Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Alkermes Second Quarter 2023 Earnings Financial Results Conference Call. My name is Marianne, I’ll be your operator for today’s call. [Operator Instructions] Please note that this conference is being recorded.

I’ll now turn the call over to Sandra Coombs, Senior Vice President of Investor Relations and Corporate Affairs. Sandy, you may begin.

Sandra Coombs

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

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

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

Iain. I’ll to now, call over And turn the

Iain Brown

hello, Sandy, you, Thank everyone. and Great.

which in the results following during year-over-year of commercial success reinstatement quarter the second execution products our proprietary growth royalties with quarter. the XX% arbitration our long-acting Our strong three the U.S. INVEGA Janssen, in the across our concluded highlighted business, reflect of by and

efficiency separating our XXXX is our our targets. further our and XXXX in emphasis resolution operating and commitment the on clear complemented by financial progress profitability and reflected to our business, ongoing as oncology in enhances profitability This strength

the impact of a the award of quarter Before results I’ll are it relates to the our elements. through second for walk from the number Janssen reviewing the important arbitration underlying final financial quarter, there business as as results

$XXX.X we and interest our million This quarter. million associated million and the INVEGA reflected revenue products Of to to recorded as royalties in is First, CABENUVA. GAAP results. XXXX of the this, long-acting $XXX.X $X.X related revenue back to related in

However, non-GAAP it our is excluded QX income. net from

Second, and we recorded reflected million incremental second $XX.X revenue million in long-acting at and XXXX, related INVEGA we are which our $XXX.X received royalty of royalties $XX.X products total, to these the million million proceeds $X.X end to quarter. related of of and CABENUVA. back from cash Janssen of position In have interest the to QX the

Royalty million on QX CABENUVA. related And both net net our worldwide which GAAP non-GAAP quarter. recorded related $XX.X All net to of to income, which and royalties in in non-GAAP these while we all million included net to $X.X related XXXX was related products second in was royalties reflected XXXX second included GAAP and of $XXX.X million million products, and these quarter products, we related to million interest told, last, and of QX recognized $XXX.X the QX income of the of INVEGA long-acting of net in income. sales the sales to are $XX.X revenues in

turning QX now So results. to our full financial

year-over-year. proprietary million, second revenues XX% performance which quarter, included $XXX.X of our recorded grew product portfolio, total which the For robust we across

in $XXX.X and dependence was driven the in indication. VIVITROL. the were with Net for in net normal to ranges Inventory stable year-over-year, growth quarter X% Starting million, the deductions the channel growth by sales gross primarily quarter. were reflecting alcohol within

two $XXX sales be in expected expect million over next fairly of to range million the continue we $XXX to each year, stable with the full the to net of For VIVITROL demand quarters.

on Moving to product ARISTADA the family.

sales normal XX% million. was net for net in million higher stable ARISTADA were million, increased expect gross ARISTADA and the year, underlying within the in to to to quarter, channel deductions $XXX primarily range sales ranges year-over-year the the net $XX.X of demand. the to continue driven quarter. Inventory by For for we full And $XXX

net LYBALVI at during lower following quarter million, quarter, to end sequentially. quarter. up the the the the for in inventory sales was Underlying growth normal XX% were levels prescription XX% rebounded and $XX first of relatively the channel levels

contracting commercial adjustments gross to were We in approximately currently QX space. expect for of adjustments strategy to the reflecting disciplined remainder net will net the continuation XX%, a XXXX. fairly of Gross stable our that in remain

year, be guidance provided we million higher end full to $XXX will of the net expect million. towards range of previously the sales LYBALVI For our $XXX

to to already the prior addition year. on royalty I’ve the $XX.X VUMERITY company our of Janssen million in discussed, business, compared in recorded same in the revenues to royalties manufacturing $XX.X Moving period million from the and

acceleration the for XXXX expenses ongoing agonist of Turning of R&D X year. were the the to in for $XXX.X second orexin $XX.X same expenses. in in studies, year, Total nemvaleukin second prior operating $XXX.X recruitment expenses for receptor prior program Phase cycle compared to into clinical the quarter million studies. were LYBALVI same the $XXX.X quarter million, period compared to and advancement in period ongoing million million management reflecting the Xb the life ALKS our

driven in component the from prior well period in expenses million as was The in $XXX.X the business. direct-to-consumer million as the $XX a of certain LYBALVI TV $XXX.X the to the to including increased largely the campaign, related the separation increase million start same expenses of May by SG&A year. for investment oncology

of be lower expect currently DTC-related two the next Looking quarters. ahead, to each in we expenses

management combined interest in to $XX.X I line income of net which operating $XXX.X resulted $XXX.X focus GAAP the on net royalties for of Janssen income million mentioned, expense back continued and XXXX. quarter, and million the disciplined non-GAAP our associated Our a of million excludes related results with as top

$XXX $XXX.X us well million second in order own we which to million. expect will with separation, of strong of Turning $XXX million cash balance capitalize quarter we to total with the our positions appropriately a investments sheet. as Oncology ended and upon This million. be position total to to $XXX on We debt outstanding Mural continue financial the

reiterating our financial we in outcome on are Janssen successful previously X raised that the the following we expectations XXXX arbitration. for Today, June

a As the and oncology financial business neuroscience expectations remain year. combined the year. reminder, separation track second the for reflect the in We full of our complete the on to half

positioned as conclusion, of XXXX oncology the on in priorities, well clinical the LYBALVI, to the business. complete of program launch separation execute the advance strategic year, the are So the drive and we second half of enter we our financially ALKS

business focus our shareholders. for call momentum with long-term the Todd. continue We value will that, to to and create on strong driving hand And the I’ll performance to across over

Todd Nichols

solid everyone. you, Thank growth good share and morning, again quarter across Iain, am our portfolio the that commercial proprietary with XX% second we pleased delivered in to year-over-year I growth.

was strong Our execution commercial sales by during our performance quarter driven by organization. the

uptake with pleased LYBALVI oral particularly antipsychotic market. continued the We’re of the in

So let’s start there.

During the to sales Prescriptions for sequentially approximately net TRxs second LYBALVI quarter, were quarter. grew XX,XXX $XX the million. XX%

Importantly, new-to-brand prescriptions of well. sequentially as accelerated growth

awareness on earlier in prescriber our our outlined optimize we As key and focused this profile LYBALVI access breadth, year, LYBALVI. three for build strategy XXXX grow initiatives, for is

future who grew patterns. in as feedback LYBALVI to outcomes continue is had with and During think which we and brand prescribing about recent better providers and prescribing, oral healthcare increased awareness is And their other LYBALVI’s healthcare as persistency weight to drivers X,XXX XX,XXX by efficacy, atypical cited the prescriber prescribers key for market line our than expected. breadth generic patient encouraging providers branded In since written olanzapine research, anti-psychotics launch. gain quarter, a potential be prescription we approximately profile,

role important in for for brands access this we play a currently LYBALVI, patients. Market to to access have like In an Medicare/Medicaid, space. continues all pathway all

is out. focus we commercial on and We made access are at how this net limit strategy stage commercial commercial the maximizing playing to deliberate with On the side, of contracting revenues our pleased decisions launch.

price that believe channel we the encountered a commercial perspective, limitations maintaining far. access in thus selling sales result net a as have higher any we a outweighs average From

evaluate With evolve profile balancing profitability and Going expect access least these in space, remain volume strategy said, each the commercial we to XXXX. our the forward, for to continue at to of stable we commercial that unit. remainder growth contracting fairly the of will

awareness LYBALVI patients, The component campaign week program of for I providers. high TV be disorder. Our May in first to DTC the driving on and healthcare is the The during campaign is maximizing will DTC launched a drive the term. opportunity long and amongst our bipolar of awareness in factor designed of caregivers, key focused levels and

and TV investment premiere our broadcast ROI greater We highest broadcast viewership spring in when based and fall investments the ad with will pulse seasons. placement on advertising finale expected in is

a continue you. strong to While the is have effectiveness trajectory we’ll time continue look impact to and been on LYBALVI on progress to full leading with take of the sharing campaign DTC the believe our We’ll see – we some encouraging. forward growth indicators

to driven $XX.X voice million, the ARISTADA by which of on ARISTADA to atypical prescriptions, sales INITIO Net long-acting strong of believe second driven were grew X.X% month product sequential year-over-year We brand by encouraged of primarily therapy the to a TRx approximately Turning family. basis. continued see market. growth growth in in in XX% quarter share we was the

continue be INITIO ALPINE to of by to two-month are differentiated dosing data our supported market once initiation will highlighting its in both from the our value dynamic proposition, will regimen, including this ARISTADA team focus expect We option on and continue study. every which ARISTADA’s clinical

quarter increased dependence year-over-year for VIVITROL Turning driver approximately growth VIVITROL. alcohol sales The accounted continued volume. and to two-thirds second to of X% be indication in the million. to of an the important Net $XXX.X approximately

the VIVITROL driven quarters. expand to Importantly, continued alcohol starts for continued recent against alcohol which prescriber has over the indication, market, patient growth of within new in dependence backdrop breadth the treatment has dependence

particularly signs five of opioid top within dependent We stabilization the business, also the to continue see side our for volume states. of

took in reminder, a February, in to continue decision our patent remain VIVITROL our of strength a Teva case. second with of the year. We and the the litigation expect this in place in confident trial we As half

of erosion market typical this of and in which However, it regardless continue to litigation, and the generic commercialized the the outcome complexities nature of that make the dynamics product believe the is of unlikely. we

with to pleased progress our through execution on portfolio our updating the performance by commercial look be forward to XXXX. strong you we the move product half strategy our of our as continue team. of we second and the of commercial Overall, We

over And with Rich. that, hand call the I'll to

Richard Pops

Todd. That's you, great. Thank

ALKS oncology XXXX, Phase Meeting. for the at a arbitration of to our the the commercial had the reinstatement and business, central critical Strong toward important. in the the Shareholder number plan second was planned We accomplishments performance, Annual The directors commencement successful associated our year. success of enrollment oncology were study our in our reelection of royalties, that of advancement for of the Xb and quarter Janssen of progress separation studies,

resolution the within business into So now come of of for litigation, as value. initial we year, elements commercial of we including narcolepsy the more enter these the a the of sharply data XXXX business. to Each of to half VIVITROL domains value portfolio, the completion proof-of-concept our oncology of ALKS separation second The number clinical expect of and drive focus. an a opportunity LYBALVI, represents important and the important in

turn. in each taking So

First, organization the and value of our commercial built. that we've commercial portfolio the

Todd intense by an growth you've to execution Iain, organization robust our commercial continued proprietary our from for As heard and driven of generate focus our on commercial strategy. has products,

market. campaign Now of driver DTC with a component broadcast was LYBALVI, has on oral the we've strong in is to DTC expect brand review milestone. the quarter atypical the start awareness continued second essential in of momentum for big the and The the of in its LYBALVI every established. uptake year to significant an launch, important of building large we market this during be the an DTC potential and

the operating and designed is over to long-term into business. net growth engineered confident revenue the the leverage strategy maximize our strategy. LYBALVI We're demonstrate and Our in we've profitability

will focus continue on our execution. be So to

Next on VIVITROL.

either resolution initial new of to decision interaction. in goes, the choose way whichever cycle because I it expect fall. VIVITROL say which of would appeal We the legal litigation may initial a and introduce party

either VIVITROL For this or we XXXX. reason, in would strategy for go-to-market in XXXX not our changes expect

the is opioid in we're dependence, confident noted, be for the in and innovation VIVITROL. typical this key embodied Todd important future. VIVITROL not our in alcohol erosion as for we option product a treatment an believe would market. said, that I expect and in it portfolio foreseeable generic will With

early in the including patients Phase second to to EEG-based X established receptor study of are initiated the test program. maintenance proof-of-concept Phase multiple parts narcolepsy X idiopathic endpoints, the study progress turning type this quickly. the moving study, made on wakefulness its Orexin designed with of quarter, in and patients. ALKS in This Xb XXXX, we Based efficacy is we X, in key clinical a narcolepsy evaluating proof-of-concept The ascending is our development, type hypersomnia. and So clinical data in X earlier year we and program generate agonist dose single

In as of own for us period the and crossover continue our this look is meantime, while data scientific to their ranges track, the Enrollment And X cohort, a levels we communities. in we the between. doses and design, dose we as placebo patients program. clinical later dose forward studies. type narcolepsy data Phase X this year. assess per Xb enroll single study sharing clinical dose future act to a multiple we're believe allow In development expect number with Xb on the with investor washout small this and initial preparing With the subjects and we a control study, from inform will received efficiently in initial of to as well response approach will subjects potential

to So appropriate. we'll as be quickly as ready advance it

the of Mural company. Mural public I'll will the Oncology a business. be new separation with finish independent Oncology

We with qualified appointment important in are Loew this notably, we the CEO and make deep the as Caroline the lead process. progress a and Oncology announced as the its Dr. Chief line the of as stand-alone of transition time of of designate knowledge Dr. on approach Loew us to Executive of Oncology. original extensive track experience uniquely company. development she'll complete a her as to when track half our Most adviser, field, Mural stages have leadership the Loew's oncology Mural and Oncology joined of completion Dr. made strong it and to June business upon the separation year Officer of final the we of second begins execution in record strategic journey strategic Mural separation.

provide of in caliber of candidates reveal with senior the And the independent direct independent the the of and Now separation from team. leadership I'm Caroline will made. this and coming with realize shareholders the opportunity the we're of neuroscience an Murals investors with members Mural place, we've also building Board that process. members are business. pleased that value investments The other to through the will out and more oncology value It our

in strong a we profitable and of to sharing near Alkermes a including commercial driven neuroscience proven the in its future. launch, Following important pipeline will the and the pure-play which unlock early company and specialized months capabilities will see the coming progress infrastructure, value opportunity separation, proprietary an be become opportunity growing still our a to drug forward in in growth company. inflection line products, XXXX, The significant top by LYBALVI, with With you. is ALKS an point our of the look development evolution

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

Sandra Coombs

can the we start Maria, Q&A Thanks, please. polling, Great.

Operator

Please Chris Thank Shibutani question. you. first comes [Operator Our from Sachs. your Instructions] Goldman with proceed question with

Chris Shibutani

I Thank may. you. Two Good morning. if questions,

First, on the Orexin program.

the I are that in investment anticipating community, the come think we all by year-end. will data

Phase Xb. see data you've from the is would that think highlighted we I NTX

first importance And we levels probably the of have During segments, also, with the different different quarter available. that are test of the reference that also compounds potency. expertise of you call, potentially for know tool you a did

IH work we you about in should take for the Phase doses, whether need being thinking program compounds be additional segments it how clinic? into? terms alluded and thinking do other X more What to or into that So NTX you other would see about to would prepared able from to you the possibly of be the bring

would Then the second profitability. on question be

when the point VIVITROL entrant the be would one would may a your at make competitive And in intensity there's discount? at could timing, typical when it decrease we entrant as generic support You seems segment is And and be commercial regardless should about regardless of and some you how won't it and the XXXX alcohol vulnerable? talked more that But the curve. have so think of and a complexities think outcome it of is opioid the the the highlighted be of a level an should that, that's erosion VIVITROL, if level Thanks. spending the same of that we more potentially particularly protected support XXXX. that

Richard Pops

I'll both to chime Hey those, Rich. and Chris, to. and they I'll Todd need ask it's try of if Iain in

Orexin, potency. just NTX, between and based potency IH, NTX, of is inherent the it one be on First first distinction The won't be the to clear, compound. the all, on in

for study, work And the the I informs so and give we're mentioned, And far, small in then And potency. and that potency anchor format we're dose compound. to happy with a of dose test basically seeing patient. we wakefulness doses be And patient the in as using that then way, response may their each by of we design in begin NTXs, dose. The we'll base perhaps NTX, we'll own whereas IHs bit curve have Xb the the starting we're have in the to we serving the each in placebo expectation very single suggests the is to as the difference and maintenance clinic a with actually into that where that as higher the well. in NTXs escalating where NTXs a of dosing control, the move with go the in way

anchoring the cohort why is that's well So and underway. that's cohort NTX an

so How NTX to patient still meetings then the dosing to cohorts we hope but I inform we order that sense. we're for fast Phase that as can in minimum, of Sleep make have the at exposures NTX, makes use advancing or Does those expect X diagnosis. those establishment sense? into I those end differential presentation ranges as as as to in many that at of of is determined, year, scientific in And well. by get perhaps be a other World the assembled IH

Chris Shibutani

about that's in thinking helpful Phase of X. Yes. No, terms

Richard Pops

Okay.

way on of depends about it the most think think it profitability it's into is probably constructive market. how VIVITROL, I the – somebody the came to On

business. came the now also see someone smart market point it's in pure Medicare, only the to would trying space, We don't be the XX% business the distributed good. i.e., contract and the a we to price the into which I commercial. commercial way to growing at is really relatively and that because market across the opportunity that And rates; strategy, of major particularly do is with see generic the be lower do thing about is think would a Medicaid

intensity. a like we came like the think to high would to promotional brand in business. between that at expectation, our the to versus the someone more a our sorry biosimilar maintain at opioid a obviously, commercial branded hope I more price, attention profitability if our allow all pay So – the not distinction more I’m a of would mean, times. But generic It's we at at grow, at alcohol. continue be and is government between I market

a said, hard and would you so to in new the entrant see have And With space. in is is we alcohol for opportunity for market into the that growing be that do and the this so is rapidly. The the thoughts? to so entry it's more in logic commercial grow market, come continue any market get Todd, market. the it given to how into new

Todd Nichols

absolutely. Yes,

not than generic see in that is what see the switches prepared business you retail rapid on of point-of-sale with that focus a add The you as a well. small. price VIVITROL Rich, of would happened that, And molecule overall. typically to switch, see here. believe Let made to price to works erosion erosion. in pharmacy pharmacy It's the erosion. very you statement it's is brand also type rapid typical our And small way XX% small retail don't switches we fulfillment to the I Chris, made well. this is me remarks – molecules, the then about way We just any as think typically less typically that on Yes, a

even alcohol operate opioid You it product versus actually commercialize and to well, point more segments because independent as to dependence Rich's highlight and separately. actually this complex, those the makes

alcohol our to really with drive over of pleased dependence. couple strategy the are We last years

that. we're fact, In and alcohol year-over-year about have a a now X% have seeing approximately VIVITROL we written dependence. that XX,XXX And for HCPs with growth prescription

Secondly, seeing alcohol for about now growth dependence. demand right a we're X%

So VIVITROL runway we of believe that lot a that channel. there's still for within

that as are of comment Rich's complex To have fulfillment well, one actually care there's also channels manufacturing. settings complex; it's The too, setting not And are complex. dominates market. the we the –

the market. drive we how well understanding into of coming to defend we anyone VIVITROL a the have continue would believe commercialize deep So market to positioned to came and competitor to have if are and a also into

Chris Shibutani

That's Thanks. potentially of durability that Appreciate long-term. the about it. helpful asset thinking

Operator

next from your David with Piper question with proceed Amsellem Our Please question. Sandler. comes

David Amsellem

Thanks.

So commercial you contracting. on understanding payer what on LYBALVI, said

So to picture. ask the I wanted long-term about

peers that setting. your bipolar, nonetheless, of more CAPLYTA contracting. talked label in product that and in more different One the distribute obviously, label, a And about has exposure has bipolar commercial a but

the LYBALVI guess does change I is, and that So like more the bipolar to population you and different feel And you're more what you more is don't patients. have term, aggressively? where that's as to question more about contract it exposure getting longer you're activating

longer term. is really question, sort of not this number one. XXXX So that's but And a

clear those And be VIVITROL. targets extent everything you’ve to is number early wanted Thank is profitability entrant, profitability put extent early targets, an an said, the entrant. structure pass. there cost drill down targets to maintain two, to on come there but did to what at generic can case the that which just To extent profitability you to profitability that in the continue in risk? mind does long-term manage your to just the And Bearing then to your is on you.

Todd Nichols

Yes.

a years, way I about with the time. seven mental So lot I’ll last We’ve the long think this ARISTADA. with learned start been over illness this LYBALVI. a we’ve space for in is, we specifically first serious would say

that’s you retract you things you over offering can’t be we’ve the thoughtful the commercial in really dynamics those one health that with especially in start And is balance you the payer how so to on time and systems, Once environment have space, And understand very profitability. learned rebates, and HCPs. the rebates. happening we of volume

very watch we so And carefully. that

astute HCPs being very prescribers. close the And are HCPs and at in hurdles navigate our that our very also prescribers space. to We and are able to stay

now, is this we believe right dynamic. so And a manageable

make So now we look maximizing We is sure that – each really And clarify contract sure contracts at our time. profitability we’re to will have and now. believe the right some that We also We contracts. commercial net to I do independently. we commercial making that right do do that the evolve. want commercial have for long revenue focus space continue and

So be strategy our remain to additional do will commercial debt this focus, long of term remainder but contracts, and our would our year, commercial at our stable. least the gross for think we profile

Iain Brown

Thanks, Todd. we XXXX. that and And the for profitability the out then profitability question, manage the we targets on there XXXX business have to achieve intend to

you to to able the of with maximizing be and with I lot with speculate how – to things really the the hit to goal think play they’re going certainly dynamics franchise going situation it’s work to VIVITROL targets. are from and profitability as profitability there’s assess going continue out. on of a out early we’re too But the space, heard, those to

David Amsellem

Thank you.

Operator

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

Paul Matteis

to you. on as about talk dose think program. extrapolate the tolerated tolerability. indication in you validity lead that for anything in TGI you’ve And SAD/MAD [ph] and NTX a each about discernible you drives Orexin that a it in like other just think study that as you populations. Can we A in the to up also seen couple attack, or Is data then test predictive what there coming relates how your endpoints against wakefulness things the IH, of do Thank different as then relevant the other about are registrational test in compound. your onto maximum populations cataplexy NTX,

Richard Pops

MTD morning, Good encouraging. we an SAD is and the yet haven’t in which hit Paul. MAD, Yes,

on of way the to encouraging. SAD that can to tolerated maximum is reinterrogate which We’ll and fact, dose, In quite then the the establish moved go a was based hitting move the we Ib, MTD. designed, and back sure into protocol the possible we if without make MAD off

it can are on there be know, events well of expect of you from certain, receptor decoupled that is wakefulness you view adverse some other that looks the agonism you As what these looking target X component like that our orexin for would side effects. be

that’s So encouraging.

as validity, are scores, where approvable of as useful well particular, endpoint wakefulness tests. know, But not feature, in in maintenance know, NTX, is you that are studies registrational guided as cataplexy in qualitative this is in as you measurements a The EEG there other NTX. of hallmark cataplexy the sleep so PROs

So, we’ll I And then way collecting a best consensus patients. drugs is primary think with that for And driven. efficacy Phase of the in it’s then as in most we are wakefulness from secondary EEG also building the we there’s will to line around and again, up consultation prioritize anchor, certain to of view as study, the other assay away of maintenance for is, predictive X endpoints because maintenance FDA the pivotal field, the these which study. and there us, just test, the this not us, the a number be these we players endpoints our in

Paul Matteis

you’ve still needing Because spoken is higher think, of those previously concept outside to the likely of think Rich, you And this do to I populations? dose address NTX. all about potentially that compound

Richard Pops

Yes.

to – mentioned NTX. Chris earlier, in I the question by will think that I think I be that answer as the to driven potency

fear go you have the potent one much If to highly NTX. whole in without higher much five if then to even tenfold ability higher. had to needs in you field, the It’s to compound clear NTX, escalate in yet a how go have not you

IH, may clearly NTX differential orexin-producing there orexintone but also and in that NTX is so that the diagnosis expectation you of deficiency a continuum is the of orexin neuron, is think peptide of I and distribution a whereas entirely. a or have somewhat brain. fuzzy, the an absence be

So patients, certain for for need a another mining amount you more might or and less. certain patient

we’re expectation, outside feature. effect. across would I’d the right figuring and patients NTX, of attractive allows doses a of that what right may and And range be you potency now hope to many titrate say to really And for move clinic. our So you in the clinical our is that’s now that’s flexibility by

Paul Matteis

much. sense. Thanks very Makes

Richard Pops

You’re welcome.

Operator

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

Umer Raffat

that to a for of a guidance. And putting north that thinking I cut. of more aside those XXXX do guidance Thanks guidance Would business agree length. LYBALVI it consensus for guys. revenue to the taking either the are about second. cost you I’m my Hi again, part for wanted it EBITDA the numbers to you’ve about of just you’re long-term not I’m keeping have royalties XX% track VIVITROL to out North quick year. question. thought obviously, second. next for levers revisit to just XXXX J&J a to you make at key on track get there the that And needs because mind, could how Maybe sure the you curious in or

Iain Brown

Yes, and the think long-term on focused expense we revenue think the they’re profitability top-line management. obviously, disciplined I growth focus then on targets, as about continued on

the really talk some So time when those of and about in within with And future. guidance at combination frame, it’s June two the we the them we’ll the levers in reiterated a we J&J business. point news out went the

Operator

question. Uy Ear with Securities. Our proceed next question Please Mizuho comes from with your

Uy Ear

question. thanks for guys, my taking Hi

be could something So you that presenting you Rich, at I think Sleep. World mentioned

Could XXX spend come if more and of – quarter $XX it the you of sort guess you high half? something see SG&A Could you to just guess that’s so kind away. suggests some the would to data if on I see second we few expect – your should should give maybe expect the we us a million secondly on out than in be your sort we take SG&A, guidance. down color end you’ll And flatline, that one-time months to like what Thanks. the And of expect there. I of this

Richard Pops

the Good we’re the of to much well in October, Ear. is from far Sleep trying data We’ll cohort do take together we well. morning, into possible, as those as World enroll the as and how we get cohorts NTXs That presentation. study. is it Uy scientific what see SAD with NTX put as as will the data along coupled the get be for also and and MAD as compile and

Iain, year. learned a so So take to clinic want of we’ll at view the you to the we’ve hope SG&A? comprehensive give this pretty far what

Iain Brown

of TV side, then two investment And the talked had – think really in about, Yes. sales there’s of we through the DTC the are on the as TV side on year. we and pulsing initial components months that to the investment you things, the little SG&A as a talked I bit certainly the us that marketing investment side about remainder a Typically, things. component of summer go perspective. from on Todd slower

doesn’t impact expect down into we’d come as assuming the rebound the to and quarter and DTC season, potentially actor we So finale that. in the writer the then strike fourth spend get

the about of Meeting. on G&A arbitration, then if busy the it you Annual litigation, QX, side had think things, the pretty with we a And Shareholder J&J the Teva

to that lastly, then in spend incurring are a there’s the necessarily oncology of on run And at year. of expect the to through also same level we don’t certain we some we spend level wouldn’t half. QX So separation the second in recur expect business the the which

which the we quarter, – few in a through the a rest of year. in similar are factors don’t So through necessarily running the the second anticipate way there

Uy Ear

Thank you.

Operator

proceed your Partners. comes question from with Marc Leerink with question next Please Our Goodman

Marc Goodman

return full can just you. that Thank far returns you that and the give seen you’re DTC us so year? as Yes. how DTC, program a much investment? as on the planning And money how of On you for spending sense far on are on what you’ve measuring

Todd Nichols

really investment launch TV were take pleased I’ll of component in to Marc. our May. nature. It’s the DTC with lot our metrics are early that. a beginning digital We the now, absolutely, the Right our of investment. component at qualitative we year. of the in started Yes, DTC And

seeing don’t play really next to ROI our the XX over believe six the months believe that will we’re months. We any on out we that of inflection DTC type So campaign.

right now that we’re website watching metrics The awareness our building, are are really traffic. levels, watching which we’re

We’re watching traffic. search engine

We’re watching with to we’re that people they’re and as reach very number trends encouraging TRP And of our levels. expectations the overall very consistent are the through able well.

investment this like to later DTC In then we’ll taking be at investment, talked think year. beyond the $XX will for basis $XX we’ve as an previously, this in on terms annual And of that in range investment look and overall about what of XXXX million. about the we million year a will be look the

Marc Goodman

Thanks.

Operator

Jason question Bank of [Operator Instructions] your question. proceed America. Gerberry with from Please comes next Our with

Jason Gerberry

my come margin be But understanding about you’re Mindful operating a just for lot you would cuts DTC. But net I the to in sales, XXXX can much guide waiting perhaps cut they’re if get Hey of an with question. like like because two to to of seem trying XX%. SG&A Thanks kind kind of here, a of leverage Mural. investment up conceptually that need R&D taking wanted seems to healthy of the so and there’s net guys. it net to just back address February talk to take this. and step pulse profit the to product it achieved all thirds through

that much So this net a World in how guidance? that October then SG&A just a could follow-up, XXXX at orexin get questions, Meeting to data you discretionary is we’re to the Thanks. guys? getting And some in getting be lever just my as Sleep wondering Medical for margin priority

Iain Brown

guidance we’ll DTC So answer XXXX anticipating and growth especially LYBALVI be on more we’re our by ARISTADA, those VIVITROL, LYBALVI to talked investment that earnings on again, call the we’ve and driven with providing especially questions detailed – But products, year-end profitability February the about. in proprietary the all specifically. continued targets,

we in the we flex of ability continue. side VUMERITY. as that’ll We such a then call. Todd on of the as expense be investment as But we’re to the investments to. operating continue we said, to expect P&L as forward. some February to on go detail focus and we And as going to much And on within there’ll DTC assessing growth And you the on both level have spend return DTC earnings follow lot the efficiencies things, said, on alluded the be of very the that more on

Richard Pops

And data present Sleep, World respect World Jason, Sleep. expect to with we to

Jason Gerberry

the Xb data Sleep? That be World Okay. NTX, at Phase would

Richard Pops

the NTX the complete. me. least I – have expect of Excuse Yes, the to first cohorts at

Jason Gerberry

Got it. guys. Great. Thanks

Operator

H.C. Tsao comes your Please with from Douglas Wainwright. question with proceed next Our question. there? Doug, you are

Sandra Coombs

I Maria. think have… right, don’t All we

Operator

we have questions more appears now. It don’t any

to turn Sandy, the I’m to So you, closing over comments. for back going floor

Sandra Coombs

Great. Thank you. Please follow-up if there on any helpful Thank we you to call don’t reach questions be out joining with. the for hesitate are everyone today. can us

Operator

today’s concludes conference. This

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

Alkermes (ALKS) 26 Jul 232023 Q2 Earnings call transcript