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ALKS Nasdaq· Alkermes PLC
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ALKS Nasdaq· Alkermes PLC
Earnings report Q4 2023

ALKS Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

ALKS reported total revenues of $1.66 billion for the year ended December 31, 2023. The breakdown of revenue segments is as follows:

  • Product sales, net: $920 million
  • Manufacturing and royalty revenues: $743 million
  • License revenue: $0
  • Research and development revenue: $19 thousand

Strengths

ALKS demonstrated robust revenue growth in the latest quarter. Product sales, net increased by 18% compared to the previous year, reaching $920 million. This growth can be attributed to the strong performance of their proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia, and bipolar I disorder. Additionally, manufacturing and royalty revenues saw a significant increase of 124% to $743 million, indicating successful partnerships and licensing agreements. ALKS management highlighted the positive impact of their innovative medicines in the field of neuroscience on revenue growth.

Challenges

While ALKS experienced overall revenue growth, license revenue decreased to zero in the latest quarter. This decline may pose a challenge for the company, as it suggests a potential slowdown in licensing agreements and partnerships. ALKS should focus on diversifying their revenue streams to mitigate this challenge.

Noteworthy

ALKS reported an operating income of $414 million for the year ended December 31, 2023, compared to a loss of $6 million in the previous year. This significant improvement in operating income reflects the company's ability to effectively manage expenses and generate higher revenues. ALKS also highlighted the completion of certain long-term safety and tolerability studies, which contributed to decreased expenses. Additionally, ALKS initiated a phase 1b proof-of-concept study for their ALKS 2680 product, indicating progress in their pipeline development.

Summary

ALKS delivered a strong financial performance in the latest quarter, driven by robust growth in product sales and manufacturing and royalty revenues. The company's innovative medicines in the field of neuroscience have contributed to their revenue growth. However, the decline in license revenue poses a challenge for ALKS, highlighting the need to diversify revenue streams. ALKS demonstrated effective expense management, leading to a significant improvement in operating income. Overall, ALKS's financial performance reflects their commitment to developing innovative treatments in the neuroscience sector.

Source documents

Form 10-K  filed on Feb 21, 2024
118 pages scanned

Reference data

Company financials Q4 revenue 377M
Analyst estimates Q4 EPS missed by -48.36%
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