Alkermes plc (ALKS): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


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 II diabetes).

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 market.

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 others.

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 calendar year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: ALKS

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