Alkermes (ALKS) AI Stock Analysis

• Market Cap: $5.22B
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.79
• Revenue Growth: -12.31%
• EPS Growth: -17.53%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 0.13
• Shares Outstanding: 164,901,290
• 10 Day Avg. Volume: 1,292,656
• 30 Day Avg. Volume: 1,840,886
• PEG Ratio: -3.87
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.32
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 2.79
• 1Y Price Target: $39.50
• Price Target Upside: 31.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $35.00 ▲( 16.47% Upside)

Alkermes' overall stock score is driven by strong financial performance and a solid earnings call, underscoring profitability and operational efficiency. While the valuation is reasonable, the lack of a dividend yield may deter some investors. Technical analysis shows mixed signals, and recent corporate events indicate strong shareholder support. Macroeconomic concerns and market dependency present risks, but the company's robust financial health mitigates these factors.

Positive Factors

Market Potential

ALKS is one of the early movers in the narcolepsy treatment market, which is a potential multi-billion dollar category, reflecting a positive outlook for its stock value.

Product Development

Topline data from Vibrance-1 of ALKS-2680 in NT-1 is expected earlier than initially planned, reflecting enthusiasm for the program by investigators.

Sales Performance

Lybalvi continued to deliver good performance with sales up 23% year-over-year increase, and the net sales in 1Q were $70M, primarily driven by TRx growth of 22%.

Negative Factors

Competitive Risks

Competitive risks remain given there are two mid-to-late stage orexin competitors and there is not yet a clear handle on ALKS2680’s safety profile on chronic dosing.

Inventory Levels

The inventory levels have normalized, leading to an expected substantial sequential sales decline in 1Q25.

Revenue Shortfall

Net revenue of $307M was a little lower than consensus ($310M).

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 proprietary products, such as VIVITROL, an injectable medication for the treatment of alcohol and opioid dependence, and ARISTADA, an extended-release injectable for schizophrenia. Additionally, the company earns income from manufacturing and royalty agreements with partners, leveraging its proprietary technology platforms to develop and produce third-party products. Significant partnerships with leading pharmaceutical companies also contribute to Alkermes' revenue streams by providing milestone payments and royalties from licensed products.

Alkermes Financial Statement Overview

Summary

Alkermes is performing strongly across all financial statement verticals. The income statement highlights excellent profitability and efficient operations, despite some revenue growth fluctuations. The balance sheet is robust with low leverage and strong equity positioning, underpinning financial stability. Cash flow metrics show excellent cash generation capabilities, underscoring the company's solid liquidity and financial health.

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	893.69M	569.84M	465.85M
	EBIT
391.12M	420.64M	414.12M	-142.26M	-26.66M	-112.43M
	EBITDA
447.71M	494.86M	519.48M	59.77M	176.40M	-6.02M
	Net Income Common Stockholders
352.71M	367.07M	355.76M	-158.27M	-48.17M	-110.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
399.81M	751.67M	773.49M	740.08M	765.74M	659.81M
	Total Assets
2.08B	2.06B	2.14B	1.96B	2.02B	1.95B
	Total Debt
74.10M	75.54M	372.19M	293.27M	295.80M	274.96M
	Net Debt
-325.70M	-215.61M	-85.28M	797.00K	-41.74M	2.00M
	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: Negative
• Last Price: 30.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALKS, the sentiment is Negative. The current price of 30.05 is below the 20-day moving average (MA) of 30.37, below the 50-day MA of 30.69, and above the 200-day MA of 29.81, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALKS.

Alkermes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKS	78 Outperform	$5.22B	14.54	25.71%	―	-12.31%	-17.53%
KRYS	72 Outperform	$3.80B	30.51	13.90%	―	247.53%	118.34%
IONS	55 Neutral	$5.49B	―	-118.53%	―	-7.65%	-11.81%
SRPT	54 Neutral	$3.93B	19.61	-23.61%	―	59.15%	-1881.09%
AXSM	53 Neutral	$5.33B	―	-282.16%	―	72.16%	9.65%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
BPMC	48 Neutral	$6.65B	―	-47.71%	―	99.19%	48.43%

Alkermes Corporate Events

Alkermes Shareholders Approve Amendments at Annual Meeting

On May 21, 2025, Alkermes plc held its annual general meeting where shareholders approved amendments to the 2018 Stock Option and Incentive Plan, increasing the number of authorized shares by 4,250,000. Additionally, shareholders elected directors, approved executive compensation, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and renewed the Board’s authority to allot and issue shares under Irish law, reflecting strong shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (ALKS) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Alkermes stock, see the ALKS Stock Forecast page.