Alkermes plc Reports Financial Results for the Fourth Quarter and Year Ended Dec. 31, 2021 and Provides Financial Expectations for 2022
Alkermes plc (Nasdaq: ALKS) reported financial results for the quarter and year ended Dec. 31, 2021, showing total revenues of $324.5 million for Q4 2021 and $1.17 billion for the year, reflecting a year-over-year increase. Net income for Q4 was $0.9 million, a significant turnaround from a net loss of $42.6 million in the same quarter of the previous year. However, the company anticipates a GAAP net loss of $180 to $210 million for 2022, primarily due to the expected loss of royalties from long-acting INVEGA products. Alkermes aims to drive long-term profitability and shareholder value creation.
- Total revenues for Q4 2021 were $324.5 million, up from $280.0 million YoY.
- Net sales of proprietary products for 2021 were $627.4 million, an increase from $551.8 million the previous year.
- LYBALVI launched with net sales of $8.2 million in Q4 2021.
- Non-GAAP net income for 2021 was $129.1 million, an increase from $68.6 million in the prior year.
- GAAP net loss for the year was $48.2 million compared to $110.9 million in the previous year, highlighting ongoing losses.
- Expected removal of royalties related to INVEGA products could reduce revenues by approximately $260 million in 2022.
- Anticipated GAAP net loss for 2022 is between $180 and $210 million.
DUBLIN, Feb. 16, 2022 /PRNewswire/ -- Alkermes plc (Nasdaq: ALKS) today reported financial results for the quarter and year ended Dec. 31, 2021 and provided financial expectations for 2022.
"In 2021, we made significant progress against our strategic priorities of growing our commercial business, expanding and advancing our development pipeline and driving profitability," said Richard Pops, Chief Executive Officer of Alkermes. "The year was highlighted by the FDA approval and our commercial launch of our oral atypical antipsychotic, LYBALVI®, which joined ARISTADA®, our long-acting injectable antipsychotic, in our psychiatry franchise. We drove new growth with VIVITROL® in the alcohol dependence indication. We met important pipeline milestones, initiating potential registration-enabling studies for nemvaleukin and advancing our HDAC inhibitor and orexin development candidates. In 2022, we are focused on execution as we advance the commercial launch of LYBALVI, enroll our nemvaleukin clinical studies, demonstrate disciplined allocation of capital and manage the business to drive long-term profitability and value creation for our shareholders."
Quarter Ended Dec. 31, 2021 Financial Highlights
- Total revenues for the quarter were
- Total operating expenses for the quarter were
- Net income according to generally accepted accounting principles in the United States (GAAP) was
- Non-GAAP net income was
Year Ended Dec. 31, 2021 Financial Results
Revenues
- Total revenues for the year were
- Net sales of proprietary products for the year were
- Net sales of VIVITROL were
$343.9 million , compared to$310.7 million in the prior year, representing an increase of approximately11% . - Net sales of ARISTADAi were
$275.4 million , compared to$241.0 million in the prior year, representing an increase of approximately14% . - Net sales of LYBALVI were
$8.2 million , following commercial launch in October 2021.
- Manufacturing and royalty revenues for the year were
- Royalty revenues from INVEGA SUSTENNA®/XEPLION®, INVEGA TRINZA®/TREVICTA® and INVEGA HAFYERA® (the "long-acting INVEGA products") were
$303.1 million , compared to$274.2 million in the prior year. - Manufacturing and royalty revenues from RISPERDAL CONSTA® were
$50.9 million , compared to$71.4 million in the prior year. - Manufacturing and royalty revenues from VUMERITY® were
$87.4 million , compared to$22.5 million in the prior year.
Costs and Expenses
- Total operating expenses for the year were
- Cost of Goods Manufactured and Sold were
$197.4 million , compared to$178.3 million in the prior year. - R&D expenses were
$406.5 million , compared to$394.6 million in the prior year. R&D expenses in 2021 included a$25.0 million development milestone paid to the former shareholders of Rodin Therapeutics, Inc. related to the company's HDAC inhibitor platform. Excluding this milestone, R&D expenses for the year were$381.5 million . - Selling, General and Administrative (SG&A) expenses were
$561.0 million , compared to$538.8 million in the prior year, primarily reflecting increased investment to support the launch of LYBALVI.
Profitability
- GAAP net loss for the year was
- Non-GAAP net income for the year was
Balance Sheet
- At Dec. 31, 2021, Alkermes recorded cash, cash equivalents and total investments of
"In 2021, we managed the business to achieve the high end of our overall financial expectations, as we drove topline growth, continued to optimize our cost structure and focused on operational efficiencies. At the same time, we invested in key strategic priorities including the launch of LYBALVI and the nemvaleukin development program," commented Iain Brown, Chief Financial Officer of Alkermes. "We enter 2022 in a solid financial position. Our financial expectations for the year reflect our continued focus on driving the growth of our proprietary products and disciplined capital allocation focused on opportunities with high potential return on investment in support of the company's strategy and to drive shareholder value creation."
Financial Expectations for 2022
The following financial expectations for 2022 assume improvement in COVID-19 pandemic-related disruptions, beginning in the second quarter. If current disruptions do not decrease as anticipated, or if new COVID-19-related disruptions emerge, the company's ability to meet these expectations could be negatively impacted. These financial expectations also reflect removal of all royalties from worldwide sales of the long-acting INVEGA products beginning in 2022. Alkermes has, to date, only received notice of partial termination relating to royalties from the long-acting INVEGA products in the U.S., after January 2022. Alkermes has not received a notice of termination from Janssen in respect of any markets outside the U.S. However, for financial planning purposes only, the company has decided to remove all royalties related to sales in markets outside the U.S. after May 2022. Alkermes continues to disagree with the position taken by Janssen and is prepared to pursue all options at its disposal to enforce its contractual rights and address any unauthorized use of its intellectual property.
All line items are according to GAAP, except as otherwise noted.
In millions (except per share amounts) | 2022 Expectations | |
Total Revenue | ||
VIVITROL Net Sales | ||
ARISTADA Net Sales | ||
LYBALVI Net Sales | ||
INVEGA Franchise Royalties* | ||
Cost of Goods Sold | ||
R&D Expenses | ||
SG&A Expenses | ||
Amortization of Intangible Assets | ~ | |
Other Expense, Net | ||
Income Tax Benefit | ( | |
GAAP Net Loss | ( | |
GAAP Net Loss per Share+ | ( | |
Non-GAAP Net Loss | ( | |
Non-GAAP Loss Per Share+ | ( | |
Capital Expenditures |
*Reflects royalties related to sales of INVEGA SUSTENNA/INVEGA TRINZA/INVEGA HAFYERA in the U.S. through January 2022 and royalties related to sales of XEPLION/TREVICTA through May 2022. |
+2022 per share expectations are calculated based on a weighted average basic share count of approximately 163.0 million shares outstanding and a weighted average diluted share count of approximately 166.5 million shares outstanding. |
Mr. Brown continued, "Over the last several years, we have worked to position the business such that our topline performance will be fueled primarily by the growth of our proprietary products. We estimate that the early termination of the Janssen license agreement in the United States and the impact of its potential termination outside the United States would together reduce our total revenues by approximately
Profitability Targets
The company today updated its long-term profitability targets to reflect the removal of all royalty revenues related to sales of the long-acting INVEGA products in the U.S. after January 2022 and outside the U.S. after May 2022. The company is not providing reconciliations of, or comparable GAAP measures for, the following updated non-GAAP profitability targets, as they are not determinable without unreasonable efforts.*
The company is committed to achieving:
- FY 2025 non-GAAP net income equal to
25% of the company's total revenues and EBITDAii margin of20% of total revenues - FY 2026 non-GAAP net income equal to
30% of the company's total revenues and EBITDA margin of25% of total revenues
As a bridge to these long-term profitability targets, the company expects to achieve non-GAAP net income in the range of
Recent Events:
Psychiatry and Addiction
- In October 2021, the company presented clinical data and epidemiology and health economics and outcomes research from its psychiatry and addiction portfolios at scientific conferences, including Psych Congress, the International Society for Affective Disorders (ISAD) Conference, and the Neuroscience Education Institute (NEI) Congress.
- In February 2022, the company announced positive topline results from ENLIGHTEN-Early, a phase 3b study that evaluated the effect of LYBALVI compared to olanzapine on body weight in patients with schizophrenia, schizophreniform disorder or bipolar I disorder who were early in their illness. The company plans to submit results from the ENLIGHTEN-Early study to a peer-reviewed journal for publication and present full study results at upcoming scientific meetings.
Oncology
- In November 2021, the company presented data from the ION-01 study, a phase 2 trial evaluating intravenous nemvaleukin alfa ("nemvaleukin") in combination with pembrolizumab (KEYTRUDA®) in patients with recurrent or metastatic head and neck squamous cell carcinoma that had previously progressed on an anti-PD-(L)1 therapy, at the Society for Immunotherapy of Cancer's (SITC) 36th Annual Meeting.
- In January 2022, the company presented a poster at the American Society of Clinical Oncology (ASCO) Gastrointestinal (GI) Cancers Symposium, highlighting clinical data related to advanced GI cancers from ARTISTRY-1, a phase 1/2 study evaluating the tolerability and efficacy of nemvaleukin administered intravenously as a monotherapy and in combination with pembrolizumab, and preclinical data from the study of nemvaleukin in combination with novel agents in GI cancers.
Neuroscience
- In November 2021, the company announced dosing of the first subject in a phase 1 study evaluating the safety and tolerability of ALKS 1140 in healthy adults. ALKS 1140 is designed to increase functional synaptic connections and synaptic integrity in the brain.
Corporate
- In November 2021, the company announced the appointment of a new independent director, Cato T. Laurencin, M.D., Ph.D., to the company's Board of Directors. Dr. Laurencin was designated by Sarissa Capital Management LP and certain affiliates (collectively "Sarissa") in connection with Sarissa's April 2021 agreement with the company. Dr. Laurencin brings significant experience across a wide range of medical and scientific disciplines, strong administrative skills, and a focus on public health that is consistent with the company's values and business strategy.
Other
- In November 2021, the company announced receipt of notices of partial termination in respect of two license agreements with Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson Company and, under these agreements, a licensee and recipient of Alkermes' nanoparticulate formulation technology, known as NanoCrystal® technology. The terminations impact know-how royalties related to sales of long-acting INVEGA products and other products in the United States.
Conference Call
Alkermes will host a conference call and webcast presentation with accompanying slides at 8:00 a.m. ET (1:00 p.m. GMT) on Wednesday, Feb. 16, 2022, to discuss these financial results and provide an update on the company. The webcast may be accessed on the Investors section of Alkermes' website at www.alkermes.com. The conference call may be accessed by dialing +1 877 407 2988 for U.S. callers and +1 201 389 0923 for international callers. In addition, a replay of the conference call will be available from 11:00 a.m. ET (4:00 p.m. GMT) on Wednesday, Feb. 16, 2022, through Wednesday, Feb. 23, 2022, and may be accessed by visiting Alkermes' website or by dialing +1 877 660 6853 for U.S. callers and +1 201 612 7415 for international callers. The replay conference ID is 13726455.
About Alkermes plc
Alkermes plc is a fully-integrated, global biopharmaceutical company developing innovative medicines in the fields of neuroscience and oncology. The company has a portfolio of proprietary commercial products focused on alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder, and a pipeline of product candidates in development for neurodegenerative disorders and cancer. Headquartered in Dublin, Ireland, Alkermes has an R&D center in Waltham, Massachusetts; a research and manufacturing facility in Athlone, Ireland; and a manufacturing facility in Wilmington, Ohio. For more information, please visit Alkermes' website at www.alkermes.com.
Non-GAAP Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with GAAP, including non-GAAP net income (loss), non-GAAP basic and diluted earnings (loss) per share, non-GAAP net income margin (non-GAAP net income/total revenue) and EBITDA margin (EBITDA/total revenue). These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Non-GAAP net income (loss) adjusts for certain one-time and non-cash charges by excluding from GAAP results: share-based compensation expense; amortization; depreciation; non-cash net interest expense; certain other one-time or non-cash items; and the income tax effect of these reconciling items. EBITDA represents earnings before interest, tax, depreciation and amortization; earnings include share-based compensation expense.
The company's management and Board of Directors utilize these non-GAAP financial measures to evaluate the company's performance. The company provides these non-GAAP measures of the company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, non-GAAP net income (loss), non-GAAP basic and diluted earnings (loss) per share, non-GAAP net income margin and EBITDA margin are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, non-GAAP net income (loss), non-GAAP basic and diluted earnings (loss) per share, non-GAAP net income margin and EBITDA margin should not be considered measures of the company's liquidity.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release.
*The company has not provided full financial expectations for time periods after the year ending Dec. 31, 2022 and therefore is not providing reconciliations of, or comparable GAAP measures for, non-GAAP net income margins or EBITDA margins, for time periods after the year ending Dec. 31, 2022. Reconciliations of such forward-looking non-GAAP profitability measures to comparable GAAP measures are not determinable without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain future financial amounts necessary for such reconciliations, which amounts could have a significant impact on the company's future financial results, including such non-GAAP profitability measures and the comparable GAAP financial measures.
Note Regarding Forward-Looking Statements
Certain statements set forth in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: the company's expectations concerning its future financial and operating performance, business plans or prospects, including plans to drive growth, long-term profitability and shareholder value creation and the company's profitability targets and its ability to achieve such targets; the potential impacts on the company of Janssen's notice of partial termination; the company's expectations of improvement in COVID-19-related disruptions; the potential therapeutic and commercial value of the company's marketed and development products; the company's expectations concerning its future development activities and commercial activities, including in respect of investments in the company's development pipeline and the launch of LYBALVI. The company cautions that forward-looking statements are inherently uncertain. The forward-looking statements are neither promises nor guarantees and they are necessarily subject to a high degree of uncertainty and risk. Actual performance and results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties. These risks and uncertainties include, among others: the company may not be able to achieve its revised financial and profitability metrics in a timely manner or at all; the impacts of the ongoing COVID-19 pandemic and continued efforts to mitigate its spread on the company's business, results of operations or financial condition, including impacts on healthcare systems and patient and healthcare provider access to the company's commercial products; the unfavorable outcome of arbitration or litigation, including so-called "Paragraph IV" litigation and other patent litigation, or other disputes related to the company's products or products using the company's proprietary technologies; clinical development activities may not be completed on time or at all; the results of the company's development activities may not be positive, or predictive of final results from such activities, results of future development activities or real-world results; the U.S Food and Drug Administration (FDA) may not agree with the company's regulatory approval strategies or components of the company's marketing applications or the adequacy of the data and other information included in its submissions to support the FDA's requirements for approval; regulatory submissions may not occur or be submitted in a timely manner; the FDA or regulatory authorities outside the U.S. may make adverse decisions regarding the company's products; the company and its licensees may not be able to continue to successfully commercialize their products or support growth of revenue from such products; there may be a reduction in payment rate or reimbursement for the company's products or an increase in the company's financial obligations to government payers; the company's products may prove difficult to manufacture, be precluded from commercialization by the proprietary rights of third parties, or have unintended side effects, adverse reactions or incidents of misuse; and those risks and uncertainties described under the heading "Risk Factors" in the company's most recent Annual Report on Form 10-K and in subsequent filings made by the company with the U.S. Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, the company disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release.
VIVITROL® is a registered trademark of Alkermes, Inc.; ARISTADA®, ARISTADA INITIO® and LYBALVI® are registered trademarks of Alkermes Pharma Ireland Limited, used by Alkermes, Inc. under license; RISPERDAL CONSTA®, INVEGA SUSTENNA®, XEPLION®, INVEGA TRINZA®, TREVICTA®, and INVEGA HAFYERA® are registered trademarks of Johnson & Johnson Company; VUMERITY® is a registered trademark of Biogen MA Inc., used by Alkermes under license; and KEYTRUDA® is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ, USA.
Important Additional Information and Where to Find It
The company intends to file a definitive proxy statement, accompanying proxy card and other relevant documents with the SEC in connection with the solicitation of proxies for the company's 2022 Annual General Meeting of Shareholders. BEFORE MAKING ANY VOTING DECISION, SHAREHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING THE COMPANY'S DEFINITIVE PROXY STATEMENT AND ANY AMENDMENTS AND SUPPLEMENTS THERETO, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders will be able to obtain a copy of the definitive proxy statement and other documents filed by the company with the SEC free of charge from the SEC's website at www.sec.gov. In addition, copies will be available at no charge by visiting the "Investors" section of the company's website at www.alkermes.com, as soon as reasonably practicable after such materials are filed with, or furnished to, the SEC.
Certain Information Regarding Participants in the Solicitation
The company, its directors and certain of its executive officers are participants in the solicitation of proxies from shareholders in respect of the company's 2022 Annual General Meeting of Shareholders. Information regarding the names of such participants and their respective interests in the company by security holdings or otherwise is set forth in the company's Form 10-K for the year ended Dec. 31, 2021, to be filed with the SEC on or around Feb. 16, 2022; the company's definitive proxy statement for the company's 2021 Annual General Meeting of Shareholders, filed with the SEC on May 10, 2021; the company's Current Reports on Form 8-K filed with the SEC from time to time; and in Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC from time to time. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the direct and indirect interests of these participants, by security holdings or otherwise, will also be included in the definitive proxy statement for the company's 2022 Annual General Meeting of Shareholders and other relevant materials to be filed with the SEC, if and when they become available.
(tables follow)
i The term "ARISTADA" as used in this press release refers to ARISTADA and ARISTADA INITIO®, unless the context indicates otherwise. | |||
Alkermes plc and Subsidiaries | ||||||||||
Selected Financial Information (Unaudited) | ||||||||||
Condensed Consolidated Statements of Operations - GAAP | Three Months Ended | Three Months Ended | ||||||||
(In thousands, except per share data) | December 31, 2021 | December 31, 2020 | ||||||||
Revenues: | ||||||||||
Product sales, net | $ 178,916 | $ 148,961 | ||||||||
Manufacturing and royalty revenues | 143,372 | 130,893 | ||||||||
License revenue | 2,000 | — | ||||||||
Research and development revenue | 175 | 141 | ||||||||
Total Revenues | 324,463 | 279,995 | ||||||||
Expenses: | ||||||||||
Cost of goods manufactured and sold | 53,682 | 42,922 | ||||||||
Research and development | 98,374 | 112,107 | ||||||||
Selling, general and administrative | 160,408 | 145,778 | ||||||||
Amortization of acquired intangible assets | 9,616 | 9,917 | ||||||||
Total Expenses | 322,080 | 310,724 | ||||||||
Operating Income (Loss) | 2,383 | (30,729) | ||||||||
Other Expense, net: | ||||||||||
Interest income | 453 | 1,036 | ||||||||
Interest expense | (2,405) | (1,869) | ||||||||
Change in the fair value of contingent consideration | (750) | (12,681) | ||||||||
Other income, net | 546 | 2,597 | ||||||||
Total Other Expense, net | (2,156) | (10,917) | ||||||||
Loss Before Income Taxes | 227 | (41,646) | ||||||||
Income Tax (Benefit) Provision | (646) | 996 | ||||||||
Net Income (Loss) — GAAP | $ 873 | $ (42,642) | ||||||||
Earnings (Loss) Per Share: | ||||||||||
GAAP earnings (loss) per share — basic and diluted | $ 0.01 | $ (0.27) | ||||||||
Non-GAAP earnings per share — basic | $ 0.24 | $ 0.10 | ||||||||
Non-GAAP earnings per share — diluted | $ 0.23 | $ 0.10 | ||||||||
Weighted Average Number of Ordinary Shares Outstanding: | ||||||||||
Basic — GAAP and Non-GAAP | 161,833 | 159,153 | ||||||||
Diluted — GAAP | 166,803 | 159,153 | ||||||||
Diluted — Non-GAAP | 166,803 | 161,267 | ||||||||
An itemized reconciliation between net income (loss) on a GAAP basis and non-GAAP net income is as follows: | ||||||||||
Net Income (Loss) — GAAP | $ 873 | $ (42,642) | ||||||||
Adjustments: | ||||||||||
Share-based compensation expense | 19,020 | 24,884 | ||||||||
Depreciation expense | 11,527 | 10,411 | ||||||||
Amortization expense | 9,616 | 9,917 | ||||||||
Income tax effect related to reconciling items | (3,355) | 1,121 | ||||||||
Non-cash net interest expense | 117 | 166 | ||||||||
Change in the fair value of contingent consideration | 750 | 12,681 | ||||||||
Non-GAAP Net Income | $ 38,548 | $ 16,538 | ||||||||
Alkermes plc and Subsidiaries | ||||||||||
Selected Financial Information (Unaudited) | ||||||||||
Condensed Consolidated Statements of Operations - GAAP | Year Ended | Year Ended | ||||||||
(In thousands, except per share data) | December 31, 2021 | December 31, 2020 | ||||||||
Revenues: | ||||||||||
Product sales, net | $ 627,424 | $ 551,760 | ||||||||
Manufacturing and royalty revenues | 541,807 | 484,000 | ||||||||
License revenue | 3,500 | 1,050 | ||||||||
Research and development revenue | 1,020 | 1,946 | ||||||||
Total Revenues | 1,173,751 | 1,038,756 | ||||||||
Expenses: | ||||||||||
Cost of goods manufactured and sold | 197,387 | 178,316 | ||||||||
Research and development | 406,526 | 394,588 | ||||||||
Selling, general and administrative | 560,977 | 538,827 | ||||||||
Amortization of acquired intangible assets | 38,148 | 39,452 | ||||||||
Total Expenses | 1,203,038 | 1,151,183 | ||||||||
Operating Loss | (29,287) | (112,427) | ||||||||
Other (Expense) Income, net: | ||||||||||
Interest income | 2,408 | 6,960 | ||||||||
Interest expense | (11,219) | (8,659) | ||||||||
Change in the fair value of contingent consideration | (1,427) | 3,945 | ||||||||
Other income, net | 219 | 13,644 | ||||||||
Total Other (Expense) Income, net | (10,019) | 15,890 | ||||||||
Loss Before Income Taxes | (39,306) | (96,537) | ||||||||
Income Tax Provision | 8,863 | 14,324 | ||||||||
Net Loss — GAAP | $ (48,169) | $ (110,861) | ||||||||
(Loss) Earnings Per Share: | ||||||||||
GAAP loss per share — basic and diluted | $ (0.30) | $ (0.70) | ||||||||
Non-GAAP earnings per share — basic | $ 0.80 | $ 0.43 | ||||||||
Non-GAAP earnings per share — diluted | $ 0.78 | $ 0.43 | ||||||||
Weighted Average Number of Ordinary Shares Outstanding: | ||||||||||
Basic and diluted — GAAP | 160,942 | 158,803 | ||||||||
Basic — Non-GAAP | 160,942 | 158,803 | ||||||||
Diluted — Non-GAAP | 164,753 | 159,861 | ||||||||
An itemized reconciliation between net loss on a GAAP basis and non-GAAP net income is as follows: | ||||||||||
Net Loss — GAAP | $ (48,169) | $ (110,861) | ||||||||
Adjustments: | ||||||||||
Share-based compensation expense | 87,623 | 90,161 | ||||||||
Depreciation expense | 40,505 | 42,402 | ||||||||
Amortization expense | 38,148 | 39,452 | ||||||||
Income tax effect related to reconciling items | 6,994 | 10,092 | ||||||||
Non-cash net interest expense | 469 | 666 | ||||||||
Change in the fair value of contingent consideration | 1,427 | (3,945) | ||||||||
Debt refinancing | 2,109 | — | ||||||||
Acquisition of IPR&D | — | 674 | ||||||||
Non-GAAP Net Income | $ 129,106 | $ 68,641 | ||||||||
Condensed Consolidated Balance Sheets | December 31, | December 31, | ||||||||
(In thousands) | 2021 | 2020 | ||||||||
Cash, cash equivalents and total investments | $ 765,741 | $ 659,807 | ||||||||
Receivables | 313,193 | 275,143 | ||||||||
Inventory | 150,335 | 125,738 | ||||||||
Contract assets | 13,363 | 14,401 | ||||||||
Prepaid expenses and other current assets | 48,967 | 60,662 | ||||||||
Property, plant and equipment, net | 341,054 | 350,003 | ||||||||
Intangible assets, net and goodwill | 166,916 | 204,064 | ||||||||
Other assets | 224,915 | 259,912 | ||||||||
Total Assets | $ 2,024,484 | $ 1,949,730 | ||||||||
Long-term debt — current portion | $ 3,000 | $ 2,843 | ||||||||
Other current liabilities | 468,286 | 435,415 | ||||||||
Long-term debt | 292,804 | 272,118 | ||||||||
Contract liabilities — long-term | 11,491 | 16,397 | ||||||||
Other long-term liabilities | 136,319 | 155,975 | ||||||||
Total shareholders' equity | 1,112,584 | 1,066,982 | ||||||||
Total Liabilities and Shareholders' Equity | $ 2,024,484 | $ 1,949,730 | ||||||||
Ordinary shares outstanding (in thousands) | 161,937 | 159,161 | ||||||||
This selected financial information should be read in conjunction with the consolidated financial statements and notes thereto included in Alkermes plc's Annual Report on Form 10-K for the year ended December 31, 2021, which the company intends to file in February 2022. | ||||||||||
Revenues for Calendar Year 2021 and 2020 | ||||||||||
Three Months | Three Months | Three Months | Three Months | Year | ||||||
Ended | Ended | Ended | Ended | Ended | ||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||
(In thousands) | 2021 | 2021 | 2021 | 2021 | 2021 | |||||
Revenues: | ||||||||||
VIVITROL | $ 74,534 | $ 88,417 | $ 88,865 | $ 92,038 | $ 343,854 | |||||
INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA | 61,570 | 81,072 | 79,323 | 81,140 | 303,105 | |||||
ARISTADA | 55,429 | 72,391 | 68,872 | 78,663 | 275,355 | |||||
VUMERITY | 13,440 | 20,348 | 26,749 | 26,885 | 87,422 | |||||
RISPERDAL CONSTA | 14,162 | 14,450 | 10,970 | 11,287 | 50,869 | |||||
LYBALVI | — | — | — | 8,215 | 8,215 | |||||
Key Commercial Product Revenues | 219,135 | 276,678 | 274,779 | 298,228 | 1,068,820 | |||||
Legacy Product Revenues | 30,675 | 26,424 | 19,252 | 24,060 | 100,411 | |||||
License Revenue | 1,500 | — | — | 2,000 | 3,500 | |||||
Research and Development Revenues | 120 | 615 | 110 | 175 | 1,020 | |||||
Total Revenues | $ 251,430 | $ 303,717 | $ 294,141 | |||||||
Three Months | Three Months | Three Months | Three Months | Year | ||||||
Ended | Ended | Ended | Ended | Ended | ||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||
(In thousands) | 2020 | 2020 | 2020 | 2020 | 2020 | |||||
Revenues: | ||||||||||
VIVITROL | $ 78,769 | $ 71,646 | $ 80,258 | $ 80,049 | $ 310,722 | |||||
INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA | 54,927 | 69,385 | 73,366 | 76,522 | 274,200 | |||||
ARISTADA | 50,957 | 58,769 | 62,400 | 68,912 | 241,038 | |||||
RISPERDAL CONSTA | 27,316 | 13,729 | 14,510 | 15,805 | 71,360 | |||||
VUMERITY | 1,691 | 2,594 | 2,713 | 15,543 | 22,541 | |||||
Key Commercial Product Revenues | 213,660 | 216,123 | 233,247 | 256,831 | 919,861 | |||||
Legacy Product Revenues | 32,317 | 30,797 | 29,762 | 23,023 | 115,899 | |||||
License Revenue | — | ` | — | 1,050 | — | 1,050 | ||||
Research and Development Revenues | 243 | 609 | 953 | 141 | 1,946 | |||||
Total Revenues | $ 246,220 | $ 247,529 | $ 265,012 | |||||||
2022 Guidance — GAAP to Non-GAAP Adjustments | ||||||||||
An itemized reconciliation between projected loss per share on a GAAP basis and projected loss per share on a non-GAAP basis is as follows: | ||||||||||
(In millions, except per share data) | Amount | Shares | Loss Per | |||||||
Projected Net Loss — GAAP | $ (195.0) | 163 | $ (1.20) | |||||||
Adjustments: | ||||||||||
Share-based compensation expense | 99.0 | |||||||||
Depreciation expense | 40.0 | |||||||||
Amortization expense | 35.0 | |||||||||
Income tax effect related to reconciling items | 5.0 | |||||||||
Non-cash net interest expense | 1.0 | |||||||||
Projected Net Loss — Non-GAAP | $ (15.0) | 163 | $ (0.09) | |||||||
Projected GAAP and non-GAAP measures reflect mid-points within ranges of estimated guidance. | ||||||||||
Alkermes Contacts: | ||
For Investors: | Sandy Coombs | +1 781 609 6377 |
For Media: | Katie Joyce | +1 781 249 8927 |
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SOURCE Alkermes plc
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