Alkermes plc Reports Financial Results for the Periods Ended Dec. 31, 2013 and Provides Financial Expectations for 2014

  Alkermes plc Reports Financial Results for the Periods Ended Dec. 31, 2013
  and Provides Financial Expectations for 2014

                  — Achieved Record Revenues of $596 Million
            and Non-GAAP Diluted EPS of $1.19 for Calendar 2013 —

   — Expects Pivotal Data for Aripiprazole Lauroxil in First Half of 2014 —

Business Wire

DUBLIN -- February 27, 2014

Alkermes plc (NASDAQ: ALKS) today reported financial results for the three-
and nine-month periods ended Dec. 31, 2013, reflecting the company’s
transition to a Dec. 31 fiscal year-end. The company also provided financial
expectations for 2014.

“Our financial results were ahead of expectations and driven by the robust
performance of our key commercial portfolio, particularly our atypical
antipsychotic franchise and VIVITROL^®. This commercial business serves as a
flywheel to fund investment in our late-stage development pipeline, while
continuing to generate substantial cash flows,” commented James Frates, Chief
Financial Officer of Alkermes. “Our expectations for 2014 reflect our
investment in key initiatives to drive future growth – advancing our
late-stage pipeline and preparations for the launch of aripiprazole lauroxil.”

“We made tremendous progress in building our business in 2013, demonstrating
the financial strength of our commercial portfolio and expanding and advancing
our late-stage pipeline of new medicines. Entering 2014, we control what we
believe is one of the most exciting CNS pipelines in the pharmaceutical
industry and expect to reach major milestones during the year,” said Richard
Pops, Chief Executive Officer of Alkermes. “We expect results from the
aripiprazole lauroxil phase 3 study in the first half of the year and, if
positive, the NDA submission thereafter. In addition, we expect to initiate
the phase 3 program for ALKS 5461, advance the phase 2 program for ALKS 3831
and introduce two additional product candidates into the clinic this year.”

Quarter Ended Dec. 31, 2013 Highlights

  *Total revenues for the quarter grew 14% to $154.5 million from $135.9
    million for the same period in the prior year.
  *Non-GAAP net income was $39.9 million, or a non-GAAP diluted earnings per
    share (EPS) of $0.27 for the quarter. This compared to non-GAAP net income
    of $46.5 million, or a non-GAAP diluted EPS of $0.34, for the same period
    in the prior year and reflected increased investment in the company’s
    rapidly advancing late-stage pipeline and commercial infrastructure.
  *GAAP net income was $18.1 million, or a basic GAAP EPS of $0.13 and a
    diluted GAAP EPS of $0.12, for the quarter. This compared to GAAP net
    income of $16.3 million, or a basic and diluted GAAP EPS of $0.12, for the
    same period in the prior year.
  *Free cash flow was $30.0 million for the quarter, compared to $43.8
    million for the same period in the prior year.
  *At Dec. 31, 2013, Alkermes recorded cash and total investments of $450.0
    million, reflecting an increase of $54.8 million from $395.2 million at
    Sept. 30, 2013.
  *The company also received gross proceeds of $250.0 million related to the
    sale of 5,917,160 of Alkermes’ ordinary shares to Invesco Perpetual Funds
    through a registered direct offering, which closed on Jan. 16, ^ 2014.

Quarter Ended Dec. 31, 2013 Financial Results

Revenues

  *Manufacturing and royalty revenues from the company’s long-acting atypical
    antipsychotic franchise, RISPERDAL^® CONSTA^® and INVEGA^®
    SUSTENNA^®/XEPLION^®, were $71.2 million, compared to $52.5 million for
    the same period in the prior year, representing an increase of
    approximately 36%.
  *Manufacturing and royalty revenues from AMPYRA^®/FAMPYRA^®1 were $18.6
    million, compared to $18.4 million for the same period in the prior year.
  *Net sales of VIVITROL were $20.6 million, compared to $15.9 million for
    the same period in the prior year, representing an increase of
    approximately 30%.
  *Royalty revenue from BYDUREON^® was $7.7 million, compared to $5.3 million
    for the same period in the prior year.
  *Additionally, results for the quarter ended Dec. 31, 2013 included RITALIN
    LA^®/FOCALIN XR^® revenues of $10.6 million, VERELAN^® revenues of $4.0
    million and TRICOR^® 145 revenues of $3.0 million. This compared to
    RITALIN LA/FOCALIN XR revenues of $9.8 million, VERELAN revenues of $5.4
    million and TRICOR 145 revenues of $6.8 million for the same period in the
    prior year.

Costs and Expenses

  *Operating expenses for the quarter ended Dec. 31, 2013 were $148.6
    million, compared to $110.6 million for the same period in the prior year,
    reflecting increased investment in the company’s rapidly advancing
    development pipeline and prelaunch activities for aripiprazole lauroxil.
  *Net tax benefit for the quarter ended Dec. 31, 2013 was $15.2 million,
    reflecting the release of the valuation allowance against the majority of
    the deferred tax assets in the U.S. This compared to a net tax expense of
    $4.4 million for the same period in the prior year.

Nine-Month Period Ended Dec. 31, 2013 Highlights

  *Total revenues were $432.9 million for the nine-month period ended Dec.
    31, 2013. This compared to total revenues of $412.1 million for the same
    nine-month period in the prior year, which included $20.0 million of
    intellectual property license revenue unrelated to key development
    programs.
  *Non-GAAP net income was $114.5 million, or a non-GAAP diluted EPS of
    $0.79, for the nine-month period ended Dec. 31, 2013. This compared to
    non-GAAP net income of $123.2 million, or a non-GAAP diluted EPS of $0.90,
    for the same nine-month period in the prior year.
  *GAAP net income was $17.6 million, or a basic GAAP EPS of $0.13 and a
    diluted GAAP EPS of $0.12, for the nine-month period ended Dec. 31, 2013.
    This compared to GAAP net income of $22.0 million, or a basic GAAP EPS of
    $0.17 and a diluted GAAP EPS of $0.16, for the same nine-month period in
    the prior year.
  *The company generated free cash flow of $95.4 million for the nine-month
    period ended Dec. 31, 2013, compared to $109.3 million for the same
    nine-month period in the prior year.

Calendar-Year 2013 Highlights

  *Total revenues were $596.3 million in calendar 2013, compared to total
    revenues of $542.6 million for calendar 2012. These results included $30.0
    million and $20.0 million of intellectual property license revenue
    unrelated to key development programs in 2013 and 2012, respectively.
    Please see the tables at the end of this press release for a detailed
    breakdown of the revenues from our key commercial products.
  *Non-GAAP net income was $170.7 million, or a non-GAAP diluted EPS of
    $1.19, for calendar 2013. This compared to non-GAAP net income of $139.7
    million, or a non-GAAP diluted EPS of $1.03, for calendar 2012.
  *GAAP net income was $20.6 million, or a basic GAAP EPS of $0.15 and a
    diluted GAAP EPS of $0.14, for calendar 2013. This compared to a GAAP net
    loss of $41.4 million, or a basic and diluted GAAP loss per share of
    $0.32, for calendar 2012.
  *Free cash flow was $143.4 million for calendar 2013, compared to $117.6
    million for calendar 2012.

Financial Expectations for Calendar-Year 2014

Alkermes has changed its fiscal year-end from March 31 to Dec. 31 and will be
reporting on a calendar-year basis starting in 2014. A workbook with
historical pro forma results by calendar-year and nine-month periods ended
Dec. 31 is available in the Investors section of the company’s website at
www.alkermes.com. The following outlines Alkermes’ financial expectations for
calendar-year 2014. The following statements are forward-looking, and actual
results may differ materially. Please see “Note Regarding Forward-Looking
Statements” at the end of this press release for risks that could cause
results to differ materially from these forward-looking statements.

  *Revenues: Alkermes expects total revenues to range from $580 million to
    $610 million. Included in this total revenue expectation, Alkermes expects
    VIVITROL net sales to range from $90 million to $100 million.
  *Cost of Goods Manufactured: The company expects cost of goods manufactured
    to range from $165 million to $175 million.
  *Research and Development (R&D) Expenses: The company expects  R&D expenses
    to range from $225 million to $245 million.
  *Selling, General and Administrative (SG&A) Expenses: The company expects
    SG&A expenses to range from $190 million to $200 million.
  *Amortization of Intangible Assets: The company expects amortization of
    intangibles to be approximately $60 million.
  *Other Income (Expense), Net: The company expects other income, net to
    range from $10 million to $15 million, related to the sale of two
    buildings in Athlone.
  *Net Interest Expense: The company expects net interest expense to range
    from $10 million to $15 million.
  *Net Income Tax Expense: The company expects net income tax expense to
    range from $10 million to $15 million.
  *GAAP Net Loss: The company expects a GAAP net loss in the range of $70
    million to $90 million, or a basic and diluted loss per share of $0.48 to
    $0.61, based on a weighted average basic and diluted share count of
    approximately 147 million shares outstanding.
  *Non-GAAP Net Income: The company expects non-GAAP net income to range from
    $65 million to $85 million, and non-GAAP diluted EPS to range from $0.41
    to $0.54, based on a weighted average diluted share count of approximately
    157 million shares outstanding.
  *Capital Expenditures: The company expects capital expenditures to be
    approximately $35 million.
  *Free Cash Flow: The company expects free cash flow to range from $30
    million to $50 million.

Conference Call

Alkermes will host a conference call at 8:00 a.m. EST (1:00 p.m. GMT) on
Thursday, Feb. 27, 2014, to discuss these financial results and provide an
update on the company. The conference call may be accessed by dialing +1 888
424 8151 for U.S. callers and +1 847 585 4422 for international callers. The
conference call ID number is 6037988. In addition, a replay of the conference
call will be available from 10:30 a.m. EST (3:30 p.m. GMT) on Thursday, Feb.
27, 2014, through 5:00 p.m. EST (10:00 p.m. GMT) on Thursday, March 6, 2014,
and may be accessed by visiting Alkermes’ website or by dialing +1 888 843
7419 for U.S. callers and +1 630 652 3042 for international callers. The
replay access code is 6037988.

About Alkermes plc

Alkermes plc is a fully integrated, global biopharmaceutical company that
applies its scientific expertise and proprietary technologies to develop
innovative medicines that improve patient outcomes. The company has a
diversified portfolio of more than 20 commercial drug products and a
substantial clinical pipeline of product candidates that address central
nervous system (CNS) disorders such as addiction, schizophrenia and
depression. Headquartered in Dublin, Ireland, Alkermes plc has an R&D center
in Waltham, Massachusetts; a research and manufacturing facility in Athlone,
Ireland; and manufacturing facilities in Gainesville, Georgia and Wilmington,
Ohio. For more information, please visit Alkermes’ website at
www.alkermes.com.

Non-GAAP Financial Measures

This press release includes information about certain financial measures that
are not prepared in accordance with generally accepted accounting principles
in the U.S. (GAAP), including non-GAAP net income, non-GAAP diluted earnings
per share and free cash flow. 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.

Management defines its non-GAAP financial measures as follows:

• Non-GAAP net income adjusts for one-time and non-cash charges by excluding
from GAAP results: share-based compensation expense; amortization;
depreciation; non-cash net interest expense; non-cash tax expense; deferred
revenue; and certain other one-time or non-cash items.

• Free cash flow represents non-GAAP net income less capital expenditures.

Management believes that these non-GAAP financial measures, when viewed with
its results under GAAP and the accompanying reconciliations, better indicate
underlying trends in ongoing operations and cash flows. However, non-GAAP net
income, non-GAAP diluted earnings per share and free cash flow are not
measures of financial performance under GAAP and, accordingly, should not be
considered as alternatives to GAAP measures as indicators of operating
performance.

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 above may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to: statements concerning future financial and
operating performance, business plans or prospects; the likelihood of
continued revenue growth from the company’s commercial products; the
therapeutic and commercial value of the company’s products; and expectations
concerning the timing and results of clinical development activities. These
statements are neither promises nor guarantees and are subject to a variety of
risks and uncertainties, many of which are beyond the company’s control, which
could cause actual results to differ materially from those contemplated in
these forward-looking statements.

These risks and uncertainties include, among others: whether clinical
development activities will be completed on time or at all and whether the
results of such activities will be predictive of real-world results or of
results in subsequent clinical trials; whether the company, and its partners,
are able to continue to successfully commercialize its products; whether there
will be a reduction in payment rate or reimbursement for the company’s
products or an increase in the company’s financial obligations to governmental
payers; the possibility of adverse decisions by the U.S. Food and Drug
Administration or regulatory authorities outside the U.S. regarding the
company’s products; the possibility that the company’s products may prove
difficult to manufacture, be precluded from commercialization by the
proprietary rights of third parties, or have unintended side effects, adverse
reactions or incidents of misuse; and those risks and uncertainties described
under the heading “Risk Factors” in the company’s Annual or Transition Report
on Form 10-K, and in any other subsequent filings made by the company with the
Securities and Exchange Commission (“SEC”) and which are available on the
SEC’s website at www.sec.gov. Existing and prospective investors are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date they are made. The information contained in this press
release is provided by the company as of the date hereof and, except as
required by law, the company disclaims any intention or responsibility for
updating any forward-looking information contained in this press release.

VIVITROL^® is a registered trademark of Alkermes, Inc.; RISPERDAL^® CONSTA^®,
INVEGA^® SUSTENNA^® and XEPLION^® are registered trademarks of Johnson &
Johnson Corporation; AMPYRA^® and FAMPYRA^® are registered trademarks of
Acorda Therapeutics, Inc.; BYDUREON^® is a registered trademark of Amylin
Pharmaceuticals, LLC; TRICOR^® is a registered trademark of Fournier Industrie
et Sante Corporation; RITALIN LA^® and FOCALIN XR^® are registered trademarks
of Novartis AG Corporation; and VERELAN^® is a registered trademark of
Alkermes Pharma Ireland Limited.

^1AMPYRA^® (dalfampridine) Extended Release Tablets, 10 mg is developed and
marketed in the U.S. by Acorda Therapeutics, Inc. and outside the U.S. by
Biogen Idec, under a licensing agreement with Acorda Therapeutics, as
FAMPYRA^® (prolonged-release fampridine tablets).

                               (tables follow)


Alkermes plc and Subsidiaries
Selected Financial Information (Unaudited)
                                                          
                                                                  
                                               Three Months       Three Months
                                               Ended              Ended
Condensed Consolidated Statements of           December 31,       December 31,
Operations - GAAP
(In thousands, except per share data)      2013            2012
Revenues:
Manufacturing and royalty revenues             $ 132,680          $ 118,274
Product sales, net                             20,609             15,917
Research and development revenues          1,189          1,718      
Total Revenues                             154,478        135,909    
Expenses:
Cost of goods manufactured and sold            42,892             38,914
Research and development                       48,716             31,319
Selling, general and administrative            44,171             29,867
Amortization of acquired intangible        12,856         10,549     
assets
Total Expenses                             148,635        110,649    
Operating Income                           5,843          25,260     
Other Expense, net:
Interest income                                255                155
Interest expense                               (3,434     )       (4,703     )
Other income (expense), net                210            (49        )
Total Other Expense, net                   (2,969     )    (4,597     )
Income Before Income Taxes                 2,874          20,663     
Income Tax (Benefit) Provision             (15,203    )    4,405      
Net Income — GAAP                          $ 18,077       $ 16,258   
                                                                  
Earnings Per Share:
GAAP earnings per share — basic                $ 0.13            $ 0.12     
GAAP earnings per share — diluted              $ 0.12            $ 0.12     
Non-GAAP earnings per share — basic            $ 0.29            $ 0.35     
Non-GAAP earnings per share — diluted          $ 0.27            $ 0.34     
                                                                  
Weighted Average Number of Ordinary
Shares Outstanding:
Basic — GAAP and Non-GAAP                      137,158           132,097    
Diluted — GAAP and Non-GAAP                    146,304           137,497    
                                                                  
An itemized reconciliation between net
income on a GAAP basis and non-GAAP
net income is as follows:
Net Income — GAAP                              $ 18,077           $ 16,258
Adjustments:
Amortization expense                           12,856             10,549
Share-based compensation expense               10,391             8,226
Depreciation expense                           10,532             8,052
Non-cash net interest expense                  243                496
Non-cash taxes                                 (15,616    )       3,373
Deferred revenue                               3,381             (412       )
Non-GAAP Net Income                            $ 39,864           $ 46,542
Capital expenditures                           (9,856     )       (2,752     )
Free Cash Flow                                 $ 30,008          $ 43,790   
                                                                             

                                                          
                                               Nine Months        Nine Months
                                               Ended              Ended
Condensed Consolidated Statements of           December 31,       December 31,
Operations - GAAP
(In thousands, except per share data)      2013            2012
Revenues:
Manufacturing and royalty revenues             $ 371,039          $ 363,981
Product sales, net                             57,215             43,481
Research and development revenues          4,657          4,664      
Total Revenues                             432,911        412,126    
Expenses:
Cost of goods manufactured and sold            134,306            122,475
Research and development                       128,125            104,213
Selling, general and administrative            116,558            91,079
Amortization of acquired intangible        38,428         31,530     
assets
Total Expenses                             417,417        349,297    
Operating Income                           15,494         62,829     
Other Expense, net:
Interest income                                711                670
Interest expense                               (10,379    )       (37,521    )
Other (expense) income, net                (429       )    1,597      
Total Other Expense, net                   (10,097    )    (35,254    )
Income Before Income Taxes                 5,397          27,575     
Income Tax (Benefit) Provision             (12,252    )    5,591      
Net Income — GAAP                          $ 17,649       $ 21,984   
                                                                  
Earnings Per Share:
GAAP earnings per share — basic                $ 0.13            $ 0.17     
GAAP earnings per share — diluted              $ 0.12            $ 0.16     
Non-GAAP earnings per share — basic            $ 0.84            $ 0.94     
Non-GAAP earnings per share — diluted          $ 0.79            $ 0.90     
                                                                  
Weighted Average Number of Ordinary
Shares Outstanding:
Basic — GAAP and Non-GAAP                      135,960           131,202    
Diluted — GAAP and Non-GAAP                    144,961           136,216    
                                                                  
An itemized reconciliation between net
income on a GAAP basis and non-GAAP
net income is as follows:
Net Income — GAAP                              $ 17,649           $ 21,984
Adjustments:
Amortization expense                           38,428             31,530
Share-based compensation expense               33,409             26,835
Depreciation expense                           32,361             23,900
Non-cash net interest expense                  778                4,116
Non-cash taxes                                 (12,190    )       2,382
Deferred revenue                               4,049              1,352
Loss on debt refinancing and repricing         -                  12,129
Change in method of revenue
recognition for VIVITROL product               -                 (1,013     )
sales, net
Non-GAAP Net Income                            $ 114,484          $ 123,215
Capital expenditures                           (19,054    )       (13,958    )
Free Cash Flow                                 $ 95,430          $ 109,257  
                                                                             

                                                         
                                            Twelve Months        Twelve Months
                                            Ended                Ended
Condensed Consolidated
Statements of Operations -                  December 31,         December 31,
GAAP
(In thousands, except per               2013              2012
share data)
Revenues:
Manufacturing and royalty                   $ 517,958            $ 474,666
revenues
Product sales, net                          71,841               54,495
Research and development                6,534            13,438     
revenues
Total Revenues                          596,333          542,599    
Expenses:
Cost of goods manufactured                  182,297              173,552
and sold
Research and development                    163,925              149,403
Selling, general and                        151,237              125,511
administrative
Amortization of acquired                    48,750               43,172
intangible assets
Restructuring                               12,300               -
Impairment of long-lived                3,346            45,800     
assets
Total Expenses                          561,855          537,438    
Operating Income                        34,478           5,161      
Other Expense, net:
Interest income                             882                  951
Interest expense                            (21,852     )        (47,613    )
Other (expense) income, net             (245        )     1,311      
Total Other Expense, net                (21,215     )     (45,351    )
Income (Loss) Before Income             13,263           (40,190    )
Taxes
Income Tax (Benefit)                    (7,385      )     1,183      
Provision
Net Income (Loss) — GAAP                $ 20,648         $ (41,373  )
                                                                 
Earnings (Loss) Per Share:
GAAP earnings (loss) per                    $ 0.15              $ (0.32    )
share — basic
GAAP earnings (loss) per                    $ 0.14              $ (0.32    )
share — diluted
Non-GAAP earnings per share                 $ 1.26              $ 1.07     
— basic
Non-GAAP earnings per share                 $ 1.19              $ 1.03     
— diluted
                                                                 
Weighted Average Number of
Ordinary Shares
Outstanding:
Basic — GAAP                                135,297             130,900    
Diluted — GAAP                              144,012             130,900    
Basic — Non-GAAP                            135,297             130,900    
Diluted — Non-GAAP                          144,012             135,967    
                                                                 
An itemized reconciliation between net income (loss) on a
GAAP basis and non-GAAP net income is as follows:
Net Income (Loss) — GAAP                    $ 20,648             $ (41,373  )
Adjustments:
Amortization expense                        48,750               43,172
Share-based compensation                    41,290               33,918
expense
Depreciation expense                        40,360               32,891
Non-cash net interest                       1,078                6,032
expense
Non-cash taxes                              (7,747      )        (2,024     )
Deferred revenue                            3,171                6,195
Loss on debt refinancing                    7,541                12,129
and repricing
Restructuring                               12,300               -
Impairment of long-lived                    3,346                45,800
assets
Merger-related costs                        -                    2,355
Severance costs                             -                    1,624
Change in method of revenue
recognition for VIVITROL                    -                   (1,013     )
product sales, net
Non-GAAP Net Income                         $ 170,737            $ 139,706
Capital expenditures                        (27,313     )        (22,087    )
Free Cash Flow                              $ 143,424           $ 117,619  
                                                                            

                                                           
Condensed Consolidated Balance Sheets           December 31,       March 31,
(In thousands)                              2013            2013
Cash, cash equivalents and total                $ 449,995          $ 304,179
investments
Receivables                                     134,154            124,620
Inventory                                       46,218             43,483
Prepaid expenses and other current              27,535             19,133
assets
Property, plant and equipment, net              274,490            288,435
Intangible assets, net and goodwill             630,305            668,733
Other assets                                14,891          21,708
Total Assets                                $ 1,577,588     $ 1,470,291
Long-term debt — current portion                $ 6,750            $ 6,750
Other current liabilities                       94,147             79,180
Long-term debt                                  357,543            362,258
Deferred revenue — long-term                    12,213             8,866
Other long-term liabilities                     41,749             60,863
Total shareholders' equity                  1,065,186       952,374
Total Liabilities and Shareholders'         $ 1,577,588     $ 1,470,291
Equity
                                                                   
Ordinary shares outstanding (in                 137,793            130,177
thousands)
                                                                   

This selected financial information should be read in conjunction with the
consolidated financial statements and notes thereto included in Alkermes plc's
Transition Report on Form 10-K for the nine months ended December 31, 2013,
which the company intends to file in February 2014.


Revenues for Calendar-Year 2013
                                                                  
                                                                                   
                       Three          Three         Three           Three          Year
                       Months         Months        Months          Months
                       Ended          Ended         Ended           Ended          Ended
                       March          June          September       December       December
                       31,            30,           30,             31,            31,
(In thousands,
except per         2013        2013       2013         2013        2013
share data)
Revenues:
RISPERDAL
CONSTA/INVEGA          $ 45,561       $             $ 62,632        $ 71,189       $235,625
SUSTENNA                              56,243
Franchise
AMPYRA/FAMPYRA         24,656         19,894        12,625          18,568         75,743
BYDUREON               4,789          5,353         7,006           7,681          24,829
VIVITROL           14,626      17,379     19,227       20,609      71,841
Key Commercial
Product                89,632         98,869        101,490         118,047        408,038
Revenues
                                                                                   
Total Legacy
Product                41,913         38,298        36,308          35,242         151,761
Revenues
Intellectual
Property               30,000         -             -               -              30,000
License
Revenues
Research and
Development        1,877       1,464      2,004        1,189       6,534
Revenues
Total Revenues     $163,422    $          $ 139,802    $154,478    $596,333
                                      138,631
                                                                                   


Selected Quarterly Financial Data
Twelve Months Ended December 31, 2013
                                                                     
                  Three Months Ended                                 Year
                                                                     Ended
                  March 31,   June 30,    September     December     December
                                          30,           31,          31,
                  2013        2013        2013          2013         2013
                  (In thousands, except per share data)
Revenues:
Manufacturing
and royalty     $ 146,919   $ 119,788   $ 118,571     $ 132,680    $ 517,958
revenues
Product sales,    14,626      17,379      19,227        20,609       71,841
net
Research and
development       1,877      1,464      2,004        1,189       6,534   
revenues
Total Revenues    163,422    138,631    139,802      154,478     596,333 
Expenses:
Cost of goods
manufactured      47,991      45,991      45,423        42,892       182,297
and sold
Research and      35,800      33,462      45,947        48,716       163,925
development
Selling,
general and       34,679      32,933      39,454        44,171       151,237
administrative
Amortization of
acquired          10,322      12,716      12,856        12,856       48,750
intangible
assets
Restructuring     12,300      -           -             -            12,300
Impairment of
long-lived        3,346      -          -            -           3,346   
assets
Total Expenses    144,438    125,102    143,680      148,635     561,855 
Operating         18,984      13,529      (3,878   )    5,843        34,478
Income
Other Expense,    (11,118 )   (3,477  )   (3,651   )    (2,969   )   (21,215 )
net
Income (Loss)
Before Income     7,866      10,052     (7,529   )    2,874       13,263  
Taxes
Provision
(Benefit) for     4,867      2,718      233          (15,203  )   (7,385  )
Income Taxes
Net Income      $ 2,999    $ 7,334    $ (7,762   )  $ 18,077    $ 20,648  
(Loss)
                                                                     
Basic Earnings
(Loss) Per      $ 0.02     $ 0.05     $ (0.06    )  $ 0.13      $ 0.15    
Share
Diluted
Earnings (Loss) $ 0.02     $ 0.05     $ (0.06    )  $ 0.12      $ 0.14    
Per Share
                                                                     
Weighted
Average Number
of Ordinary
Shares
Outstanding
Basic             133,272    134,602    136,106      137,158     135,297 
Diluted           139,677    143,369    136,106      146,304     144,012 
                                                                             


Guidance — GAAP to Non-GAAP Adjustments
                                                    
An itemized reconciliation between projected loss per share on a GAAP basis
and projected earnings per share on a non-GAAP basis is as follows:
                                                              
                                                              (Loss)/Earnings
(In millions,
except per share           Amount         Shares      Per Share
data)
Projected Net Loss             $      )         147           $ (0.54     )
— GAAP                         (80.0
Adjustments:
Non-cash net                   1.0
interest expense
Non-cash taxes                 10.0
Depreciation                   40.0
expense
Amortization                   60.0
expense
Share-based
compensation                   58.0
expense
Gain on sale of                (12.0  )
buildings
Deferred revenue               (2.0   )                       
Projected Non-GAAP             $ 75.0           157           $ 0.48      
Net Income
                                                              
Capital                        (35.0  )
expenditures
Projected Free                 $ 40.0 
Cash Flow
Projected GAAP and non-GAAP measures reflect mid-points within ranges of
estimated guidance.


Contact:

Alkermes
For Investors:
Rebecca Peterson, +1 781 609 6378
or
For Media:
Jennifer Snyder, +1 781 609 6166
 
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