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Alkermes' (ALKS) Q2 Earnings & Revenues Surpass Estimates

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Zacks Equity Research
·4 min read
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Alkermes plc. ALKS reported adjusted earnings of 6 cents per share in the second quarter of 2020, lower than earnings of 9 cents reported in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of a cent.

The company’s revenues of $247.5 million in the quarter decreased 13.1% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $239 million. During the second quarter, the performance of the Aristada product family, together with disciplined management of expenses, partially offset the negative impact on Vivitrol net sales that resulted from COVID-19-related decreases in patient visits to healthcare providers and treatment centers.

Alkermes’ shares have declined 7.3% so far this year against the industry’s growth of 5%.

Quarter Details

Total manufacturing and royalty revenues were up 9.8% year over year to $116.5 million.  Manufacturing and royalty revenues from J&J’s (JNJ) drugs — Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta — were $83.1 million, down9.6% year over year.

Vivitrol sales decreased about 19% year over year to $71.6 million. The decline resulted from reduced new patient starts and more restricted access to healthcare providers due to COVID-19-related disruptions.

Aristada sales came in at $58.8 million, up 21% year over year, driven primarily by increased breadth of the Aristada provider base and growth in the drug’s two-month dose.

Research and development (R&D) expenses were $94.2 million, down 9.8% year over year.

Selling, general and administrative (SG&A) expenses were $132 million, down 17.5% year over year.

2020 Guidance

The expectations for 2020 reflect the anticipated net impacts of the COVID-19 pandemic on Alkermes' operating and financial results.  The company expects that the negative impact of COVID-19 on Vivitrol net sales will be partially offset by a decrease in operating expenses, notably within R&D. 

The company now expects total revenues of $965-$1,005 million, down from the previous expectation of $1,030-$1,080 million. It expects Vivitrol net sales of $270-$300 million, down from the prior expectations of $340-$355 million. Aristada net sales are expected to be $220-$235 million, same as the prior expectation.

Earnings are expected between break-even and 19 cents, down from the earlier expectation of 25 cents- 43 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 BioMarin Pharmaceutical Inc. BMRN and Applied Therapeutics Inc. APLT  all 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 $3.14 to $4.23 for 2020 and from $3.35 to $4.63 for 2021 in the past 60 days.

BioMarin’s earnings per share estimates have increased from $1.51 to $1.57 for 2020 and from $2.46 to $2.80 for 2021 in the past 60 days.

Applied Therapeutics’ earnings per share estimates have increased from 46 cents  to 47 cents for 2021 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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Alkermes plc (ALKS) : Free Stock Analysis Report
 
BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report
 
Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report
 
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