Alkermes Q3 2026: Revenue Beats, Avadel Costs Leave EPS Missing Expectations

Alkermes posted Q3 2026 revenue of $480.1 million, a 21.8% jump year over year that cleared the $464.9 million consensus by 3.27%. The newly acquired narcolepsy drug LUMRYZ drove a significant portion of that growth, contributing $89.9 million in its first full quarter under Alkermes ownership after the Avadel Pharmaceuticals deal closed in February 2026.

GAAP diluted EPS came in at $0.09, missing the $0.25 consensus, with $29.8 million in Avadel-related acquisition costs doing most of the damage. Inventory step-up charges, intangible amortization, and interest on acquisition debt compressed GAAP operating income.

Beyond LUMRYZ, the legacy portfolio held up, with VIVITROL leading product revenue at $127.6 million. LYBALVI prescriptions grew year over year, though widening gross-to-net deductions into 2027 are a margin headwind worth monitoring.

Management reiterated full-year 2026 guidance, projecting total revenues of $1.73 billion to $1.84 billion and adjusted EBITDA of $370 million to $410 million. The guidance holds despite the acquisition debt load and a full-year GAAP net loss forecast of $95 million to $115 million, signaling that leadership views the LUMRYZ integration costs as a defined, near-term drag rather than a structural problem.

The longer-term case rests on the orexin pipeline. Alkermes reported clinical proof-of-concept data for an orexin agonist in ADHD and initiated a phase 2 study in major depressive disorder. Positive phase 3 results for LUMRYZ in idiopathic hypersomnia also triggered a $26.4 million increase in the fair value of the Avadel contingent value right, and management flagged several additional orexin data readouts expected over the next year as the next meaningful catalysts for the stock.