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Alkermes Fiscal Third Quarter Loss Widens

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Alkermes PLC's fiscal third-quarter loss widened as operating expenses ballooned compared to the previous year's quarter, before the company had completed its acquisition of Elan Corp.'s drug technology business.

The Dublin, Ireland, company lost $14.8 million, or 11 cents per share, in the three months that ended Dec. 31. That compares to a loss of $11.4 million, or 12 cents per share, in the 2010 quarter.

Adjusted earnings, which exclude one-time items, were 22 cents per share.

Revenue nearly tripled to $125.6 million from about $44 million, helping to balance the expense increase.

Analysts surveyed by FactSet expected, on average, a loss of 19 cents per share on $114.5 million in revenue.

Alkermes completed its acquisition of the drug technology business in September after the companies agreed in May to a deal that Alkermes valued at $1 billion. Elan received $500 million in cash and 31.9 million shares of Alkermes, giving it a 25-percent stake in the company.

Alkermes also reincorporated in Ireland, where Elan is based.

The company's operating expenses more than doubled in the quarter to $130.6 million due in part to an increase in the cost of goods sold and an increase in research and development expenses.

Alkermes said it expects adjusted earnings of 54 cents to 63 cents per share in fiscal 2012 on revenue ranging from $370 million to $400 million. Analysts expect, on average, earnings of 69 cents per share on $369.9 million in revenue.

 

 

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