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Alkermes Q3 Earnings and Revenues Beat Estimates, 2025 View Raised
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Key Takeaways
Alkermes posted Q3 EPS of $0.49, beating estimates, with revenue up 4% year over year to $394.2 million.
Sales of Vivitrol, Aristada, and Lybalvi rose 7%, 16%, and 32%, respectively, surpassing expectations.
ALKS lifted the 2025 revenue forecast to $1.43 to $1.49B and raised sales outlooks for all three key drugs.
Alkermes plc (ALKS - Free Report) reported earnings from continuing operations of 49 cents per share for the third quarter of 2025, which beat the Zacks Consensus Estimate of 42 cents. The company registered earnings of 56 cents per share in the year-ago quarter.
Alkermes’ total revenues of $394.2 million in the third quarter increased 4% from the year-ago quarter due to higher product sales. The top line comprehensively beat the Zacks Consensus Estimate of $355.7 million.
ALKS shares gained 4.3% on Tuesday as investors were impressed by the better-than-expected third-quarter earnings result.
ALKS' Q3 Earnings in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder). The metric also includes manufacturing and/or royalty revenues on net sales of products commercialized by partners.
Sales of the proprietary products portfolio grew 16% year over year to $317.4 million during the third quarter, driven by strong demand for Vivitrol, Aristada and Lybalvi. Sales of proprietary products surpassed management’s expectation, which was in the range of $280-$300 million.
Vivitrol sales increased 7% year over year to $121.1 million in the reported quarter, driven by growth in the alcohol dependence indication market. Its sales beat the Zacks Consensus Estimate of $112.1 million and our model estimate of $108.1 million.
Aristada sales increased 16% year over year to $98.1 million, driven by higher underlying demand due to increased prescriber breadth and strong new-to-brand prescriptions during the quarter. The figure beat the Zacks Consensus Estimate of $87 million and our model estimate of $86.7 million.
Lybalvi generated sales of $98.2 million, up 32% year over year in the reported quarter, due to increased total prescriptions. Its sales also beat the Zacks Consensus Estimate of $87.1 million and our model estimate of $87.5 million. Lybalvi’s total prescriptions grew 25% year over year in the quarter, driven by new patient starts.
Year to date, shares of Alkermes have gained 7.9% compared with the industry’s rise of 10.3%.
Image Source: Zacks Investment Research
Total manufacturing and royalty revenues decreased around 27% year over year to $76.8 million.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $35.6 million. Royalty revenues from Xeplion and certain Invega products were $30.2 million in the third quarter.
Research and development expenses totaled $81.7 million, up around 36% year over year, owing primarily to higher costs related to the ongoing studies on investigational pipeline candidate, alixorexton (formerly ALKS 2680).
Selling, general and administrative expenses totaled $171.8 million, up around 14% year over year, primarily due to the expansion of the psychiatry field organization earlier this year and increased promotional activities for Lybalvi.
As of Sept. 30, 2025, Alkermes had cash and cash equivalents of $1.14 billion compared with $1.05 billion on June 30, 2025.
ALKS Raises 2025 Guidance
Alkermes raised its financial guidance for 2025, which was previously provided in February.
The company now expects total revenues of $1.43-$1.49 billion in 2025, up from the previously guided range of $1.34-$1.43 billion.
Net sales of Vivitrol are now expected to be $460-$470 million (previously $440-$460 million), while Aristada sales are now anticipated to be $360-$370 million (previously $335-$355 million). Alkermes also expects higher full-year Lybalvi’s net sales in the range of $340-$350 million, up from the previous guidance of $320-$340 million.
Net sales from proprietary products are expected to be $300-$320 million for the fourth quarter of 2025.
ALKS Key Updates
During the third quarter, Alkermes signed a definitive agreement to acquire Ireland-based Avadel Pharmaceuticals (AVDL - Free Report) in a deal valued at up to $20.00 per share in cash, representing a total transaction value of approximately $2.1 billion. The transaction is expected to be closed in the first quarter of 2026, subject to customary closing conditions.
The potential acquisition of Avadel will help Alkermes to step into the sleep medicine market, which holds significant growth opportunities.
The acquisition will add Avadel’s lead commercial product, Lumryz, approved as the first and only once-at-bedtime oxybate for extended-release oral suspension for the treatment of cataplexy or excessive daytime sleepiness in patients aged seven years and older with narcolepsy, to Alkermes’ commercial portfolio. The drug has already shown strong market uptake since launch and is expected to generate $265-$275 million in net revenues in 2025, positioning the drug for a robust growth trajectory.
The deal also looks like a good strategic fit for Alkermes as it complements its current pipeline development activities. The integration of Avadel’s operations is expected to generate cost synergies and improve operational efficiency as Alkermes readies for the potential commercial launch of alixorexton, its lead orexin program.
Alkermes is developing alixorexton, a novel, investigational, oral, selective orexin 2 receptor agonist for the treatment of narcolepsy type 1 and type 2 and idiopathic hypersomnia.
The phase II Vibrance-1 study is evaluating alixorexton for treating adults with narcolepsy type 1. Earlier this year, ALKS reported encouraging data from this study, based on which management is planning to initiate a global phase III program early next year for alixorexton to treat this indication.
The phase II Vibrance-2 study is evaluating the safety and efficacy of alixorexton versus placebo in adults with narcolepsy type 2. Data from the Vibrance-2 is expected later in 2025. In April 2025, Alkermes initiated the phase II Vibrance-3 study, evaluating alixorexton in adults with idiopathic hypersomnia. Top-line data from this study is expected in mid-2026.
Alkermes' portfolio of orexin 2 receptor agonists also includes ALKS 4510 and ALKS 7290, which are currently being developed in phase I studies for neuroscience indications.
ALKS' Zacks Rank & Other Stocks to Consider
Alkermes currently sports a Zacks Rank #1 (Strong Buy).
In the past 60 days, loss per share estimates for Werewolf Therapeutics’ 2025 have improved from $1.88 to $1.61. Loss per share estimates for 2026 have narrowed from $1.61 to $1.36 during the same period. HOWL stock has gained 9.5% year to date.
Werewolf's earnings beat estimates in three of the trailing four quarters but missed the mark once, delivering an average surprise of 7.36%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share have risen from $7.25 to $7.29. During the same period, earnings per share for 2026 have increased from $7.74 to $7.81. Year to date, ANIP’s shares have rallied 68.9%.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with an average surprise of 22.66%.
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Alkermes Q3 Earnings and Revenues Beat Estimates, 2025 View Raised
Key Takeaways
Alkermes plc (ALKS - Free Report) reported earnings from continuing operations of 49 cents per share for the third quarter of 2025, which beat the Zacks Consensus Estimate of 42 cents. The company registered earnings of 56 cents per share in the year-ago quarter.
Alkermes’ total revenues of $394.2 million in the third quarter increased 4% from the year-ago quarter due to higher product sales. The top line comprehensively beat the Zacks Consensus Estimate of $355.7 million.
ALKS shares gained 4.3% on Tuesday as investors were impressed by the better-than-expected third-quarter earnings result.
ALKS' Q3 Earnings in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder). The metric also includes manufacturing and/or royalty revenues on net sales of products commercialized by partners.
Sales of the proprietary products portfolio grew 16% year over year to $317.4 million during the third quarter, driven by strong demand for Vivitrol, Aristada and Lybalvi. Sales of proprietary products surpassed management’s expectation, which was in the range of $280-$300 million.
Vivitrol sales increased 7% year over year to $121.1 million in the reported quarter, driven by growth in the alcohol dependence indication market. Its sales beat the Zacks Consensus Estimate of $112.1 million and our model estimate of $108.1 million.
Aristada sales increased 16% year over year to $98.1 million, driven by higher underlying demand due to increased prescriber breadth and strong new-to-brand prescriptions during the quarter. The figure beat the Zacks Consensus Estimate of $87 million and our model estimate of $86.7 million.
Lybalvi generated sales of $98.2 million, up 32% year over year in the reported quarter, due to increased total prescriptions. Its sales also beat the Zacks Consensus Estimate of $87.1 million and our model estimate of $87.5 million. Lybalvi’s total prescriptions grew 25% year over year in the quarter, driven by new patient starts.
Year to date, shares of Alkermes have gained 7.9% compared with the industry’s rise of 10.3%.
Image Source: Zacks Investment Research
Total manufacturing and royalty revenues decreased around 27% year over year to $76.8 million.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $35.6 million. Royalty revenues from Xeplion and certain Invega products were $30.2 million in the third quarter.
Research and development expenses totaled $81.7 million, up around 36% year over year, owing primarily to higher costs related to the ongoing studies on investigational pipeline candidate, alixorexton (formerly ALKS 2680).
Selling, general and administrative expenses totaled $171.8 million, up around 14% year over year, primarily due to the expansion of the psychiatry field organization earlier this year and increased promotional activities for Lybalvi.
As of Sept. 30, 2025, Alkermes had cash and cash equivalents of $1.14 billion compared with $1.05 billion on June 30, 2025.
ALKS Raises 2025 Guidance
Alkermes raised its financial guidance for 2025, which was previously provided in February.
The company now expects total revenues of $1.43-$1.49 billion in 2025, up from the previously guided range of $1.34-$1.43 billion.
Net sales of Vivitrol are now expected to be $460-$470 million (previously $440-$460 million), while Aristada sales are now anticipated to be $360-$370 million (previously $335-$355 million). Alkermes also expects higher full-year Lybalvi’s net sales in the range of $340-$350 million, up from the previous guidance of $320-$340 million.
Net sales from proprietary products are expected to be $300-$320 million for the fourth quarter of 2025.
ALKS Key Updates
During the third quarter, Alkermes signed a definitive agreement to acquire Ireland-based Avadel Pharmaceuticals (AVDL - Free Report) in a deal valued at up to $20.00 per share in cash, representing a total transaction value of approximately $2.1 billion. The transaction is expected to be closed in the first quarter of 2026, subject to customary closing conditions.
The potential acquisition of Avadel will help Alkermes to step into the sleep medicine market, which holds significant growth opportunities.
The acquisition will add Avadel’s lead commercial product, Lumryz, approved as the first and only once-at-bedtime oxybate for extended-release oral suspension for the treatment of cataplexy or excessive daytime sleepiness in patients aged seven years and older with narcolepsy, to Alkermes’ commercial portfolio. The drug has already shown strong market uptake since launch and is expected to generate $265-$275 million in net revenues in 2025, positioning the drug for a robust growth trajectory.
The deal also looks like a good strategic fit for Alkermes as it complements its current pipeline development activities. The integration of Avadel’s operations is expected to generate cost synergies and improve operational efficiency as Alkermes readies for the potential commercial launch of alixorexton, its lead orexin program.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
Alkermes is developing alixorexton, a novel, investigational, oral, selective orexin 2 receptor agonist for the treatment of narcolepsy type 1 and type 2 and idiopathic hypersomnia.
The phase II Vibrance-1 study is evaluating alixorexton for treating adults with narcolepsy type 1. Earlier this year, ALKS reported encouraging data from this study, based on which management is planning to initiate a global phase III program early next year for alixorexton to treat this indication.
The phase II Vibrance-2 study is evaluating the safety and efficacy of alixorexton versus placebo in adults with narcolepsy type 2. Data from the Vibrance-2 is expected later in 2025. In April 2025, Alkermes initiated the phase II Vibrance-3 study, evaluating alixorexton in adults with idiopathic hypersomnia. Top-line data from this study is expected in mid-2026.
Alkermes' portfolio of orexin 2 receptor agonists also includes ALKS 4510 and ALKS 7290, which are currently being developed in phase I studies for neuroscience indications.
ALKS' Zacks Rank & Other Stocks to Consider
Alkermes currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the biotech sector are Werewolf Therapeutics (HOWL - Free Report) and ANI Pharmaceuticals (ANIP - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, loss per share estimates for Werewolf Therapeutics’ 2025 have improved from $1.88 to $1.61. Loss per share estimates for 2026 have narrowed from $1.61 to $1.36 during the same period. HOWL stock has gained 9.5% year to date.
Werewolf's earnings beat estimates in three of the trailing four quarters but missed the mark once, delivering an average surprise of 7.36%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share have risen from $7.25 to $7.29. During the same period, earnings per share for 2026 have increased from $7.74 to $7.81. Year to date, ANIP’s shares have rallied 68.9%.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with an average surprise of 22.66%.