The Zacks Analyst Blog Highlights: Alkermes plc, Elan, Johnson & Johnson, Amylin Pharmaceuticals & Eli Lilly & Company - Pres..
February 06 2012 - 3:30AM
Zacks
For Immediate Release
Chicago, IL – February 6, 2012 – 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 plc (
ALKS), Elan Corporation ( ELN), Johnson
& Johnson ( JNJ), Amylin Pharmaceuticals,
Inc. ( AMLN) and Eli Lilly & Company
( LLY).
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Here are highlights from Friday’s Analyst
Blog:
Revenues Skyrocket at Merged
Alkermes
Alkermes plc ( ALKS) reported earnings of 1
cent per share (excluding merger related costs and amortization of
acquired intangible assets) in the third quarter of fiscal 2012
(ending March 31, 2012). The Zacks Consensus loss estimate hinted
at a loss of 21 cents per share.
This was the first full quarter following the purchase of
Elan Corporation’s ( ELN) drug delivery unit, Elan
Drug Technologies (EDT). We remind investors that Alkermes
purchased the EDT unit in September 2011.
Alkermes suffered a loss of 12 cents per share in the year-ago
quarter. However, results of the year-ago quarter only comprised
figures from the standalone Alkermes. The company, prior to the
purchase of the EDT unit, was headquartered in Cambridge,
Massachusetts. However, the company shifted its base to Dublin,
Ireland, post-merger.
Total revenue for the third quarter of fiscal 2012 jumped 185.7%
to $125.6 million. The massive jump was attributable to the 214%
rise in manufacturing and royalty revenues due to the expanded
product portfolio following the purchase of the EDT unit. Revenues
blew past the Zacks Consensus Estimate of $113.0 million.
In the reported quarter, Alkermes recorded $47.6 million as
manufacturing and royalty revenues from its long-acting atypical
antipsychotic franchise comprising of Risperdal Consta and Invega
Sustenna/Xeplion. These schizophrenia drugs are marketed by
Johnson & Johnson ( JNJ). Alkermes recorded
manufacturing and royalty revenues from Ampyra/Fampyra, marketed
for improving walking ability in multiple sclerosis patients,to the
tune of $10.2 million in the reported quarter.
Alkermes earned $0.3 million in royalty revenues from type II
diabetes treatment Bydureon, whose launch is underway in the EU
following its approval in June 2011. The drug was cleared in the US
last month. On the conference call, Alkermes announced that
Bydureon is currently cleared in 31 nations and commercial launches
are in progress in 10.
We remind investors that Alkermes initially co-developed the
drug with Amylin Pharmaceuticals, Inc. ( AMLN) and
Eli Lilly & Company ( LLY). However, in
November 2011, Amylin and Eli Lilly terminated their agreement.
Vivitrol, a legacy product of Alkermes, originally approved for
the treatment of alcohol dependence, also performed well in the
reported quarter. The label of the drug was expanded in 2010 to
prevent the relapse to opioid dependence, following opioid
detoxification. Sales of the product climbed approximately 38% year
over year to $10.6 million in the reported quarter.
Research and development (R&D) revenue from collaborations
went up to $2.3 million in the reported quarter from $0.3 million a
year ago. Total expenses at Alkermes (excluding the merger related
costs included and amortization of acquired intangible assets)
climbed 104.5% to $114.27 million. The massive increase was
primarily attributable to the rise in the cost of goods sold and
research and development expenses following the merger.
Fiscal 2012 Projection
Apart from announcing the financial results, Alkermes also
provided an outlook for fiscal 2012. The expanded portfolio
following the merger has caused Alkermes to increase its revenues
projection. Revenues are projected in the range of $370-$400
million, up from the previous guidance of $350 -$380 million. The
fiscal 2012 Zacks Consensus Estimate of $369 million is just below
the guidance range provided by Alkermes.
The projections for the principal items of operating expenses
are unchanged. R&D expenses are projected in the range of
$135-$145 million. SG&A expenses are projected in the range of
$130 -$140 million.
Our Recommendation
We are Neutral on Alkermes in the long-run. The stock carries a
Zacks #3 Rank (Hold rating) in the short-run.
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ALKERMES INC (ALKS): Free Stock Analysis Report
AMYLIN PHARMA (AMLN): Free Stock Analysis Report
ELAN CP PLC ADR (ELN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
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