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Alkermes (ALKS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Jul 28, 2026

Source: earnings call transcript

Executive summary

Alkermes Q2 FY26 — Orexin Platform Leadership and Commercial Strength

Alkermes is solidifying its leadership in orexin development with a robust pipeline across narcolepsy, ADHD, and fatigue, alongside a strong commercial portfolio. The company reported significant growth in proprietary product sales, driven by successful integration of LUMRYZ and expanded access for LYBALVI. Strategic decisions regarding VIVITROL's generic entry and ongoing clinical advancements position Alkermes for continued growth and innovation in neuroscience.

Highlights

5

  • Proprietary product net sales increased 34% year-over-year to $411.7 million.

  • LYBALVI access expanded to cover over 80% of insured lives, including major Part D plans.

  • LUMRYZ generated net sales of $96.6 million in its first full quarter post-acquisition, with 3,900 patients on therapy.

  • VIVITROL agreement with Amneal terminated, confirming no authorized generic in 2027.

  • Positive Phase 3 results for LUMRYZ in idiopathic hypersomnia (IH), enabling sNDA submission by year-end.

Concerns

2

  • LYBALVI gross-to-net adjustments are expected to expand in the second half of the year, reaching the high 30s for the full year.

  • Q3 total revenues are expected to be lower than Q2, in the range of $450 million to $470 million, partly due to reduced CONSTA revenue and LUMRYZ inventory timing.

Guidance & targets

CategoryTargetConfidence
VIVITROL net sales
$460 million to $480 million
medium materiality
High
ARISTADA net sales
$365 million to $385 million
medium materiality
High
LYBALVI net sales
$380 million to $400 million
medium materiality
High
LUMRYZ total net sales
$350 million to $370 million
medium materiality
High
LUMRYZ net sales (Alkermes portion)
$315 million to $335 million
medium materiality
High
LYBALVI gross-to-net adjustments
high 30s
medium materiality
Medium
Total revenues
$450 million to $470 million
high materiality
High
Cost of goods sold
$85 million to $95 million
medium materiality
High
R&D expenses
$120 million to $130 million
medium materiality
High
SG&A expenses
$215 million to $225 million
medium materiality
High
Adjusted EBITDA
$80 million to $100 million
high materiality
High
GAAP net loss
$95 million to $115 million
high materiality
High
EBITDA
$75 million to $95 million
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Proprietary Product Portfolio
Reflects solid demand across psychiatry and addiction portfolios and first full quarter of LUMRYZ contribution.
$411.7 million34%——
VIVITROL
Driven by growth in alcohol dependence market and $4 million gross-to-net favorability from patient mix.
$124.5 million———
ARISTADA Product Family
Reflected solid underlying demand and $4 million gross-to-net favorability from patient mix.
$96.7 million———
LYBALVI
Driven by sustained momentum in new patient starts and expanded prescriber breadth. Access expanded to over 80% of insured lives.
Underlying TRx growth: 18% year-over-yearGross-to-net adjustments: approximately 36%
$94 million12%——
LUMRYZ
First full quarter post-acquisition, strong performance driven by new patient additions, returning patients, new-to-oxybate patients, and switch patients. Included $7 million benefit from wholesaler inventory timing.
Patients on therapy: 3,900HCP breadth growth: 24% year-over-year
$96.6 million———

ALKS operating KPIs by quarter

ALKS operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25 Mar 2026 Q1 FY26This call 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

Amneal Termination of agreement for an authorized generic of VIVITROL.

Announced earlier this month.

Avadel Acquisition of Avadel and the LUMRYZ brand.

Integration proceeded exceptionally well.

Risks & headwinds

Expansion of LYBALVI gross-to-net adjustments H2 FY26

Expected to expand in the second half of the year, reaching "high 30s" for the full year.

Mitigation:Strategic investment in the brand's long-term growth potential through expanded access.

Reduced manufacturing revenue from RISPERDAL CONSTA H2 FY26

$20.9 million in Q2, with no meaningful revenues expected for the remainder of 2026.

Mitigation:Diversified commercial portfolio and strong operating performance.

Potential impact of CMMI demonstration projects (GLOBE and GUARD) on drug pricing Near-term (potential final rule soon), long-term (litigation if implemented)

Could introduce foreign reference pricing into Medicare/Medicaid programs.

Mitigation:Alkermes is not directly impacted as it does not have foreign reference pricing, but it is a significant industry concern.

What to watch in Q3 FY26

ALKS 7290 Phase 1b topline data

End of Q3 FY26
Current Actively enrolling
Target Topline results

Why it matters

This will be the first clinical evaluation of an orexin 2 receptor agonist in ADHD patients, providing initial proof-of-concept and insights into its activity.

ALKS 7290 in adult ADHD, we have made substantial progress in our Phase Ib study, and we now expect topline results by the end of the third quarter.

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

Q&A highlights

Inquired about the translatability of adult ADHD data to pediatrics, the implications of a 2-week endpoint for tachyphylaxis and overall efficacy, and confirmation of AISRS inclusion.

Blair Jackson stated that adult data is highly translatable to adolescents and children via bridging PK studies. The 2-week endpoint in the Phase 1b is for safety and translation, not full dose-ranging, with a larger Phase 2 study for that. AISRS will be included, along with EEG and behavioral markers, to assess target engagement and dimensionality of response.

“The study that we get this year will be our translational study, our Phase 1b study that we'll have by the end of the third quarter.”

asked by Umer Raffat · answered by Blair Jackson

2 min read 5 chapters

Detailed narrative

Orexin Platform Expansion

Alkermes is establishing itself as a leader in orexin development, expanding beyond narcolepsy into ADHD and fatigue. The company views orexin as a platform with potential for a broad range of serious conditions, including psychiatric, neurodevelopmental, and neurodegenerative diseases. This strategy is supported by the advancement of ALKS 7290 in ADHD and ALKS 4510 in fatigue, with initial data expected in the near future.

Alixorexton Clinical Progress

Alixorexton, an orexin 2 receptor agonist, has demonstrated efficacy and tolerability in narcolepsy type 1 (NT1) and type 2 (NT2) Phase 2 studies, with sustained improvements in wakefulness, cognition, and fatigue for up to nine months in the long-term extension study. The Phase 3 narcolepsy program is on track for completion next year, and the Vibrance-3 Phase 2 study in idiopathic hypersomnia (IH) is actively enrolling, including a split-dose arm to extend pharmacodynamic effects.

Commercial Portfolio Strength

The proprietary product portfolio grew 34% year-over-year to $411.7 million, driven by strong performance across psychiatry, addiction, and sleep medicine. LYBALVI achieved significant access expansion, now covering over 80% of insured lives, which is expected to drive long-term prescription growth despite near-term gross-to-net expansion. VIVITROL's commercial life is extended with the termination of the authorized generic agreement for 2027.

LUMRYZ Integration and Growth

The acquisition and integration of Avadel and the LUMRYZ brand have been successful, with LUMRYZ generating $96.6 million in net sales in its first full quarter and 3,900 patients on therapy. Positive Phase 3 results for LUMRYZ in IH position the company for an sNDA submission by year-end and a potential launch in March 2028, further expanding its growth opportunity.

ADHD and Fatigue Programs

ALKS 7290 is enrolling adults with ADHD, with Phase 1b data expected by Q3-end, representing the first clinical evaluation of an orexin 2 receptor agonist in this population. ALKS 4510 is planned to enter Phase 2 for fatigue in patients with multiple sclerosis or Parkinson's disease later this year, addressing a significant unmet need in neurological disorders.

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