Alkermes (ALKS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $399.1 million, with proprietary product net sales up 16% year-over-year, driven by strong growth in LYBALVI, ARISTADA, and VIVITROL.

• GAAP net income from continuing operations was $94.7 million, with diluted EPS of $0.55, reflecting the absence of prior year’s one-time royalty gains.

• The company completed the sale of the Athlone, Ireland manufacturing facility to Novo Nordisk for $91–$97.9 million and repurchased 3.5 million shares for $84.7 million.

• 2024 financial expectations were reiterated, with a focus on commercial portfolio growth and advancing the neuroscience pipeline, including ALKS 2680 for narcolepsy.

• Net income and revenues declined year-over-year due to the absence of one-time royalty gains, but operational execution and profitability remained strong.

Financial highlights

• Proprietary net sales reached $269.3 million in Q2 2024, up from $231.5 million year-over-year, led by LYBALVI (+52%), ARISTADA, and VIVITROL.

• Manufacturing and royalty revenues dropped to $129.9 million from $385.9 million, reflecting the absence of back royalties.

• Non-GAAP net income from continuing operations was $123.4 million; EBITDA from continuing operations was $118.6 million.

• Cash, cash equivalents, and investments at June 30, 2024 were $962.5 million; total debt was $286.5–$289.5 million.

• Operating expenses and cost of goods sold decreased year-over-year, reflecting operational efficiencies.

Outlook and guidance

• 2024 financial guidance reiterated: total revenue expected at $1.5–$1.6 billion, GAAP net income at $350–$390 million, and EBITDA at $445–$485 million.

• Proprietary product net sales guidance: VIVITROL $410–$430 million, ARISTADA $340–$360 million, LYBALVI $275–$295 million.

• SG&A expenses expected to decrease in the second half of 2024.

• Royalties on INVEGA SUSTENNA in the U.S. to end mid-August 2024, with a ~$20 million impact in Q3.

• Effective tax rate for 2024 expected to be approximately 17%.