Alkermes (ALKS) Q2 Loss Narrower Than Expected, Sales Beat

Alkermes plc (NASDAQ:ALKS) incurred loss of 13 cents per share (including the impact of share-based compensation expense) in the second quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 26 cents. In fact, the reported loss was wider than the year-ago loss of 18 cents.
Alkermes reported revenues of $218.8 million in the second quarter of 2017, up 12.1% year over year. The top line marginally surpassed the Zacks Consensus Estimate of $218 million.

Notably, Alkermes’ share price has declined 1.3% year to date, underperforming the Zacks classified industry’s gain of 10%.

Revenues

Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/ Xeplion and Invega Trinza/Trevicta were $82.2 million, up 18.1% year over year. However, the same from Ampyra/Fampyra were down 38% year over year to $25.3 million.

The company earned royalty revenues of $11.6 million on Bydureon, which was down 5.7%.

Vivitrol sales surged 40% year over year to $66.1 million.

Aristada sales came in at $22.7 million, compared with $10.3 million in the second quarter of 2016.

2017 Outlook

The company reiterated its guidance for 2017. Alkermes expects total revenue to be in the range of $870–$920 million, a 17%–23% increase from 2016, driven by continuing growth of Vivitrol and Aristada. Additionally, it expects Vivitrol’s net sales in the range of $280–$300 million.
For 2017, the earnings per share are estimated to be in the range of a loss of 10 cents to earnings of 10 cents.

Pipeline Update

Alkermes plans to submit a new drug application (NDA) for ALKS 5461 in major depressive disorder. The company remains on track to begin the rolling submission of the ALKS 5461 new drug application (NDA) in Aug 2017 and expect to complete the submission by year-end 2017.

Moving ahead, it continues to advance its late-stage product candidates and announced positive preliminary top-line results on ALKS 3831from phase III antipsychotic efficacy study as well as the approval and launch of the Aristada two-month dose in June.

Zacks Rank & Stocks to Consider

Alkermes is a Zacks Rank #4 (Sell) stock. Better-ranked health care stocks in the same space include Enzo Biochem, Inc. (NYSE:ENZ) , Exelixis, Inc. (NASDAQ:EXEL) and Sanofi (NYSE:SNY) . While Enzo Biochem and Exelixis sport a Zacks Rank #1 (Strong Buy), Sanofi carries Zacks Rank#2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enzo Biochem’s loss per share estimates narrowed from 12 cents to 7 cents for 2017 and from 11 cents to 3 cents for 2018, over the last 60 days. The company delivered positive earnings surprises in all the trailing four quarters, with an average beat of 55.83%. The share price of the company has increased 58.1% year to date.

Exelixis’ pulled off positive earnings surprises in all the trailing four quarters, with an average beat of 512.11%. The share price of the company has increased 81.8% year to date.

Sanofi’s earnings per share estimates increased from $3.18 to $3.24 for 2017 and from $3.30 to $3.38 for 2018, over last 30 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 5.10%. The share price of the company has increased 18.9% year to date.

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