Alkermes (ALKS)
NASDAQ:ALKS
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Alkermes
(NASDAQ:ALKS)
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Rating:66Neutral
Price Target:
$38.00
▲(10.05% Upside)
Action:Reiterated
Date:05/12/26
Overall score reflects solid but mixed fundamentals: strong product momentum and upbeat adjusted-EBITDA guidance support the outlook, while a major step-up in leverage and weaker recent free-cash-flow/margin trends increase risk. Technicals are constructive, but valuation is less supportive due to the negative P/E and lack of dividend yield data.
Positive Factors
Diversified Commercial Portfolio & Revenue Growth
Sustained multi-brand strength across VIVITROL, ARISTADA, LYBALVI and the early LUMRYZ launch produced 38% YoY proprietary sales growth. A diversified product base reduces single-product dependency, supports recurring cash generation and underpins steady revenue as launches scale.
Negative Factors
Increased Leverage & Reduced Flexibility
Debt financed the Avadel acquisition, materially raising leverage and interest obligations. Higher net debt reduces financial flexibility for capex, M&A or R&D funding, makes the firm more sensitive to cash‑flow volatility and increases refinancing and covenant risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Commercial Portfolio & Revenue Growth
Sustained multi-brand strength across VIVITROL, ARISTADA, LYBALVI and the early LUMRYZ launch produced 38% YoY proprietary sales growth. A diversified product base reduces single-product dependency, supports recurring cash generation and underpins steady revenue as launches scale.
Read all positive factors
Alkermes (ALKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.38B
Dividend YieldN/A
Average Volume (3M)2.62M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth3.21%
EPS Growth-56.86%
CountryUS
Employees1,800
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.93
Shares Outstanding166,675,810
10 Day Avg. Volume2,096,926
30 Day Avg. Volume2,622,209
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)2.53
Price to Sales (P/S)3.12
P/FCF Ratio9.59
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue4.52
Enterprise Value/Gross Profit5.22
Enterprise Value/Ebitda25.55
Forecast
1Y Price Target
$45.45Price Target Upside31.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)-0.24
Revenue Forecast (FY)$1.81B
Alkermes Business Overview & Revenue Model
Company Description
Alkermes 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 pr...
How the Company Makes Money
Alkermes makes money primarily through (1) product sales of its proprietary, commercial-stage medicines and (2) manufacturing and royalty-based income tied to its technology and supply relationships.
1) Net product revenues (commercial products):...
Alkermes Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial momentum, sizable year-over-year revenue growth (+38% for proprietary products), an encouraging early LUMRYZ launch with meaningful sales and patient growth, a material adjusted EBITDA beat, and clear pipeline progress with Phase III initiation and multiple new programs underway. Offsetting factors include a GAAP net loss and negative GAAP EBITDA in the quarter, elevated R&D and SG&A as programs scale and integration costs are realized, increased leverage and near-term margin pressure from inventory step-up and widening gross-to-net. On balance, the positives (revenue growth, LUMRYZ contribution, adjusted EBITDA beat, improved purchase price accounting and an expanding orexin pipeline) meaningfully outweigh the near-term financial and execution headwinds.Positive Updates
Strong Topline Growth
Net sales from proprietary products increased 38% year-over-year to $338.1 million in Q1 2026, contributing to total revenues of $392.9 million for the quarter.
Negative Updates
GAAP Loss and Negative GAAP EBITDA in the Quarter
Reported a GAAP net loss of $66.5 million and GAAP EBITDA of negative $30.1 million for Q1 2026, reflecting acquisition-related charges and ramping R&D and SG&A.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Topline Growth
Net sales from proprietary products increased 38% year-over-year to $338.1 million in Q1 2026, contributing to total revenues of $392.9 million for the quarter.
Read all positive updates
Company Guidance
Alkermes updated 2026 outlook and Q2 guidance: full‑year revenue is expected to exceed $1.7 billion with adjusted EBITDA greater than $370 million, GAAP net loss of $70–90 million and GAAP EBITDA of $105–135 million; 2026 COGS is now expected at $320–340 million (including an updated LUMRYZ inventory step‑up of ~ $105 million vs prior ~$150M) and intangible amortization of $75–85 million (formerly $95–105M), and no income tax benefit is now expected (prior ~$20M). Product-level guidance is VIVITROL $460–480M, ARISTADA $365–385M, LYBALVI $380–400M, and LUMRYZ total net sales $350–370M (Alkermes to record $315–335M reflecting the mid‑Feb close). Q2 outlook: proprietary portfolio net sales $385–405M (including a full quarter of LUMRYZ), COGS $85–95M, R&D $110–120M, SG&A $210–220M and Q2 adjusted EBITDA $100–120M. Q1 actuals included total revenues $392.9M, proprietary product sales $338.1M, manufacturing/royalty revenue $54.8M, Q1 COGS $61.6M (would be $48.9M net of LUMRYZ step‑up), R&D $103.3M, SG&A $264.6M (including ~$55M one‑time Avadel costs), GAAP net loss $66.5M, EBITDA –$30.1M and adjusted EBITDA $80.3M; Q1 brand detail: VIVITROL $112.4M, ARISTADA $93.8M, LYBALVI $92.4M (TRx +21% y/y; gross‑to‑net ~33%), LUMRYZ ≈$72M for the quarter (≈$39.5M in the first 6 weeks) with ~3,600 patients on therapy, and cash & investments of ≈$538M.Alkermes Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.48B | 1.56B | 1.66B | 1.11B | 1.17B |
| Gross Profit | 1.35B | 1.28B | 1.31B | 1.41B | 893.73M | 976.43M |
| EBITDA | 276.38M | 330.89M | 494.86M | 519.48M | 59.77M | 177.60M |
| Net Income | 152.72M | 241.66M | 367.07M | 355.76M | -158.27M | -48.17M |
Balance Sheet | ||||||
| Total Assets | 4.26B | 2.53B | 2.06B | 2.14B | 1.96B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 511.86M | 1.32B | 751.67M | 773.49M | 608.47M | 536.31M |
| Total Debt | 1.58B | 70.00M | 75.54M | 372.19M | 379.44M | 416.21M |
| Total Liabilities | 2.51B | 710.96M | 590.59M | 933.54M | 920.23M | 911.90M |
| Stockholders Equity | 1.75B | 1.82B | 1.46B | 1.20B | 1.04B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 221.80M | 480.33M | 405.64M | 353.31M | -17.21M | 72.69M |
| Operating Cash Flow | 256.20M | 520.75M | 439.12M | 401.35M | 21.04M | 101.72M |
| Investing Cash Flow | -1.79B | 295.50M | -111.31M | 53.36M | -64.54M | -66.20M |
| Financing Cash Flow | 1.49B | 12.38M | -494.14M | -289.71M | -1.57M | 29.07M |
Alkermes Technical Analysis
Positive
34.53
Price Trends
31.39
Positive
30.75
Positive
29.97
Positive
Market Momentum
1.08
Negative
61.12
Neutral
44.88
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 34.53 is above the 20-day moving average (MA) of 32.38, above the 50-day MA of 31.39, and above the 200-day MA of 29.97, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 44.88 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 44 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $9.15B | 33.82 | 19.25% | ― | 25.15% | 79.56% | |
73 Outperform | $6.51B | 60.65 | 87.36% | ― | 81.26% | 1079.73% | |
66 Neutral | $6.38B | -22.10 | 8.82% | ― | 3.21% | -56.86% | |
56 Neutral | $6.22B | -500.37 | 99.84% | ― | -53.34% | -130.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $5.10B | -9.29 | -30.88% | ― | -89.11% | -37.55% |
* Healthcare Sector Average
ALKS
Alkermes
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Alkermes Corporate Events
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Alkermes Reports Positive Phase 3 Results for LUMRYZ
Positive
May 12, 2026
On May 12, 2026, Alkermes reported positive topline results from its phase 3 REVITALYZ trial of LUMRYZ in adults with idiopathic hypersomnia, showing statistically significant and clinically meaningful improvements in excessive daytime sleepiness ...
Business Operations and StrategyExecutive/Board Changes
Alkermes Announces CEO Succession and Leadership Transition Plan
Positive
Feb 25, 2026
Alkermes plc announced on Feb. 25, 2026 that long-serving Chief Executive Officer Richard Pops will retire from the CEO role on July 31, 2026 after 35 years at the helm, while remaining non-executive chairman and senior advisor through year-end to...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Alkermes Completes Avadel Acquisition, Expands Sleep Medicine Portfolio
Positive
Feb 12, 2026
On Feb. 12, 2026, Alkermes completed its all-cash acquisition of Avadel Pharmaceuticals via an Irish court-approved scheme of arrangement, making Avadel a wholly owned subsidiary. The deal adds FDA‑approved LUMRYZ, an extended‑release ...
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.