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

By Zacks Investment Research,

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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 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 Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: ALKS

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