Alkermes Q2 Earnings Call Highlights

Key Points

• Alkermes reported strong Q2 performance: Revenue reached $496 million, while proprietary product sales rose 34% year over year to $411.7 million. LUMRYZ contributed $96.6 million in its first full quarter following the Avadel acquisition.
• The orexin pipeline advanced: Alixorexton Phase III narcolepsy studies are enrolling, idiopathic hypersomnia Phase II enrollment is nearing completion, and programs in ADHD and fatigue are moving forward with data and trial starts expected later this year.
• Management maintained most of its 2026 outlook but revised expected GAAP net loss to $95 million–$115 million, reflecting a $26.4 million increase in contingent consideration tied to positive LUMRYZ data. Blair Jackson will succeed Richard Pops as CEO, with Pops remaining chairman.

Alkermes NASDAQ: ALKS reported second-quarter 2026 revenue of $496 million, supported by growth across its proprietary product portfolio and the first full-quarter contribution from LUMRYZ following the company’s acquisition of Avadel. The company also highlighted progress across its orexin development pipeline and reiterated most of its full-year financial outlook.

GAAP net income was $0.5 million for the quarter, while adjusted EBITDA totaled $139.2 million. Alkermes ended June with approximately $690 million in cash and total investments.

The call was Richard Pops’ final earnings call as chief executive officer. Blair Jackson is set to become CEO next week, while Pops will continue as chairman of the board.

Commercial Portfolio Sales Rise 34%

Net sales from Alkermes’ proprietary products increased 34% year over year to $411.7 million in the second quarter, according to Chief Commercial Officer Todd Nichols. The portfolio includes VIVITROL, the ARISTADA product family, LYBALVI and LUMRYZ.

• VIVITROL: Net sales were $124.5 million, aided by demand growth in alcohol dependence and about $4 million in favorable gross-to-net adjustments related primarily to patient mix. Alkermes maintained its 2026 VIVITROL sales outlook of $460 million to $480 million.
• ARISTADA: The long-acting antipsychotic product family generated $96.7 million in sales, also benefiting from roughly $4 million in favorable gross-to-net adjustments. Full-year guidance remained $365 million to $385 million.
• LYBALVI: Net sales rose 12% year over year to $94 million, while underlying prescription growth increased 18%. Alkermes said formulary coverage now exceeds 80% of insured lives after expanding access with three large Medicare Part D plans. The company maintained sales guidance of $380 million to $400 million, though it expects gross-to-net adjustments to rise into the high 30% range for the full year.
• LUMRYZ: The sleep medicine treatment contributed $96.6 million in net sales during its first full quarter under Alkermes. The company exited the quarter with about 3,900 patients on therapy. Results included an approximately $7 million benefit from the timing of wholesaler inventory shipments at quarter-end.

Nichols said the company expects third-quarter sales from its four proprietary products to be generally similar to second-quarter levels, excluding the favorable gross-to-net items for VIVITROL and ARISTADA and the LUMRYZ inventory timing effect. That would imply a range of $390 million to $410 million.

Alkermes continues to expect full-year LUMRYZ net sales of $350 million to $370 million, of which it expects to record $315 million to $335 million because the Avadel acquisition closed in mid-February.

Orexin Pipeline Advances Across Sleep, ADHD and Fatigue

Management emphasized the company’s position in development of orexin 2 receptor agonists, a class being studied for conditions involving sleep, wakefulness, attention and fatigue.

Alixorexton is currently enrolling patients in the phase III Brilliance studies in narcolepsy type 1 and type 2, with completion expected next year. The company said interim results from its long-term extension study showed sustained improvements in wakefulness, excessive daytime sleepiness, cognition and fatigue for up to nine months of treatment across both narcolepsy populations.

In idiopathic hypersomnia, Alkermes has completed enrollment in the once-daily dosing cohorts of its phase II Vibrance-3 study. A split-dose cohort remains in enrollment, and the company expects the study to be completed in the fourth quarter. Management said the split-dose approach is intended to extend alixorexton’s pharmacodynamic effects later in the day and provide greater dosing flexibility.

Alkermes also expects top-line results by the end of the third quarter from a phase Ib study of ALKS 7290 in adult attention-deficit/hyperactivity disorder. The randomized, placebo-controlled study is designed to enroll about 50 patients and will evaluate safety, tolerability, EEG measures, neuropsychological performance measures and clinical ADHD scales, including the Adult ADHD Investigator Symptom Rating Scale.

A larger phase II ADHD study is expected to begin enrollment during the current quarter. Jackson said the company plans to use the earlier study to assess target engagement and inform dose selection for the later-stage program.

Separately, ALKS 4510 is scheduled to enter a phase IIa fatigue study later this year. The trial is expected to enroll approximately 175 people with fatigue associated with multiple sclerosis or Parkinson’s disease and evaluate several established fatigue scales over four weeks of treatment.

LUMRYZ Expansion Plans and VIVITROL Generic Outlook

Alkermes plans to submit a supplemental new drug application for LUMRYZ in idiopathic hypersomnia by year-end, following positive phase III REVITALYZ results announced in May. If approved, the company said LUMRYZ could launch in idiopathic hypersomnia as early as March 2028.

Management said LUMRYZ growth has been supported by new-to-oxybate patients, patients switching treatments and returning patients. Nichols said the company’s research indicates continued interest among physicians and patients in potential use of oxybates alongside orexin therapies. Alkermes said it may pursue studies over the next several years to generate evidence on combining those approaches, though Pops said such work would not be intended for registrational purposes.

On VIVITROL, Alkermes said it terminated its agreement with Amneal for an authorized generic, meaning there will be no authorized generic version of the treatment in 2027. Pops said the company is not planning its 2027 business around generic entry, although it does not have complete visibility into potential competition. He cited the specialized sterile manufacturing requirements for VIVITROL as a barrier to generic entry.

Outlook Maintained, With Changes to GAAP Loss Expectations

Chief Financial Officer Joshua Reed said Alkermes expects third-quarter total revenue of $450 million to $470 million, R&D expense of $120 million to $130 million, and SG&A expense of $215 million to $225 million. The company forecast third-quarter adjusted EBITDA of $80 million to $100 million.

Alkermes reiterated its full-year expectations across most line items. However, it updated its forecast for GAAP net loss to $95 million to $115 million and EBITDA to positive $75 million to $95 million. The changes reflect a $26.4 million increase in the fair value of contingent consideration tied to an Avadel acquisition milestone after the positive LUMRYZ idiopathic hypersomnia data.

About Alkermes (NASDAQ:ALKS)

Alkermes plc is a biopharmaceutical company focused on developing innovative medicines to address unmet needs in the central nervous system (CNS). The company applies its proprietary drug delivery technologies and therapeutic expertise to advance treatments for addiction, schizophrenia, bipolar I disorder and depression. Alkermes' portfolio includes both commercial products and a pipeline of investigational therapies designed to improve patient outcomes and support long-term disease management.

Alkermes' commercial franchise features several approved products.

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