We have upgraded
) to Outperform from Neutral following the revised adjusted
earnings guidance provided by the company for fiscal 2013 (ending
March 31, 2013).
ALKERMES INC (ALKS): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
ELAN CP PLC ADR (ELN): Free Stock Analysis
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Alkermes now expects to end fiscal 2013 with adjusted earnings in
the range of 69 cents - 84 cents, as opposed to the previously
forecasted range of 62 cents-77 cents per share. The company
boosted its guidance following the successful completion of the
refinancing of Alkermes' previously outstanding senior secured bank
debt in September 2012.
We are also impressed by the strong performance of the company in
the first quarter of fiscal 2013. This was the third full quarter
for the company, formed in September 2011 after the merger of
Alkermes Inc. and Elan Drug Technologies (EDT), the drug delivery
Alkermes beat the Zacks Consensus Estimate both in terms of
revenues as well as earnings. Results were boosted by the inclusion
of drugs belonging to the EDT unit of Elan. Alkermes' revenues
jumped 146% in the first quarter of fiscal 2013 due to the expanded
The key marketed products of the company 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
We are pleased with the US approval and launch of Bydureon earlier
in the year. The drug offers significant commercial potential.
Alkermes has co-developed the drug with Amylin Pharmaceuticals (now
a wholly owned subsidiary of
Bristol-Myers Squibb Company
)). We are also pleased by the pipeline progress at Alkermes.
In view of these positives, we believe that there is significant
scope for stock price appreciation from current levels.