Jefferies & Company Projects Alkermes Sales of $40M

Vivitrol drug maker Alkermes, Inc. ALKS announced last night that it received FDA approval for an expanded indication that includes "the prevention of relapse to opioid dependence," Jefferies & Company reports. “We are currently projecting CY11 sales of $40M,” Jefferies & Company writes. “The product has an ~75% gross margin. If one assumes the product was break-even at $25M, then the incremental $11M in gross profit should drop to the bottom line and contribute ~$0.12 to CY11 earnings (assuming no taxes).” Alkermes currently trades for $15.68.