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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ALKS

Breaking News: Alkermes plc reported Q4 earnings, with quarterly earnings of $0.46 per share, beating estimates of $0.43 per share. Revenue also exceeded expectations. The company's CEO, Richard Pops, will retire on July 31, 2026, and Blair Jackson will succeed him as CEO. Alkermes provided financial expectations for 2026. The company's Q4 earnings and revenues topped estimates. A conference call and webcast presentation were held to discuss financial results. Richard Pops will continue as Chairman after his retirement.

1.c. Company Highlights

2. Alkermes' Strong 2025 Results and Promising 2026 Outlook

Alkermes reported total revenues of nearly $1.5 billion in 2025, driven primarily by its proprietary product portfolio, which grew 9% year over year and generated approximately $1.2 billion in net sales. The company's proprietary products, including VIVITROL, ARISTADA, and LIVALDI, delivered a strong performance, with net sales of $467.9 million, $370 million, and $346.7 million, respectively. The actual EPS came out at $0.2924, missing estimates at $0.43. For 2026, the company expects total revenues to be in the range of $1.73 billion to $1.84 billion, driven primarily by net sales from its proprietary products.

Publication Date: Feb -26

📋 Highlights
  • 2025 Total Revenue:: Generated $1.5 billion in 2025, driven by proprietary products like VIVITROL ($467.9M), ARISTADA ($370M), and Livaldi ($346.7M).
  • 2026 Revenue Projections:: Anticipates $1.73–$1.84 billion in total revenue, with adjusted EBITDA of $370–$410 million.
  • Avadel Acquisition Impact:: Strategic acquisition adds sleep medicine commercial capabilities and a new revenue stream, enhancing the platform for elixirixant's potential launch.
  • Elixirixant Phase 3 Launch:: Entering Phase 3 trials for narcolepsy in Q1 2026 after FDA breakthrough therapy designation, with potential blockbuster status.

Revenue Growth Expectations

Analysts estimate next year's revenue growth at 7.6%. The company's guidance for 2026 expects VIVITROL net sales in the range of $460 million to $480 million, ARISTADA net sales in the range of $365 million to $385 million, and LEVOLVI net sales in the range of $380 million to $400 million. The company also expects strong continued growth uptake of LUMRIZE, with total revenue in the range of $350 million to $370 million for the full year.

Valuation Metrics

The current valuation metrics indicate that the stock is trading at a P/E Ratio of 21.15, P/B Ratio of 2.81, and P/S Ratio of 3.47. The EV/EBITDA ratio is 18.14, suggesting that the company's EBITDA is expected to grow. The ROE is 14.45%, and ROIC is 20.77%, indicating a strong return on equity and invested capital. With a Net Debt / EBITDA ratio of -2.04, the company has a significant net cash position, providing flexibility for future investments or potential share buybacks.

Pipeline Updates and Growth Potential

The company has made significant progress in its pipeline, with elixorexant moving to Phase 3 in narcolepsy, following the completion of a rigorous Phase 2 program and FDA breakthrough therapy designation. As Richard F. Pops mentioned, "we believe elixirixant has blockbuster potential and could advance the standard of care in central disorders of hypersomnia." The company is also advancing other orexin-2 receptor agonist candidates, including ALKS 7,290 and ALKS 4,510, into Phase 1 studies in healthy volunteers.

Commercial Portfolio Performance

The company's commercial portfolio delivered another year of solid performance, providing a profitable foundation that enables continued investment in its strategic priorities. With the Avadel transaction now closed, the company enters 2026 with expanded commercial capabilities and a broader platform from which to grow. As C. Todd Nichols stated, "we are excited to build on the strong foundation and enter 2026 with meaningful opportunities to drive growth and broaden the impact of our commercial business."

3. NewsRoom

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Alkermes plc $ALKS Shares Bought by Artisan Partners Limited Partnership

Feb -28

Source: defenseworld.net

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Alkermes Q4 Earnings Call Highlights

Feb -28

Source: defenseworld.net

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Alkermes Down Despite Q4 Earnings Beat, Announces Leadership Change

Feb -26

Source: zacks.com

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Alkermes (ALKS) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -25

Source: zacks.com

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Alkermes (ALKS) Q4 Earnings and Revenues Top Estimates

Feb -25

Source: zacks.com

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Alkermes plc (ALKS) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Alkermes plc Reports Financial Results for the Fourth Quarter and Year Ended Dec. 31, 2025 and Provides Financial Expectations for 2026

Feb -25

Source: businesswire.com

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Alkermes plc Announces CEO Succession Plan

Feb -25

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.94%)

6. Segments

Product

Expected Growth: 8.97%

Alkermes plc's 8.97% growth is driven by increasing demand for its mental health and addiction treatment products, such as Vivitrol and Aristada. Strong sales growth in the US market, coupled with expanding pipeline and strategic partnerships, contribute to the company's growth momentum.

Manufacturing and Royalty

Expected Growth: 8.9%

Alkermes plc's 8.9% growth in Manufacturing and Royalty segments is driven by increasing demand for its proprietary products, such as Vivitrol and Aristada, as well as growing royalties from its partnerships, particularly with Indivior. Additionally, the company's strategic investments in R&D and manufacturing capacity expansions have improved operational efficiency, contributing to the segment's growth.

Research and Development

Expected Growth: 8.5%

Alkermes plc's 8.5% R&D growth driven by increasing investment in pipeline expansion, particularly in CNS and oncology therapeutic areas. Strong demand for innovative treatments and growing partnerships with pharmaceutical companies also contribute to growth. Additionally, the company's focus on digital health and technology advancements supports R&D expansion.

7. Detailed Products

Vivitrol

A medication-assisted treatment for opioid and alcohol dependence

Aristada

An atypical antipsychotic medication for the treatment of schizophrenia

Vivitrol Co-pay Savings Program

A patient assistance program for Vivitrol

Risperdal Consta

An atypical antipsychotic medication for the treatment of schizophrenia and bipolar I disorder

Invega Sustenna

An atypical antipsychotic medication for the treatment of schizophrenia

Xeplion

An atypical antipsychotic medication for the treatment of schizophrenia

8. Alkermes plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Alkermes plc operates in a highly regulated industry, which limits the threat of substitutes. However, the company's dependence on a few key products makes it vulnerable to competition from alternative treatments.

Bargaining Power Of Customers

Alkermes plc's customers, primarily healthcare providers and patients, have limited bargaining power due to the company's strong brand recognition and limited competition in certain therapeutic areas.

Bargaining Power Of Suppliers

Alkermes plc relies on a few key suppliers for raw materials and manufacturing services, which gives them some bargaining power. However, the company's scale and diversification efforts mitigate this risk.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant regulatory hurdles and capital requirements, which limits the threat of new entrants.

Intensity Of Rivalry

Alkermes plc operates in a highly competitive industry, with several established players and a high level of marketing and R&D expenditure. This intensity of rivalry puts pressure on the company's pricing and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.47%
Debt Cost 6.43%
Equity Weight 80.53%
Equity Cost 6.83%
WACC 6.75%
Leverage 24.17%

11. Quality Control: Alkermes plc passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Genmab

A-Score: 5.8/10

Value: 3.2

Growth: 9.7

Quality: 9.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

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ALK-Abelló

A-Score: 5.0/10

Value: 0.2

Growth: 8.2

Quality: 7.8

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Alkermes

A-Score: 5.0/10

Value: 4.9

Growth: 8.4

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Jazz Pharmaceuticals

A-Score: 4.9/10

Value: 4.8

Growth: 7.1

Quality: 4.7

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Camurus

A-Score: 4.7/10

Value: 0.2

Growth: 9.3

Quality: 9.1

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Zealand Pharma

A-Score: 3.3/10

Value: 7.0

Growth: 2.2

Quality: 9.9

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.25$

Current Price

30.25$

Potential

-0.00%

Expected Cash-Flows