) adjusted earnings (including stock-based compensation expense
but excluding other special items) of 12 cents per share for the
3-month period ended Sep 30, 2013 compared favorably with the
year-ago earnings of 10 cents per share. The year-over-year
growth in earnings was attributable to higher revenues. The Zacks
Consensus Estimate hinted at earnings of 13 cents per share.
ALKERMES INC (ALKS): Free Stock Analysis
BRISTOL-MYERS (BMY): Free Stock Analysis
ELAN CP PLC ADR (ELN): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
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Total revenue for the 3-month period ended Sep 30, 2013 climbed
12.7% to $139.8 million. Results in the reported quarter were
boosted by higher product sales. Alkermes' product portfolio has
been strengthened significantly following its purchase of
) Elan Drug Technologies (EDT) unit in Sep 2011. Revenues
surpassed the Zacks Consensus Estimate of $135 million.
For the 3-month period ended Sep 30, 2013, Alkermes recorded
$62.6 million (up 24.5% 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
Johnson & Johnson
). Alkermes recorded manufacturing and royalty revenues of $12.6
million (up 152% year over year) from Ampyra (EU trade name:
Fampyra). Alkermes earned royalty revenues of $7 million from
type II diabetes treatment Bydureon, as opposed to $3 million in
the year-ago period. Bydureon is co-marketed with
Bristol-Myers Squibb Company
Vivitrol, a legacy Alkermes product, performed well during the
3-month period. Sales of the product climbed approximately 26% to
$19.2 million. Alkermes also earned revenues from TriCor 145
($3.5 million) and Ritalin LA/Focalin XR franchise ($9.2 million)
and Verelan ($4.4 million). Reported total expenses were $143.7
million during the period, up from the year-ago figure of $118.6
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 for all items apart from selling,
general and administrative (SG&A) expenses.
SG&A expenses for the 9- month period are now projected in
the range of $105-$115 million (old guidance: $95-$105 million).
The increase was due to activities related to the potential
launch of phase III schizophrenia candidate aripiprazole
lauroxil. The rise in SG&A guidance also reflects the
company's increased investment on Vivitrol. Alkermes 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 currently carries a Zacks Rank #3 (Hold). Johnson &
Johnson looks attractive with a Zacks Rank #2 (Buy).