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; non-GAAP net income was $123.4 million.

• Completed the sale of the Athlone, Ireland manufacturing facility for $91 million and repurchased 3.5 million shares for $84.7 million under a $400 million program.

• Company reiterated 2024 financial expectations and highlighted strong operational execution and profitability.

• Focus remains on commercial portfolio growth and advancing the neuroscience pipeline, including ALKS 2680 for narcolepsy.

Financial highlights

• Proprietary net sales were $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 in Q2 2023, reflecting the absence of a $245.5 million one-time back royalty.

• VUMERITY revenues were $35.2 million, up from $32.3 million year-over-year.

• Cost of goods sold decreased to $61.5 million; R&D expenses were $59.6 million (down from $68.2 million); SG&A expenses dropped to $168.1 million (from $195.8 million), reflecting operational efficiencies.

• EBITDA from continuing operations was $118.6 million.

Outlook and guidance

• 2024 total revenue expected between $1.5 billion and $1.6 billion; GAAP net income projected at $350 million–$390 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. will end mid-August 2024, impacting Q3 by ~$20 million.

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