Alkermes Q3 Earnings Top Consensus, On Track To Separate Oncology Business, Reaffirms FY23 Outlook - Alke

Alkermes PLC (NASDAQ:ALKS) reported Q3 FY23 adjusted EPS of $0.64 compared to $0.02 a year ago, beating the consensus of $0.43.

The company reported revenues of $380.9 million, up from $252.4 million reported a year, beating the consensus estimate of $362.2 million.

Sales reflect the strong performance of the proprietary product portfolio (+16% Y/Y to $231.8 million).

As of Sept. 30, 2023, cash, cash equivalents and total investments stood at $995.6 million.

Richard Pops, CEO, said, "With solid performance across our proprietary commercial portfolio, the successful settlement of the VIVITROL® patent litigation, and progress toward completion of the separation of our oncology business, we have made significant strides to evolve the business into a pure-play neuroscience company with the potential to generate strong profitability and cash flow."

"Our presentation at this week's World Sleep Congress of the first-in-human safety and tolerability data and initial proof-of-concept data for ALKS 2680, our investigational, orexin 2 receptor agonist for the treatment of narcolepsy, represents an important milestone for that development program. We look forward to sharing additional data from the phase 1 study and advancing ALKS 2680 into a planned phase 2 program next year."

In August 2023, Alkermes inked a settlement deal with Teva Pharmaceutical Industries Ltd (NYSE:TEVA) to settle the patent litigation related to VIVITROL. Following this, the company has granted Teva a license under the company's U.S. Patent No. 7,919,499 to market a generic version of VIVITROL in the U.S. beginning Jan. 15, 2027, or earlier under certain customary circumstances.

Alkermes plans to complete the separation of its oncology business into a new, independent, publicly-traded company, Mural Oncology plc, in November 2023, subject to various customary conditions, including final approval from the board of directors.

The company expects to capitalize Mural with cash of $275 million upon completion of the separation.

Outlook: Alkermes reiterated its FY23 outlook for revenue at $1.55 billion - $1.68 billion versus the consensus of $1.64 billion and adjusted EPS of $1.34 – $1.57 vs. consensus of $1.48.

Price Action: ALKS shares are trading lower by 8.06% at $23.28 on the last check Wednesday.

ALKSAlkermes PLC

$42.00-1.06%

Overview

TEVATeva Pharmaceutical Industries Ltd

$33.25-0.03%

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