Alkermes Takes 2Q Loss, Cuts Full-year Estimates

CAMBRIDGE, Mass. (AP) — Biotech drug developer Alkermes Inc. said relocation charges and stock-based compensation costs pushed it to a loss in the fiscal second quarter.

Alkermes said it lost $8.7 million, or 9 cents per share, in the quarter ended Sept. 30. A year earlier, Alkermes posted a profit of $1.7 million, or 2 cents per share, a year ago. Revenue edged up 2 percent to $48.2 million from $47.3 million.

Analysts were expecting a loss of 9 cents per share and $45.9 million in revenue, according to Thomson Reuters.

Alkermes reported 6 cents per share in stock based compensation costs and 4 cents per share in relocation charges. Due to those charges costs, Alkermes' sales, general and administrative costs nearly doubled to $20.6 million from $11.7 million. Research and development costs also rose to $20.7 million from $19.7 million.

The company reported $4.6 million in revenue from sales of the alcohol dependency drug Vivitrol. A year ago, all $4.1 million in Vivitrol revenue went to Cephalon Inc. Manufacturing revenue slipped to $32.8 million from $33 million, but royalties increased slightly to $8.8 million. Research and development revenue from collaborations fell to $1.2 million from $5.3 million.