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

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

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 0.7%

Shares of NASDAQ:ALKS traded down $0.32 during midday trading on Wednesday, reaching $45.37. 674,955 shares of the company were exchanged, compared to its average volume of 2,122,079. Alkermes has a fifty-two week low of $27.00 and a fifty-two week high of $55.67. The company has a quick ratio of 1.85, a current ratio of 2.30 and a debt-to-equity ratio of 0.82. The stock has a fifty day simple moving average of $43.92 and a two-hundred day simple moving average of $40.59. The firm has a market cap of $7.61 billion, a PE ratio of 119.62 and a beta of 0.32.

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

Insider Buying and Selling

In other Alkermes news, EVP Craig Hopkinson sold 9,000 shares of the firm’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 completion of the transaction, the executive vice president directly owned 65,389 shares in the company, valued at $3,072,629.11. This trade represents a 12.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christian Nichols sold 7,576 shares of the business’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 transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 22,679 shares of company stock worth $1,070,940. 4.59% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Stifel Nicolaus reissued a “buy” rating and set a $63.00 price target (up from $45.00) on shares of Alkermes in a research note on Monday, July 20th. Truist Financial started coverage on Alkermes in a report on Friday, October 16th. They set a “buy” rating and a $55.00 price objective on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $62.00 price objective on shares of Alkermes in a research report on Monday, September 21st. Mizuho raised shares of Alkermes to a “strong-buy” rating in a report on Wednesday, September 16th. Finally, Royal Bank Of Canada lifted their price objective on shares of Alkermes from $56.00 to $57.00 and gave the stock an “outperform” rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Alkermes presently has a consensus rating of “Moderate Buy” and an average target price of $55.06.

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.