Alkermes plc ((ALKS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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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.
Strong Third Quarter Performance
Alkermes delivered an impressive third quarter, reporting total revenues of $394.2 million and net sales of $317.4 million. This reflects a 16% year-over-year growth, underscoring the company’s strong market performance and effective business strategies.
Raised Financial Guidance for 2025
The company has raised its full-year 2025 guidance, now expecting total revenues between $1.43 billion and $1.49 billion. GAAP net income is projected to be between $230 million and $250 million, with adjusted EBITDA anticipated to range from $365 million to $385 million, indicating confidence in sustained business momentum.
Acquisition of Avadel Pharmaceuticals
Alkermes announced its intention to acquire Avadel Pharmaceuticals, aiming to diversify its commercial portfolio and enhance profitability. The acquisition includes the FDA-approved LUMRYZ, which is expected to generate $265-$275 million in net revenue in 2025.
Proprietary Products Performance
The company’s proprietary products showed strong performance, with VIVITROL net sales reaching $121.1 million, ARISTADA $98.1 million, and LYBALVI $98.2 million. Notably, LYBALVI demonstrated a 32% year-over-year growth, highlighting its increasing market acceptance.
Expansion of Orexin 2 Receptor Agonist Portfolio
Alkermes is making significant strides in its orexin 2 receptor agonist portfolio, led by alixorexton. The portfolio is advancing rapidly, with positive Phase II data for narcolepsy type 1 and plans for a global Phase III program.
Increased R&D Expenses
The company reported an increase in R&D expenses to $81.7 million, up from $59.9 million in Q3 last year. This rise reflects investments in the Vibrance Phase II studies and new orexin 2 receptor agonist candidates, indicating a commitment to innovation and development.
Increased SG&A Expenses
SG&A expenses rose to $171.8 million compared to $150.4 million in Q3 last year. This increase was driven by the expansion of the psychiatry field organization and promotional activities, supporting the company’s growth initiatives.
Forward-Looking Guidance
Alkermes’ updated guidance for 2025 reflects a strong confidence in its business trajectory. The company anticipates total revenues between $1.43 billion and $1.49 billion, with GAAP net income ranging from $230 million to $250 million. EBITDA is expected to be between $270 million and $290 million, and adjusted EBITDA from $365 million to $385 million. This optimistic outlook is supported by strong Q3 results and the performance of key products like VIVITROL, ARISTADA, and LYBALVI.
In conclusion, Alkermes plc’s Q3 2025 earnings call highlights a period of strong financial performance and strategic growth initiatives. The acquisition of Avadel Pharmaceuticals and advancements in the orexin 2 receptor agonist portfolio are poised to enhance the company’s market position. Despite increased expenses, the overall sentiment remains positive, with raised financial guidance underscoring confidence in future growth.