Alkermes plc (NASDAQ: ALKS) today reported financial results for its second quarter of fiscal 2013, which ended Sept. 30, 2012, and the company provided improved financial expectations for its fiscal year 2013, which will be the first full fiscal year of the combined company, Alkermes plc (Alkermes), following the completion of the merger of Alkermes, Inc. with Elan Drug Technologies (EDT) on Sept. 16, 2011.
“We reported a very strong quarter in what is shaping up to be a very strong year. The financial power of our commercial product portfolio is becoming even more apparent in our improved guidance and in the recent upgrade of our credit ratings,” commented Richard Pops, Chief Executive Officer of Alkermes. “We are building an exciting biopharmaceutical company characterized by a diversified portfolio of products generating growing cash flows and a pipeline of valuable late-stage candidates.”
Second Quarter Fiscal 2013 Highlights
- Total revenues for the second quarter of fiscal 2013 increased more than 72% to $124.0 million, compared to the same period in fiscal 2012, which was attributable to the expansion of the company’s commercial product portfolio as a result of the merger and growth from the company’s key commercial products. Total revenues of $72.0 million for the same period in fiscal 2012 included results for Alkermes, Inc. and 14 days of operations of the former EDT business.
- Based on accounting principles generally accepted in the U.S. (GAAP), Alkermes reported a net loss of $16.7 million, or a basic and diluted loss per share of $0.13, for the second quarter of fiscal 2013. This compared to a GAAP net loss of $22.3 million, or a basic and diluted loss per share of $0.22, for the same period in fiscal 2012.
- Included in the GAAP net loss for the second quarter of fiscal 2013 was a one-time charge of $12.1 million related to the refinancing of the company’s debt in September 2012. The company successfully refinanced its previously outstanding senior secured term loans and reduced the company’s overall debt outstanding. The new term loans have a lower blended interest rate of approximately 4.4% compared to the prior blended interest rate of approximately 7.6%, and the refinancing is expected to result in savings of approximately $18 million in cash interest annually.
- The company reported non-GAAP 1 net income of $23.7 million, or non-GAAP diluted earnings per share (EPS) of $0.17, for the second quarter of fiscal 2013. This compared to non-GAAP net income of $7.1 million, or a non-GAAP diluted EPS of $0.07, for the same period in fiscal 2012.
“Our second fiscal quarter results clearly demonstrate the financial strength and growth potential that we envisioned when we created Alkermes plc. Our key commercial product portfolio generated strong revenues this quarter, and we are positioned for record financial results this fiscal year,” commented James Frates, Chief Financial Officer of Alkermes. “In September, we updated our expectations for improved non-GAAP net income and free cash flow for fiscal 2013, reflecting the impact of the successful refinancing of the term loans used to fund the merger. Today, we are further improving our financial expectations for fiscal 2013 based on strong operational performance in the first six months, and we now expect Alkermes to generate between $120 million and $140 million in non-GAAP net income this fiscal year.”