Alkermes PLC (ALKS) Q3 2024 Earnings Call Highlights: Strong Proprietary Product Growth and ...

In This Article:

  • Total Revenue: $378.1 million for Q3 2024.

  • Proprietary Product Portfolio Growth: 18% year-over-year.

  • Vivitrol Net Sales: $113.7 million, 14% year-over-year growth.

  • Aristada Net Sales: $84.7 million.

  • Lybalvi Net Sales: $74.7 million, 37% year-over-year growth.

  • Manufacturing and Royalty Revenues: $105.1 million.

  • Cost of Goods Sold: $63.1 million.

  • R&D Expenses: $59.9 million.

  • SG&A Expenses: $150.4 million.

  • GAAP Net Income from Continuing Operations: $92.8 million.

  • Non-GAAP Net Income from Continuing Operations: $121.4 million.

  • EBITDA from Continuing Operations: $112.3 million.

  • Cash and Total Investments: $927.8 million.

  • Share Repurchase: $116 million deployed to repurchase 4.4 million shares.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Alkermes PLC (NASDAQ:ALKS) reported strong growth in its proprietary product portfolio, with net sales reaching $273 million, reflecting an 18% year-over-year increase.

  • Vivitrol net sales grew by 14% year-over-year, driven by demand in the alcohol dependence indication, with expectations to reach the high end of the $410-$430 million range for the full year.

  • Lybalvi showed significant growth with net sales of $74.7 million, a 37% year-over-year increase, supported by strong demand and expanded prescriber reach.

  • The company is in a strong financial position with $927.8 million in cash and investments, and has repurchased 4.4 million shares as part of a $400 million share repurchase program.

  • Alkermes PLC (NASDAQ:ALKS) is advancing its ALKS 2680 clinical program with positive phase 1B data, and phase 2 studies are underway, expected to be a transformative catalyst for the company.

Negative Points

  • The Aristada product family experienced softness in the schizophrenia long-acting antipsychotic market, with expectations for net sales to be at the lower end of the $340-$360 million range.

  • Manufacturing and royalty revenues decreased, with a notable drop in revenues from long-acting Invega products, impacting overall financial performance.

  • The company anticipates a significant impact on royalty and manufacturing revenues in 2025, with a projected decrease of approximately $200 million due to the conclusion of certain royalties and manufacturing transitions.

  • Operating expenses are expected to increase modestly in 2025, driven by investments in the ALKS 2680 program and expansion of the psychiatry commercial footprint.

  • Alkermes PLC (NASDAQ:ALKS) faces competitive dynamics in the antipsychotic space, requiring increased investment in personal promotion to maintain market share.

Waiting for permission
Allow microphone access to enable voice search

Try again.