Alkermes' (ALKS) Q1 Earnings & Revenues Fall Shy of Estimates

Core Viewpoint - Alkermes plc reported adjusted earnings of 44 cents per share for Q1 2024, missing the Zacks Consensus Estimate of 59 cents, but showing an increase from 18 cents in the same quarter last year [1] Revenue Performance - Total revenues for Alkermes reached $350.4 million, a 21.8% increase year-over-year, but fell short of the Zacks Consensus Estimate of $360 million [1] - Vivitrol sales increased by approximately 1% year-over-year to $97.7 million, missing the Zacks Consensus Estimate of $99 million [2] - Aristada sales decreased by 1.5% year-over-year to $78.9 million, also missing the Zacks Consensus Estimate of $81 million [2] - Lybalvi generated sales of $57 million, up 50% year-over-year, slightly exceeding the Zacks Consensus Estimate [3] - Total manufacturing and royalty revenues increased by 60.4% year-over-year to $116.8 million, driven by reinstated royalties on long-acting Invega products [3] Expense Overview - Research and development expenses totaled $67.6 million, up nearly 6% year-over-year due to increased investments in pipeline development for ALKS 2680 [3] - Selling, general and administrative expenses reached $179.7 million, a 7.1% increase year-over-year, attributed to continued investment for Lybalvi's launch [4] Financial Position - As of March 31, 2024, Alkermes had cash and cash equivalents of $807.8 million, a slight decrease from $813.4 million as of December 31, 2023 [4] 2024 Guidance - Alkermes reiterated its revenue guidance for 2024, expecting total revenues between $1.5 billion and $1.6 billion [6] - Vivitrol net sales are projected to be between $410 million and $430 million, Aristada sales between $340 million and $360 million, and Lybalvi's net sales between $275 million and $295 million [6] - Research and development expenses are anticipated to be between $225 million and $255 million, while selling, general and administrative expenses are projected to be between $625 million and $655 million [6] Recent Developments - Alkermes announced positive top-line data from a phase Ib study for ALKS 2680, showing significant improvements in sleep latency for narcolepsy treatment [7] - The company initiated the Vibrance-1 phase II study for ALKS 2680 in patients with narcolepsy type 1 [7]