• Tue. Dec 1st, 2020

Pharma Oracle

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Next to current market affairs: Alkermes plc (NASDAQ: ALKS)

On 16 March 2020, The Ireland based company Alkermes plc (NASDAQ: ALKS) stock observed trading -62.94% off 52-week high price. On the other end, the s tock has been noted -1.69% away from low price over the last 52-weeks. The stock disclosed a move of -25.56% away from 50 day moving average and -31.69% away from 200 day moving average. Moving closer, we can see that shares have been trading -26.09% off 20-day moving average.

Alkermes plc (ALKS) recently stated financial results for the quarter and year ended Dec. 31, 2019 and provided financial expectations for 2020.

Quarter Ended Dec. 31, 2019 Financial Highlights

Total revenues for the quarter were $412.7M. This contrast to $315.8M for the same period in the previous year.

Net loss according to generally accepted accounting principles in the U.S. (GAAP) was $5.4M for the quarter, or a basic and diluted GAAP loss per share of $0.03. This contrast to GAAP net loss of $9.7M, or a basic and diluted GAAP loss per share of $0.06, for the same period in the previous year.

Non-GAAP net income was $131.4M for the quarter, or a non-GAAP basic and diluted earnings per share of $0.83. This contrast to non-GAAP net income of $54.8M, or a non-GAAP basic earnings per share of $0.35 and non-GAAP diluted earnings per share of $0.34, for the same period in the previous year.

In October 2019, Alkermes implemented a planned restructuring plan, which included the elimination of about 160 current positions across the organization, a decrease in the company’s predictable near-term hiring plans and the implementation of cost-saving measures related to external spend. These efforts are predictable to result in cost savings of about $150M in 2020.

In November 2019, Alkermes completed the acquisition of Rodin Therapeutics, Inc. (Rodin), a privately held biopharmaceutical company focused on developing novel, small molecule therapeutics for synaptopathies. At the closing of the transaction, Alkermes made a cash payment of $98.1M to Rodin’s former security holders. This upfront cash payment was funded by Alkermes’ accessible cash and was accounted for as an asset acquisition, with $86.6M of this upfront payment recorded as research and development (R&D) expense in the quarter.

Calendar Year 2019 Financial Highlights

Total revenues increased 7% to $1.17B in 2019, which included VIVITROL net sales of $335.4M, ARISTADA net sales of $189.1M, and the $150.0M milestone payment from Biogen related to the authorization of VUMERITY. This contrast to total revenues of $1.09B in 2018, which included VIVITROL net sales of $302.6M, ARISTADA net sales of $147.7M and license revenues of $48.4M from Biogen. Please see the tables at the end of this press release for a detailed breakdown of the revenues from our key commercial products.

GAAP net loss was $196.6M, or a basic and diluted GAAP loss per share of $1.25, for 2019. This contrast to a GAAP net loss of $139.3M, or a basic and diluted GAAP loss per share of $0.90, for 2018.

Non-GAAP net income was $112.2M, or a non-GAAP basic and diluted earnings per share of $0.71, for 2019, and excludes the impact of the acquisition of Rodin and the restructuring. This contrast to non-GAAP net income of $97.8M, or a non-GAAP basic earnings per share of $0.63 and non-GAAP diluted earnings per share of $0.61, for 2018.

At Dec. 31, 2019, Alkermes recorded cash, cash equivalents and total investments of $614.4M, contrast to $620.0M at Dec. 31, 2018. At Dec. 31, 2019, the company’s total debt outstanding was $277.1M, contrast to $279.3M at Dec. 31, 2018.

Alkermes plc moved with change of -13.32% to $13.99 with the total traded volume of 2427501 shares in recent session versus to an average volume of 1814.92K. ALKS’s shares are at -34.16% for the quarter and driving a -58.88% return over the course of the past year and is now at -31.42% since this point in 2018.  Right now, the stock beta is 1.62. The average volatility for the week and month was at 12.58% and 7.70% respectively. There are 172.78M shares outstanding and 156.41M shares are floated in market.

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