Alkermes (ALKS) AI Stock Analysis

• Market Cap: $4.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.85
• Revenue Growth: -0.17%
• EPS Growth: 23.84%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): 0.67
• Shares Outstanding: 165,077,970
• 10 Day Avg. Volume: 1,294,164
• 30 Day Avg. Volume: 1,660,991
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $40.32
• Price Target Upside: 39.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 82 Outperform
• Price Target: $34.00 ▲(17.57% Upside)

Alkermes receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's solid cash position and successful clinical trials support future growth prospects. Technical indicators show positive momentum, though caution is warranted due to potential overbought conditions.

Positive Factors

Financial Performance

Alkermes reported a 14% year-over-year increase in net sales for 2Q, driven by growth demand for all three products and one-time positive gross-to-net adjustments.

Product Potential

Alixorexton demonstrated statistically significant and dose-dependent improvements on MWT compared to placebo, achieving normative wakefulness in NT1 patients.

Sales Performance

Lybalvi sales were about 5% higher than consensus, driven by prescription growth.

Negative Factors

Adverse Effects

There are lingering concerns regarding visual disturbances as a potential adverse effect, which the company did not address in the limited release.

Competitive Environment

It is challenging to understand the value of disclosing a complete dataset vs piecemeal in this competitive environment.

Investor Concerns

Several important questions remain unaddressed which has raised investor concerns on the competitiveness of the profile and resulted in ALKS trading net -6% since the NT1 data was toplined.

Alkermes Business Overview & Revenue Model

Company Description

Alkermes (ALKS) is a biopharmaceutical company focused on developing innovative therapies for central nervous system (CNS) disorders, including addiction and mental health conditions. The company operates primarily in the biopharmaceutical sector and specializes in the commercialization of products designed to treat diseases such as schizophrenia, depression, and opioid dependence. Alkermes' core products include Vivitrol, an injectable medication used to treat opioid and alcohol dependence, and Aristada, an injectable formulation for the treatment of schizophrenia.

How the Company Makes Money

Alkermes generates revenue primarily through the sale of its pharmaceutical products, with Vivitrol and Aristada being key contributors to its revenue streams. The company also earns income through licensing agreements and collaborations with other pharmaceutical companies, which can include upfront payments, milestone payments, and royalties on sales of partnered products. Additionally, Alkermes invests in research and development to create new therapies, which can lead to future revenue through new product launches or expanded indications for existing products. Strategic partnerships with larger pharmaceutical firms enhance its market reach and provide financial support in the form of co-development agreements.

Alkermes Financial Statement Overview

Summary

Alkermes shows strong financial performance with high profitability margins and efficient operations. The balance sheet is robust with low leverage and strong equity, while cash flow metrics indicate excellent cash generation capabilities.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.51B	1.56B	1.66B	1.11B	1.17B	1.04B
Gross Profit	1.33B	1.31B	1.41B	893.73M	976.43M	860.44M
EBITDA	447.71M	494.86M	519.48M	59.77M	177.60M	-6.02M
Net Income	352.71M	367.07M	355.76M	-158.27M	-48.17M	-110.86M
Balance Sheet
Total Assets	2.08B	2.06B	2.14B	1.96B	2.02B	1.95B
Cash, Cash Equivalents and Short-Term Investments	399.81M	751.67M	773.49M	608.47M	536.31M	635.03M
Total Debt	74.10M	75.54M	372.19M	379.44M	416.21M	410.16M
Total Liabilities	570.39M	590.59M	933.54M	920.23M	911.90M	882.75M
Stockholders Equity	1.51B	1.46B	1.20B	1.04B	1.11B	1.07B
Cash Flow
Free Cash Flow	481.57M	405.64M	353.31M	-17.21M	72.69M	40.62M
Operating Cash Flow	516.83M	439.12M	401.35M	21.04M	101.72M	82.84M
Investing Cash Flow	-62.26M	-111.31M	53.36M	-64.54M	-66.20M	-11.48M
Financing Cash Flow	-475.52M	-494.14M	-289.71M	-1.57M	29.07M	-2.17M

Alkermes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.92
• 50DMA: Positive
• 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 Neutral. The current price of 28.92 is above the 20-day moving average (MA) of 28.57, above the 50-day MA of 28.33, and below the 200-day MA of 30.25, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 37.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALKS.

Alkermes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKS	82 Outperform	$4.85B	14.40	23.94%	―	-0.17%	23.84%
KRYS	75 Outperform	$4.31B	30.56	15.61%	―	116.09%	35.29%
IONS	60 Neutral	$9.16B	―	-59.83%	―	16.04%	30.61%
AXSM	58 Neutral	$6.21B	―	-280.68%	―	69.83%	22.16%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
BPMC	50 Neutral		―		―	99.19%	48.43%
SRPT	46 Neutral	$1.77B	19.61	-4.76%	―	64.89%	-221.56%

Alkermes Corporate Events

Alkermes Announces Positive Phase 2 Study Results

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.