ALKS · Alkermes plc

Alkermes reported a strong first quarter in 2026, marked by the successful integration of Avadel Pharmaceuticals and solid commercial execution across its proprietary portfolio. Total revenues rose to $392.9 million, driven by a 32% increase in LYBALVI revenues to $92.4 million and the inclusion of $39.5 million in LUMRYZ sales following the February acquisition. VIVITROL and ARISTADA also contributed to growth, with revenues of $112.4 million and $93.8 million respectively. The company noted favorable gross-to-net adjustments across these products, positively impacting recognized revenue.

The acquisition of Avadel, completed in February 2026, significantly altered the company's financial structure. Alkermes utilized approximately $775 million in cash and secured $1.525 billion in term loans due 2031 to finance the deal. This strategic move accelerates Alkermes' entry into the sleep medicine market. Consequently, the balance sheet reflects a decrease in cash and investments to $538.2 million from $1.32 billion at the end of 2025. The company updated its 2026 financial expectations to reflect purchase price accounting, specifically a $125 million inventory step-up and $1.8 billion in acquired intangible assets. These non-cash adjustments resulted in an improved GAAP net loss guidance range of ($70)-($90) million, compared to the previous ($115)-($135) million outlook, while the Adjusted EBITDA guidance remains unchanged at $370-$410 million. Management highlighted the initiation of the Phase 3 Brilliance studies for alixorexton, underscoring the company's focus on expanding its neuroscience pipeline.