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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2021

 

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number 001-35299

ALKERMES PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

 

Ireland

 

98-1007018

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

Connaught House

1 Burlington Road

Dublin 4Ireland, D04 C5Y6

(Address of principal executive offices)

 

+ 353-1-772-8000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Ordinary shares, $0.01 par value

 

ALKS

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):  Yes   No 

 

The number of the registrant’s ordinary shares, $0.01 par value, outstanding as of October 22, 2021 was 161,705,367 shares.

 

 

 

 

 

 


 

 

ALKERMES PLC AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021

 

 

 

 

 

Page No.

PART I - FINANCIAL INFORMATION

 

Item 1.

Condensed Consolidated Financial Statements (unaudited):

 

 

Condensed Consolidated Balance Sheets — September 30, 2021 and December 31, 2020

6

 

Condensed Consolidated Statements of Operations and Comprehensive Loss — For the Three and Nine Months Ended September 30, 2021 and 2020

7

 

Condensed Consolidated Statements of Cash Flows — For the Nine Months Ended September 30, 2021 and 2020

8

 

Condensed Consolidated Statements of Shareholders’ Equity — For the Three and Nine Months Ended September 30, 2021 and 2020

9

 

Notes to Condensed Consolidated Financial Statements

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

38

Item 4.

Controls and Procedures

38

 

 

PART II - OTHER INFORMATION

 

Item 1.

Legal Proceedings

39

Item 1A.

Risk Factors

39

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 5.

Other Information

39

Item 6.

Exhibits

40

Signatures

41

 

2


 

 

Cautionary Note Concerning Forward-Looking Statements

This document contains and incorporates by reference “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, these statements can be identified by the use of forward-looking terminology such as “may,” “will,” “could,” “should,” “would,” “expect,” “anticipate,” “continue,” “believe,” “plan,” “estimate,” “intend,” or other similar words. These statements discuss future expectations and contain projections of results of operations or of financial condition, or state trends and known uncertainties or other forward-looking information. Forward‑looking statements in this Quarterly Report on Form 10-Q (this “Form 10-Q”) include, without limitation, statements regarding:

 

our expectations regarding our financial performance, including revenues, expenses, liquidity, capital expenditures and income taxes;

 

our expectations regarding our products, including expectations related to product development; regulatory filings, approvals and timelines; therapeutic and commercial value, scope and potential; and the costs and expenses related to such activities and expectations;

 

our expectations regarding the initiation, timing and results of clinical trials of our products;

 

our expectations regarding the competitive, payer, legislative, regulatory and policy landscape, and changes therein, related to our products, including competition from generic forms of our products or competitive products and development programs, barriers to access or coverage of our products and potential changes in reimbursement of our products, and legislation, regulations, executive orders, guidance or other measures that may impact pricing and reimbursement of, and access to, our products;

 

our expectations regarding the financial impact of currency exchange rate fluctuations and valuations;

 

our expectations regarding future amortization of intangible assets;

 

our expectations regarding collaborations, licensing arrangements and other significant agreements with third parties relating to our products and our development programs;

 

our expectations regarding the impact of new legislation, rules and regulations and the adoption of new accounting pronouncements;

 

our expectations regarding near‑term changes in the nature of our market risk exposures or in management’s objectives and strategies with respect to managing such exposures;

 

our expectations regarding our ability to comply with restrictive covenants of our indebtedness and our ability to fund our debt service obligations;

 

our expectations regarding future capital requirements and expenditures for our operations and our ability to finance such capital requirements and expenditures;

 

our expectations regarding the timing, outcome and impact of administrative, regulatory, legal and other proceedings related to our products and intellectual property (“IP”), including our patents;

 

our expectations regarding the impact of the ongoing novel coronavirus (“COVID-19”) pandemic on our business and operations; and

 

other expectations discussed elsewhere in this Form 10-Q.

Actual results might differ materially from those expressed or implied by these forward-looking statements because these forward-looking statements are subject to risks, assumptions and uncertainties. These risks, assumptions and uncertainties include, among others:

 

our business, financial condition and results of operations have been, and may continue to be, adversely affected by the ongoing COVID-19 pandemic or other similar outbreaks of contagious diseases;

 

we receive substantial revenue from our key proprietary products, and our success depends on our ability to successfully manufacture and commercialize such products;

 

we rely heavily on our licensees in the commercialization and continued development of products from which we receive revenue and, if our licensees are not effective, our revenues could be materially adversely affected;

3


 

 

we face competition in the biopharmaceutical industry;

 

our revenues may decrease or grow at a slower than expected rate due to many factors;

 

revenues generated by sales of our products depend on the availability from third-party payers of reimbursement for our products and the extent of cost-sharing arrangements for patients (e.g., patient co-payment, co-insurance, deductible obligations) and cost-control measures imposed, and any reductions in payment rate or reimbursement or increases in our financial obligation to payers could result in decreased sales of our products and/or decreased revenues;

 

clinical trials for our product candidates are expensive, may take several years to complete, and their outcomes are uncertain;

 

preliminary, topline or interim data from our clinical trials that we may announce, publish or report from time to time may change as more patient data become available or based on subsequent audit and verification procedures, and may not be indicative of final data from such trials;

 

the U.S. Food and Drug Administration (the “FDA”) or other regulatory agencies may not agree with our regulatory approval strategies or components of our filings for our products, including our clinical trial designs, conduct and methodologies and the adequacy of the data and other information included in our submissions, and may not approve, or may delay approval of, our products;

 

the FDA or other regulatory agencies may impose limitations or post-approval requirements on approvals for our products;

 

we are subject to risks related to the manufacture of our products;

 

we rely on third parties to provide goods and services in connection with the manufacture and distribution of the products we manufacture;

 

our success largely depends upon our ability to attract and retain key personnel;

 

patent and other IP protection for our products is key to our business and our competitive position but is uncertain;

 

uncertainty over IP in the biopharmaceutical industry has been the source of litigation, which is inherently costly and unpredictable, could significantly delay or prevent approval or negatively impact commercialization of our products, and could adversely affect our business;

 

we or our licensees may face claims against IP rights covering our products and competition from generic drug manufacturers;

 

litigation or arbitration filed against us, including securities litigation, or regulatory actions (such as citizens petitions) filed against regulatory agencies in respect of our products, may result in financial losses, harm our reputation, divert management resources, negatively impact the approval of our products, or otherwise negatively impact our business;

 

if there are changes in, or we fail to comply with, the extensive legal and regulatory requirements affecting the healthcare industry, we could face costs, penalties and business losses;

 

we may not become profitable on a sustained basis;

 

our level of indebtedness could adversely affect our business and limit our ability to plan for or respond to changes in our business;

 

the business combination of Alkermes, Inc. and the drug technology business of Elan Corporation, plc may limit our ability to use our tax attributes to offset taxable income, if any, generated from such business combination;

 

the market price for our ordinary shares has been volatile and may continue to be volatile in the future, and could decline significantly;

 

our business could be negatively affected as a result of the actions of activist shareholders; and

 

security breaches and other disruptions could compromise our information and expose us to liability, which could cause our business and reputation to suffer.

4


 

For additional discussion regarding these risks, assumptions and uncertainties, and other material risks to our business, see “Part I, Item 1A—Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 11, 2021, as amended by Amendment No. 1 to Annual Report on Form 10-K/A, filed with the SEC on April 29, 2021 (as so amended, our “Annual Report”). In light of these risks, assumptions and uncertainties, the forward-looking events discussed in this Form 10-Q might not occur. You are cautioned not to place undue reliance on the forward-looking statements in this Form 10-Q, which speak only as of the date of this Form 10-Q. All subsequent written and oral forward-looking statements concerning the matters addressed in this Form 10-Q and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by applicable law or regulation, we do not undertake any obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This Form 10-Q may include data that we obtained from industry publications and third-party research, surveys and studies. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. This Form 10-Q may also include data based on our own internal estimates and research. Our internal estimates and research have not been verified by any independent source and, while we believe the industry publications and third-party research, surveys and studies are reliable, we have not independently verified such data. Such third-party data and our internal estimates and research are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in “Part I, Item 1A—Risk Factors” in our Annual Report. These and other factors could cause our results to differ materially from those expressed in this Form 10-Q.

Note Regarding Company and Product References

Alkermes plc is a fully-integrated, global biopharmaceutical company that applies its scientific expertise and proprietary technologies to research, develop and commercialize, both with partners and on its own, pharmaceutical products that are designed to address unmet medical needs of patients in major therapeutic areas. We have a portfolio of proprietary commercial products focused on addiction, schizophrenia and bipolar I disorder, and a pipeline of product candidates in development for neurodegenerative disorders and cancer. Use of terms such as “us,” “we,” “our,” “Alkermes” or the “Company” in this Form 10-Q is meant to refer to Alkermes plc and its consolidated subsidiaries. Except as otherwise suggested by the context, (a) references to “products” or “our products” in this Form 10-Q include our marketed products, marketed products using our proprietary technologies, our licensed products, our product candidates and product candidates using our proprietary technologies (b) references to the “biopharmaceutical industry” in this Form 10-Q are intended to include reference to the “biotechnology industry” and/or the “pharmaceutical industry” and (c) references to “licensees” in this Form 10-Q are used interchangeably with references to “partners.”

Note Regarding Trademarks

We are the owner of various United States (“U.S.”) federal trademark registrations (“®”) and other trademarks (“TM”), including ALKERMES®, ARISTADA®, ARISTADA INITIO®, LinkeRx®, LYBALVI®, NanoCrystal® and VIVITROL®.

The following are trademarks of the respective companies listed: AMPYRA® and FAMPYRA®—Acorda Therapeutics, Inc. (“Acorda”); ANJESO®—Baudax Bio, Inc.; INVEGA SUSTENNA®, INVEGA TRINZA®, TREVICTA®, XEPLION®, and RISPERDAL CONSTA®—Johnson & Johnson Corporation (or its affiliates); KEYTRUDA®—Merck Sharp & Dohme Corp.; and VUMERITY®—Biogen MA Inc. (together with its affiliates, “Biogen”). Other trademarks, trade names and service marks appearing in this Form 10-Q are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Form 10-Q are referred to without the ® and TM symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto.

5


 

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements:

ALKERMES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

 

September 30, 2021

 

December 31, 2020

 

 

(In thousands, except share and per share amounts)

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$310,444

 

$272,961

Receivables, net

 

289,160

 

275,143

Investments—short-term

 

249,856

 

362,066

Inventory

 

138,696

 

125,738

Contract assets

 

3,509

 

14,401

Prepaid expenses and other current assets

 

61,341

 

60,662

Total current assets

 

1,053,006

 

1,110,971

PROPERTY, PLANT AND EQUIPMENT, NET

 

340,594

 

350,003

INVESTMENTS—LONG-TERM

 

187,855

 

24,780

RIGHT-OF-USE ASSETS

 

118,764

 

131,718

INTANGIBLE ASSETS, NET

 

83,659

 

111,191

GOODWILL

 

92,873

 

92,873

DEFERRED TAX ASSETS

 

84,498

 

86,228

CONTINGENT CONSIDERATION

 

17,411

 

24,651

OTHER ASSETS

 

16,772

 

17,315

TOTAL ASSETS

 

$1,995,432

 

$1,949,730

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable and accrued expenses

 

$428,032

 

$412,171

Operating lease liabilities—short-term

 

15,548

 

15,732

Contract liabilities—short-term

 

6,404

 

7,512

Current portion of long-term debt

 

3,000

 

2,843

Total current liabilities

 

452,984

 

438,258

LONG-TERM DEBT

 

293,437

 

272,118

OPERATING LEASE LIABILITIES—LONG-TERM

 

107,860

 

119,464

CONTRACT LIABILITIES—LONG-TERM

 

12,864

 

16,397

OTHER LONG-TERM LIABILITIES

 

32,119

 

36,511

Total liabilities

 

899,264

 

882,748

COMMITMENTS AND CONTINGENT LIABILITIES (Note 14)

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

Preferred shares, par value, $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at September 30, 2021 and December 31, 2020, respectively

 

 

Ordinary shares, par value, $0.01 per share; 450,000,000 shares authorized; 165,439,188 and 162,269,220 shares issued; 161,686,223 and 159,161,141 shares outstanding at September 30, 2021 and December 31, 2020, respectively

 

1,654

 

1,620

Treasury shares, at cost (3,752,965 and 3,108,079 shares at September 30, 2021 and December 31, 2020, respectively)

 

(139,720)

 

(126,087)

Additional paid-in capital

 

2,778,596

 

2,685,647

Accumulated other comprehensive loss

 

(2,471)

 

(1,349)

Accumulated deficit

 

(1,541,891)

 

(1,492,849)

Total shareholders’ equity

 

1,096,168

 

1,066,982

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$1,995,432

 

$1,949,730

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


 

ALKERMES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(In thousands, except per share amounts)

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

157,737

 

 

$

142,658

 

 

$

448,508

 

 

$

402,799

 

Manufacturing and royalty revenues

 

 

136,294

 

 

 

120,351

 

 

 

398,435

 

 

 

353,107

 

License revenue

 

 

 

 

 

1,050

 

 

 

1,500

 

 

 

1,050

 

Research and development revenue

 

 

110

 

 

 

953

 

 

 

845

 

 

 

1,805

 

Total revenues

 

 

294,141

 

 

 

265,012

 

 

 

849,288

 

 

 

758,761

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)

 

 

49,561

 

 

 

43,129

 

 

 

143,705

 

 

 

135,394

 

Research and development

 

 

118,411

 

 

 

94,980

 

 

 

308,152

 

 

 

282,481

 

Selling, general and administrative

 

 

136,213

 

 

 

127,653

 

 

 

400,569

 

 

 

393,049

 

Amortization of acquired intangible assets

 

 

9,615

 

 

 

9,917

 

 

 

28,532

 

 

 

29,535

 

Total expenses

 

 

313,800

 

 

 

275,679

 

 

 

880,958

 

 

 

840,459

 

OPERATING LOSS

 

 

(19,659

)

 

 

(10,667

)

 

 

(31,670

)

 

 

(81,698

)

OTHER (EXPENSE) INCOME, NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

468

 

 

 

1,376

 

 

 

1,955

 

 

 

5,924

 

Interest expense

 

 

(2,437

)

 

 

(1,811

)

 

 

(8,814

)

 

 

(6,790

)

Change in the fair value of contingent consideration

 

 

(5,195

)

 

 

3,926

 

 

 

(677

)

 

 

16,626

 

Other income (expense), net

 

 

288

 

 

 

9,368

 

 

 

(327

)

 

 

11,047

 

Total other (expense) income, net

 

 

(6,876

)

 

 

12,859

 

 

 

(7,863

)

 

 

26,807

 

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(26,535

)

 

 

2,192

 

 

 

(39,533

)

 

 

(54,891

)

INCOME TAX PROVISION

 

 

2,453

 

 

 

2,326

 

 

 

9,509

 

 

 

13,328

 

NET LOSS

 

$

(28,988

)

 

$

(134

)

 

$

(49,042

)

 

$

(68,219

)

LOSS PER ORDINARY SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.18

)

 

$

(0.00

)

 

$

(0.31

)

 

$

(0.43

)

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

161,456

 

 

 

159,062

 

 

 

160,642

 

 

 

158,685

 

COMPREHENSIVE LOSS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(28,988

)

 

$

(134

)

 

$

(49,042

)

 

$

(68,219

)

Holding (loss) gain, net of a tax (benefit) provision of $(72), $(193), $(325) and $303, respectively

 

 

(249

)

 

 

(659

)

 

 

(1,122

)

 

 

1,056

 

COMPREHENSIVE LOSS

 

$

(29,237

)

 

$

(793

)

 

$

(50,164

)

 

$

(67,163

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7


 

ALKERMES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(49,042

)

 

$

(68,219

)

Adjustments to reconcile net loss to cash flows from operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

57,510

 

 

 

61,525

 

Share-based compensation expense

 

 

68,603

 

 

 

65,279

 

Deferred income taxes

 

 

2,015

 

 

 

9,939

 

Change in the fair value of contingent consideration

 

 

677

 

 

 

(16,626

)

Loss on debt extinguishment

 

 

171

 

 

 

 

Other non-cash charges

 

 

1,803

 

 

 

2,105

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

(13,991

)

 

 

(8,551

)

Contract assets

 

 

10,892

 

 

 

(6,009

)

Inventory

 

 

(13,375

)

 

 

(20,748

)

Prepaid expenses and other assets

 

 

(1,507

)

 

 

5,597

 

Right-of-use assets

 

 

12,891

 

 

 

13,251

 

Accounts payable and accrued expenses

 

 

15,546

 

 

 

(6,222

)

Contract liabilities

 

 

(4,642

)

 

 

(3,045

)

Operating lease liabilities

 

 

(12,504

)

 

 

(11,910

)

Other long-term liabilities

 

 

(4,353

)

 

 

(867

)

Cash flows provided by operating activities

 

 

70,694

 

 

 

15,499

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Additions of property, plant and equipment

 

 

(19,359

)

 

 

(36,780

)

Proceeds from the sale of equipment

 

 

277

 

 

 

61

 

Proceeds from contingent consideration

 

 

7,908

 

 

 

2,819

 

Return of Fountain Healthcare Partners II, L.P. investment

 

 

 

 

 

2,751

 

Payment made for licensed IP

 

 

(1,000

)

 

 

 

Purchases of investments

 

 

(294,370

)

 

 

(151,324

)

Sales and maturities of investments

 

 

241,082

 

 

 

206,089

 

Cash flows (used in) provided by investing activities

 

 

(65,462

)

 

 

23,616

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from the issuance of ordinary shares under share-based compensation arrangements

 

 

24,810

 

 

 

7,719

 

Employee taxes paid related to net share settlement of equity awards

 

 

(13,633

)

 

 

(7,607

)

Proceeds from the issuance of long-term debt

 

 

23,567

 

 

 

 

Payment made for debt extinguishment

 

 

(993

)

 

 

 

Principal payments of long-term debt

 

 

(1,500

)

 

 

(2,132

)

Cash flows provided by (used in) financing activities

 

 

32,251

 

 

 

(2,020

)

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

37,483

 

 

 

37,095

 

CASH AND CASH EQUIVALENTS—Beginning of period

 

 

272,961

 

 

 

203,771

 

CASH AND CASH EQUIVALENTS—End of period

 

$

310,444

 

 

$

240,866

 

SUPPLEMENTAL CASH FLOW DISCLOSURE:

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Purchased capital expenditures included in accounts payable and accrued expenses

 

$

2,698

 

 

$

2,169

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

8


 

 

ALKERMES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary Shares

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Treasury Stock

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Shares

 

 

Amount

 

 

Total

 

 

 

(In thousands, except share data)

 

BALANCE — December 31, 2020

 

 

162,269,220

 

 

$

1,620

 

 

$

2,685,647

 

 

$

(1,349

)

 

$

(1,492,849

)

 

 

(3,108,079

)

 

$

(126,087

)

 

$

1,066,982

 

Issuance of ordinary shares under employee stock plans

 

 

134,163

 

 

 

4

 

 

 

2,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,053

 

Receipt of Alkermes' shares for the exercise of stock options or to satisfy minimum tax withholding obligations related to share-based awards

 

 

1,432,522

 

 

 

14

 

 

 

(14

)

 

 

 

 

 

 

 

 

(529,817

)

 

 

(10,413

)

 

 

(10,413

)

Share-based compensation

 

 

 

 

 

 

 

 

15,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,552

 

Unrealized loss on marketable securities, net of tax (benefit) of $(174)

 

 

 

 

 

 

 

 

 

 

 

(601

)

 

 

 

 

 

 

 

 

 

 

 

(601

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,418

)

 

 

 

 

 

 

 

 

(22,418

)

BALANCE — March 31, 2021

 

 

163,835,905

 

 

$

1,638

 

 

$

2,703,234

 

 

$

(1,950

)

 

$

(1,515,267

)

 

 

(3,637,896

)

 

$

(136,500

)

 

$

1,051,155

 

Issuance of ordinary shares under employee stock plans

 

 

1,035,941

 

 

 

11

 

 

 

18,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,445

 

Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards

 

 

93,928

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

(31,752

)

 

 

(707

)

 

 

(707

)

Share-based compensation

 

 

 

 

 

 

 

 

26,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,917

 

Unrealized loss on marketable securities, net of tax (benefit) of $(79)