Alkermes Plc · NASDAQ:ALKS
Alkermes — Q4 2019 Earnings Presentation
19 slides from Alkermes's earnings presentation, Feb 13, 2020
Slide 1: Fourth Quarter and Year-End 2019 Financial Results & Business Update
Fourth Quarter and Year-End 2019 Financial Results & Business Update February 13, 2020 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: the co
Slide 3: Agenda
Q4 & FY 2019 Financial Results; 2020 Guidance Jim Frates, Chief Financial Officer Business Update Richard Pops, Chief Executive Officer Agenda
Slide 4: Financial Highlights
Financial Highlights Q4 2019 Completed acquisition of Rodin Therapeutics, Inc. (“Rodin”); accounted for as an asset acquisition; included upfront cash payment of $98.1M to Rodin’s former security holders, of which $86.6M recorded as R&D expense in Q4 2019 Received $150M milestone payment from Biogen
Slide 5: Fourth Quarter 2019 Revenue Summary
Fourth Quarter 2019 Revenue Summary In millions, except % Q4’19 Q4’18 ∆ Q4’19 vs. Q4’18 VIVITROL® $92.8 $83.8 11% ARISTADA® $56.8 $48.8 16% Manufacturing & Royalty Revenue $107.3* $167.4** (36%) R&D Revenue $11.1† $15.6 (29%) License Revenue $144.8+ 0.1 NA Total Revenue $412.7 $315.8 31% *Manufactur
Slide 6: 2019 Revenue Summary
2019 Revenue Summary In millions, except % FY 2019 FY 2018 ∆ 2019 vs. 2018 VIVITROL® $335.4 $302.6 11% ARISTADA® $189.1 $147.7 28% Manufacturing & Royalty Revenue $447.9* $526.7** (15%) R&D Revenue $52.8† $68.9 (23%) License Revenue $145.8+ $48.4 201% Total Revenue $1,170.9 $1,094.3 7.0% *Manufactur
Slide 7: Net Sales From Proprietary Commercial Medicines
Net Sales From Proprietary Commercial Medicines Proprietary Commercial Product Net Sales ($M)
Slide 8: VIVITROL Performance and Expectations
VIVITROL® Performance and Expectations Q4 year-over-year net sales growth of 11% to $92.8M, driven by underlying unit growth of 14% Net sales increased 9% sequentially, driven by unit growth Gross-to-net deductions: 48% in Q4’19, compared to 49% in Q3’19 and 46% in Q4’18 2020 full year net sales exp
Slide 9: ARISTADA Performance and Expectations
ARISTADA® Performance and Expectations Q4 year-over-year net sales growth of 16% to $56.8M, driven by underlying unit growth of 24% Sequential growth of 6% compared to Q3’19, driven by underlying unit growth of 11% Gross-to-net deductions: 51% in Q4’19, compared to 48% in Q3’19 and 44% in Q4’18 2020
Slide 10: ARISTADA: Stronger Prescription Growth Than Atypical LAI Market
ARISTADA®: Stronger Prescription Growth Than Atypical LAI Market Q4 sequential growth of 9% on TRx months of therapy (MOT) basis, compared to overall atypical long-acting injectable (LAI) market growth of 3% Q4 year-over-year growth of 40% on TRx MOT basis, compared to overall atypical LAI market gr
Slide 11: R&D and SG&A Expense Adjustments
R&D and SG&A Expense Adjustments R&D expense: Q4‘19 included $86.6 million related to the acquisition of Rodin FY 2019 FY 2018 R&D Expense $512.8M $425.4M Rodin acquisition charge ($86.6M) - Share-based compensation ($29.9M) ($32.9M) Non-cash charges ($22.2M) ($20.1M) R&D Expense, adjusted $374.1M $
Slide 12: 2020 Guidance: Impact of the Restructuring
2020 Guidance: Impact of the Restructuring Strategic restructuring implemented in Q4’19 included a commitment to reduce then-projected 2020 operating expenses by $150M, approximately $50M in R&D and $100M in SG&A R&D expense expectation subsequently adjusted by $20M of incremental R&D spend followin
Slide 13: Financial Expectations for Year Ending Dec. 31, 2020
(in millions, except per share amounts) Financial Expectations for Year Ending Dec. 31, 2020 Revenues $1,030 – 1,080 COGS $185 – 195 R&D Expense $405 – 430 SG&A Expense $535 – 560 Amortization of Intangible Assets ~$40 Net Interest Expense - Income Tax Expense $0 to $10 Other Income/Expense, Net - G
Slide 14: 2019 Operational Achievements
2019 Operational Achievements Announced positive topline results from ARISTADA® ALPINE phase 3 study Announced positive topline results from VUMERITY® EVOLVE-MS-2 phase 3 study Received FDA approval for VUMERITY and a $150M milestone payment from Biogen Implemented strategic restructuring to reduce
Slide 15: ALKS 3831: A Potential New Oral Treatment for Schizophrenia and Bipolar I Disorder
ALKS 3831: A Potential New Oral Treatment for Adults With Schizophrenia and Adults With Bipolar I Disorder Investigational antipsychotic designed to offer efficacy of olanzapine; addition of samidorphan intended to mitigate olanzapine-associated weight gain Single NDA for treatment of adults with sc
Slide 16: ALKS 4230 ARTISTRY-2 Subcutaneous Dosing Study
ALKS 4230 ARTISTRY-2 Subcutaneous Dosing Study Initial Escalation Cohorts Emerging pharmacokinetic (PK) and pharmacodynamic profile† PK profile consistent with predictions based on profile from intravenous (IV) dosing in ARTISTRY-1 Demonstrated biological activity, as measured by expansion of effect
Slide 17: HDAC Inhibitor Platform: Advancing Preclinical Research and IND-Enabling Activities
HDAC Inhibitor Platform: Advancing Preclinical Research and IND-Enabling Activities HDAC* CoREST inhibitors for synaptopathies Pursue IND-enabling activities for lead preclinical compounds Potential utility across highly-prevalent neurodegenerative diseases such as Alzheimer’s Disease as well as orp
Slide 18: 2020 Key Priorities
2020 Key Priorities Drive growth of VIVITROL® and ARISTADA® through commercial execution Prepare for potential launch of ALKS 3831 for the treatment of schizophrenia and the treatment of bipolar I disorder Advance the development of ALKS 4230 in oncology
Slide 19: www.alkermes.com
www.alkermes.com