Third Quarter Results of Alkermes

by Dagmark Garcia | Thursday, Feb 2, 2012 | 396 views

Drug maker Alkermes declared its quarterly results. For the third quarter of fiscal 2012, the company reported Adjusted EBITDA of US$29.7 million, or a basic and diluted Adjusted EBITDA per share of US$0.23 and US$0.22, respectively. This compares to an adjusted EBITDA loss of US$4.1m, or a basic and diluted adjusted EBITDA loss per share of US$0.04 for the same period in fiscal 2011. The loss has widened as the company had to take into consideration the acquisition of Elan Corp.

This adds further pressure on the company as decline in revenues and increase in various costs could lead to further loss making quarters for the company. The company completed acquisition of the drug technology business in September after the companies agreed in May to a deal that Alkermes valued at $1 billion. Elan received $500 million in cash and 31.9 million shares of Alkermes, giving it a 25-percent stake in the company. The results were far below the numbers expected from the analysts.

The company’s expenses have ballooned over the period. Commenting on the results CEO James frates mentioned that “Our third quarter results were driven by the strong performance of our key commercial products, with particularly robust growth from our long-acting atypical antipsychotic franchise and AMPYRA, as well as strong contributions from a number of our mature products,”

“Today we are adjusting our financial expectations for fiscal 2012 to reflect stronger than anticipated revenues and our consistent financial discipline. We continue to focus on delivering on our Adjusted EBITDA goals, and we look forward to providing expectations for the upcoming fiscal year when we report our fiscal 2012 year-end financial results in May 2012.”

We maintain a buy on the company over the longer term as the acquisition could help improve the top line over the longer run.

Like it? Share it!

Leave A Response