Alkermes (ALKS) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.67
• Revenue Growth: 1.08%
• EPS Growth: 3.40%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.68
• Shares Outstanding: 165,117,510
• 10 Day Avg. Volume: 2,059,696
• 30 Day Avg. Volume: 2,294,364
• PEG Ratio: 3.47
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 3.05
• P/FCF Ratio: 11.73
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $46.17
• Price Target Upside: 62.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): $1.46B

• Rating: 80 Outperform
• Price Target: $34.00 ▲(19.34% Upside)

Alkermes' strong financial performance and strategic acquisitions are the primary drivers of its high score. The company's robust profitability, low leverage, and positive earnings call sentiment further bolster its position. Technical analysis presents some caution, but overall, Alkermes is well-positioned for growth in the biotechnology sector.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Alkermes' expanding market reach and successful product adoption, supporting long-term business sustainability.

Strategic Acquisition

The acquisition of Avadel Pharmaceuticals is expected to enhance Alkermes' market position in sleep medicine, driving future revenue growth and portfolio diversification.

Financial Health

Strong financial health with low leverage provides Alkermes with flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Increased R&D Expenses

Rising R&D expenses may pressure short-term profitability, though they are essential for long-term innovation and product pipeline development.

Increased SG&A Expenses

Higher SG&A expenses could strain margins, reflecting increased investment in sales and promotional activities necessary for market expansion.

Patent Litigation

Ongoing patent litigation could lead to legal costs and uncertainties, potentially impacting future revenue from key products like LYBALVI.

Alkermes Business Overview & Revenue Model

Company Description

Alkermes plc is a biopharmaceutical company that focuses on developing innovative medicines to address the unmet needs of patients with serious mental illness, addiction, and central nervous system (CNS) disorders. The company operates primarily in the pharmaceutical sector, specializing in drug development and commercialization, particularly in the areas of schizophrenia, depression, and opioid dependence. Alkermes' core products include Vivitrol, a medication for the treatment of alcohol and opioid dependence, and Aristada, an injectable antipsychotic for schizophrenia.

How the Company Makes Money

Alkermes generates revenue primarily through the sale of its proprietary pharmaceutical products, including Vivitrol and Aristada. The company also earns income from royalties on products developed through its proprietary technologies, as well as through collaborations and partnerships with other pharmaceutical companies. Significant partnerships, such as those with larger pharmaceutical firms, enhance its research and development capabilities and provide additional revenue streams. Alkermes also engages in licensing agreements that may contribute to its earnings, allowing it to leverage its drug development expertise while minimizing risk.

Alkermes Financial Statement Overview

Summary

Alkermes demonstrates strong financial performance with improvements across income, balance sheet, and cash flow metrics. The company has effectively managed its costs and leveraged its assets to maintain profitability and cash flow generation. While there are minor pressures on operational efficiency, the overall financial health is stable and promising, with low leverage and strong cash flow growth.

Income Statement

Alkermes has shown a strong improvement in its income statement metrics over the years. The TTM data indicates a healthy gross profit margin of 86.04% and a net profit margin of 22.27%, reflecting efficient cost management and profitability. The revenue growth rate has been positive, with a notable increase of 6.6% in the TTM period. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.041 in the TTM period, indicating low leverage and reduced financial risk. The return on equity is strong at 21.39%, showcasing effective use of equity to generate profits. However, the equity ratio has not been explicitly calculated, but the overall asset management appears stable.

Cash Flow

Cash flow metrics are robust, with a significant free cash flow growth rate of 229.8% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.14, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also strong at 0.91, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.56B	1.66B	1.11B	1.17B	1.04B
Gross Profit	1.31B	1.31B	1.41B	893.73M	976.43M	860.44M
EBITDA	435.78M	494.86M	519.48M	59.77M	177.60M	-6.02M
Net Income	338.83M	367.07M	355.76M	-158.27M	-48.17M	-110.86M
Balance Sheet
Total Assets	2.33B	2.06B	2.14B	1.96B	2.02B	1.95B
Cash, Cash Equivalents and Short-Term Investments	1.11B	751.67M	773.49M	608.47M	536.31M	635.03M
Total Debt	71.60M	75.54M	372.19M	379.44M	416.21M	410.16M
Total Liabilities	596.08M	590.59M	933.54M	920.23M	911.90M	882.75M
Stockholders Equity	1.73B	1.46B	1.20B	1.04B	1.11B	1.07B
Cash Flow
Free Cash Flow	490.87M	405.64M	353.31M	-17.21M	72.69M	40.62M
Operating Cash Flow	541.08M	439.12M	401.35M	21.04M	101.72M	82.84M
Investing Cash Flow	-40.72M	-111.31M	53.36M	-64.54M	-66.20M	-11.48M
Financing Cash Flow	-280.20M	-494.14M	-289.71M	-1.57M	29.07M	-2.17M

Alkermes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.49 is below the 20-day moving average (MA) of 28.81, below the 50-day MA of 29.90, and below the 200-day MA of 29.67, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 51.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKS.

Alkermes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKS	80 Outperform	$4.73B	14.10	22.35%	―	1.08%	3.40%
KRYS	80 Outperform	$7.24B	38.00	19.66%	―	54.51%	275.94%
PTCT	72 Outperform	$6.33B	9.08	―	―	97.54%	―
TGTX	65 Neutral	$4.94B	11.06	111.96%	―	100.88%	―
MRUS	52 Neutral	$7.35B	-18.16	-51.57%	―	57.54%	-36.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRSP	40 Underperform	$5.52B	-10.12	-25.33%	―	-81.10%	-99.21%

Alkermes Corporate Events

Alkermes Increases Offer for Avadel Acquisition

On November 18, 2025, Alkermes plc and Avadel Pharmaceuticals plc amended their transaction agreement, increasing the cash consideration for the acquisition of Avadel to $21.00 per share, while maintaining the contingent value right terms. This move followed Avadel’s receipt of a superior proposal from H. Lundbeck A/S, which was later deemed inferior to Alkermes’ revised offer. Additionally, Alkermes entered into an amended bridge loan agreement to finance the acquisition, ensuring compliance with Irish Takeover Code requirements. The acquisition is expected to close in the first quarter of 2026.

Alkermes Announces Positive Results from Vibrance-2 Study

On November 12, 2025, Alkermes announced positive topline results from its Vibrance-2 phase 2 study, which evaluated the safety and efficacy of alixorexton in patients with narcolepsy type 2. The study demonstrated that alixorexton, a novel oral orexin 2 receptor agonist, met its dual primary endpoints by significantly improving wakefulness and reducing excessive daytime sleepiness compared to placebo. These results support the advancement of alixorexton to phase 3 trials, marking a significant milestone for the narcolepsy patient community and Alkermes’ development program.

Alkermes to Acquire Avadel Pharmaceuticals for $2.1 Billion

On October 22, 2025, Alkermes announced its agreement to acquire Avadel Pharmaceuticals for up to $2.1 billion, enhancing its presence in the sleep medicine market with Avadel’s product LUMRYZ. The acquisition is expected to be immediately accretive and will strengthen Alkermes’ commercial portfolio and revenue growth, positioning it as a leader in treatments for sleep and neurological disorders.

Alkermes Partners with Amneal for VIVITROL® Distribution

On September 9, 2025, Alkermes Pharma Ireland Limited entered into an agreement with Amneal Pharmaceuticals to distribute an authorized generic version of VIVITROL® in the U.S., contingent on certain launch conditions. Additionally, in August and September 2025, Alkermes filed patent infringement lawsuits against Teva, Apotex, and MSN following their attempts to market generic versions of LYBALVI® before patent expiration, triggering FDA approval stays under the Hatch-Waxman Act.

Alkermes Appoints Joshua Reed as New CFO

On September 12, 2025, Alkermes plc announced the appointment of Joshua Reed as Senior Vice President and Chief Financial Officer, effective September 15, 2025. Mr. Reed, who brings over 30 years of financial leadership experience in the biotechnology and pharmaceutical sectors, will assume the role of the company’s principal financial officer. His appointment is expected to strengthen Alkermes’ financial strategy and support its long-term growth and innovation goals, as emphasized by CEO Richard Pops.