Alkermes' Q3 Earnings & Revenues Fall Shy of Estimates, Stock Down

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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.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

More on ALKS' Q3 Earnings

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.

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