Alkermes plc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did ALKS Beat Earnings? Q2 2025 Results
Alkermes delivered a standout second quarter, posting earnings per share of $0.52 against a consensus estimate of $0.38, a beat of 37.93%, while revenue of $390.66 million cleared expectations by 14.46% despite slipping 2.1% year-over-year. The headline revenue decline masked a genuinely strong underlying performance: total proprietary net sales climbed 14% to $307.20 million, led by 18% growth in both ARISTADA and LYBALVI and a 9% gain in VIVITROL, with the top-line softness driven almost entirely by the expiration of the INVEGA SUSTENNA royalty in August 2024, which pulled manufacturing and royalty revenues down to $83.40 million from $129.90 million a year ago. Higher R&D investment of $77.37 million, up sharply from $59.65 million, reflected accelerating spend behind alixorexton, the company's narcolepsy candidate that produced positive Phase 2 topline results in the Vibrance-1 study. Looking ahead, Alkermes reiterated its full-year 2025 guidance, targeting total revenues of $1.34 billion to $1.43 billion and GAAP net income of $175 million to $205 million, with a global Phase 3 program for alixorexton expected to begin following Vibrance-2 topline data this fall.
- Strong growth across all three proprietary products (VIVITROL, ARISTADA, LYBALVI)
- ARISTADA revenue included approximately $11.0M of gross-to-net favorability from Medicaid utilization adjustments
- VIVITROL revenue included approximately $9.0M of gross-to-net favorability from Medicaid utilization adjustments
- LYBALVI total prescriptions grew 22% year-over-year
- Decline in manufacturing and royalty revenues due to expiration of royalty on U.S. net sales of INVEGA SUSTENNA in August 2024
“Our second quarter results reflect strong performance across all three of our proprietary products and robust profitability and cash flow generation.”
Alkermes CEO, on the earnings call
Forward Guidance & Outlook
Alkermes reiterated its 2025 financial expectations: total revenues of $1,340M–$1,430M; COGS of $185M–$205M; R&D expense of $305M–$335M; SG&A expense of $655M–$685M; GAAP net income of $175M–$205M; EBITDA of $215M–$245M; Adjusted EBITDA of $310M–$340M; effective tax rate of approximately 17%. Product-level net sales expectations: VIVITROL $440M–$460M, ARISTADA $335M–$355M, LYBALVI $320M–$340M. The company plans to present detailed Vibrance-1 results at the upcoming World Sleep Congress, expects topline Vibrance-2 results in fall 2025, and intends to initiate a global Phase 3 program for alixorexton.
ALKS YoY Financials
ALKS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.