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Alcohol dependence drug shows financial promise

By Katrina Megget, 30-May-2007

Related topics: Materials & Formulation, Drug delivery systems, Ingredients, excipients and raw materials

Sales of Alkermes's new drug for alcohol dependence are on a high following its release in June last year, and have contributed a hefty portion to the company's coffers.

The US drug delivery company reported its unaudited financial results, with alcohol dependence drug Vivitrol (naltrexone for extended-release injectable suspension) clocking up $16.8m of the total $105.4m in manufacturing revenue for fiscal 2007.

 

 

 

Total revenue for fiscal 2007 was reported as $240m which was compared to $166.6m on the year before.

 

 

 

While the company has announced the financial results, it remains in discussion with the staff of the Securities and Exchange Commission regarding the accounting for the Vivitrol, previously Vivitrex, collaboration with Cephalon, which markets the drug. The review will compare the financial results with previous results.

 

 

 

Alkermes other drug, Risperdal Consta (risperidone) an antipsychotic marketed by Janssen-Cilag, also showed improved manufacturing revenue with $88.6m, while showing a 40 per cent increase in sales over the year to $924.2m.

 

 

 

"We are very proud of our business progress and cash flow results for fiscal 2007 and are looking forward to continuing to advance our business in fiscal 2008," Alkermes chief financial officer James Frates said.

 

 

 

The company is expecting total revenues for fiscal 2008 to range from $240 to $260m following continued sales growth in the US and around the world.

 

 

 

Vivitrol is a one-monthly injectable medication for alcohol dependence and has often been quoted as a key to Alkermes' long-term growth, especially as approximately 18 million people in the US abuse alcohol.