Alkermes Plans Separating Its Oncology Unit; Lifts FY22 Earnings Guidance - Alkermes (NASDAQ:ALKS)

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.
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