pandemic.

Pipeline Update

Although COVID-19 has impacted timelines of certain clinical studies, the company remains on track with regulatory activities related to the new drug application seeking approval for ALKS 3831 as a treatment for schizophrenia and bipolar I disorder. The company is preparing for an advisory Committee meeting ahead of the November 2020 PDUFA date.

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

Zacks Rank and Stocks to Consider

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

A couple of better-ranked stock from the biotech sector include Seattle Genetics, Inc. SGEN and Ultragenyx Pharmaceutical Inc. RARE, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Seattle Genetics’ loss per share estimates have narrowed from $2.95 to $2.87 for 2020 in the past 30 days. The company’s average four-quarter positive earnings surprise is11.66. The stock is up 20.9% so far this year.

Ultragenyx’s loss per share estimates have narrowed from $6.17 to $6.03 for 2020 in the past 30 days. The company’s stock has surged 49% so far this year.

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Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
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