Alkermes plc ALKS reported break-even earnings for the second quarter of 2026 against the Zacks Consensus Estimate of a loss of 4 cents per share. The company had recorded earnings of 52 cents per share in the year-ago quarter.
During the second quarter, the company recorded a change in the fair value of contingent consideration of $26.4 million related to the Avadel acquisition contingent value right (CVR) milestone.
Alkermes reported total revenues of $496 million for the second quarter, up almost 27% from the year-ago quarter, driven by higher product sales. The top line beat the Zacks Consensus Estimate of $454 million.
Shares of Alkermes were down in pre-market trading following the announcement of the earnings.
The stock has rallied 88.5% so far this year compared with the industry’s rise of 2.6%.
Image Source: Zacks Investment Research
ALKS’ Q2 Earnings in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia), Lybalvi (schizophrenia and bipolar I disorder) and the newly acquired sleep disorder drug, Lumryz. The metric also includes manufacturing and/or royalty revenues on net sales of products commercialized by partners.
Sales of the proprietary products portfolio grew 34% year over year to $411.7 million during the second quarter, driven by solid demand across the commercial portfolio. Sales of proprietary products were above management’s guided range of $385-$405 million.
Vivitrol sales increased 2.3% year over year to $124.5 million in the reported quarter. The metric beat the Zacks Consensus Estimate of $117 million.
Aristada sales decreased 4.5% year over year to $96.7 million. The figure, however, beat the Zacks Consensus Estimate of $95 million.
Lybalvi generated sales of $94 million, up 11.5% year over year in the reported quarter, due to increased total prescriptions. Its sales, however, missed the Zacks Consensus Estimate of $98 million. Lybalvi’s total prescriptions grew 18% year over year in the quarter.
Newly acquired sleep disorder drug Lumryz recorded revenues worth $96.6 million in the second quarter. The metric beat the Zacks Consensus Estimate of $89 million.
In February 2026, Alkermes completed the previously announced acquisition of Ireland-based Avadel Pharmaceuticals, which added the latter’s FDA-approved product, Lumryz, to its commercial portfolio.
Lumryz is 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.
Total manufacturing and royalty revenues increased 1.1% year over year to $84.3 million.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $30.6 million. Royalty revenues from Xeplion and certain Invega products were $27.5 million in the second quarter.
Research and development expenses totaled $112.9 million, up around 45.8% year over year.
Selling, general and administrative expenses totaled $217.6 million, up around 27.4% year over year.
As of June 30, 2026, Alkermes had cash and cash equivalents of $691.6 million compared with $538.2 million as of March 31, 2026.
ALKS’ 2026 Guidance Reiterated
The company expects total revenues in the band of $1.73-$1.84 billion for 2026, unchanged from the previous expectation.
Net sales of Vivitrol are expected to be in the range of $460-$480 million, while Aristada sales are anticipated in the range of $365-$385 million. Lybalvi’s net sales are expected in the $380-$400 million range.
Net sales from Lumryz are expected to be in the range of $315-$335 million in 2026.
Research and development expenses are anticipated in the range of $445-$485 million. Selling, general and administrative expenses are projected in the range of $890-$930 million.
The company expects adjusted EBITDA to be in the range of $370-$410 million.
ALKS Recent Pipeline Updates
Alkermes is developing alixorexton, a novel, investigational, oral, selective orexin 2 receptor agonist for the treatment of narcolepsy type 1 (NT1) and narcolepsy type 2 (NT2) and idiopathic hypersomnia (IH).
In April 2026, the company initiated the phase III Brilliance studies, evaluating the safety and efficacy of alixorexton versus placebo in adults with NT1 and NT2.
Alixorexton is also being evaluated in the phase II Vibrance-3 study for treating patients with IH. Top-line data from this study are expected by the end of 2026.
In June 2026, the FDA granted an orphan drug designation (ODD) to alixorexton for the treatment of IH, and the European Commission granted ODD to alixorexton for the treatment of patients with narcolepsy.
Alkermes plc Price, Consensus and EPS Surprise
Alkermes plc price-consensus-eps-surprise-chart | Alkermes plc Quote
ALKS' Zacks Rank & Stocks to Consider
Alkermes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Kiniksa Pharmaceuticals KNSA and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 3.8% year to date.
Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.25, while estimates for 2027 have increased from $1.70 to $1.76 during the same time. KNSA shares have soared 54% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 1.53%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 144.8% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
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