-- Unit Sales of RISPERDAL(R) CONSTA(R) Increased More Than 16 Percent Quarter Over Quarter --
-- Company Updates Financial Expectations for Fiscal 2009 --
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
Alkermes, Inc. (NASDAQ: ALKS) today announced financial results for its
third quarter of fiscal 2009. Financial highlights for the quarter ended
December 31, 2008, include:
-
Profitable quarter on a GAAP basis, with net income of $112.3 million.
-
Quarterly revenues of $155.7 million, including the recognition of
$120.7 million of one-time milestone and deferred revenue.
-
Worldwide sales of RISPERDAL® CONSTA® by
Janssen, Division of Ortho-McNeil-Janssen Pharmaceuticals, Inc. and
Janssen–Cilag (Janssen) were $318.8 million. On a unit basis,
worldwide sales of RISPERDAL CONSTA increased 16.3 percent compared to
the same period in 2007. Sales of RISPERDAL CONSTA were $999.5 million
for the first nine months of fiscal 2009.
-
Strong financial position, with cash and total investments of $423.6
million. The business generated $4.0 million in cash from operations
in the third quarter and $43.2 million for the first nine months of
fiscal 2009.
-
Repurchase of an additional 487,300 shares of common stock as part of
an ongoing stock repurchase program. To date, the company has
repurchased over 8.5 million shares of common stock for approximately
$111.3 million.
“Alkermes is positioned for success in 2009. RISPERDAL CONSTA sales
continue to grow on a unit basis, and a phase 1 study of a four-week
formulation of this product is underway. Throughout the calendar year,
we also expect significant progress across our proprietary portfolio,
including topline data from multiple development programs,” commented
James Frates, chief financial officer of Alkermes. “Moving forward, we
have the financial resources to continue to build our business, and we
expect positive cash flow from operations for the fiscal year.”
Key operating results for the quarter ended December 31, 2008, include
the following:
-
Net income was $112.3 million or a basic earnings per share of $1.18
and diluted earnings per share of $1.17, including $3.3 million in
share-based compensation expense and $120.6 million of one-time net
income related to the company’s previous agreements with Cephalon,
Inc. (Cephalon) for the commercialization of VIVITROL®. For
the same period in 2007, net income was $168.9 million or a basic
earnings per share of $1.66 and a diluted earnings per share of $1.63,
which included $5.2 million in share-based compensation expense and
$171.3 million of net income from the sale of the company’s stake in
Reliant Pharmaceuticals, Inc. (Reliant).
-
Pro forma net loss was $5.0 million or a basic and diluted loss per
share of $0.05, compared to a net income of $2.8 million or a basic
and diluted earnings per share of $0.03 for the same period in 2007.
Alkermes is providing pro forma results as a complement to GAAP results.
The pro forma measure excludes certain noncash or nonrecurring items,
and Alkermes' management believes these pro forma measures help to
indicate underlying trends in the company's ongoing operations. The
reconciliation between pro forma and reported diluted (loss) earnings
per share for the third quarters of fiscal 2009 and 2008 is provided in
the following table:
|
|
|
Pro Forma Diluted (Loss) Earnings
|
|
Impact of the Termination of the Collaborative Agreements with
Cephalon
|
|
Income from Sale of Stake in Reliant, Net of Taxes
|
|
Share-Based Compensation Expense
|
|
Reported GAAP Diluted Earnings
|
|
Q3 FY 2009
|
|
$(0.05)
|
|
$1.27
|
|
--
|
|
$(0.03)
|
|
$1.17
|
|
Q3 FY 2008
|
|
$0.03
|
|
--
|
|
$1.65
|
|
$(0.05)
|
|
$1.63
|
Note: Amounts may not sum due to rounding. Pro forma per share
calculations in Q3 FY 2009 exclude the effect of potential outstanding
shares, such as stock options and restricted stock units, as the
inclusion of such shares would be anti-dilutive.
The following financial results are reported on a GAAP basis and include
share-based compensation expense:
Revenues
-
Manufacturing revenues for the quarter ended December 31, 2008, were
$20.5 million compared to $14.3 million for the same period in 2007,
an increase of 44 percent year over year. Manufacturing revenues for
the quarter ended December 31, 2008, consisted of $21.3 million for
RISPERDAL CONSTA and $(0.8) million for VIVITROL, compared to $12.9
million for RISPERDAL CONSTA and $1.4 million for VIVITROL for the
same period in 2007. In the quarter ended December 31, 2008, the
company reversed $0.8 million of manufacturing revenue for VIVITROL
previously sold to Cephalon, which Alkermes is now selling in the
end-market.
-
Royalty revenues for the quarter ended December 31, 2008, were $8.0
million compared to $7.4 million for the same period in 2007. Royalty
revenues were based on RISPERDAL CONSTA sales of $318.8 million for
the quarter ended December 31, 2008, compared to $295.1 million for
the same period in 2007.
-
Research and development (R&D) revenue under collaborative
arrangements for the quarter ended December 31, 2008, was $3.7
million, compared to $24.0 million for the same period in 2007, due to
an increased focus on proprietary programs as compared to partnered
programs.
-
Net collaborative profit for the quarter ended December 31, 2008, was
$123.4 million, compared to $5.1 million for the same period in 2007.
Net collaborative profit for the quarter ended December 31, 2008,
included the recognition of $120.7 million of one-time milestone and
deferred revenue related to the company’s previous agreements with
Cephalon and $1.2 million of deferred revenue prepaid by Cephalon to
cover its share of VIVITROL losses.
-
During the quarter, Alkermes regained commercial rights to VIVITROL in
the U.S. and, effective December 1, 2008, changed the revenue
recognition policy for the product. Under the previous policy which
recognized sales upon shipment into the distribution channel, gross
sales of VIVITROL during the quarter would have been $4.7 million, of
which $3.1 million were recognized by the collaboration in October and
November 2008. Due to the introduction of a return policy, Alkermes
deferred its VIVITROL net sales in December 2008 as the company
establishes a return history. The company expects to recognize product
sales beginning in January 2009 as product is shipped out of the
distribution channel.
Costs and Expenses
-
Cost of goods manufactured for the quarter ended December 31, 2008,
was $5.5 million, of which $5.0 million related to RISPERDAL CONSTA
and $0.5 million related to VIVITROL, compared to $7.5 million for the
same period in 2007, of which $5.9 million related to RISPERDAL CONSTA
and $1.6 million related to VIVITROL. In the quarter ended December
31, 2008, the company reversed $0.7 million of cost of goods sold for
VIVITROL related to product previously sold to Cephalon which Alkermes
is now selling in the end-market.
-
R&D expenses for the quarter ended December 31, 2008, were $22.7
million, compared to $30.4 million for the same period in 2007.
-
Selling, general and administrative (SG&A) expenses for the quarter
ended December 31, 2008, were $14.6 million, compared to $15.2 million
for the same period in 2007.
-
Share-based compensation expense (included in the expenses above) for
the quarter ended December 31, 2008, was $3.3 million, of which $0.3
million related to cost of goods manufactured, $0.5 million related to
R&D expenses and $2.5 million related to SG&A expenses. Share-based
compensation expense for the quarter ended December 31, 2007, was $5.2
million, of which $0.3 million related to cost of goods manufactured,
$2.1 million related to R&D expenses and $2.8 million related to SG&A
expenses.
-
Interest income for the quarter ended December 31, 2008, was $2.6
million, compared to $4.3 million for the same period in 2007.
Interest expense for the quarter ended December 31, 2008, was $2.8
million, compared to $4.1 million for the same period in 2007.
-
Income tax benefit for the quarter ended December 31, 2008, was $0.3
million, compared to an income tax expense of $3.2 million for the
same period in 2007.
At December 31, 2008, Alkermes had cash and total investments of $423.6
million, compared to $425.8 million at September 30, 2008.
Recent Highlights
Highlights of Alkermes’ third quarter and recent activities include the
following:
-
Clinical development initiated for a four-week long-acting
injectable formulation of risperidone: In January, Johnson
& Johnson Pharmaceutical Research & Development, L.L.C. (J&JPRD)
initiated a phase 1 study for a four-week long-acting injectable
formulation of risperidone for the treatment of schizophrenia. The
single-dose, open-label study is designed to assess the
pharmacokinetics, safety and tolerability of a gluteal injection of
this risperidone formulation in approximately 26 patients diagnosed
with chronic, stable schizophrenia.
-
Proprietary pipeline progress: In December, Alkermes initiated
a phase 1 study in healthy volunteers of ALKS 33, an oral opioid
modulator for the potential treatment of addiction and other central
nervous system (CNS) disorders. ALKS 33 is the company’s first novel,
small molecule drug candidate to enter the clinic. Also in December,
the company initiated a pharmacokinetic study of ALKS 29, a potential
treatment for alcohol dependence. Alkermes expects to report topline
results from these two studies in the second half of calendar 2009.
-
Continued progress with the DURATION studies for exenatide once
weekly: In December, Amylin Pharmaceuticals, Inc., Eli
Lilly and Company and Alkermes announced the initiation of DURATION-4,
a superiority study designed to evaluate exenatide once weekly as a
monotherapy treatment compared to either metformin, a
thiazolidinedione (TZD) or a dipeptidyl peptidase-4 (DPP-4) inhibitor.
The double-blind study is expected to include approximately 800 type 2
diabetes patients. The companies also announced completion of
enrollment in DURATION-3, an open-label, superiority study designed to
compare exenatide once weekly with insulin glargine on a background of
oral agent therapy in approximately 450 type 2 diabetes patients.
-
Full U.S. rights to VIVITROL regained: On December 1, 2008,
Alkermes regained from Cephalon full commercialization rights to
VIVITROL in the U.S. following a portfolio review by Cephalon.
Cephalon paid Alkermes $11 million as part of its obligations, and
Alkermes paid Cephalon $16 million to purchase manufacturing equipment
for the product.
Updated Financial Expectations for
Fiscal 2009
Alkermes today updated its financial expectations for the fiscal year
ending March 31, 2009. These financial expectations include the impact
of share-based compensation expense. Certain statements set forth below
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. For information with respect
to factors that could cause Alkermes' actual results to differ
materially from its expectations, please see the risk factors provided
at the end of this press release and in Alkermes’ Form 10-K for the
fiscal year ended March 31, 2008, as filed with the U.S. Securities and
Exchange Commission.
-
Manufacturing Revenues: The company expects manufacturing
revenues to remain in the range of $111 to $122 million.
-
Royalty Revenues: The company is adjusting its expectation for
royalty revenues from RISPERDAL CONSTA to a range of $33 to $35
million, revised from an expectation of $34 to $36 million, due to the
impact of currency fluctuations.
-
Product Sales: The company is adjusting its expectation for net
sales from VIVITROL to a range of $4 to $6 million, revised from an
expectation of $5 to $8 million, due to the deferral of revenue in
December. For fiscal 2009, based on the previous collaboration revenue
recognition policy, the company expects gross sales of VIVITROL to
remain in the range of $19 to $24 million.
-
R&D Revenues: The company is adjusting its expectation for
R&D revenues to a range of $41 to $45 million, revised from an
expectation of $45 to $50 million, primarily due to the early
completion of work performed on the exenatide once weekly program.
-
Net Collaborative Profit: The company expects net collaborative
profit to remain in the range of $125 to $130 million.
-
Total Revenues: The company is adjusting its expectation for
total revenues for fiscal 2009 to a range of $314 to $338 million,
revised from an expectation of $320 to $346 million.
-
Cost of Goods Manufactured: The company expects cost of goods
manufactured to remain in the range of $40 to $45 million.
-
R&D Expenses: The company expects R&D expenses to remain in
the range of $92 to $97 million.
-
SG&A Expenses: The company expects SG&A expenses to remain
in the range of $53 to $58 million.
-
Operating Income: The company is adjusting its expectation for
operating income to a range of $129 to $138 million, revised from an
expectation of $135 to $146 million.
-
Other Income/Expense: The company is adjusting its expectation
for other income/expense to a net expense of $3 to $5 million, revised
from an expectation of net interest income/expense of $0.
-
Income Taxes: The company continues to expect income taxes of
$1 million.
-
GAAP Net Income: The company is adjusting its expectation for
GAAP net income to a range of $125 to $132 million or a basic earnings
per share in the range of $1.32 to $1.39, revised from an expectation
of $134 to $145 million or a basic earnings per share in the range of
$1.41 to $1.53. These per share calculations are based on the current
share count of 95 million shares outstanding.
-
Cash Flow from Operations: The company expects cash flow from
operations to remain in the range of $50 to $55 million.
-
SFAS 123R: The company expects share-based compensation expense
to remain in the range of $15 to $20 million.
Conference Call
Alkermes will host a conference call at 4:30 p.m. EST on Thursday,
February 5, 2009, to discuss these financial results and provide an
update on the company. The conference call may be accessed by dialing
1-866-219-5260 for domestic callers and 1-703-639-1117 for international
callers. The conference call ID number is 1328237. In addition, a replay
of the conference call will be available from 7:30 p.m. EST on Thursday,
February 5, 2009, through 5:00 p.m. EST on Thursday, February 12, 2009,
and may be accessed by visiting Alkermes' website or by dialing
1-888-266-2081 for domestic callers and 1-703-925-2533 for international
callers. The replay access code is 1328237. Alkermes is also providing a
podcast MP3 file available for download on the Alkermes website, which
will be available shortly following the conference call and will be
available until Thursday, February 12, 2009.
About Alkermes
Alkermes, Inc. is a fully integrated biotechnology company committed to
developing innovative medicines to improve patients' lives. Alkermes
developed, manufactures and commercializes VIVITROL® for
alcohol dependence and manufactures RISPERDAL® CONSTA® for
schizophrenia. Alkermes' robust pipeline includes extended-release
injectable, pulmonary and oral products for the treatment of prevalent,
chronic diseases, such as central nervous system disorders, addiction
and diabetes. Headquartered in Cambridge, Massachusetts, Alkermes has
research facilities in Massachusetts and a commercial manufacturing
facility in Ohio.
Certain statements set forth above may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, but not limited to: statements concerning
future business and operating results, cash flow and profitability; the
continued growth of RISPERDAL CONSTA sales; and the successful
continuation of development activities for proprietary and partnered
programs, including RISPERDAL CONSTA and exenatide once weekly. Although
the company believes that such statements are based on reasonable
assumptions within the bounds of its knowledge of its business and
operations, the forward-looking statements are neither promises nor
guarantees and the company's business is subject to significant risk and
uncertainties and there can be no assurance that its actual results will
not differ materially from its expectations. These risks and
uncertainties include, among others: the current credit and financial
climate; any changes to the reimbursement of pharmaceutical products by
public and private payors; actions or decisions by the company’s
partners with regard to development, regulatory strategy, timing and
funding of the company's partnered product candidates, which are out of
the company’s control; the outcome of clinical and preclinical work the
company is pursuing, both on its own and with partners; decisions by the
U.S. Food and Drug Administration (FDA) or foreign regulatory
authorities regarding the company's product candidates; potential
changes in cost, scope and duration of clinical trials; the occurrence
of unintended side effects, adverse reactions or incidents of misuse
related to the company’s products and product candidates that could
cause the FDA or other foreign regulatory authorities to require post
approval studies, new labeling, or removal of such products from the
market; and the company's ability to build its own commercial
infrastructure necessary to successfully market and sell its proprietary
products. For further information with respect to factors that could
cause the company's actual results to differ materially from
expectations, reference is made to the reports the company filed with
the Securities and Exchange Commission under the Securities Exchange Act
of 1934, as amended. The forward-looking statements made in this release
are made only as of the date hereof and the company disclaims any
intention or responsibility for updating predictions or financial
expectations contained in this release.
(tables follow)
VIVITROL® is a registered trademark of Cephalon, Inc.;
RISPERDAL® CONSTA® is a registered trademark of
Janssen-Cilag group of companies.
|
Alkermes, Inc. and Subsidiaries |
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Selected Financial Information (Unaudited) |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
Three Months |
|
|
Three Months |
| |
|
Ended |
|
|
Ended |
|
Condensed Consolidated Statements of Income |
|
December 31, |
|
|
December 31, |
|
(In thousands, except per share data) |
|
2008 |
|
|
2007 |
|
Revenues: |
|
|
|
|
|
|
Manufacturing revenues |
|
$20,533 |
|
|
|
$14,275 |
|
|
Royalty revenues |
|
7,970 |
|
|
|
7,384 |
|
|
Research and development revenue under collaborative arrangements |
|
3,736 |
|
|
|
23,985 |
|
|
Net collaborative profit |
|
123,422 |
|
|
|
5,127 |
|
|
Total Revenues |
|
155,661 |
|
|
|
50,771 |
|
|
Expenses: |
|
|
|
|
|
|
Cost of goods sold |
|
5,536 |
|
|
|
7,499 |
|
|
Research and development |
|
22,669 |
|
|
|
30,395 |
|
|
Selling, general and administrative |
|
14,568 |
|
|
|
15,249 |
|
|
Total Expenses |
|
42,773 |
|
|
|
53,143 |
|
|
Operating Income (Loss) |
|
112,888 |
|
|
|
(2,372) |
|
|
Other (Expense) Income: |
|
|
|
|
|
|
Gain on sale of investment in Reliant Pharmaceuticals, Inc. |
|
- |
|
|
|
174,631 |
|
|
Interest income |
|
2,574 |
|
|
|
4,292 |
|
|
Interest expense |
|
(2,829) |
|
|
|
(4,088) |
|
|
Other (expense) income, net |
|
(641) |
|
|
|
(393) |
|
|
Total Other (Expense) Income |
|
(896) |
|
|
|
174,442 |
|
|
Income before Income Taxes |
|
111,992 |
|
|
|
172,070 |
|
|
Income tax (benefit) provision |
|
(330) |
|
|
|
3,189 |
|
|
Net Income |
|
$112,322 |
|
|
|
$168,881 |
|
| |
|
|
|
|
|
|
Earnings per Common Share: |
|
|
|
|
|
|
Basic |
|
$1.18 |
|
|
|
$1.66 |
|
|
Diluted |
|
$1.17 |
|
|
|
$1.63 |
|
| |
|
|
|
|
|
|
Weighted Average Number of Common Shares Outstanding (GAAP and
Pro Forma): |
|
|
|
|
|
|
Basic |
|
95,316 |
|
|
|
101,703 |
|
|
Diluted |
|
95,818 |
|
|
|
103,914 |
|
| |
|
|
|
|
|
|
Pro Forma Reconciliation: |
|
|
|
|
|
|
Net Income - GAAP |
|
$112,322 |
|
|
|
$168,881 |
|
|
Share-based compensation expense |
|
3,281 |
|
|
|
5,182 |
|
|
Impact of the termination of the collaboration agreements with
Cephalon, Inc. for VIVITROL |
|
(120,582) |
|
|
|
- |
|
|
Gain on sale of investment in Reliant Pharmaceuticals, Inc. (net of
income taxes) |
|
- |
|
|
|
(171,294) |
|
|
Net increase in the fair value of warrants |
|
- |
|
|
|
2 |
|
|
Net (Loss) Income - Pro Forma |
|
($4,979) |
|
|
|
$2,771 |
|
| |
|
|
|
|
|
|
Pro Forma (Loss) Earnings per Common Share: |
|
|
|
|
|
|
Basic |
|
($0.05) |
|
|
|
$0.03 |
|
|
Diluted |
|
($0.05) |
|
|
|
$0.03 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Condensed Consolidated Balance Sheets |
|
December 31, |
|
|
March 31, |
|
(In thousands) |
|
2008 |
|
|
2008 |
|
Cash, cash equivalents and total investments |
|
$423,593 |
|
|
|
$460,361 |
|
|
Receivables |
|
26,713 |
|
|
|
47,249 |
|
|
Inventory |
|
21,113 |
|
|
|
18,884 |
|
|
Prepaid expenses and other current assets |
|
15,448 |
|
|
|
5,720 |
|
|
Property, plant and equipment, net |
|
107,299 |
|
|
|
112,539 |
|
|
Other assets |
|
3,029 |
|
|
|
11,558 |
|
|
Total Assets |
|
$597,195 |
|
|
|
$656,311 |
|
|
Unearned milestone revenue - current portion |
|
- |
|
|
|
$5,927 |
|
|
Non-recourse RISPERDAL CONSTA secured 7% notes - current portion |
|
23,750 |
|
|
|
- |
|
|
Other current liabilities |
|
42,015 |
|
|
|
36,093 |
|
|
Non-recourse RISPERDAL CONSTA secured 7% notes - long-term portion |
|
69,613 |
|
|
|
160,324 |
|
|
Unearned milestone revenue - long-term portion |
|
- |
|
|
|
111,730 |
|
|
Deferred revenue - long-term portion |
|
5,369 |
|
|
|
27,837 |
|
|
Other long-term liabilities |
|
7,272 |
|
|
|
9,086 |
|
|
Total shareholders' equity |
|
449,176 |
|
|
|
305,314 |
|
|
Total Liabilities and Shareholders' Equity |
|
$597,195 |
|
|
|
$656,311 |
|
This selected financial information should be read in conjunction with
the consolidated financial statements and notes thereto included in the
company's Annual Report on Form 10-K for the year ended March 31, 2008,
and the company's report on Form 10-Q for the three months ended
December 31, 2008, which the company intends to file in February 2009.
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VIVITROL Selected Financial
Information
|
|
Three Months
|
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Three Months
|
|
|
|
|
|
|
Ended
|
|
Ended
|
|
|
(Unaudited, in thousands)
|
|
December 31,
|
|
December 31,
|
|
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|
|
2008
|
|
2007
|
|
|
VIVITROL Income Statement (1)
|
|
|
|
|
|
|
|
|
Alkermes' expenses within the collaboration
|
|
$ 2,653
|
|
$ 3,815
|
|
|
|
|
Cephalon's net losses
|
|
1,257
|
|
3,105
|
|
|
|
|
Collaboration net losses
|
|
3,910
|
|
6,920
|
|
|
|
|
Alkermes' net losses outside the collaboration (month of December
2008)
|
|
2,316
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
VIVITROL net losses
|
|
$ 6,226
|
|
$ 6,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Collaborative Profit
|
|
|
|
|
|
|
|
|
Milestone revenue recognized with respect to the license (2)
|
|
$ 875
|
|
$ 1,312
|
|
|
|
|
Net flow of funds from Cephalon (3)
|
|
737
|
|
3,815
|
|
|
|
|
Remaining milestone revenue and deferred revenue recognized upon
termination of collaboration (4)
|
|
120,652
|
|
-
|
|
|
|
|
Milestone revenue recognized to offset Cephalon's prepaid share of
the net product losses (5)
|
|
1,158
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net collaborative profit
|
|
$ 123,422
|
|
$ 5,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Notes
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|
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(1)
|
|
The collaboration agreements with Cephalon, Inc. ("Cephalon") with
respect to VIVITROL terminated effective December 1, 2008. The
results provided above, reflect two months (October and November) of
collaboration activity and one month (December) during which
Alkermes was solely responsible for VIVITROL.
|
|
|
|
|
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(2)
|
|
Milestone revenue related to the license commenced upon approval of
VIVITROL, by the FDA, on April 13, 2006 and was being recognized on
a straight line basis over 10 years, at the rate of approximately
$1.3 million per quarter. The recognition of this milestone revenue
ceased on December 1, 2008.
|
|
|
|
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(3)
|
|
Alkermes was responsible for net losses up to $124.6 million and
reimbursed Cephalon for their net losses during this period. Once
the $124.6 million was reached in April 2007, Cephalon reimbursed
Alkermes for its VIVITROL expenses through December 31, 2007.
Between January 1, 2008 and December 1, 2008, the two companies
shared net losses on the product.
|
|
|
|
|
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(4)
|
|
Upon termination of the collaboration agreements, Alkermes
recognized the remaining unearned milestone revenue ($113.8
million) and deferred revenue ($6.9 million), received from
Cephalon during the collaboration. The deferred revenue was net of
$16.0 million that Alkermes paid to Cephalon upon termination, for
title to two partially completed VIVITROL manufacturing lines.
|
|
|
|
|
|
|
(5)
|
|
Upon termination of the collaboration agreements, Cephalon paid
Alkermes $11.0 million to cover Cephalon's share of the estimated
net losses over the ensuing 12 months. This revenue was deferred and
is being recognized using a proportional performance methodology
based on net product losses.
|
|
|
|
|
|
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|
Upon termination of the collaboration agreements, Alkermes reversed
$0.8 million of manufacturing revenue and $0.7 million of associated
cost of goods sold, related to VIVITROL inventory that had
previously been sold to Cephalon under the collaboration agreements,
and which Alkermes will now be selling in the end-market. These
transactions were reported through the Alkermes income statement and
do not impact the numbers provided above.
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Source: Alkermes, Inc.
Alkermes, Inc.
For Investors:
Rebecca Peterson, 617-583-6378
or
For
Media:
Jennifer Snyder, 617-583-6166
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