We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LQDA versus ALKS: Which Biotech Stock Is the Better Buy Now?
Read MoreHide Full Article
Key Takeaways
Liquidia's Yutrepia launch has driven rapid growth and helped deliver its fourth profitable quarter.
Alkermes benefits from multiple commercial products, Lumryz and a broader neuroscience pipeline.
LQDA's growth is concentrated in Yutrepia, while ALKS has a more diversified revenue base.
Liquidia Corporation (LQDA - Free Report) and Alkermes plc (ALKS - Free Report) are both commercial-stage biopharmaceutical companies with specialty therapies and a similar mid-cap biotech investor profile.
LQDA is focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
On the other hand, Alkermes has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia, bipolar I disorder and narcolepsy.
While their therapeutic areas of focus are not identical, the two companies provide an interesting contrast in terms of marketed products, pipeline opportunities, revenue generation and growth prospects. Comparing these fundamentals can help investors assess how each company’s business profile and development pipeline may shape its growth prospects.
The Case for LQDA
Lead drug Yutrepia is an inhaled dry-powder formulation of treprostinil developed using Liquidia’s proprietary PRINT technology. The technology delivers the drug deeper into the lungs through an easy-to-use inhaler while enabling higher doses than other inhaled treprostinil therapies.
Launched in June 2025, Yutrepia was approved by the FDA in May 2025 for the treatment of both PAH and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
As of July 31, 2026, Liquidia had received approximately 5,900 unique prescriptions since launch and started more than 5,000 patients on therapy. More than 1,100 physicians had prescribed Yutrepia since its launch, with more than 30% having written prescriptions for at least five patients.
Liquidia currently generates revenues from sales of Yutrepia inhalation powder, and through a profit-sharing arrangement with Sandoz under a promotion agreement.
LQDA is looking to explore Yutrepia in additional indications, including pulmonary hypertension associated with chronic obstructive pulmonary disease, idiopathic pulmonary fibrosis, progressive pulmonary fibrosis and Raynaud’s phenomenon associated with systemic sclerosis (SSc-RP).
The FDA recently granted Fast Track designation to Yutrepia inhalation powder for the treatment of SSc-RP.
Liquidia is also developing L606, an investigational liposomal formulation of treprostinil licensed from Pharmosa Biopharm, designed for twice-daily administration using a short-duration, next-generation nebulizer. It is also being evaluated in PAH and PH-ILD. The phase III Re-Spire study on L606 is currently enrolling.
Yutrepia continues to be the main contributor to LQDA’s top-line growth, leaving Liquidia highly dependent on the drug to drive further revenue expansion. This concentration presents a notable risk, particularly as the company has a relatively limited pipeline and few near-term growth drivers beyond Yutrepia.
Liquidia also faces an ongoing patent dispute with United Therapeutics over Yutrepia’s use in PH-ILD. According to management, an unfavorable ruling could lead to royalty payments or other injunctive or adjunctive remedies. With a decision expected any time soon, the litigation adds uncertainty to Yutrepia’s financial profile and could affect its economics, addressable market or ability to fully capitalize on its commercial opportunity.
The Case for ALKS
Alkermes primarily derives revenues from net sales of its proprietary products – Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder), Lumryz (narcolepsy) and manufacturing and/or royalty revenues on net sales of products commercialized by the company’s partners.
Vumerity, commercialized by Biogen, generates manufacturing and royalty revenues for Alkermes. The drug is to treat relapsing forms of multiple sclerosis.
Alkermes’ revenues are being driven by its proprietary products, Vivitrol, Aristada and Lybalvi. The alcohol dependence indication continues to be an important growth driver for Vivitrol.
Meanwhile, Aristada continues to generate meaningful revenues for the company.
Lybalvi has strengthened Alkermes' commercial portfolio, supported by steady prescription growth and expanding adoption in the schizophrenia and bipolar I disorder markets.
Alkermes’ 2023 separation of its oncology business into independently traded Mural Oncology streamlined the company’s operations and sharpened its focus on neuroscience. The move is expected to allow Alkermes to allocate capital and resources more efficiently toward its core neurological portfolio, while potentially supporting margin improvement and long-term profitability.
Alkermes added narcolepsy drug, Lumryz, to its portfolio following the acquisition of Avadel Pharmaceuticals in February 2026. The acquisition has diversified the company’s commercial portfolio in the sleep disorder market.
Lumryz accounted for $136.1 million revenues during the first six months of 2026 following its addition to the portfolio.
Alkermes’ pipeline includes late-stage clinical candidates in development for narcolepsy and idiopathic hypersomnia, and orexin 2 receptor agonists in early clinical development for other neurological disorders, including attention-deficit hyperactivity disorder and fatigue associated with multiple sclerosis and Parkinson’s disease.
An important candidate in Alkermes’ pipeline is alixorexton, a novel, investigational, oral, selective orexin 2 receptor (“OX2R”) agonist, which is being developed for the treatment of narcolepsy type 1 (NT1) and narcolepsy type 2 and idiopathic hypersomnia (IH).
The FDA granted Breakthrough Therapy designation to alixorexton for NT1 and Orphan Drug Designation for IH. The European Commission also granted Orphan Drug Designation for narcolepsy. These designations underscore the potential of alixorexton to address significant unmet needs and could help accelerate its regulatory development.
Alkermes has a strong cash position. As of June 30, 2026, the company recorded cash, cash equivalents and total investments of $691.6 million.
A Look at Estimates: LQDA vs ALKS
The Zacks Consensus Estimate for LQDA’s 2026 sales implies a year-over-year increase of 340.72%, while that for earnings per share (EPS) suggests a year-over-year improvement of 421.25%.
The Zacks Consensus Estimate for 2026 EPS has moved south to $2.57 from $3.02 and that for 2027 EPS has decreased to $4.38 from $5.31 in the past 60 days.
LQDA’s Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ALKS’ 2026 sales implies a year-over-year increase of 23.62%, while that for EPS suggests a year-over-year decrease of 128.87%, primarily due to acquisition expenses. Loss estimates for 2026 have remained unchanged at 56 cents in the past 60 days. EPS estimates for 2027 have also remained unchanged at 24 cents.
ALKS’ Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of LQDA and ALKS
From a price-performance perspective, LQDA has fetched better returns than ALKS so far this year. Shares of LQDA have surged 105%, while those of ALKS have gained 45.8%. The industry has gained 7.9% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, LQDA’s shares currently trade at 6.21X forward sales, higher than 3.60X for ALKS.
Alkermes offers a more diversified investment profile than Liquidia, with multiple commercial products, a growing presence in the sleep-disorder market and a broader pipeline of potential growth drivers. The addition of Lumryz following the Avadel acquisition has further diversified the business.
While LQDA has delivered significantly faster revenue growth, driven by the successful launch of Yutrepia, its investment case remains heavily concentrated around a single product and faces increasing competitive, litigation and estimate-revision risks.
Given the more diversified business model, stable estimates and a better Zacks Rank, ALKS offers a more balanced investment case than LQDA at this point.
View the Zacks #1 Rank List
Image: Bigstock
LQDA versus ALKS: Which Biotech Stock Is the Better Buy Now?
Key Takeaways
Liquidia Corporation (LQDA - Free Report) and Alkermes plc (ALKS - Free Report) are both commercial-stage biopharmaceutical companies with specialty therapies and a similar mid-cap biotech investor profile.
LQDA is focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
On the other hand, Alkermes has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia, bipolar I disorder and narcolepsy.
While their therapeutic areas of focus are not identical, the two companies provide an interesting contrast in terms of marketed products, pipeline opportunities, revenue generation and growth prospects. Comparing these fundamentals can help investors assess how each company’s business profile and development pipeline may shape its growth prospects.
The Case for LQDA
Lead drug Yutrepia is an inhaled dry-powder formulation of treprostinil developed using Liquidia’s proprietary PRINT technology. The technology delivers the drug deeper into the lungs through an easy-to-use inhaler while enabling higher doses than other inhaled treprostinil therapies.
Launched in June 2025, Yutrepia was approved by the FDA in May 2025 for the treatment of both PAH and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
As of July 31, 2026, Liquidia had received approximately 5,900 unique prescriptions since launch and started more than 5,000 patients on therapy. More than 1,100 physicians had prescribed Yutrepia since its launch, with more than 30% having written prescriptions for at least five patients.
Strong Yutrepia sales helped drive the company's fourth consecutive profitable quarter.
Liquidia currently generates revenues from sales of Yutrepia inhalation powder, and through a profit-sharing arrangement with Sandoz under a promotion agreement.
LQDA is looking to explore Yutrepia in additional indications, including pulmonary hypertension associated with chronic obstructive pulmonary disease, idiopathic pulmonary fibrosis, progressive pulmonary fibrosis and Raynaud’s phenomenon associated with systemic sclerosis (SSc-RP).
The FDA recently granted Fast Track designation to Yutrepia inhalation powder for the treatment of SSc-RP.
Liquidia is also developing L606, an investigational liposomal formulation of treprostinil licensed from Pharmosa Biopharm, designed for twice-daily administration using a short-duration, next-generation nebulizer. It is also being evaluated in PAH and PH-ILD. The phase III Re-Spire study on L606 is currently enrolling.
Yutrepia continues to be the main contributor to LQDA’s top-line growth, leaving Liquidia highly dependent on the drug to drive further revenue expansion. This concentration presents a notable risk, particularly as the company has a relatively limited pipeline and few near-term growth drivers beyond Yutrepia.
Liquidia also faces an ongoing patent dispute with United Therapeutics over Yutrepia’s use in PH-ILD. According to management, an unfavorable ruling could lead to royalty payments or other injunctive or adjunctive remedies. With a decision expected any time soon, the litigation adds uncertainty to Yutrepia’s financial profile and could affect its economics, addressable market or ability to fully capitalize on its commercial opportunity.
The Case for ALKS
Alkermes primarily derives revenues from net sales of its proprietary products – Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder), Lumryz (narcolepsy) and manufacturing and/or royalty revenues on net sales of products commercialized by the company’s partners.
Vumerity, commercialized by Biogen, generates manufacturing and royalty revenues for Alkermes. The drug is to treat relapsing forms of multiple sclerosis.
Alkermes’ revenues are being driven by its proprietary products, Vivitrol, Aristada and Lybalvi. The alcohol dependence indication continues to be an important growth driver for Vivitrol.
Meanwhile, Aristada continues to generate meaningful revenues for the company.
Lybalvi has strengthened Alkermes' commercial portfolio, supported by steady prescription growth and expanding adoption in the schizophrenia and bipolar I disorder markets.
Alkermes’ 2023 separation of its oncology business into independently traded Mural Oncology streamlined the company’s operations and sharpened its focus on neuroscience. The move is expected to allow Alkermes to allocate capital and resources more efficiently toward its core neurological portfolio, while potentially supporting margin improvement and long-term profitability.
Alkermes added narcolepsy drug, Lumryz, to its portfolio following the acquisition of Avadel Pharmaceuticals in February 2026. The acquisition has diversified the company’s commercial portfolio in the sleep disorder market.
Lumryz accounted for $136.1 million revenues during the first six months of 2026 following its addition to the portfolio.
Alkermes’ pipeline includes late-stage clinical candidates in development for narcolepsy and idiopathic hypersomnia, and orexin 2 receptor agonists in early clinical development for other neurological disorders, including attention-deficit hyperactivity disorder and fatigue associated with multiple sclerosis and Parkinson’s disease.
An important candidate in Alkermes’ pipeline is alixorexton, a novel, investigational, oral, selective orexin 2 receptor (“OX2R”) agonist, which is being developed for the treatment of narcolepsy type 1 (NT1) and narcolepsy type 2 and idiopathic hypersomnia (IH).
The FDA granted Breakthrough Therapy designation to alixorexton for NT1 and Orphan Drug Designation for IH. The European Commission also granted Orphan Drug Designation for narcolepsy. These designations underscore the potential of alixorexton to address significant unmet needs and could help accelerate its regulatory development.
Alkermes has a strong cash position. As of June 30, 2026, the company recorded cash, cash equivalents and total investments of $691.6 million.
A Look at Estimates: LQDA vs ALKS
The Zacks Consensus Estimate for LQDA’s 2026 sales implies a year-over-year increase of 340.72%, while that for earnings per share (EPS) suggests a year-over-year improvement of 421.25%.
The Zacks Consensus Estimate for 2026 EPS has moved south to $2.57 from $3.02 and that for 2027 EPS has decreased to $4.38 from $5.31 in the past 60 days.
LQDA’s Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ALKS’ 2026 sales implies a year-over-year increase of 23.62%, while that for EPS suggests a year-over-year decrease of 128.87%, primarily due to acquisition expenses. Loss estimates for 2026 have remained unchanged at 56 cents in the past 60 days. EPS estimates for 2027 have also remained unchanged at 24 cents.
ALKS’ Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of LQDA and ALKS
From a price-performance perspective, LQDA has fetched better returns than ALKS so far this year. Shares of LQDA have surged 105%, while those of ALKS have gained 45.8%. The industry has gained 7.9% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, LQDA’s shares currently trade at 6.21X forward sales, higher than 3.60X for ALKS.
Image Source: Zacks Investment Research
Which Stock Is a Better Pick for Now?
While LQDA has a Zacks Rank #5 (Strong Sell), ALKS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alkermes offers a more diversified investment profile than Liquidia, with multiple commercial products, a growing presence in the sleep-disorder market and a broader pipeline of potential growth drivers. The addition of Lumryz following the Avadel acquisition has further diversified the business.
While LQDA has delivered significantly faster revenue growth, driven by the successful launch of Yutrepia, its investment case remains heavily concentrated around a single product and faces increasing competitive, litigation and estimate-revision risks.
Given the more diversified business model, stable estimates and a better Zacks Rank, ALKS offers a more balanced investment case than LQDA at this point.