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Alkermes (ALKS) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Health Care· May 5, 2026

Source: earnings call transcript

Executive summary

Alkermes Q1 FY26 — Strong Commercial Performance and Strategic Acquisition

Alkermes delivered a strong first quarter, marked by robust commercial execution across its proprietary product portfolio and the strategic acquisition of Avadel Pharmaceuticals. The integration of LUMRYZ has established a new commercial footprint in sleep medicine, complementing the existing psychiatry and addiction franchises. The company is aggressively advancing its orexin development pipeline, with new clinical studies initiated in ADHD and fatigue, aiming to unlock substantial future value beyond hypersomnolence disorders.

Highlights

5

  • Proprietary product net sales increased 38% year-over-year to $338.1 million, ahead of expectations.

  • LUMRYZ, acquired in mid-February, contributed $39.5 million in net sales for 6 weeks and exited the quarter with approximately 3,600 patients on therapy.

  • LYBALVI net sales grew 32% year-over-year to $92.4 million, driven by 21% underlying TRX growth.

  • Adjusted EBITDA reached $80.3 million, significantly exceeding the prior Q1 expectation of $30 million to $50 million.

  • Refined purchase price accounting for Avadel acquisition improved 2026 GAAP net loss expectation to $70 million-$90 million and EBITDA to $105 million-$135 million.

Concerns

2

  • Cost of goods sold included a LUMRYZ inventory step-up charge, with $105 million expected for FY26.

  • SG&A expenses included approximately $55 million of one-time costs associated with the Avadel acquisition.

Guidance & targets

CategoryTargetConfidence
VIVITROL net sales
$460M-$480M
medium materiality
High
ARISTADA net sales
$365M-$385M
medium materiality
High
LYBALVI net sales
$380M-$400M
medium materiality
High
LUMRYZ total net sales
$350M-$370M
high materiality
High
Alkermes-recorded LUMRYZ net sales
$315M-$335M
high materiality
High
Proprietary portfolio net sales
$385M-$405M
medium materiality
High
COGS
$85M-$95M
medium materiality
High
R&D expenses
$110M-$120M
medium materiality
High
SG&A expenses
$210M-$220M
medium materiality
High
Adjusted EBITDA
$100M-$120M
high materiality
High
LUMRYZ inventory fair value step-up expense
$105M
medium materiality
High
COGS
$320M-$340M
medium materiality
High
Amortization of intangible assets
$75M-$85M
medium materiality
High
Income tax expense or benefit
no income tax expense or benefit
medium materiality
High
GAAP net loss
$70M-$90M
high materiality
High
EBITDA
$105M-$135M
high materiality
High
Adjusted EBITDA
more than $370M
high materiality
High
Total revenue
more than $1.7B
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Proprietary Product Portfolio
Reflecting solid demand across psychiatry and addiction portfolios, favorable gross-to-net adjustments, and 6 weeks of commercial contribution from LUMRYZ.
$338.1M38%——
VIVITROL
Performance driven by capitalizing on localized market dynamics and payer systems.
$112.4M———
ARISTADA product family
Reflecting solid underlying demand.
$93.8M———
LYBALVI
Driven by sustained momentum in new patient starts and expanded prescriber breadth. Gross to net expected to widen into mid-30s.
Underlying TRX growth: 21% year-over-yearGross to net adjustments: approximately 33%
$92.4M32%——
LUMRYZ
Net sales recorded by Alkermes for the period since acquisition close. Total LUMRYZ net revenue for the full quarter was approximately $72 million.
Patients on therapy: approximately 3,600Period of contribution: 6 weeks (mid-February to March 31)
$39.5M———
Manufacturing and Royalty Revenues
Includes revenues from VUMERITY and INVEGA products.
VUMERITY revenues: $27.3MLong-acting INVEGA products revenues: $18M
$54.8M———

ALKS operating KPIs by quarter

ALKS operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25This call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Patients LUMRYZ
~3,500 In 2025, LUMRYZ generated approximately $279 million in net sales, with approximately 3,500 patients on LUMRYZ therapy as of the end of 2025, a roughly 40% increase in number of patients from the fourth quarter of 2024. Source: earnings call transcript
~3,600 We exited the quarter with approximately 3,600 patients on therapy and with solid momentum in new patient enrollments, which we expect to build on as we move through the year. Source: earnings call transcript
~3,900 We exited the quarter with approximately 3,900 patients on therapy. Source: earnings call transcript
—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Avadel Pharmaceuticals plc Acquisition of Avadel Pharmaceuticals, including LUMRYZ, to become a leader in sleep medicine.

Completed the acquisition, integrating Avadel into the business. The financial results reflect the mid-February closing of the transaction.

Risks & headwinds

Generic competition for VIVITROL 2027 and beyond

Teva's potential entry into the market in early 2027

Mitigation:Company has a range of scenarios and does not expect a dramatic impact due to VIVITROL's unique asset profile, manufacturing requirements, and commercial infrastructure. Prepared to compete.

LUMRYZ inventory step-up charge FY26

$105M expected to be expensed in FY26

Mitigation:Refinements to purchase price accounting have improved the full-year estimate from $150M, leading to a net positive impact on GAAP net loss and EBITDA expectations.

What to watch in Q2 FY26

LUMRYZ IH Phase III REVITALYZ top-line data

Later this quarter (Q2 FY26)
Current Study ongoing, expected to announce top-line data
Target Top-line data announced

Why it matters

This data will serve as the basis for an sNDA submission and represents a potential growth opportunity for LUMRYZ in an underserved patient population.

Later this quarter, we expect to announce top line data from the LUMRYZ Phase III REVITALYZ study in IH.

Find out whether ALKS delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you discuss the development strategy for ALKS 7290 in ADHD (monotherapy vs. adjunctive) and preclinical data supporting it? Also, what endpoints are being explored for the fatigue program (ALKS 4510)?

For ADHD, preclinical data showed ALKS 7290 performing as well as or better than stimulants as monotherapy, supporting the current monotherapy clinical study design. For fatigue, the PROMIS Fatigue Scale, which showed strong benefit in NT1 patients, will be used, along with disease-specific scales for MS and Parkinson's.

“when we did that model, what we found is across all our studies, we were performing as well as or better than stimulants themselves as a monotherapy.”

asked by David Amsellem · answered by Blair Jackson

2 min read 5 chapters

Detailed narrative

Strategic Expansion into Sleep Medicine with LUMRYZ

Alkermes completed the acquisition of Avadel Pharmaceuticals, integrating LUMRYZ, a differentiated once-at-bedtime sodium oxybate for narcolepsy, into its portfolio. This acquisition establishes a commercial footprint in sleep medicine, allowing engagement with sleep specialists ahead of the potential launch of Alixorexton. LUMRYZ contributed $39.5 million in net sales for 6 weeks post-acquisition and exited Q1 with approximately 3,600 patients on therapy, demonstrating strong initial momentum.

Orexin Program Advancement and External Validation

The company's orexin program is seen as a substantial value creation opportunity, with comprehensive clinical data sets for disorders of hypersomnolence. The recent entry of Eli Lilly into the therapeutic space is viewed as an important external validation of the scientific and commercial potential of the orexin pathway. Alkermes believes its Alixorexton and other development candidates represent significant opportunities in neurology, psychiatry, and rare diseases.

Alixorexton Clinical Development Progress

Enrollment is underway for the Phase III Brilliance studies in narcolepsy type 1 and type 2 for Alixorexton, with strong investigator interest. The Vibrance-3 Phase II study for Alixorexton in idiopathic hypersomnia (IH) is ongoing and on track for completion in Q4 FY26, including a split-dose cohort. Data from the Vibrance-2 narcolepsy type 2 study will be presented at the Annual Sleep Meeting in June, providing insights into this patient population.

Expansion of Orexin Portfolio into ADHD and Fatigue

Alkermes is expanding its orexin development programs beyond sleep medicine with two new molecules, ALKS 7290 and ALKS 4510. ALKS 7290 is entering Phase Ib and Phase II studies in adults with ADHD, with initial Phase Ib results expected in Q4 FY26. ALKS 4510 will initiate a multi-dose Phase IIa study later this year in patients with fatigue associated with multiple sclerosis and Parkinson's disease, leveraging observations from narcolepsy studies.

Financial Performance and Balance Sheet Strength

The company reported total revenues of $392.9 million for Q1 FY26, driven by proprietary product growth and initial LUMRYZ contribution. Adjusted EBITDA of $80.3 million exceeded expectations. Alkermes ended the quarter with $538 million in cash and total investments, and expects to pay down $1.525 billion in term loans quickly with business cash flows. Refinements to purchase price accounting for the Avadel acquisition improved full-year GAAP net loss and EBITDA expectations.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.