) adjusted earnings (including stock-based compensation expense
but excluding other special items) of 24 cents per share for the
3-month period ended Jun 30, 2013 compared unfavorably with the
year-ago earnings of 32 cents per share.
Results in the reported period were hurt by lower revenues and
higher operating expenses. The Zacks Consensus Estimate hinted at
earnings of $0.16 per share.
Total revenue for the 3-month period ended Jun 30, 2013 declined
9% year over year to $138.6 million. Results in the year-ago
quarter were aided by the inclusion of intellectual property
license revenue worth $200 million, which is not related to key
development programs. Revenues surpassed the Zacks Consensus
Estimate of $135 million.
For the 3-month period ended Jun 30, 2013, Alkermes recorded
$56.2 million (up 15.6% year over year) of manufacturing and
royalty revenues from its long-acting atypical antipsychotic
franchise comprising Risperdal Consta and Invega
The drugs are marketed by
). Alkermes recorded manufacturing and royalty revenues of $19.9
million (up 15.7% year over year) from Ampyra (EU trade name:
Fampyra). Alkermes earned royalty revenues of $16.4 million from
type II diabetes treatment Bydureon. Bydureon is co-marketed with
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Vivitrol, a legacy Alkermes product, performed well during the
3-month period. Sales of the product climbed approximately 40%
year over year to $17.4 million. Alkermes also earned revenues
from TriCor 145 ($4.1 million) and Ritalin LA/Focalin XR
franchise ($11.2 million) and Verelan ($6.5 million). Reported
total expenses were $125.1 million during the period, up from the
year-ago figure of $120.1 million.
We note that in May 2013, Alkermes had announced a change in its
fiscal year-end from Mar 31 to Dec. 31. The company maintained
its outlook (provided in May) for the 9-month period starting
from Apr 2013 to Dec 2013. The company still expects adjusted
earnings for the period to be in the range of $0.61 - $0.75 per
share. Revenues for the 9-month period are projected in the range
of $395 - $425 million.
Alkermes, a biopharmaceutical company, carries a Zacks Rank #3
(Hold). However, another stock which appears to be more
attractive in the biopharma space is
) with a Zacks Rank #1 (Strong Buy).