A month has gone by since the last earnings report for Alkermes (ALKS). Shares have added about 4.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Alkermes due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Alkermes Q2 Earnings Beat Estimates, Proprietary Drugs Aid Sales
Alkermes reported earnings from continuing operations of 52 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate of 41 cents. The company registered earnings of 53 cents per share in the year-ago quarter.
Alkermes’ total revenues of $390.7 million in the second quarter decreased 2.1% from the year-ago quarter due to lower manufacturing and royalty revenues. The top line, however, comprehensively beat the Zacks Consensus Estimate of $339 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder). The metric also includes manufacturing and/or royalty revenues on net sales of products commercialized by partners.
Sales of the proprietary products portfolio grew 14% year over year to $307.2 million during the second quarter, driven by strong demand for Vivitrol, Aristada and Lybalvi. Sales of proprietary products surpassed management’s expectation, which was in the range of $260-$280 million.
Vivitrol sales increased 9% year over year to $121.7 million in the second quarter, driven by growth in the alcohol dependence indication. Its sales beat the Zacks Consensus Estimate of $111 million and our model estimate of $113.5 million.
Aristada sales increased 18% year over year to $101.3 million, driven by underlying demand and strong new-to-brand prescriptions during the quarter. The figure beat the Zacks Consensus Estimate of $84 million and our model estimate of $84.1 million.
Lybalvi generated sales of $84.3 million, up 18% year over year in the reported quarter. Its sales also beat the Zacks Consensus Estimate of $79 million and our model estimate of $77.7 million. Lybalvi total prescriptions grew 22% year over year in the quarter, driven by new patient starts.
Total manufacturing and royalty revenues decreased 35.8% year over year to $83.4 million.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $39.4 million. Royalty revenues from Xeplion and certain Invega products were $30.3 million in the second quarter.
Research and development expenses totaled $77.4 million, up almost 30% year over year, owing to higher costs related to the ongoing studies on pipeline candidate, alixorexton.
Selling, general and administrative expenses totaled $170.8 million, up almost 1.6% year over year.
As of June 30, 2025, Alkermes had cash and cash equivalents of $1.05 billion compared with $916.2 million as of March 31, 2025.
2025 Guidance
Alkermes reiterated its financial guidance for 2025, which was provided in February.
The company expects total revenues of $1.34-$1.43 billion for 2025.
Net sales of Vivitrol are expected to be $440-$460 million, while Aristada sales are anticipated to be $335-$355 million. Lybalvi’s net sales are expected to be in the range of $320-$340 million.
Net sales from proprietary products are expected to be in the range of $280-$300 million for the third quarter of 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -14.21% due to these changes.
VGM Scores
Currently, Alkermes has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Alkermes belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Exelixis (EXEL), has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Exelixis reported revenues of $568.26 million in the last reported quarter, representing a year-over-year change of -10.8%. EPS of $0.75 for the same period compares with $0.84 a year ago.
Exelixis is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of +44.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.9%.
Exelixis has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Alkermes plc (ALKS): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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