Alkermes Inc. (ALKS) reported a third quarter fiscal 2010 net loss of 3 cents per share (excluding items but including stock based compensation) compared with a loss of 9 cents in the year-ago period (excluding the impact of the termination of the collaboration agreements with Cephalon Inc. (CEPH) for Vivitrol but including stock based compensation).
Estimate Revisions Trend
Two of the 10 analysts covering the stock for the next quarter raised their earnings estimates over the last 30 days while none moved in the opposite direction. This means that majority of them have not revised their estimates for the next quarter, additionally the revision is marginal.
Furthermore, two of the 9 analysts covering the stock for the next fiscal year raised their earnings estimates over the last 30 days while none moved in the opposite direction. This means that majority of them have not revised their estimates for the next fiscal year, additionally the revision is marginal. As a result of the lack of strength and magnitude in estimate revisions, our short-term as well as long-term recommendations on the stock remain Hold (Zacks Rank #3) and Neutral, respectively.
Quarterly Results
Total revenues for the reported quarter came in at $44.2 million, compared to $155.7 million for the same period in 2008 which included the recognition of $120.7 million of one-time revenue related to Alkermes’ previous agreements with Cephalon.
Manufacturing revenues for the third quarter climbed to $28.65 million from $20.53 million. It included $27.2 million related to Risperdal Consta and $1.5 million related to the manufacture of polymer for exenatide once weekly.
Royalty revenues for the quarter came in at $9.97 million on sales of $398.7 million of Consta, up from $7.97 million on sales of $318.8 million of the schizophrenia drug for the year-ago quarter.
Research and development revenue under collaborative arrangements dropped to $0.08 million from $3.74 million in the year-ago quarter. The company also reported net product sales of $5.45 million for the reported quarter, while the year-ago quarter witnessed a net collaborative profit $123.42 million. Alkermes reported $5.5 million in the quarter in revenues from sale of Vivitrol, up 17.4%.
Research and development expenses for the third quarter of fiscal 2010 stood at $22.6 million. Research and development spend was $22.7 million in the year-ago quarter. Selling, general and administrative expenses for the reported quarter increased approximately 21% to $17.7 million from $14.6 million for the same period in 2008.
The company exited the quarter with cash and total investments of $357.5 million, opposed to $369.5 million at Sep 30, 2009.
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Read the full analyst report on “CEPH”
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