Alkermes plc. (ALKS)

Price$46.38Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares look expensive unless sleep medicines deliver strong growth and pipeline success.

Using the latest completed close, Alkermes is worth about $8.2 billion in equity and roughly $9.0 billion including net debt. Against management’s adjusted profit measure of $370 million to $410 million for 2026, the business value is about 22 to 24 times that measure. Free cash flow, meaning cash left after running and investing in the business, was about $480 million in 2025 but only about $222 million over the latest four quarters. Those multiples leave little room for ordinary execution, supporting an Overvalued verdict.

Big pictureThe business has become a sleep-medicine growth story funded with meaningful debt.

Before Avadel, revenue slipped from $1.66 billion in 2023 to $1.48 billion in 2025, so recent growth is not simply an acceleration of the old portfolio. The Avadel purchase added LUMRYZ and lifted 2026 revenue guidance to $1.73 billion to $1.84 billion, including $315 million to $335 million from LUMRYZ after closing. It also brought about $1.5 billion of term debt. Demand for chronic medicines is not very economic-cycle sensitive, but product lifecycles, exclusivity and clinical results create their own sharp cycles.

Business strengthStrong cash generation and durable products are offset by dilution and acquisition costs.

The 2025 business produced $521 million of operating cash and spent only $40 million on capital projects, leaving about $480 million of free cash flow. Liquidity remains sound: June cash and investments were about $692 million, while current assets exceeded current liabilities by about $861 million. However, debt was $1.50 billion, and share-based compensation was $99 million in 2025 plus $67 million in the first half of 2026. Despite about $228 million of buybacks since 2024, shares outstanding still rose roughly 3.3%.

What could change the storyFaster LUMRYZ growth or successful alixorexton trials could justify today’s rich expectations.

The bull case is concrete: LUMRYZ already contributed $96.6 million in the second quarter, its idiopathic-hypersomnia trial succeeded, and alixorexton has shown durable wakefulness benefits while entering late-stage development. The bear case is that these opportunities arrive slower than investors expect while research spending and interest costs remain high. The valuation becomes easier to defend if adjusted operating profit rises well above $500 million and debt falls quickly. It weakens if results stay near the current $390 million guidance midpoint or pivotal alixorexton trials disappoint.

AI: News

Second-quarter guidance reactionRevenue beat expectations, but unchanged annual guidance disappointed investors and exposed the stock’s high expectations.

On July 28, Alkermes reported second-quarter revenue of $496.0 million, up from $390.7 million a year earlier, with LUMRYZ contributing $96.6 million. Management kept 2026 revenue guidance at $1.73 billion to $1.84 billion and adjusted profit guidance at $370 million to $410 million. Shares closed about 4.2% lower that day; a market report noted the guidance midpoint was below analyst expectations. That timing supports, but does not prove, the results caused the decline.

LUMRYZ trial succeedsA successful late-stage trial opened a larger future market for LUMRYZ, though sales cannot start immediately.

On May 12, the REVITALYZ study met its main and key secondary goals in 104 randomized participants with idiopathic hypersomnia, with very strong statistical results and no new safety signal. Alkermes plans a U.S. filing by year-end 2026, potentially expanding LUMRYZ beyond narcolepsy. However, a settlement prevents commercial sales for this use before March 1, 2028 even if approval arrives sooner. Shares rose about 6.5% that day; the timing is consistent with investor enthusiasm but does not establish sole causation.

Avadel acquisition closesThe Avadel purchase added a fast-growing sleep drug but sharply increased leverage and integration risk.

Alkermes completed the Avadel acquisition on February 12. The June filing put preliminary purchase consideration at about $2.31 billion, while Alkermes borrowed $1.525 billion of term loans to help fund the deal. The acquisition added LUMRYZ, which generated $136.1 million from closing through June and is central to 2026 growth. The trade-off is clear: Alkermes gained a differentiated commercial asset and sleep-medicine platform, but shareholders now carry much higher interest expense and execution risk than before the deal.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$1.48B	$1.56B	$1.66B	$1.11B	$1.17B	$1.04B	$1.17B	$1.09B	$903.4M	$745.7M	$628.3M	$618.8M	$596.3M	$575.5M	$390.0M	$186.6M	$178.3M
Gross profit	$1.28B	$1.31B	$1.41B	$893.7M	$976.4M	$860.4M	$990.6M	$917.9M	$748.6M	$613.6M	$489.3M	$443.0M	—	$405.1M	$262.4M	$134.5M	$128.8M
Gross margin	86.69%	84.25%	84.79%	80.39%	83.19%	82.83%	84.59%	83.88%	82.87%	82.28%	77.88%	71.58%	—	70.38%	67.29%	72.04%	72.27%
Research & development	$324.0M	$245.3M	$270.8M	$272.7M	$290.9M	$394.6M	$512.8M	$425.4M	$412.9M	$387.1M	$344.4M	$272.0M	$128.1M	$140.0M	$141.9M	$97.2M	$95.4M
Operating expenses	$1.22B	$1.14B	$1.25B	$1.12B	$1.08B	$1.15B	$1.35B	$1.19B	$1.05B	$954.4M	$852.6M	$705.9M	$561.9M	$493.7M	$478.3M	$232.3M	$221.3M
Operating income	$254.0M	$420.6M	$414.1M	−$6.1M	$97.7M	−$112.4M	−$175.5M	−$99.1M	−$147.9M	−$208.7M	−$224.3M	−$87.1M	$34.5M	$81.8M	−$88.3M	−$45.6M	−$43.0M
Operating margin	17.21%	27.00%	24.90%	−0.55%	8.33%	−10.82%	−14.99%	−9.06%	−16.37%	−27.98%	−35.70%	−14.08%	5.78%	14.21%	−22.64%	−24.45%	−24.14%
EBITDA	$281.1M	$449.2M	$489.0M	$71.8M	$176.4M	−$30.6M	−$95.1M	$4.5M	−$49.4M	−$114.4M	−$138.7M	$10.9M	$105.2M	$155.6M	−$40.4M	−$37.0M	−$18.0M
EBITDA margin	19.05%	28.84%	29.40%	6.46%	15.03%	−2.94%	−8.12%	0.41%	−5.47%	−15.34%	−22.08%	1.77%	17.65%	27.03%	−10.36%	−19.81%	−10.10%
Net income	$241.7M	$367.1M	$355.8M	−$158.3M	−$48.2M	−$110.9M	−$196.6M	−$139.3M	−$157.9M	−$208.4M	−$227.2M	−$30.1M	$17.6M	$25.0M	−$113.7M	−$45.5M	−$39.6M
Net profit margin	16.37%	23.57%	21.39%	−14.24%	−4.10%	−10.67%	−16.79%	−12.73%	−17.48%	−27.95%	−36.15%	−4.86%	2.96%	4.34%	−29.15%	−24.40%	−22.23%
Basic EPSper basic share	$1.47	$2.22	$2.14	-$0.97	-$0.30	-$0.70	-$1.25	-$0.90	-$1.03	-$1.38	-$1.52	-$0.21	$0.15	$0.19	-$0.99	-$0.48	-$0.42
Diluted EPSper diluted share	$1.43	$2.17	$2.10	-$0.97	-$0.29	-$0.70	-$1.25	-$0.90	-$1.03	-$1.38	-$1.52	-$0.21	$0.14	$0.18	-$0.99	-$0.48	-$0.42

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

17.45%of listed shares

BlackRock, Inc.29.24M shares · Jun 30, 2026

View holders

Top 20 reported holders of ALKS
Holder	% owned
BlackRock, Inc.	17.45%29.24M shares
BAKER BROS. ADVISORS LP	5.98%10.01M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.66%9.49M shares
STATE STREET CORP	5.47%9.16M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.49%7.52M shares
PRICE T ROWE ASSOCIATES INC /MD/	4.02%6.74M shares
RENAISSANCE TECHNOLOGIES LLC	3.86%6.46M shares
GEODE CAPITAL MANAGEMENT, LLC	2.67%4.48M shares
DIMENSIONAL FUND ADVISORS LP	2.50%4.19M shares
Deep Track Capital, LP	2.39%4M shares
AMERICAN CENTURY COMPANIES INC	2.36%3.95M shares
Holocene Advisors, LP	2.15%3.6M shares
Commodore Capital LP	1.79%3M shares
WELLINGTON MANAGEMENT GROUP LLP	1.68%2.81M shares
PRIMECAP MANAGEMENT CO/CA/	1.51%2.53M shares
FIRST TRUST ADVISORS LP	1.45%2.42M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.39%2.34M shares
Nuveen, LLC	1.39%2.32M shares
NORGES BANK	1.29%2.16M shares
BVF INC/IL	1.29%2.15M shares

Percentages use 167.54M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)40$26.79M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 12, 2026Form 4 · 10b5-1	Wright Christopher IDirector	SellOrdinary Shares	2.0K	$45.10	$90.2K	25.7K
Jun 4, 2026Form 4 · 10b5-1	Gaffin David JosephEVP, CLO, Alkermes, Inc.	SellOrdinary Shares	2.0K	$43.05	$87.6K	229.5K
Jun 1, 2026Form 4 · 10b5-1	Hopkinson Craig C.EVP R&D, Chief Medical Officer	SellOrdinary Shares	9.0K	$41.67	$375.0K	77.4K
May 29, 2026Form 4	Parisi Samuel JosephVP, Finance (Interim PAO)	SellOrdinary Shares	16.2K	$42.36	$687.0K	7.7K
May 4, 2026Form 4 · 10b5-1	Gaffin David JosephEVP, CLO, Alkermes, Inc.	SellOrdinary Shares	2.0K	$33.20	$67.5K	231.6K

Review ownership filings at SEC.gov ↗

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