Alkermes Reports Q1 2025 Financial Results with $306.5M Revenue and $22.5M Net Income

Alkermes plc reported its financial results for the first quarter of 2025, revealing total revenues of $306.5 million, a decrease from $350.4 million in the same period last year. The decline was primarily driven by a significant drop in manufacturing and royalty revenues, which fell to $62.0 million from $116.8 million. In contrast, product sales increased to $244.5 million, up from $233.5 million, reflecting a 21% rise in sales of LYBALVI and a 3% price increase across its proprietary products. The company reported a net income of $22.5 million, or $0.14 per ordinary share, compared to $36.8 million, or $0.22 per share, in the prior year.

The financial performance indicates a notable shift in Alkermes' revenue streams. The decrease in manufacturing and royalty revenues was largely attributed to the expiration of royalties on U.S. net sales of INVEGA SUSTENNA, which occurred in August 2024. This expiration is expected to continue impacting revenues from long-acting INVEGA products. Additionally, the company experienced a reduction in operating expenses, which fell to $292.7 million from $307.1 million, contributing to a slight increase in operating income from continuing operations to $13.8 million.

Operationally, Alkermes has made strategic moves, including the completion of the sale of its research and development business and manufacturing facility in Athlone, Ireland, to Novo Nordisk in May 2024. This divestiture is part of a broader strategy to streamline operations and focus on its core neuroscience portfolio. The company also reported a decrease in its employee headcount, which has been reduced by approximately 9% following the sale of the Athlone facility.

In terms of cash flow, Alkermes generated $98.8 million from operating activities during the quarter, a significant increase from $21.1 million in the same period last year. The company ended the quarter with cash and cash equivalents of $399.8 million, up from $291.1 million at the end of 2024. This increase reflects improved cash management and operational efficiencies. The company’s investments also showed a slight increase, with total investments reaching $516.4 million.

Looking ahead, Alkermes remains focused on advancing its pipeline of products, including ALKS 2680, which is currently in phase 2 clinical trials for narcolepsy and idiopathic hypersomnia. The company anticipates that its existing cash and investments will be sufficient to meet its operational needs for at least the next twelve months. However, it acknowledges potential risks related to market conditions and competition, particularly concerning its proprietary products and ongoing litigation related to its intellectual property.