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Alkermes
(NASDAQ:ALKS)
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Rating:56Neutral
Price Target:
$52.00
▼(-1.68% Downside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by a mixed financial profile: profitability has weakened sharply in the latest TTM and leverage rose materially, even though free cash flow remains positive. Technicals are moderately supportive longer-term (above key medium/long moving averages) but weaker near-term (below the 20-day). Valuation is a key drag due to the very high P/E, partially offset by a generally constructive earnings call featuring strong sales momentum and maintained guidance alongside acknowledged margin and cost pressures.
Positive Factors
Proprietary product sales growth
Sustained proprietary sales growth (+34% YoY) indicates durable commercial momentum across multiple franchises. That expands recurring, higher-margin revenue, supports scale for marketing and access investments, and reduces short-term reliance on volatile partner manufacturing revenues.
Negative Factors
Rising leverage
A sudden jump in leverage to ~0.87 materially reduces financial flexibility and heightens sensitivity to interest costs and covenants. This constrains capital allocation, increases refinancing risk, and can limit ability to opportunistically fund pipeline investments or M&A without further dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary product sales growth
Sustained proprietary sales growth (+34% YoY) indicates durable commercial momentum across multiple franchises. That expands recurring, higher-margin revenue, supports scale for marketing and access investments, and reduces short-term reliance on volatile partner manufacturing revenues.
Read all positive factors
Alkermes (ALKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.22B
Dividend YieldN/A
Average Volume (3M)2.23M
Price to Earnings (P/E)121.6
Beta (1Y)0.71
Revenue Growth10.79%
EPS Growth-81.14%
CountryUS
Employees2,050
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.40
Shares Outstanding167,763,280
10 Day Avg. Volume1,520,631
30 Day Avg. Volume2,234,059
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$57.46Price Target Upside8.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.39
Revenue Forecast (FY)$1.82B
Alkermes Business Overview & Revenue Model
Company Description
Alkermes plc, a biopharmaceutical company, engages in the research, development, and commercialization of pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. T...
How the Company Makes Money
Alkermes makes money primarily through (1) net product sales of its proprietary, commercial medicines and (2) revenue derived from its legacy manufacturing/technology and royalty activities related to third-party products. Product revenue is gener...
Alkermes Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum and meaningful clinical progress, particularly across the orexin franchise and the successful integration of Avadel/LUMRYZ. Key revenue and access wins (proprietary sales +34% YoY, LYBALVI access >80%, LUMRYZ patient growth +25% YoY) and robust pipeline readouts (alixorexton LTE durability, Positive LUMRYZ Phase 3, multiple orexin programs advancing) underpin optimism. Offsetting items include margin pressure from expanding gross-to-net (LYBALVI), a substantial increase in R&D and SG&A tied to pipeline advancement and acquisition integration, a contingent consideration charge that pushes the GAAP loss guidance negative, and competitive/pricing uncertainty from other orexin entrants. Overall, the positive commercial and clinical developments outweigh the cost and near-term margin headwinds.Positive Updates
Strong Proprietary Product Sales Growth
Net sales from the proprietary product portfolio increased 34% year-over-year to $411.7M in Q2 2026, driven by psychiatry, addiction and the first full quarter contribution from LUMRYZ.
Negative Updates
Gross-to-Net Expansion Pressure (LYBALVI)
LYBALVI Q2 gross-to-net adjustments were ~36% (expected to expand into the high 30s for the full year), which will compress near-term net margins despite access gains intended to drive long-term volume growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Proprietary Product Sales Growth
Net sales from the proprietary product portfolio increased 34% year-over-year to $411.7M in Q2 2026, driven by psychiatry, addiction and the first full quarter contribution from LUMRYZ.
Read all positive updates
Company Guidance
Alkermes reiterated most of its 2026 guidance and gave Q3 ranges and product-level targets: Q3 total revenues $450–470M and Q3 net sales from the four proprietary products (excluding certain GTN benefits and a ~$7M LUMRYZ inventory timing benefit) $390–410M; Q3 COGS $85–95M, R&D $120–130M, SG&A $215–225M, and adjusted EBITDA $80–100M. Full‑year 2026 product guidance remains VIVITROL $460–480M, ARISTADA $365–385M, LYBALVI $380–400M (Q2 LYBALVI net sales $94M, TRx +18% YoY, Q2 gross‑to‑net ~36% and expected to expand to the high‑30s full year), and LUMRYZ total $350–370M (Alkermes to record $315–335M). Q2 results driving these outlooks were: total revenues $496M, proprietary product net sales $411.7M (+34% YoY), manufacturing & royalty revenues $84.3M (VUMERITY $30.6M; long‑acting INVEGA $27.5M; CONSTA $20.9M), COGS $98.1M, R&D $112.9M, SG&A $217.6M, amortization $22.6M, net interest $20.6M, change in fair value of contingent consideration $26.4M, GAAP net income $0.5M, EBITDA $49M, adjusted EBITDA $139.2M, and approximately $690M of cash and investments. For the full year they updated GAAP net loss to $95–115M and now expect positive EBITDA of $75–95M.Alkermes Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
45
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67B | 1.48B | 1.56B | 1.66B | 1.11B | 1.17B |
| Gross Profit | 1.41B | 1.28B | 1.31B | 1.41B | 893.73M | 976.43M |
| EBITDA | 218.04M | 330.89M | 494.86M | 519.48M | 59.77M | 177.60M |
| Net Income | 66.12M | 241.66M | 367.07M | 355.76M | -158.27M | -48.17M |
Balance Sheet | ||||||
| Total Assets | 4.39B | 2.53B | 2.06B | 2.14B | 1.96B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 656.58M | 1.32B | 751.67M | 773.49M | 608.47M | 536.31M |
| Total Debt | 1.57B | 70.00M | 75.54M | 372.19M | 379.44M | 416.21M |
| Total Liabilities | 2.58B | 710.96M | 590.59M | 933.54M | 920.23M | 911.90M |
| Stockholders Equity | 1.81B | 1.82B | 1.46B | 1.20B | 1.04B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 221.65M | 480.33M | 405.64M | 353.31M | -17.21M | 72.69M |
| Operating Cash Flow | 251.18M | 520.75M | 439.12M | 401.35M | 21.04M | 101.72M |
| Investing Cash Flow | -1.76B | 295.50M | -111.31M | 53.36M | -64.54M | -66.20M |
| Financing Cash Flow | 1.50B | 12.38M | -494.14M | -289.71M | -1.57M | 29.07M |
Alkermes Technical Analysis
Positive
52.89
Price Trends
48.23
Positive
40.76
Positive
35.67
Positive
Market Momentum
0.18
Positive
47.08
Neutral
27.94
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 52.89 is above the 20-day moving average (MA) of 51.65, above the 50-day MA of 48.23, and above the 200-day MA of 35.67, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.94 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.06B | 44.02 | 19.25% | ― | 25.15% | 79.56% | |
70 Outperform | $7.96B | 16.36 | 87.36% | ― | 81.26% | 1079.73% | |
56 Neutral | $8.22B | 121.56 | 3.72% | ― | 10.79% | -81.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $5.68B | -137.67 | 21.72% | ― | -42.84% | -106.21% | |
46 Neutral | $4.63B | -7.72 | -30.88% | ― | -89.11% | -37.55% |
* Healthcare Sector Average
ALKS
Alkermes
49.61
23.06
86.85%
PTCT
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69.21
17.85
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TGTX
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49.88
22.18
80.07%
CRSP
Crispr Therapeutics AG
52.45
-3.89
-6.90%
KRYS
Krystal Biotech
325.78
189.78
139.54%
Alkermes Corporate Events
Business Operations and Strategy
Alkermes Ends Generic VIVITROL Supply Agreement with Amneal
Neutral
Jul 8, 2026
On July 6, 2026, Alkermes and Amneal Pharmaceuticals terminated their Authorized Generic Product Supply Agreement covering a generic version of VIVITROL, originally signed on September 9, 2025. The deal had allowed Amneal to distribute a limited q...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Alkermes Gains Orphan Status For Sleep Disorder Therapy
Positive
Jun 15, 2026
On June 15, 2026, Alkermes announced that alixorexton, its investigational oral selective orexin 2 receptor agonist for narcolepsy type 1, narcolepsy type 2 and idiopathic hypersomnia, received orphan drug designation from the U.S. FDA for idiopat...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Alkermes Shareholders Approve Amended Stock Incentive Plan
Positive
May 20, 2026
At its annual general meeting on May 20, 2026, Alkermes shareholders approved amendments to the company’s 2018 Stock Option and Incentive Plan, increasing the ordinary shares authorized for issuance under the plan by 5.9 million and formally...
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 ...
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.