Drug tech firm Alkermes bullish despite reporting full-year loss

Biopharma group Alkermes has reported fourth-quarter earnings and revenues that beat expectations. However, it fell to a full-year loss on generally accepted accounting principles (GAAP).

Total revenues for the quarter grew were 13 per cent up year on year at $175.2 with earnings per share of 11 US cents on a non-GAAP basis or $16.8 million.

For the year as a whole, Alkermes reported a $30.1 million loss after tax in the year, or 21 cents ON the basis of GAAP. That compares with 20913 profit of $20.6 million, or 15 cents a share.

Many companies argue that non-GAAP figures present a more accurate reflection of company operating performance. On a non-GAAP basis, profit came to $54.6 million, or 35 cents a share, on sales of $618.8 million, up from $596.3 million in 2013. The profit figure was down sharply on 2013, a factor the company attributed to its investment in pipeline drugs.

Chief executive Richard Pops hailed "a tremendous year of achievement" in 2014 by the Dublin-headquartered group, largely in progressing its pipeline drugs. " In the last two months, the momentum has continued as we reported positive data for three potential blockbuster opportunities" in the areas of schizophrenia, multiple sclerosis and major depressive disorders.

Mr Pops said the financial results for 2014 “were ahead of expectations, demonstrating our successful performance and the strength of our business model”.

Alkermes became an Irish company following its takeover of Elan Drug Technologies, the Athlone based division of the former Iseq heavyweight Elan, since acquired itself by Perrigo.

Separately, Alkermes announced that topline figures from a Phase I trial of a new pain drug had failed to meet targets.

The company said it would not pursue further development of ALKS 7106. Chief medical officer Elliot Ehrich said the company would continue to develop new therapies for treating pain which had "intrinsically low potential for overdose toxicity and abuse", stating that it was a "dedicated focus area for Alkermes, as we leverage our deep understanding of opioid chemistry and pharmacology to enable the modulation of key brain receptors".