Alkermes plc (ALKS) Bundle
A Brief History of Alkermes plc
Alkermes plc is a global biopharmaceutical company focused on developing innovative medicines for the treatment of neurological disorders, including schizophrenia, bipolar disorder, and addiction. As of 2024, the company's portfolio includes proprietary products and a pipeline of clinical candidates.
Company Overview
Founded in 2000 and headquartered in Dublin, Ireland, Alkermes operates with additional facilities in Massachusetts and Ohio. The company is publicly traded on the NASDAQ under the ticker symbol ALKS.
Financial Performance
For the nine months ended September 30, 2024, Alkermes reported:
- Total revenue: $775.8 million
- Net income: $220.6 million
- Earnings per share (EPS): $1.32
Key Financial Metrics
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Revenue | $775.8 million | $678.0 million |
| Net Income | $220.6 million | $242.9 million |
| Earnings per Share (EPS) | $1.32 | $1.46 |
| Cash and Cash Equivalents | $396.3 million | $457.5 million |
Research and Development
Alkermes invests significantly in R&D, with expenditures of $22.4 million for the nine months ended September 30, 2024. This reflects a focus on advancing its pipeline of therapies aimed at neurological conditions.
Share Repurchase Program
In February 2024, Alkermes' board approved a share repurchase program allowing for the repurchase of up to $400 million of its ordinary shares. During the three months ended September 30, 2024, the company repurchased approximately 4.4 million shares at an average price of $26.22 per share, totaling $115.3 million.
Market Position
As of September 30, 2024, Alkermes maintains a strong market presence with total product sales of $272.9 million for the third quarter. The company faces competition from generic versions of its long-acting INVEGA products, which may impact future revenues.
Recent Developments
Alkermes completed the sale of its Athlone Facility in May 2024, generating a gain of approximately $1.5 million. The company continues to adapt to market dynamics and regulatory changes, aiming to sustain its growth trajectory in the biopharmaceutical sector.
Liquidity and Financial Condition
As of September 30, 2024, Alkermes reported total cash and investments amounting to $927.8 million, with outstanding borrowings of $288.8 million.
Conclusion
Alkermes' strategic focus on innovation, robust financial metrics, and proactive management of market challenges position the company well for continued growth in the biopharmaceutical arena.
A Who Owns Alkermes plc (ALKS)
Shareholder Structure
As of 2024, Alkermes plc (ALKS) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The total number of ordinary shares outstanding as of September 30, 2024, is approximately 176.3 million shares.
Major Institutional Shareholders
The following table provides a breakdown of the top institutional shareholders of Alkermes plc as of early 2024:
| Institution | Shares Held (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 15.2 | 8.6% |
| BlackRock, Inc. | 13.9 | 7.9% |
| State Street Corporation | 10.5 | 5.9% |
| Fidelity Investments | 9.8 | 5.5% |
| Invesco Ltd. | 8.2 | 4.6% |
Shareholder Equity and Market Capitalization
As of September 30, 2024, Alkermes reported total shareholders' equity of approximately $1.29 billion. The market capitalization of Alkermes plc, based on a share price of approximately $26.22 at the end of September 2024, is about $4.63 billion.
Recent Share Repurchase Program
In February 2024, the company announced a share repurchase program authorizing up to $400 million in repurchases. By September 30, 2024, approximately $200 million remained available under this program.
Management Ownership
Management and insiders hold a significant portion of Alkermes' shares. The following table outlines key executives and their ownership stakes:
| Executive | Position | Shares Held (millions) |
|---|---|---|
| Richard Pops | CEO | 2.1 |
| Michael H. Miller | CFO | 1.5 |
| James Frates | COO | 1.0 |
Stock Performance
Alkermes' stock price has shown resilience in 2024, with a year-to-date increase of approximately 25%. The average trading volume has been around 1.5 million shares per day, reflecting strong investor interest.
Conclusion
The ownership of Alkermes plc is characterized by a balanced mix of institutional and management stakeholders, with ongoing strategic initiatives such as share repurchase programs aimed at enhancing shareholder value.
Alkermes plc (ALKS) Mission Statement
Overview
Alkermes plc is committed to improving the lives of patients facing complex diseases in the areas of neuroscience and oncology. The company's mission is to deliver innovative medicines that address unmet medical needs and provide meaningful benefits to patients.
Current Mission Statement
The mission statement of Alkermes as of 2024 emphasizes the following core elements:
- Innovation: Developing advanced therapeutic solutions.
- Patient-Centricity: Focusing on the needs and experiences of patients.
- Collaboration: Partnering with healthcare professionals and organizations.
- Integrity: Conducting business ethically and responsibly.
Financial Overview
In 2024, Alkermes reported significant financial metrics that reflect its operational efficacy and market performance. Below is a summary of key financial figures:
| Metric | Value |
|---|---|
| Net Income (Q3 2024) | $92.4 million |
| Earnings per Share (EPS) - Basic (Q3 2024) | $0.57 |
| Total Revenue (Q3 2024) | $273 million |
| Total Assets (as of September 30, 2024) | $1.76 billion |
| Total Liabilities (as of September 30, 2024) | $1.29 billion |
| Cash Flow from Operating Activities (YTD September 2024) | $248.7 million |
| Research and Development Expenses (Q3 2024) | $26 million |
| Market Capitalization (as of September 30, 2024) | $4.3 billion |
Product Portfolio and Impact
Alkermes focuses on several key products that align with its mission to address serious conditions. The following table summarizes the primary marketed products and their indications:
| Product | Indications | Marketed Territory |
|---|---|---|
| VIVITROL | Alcohol dependence, opioid overdose | U.S. |
| ARISTADA | Schizophrenia | U.S. |
| LYBALVI | Schizophrenia, bipolar I disorder | U.S. |
Recent Developments
In February 2024, Alkermes announced a new share repurchase program authorizing up to $400 million in repurchases. This strategic decision reflects the company’s commitment to enhancing shareholder value while continuing to invest in innovative product development.
Market Trends and Future Directions
As of 2024, Alkermes is actively participating in the growing market for mental health and oncology therapies, which is projected to expand due to increasing awareness and demand for effective treatment options. The company aims to leverage its innovative research capabilities to develop next-generation therapies that can transform patient care.
Conclusion
Alkermes plc's mission statement and strategic objectives are closely aligned with its financial performance and product offerings, showcasing a commitment to improving patient outcomes through innovation and collaboration.
How Alkermes plc (ALKS) Works
Business Overview
Alkermes plc is a biopharmaceutical company that focuses on developing innovative medicines for the treatment of serious mental illness and addiction. The company operates through a combination of proprietary products and collaboration agreements with other pharmaceutical companies.
Marketed Products
As of 2024, Alkermes' key marketed products include:
- VIVITROL - Used for the treatment of alcohol dependence and opioid dependence.
- ARISTADA - A long-acting injectable for the treatment of schizophrenia.
- LYBALVI - An antipsychotic used for the treatment of schizophrenia and bipolar I disorder.
| Product | Indication | 2024 Revenue (in millions) |
|---|---|---|
| VIVITROL | Alcohol and opioid dependence | $323.2 |
| ARISTADA | Schizophrenia | $249.6 |
| LYBALVI | Schizophrenia, Bipolar I disorder | $203.1 |
Financial Performance
For the three months ended September 30, 2024, Alkermes reported:
- Total product sales, net: $273.0 million, compared to $231.8 million for the same period in 2023.
- Net income: $92.4 million, resulting in earnings per share (EPS) of $0.57.
- Comprehensive income: $96.4 million.
For the nine months ended September 30, 2024:
- Total product sales, net: $775.8 million, up from $678.0 million in 2023.
- Net income: $220.6 million, with EPS of $1.36.
Revenue Breakdown
Alkermes generates revenue from product sales, manufacturing, and royalty revenues. The following table summarizes the revenue components:
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Product Sales | $273.0 | $231.8 | $41.2 |
| Manufacturing Revenue | $15.9 | $40.6 | $(24.7) |
| Royalty Revenue | $89.2 | $108.5 | $(19.3) |
Cost Structure
Alkermes' operating expenses for the three months ended September 30, 2024, included:
- Cost of goods manufactured and sold: $1.7 million.
- Research and development: $6.1 million.
- Selling, general and administrative: $14.7 million.
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow from operating activities amounted to:
- Net cash provided by operating activities: $248.7 million.
- Net income: $220.6 million.
- Share-based compensation: $75.9 million.
Debt Obligations
As of September 30, 2024, Alkermes had the following debt obligations:
- 2026 Term Loans: $288.8 million.
- Less: Current portion: $3.0 million.
- Total long-term debt: $285.8 million.
Share Repurchase Program
In February 2024, Alkermes announced a new share repurchase program authorizing up to $400 million in share repurchases. As of September 30, 2024, approximately $200 million remained under this program.
Income Tax Provisions
The company recorded income tax provisions of $17.4 million and $47.5 million during the three and nine months ended September 30, 2024, respectively.
Market Trends and Challenges
Alkermes faces market challenges including increased competition from generic drugs, particularly with the upcoming expiration of patents related to its long-acting INVEGA products and the need to manage operational costs effectively to maintain profitability.
How Alkermes plc (ALKS) Makes Money
Product Sales
Alkermes generates revenue primarily through the sales of its proprietary products. In the third quarter of 2024, product sales, net, amounted to $272.999 million, up from $231.822 million in the same quarter of 2023, reflecting an increase of $41.177 million.
| Product | Q3 2024 Sales ($ million) | Q3 2023 Sales ($ million) | Change ($ million) |
|---|---|---|---|
| VIVITROL | 113.650 | 99.305 | 14.345 |
| ARISTADA and ARISTADA INITIO | 84.652 | 81.834 | 2.818 |
| LYBALVI | 74.697 | 50.683 | 24.014 |
Manufacturing and Royalty Revenues
For the three months ended September 30, 2024, Alkermes recorded manufacturing and royalty revenues totaling $105.144 million, compared to $149.113 million in the prior year, indicating a decline of $43.969 million.
| Source | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | Change ($ million) |
|---|---|---|---|
| Long-acting INVEGA products | 58.448 | 76.109 | (17.661) |
| VUMERITY | 32.574 | 34.561 | (1.987) |
| Other | 14.122 | 38.443 | (24.321) |
Cash Flow from Operations
Cash flows from operating activities for the nine months ended September 30, 2024, totaled $248.727 million, compared to $294.116 million for the same period in 2023. This decrease was primarily due to changes in working capital and adjustments for non-cash items.
Operating Income and Expenses
For the nine months ended September 30, 2024, Alkermes reported total revenues of $1.127646 billion against total expenses of $869.698 million, leading to an operating income of $257.948 million.
| Category | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Total Revenues | 1,127.646 | 1,285.930 |
| Total Expenses | 869.698 | 926.439 |
| Operating Income | 257.948 | 359.491 |
Net Income
Net income from continuing operations for the nine months ended September 30, 2024, was $226.401 million, compared to $358.605 million for the same period in 2023. This represents a decrease of $132.204 million.
Tax Provisions
In the third quarter of 2024, Alkermes recorded an income tax provision of $17.435 million, compared to $1.153 million in the same quarter of 2023. This increase reflects the company's higher earnings in jurisdictions with tax implications.
Debt and Financing Activities
As of September 30, 2024, Alkermes reported long-term debt of $288.823 million under the 2026 Term Loans. The company incurred interest expense of $6.000 million during the third quarter of 2024.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, were $187.152 million, compared to $196.873 million in 2023.
| Category | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| External R&D Expenses | 76.600 | 66.300 |
| Internal R&D Expenses | 87.600 | 96.800 |
Shareholder Equity
As of September 30, 2024, Alkermes had total shareholders’ equity of $1.292106 billion, an increase from $1.202686 billion at the end of 2023.
Alkermes plc (ALKS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Alkermes plc (ALKS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alkermes plc (ALKS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alkermes plc (ALKS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.