...Alkermes PLC's operating performance will deteriorate in 2023 from elevated costs, despite Lybalvi outperforming its initial forecast. We expect Lybalvi, which generated about $96 million in sales in 2022, to more than double in sales in 2023. However, we expect that growth from Lybalvi will be offset by the investment in its direct-to-consumer advertising campaign and costs related to the planned separation of the oncology business. We now expect Alkermes to generate margins of 3%-4% in 2023, down from 4.2% in 2022, and well below our prior forecast of about 9%. Still, we believe Alkermes remains committed to improving its EBITDA margins and updated its profitability targets after the separation of the oncology business to 20% in 2024 and 25% in 2025. This is a one-year acceleration of its previously provided targets, which it plans to achieve via revenue growth and rigorous expense management. We now expect Alkermes adjusted leverage to be weak in 2023 but recover quickly in 2024. The...
