Alkermes (ALKS)
NASDAQ:ALKS
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Alkermes
(NASDAQ:ALKS)
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Rating:66Neutral
Price Target:
$29.00
▼(-17.99% Downside)
Action:ReiteratedDate:02/26/26
The score is driven by a strong balance sheet and solid profitability, plus constructive 2026 outlook and strategy from the latest earnings call. It is tempered by the sharp drop in TTM cash generation and weak near-term technicals, with valuation appearing only moderate and no dividend support.
Positive Factors
Very low leverage / strong balance sheet
Extremely low leverage and a built-up equity base provide durable financial flexibility to fund R&D, integrate acquisitions, and support commercial operations. Over a 2–6 month horizon this reduces refinancing risk, preserves capacity for opportunistic investments, and cushions payer or product volatility.
Negative Factors
Sharp deterioration in cash generation
A sudden decline to near‑zero operating and free cash flow weakens the company's ability to self-fund operations and repay acquisition financing. Even with strong margins, poor cash conversion raises risks around working capital management, timing mismatches, and reduced optionality for non-dilutive investments over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low leverage and a built-up equity base provide durable financial flexibility to fund R&D, integrate acquisitions, and support commercial operations. Over a 2–6 month horizon this reduces refinancing risk, preserves capacity for opportunistic investments, and cushions payer or product volatility.
Read all positive factors
Alkermes (ALKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.89B
Dividend YieldN/A
Average Volume (3M)2.30M
Price to Earnings (P/E)19.1
Beta (1Y)0.76
Revenue Growth1.08%
EPS Growth3.40%
CountryUS
Employees1,800
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.29
Shares Outstanding166,649,930
10 Day Avg. Volume2,514,030
30 Day Avg. Volume2,304,132
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 Cap0.81
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda14.48
Forecast
1Y Price Target
$44.00Price Target Upside24.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.35
Revenue Forecast (FY)$1.79B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive outlook driven by strong 2025 commercial performance (9% growth in proprietary portfolio), solid profitability and cash position, strategic acquisition of Avadel to enter sleep medicine (LUMRIZE), and clear pipeline momentum (elixorexant breakthrough designation and Phase 3 start). Key near‑term headwinds are acquisition accounting effects (inventory step‑up and amortization) producing an expected GAAP loss in 2026, materially higher R&D and SG&A to fund growth and integration, and financing‑related interest expense and debt. Management provided detailed 2026 guidance showing healthy adjusted EBITDA and revenue expansion, while acknowledging payer/competitive risks in the oxybate market and potential VIVITROL dynamics in 2027.Positive Updates
Strong 2025 Revenue and Proprietary Product Growth
Total 2025 revenues nearly $1,500,000,000; proprietary product portfolio net sales ~ $1,200,000,000, up 9% year‑over‑year; proprietary product sales for the year noted as $1,180,000,000.
Negative Updates
Increased R&D Investment and Expense Pressure
R&D expenses rose to $324,000,000 in 2025 from $245,300,000 in 2024 and are guided higher to $445,000,000–$485,000,000 in 2026 to support elixorexant Phase 3 and advancement of orexin portfolio.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong 2025 Revenue and Proprietary Product Growth
Total 2025 revenues nearly $1,500,000,000; proprietary product portfolio net sales ~ $1,200,000,000, up 9% year‑over‑year; proprietary product sales for the year noted as $1,180,000,000.
Read all positive updates
Company Guidance
Alkermes provided detailed 2026 guidance expecting total revenues of $1.73–1.84 billion (with proprietary product net sales $1.52–1.60 billion and manufacturing & royalty revenues $210–240 million) and adjusted EBITDA of $370–410 million (company also noted an earlier statement of >$370M); full‑year assumptions include COGS $365–385 million (reflecting a ~$180M Loomrise inventory fair‑value step up, ~ $150M of which will be expensed as inventory is sold in 2026), R&D $445–485 million, SG&A $890–930 million (including $50 million of transaction costs), amortization $95–105 million, net interest $75–85 million and a net tax benefit of ~ $20 million, resulting in an expected GAAP net loss of $115–135 million and EBITDA of $60–90 million; Q1 2026 guidance: proprietary net sales $310–330 million, total revenues $405–450 million, COGS up ~ $20 million sequentially, R&D $110–125 million, SG&A $230–250 million (including ~ $40 million of one‑time transaction costs) and Q1 adjusted EBITDA $30–50 million. They also reported year‑end cash & investments of $1.3 billion, used ~$775 million cash and funded the Avadel acquisition with a $1.525 billion term loan due 2031.Alkermes Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.48B | 1.56B | 1.66B | 1.11B | 1.17B |
| Gross Profit | 1.27B | 1.31B | 1.41B | 893.73M | 976.43M |
| EBITDA | 330.89M | 494.86M | 519.48M | 59.77M | 177.60M |
| Net Income | 241.66M | 367.07M | 355.76M | -158.27M | -48.17M |
Balance Sheet | |||||
| Total Assets | 2.53B | 2.06B | 2.14B | 1.96B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 751.67M | 773.49M | 608.47M | 536.31M |
| Total Debt | 70.00M | 75.54M | 372.19M | 379.44M | 416.21M |
| Total Liabilities | 710.96M | 590.59M | 933.54M | 920.23M | 911.90M |
| Stockholders Equity | 1.82B | 1.46B | 1.20B | 1.04B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 480.33M | 405.64M | 353.31M | -17.21M | 72.69M |
| Operating Cash Flow | 520.75M | 439.12M | 401.35M | 21.04M | 101.72M |
| Investing Cash Flow | 295.50M | -111.31M | 53.36M | -64.54M | -66.20M |
| Financing Cash Flow | 12.38M | -494.14M | -289.71M | -1.57M | 29.07M |
Alkermes Technical Analysis
Positive
35.36
Price Trends
31.33
Positive
30.35
Positive
29.68
Positive
Market Momentum
0.15
Negative
74.02
Negative
86.33
Negative
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 35.36 is above the 20-day moving average (MA) of 28.77, above the 50-day MA of 31.33, and above the 200-day MA of 29.68, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 74.02 is Negative, neither overbought nor oversold. The STOCH value of 86.33 is Negative, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.55B | 34.71 | 18.69% | ― | 54.51% | 275.94% | |
67 Neutral | $5.64B | 8.85 | -362.44% | ― | 97.54% | ― | |
66 Neutral | $5.89B | 19.07 | 14.45% | ― | 1.08% | 3.40% | |
61 Neutral | $5.30B | 9.62 | 101.12% | ― | 100.88% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $4.57B | -8.11 | -31.53% | ― | -81.10% | -99.21% |
* Healthcare Sector Average
ALKS
Alkermes
35.36
3.70
11.69%
PTCT
PTC Therapeutics
68.13
21.40
45.79%
TGTX
TG Therapeutics
33.22
-6.12
-15.56%
CRSP
Crispr Therapeutics AG
47.57
14.91
45.65%
KRYS
Krystal Biotech
258.32
80.19
45.02%
Alkermes Corporate Events
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 ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Alkermes plans Avadel acquisition to expand sleep portfolio
Positive
Jan 12, 2026
In 2025, Alkermes generated more than $1.45 billion in commercial revenues with strong cash flow and profitability and laid out a 2026 plan centered on driving growth in neuroscience and leading innovation in orexin 2 receptor agonists for sleep d...
Business Operations and StrategyProduct-Related Announcements
Alkermes Gains FDA Breakthrough Status for Narcolepsy Drug
Positive
Jan 6, 2026
On January 6, 2026, Alkermes announced that the U.S. Food and Drug Administration granted Breakthrough Therapy designation to alixorexton, its oral, selective orexin 2 receptor agonist, for the treatment of narcolepsy type 1, following encouraging...
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.