) reported earnings of 3 cents per share (including depreciation
and stock-based compensation expenses) in the second quarter of
fiscal 2013 (ended September 30, 2012). The Zacks Consensus
Estimate was 7 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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This was the fourth full quarter following the purchase of
) drug delivery unit, Elan Drug Technologies (EDT). We remind
investors that Alkermes purchased the EDT unit in September 2011.
Alkermes suffered a loss of 14 cents per share in the year-ago
quarter. However, results of the year-ago quarter included 14
days results of Elan's EDT unit. The company, prior to the
purchase of the EDT unit, was headquartered in Cambridge,
Massachusetts. However, the company shifted its base to Dublin,
Ireland, post merger.
Total revenue for the second quarter of fiscal 2013 jumped 72% to
$124 million. The massive jump was attributable to the 98.6% rise
in manufacturing and royalty revenues due to the expanded product
portfolio following the purchase of the EDT unit. Revenues
surpassed the Zacks Consensus Estimate of $121.0 million.
In the reported quarter, Alkermes recorded $50.3 million as
manufacturing and royalty revenues from its long-acting atypical
antipsychotic franchise comprising Risperdal Consta and Invega
Sustenna/Xeplion. These schizophrenia drugs are marketed by
Johnson & Johnson
). Alkermes recorded manufacturing and royalty revenues of $5
million in the reported quarter from Ampyra/Fampyra..
Ampyra/Fampyra is marketed for improving walking ability in
multiple sclerosis patients.
Alkermes earned $3.3 million in royalty revenues from type II
diabetes treatment Bydureon. Alkermes co-promotes the drug with
Amylin Pharmaceuticals (now a wholly owned subsidiary of
Bristol-Myers Squibb Company
Vivitrol, a legacy Alkermes product, performed well in the second
quarter of fiscal 2013. Sales of the product climbed
approximately 53.5% year over year to $15.2 million.
During the quarter, Alkermes also earned revenues from its legacy
products; Tricor 145 ($12.5 million) and Ritalan LA/Focalin XR
franchise ($9.1 million).
Research and development (R&D) revenue from collaborations
came in at $1.6 million in the second quarter of fiscal 2013 as
opposed to $8 million a year ago. R&D revenues in the year
ago quarter were boosted by a $7 million milestone payment
pertaining to the launch of Bydureon in the EU in July 2011.
Total expenses at Alkermes (excluding non-cash charges of $29.3
million) were $89.3 million in the second quarter of fiscal 2013.
Total expenses were $81.8 million (excluding amortization of
acquired intangible assets) in the year-ago quarter.
Fiscal 2013 Projection Upped
Alkermes upped its outlook for fiscal 2013. The company now
expects revenues in the range of $510 million to $540 million
(previous guidance: $490-$530 million). We expect Alkermes to
achieve the guidance given its expanded product portfolio.
Consequently, the Zacks Consensus Estimate of $518 million is
well within the company's guidance range.
Alkermes also upped its projection for adjusted earnings in
fiscal 2013. Adjusted earnings are now expected in the range of
88 cents-$1.04 (previous guidance: 69 - 84 cents per share). The
Zacks Consensus Estimate is 65 cents per share for fiscal