Alkermes (ALKS) AI Stock Analysis

• Market Cap: $4.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.68
• 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: 1,891,326
• 30 Day Avg. Volume: 2,820,925
• 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: 0.84
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $44.50
• Price Target Upside: 53.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): $1.47B

• Rating: 74 Outperform
• Price Target: $35.00 ▲(21.11% Upside)

Alkermes' strong financial performance and positive earnings call are the primary drivers of its stock score. The company's strategic acquisition and raised guidance reflect confidence in future growth. Technical indicators support a positive trend, while valuation remains reasonable. Increased expenses are a minor concern but are outweighed by the company's growth prospects.

Positive Factors

Strong Profitability

High profit margins indicate efficient operations and pricing power, contributing to long-term financial stability and competitive advantage.

Strategic Acquisition

The acquisition enhances Alkermes' product portfolio and market position, potentially increasing revenue streams and market share.

Product Pipeline Expansion

Advancements in the orexin 2 receptor agonist portfolio could lead to new product launches, driving future growth and market expansion.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in market demand or competition, potentially impacting long-term growth prospects.

Increased R&D Expenses

Rising R&D costs may pressure margins if not offset by successful product development, affecting profitability and cash flow.

Negative Free Cash Flow Growth

Negative free cash flow growth can limit financial flexibility and investment capacity, impacting the company's ability to fund future growth.

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 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 Money

Alkermes generates revenue primarily through the sale of its proprietary products, including Vivitrol and Aristada, which are marketed directly to healthcare providers and patients. The company also earns revenue from royalties and milestone payments associated with its collaborations with other pharmaceutical companies. Key partnerships and collaborations enhance its revenue streams, allowing Alkermes to share development costs and access additional markets. Additionally, Alkermes invests in research and development to expand its product offerings, which can lead to new revenue opportunities through the commercialization of new therapies.

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: 28.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 28.9 is below the 20-day moving average (MA) of 30.18, below the 50-day MA of 30.29, and below the 200-day MA of 30.18, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 62.62 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
KRYS	80 Outperform	$6.32B	32.70	19.66%	―	54.51%	275.94%
ALKS	74 Outperform	$4.77B	14.30	22.35%	―	1.08%	3.40%
PTCT	73 Outperform	$6.90B	10.05	―	―	97.54%	―
TGTX	65 Neutral	$5.03B	11.40	111.96%	―	100.88%	―
MRUS	52 Neutral	$7.29B	―	-51.57%	―	57.54%	-36.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRSP	40 Underperform	$5.10B	―	-25.33%	―	-81.10%	-99.21%

Alkermes Corporate Events

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.

The most recent analyst rating on (ALKS) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

Alkermes’ Acquisition of Avadel Faces Uncertainty Amid Regulatory and Financial Hurdles

Alkermes plc faces significant risks regarding its proposed acquisition of Avadel, which may not be completed within the anticipated timeline or at all. The acquisition is contingent upon several conditions, including shareholder approval, court sanction, and regulatory clearances, which may encounter delays or obstacles. Additionally, unforeseen costs, liabilities, or competing offers could further complicate the process. Any disruption or failure in completing the acquisition could adversely impact Alkermes’ business operations, financial condition, and market share value.

Alkermes plc Reports Strong Q3 2025 Results

Alkermes plc is a global biopharmaceutical company specializing in the development of innovative medicines for neurological disorders, including treatments for alcohol dependence, opioid dependence, schizophrenia, and bipolar I disorder. The company is headquartered in Ireland with additional facilities in Massachusetts and Ohio.

Alkermes Q3 2025 Earnings: Strong Growth & Strategic Moves

Alkermes plc’s recent earnings call for Q3 2025 paints a picture of robust financial health and strategic growth. The company reported significant revenue growth and has raised its financial guidance for the year. The acquisition of Avadel Pharmaceuticals is highlighted as a strategic move to bolster Alkermes’ portfolio and market position. Despite some concerns over increased R&D and SG&A expenses, the overall sentiment remains positive, buoyed by promising advancements in the orexin 2 receptor agonist portfolio.

Alkermes Advances in Sleep Disorder Treatment with ALKS 2680 Study

Alkermes plc is conducting a clinical study titled ‘A Phase 2, Randomized, Parallel-Group, Double-Blind, Dose-Range-Finding Study to Evaluate the Safety and Efficacy of ALKS 2680 in Subjects With Idiopathic Hypersomnia (Vibrance-3).’ The study aims to assess the safety and effectiveness of ALKS 2680 in reducing daytime sleepiness in individuals with Idiopathic Hypersomnia, a condition characterized by excessive daytime sleepiness.

Alkermes’ ALKS 2680 Study: A Promising Step in Sleep Disorder Treatment

Alkermes plc is conducting a long-term clinical study titled An Open-Label, Long-Term Extension Study to Investigate the Safety, Tolerability, and Durability of Treatment Effect of ALKS 2680 in Subjects With Narcolepsy Type 1 and Type 2 and Idiopathic Hypersomnia. The study aims to evaluate the safety and effectiveness of ALKS 2680 in treating Narcolepsy Type 1, Narcolepsy Type 2, and Idiopathic Hypersomnia, conditions that significantly impact sleep and daily functioning.

Alkermes’ ENLIGHTEN-Youth Study: A Potential Game-Changer in Pediatric Antipsychotic Treatment

Alkermes plc is conducting a Phase 3 clinical study titled ‘ENLIGHTEN-Youth’ to evaluate weight gain in pediatric patients with schizophrenia or bipolar I disorder. The study aims to compare changes in BMI Z-score between treatments with OLZ/SAM, a combination of olanzapine and samidorphan, and olanzapine alone. This research is significant as it addresses weight management, a common side effect of antipsychotic treatments in young patients.

Alkermes’ Pediatric Study on OLZ/SAM: A Long-term Safety Evaluation

Alkermes plc is conducting a long-term safety extension study titled ‘Long-term, Safety Extension Study of OLZ/SAM in Pediatric Subjects With Schizophrenia or Bipolar I Disorder.’ The study aims to evaluate the long-term safety and tolerability of the drug OLZ/SAM in pediatric patients diagnosed with schizophrenia or Bipolar I disorder. This research is significant as it addresses the need for safe, long-term treatment options for these conditions in younger populations.

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.

The most recent analyst rating on (ALKS) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

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.

The most recent analyst rating on (ALKS) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

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.

The most recent analyst rating on (ALKS) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.

Alkermes Announces Positive Phase 2 Study Results

On September 8, 2025, Alkermes announced positive results from its Vibrance-1 phase 2 study of alixorexton, an investigational treatment for narcolepsy type 1, at the World Sleep Congress. The study demonstrated significant improvements in wakefulness, cognition, and fatigue, with alixorexton being well tolerated across all doses. These findings highlight the potential of alixorexton as a new treatment option for narcolepsy type 1, supporting Alkermes’ position in the field of neuroscience and orexin-targeted therapies.

The most recent analyst rating on (ALKS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.