Earnings release
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Alkermes plc Reports Third Quarter 2025 Financial Results October 28, 2025 — Third Quarter Revenues of $394.2 Million — — GAAP Net Income of $82.8 Million and Diluted GAAP Earnings per Share of $0.49 — — Company Raises 2025 Financial Expectations — DUBLIN, Oct. 28, 2025 /PRNewswire/ -- Alkermes plc (Nasdaq: ALKS) today reported financial results for the third quarter of 2025. "Alkermes delivered another successful quarter, achieving strong revenue growth and robust profitability, fueled by focused execution and underlying demand across our commercial portfolio. We ended the quarter in a strong financial position and have raised our financial outlook for 2025, underscoring the momentum of the business. Our proposed acquisition of Avadel Pharmaceuticals announced last week represents another potential growth driver for our business and an important element of our strategic plan as we seek to become a leader in the treatment of central disorders of hypersomnolence," said Richard Pops, Chief Executive Officer of Alkermes. "During the quarter, we also advanced our development pipeline, with notable progress in our orexin 2 receptor agonist program. We recently presented positive data from Vibrance-1, our phase 2 study of alixorexton in patients with narcolepsy type 1, and expect to report topline results from Vibrance-2, in narcolepsy type 2, next month. As we prepare to initiate our phase 3 clinical program in early 2026, we believe alixorexton represents a compelling opportunity to create value and deliver meaningful innovation to patients." Key Financial Highlights Revenues (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Total Revenues $ 394.2 $ 378.1 $ 1,091.4 $ 1,127.6 Total Proprietary Net Sales $ 317.4 $ 273.0 $ 869.2 $ 775.8 VIVITROL® $ 121.1 $ 113.7 $ 343.8 $ 323.2 ARISTADA®i $ 98.1 $ 84.7 $ 272.8 $ 249.6 LYBALVI® $ 98.2 $ 74.7 $ 252.6 $ 203.1 Profitability (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP Net Income From Continuing Operations $ 82.8 $ 92.8 $ 192.3 $ 226.4 GAAP Net Income (Loss) From Discontinued Operations $ -- $ (0.4) $ -- $ (5.8) GAAP Net Income $ 82.8 $ 92.4 $ 192.3 $ 220.6 EBITDA From Continuing Operations $ 96.9 $ 112.3 $ 221.2 $ 282.4 EBITDA From Discontinued Operations $ -- $ (0.5) $ -- $ (6.9) EBITDA $ 96.9 $ 111.8 $ 221.2 $ 275.5 Adjusted EBITDA $ 121.5 $ 134.3 $ 293.7 $ 351.4 Revenue Highlights LYBALVI Revenues for the quarter were $98.2 million. Revenues and total prescriptions for the quarter grew 32% and 25%, respectively, compared to the third quarter of 2024. ARISTADAi
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Revenues for the quarter were $98.1 million. Revenues for the quarter grew 16% compared to the third quarter of 2024. During the quarter, the company recorded ARISTADA revenue of approximately $5.0 million related to gross-to-net favorability, primarily driven by Medicaid utilization adjustments. VIVITROL Revenues for the quarter were $121.1 million. Revenues for the quarter grew 7% compared to the third quarter of 2024. During the quarter, the company recorded VIVITROL revenue of approximately $8.0 million related to gross-to-net favorability, primarily driven by Medicaid utilization adjustments. Manufacturing & Royalty Revenues VUMERITY® manufacturing and royalty revenues for the quarter were $35.6 million. Royalty revenues from XEPLION ®, INVEGA TRINZA ®/TREVICTA® and INVEGA HAFYERA ®/BYANNLI® for the quarter were $30.2 million. Key Operating Expenses Please see Note 1 below for details regarding discontinued operations. (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 R&D Expense – Continuing Operations $ 81.7 $ 59.9 $ 230.9 $ 187.2 R&D Expense – Discontinued Operations $ -- $ 0.5 $ -- $ 6.9 SG&A Expense – Continuing Operations $ 171.8 $ 150.4 $ 514.3 $ 498.2 SG&A Expense – Discontinued Operations $ -- $ -- $ -- $ -- Balance Sheet At Sept. 30, 2025, the company recorded cash, cash equivalents and total investments of $1.14 billion, compared to $1.05 billion at June 30, 2025. Financial Expectations for 2025 Today, Alkermes raised its financial expectations for 2025, as set forth below. All line items are according to GAAP, except as otherwise noted. In millions Previous 2025 Expectations (provided Feb. 12, 2025) Updated 2025 Expectations (provided Oct. 28, 2025) Total Revenues $1,340 – $1,430 $1,430 – $1,490 VIVITROL Net Sales $440 – $460 $460 – $470 ARISTADAi Net Sales $335 – $355 $360 – $370 LYBALVI Net Sales $320 – $340 $340 – $350 Cost of Goods Sold $185 – $205 $195 – $205 R&D Expense $305 – $335 $315 – $325 SG&A Expense $655 – $685 $675 – $705 GAAP Net Income a $175 – $205 $230 – $250 EBITDA b $215 – $245 $270 – $290 Adjusted EBITDA b $310 – $340 $365 – $385 Effective Tax Rate ~17% ~17% a Expected 2025 weighted average basic share count of approximately 165.5 million shares outstanding and a weighted average diluted share count of approximately 169.5 million shares outstanding b Non-GAAP measure Notes and Explanations 1. The company determined that upon the separation of its former oncology business, completed on Nov. 15, 2023, the oncology business met the criteria for discontinued operations in accordance with Financial Accounting Standards Board Accounting Standards Codification 205, Discontinued Operations. Accordingly, the accompanying selected financial information has been updated to present the results of the oncology business as discontinued operations for the three and nine months ended Sept. 30, 2024. Conference Call Alkermes will host a conference call and webcast presentation with accompanying slides at 8:00 a.m. ET (12:00 p.m. GMT) on Tuesday, Oct. 28, 2025, to discuss these financial results and provide an update on the company. The webcast may be accessed on the Investors section of Alkermes' website at www.alkermes.com. The conference call may be accessed by dialing +1 877 407 2988 for U.S. callers and +1 201 389 0923 for international callers. In addition, a replay of the conference call may be accessed by visiting Alkermes' website.
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About Alkermes plc Alkermes plc (Nasdaq: ALKS), a mid-cap growth and value equity, is a global biopharmaceutical company that seeks to develop innovative medicines in the field of neuroscience. The company has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder, and a pipeline of clinical and preclinical candidates in development for neurological disorders, including narcolepsy and idiopathic hypersomnia. Headquartered in Ireland, Alkermes also has a corporate office and research and development center in Massachusetts and a manufacturing facility in Ohio. For more information, please visit Alkermes' website at www.alkermes.com. Non-GAAP Financial Measures This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the U.S. (GAAP), including EBITDA and Adjusted EBITDA. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. EBITDA represents earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes share-based compensation expense in addition to the components of EBITDA from earnings. The company's management and board of directors utilize these non-GAAP financial measures to evaluate the company's performance. The company provides these non-GAAP financial measures of the company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, EBITDA and Adjusted EBITDA should not be considered measures of the company's liquidity. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. Note Regarding Forward-Looking Statements Certain statements set forth in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning: the company's expectations concerning its future financial and operating performance, business plans or prospects; the company's expectations related to its proposed acquisition of Avadel Pharmaceuticals; and the company's expectations regarding development plans, activities and timelines for, and the potential therapeutic and commercial value of, alixorexton. The company cautions that forward-looking statements are inherently uncertain. The forward-looking statements are neither promises nor guarantees and they are necessarily subject to a high degree of uncertainty and risk. Actual performance and results may differ materially from those expressed or implied in the forward-looking statements due to various risks, assumptions and uncertainties. These risks, assumptions and uncertainties include, among others: whether the company is able to achieve its financial expectations; clinical development activities may not be initiated or completed on expected timelines or at all; the results of the company's development activities may not be positive, or predictive of future results from such activities, results of future development activities or real-world results; the company's products or product candidates could be shown to be ineffective or unsafe; the U.S. Food and Drug Administration (FDA) or regulatory authorities outside the U.S. may not agree with the company's regulatory approval strategies or may make adverse decisions regarding the company's products; potential changes in the cost, scope and duration of the company's development programs; whether the proposed acquisition will be consummated on the anticipated terms, timelines or at all; even if the proposed acquisition is consummated, the expected benefits of the proposed acquisition may not be achieved; there may be significant changes in transaction costs and/or unknown or inestimable liabilities and potential litigation associated with the proposed acquisition; the unfavorable outcome of arbitration, litigation, including so-called "Paragraph IV" litigation and other patent litigation which may lead to competition from generic manufacturers, or other proceedings or disputes related to the company's products or products using the company's proprietary technologies; the company and its licensees may not be able to continue to successfully commercialize their products or support revenue growth from such products; there may be a reduction in payment rate or reimbursement for the company's products or an increase in the company's financial obligations to government payers; the company's products may prove difficult to manufacture, be precluded from commercialization by the proprietary rights of third parties, or have unintended side effects, adverse reactions or incidents of misuse; and those risks and uncertainties described under the heading "Risk Factors" in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024 and in subsequent filings made by the company with the U.S. Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, the company disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release. VIVITROL® is a registered trademark of Alkermes, Inc.; ARISTADA®, ARISTADA INITIO® and LYBALVI® are registered trademarks of Alkermes Pharma Ireland Limited, used by Alkermes, Inc. under license; BYANNLI®, INVEGA HAFYERA®, INVEGA TRINZA®, TREVICTA® and XEPLION® are registered trademarks of Johnson & Johnson or its affiliated companies; and VUMERITY® is a registered trademark of Biogen MA Inc., used by Alkermes under license. __________________________ i The term "ARISTADA" as used in this press release refers to ARISTADA and ARISTADA INITIO®, unless the context indicates otherwise. Alkermes plc and Subsidiaries Selected Financial Information (Unaudited) Condensed Consolidated Statements of Operations - GAAP Three Months Ended Three Months Ended (In thousands, except per share data) September 30, 2025 September 30, 2024 Revenues: Product sales, net $ 317,423$ 272,999 Manufacturing and royalty revenues 76,762 105,144 Total Revenues 394,185 378,143
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Expenses: Cost of goods manufactured and sold 51,591 63,099 Research and development 81,739 59,892 Selling, general and administrative 171,773 150,382 Amortization of acquired intangible assets — 14 Total Expenses 305,103 273,387 Operating Income 89,082 104,756 Other Income, net: Interest income 11,943 10,916 Interest expense — (6,000) Other income (expense), net (280) 558 Total Other Income, net 11,663 5,474 Income Before Income Taxes 100,745 110,230 Income Tax Provision 17,984 17,435 Net Income From Continuing Operations 82,761 92,795 Loss From Discontinued Operations — Net of Tax — (414) Net Income — GAAP $ 82,761$ 92,381 GAAP Earnings (Loss) Per Ordinary Share - Basic: From continuing operations $ 0.50$ 0.57 From discontinued operations $ —$ (0.00) From net income $ 0.50$ 0.57 GAAP Earnings (Loss) Per Ordinary Share - Diluted: From continuing operations $ 0.49$ 0.56 From discontinued operations $ —$ (0.00) From net income $ 0.49$ 0.55 Weighted Average Number of Ordinary Shares Outstanding: Basic 165,086 163,368 Diluted 168,510 167,025 Condensed Consolidated Statements of Operations - GAAP (Continued) Three Months Ended Three Months Ended (In thousands, except per share data) September 30, 2025 September 30, 2024 An itemized reconciliation between net income from continuing operations on a GAAP basis and EBITDA is as follows: Net Income from Continuing Operations $ 82,761$ 92,795 Adjustments: Depreciation expense 8,060 6,958 Amortization expense 19 14 Interest income (11,943) (10,916) Interest expense — 6,000 Income tax provision 17,984 17,435 EBITDA from Continuing Operations 96,881 112,286 EBITDA from Discontinued Operations — (481) EBITDA $ 96,881$ 111,805 Share-based compensation 24,665 22,533 Adjusted EBITDA $ 121,546$ 134,338 Alkermes plc and Subsidiaries Selected Financial Information (Unaudited) Condensed Consolidated Statements of Operations - GAAP Nine Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2025 September 30, 2024 Revenues: Product sales, net $ 869,151$ 775,808 Manufacturing and royalty revenues 222,201 351,835 Research and development revenue — 3
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Total Revenues 1,091,352 1,127,646 Expenses: Cost of goods manufactured and sold 150,248 183,215 Research and development 230,926 187,152 Selling, general and administrative 514,326 498,244 Amortization of acquired intangible assets — 1,087 Total Expenses 895,500 869,698 Operating Income 195,852 257,948 Other Income, net: Interest income 33,174 31,050 Interest expense — (17,930) Other income, net 2,047 2,793 Total Other Income, net 35,221 15,913 Income Before Income Taxes 231,073 273,861 Income Tax Provision 38,750 47,460 Net Income From Continuing Operations 192,323 226,401 Loss From Discontinued Operations — Net of Tax — (5,834) Net Income — GAAP $ 192,323$ 220,567 GAAP Earnings (Loss) Per Ordinary Share - Basic: From continuing operations $ 1.17$ 1.36 From discontinued operations $ —$ (0.04) From net income $ 1.17$ 1.32 GAAP Earnings (Loss) Per Ordinary Share - Diluted: From continuing operations $ 1.14$ 1.33 From discontinued operations $ —$ (0.03) From net income $ 1.14$ 1.30 Weighted Average Number of Ordinary Shares Outstanding: Basic 164,490 166,546 Diluted 168,445 170,196 Condensed Consolidated Statements of Operations - GAAP (Continued) Nine Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2025 September 30, 2024 An itemized reconciliation between net income from continuing operations on a GAAP basis and EBITDA is as follows: Net Income from Continuing Operations $ 192,323$ 226,401 Adjustments: Depreciation expense 23,262 20,599 Amortization expense 56 1,087 Interest income (33,174) (31,050) Interest expense — 17,930 Income tax provision 38,750 47,460 EBITDA from Continuing Operations 221,217 282,427 EBITDA from Discontinued Operations — (6,910) EBITDA $ 221,217$ 275,517 Share-based compensation 72,441 75,889 Adjusted EBITDA $ 293,658$ 351,406 Alkermes plc and Subsidiaries Selected Financial Information (Unaudited) Condensed Consolidated Balance Sheets September 30, December 31, (In thousands) 2025 2024 Cash, cash equivalents and total investments $ 1,138,983$ 824,816 Receivables 354,394 389,733 Inventory 190,997 182,887 Contract assets 717 4,990 Prepaid expenses and other current assets 84,442 86,077
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Property, plant and equipment, net 246,982 227,564 Intangible assets, net and goodwill 83,861 83,917 Deferred tax assets 130,344 154,835 Other assets 98,792 100,748 Total Assets $ 2,329,512$ 2,055,567 Accrued sales discounts, allowances and reserves $ 252,743$ 272,452 Other current liabilities 221,617 192,747 Other long-term liabilities 121,720 125,391 Total shareholders' equity 1,733,432 1,464,977 Total Liabilities and Shareholders' Equity $ 2,329,512$ 2,055,567 Ordinary shares outstanding (in thousands) 165,104 162,177 This selected financial information should be read in conjunction with the consolidated financial statements and notes thereto included in Alkermes plc's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, which the company intends to file in October 2025. Alkermes plc and Subsidiaries 2025 Guidance — GAAP to EBITDA An itemized reconciliation between projected net income on a GAAP basis, EBITDA and Adjusted EBITDA is as follows: (In millions) Amount Projected Net Income — GAAP $ 240.0 Adjustments: Interest income (40.0) Depreciation and amortization expense 30.0 Provision for income taxes 50.0 Projected EBITDA $ 280.0 Share-based compensation expense 95.0 Projected Adjusted EBITDA $ 375.0 Projected Net Income on a GAAP basis and Projected EBITDA and Adjusted EBITDA reflect mid-points within ranges of estimated guidance. Alkermes Contacts: For Investors: Sandy Coombs +1 781 609 6377 For Media: Katie Joyce +1 781 249 8927 View original content to download multimedia:https://www.prnewswire.com/news-releases/alkermes-plc-reports-third-quarter-2025-financial- results-302595839.html SOURCE Alkermes plc