It has been about a month since the last earnings report for Alkermes (ALKS). Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Alkermes due for a breakout? 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 drivers.
Alkermes Q3 Earnings and Revenues Beat Estimates, 2025 View Raised
Alkermes reported earnings from continuing operations of 49 cents per share for the third quarter of 2025, which beat the Zacks Consensus Estimate of 42 cents. The company registered earnings of 56 cents per share in the year-ago quarter.
Alkermes’ total revenues of $394.2 million in the third quarter increased 4% from the year-ago quarter due to higher product sales. The top line comprehensively beat the Zacks Consensus Estimate of $355.7 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 16% year over year to $317.4 million during the third quarter, driven by strong demand for Vivitrol, Aristada and Lybalvi. Sales of proprietary products surpassed management’s expectation, which was in the range of $280-$300 million.
Vivitrol sales increased 7% year over year to $121.1 million in the reported quarter, driven by growth in the alcohol dependence indication market. Its sales beat the Zacks Consensus Estimate of $112.1 million and our model estimate of $108.1 million.
Aristada sales increased 16% year over year to $98.1 million, driven by higher underlying demand due to increased prescriber breadth and strong new-to-brand prescriptions during the quarter. The figure beat the Zacks Consensus Estimate of $87 million and our model estimate of $86.7 million.
Lybalvi generated sales of $98.2 million, up 32% year over year in the reported quarter, due to increased total prescriptions. Its sales also beat the Zacks Consensus Estimate of $87.1 million and our model estimate of $87.5 million. Lybalvi’s total prescriptions grew 25% year over year in the quarter, driven by new patient starts.
Total manufacturing and royalty revenues decreased around 27% year over year to $76.8 million.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $35.6 million. Royalty revenues from Xeplion and certain Invega products were $30.2 million in the third quarter.
Research and development expenses totaled $81.7 million, up around 36% year over year, owing primarily to higher costs related to the ongoing studies on investigational pipeline candidate, alixorexton.
Selling, general and administrative expenses totaled $171.8 million, up around 14% year over year, primarily due to the expansion of the psychiatry field organization earlier this year and increased promotional activities for Lybalvi.
As of Sept. 30, 2025, Alkermes had cash and cash equivalents of $1.14 billion compared with $1.05 billion on June 30, 2025.
2025 Guidance
Alkermes raised its financial guidance for 2025, which was previously provided in February.
The company now expects total revenues of $1.43-$1.49 billion in 2025, up from the previously guided range of $1.34-$1.43 billion.
Net sales of Vivitrol are now expected to be $460-$470 million (previously $440-$460 million), while Aristada sales are now anticipated to be $360-$370 million (previously $335-$355 million). Alkermes also expects higher full-year Lybalvi’s net sales in the range of $340-$350 million, up from the previous guidance of $320-$340 million.
Net sales from proprietary products are expected to be $300-$320 million for the fourth quarter of 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.67% due to these changes.
VGM Scores
At this time, Alkermes has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. 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. Notably, 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 is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, BioMarin Pharmaceutical (BMRN), a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended September 2025 more than a month ago.
BioMarin reported revenues of $776.13 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.12 for the same period compares with $0.91 a year ago.
For the current quarter, BioMarin is expected to post earnings of $0.94 per share, indicating a change of +2.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
BioMarin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Alkermes plc (ALKS): Free Stock Analysis Report BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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