Alkermes' Q1 Earnings and Revenues Fall Short of Estimates

Alkermes plc ALKS reported earnings from continuing operations of 13 cents per share for first-quarter 2025, which missed the Zacks Consensus Estimate of 28 cents. The company had reported earnings of 21 cents per share in the year-ago quarter.

Alkermes’ total revenues of $306.5 million in the first quarter decreased 12.5% from the year-ago quarter’s level due to lower manufacturing and royalty revenues. The top line also missed the Zacks Consensus Estimate of $317 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Year to date, shares of Alkermes have risen 6.4% against the industry’s decline of 1.8%.

ALKS' Q1 Earnings 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) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.

Sales of the proprietary products portfolio grew 4.7% year over year to $244.5 million during the first quarter, primarily driven by Lybalvi. Sales of proprietary products surpassed management’s expectation, which was in the range of $220-$240 million.

Sales of proprietary drug Vivitrol increased 3.4% year over year to $101 million in the first quarter. Vivitrol sales beat the Zacks Consensus Estimate of $99 million but missed our model estimate of $103.8 million.

Lybalvi generated sales of $70 million, up almost 22.8% year over year. Lybalvi's sales missed the Zacks Consensus Estimate of $71 million and our model estimate of $75.1 million. Lybalvi total prescriptions grew 22% year over year in the quarter.

Aristada sales decreased 6.8% year over year to $73.5 million. The figure missed the Zacks Consensus Estimate of $79 million and our model estimate of $80.7 million.

Total manufacturing and royalty revenues decreased around 46.9% year over year to $62 million.

Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were $27.8 million. Royalty revenues from Xeplion and certain Invega products were $17.7 million in the first quarter.

Research and development expenses totaled $71.8 million, up almost 6.2% year over year, owing to higher costs related to the ongoing studies on pipeline candidate, ALKS 2680.

Selling, general and administrative expenses totaled $171.7 million, down almost 4.4% year over year.

As of March 31, 2025, Alkermes had cash and cash equivalents of $916.2 million compared with $824.8 million as of Dec. 31, 2024.

ALKS Reiterates 2025 Guidance

Alkermes reiterated its financial guidance for 2025, which it had provided in February.

The company continues to expect total revenues in the band of $1.34-$1.43 billion for 2025.

Net sales of Vivitrol are expected to be in the range of $440-$460 million, while Aristada sales are anticipated in the band of $335-$355 million. Lybalvi’s net sales are expected in the $320-$340 million range.

Net sales from proprietary products are expected to be in the range of $260-$280 million in the second quarter of 2025.

ALKS' Pipeline Development Activities

In April 2025, the company initiated the phase II Vibrance-3 study, evaluating the safety and efficacy of its novel, investigational and oral orexin 2 receptor agonist, ALKS 2680, in adults with idiopathic hypersomnia, a rare, chronic and neurological sleep disorder.

The primary endpoint of the Vibrance-3 study will check, by dose level, whether treatment with ALKS 2680 leads to a greater decrease in sleepiness versus placebo alone, as measured by the change in Epworth Sleepiness Scale score.

This apart, the phase II Vibrance-1 study is evaluating ALKS 2680 for treating adults with narcolepsy type 1 (NT1). Top-line data from the same is expected in the third quarter of 2025.

The phase II Vibrance-2 study is evaluating the safety and efficacy of ALKS 2680 versus placebo in adults with narcolepsy type 2 (NT2). Enrollment in this study is expected to be completed in mid-2025, with data from the same expected during the fall.

If successfully developed and upon potential approval, ALKS 2680 can serve an area of high unmet medical need in the treatment of NT1 and NT2.

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 ADMA Biologics Inc. ADMA, Beam Therapeutics Inc. BEAM and Immunocore Holdings PLC IMCR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 69 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 87 cents to 93 cents. Year to date, shares of ADMA have rallied 35.7%.

ADMA’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 32.80%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.45 to $4.27 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.94 to $4.80. Year to date, shares of BEAM have lost 20.1%.

BEAM’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 3.92%.

In the past 60 days, estimates for Immunocore’s loss per share have narrowed from $1.63 to $1.50 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.83 to $1.68. Year to date, shares of IMCR have gained 2.3%.

IMCR’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 31.91%.

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This article originally published on Zacks Investment Research (zacks.com).

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