Alkermes' (ALKS) Earnings & Revenues Surpass Estimates in Q2
Alkermes plc ALKS reported second-quarter 2022 adjusted earnings of 6 cents per share, beating the Zacks Consensus Estimate of 4 cents. The company had reported adjusted earnings of 30 cents per share in the year-ago quarter.
The company’s revenues of $276.2 million decreased 9% from the year-ago quarter. The top line, however, beat the Zacks Consensus Estimate of $273 million.
Shares of Alkermes were down 5.3% on Wednesday, following the announcement of the second-quarter results. The stock has rallied 19.6% so far this year against the industry’s decline of 19.5%.
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Quarter in Detail
Total manufacturing and royalty revenues plunged 40% year over year to $85.3 million due to the partial termination of the license agreement related to sales of long-acting Invega products in the United States by Janssen, a subsidiary of J&J.
Sales of proprietary drug, Vivitrol (for alcohol and opioid dependence), increased 8.7% year over year to $96.1 million, while the same for Aristada (for schizophrenia) increased 3% year over year to $74.6 million. On the second-quarter conference call, management stated that it expects moderate growth for Vivitrol and Aristada in the next quarter, while robust growth is expected in the fourth quarter.
Vumerity revenues increased around 29.1% to $26.2 million.
Newly approved medicine, Lybalvi (olanzapine and samidorphan), generated sales worth $20.1 million following its launch in October 2021. Sales of the drug increased 44.6% sequentially, primarily driven by demand growth.
In June 2021, the FDA approved Lybalvi for treating adults suffering from schizophrenia or bipolar I disorder.
Research and development (R&D) expenses were $92.9 million, down 4.7% year over year.
Selling, general and administrative (SG&A) expenses were $150.4 million, up 8% year over year.
As of Jun 30, 2022, Alkermes had cash and cash equivalents worth $760 million compared with $758.7 million on Mar 31, 2022. Total outstanding debt was $294.5 million as of Jun 30, 2022.
2022 Guidance
Alkermes raised its total revenue guidance for 2022.
The company now expects revenues in the range of $1,050-$1,120 million compared with the previous expectation of $1,000-$1,090 million. The Zacks Consensus Estimate for revenues stands at $1.09 billion.
Alkermes narrowed the sales guidance for Vivitrol and Aristada.
Vivitrol’s net sales are now expected between $365–$385 million compared to the earlier projection of $355–$385 million. Aristada’s net sales are now expected between $295–$315 million compared with $290–$320 million expected earlier.
Owing to the strong launch, the company raised the full-year sales guidance for Lybalvi. Lybalvi’s net sales are now expected between $75–$90 million compared with the previous projection of $55–$75 million.
Pipeline Updates
Alkermes is conducting a phase III ARTISTRY-7 study, evaluating the anti-tumor activity and safety of its pipeline candidate, nemvaleukin alfa, in combination with Merck’s MRK Keytruda (pembrolizumab), an anti-PD-1 antibody, for treating patients with platinum-resistant ovarian cancer.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK is also studying Keytruda for addressing yet more cancer indications.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Zacks Rank & Other Stocks to Consider
Alkermes currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the biotech sector include ALX Oncology Holdings Inc. ALXO and Precision BioSciences, Inc. DTIL, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALX Oncology’s loss per share estimates narrowed 1.4% for 2022 and 3% for 2023 in the past 60 days.
Earnings of ALX Oncology have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. ALXO delivered an earnings surprise of 15.48%, on average.
Precision BioSciences’ loss per share estimates narrowed 5.8% for 2022 and 16.2% for 2023 in the past 60 days.
Earnings of Precision BioSciences have surpassed estimates in each of the trailing four quarters. DTIL delivered an earnings surprise of 76.15%, on average.
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