Alkermes Plans Separating Its Oncology Unit; Lifts FY22 Earnings Guidance

  • Alkermes plc ALKS is exploring separating its commercial-stage neuroscience and development-stage oncology business as part of an ongoing review of strategic alternatives for the oncology business.
  • Alkermes will retain its focus on neuroscience and drive its proprietary commercial product growth. 
  • The company will also focus on advancing the development of pipeline programs focused on neurological disorders, including ALKS 2680, an orexin 2 receptor agonist for narcolepsy. 
  • The oncology business would continue to focus on the discovery and development of cancer therapies, including the continued development of nemvaleukin alfa (nemvaleukin). 
  • Nemvaleukin is currently in potential registration enabling studies in two difficult-to-treat tumor types: platinum-resistant ovarian cancer and mucosal melanoma. 
  • The separation, if consummated, is expected to be completed in the second half of 2023. The facilities, research & manufacturing operations in Wilmington, Ohio, and Athlone, Ireland, will remain with Alkermes.
  • The company reported Q3 sales of $252.4 million, compared to $294.1 million a year ago, missing the consensus of $271.41 million.
  • It reported an adjusted EPS of $0.02, below the consensus of $0.03.
  • Alkermes tightened FY22 guidance to $1.07–$1.12 billion from $1.05–$1.12 billion versus the consensus of $1.10 billion.
  • It forecasts adjusted EPS of $0.15 – $0.33, up from $0.09 – $0.27 and the consensus of $0.20.
  • Price Action: ALKS shares are trading higher by 2.11% at $23.75 on the last check Wednesday.
  • Photo Via Company
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