Alkermes' third-quarter 2014 adjusted loss of $0.25 per share was
much wider than the loss of 5 cents incurred in the year-ago
quarter. The Zacks Consensus Estimate was a loss of 12 cents per
share. Higher costs hurt results in the reported quarter. Total
revenues in the quarter climbed 14.4% to $159.9 million, beating
the Zacks Consensus Estimate of $156.7 million. Alkermes continues
to expect to record adjusted earnings per share in the range of
$0.19 to $0.32 in 2014. Alkermes' efforts to develop its pipeline
are encouraging. The most advanced candidate in the company's
pipeline is aripiprazole lauroxil for schizophrenia. Management is
highly bullish on this candidate. We maintain our Neutral
recommendation on the stock.
Dublin, Ireland-based Alkermes plc was formed following the Sep
2011 merger of Waltham, MA-based Alkermes, Inc. and Elan Drug
Technologies (EDT), the drug delivery unit of Elan Corporation. The
combined entity is a fully integrated global biopharmaceutical
company that possesses a diversified product portfolio (inclusive
of more than 20 products) and a robust pipeline focusing on central
nervous system disorders such as addiction, schizophrenia and
depression. Elan was acquired by Perrigo last year.
The key marketed products at Alkermes include Risperdal Consta
(schizophrenia and bipolar disorder), Xeplion (schizophrenia),
Vivitrol (opioid and alcohol dependence), Ampyra/Fampyra (improving
walking ability in multiple sclerosis patients) and Bydureon (type
In Apr 2013, Alkermes' board of directors approved a
restructuring plan related to its manufacturing facility at
Athlone, Ireland. The company will stop manufacturing certain
products, whose demand waned due to generic competition in the
Apart from its headquarters in Dublin, the company possesses a
research and development center and corporate offices in Waltham,
MA. Moreover, manufacturing facilities are located in places, such
as Athlone, Ireland, Gainesville, GA and Wilmington, OH.
Alkermes has a robust pipeline. The candidates under development
at Alkermes include ALKS 5461 for treating patients suffering from
major depressive disorder, aripiprazole lauroxil (formerly known as
ALKS 9070) and ALKS 3831 for treating schizophrenia among
In May 2013, Alkermes announced a change in its fiscal year-end
from Mar 31 to Dec 31. For the nine-month period (Apr 1- Dec 31,
2013), Alkermes recorded revenues of $433 million with the U.S.,
Ireland and the rest of the world contributing 62.1%, 1.3% and
36.6%, respectively. Alkermes' fiscal year now coincides with the
Alkermes plc (ALKS): Read the Full Research
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