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    ALKS
    Earnings call· Mar 2026(Q1 FY26)

    Alkermes plc. Q1 FY26 earnings call ALKS

    May 5, 2026 Source

    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

    18
    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

    6
    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———

    Operational metrics

    19
    Proprietary product portfolio net sales
    $338.1M38% year-over-year increase
    Q1 FY26

    Ahead of expectations, reflecting solid demand and LUMRYZ contribution.

    Gross to net favorability
    $14M
    Q1 FY26

    Benefited first quarter results across products.

    Cost of goods sold
    $61.6M
    Q1 FY26

    Includes the purchase price accounting of LUMRYZ inventory.

    Cost of goods sold (excluding LUMRYZ inventory step-up)
    $48.9Mvs $49.2M in Q1 prior year
    Q1 FY26

    Net of the LUMRYZ inventory step-up charge.

    R&D expenses
    $103.3Mvs $71.8M in Q1 prior year
    Q1 FY26

    Reflecting initiation of Alixorexton Brilliance Phase III, ongoing Vibrance-3 Phase II, and Phase I studies for ALKS 7290 and ALKS 4510.

    SG&A expenses
    $264.6M
    Q1 FY26

    Includes costs associated with the closing of the Avadel acquisition.

    SG&A expenses (excluding one-time costs)
    $209.4Mvs $171.7M in Q1 prior year
    Q1 FY26

    Primarily reflecting the addition of Avadel commercial infrastructure mid-quarter.

    Amortization of intangibles
    $11.7M
    Q1 FY26

    Reported for the quarter.

    Net interest expense
    $12.4M
    Q1 FY26

    Reported for the quarter.

    GAAP net loss
    $66.5M
    Q1 FY26

    Reported for the quarter.

    EBITDA
    -$30.1M
    Q1 FY26

    Reported for the quarter.

    Adjusted EBITDA
    $80.3Mwell ahead of prior Q1 expectation of $30M-$50M
    Q1 FY26

    Due to higher-than-expected revenues and timing of R&D expenses.

    Cash and total investments balance
    $538M
    Q1 FY26

    Balance at the end of the first quarter.

    Term loans
    $1.525B
    Q1 FY26

    Entered into to finance the acquisition of Avadel.

    Share repurchase
    $28M
    Q1 FY26

    Deployed during the quarter.

    Remaining share repurchase authorization
    $172M
    Q1 FY26

    Remaining authorization for share repurchases.

    LYBALVI underlying TRX growth
    21%year-over-year
    Q1 FY26

    Driven by sustained momentum in new patient starts and continued expansion of prescriber breadth.

    LUMRYZ patients on therapy
    3,600
    Q1 FY26 exit

    Exited the quarter with solid momentum in new patient enrollments.

    LUMRYZ total net revenue
    $72M
    Q1 FY26

    Total revenue generated by LUMRYZ for the full quarter.

    Industry KPIs

    5
    MetricValueDetails
    Launch access metricsapproximately 33%%
    Pipeline read out calendarMultiple
    Product franchise net sales$39.5MUSD
    Prescription volume new starts21%%
    Cumulative patients uptake since launch3,600patients

    Deals & partnerships

    1
    Avadel Pharmaceuticals plcAcquisition 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

    2
    Generic competition for VIVITROL2027 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 chargeFY26

    $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

    5

    LUMRYZ IH Phase III REVITALYZ top-line data

    Later this quarter (Q2 FY26)
    CurrentStudy ongoing, expected to announce top-line data
    TargetTop-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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.