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Alkermes
(NASDAQ:ALKS)
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Rating:55Neutral
Price Target:
$44.00
▼(-10.59% Downside)
Action:Reiterated
Date:09/21/26
ALKS scores in the mid-range primarily due to near-term financial pressure (TTM margin/ROE compression and a sudden leverage increase) and weak technical momentum (below key moving averages with negative MACD). These are partly offset by supportive free cash flow generation and a broadly positive earnings-call outlook driven by strong proprietary product sales growth and progressing orexin pipeline programs, though valuation remains a notable headwind given the very high P/E.
Positive Factors
Proprietary product growth
Strong growth across the proprietary portfolio demonstrates meaningful commercial momentum in Alkermes’ core CNS franchise. Expanding sales from psychiatry, addiction and LUMRYZ can strengthen the revenue base, support investment in development, and improve operating leverage over the next several quarters.
Negative Factors
Sharp leverage increase
The abrupt increase in leverage materially reduces financial flexibility compared with Alkermes’ previously lightly levered position. Greater debt obligations can absorb more operating cash flow, constrain capital allocation and make the business more sensitive to weaker product performance or development spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary product growth
Strong growth across the proprietary portfolio demonstrates meaningful commercial momentum in Alkermes’ core CNS franchise. Expanding sales from psychiatry, addiction and LUMRYZ can strengthen the revenue base, support investment in development, and improve operating leverage over the next several quarters.
Read all positive factors
Alkermes (ALKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.00B
Dividend YieldN/A
Average Volume (3M)1.96M
Price to Earnings (P/E)103.6
Beta (1Y)0.64
Revenue Growth10.79%
EPS Growth-81.14%
CountryUS
Employees2,050
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.40
Shares Outstanding167,763,280
10 Day Avg. Volume2,622,442
30 Day Avg. Volume1,955,034
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 Cap1.43
Enterprise Value/Revenue6.00
Enterprise Value/Gross Profit7.10
Enterprise Value/Ebitda45.89
Forecast
1Y Price Target
$59.08Price Target Upside20.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.53
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) sales of its proprietary commercial products and (2) manufacturing/royalty-type revenues tied to partnered products. Product revenue is generated from selling Alkermes’ marketed CNS medicines to customers...
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
Neutral
49.21
Price Trends
46.75
Negative
46.62
Negative
39.17
Positive
Market Momentum
-1.71
Negative
43.33
Neutral
44.04
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 49.21 is above the 20-day moving average (MA) of 43.44, above the 50-day MA of 46.75, and above the 200-day MA of 39.17, indicating a neutral trend. The MACD of -1.71 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.41B | 30.37 | 8.88% | 0.68% | -6.76% | -44.35% | |
60 Neutral | $57.10B | 49.40 | 2.40% | 3.53% | -0.14% | -208.74% | |
59 Neutral | $20.22B | -48.89 | -2.79% | 2.73% | 4.92% | 87.81% | |
56 Neutral | $4.21B | 12.57 | -216.13% | 22.59% | 13.55% | 305.85% | |
55 Neutral | $7.00B | 103.60 | 3.72% | ― | 10.79% | -81.14% | |
53 Neutral | $2.47B | -22.06 | -10.42% | ― | 24.85% | -264.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALKS
Alkermes
42.76
11.77
37.98%
RDY
Dr Reddy's Laboratories
12.32
-1.69
-12.08%
VTRS
Viatris
17.62
7.84
80.11%
SUPN
Supernus Pharmaceuticals
42.76
-5.55
-11.49%
INDV
Indivior
35.99
13.26
58.34%
TAK
Takeda Pharmaceutical Company
17.81
3.26
22.41%
Alkermes Corporate Events
Business Operations and StrategyProduct-Related Announcements
Alkermes Reports Positive Phase 1 ADHD Study Results
Positive
Sep 21, 2026
On Sept. 21, 2026, Alkermes reported positive topline results from a phase 1 proof-of-concept study of ALKS 7290, an oral orexin 2 receptor agonist being developed for adult ADHD. The drug showed dose-dependent, clinically meaningful improvements ...
Executive/Board Changes
Alkermes Strengthens Board with New Director Appointment
Positive
Sep 16, 2026
On September 14, 2026, Alkermes plc expanded its board of directors from ten to eleven members and appointed Anne C. Whitaker as a director, with an initial term running until the 2027 annual general meeting of shareholders. She will receive stand...
Business Operations and StrategyPrivate Placements and Financing
Alkermes Amends Credit Agreement to Lower Borrowing Costs
Positive
Aug 12, 2026
On August 12, 2026, Alkermes plc amended a credit agreement originally signed on February 12, 2026 with JPMorgan Chase Bank, BofA Securities and other lenders, covering its senior secured term loan A and term loan B facilities. The term loan A bal...
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...
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.