2023-06-06 07:25:55 ET
Alkermes plc ( NASDAQ: ALKS ) increased its full-year outlook ahead of Street forecasts on Tuesday to account for a final financial award received from Johnson & Johnson ( NYSE: JNJ ) unit Janssen in connection with an arbitration related to a licensing dispute over drug technology.
Accordingly, the Ireland-based biotech has raised the 2023 financial forecast by nearly $425M.
The updated guidance reflects the payment of back royalties of ~$194M (including interest) related to 2022 U.S. net sales and the expected 2023 royalty revenues related to global net sales of long-acting NVEGA and CABENUVA products.
The revised forecasts for total revenue and non-GAAP earnings per share for 2023 stand at $1,550M – $1,680M and $1.34 – $1.57 compared to $1.32B and $0.42 in the consensus, respectively.
Per the terms, the company is also entitled to future royalty revenues from Janssen related to sales of long-acting NVEGA and CABENUVA in 2024 and beyond.
However, Alkermes ( ALKS ) reiterated its non-GAAP net income and EBITDA margins for 2024 at 25% and 20%, respectively. It also reaffirmed the non-GAAP net income margin and EBITDA margin for 2025 at 30% and 25%, respectively, excluding the royalty revenues due from Janssen.
More on licensing dispute between JNJ and Alkermes
- Alkermes gets tribunal award in J&J license deal arbitration
- Alkermes slips as Johnson & Johnson moves to end licensing pact
For further details see:
Alkermes lifts outlook after arbitration payment from Johnson & Johnson