NEW YORK (AP) – Alkermes PLC said it took a larger loss in its fiscal fourth quarter after it acquired a drug technology business and took a one-time charge related to research and development.
Alkermes took a $45.8 million charge after buying Elan Corp. PLC’s drug technology unit. In the three months ended March 31, Alkermes said it lost $63.4 million, or 49 cents per share, compared to a loss of $13.1 million, or 14 cents per share, a year earlier. If the charge is excluded Alkermes said it lost 14 cents per share in the latest quarter.
Its revenue rose to $130.5 million from $51.1 million.
Analysts were forecasting a loss of 15 cents per share and $126.7 million in revenue, according to FactSet.
Alkermes, which relocated to Ireland after the Elan deal, makes most of its money by helping develop drugs that are licensed to bigger companies and through contract manufacturing. It makes and gets royalty payments on the antipsychotic drugs Risperdal Consta and Invega Sustenna, which are sold by Johnson & Johnson, and on Acorda Therapeutics Inc.’s the multiple sclerosis treatment Ampyra.
After buying Elan Drug Technologies for $960 million in cash and stock, Elan started getting revenue from the cholesterol drug Tricor, attention deficit hyperactivity disorder treatment Ritalin LA, blood pressure and chest pain drug Verelan. In total its manufacturing and royalty revenue grew to $110.7 million from $42.5 million, and research and development revenue grew to $8.8 million from $143,000.
The company also sells the addiction treatment Vivitrol. Sales edged up to $11 million from $8.5 million in the fourth quarter.
In fiscal 2012 Alkermes lost $113.7 million, or 99 cents per share, after losing $45.5 million, or 48 cents per share, in fiscal 2011. Annual revenue more than doubled to $390 million from $186.6 million.
In fiscal 2013, the company said it expects to loss $20 million to $40 million, or 15 to 30 cents per share, on revenue of $490 million to $530 million.
Analysts were projecting a loss of 25 cents per share and revenue of $523.8 million on average.
Date: May 17, 2012
Source: Associated Press