Alkermes plc ALKS reported adjusted earnings from continuing operations of 73 cents per share for third-quarter 2024, which missed the Zacks Consensus Estimate of 78 cents. The company had reported adjusted earnings of 87 cents per share in the year-ago quarter.
ALKS’ total revenues of $378.1 million declined 0.7% from the year-ago quarter’s level owing to lower manufacturing and royalty revenues. The top line, also, missed the Zacks Consensus Estimate of $386 million.
Shares of Alkermes were down 3.6% on Oct. 24, owing to the weaker-than-expected third-quarter results. The stock continued to lose another 2.4% in after-hours trading.
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Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary products portfolio grew 17.8% year over year during the third quarter.
Sales of the proprietary drug, Vivitrol, increased almost 14.5% year over year to $113.7 million due to stability in the alcohol dependence indication. The figure beat the Zacks Consensus Estimate of $106 million as well as our model estimate of $103.6 million.
Aristada sales increased 3.5% year over year to $84.7 million. The figure missed the Zacks Consensus Estimate of $89 million as well as our model estimate of $91.4 million.
Lybalvi generated sales of $74.7 million, up almost 47.3% year over year, primarily driven by growth in underlying demand. Lybalvi's sales beat the Zacks Consensus Estimate of $74 million but missed our model estimate of $75.9 million.
Total manufacturing and royalty revenues decreased 29.5% year over year to $105.1 million, owing to decreased revenues from long-acting Invega products.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up almost 5.7% year over year to $32.6 million. Royalty revenues from Invega products were $58.4 million in the third quarter compared with $76.1 million reported in the year-ago quarter.
Research and development expenses totaled $59.9 million, down almost 7.8% year over year, reflecting investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $150.4 million, down almost 3.8% year over year.
As of Sept. 30, 2024, Alkermes had cash and cash equivalents of $927.8 million compared with $962.5 million as of June 30, 2024.
Shares of Alkermes have lost 3.3% year to date compared with the industry’s decline of 3.6%.
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Alkermes reiterated its revenue guidance provided in February this year.
The company continues to expect net sales for Vivitrol to be in the range of $410-$430 million. Aristada sales are anticipated in the band of $340-$360 million. Lybalvi’s net sales are expected in the $275-$295 million range.
In August 2024, Alkermes initiated the phase II Vibrance-2 study, evaluating the safety and efficacy of its novel, investigational, oral orexin 2 receptor agonist ALKS 2680 versus placebo in adults with narcolepsy type 2 (NT2).
The primary endpoint of the Vibrance-2 study will check whether treatment with ALKS 2680 leads to a greater decrease in sleepiness versus placebo, as measured by the change in mean sleep latency on the maintenance of wakefulness test.
The company initiated the Vibrance-2 study following the success of the phase Ib proof-of-concept study, which evaluated ALKS 2680 for treating narcolepsy.
We note that the phase II Vibrance-1 study is investigating ALKS 2680 in adults with narcolepsy type 1 (NT1). If successfully developed and upon potential approval, ALKS 2680 can serve an area of high unmet medical need in the treatment of NT1 and NT2.
Alkermes currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the sector are Fate Therapeutics, Inc. FATE, Castle Biosciences, Inc. CSTL and Elevation Oncology, Inc. ELEV, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Fate Therapeutics’ 2024 loss per share have narrowed from $1.74 to $1.73. Loss per share estimates for 2025 have narrowed from $1.71 to $1.69 during the same time. Year to date, shares of FATE have plunged 24.9%.
FATE’s earnings beat estimates in three of the trailing four quarters while meeting the same on the remaining occasion with the average surprise being 18.22%.
In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from $1.28 to 58 cents. Loss per share estimates for 2025 have narrowed from $2.15 to $2.13 during the same period. Year to date, shares of CSTL have surged 47.3%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 132.32%.
In the past 60 days, estimates for Elevation Oncology’s 2024 loss per share have narrowed from 86 cents to 82 cents. Loss per share estimates for 2025 have narrowed from 90 cents to 86 cents during the same time. Year to date, shares of ELEV have increased 16.2%.
ELEV’s earnings beat estimates in three of the trailing four quarters while missing on the remaining occasion, the average surprise being 12.05%.
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