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Alkermes (ALKS)
NASDAQ:ALKS

Alkermes (ALKS) AI Stock Analysis

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Alkermes

(NASDAQ:ALKS)

Rating:78Outperform
Price Target:
$35.00
▲(12.18%Upside)
Alkermes benefits from strong financial fundamentals, positive earnings call insights, and supportive corporate events. Technicals are stable but not overly bullish, and valuation metrics are fair. The main risks are revenue growth consistency and market dependency.
Positive Factors
Drug Development
ALKS 2680's upcoming Phase 2b is largely de-risked based on Phase 1b and can support a competitive profile that brings patients to normal range of wakefulness on efficacy with acceptable safety.
Market Position
ALKS is one of the early movers in the narcolepsy treatment market, which is a potential multi-billion dollar category, reflecting a positive outlook for its stock value.
Negative Factors
Competitive Risks
Competitive risks remain given there are two mid-to-late stage orexin competitors and there is not yet a clear handle on ALKS2680’s safety profile on chronic dosing.
Financial Performance
Net revenue of $307M was a little lower than consensus ($310M).

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

Alkermes Business Overview & Revenue Model

Company DescriptionAlkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; VIVITROL for the treatment of alcohol and prevention of opioid dependence; RISPERDAL CONSTA for the treatment of schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia and schizoaffective disorder; XEPLION, INVEGA TRINZA, and TREVICTA to treat schizophrenia and schizoaffective; and VUMERITY for the treatment of relapsing forms of multiple sclerosis in adults, including clinically isolated syndrome, relapsing-remitting and active secondary progressive diseases. The company is also developing LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder; and nemvaleukin alfa, an engineered fusion protein to expand tumor-killing immune cells and to avoid the activation of immunosuppressive cells. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.
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: 8.45%|
Next Earnings Date:Jul 23, 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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.51B1.56B1.66B1.11B1.17B1.04B
Gross Profit
1.33B1.31B1.41B893.73M976.43M860.44M
EBIT
391.12M420.64M414.12M-6.09M97.75M-112.43M
EBITDA
447.71M494.86M519.48M59.77M177.60M-6.02M
Net Income Common Stockholders
352.71M367.07M355.76M-158.27M-48.17M-110.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
399.81M751.67M773.49M740.08M765.74M659.81M
Total Assets
2.08B2.06B2.14B1.96B2.02B1.95B
Total Debt
74.10M75.54M372.19M293.27M295.80M274.96M
Net Debt
-325.70M-215.61M-85.28M797.00K-41.74M2.00M
Total Liabilities
570.39M590.59M933.54M920.23M911.90M882.75M
Stockholders Equity
1.51B1.46B1.20B1.04B1.11B1.07B
Cash FlowFree Cash Flow
481.57M405.64M353.31M-17.21M72.69M40.62M
Operating Cash Flow
516.83M439.12M401.35M21.04M101.72M82.84M
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
Positive
Last Price31.20
Price Trends
50DMA
29.86
Positive
100DMA
31.63
Negative
200DMA
30.04
Positive
Market Momentum
MACD
0.27
Negative
RSI
54.31
Neutral
STOCH
54.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKS, the sentiment is Positive. The current price of 31.2 is above the 20-day moving average (MA) of 30.86, above the 50-day MA of 29.86, and above the 200-day MA of 30.04, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$5.12B14.8625.71%-12.31%-17.53%
71
Outperform
$3.99B33.6213.90%247.53%118.34%
58
Neutral
$5.86B-118.53%-7.65%-11.81%
56
Neutral
$3.84B19.61-23.61%59.15%-1881.09%
55
Neutral
$5.41B-282.16%72.16%9.65%
54
Neutral
$5.38B3.40-45.06%3.28%16.75%-0.02%
50
Neutral
$8.28B-47.71%99.19%48.43%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALKS
Alkermes
31.20
6.39
25.76%
IONS
Ionis Pharmaceuticals
36.19
-4.93
-11.99%
SRPT
Sarepta Therapeutics
37.81
-87.19
-69.75%
BPMC
Blueprint Medicines
127.95
21.56
20.27%
AXSM
Axsome Therapeutics
108.08
35.57
49.06%
KRYS
Krystal Biotech
139.62
-43.10
-23.59%

Alkermes Corporate Events

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.