Alkermes (ALKS) Q4 Earnings & Revenues Surpass Estimates

Alkermes plc. ALKS reported adjusted earnings of 34 cents per share in the fourth quarter of 2018, outperforming the Zacks Consensus Estimate of a loss of 6 cents. The bottom line also exceeded the adjusted earnings of 31 cents recorded in the year-ago quarter.

The company's revenues of $315.8 million in the quarter increased 14.7% year over year. The top line beat the Zacks Consensus Estimate of $253 million.

Results were driven by strong growth in the company's proprietary products - Vivitrol and Aristada. Net sales for Vivitrol and Aristada were $132.7 million in the quarter, reflecting 28% increase from the year-ago quarter.

Alkermes' shares have lost 49% in the past year compared with the industry's decline of 17.1%.

Revenues Rise

Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta were $81.4 million, up 4.1% year over year. The same from Ampyra/Fampyra were up 1.8% year over year to $38.8 million. Research and development revenues were $15.6 million, of which $14.4 million was related to the collaboration with Biogen Inc. BIIB for BIIB098.

Vivitrol sales improved 11% year over year to $83.8 million.

Aristada sales came in at $48.8 million, up 72% year over year.

Costs Rise

Research and Development (R&D) expenses were $108.9 million, down 4.3% year over year.

Selling, General and Administrative (SG&A) expenses were $141.2 million, up 27.4% year over year.

Full-Year 2018 Results

For 2018, adjusted earnings came in at 61 cents per share compared with 17 cents in 2017.

Revenues in 2018 increased 21% year over year to $1.09 billion.

2019 Outlook

The company expects total revenues of $1.14-$1.19 billion, driven by anticipated growth of the company's proprietary products and an expected $150-million milestone payment from Biogen in the fourth quarter, related to the potential FDA approval of diroximel fumarate (BIIB098).

The Zacks Consensus Estimate for 2019 revenues is $1.10 billion.

Alkermes expects Vivitrol sales to be $330-$350 million, while Aristada sales are anticipated to be $210-$230 million. The company expects R&D expenses to be $450-$480 million. Alkermes' guidance for SG&A expenses is $590-$620 million.

Alkermes expects earnings per share to be 25-43 cents. The Zacks Consensus Estimate for 2019 earnings is 62 cents.

Pipeline Update

In November 2018 , Alkermes announced positive top-line results from ENLIGHTEN-2, a pivotal phase III study of ALKS 3831 compared to Lilly's LLY Zyprexa (olanzapine) in patients with stable schizophrenia. In the study, ALKS 3831 met the pre-specified co-primary endpoints.

In December 2018, Alkermes and Biogen announced the submission of a new drug application (NDA) to the FDAfor diroximel fumarate, a novel oral fumarate in development for the treatment of relapsing forms of multiple sclerosis.

In January 2019, Alkermes received a Complete Response Letter from the FDA regarding the NDA for ALKS 5461, for the adjunctive treatment of major depressive disorder.

Alkermes plc Price

Alkermes plc Price | Alkermes plc Quote

Zacks Rank & Another Key Pick

Alkermes currently carries a Zacks Rank #2 (Buy).

Another top-ranked stock in the biotech sector is Celgene Corporation CELG , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Celgene's earnings per share estimates have moved up from $10.21 to $10.69 for 2019 and from $11.61 to $12.62 for 2020 in the past 60 days. The company delivered a positive earnings surprise in all the trailing four quarters, with average beat of 2.65%.

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Eli Lilly and Company (LLY): Free Stock Analysis Report

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Alkermes plc (ALKS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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