Sep 30, 2022

Alkermes Q3 2022 Earnings Report

Alkermes reported strong year-over-year growth of proprietary commercial product portfolio and announced intent to separate oncology business.

Key Takeaways

Alkermes reported Q3 2022 financial results, with total revenues of $252.4 million. Net sales of proprietary products were $199.4 million, reflecting growth in VIVITROL, ARISTADA, and LYBALVI. The company announced its intent to separate its neuroscience and oncology businesses and updated its financial expectations for full-year 2022.

Total revenues for the quarter were $252.4 million.

Net sales of proprietary products for the quarter were $199.4 million.

GAAP Net loss per share was $0.39 and Non-GAAP earnings per share was $0.02

The company announced intent to separate oncology business.

Total Revenue
$252M
Previous year: $294M
-14.2%
EPS
$0.02
Previous year: $0.14
-85.7%
Gross Profit
$101M
Previous year: $126M
-19.7%
Cash and Equivalents
$747M
Previous year: $748M
-0.1%
Free Cash Flow
-$9.85M
Previous year: $78M
-112.6%
Total Assets
$1.94B
Previous year: $2B
-2.7%

Alkermes

Alkermes

Alkermes Revenue by Segment

Forward Guidance

The company updated financial expectations for 2022, primarily reflecting LYBALVI’s launch performance to date, the company’s current assumption that it will continue to receive royalty payments related to sales of the long-acting INVEGA products outside the U.S. through the end of the year and the impact of the AMPYRA royalty revenue reversal.

Positive Outlook

  • Total Revenue $1,070 – $1,120 million
  • VIVITROL Net Sales $370 – $380 million
  • ARISTADA Net Sales $300 – $310 million
  • LYBALVI Net Sales $88 – $95 million
  • INVEGA Franchise Royalties $115 – $120 million

Challenges Ahead

  • Cost of Goods Sold $220 – $230 million
  • R&D Expenses $385 – $400 million
  • SG&A Expenses $590 – $605 million
  • Amortization of Intangible Assets ~$35 million
  • Interest Expense, Net $5 – $10 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income