Alkermes(US:ALKS)2024-02-15 20:08Financial Data and Key Metrics Changes - Alkermes generated total revenues of nearly $1.7 billion in 2023, driven primarily by a proprietary product portfolio that grew 18% year-over-year [16][17] - GAAP net income was $355.8 million, compared to a GAAP net loss of $158.3 million in the prior year, and non-GAAP net income was $243.7 million, compared to $57.9 million in 2022 [17][20] - The company ended the year with $813.4 million in cash and total investments, and total debt outstanding of approximately $290 million [20] Business Line Data and Key Metrics Changes - LYBALVI generated net sales of $191.9 million in 2023, reflecting a 100% year-over-year increase, with fourth-quarter net sales increasing 11% sequentially to $56.2 million [8][17] - ARISTADA net sales grew 8% year-over-year to $327.7 million in 2023, with fourth-quarter sales of $83.4 million [12][17] - VIVITROL net sales grew 6% year-over-year to $400.4 million, with fourth-quarter sales flat year-over-year at $102.4 million [13][17] Market Data and Key Metrics Changes - The company expects LYBALVI net sales in the range of $275 to $295 million for 2024, and ARISTADA net sales in the range of $340 to $360 million [11][12] - VIVITROL is expected to generate net sales in the range of $410 to $430 million for 2024, driven primarily by the alcohol dependence indication [13] Company Strategy and Development Direction - Alkermes has repositioned itself as a pure-play neuroscience company, focusing on proprietary products and advancing its neuroscience pipeline [6][24] - The company plans to maximize the potential of current commercial products, invest in its pipeline, explore external opportunities, and return excess capital to shareholders [24][25][26] - The separation of the oncology business has allowed the company to streamline operations and enhance growth and profitability [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong foundation for growth established in 2023 and the expectation of continued revenue growth from proprietary products [5][6][20] - The company anticipates total revenues for 2024 to be in the range of $1.5 to $1.6 billion, with proprietary product net sales expected to exceed $1 billion [21][22] Other Important Information - The company completed the separation of its oncology business in November 2023, which had operational, financial, and tax consequences [15] - Alkermes expects to generate significant cash flow and has a share repurchase program approved for up to $400 million [26] Q&A Session Summary Question: What does the company make of Takeda not moving forward with TAK-861 in NT2? - Management noted that the dosing for NT2 would need to be significantly higher than for NT1, and they were not surprised by Takeda's decision due to dosing flexibility concerns [30][31] Question: How concerned is the team about 2680's efficacious doses inducing insomnia in NT2 patients? - Management expressed confidence in the dose proportionality and half-life of 2680, indicating that insomnia could be an indicator of efficacy and would be managed by adjusting doses if necessary [39][40] Question: What are the expectations for LYBALVI's DTC program in 2024? - The company plans to continue its DTC campaign, which has shown positive responses and is an important part of building awareness and driving demand [42][44] Question: How does the company view margins and potential business development spending? - Management indicated that they expect to maintain sustained profitability and cash flow generation while being opportunistic with business development [46][48] Question: Can the company confirm any visual disturbances observed in NT2 or IH patients dosed so far? - Management stated that they have not released any data on NT2 or IH as they remain blinded [52]