Alkermes Q4 Earnings Call Highlights

Alkermes (NASDAQ:ALKS) executives highlighted a “strong and eventful” 2025 and outlined a 2026 program focused connected expanding the company’s commercialized level pursuing its Avadel acquisition portion advancing its orexin pipeline, led by alixorexton, into late-stage development. Management besides announced a CEO transition, with longtime main enforcement Richard Pops acceptable to measurement down this summertime and existent Chief Operating Officer Blair Jackson slated to instrumentality over; Pops volition stay chairman.

For full-year 2025, Alkermes reported full revenues of astir $1.5 billion, driven chiefly by proprietary merchandise nett income of astir $1.2 billion, which grew 9% twelvemonth implicit year. By brand, the institution reported 2025 nett income of $467.9 cardinal for VIVITROL, $370.0 cardinal for ARISTADA, and $346.7 cardinal for LYBALVI.

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Manufacturing and royalty revenues totaled $291.3 million, including $130.5 cardinal from VUMERITY and $109.6 cardinal from long-acting Invega products, according to the company.

On expenses, the institution said outgo of goods sold declined to $196.5 cardinal from $245.3 cardinal successful the anterior year, chiefly reflecting efficiencies pursuing the merchantability of its Athlone-based manufacturing business. R&D roseate to $324.0 cardinal from $245.3 million, reflecting investments successful the VIBRANCE signifier II studies for alixorexton successful narcolepsy and idiopathic hypersomnia, arsenic good arsenic aboriginal enactment connected orexin 2 receptor agonist candidates ALKS 4510 and ALKS 7290. SG&A accrued to $701.5 cardinal from $645.2 million, reflecting an expanded psychiatry tract organization, LYBALVI promotional activity, and definite ineligible and transaction-related costs.

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Alkermes reported GAAP nett income of $241.7 cardinal for 2025, EBITDA of $285.6 million, and adjusted EBITDA of $394.0 million. The institution ended 2025 with $1.3 cardinal successful currency and full investments.

Management emphasized that the Avadel acquisition, which closed successful February 2026, adds a caller gross watercourse and accelerates Alkermes’ introduction into the commercialized slumber medicine market. To money the transaction, the institution said it utilized astir $775 cardinal of currency and entered into word loans totaling $1.525 cardinal owed successful 2031, with an anticipation to wage down the indebtedness rapidly utilizing currency flows.

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For 2026, Alkermes guided full revenues of $1.73 cardinal to $1.84 billion, including proprietary merchandise nett income of $1.52 cardinal to $1.60 billion. It expects manufacturing and royalty revenues of $210 cardinal to $240 million, reflecting scheduled expiration of definite XEPLION royalties that signifier retired connected a country-by-country ground successful the 2nd fractional of 2026. The institution besides noted that its VUMERITY manufacturing obligations were completed successful 2025, with aboriginal VUMERITY gross expected to beryllium solely royalty-based “without immoderate associated costs.”