— Alkermes Emerges as Pure-Play,
— Alkermes Provides Updated Financial Expectations for 2023 —
"The separation of our oncology business was an important element of our strategy to transform Alkermes into a pure-play neuroscience company with the potential to generate strong profitability and cash flow. With a topline driven by the growth of our proprietary commercial products, proven drug development capabilities, and an important pipeline opportunity in our ALKS 2680 orexin program, we believe we are well positioned to drive value for Alkermes shareholders," said
Updated Financial Expectations for 2023
Alkermes is providing the following updated financial expectations for 2023. These improved expectations reflect the company's year-to-date financial results through
- Net income according to generally accepted accounting principles in the
U.S. (GAAP) is now expected to be in the range of$250 million to$280 million , revised from the prior expectation of$225 million to$265 million . GAAP earnings per share (diluted)+ are now expected to be in the range of$1.46 to$1.63 , revised from the prior expectation of$1.31 to$1.54 . - Non-GAAP net income is now expected to be in the range of
$270 million to$300 million , revised from the prior expectation of$230 million to$270 million . Non-GAAP earnings per share (diluted)+ are now expected to be in the range of$1.57 to$1.75 , revised from the prior expectation of$1.34 to$1.57 .
+2023 per share expectations are calculated based on a weighted average basic share count of approximately 166.5 million shares outstanding and a weighted average diluted share count of approximately 171.5 million shares outstanding.
At
Upon completion of the separation, each of Alkermes' shareholders received a distribution of one ordinary share of Mural Oncology for every 10 ordinary shares of Alkermes held as of the close of business on
The separation and distribution have been structured to qualify as a tax-free distribution (except for cash received in lieu of fractional shares) to Alkermes' shareholders and the company and its affiliates for
About
Non-GAAP Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with GAAP, including non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Non-GAAP net income adjusts for certain one-time and non-cash charges by excluding from GAAP results: share-based compensation expense; amortization; depreciation; non-cash net interest expense; change in the fair value of contingent consideration; certain other one-time or non-cash items; and the income tax effect of these reconciling items.
The company's management and board of directors utilize these non-GAAP financial measures to evaluate the company's performance. The company provides these non-GAAP financial measures of the company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, non-GAAP net income and non-GAAP diluted earnings per share are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, non-GAAP net income and non-GAAP diluted earnings per share should not be considered measures of the company's liquidity.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release.
Note Regarding Forward-Looking Statements
Certain statements set forth in this press release 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 company's separation of its oncology business, including the expected benefits and cost savings related to the separation and the anticipated tax-free nature of the separation; the company's expectations concerning its business and future financial and operating performance, business plans or prospects, including its expectations regarding profitability and its ability to drive shareholder value; and the therapeutic and commercial potential of the company's products and development candidates. The company cautions that forward-looking statements are inherently uncertain. The forward-looking statements are neither promises nor guarantees and they are necessarily subject to a high degree of uncertainty and risk. Actual performance and results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties. These risks and uncertainties include, among others: the company may not realize the anticipated benefits of the separation of its oncology business; the separation may not be deemed to be tax-free; the unfavorable outcome of arbitration or litigation, including so-called "Paragraph IV" litigation and other patent litigation which may lead to competition from generic drug manufacturers, or other disputes related to the company's products or products using the company's proprietary technologies; clinical development activities may not be completed on time or at all; the results of the company's development activities may not be positive, or predictive of future results from such activities, results of future development activities or real-world results; the
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2023 Guidance — GAAP to Non-GAAP Adjustments |
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An itemized reconciliation between projected earnings per share on a GAAP basis and projected earnings per share on a non-GAAP basis is as follows: |
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(In millions, except per share data) |
Amount |
Shares |
Earnings |
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Projected Net Income — GAAP |
$ 265.0 |
171.5 |
$ 1.55 |
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Adjustments: |
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Share-based compensation expense |
97.5 |
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Depreciation expense |
42.5 |
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Amortization expense |
35.0 |
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Separation expense |
32.0 |
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Restructuring |
6.0 |
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Income tax effect related to reconciling items |
3.5 |
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Non-cash net interest expense |
0.5 |
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Royalties and interest related to 2022* |
(197.0) |
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Projected Net Income — Non-GAAP |
$ 285.0 |
171.5 |
$ 1.66 |
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Projected GAAP and non-GAAP measures reflect mid-points within ranges of estimated guidance. |
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* Pursuant to final award related to arbitration proceedings with |
Alkermes Contacts:
For Investors: Sandy Coombs +1 781 609 6377
For Media: Katie Joyce +1 301 325 3803
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