Start here if you're new
what it is
Alkermes sells brain-health drugs and collects royalty and manufacturing checks from older medicines.
how it gets paid
FY2025 total revenues were about $1.48 billion (down roughly 5% vs. ~$1.56B in FY2024).
why growth slowed
Total revenue stepped down year over year even as proprietary product sales grew — mix and royalty lines moved the consolidated total. Q4 is as much about GAAP vs non-GAAP EPS as headline revenue.
what just happened
Q4 2025: total revenues about $385M (down YoY); diluted GAAP EPS $0.29. Third-party recaps also cite a higher non-GAAP EPS figure that topped some consensus views — reconcile both before inferring “miss.”
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
17.9x trailing p/e — the market's not buying it — or you found a deal
20.0% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Alkermes sells brain-health drugs and collects royalty and manufacturing checks from older medicines.
This is a neuroscience specialist with real products, not a lab coat and a slide deck. Return on capital is 20.0%, which means every $1 put into the business produces $0.20 in operating profit. Your edge here is product durability: VIVITROL, ARISTADA, and LYBALVI already sell into hard-to-treat markets where switching patients is slow.
How they make money
~$1.48B
FY2025 total revenues · ~5% below FY2024 (~$1.56B) per company summary
total revenue
~$1.48B
~5%
The products that matter
addiction treatment franchise
Vivitrol
part of the ~$1.48B FY2025 base
it's one of the mature products supporting the consolidated top line. with FY2025 total revenue down year over year, brands like this need to hold up while newer assets scale.
cash flow now
commercial CNS portfolio
Aristada and Lybalvi
supports $1.85 full-year EPS
these schizophrenia and bipolar treatments sit inside the commercial portfolio that produced $1.85 in full-year 2025 EPS. they matter because today's profitability is funding the next round of development bets.
core portfolio
sleep medicine growth bet
Lumryz and alixorexant
jan 2026 deal close · phase III next
Lumryz came with the Avadel combination; verify program names and phases in Alkermes SEC filings and press releases (e.g. alixorexant for narcolepsy). This bucket is what needs to offset mature-brand pressure on the ~$1.5B revenue base.
what changes the story
Key numbers
$2.15
fy2027 eps est
$2B
fy2029 rev est
17.9x
trailing p/e
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- net profit margin 22.0% — keeps 22 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ALKS 3 years ago → it's now worth $12,880.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat on some Street views
Q4 2025: total revenues ~$385M · diluted GAAP EPS $0.29
FY2025 total revenues ~$1.48B; diluted GAAP EPS $1.43 for the year. Recaps differ on GAAP vs non-GAAP — several outlets reported Q4 revenue and non-GAAP EPS above consensus even while GAAP EPS prints lower. Read the tables, not one line from a data vendor.
~$385M
Q4 revenue
$0.29
Q4 GAAP EPS
$1.43
FY GAAP EPS
the number that mattered
FY revenue is down on a consolidated basis even when proprietary product sales grow — that gap is what the 2026 guide and Avadel integration have to close.
-
alkermes has completed the acquisition of avadel pharmaceuticals.the transaction adds avadel’s fda-approved product, lumryz (sodium oxybate) into alkermes’ commercial portfolio. this ought to accelerate the company’s entry into the sleep medicine market, while providing it with a commercial organization experienced in the treatment of cataplexy (excessive daytime sleepiness). leadership will provide its 2026 financial expectations for the combined organization with the release of fourth-quarter results, due shortly after this report goes to press. the combination should enhance alkermes’ ability to manifest the potential of its latestage development pipeline focused on central disorders of hypersomnolence. to that end, alkermes is progressing toward advancing alixorexton into phase-iii development this quarter. in early january, the fda granted breakthrough therapy designation to alixorexton for the treatment of narcolepsy type 1 (nt1). the fda breakthrough therapy designation process is designed to expedite the development of drugs that show preliminary clinical evidence indicating the potential for substantial improvement over currently available therapies. the designation was awarded based on phase-ii clinical data that included positive results evaluating alixorexton in patients with nt1. the data demonstrated that the drug normalized wakefulness and excessive daytime sleepiness scores in highly-symptomatic patients, while showing a generally welltolerated profile across all doses tested.
-
alkermes’ portfolio of orexin-2 receptor agonists offers additional promise.
-
these include alks 4510 and alks 7290, which are currently in phase-i studies.orexin circuitry is considered a regulator of wakefulness, and the potential market opportunity in narcolepsy and idiopathic hypersomnia for the orexin-2 receptor agonist class is estimated at greater than $10 billion. alkermes’ novel chemistry provides barriers to entry and patent protection, while offering potential to broadly advance the standard of care.
-
alkermes stock is ranked 3 (average) for timeliness.
-
appreciation potential from the recent quotation is lackluster.
source: Alkermes Q4 & FY2025 results (Business Wire) · Feb 25, 2026
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What could go wrong
the #1 risk is Lumryz integration and sleep-franchise execution. ALKS already showed you the legacy portfolio can shrink. If the sleep push does not offset that, the stock's cheap multiple is not cheap — it's the right price for a business in transition.
med
Lumryz integration
the Avadel deal is closed. now ALKS has to prove it can absorb Lumryz and turn that asset into reported growth, not just acquisition math.
if the deal does not help move revenue from $1.5B toward the roughly $2B estimate, the market will treat the acquisition as a bridge to nowhere.
med
alixorexton phase III risk
breakthrough designation in jan 2026 helps. it does not remove late-stage development risk. the growth case still has to survive phase III.
this is the cleanest upside catalyst on the page. if phase III slips or disappoints, a large part of the forward growth narrative leaves with it.
med
mature portfolio erosion
revenue already fell 5.2% last year. that tells you the existing portfolio is not giving the company much room for error.
a business can post a 21.5% net margin for a while on cost discipline. it cannot outrun product aging forever.
med
earnings volatility
ALKS has a 40 / 100 predictability score, and full-year EPS dropped from $2.92 to $1.85. surprises are part of the package.
if EPS cannot recover above the $1.85 full-year 2025 level, the current multiple stops looking discounted and starts looking fair.
a failed handoff from the mature CNS portfolio to Lumryz and alixorexton would leave ALKS with 21.5% margins on a shrinking $1.5B revenue base. that's profitable. it is not a re-rating story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
2026 revenue path
the question is blunt: does reported revenue move off the $1.5B base and start tracking toward the roughly $2B estimate.
trend
EPS recovery
full-year EPS fell from $2.92 to $1.85. you want to see that line turn up, not just wobble around quarter to quarter.
risk
alixorexton phase III timing
the jan 2026 breakthrough designation matters, but only if phase III stays on track and keeps the sleep thesis alive.
calendar
first full Lumryz quarters
the first full post-deal quarters should tell you whether Lumryz is changing the business or just extending the narrative runway.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts are not seeing a clean near-term edge yet.
risk profile
average
stability score 3 — this sits near the middle of the pack, not especially defensive and not a chaos stock either.
chart momentum
average
technical score 3 — the chart is not giving you a strong signal on its own.
earnings predictability
40 / 100
earnings are harder to forecast here. with 40 / 100 predictability, results and pipeline updates can move the stock fast.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 189 buyers vs. 163 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$42
$33
current price
$30
target midpoint · 10% from current · 3-5yr high: $50 (+50% · 11% ann'l return)
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