Alkermes plc ((ALKS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Alkermes plc highlighted a strong financial performance in 2024, marked by record revenues and substantial progress in pipeline development. Despite anticipated reductions in manufacturing and royalty revenues, the company remains strategically focused on profitability and pipeline advancement, with a particular emphasis on ALKS 2680, positioning itself well for future growth.
Record-Breaking Revenue Achievement
Alkermes celebrated a breakthrough year in 2024, achieving over $1.5 billion in revenue, largely propelled by its proprietary product portfolio, marking an impressive 18% year-over-year growth. The company reported over $1 billion in net sales from these proprietary products.
Strong EBITDA Performance
The company surpassed its EBITDA goals, generating over $450 million from continuing operations in 2024. Looking ahead, Alkermes projects more than $200 million in EBITDA for 2025, indicating a strong financial foundation.
Debt-Free Status and Cash Reserves
Alkermes ended 2024 on a high note by retiring all of its debt and maintaining $825 million in cash reserves. Additionally, the company repurchased approximately 8 million shares, further bolstering its balance sheet.
VIVITROL and LYBALVI Growth
Sales for VIVITROL and LYBALVI showed robust growth, with VIVITROL increasing by 14% year-over-year and LYBALVI by 46%. LYBALVI’s remarkable growth is attributed to a 39% increase in TRx growth, with plans to enhance market access in 2025.
Pipeline Progress with ALKS 2680
The company made significant strides in its neuroscience development pipeline, particularly with ALKS 2680, conducting two well-powered Phase 2 studies for narcolepsy, which holds transformative potential for 2025.
Inventory and Gross-to-Net Dynamics
An extra ordering cycle and favorable gross-to-net dynamics resulted in a one-time revenue boost of approximately $35 million in the fourth quarter.
Decrease in Manufacturing and Royalty Revenues
Alkermes anticipates a decrease of around $215 million in manufacturing and royalty revenues for 2025, largely due to the expiration of the INVEGA SUSTENNA U.S. royalty.
Flat to Modest Growth for Mature Products
The outlook for mature products like VIVITROL and ARISTADA in 2025 suggests flat to modest growth, reflecting current market dynamics.
Forward-Looking Guidance
For 2025, Alkermes has set its revenue guidance between $1.34 billion and $1.43 billion, with net sales from proprietary products anticipated to range from $1.09 billion to $1.15 billion. The company expects EBITDA to fall between $215 million and $245 million and adjusted EBITDA to range from $310 million to $340 million. A key focus will be on sustaining growth for LYBALVI, with a projected 25% increase in demand, and advancing the ALKS 2680 Phase 2 studies in narcolepsy.
In summary, Alkermes plc’s earnings call paints a picture of strong financial health and strategic foresight, underscored by record revenues and a robust product pipeline. While challenges such as decreased manufacturing and royalty revenues persist, the company’s commitment to profitability and innovation promises continued growth and success.
