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CAMBRIDGE, Mass. (AP) - Biotech drug developer Alkermes Inc. said relocation charges and stock-based compensation costs pushed it to a loss in the fiscal second quarter.
Alkermes said it lost $8.7 million, or 9 cents per share, in the quarter ended Sept. 30. A year earlier, Alkermes posted a profit of $1.7 million, or 2 cents per share, a year ago. Revenue edged up 2 percent to $48.2 million from $47.3 million.
Analysts were expecting a loss of 9 cents per share and $45.9 million in revenue, according to Thomson Reuters.
Alkermes reported 6 cents per share in stock based compensation costs and 4 cents per share in relocation charges. Due to those charges costs, Alkermes' sales, general and administrative costs nearly doubled to $20.6 million from $11.7 million. Research and development costs also rose to $20.7 million from $19.7 million.
The company reported $4.6 million in revenue from sales of the alcohol dependency drug Vivitrol. A year ago, all $4.1 million in Vivitrol revenue went to Cephalon Inc. Manufacturing revenue slipped to $32.8 million from $33 million, but royalties increased slightly to $8.8 million. Research and development revenue from collaborations fell to $1.2 million from $5.3 million.
Almost all the manufacturing revenue comes from the schizophrenia drug Risperdal Consta, which Alkermes makes for a division of Johnson&Johnson. Total sales of Risperdal Consta grew 10 percent to $353 million, Alkermes said.
However the company cut its full-year expectations, saying it expects less manufacturing revenue for Risperdal Consta and lower manufacturing revenue and sales of Vivitrol in the second half of 2009 - the first half of its fiscal year.
Alkermes now says it will lose between $45 million and $52 million in fiscal 2010, up from $30 million to$40 million as previously forecast. Analysts expect a loss of $38.6 million, or 39 cents per share, on average.
The forecast includes $105 million to $111 million in Risperdal Consta manufacturing revenue, down from an earlier estimate of $115 million to $120 million. Alkermes expects no more than $1 million in Vivitrol manufacturing revenue, down from a view of $1 million to $2 million.
The company still expects $36 million to $38 million in Risperdal Consta royalty payments, but pared its Vivitrol royalty estimate to between $20 million and $25 million from $23 million to $28 million. Alkermes maintained its estimate of $2 million to $4 million in research and development revenue.
That suggests total revenue of $163 million to $182 million, which would miss analysts' average forecast of $185.6 million.
In after market trading, Alkermes stock lost 30 cents, or 3.7 percent, to $7.79, having closed earlier at $8.09.
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