WASHINGTON (dpa-AFX) - Biotechnology company Alkermes plc (ALKS), Thursday reported a wider-than-expected loss for the fourth quarter, hurt mostly on charges related to the acquisition of Elan Drug Technologies last September. Results were also impacted by an increase in research and interest expenses.
Revenues for the quarter meanwhile surged from last year and topped expectations, on expansion of its commercial product portfolio after the Elan Drug Technologies acquisition.
Moving forward, Alkermes provided its outlook for fiscal year 2013, expecting a loss, with midpoint of revenue guidance indicated to miss Street estimates. Following the news, Alkermes shares slid 6 percent in early noon trade on the Nasdaq.
Alkermes' results were hurt by a non-cash charge of about $46 million write-off related to the in-process research and development intangible assets acquired in the Elan Drug merger. Alkermes acquired the business from Elan Corp. (ELN) for $1 billion.
Alkermes reported fourth-quarter net loss of $63.4 million or $0.49 per share, compared to a net loss of $13 million or $0.14 per share last year.
On average, 11 analysts polled by Thomson Reuters expected a loss of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Excluding items, Alkermes reported a profit of $16.5 million or $0.12 per share for the quarter, compared to a loss of $6 million or $0.06 per share in the prior year.
Alkermes, which makes drugs that address central nervous system disorders, reported fourth-quarter revenues of $130.5 million, compared to $51 million last year. Analysts expected revenues of $125.88 million.
Alkermes expects fiscal year 2013 net loss of $20 million to $40 million, or $0.15 to $0.30 per share; and adjusted earnings of $85 million to $105 million, or $0.62 to $0.77 per share. Revenues are expected between $490 million and $530 million.
Analysts currently expect a loss of $0.29 per share on revenues of $522.94 million for 2013.
Alkermes CFO James Frates said, 'The merger with EDT has put Alkermes in a strong financial position with key commercial products early in their life cycle and a business that is generating cash.'
'The financial expectations for fiscal 2013 that we are outlining today are driven by growth from our key commercial products and our consistent financial discipline...'
ALKS is trading at $16.95, down $1.27 or 6.97%, on a volume of 1.2 million shares.
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