Alkermes Reports 18% Increase in Product Sales, Net Income Growth in Q3 2024

Alkermes plc, a global biopharmaceutical company focused on neuroscience, reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a notable increase in product sales, with net sales for the three months reaching $273.0 million, up from $231.8 million in the same period of 2023. For the nine months, product sales totaled $775.8 million, compared to $678.0 million in the prior year. Key contributors to this growth included VIVITROL, which saw sales rise to $113.7 million from $99.3 million, and LYBALVI, which increased to $74.7 million from $50.7 million.

Total revenues for the three months ended September 30, 2024, were $378.1 million, slightly down from $380.9 million in the same quarter of 2023. For the nine months, total revenues decreased to $1,127.6 million from $1,285.9 million, primarily due to a significant drop in manufacturing and royalty revenues, which fell to $351.8 million from $607.9 million. This decline was attributed to the receipt of back royalties in June 2023 related to long-acting INVEGA products, which inflated revenues in the previous year.

Operating income from continuing operations for the third quarter increased to $104.8 million, up from $89.2 million in 2023. However, net income from continuing operations for the same period was $92.8 million, a slight increase from $91.6 million in the prior year. For the nine months, net income decreased to $220.6 million from $243.0 million, reflecting the impact of reduced manufacturing and royalty revenues and increased income tax provisions.

Alkermes also reported a cash and cash equivalents balance of $396.3 million as of September 30, 2024, down from $647.7 million a year earlier. The company generated $248.7 million in cash from operating activities during the nine months, compared to $294.1 million in the same period of 2023. The decrease in cash flow was influenced by changes in working capital and the absence of significant one-time revenue events.

Strategically, Alkermes sold its Athlone facility to Novo Nordisk for approximately $97.9 million in May 2024, which contributed a gain of $1.5 million to other income. The company has also initiated a share repurchase program, authorizing up to $400 million in repurchases, with $200 million remaining as of September 30, 2024. The company continues to focus on its core business segment, developing and commercializing medicines for unmet medical needs, while managing its operational expenses and investments in research and development.