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Alkermes (ALKS) Beats Q3 Earnings Estimates, Cuts Sales View

Alkermes plc ALKS reported earnings of 3 cents per share in the third quarter of 2017, beating the Zacks Consensus Estimate of a penny. The bottom line also bettered the loss of 9 cents incurred in the year-ago quarter.

The company’s revenues of $217.4 million in the quarter were up 20.6% year over year. However, the top line missed the Zacks Consensus Estimate of $235 million.

So far this year, Alkermes’ share price declined 1.1%, as against the Zacks classified industry’s gain of 3.6%.

Revenues

Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/ Xeplion and Invega Trinza/Trevicta were $79.4 million, up 8.3% year over year. The same from Ampyra/Fampyra were up 89.9% year over year to $24.5 million.

Vivitrol sales improved 24% year over year to $69.2 million.

Aristada sales came in at $24.5 million compared with $14 million in the third quarter of 2016.

2017 Outlook

The company trimmed its revenue guidance for 2017. Alkermes now expects total revenue to be in the range of $850 million to $880 million, down from the previous range of $870 million to $920 million. The guidance includes Vivitrol net sales to range from $265 million to $275 million lower than $280 million to $300 million, projected earlier.

For 2017, the bottom-line projections presently range from a loss of 10 cents to earnings of 9 cents.

Pipeline Update

Alkermes anticipates that the FDA will review the new drug application (NDA) for ALKS 5461 which is being evaluated for the treatment of major depressive disorder in 2018. Going forward,  the company intends to submit a New Drug Application (NDA) for ALKS 8700 for the treatment of relapsing-remitting MS (RRMSto the FDA in 2018.

Alkermes also expects data read out from the pivotal six month phase III study evaluating weight in patients with stable schizophrenia receiving olanzapine or ALKS 3831 in 2018.

 Zacks Rank & Stocks to Consider

Alkermes is a Zacks Rank #3 (Hold) stock. Some better-ranked health care stocks in the same space include Ligand Pharmaceuticals Incorporated LGND, Agenus Inc. AGEN and Adaptimmune Therapeutics plc ADAP. While Ligand and Agenus sport a Zacks Rank #1 (Strong Buy), Adaptimmune carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 40.9% year to date.

Agenus’ loss per share estimates have narrowed from $1.40 to $1.36 for 2018 over the last 60 days. The company pulled off positive earnings surprises in three of the trailing four quarters, with an average beat of 4.27%.

Adaptimmune’s loss per share estimates have narrowed from $1.03 to 95 cents for 2017 and from 95 cents to 90 cents for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. The share price of the company has increased 80.2% year to date.

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Alkermes PLC (ALKS): Free Stock Analysis Report
 
Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report
 
Agenus Inc. (AGEN): Free Stock Analysis Report
 
Adaptimmune Therapeutics PLC (ADAP): Free Stock Analysis Report
 
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