Alkermes Reports 27% Revenue Growth to $496M, Net Income Declines to $0.5M

Alkermes plc reported a total revenue of $496.0 million for the three months ended June 30, 2026, marking a 27% increase from $390.7 million in the same period last year. The growth was primarily driven by a significant rise in product sales, which reached $411.7 million, up from $307.2 million in the prior year. The company also recorded a net income of $0.5 million for the quarter, a notable decline from the $87.1 million net income reported in the same quarter of 2025. For the first half of 2026, Alkermes experienced a net loss of $66.0 million, compared to a net income of $109.6 million in the first half of 2025.

The financial performance reflects substantial changes compared to the previous fiscal period, particularly due to increased operating expenses associated with the acquisition of Avadel Pharmaceuticals, which was completed in February 2026. Total operating expenses surged to $477.7 million in the latest quarter, up from $297.7 million a year earlier. This increase included a $26.4 million change in the fair value of contingent consideration related to the acquisition, as well as higher costs in research and development and selling, general, and administrative expenses.

Strategically, Alkermes has expanded its product portfolio with the addition of LUMRYZ, a treatment for narcolepsy, which contributed $96.6 million in sales since its launch. The acquisition of Avadel not only added this product but also brought in a commercial organization experienced in the sleep medicine market. The company’s employee headcount increased by 16% as a result of this acquisition, reflecting its commitment to enhancing its operational capabilities.

Operationally, Alkermes reported a significant increase in inventory, which rose to $299.0 million from $196.6 million at the end of 2025, largely due to the inventory step-up from the Avadel acquisition. The company also noted a 23% increase in the number of units sold for LYBALVI, contributing to its overall product sales growth. The company’s cash and cash equivalents stood at $511.5 million as of June 30, 2026, compared to $388.6 million at the end of 2025, indicating a solid liquidity position despite the recent losses.

Looking ahead, Alkermes anticipates that its existing cash, cash equivalents, and investments will be sufficient to meet its working capital and other cash requirements for at least the next twelve months. The company is focused on leveraging its expanded product portfolio and operational capabilities to drive future growth, while also managing the financial impacts of its recent acquisition and ongoing development programs.