ALKS - Earnings call transcript Q2 2022

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Operator

Greetings, and welcome to the Alkermes Second Quarter 2022 Earnings Call. My name is Melissa, and I will be your operator for today's call. [Operator Instructions]. Please note that this conference is being recorded. I will now turn the call over to Sandra Coombs, Senior Vice President, Investor Relations and Corporate Affairs. begin. may you Sandy,

Sandra Coombs

today morning. Chief discuss to business our ended and With the Good Iain our conference our Officer. Brown, update Alkermes call quarter CFO, me XXXX. XX, to financial Nichols, June Richard And you. Pops, the CEO; our welcome Todd Plc's for are Commercial Thank results and

reconciliations to press to in of our of economics alkermes.com section financial we I business. release, financial we'll We Before related Investors discuss begin, GAAP are conjunction on-going encourage financial believe the everyone the of tables, that measures the useful and find GAAP the results non-GAAP results to our the with go today. understanding to in non-GAAP

implied a the information future from call I'll or remarks, prepared provided results see call from results forward-looking Q&A. actual annual filed release most in Our differ the developments. the this SEC call this for and no two discussions Slide presentation issued our revise during our report to conference the that in could update presentation, And new turn differ expressed forward-looking Actual information this statements. these on could undertake our Please will recent statements. over or accompanying After materially our cause the obligation result those quarterly results Iain. of to as the We statements. or or to or for Factors of accompanying forward-looking we'll and press important Risk open call the morning materially with include

Iain Brown

XX.X% second our commercial are structure. disciplined second of improvements additional to the our on delivered today. overview year. line for you quarter the the generated products Gross million to and $XXX million. $XXX.X the our sales joining XX% $XXX net the quarter, adjustments decreased product to VIVITROL, commercial I'll performance our the approximately Medicaid year-over-year. bottom to from strong United with our adjustments cost reflecting of driven the In increase and of inventory revenues in call we’re narrowing net booked by I'll But now portfolio, the expect in shipping continued a proprietary patterns. LYBALVI provide $XXX net consistent products $XXX typical We you acting Thank million million second Today, ARISTADA QX, sales to a from strength a these results full expectations through everyone million. our by Sandy. range $X ARISTADA adjustments this revised to outside X% our launch to second results with year in we're our net the million assumptions the from levels approximately year $XXX $XXX during million. driven of Hello for X% moment. range We growth expectations to of previously expected well the our The in Today $XX.X management generated quarter year-over-year. seasonal $XXX with the with of thank an flow net gross and Starting narrowing range reflected year the range for total approximately continued of respect favourability full of and for inventory XX.X% long detail to a decreased channel which by XX%. and INVEGA start to performance, of of full sales highlights. of quarter quarter financial of to to and million Gross XX% top second royalties million States. line based be quarter the from on reserves. for perform previous our pleased in We for a expectation million the raise million, first, The for updated These expectation financial during proprietary million of by our to year, increased $XXX And were $XX.X VIVITROL sales are by range million net family product net year-over-year. approximately we sales were sales in related net a to to our $X

We the continue XX% adjustments to for of year. expect gross approximately and net full

resume driven we in these to of levels increased QX, consistent expect primarily to restrictive In patterns, increased growth ahead adjustments Looking typical quarter net patient with were expected program. less a the million of quarter initial fourth third commercial the more continuation the LYBALVI with the seasonal second net quarter. demand by demand XX% moderate to sales and that $XX.X products to coverage by growth million, two $X.X in robust the reflecting with in with associated quarter, XX% cost our approximately inventory line reduced payer growth. assistance co-pay in growth. The sequentially primarily

to to of gross our XXXX XXXX in the year, first made gross than year of of this better XX%. sales from to continue on million $XX of and to Based year be range been expectation payer trends and $XX final for these regarding $XX million in expectations payer adjustments year net for to decisions coverage million. our for half half approximately While range full through a second Overall, to will nets have we're updating our $XX full the a anticipated. LYBALVI to increasing expectations the coverage we're into the million year the net

decrease to prior the million royalties the by license from sales royalty of second manufacturing agreement related business, long year. million, in J&J Moving INVEGA the royalty our acting $XX.X the The and and our of on disclosed partial quarter, termination in primarily previously to revenues driven were manufacturing in to the was products the compared $XXX.X U.S.

initiated actions, with to disagree arbitration to in we matter. proceedings continue We related this April, J&J and

increased terminated We year-over-year, the these to acting not in INVEGA from lastly, VUMERITY has agreement through long markets. of approximately the quarter products continue to XX% as the sales outside million U.S. royalty $XX.X in And revenues J&J recognize quarter. the revenues from second the of

Turning same increase prior expenses allocation period the were our business $XXX.X $XXX.X of capital. Total during the This and efficient the reflects a continued million modest now to expenses. in year the launch second for on focus the in quarter, in to operating million leverage operating compared year.

cost the sold For quarter, to $X volumes of increased of products. manufactured approximately primarily second higher goods driven by million million year-over-year key $XX.X

driven expenses in prior offer prioritize year. were second the highest oncology by LYBALVI that to we $XX.X continue the the and $XX.X the expenses Reflecting investment. the We to earlier period the study quarter million, focused investments as million, for our underway. opportunities million for as investments compared on the in advance return advance primarily compared investments R&D potential and R&D $XXX.X required we same of the on paediatric launch development Nemvaleukin programs, prior to and neuroscience gets SG&A in may for LYBALVI. $XXX.X for stage million year, as were

top focus $XX.X Our our non-GAAP and with the net line income a of combined a for on results net million expense loss $XX.X operating disciplined of continued in management million GAAP resulted quarter.

balance the a quarter of to half million I'll approximately updated royalty the with close our of sheet, $XXX ended ex-US with products. approximately and for in year. a positive debt strong respect financial long investments, of million. cash $XXX strong resulting $XXX position, outstanding to around to launch, in the financial to sales Turning in our revenues assumptions Notably in LYBALVI million, expectations shift XXXX, the reflects cash the total which total net of second acting operational now and first INVEGA from position performance in we

press the in outlined are earlier morning. release expectations full this Our we issued

of range And provide that the of For order on to continue that months’ of markets. Janssen our INVEGA in the to least the updated products to launch. XXXX. billion billion, the $XX in at long revenues will we to ex-U.S. the $X.XX acting net respect now expectations for October the would of need top assumption expect line, agreement three Reflecting receive the we a total through terminate at midpoint these $X.XX royalty due higher sales license in to million LYBALVI revenues increase improved notice

purposes, approach we is financial planning work for continue process. the as most believe through We that to arbitration this appropriate the

We Biogen recent we driven batches manufacturing address partially disclosed these its to constraints suppliers be VUMERITY lower commercial revenues anticipated with of fewer earnings supply as by call. on Biogen's to one expect potential offset increases and the work primarily by

as Based on approximately million Even $XXX structure. and savings line stage range our anticipated at programs, the and cost million to $XX a top million. has expenses continue to to of $XXX by increased, our manage actively we reducing timing for the narrowing investments certain R&D to our early of our expectation midpoint are we related

line. discipline for cost our line The unchanged. SG&A have and driven in bottom improvements and expectations of remain goods strength top our of continued sold expenses management expense our Our

of performance. with execute management cost a income revenue loss $XX $XX at current on-going despite Even a in million. us, and net by expectation the for growth range to drive hand driving of our capital markets, profitability. and related environment long structure $XX detail value, I'll volatile improved has GAAP million constrained a that, to capital pandemic on we inflationary by for the remain our to against our and base, over back, non-GAAP pressures, our million for commercial and to continue macroeconomic positioned more expectation and and Our improved midpoint at efficient provide Todd term on shareholder of well priorities to current new we with priorities. the focus million be as net and environment disruptions, virtue step a $XX to midpoint, And allocation has call Taking well resourced of strategic growing the the

Todd Nichols

our bipolar XX,XXX, and to the approximately grew growth. year-over-year growth commercial Iain. our the total were million breadth. revenue and important company's quarter-over-quarter, behind commercial In driven $XXX.X This the differentiated well need and all due Total part prescriptions during engine leave good in million. execution. validate to to of of This large the our product value the the and markets. schizophrenia Thanks, product LYBALVI's profile reflecting in demand approximately second $XX.X And increase and proposition unit were LYBALVI's top performed robust the significant is unmet sales to performance this ARISTADA was prescriber portfolio XX% quarter by Net from underscore I'll XX% line start proprietary portfolio one launch morning, quarter. continue uptake everyone. medicine the quarter, in VIVITROL representing strong with – strong approximately performance. second

the access as key position written feedback within intended the end continues branded LYBALVI broad patients option and switch LYBALVI's prescriptions overall driver data since both LYBALVI the of they their a business compared This to of the pair represents experience are targeted QX. approximately timelines. plans between XX of product. XXXX in prescribers, for move from its recent a bipolar a interest agents. market LYBALVI’s As and an in of patients. decision since research olanzapine to end reported patients the first other considered In the treatment months. increase underscores of evenly split source prescription anecdotal range providers and to LYBALVI XX gain formulary and next as utilization which XX% has a our launch, consistent responded quarter, evolve appropriate health engage for LYBALVI prescribers market the and one second with of at in the efficacy had prescriber on its grown and their quarter in and schizophrenia survey site of with we majority prescribe discussions generic profile prescribing QX to providers of schizophrenia the from and and through And community. LYBALVI olanzapine care as LYBALVI's weight Based were

access we While oral as to assistance patients pathway a underway, supported decisions this copay aligned programs. expected, LYBALVI eligible our have other is branded and been Broadly patient payer by with covers agents. have

of year additional expectations decisions remain back our and we momentum, on Taking end remainder adoption, awareness complete pleased launch on strong strong expect prescriber executing be XXXX. underlying of driving treatment step demand, a and the a option. halfway strategy throughout and we important for raising We XXXX LYBALVI this launch are our and XXXX to coverage focused with revenue to based

basis, in increased quarter $XX.X therapy second at X% growth Turning family aLAI XX% market to driven million, outpacing year-over-year. ARISTADA grew ARISTADA, TRX net for of the [ph] sales the on the year-over-year product a primarily which to by month

this business launched accounted expanding VIVITROL product net for for differentiated in the dependence by approximately of X% recently marketing the on growth sales ARISTADA primary We focus and awareness and of indication pandemic. quarter million, proposition. been profile approximately VIVITROL in utilization driver driving brand $XX.X forward. year-over-year based We the XX% second has driven on initiatives this an family increased the This drive to growth continue play indication. value going believe its alcohol and important the of to during the new primarily digital to will role

medication this expect treatment continue to assisted in We market. utilization for increases growth as alcohol dependence

also employ awareness support VIVITROL plan We continue important to to treatment of resources opioid for option as to an dependence.

extremely on are our of commercial the options look affected LYBALVI, illness and execution. year to and of leverage addiction. the in to infrastructure, shareholder patients. set half VIVITROL provide distinctive their for we to impact markets. treatment year. progress first mental of opportunity I proud meaningful for updating ARISTADA a the represents back in commitment the Our have the are and the our on in you by half significant a products are forward people to And results serious reflection and unwavering our value our drive a capabilities, sophisticated company commercial of to LYBALVI

the we'll over Rich. Now to turn call

Richard Pops

That's Todd. great. Thank you,

the We three clear company based on are priorities. managing

our focus of products, launch LYBALVI. The growing revenues of proprietary with execution our on business, first from commercial is the a

business executing through the with priorities. The key driving term and And operating third decision these is is development a points. get Midway the us a for is efficiently the progress assess plans good second of year to for to goal pipeline our against our profitability. to candidates long time our neuroscience oncology

First on commercial the business.

continue heard to treatment respective just VIVITROL psychiatry Todd, from important and to we in across grow, are and ARISTADA our commercial you've options strategy and As portfolio. markets. addiction their execute our continue

We've as compelling a be treatment operate systems and This Alkermes asset sharpened commercial pharmaceutical we've trajectory, illness to the with LYBALVI. term. a the challenging for areas trusted our established we Through products, successes and is landscape. foundation mental partner in expect establish capabilities, products, serious LYBALVI addiction. launch our long in begun most for a and two disease challenges and important strong to some these and the of With these commercial in

real Our see confidence using with its one patients development LYBALVI is reinforced bipolar To the is and the physicians LYBALVI for and we've for with patients intention in design associated this in our feedback gratifying launch. by received realized everyone from setting. and world schizophrenia

opportunity. positioned Our the new term reflective on with the investments and long launch we're And are commensurate value well this believe deliver important medicine. of and the strategy to we of making potential we're

the we've the the unique molecular seen Next, monotherapy It strategy most our R&D that IL-X pipeline, immunotherapy is responses by in clinical starting we're is advanced Nemvaleukin with both the distinguished Nemvaleukin now pharmacology, its combination and clinic. as and pursuing. and resulting Alpha. development design in the focused

data study. at During the presented ARTISTRY-X quarter, ASCO from we the

of ARTISTRY-X and the As provided perspectives on the data, pembrolizumab initiation the across development clinical the multiple our profile remains IL-X in our types. thought heavily types: with clinical and in from data monotherapy combination part including of potential difficult-to-treat registration-enabling cancer. clinical and A of available utility two and differentiated valuable in its in pre-treated we nemvaleukin in in clinical nemvaleukin's informed of attributes studies ovarian on of findings the strategy, from tumor ARTISTRY-X pathway hosted tumor The oncology platinum-resistant melanoma pembrolizumab evaluating with evaluating monotherapy in mucosal our ARTISTRY-X section nemvaleukin on oncology. discussion potential belief established importance and combination the presentation, as replay nemvaleukin's its ARTISTRY-X in that leaders potential Investors The website. who on both patients

year, a dosing frequent focused regimens, studies. ARTISTRY-X once-weekly As of tumor continue evaluate we enter IV various second to ARTISTRY-X the of including enroll half these dosing we're the and range types. of also to We'll less two and subcu in enrollment on dosing

conducting quickly plan study That priority study receptor proof-of-concept to next XXXX. with commence half to first agonist has to year. to of X prepare a in the to we we well, orexin the our year. patients in In a goal track first clinic, and dose activities move as we're ascending this is was answer In questions program, a to and on narcolepsy fourth enable conduct the decisions, quarter. XXXX, enter our data-driven later critical single study early our is in-human IND-enabling ALKS Next progressed work

inhibitor XXXX XXXX, decided to program. selective candidate. decision-making, rigorous development clinical our with Turning our we've ALKS terminate to Consistent data-driven HDAC

the escalation earlier of dose As major year, this I the than from study disclosed Phase predicted demonstrated we levels metabolite. initial higher data

We're to team rapidly viable exposure several platform. proceed last the not a properties necessary the metabolite the the and establish from clinical evaluating efforts generate candidate. pharmaceutical the currently higher to results Over to of we clear safety of data backup doses. number of were a months, preclinically HDAC worked The to whether our determine and of characterize these molecules of supportive the additional should margins profile

for threshold remain we and the extremely our will of inherently clinic complex. the do However, with I'll The new a work novel as profitability. end into business rewarding, focus medicines the high. efficiently and an with long-term compound emphasis a be ambitious it's advancing but developer difficult managing on on also is can

Our for requires focus decisions. is offer programs that profitability that highest believe to likelihood allocation It those continuously a that success company. and return and in making biopharmaceutical so of timely on rigorous essential challenging This discipline we investment. a the invest provides of framework on financial prioritize capital running we and we

Our our profitability. proprietary drives and portfolio growth of products

the the becoming the of leverage As evident. into engineered LYBALVI, operating we've launch business we execute is

trajectory, behind initiatives. top XXXX. and us, With the both we're coupled of bottom our with management first half result for of is a the growth financial for improving line expectations This cost year now our the our

to for deliver to our order a commitment finish our priorities remain and create we're we dynamic strategic We'll our drive and value long-term as execute with shareholders. evolving pleased on up, rapidly landscape, business execution we on macroeconomic nimble year-to-date. managing to our in are profitability So a in

manage Sandy the I'll So the turn with call Q&A. that, to to

Sandra Coombs

for the Melissa, please. Richard. now call Q&A, open you, we'll Thank

Operator

[Operator from you. first Fitzgerald. Instructions] line Our of question. Folkes Brandon question with Cantor proceed with your Thank the Please comes

Brandon Folkes

on just Hi, on what deeper from quarter. to cycling in to it go really to other needed this just and perhaps other from prescribing of me, date. taking LYBALVI. of both Is thanks is Is a with questions Pretty out congratulations Two waiting product? or and medications. rolling time Can physicians? start base for my strong prescriber sort you patients just for base about coverage experience talk it questions broad switches the

my may as generics? ask just paradigm treatment it sell will there then any you. Thank ahead when be sell because or LYBALVI two together. question of would in a one yet, color move seeing Are or may Just up the patient other I'll And helpful. on second either earlier that have you brands always granted to go generics maybe

Todd Nichols

targeted take really leads prescribing, questions, our month-over-month, pleased I'll we're is of quarter-over-quarter those of talked first both physicians, to efficacy that anecdotal non-targeted we around learned What growing as perceptions. Yes. a physicians. of to which a with one our the learned what we've we've clinical from feedback, lot experience well. breadth And and research the with, LYBALVI

consistently doing the expected to they're that so continue. us of and well prescribers patients that report majority LYBALVI to And are

is the ENLIGHTEN-X that right benefits, play LYBALVI, very the out, targeted So our proposition get now similar was more weight-mitigating in olanzapine, that the our belief with value experience of that efficacy prescribers study. seeing the they're our

experience that So on we will drive And growth. just think that, more timing. that's clinical space belief our just is

that grow. QX breadth our to continue prescriber and beyond is So will expectation,

At it's just you positioning as lines this too to therapy, lines tell. of point, of within soon terms In multiple are there therapy. know, of multiple,

LYBALVI Our on up. regarding data if moved claims based is limited data, somewhat has

branded switch agent, treated LYBALVI a expectation is utilized the are that will most within again branded be market. agents Our which really like

that's LYBALVI So place that live. the will

Brandon Folkes

very Great. much. Thank you

Operator

you. Thank

Please from comes with Shibutani question. with Sachs. of question Chris the next your proceed Our line Goldman

Chris Shibutani

the very and LYBALVI trends on you there. guidance congratulations much the Thank raised and

from case for far about balance between utilization whether you the acute into maybe bipolar that the of And indications. the Thank expect continue year commented versus be threaded seems and those standpoint? a guidance? maintenance you. each the be You we settings that's so you also the and to talk this schizophrenia might to what trend and of how Can balanced expect about comment to

Todd Nichols

basis There far, which product the did thus that We're Absolutely. Yes, are half about Olanzapine written bipolar point launch in are from olanzapine, category. is a schizophrenia are and switches a patients half we at in than expect. meaningful entire of prescriptions this LYBALVI are more patients on the seeing branded category. fair approximately an olanzapine also patients. amount annual

know opportunity. the and within consistently that's large physicians switch know thirds weight eight So very We we happen weight, that weeks. will report two that patients olanzapine to of gain first a us will that

appropriate there's So transition opportunity LYBALVI. we very think for that's a an period

is a again, be other like branded and agent. split expectation Our treated We're meaningful will LYBALVI between that schizophrenia seeing, bipolar.

approximately about remember important that holds schizophrenia in and think in to I a XX% olanzapine XX% it's share bipolar. share currently a

very with both they're So opportunities. large markets meaningful

this split that, because is little actually but will especially and acute early now, and time, in maintenance acute bit maintenance that at expect that continue. way. look when expectation that -- It right our speaks the data will to we don't could meaningful settings. it's utilization, a over point relatively between a between we So evolve have don't At be we

important LYBALVI a it's very bipolar also indication, adjunctive episodes, think and is and that schizophrenia, monotherapy maintenance therapy. I episodes, broad remember to mixed

the and in a anecdotal patients. it's we to of settings and used be play utility is to believe, So going a feedback, broad really starting utility of that and data out broad

Operator

Thank you.

with comes Please Umer question from with proceed Evercore Raffat the next Our ISI. your question. of line

Umer Raffat

guys for Hi, my taking thanks question.

track quarter-over-quarter LYBALVI around couple, curious just run as speak is on implies to? about one-offs if report data inventory and the I there off the you per of sort other Just a closer the XQ or half One, you to versus at the report. at XX launch. again, year, prescription is and if made comments XX% XX% the of net to want any to broker notice it, XX,XXX, I the to And may. there's your sort imply which for one reported conference net the of you a on XX I But of XX% I to suggesting rate sort any to reported lowered Rich, that was don't number if some net the to did increase, early stable mid-XXs on other remember gross full does a recent the gross expectations on least to lack a low to gross is the of second you net. but is, sales in on to give volume up I disclosures that gross guess you from at was necessarily XX clarity could which

just So Thank to trying very I those you square two. was much.

Richard Pops

Yes.

So Umer, quarter I product think underlying net demand during of the in this the time. prepared did we about expecting. remarks by really earlier is inventory million, driving gross point and around on the sort is what $X.X were LYBALVI level what's when at increase we to talked for the which The in

increases, to inventory channel increase demand the continue you would well. would in As expect as that

unusual wouldn't were there. I So say anything there

I from think a reality, NDC much latter fronts business seen of rebating driving lower particular we've with the assistance would assumptions full XX is cost to favorability the associated prelaunch, be just channel to co-pay I And subject the down including to net access, increase NDC we with we with and program. of inventory number gross how XX, around as from demand. made various the commercial mix, things contracting year in take perspective, like lower on tracking our a then across a block, think channels of there, And more full a dynamics, is in and less the commercial blocks. number in all what

see by around near to to first To the is that net get second anything second XX.X%. in that driven the anywhere for more I the right step-up which to. be certainly XX%, tick talked XX%, than gross up sort big average of a expecting to else. half would not you're the to think year to in the half co-pay And that of the assistance you'd half. originally But get we'd utilization So

Umer Raffat

you. Thank

Operator

you. Thank

comes your Our next the question. line of Akash proceed Jefferies. with Tiwari question with from Please

Amy Li

Amy Hi, for this is on Akash.

two Just questions. quick

entry could you studies its what IP, one first [ph] order would in then on studies type ran what's revisit Thanks XXXX what potential for volunteer And running? of guidance? the the the a of much. to be out to are these type toxic? And The than market? liver what VIVITROL on impact -- longer generic tease And the ALS properly healthy Teva's the OXX Takeda for so is

Richard Pops

Amy, it's I'll Rich. take those.

update ascending going single We'll run healthy that traditional quickly additional run a The design for of U.S. progression doses but to orexin And ascending to on fourth And to the outside move the proceeds, quarter. first litigation that a engaging in the and probably study sometime with process proof-of-concept is we into how with MTD the study business they're study as in potential the latest doses on We're that get we The the a or will now. into on Teva obviously, the a market court generic going a target date those see that legal dose is only does program going to we're in through dose be will the a the stepwise to narcolepsy following be either expect dose. that clear in patients move discussions to what give we'll yet. there, we're multiple we that we're we be today not study. color an Teva now. market as expect not a can From or as volunteers. have that,

market, many but and -- superseding generic XXXX, you've our that, we're heard it's we'll always over So very, we've very all as optimistic going switching lend It position complicated doesn't even to And XXXX on been guide for years. IP a VIVITROL. for simple a itself guided we've XXXX, about to strategy.

Operator

Thank you.

with with your Please question. Our JPMorgan. of Cory next proceed comes question line the Kasimov from

Unidentified Analyst

the changes quarter. gross any the my And this thinking opportunity net then year date for add Cory. then juncture coverage [ph] on payer is and how full expansion you're about Hi, the congrats in LYBALVI? better-than-expected Tiffany to LYBALVI, respective steady-state this given expectation? thinking Thanks. lowered label their on I'll at market for to for about any commentary On and potential

Iain Brown

pleased rate we're And LYBALVI one me the reduce to the gross steady average net. obviously XXXX first let address to to we're the XX% down be So I XX%. able from to on state think

it's as all going that what we to commercial dynamic, access be forward, to happens the side largely across contracting I achieving to to steady post XX channels. be dependent are think continue is as months we launch XX the go things. upon initial on going of I think state And

more So that's the term. There we to and specifically launch to what longer proceed key determinant to comment with into color our to be net strategy around but looks we're the contract and as not as a there, be will gross going on going XXXX. like that

Todd Nichols

just and mentioned that's remember indication, actually life a post-marketing very LYBALVI's in cycle it's Most which that important our right bipolar very X think with as broad that, regards well. focus prepared don't focused such indication. brand fulfilling well. The schizophrenia is his a we're broad in in study, commitments management, position requirement, against unique and right a now. pediatric very the to Iain position. to with FDA. launch I And launched is disorder with a that the Outside delivering on of as a products unique remarks Yes, our now so

that's indications what now, we'll advisers have. then maximizing focus make look really the in from we right it's around the current -- management our the some and field, the on indications, does But over life is right future. our that those maximizing decisions cycle like. now learning time about two So But it's into

Unidentified Analyst

Thank you.

Operator

Thank you.

Matteis Stifel. with with the from question. Please proceed of comes question line your next Paul Our

Paul Matteis

unexpected the which just couple LYBALVI, so wanted the to rates. kind On of and Great. a and not. they guidance of I quarter understand this were congrats on quarter Thanks the to or degree parts moving and much

embedded you of $XX inventory seem to context the million LYBALVI. understand both the of this previously? in of your in in So are just drugs million that I clinical you long been top Are so then been patients as guidance situation significant be in of for it gain? broadly they've was And build switching curious, but $XX these net patients interested qualitative much. some better-than-expected driving was I seeing how experiencing in those terms olanzapine the the olanzapine price, to key $X.X context, are aspects I'd what to on quarter of from million Thanks reaching be given patients relates terms more to on weight had switching every different, the clinically is the who it? and when on end

Iain Brown

say, LYBALVI that So in I'd increase inventory expected. dynamics, We've demand. thought was Paul, sales quarter, increase always would in the on the levels line with the in inventory

$XX So numbers thought. there the bit so to still net, million say as favorability $XX million. were to million have lower $XX would as little originally small included the XX% we compared what It's in quarter. the to that into of gross in far gross did we was sales a I

set So one gross effectively we when percentage little point the a net million. of gross to compared to But side upside thought originally there on net was we as to $XXX,XXX. million the bit of $XX to is there what $XX

Todd Nichols

Yes. olanzapine And There's to important. in patients month. is olanzapine every the X,XXX as switch that context regards dynamics treatment single The well.

consistent data pretty been of continue see for that switch. less weight therapy that bipolar Claims gain, of to very switching especially terms So data patients of physicians has broad tolerability typically The driver major based it's is amount weight. with the well. to tolerability upon years us We over for as there's report in the and frequency. that the a patients

the is about patients generic we're watching agent. very point. dynamics XX,XXX in closely opportunity switched olanzapine it's There's very approximately And X,XXX those So setting a very, We're patients that big. watching that at to pretty branded that at time. switch something this But a again, switching closely. there's over large

issues now hear a of really switching what So drivers have current that's or around positive for too. olanzapine, and or and LYBALVI. we is LYBALVI see agents, early what right they a to other if experiencing But as they're weight if prior experience there's the thing good within patients major efficacy. And lack of or we the consider generics other broader is physicians that and will context of junction response this well, a consistently efficacy at branded

very we But switching point. is the So category well. the not only also but it's at that broader strong, dynamic large olanzapine for think days this is as early for

Paul Matteis

color. you the Great. Thank for

Operator

Thank you.

Our the with from with Please next question. SVB Leerink. of question your comes line Goodman Marc proceed

Marc Goodman

Yes, hi.

XX%, you mean, to of But the we -- of obviously, maintenance can on gross I be thinking should I that LYBALVI now want XX% maintenance? comment kind I come XX% us numbers least you out we going to have nets, of on at don't kind started if some Just thinking really understand mean, forward. give mean, sense to I down.

this So said, else there that I maybe API. have to said at But remember think VUMERITY, Or that about I'd you on just don't along? on going HDAC, just this to problem us you We compounds. what last just fixing did quickly? the us year? it's a is mean, is curious LYBALVI? that little there. is you those supply trying a Are you where all curious remember. on missed are? with And pretty I'm this, all And far you're something know can that. then help can bit is comment backup but understand a that I Just And on tell you're you be you there. major we persistence something going Or look may I anything I at that's to but issue the

of the came this like I something or lead acquisition in we're I what feel new made remember years, and was behind was Thanks. is asset. back be don't one. waiting it think there this to with that clinic year for a if from whether that going and the just on next be several you an you kind you'll

Iain Brown

gross So Marc, first LYBALVI take one let around net. the the to me

steady of comment the we're to to that It's going as specifically the I XX% front contracting talked from the what where and state want going range We is commercial in think So into we be within that driver strategy happens year go be is to up XX% too really valid. perspective. about to of XXXX. range. I this around end what think to that going remainder through XX%. But on contracting that still originally, don't The to XX% we is key just

Todd Nichols

well. the five months. as I'll persistency it's question about take Todd. Marc, Hi, The category at large is

view really still Our look early what would for to like it's see a now right LYBALVI. is little persistency

So that number do that. LYBALVI. X,XXX The report expecting research to now analysis the doing didn't them through We've the on level. that approximately needs are prescribers on didn't and to what best that at comment do for we'll of is persistency that. time, we LYBALVI the patients look been we leading us no, to have therapy right of really right to our grow able I to type got -- well, be marketplace, that continue have well. we patients as their majority from they indicator hear physicians are from on the And Over

that's we So think leading indicator. good a

Richard Pops

And Marc, it's Rich. I'll take the couple. last

teams involved, to of I'll Biogen most it on say the we're the give the leave that. manufacturing On technical to highly the to see pathway involved, we issues. and extent I'll just to VUMERITY updates our side, that resolution are of

will that be relatively hopefully, quickly. So resolved

On the derived HDAC, [ph] the the ago. chemistry acquisition a you're years of couple of right, original from Rodan

of are the we're away. So that the we original original from on come have ones derive And that different remote backups structures. that then be because But might some chemistry. are there from quite chemistry that focused well that along more

months next call. say that we the make few the quickly move we So will I on would those and would over

Marc Goodman

Thanks.

Operator

Thank you.

H.C. with from comes the Tsao next proceed Our Douglas of Wainwright. question. Please line your question with

Douglas Tsao

on balance some a bit in of it raise thinking Rich, of versus like the seems margins profitability ahead between the and morning potentially coming more in little progress. you some in guidance, how about is the plans Hi, congrats on the that little early-stage the programs? of terms fact good of given investing financial hitting perhaps the just targets are a long-term with

Richard Pops

Yes.

spend If our I had just think leverage priority one to the would the the more on That's we're stage reveal long-term early emphasize show the committed financial targets. as and hitting and growth the P&L. compounds on for less we it I deeply we to number at momentum discipline in additional this the and build now to moment, probably see LYBALVI. the right LYBALVI capital

So the ARISTADA, an already LYBALVI a launch in is I first in there drug of fields as in LYBALVI it's best think And to is lot near proven, the are potential to our we drill have and now, and them, we on just emphasis want large category. a as blockbuster and the potential nicely left growing in what an term. and are affect being that trajectory they real oral with oil much for can VIVITROL established LYBALVI. as compound that's

Douglas Tsao

to specific Rich, would above And some as unique investments faster from a follow-up, drive what there? growth

Richard Pops

beyond. be would That XXXX DTC. and the focus in

access physician we well several as probably as spend the breadth. that's over as months we'll titrate So see build next the

restrictions large product. to are want little You into unaware if a don't physicians if your DTC the turn access really there tend later wait That's your to of you a launch. are campaign, of on number or bit why

tracking So is it's now, which encouraging. all to plan

So XXXX XXXX. those are triggers the we into will as pull move and

Douglas Tsao

LYBALVI Okay. you And I of before I'm sort drugs of people other of treatment. do know the Great. from switch know people sort of weeks making But LYBALVI? how to earlier asked quickly lines switching are a in therapy terms of curious, of just

Todd Nichols

we that that take The closely switching. one. on watch data I'll Yes, very the is just dynamic

about much switch seven patients and times. treatments quickly. in bipolar Bipolar schizophrenia five more switch So average on patients to

bit of reason little pretty Main see So bipolar to a period time months schizophrenia. of patient directionally, you're a you'll dramatically, a longer looking XX about for at XX months switch really the is that well, That's we and/or that with don't as issues profile. efficacy within tolerate value for bipolar that tolerability why patient proposition think LYBALVI unique a patients too. has

Douglas Tsao

Thank Great. you. Okay.

Operator

Thank you.

America. question. comes Our ahead Gerberry, Jason of from next line question of the your go with Bank Please

Unidentified Analyst

the and And go/no-go of now Hi, good people IL-X sort on we that different the update one IL-X you Chi from update it sort an clinical dosing? of expand data Thanks. curious, competitive of IL-X do expect alternative think, Should clinical can that the for changed? data with just in update subcut? And strategic be digest have will strategic do be how I'm that year-end guess Is nemvaleukin. follow-up to Since think to dosing types? then, for Alkermes need be is the decision that about of When updates, update? [ph] I [Indiscernible] you in XXXX? morning -- the an I to would by This update I you to have Jason. interest? everyone. Or alternative the on time front, what efficacy talk to you question. guess tumor more in with sort the would need generate the taking Thanks interest IV has our or there level has of on think do would this update we have a category specifically accompanying data

Richard Pops

I'll take these.

a have same basin time. actually durability. We're subcu subcu, the be IV that the we seeing being would want we question or a ARTISTRY-X responses right different in So And expect looking subcu. subcu a less IV. the just that I'm data. on now we'll whether dose. make a the by have the to IL-X. And I we'll durability not doses focused whether year, confident with make is have more at end insight. good characterizes up of IV the order and both we'll in frequent that go/no-go call when to ARTISTRY-X a we're being to once-weekly ready IV, additional been sure underway the we'll quite make some The less for has ARTISTRY-X we're on frequent it's -- regimens making design come less progress frequent we're ARTISTRY-X, we'll and On different

an Let's might multiple tumor important we're the ultimate that's think durability over both commercial for be. and year. dose of our IL-X And component But the persists across those. well commercial potential what on types, understanding see the enrollment do assessing way how in of I

and basis, that support an one with of IL-X as of product it less late-stage of post the I So discussions its potential settle the more question. think the nemvaleukin, for which you part strategic proposition. of thinking with case referenced, number oncology individual most exactly people a what its important is an to the think partners, the variants as that's own folks of on many dust I in at IL-Xs data important forces bempeg, letting a also look and But value

I combination us efficacy as so prepared is intention the in And recapitulate That's to a so so or and in could mentioned supported IL-X this IL-X oncology of agent, what's And it's think get the ASCO toxicities. an of hallmark of at post-ASCO. remarks, all important without an of this importantly, for a by not it's I the ARTISTRY-X data as And present IL-X sense development. was version that's advanced happening people to the as whether of all. nemvaleukin not is just with design most pembro. monotherapy high-dose data the the now in But lot efficacy why

by data a also lot And from hypothesis. the a of that lot safety augmented set so is patients data design the helped confirm of

receptive keep our going appropriate ARTISTRY-X structure So is the deal ARTISTRY-X, shareholders. collaboration, for we'll and when with to keep time is we'll we'll and and and the collaborate right

Unidentified Analyst

Awesome, great. Thanks.

Operator

floor Thank Ladies questions the at turn final you. I'll time. this comments. back gentlemen, and any the there for are to no company further

Sandra Coombs

Have on Thank much. follow-up at us you. so be Thanks, Thanks we great have if company if helpful. or a joining for reach us hesitate morning. can otherwise the the you day. any everyone, out call this Please questions to don't to

Operator

Thank This you. today's concludes conference.

may Thank disconnect you your at time. participation. You this your for lines

Alkermes (ALKS) 27 Jul 222022 Q2 Earnings call transcript