Alkermes reports revenue growth in Q2
Due to the purchase of EDT and growth from key commercial products
Ireland-based pharma group Alkermes has delivered revenue growth in the second quarter as a result of last year’s merger with Elan Drug Technologies (EDT).
Revenue increased more than 72% to US$124m, due to both the acquisition of EDT and growth from its key commercial products.
The company reported a net loss of $16.7m in the quarter compared with a net loss of $22.3m in the corresponding quarter last year.
Manufacturing and royalty revenue in the last quarter from Alkermes’ antipsychotic drugs, Risperdal Consta and Invega Sustenna/Xeplion, was $50.3m compared with $44.9m for the same period in the previous year.
Manufacturing and royalty revenue from MS drug Ampyra/Fampyra was $5.0m for the second quarter, compared with $0.6m, while net sales of alcohol or narcotic drug addiction treatment Vivitrol were $15.2m, compared with $9.9m.
Royalty revenue from Type 2 diabetes drug Bydureon was $3.3m for the second quarter, compared with $0.1m. Additionally, the second-quarter results included revenue of $12.5m for cholesterol-lowering drug Tricor 145 and $9.1m for ADD and narcolepsy treatment Ritalin LA/Focalin XR.
Operating expenses for the second quarter were $118.6m, which included charges associated with the advancement of pipeline candidates in later-stage clinical trials and those associated with the former EDT business. This compared with operating expenses of $83.7m for the second quarter in the previous year.
‘We reported a very strong quarter in what is shaping up to be a very strong year,’ said Richard Pops, CEO of Alkermes. ‘The financial power of our commercial product portfolio is becoming even more apparent in our improved guidance and in the recent upgrade of our credit ratings.
‘We are building an exciting biopharmaceutical company characterised by a diversified portfolio of products generating growing cash flows and a pipeline of valuable late-stage candidates.’
Alkermes expects an increase in net income of $25m to between $120m–$140m for the full year, which ends on 31 March 2013. Total revenue is expected to range from $510m to $540m, up from $490m to $530m.
