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Alkermes' (ALKS) Q2 Earnings Miss Estimates, Revenues Beat
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Alkermes plc (ALKS - Free Report) reported adjusted earnings from continuing operations of 72 cents per share for second-quarter 2024, which missed the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 78 cents per share in the year-ago quarter.
ALKS’ total revenues of $399.1 million declined 35.3% from the year-ago quarter’s level owing to decreased manufacturing and royalty revenues. The top line, however, beat the Zacks Consensus Estimate of $394 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary products portfolio grew 16% year over year during the second quarter.
Sales of the proprietary drug, Vivitrol, increased almost 10% year over year to $111.9 million due to stability in the alcohol dependence indication. The figure beat the Zacks Consensus Estimate of $108 million as well as our model estimate of $110.7 million.
Aristada sales increased 4.4% year over year to $86 million due to increased new-to-brand prescriptions growth during the quarter. The figure was in line with the Zacks Consensus Estimate while slightly missing our model estimate of $86.5 million.
Lybalvi generated sales of $71.4 million, up almost 52% year over year, primarily driven by growth in underlying demand. Lybalvi's sales beat the Zacks Consensus Estimate of $67 million as well as our model estimate of $65 million.
Total manufacturing and royalty revenues decreased 66.4% year over year to $129.8 million, owing to decreased revenues from long-acting Invega products.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up almost 9% year over year to $35.2 million. Royalty revenues from Invega products were $78.7 million in the second quarter compared with $321.2 million reported in the year-ago quarter.
Research and development expenses totaled $59.6 million, down almost 12.6% year over year, reflecting investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $168.1 million, down 14.1% year over year. The decrease was primarily driven by operational efficiencies and some non-recurring expenses that were recorded in the year-ago quarter.
As of Jun 30, 2024, Alkermes had cash and cash equivalents of $962.5 million compared with $807.8 million as of Mar 31, 2024.
Shares of Alkermes have declined 4.5% year to date compared with the industry’s decline of 2.3%.
Image Source: Zacks Investment Research
2024 Guidance
Alkermes reiterated its revenue guidance provided in February this year.
The company continues to expect net sales for Vivitrol to be in the range of $410-$430 million. Aristada sales are anticipated in the band of $340-$360 million. Lybalvi’s net sales are expected in the $275-$295 million range.
Recent Updates
The Vibrance-1 phase II study is currently evaluating ALKS 2680 in patients with narcolepsy type 1.
Alkermes announced positive top-line data from a phase Ib study evaluating its novel, investigational, oral orexin 2 receptor (OX2R) agonist, ALKS 2680, as a once-daily treatment for narcolepsy in April 2024.
The data was from the narcolepsy type 2 (NT2) and idiopathic hypersomnia (IH) cohorts of the early-stage proof-of-concept study, which evaluated various doses of ALKS 2680 (5 mg, 12 mg and 25 mg) for the given indication.
Data from the study showed that treatment with ALKS 2680 led to clinically meaningful and statistically significant improvements in mean sleep latency on the Maintenance of Wakefulness Test versus placebo from baseline at all doses tested.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have improved from $4.41 to $4.44. Earnings per share estimates for 2025 have improved from $4.85 to $5.42. Year to date, shares of ANIP have jumped 14.8%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 53.90%.
In the past 60 days, estimates for Axsome’s 2024 loss per share have narrowed from $4.93 to $4.92, while loss per share estimates for 2025 have narrowed from 23 cents to 18 cents. Year to date, shares of AXSM have risen 7.1%.
AXSM’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 15.44%.
In the past 60 days, estimates for RAPT Therapeutics’ 2024 loss per share have narrowed from $2.94 to $2.93. Loss per share estimates for 2025 have narrowed from $2.06 to $2.05. Year to date, shares of RAPT have plunged 87.3%.
RAPT’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 3.19%.
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Alkermes' (ALKS) Q2 Earnings Miss Estimates, Revenues Beat
Alkermes plc (ALKS - Free Report) reported adjusted earnings from continuing operations of 72 cents per share for second-quarter 2024, which missed the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 78 cents per share in the year-ago quarter.
ALKS’ total revenues of $399.1 million declined 35.3% from the year-ago quarter’s level owing to decreased manufacturing and royalty revenues. The top line, however, beat the Zacks Consensus Estimate of $394 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary products portfolio grew 16% year over year during the second quarter.
Sales of the proprietary drug, Vivitrol, increased almost 10% year over year to $111.9 million due to stability in the alcohol dependence indication. The figure beat the Zacks Consensus Estimate of $108 million as well as our model estimate of $110.7 million.
Aristada sales increased 4.4% year over year to $86 million due to increased new-to-brand prescriptions growth during the quarter. The figure was in line with the Zacks Consensus Estimate while slightly missing our model estimate of $86.5 million.
Lybalvi generated sales of $71.4 million, up almost 52% year over year, primarily driven by growth in underlying demand. Lybalvi's sales beat the Zacks Consensus Estimate of $67 million as well as our model estimate of $65 million.
Total manufacturing and royalty revenues decreased 66.4% year over year to $129.8 million, owing to decreased revenues from long-acting Invega products.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up almost 9% year over year to $35.2 million. Royalty revenues from Invega products were $78.7 million in the second quarter compared with $321.2 million reported in the year-ago quarter.
Research and development expenses totaled $59.6 million, down almost 12.6% year over year, reflecting investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $168.1 million, down 14.1% year over year. The decrease was primarily driven by operational efficiencies and some non-recurring expenses that were recorded in the year-ago quarter.
As of Jun 30, 2024, Alkermes had cash and cash equivalents of $962.5 million compared with $807.8 million as of Mar 31, 2024.
Shares of Alkermes have declined 4.5% year to date compared with the industry’s decline of 2.3%.
Image Source: Zacks Investment Research
2024 Guidance
Alkermes reiterated its revenue guidance provided in February this year.
The company continues to expect net sales for Vivitrol to be in the range of $410-$430 million. Aristada sales are anticipated in the band of $340-$360 million. Lybalvi’s net sales are expected in the $275-$295 million range.
Recent Updates
The Vibrance-1 phase II study is currently evaluating ALKS 2680 in patients with narcolepsy type 1.
Alkermes announced positive top-line data from a phase Ib study evaluating its novel, investigational, oral orexin 2 receptor (OX2R) agonist, ALKS 2680, as a once-daily treatment for narcolepsy in April 2024.
The data was from the narcolepsy type 2 (NT2) and idiopathic hypersomnia (IH) cohorts of the early-stage proof-of-concept study, which evaluated various doses of ALKS 2680 (5 mg, 12 mg and 25 mg) for the given indication.
Data from the study showed that treatment with ALKS 2680 led to clinically meaningful and statistically significant improvements in mean sleep latency on the Maintenance of Wakefulness Test versus placebo from baseline at all doses tested.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Zacks Rank & Stocks to Consider
Alkermes currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. (ANIP - Free Report) , Axsome Therapeutics, Inc. (AXSM - Free Report) and RAPT Therapeutics, Inc. (RAPT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have improved from $4.41 to $4.44. Earnings per share estimates for 2025 have improved from $4.85 to $5.42. Year to date, shares of ANIP have jumped 14.8%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 53.90%.
In the past 60 days, estimates for Axsome’s 2024 loss per share have narrowed from $4.93 to $4.92, while loss per share estimates for 2025 have narrowed from 23 cents to 18 cents. Year to date, shares of AXSM have risen 7.1%.
AXSM’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 15.44%.
In the past 60 days, estimates for RAPT Therapeutics’ 2024 loss per share have narrowed from $2.94 to $2.93. Loss per share estimates for 2025 have narrowed from $2.06 to $2.05. Year to date, shares of RAPT have plunged 87.3%.
RAPT’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 3.19%.