Alkermes' first quarter 2014 adjusted loss of $0.05 per share was
wider than the Zacks Consensus Estimate of a loss of $0.01 due to
lower revenues. Lower revenues from manufacturing and royalties
brought down Alkermes' top line. Alkermes still expects to record
adjusted earnings per share in the range of $0.41-$0.54 in 2014.
Alkermes' efforts to develop its pipeline is however encouraging.
Positive phase III data from a pivotal study on the company's
schizophrenia candidate aripiprazole lauroxil was heartening.
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, Massachusetts 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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