) reported earnings of 14 cents per share in the third quarter of
fiscal 2013 (ended December 31, 2012). The Zacks Consensus
Estimate was 12 cents per share.
Alkermes suffered a loss of 13 cents per share in the year-ago
quarter. The company swung to a profit in the reported quarter on
the back of higher revenues and lower operating expenses.
Total revenue for the third quarter of fiscal 2013 jumped 8.2%
year-over-year to $135.9 million year-over-year. The increase in
total revenues during the reported quarter was primarily due to
growth in the company's key products. Revenues surpassed the
Zacks Consensus Estimate of $126 million.
In the reported quarter, Alkermes recorded $52.5 million (up
10.3% year-over-year) of manufacturing and royalty revenues from
its long-acting atypical antipsychotic franchise comprising
Risperdal Consta and Invega Sustenna/Xeplion. These drugs are
Johnson & Johnson
). Worldwide end-market sales of these drugs at the end of the
third quarter of fiscal 2013 were approximately $586 million,
reflecting an increase of 13% compared to the year-ago
Alkermes recorded manufacturing and royalty revenues of $18.4
million (up 73.6% year-over-year) in the reported quarter from
Ampyra/Fampyra. In the US, unaudited end-market sales of Ampyra
for the third quarter of fiscal 2013 were approximately $73
million (up 28%), whereas outside the US, end-market sales of
Fampyra (ex-US trade name of Ampyra) for the quarter were
approximately $10.5 million (up 1%).
Alkermes earned royalty of $5.3 million on revenues of type II
diabetes treatment Bydureon, which is marketed by
). Royalty revenues for Bydureon were based on end-market net
sales of approximately $65 million.
Vivitrol, a legacy Alkermes product, performed well in the
third quarter of fiscal 2013. Sales of the product climbed
approximately 50% year over year to $15.9 million.
During the quarter, Alkermes also earned revenues from Tricor
145 ($6.8 million) and Ritalan LA/Focalin XR franchise ($9.8
million). Research and development (R&D) revenue from
collaborations came in at $1.7 million in the third quarter of
fiscal 2013 as opposed to $2.3 million a year ago.
Reported total expenses were $110.6 million in the third
quarter of fiscal 2013, down from the year-ago quarter of $130.6
million. The reduction in total expenses was primarily due to the
timing of clinical trial expenses and certain merger-related
expenses which were incurred in the year-ago quarter.
Fiscal 2013 Projection Upped
Alkermes increased its outlook for fiscal 2013. Alkermes now
expects adjusted earnings per share in the range of 99 cents to
$1.13 (previous: 88 cents to $1.02). The Zacks Consensus Estimate
is currently 64 cents.
The company also upped its revenue guidance for fiscal 2013 to
the range of $520 million to $545 million (previous guidance:
$510-$540 million). The higher guidance is due to increased net
sales expectation of Vivitrol, which is now expected to generate
around $55-$60 million of net product sales (previous: $45
million to $55 million) in fiscal 2013.
We believe Alkermes' new revenue guidance is achievable. The
Zacks Consensus Estimate of $525 million is towards the lower end
of the company's new revenue guidance range.
Alkermes lowered its R&D guidance for fiscal 2013 in the
range of $140 million to $150 million from the previous range of
$150 million to $160 million. The company however maintained its
selling, general and administrative expenses guidance at $120
million to $130 million.
Alkermes currently carries a Zacks Rank #2 (Buy). Elan also
carries a comparable rank. Meanwhile,
) looks more attractive in the pharma sector carrying a Zacks
Rank #1 (Strong Buy).
ALKERMES INC (ALKS): Free Stock Analysis
BRISTOL-MYERS (BMY): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
TARGACEPT INC (TRGT): Free Stock Analysis
To read this article on Zacks.com click here.