Alkermes plans Avadel acquisition to expand sleep portfolio

An announcement from Alkermes ( (ALKS) ) is now available.

In 2025, Alkermes generated more than $1.45 billion in commercial revenues with strong cash flow and profitability and laid out a 2026 plan centered on driving growth in neuroscience and leading innovation in orexin 2 receptor agonists for sleep disorders. The company reported positive multi-week phase 2 Vibrance data in 2025 for its orexin 2 receptor agonist alixorexton in both narcolepsy type 1 and type 2, showing statistically significant and clinically meaningful improvements in wakefulness, excessive daytime sleepiness, cataplexy, fatigue and cognition with a favorable safety profile, leading to an FDA Breakthrough Therapy designation in narcolepsy type 1 and supporting the launch of a registrational phase 3 narcolepsy program in the first quarter of 2026. Management positions orexin 2 receptor agonists as a multi‑billion‑dollar opportunity, estimating a market of more than $10 billion across narcolepsy and idiopathic hypersomnia, underpinned by a large base of undertreated patients and an existing oxybate market exceeding $1.8 billion in 2024 revenues. The planned acquisition of Avadel in 2026, together with ongoing phase 2 work in idiopathic hypersomnia and anticipated phase 3 data for LUMRYZ in that indication, is designed to accelerate Alkermes’ entry into the commercial sleep medicine market, augment its revenue growth and profitability profile, and establish the company as a leader in a new therapeutic category within central disorders of hypersomnolence.

The most recent analyst rating on (ALKS) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

Spark’s Take on ALKS Stock

According to Spark, TipRanks’ AI Analyst, ALKS is a Outperform.

The score is driven primarily by strong financial performance (high margins, low leverage, and robust free cash flow generation) and a constructive earnings-call outlook (raised guidance and solid commercial execution). These strengths are tempered by weak technical signals (below major moving averages with negative MACD), while valuation (P/E ~13.9) is supportive but not a major offset.

To see Spark’s full report on ALKS stock, click here.

More about Alkermes

Alkermes plc is a profitable neuroscience-focused biopharmaceutical company that develops and commercializes therapies for serious central nervous system disorders, including schizophrenia, bipolar I disorder, and addiction, and is expanding into sleep medicine. Its portfolio includes branded treatments such as ARISTADA, ARISTADA INITIO, LYBALVI and VIVITROL, and it also manufactures VUMERITY under license, while the planned acquisition of Avadel Pharmaceuticals is intended to add the sleep therapy LUMRYZ and strengthen its position in central disorders of hypersomnolence such as narcolepsy and idiopathic hypersomnia.

Average Trading Volume: 2,304,202

Technical Sentiment Signal: Buy

Current Market Cap: $4.89B

For an in-depth examination of ALKS stock, go to TipRanks’ Overview page.