Why Is Alkermes Stock Down 30% So Far This Year?
Alkermes (NASDAQ:ALKS) is a biotech company based out of Ireland that manufactures novel (patented) drugs in central nervous system (CNS) therapy for depression and schizophrenia. The company has been making reporting losses for several years now on account of heavy R&D investments, as it tries to develop its drug pipeline. In February 2019 the company had a major setback when one of the key drugs in its pipeline, ALKS 5461, failed in the FDA’s review due to the lack of efficiency data. In the wake of the setback, Alkermes decided to reduce 160 jobs to conserve resources. Despite the ongoing restructuring, Alkermes recently announced its decision to acquire the CNS biotech firm Rodin Therapeutics for $950 Mil – a move aimed at adding to its pipeline which now has only one candidate. All these factors have weighed on Alkermes’ stock since the beginning of the year – dragging its price down.
We step back from these recent swings to review Alkermes performance over the last few years, as a context for what might come next. Our Interactive dashboard – Why is Alkermes stock down by 30% year to date?, reviews the near term reasons and the big picture.
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The context for the last few years:
A closer look at Alkermes Total Revenues over the last few years and the outlook
Total Revenues for Alkermes increased from $903 Mil in 2017 to $1.09 Bil in 2018; an increase of 21.1%.
This compares with Total Revenues growth of:
- 1.5% in 2015 compared to 2014
- 18.7% in 2016 compared to 2015
- 21.1% in 2017 compared to 2016
We expect Total Revenues to grow 21.1% in 2019.
A closer look at Alkermes Total Expenses over the last few years and the outlook
Total Expense for Alkermes significantly increased from $1.05 Bil in 2017 to $1.22 Bil in 2018; an increase of 17%.
This compares with Total Expense growth of:
- 35% in 2015 compared to 2014
- 13% in 2016 compared to 2015
- 9% in 2017 compared to 2016
We expect Total Expenses to decline 11.7% in 2019.
How does Alkermes Revenue Growth compare with rivals?
For more information on how Alkermes’ revenue growth compares with Alexion Pharmaceuticals, Incyte and Perrigo, view our interactive dashboard analysis.
How has Alkermes Net Income and EPS trended?
For more details about Alkermes’ Net Income and EPS, view our interactive dashboard analysis
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