Alkermes (ALKS) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.85
• Revenue Growth: -12.31%
• EPS Growth: -17.53%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): 0.27
• Shares Outstanding: 164,901,290
• 10 Day Avg. Volume: 2,170,012
• 30 Day Avg. Volume: 1,932,882
• PEG Ratio: -0.12
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -248.29
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 2.16
• 1Y Price Target: $41.50
• Price Target Upside: 56.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Alkermes (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 Money

Alkermes 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 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

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	740.08M	765.74M	659.81M
Total Debt	74.10M	75.54M	372.19M	293.27M	295.80M	274.96M
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: Negative
• Last Price: 26.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	81 Outperform	$4.33B	36.12	13.90%	―	247.53%	118.34%
ALKS	73 Outperform	$4.37B	12.63	25.71%	―	-12.31%	-17.53%
Sector *	60 Neutral	HK$17.07B	6.10	-7.44%	2.88%	11.55%	-28.15%
IONS	58 Neutral	$6.75B	―	-118.53%	―	-7.65%	-11.81%
AXSM	54 Neutral	$5.24B	―	-282.16%	―	72.16%	9.65%
SRPT	47 Neutral	$1.27B	19.61	-23.61%	―	59.15%	-1881.09%

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.

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.

Alkermes Shareholders Approve Amendments at Annual Meeting

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.