) reported earnings of 28 cents per share (including depreciation
and stock-based compensation expenses) in the first-quarter of
fiscal 2013 (ended June 30, 2012). The Zacks Consensus Estimate was
10 cents per share.
This was the third 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 4 cents 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 revenue for the first quarter of fiscal 2013 jumped 146%
to $152.2 million. The massive jump was attributable to the 182.8%
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 $127.0 million.
In the reported quarter, Alkermes recorded $47.9 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 $17.1 million in the reported quarter.
Alkermes earned $3 million in royalty revenues from type II
diabetes treatment Bydureon. Alkermes co-promotes the drug with
Vivitrol, a legacy Alkermes product, performed well in the first
quarter of fiscal 2013. Sales of the product climbed approximately
27.8% year over year to $12.4 million. This was the 12th
consecutive quarter in which the product exhibited growth.
During the quarter, Alkermes also earned revenues from its
legacy products, Tricor 145 ($12 million); Ritalan LA/Focalin XR
franchise ($10.9 million) and Verelan ($6 million).
Research and development (R&D) revenue from collaborations
came in at $1.5 million in the first quarter of fiscal 2013 as
opposed to $3.3 million a year ago.
Total expenses at Alkermes (excluding amortization of acquired
intangible assets) climbed 44.7% to $109.7 million. The increase
was primarily attributable to the rise in research and development
expenses following the merger.
Fiscal 2013 Projection Backed
Alkermes reaffirmed its outlook for fiscal 2013. The company
continues to expect revenues in the range $490-$530 million. The
Zacks Consensus Estimate of $511 million is well within the
company's guidance range.
Alkermes continues to expect adjusted earnings in fiscal 2013 in
the range of 62 cents-77 cents per share. The Zacks Consensus
Estimate is 24 cents per share for fiscal 2013.
Currently, we have an Outperform recommendation on Alkermes in
the long run. The company carries a Zacks #2 Rank (Buy rating) in
the short run.
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