) reported break-even earnings (including depreciation and
stock-based compensation expenses) in the fourth quarter of fiscal
2012 (ended March 31, 2012). The Zacks Consensus Estimate hinted at
a loss of $0.15 per share.
This was the second full quarter following the purchase of
) drug delivery unit, Elan Drug Technologies (EDT). We remind
investors that Alkermes purchased the EDT unit in September
Alkermes suffered a loss of $0.14 per share in the year-ago
quarter. However, results of the year-ago quarter only comprised
figures from the standalone Alkermes. The company, prior to the
purchase of the EDT unit, was headquartered in Cambridge,
Massachusetts. However, the company shifted its base to Dublin,
Total revenues for the fourth quarter of fiscal 2012 jumped 155%
to $130.5 million. The massive jump was attributable to the 160.5%
rise in manufacturing and royalty revenues due to the expanded
product portfolio following the purchase of the EDT unit. Revenues
topped the Zacks Consensus Estimate of $126.0 million.
In the reported quarter, Alkermes recorded $45.3 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 from
Ampyra/Fampyra, marketed for improving walking ability in multiple
sclerosis patients, were $13.8 million in the reported quarter.
Alkermes earned $8.2 million in royalty revenues from type II
diabetes treatment Bydureon, including a milestone payment of $7
million from partner
) following the U.S. launch of the therapy in February 2012.
Vivitrol, a legacy Alkermes product, performed well in the final
quarter of fiscal 2012. Sales of the product climbed approximately
29% year over year to $11.0 million. This was the eleventh
consecutive quarter in which the product exhibited growth.
During the quarter, Alkermes also earned revenues from its
legacy products, Tricor 145 ($10.3 million); Ritalan LA/Focalin XR
franchise ($10 million); and Verelan ($6.1 million).
Research and development (R&D) revenue from collaborations
went up to $8.8 million in the fourth quarter of fiscal 2012 from
$0.1 million a year ago.
Total expenses at Alkermes (excluding amortization of acquired
intangible assets) climbed 102% to $130.7 million. The massive
increase was primarily attributable to the rise in the cost of
goods sold and research and development expenses following the
For fiscal 2012, Alkermes suffered a loss (including
depreciation and stock-based compensation expenses) of $0.09 per
share. The Zacks Consensus loss estimate was $0.61 per share. The
company suffered a loss of $0.45 per share a year ago.
Revenues jumped 109% to $390 million, following the expanded
product portfolio due to the merger. Revenues were above the Zacks
Consensus Estimate of $385 million.
Fiscal 2013 Projection
Apart from announcing the financial results, Alkermes also
provided an outlook for fiscal 2013. Revenues are projected in the
range of $490-$530 million, well above fiscal 2012 levels. The
Zacks Consensus Estimate of $516 million is well within the
company's guidance range.
R&D expenses are projected in the range of $155-$165
million. SG&A expenses are projected in the range of $120 -$130
Alkermes expects adjusted earnings in fiscal 2013 in the range
of $0.62-$0.77 per share. The Zacks Consensus Estimate hints at a
loss of $0.22 per share for fiscal 2013.
Currently, we have a Neutral stance on Alkermes in the long run.
The company carries a Zacks #3 Rank ("Hold" rating) in the short
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