Alkermes (ALKS) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.81
• Revenue Growth: -0.17%
• EPS Growth: 23.84%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.67
• Shares Outstanding: 165,077,970
• 10 Day Avg. Volume: 2,002,633
• 30 Day Avg. Volume: 1,932,038
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $40.43
• Price Target Upside: 44.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $32.00 ▲(14.74% Upside)

Alkermes' overall stock score is driven by strong financial performance and a positive earnings call, highlighting robust growth and profitability. Technical analysis presents some caution with bearish trends, but valuation remains reasonable, supporting a favorable outlook.

Positive Factors

Strong Financial Performance

The 14% YoY growth in proprietary product sales indicates strong market demand and effective commercialization strategies, supporting long-term revenue stability.

Strong Cash Position

A robust cash position enhances Alkermes' ability to invest in R&D, pursue strategic acquisitions, and withstand market fluctuations, securing its growth trajectory.

Growth in Proprietary Product Portfolio

The growth in key products like VIVITROL and LYBALVI highlights successful market penetration and product adoption, reinforcing Alkermes' competitive position in the CNS disorder market.

Negative Factors

Increased R&D Expenses

Rising R&D costs, while necessary for innovation, can pressure short-term profitability and require sustained revenue growth to justify long-term investment returns.

Mixed Cataplexy Endpoint Results

Variability in clinical trial results could delay product development timelines and impact future revenue streams if further trials are inconclusive.

Revenue Growth Fluctuations

Inconsistent revenue growth may indicate challenges in market expansion or product adoption, potentially affecting long-term financial stability and investor confidence.

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 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 shows strong financial performance with high profitability margins and efficient operations. The balance sheet is robust with low leverage and strong equity, while cash flow metrics indicate excellent cash generation capabilities.

Income Statement

Alkermes shows strong financial performance with a high gross profit margin of 87.63% and a net profit margin of 23.29% for the TTM (Trailing-Twelve-Months), indicating efficient cost management and profitability. The revenue growth shows fluctuations, with a decline of 2.82% from the previous year, raising some concerns about consistent revenue expansion. EBIT and EBITDA margins are robust at 25.83% and 29.57% respectively, reflecting solid operational efficiency.

Balance Sheet

The company's balance sheet reveals a strong equity position with an equity ratio of 72.61%, showing financial stability. The debt-to-equity ratio is low at 0.05, indicating minimal leverage and reduced financial risk. Return on Equity (ROE) is impressive at 23.33%, reflecting effective use of shareholders' equity to generate profits. Overall, the balance sheet is well-positioned with low debt and strong equity.

Cash Flow

Alkermes demonstrates a robust cash flow position with a significant free cash flow growth rate of 18.73% and a strong operating cash flow to net income ratio of 1.47, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also high at 1.37, reflecting a strong ability to convert profits into cash. The cash flow statements highlight healthy liquidity and operational cash generation capabilities.

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	1.33B	1.31B	1.41B	893.73M	976.43M	860.44M
EBITDA	447.71M	494.86M	519.48M	59.77M	177.60M	-6.02M
Net Income	352.71M	367.07M	355.76M	-158.27M	-48.17M	-110.86M
Balance Sheet
Total Assets	2.08B	2.06B	2.14B	1.96B	2.02B	1.95B
Cash, Cash Equivalents and Short-Term Investments	399.81M	751.67M	773.49M	608.47M	536.31M	635.03M
Total Debt	74.10M	75.54M	372.19M	379.44M	416.21M	410.16M
Total Liabilities	570.39M	590.59M	933.54M	920.23M	911.90M	882.75M
Stockholders Equity	1.51B	1.46B	1.20B	1.04B	1.11B	1.07B
Cash Flow
Free Cash Flow	481.57M	405.64M	353.31M	-17.21M	72.69M	40.62M
Operating Cash Flow	516.83M	439.12M	401.35M	21.04M	101.72M	82.84M
Investing Cash Flow	-62.26M	-111.31M	53.36M	-64.54M	-66.20M	-11.48M
Financing Cash Flow	-475.52M	-494.14M	-289.71M	-1.57M	29.07M	-2.17M

Alkermes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.89
• 50DMA: Positive
• 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 Neutral. The current price of 27.89 is below the 20-day moving average (MA) of 28.07, above the 50-day MA of 27.85, and below the 200-day MA of 30.14, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALKS.

Alkermes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	78 Outperform	4.86B	34.14	14.10%	―	116.09%	35.29%
ALKS	77 Outperform	$4.59B	13.02	23.94%	―	-0.17%	23.84%
TGTX	69 Neutral	5.63B	94.87	10.52%	―	30.96%	-38.30%
MRUS	62 Neutral	5.21B	-12.44	-45.80%	―	59.77%	-92.92%
PTCT	58 Neutral	4.69B	8.46	-304.62%	―	96.00%	―
CRSP	49 Neutral	5.61B	-11.37	-18.96%	―	-81.18%	-69.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Alkermes Corporate Events

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.

Alkermes Announces Positive Phase 2 Study Results

On July 21, 2025, Alkermes announced positive topline results from its Vibrance-1 phase 2 study, which evaluated the safety and efficacy of alixorexton in patients with narcolepsy type 1. The study demonstrated that alixorexton significantly improved wakefulness and patient-reported outcomes related to disease severity, fatigue, and cognition compared to placebo. These results support the advancement of alixorexton to phase 3 development, highlighting its potential as a transformative treatment in the narcolepsy market.