Slide 1: Proposed Separation of Oncology Business & Third Quarter 2022 Financial Results
Proposed Separation of Oncology Business & Third Quarter 2022 Financial Results November 2, 2022 Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements set forth in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: Alkerm
Slide 3: Agenda
Agenda Introduction Sandy Coombs, SVP, Investor Relations & Corporate Affairs Proposed Separation of Oncology Business Richard Pops, Chief Executive Officer Q3 2022 Financial Results Iain Brown, Chief Financial Officer Q3 2022 Commercial Review Todd Nichols, Chief Commercial Officer Q&A
Slide 4: Alkermes Today: Pipeline and Portfolio
Phase 2/3 Advanced solid tumors Oncology Neuroscience Pipeline of novel development candidates designed to target significant unmet needs Alkermes Today Licensed to and commercialized by Biogen (royalty & manufacturing revenue) Phase 1 Narcolepsy ALKS 2680 HDAC Inhibitors Preclinical Neurology/neuro
Slide 5: Clear Value Propositions for Neuroscience and Oncology
Clear Value Propositions for Neuroscience and Oncology Neuroscience Commercial progress Strong uptake of LYBALVI® one year into launch Continued growth of VIVITROL® and ARISTADA® Pipeline advancements ALKS 2680: Orexin 2 receptor agonist, entering phase 1; Proof-of-Concept study data expected in 202
Slide 6: Exploring Separation of Oncology Business as Part of Strategic Alternatives Review
Exploring Separation of Oncology Business as Part of Ongoing Board-Level Review of Strategic Alternatives Drive a sharp strategic focus with distinct management teams with relevant therapeutic expertise Simplify capital allocation decision-making and increase flexibility Enable capital markets to be
Slide 7: Post-Separation Alkermes: Pure-Play, Commercial-Stage Neuroscience Company
Post-Separation Alkermes‡ Pure-Play, Commercial-Stage Neuroscience Company Development Pipeline Early-stage neuroscience pipeline: ALKS 2680, orexin 2 receptor agonist in phase 1 Portfolio of preclinical neuroscience assets Proprietary Products Topline primarily driven by growth of proprietary comme
Slide 8: Post-Separation Oncology Co.: Pure-play, Development-Stage Oncology Company
Post-Separation Oncology Co.‡ Pure-play, Development-Stage Oncology Company Investment thesis anchored by potential medical and economic value of nemvaleukin alfa: Potential first-in-class IL-2 variant immunotherapy Anti-tumor activity observed both as a single agent and with checkpoint inhibitors (
Slide 9: Potential Separation: Next Steps
Potential Separation‡: Next Steps Separation, if consummated, expected to be completed in H2 2023 Timing Financial Expectations Leadership Closing Conditions Expect to incur transactional and separation expenses prior to completion of any separation 2023 financial expectations and long-term profitab
Slide 10: Q3 Financial and Operational Performance
Q3 Financial and Operational Performance
Slide 11: Q3 2022 Financial Results Summary
In millions In millions In millions Q3 2022 Financial Results Summary * Reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the Appendix of this presentation.
Slide 12: Third Quarter 2022 Revenue Summary
Third Quarter 2022 Revenue Summary In millions, except % Q3’22 Q3’21 ∆ Q3’22 vs. Q3’21 Total Proprietary Net Sales $199.4 $157.7 26% VIVITROL® $96.5 $88.8 9% ARISTADA®* $75.7 $68.9 10% LYBALVI® $27.1 - NA Manufacturing & Royalty Revenue**† $52.9 $136.3 (61%) Research & Development Revenue $0.0 $0.1
Slide 13: Alkermes: 2022 Financial Expectations
Alkermes: 2022 Financial Expectations* (in millions, except per share amounts) Current Financial Expectations for Year Ending Dec. 31, 2022 (Provided 11/2/22) Previous Financial Expectations for Year Ending Dec. 31, 2022 (Provided 7/27/22) Revenues $1,070 – $1,120 $1,050 – $1,120 COGS $220 – $230 $2
Slide 14: VIVITROL Performance and Expectations
VIVITROL® Performance and Expectations Q3’22 year-over-year net sales increased 9% to $96.5M Gross-to-net deductions: 51.2% in Q3’22, compared to 52.3% in Q3’21 FY’22 net sales expected to range from $370M – $380M* Expect gross-to-net deductions of ~51% in FY’22 VIVITROL Quarterly Net Sales ($M) * T
Slide 15: ARISTADA Performance and Expectations
ARISTADA® Performance and Expectations Q3’22 year-over-year net sales increased 10% to $75.7M Gross-to-net deductions: 54.6% in Q3’22, compared to 54.8% in Q3’21 FY’22 net sales expected to range from $300M - $310M†* Expect gross-to-net deductions of ~54% in FY’22 ARISTADA Quarterly Net Sales ($M)*
Slide 16: ARISTADA Prescription Growth Trends
ARISTADA® Prescription Growth Trends Q3’22 year-over-year growth of 7% on TRx months of therapy (MOT) basis Market share: TRx MOT: 10% of atypical LAI market prescriptions in Q3’22 ARISTADA Quarterly TRx MOT Source: IQVIA NPA
Slide 17: LYBALVI Performance and Expectations
LYBALVI® Performance and Expectations LYBALVI Quarterly Net Sales ($M) † These expectations are provided by the Company on Nov. 2, 2022 and are effective only as of such date. The Company expressly disclaims any obligation to update or reaffirm these expectations. Q3’22 net sales of $27.1M reflect 3
Slide 18: LYBALVI Prescription Growth Trends
LYBALVI® Prescription Growth Trends *Source: IQVIA NPA Weekly Q3’22 total TRx: ~23,000 reflecting 35% sequential growth compared to Q2’22 ~6,000 prescribers had written a prescription for LYBALVI since launch reflecting 41% increase since Q2’22
Slide 19: Appendix
Appendix Confidential, Internal Use Only
Slide 20: Appendix: Financial Results GAAP to Non-GAAP Adjustments
Appendix: Financial Results GAAP to Non-GAAP Adjustments (In millions) Quarter Ended September 30, 2022 Quarter Ended September 30, 2021 Net Loss — GAAP $ (63,974) $ (28,988) Adjustments: Share-based compensation expense 26,051 25,600 Depreciation expense 10,431 9,775 Amortization expense 9,166 9,61
Slide 21: Appendix: 2022 Guidance GAAP to Non-GAAP Adjustments
Appendix: 2022 Guidance GAAP to Non-GAAP Adjustments (In millions, except per share data) Year Ended December 31, 2022 Shares (Loss) Earnings Per Share Projected Net Loss — GAAP $ (170.0) 164 $ (1.04) Adjustments: Share-based compensation expense 91.0 Depreciation expense 40.0 Amortization expense 3
Slide 22: www.alkermes.com
www.alkermes.com