Shares of drug-delivery expert Alkermes
Revenue rose 44% for fiscal 2007, as manufacturing for antipsychotic drug Risperdal Consta, which is marketed by Alkermes' partner Johnson and Johnson
Besides the financial results, Alkermes also announced that the SEC initiated an investigation over its accounting practices in conjunction with alcoholism treatment Vivitrol. Investors shouldn't be overly concerned about this investigation, as long as it remains confined to Vivitrol related-accounting; the drug makes up less than 10% of Alkermes' revenue, and its manufacturing revenue is not very profitable.
Vivitrol's launch has gotten off to a very slow start since its U.S. FDA marketing approval last year. Vivitrol sales from marketing partner Cephalon
For the coming fiscal year, Alkermes expects flat-to-single-digit revenue growth, and diluted earnings per share, including stock-option expense, in the $0.10 to $0.15 range. Now that Vivitrol won't substantially improve near-term profitability, investors will have to wait several years for the company's diabetes pipeline to advance enough to see significant profit growth.
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