Alkermes (NASDAQ:ALKS) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Alkermes (NASDAQ:ALKS) released its quarterly 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 company had revenue of $480.13 million during the quarter, compared to analysts’ expectations of $463.48 million. Alkermes had a negative net margin of 0.02% and a positive return on equity of 0.40%. The business’s quarterly revenue was up 21.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $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 Performance

Shares of ALKS stock opened at $45.89 on Thursday. Alkermes has a 52 week low of $27.00 and a 52 week high of $55.67. The company has a market capitalization of $7.70 billion, a price-to-earnings ratio of 1,523.00 and a beta of 0.32. The company has a 50-day simple moving average of $43.86 and a 200 day simple moving average of $40.66. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.85 and a current ratio of 2.47.

Key Stories Impacting Alkermes

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Alkermes reported third-quarter EPS of $0.09, versus analysts’ expectation of a $0.08 loss, and revenue of $480.1 million, ahead of the $463.5 million consensus and up 21.8% year over year. Article: Alkermes Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Royal Bank of Canada raised its price target from $56 to $57 and maintained an outperform rating, signaling continued analyst confidence. Royal Bank of Canada ratings
• Positive Sentiment: The company reiterated its fourth-quarter proprietary net sales outlook of $400 million to $420 million and expects Phase III data for alixorexton around mid-2027, offering a defined pipeline milestone. Article: Alkermes reiterates sales outlook and Phase III timing
• Neutral Sentiment: HC Wainwright lifted its target from $43 to $50 but kept a neutral rating, reflecting a higher valuation estimate without a more bullish recommendation. HC Wainwright ratings
• Neutral Sentiment: EVP David Gaffin sold 2,035 shares, about 0.92% of his holdings. The transaction was made under a pre-arranged Rule 10b5-1 plan, making it less indicative of a fresh change in his outlook. Article: Insider share sale
• Negative Sentiment: Despite the beat, third-quarter profit was reported at $16 million and EPS fell from $0.49 a year earlier. A separate analysis also raised concerns that the shares may be overvalued following the ALKS 7290 trial launch. Article: Lower Q3 profit Article: Valuation concerns

Wall Street Analyst Weigh In

Several research analysts recently commented on ALKS shares. Wells Fargo & Company increased their price target on Alkermes from $65.00 to $68.00 and gave the company an “overweight” rating in a research report on Wednesday. Robert W. Baird set a $61.00 price target on Alkermes in a research report on Wednesday. Weiss Ratings reissued a “hold (c)” rating on shares of Alkermes in a research report on Friday, August 7th. HC Wainwright boosted their price objective on shares of Alkermes from $43.00 to $50.00 and gave the stock a “neutral” rating in a research note on Wednesday. Finally, Stifel Nicolaus restated a “buy” rating and set a $63.00 price objective (up from $45.00) on shares of Alkermes in a research note on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Alkermes has a consensus rating of “Moderate Buy” and a consensus target price of $55.06.

Insider Buying and Selling at Alkermes

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