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Alkermes (ALKS)
NASDAQ:ALKS
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Alkermes (ALKS) AI Stock Analysis

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ALKS

Alkermes

(NASDAQ:ALKS)

Rating:73Outperform
Price Target:
$32.00
▲(20.62%Upside)
Alkermes' overall score reflects strong financial health and positive earnings call insights. However, bearish technical trends and macroeconomic concerns weigh on the score. The company's valuation remains attractive, supporting a favorable long-term outlook.
Positive Factors
Efficacy and Safety
Alixorexton demonstrated statistically significant and dose-dependent improvements on MWT compared to placebo, achieving normative wakefulness in NT1 patients.
Market Differentiation
Alixorexton demonstrated significant improvements in wakefulness, fatigue, and cognition, which could enhance patients' quality of life and differentiate Alkermes from competitors.
Safety Profile
Initial safety updates are encouraging and consistent with the profile in the Phase 1 study, with no liver toxicity detected.
Negative Factors
Adverse Effects
A key topic that remains central for investors is visual adverse events, and management did not comment on whether there were any visual adverse events observed.
Data Disclosure
The negative stock reaction for ALKS was in response to the limited disclosure around the Ph 2b NT1 data, which led to more questions than answers.
Efficacy Concerns
The lack of statistically significant effect on weekly cataplexy rate for two doses is perplexing.

Alkermes (ALKS) vs. SPDR S&P 500 ETF (SPY)

Alkermes Business Overview & Revenue Model

Company DescriptionAlkermes (ALKS) is a biopharmaceutical company that specializes in the development, manufacturing, and commercialization of pharmaceutical products designed to address unmet medical needs in psychiatry and addiction. The company focuses on central nervous system (CNS) disorders, including schizophrenia, bipolar disorder, and addiction, offering a portfolio of proprietary and partnered products aimed at improving patient outcomes.
How the Company Makes MoneyAlkermes generates revenue primarily through the sale of its proprietary products, such as VIVITROL, an injectable medication for the treatment of alcohol and opioid dependence, and ARISTADA, an extended-release injectable for schizophrenia. Additionally, the company earns income from manufacturing and royalty agreements with partners, leveraging its proprietary technology platforms to develop and produce third-party products. Significant partnerships with leading pharmaceutical companies also contribute to Alkermes' revenue streams by providing milestone payments and royalties from licensed products.

Alkermes Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -7.79%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance, significant progress in R&D, and robust commercial product growth. However, there are concerns regarding macroeconomic factors and market dependencies, which the company is actively monitoring.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Alkermes recorded net sales of $244.5 million from its proprietary product portfolio, reflecting a 5% year-over-year growth, primarily driven by LYBALVI.
Positive Commercial Product Growth
LYBALVI net sales grew 23% year-over-year to $70 million, driven by underlying TRx growth of 22%.
Robust R&D Progress
The ALKS 2680 Phase 2 program is advancing with real momentum, with the NT1 study fully enrolled and top-line results expected early in the third quarter.
Solid Financial Position
The company holds more than $900 million in cash and investments on the balance sheet and is generating substantial cash flow.
Negative Updates
Macroeconomic Concerns
Alkermes is monitoring Medicaid changes and potential tariffs, although it is somewhat insulated due to U.S.-based manufacturing.
Dependency on U.S. Market
All proprietary products are manufactured and sold exclusively in the U.S., limiting international market exposure.
Company Guidance
During Alkermes' first quarter 2025 financial results conference call, the company provided several key metrics and insights. They reported net sales from their proprietary product portfolio at $244.5 million, reflecting a 5% year-over-year growth, primarily driven by LYBALVI, which saw a 23% increase in net sales to $70 million. VIVITROL and ARISTADA also contributed with net sales of $101 million and $73.5 million, respectively. Alkermes reiterated its financial expectations for the year, projecting VIVITROL net sales of $440 million to $460 million, ARISTADA at $335 million to $355 million, and LYBALVI at $320 million to $340 million. The company highlighted the progress of their ALKS 2680 Phase 2 program, with the NT1 study fully enrolled and expecting top-line results early in the third quarter. They also discussed their strong financial position, with over $900 million in cash and investments, and plans for potential share repurchases.

Alkermes Financial Statement Overview

Summary
Alkermes demonstrates strong financial performance with high profitability margins and robust cash flow metrics. The balance sheet shows financial stability with low leverage and strong equity. However, there are concerns about revenue growth fluctuations.
Income Statement
82
Very Positive
Alkermes shows strong financial performance with a high gross profit margin of 87.63% and a net profit margin of 23.29% for the TTM (Trailing-Twelve-Months), indicating efficient cost management and profitability. The revenue growth shows fluctuations, with a decline of 2.82% from the previous year, raising some concerns about consistent revenue expansion. EBIT and EBITDA margins are robust at 25.83% and 29.57% respectively, reflecting solid operational efficiency.
Balance Sheet
78
Positive
The company's balance sheet reveals a strong equity position with an equity ratio of 72.61%, showing financial stability. The debt-to-equity ratio is low at 0.05, indicating minimal leverage and reduced financial risk. Return on Equity (ROE) is impressive at 23.33%, reflecting effective use of shareholders' equity to generate profits. Overall, the balance sheet is well-positioned with low debt and strong equity.
Cash Flow
85
Very Positive
Alkermes demonstrates a robust cash flow position with a significant free cash flow growth rate of 18.73% and a strong operating cash flow to net income ratio of 1.47, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also high at 1.37, reflecting a strong ability to convert profits into cash. The cash flow statements highlight healthy liquidity and operational cash generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.51B1.56B1.66B1.11B1.17B1.04B
Gross Profit1.33B1.31B1.41B893.73M976.43M860.44M
EBITDA447.71M494.86M519.48M59.77M177.60M-6.02M
Net Income352.71M367.07M355.76M-158.27M-48.17M-110.86M
Balance Sheet
Total Assets2.08B2.06B2.14B1.96B2.02B1.95B
Cash, Cash Equivalents and Short-Term Investments399.81M751.67M773.49M740.08M765.74M659.81M
Total Debt74.10M75.54M372.19M293.27M295.80M274.96M
Total Liabilities570.39M590.59M933.54M920.23M911.90M882.75M
Stockholders Equity1.51B1.46B1.20B1.04B1.11B1.07B
Cash Flow
Free Cash Flow481.57M405.64M353.31M-17.21M72.69M40.62M
Operating Cash Flow516.83M439.12M401.35M21.04M101.72M82.84M
Investing Cash Flow-62.26M-111.31M53.36M-64.54M-66.20M-11.48M
Financing Cash Flow-475.52M-494.14M-289.71M-1.57M29.07M-2.17M

Alkermes Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.53
Price Trends
50DMA
29.80
Negative
100DMA
30.53
Negative
200DMA
30.23
Negative
Market Momentum
MACD
-0.69
Positive
RSI
31.18
Neutral
STOCH
19.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKS, the sentiment is Negative. The current price of 26.53 is below the 20-day moving average (MA) of 28.81, below the 50-day MA of 29.80, and below the 200-day MA of 30.23, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKS.

Alkermes Risk Analysis

Alkermes disclosed 40 risk factors in its most recent earnings report. Alkermes reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Alkermes Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$4.33B36.1213.90%247.53%118.34%
73
Outperform
$4.37B12.6325.71%-12.31%-17.53%
60
Neutral
HK$17.07B6.10-7.44%2.88%11.55%-28.15%
58
Neutral
$6.75B-118.53%-7.65%-11.81%
54
Neutral
$5.24B-282.16%72.16%9.65%
47
Neutral
$1.27B19.61-23.61%59.15%-1881.09%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALKS
Alkermes
26.53
-1.35
-4.84%
IONS
Ionis Pharmaceuticals
42.15
-9.30
-18.08%
SRPT
Sarepta Therapeutics
12.88
-131.36
-91.07%
AXSM
Axsome Therapeutics
104.97
18.44
21.31%
KRYS
Krystal Biotech
150.00
-63.66
-29.80%

Alkermes Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Alkermes Announces Positive Phase 2 Study Results
Positive
Jul 21, 2025

On July 21, 2025, Alkermes announced positive topline results from its Vibrance-1 phase 2 study, which evaluated the safety and efficacy of alixorexton in patients with narcolepsy type 1. The study demonstrated that alixorexton significantly improved wakefulness and patient-reported outcomes related to disease severity, fatigue, and cognition compared to placebo. These results support the advancement of alixorexton to phase 3 development, highlighting its potential as a transformative treatment in the narcolepsy market.

The most recent analyst rating on (ALKS) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Alkermes Shareholders Approve Amendments at Annual Meeting
Positive
May 21, 2025

On May 21, 2025, Alkermes plc held its annual general meeting where shareholders approved amendments to the 2018 Stock Option and Incentive Plan, increasing the number of authorized shares by 4,250,000. Additionally, shareholders elected directors, approved executive compensation, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and renewed the Board’s authority to allot and issue shares under Irish law, reflecting strong shareholder support for the company’s strategic initiatives.

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

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025