Alkermes Clocks Over 100% Jump In Q2 Sales and Profits On Reinstated Product Royalty From Long-Acting Invega
Portfolio Pulse from Vandana Singh
Alkermes plc reported Q2 adjusted EPS of $0.55, missing the consensus of $0.56. However, sales of $617.40 million beat the consensus estimate of $585.02 million, reflecting strong performance of proprietary products and reinstated Invega product royalties. The company increased its FY23 outlook by $425 million following a successful arbitration with Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson. Alkermes' shares are down 4.15%.
July 26, 2023 | 3:58 pm
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NEUTRAL IMPACT
Alkermes reported Q2 earnings below consensus but sales above estimates. The company raised its FY23 outlook following a successful arbitration with Janssen Pharmaceutica.
While Alkermes missed its Q2 earnings consensus, it beat sales estimates and raised its FY23 outlook. This mixed result could lead to uncertainty in the market, causing neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Johnson & Johnson's subsidiary, Janssen Pharmaceutica, lost an arbitration to Alkermes, leading to a significant increase in Alkermes' FY23 outlook.
The loss of arbitration by Janssen Pharmaceutica, a subsidiary of Johnson & Johnson, to Alkermes could negatively impact J&J's financials and reputation in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50