CHICAGO, Aug. 4, 2011 /PRNewswire/ -- Zacks.com announces
the list of stocks featured in the Analyst Blog. Every day the
Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently
featured in the blog include: Alkermes Inc. (Nasdaq: ALKS),
Johnson & Johnson (NYSE: JNJ), Amylin
Pharmaceuticals, Inc. (Nasdaq: AMLN), Eli Lilly and
Company (NYSE: LLY) and Elan Corporation (NYSE:
ELN).
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Here are highlights from Wednesday's Analyst Blog:
Revenues Rise at Alkermes
Alkermes Inc.'s (Nasdaq: ALKS) first quarter fiscal 2012
adjusted net loss of approximately $0.04 per share compared favorably with the
year-ago loss of $0.14. The Zacks
Consensus Estimate was a loss of $0.11 per share. The narrower year-over-year loss
was attributable to higher revenues recorded in the reported
quarter.
Quarterly Results
Total revenues for the reported quarter climbed 46.3% to
$61.9 million. Revenues for the
reported quarter surpassed the Zacks Consensus Estimate of
$54 million.
Alkermes generated $38.4 million
from manufacturing Risperdal Consta, approved for treating
schizophrenia and bipolar disorder, in the reported quarter as
against $26.3 million a year ago.
Risperdal Consta is marketed worldwide by Johnson &
Johnson (NYSE: JNJ) and manufactured by Alkermes.
Moreover, Alkermes derived $0.4
million in manufacturing revenues from Vivitrol in the first
quarter of fiscal 2012. The company derived $0.6 million related to type II diabetes
candidate Bydureon in the first quarter of fiscal 2011.
Alkermes co-developed Bydureon with Amylin Pharmaceuticals,
Inc. (Nasdaq: AMLN) and Eli Lilly and Company (NYSE:
LLY). Bydureon recently gained approval in the EU and was launched
in the UK in July.
However, the regulatory path for Bydureon has not been smooth in
the US where it has already received two complete response letters
(CRLs) from the US Food and Drug Administration (FDA). A response
to the second CRL was submitted last month.
Alkermes generated $10.1 million
in royalty revenues during the reported quarter on global sales of
$403.6 million for Risperdal Consta
as opposed to $8.9 million on
$355.7 million of global sales of the
drug in the comparable quarter fiscal 2011.
Vivitrol was originally approved for the treatment of alcohol
dependence. The label of the drug was expanded last year to prevent
the relapse to opioid dependence, following opioid
detoxification.
Sales of the product climbed approximately 56.5% to $9.7 million in the most recent quarter. Research
and development (R&D) revenue from collaborations went up to
$3.3 million in the reported quarter
from $0.3 million a year ago.
Total expenses at Alkermes climbed 36.8% to $75.8 million. R&D expenses for the first
quarter of fiscal 2011 climbed 22.1% to $28.1 million. The increase was attributable to
Alkermes' efforts to develop its pipeline. Selling, general and
administrative expenses increased 59.7% to $31.5 million in the reported quarter on a
reported basis.
Alkermes to Buy Elan's EDT Unit
In May 2011, Alkermes announced
that it will buy Elan Corporation's (NYSE: ELN) drug
delivery unit Elan Drug Technologies (EDT) for approximately
$960 million in cash and stock. The
merger is expected to close in September
2011.
The merged entity will be known as Alkermes plc and will be
headquartered in Dublin, Ireland.
Alkermes plc will primarily focus on developing therapies for
treating deficiencies of the central nervous system. It will boast
a diversified product portfolio and a robust pipeline.
Per the terms of the deal, Alkermes will make a cash payment of
$500 million apart from giving Elan
31.9 million of its ordinary shares. Alkermes will have a 75% stake
in the combined company, the shares of which will be registered in
the US. The merged entity is expected to trade on the NASDAQ stock
exchange.
Neutral on Alkermes
Currently, we have a Neutral recommendation for Alkermes for the
long run. The stock carries a Zacks #3 Rank (Hold rating) for the
short run.
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