Alkermes plc delivered an incredible performance, surpassing all expectations in its fourth-quarter 2023 report. The company achieved adjusted earnings of 48 cents per share, exceeding the Zacks Consensus Estimate of 46 cents. This marked a substantial improvement from the 40 cents per share reported in the year-ago quarter.
The star of the show was the revenue, which soared to $377.5 million, a staggering 24% increase from the same period last year. This remarkable achievement was due to the outstanding performance of its proprietary products portfolio, beating the Zacks Consensus Estimate of $361.2 million.
Quarterly Revelations
The company’s revenues are sourced from net sales of its proprietary products such as Vivitrol (for alcohol and opioid dependence), Aristada (for schizophrenia), and Lybalvi (for schizophrenia and bipolar I disorder), as well as manufacturing and royalty revenues from products commercialized by its partners.
Notably, manufacturing and royalty revenues from Vumerity soared by 53% year over year to $135.5 million, reflecting the reinstatement of royalties on sales of long-acting Invega products in the United States.
Sales for Vivitrol stood at $102.4 million, displaying a nearly 0.4% increase year over year. Aristada sales surged by 5.3% to $83.4 million, driven by higher underlying demand. Lybalvi generated a remarkable $56.2 million in sales, representing an exceptional 61% yearly increase and a 10.8% sequential increase.
Alkermes also invested in research and development, with expenses totaling $73.9 million, marking a 1.3% year-over-year rise. Selling, general, and administrative expenses totaled $169.8 million, reflecting an 11.1% increase from the previous year.
As of December 31, 2023, Alkermes held cash and cash equivalents of $813.4 million, compared with $995.6 million as of September 30, 2023. The total outstanding debt was $290.7 million as of December 31, 2023. However, despite this outstanding performance, the company’s stock fell by 0.7% in the past year, in contrast to the industry’s decline of 12.2%.
Century-High Annual Results
For the whole of 2023, Alkermes registered a staggering 49.6% increase in revenues to $1.66 billion. Moreover, the company reported adjusted earnings of $2.34 per share, marking a remarkable 125% increase on a year-over-year basis.
Projected Evolution in 2024
Alkermes is all set to maintain its momentum, with the company projecting total revenues in the range of $1,500-$1,600 million for 2024. This projected growth is reaching new heights, showcasing the company’s commitment to success.
Additionally, net sales for Vivitrol are expected in the range of $410-$430 million, while Aristada is anticipated to achieve sales in the $340-$360 million range. Lybalvi’s net sales are projected to reach $275-$295 million and demonstrate the company’s profound aspirations.
The company also has its financial house in order, estimating research and development expenses in the range of $225-$255 million, while selling, general, and administrative expenses are projected to be in the $625-$655 million band.
Recent Milestones
In February 2024, Alkermes’ board of directors greenlighted a new share repurchase program, aiming to buy back up to $400 million of the company’s ordinary shares. This strategic move reflects the company’s confidence in its own performance.
Alkermes’ endeavors in January 2024 culminated with the completion of the narcolepsy type 1 cohort in the phase Ib study evaluating its investigational orexin 2 receptor agonist, ALKS 2680, for the treatment of narcolepsy. Furthermore, a phase II study in narcolepsy type 1 is expected to commence in the first half of 2024, showcasing the company’s dedication to innovation and progress.
In a pivotal move in November 2023, Alkermes concluded the separation of its oncology business into a new, publicly-traded company named Mural Oncology plc. This strategic decision will allow the company to exclusively focus on developing therapies for neurological conditions and enhancing profitability.
Rising Above & Beyond
The robust financial performance of Alkermes demonstrates a trajectory steeped in innovation, astute financial planning, and a commitment to enhancing shareholder value. The company’s ambitious trajectory and relentless pursuit of excellence strongly position it to chart a path to industry leadership.
Insightful Future
Alkermes currently holds a Zacks Rank #3 (Hold). It is fascinating to observe the company’s future trajectory and how its proactive strategies will unfold. In the dynamic healthcare sector, other stocks such as Stoke Therapeutics, Inc. and Puma Biotechnology, Inc. are also emerging as promising investment opportunities. Both are currently sporting a Zacks Rank #1 (Strong Buy), adding intriguing possibilities for investors.
As we navigate the ever-changing tides of the stock market, observant investors are witnessing the unfolding stories that have the potential to reshape industries and drive unprecedented growth.
