Alkermes pharma reported the implementation of a restructuring plan following a review of the company's operations, cost structure and growth opportunities.
"As the profile of Alkermes changes, our executional priorities are clear: maximize the value of our commercial products and development candidates, streamline our cost structure and position the company for sustained future profitability.
"The restructuring is designed to further focus our R and D efforts on specific high-potential programs within CNS and oncology, improve financial efficiencies in our SG and A organization and drive growth," commented Richard Pops, Chief Executive Officer of Alkermes.
"VIVITROL and ARISTADA provide a strong and growing foundation for our commercial business and the anticipated commercial launch of VUMERITY will provide a profitable new source of royalty revenues.
"We also continue to advance our pipeline programs, with the planned submission of the ALKS 3831 New Drug Application for both schizophrenia and bipolar I disorder this quarter, and the planned presentation of new data from ALKS 4230, our phase 1/2 immuno-oncology asset, at an upcoming medical meeting."
In October 2019, Alkermes completed a review of the company's operations, cost structure and growth opportunities and implemented a restructuring plan.
The restructuring included the elimination of approximately 160 current positions across the organization, a decrease in the company's expected near-term hiring plans and implementation of cost-saving measures related to external spend.
These efforts are expected to result in cost savings of approximately $150 million.
The company expects to record a charge of approximately $15 million in the fourth quarter of 2019 as a result of the restructuring, consisting of one-time termination benefits for employee severance, benefits and related costs.
Total revenues for the quarter were $255.2 million, compared to $248.7 million for the same period in the prior year, primarily driven by approximately 20% growth in net sales of our proprietary products, partially offset by a decrease in AMPYRAi revenues resulting from generic entry in 2018.
Net loss according to generally accepted accounting principles in the U.S. (GAAP) was $52.9 million for the quarter, or a basic and diluted GAAP net loss per share of $0.34.
This compared to GAAP net loss of $34.4 million, or a basic and diluted GAAP net loss per share of $0.22, for the same period in the prior year.
Non-GAAP net loss was $7.0 million for the quarter, or a non-GAAP basic and diluted net loss per share of $0.04.
This compared to non-GAAP net income of $11.6 million, or a non-GAAP basic and diluted net earnings per share of $0.07, for the same period in the prior year. ■