Alkermes (ALKS) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 16.3
• 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: 3,040,851
• 30 Day Avg. Volume: 2,424,111
• 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: 0.74
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $42.00
• Price Target Upside: 27.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): $1.46B

• Rating: 74 Outperform
• Price Target: $33.00 ▲(0.33% Upside)

Alkermes' overall stock score reflects strong financial performance and a positive outlook from the recent earnings call, which highlighted significant revenue growth and strategic acquisitions. While technical indicators show mixed signals, the company's reasonable valuation and strategic initiatives support a solid investment case.

Positive Factors

Strategic Acquisition

The acquisition of Avadel Pharmaceuticals enhances Alkermes' portfolio with FDA-approved LUMRYZ, accelerating entry into the sleep medicine market and leveraging commercial expertise.

Revenue Growth

Strong revenue growth indicates robust demand for Alkermes' products, supporting long-term financial health and market competitiveness.

Product Portfolio Expansion

Expanding the orexin 2 receptor agonist portfolio positions Alkermes for growth in the CNS disorder market, enhancing its competitive edge.

Negative Factors

Negative Free Cash Flow Growth

Negative free cash flow growth could strain Alkermes' ability to fund operations and investments, potentially impacting long-term financial flexibility.

Increased R&D Expenses

Rising R&D expenses, while necessary for innovation, may pressure margins and require careful management to ensure sustainable profitability.

Decline in Revenue Growth

A decline in revenue growth suggests potential challenges in market penetration or product demand, which could affect future earnings potential.

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 demonstrates strong profitability and financial stability with high margins and low leverage. However, the decline in revenue growth and negative free cash flow growth are areas of concern. Overall, the company is financially sound but should focus on reversing the negative growth trends.

Income Statement

Alkermes shows strong profitability with a high gross profit margin of 85.13% and a net profit margin of 23.15% in the TTM (Trailing-Twelve-Months). However, the revenue growth rate is negative at -0.56%, indicating a decline in revenue. The EBIT and EBITDA margins are healthy, suggesting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.045, indicating low leverage and financial stability. Return on equity is robust at 23.65%, reflecting effective use of equity to generate profits. The equity ratio is strong, suggesting a solid financial foundation.

Cash Flow

Operating cash flow to net income ratio is slightly above 1, indicating good cash conversion. However, free cash flow growth is negative at -36%, which could be a concern. The free cash flow to net income ratio is high at 92.10%, showing strong cash generation relative to net income.

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	1.28B	1.31B	1.41B	893.73M	976.43M	860.44M
EBITDA	450.15M	494.86M	519.48M	59.77M	177.60M	-6.02M
Net Income	348.45M	367.07M	355.76M	-158.27M	-48.17M	-110.86M
Balance Sheet
Total Assets	2.25B	2.06B	2.14B	1.96B	2.02B	1.95B
Cash, Cash Equivalents and Short-Term Investments	521.20M	751.67M	773.49M	608.47M	536.31M	635.03M
Total Debt	72.68M	75.54M	372.19M	379.44M	416.21M	410.16M
Total Liabilities	628.23M	590.59M	933.54M	920.23M	911.90M	882.75M
Stockholders Equity	1.62B	1.46B	1.20B	1.04B	1.11B	1.07B
Cash Flow
Free Cash Flow	479.84M	405.64M	353.31M	-17.21M	72.69M	40.62M
Operating Cash Flow	521.00M	439.12M	401.35M	21.04M	101.72M	82.84M
Investing Cash Flow	-143.32M	-111.31M	53.36M	-64.54M	-66.20M	-11.48M
Financing Cash Flow	-391.63M	-494.14M	-289.71M	-1.57M	29.07M	-2.17M

Alkermes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 32.89 is above the 20-day moving average (MA) of 31.03, above the 50-day MA of 29.80, and above the 200-day MA of 30.34, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALKS.

Alkermes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	80 Outperform	$5.74B	29.69	19.66%	―	54.51%	275.94%
ALKS	74 Outperform	$5.43B	16.27	22.35%	―	1.08%	3.40%
PTCT	74 Outperform	$5.76B	8.39	―	―	97.54%	―
TGTX	65 Neutral	$5.12B	11.61	111.96%	―	100.88%	―
MRUS	52 Neutral	$7.22B	―	-51.57%	―	57.54%	-36.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRSP	41 Neutral	$5.01B	―	-25.34%	―	-81.18%	-69.19%

Alkermes Corporate Events

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.

Alkermes Reports Strong Q2 2025 Financial Results

Alkermes plc is a global biopharmaceutical company focused on developing innovative medicines in the field of neuroscience, with a portfolio targeting alcohol dependence, opioid dependence, schizophrenia, and bipolar I disorder, as well as a pipeline for neurological disorders like narcolepsy.

Alkermes Earnings Call: Strong Growth and Promising Trials

The recent earnings call for Alkermes plc was marked by a generally positive sentiment, driven by strong financial performance and promising clinical trial results. Despite some challenges, such as increased R&D expenses and concerns over cataplexy data, the overall outlook remains optimistic due to the company’s financial strength and clinical advancements.