Alkermes (NASDAQ:ALKS) Issues Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Alkermes beat quarterly estimates, reporting earnings of $0.09 per share versus expectations of a $0.08 loss, and revenue of $480.1 million versus $463.5 million expected; revenue rose 21.8% year over year.
• Proprietary product sales increased 31% to $417.3 million, with growth across key medicines and LUMRYZ reaching about 4,100 patients on therapy. Management reiterated its Q4 proprietary net-sales outlook of $400 million to $420 million.
• LYBALVI’s gross-to-net adjustment is expected to rise, potentially tempering how prescription growth translates into sales; meanwhile, Alkermes is advancing several clinical programs, with key alixorexton readouts expected in 2026–27.

Alkermes (NASDAQ:ALKS - Get Free Report) released its earnings results on Tuesday. The company reported $0.09 earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.17, Zacks reports. The firm had revenue of $480.13 million for the quarter, compared to analyst estimates of $463.48 million. Alkermes had a return on equity of 4.15% and a net margin of 3.96%. The company's quarterly revenue was up 21.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.49 earnings per share.

Here are the key takeaways from Alkermes' conference call:

• Proprietary product sales rose 31% year over year to $417.3 million in Q3, supported by the addition of LUMRYZ and continued demand growth across VIVITROL, ARISTADA, and LYBALVI.
• LUMRYZ reached approximately 4,100 patients on therapy, while LYBALVI prescription volume is expected to grow nearly 20% next year following expanded payer access to roughly 80% of covered lives.
• LYBALVI’s gross-to-net adjustment was approximately 42% in Q3 and is expected to rise to about 45% in 2027, which may delay the conversion of prescription growth into net-sales growth.
• Alkermes reported strong pipeline momentum, including ongoing Phase III narcolepsy studies for alixorexton, an expanding ALKS 7290 program in ADHD and major depressive disorder, and planned Phase II testing of ALKS 4510 in fatigue.
• The company expects a data-rich 2027, with idiopathic hypersomnia results for alixorexton around year-end 2026 or early 2027, narcolepsy Phase III readouts beginning in mid-2027, and additional ADHD and fatigue data later in 2027; full 2027 financial guidance will be provided in February.

Alkermes Stock Down 0.4%

ALKS stock traded down $0.19 during mid-day trading on Wednesday, hitting $45.50. 621,619 shares of the company were exchanged, compared to its average volume of 2,121,788. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.85 and a current ratio of 2.30. The firm has a market cap of $7.63 billion, a P/E ratio of 119.72 and a beta of 0.32. The firm's 50 day simple moving average is $43.92 and its 200 day simple moving average is $40.59. Alkermes has a 1-year low of $27.00 and a 1-year high of $55.67.

More Alkermes News

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Alkermes reported third-quarter earnings of $0.09 per share, versus analysts’ expectation of a $0.08-per-share loss. Revenue of $480.1 million also topped estimates of $463.5 million and rose 21.8% year over year. Article: Alkermes Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management reiterated its fourth-quarter proprietary net-sales outlook of $400 million to $420 million and expects Phase III data for alixorexton around mid-2027, providing a near-term sales target and a future development milestone. Article: Alkermes reiterates sales outlook and alixorexton data timing
• Positive Sentiment: Royal Bank of Canada raised its price target to $57 and maintained an “outperform” rating. HC Wainwright also lifted its target, to $50, while retaining a “neutral” rating. Royal Bank of Canada ratings
• Neutral Sentiment: EVP David Gaffin sold 2,035 shares, about 0.92% of his holdings. The sale was made under a pre-arranged Rule 10b5-1 plan, making it a less direct signal of a change in his outlook. Article: Alkermes insider transaction
• Negative Sentiment: Despite beating estimates, quarterly profit was reported at $16 million and earnings were down from $0.49 per share a year earlier. The year-over-year decline could offset some of the positive surprise. Article: Alkermes records lower Q3 profit
• Negative Sentiment: A commentary piece says ALKS could be overvalued following the launch of the ALKS 7290 trial, raising a potential concern about the stock’s valuation. Article: Alkermes stock could be overvalued

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ALKS. Stifel Nicolaus reiterated a "buy" rating and issued a $63.00 price target (up from $45.00) on shares of Alkermes in a research report on Monday, July 20th. Truist Financial started coverage on shares of Alkermes in a research note on Friday, October 16th. They issued a "buy" rating and a $55.00 target price for the company. The Goldman Sachs Group started coverage on shares of Alkermes in a report on Thursday, September 24th. They issued a "neutral" rating and a $50.00 target price on the stock. TD Cowen reissued a "buy" rating on shares of Alkermes in a report on Monday, September 21st. Finally, Royal Bank Of Canada upped their price objective on shares of Alkermes from $56.00 to $57.00 and gave the company an "outperform" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $55.06.

Insider Activity

In other news, EVP Craig C. Hopkinson sold 9,000 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $46.99, for a total transaction of $422,910.00. Following the completion of the sale, the executive vice president owned 65,389 shares of the company's stock, valued at $3,072,629.11. This represents a 12.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christian Nichols sold 7,576 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $49.23, for a total transaction of $372,966.48. Following the sale, the senior vice president owned 102,193 shares in the company, valued at approximately $5,030,961.39. The trade was a 6.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,679 shares of company stock worth $1,070,940 over the last quarter. 4.59% of the stock is currently owned by company insiders.

About Alkermes

Alkermes plc NASDAQ: ALKS is a biopharmaceutical company focused on developing and commercializing medicines for central nervous system diseases. Its research and development activities address conditions including schizophrenia, bipolar disorder, addiction, depression and other neuropsychiatric disorders.

The company's marketed products include Vivitrol, an extended-release injectable form of naltrexone used to treat alcohol dependence and prevent relapse to opioid dependence; Aristada and Aristada Initio, long-acting injectable formulations of aripiprazole lauroxil for the treatment of schizophrenia; and Lybalvi, a combination of olanzapine and samidorphan approved for schizophrenia and bipolar I disorder in adults.

Founded in 1987, Alkermes is incorporated in Ireland and maintains its corporate headquarters in Waltham, Massachusetts.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.