Alkermes plc

What they do

Alkermes manufactures and sells proprietary products in the U.S.: ARISTADA and ARISTADA INITIO (schizophrenia), LYBALVI (schizophrenia/bipolar I), VIVITROL (alcohol/opioid dependence), and LUMRYZ (narcolepsy, acquired in Feb 2026). It also earns manufacturing and royalty revenues from third-party products using its technologies, chiefly Janssen's long-acting INVEGA products and Biogen's VUMERITY (multiple sclerosis).

Revenue drivers

• VIVITROL — Proprietary product for alcohol and opioid dependence; Q2 2026 net sales $124.5M, up from $121.7M year-over-year.
• ARISTADA/ARISTADA INITIO — Long-acting injectable for schizophrenia; Q2 2026 net sales $96.7M, down from $101.3M in Q2 2025.
• LUMRYZ — Narcolepsy treatment acquired with Avadel in Feb 2026; Q2 2026 net sales $96.6M, including ~$7M inventory benefit.
• LYBALVI — Oral antipsychotic for schizophrenia/bipolar I; Q2 2026 net sales $94.0M, up 12% year-over-year with 18% prescription growth.

Recent performance

Q2 2026 total revenues were $496.0M, up from $390.7M in Q2 2025, driven by LUMRYZ addition and LYBALVI growth. GAAP net income was $0.5M in Q2 2026 versus $87.1M in the prior-year quarter; six-month net loss was $66.0M versus net income of $109.6M. Costs related to the Avadel acquisition drove the decline. Full-year 2025 net income was $241.7M on revenue of $1.48B.

Strategy

Management focuses on growing commercial portfolio and advancing neuroscience pipeline, especially orexin 2 receptor agonists. The Avadel acquisition added LUMRYZ and a narcolepsy-focused commercial team. Pipeline priorities include ALKS 7290 for ADHD and alixorexton for idiopathic hypersomnia. Management expects the existing products and LUMRYZ to generate significant near- and medium-term revenue.

Risks

• Integration risk from Avadel acquisition — Increases in operating expenses and interest expense due to the acquisition have compressed net income, and integration may not deliver expected synergies.
• Patent exposure — New ARISTADA patents expire in 2032, but earlier patents may not adequately protect against generic competition.
• Dependence on third-party licensees — Manufacturing and royalty revenue from Janssen and Biogen products is significant and could decline if those partners change strategies or face competition.
• Pipeline failure risk — Drug development is high-risk; ALKS 7290 and alixorexton may fail clinical trials, delaying or preventing new revenue sources.

Outlook

Management expects ALKS 7290 ADHD data in the coming months and alixorexton phase 2 topline results toward year-end 2026. These data could expand the orexin 2 receptor portfolio. Full-year 2026 results will reflect the Avadel acquisition's full impact, including higher interest expense and operating costs.