NASDAQ$ALKS

Alkermes plc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Alkermes reported first quarter financial results and provided a COVID-19 related business update.

Alkermes reported Q1 2020 revenues of $246.2 million, primarily driven by a 30% year-over-year growth of proprietary product net sales. The company reported a diluted GAAP net loss per share of $0.24 and diluted non-GAAP earnings per share of $0.01. Due to COVID-19 uncertainties, the company withdrew its previously provided 2020 financial expectations.

  • Total revenues for the quarter were $246.2 million.
  • Net loss according to GAAP was $38.7 million for the quarter, or a basic and diluted GAAP net loss per share of $0.24.
  • Non-GAAP net income was $1.7 million for the quarter, or a non-GAAP basic and diluted earnings per share of $0.01.
  • At March 31, 2020, Alkermes recorded cash, cash equivalents and total investments of $549.7 million.

Headline financials

Total Revenue

$246M

Previous: $223M+10.4%
EPS (adj)

$0.01

Previous: -$0.17+105.9%
Capital Expenditures

-$19.8M

Previous: -$23.6M+16.2%
Free Cash Flow

-$58.5M

Previous: -$120M+51.3%
Net Income

-$38.7M

Previous: -$96.4M+59.9%
Operating Income

-$37.4M

Previous: -$76M+50.8%
Gross Profit

$199M

Previous: $178M+12.0%
Cash & Equivalents

$176M

Previous: $225M-21.8%
Total Assets

$1.83B

Previous: $1.76B+4.0%

Revenue & EPS history

Alkermes · Revenue · Quarterly

$246M

Q1 2020+10.4%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Alkermes · $130M total across 2 segments · Q1 2020

  • VIVITROL
    $78.8M+13.9%
  • ARISTADA
    $51M+68.3%

Forward guidance

Due to uncertainties regarding the impact of the COVID-19 pandemic on Alkermes’ operating and financial results, Alkermes withdraws the financial expectations for 2020 set forth in its press release dated Feb. 13, 2020.

Tailwinds

  • The company has instituted a global remote work policy that will continue until further notice for those employees who can work remotely, including field-based employees.
  • The company continues to operate its manufacturing facilities in Wilmington, Ohio and Athlone, Ireland and does not anticipate any interruptions in its ability to supply commercial product to the patients.
  • The company has taken action to support people living with schizophrenia, opioid dependence and alcohol dependence and help assure that they have access to the information, resources and medicines that may assist in their treatment.
  • The company remains dedicated to supporting the needs of healthcare providers and patients through virtual interactions.
  • The company continues its regulatory activities relating to ALKS 3831, including preparation for an Advisory Committee meeting in advance of the November 2020 Prescription Drug User Fee Act (“PDUFA”) target action date for ALKS 3831.

Headwinds

  • The company has been in frequent communication with investigators regarding the impact of the current environment on the conduct of its ongoing clinical trials and is focused on supporting treatment continuity and ensuring patient safety.
  • COVID-19 has impacted timelines of certain clinical trials
  • The company expects that the extent of the impact of COVID-19 on its business will be driven primarily by the severity and duration of the pandemic.
  • it is unable to reasonably estimate the impact of the pandemic on future results.
  • the company suspended all in-person meetings and interactions with the healthcare community for field-based sales personnel.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.6%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-0.5%

Avg return

30 days after

45%

27 / 60 earnings

Positive

+16.6%

Q4 2017

Best reaction

-14.8%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.2%+2.5%+27.0%
Q4 2025-6.6%-9.4%-12.0%
Q3 2025+3.9%+3.3%+0.0%
Q1 2025+6.3%+5.5%+6.4%
Q4 2024+4.8%+12.3%+6.5%
Q3 2024-6.3%-5.1%+3.3%
Q2 2024+12.2%+11.7%+11.8%
Q1 2024-2.8%-1.8%-4.6%
Q4 2023+15.0%+8.6%+2.7%
Q3 2023-2.4%-4.0%-3.7%
Q2 2023-1.8%-5.1%-11.9%
Q1 2023-7.1%-6.1%-3.9%
Q4 2022+4.0%+2.9%-3.6%
Q3 2022+3.8%+0.3%+12.2%
Q2 2022-9.7%-14.4%-16.5%
Q1 2022+9.8%+6.4%+12.5%
Q4 2021+8.8%+7.6%+12.1%
Q3 2021-8.2%-5.0%-28.7%
Q2 2021+5.9%+11.6%+28.9%
Q1 2021-3.2%-1.6%+0.8%
Q4 2020-11.8%-13.7%-15.3%
Q3 2020+5.6%+5.9%+20.2%
Q2 2020-8.8%-7.4%-19.0%
Q1 2020-14.8%-14.7%+1.6%
Q4 2019-7.0%-7.8%-15.5%
Q3 2019+5.7%+6.0%+13.9%
Q2 2019-10.2%+1.2%-12.3%
Q1 2019-12.2%-12.7%-31.1%
Q4 2018-1.2%+3.6%+3.3%
Q3 2018+3.0%+6.5%-11.6%
Q2 2018-0.1%-0.3%+2.0%
Q1 2018+1.5%+1.4%+3.9%
Q4 2017+16.6%+23.0%+12.0%
Q3 2017+0.7%-1.5%+3.2%
Q2 2017-4.1%-5.4%-12.4%
Q1 2017+2.0%+2.4%+1.0%
Q4 2016-2.9%-4.6%+3.7%
Q3 2016-1.4%+4.0%+8.4%
Q2 2016-3.6%-6.0%-14.1%
Q1 2016-2.0%
Q4 2015-1.4%
Q3 2015+7.6%
Q2 2015+2.4%
Q1 2015+3.1%
Q4 2014-3.4%
Q3 2014+7.7%
Q2 2014-7.2%
Q1 2014+3.2%
Q4 2013-7.7%
Q3 2013-3.7%
Q2 2013+3.5%
Q1 2013+3.9%
Q4 2010-1.0%
Q4 2012-9.9%
Q3 2012+2.2%
Q3 2011+2.2%
Q2 2011-7.7%
Q2 2012-7.7%
Q4 2011-7.7%
Q2 2010-3.0%

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