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Alkermes plc. ALKS reported adjusted earnings of 83 cents per share in the fourth quarter of 2019 compared with earnings of 34 cents in the year-ago quarter. Earnings beat the Zacks Consensus Estimate of 66 cents.
The company’s revenues of $412.7 million in the quarter increased 30.7% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $408 million. The company’s proprietary products — Vivitrol and Aristada — drove revenues.
Alkermes’ shares have plunged 45.7% in the past year compared with the industry’s decline of 3.1%.
Factors Impacting Q4
Manufacturing and royalty revenues from J&J’s JNJ drugs — Risperdal Consta, Invega Sustenna/Xeplion and InvegaTrinza/Trevicta — were $107.3 million, down 35.9% year over year. Total revenues also included a $150-million milestone payment from Biogen BIIB related to the FDA approval of Vumerity, of which $144.8 million were recorded as license revenues and $5.2 million were recorded as research and development revenues.
Vivitrol sales improved about 10.7% year over year to $92.8 million.
Aristada sales came in at $56.7 million, up 16.3% year over year.
Research and development (R&D) expenses were $198.2 million, up 81.8% year over year.
Selling, general and administrative (SG&A) expenses were $154.5 million, up 9.4% year over year.
2019 Results
The company recorded earnings of 71 cents per share compared with 63 cents in 2018.
The company’s revenues increased 7% year over year to $1.17 billion.
Restructuring Update
During the quarter, Alkermesimplementeda strategic restructuring to reduce cost structure and, in turn, accelerate and drive sustained profitability. The company implemented a restructuring design to deliver savings of about $150 million in 2020 with about one-third related to R&D and two-thirds driven by SG&A.
2020 Guidance
The company expects total revenues of $1.03-$1.08 billion. The midpoint of the guided range is $1.06 billion, which is below the Zacks Consensus Estimate of $1.07 billion.
Alkermes expects Vivitrol net sales of $340-$355 million and Aristada net sales of $220-$235 million.
The company expects R&D expenses of $405-$430 million. SG&A expenses are expected to be $535-$560 million.
The company expects adjusted earnings per share of $25-$43 cents, based on a weighted average share count of approximately 161 million shares outstanding. The Zacks Consensus Estimate for 2020 earnings is pegged at 45 cents.