Alkermes plc

Alkermes plc (NASDAQ: ALKS) is a global biopharmaceutical company that seeks to develop medicines in the field of neuroscience. The Company has a portfolio of commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical candidates in development for neurological disorders.

Key Business & Financial Updates

• Revenue Highlights:
  • LYBALVI: For the second quarter, LYBALVI generated revenues of USD 71.4 million. Compared to the same period in 2023, revenues increased by 52%, while total prescriptions grew by 44%, demonstrating strong market performance.
  • ARISTADA: ARISTADA recorded revenues of USD 86.0 million during the quarter. New brand prescriptions showed sequential growth of 6% compared to the first quarter of 2024, reflecting steady market penetration.
  • VIVITROL: VIVITROL’s revenues reached USD 111.9 million in the second quarter, reflecting a 10% increase from the corresponding period in 2023. This growth was primarily driven by its use for alcohol dependence.
• Manufacturing & Royalty Revenues: Royalty revenues from INVEGA SUSTENNA®, INVEGA TRINZA®, and INVEGA HAFYERA® totaled USD 78.7 million for the quarter. Additionally, VUMERITY® manufacturing and royalty revenues amounted to USD 35.2 million, highlighting robust performance across key products.
• Key Operating Expenses: Research and development (R&D) expenses for continuing operations were USD 59.6 million in Q2 2024, compared to USD 68.2 million in Q2 2023. Expenses related to discontinued operations amounted to USD 3.9 million for the same period. Selling, general, and administrative (SG&A) expenses for continuing operations were USD 168.1 million, a decrease from USD 195.8 million in the second quarter of 2023.
• Balance Sheet Overview: As of June 30, 2024, Alkermes reported cash, cash equivalents, and total investments of USD 962.5 million, reflecting an increase from USD 807.8 million recorded on March 31, 2024. The company's total outstanding debt as of June 30, 2024, stood at USD 289.5 million.
• Share Repurchase Program: In the second quarter of 2024, Alkermes repurchased approximately 3.5 million of its ordinary shares at a total purchase price of USD 84.7 million, under the share repurchase program authorized in February 2024. As of June 30, 2024, USD 315.3 million remained available for future repurchases.
• Recent Events: In April 2024, Alkermes announced positive topline results from its phase 1b proof-of-concept study of ALKS 2680 in narcolepsy type 2 and idiopathic hypersomnia. The company also initiated the Vibrance-1 phase 2 study for ALKS 2680 in patients with narcolepsy type 1. Additionally, in May 2024, Alkermes completed the sale of its Athlone, Ireland manufacturing facility to Novo Nordisk for USD 91 million. The company also presented new research related to its psychiatry products and ALKS 2680 at major scientific conferences in May and June 2024.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) for a 14-day period is currently at 58.75, upward trending. Presently, the stock price is near a resistance levels between USD 28.00 and USD 30.00. Should these resistance levels hold, a downward momentum may emerge, potentially leading to correction to next support levels. Furthermore, the stock's current position is above both the 50-Day Simple Moving Average (SMA) and the 200-Day SMA. These moving averages are likely to serve as short- to medium-term support levels.

As per the above-mentioned price action, momentum in the stock over the last month, current macroeconomic scenarios, recent business & financial updates, and technical indicators analysis, a ‘WATCH’ rating has been given to Alkermes plc (NASDAQ: ALKS) at the closing market price of USD 28.12 as of September 03, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 03, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.